Sports tourism is one of the fastest growing industries in the world right now. The economic importance of sports has led to the creation of a vast industry worldwide. Currently, .it stands at $ 7.68 billion. It mainly contains two kinds of participants; one who are the athletes, who gather to take part in a sporting event held in various parts of the world, along with their coaching staff and the other participant is the audience or the fans of these sporting events, who gather up and visit these foreign countries in order to support their favourite teams and athletes. The genre of sports tourism is mainly classified into two categories, hard and soft sports tourism. The hard one refers to the big genre of events such as the Olympics, FIFA World Cup and other major sports carnivals, while the soft one refers to the occasional short period of sporting events like skiing, running and hiking, which are mainly signed up by tourists for leisure purposes (Hui, 2013). There are two events which attract the most tourists from all over the world, which are the Olympics and the Football World Cup. They are held every four years. These two events are backed by huge sponsorships, star athletes and players. A wide range of activities are planned from the construction of stadiums to the booking of hotels, everything is done on a prior basis, for the visiting tourists as they bring a lot of economic opportunities for the host countries.
With the upcoming FIFA 2018, which is coming up in Russia, efforts are being made to savour the business opportunity. With this intention, a sporting accessories shop named ‘SocX’ has been proposed to open with two outlets at Moscow and St. Petersburg. It is expected that the shops would be able to make most of the World Cup which is due to take place in June 2018. A total of thirty two teams have qualified for the grandest stage of them all. Each of these teams have been divided into eight groups consisting of four members. Russia, being the host country gets the automatic qualification nodes. In this year, a number of footballing giants have failed to qualify, while on the other hand, for the first time in the history of the game’s biggest spectacle, four Arab teams have qualified, leaving the big guns behind them. These four Arab teams are Egypt, Saudi Arabia and Tunisia. As the tournament begins its Russian journey, the addictive fever of the world cup has taken over the entire world. From selling of Panini stickers, sale of jerseys of Football stars like Cristiano Ronaldo, Lionel Messi, Neymar Jr and others have taken place, including the sale of football boots, bands, face paints etc. A promotional poster of football’s biggest spectacle has been provided below:
(Source: fifia.com, 2018)
Market research refers to the assessment of the needs of the target market of the business. In this regard, important information are realised with regards to the target market’s taste and preferences, their spending habits, duration of their stay and a host of other factors, which are necessary for the success of the business.
With regards to the FIFA World Cup, at Russia, some vital research was done by the owners of SocX. This business proposal was the brainchild of Mr Reeves, a prominent resident and business man of St. Petersburg, Russia. He is an ardent fan of the beautiful game which compelled him to achieve his dream of opening this shop apart from his business preoccupations. It was his objective to set up two branches of his SocX sport accessories with the help of his family members and business staffs. It was only because of his zeal for the game, which compelled him to meet the Chief of the Organising staff Mr John D’Souza for helping him in arranging the stalls around the stadium. Mr Reeves had no problem in convincing his Italian friend Mr Barzgali for arranging the distribution rights of the famous Italian Panini stickers. The owners, being the residents of St. Petersburg, had no issues with arranging parleys with the team of the organising staff and the head of the organising staff of the Krestovsky stadium. Some important market related information were collected during these meetings, some of which have been listed below:
The above information is very important for the setting up of up of the two sporting accessories of SocX. The daily intake of tourists and the domestic folks would help in increasing the various kinds of products, which would be up for sale during the sporting carnival of the world cup (Stehle & Weber,2013). This would serve as a big opportunity for the owners of SocX. As the footfalls of the tourists and the ardent fans of the beautiful game increase, the sale of sporting accessories would continue to rise. The sporting carnival of world cup would provide an excellent platform for selling of the sports related accessories. Thus, it can be said, that for opening a sports accessories shop or any of its branches across the country of Russia during the time of world cup is a wonderful opportunity, which must be exercised to the hilt.
|
Key Activities |
Value Propositions |
Customer Relationships |
Customer Segments |
|
|
· Local raw material suppliers · Local employment agency · Friends and Professional associates |
· Buying of raw materials for jersey making · Making of the necessary goods to be sold · Distribution of the sporting goods to the second branch outlet in Luzhniki Stadium, Moscow. |
· Providing top quality sporting accessories. · Helping the customers feel a sense of pride by making the national team jerseys with top quality polyester fabric. |
· Dedicated personal service to be the top most focus. · Best ambience for providing self-service. · Special cases for providing best quality auto mated services, if need arises. |
· The target market id the sports enthusiasts and tourists. · Mainly SocX’s main focus lies on two main target groups, the (12-25) group and the (25 to 45) age group, keeping in mind the love for football across diverse age groups. |
|
Key Resources |
Channels |
|||
|
· Local friends and professional associates · Employers and sports enthusiasts · Internet services. · Good source of suppliers |
· Personal channels · Local transport facilities in and around St. Petersburg and Moscow. |
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|
Revenue Streams |
||||
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· Raw material acquisition cost · Production cost · Transportation cost · Marketing cost · Cost of other extra services · Employee cost (Salaries) |
· Sales of sporting accessories (through offline mode) · Gaming machines · Sponsorships · Fun games and other allied activities. · Web based sales. · Sale of Panini stickers. |
In this section of the entire report, the proposed management and the production section would be discussed in detail. The first part would vividly describe the proposed management structure of SocX. In the case of the proposed management system which would be adopted by the owners of SocX is the system of minimum investment and maximum returns. The proposed management of the company involves the following activities:
There will be a Head Manager that may be the owner, who would oversee every operations of the branch (shop). Along with him, there would be a person who would be in charge of the sales; he or she would look into the sales activities of SocX. Next, a person would be there who would be in charge of the online activities of the shop, advertising, selling online, taking orders online, would be his or her main job (Wäsche, Dickson, & Woll, 2013). There would be another person who would be in charge of the gaming department, which would be provided to the visiting audience, by providing an opportunity of gaming services to the. Along with this, another person would handle the accounts and monetary items of the shop. It includes keeping a track of the money received from sales, all the expenses incurred and the revenue received from different sources. Additionally, along with the person mentioned above, there would be a person, who would look after the supply and distribution of the raw materials and the different goods and merchandise, which have been ordered online. He would ensure that the St. Petersburg branch of SocX, get the right quantity, right quality of raw material (good quality polyester fabric) at the right time, in order to ensure a smooth and uninterrupted production procedure. Along with this, the person would also be responsible for ensuring timely supply of the different kinds of goods which have been ordered online.
In order to show that the shop has been opened to spread the love of the beautiful game of football and to cater personally to the requirements of the different sports enthusiasts, it will be the management’s objective to ensure that all the above positions, would be filled by the close friends, family members and other known associates. The most imperative objective of the owners of SocX remains the fact, which is the owners want to enjoy themselves in the mirth of the world cup and continue to do so for many years to come, just for the love of the beautiful game.
(Source: FIFA.com, 2018)
Hiring objectives of SocX:
Additionally, a need of hiring different assistants for the purpose of helping them out would be necessary. In this case, hiring of relevant people with or without the required experience would be done. Even the fresher’s could also apply or any teenager from the list of family and friends. The objective remains to become a sports family oriented shop, which have a great deal of warmth and love for the beautiful game. Moreover, these steps would also put less strain on the limited financial resources of SocX. It remains the foremost objective of the owners to portray themselves as the lovers of the beautiful game, who have set up the shop in order to promote the feeling of brother hood and This would help the owners to ensure smooth running of the Moscow outlet, without putting any kind of financial or man power pressure.
|
Products/Services |
Price($) |
|
Football jersey |
25$ and so on (price per jersey) |
|
Football boots |
30$ till 90$ |
|
Gaming consoles charges per hour |
10$ |
|
Panini stickers (album) |
103$ |
|
Player identification fun games |
10$ |
|
Sales from online orders (per day) |
500$ |
|
Total |
678$ |
Panini Stickers are going to be back in the FIFA World Cup, 2018 after a gap of several decades:
(Source: Hindustantimes.com, 2018)
As any other business setup, SocX would also incur various kinds of expenditure for the day to day running of the business. The aim of incurring these expenses is to ensure that a smooth and effective business goes on without any kind of untoward interruptions. All these expenses, sales, and efficient organisation is being done under the veil of the primary objective of the owners, which is to enjoy the fever of the 2018 world cup at Russia (Zimbalist, 2016). The detailed mentioning of all the necessary expenses of the shop and the overall business has been provided below:
|
Expenses: |
2018 ($) |
2019($) |
2020($) |
2021($) |
|
Monthly rental |
800 |
1050 |
1500 |
1700 |
|
Transportation charges for bringing in and sending materials and products |
150 |
200 |
300 |
450 |
|
Gaming consoles and T.V(x4; two each for both branches) |
500 |
550 |
600 |
1000 |
|
Payment to suppliers |
1050 |
1300 |
1500 |
2500 |
|
Raw material + acquisition cost |
1200 |
1500 |
1900 |
2500 |
|
Cost of setting and maintenance of online marketing websites and domain |
500 |
550 |
600 |
1000 |
|
Employee expenses |
3000 |
4000 |
5500 |
8000 |
|
Miscellaneous expenses |
200 |
250 |
300 |
500 |
|
Total |
7400 |
9400 |
12,200 |
17650 |
|
Revenue Sources: |
2018($) |
2019($) |
2020($) |
2021($) |
|
Revenue from sales of sporting accessories |
750,000 |
900,000 |
1050,000 |
1140,000 |
|
Gaming console |
36000 |
72,000 |
90,000 |
108,000 |
|
Panini stickers |
3000 |
– |
– |
– |
|
Player identification fun games |
90000 |
120,000 |
225,000 |
270,000 |
|
Sponsorships |
20,000 |
30,000 |
35,000 |
45,000 |
|
Total |
899,000 |
1122,000 |
1400,000 |
1513,500 |
As the income section mentioned in the above portion constitute a major portion of the sales forecast for the mentioned period of three years, from the inception year of 2018, which is why the sales figure have been reproduced over here:
It can be seen that the total amount of sales for the period has continued to increase, especially the revenue from sale of sporting equipment’s have been tremendous. The forecast is based on the after math of the Fifa world cup. Due to the world cup, the economic well-being of the residents of St. Petersburg would increase, consequently the popularity of the game in the area would increase. This bodes well for the economy of Russia.
Conclusion:
Through this report, a detailed understanding of the event of sports tourism has been gained. The aims and objectives of sports tourism and the various activities involved in it has been discussed below. The report throws ample light on the FIFA world cup 2018, which is bound to take place in Russia. There remains a series of items which would be sold through the setting up of the shops near the two branches of St Petersburg and Moscow. Thus through this, a robust business proposal about the various kinds of expenses and incomes have been discovered and seen.
References:
2018 FIFA World Cup Russia™ – Teams – FIFA.com. (2018). Retrieved from https://www.fifa.com/worldcup/teams/index.html
Daily Nation. (2018). Russia creates ‘tourist police’ for World Cup. [online] Available at: https://www.nation.co.ke/sports/football/Russia-creates-tourist-police-for-World-Cup/1102-4368986-7b5sd4/index.html [Accessed 22 May 2018].
Design, V., Interdisciplinarian, T. and Me, A. (2018). The 20 Minute Business Plan: Business Model Canvas Made Easy. [online] Alex Cowan. Available at: https://www.alexandercowan.com/business-model-canvas-templates/#Step_8_of_10_Key_Partnerships [Accessed 21 May 2018].
Hui, W. A. N. G. (2013). Inquire into Characteristics and Development of Sports Tourism Industry Strategy. ?????? ?????, 69-69.
Makarychev, A., & Yatsyk, A. (2015). Brands, cities and (post-) politics: A comparative analysis of urban strategies for the Universiade 2013 and the World Football Cup 2018 in Russia. European Urban and Regional Studies, 22(2), 143-160.
Müller, M. (2014). Event seizure: The World Cup 2018 and Russia’s illusive quest for modernisation. Social Science Research Network.
Müller, M. (2017). How mega-events capture their hosts: event seizure and the World Cup 2018 in Russia. Urban Geography, 38(8), 1113-1132.
Nooij, M. D., Berg, M. V. D., & Koopmans, C. (2013). Bread or games? A social cost–benefit analysis of the World Cup bid of the Netherlands and the winning Russian bid. Journal of Sports Economics, 14(5), 521-545.
Nooij, M.D., Berg, M.V.D. and Koopmans, C., 2013. Bread or games? A social cost–benefit analysis of the World Cup bid of the Netherlands and the winning Russian bid. Journal of Sports Economics, 14(5), pp.521-545.
Ritchie, B. W., & Adair, D. (Eds.). (2014). Sport tourism: Interrelationships, impacts and issues (Vol. 14). Channel View Publications.
Stehle, M., & Weber, B. M. (2013). German soccer, the 2010 World Cup, and multicultural belonging. German Studies Review, 36(1), 103-124.
Wäsche, H., Dickson, G., & Woll, A. (2013). Quality in regional sports tourism: a network approach to strategic quality management. Journal of Sport & Tourism, 18(2), 81-97.
Zimbalist, A. (2016). Circus maximus: The economic gamble behind hosting the Olympics and the World Cup. Brookings Institution Pres
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