Sanrio Surprises-Ontario (R2C Suppliers, Inc.

1.0 Executive Summary

Company Profile Summary
Sanrio is the official home of Hello Kitty & Friends. View our exclusive Hello Kitty shop online
- including bags, accessories, luggage, clothing, jewelry (3000 products). Raul Casanova is
an enthusiastic and knows very well the brand, with a retail experience in more than 20
years, first as store manager then owner in their own shops.

Market Research Summary

Ontario is the most important market in Canada, our target market is the general public to
visit the mall where we have a shop, our closest competitors only handle a maximum of 5%
of the catalog of Sanrio, which is an advantage for our boutique which has 100% of the
catalog and all the new products of the brand.

Marketing Summary
Sanrio has a marketing department ,that defines the strategies of the brand, the promotions
and offers permanent, the use of social networking and website of the brand are also
important tools used by Sanrio

The excellent treatment of the public is our main objective, ensure that the client return and
be faithful to our brand, this is the key to the success of our Boutique Sanrio

Finance Summary
The initial investment will be provided by the shareholders of the Company,for set up and
remodeling work will be requested a loan, and the sales and expenses have been projected
at 2 years, all the details and results can be viewed in the Financials section of this business
plan.

2.0 Company Profile

Business Overview
Sanrio is a premium boutique store that designs, licenses and produces products focusing on
the kawaii segment of Japanese popular culture. Sanrio's best-known character is Hello Kitty,
a little gijinka cat girl named Kitty White.With her red bow and no visible mouth except in
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the express written consent of the plan author.
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Sanrio Surprises-Ontario (R2C Suppliers, Inc.)

most of the animations, she's one of the most successful marketing brands in the world.
Sanrio Surprises-Ontario (R2C Suppliers, Inc.) was established on 19/10/2012

Raul Casanovas knowledge and experience as a store owner offers a value-added, personal
touch; ensuring clients receive personalized products and services.

Sanrio Surprises-Ontario (R2C Suppliers, Inc.) is a product business. Their products include
stationery, school supplies, gifts and accessories that are sold worldwide and at specialty
brand retail stores.

Company History
The idea of making our Company is the result after a study of in-depth market in the Province
of Ontario, analyzing the potential of the brand in the local market, the preference of
residents and tourists who visit the city, together with the background and personal
experience in the commercial area, allows us to affirm that the market in the province has the
potential for growth and is one of the best sites to establish the brand with Sanrio boutiques.

Management
Raul Casanova has been a Sanrio's brand enthusiast for the last 20 years. From his earliest
days he had a passion for this line of character around gift-giving occasions. He has worked
with others brands like Nintendo or Casio, and some products related with Sanrio in
differents stores, for the last 15 years. From 2012 he began to study the market and
opportunities to developing the brand Sanrio in this Province, and contacts with suppliers and
researching, helped to provide a solid foundation to decide open and owning a Sanrio
boutique .

Location
Sanrio Surprises-Ontario (R2C Suppliers, Inc.) will be store front. Sanrio Surprises-Ontario
(R2C Suppliers, Inc.) will be located at Markham city. According to the 2011 Canadian
Census, the population of Markham is 301,709, a 15.3% increased from 2006, which is
approximately 3 times faster than Canada as a whole. Markham's land mass is 212.58 km2
with a population density is 1,419.3 people per km2. The median age is 39.6 years old which
is slightly lower than the median age of Canada at 40.6 years old. The median household
income before taxes is $86,022, and after taxes at $75,135, which is a quite a bit higher than
the national average at $54,089. The median value of a household in Markham is $500,741
which is 1.8 times higher than the national average at $280,552. Markville is the 28th-largest
mall in Canada and the second-largest in York Region after Vaughan Mills with a gross
leasable area of 981,000 square feet (91,100 m2). Several transit networks make nearby
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Sanrio Surprises-Ontario (R2C Suppliers, Inc.)

connections to Markville Shopping Centre. They include: York Region Transit (YRT)/Viva, the
Toronto Transit Commission (TTC), and GO Transit.

Legal Structure
Sanrio Surprises-Ontario (R2C Suppliers, Inc.) is a corporation.

The company is a sole proprietorship and has been registered.

Sanrio Surprises-Ontario (R2C Suppliers, Inc.) is interested in securing trademarks.

3.0 Market Research

Industry Profile & Outlook
Sanrio Surprises-Ontario (R2C Suppliers, Inc.) operates primarily in the Retail industry.

Retail sales in November 2013 to November 2014 were increased in the Province of Ontario
in 1.4 %, while the first place as largest market in Canada. The 2013 sales in the segment
women's clothing and accessories was 15621.1 million and in girls clothing and accessories
was 3142.1 million ,and in the year 2014 does not register a significant difference, i.e. it
keeps almost equal, according to data from Statistics Canada (www.statcan.gc.ca). Within
this large market Sanrio wants to participate in a direct way, with the advantage of being an
important and popular brand around the world, a leader in the segment of fashion, gifts and
details. The brand Sanrio has its products in different retail shops ,but only represents 2% of
the total catalog, creating a need to establish an exclusive gift shop that allows sell all the
products in one place.

The retail gift industry has few barriers to entry. The largest is the manufacture of the product,
which represents the greatest cost input as well as the greatest risk to success, and Sanrio
has over 50 years of experience in the market that ensures stability and great strength. We
believe that the market is big, enough to support this concept brand in one place like
shopping centers.

The idea of boutique 100% brand is a concept that has evolved with the large shopping
centers, however, this concept depends on the Company and experience in marketing,
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and is shared only with the understanding that you will not share its contents or ideas with third parties without
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Sanrio Surprises-Ontario (R2C Suppliers, Inc.)

manufacturing, and maturation of the market over time, Sanrio today can offer a large
amount and variety of products, allowing Sanrio establish their own exclusive shops.

All the big brands have evolved the way of doing marketing, using social networking more
frequently, to have direct contact with the customer, the advantage of Sanrio is that uses this
new technology and the brand is recognized around the world, their products continue to
have a great acceptance and the consumer market grows next to the demand.

Local Market
Primary marketing initiatives will focus on Areas around Markville Mall in Markham

Key Competitors / SWOT Analysis

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and is shared only with the understanding that you will not share its contents or ideas with third parties without
the express written consent of the plan author.
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Sanrio Surprises-Ontario (R2C Suppliers, Inc.)

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and is shared only with the understanding that you will not share its contents or ideas with third parties without
the express written consent of the plan author.
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Sanrio Surprises-Ontario (R2C Suppliers, Inc.)

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Target Market
Sanrio Surprises-Ontario (R2C Suppliers, Inc.) is focused on selling to Consumers (B2C).

Target Market profile for Sanrio: Women aged 1 50 . College or University Students, recent
graduates or young professionals. Household income: >$30,000 All consumers that visiting in
general the shopping center. Consumers desiring products that provide quality and value or
for a unique souvenir . Neighbours in Markham city and York Region.

Keys to Success
Sanrio has been able to successfully handle the brand for over 40 years of existence, have a
department that defines and develops marketing strategies and promotions. Gives support
and marketing materials needed to boost sales, kept up to date trends and fashion. Has a
team specialized in this field that oversees this part of the business.

Variety of products, and quality, guaranteeing a secure success in this type of business, and
Sanrio owns both

4.0 Sales & Marketing

Pricing Strategy
Our prices will be equal to our competitors, the only difference is that the promotions and
offers are unique by being an exclusive gift shop of Sanrio

Our prices in comparison with others competitors are similar, but we have variety and 100%
all products availables with special offers and promotions.

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and is shared only with the understanding that you will not share its contents or ideas with third parties without
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Sanrio Surprises-Ontario (R2C Suppliers, Inc.)

The pricing strategy will reflect the high quality products and services offered. It is important
that service, product selection and advice be exceptional. Presence in social networks, and
strategies of brand marketing help sales and maintain a varied stock according to the
occasion and season.

Marketing Strategy
Our market strategy is managed by a department of specialists in the area in Sanrio and
supported with offers, promotions, social networking, printed material, advertising, etc.

Primary Marketing Activity: It is based on: * promotions and discounts * offers unique * use of
social networks * use of website * change according to season and product * exhibitions and
visual impact in store. We follow the policies of brand marketing and is a worldwide standard

Create point-of-sale to make visible the location of the store to the public in general

Guarantee an excellent attention to capture new clients

Offer the best prices and variety

5.0 Operations
Location(s)
It plans to open in Markville shopping mall, due to the potential of people daily to visit these
mall.

Sanrio Surprises-Ontario (R2C Suppliers, Inc.) website launched on 25/04/1996.

The website was created by Sanrio and show in detail all about the brand

Sanrio desing and develop the website

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and is shared only with the understanding that you will not share its contents or ideas with third parties without
the express written consent of the plan author.
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Sanrio Surprises-Ontario (R2C Suppliers, Inc.)

Legal Issues
We will have general liability insurance ($3M in liability) at a cost of $2000.00 a year

Human Resources
Sanrio Surprises-Ontario (R2C Suppliers, Inc.) will have 1 - 10 full time staff.

Sanrio Surprises-Ontario (R2C Suppliers, Inc.) will have 1 - 10 part time staff.

We will open with the owner one full-time responsible for the day to day operations, and for
managing staffing, payroll, supplier/vendor relationships and two part-time workers

Process/Production
The key suppliers will be from Sanrio Ltd California USA, with delivery windows of 7-10 days
maximum. The margins, on average will be 50% of the selling price.

Risk Assessment
We have thought about investing in advertising if it is necessary, and have a budget of
forecast in case we need it, however the brand Sanrio has the economic resources to help
us to promote through the Internet website of Sanrio , in written press, radio, magazines, etc.
Also we will focus our higher sales in commercial dates as mothers day, Christmas, etc and
to assure the maximum sales for those dates

Some adjustments may be made at low season of sales, such as: wages and employees, in
addition in case of low volume of sales It is planned to continue marketing strategies of
Sanrio around the world, also in the initial budget has a forecast of money for three months
of operations in the event if necessary use of support.

6.0 Financials
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and is shared only with the understanding that you will not share its contents or ideas with third parties without
the express written consent of the plan author.
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Sanrio Surprises-Ontario (R2C Suppliers, Inc.)

Start-Up Costs & Break Even

Sanrio Surprises-Ontario (R2C Suppliers, Inc.)s start up cost table can be found in the
attached financial spreadsheet that has been included as a separate document in the
Appendix.
Breakeven analysis

12766 / (20 - 10) = 1277

Sales Forecast
General Assumptions $12768 per month on average, Slow season: January-February

Cashflow
Sanrio Surprises-Ontario (R2C Suppliers, Inc.)s detailed cashflow for year 1 and year 2 can
be found in the attached financial spreadsheet that has been included as a separate
document in the Appendix.

Income Statement
Sanrio Surprises-Ontario (R2C Suppliers, Inc.)s income statement can be found in the
attached financial spreadsheet that has been included as a separate document in the
Appendix.

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and is shared only with the understanding that you will not share its contents or ideas with third parties without
the express written consent of the plan author.
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