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Business Model
Narrative representation
GINGA FOOT
19 march 2014
Authors : Florence Krémer and Fabrice Scipion.
Thanks : The authors would like to thank Rihane Mouhib for sharing his story along with the
adventure of creating Ginga Foot.
The text’s aims and the information contained within it date the project before its launch in
September 2012.
This document was edited using GRP Storyteller
www.grp-lab.com
Summary
GINGA FOOT Business Model synthesis
G
R
P
3
Value generation
Project leader(s)
Value proposition
Value manufacture
5
6
8
10
Value remuneration
Revenue sources
Volume of revenue
Performance
12
13
15
17
Participation in value exchanges
Stakeholders
Conventions
Ecosystem
19
20
22
24
Appendix
26
GINGA FOOT Business Model synthesis
Rihane Mouhib has been passionate about sport since childhood. Born in Morocco in 1978, he
renounced a career as a professional footballer to pursue his higher education in France. After
obtaining a Masters in entrepreneurship at the University of Bordeaux, he worked for six years as
a business advisor at ADIE (the Association for the Right to Economic Initiative), whilst
constructing his own project for a business start-up. Rihane Mouhib was by nature prudent when
it came to observing the eco-system of his project and building a sustainable Business Model.
Starting a business gave him the opportunity to be the lead actor in his own life, finding there the
same adrenalin that he knew in sport. Tenacious, persevering, open, endowed with a noticeable
taste for competition and effort, he sees entrepreneurship as a collective sport and fundamentally
partner-based. Very sociable, he saw how to weave a network that would lead him to concretize
his project.
His idea was to open an indoor football -futsal- stadium offering various other activities (dance,
capoeira, percussion, Brazilian jujitsu, refreshments). Futsal is a popular sport all around the
world and it is the only 5-aside football recognized by the FFF (The French Football Federation)
and by FIFA (The International Federation of Association Football). Rihane Mouhib had
discovered the concept in Spain and he wanted to import it into France. The Ginga state of mind
(in Brazilian, the art of movement) was at the heart of his idea (the Ginga Foot trademark was
registered in 2008). His competitive advantages are: a standards-level stadium, quality
equipment, an exceptional location at the heart of the Oxylane village of Mérignac near one of
the biggest Décathlon in Europe, a friendly atmosphere and an influential network. Ginga Foot’s
target clientele is very broad because it encompasses businesses and individuals, sports clubs
and amateurs, men, women and children of all ages, in an important commercial and
demographic hub of the French department, Gironde. The concept can be duplicated into other
Oxylane villages in France and abroad.
The two key resources, namely the site and the stadium, will be supplied by the Oxylane group.
Ginga Foot will pay the group rent in return for running the stadium. Purpose-built, the stadium is
endowed with quality anti-shock floor coating, with maintenance ensured by an automatic
washing device. The structure, open 7 days a week, will run on few staff: Rihane Mouhib and
Tiago Reis de Jesus will take turns to welcome clients, and will share the remainder of the tasks
(building maintenance and ordering drinks for Tiago, management and commercial prospection
for Rihane). Other activities, aside from futsal, are led by a variety of independent associations
and professionals. The Brazilian atmosphere is reinforced by themed decorations (furniture,
graffiti, Nike-sponsored outfits). Manufacturing a service that hires out grounds means paying
particular attention to the capacity fill-rate, and ensuring that the quality of service is consistent.
The communication policy is by word-of-mouth, a Web site and by activating the international
network (FFF), rather than by any advertising campaign.
At launch, Ginga Foot’s revenues will come exclusively from the stadium in Mérignac, the Web
site not being a point of sale. At the heart of this sole distribution channel, one can nevertheless
distinguish various revenue sources based on activities and clients. The main business activity is
the hiring out of futsal pitches, which contributes three quarters of predicted revenue. Peaks in
activity are anticipated during the week, between midday and 2pm, and in the evening, but
business activity does not have a noticeable seasonality. The remaining quarter of the revenue
stream will come from related activities (orders at the bar and the various Brazilian activities on
offer). Clients consist of individuals and clubs that take part in the Ginga championship. All clients
pay in cash. The loyalty card encourages the frequency of their visits and the progression of
revenues.
Maximum revenue is predicted at 1847k€ HT. Two revenue hypotheses are envisaged, based on
a low capacity fill (between 17% and 25%) and a higher fill (between 22% and 36%). Revenues
at launch are hence predicted at 323 000 euros (pessimistic hypothesis) and 418 000 euros
(optimistic hypothesis), allowing in both cases for a very significant growth potential.
Business Model GINGA FOOT
3
A provisional profit and loss account has been established for the low and high hypotheses. A
capacity fill-rate of just 12% is enough to make the operating result positive. Operational
profitability is strong, and results performance is explained by the fact that the activity relies
essentially on covering fixed costs, which the project leader has sought to minimize (eg. a
negotiated rent). Return on investment is high. The business controls its maintenance costs
better than its competitors do. In a non-financial context, it benefits from a remarkable level of
recognition from the FFF and from Europe’s leading sports distributor.
The project leader knows that one never starts a business alone. His success relies on win-win
partnerships that will permit him to fund his operations and develop a unique value proposition.
The key partner for his business is the Oxylane group, which he managed to enlist in his
business thanks to financial support from the FFF (the institutional guarantor) and C. Baudot
(who brings to the table credibility as a business person plus a network of experts). His ambition
to duplicate the concept elsewhere enabled him to convince the suppliers of the French team, the
manufacturer Tarkett, to supply him with the best floor covering at a negotiated price. The project
leader brings his network and his skills into managing his business. He knows he can count on
the unconditional support of his family and his two associates, with whom his relations are
friendly and trusting. His business reputation is in the hands of his future clients and the clubs of
the FFF, to whom he wishes to offer a quality tool that perfectly fulfills their expectations.
Thanks to his Masters in entrepreneurship and his professional experience at ADIE, the project
leader knew the conventions specific to starting a business. He sought accompaniment in the
editing and presentation of his Business Plan. An understanding of the conventions particular to
the football sector (domination of the football discipline at the heart of the FFF, respect for
hierarchy) was useful for him to advance his project without colliding with the organization in
place, and to identify the moment when codes specific to futsal were ready to be accepted into
the domain of football. Beyond these conventions, the creator should not neglect the conventions
of his partners, be they those of the town council for obtaining a construction permit or the rules
for negotiating with large retailers. These conventions should be reexamined in the case of
replicating activity abroad, to take into account any eventual cultural particularities.
Ginga integrates itself into its ecosystem by respecting the organization of futsal as set out by the
FFF. Its championship does not compete with that of the FFF but, rather, aims to generate new
licenses that can create and nourish value within the system. With regard to its numerous
competitors, Ginga differentiates itself by opting for futsal instead of soccer or jorky ball,
exploiting a demand stimulated by existing businesses. The business enriches its commune and
the town of Mérignac with a new and federative leisure service. At the heart of its environment in
the broader sense, the project benefits from political opportunities (potentially capturing young
audiences as part of reforms to school hours), economic ones (Nike’s interest in sponsoring
futsal), socio-cultural ones (futsal as a vector for social contact) and technological opportunities
(the possibility of filming client matches and rebroadcasting them in the bar).
4
Value generation
Project leader(s)
Value proposition
Value manufacture
Project leader(s)
A passion for sport
Rihane Mouhib grew up with sport. Born in 1978, in Morocco, to a middle class family in
Casablanca, he discovered football when he was 6 years’ old. His skill, along with his desire to
play, enabled him to join a selective training center when he was 12 years’ old, where he trained
daily whilst a pupil at the French Lycée in Casablanca. He could count on the unfailing support of
his father, who never stopped encouraging him to carry on. He himself, in his youth, had been an
international rising star in football, and he offered his son, the only boy in a family of three
children, the chance to practice football, athletics, judo, tennis and surf in a club environment.
These various experiences marked Rihane Mouhib from very early on with a drive for effort and
competition and also with a sense of solidarity and a certain independence. If his father passed
on to him his passion for sport, then from his mother he inherited a taste for studying. Rihane
Mouhib found sport to be a great means of social integration. His performance at football made
him popular in high school.
All the same, Rihane Mouhib did not embrace a professional career in football, despite the
excellent level he had reached. An opportunity had presented itself when he came of age. A
friend of his father’s, an agent for FIFA, invited him to join a training center in the USA. He
preferred, however, to follow his mother’s advice and leave for France to go to University, as his
elder sister had done before him. He enrolled for a DUT in Business and Public Administration at
the IUT in Perpignan and, in parallel, for the Perpignan Football Club. Far from his native country
and its culture, Rihane Mouhib discovered France. Very sociable by nature and at ease in all
social circles, he tied some good knots of friendship. Although his parents supported him
financially, Rihane made it a point of honor to gain independence. He financed his studies
himself and was not put off by any job, no matter how manual (cargo handling, camp-site
maintenance, harvesting). After obtaining his degree, he continued his studies with a degree and
then a Masters in Economic and Social Administration from 2001 to 2003, where three decisive
encounters led him to a personal and professional turning point.
Some decisive meetings
His first encounter was with Tiago Reis de Jesus, who would become a close friend and his
future associate in the creation of Ginga Foot. The two men had a number of points in common.
Tiago Reis de Jesus’ experiences were multicultural. Of Brazilian origin, he had travelled in many
countries and spoke several languages. Like him, he had been a footballer in a training center.
Following this, he had taken the professional route in clubs including Nimes Olympique, Principat
Andorra and Spora Luxembourg. It was likewise at this time that Rihane Mouhib met MarieLaurence, whom he married in 2003. The couple decided to start a new life in Bordeaux.
The desire to start his own business was already there. This path seemed quite natural to him as
he had no shortage of models around him. Rihane Mouhib had grown up surrounded by
storekeepers and his mother’s family counted several entrepreneurs. Nevertheless, Rihane
Mouhib waited; he wanted to put all the chances on his side by first obtaining a Bac +5. He
followed the classes of a Masters in Economic Science and found in the University of Bordeaux’s
Master 2 in entrepreneurship the training he needed to prepare his project. His business idea
was oriented around the creation of an indoor football complex.
The project required serious resources, considerably more than the savings he had patiently built
up during his studies; and Rihane Mouhib knew it. However, he had understood, both from his
personality and the teachings of his Master 2, that entrepreneurship is fundamentally a partnerbased activity. While he was building his network, an accident led him to cross paths with
Christophe Baudot, sports doctor, a specialist in high-level sportspeople and one of the founders
of the Sports Clinic in Mérignac. They got on well from the start. Christophe Baudot had been the
doctor for the Moroccan team during the Davis cup. He wanted to help Rihane Mouhib try his
luck and he offered him his help.
Entrepreneurial capacities and motivations
6
From 2006 onwards, market conditions were right for launching the project. But Rihane Mouhib
wanted to assemble all the elements he needed to construct a Business Model that would be in
his favor. After a professional experience with a large retailer, he joined ADIE as a business
creation advisor, where his missions would lead him, over 6 years, to welcome project leaders,
guide their loan requests and animate a network of partners (banks, local councils, the
departmental authority). In parallel, he fine-tuned his own project and grew increasingly closer to
the Oxylane group. This entity was seeking to develop a cluster of original sports activities
around its beacon brand, Décathlon. Getting the Oxylane giant to sign up to his business was a
test of endurance and patience. Rihane Mouhib held these two qualities and, with help from his
network, and with Christophe Baudot as guarantor, he finally convinced them to join him, after a
marathon 5-year run. His project was primed by the Réseau Entreprendre Aquitaine.
Rihane Mouhib would like to open his business in September 2012 with his two associates,
Christophe Baudot and Tiago Reis de Jesus. The enterprise will be an SARL (a French limited
liability firm), and the three men will be its shareholders. This method of governance corresponds
to Rihane Mouhib’s collective vision of entrepreneurship. It is no coincidence that the position he
held on a football pitch was mid-fielder, responsible for distributing the ball to his teammates, as
an interface between them. He likes the game, setting challenges for himself. His personal
ambition is to be lead actor in his own life, to live it with passion, and never to let anyone down.
As in sport, the adrenalin that sets a business into motion is a powerful leverage for action.
Nevertheless, although he is not afraid of instability, Rihane Mouhib has a long-term vision and
also feels the need for security. This paradox is well expressed in the analogy he draws between
the business creator and the stuntman: “Take as many risks as possible without getting hurt”.
Photo 1. Rihane Mouhib and Tiago Reis de Jesus (2012).
7
Value proposition
The idea
The idea of opening a complex dedicated to futsal took seed in Rihane Mouhib’s mind from 1999.
While travelling in Spain, he visited a futsal complex in Catalunya that inspired him. Futsal is a
discipline born in South America in the 1930’s that plays 5-aside on a pitch of 400 m² to 800 m².
It is based on the rules of football, but is also influenced by other collective sports such as
handball or basketball. It can be played in a hall or outside. The original spirit of futsal is not
simply to play football on a small pitch, but to create a sport in its own right with its own rules for
educating young adults, making them more responsible and stronger as a group. The greatest
Brazilian players, such as Pelé, Socratès, Ronaldinho or Kaka developed their technique and
their legendary ball-touch on the quick surfaces of futsal. Although Brazil and Spain remain the
reference points in futsal, today the sport is extremely popular worldwide and is the only 5-aside
football recognized by the FFF (The French Football Federation) and FIFA (The International
Federation of Football Association). Why not develop a similar complex in France, in Perpignan
for example, the city where Rihane had done his studies? He ran the idea past one of his friends
but the two men did not share the same strategic vision. The first complex would materialize
without Rihane. In 2001, the Pleïsport complex opened in Canet, in the department of Roussillon.
It offered an inter-business futsal championship with more than 100 firms registered. Rihane
Mouhib learnt from this experience that project leaders must make themselves indispensable to
the realization of their projects. It was without bitterness, and still on good terms with the
manager of Pleïsport, that he took his idea with him to Bordeaux, where he fine-tuned it. For a
long time, Rihane Mouhib had felt the need to give his project a particular flavor. He found his
inspiration in Ginga, a key concept that he would inscribe at the heart of his business idea. Of
mythic proportions in Brazil, where it is embedded in football culture, Ginga means
simultaneously the art of movement, swaying hips, balance and rhythm, but also style, grace,
cunning and charm. It is likewise a state of mind that links sport, leisure and competition in an
atmosphere of celebration and pleasure. Rihane Mouhib saw in it a great means of differentiating
himself. The Ginga concept corresponded well to Rihane’s values of sharing and conviviality. It
became indistinguishable from the futsal project to the point of giving it its name: Ginga Foot.
Identifying the actors in the Bordeaux eco-system also enabled him to fine-tune his project. A
meticulous survey of his competitors informed him in particular about the substandard quality of
floor surfaces in use. Ubiquitous in existing soccer complexes, synthetic turf was, on the one
hand not very hygienic and, on the other, the source of numerous injuries. The starting idea was
hence strengthened by the notion of safety. The idea was fleshed out as follows. The 3000 m²
complex in the Oxylane village would propose various other activities (dance, capoeira,
percussion, goods on sale, refreshments). The originality of the complex would reside in its FFF
standard material and in its 100% Brazilian atmosphere. The Ginga trademark was registered in
2008. It is owned by Rihane Mouhib and he authorizes Ginga Foot to use it.
The business opportunity
The market was attractive and futsal was arriving on the scene. There were other ways of playing
football on small pitches, like soccer 5 or jorky ball, but these had different rules from futsal and
were not recognized by the FFF. Although the discipline counts a great number of skilled players
in the world (according to the CBF - the Brazilian Football Confederation – there are more futsal
licenses than football licenses), France shows an obvious lag. In 2011, there were only about 10
private futsal complexes, still no professional championship and only a few regional tournaments.
However, futsal was becoming organized. A national tournament, the futsal RTL, saw the light of
day in 2007 and the FFF plans to launch a semi-professional French futsal championship in
2013, following the precedents of all the countries on its national borders. Rihane Mouhib saw in
this the opportunity to be the pioneer of futsal development in Aquitaine by becoming the anchor
point for all the regional competitions accredited by the FFF.
8
No competitors were offering a futsal complex comparable to Ginga Foot. In fact, the 6
complexes already in place in the agglomeration of Bordeaux only enabled people to play soccer
5 or jorky ball. A detailed competitive analysis (see Annexes 1 and 2) shows up the homogeneity
of pricing and playing conditions of direct competitors in the catchment area. (All the complexes
offer an interior floor covering of synthetic turf, plus a bar, and they all charge an average all-in
price of between 6 and 8 euros an hour in peak time.) In this market, the key success factors
arise from the accessibility of the site and the atmosphere of the complex, where the manager’s
personality can play an important role (their taste for the sport, their footballing network). Fixed
costs being important, each complex had likewise to work out how to optimize its space in offpeak times. On the borderline between sport and leisure, futsal could suffer from indirect
competition, both from other sporting activities (played in clubs or halls) and from maledominated leisure activities (full-scale outdoor games, paintball, laser quest, go-karting, etc.) In
an informal way, it is not impossible that individuals could benefit from free sports resources, with
open access offered through their firm or their commune. Rihane Mouhib opted for a hybrid
strategy: he held his position in the low end of the average market price (8€ per hour in peak
times) and played his differentiation card whilst offering a better quality service than his rivals did.
He has a variety of competitive advantages:
The concept in itself is different because it incorporates other activities (it becomes
accessible for men, women and children by proposing the varied activities of futsal, dance,
percussion, birthday parties, a bar, refreshments, etc.; it benefits from a Brazilian
atmosphere that promotes relaxation and a sense of escapism, both of which are
reinforced by the décor and background music.)
The facilities conform to standards and are of high quality (the floor covering, identical to
that of the French Football team, makes the game completely safe through a better shock
absorption); the complex counts 60m of bay windows, numerous entry points and offers
individual changing rooms; it is up to FFF standards (each pitch having its own touch
lines).
The site is unique (next to one of the biggest Décathlon stores in Europe), and is in
synergy with the various activities available in the Oxylane village; it is located right in the
center of Mérignac’s commercial zone, home to 4000 businesses.
Rihane Mouhib has a professional network to draw upon (accreditation by the FFF, support
from the Aquitaine Football League, partnerships with Décathlon Mérignac, the Nike brand
- supplier to the French Football team-, and the Mérignac sports clinic, one of the founders
of which – Christophe Baudot – is director of medical staff for the French football team
Olympique Marseille.)
The advantages of Ginga Foot reflect a positioning anchored on two axes: professionalism, the
result of years spent working in a professional training center, and a relaxed and fun side that
drives the Ginga spirit.
Target clients. Unlike its competitors, Ginga Foot is aimed at a very wide public. The business
targets sporty people (the region counts over 200 football clubs and around 20 futsal teams), but
is also geared towards amateurs - men, women and children of all ages. With 65,000 residents
and over 4000 businesses, the town of Mérignac is the second economic and commercial center
of the department of Gironde, after Bordeaux. The neighboring councils of Bordeaux, Pessac,
Bègles and Talence present a total market potential of over 400,000 residents and 25,000
businesses (source: INSEE).
Ambition. In the medium term, the concept could be replicated through a franchise system into
other Décathlon Oxylane Village sites, in France and abroad.
9
Value manufacture
The identification and capturing of resources
Ginga Foot’s value proposition rests on two key resources: the location and the premises. It is
worth knowing that suitable sites (5000 m² near the main roads of Bordeaux’s Urban Community)
are hard to find and expensive. Most competitors choose to rent premises at high prices that –
for 5 soccer pitches – are up to 20,000€ per month. Discussions with officials responsible for
local development were going nowhere when, in 2006, an adviser from the Business and
Industry Chambers in Blaye suggested that Rihane Mouhib contact the Oxylane group. This
group is best known under the name of its flagship brand, Décathlon, the European leader in
sports products’ distribution. In full development, the Oxylane group wanted to surround its
Décathlon stores with sports complexes to create Oxylane villages, consisting of business
centers dedicated to sport. The Oxylane village of Mérignac did not own a futsal complex. Its
director at the time was immediately seduced by the Ginga Foot project, all the more so because
the market research conducted at her request showed a futsal boom across Europe, and
because the concept of Ginga Foot, oriented around the family, tallied well with Décathlon’s
values. Nevertheless, the Oxylane group saw no rush to develop the project – nor the need to do
so with Rihane Mouhib. Initially tempted to launch the business alone, Oxylane changed its mind
when Rihane Mouhib gained the support of Henri Emile, the FFF official responsible for futsal,
and Christophe Baudot, businessman and one of the founders of the sports clinic in Mérignac.
After negotiations, the Oxylane group agreed to invest over one million euros to build the future
Ginga premises, on 10,000 m² of land that it owned. Close to the Bordeaux ring road, the
complex is situated at the heart of the Oxylane village of Mérignac, in the most highly populated
commune of the Urban Community of Bordeaux (after Bordeaux) and close to the biggest
Décathlon store in France. The premises benefit from an ideal site, it is visible from a very
popular main road and offers clients a large car park. What is more, the total surface of the real
estate leaves open the possibility of developing several outdoor futsal pitches as well as a
terrace for clients.
Rihane Mouhib wished to be involved in the construction of the building, which included bay
windows and – to improve ventilation, 7 security doors rather than the minimum requirement of 2.
So as to ensure that futsal was played in completely safe conditions, he ensured - as a priority that the complex was equipped with a smooth, high quality floor covering. To this effect, he
negotiated with the manufacturer TARKETT to have the same floor covering as the French
football team in Clairefontaine (see Annexe 3). The floor is maintained by an automatic washing
device worth 6000€, guaranteeing a cleanliness incomparable with synthetic turf.
The compound, open 7 days’ a week, will be run by two full-time staff: Rihane Mouhib and Tiago
Reis de Jesus. They take it in turns to welcome clients. The two shareholders have divided the
remaining tasks between them (building maintenance and ordering drinks for Tiago,
management and commercial prospection for Rihane). As reinforcement, Thaïs Reis de Jesus,
Tiago’s sister, can be there in the evenings. The other activities - aside from futsal - are run by
different associations and independent professionals (Jaïr Tim’bodé for the percussion, Angelica
Artes Cenicas for samba dansing, Topete for zumbrasil, the Pitbull JJB team for the Brazilian
jutjitsu). The same associations contribute to the organization of birthday parties for a younger
public, on Saturdays. The Brazilian atmosphere of the site, one of the key elements in its
competitive advantage, is likewise reinforced by theme-based decoration. The furnishings, green
and yellow, are a direct reference to the colors of the Brazilian flag, traditional paintings decorate
the dance hall, and the changing rooms host vintage photographs of legendary Brazilian players.
On one of the interior walls, the managers will have a monumental, urban display created by a
professional digital artist on the theme of Brazil and futsal. Nike will supply the managers with
outfits specific to futsal. The business benefits from the use of an intangible resource: the Ginga
brand. It belongs to Rihane Mouhib, who registered it in 2008 and authorizes Ginga Foot to use
it.
The organization of resources Although it relies on tangible elements (the location and the
premises), the principal activity of GINGA is considered to be a service. Its manufacturing of
value must hence obey four constraints that goods producers do not have to deal with.
10
1. Unlike a product, a service cannot be put in stock. Each unrented pitch definitively
represents a lost opportunity to earn money. The managers must, as a consequence,
constantly find ways of optimizing the fill rate of their premises. The midday-2pm slot was
the focus of particular attention while door-to-door prospecting among the employees of
Mérignac’s commercial zone. Rhiane Mouhib is likewise considering making pitches
available by the day (instead of by the hour) to sports associations like Handisport or
Cecifoot. A suitable promotions policy (such as eventually using Groupon) could likewise
improve the occupation rate of the premises.
2. A service, immaterial by nature, is more difficult for clients to evaluate than a product. It is
therefore useful to reinforce the presence of tangible elements that will have the effect of
positive indicators. The quality of the floor covering is an example of this: it represents
global service quality. It becomes all the more necessary to educate the client to alert them
to the exceptional character of the elements that constitute the service.
3. Service quality is not as homogenous as quality in a production chain, because service
depends on numerous human qualities, including how full the premises are. Rihane
Mouhib pays particular attention to welcoming clients. He has fine-tuned a standardized
procedure that includes a guided visit of the premises for all new players, a process that he
aims to check using mystery clients.
4. The client is present while the service is being produced. In so much as his actions and his
attitude affect how the service is rolled out, managers must think about the ways in which
client participation takes place. For a futsal service, the client contributes from the moment
they reserve a pitch. Rihane Mouhib anticipated an easy to use Web site that not only
facilitated online reservations but also put clients in touch with other players interested in
establishing a team. On the pitch, players are obliged to behave respectfully to one
another. Rihane Mouhib is guarantor of relations between players and will intervene, if
necessary, as referee, to ensure that this rule is respected, in an atmosphere that he hopes
will remain relaxed.
Delivering value
Ginga Foot’s launch will be relayed by the regional press and specialist football magazines. SudOuest and SoFoot are expected to devote several articles to the creation of Ginga Foot. An email
will be sent out to all the football clubs in the Region to inform them of the future opening of the
complex. News about Ginga Foot should likewise be included on the Web site of the Aquitaine
Football League, which will cite Ginga Foot once a month. To complement these targeted
operations, flyers will be distributed in sports halls, shops and on the Bissy Campus. However,
the managers are betting more on word-of-mouth and on activating their networks than on a
media campaign. The Girondins of Bordeaux will be invited to train at Ginga Foot. Rihane Mouhib
has participated in inter-business tournaments and he got on well with the teams of Thalès and
EADS, which he hopes to count among his clients. The business can likewise benefit from an
enviable visibility on the official Décathlon web site, and in their shops, thanks to the presence of
brochures. The firm’s vehicle will likewise serve as a publicity support. The business will have its
own Internet site (www.ginga-foot.com, see mock-up in Annexe 4) and it expects to reinforce its
presence on the social networks via its facebook page.
To increase the value generated, four services will be delivered for free: parking, access to the
changing rooms and individual shower rooms, the retransmission of matches and the possibility
of being filmed so that clients can watch their own matches.
11
Value remuneration
Revenue sources
Volume of revenue
Performance
Revenue sources
Even though the first ambition of the project is to replicate its activity in France and abroad,
Ginga Foot’s revenue projections are based exclusively on the Mérignac complex, its web site
not being a point-of-sale. Through this unique distribution channel, one can nevertheless
differentiate various revenue sources, depending on activities or clients.
Sources by service category
Principal activity: futsal. The primary revenue stream comes from hiring out futsal pitches.
This constitutes up to three-quarters of predicted earnings. The activity is expected to be
regular, with peaks in activity anticipated during the week between midday and 2pm, and in
the evenings. It will not, theoretically, experience any marked seasonality, except in August
(due to office vacations and vacations on the nearby university campuses).
The FFF’s approval of Ginga Foot’s premises authorizes the organization of official futsal
tournaments, as well as events for which Ginga Foot will make its premises available (training
programs for referees and futsal teachers)
On Wednesdays and weekends, Ginga Foot will propose organizing birthday parties and futsal
training for children. For adult birthdays, the hiring out of pitches and dance classes can double
up with a restaurant service (Brazilian starter dishes and main course), outsourced to a business
(a commission will be taken).
For young people, during the summer, the team will organize training internships in Brazilian
futsal techniques within a sporty and fun structure, the Ginga Academy.
Other activities:
The remaining quarter of revenues will come from related activities, all linked to the main service.
1. Lessons in zumbrasil, samba, capoeira, percussion and Brazilian jutjitsu, held by partner
associations;
2. Purchases made at the bar (drinks and snacks) constitute a complementary service that is
intended to become more significant following improvements to the menu (addition of
smoothies, energizing drinks without artificial coloring, snacks).
Sources by category of clients
The business has various types of client. The heart of its target market is men, individuals who
come from their own initiative, or business employees who come via their works councils, which
Rihane Mouhib either activated directly or via a communication sent around the LFA (League of
Aquitaine Football). Ginga Foot likewise targets women, offering group Zumba classes, but does
not wish this activity to take precedence over the main activity of futsal. Finally, young people
constitute a secondary target, as much for initiation classes as for birthday parties.
All the business’ clients pay cash.
Ginga Foot has put a loyalty card in place.
13
Photo 2. Example of promotion in flyer format
14
Volume of revenue
Rihane Mouhib has established a provisional turnover, formulating the two hypotheses described
in the following table.
Table 1. Provisional turnover (low and high hypotheses) in K€
Maximum turnover (corresponding to a fill rate of 100%) is at 2,210 K€ including VAT or 1,847 K€
excluding VAT. Above, the hypotheses were established based on a provisional, theoretical fill
rate, representing just 17.48% in the low hypothesis for year 1, and 22.63% in the high
hypothesis for the same year; that is less than 1/3 of the real production capacity of the
establishment. These hypotheses allow for a very significant growth potential in both cases.
The following table develops the previous elements by distinguishing between the two principal
sources of revenue: activities related to futsal and annex activities, called “other activities”.
Table 2. Provisional turnover (low and high hypotheses) in K€
The development of the activity is not single-service. As such, the simulations used to construct
turnover integrate different sources of remuneration. Turnover of the mother activity (futsalrelated) contributes about ¾ of business turnover. The rest is constituted of annex activities,
amounting to ¼ of total turnover.
15
Photo 3. The futsal game
Photo 4. Annex activities (zumbrasil, capoeira, etc.)
16
Performance
Financial performances
A provisional profit and loss account has been established on the basis of a low hypothesis
(Table 3) and a high hypothesis (Table 4).
Table 3. Provisional profit and loss account – low hypothesis in €
Table 4. Provisional profit and loss account – high hypothesis in €
17
One can see, in year 1 at a low hypothesis, that even a fill rate of scarcely 18% of total capacity
gives a positive operating result. As soon as the business reaches a turnover relative to 23% of
total production capacity (high hypothesis), it can earn a net result of over 60 K€. It is hence clear
that this business has a very high level of operating profitability. The profit and loss performances
are linked to the fact that this business need essentially only cover its fixed costs. The project
leader sought to minimize these to the utmost (the structure for a service-based activity requires
few staff). The main fixed cost is rent, which represents 1/3 of the total. The variable costs are
very low. What’s more, this kind of activity does not have any working capital requirements. The
working capital requirement is structurally negative because clients pay in cash.
Total capacity is at 13 hours’ occupation per day (from 10am to 11pm), which equates to hiring
out 65 pitches. One can see that it is enough to hire out 12 pitches to reach break-even point.
Because, at less than 1/5 of total capacity for the futsal activities, which translates as 12 pitches
per day, break-even point is reached thanks to the annex activities. See the financing plan in
Annex 5.
The return on investment is good. Not much capital was invested. Favoring operations on the low
hypothesis, one can see that investors will have regained the capital they invested in 3 years.
This reduction of the need for investment is linked to three key factors: - The transfer of the
building’s construction by the Oxylane group; - Negotiations over the price of the floor covering,
one of the most significant investments (96 000 euros reduced from 270 000 euros); - A large
part of the building refurbishments implemented directly by the partners, which limited spending
to the value of the raw materials. Business activity permits the repayment of external investors
over 8 years.
Ginga Foot manages its rental costs better than its competitors. Thanks to its partnership with
Oxylane, its rent is less than the market price for a comparable surface area.
Non-financial performances
Ginga Foot benefits from a remarkable double recognition: - by the professional football circuit.
The firm will be the only futsal complex in the Gironde department to meet FFF standards. – by
Oxylane, the leader in sports distribution, and the Décathlon store in Mérignac, with whom it
works in partnership. Its activity contributes to the promotion of sport in general and to the
dissemination of futsal values. It also participates in the integration of futsal into football training,
as is already the case in Brazil and in Spain.
18
Participation in value exchanges
Stakeholders
Conventions
Ecosystem
Stakeholders
Rihane Mouhib was aware that, in business, one never undertakes a new project alone. The
partnerships that he cemented would be crucial to the success of his project. Without partners,
he would lack the competitive advantage needed to differentiate himself from other 5 a-side
football complexes, but above all, and this came even before thinking about how to entice clients,
partners would be indispensable for him to build his operating tool, namely a sports facility
without precedent in France. And so he sought to lean on holders of resources within a win-win
type framework, whereby each stakeholder would enable him to give birth to an original and
sustainable business model; and would receive, in return, good reason to take part in the
business.
The project leader was ambitious for his project. In fact, it was no less than the European leader
in the distribution of sports articles, the Oxylane group, whom he wished to enroll in his deal. In
the best-case solution, Oxylane would be able to provide the real estate and fund the building of
the complex. Its Décathlon brand, in Mérignac, would equally be a source of traffic for Ginga
Foot and an unparalleled vector of communication, eventually enabling the project to be
replicated. But how could one negotiate with a giant in sports distribution, who has a reputation
for being difficult to do business with, when one is alone and without sufficient financial
resources? Rihane knew very well that his idea and his motivation, no matter how solid, were not
enough. He needed to gain legitimacy and provide Oxylane with guarantees. The solution lay in
the key partnerships that he would manage to establish by force of conviction, arousing his
partner’s interest each time. And so he grew closer to the French Football Federation (FFF),
where Henri Emilie had been responsible for futsal since 1998. The FFF needed local actors to
develop futsal. At the time, professionals had to make do with playing in gymnasiums, of which
few were available and they lacked the correct markings. His complex could be a future anchor
point for all the regional competitions. Henri Emilie ensured that the project would be professional
and would benefit from FFF support, providing the project’s creator with a real, institutional
guarantee. His viewpoint backed up the survey carried out in parallel by Oxylane on the
anticipated development of futsal in France.
In financial terms, security came from Christophe Baudot. His support for the project leader was
decisive in making the initiative credible. He provided the project with his experience and his
reputation as businessman and doctor in the field of high-level sport. Financially, he took on the
role of personal guarantor and brought his accountant and his bank into the deal. His
involvement can be explained by his belief in the project and in its leader. He was convinced of
the opportunity to develop futsal and he found in Ginga Foot an enjoyable project, among the
other deals he was working on.
Photo 5. Henri Emile / Photo 6. Christophe Baudot
20
Thanks to these supporters, the project leader became a credible interlocutor for Oxylane, and
essential to the project. He demonstrated what he was ready to provide in exchange for the
funding of his operating tool. After some time spent negotiating and studying the market, Oxylane
agreed to support the cost of the building on one of its sites in Mérignac, and to rent the complex
to Ginga Foot at a lower than market price. In exchange, the Oxylane group expected enough
traffic in the complex to support, in parallel, the development of the futsal range in its Décathlon
store (the sale of shoes with smooth soles and absorbent fabric). This contract is in a league of
its own. In fact, for the other businesses in the Oxylane village, the group rents out sites for
activities that require less investment (such as, for example, golf or a pony club). At the end, the
nature of the project generated an original and win-win exchange. The building became a
showcase for the Oxylane management and a pilot building for the group’s future constructions.
Even though it was eventually successful, the negotiation process was a test of strength and
patience that Rihane Mouhib would not have been able to carry off without the support of other
stakeholders, in the first place his family. The unconditional support of the people close to him
(his parents, wife and other family members) who encouraged him, was a source of balance for
him. Rihane Mouhib could likewise count on the presence and friendship of his future
shareholder, Tiago Reis de Jesus. By nature laid-back, Tiago Reis de Jesus knew how to listen
and look on the bright side of the difficulties inherent in creating a business. While his project
matured, the leader worked at l’ADIE (Association for the Right to Economic Initiative). His
employment granted him the status of a permanent employee whilst making him aware of the
pitfalls to creating a business. The entrepreneurs’ network he built around himself was beneficial
in helping open doors for him and it gave him a different perspective on his own project. The
complex was driven by the project leader’s vision. In particular, the greatest attention was paid to
a floor covering with 35% shock absorption, central to the value proposition made to clients. The
obvious supplier was Tarkett. This firm had equipped the training centers at Clairefontaine for the
French national team, the Blues. Tarkett accepted a lower than market price to equip the GingaFoot complex, hoping in return to fit out future Ginga complexes if and when the model was
replicated elsewhere. The deal set up with Ginga also brought in the Oxylane group supplier,
which needed new floor coverings for many of its points of sale.
These cemented partnerships, critical for manufacturing the operating tool, were equally
important for day-to-day operations. The project leader leant on various Brazilian associations to
run activities that were complementary to futsal, and necessary to generate additional turnover.
In exchange for a unique value proposition made as much to individuals as to clubs, the project
leader could count on the support of the FFF which communicated the offer on its Web site, plus
support of future Ginga clients (men, women and children) from whom it hoped to generate
positive word of mouth, as well as on the publicity of the professional footballers who will come
and train at Ginga (ref. the stakeholder matrix in Annex 6).
21
Conventions
Conventions relative to starting a business
Rihane Mouhib knew the conventions specific to starting a business. His Masters from Bordeaux
University, specialized in entrepreneurship, trained him in the methodology of business creation
as well as in financiers’ expectations. He worked on his Business Model, benefiting from the
advice of the pedagogical team as he fine-tuned it during his years of study. He knew that he
must write a Business Plan conforming to his partners’ expectations (this document will be
required). His professional experience at l’ADIE reinforced his skills and his network as he
accompanied projects and raised funds, making him aware of the importance of having
associates and of surrounding himself with experts to write and present his Business Plan.
Rihane Mouhib naturally decided, therefore, to be accompanied in his project. He was followed
by the Bordeaux Chambers of Commerce and Industry (CCI) and by the Aquitaine Entreprendre
network which primed his project in 2011, granting him an interest-free loan of 22,000€. His
mentor there, the head of a firm, was to join him in his discussions with the bank. The lawyer at
Aquitaine Entreprendre helped him negotiate the rental contract with Oxylane. The accountant
was to check his provisional income statement. The project leader considered this
accompaniment to be very important. He has followed all the training proposed by these
structures of accompaniment, respecting to the letter the conventions linked to his situation.
Conventions relative the football sector
Football still very noticeably dominates the heart of the FFF (French Football Federation).
The FFF regroups other disciplines, such as beach soccer, football and women’s football.
However, football remains the reigning discipline, concentrating all the resources provided by
license fees. Football’s domination was further reinforced by France’s World Cup victory in 1998,
the other disciplines being perceived, in the French context, more as rivals than as
complementary sports. The project leader needed to take a position on this convention by
justifying that his activity did not seek to divert members but rather enhanced the
complementarity between the two sports. This very marked convention did, however, evolve
when Nike replaced Adidas as official sponsor of the French team. For Nike’s ambition was to
exploit the popularity of football as a means of developing women’s football and then futsal into
world-class sports. This evolution of the convention has encouraged the project leader to get
closer to Nike. In parallel, at FFF headquarters, he kept up relations with the person responsible
for diversified football, and discussed the evolution of futsal with him every three months.
A strong hierarchy at the core of the FFF*. It is usual to pass via the League, at a regional
level, before presenting oneself to the national managers at FFF headquarters. By directly
contacting Henri Emile, who at the time was responsible for futsal at FFF headquarters, by mail,
the project leader did not respect this convention. This bypassing of the hierarchy helped him on
the one hand (direct contact with Henri Emile facilitated negotiations with Oxylane) but also
blocked him on the other. The president of the Aquitaine Football League might have taken
offence to this attitude; the project was getting nowhere on the local level until the arrival of a
new regional president unblocked the situation.
22
The rules and values of futsal are different from those of football. Futsal’s rules are intended
to optimize the time spent playing the game. Unlike football, it is forbidden to speak to the
referee and with other players. Any transgression of this rule is punished by a free kick. The rules
of futsal are particularly suited to spotting young talent. By removing the importance of the
physical aspect (shoulder-to-shoulder contact is forbidden), the rules focus on technique. These
aspects differ from the rules of football, where physical qualities are rewarded and constitute an
indispensable selection criterion for advancing in the domain of professional football. However,
the codes are evolving and football has understood the advantage of seeking inspiration from
futsal’s values, as well as the advantages of complementarity between the two disciplines. This is
already the case in Spain and, again, in Brazil, where from the age of 6 to 12 years’ old, young
players only practice futsal before placing their technical skills at the service of professional
football.
Anticipated relationships between the manager of a complex and the players. It is conventional
for the manager of a futsal complex to be present and available for his clients. What is more, an
amateur public expects him to be there to talk to, before and after the match. He must speak with
the players and get them dreaming. An amateur player might be frustrated by not being
professional; one must make him feel important no matter what, valuing the public by dedicating
time to each person. The fact that the manager himself has some experience, and partners, in
the domain of professional football constitutes a plus which is in line with the convention and
gives him a certain legitimacy.
Une hiérarchie forte au sein de la FFF. Il est d'usage de passer par la Ligue, au niveau
régional, avant de s’adresser aux dirigeants nationaux du siège. En contactant directement par
mail Henri Emile, alors responsable du futsal au siège de la FFF, le porteur n’a pas respecté
cette convention. Ce court- circuit de la hiérarchie l’a servi d’une part (le contact direct avec Henri
Emile a facilité la négociation avec Oxylane) mais l’a aussi freiné d’autre part. Le président de la
Ligue de football Aquitaine a pu s’offusquer de cette attitude et le projet a piétiné sur le plan local
jusqu’à ce que l’arrivée d’un nouveau président débloque la situation.
Conventions relative to partners' professions
Conventions of an administrative nature. The project consisted of constructing a complex. It
relied, therefore, on obtaining approval for a building permit that Oxylane had applied for, from
Mérignac town council. Obtaining the permit could be sped up by respecting certain
administrative conventions, specific to the workings of a local authority. Hence, the application
process moved forwards once the project leader entered into direct contact with the personal
responsible for economic affairs at Mérignac town council. The opportunity to support a young
business creator, who had come to meet them personally, and who would create jobs and
improve local dynamism, encouraged the Council to approve the project.
Negotiation with major retailers. Major retailers possess a very hierarchical structure, relying
on sources at ground level (the shops) to pass information and projects up to the national
headquarters, which, in the case of integrated commerce, has considerable scope for
centralization. Benefiting from direct contact with the person responsible for Oxylane
International and the management of the Oxylane France villages, the project leader tried his
luck at attempting to advance his project directly with the Oxylane Group’s top management.
One can see that his risky approach paid off but, in a second stage, he had to deal with lower
levels of management in order to formalize his project, hence succumbing to the convention that
governs negotiation in the sector.
Conventions relative to the geographic zone
The conventions identified above apply to the town and the region studied, namely the town of
Mérignac in the region of Aquitaine. They are likely to remain unchanged should the business
extend its activity into other Oxylane villages in France. The conventions would, on the other
hand, be re-examined were the project to be replicated, as anticipated, in Casablanca, Morocco,
or in any other country, taking into account the cultural particularities of the target territory.
23
Ecosystem
The value architecture
The football ecosystem within which the project leader wished to position his firm has evolved a
great deal in the ten years between 2002 and 2012. Whereas indoor football was very hush-hush
at the beginning of the 2000’s, it has become organized since. In 2012, just before the business
opened, the main actor in this ecosystem was the FFF, which structured futsal around a
championship. The ecosystem was equally marked by the numerous competitors already on the
scene. Here, it was a question of showing how the project leader would take his place in the
ecosystem by respecting the institutions in place, standing out from the competition and by
partnering with the town of Mérignac.
The FFF championship. The FFF organizes a futsal championship that it wishes to make
professional in 4 years’ time, with televised broadcasts of the matches. The championship
consists of 2 national divisions (League 1 and League 2), a Division of honor at a regional level,
and a Year group of honor more locally. The town of Mérignac has two futsal teams that play in
League 2. Ginga would like to offer its own championship with a level for each day of the week
(“Monday for the best and Friday for the weakest”). It is counting on a pool of 50 teams and
envisages putting a mini world cup in place at the end of the season for the 5 best teams in each
group. But this new championship risked bothering the FFF by looking like a rival. The project
leader decided not to impose himself on the FFF but instead to promote the complementarity of
the two championships. He proposed that Mérignac’s two official League 2 teams train in his
complex, which is the only one conforming to FFF norms. He also committed to guiding the
amateur players in his tournament towards the FFF tournaments, hence generating licenses and
future sources of revenues for the FFF
Existing competitors. There were already 10 football entities in the agglomeration of Bordeaux
at the moment when the project leader wished to open his futsal complex. This rivalry might have
seemed discouraging but, quite the opposite, the project leader saw in it the sign of an existing
demand, and hence no need to create one himself. The presence of numerous competitors
does, however, require a project to differentiate itself. Ginga Foot’s strength lies in the fact that
futsal in itself is different from soccer (in its rules, its spirit, its technique, its legendary players).
The Ginga concept enters the ecosystem with a competitive advantage, thanks to a legitimacy
(FFF-approval) that football club managers can recognize instantly. Trainers have been waiting
for a structure like this in their battle against players’ absences from training sessions in bad
weather. The complementarity between futsal and football seems to them to be natural more than
anything else, and bodes well for the complex’s insertion into the environment.
The town of Mérignac. Beyond the business world, the ecosystem includes the local authorities
and citizens of Mérignac town. The project leader wishes to contribute to the development of his
town. He can enrich Mérignac’s business sector by offering employees an activity for leisure and
relaxation close to their workplace. He gives particular priority to the development of the sport for
young people. Among his projects can be found, likewise, an event held in partnership with
LICRA (The International League against Racism and Anti-Semitism) and the town council, as
part of the week for the fight against racism. A feature on him in the council magazine “Mérignac
Magazine” is an indication of the place he is sure to find himself at the heart of the municipality.
Environnemental
opportunities
and threats
Business Model GINGA
FOOT
24
Environmental dimensions are evolving and could favor or otherwise slow down the project.
On the political front, the academic reform promised by the government might create an
opportunity for Ginga Foot. By setting up time for extra-curricular activities, the reform should
enable primary school children to explore new cultural, artistic, fun and sports activities outside
traditional teaching. These are paid for by town councils and delivered via local associations.
Ginga Foot can hope to promote its structure’s qualities (the complex’s location near academic
establishments, the building’s conformity to safety norms) as well as its ability to provide activities
for young people, so as to play a part in the reforms and improve its fill rate during the day. This
opportunity, depending on the results of local elections in 2014, could strengthen its relationship
with Mérignac’s town council.
On the economic front, brands of sporting equipment have a critical influence. They are often
involved in the lives of professional sports clubs, and Nike, official sponsor of the French football
team, supports the development of futsal. Nike has even distributed videos on the Internet
showing Brazilian footballers playing futsal when they were little. These “Jogabonito” encourage
parents to want the same thing for their own children. The crisis is another economic parameter
that the firm must take into account. Its impact will not be one-sided either. On the one hand,
economic difficulties might encourage the French to take time out doing affordable leisure
activities that help them dream of other things. In this sense, Ginga Foot would not be directly
affected. On the other hand, French people’s loss of purchasing power might make them do a
trade-off to the detriment of their leisure activities, penalizing Ginga Foot. The affordable price of
futsal, along with the absence of any obligation to subscribe, seems likely to preserve the activity
in the short-term.
On the socio-cultural front, futsal is a formidable vector for social integration. Its origins lie in the
value of creating social links, which can spread throughout society. On the pitch, all socioprofessional categories of a single business rub shoulders together, mix and make contact.
On the technological front, the possibility of filming players in the complex and rebroadcasting
their sessions in the bar after the match is an advance that improves Ginga Foot’s value
proposition.
Ecological concerns, part of the wider environmental context, are neither absent nor dominant at
Ginga Foot. The raw materials used do not obey the principles of sustainable development.
Despite this, the complex is accessible by public transport; it supports car-sharing initiatives and
proposes drinks without added coloring.
On the legislative front, there is a judicial gap regarding DTU norms (Unified Technical
Document) on sports floors. Whereas floors should exhibit a shock absorption rate of at least
12% to reduce serious accidents, in practice few structures respect this and are not in the
slightest bit penalized. A stricter implementation of existing rules would be to Ginga Foot’s
advantage, as their floor covering offers 35% shock absorption.
25
Appendix
Annex 1. Competitive analysis
27
*Annex 2. Competitors’ location in the customer catchment area *
Annex 3. The floor covering of the complex
Annex 4. The Ginga Foot web site
28
Annex 5. Financing plan (€)
29
Annex 6. The stakeholder matrix
30

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