Business Plan Arnold Adolph - Benita McNeill Lois Miller - Manuel Cavallin Confidential DocumentFebruary 13, 2008

Agenda Business Overview Key Objectives Operations Human Resources Marketing Finances Conclusion 2

Business Overview Incorporation – sole shareholder Hybrid grocery-convenience store Value added deli products Key success factors: Sales quantity Selling price Purchase price 3

Claude Derocher Derocher’s Market will strive to provide superior customer service and the highest quality groceries/convenience products at an affordable price, while operating as a profit and growth oriented business. 4 Mission Statement

Strategic Objectives Establish an image and name Capture increasing market share Provide diverse product line Offer value and convenience ROE of 20% 5

Location & Hours Monday – Friday 7 am to 10 pm (16h) Saturday 8 am to 9 pm (14h) 6

Floor Plan 7

8 Customized Fruit Display Case

9 Customized Vegetable Displayer

10 Dairy Displayer Case

11 Coffee & Slush Machine

12 Double Glass Deli Showcase

13 Walk-In Cold Room & Storage Shelves

14 Walk-In Refrigerator

H R – Organizational Structure Manager Claude Derocher Part-time (5)Full-time (1) Assistant Manager 15

Average Business Day 16 2 shifts of 3 people

Marketing Strategy Segmentation – Target market Who we are selling to – Contribution What we are selling – (value and convenience) – Distinction Our unique selling proposition

Marketing Mix  Product  Product mix  Quality (value) and convenience  Price  Cost based profit margin  Place  Laurentian neighborhood  Promotion  Posters  Flyers  Street signage

Competition – Direct Convenience store in area – Indirect Grocery stores

Marketing Plan Networking Direct marketing Advertising

Marketing Budget

Marketing Goals Quantifiable – Increase sales – Track sales – Increase customer satisfaction – Survey customers

Capital Requirements Debt $ 25, Equity $ 75,

Loan Amortization Amount: $ 25, Interest Rate: 8.3 % Term: 5 years 24

Targeted Sale 80% 90% 100% Revenue:1,290,960 1,488,638 1,695,394 Cost of Goods Sold 911,547 1,075,247 1,218,302 Gross Margin 379, , ,092 Operating Costs 401, , ,319 Net Income - 22,161 18,876 71,773 Projected Income Statement 25

Assets: 107, , , ,793 Liabilities: 54,692 48,797 44,644 40,102 Owner’s Equity: 52,839 71, , ,691 Projected Balance Sheet 26

Risk Analysis 27 IRR -10% IRR 24.6% IRR 175%

Dividend Policy 28 Based on cash minus working capital increased by a factor of 1.15 to allow for unexpected expenses. Any positive value from this calculation will be paid out to equity investors

Based on annual sales is as follows 20081,305, ,462, ,615, ,657, ,708, Break-Even Analysis 29

Financials IRR: 24.6 % ERR: 23.6% NPV: $ 82,

Key Ratio Analysis Current Ratio Debt Ratio Debt to Equity Return on Equity

Conclusion Opportunity – Quebec consumers Customers & Value Proposition – Value-added deli products Competitive Advantage – Location Human Resources Critical Variables – Prices, quantity Financials – ROI: 23.3% 32

Questions 33 Thanks for Shopping Happy Birthday Arnold