Liquid Culture

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Clothing E-commerce Site Business Plan

Strategy and Implementation Summary

Liquid Culture will win market share in the women's outdoor clothing niche by aggressively pursuing visibility with its target customers.

5.1 Competitive Edge

Liquid Culture's competitive edge is its focus on the process than on product.  The website is just the endpoint of an entire marketing program to drive customers' interest in Liquid Culture.  Though we have confidence in the quality and attractiveness of our products, we know that building the road to the website is our most important job. 

Larry Wilson's experience with South Face is pivotal to the success of Liquid Culture's website.  South Face's website averaged five million hits a year and is considered one of the most accessible and attractive websites in the clothing industry.  His experience is invaluable in assuring customers' satisfaction with the shopping experience online.

Larry will introduce a new clothing measurement feature that is fun to use and will reduce customers confusion on how the clothing will fit.  This will increase customer satisfaction and reduce returns.

Maggie Granger will be in charge of the clothing design team. As senior clothing designer for Manic Woman Clothing, she watched the Manic Woman's sales grow by 20% for the past five years.  Her clothing designs have been praised in the industry and have spawned many imitators.  With Liquid Culture, Maggie is ready to change how quality women's outdoor clothing is sold. 

Liquid Culture's agreement with Magic Clothing Company is another strong competitive advantage.  Our design team will work closely with the Magic's Indonesian-based manufacturing facilities. The Magic Clothing Company will maintain the inventory and will produce sufficient product to meet the planned demand. This will keep production costs low for products and put a cap on Liquid Culture's overhead.

5.2 Marketing Strategy

Liquid Culture's marketing strategy is a simple one.  In women's fitness magazines like Self, Shape and Strive, Liquid Culture will introduce customers to their products and website. We will also advertise in CosmoGirl and Ellegirl magazines.

For the first two months, Liquid Culture will offer 10% off for all purchases under $100 and 15% off all purchases over $100. We will offer the same discount strategy three more times during the year when new seasonal clothing is introduced.

5.2.1 Pricing Strategy

Liquid Culture's pricing strategy is to pass on most of the store mark-up to the consumer in reduced price for clothing.  This advantage has no negative impact on our sales profit and will also absorb some of the initial cost of offering discounts during our first three months of operation.

5.3 Sales Strategy

Liquid Culture will launch a $245,000 ad campaign targeted at our core customer groups. The focus of the ads will be to "keep the money you give to the middleman" and use it to get outdoors and enjoy life.  Liquid Culture's attractive logo will be heavily displayed in these ads. We estimate it will take most of the year to build our sales to the point where we begin to show a profit. 

Liquid Culture will offer discounts at various times of the year to even out seasonality and build initial awareness of the website.

5.3.1 Sales Forecast

We expect sales to increase at a steady rate for the first year. It will begin slow as we open, but will quickly pick up as our customer base increases. Liquid Culture will see a sales increase of 38% between the first and second year. We feel that we can accomplish this steady goal and maintain this amount of sales.

Sales Forecast
Year 1 Year 2 Year 3
Sales
Clothing $2,170,000 $3,000,000 $4,300,000
Other $0 $0 $0
Total Sales $2,170,000 $3,000,000 $4,300,000
Direct Cost of Sales Year 1 Year 2 Year 3
Clothing $1,249,000 $1,800,000 $2,580,000
Other $0 $0 $0
Subtotal Direct Cost of Sales $1,249,000 $1,800,000 $2,580,000