The primary sales and marketing strategy includes these factors:
The following SWOT analysis captures the key strengths and weaknesses within the company, and describes the opportunities and threats facing Interior Views.
The following three strategies summarize our implementation process for the upcoming year. Then address in-store retail revenue, expansion to non-fabric revenue sources, and Web-based sales activities.
STRATEGY #1 - Generate revenue through the sale of solid margin decorator fabric in the retail store.
Tactic #1A - Provide in-stock fabric through the on-floor stock of 750 fabrics that the customer can touch, feel, and buy on the spot.
Program #1A-1 - Floor displays that enable customers to better imagine the fabric in their home.
Tactic #1B - Offer special order fabric that will provide something unique for each customer.
Program #1B-1 - Classes to provide the skills for people to fabricate their own products, including duvettes, pillows, slipcovers, draperies and other "fabric demanding" projects.
Program #1B-2 - Offer sales and other promotional events that will encourage customers to buy on a spontaneous basis and/or motivate them to begin that overdue project.
STRATEGY #2 - Generate sales revenues through related non-fabric sales.
Tactic #2A - Promotion of "Oval Office Iron" product line
Program #2A-1 - Newsletter sales, class, and demonstration promotions
Program #2A-2 - Cross selling activates with drapery fabric purchases
Tactic #2B - Promotion of "The Window Seat" products that complement fabric sales
Program #2B-1 - Displays that complement in-stock fabric to promote the higher dollar sales transactions of both.
Program #2B-2 - Newsletter sales, class, and demonstration promotions.
Tactic #2C - Promotion of consignment-based sales
Program #2C-1 - Leverage these items to better display fabric and home accessories
Program #2C-2 - Use the newsletter and website to promote sales, class, and demonstration promotions.
STRATEGY #3 - Generate revenue through our home website and eBay store from customers outside the reach of the retail store.
Tactic #3A - Better facilitate and communicate the fabric and other inventory the store has to offer on the Web.
Program #3A-1 - Redesign website www.fabric-online.com.
Program #3A-2 - Establish our eBay store.
Program #3A-3 - Tighter integration of Web-based activities into the daily routine of store personnel.
Tactic #3B - Monthly assessment of performance of email inquiries and revenue generation
Program #3B-1 - Establish goals of the program.
Program #3B-2 - Evaluate the total dollar sales as well as sales by product category.
Interior Views offers the highest quality decorator fabric for the home conveniently available for immediate purchase or on a special order basis. The store also offers a selection of antiques, home accessories, and complementary products. Interior Views is unique in that it offers customers the chance to be creative and customize the interior of their home, or they have the option of working with experienced professionals who will guide them through the process. Either way they get everything they need to create their perfect home.
Interior View's website will be recognized due to it's quality products and excellent support. This competitive edge leverages the same proven factors that have resulted in the success of the storefront experience. These same characteristics will be evident on the website. E-commerce sales will be routed by direct links from our home website to our eBay store.
Our marketing strategy is based on becoming the resource for people looking for decorator fabrics and home accessories. The "do-it-yourself" and the "buy-it-yourself" customers will find resources to decorate their homes at a place that is inspiring, inviting, and motivating. Our marketing strategy is based on superior performance in the following areas:
Our marketing strategy will create awareness, interest, and appeal from our target market for what we offer our customers. This will be executed in a manner that will entice them to come back for repeat purchases and encourage them to refer additional customers to the store and to our website and eBay store.
The most successful advertising and promotional activities have been the following:
The primary source of distribution is through traditional retail channel. On a secondary basis, we will be building revenue generation through our home website and linked eBay store .
The single objective is to position Interior Views as the premier source for home decorator fabrics in the Greater Pleasantville area, commanding a majority of the market share within three years. The marketing strategy will seek to first create customer awareness regarding the products and services offered, develop that customer base, establish connections with targeted markets, and work toward building customer loyalty and referrals.
The four main marketing strategies for Interior Views are:
The strategies will be implemented through the following marketing tactics and programs.
INCREASED AWARENESS and IMAGE - Informing those not yet aware of what Interior Views offers.
LEVERAGING EXISTING CUSTOMER BASE - Our best sales in the future will come from our current customer base.
CROSS SELLING - Increasing the average dollar amount per transaction.
NEW HOME CONSTRUCTION PROMOTION - Connecting with people involved in the building process.
For the person who seeks to create a personalized and unique impression of his home, Interior Views is the source for selection and price for decorator fabric, customer-oriented design services, and a variety of other home accessories and furniture products. Customers will be impressed with, and return for, the great in-stock selection, special order options, value-oriented pricing, and excellent customer service.
Interior Views is a pleasant and tasteful resource for people in the process of remodeling the home. Instead of employing an interior decorator, Interior Views allows the customer to participate in individual design choices, and realize greater value for the dollars invested.
Product pricing is based on offering high value to our customers compared with most price points in the market. Value is based on the best quality available, convenience, and timeliness in acquiring the product. We will consistently be below price points offered through interior designers and consistently above prices offered through the warehouse/seconds retail stores. Interior Views will also provide better quality and selection than the latter.
Our wide array of products enable customers to gather ideas and options, and accomplish their decorating goals. The assistance of the staff in person, on the phone, and through email will complement all aspects of this experience. The customer will have all of the resources, support and guidance they need to create a look that is truly unique to their home. They will not be able to do this in the same way through any other resource.
Online Sales Strategy
The online strategy support the objective to position Interior Views and its eBay store as a preferred source for home decorator fabrics on the Internet as we maintain the position of being considered the premier source in the geographic area of the store. The online sales strategy seeks to first, inform visitors about the Interior Views homesite, and create a positive awareness regarding the product offered; second, provide successful purchasing experiences through the direct click-through to our eBay store, and establish connections with targeted markets; and third, work toward building customer loyalty and referrals.
The online sales approach will accomplish these four objectives:
Strategy #1 - Increasing Awareness and Image - Informing those not yet aware of what Interior Views offers.
Strategy #2 - Leveraging Existing Internet-Savvy Customers - Our best sales in the future will come from our current customer base.
Strategy #3 - Upselling and Cross-selling Activities - Increasing the average dollar amount per transaction.
In brief, our marketing mix is comprised of these approaches to pricing, distribution, advertising and promotion, and customer service.
Pricing -- A keystone 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 Calico Corners' retail prices. This insures competitive pricing and strong margins.
Distribution -- All products are 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 Pleasantville Herald and through ads on "Martha Stewart" and "Interior Motives" television shows. The quarterly newsletter has also proven to be an excellent method to connect with the existing customer base, now with a mailing list of 4,300 people.
Customer Service -- Excellent, personalized, one-of-a-kind customer service is essential. This is perhaps the only attribute that cannot be duplicated by any competitor.
The first goal is to recognize 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 asked, "How did you hear about us?" Help is always available and never invasive. The store is staffed to be able to dedicate time and energy to customers who want assistance when they need it. The store is designed so a customer can sit as long as they want to look at books, fabric samples, and review the resources in the store. Their children are also welcome, with a television, VCR, and toys available in the childrens' area in clear view of the resource center. We 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. Repeat, high dollar purchases from loyal customers is the desired end product.
The Sales Forecast is broken down into four main revenue streams: direct sales, Web sales, consignment sales, and sub-lease revenues. The Sales Forecast for the upcoming year is based on a modest growth rate for direct sales. This is a slower growth rate than what was experienced in previous years, but above the non-existent growth of last year. In spite of the economic unpredictability we are experiencing, these projections appear attainable and take the increasing base into consideration.
Online Sales Forecast
The online sales forecast is conservatively projecting a slow and steady increase in eBay store sales. This approach is intended to realistically project sales to:
Interior Views does have some dynamic alliances. A retail store called "27th Street Fabric" focuses on "dress fabric" and refers customers on a regular basis. There is also a beneficial relationship with "Interior Fabricators" in Lake Oswego, Oregon and this establishment shares inventory purchases to reduce costs for both stores and/or to split minimum order bolts to make the larger quantity purchases more affordable for each.
Strategic Internet Alliances
Our use of the eBay marketplace is a major plus for us. It gives Interior Views access to the online retail channel without having the high start-up expenses of site design, store administration, financial setup, and security programs for a self-run and hosted retail site.
We can optimize moderate expenses in renovating our existing website, and through the use of direct click-through links do all our selling through the established and secure eBay marketplace and PayPal billing systems, while incurring accpetable fees.
Other strategic online alliances do not exist at this time. Opportunities do exist with other retailers, including expanding the established relationship with "Interior Fabricators" to include online activities. This will be an area of concentrated development for the future.
The milestone chart below is accompanied by table which outlines key activities that will be critical to our success in the coming year.