Home Decoration

 

Interior Views is a retail home decorator fabrics and complementary home accessories and services concept that is now in its third year. This destination store offers the advantages of  providing fabrics specifically designed for home decorator use in fabric widths of 54 inches and greater. Over 900 fabrics are available on the floor at any time with more than !000 sample fabrics for custom "cut" orders. #ustomers see! touch! feel! and ta$e the fabric to their home as they wor$ through their purchase decision. %ar$et research indicates a specific and growing need in the area for the products and services Interior Views Views offers in the mar$et it serves. The mar$et strategy will be based on o n a cost effective approach to reach this clearly defined target mar$et. The three&phase approach will utili'e resources to create awareness of the store and encourage customers to benefit from the convenience and services it offers. Interior Views Views will focus on its selection! accessibility of  product! design services! and competitive pricing. The mar$eting ob(ective is to actively support continued growth and profitability through effective implementation of the strategy.

Situation Analysis Interior Views is a retail store heading into its third year of operation. The store has been well received! and mar$eting is now critical to its continued co ntinued success and future profitability. T The he store offers the most e)tensive selection of in&stoc$ decorator fabrics as well as a resource for special ordered fabrics. The basic mar$et need is to offer a good selection of decorator fabrics at reasonable prices! for the "do&it&yourself" and the "buy&it&yourself" customers! through a  personali'ed retail store that offers offers e)cellent service! design assistance! and inspiration for people to redecorate their homes.

Market Summary *e possess good information about our mar$et and $now $ now a great deal about the common attributes of our most pri'ed and loyal customers. *e will leverage this information to better understand who we serve! their specific needs! and how we can better communicate with them.

 

Market Demographics The profile of the Interior Views Views customer consists of the following geographic! demographic!  psychographic! and behavior factors+ Geographics

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Our immediate geographic mar$et is the ,oise area! with a population of -/!00.  50&mile 50&mile geographic area is in need of our products and services.

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The total targeted area population is estimated at 5/!/00.

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Demographics

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1emale. %arried.

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2ave children! but not necessarily at home.

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2ave attended college.

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 combined annual income in e)cess of 350!000.

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ge range of 5 to 55 years! with a median age of 4.

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Owns their home! townhouse andor condominium valued at over 3-5!000.

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If they wor$ out of the home! it6s by choice in a professionalbusiness setting.

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,elong to one or more business! social andor athletic organi'ations! which may include+

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7owntown thletic #lub.

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,oise #ountry #lub.

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8unior eague of ,oise.

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merican ,usiness *omen6s *omen6s ssociation.

*e $now the following regarding the profile of the typical resident of ,oise+

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:; have lived in ,oise for : years or more. ; are between the ages of 5 and 44.

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40; have completed some college.

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4; are managers! professionals andor owners of a business.

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5; are married.

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5; have no children living at home.

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5; own their residence.

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Psychographics: • •

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The appearance of her home is a priority. <ntertaining and showing her home is important. =he perceives herself as creative! tasteful and able! a ble! but see$s validation and support regarding her decorating ideas and choices. =he reads one or more of the following maga'ines+ o

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%artha =tewart iving. #ountry iving.

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2ome.

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2ouse ,eautiful.

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#ountry 2ome.

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%etropolitan 2ome.

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Traditional 2omes.

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Victoria.

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rchitectural 7igest.

 

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<lle 7ecor.

Behaviors • •

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=he ta$es pride in having an active role in decorating their home. 2er home is a form of communicating "who she is" to others. #omparisons within social groups are made on an ongoing basis! but rarely discussed.

Market Analysis

%ar$et nalysis   >otential #ustomers #ountry #l #lub *omen ,oomers in in T Trransition >rofessional Aoungsters Total

 000

00

00

004

005

?rowth 5; :!500 9-!/:5 --4!/44 -4!555 -:9!444 0; /!500 4!00 4-!040 49!4/ 59!09/ -/; !000 :!-40 !05 :!:90 44!59 ./; -5!000 -5!-5 -/:!909 0!59 /!-4

#?@   5.00; 0.00; -/.00; ./;

Market Needs Interior Views Views is providing its customers the opportunity to create a home environment to e)press who they are. They have the choice to select their fabric and go whatever direction they choose && to fabric it themselves or have it done for them. They have the opportunity to actively  participate in the design! loo$! and feel of their home. They desire their home to be personal! uniBue! and tasteful as well as communicate a message about what is important to them. *e see$  to fulfill the following benefits that we $now are important to our ou r customers. • •

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Selection &  wide choice of current and tasteful decorator fabrics.  Accessibility - The buyer can wal$ out of the store with the fabric they need to begin their pro(ect. ustomer Design Services & <mployees have a design bac$ground to ma$e them a resource for the customer. This enables customers to benefit from suggestions regarding the selection of their fabric and related products in a manner to complement their design choice. ompetitive Pricing - ll products will be competitively priced in comparison to stores in the >ortland! Oregon mar$et Cbest price comparisonD c omparisonD and other channels of distribution! such as catalog sales.

Market !rends The home te)tile mar$et! considered to include sheets! towels! draperies! carpets! blan$ets! and upholstery!! accounts for :; of all te)tile output. upholstery ou tput. The trade publication " Home Textiles Textiles Today Today" estimates the si'e of the E.=. home te)tiles mar$et at the wholesale level! e)cluding carpets! to

 

 be between 3.5 billion to 3: billion annually. The The industry is e)pected to reali'e a steady increase over the ne)t few years. The industry is driven by the number of "household formations" which is e)pected to continue through the first years of the new millennium. This is primarily due to the solid growth g rowth in the number of single&parent and non&family households. This growth also comes from baby boomers needing bigger houses to accommodate growing and e)tended families and! as people get older! they are buying homes rather than renting to reali'e ta) and eBuity building benefits. 1avorable mortgage rates will also enable others to invest in their e)isting home. The "do&it&yourself" C7IAD mar$et continues to grow and closely parallels the professional home&improvement mar$et. 7IA mar$et growth is attributed to an increased presence of  products! the personal satisfaction e)perienced! and the cost savings customers reali'e.  portion of the do&it&yourself mar$et is the "buy&it&yourself" C,IAD mar$et. #onsumers are buying the  product and arranging for someone else to do the fabrication andor installation. This is is more e)pensive then the do&it&yourself approach! but less costly than buying finished products from other sources. It also provides similar feelings of creativity! pride! and individuality associated with direct creative involvement. This sense of "participation" in home decorating deco rating is an important factor for many of these committed customers  customers 

Market Gro"th The publication! American Demographics! pro(ects the number of E.=. households will grow by -; between -995 and the year 0-0! an increase from 9/.5 million to --5 million. Of the households comprised of people from 5 to 44 years old! almost half are married couples with children under the age of -/. ,ased on research by  American Demographics! households in the 45 to 5 age range should grow to 4 million by the year 000. These households will increase another  percent to 45 million in 0-0 as baby boomers add to this pea$&earning and spending age group. *ith appro)imately 4.; of the nation6s 9. million dwellings built before -90! many of these homeowners are also e)pected e)p ected to update. These factors contribute to an increased need for home decorator fabrics for window treatment! upholstering! pillows! bedding! and other fabric accessory needs. This demand is e)pected to be complemented by the growth in the ,oise mar$et. The ma(ority of homeowners spend a large percentage of their disposable income on home goods within two years after buying a new house. Therefore! positive trends in new housing activity represents growth and opportunity for home te)tiles. One important factor is that married couples in the 5  5 to 5 age range represent a growth segment and en(oy larger incomes than other family structures. They en(oy the choice to spend their disposable income on life6s amenities. They may demonstrate "cocooning" by ma$ing their home a more comfortable and attractive haven. They choose to spend resources here rather than on vacations and other discretionary options. This group represents a larger sub&segment of the target mar$et.

 

S#$! Analysis The following =*OT analysis captures the $ey strengths and wea$nesses within the company! and describes the opportunities and threats facing Interior Views. Views.

Strengths

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=trong relationships with suppliers that offer credit arrangements! fle)ibility fle)ibility!! and response to special product reBuirements. <)cellent and stable staff! offering personali'ed customer service.

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?reat retail space that offers fle)ibility with a positive and attractive atmosphere.

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=trong merchandising and product presentation.

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?ood referral relationships with complementary vendors! local realtors! and some designers. In&store complementary products through "The *indow =eat" and "ntiBue ,ureau" add interest! stability and revenue. 2igh customer loyalty among repeat and high&dollar purchase customers.

#eaknesses

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ccess to capital. #ash flow continues to be unpredictable.

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Owners are still climbing the "retail e)perience curve."

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ocation is not in a heavily traveled! traditional retail area.

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#hallenges of the seasonality of the business.

$pportunities •

?rowing mar$et with a significant percentage of our target mar$et still not $nowing we

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e)ist. #ontinuing opportunity through strategic alliances for referrals and mar$eting activities.

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,enefiting from high levels of new home construction.

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#hanges in design trends can initiate updating and therefore sales.

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Increasing sales opportunities beyond our "-00&mile" target area.

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Internet potential for selling products to other mar$ets.

!hreats •

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#ompetition from a national storeF or a store with greater financing or o r product resources could enter the mar$et. #atalog resources! including #alico #orners and >ottery ,arn! are aggressively priced with comparable products. #ontinued price pressure! reducing contribution margins. 7ramatic changes in design! including fabric colors co lors and styles! creates obsolete or less  profitable inventory. inventory.

ompetition #ompetition in the area of decorator fabric comes from three general categories! traditional fabric retail stores! catalog sales! and discounters. %etail Stores

#urrent local competition includes the following+ •

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&ouse o' (abrics && Gationwide recognition and buying power of numerous types of dated fabric with strong product availability. This store has e)perienced financial difficulty in recent years and has closed several locations throughout the country. #arehouse (abrics && ocally owned! offering low&cost products with a wide selection of discontinued fabrics and only a limited number of "current" fabrics. This warehouse concept offers marginal customer service with what many "upper end" customers cu stomers consider to be an "undesirable" shopping environment.

 

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)oAnn*s && Gationwide chain with strong buying power. They have a broad fabric selection for clothing with a limited number of in&store decorator fabrics available. Their  primary target mar$ets are the clothing seamstress! seamstress! with an increasing emphasis on craft items. +nterior Designers && There are : interior designers listed in the ,oise Aell Aellow ow >ages CAear CAe ar 000&00- issueD that offer fabric as a part of their services. Interior designers

ma$e profit off mar$ up of fabric in addition to their hourly services charges. Their costs  per yard are typically higher since they do not benefit from retail or volume discounts. Therefore! their costs to their customer is often two to four times higher than the price per  yard from Interior Views. Views. •

#ebsite Providers && 1abric sales over the *eb *eb are limited at this time! and this will be a source of competition for the future to watch. #urrently! #urrently! there is no measurable impact on our mar$et through competitive websites.

atalog ompetitors

n increasing level of competition is anticipated from catalog sales. @ecent trends! such as those demonstrated in the well established but evolving catalog  Pottery Barn! indicates increased interest in offering decorator fabric! window designs! and other home decorating products through this increasingly popular channel of distribution. #atalog sources do not offer customers the option to see! touch! and have the fabric in their homes. >rice is the most significant competitive factor this product source presents. The most aggressive catalog competitor is Calico Corners followed by Pottery Barn and other home&accessory&based providers. Discounters

#hannels of distribution continue to shift in favor of discounters! who account for a significant  portion of the growth in the industry. industry. s s consumers e)perience lower levels of disposable income! discounters leverage freBuent store promotions to entice frugal! value&oriented consumers. One of the biggest criticism of discounters is their failure to offer a Buality service e)perience and their failure to present inviting displays to promote p romote sales. These discounters! along with specialty store chains! present one of the most severe competitive threats for individually&owned specialty stores. This is partially due to e)tensive promotional efforts! price advantages! and established relationships with their vendors. One e)ample of these discounters is the "home improvement" chains! such as 2ome ,ase. This aggressive retailer has adopted a strategy to include complete decorator departments in their metropolitan stores. #urrently e)isting in the os ngeles mar$et! this strategy is anticipated to be introduced into the =eattle area and other select metropolitan mar$ets within the year. lthough lthough the ,oise 2ome ,ase store sells basic curtain rod hardware and other hard cover window treatment! there are no $nown  plans at this time for the ,oise 2ome ,ase store to to implement this in the foreseeable future. This will be an important issue to monitor for competitive purposes. #reate or edit this chart

 

Gro"th and Share Analysis

?rowth and =hare   #ompetitor 2ouse of 1abrics *arehouse 1abrics 8onn6s 1abrics Interior 7esigners & #ombined Interior Views Other   verage Total

>rice 3/0 3:5 3/0 305 3-5 30

?rowth @ate 5; /; ; -; 5; 0;

%ar$et =hare -/; ; -; 5; 9; 0;

395./ 35:5.00

9.; 5.00;

-/.50; ---.00;

Product $''ering Our primary points of differentiati d ifferentiation on offer these Bualities+ •

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The most e)tensive access to in&stoc$! first Buality decorator fabrics within -00 miles of our primary geographic mar$et and offered at affordable prices. The largest selection of special&order fabrics! with arrangements to have most of those  products shipped to the store within -0 days of placing the order. >ersonal assistance from a design&oriented staff that is Bualified and capable of meeting the needs of discerning customers with high e)pectations.

 

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#omplementary product offering! including hard&covering window treatment! hardware! home accessories! made&to&order upholstered furniture! and antiBues that are designed! selected! and displayed in a way to emphasi'e the use of fabric in home design.

Interior Views Views will Bualify for the most attractive retail discount through these suppliers! offering greater profit margins and more competitive pricing for bolt purchases in Buantities of 50 to 0 yards! or in half of that yardage with a "cutting fee" that increases cost per yard by an average of 50 cents. The primary product lines will include fabrics from the following te)tile sources+

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@obert llen 1abrics 1abricut

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*averly 1abrics

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=pectrum

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rt %ar$

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#ovington

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>Haufmann

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#omplementary accessories! including fabric trims! drapery hardware! and hard&covering window treatments! are supplied from the following sources+

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2unter 7ouglas && 2ard&window coverings. Hirsh && @ods and selected window hardware and accessories.

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#onso && Trims and 1abric 1 abric ccessories.

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>etersen&rne && Tr Trims ims and ccessories.

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?raber && =elected window hardware.

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?rumman && Threads.

,eys to Success

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%aintain gross margins in e)cess of 45;. @etain customers to generate repeat purchases and referrals.

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?enerate average sales in e)cess of 3-!000 per business day.

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ritical +ssues Interior Views Views is still in the "speculative" stage as a retail store. Its critical issues are+

 

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@elatively slow annual sales growth. *ith *ith admirable results through the first 0 months of operation! the mar$et continues to hold ho ld promise! but! as learned through the first two years of operation! it is still smaller that what it should be to support a store of this $ind. #ontinue to ta$e a fiscally&conservative approachF downscale when necessary and modify our business model based on mar$et response.

Marketing Strategy Our mar$eting strategy is based on becoming the resource of choice for people loo$ing for decorator fabrics! do&it&yourself! and buy&it&yourself resources to create a loo$ in their home. Our  mar$eting strategy is based on superior performance in the following areas+

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>roduct selection. >roduct Buality. Buality.

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#ustomer service.

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Our mar$eting strategy will create awareness! interest! and appeal from our target mar$et for what Interior Views offers our customers.

Mission Interior Views Views # is a store for discerning! Buality&conscious buyers of decorator fabrics and complementary home accessories and furniture. The store celebrates the home through the color and te)ture of fabric. The e)perience informs! inspires! and shows people peo ple how to transform their home into a uniBue and personali'ed e)pression of themselves. Interior Views Views see$s to encourage people to imagine what can be! and help ma$e their vision a reality.

Marketing $bectives -. %ainta %aintain in a gross gross marg margin in of 45; 45; each each month. month. . ?enerate ?enerate an average average of 3-!000 3-!000 of sales sales each business business day each month. month. . <)perience <)perience a 35!000 35!000 increase increase in Buarterly Buarterly sales sales with with each newsletter newsletter.. 4. @eali'e @eali'e an annual annual growth growth rate of of appro)imat appro)imately ely 5; in in the year year 000.

(inancial $bectives -.  growth growth rate rate in sales sales of -; for for the year year 000! to total total in e)cess e)cess of 34-!00 34-!00 in total total revenues. . n average average sales sales per busines businesss day C05 C05 days per per yearD yearD in e)cess e)cess of 3-!000. . @educe the e)isti e)isting ng credit credit line by a minimum minimum of 3!400.

!arget Markets

 

The target mar$ets are separated into four segmentsF "#ountry #lub *omen!" *omen!" ",oomers in Transition!" Transiti on!" ">rofessional Aoungsters" Aoungsters" and "2ome ,uilders." The primary mar$eting opportunity is selling to these well defined and accessible target mar$et segments that focuses on investing discretionary income in these areas+ ountry lub #omen && The most dominant segment of the four is comprised of women in the age range of 5 to 50. They are married! have a combined income of greater than 3/0!000! own at least one home or condominium! and are socially active at and away from home. They are members of the ,oise #ountry #lub! The 7owntown thletic #lub! the 8unior eague of ,oise! E*!! andor the 7octor *ives u)iliary. E* u)iliary. They have discretionary income! and their home and how it loo$s is a priority. The appearance of where they live communicates who they are and what is important to them. This group represents the largest collection of "%artha =tewart *anna ,e6s!" with their profile echoing readers of  Martha Stewart Living maga'ine! based on the current demographics described in the  Martha Stewart Living Media Kit . Boomers in !ransition && This group! typically ranging in age from 50 to 5! is going through a  positive and planned life transition. They are changing homes Ceither building or movingD or remodeling due to empty nest syndrome! retirement plans! general downsi'ing desires! or to (ust get closer to the golf course. Their surprisingly high level of discretionary income is first spent

on travel! decorating home a close woman of the is the decision ma$er! andwith often does not their always include the second. husbandThe in the selection orcouple purchase process. Pro'essional .oungsters && #ouples between the ages of 5  5 and 5 establishing their first "adult" household fall into this group. They both wor$! earn in e)cess of 350!000 annually! and now want to invest in their home. They see$ to en(oy their home and communicate a "successful" image and message to their contemporaries. They buy big when they have received a promotion! a bonus! or an inheritance. &ome Builders -- >eople in the building process! typically ranging in age from 40 to 0! are  prime candidates for Interior Views. Views.

Positioning 1or the person creating a personali'ed and uniBue impression of her home! Interior Views Views is the  best local source for selection and price points of the fabric! customer&oriented customer&oriented design services! and a variety of other home accessory and furniture products. #ustomers will be impressed with! and return for! the great in&stoc$ selection! value&oriented pricing! and e)cellent customer cu stomer service. Enli$e 8onn6s! *arehouse *arehouse 1abric! or catalogs! Interior Views is a pleasant and tasteful resource that encourages everyone in the process of decorating their home. Enli$e employing an interior decorator! Interior Views Views allows the individual to participate in their design choices to the e)tent they choose! and reali'e greater value for the dollars they invest.

Strategies The single ob(ective is to position Interior Views as the premier source for home decorator fabrics in the ?reater ,oise area! commanding a ma(ority of the mar$et share within three years.

 

The mar$eting strategy will see$ to first create customer awareness regarding the products and services offered! develop that customer base! establish connections with targeted mar$ets and wor$ toward building customer loyalty and referrals. Interior Views6 Views6 four main mar$eting strategies are+ -. Increa Increased sed awaren awareness ess and image. image. . evera everagin ging g e)isti e)isting ng cust custome omerr base. base. . #r #ros osss sell sellin ing. g. 4. Gew home home const construc ructi tion on promo promotio tion. n. Strategy /0 nterior +N%1AS1D A#A%1N1SS and +MAG1 - n!orming those not yet aware o! what nterior "iews o!!ers# •

Advertising  o %artha =tewart o

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Interior %otives

%e'erral Generation  o

@ealtor "open house" promotions

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#omplementary vendor referrals 

Imperial 1loors.

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Epholstery resources.

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"7esign Time" Interior 7esign.

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:th =treet 1abrics.

$rgani2ation %elationships  o

#o&sponsorships of fund raising activities

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2osting events 

uncheons.

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Teas.

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<vening events.

 

Strategy /3 4151%AG+NG 16+S!+NG 7S!$M1% BAS1 - $%r &est sales in the !%t%re will come !rom o%r c%rrent c%stomer &ase# •

Ne"sletter  o =ales promotions o

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#lasses <vents

ustomer Service and %elationships   o

<)ceptional customer service in the store

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1ollow up contact

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>ersonal shopper support

Additional 18periences  o

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#lasses 7emonstrations

Strategy /9 %$SS S144+NG - ncreasing the average dollar amo%nt per transaction# transaction# •

+nternal  o dditional sales of trims! notions! and accessories o

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>romoting sales of furnitureF #hameleon and =cottie %ac lines

Sub-4ease Sales  o

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ntiBues through "ntiBue ,ureau" ccessories through "The *indow =eat"

Strategy / N1# &$M1 $NS!%7!+$N P%$M$!+$N & Connecting with people involved in the &%ilding process# •

onnecting "ith ;Suppliers;  o @ealtors gift certificate program o

,uilders design support services

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oan Officers gift certificate program

 

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onnecting "ith ;ustomers;  o

=ubscription and use of "newcomers" report

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#hamber of #ommerce new members update

Marketing Mi8 In brief! our mar$eting mi) is comprised of these approaches to pricing! distribution! advertising and promotion! and customer service. Pricing &&  $eystone pricing formula plus 3.00 will be applied for most fabrics. The goal is to have price points within 5; of the list price of #alico #orners6 retail prices. This insures competitive pricing and strong margins. Distribution && ll ll product is distributed through the retail store. The store does receive phone orders from established customers and we will be developing a website. Advertising and Promotion && The most successful advertising has been through the ,oise 2erald and through ads on "%artha =tewart" and "Interior %otives" television shows. The Buarterly newsletter has also proven to be an e)cellent method to connect with the e)isting customer base! now with a mailing list of 4!00 people. ustomer Service && <)cellent! personali'ed! fun! one&of&a&$ind customer service is essential. This is perhaps the only attribute that cannot be b e duplicated by any co competitor. mpetitor.

Product Marketing Our products enable our customers to e)perience support! gather ideas and options! and accomplish their decorating goals. They will be able to create a loo$ that is truly uniBue to their home. They will not be able to do this in the same way through any other resource.

Price >roduct pricing is based on offering high value to our customers compared to most price points in the mar$et. Value is determined based on the best Buality available! convenience! and timeliness in acBuiring the product. p roduct. *e will will consistently be below the price points offered through interior designers and consistently above prices offered through the warehouseseconds retail stores! but we will offer better Buality and selection. #reate or edit this chart

 

Promotion The most successful advertising and promotion has been through the following+ • •

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Ne"spaper Advertisements & ,oise 2erald. !elevision !e levision Advertisements & "%artha =tewart" and "Interior %otives" television shows.

direct mail! 4&page newsletter distributed to the <uarterly Ne"sletter and Postcard &  direct customer mailing list generated from people completing the "register" sign up in the store. The mailing list now totals more than 4!00 people. +n Store lasses & "2ow to" classes! most of which are free! have been successful  because of the traffic and sales they generate after the class. Typically Typically 90 minutes in in length and most held on =aturday! these are the most popular classes+ o

">illow Tal$" & >illow fabrication.

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"=pea$ing of =lip #overs" & =lip cover presentation and discussion.

o

"=hades of the =eason" & *indow *indow treatment options with fabric.

Service The first goal is to recogni'e everyone as they come into the store. If they are a repeat customer! they are referred to by name. If they are a new customer! they are as$ed! "2ow did you hear about us" 2elp is always available and never invasive. The store is staffed to be able to dedicate de dicate time and energy to customers that want assistance when they need it. The store is designed so a customer canTheir sit aschildren long as are theyalso want to loo$ at boo$s! fabric samples! andtoys review the resources in the store. welcome! with a television! V#@! and available in the

 

childrens6 area in clear view of the resource center. * *ee provide service in a way that no other competitive retail store can touch. It is one of our greatest assets and points of differentiation. Insight! ideas! inspiration! and fun is the goal. @epeat! @epea t! high dollar purchases from loyal customers is the desired end product.

Marketing %esearch •

•

•

Initial Juestion @esults && The staff notes customer responses to the "2ow did you hear about us" Buestion. *e attempt attempt to correlate that with our advertising and promotional activities and referral&generation programs. =tore =uggestions && The store suggestion bo) is another method to gain additional information from customers. =ome of the most productive Buestions are+ o

*hat suggestion do you have to improve the store

o

*hy did you visit the store today

o

*hat other products or services would you li$e to have available in the store

#ompetitive =hopping && *e continually shop other stores. *e visit each store in our mar$et at least once each Buarter for competitive information! we visit stores in the =eattle and >ortland mar$ets for merchandising and buying insight! and we subscribe to every catalog we $now that has decorator fabrics as any part of their product line.

ontrols The following will enable us to $eep on trac$. If we fail in any of these areas! we will need to re& evaluate our business model+

•

?ross margins at or above 45;. %onth&to&month annual comparisons indicate an increase of 0; or greater.

•

7o not depend on the credit line to meet cash reBuirements.

•

#ontinue to pay down the credit line at a minimum of 34!000 per year.

•

+mplementation The following identifies the $ey activities that are critical to our mar$eting plan. It is important to accomplish each one on time and on budget.

Milestones #reate or edit this table %ilestones  

 

dvertising  Gewsletter J Gewsletter J  Gewsletter J  Gewsletter J4 >ostcard Television #ampaign & 1all -999

=tart 7ate ---999 -5000 -000 9-000 ---5000 --000

<nd 7ate -000 -5000 0000 90000 -5000 -0000

,udget 3-!50 3-!400 3-!450 3-!500 3:50 3:/0

Television #ampaign & 1all 000 <vent & @ealtor >romotion <vent & 8unior eague <vent & 1or The rts Total dvertising ,udget >@  Game me  Game me  Game me Other Total >@ ,udget 7irect %ar$eting  Game me  Game me  Game me Other Total 7irect %ar$eting ,udget *eb 7evelopment  Game me  Game me  Game me Other Total *eb 7evelopment ,udget Other  Game me  Game me  Game me

9-000 -000 5-000 9-000

--000 /000 5-000 90000

=tart 7ate --00 --00 --00 --00

<nd 7ate --500 --500 --500 --500

=tart 7ate --00 --00 --00 --00

<nd 7ate --500 --500 --500 --500

=tart 7ate --00 --00 --00 --00

<nd 7ate --500 --500 --500 --500

=tart 7ate --00 --00 --00

<nd 7ate --500 --500 --500

3!-0 3400 3400 3400 3--!550 ,udget 30 30 30 30 30 ,udget 30 30 30 30 30 ,udget 30 30 30 30 30 ,udget 30 30 30

--00

--500

Other Total Other ,udget Totals

30 30 3--!550

%anager 8udy 8udy 8udy 8udy 8udy 8ulie

7epartment <)isting <)isting <)isting <)isting <)isting Gew

8ulie Gew 8ulie 2o 2ome ,uilders Handi Gew >at Gew %anager ,# ,# ,# ,#

7epartment 7epartment 7epartment 7epartment 7epartment

%anager ,# ,# ,# ,#

7epartment 7epartment 7epartment 7epartment 7epartment

%anager ,# ,# ,# ,#

7epartment 7epartment 7epartment 7epartment 7epartment

%anager ,# ,# ,#

7epartment 7epartment 7epartment 7epartment

,#

7epartment

Marketing $rgani2ation 8udy *ilson! *ilson! the owner! o wner! is the one primarily responsible for mar$eting activities. This is in addition to her other responsibilities! and she does depend on some outside resources for mailing C7onna at >ostal #onnectionD and some graphic design wor$. 8udy does delegate responsibilities to 8ulie 2anson to assist with television advertising. 8ulie and the other staff members are also responsible for at least one special event throughout the year.

ontingency Planning

 

Di''iculties and %isks

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Slo" sales resulting in less-than-proected cash 'lo"= 7ne8pected and e8cessive cost increases compared to the 'orecasted sales=

•

$verly aggressive and debilitating actions by competitors=

•

•

A parallel entry by a ne" competitor=

#orst case risks might include: • •

•

Determining the business cannot support itsel' on an ongoing basis= &aving to li>uidate the inventory to pay back the bank loan= 4ocating a tenant to occupy the leased space 'or the duration o' the 'ive year lease ?)anuary o' 3@@9=

•

4osing the assets o' the investors used 'or collateral=

•

Dealing "ith the 'inancial business and personal devastation o' the store*s 'ailure=