The International Business Plan involves the development of a proposal to start document will account for 60 points, and the oral presentation will account for. DECA International Business Plan. 1. S S N E I S 2 U 1 B 0 E -2 IA SS IF L RU TO . The Accompanying Slideshow: servicerewiew.fun international-business-plan.
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Proposed Strategies 1. Proposed Pricing Policies 2. Proposed Promotional ProgramV. Projected Income Statement B. Projected Balance Sheet C. Planned Growth of BusinessVI. In Russia, American clothing trends are achieving a newfound hype amongst thepopulation, yet the industry is plagued by exorbitant prices due to a lack of accessible,high quality clothing. E-commerce is rapidly growing worldwide-in Russia especially-while Brick-and-Mortar retail stores are steadilydeclining.
There is a multitude of online stores beingopened up constantly, however, they all blend togetherand none can succeed without standing apart from theircompetition. The owner of Alphalife, a fresh andinnovative Russian-based American clothing venture,Barrett Stapelman, working closely with TayisiyaAmplyeyeva and the company, will not be selling mereproducts but rather the culture that goes behind them.
Our Mission Statement: Analysis of the International Business Situation: Alphalife will be based in Moscow, Russia- the most populous city in Russia- onTverskaya Street, one of the busiest shopping streets in Moscow city center and in thewealthy area of Rublevka. Very recently, Russia has loosened its restrictions on foreigntrade in hope to initiate growth. Russia still does have some laws, regulations, andtaxes, but none of which are too impedimentary.
Our primary focus will be on customersatisfaction and user-friendliness. Planned Operation of the Business: With an efficient 24 person workforce, Alphalife will cut unnecessary labor costs as well as the expenses from a brick-and-mortar location because all operations will be exclusively online for the first year.
The company will differ from the bland multitude of competitors through unique specialty promotion programs that involve the customers and make them feel as if they are part of the company, suchas the Rep Crew and Referral Rewards Programs.
Alphalife strives toemphasize customer service and accessibility overall. Planned Financing: Urban American culture is increasingly influencing Russian trends,yet the market is plagued by exorbitantly high prices due to a lack of accessible highquality clothing.
E-commerce is also beginning to dominate retail sales over thedeclining Brick-and-Mortar stores. Alphalife combines all of these factors. By reachinginto a previously untapped and rapidly growing market, Alphalife is grasping the optimaltime to introduce a new and more accessible means of acquiring these well sought afterfashions.
The difficulty of running a business such as this one is being able to stand outfrom the competition. Here at Alphalife, we are not merely selling the products, butrather, the culture behind them. This ideology will be heavily rooted in our promotionalactivities. Instead of simply advertising to the customers, we will involve them and makethem all feel as though they are a part of the company.
This will be done by activelyincluding customers in our operations such as giving away sticker packs with our logo,introducing the Referral and Rep Crew Programs, holding scheduled giveaways, andhosting parties, concerts and other events to connect with our target marketcommunities. We will start off running exclusively online with offices and a warehouse inMoscow, with the option of opening a Brick-and-Mortar location on Tverskaya Street,one of the busiest shopping streets in Moscow after a year in business.
This is wheremuch of our promotional activities will take place such as putting up posters andhanding out fliers. One drawback of holding this location is the level of competition 5.
Our primary focus will be on e-commerce through our main site: Operating exclusively online will only serve to benefit us by increasingcustomer demand and keeping expenses low. In such a rapidly expanding market, it is the perfect opportunity to start an onlinebusiness in Russia while many other mediums and nations are struggling. In a setting ofhigh product demand, low competition, newly lessened restrictions and a growingmarket, Alphalife will thrive.
Economic System In the s, Russia moved from a centrally planned economy to a free market system. As urban American culture continues to influence and inspire Russia, we believe that these American-set trends in fashion will strike a lot of attention in the Russian market. Government Although previously limited in foreign trade and private business, in Prime Minister Vladimir Putin announced Russia plans to become more involved in foreign trade and terminate the majority of previous restrictions and barriers with foreign trade.
Putin claims that "[Russia needs] to pursue a consistent, predictable, and responsible policy. We need to improve the business environment.
As the barriers start to disintegrate, this creates a perfect opportunity to start business with Russia and their new foreign trade policies emphasizing a welcome to foreign trade and less restrictions on foreign business environments 7. Trade Laws Although Russia has a free market system, there are a few trade regulations currently in effect.
The retail trade policies have a few key features: Imports are subject to a customs processing fee equal to 0. Taxes can be charged on imports. All labels must include Russian text. Where product packaging is in a foreign language, an additional label must be attached listing the necessary information in Russian. Russia applies import duties to most goods. Some goods are subject to specific duties which are calculated by volume, weight or quantity.
Trade Area and Cultural Analysis When advertising, it is important to know your target market and how to reach them. Because our target market has such a wide age range and a middle- class income, we will be marketing primarily in Moscow, the most populated city in Russia. Geographics and Demographics According to the results of the Census, the population of Moscow was 11,,; this is the most populated city in all of Russia.
The Russian culture of our target market in Moscow mimics the trends of urban American culture. There is a vibrant night life in Moscow. The city is full different kind of clubs, restaurants and bars. There is an opening every two weeks and the night life scene changes all the time. There are different levels of venues. Moscow city center and Rublevka the richest area of the city is full of luxury locations.
Tverskaya Street is also one of the busiest shopping streets in Moscow. This would be an advantage to our company because advertising American clothing will create a lot of hype and desire and attract new customers.
However, a disadvantage to such a place for advertising is the level of competitive advertisement. Market Segment Analysis Our target market will be primarily young adults and adults up to the age of 40 with a middle-class income level. Since we are primarily focusing on advertising in Moscow, with a population of over Analysis of Potential Location We will be starting off exclusively online for the first year, potentially branching out later into brick-and-mortar stores on the aforementionedTverskaya Street, one of the busiest shopping streets in Moscow city center and in the wealthy area of Rublevka.
In terms of and advertisements, we will use visual channels such as fliers, business cards, online ads. Leaving much of the promotion to our specialty programs mentioned in the promotional outlines below. In terms of competition, there is not much to offer an affordable and high quality line of merchandise as Alphalife. Stores such as Hugo Boss will be indirect competitors but will cater to those of the upper- class.
There is a current lack of name-brand merchandise for those on a middle-class income. Because it is such a small business, a sole proprietorship is advantageous because it is much quicker to become active, there are minimal legal costs, no corporate tax payments, few formal business requirements, and complete control and decision-making is in the hands of the owner for fast responses to adverse economic conditions.
There also will be no specific business taxes needed, just personal income taxes from America and Russia, although there will be exemptions thanks to the Double Tax Treaty between America and Russia against paying taxes for both countries. Start-up Steps to Form Alphalife: Register as an individual entrepreneur and become a Russian Tax Resident.
Begin to develop two websites and park the domains: Hire staff. Rent a warehouse and office space in Moscow. Begin to order base amounts of apparel. Publish the sites and become active, adjusting purchasing to match customer trends and exporting out-of-season merchandise from Alphalife.
Proposed Staffing: Oversees Rep Crew and manages promotional events. Oversees the logistics workforce. Keeps inventory to make sure there is no discrepancy. Reports inventory and loss to Accounting. Must be able to lift 50 lbs. Assist in promotional activities should the need arise. Updatesonline inventory and manages online promotions. Files taxes and necessary paperwork. Dwp business plan sample.
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