Strategy and Implementation Summary
BikeArt will leverage its competitive advantage of being the only retailer that exclusively deals with bicycle artwork. This is significant as Eugene is truly a bicycling town. BikeArt will also be able to use its outstanding terms and conditions of their lease with Valley River Center that allows them to display their products not only on the kiosk itself but also on the surrounding floor space. Since the mall gets lots of foot traffic all day, it is like having your own show room in the middle of the hallway of a crowded mall. Most retailers could only dream of this arrangement.
5.1 Competitive Edge
BikeArt’s competitive edge is its specialization in bicycle art. No one else concentrates on this specific type of art. This is truly a competitive edge since BikeArt is based in Eugene, Biketown USA. By only concentrating on this niche, prospective customers will correctly assume that BikeArt has the largest selection and are more likely to come to BikeArt as opposed to going to a bicycle shop looking for some art.
5.2 Sales Strategy
BikeArt’s sales strategy will be based on display and local/environmental support. BikeArt will be able to leverage the outstanding terms of their lease with the mall that allows them to occupy seven feet of floor space in all directions around the kiosk. This space will provide BikeArt with ample area to display larger pieces that they sell. Because they are located in the mall, there will be sufficient walk-through traffic to notice all of BikeArt’s wares on display. This will be the first step in the sale process.
The second step is emphasizing all of the work that is done by local artists and all of the art pieces are made out of recycled bicycle parts. Eugene in general seems to be a very close knit supportive town of local residents, and Eugene shows their support of their own through the purchase of local products. Additionally, all of the artwork is made out of recycled bicycle parts which will be emphasized as an environmentally sound practice, something that will be warmly received by Eugenians.
5.2.1 Sales Forecast
The first month will be used to set up the kiosk and get things underway. During this month the part-time employees will be hired and trained. Sales will begin slowly during this first month. From the second month on, sales will steadily increase because there will be a steady flow of customers that pass by the kiosk.
|Year 1||Year 2||Year 3|
|Industrial art collectors||$58,229||$115,475||$126,547|
|Direct Cost of Sales||Year 1||Year 2||Year 3|
|Industrial art collectors||$29,115||$57,738||$63,274|
|Subtotal Direct Cost of Sales||$72,880||$147,110||$158,166|
BikeArt will have several milestones early on:
- Business plan completion. This will be done as a road map for the organization. While we do not need a business plan to raise capital, it will be an indispensable tool for the ongoing performance and improvement of the company.
- Set up the kiosk.
- First turnover of inventory.
- Revenue exceeding $25,000.
|Milestone||Start Date||End Date||Budget||Manager||Department|
|Business plan completion||1/1/2001||2/1/2001||$0||ABC||Marketing|
|Set up the kiosk||1/1/2001||2/1/2001||$0||ABC||Department|
|First turnover of inventory||1/1/2001||******||$0||ABC||Department|