Executive Summary
By focusing on its strengths, its key customers, and the underlying values they need, Hong Kong Entertainment Ltd(HKE) will increase sales to more than $90 million in three years, while also improving the gross margin on sales and cash management and working capital.
This business plan leads the way. It renews our vision and strategic focus: attracting more customers, increasing customer loyalty. It also provides online services for improving our sales, gross margin, and profitability.
This plan includes this summary, and chapters on the company, products and services, market focus, action plans and forecasts, management team, and financial plan.
Objectives
1. Sales increase to more than $90 million by the third year.
2. Bring gross margin back to above 25%, and maintain that level.
3. Improve inventory turnover to 8 turns next year, 9 in 2011 and 2012.
Company Background
Hong Kong Entertainment Ltd is a local entertainment retail chain and is one of the largest of its kind in Hong Kong. HKE also operates stores in Macau and Singapore. HKE sells CDs, VCDs, DVDs and Blu-ray discs, provides reservation service. Since 2002, HKE has sold also headphones, DVD players, CD players, hi-fi equipment and T-shirts.
HKE uses Loyalty business model and can be considered B2C transaction. HKE wants to increase the loyalty of customers in the expectation that corporate objectives will be met or surpassed. HKE believes that excellent performance of quality of products and services leads to customer satisfaction, which leads to customer loyalty, which leads to profitability.
HKE decided to expand the business to become an international retail chain. This year, HKE is going to develop an official website. Internet marketing is relatively inexpensive when compared to the ratio of cost against the reach of the target audience. HKE can reach a wide audience for a small fraction of traditional advertising budgets. It allows customers to research and...