Keith's Sporting Goods
Strategy and Implementation Summary
At KSG, we will use a marketing strategy of developing long-term relationships with our customers. Being seen at various sporting events will be an integral part of getting our name out in the community. We want to be seen as a business that cares for our customers and wants to see them accomplish all of their goals.
We want our customers to have complete trust in what our employees are saying. We want them to know all the information about what they are buying and what is best for them. If customers have a good experiences with what they purchase, not only will they more likely be repeat customers, but also they will tell friends about the quality of operations at KSG.
5.1 Competitive Edge
The number one competitive edge KSG enjoys is providing customers with unparalleled service. As a smaller operation it will be impossible to compete with Copeland’s and Play it Again sports on a price basis. Providing a group of knowledgeable employees who enjoy what they are doing is the only way that KSG can provide the best customer service. Once this trust is built our competitive advantage can be sustained.
The type of equipment that KSG will provide will also be a source of competitive edge. Much of the equipment found at Keith’s will not be found at larger chain stores. For example, it is tough to find polymeric equipment. In fact the only way one can buy high-quality equipment is through catalogs. It is the same for many types of shoes. Stores like Copeland’s tend to only sell shoes that are trendy. Trendy shoes are not a sign of high quality; they are a sign of great marketing. KSG will provide quality equipment and will be able to educate customers on why certain equipment is better than the typical mainstream brand equipment.
5.2 Sales Strategy
Our sales strategy will be built around fully educating customers about their purchases. Many of the activities that our store is promoting impacts the human body. It is important for the customer to be fully aware of the repercussions of the activity and how each piece of equipment effects him/her. With that in mind, sales people will take care of customers on a first come first serve basis. We want to build customer relationships without discriminating other potential future customers.
Employees will be paid on an hourly wage with no commissions at the beginning of operations. After the store has a history, a commission package based on sales and education advancement can be implemented.
KSG will carry a relatively low amount of inventory and have frequent order repurchases in an attempt to maintain inventory levels and storage costs. Finally, all sales will be in cash to prevent the problems brought along by late accounts receivable payments.
5.2.1 Sales Forecast
The primary products at KSG will include athletic shoes and apparel. We will also sell equipment, supplements, and health literature, but we forecast shoes and apparel to drive sales. We expect strong growth in the first year due to intense marketing and exposure in the Eugene market. Forecasted sales are expected to increase by 2% from month to month in the first year and then grow at the industry average of 11.50% per year.


Sales Forecast | |||
Year 1 | Year 2 | Year 3 | |
Sales | |||
Shoes | $193,134 | $201,245 | $209,697 |
Apparel | $241,418 | $251,557 | $261,619 |
Total Sales | $434,552 | $452,802 | $471,316 |
Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
Shoes | $115,880 | $120,747 | $125,818 |
Apparel | $144,851 | $150,934 | $156,971 |
Subtotal Direct Cost of Sales | $260,731 | $271,681 | $282,790 |