Assignment 1: Part A: Your Marketing Plan

Dr. David A. Holness D.B.A.

Marketing Management (MKT 500)

Strayer University

Sunday, February 2, 2014

Executive Summary

Gorgeous Looks LLC is a fashion and beauty headquarters where our motto is style is imperative from head to toe. This one-stop establishment is a stomping ground for women who find it necessary to find all of her hair, make-up, eyebrows, nails/toes, clothes, shoes and accessories needs all in one convenient place instead of driving all over town. At Gorgeous Look LLC, women will leave more fashionable and fabulous than the manner in which they came, after they have gone through the Gorgeous Looks Experience.

The first step in the Gorgeous Look Experience is a Style Evaluation with an expert fashion stylist. The stylist will help the customer assess the best look that will fix the customer’s personality and personal style. Some of the categories will include classic, traditional, edgy and trendsetter style just to name a few. Once this evaluation is completed, the experts will then help narrow down the desire style. Once the looked has reached its optimal perfection, the stylist will direct the customer to the next phrase of the Gorgeous Looks experience, which is hair and make-up.

On the premises will include a full hair, make-up, eyebrows, and nail salon. These licensed professionals will be available daily for scheduled and walk-in appointments. During the appointment, each customer will be given a full consultation. During the consultation, the customer will be able to discuss and describe their desire look and express any needs that need to be fulfilled, such as, split ends and recoloring. The professionals will then be able to give the customer their best recommendation for their needs and wants while providing exceptional customer service.

Along with Gorgeous Look’s fashionable styles and number one customer service, Gorgeous Looks, LLC wants to differentiate itself from competition by holding an exclusive lines made by local, upcoming fashion designers. By having that competitive edge of the exclusive designer line is imperative because customer will be able to identify and appreciate local fashion made in the state of Hawaii. Gorgeous Looks LLC will proud itself on providing unique and exclusive looks.

Sales Forecast

During the first year of business, Gorgeous Look is expected to generate$550,000 of sales from clothing and service. In order to reach this goal, the employees must monitor daily sales of at least $1,488. It is expected that major holidays such as Christmas will generate the most sales.

Sales Forecast

Environmental Analysis

Gorgeous Looks LLC is a small, independently owned boutique, conveniently located in Ewa Beach, Hawaii, in an active shopping center where Safeway, Ross, Teddy’s Burger Restaurant and other small businesses are located. There will be fourteen full-time and part time employees working within the boutique: Audreianna Smith, owner and operator, responsibilities includes accounting, financing, and budgeting; Team member 1 will be in charge of marketing and sales, which includes keeping all current promotions and social media updated; Team member 2 will be responsible for inventory, ordering and restocking; two fashion stylist experts; two hair stylist; one make-up artist; one eyebrow professional; and one nail expert. There will also be four part-time employees to run the daily operations of the store.

Competitive Forces:

Internet shopping has been on the rise in the past few years, making it difficult for new, small businesses like Gorgeous Look to compete with the convenience and around the clock hours for shopping. Internet shopping is pose as a competitive force and threat to small boutiques on the rise (IBIS World, 2014). In addition, there are a multitude of national chains in the area. These chains do offer a brick and mortar shopping experience with the ability to shop online to get other inventory from the main land.

Economic Forces:

There are various economic forces that affect the beauty and apparel industry. Among the many reason, consumer confidence is the most important. It is proven that people do not enjoy shopping when the economic is not at its best. In fact, during time of economic downfall, people tend to hold on tighter to their money instead of spending it freely (Tamminga, 2014).

Unemployment is also a determining factor that can affect the spending habits of the industry consumers. If there are fewer men/women are in the workforce due to unemployment, the decline in retail spending is directing affect because less disposable income is available for clothes, shoes, and beauty treatment (Tamminga, 2014).

Consequently, retailers may be stuck with a large amount of inventory if either of these factors takes place, resulting in a substantially price reduction. As a result, retailers like Gorgeous Looks LLC will have to consider selling lower-priced clothing brands to compete. Cheaper brands are more sought after when consumer have less disposable income (Tamminga, 2014).

Within the Ewa Beach area, there has been steady growth in the estimated per capita income at an increase of 2% for the past 3 years. The median income is approximately $4,000 higher per year than those living in the rest of the state. In addition, the housing market is cheaper by 5% than the rest of the state. With the majority of the population living in Ewa Beach not having children, this leaves a great deal of disposable income for spending on finer clothing and spa type treatments (Onboard Informatics, 2013).

Political forces:

The current politics that surround setting tax rates affect small businesses. The higher the sales tax that local or state governments implement can either makes the good and service Gorgeous Look LLC more or less expensive for the customers to go shopping. This factor may have an affect on how the customers shop; expensive taxes may incline customer shop less. This will also ultimately affect how many purchases customers make at the store. The taxation rates the local, state, and federal levels of government establish for businesses determine the bottom line; this is how the boutique has to pay its taxes (McDunnigan, 2014). With the overall property tax in Hawaii increasing with the overall rise in the housing market, the fixed income population will not have as much to spend on clothing and other services. Nearly 27% of the population is over 55 and retired in Hawaii, meaning exclusive services may be out of reach for them (Sakahara, 2013).

Technology forces:

Clothing stores and beauty salons, leverage technology to cut operational costs, increase store security and facilitate a pleasant shopping experience for customers. Technology can assist in everything from scheduling employee work shifts, ordering inventory, and advertising.

Keeping track of inventory is extremely important for clothing and beauty stores. Running out of a certain clothing style, hair or nail product can easily result in a great loss of revenue. It's also imperative that inventory be accurately tracked. This will help identify popular brands and styles, what is least popular and track any external and/or internal theft. Inventory software that works in conjunction with a clothing store's Point of Sales system makes ordering and tracking inventory much easier (Ingram, 2014).

The Point of Sales cash registers have software that can add sales tax automatically, processes coupon codes and sales promotions, scans item bar codes and updates store inventory after each purchase. This register will also process credit and debit card payment. This technology is important in a store that carries a large amount of inventory such as clothes and shoes (Ingram, 2014).

Social media such as Facebook, Twitter, and Instagram are the latest form of technology used by clothing and beauty stores not only to promote their business and themselves, but also to connect with customers, handle customer service inquiries and even handle public relations. Many clothing retailers also establish a web presence with a blog or website, to sell items online as well as in a physical store (Ingram, 2014).

Store security is a vital component of any retail operations, and technology can assist in reducing shoplifting or break-ins with the appropriate technology. Another technology feature clothing stores utilize is attaching magnetic tags to all clothing items on store shelves, and pairing the tags with magnetic scanner alarms at all entryways. This will discourage people from even attempting to steal goods (Ingram, 2014).

Legal and Regulatory Forces:

Gorgeous Looks is a limited liability company, which is a “hybrid type of legal structure that provides the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership. LLCs are not taxed as a separate business entity. Instead, all profits and losses are "passed through" the business to each member of the LLC. LLC members report profits and losses on their personal federal tax returns, just like the owners of a partnership would” (U.S. Small Business Administration, 2014).

The first step in obtaining an LLC is choosing a business name. There are specific guidelines that must be followed in choose a business name. The next step is to file the articles of organization. The "articles of organization is a simple document that legitimizes your LLC and includes information like your business name, address, and the names of its members” (U.S. Small Business Administration, 2014).

Create an Operating Agreement is the third step. An “operating agreement is highly recommended for multi-member LLCs because it structures your LLC's finances and organization, and provides rules and regulations for smooth operation. The operating agreement usually includes percentage of interests, allocation of profits and losses, member's rights and responsibilities and other provisions” (U.S. Small Business Administration, 2014).

Every business has some type of license and permit required. Once the business is registered, one must obtain business licenses and permits. For example, a resale permit is required for a boutique to allow the business owner to purchase merchandise at wholesale prices and resell it to consumers at retail prices. Resale permits are also required to establish a wholesale accounts with suppliers. This permit helps the supplier verify the businesses’ authenticity (U.S. Small Business Administration, 2014).

Sociocultural forces:

The total population change on demographics in Hawaii has many potential benefits/consequences for the retail business. As the total population changes, the demand for products and services will also changes. According to the U.S. Census, the population is steadily on the rise (U.S. Department of Commerce, 2014). As of 2010, the total population in Ewa Beach, Hawaii was 66,782. Of those people, it has been reported that 82.2% has earned their high school diploma or higher. Rising educational levels also have a positive impact on retail businesses. Statistically, higher education typically allows people to earn higher incomes (U.S. Department of Commerce, 2014). With the increase of more income will create opportunities for additional purchases for goods and services (Reference for Business, 2014).

The information below depicts the spending and age of the market:

Specify the primary and secondary target markets:

Target Market

The typical Gorgeous Look’s customer will loves to shop, enjoys going to boutiques. She is knowledgeable about fashion and shops monthly, if not weekly, for new and unique, local designer fashions she can either wear to work, a night out with the girls or on a first date. Sometimes, her shopping includes window-shopping or the occasional browsing through the inventory to compare prices with other competitors. Her online purchases are infrequent because she likes to try on clothing before purchase as well as have a spa like atmosphere. By offering a full scale hair, make-up and nail salon, Gorgeous Look will entice each her to spend more money and time in one place, getting all of her beauty regiments taken care of, while saving time.

She expects an inviting, comfortable and clean environment with nice dressing rooms. She enjoys having someone to assist her in making special touches to her wardrobe with the expert stylist. She wants a fun and catered shopping events with convenient hours during the day and evening. Weekend hours are especially important because of her sometime hectic schedule during the week. She is excited when she receives special notices on sales and promotions that are happening at the boutique.

The Target Customer

The target customer is a woman in her early to middle twenties with a household income over $60,000. Her main characteristics are listed below:

Demographics: (U.S. Department of Commerce, 2014)

· Woman (ages 25-34).

· Median household income 67, 492.

· Education: High School Graduate or above, 94.8% Bachelor Degree or above, 29.3%.

· Homeownership: Renters.

· Ethnic Diversity: White, Black, Asian, Hispanic, Mix.

· Number of Kids in the household: 0-2 kids.

Psychographics: (Strategic Business Insights, 2014)

· Looks for bargains but is willing to spend money on quality fashionable items.

· Needs more time in a day to complete all tasks; having everything she need in more place save her time and money.

· Would like to understand what clothing and make-up is right for her and her personality.

· Would like to know how to color coordinate her fashion and make-up.

· She wants to look her best because she wants to feel good about herself.

· Making a good impression is important.

Leisure Activities

· Listens to pop music.

· Supports the Creativity.

· Reads Fashion and Beauty Magazines.

· Watches Bravo, Style, VHI.

· Internet savvy.

· Exercise daily. Eat healthy.

· Travels, owns a passport.

· She enjoys eating out as well as taking time for herself at the spa or getting manicures-pedicures.

Behaviors

· Spends over $5,000 easily for clothes, shoes, make-up, and hair each year.

· Shops at small specialized Boutiques.

· Wears a size 6-18.

· Buys mostly dresses, tops and pants.

· Looks for classic, unforgettable items for each season.

· She cares about how she presents herself, enjoys fashion, and looks for quality over quantity.

Secondary Market

· Spouses or significant others of the target market

· We are considering all other variables of the secondary market to be close to the target market

Non buyers

· Retired women who are cost conscious

· Women who are under 25, statistically speaking they may not have enough disposable income to frequent our shop often

· Internet shoppers who do not enjoy the hands on shopping experience

Branding Strategy – Brand Name, Logo, slogan, and product extension:

Gorgeous Look LLC carries local designer clothing and has exclusive personal shopping services. Our main competitive advantage is the unique business quality of having all the necessities of fashion and beauty in one location that will directly enhance personal style. The brand character is confident, fashionable, and innovative. Our slogan is style is imperative from head to toe. The picture represents our logo:

Having a complete line of clothing and accessories for women from local designers, as well as spa services, leads us to extending our accessory line towards the men’s ware. This move is to capture gift sales for spouses and significant others. Our products will include high end leather goods.

Brand Strategy Gorgeous Look LLC looks to be the leader in providing exceptional service and assistance for women fashion needs. Gorgeous Look LLC will provide a great buying experience, every time. Once a customer comes in the door, they will be greeted and assisted as much or as little as they wish. Some customers are uncomfortable with lots of personal attention; others expect it. All customers will be offered fruit flavored water (such as lemon, strawberry and mint), tea or coffee while they shop. Some snacks will also be made available on heavy traffic days like Saturday and Sunday to complete the exclusive shopping experience. We are a shop that educates. We help women learn about the designers, gather with their friends, and have fun during the process. We not only carry items that help them look good, but we also help our customers maintain these items. Ultimately, Gorgeous Look LLC’s goal is to create an environment that customers love to come and revisit, daily.

Performance Analysis with 4 Qualitative Metrics and 4 Quantitative Metrics:

To measure our progress we will employ the following metrics:

4 Qualitative Metrics

· Asking patrons to voluntarily participate in a focus group concerning store merchandise. In this focus group we will ask questions concerning desired designers to feature, spa services needed, etc. We will hold a focus group quarterly.

· Monitoring consumer’s fashion habits at local events. With our exclusive designers it will be easy to spot our merchandise in public. We will make a point of being at local events to not only see what the fashion is, but to build our store profile within the community

· Asking customers if they would refer our store to their friends and family at the time of purchase

· Asking local designers their opinions on store operations

4 Quantitative Metrics

· Increase in sales compared monthly, and then once in business for a year, comparing month to date sales.

· Percent of clearance, or the amount of clothing and accessories that we need to mark down each month to spur purchasing.

· Increase in newsletter subscriptions

· Customer retention rate as measure by asking for the date of last purchase at the time of sale.

S.W.O.T ANALYSIS

Strengths:

· Gorgeous Look LLC represents a beauty and fashion fortress by every women who maintain an active schedule.

· This establishment will carry quality, dependable, wearable clothing while making sure all the other items are taken care of like hair, make-up, and nails.

· Gorgeous Look LLC will carry exclusive fashion lines made my local designers. These designers will be able to stay in touch with the needs and wants of the local community.

· Exceptional customer service is one quality Gorgeous Look’s owner proud its business upon. Customers will grow to expect the second mile service the team members at Gorgeous Look will provide

· Although Gorgeous Look will ensure quality clothing and service, its prices will also be competitive. The competition in the immediate Ewa Beach area is slim. The only competition within miles is Ross clothing store.

· Gorgeous Look creates and experience with each customer. This experience includes a personalized Style Evaluation and a Hair, Make-up, and Nail Consultation.

Weakness:

· The current owner has no previous experience in the retail industry.

· The budget is limited because there are currently no investors.

· Finding quality local designers that meet the standard of designer clothes, which is expected because they lack experience.

· If the owner is unable to find quality hair, nail, and make-up stylist.

Opportunity:

· After Gorgeous Look has establish a great customer base, tapping into a online shopping is the next step.

· Once the business has solid financial and success, seeking potential for investors in growing the business into a more household and established brand.

· More local designers will be imperative to growth the business.

· Fashion Shows is a new way of advertising and getting Gorgeous Look’s name out to the public.

· Providing an alternation department in store. To personalize the fix of each garment for each body type.

Threats:

· Ross clothing store is located in the same shopping center as Gorgeous Look LLC.

· Fashion is forever changing. Keeping up the demand of the ever-changing cycle what is popular is a potential threat. Taste in clothing and design has the potential to change overnight.

· A decline in unemployment can directly affect the business overall sale because more people are not work and generating income to purchase beauty and fashion items.

· The market is currently on the rise and people are gaining more confidence in market. However, if the market crash again, it can hurt the small business tremendously.

Develop a Marketing Strategy with execution timeframes:

Promotion The following promotional tactics for generating buzz and awareness about Gorgeous Look LLC will be implemented within the first month:

· Strengthen the customer relationship by given them insider information via a VIP Access Only Newsletter which will communicate special events and sales.

· Utilizes a referral program that will build traffic, given the referrer a percentage off their next purchase.

· Develop strong relationships with customers by utilizing Style Evaluation and offering services to help them determine the right clothes for them.

· Host after hours events such as Sip & See where VIP customers can come and view the new arrivals. They would have the opportunity to view and purchase the items weeks before the items are debut in the store.

· Promote gift giving to men during key holidays (Christmas, Valentine's & Mother's Day) and utilize assessments to assist gift givers in purchasing the appropriate gift

· Have weekly giveaways to customers. The giveaways will include Gorgeous Look paraphernalia to help us advertise and bring awareness to our business.

· Personal selling and word of mouth via networks of friends, stylists and customers.

· Unique visual displays in storefront on a weekly basis.

· Direct mail such as postcard notices that are targeted specifically to the customer in the surrounding neighborhood.

· Sales Promotion such as store events and weekly sales via email and text message.

· Gorgeous Look LLC Web Site.

· Membership Cards allowing for discounts based on referrals.

· Advertising through Social Media (Facebook, Twitter, etc.).

Additional promotional efforts will be implemented within the 5 years:

· Having Fashion Week featuring local designer at a exclusive semiannual fashion show

· Building a client list through network at public events for style consulting using public officials as well as retired celebrities

· Establishing a “design your dress” contest allowing customers to submit designs to our designers, winner of the contest will have their dress featured at our store.