A+ Paper Needed Assignment 1: Part A: Your Marketing Plan
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assignment_1_example_paper.docJenny’s Closet Party LLC: Marketing Plan
Presented By: Jennifer Smith
Dr. Karen Mountain
Marketing Management (MKT 500)
Strayer University
Thursday, June 5, 2014
Executive Summary
What if I told you that you can get stylish clothing and accessories and the only catch was that you have to clean out your closet? If you said yes, then Jenny’s Closet Party is the dynamic answer for you.
Jenny’s Closet Party LLC is designed with you in mind, by creating the ultimate “Girls Night Out” experience, combining fashion, food, and fun while mingling amongst friends. Uniquely swapping from one fashionista’s closet to another and the remaining items are donated to a local charity. Sounds the perfect win-win scenario right? Jenny’s Closet Party, “A great excuse to clean out your closet”.
First Step: Upon receipt of an invitation or retrieval of flyer, specific details will be highlighted as to a theme, what items are being requested, deadline for dropping of your items and also what you should expect the day of the event. Go through your closet and find articles of clothing or accessories that you would like to swap. The items must be in style, of good quality and condition. Some of the categories (depending on theme) may include: clothing, shoes, earrings, scarfs, jackets etc.
Second Step: Bring the items to the Donation Center at the Porter County Expo Center two weeks prior to events (Fridays) from 9:00 am – 5:00 pm. At this time you will be given a voucher at this time in which you will redeemed for tokens to shop with the day of the event.
Third Step: The day of the event doors will open an hour and thirty minutes prior to shopping. At this time while mingling, you can enjoy complimentary wine and horderves that will be accompanied with light music to enhance your fun filled evening. Also, vouches can be redeemed for tokens during this time.
Fourth Step: Prior to the scheduled shopping time, guest will be reminded of how all this works, rehashing the guidelines that were laid out on the initial invitation/flyer. Guests are encouraged to keep what they have donated anonymous while picking. However, displaying and sharing their great finds amongst everyone creates sure excitement. Once the shopping time has been launched, participants will be able to go in rounds and selected two items at a time (to keep it fair) to purchase with tokens.
Final Step: When the event is over and guests have gone home, the remaining items will be rounded up donated to a local women’s shelter.
Sales Forecast
During the first two years of business, Jenny’s Closet Party anticipates generating $300,000 from endorsements and corporate sponsorships. Each member of this company is responsible for the minimum of two sponsorships ($500) in order to reach our strategic goals. We expect to generate the most sales during the summer months.
Sales Forecast
|
- |
Year 1 |
Year 2 |
Year 3 |
Year 5 |
|
|
Sales |
$300,000 |
$350,000 |
$360,000 |
$381,500 |
|
|
% Increase |
- |
10% |
12% |
16% |
|
|
Sales/ Monthly |
$30,500 |
$35,500 |
$37,600 |
$39,700 |
|
|
Sales/ Week |
$10,500 |
$11,400 |
$11,900 |
$12,400 |
|
|
Sales/ Day |
$1,400 |
$1,630 |
$1,700 |
$1,700 |
Environmental Analysis
Jenny’s Closet Party LLC is a small company whose headquarters is located at 2143 Freedom Street Portage, Indiana; however, events will be hosted at the Porter County Expo Center located at 217 E. Division Road Valparaiso, Indiana. The company consists of eight employees; 5 full-time and 3 part-time employees.
Jennifer Smith (CEO) will provide the executive leadership and oversee operations of every entity of the company. She will also be instrumental in developing strategies, vision and key performance indicators, to ensure goals are being met. She will be the face of the organization and will concentrate with building rapport and relationship with businesses. Taquanna White (Business Manager) will work closely with the CEO, manage the day-to-day business operations. Serve as our technical expert with keen knowledge in finance and computers. Serves as back up in absence of the CEO a, ensures tasks are being carried out, mentors and manage staff. Bonita Sims is the (Bookkeeper). Her responsibilities include keeping track of financial transactions, audits, payroll, procurement and inventory. Georgia Manuel (Head of Marketing) is our fashion expert. She will be in the community, charge of sales and marketing and maintaining our Social Media/Blogging keep the company abreast of the latest trends and fashion news. Dionne Payne (Administrative Worker/Hostess) serves as supportive staff doing: project coordination, prepare reports, meeting arrangements, manage calendars, answer phones calls and serve as a hostess at the events. Our three part-time employees will assist with preparations leading up to the event as well as working on the day of the event.
Competitive Forces:
Jenny’s Closet Party has been facing challenges over the last few years with consumers shopping in the thrift and resale arenas. The once known dismal second-hands stores offering outdated clothing have become the ultimate treasure hunt for unique finds at a great price. Much of the recent growth can be attributed to young shoppers, many of whom are passing on trips to the mall in favor of thrift stores (Tully, 2012).
Resale stores offer a variety of unique finds at a fraction of the cost of retail stores and propose great risk to new startup companies like Jenny’s Closet Party. The Goodwill industry is a well-known non-profit organization that has been around for over 100 years. There huge targeted audience loves bargain shopping who are drawn by shopping incentives and those by who donate to their cause of giving back to the community. “We provide employment, job training and other community-based programs for people looking to advance their careers, build their skills and further their education” (Goodwill Industry International, 2014).
Economic Forces:
With a fluctuated economy and staggering unemployment rates many consumers have become more frugal with how they spend their money. Although the retail industry has experienced growth, the resale industry is blossoming and is making great head way to become the new trend for preferred shopping. While many businesses close their doors every day, resale remains healthy and continues to be one of the fastest growing segments of retail (NARTS, 2014).
Consumers are seeking cleaver ways to save money and the affordability of shopping at malls with high markup priced garb is not an option. With millions of people looking for ways to save money in tough economic times, a growing number of consumers have turned to resale shops to find their clothes, furniture and household goods (Tully, 2012).
The Northwest Indiana Region’s Gross Revenue Product (GRP) over the past 3 years (2009-2011) has gradually increased by 3%. Porter County’s population is 166,557 (2008-2012) with the median household income was $62,457 compared to the states average of $48,374, of this population 50.95% are women (U.S. Census Bureau, 2014). Over the course of the year, household purchases rose by 0.5 (U.S. Department of Commerce, 2014). This shows that women in the Northwest Indiana Region have buying power which has influentially contributed to the region’s economic growth.
Technology Forces:
Technology is rapidly evolving and is unprecedented in the business industry. Technology is vital and plays a major role in the success or demise of a company; ultimately impacting processes, pricing, promotions and placement of products and services. Technology force is used just about in every capacity of a business operation, from finances, book keeping and cash registers down to marketing.
Social Media mediums such as Pinterest, YouTube and Facebook are some of the most popular ways in which technology has to connect with consumers. Retailers with Wi-Fi allows customers to use their Smart Phones to research products, compare prices, and download coupons with apps to make purchases.
Due to the rapidly growing competition of on-line shopping, in-store retailers and swapping businesses must set themselves apart by meeting the customers’ needs and provide them with the ultimate one-on-one experience and technology can effectively help with this.
Legal and Regulatory Forces:
Jenny’s Closet Party is a limited liability company. A legal limited liability company 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 (small business association 2014). Although, LLC’s have similar characteristics as corporation and partnership, the government does not hold them accountable to the same standards, structure and tax laws.
To start an LLC one should research and decide what type of business they would like to organize. Specific documents to establish a business should be filed with the Secretary of State to start a business (procedures may vary from state to state). Information submitted should include: Business name, registering, creating agreements and articles of incorporation. Once the company has been incorporated you will required to secure licensures, permits, EIN number, tax status and other required paperwork. Once all the necessary paperwork is complete and the business is established, the next steps should include obtaining insurance and doing the necessary footwork to get the business up and running such as networking, creating the brands image, and securing the necessary finances.
Political Forces:
The political forces that have a direct effect on Jenny’s Closet LLC and other business are the stability or instability of the government, economic/trade policies, tax rates and different events that happen in our communities and throughout the nation. These factors can affect how consumer spending. Consumers are more incline to shop at stores like Jenny’s Closet and resale outlet stores. The resale, consignment and thrift store industries has boomed in the aftermath of recession in the 1990’s. For this included an increased need for households to sell unused items for cash and reduced quantities of disposable income that made it necessary for people to shop at cheaper outlets (NARTS, 2014).
Social Cultural Forces:
As society and cultures change, so should your business. In order to have a successful business, one must recognizes and adjust (according to the current times) in order to succeed. Some socio-economical dynamics that businesses must adapt to as the world evolves: demographics, marketing/advertisement, trends (staying on top of consumer preferences) and external factors that may require adjustments within the company.
The information below illustrates the spending age of the market (Northwest Indiana):
|
Population Estimates by Age, 2012 |
Number |
Rank in State |
Pct Dist. in County |
Pct Dist. in State |
|
Preschool (0 to 4) |
9,340 |
11 |
5.6% |
6.5% |
|
School Age (5 to 17) |
29,462 |
8 |
17.8% |
17.8% |
|
College Age (18 to 24) |
15,330 |
12 |
9.3% |
10.1% |
|
Young Adult (25 to 44) |
42,056 |
9 |
25.4% |
25.4% |
|
Older Adult (45 to 64) |
47,331 |
8 |
28.6% |
26.5% |
|
Seniors (65 and older) |
22,163 |
8 |
13.4% |
13.6% |
|
Median Age |
39.0 |
|
|
Median Age = 37.0 |
Sources: U.S. Census Bureau; Indiana Business Research Center
9
s10 to 14 years15 to 17 years18 and 19 years20 years21 years22 to 24 years25 to 29 years3 34 years35 to 39 years40 to 44 years59 ye
s60 to 61 years62 under 5 Years5 to 9 years10 to 14 years15 to 17 years18 and 19 years20 years21 years22 to 24 years25 to 29 years30 to 34 years35 to 39 years40 to 44 years45 to 49 years50 to 54 years55 to 59 years60 to 61 years62 to 64 years65 to 66 years67 to 69 years70 to 74 years75 to 79 years80 to 84 years85 years and over9,96310,97811,5407,2854,8062,3192,1385,9639,8939,76511,20611,27912,76212,66211,0423,8495,1762,5773,2134,9293,6272,6252,429 to 64 years65 to 66 years67 to 69 years70 to 74 years75 to 79 years80 to 84 years85 years and over9,96310,97811,5407,28
Specify the Primary and Secondary Target Markets:
Target Market
Jenny’s Closet Party targeted customers are usually women who enjoys looking for treasures and saving money so she thrift shops. She lives for the unique finds one would normally pay a lot of money for at an upscale store. She chooses to shop in the second-hand arena because she is can find fashionable, unique and chic items for much less than malls or department stores. She is very frugal and believes in the buying power of the dollar. Rarely, does she shop on-line because she wants instant gratification (she doesn’t like to wait to receive an item she purchased) and returning unwanted items is too much of a hassle.
Her weekends consist of her getting up early and drinking coffee as scours looks though the newspapers anticipating the upcoming rummage or thrift sales that are happening around town. She is very hands on and the idea of trying before buying is a must.
The Target Customer
Jenny’s Closet Party target customer is a woman in her early to middle forties with a household income of over $50,000. Her characteristics are as follows:
Demographics: (US Department of Commerce, US Census 2012)
· Woman: (40-44); moving into peak years
· Median income: 61,912
· Ethnicity: White, Black, American Indian, Asian and other Pacific Islander
· Education: High school graduate or higher 89.1%, Bachelor's degree or higher 16.5%
· Household makeup: Husband and wife
· Homeownership: Owner occupied
· Children age: 6 to 17 years
· Most engaged with Social Media and shopping on line
Psychographics:
· Patient and doesn’t mind disorganization to find great deals
· Froogle and likes to shop for bargains but not will not pay full price
· Mature likes to know where her money goes; value for her money
· Her time is valuable and likes to spend it wisely; research purchases
· Style of clothing is inspired more by fit and comfort, then fashion
· Fashion conscientious
· Self-image is of importance
Leisure Activates:
· Discount shopping (second hand, garage sales, internet)
· Active on participant on Facebook
· Travels
· Has disposable income but prefers to be frugal
· Active in community
· Athletic
· Enjoys hanging with friends
· Environmentally friendly and loves to recycle
· Reads magazines and watches reality and popular television shows
Behaviors:
· She has stability and disposable income
· Does not believe in paying for overprices items
· Shops on clearance racks of department stores
· Enjoys second shopping, in search of treasures
· Wears a size 8-16
· Loves great deals and picks up items for people she see great deals
· Looks for name brand items and believe in quality
· Not a shame to tell others she thrift shops
Secondary Markets:
· Other segments of the market that enjoys getting good deals and saving money
· Women over the age of 21 who enjoys bargain shopping and likes to keep up with the latest trends
Non-Buyers:
· Internet shoppers
· Consumers who don’t like secondhand or hand-me-downs
· Women under the age of 30 who does not have disposable income
· Women who don’t like to shop, shops out of necessity
Performance Analysis with 4 Qualitative Metrics and 4 Quantitative Metrics:
To measure our progress we will employ the following metrics:
4 Qualitative Metrics
· We will have signup sheets stationed at tables and announce throughout the event requesting people to sign up for our mailing list; those who sign up will become members and have access to picture and sneak peeks of upcoming events
· We will have a suggestion box at the event
· Our website/blog will have a comments section that we will actively monitor
· We will ask that the customer take fliers to hand out to family and friends
4 Quantitative Metrics
· We can increase our revenue by seeking more sponsorships and customers to attend the events; once we have been in business for six months we can compare our month to date sales to check revenue growth
· Off the remaining apparel at the event that customers didn’t select be purchased at a discounted price and the remaining of those can be given charity
· Create more customer awareness by going to our mailing list and looking for new customers. Doing press release and increasing advertisement: newspapers, social media (blogs) and fliers
· Offer incentives with punch cards with identified markings; this way we can measure our retention rates: Example: Attending 3 events will get you 3 extra shopping chips that they can use for shopping
S.W.O.T ANALYSIS
Strengths:
· Financial support through sponsorships from local businesses, they believe in our cause and what we are doing for the community
· We provide unique services compared to other retailers
· Jenny’s Closet Party embodies the budget-savvy and environmentally-conscious mission
· It's a great reason to meet up with friends or to meet new friends ad it’s a good cause, leftovers go to charity
Weaknesses:
· Only one mainstream of revenue; our financial support only comes from sponsorships
· Weak brand image compare to our competitors; many consumers don’t know who we are or that we exist
· We don’t have a competitive advantages compared other retailers; we rely on donations from our customers to drawn them in
· Customers may not be interested or appeal to the idea of swapping; may rather shop the traditional way; customers that may attend may not find anything or not understand the concept therefore my not return
Opportunity:
· Once Jenny’s Closet has been established for a few years we will seek to open a permanent in-store resale shop instead of just having quarterly events held at different locations
· We will also seek a broader market of consumers by tapping into on-line swapping and virtual resale shopping
· We will broaden our segment market to teenagers; from our market search we are finding that they enjoys second shopping (Example: Plato’s Closet)
· Once business has pick up more and we have a huge following of Jenny’s Closet Party, we will attract more business who would like to become sponsors because of the amount of consumers we attract at our events
Threats:
· Increased completion; there are six Goodwill Stores within a ten mile radius where Jenny’s Closet Party segmented audience is located
· Our business depends on the quality and stylishness of items donated. However, fashion changes over time. If we do not able to draw in the what customers are looking we will lose customers (they will not return; negative word of mouth)
· Retailers are offering incentives to shop with them (discounts, coupons, early bird specials, becoming members to receive perks) that can hurt business like salvage shops and swapping businesses
· Consumers identify with big businesses (Ex. Goodwill is known for giving back to the community helping people with job and education) and they have staying power
· If the economy is bad and unemployment is high, customers will be concerned with the necessities to sustain themselves and less likely having disposable income to shop with and in turn donate items to be swapped with Jenny’s Closet Party
Reference Page
Tully, Jessica. (2012). Recession has many looking thrift store chic. Retrieved from
Goodwill Industries International, Inc. (2014). Retrieved from
http://www.goodwill.org/newsroom/
The Association of Resale Professionals. (2014). NARTS: Industry Statistics & Trends.
Retrieved from http://www.narts.org/i4a/pages/index.cfm?pageid=3285
Pete, Joseph. (2014). Consumer spending picks up as new stores open. Retrieved from
Indiana Economic Digest. (2014). Northwest Indiana economy grows slowly but surely. Retrieved from
http://www.indianaeconomicdigest.net/main.asp?SectionID=31&SubSectionID=126&ArticleID= 72921
U.S. Department of Commerce. (2014). United States Census Bureau. Retrieved from
www.census.gov
The U.S. Small Business Association. (2014). Retrieved from
www.sba.gov
Suttle, Rick. (2014). SWOT Analysis for Retail. Retrieved from
http://smallbusiness.chron.com/swot-analysis-retail-3344.html
Crichton, Danny. (2014). The Complete Quantitative Guide To Judging Your Startup.
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Retrieved from http://adityamadiraju.wordpress.com/
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http://analysisproject.blogspot.co.at/2014/01/factors-determining-consumer-buying.html
The BarterQuest Team. (2011).Barter Trading Bucks Today’s Business Trend. Retrieved from
http://blog.barterquest.com/2011/03/24/barter-trading-bucks-todays-business-trends/
Porter County Indiana. (2014). Expo Center. Retrieved from http://www.porterco.org/index.aspx?nid=649
Valpariso Indiana. (2014). City of Valpariso: Things to do. Retrieved from
http://www.valp.org/community/todo.html
The Salvation Army. (2014). Who we are. Retrieved from
http://www.salvationarmy.org.au/who-we-are/about-us/#sthash.dE6M1PmG.dpuf
Plato’s Closet. (2014). How it Works. Retrieved from http://www.platoscloset.com/
