Discussion project
Zack1234
aa568cf1aa1f41192e10a91aa6b58be3.pptxPaparazzi Accessories mobile business
Mktg 525: Marketing plan
Dr. donna falloon
By: andrea martinez
overview
Company Description
New Service
Porter’s Five Forces Analysis
SWOT Analysis
Market Analysis
Strategic Objectives
Environmental Issues
Action Programs
Budget and Break-Even Point
Controls
References
Company Description
Two sisters and their husbands started paparazzi Accessories. They had a passion for jewelry and were determined to have trendy fashions for all ages with all types of styles at an affordable price. They started to sell the jewelry for just $5 each. Accessories are sold through Paparazzi consultants. The result of this is a successful business. This empowers women and creates self-confidence while having fun doing so.
New service
I have been a Paparazzi consultant for a couple of weeks now selling jewelry on Facebook live from my house. It takes a lot of time and effort to run your own business, especially if you are the only person doing multiple jobs. The job entails setting up the inventory for the live shows, putting the inventory away, keeping track of who claimed items, sending invoices, keeping track of payments, shopping for the inventory, packing the items and shipping the packages. Due to selling out of my house, customers are not able to try on the jewelry or might not have transportation to get to my house. My idea of a new service would be to have a mobile vending service. This would be great for me to drive from house to house for Paparazzi lovers looking to buy more jewelry. Currently, other Paparazzi consultants have their own stores but none of them have thought to have a mobile service.
Porter’s five forces analysis
| Competitive Rivalry | Threat of New Entrants | Bargaining Power of Suppliers | Bargaining Power of Buyers | Threat of Substitutes |
| High | High | Low | High | Low |
Swot analysis
Strengths
No more invoices
All jewelry displayed in cases (no setup required)
No live shows
Better aquainted with customers
Weaknesses
A lot of money required for maintenance of vehicle.
Too much mileage on vehicle
Gas usage
Required documentation
Limited funds and resources
Swot analysis continued
Opportunities
No other service like it (one of a kind)
People love to try something new
Jewelry at discounted prices
Threats
Many Paparazzi consultants
Consultants could take your customers
Lack of income
Stay in regulations and codes
Market Analysis
Segmentation:
The demographics of the Paparazzi business will be targeted towards women who love jewelry and hair accessories at a discounted price. Women who have young daughters would also be targeted for the Starlet Shimmer line, which is the jewelry for kids.
Size
I will be needing a 16 ft. truck needing to house my inventory while on the go. The size of the truck would be just enough room for customers to walk around the truck looking for jewelry to purchase. The truck would also be a good enough size to drive around looking for potential customers.
Accessibility
With the limited income I would have at first with the mobile Paparazzi business, it would be cheaper for me to rent the truck rather than buy it. Later on, when I become more successful, I can buy the truck to reduce liabilities
Value
The value of renting the truck will be priced at $30,000-$50,000 which is way less than buying the truck which is in the ballpark range of $50,000 to $200,000. Renter’s insurance would have to be acquired if renting the truck. The cost of electricity and gas and also water as well. My goal for providing my customers with jewelry is for them to feel good about themselves when they wear it. It will build their self-esteem and confidence.
Strategic Objectives
Marketing Strategy
This service will benefit customers who are unable to leave their home due to lack of transportation or for some unforeseen circumstances in my home state of New Jersey. I will gain more customers by word of mouth by other clients and by advertisements.
Positioning Strategy
I would get a decent sized truck, big enough to hold my entire inventory. The truck would be easily accessible for customers to walk into the truck and shop for jewelry. All jewelry will be displayed in see through cases for easy viewing and to protect them as the vehicle moves from one location to the next. I mainly have about fifteen people who buy several pieces of jewelry each week. Everyone knows the brand name Paparazzi because they are known for their quality pieces at an affordable price that everyone can enjoy.
Product Strategy
All of the inventory which consists of adult jewelry, kids’ jewelry, and hair accessories will be purchased off the Paparazzi website. If the Paparazzi doesn’t have the specific quantities that I am looking for or an item that my customer wants, then I will retrieve it from other consultants.
Distribution Strategy
My mobile vending service would be for those fifteen customers, and I would drive to each of their homes for sales. Once the mobile vending service is established and creates income, I would then extend my service to more customers.
Marketing Communication Strategy
This service will benefit customers who are unable to leave their home due to lack of transportation or for some unforeseen circumstances in my home state of New Jersey.
The Paparazzi mobile vending service will be advertised on several social media accounts such as Facebook, Instagram, and Twitter. It will also be advertised in the daily newspaper. I will go around to local supermarkets and stores hang fliers to gain clientele.
Pricing Strategy
Each adult jewelry will be priced at $5 each with additional NJ state tax at 6.625%. Each kid’s piece will be priced at $1 each with additional NJ state tax as well. For every twelve adult jewelry sold the thirteenth item would be free. This promotion would be for all customers current and new.
Environmental Issues
There are many issues that I have to be aware of when starting the mobile Paparazzi business. There is no other like it. This would be the first one. Once other Paparazzi consultants see the advertisements on flyers and on social media sites, they are going to want to do the same thing. This can really be an issue because all my customers and potential customers will be pulled to many different consultants even before I start my own mobile service. This is something to be aware of as the company is information and even when it is up and running. I would be horrible for my business to fail as soon as it starts. Careful planning will take place while considering all these factors.
Action Programs
As I start to research and gather information needed for my Paparazzi mobile vending service, I figured that it would take me about a year to get everything in place.
I would have to get enough inventory to last me for a couple of months so I would be set and not have to worry that I am running out of inventory. I would be promoting my business throughout the year, so people are well informed of what is coming ahead and what to expect. I would advertise on every social media site to gain clientele to make my quota every month. The advertisements will continue while my business is up and running to gain more customers. Also, customers will be attracted to something they have never seen before so they would want to experience it first-hand. I would also have to gather enough information needed in terms of what truck to rent out per month and the best price offered. I would have to save enough money to pay the first couple of months
Budget and Break-Even Point
$56,000 Fixed Costs = $11,200 units sold
$5 Price Per Unit
For the budget I figured that $56,000 would be enough to cover my expenses for the month. This includes the rent for the truck, cleaning supplies, inventory, advertisements, insurance, gas, electricity and water. The price per item is $5 each. I divided the $56,000 with the $5 and I got the break-even point of $11,200. This is the amount of sales needed to make per month to cover my expenses.
Controls
Customer Feedback – On a monthly basis I will have my customers take surveys so I can know if they like the products they are purchasing. I will then have a section on the survey titled “Ways to Improve”. The customers can give me suggestions on how to improve my business to better provide for my customers.
Budgeting – I would constantly have to stay on top of saving and my money spending to stay afloat. I don’t want to spend too much and then not have the necessary funds needed for my business.
References
About Paparazzi. (n.d.). Retrieved September 16, 2020, from https://paparazziaccessories.com/about/
Custom Food Trucks for Sale: New Food Trucks & Trailers Bult in the USA. (n.d.). Retrieved October 10, 2020, from https://www.trailerfactory.com/custom-food-trucks/
Johnson, S. (2013, February 14). Are Food Trucks Worse for the Environment Than Storefronts? Retrieved October 10, 2020, from https://www.bloomberg.com/news/articles/2013-02-14/are-food-trucks-worse-for-the-environment-than-storefronts
McCormick, J. (2020, June 09). Break-Even Analysis: How to Calculate Break-Even Point for a Restaurant - On the Line: Toast POS. Retrieved October 10, 2020, from https://pos.toasttab.com/blog/on-the-line/how-to-calculate-break-even-point
Myrick, R., & About the Book Author Richard Myrick is one of the foremost thought leaders on the mobile food industry. He is editor-in-chief and founder of Mobile Cuisine Magazine (www.mobile-cuisine.com). (n.d.). The Market Analysis Section of Your Food Truck's Business Plan. Retrieved September 26, 2020, from https://www.dummies.com/business/start-a-business/the-market-analysis-section-of-your-food-trucks-business-plan/
Software, P. (2020, June 13). Vending Services Business Plan. Retrieved September 26, 2020, from https://www.bplans.com/vending-services-business-plan/
Software, P. (n.d.). Vending Services Business Plan - Market Analysis Summary. Retrieved September 26, 2020, from https://www.bplans.com/vending-services-business-plan/market-analysis-summary/
Terenzio, O., & About Olivia TerenzioOlivia Terenzio is the Editor in Chief of Open for Business. (2018, August 28). How Much Does a Food Truck Cost? Retrieved October 10, 2020, from https://restaurant.opentable.com/news/tips/how-much-does-a-food-truck-cost/
.MsftOfcThm_Accent1_Fill { fill:#AC3EC1; } .MsftOfcThm_Accent1_Stroke { stroke:#AC3EC1; }
