Luna's uses a strategy of impressive customer service. Luna's will not have a typical convenience store feel. It will provide higher-end food and hard goods than are typically found in convenience stores. The store's competitive edge is its prominent location, in a high income neighborhood.
Superior customer service will attract customers to come into the store more often.
Every customer can be upsold to more products that they came in for.
Marketing to high end individuals will lead to higher average sales per customer.
5.1 Competitive Edge
Luna's competitive edge is its location and its position as first to market. Luna's is located within walking distance of every residence on Aspen Estates. Currently there are no other stores offering similar products within a 2 mile radius of the Estates. As new residents move into Aspen Estates, they will naturally chose Luna's Convenience store as their first choice, because it is closest to their homes. They will quickly become aware that Luna's offers high quality organic and healthy products as well as a typical convenience store fare and it will become their preferred store for small grocery and household purchases.
5.2 Marketing Strategy
Luna's is fortunate to have access to marketing research information that was developed by the developers of Aspen Estates, so the company has knowledge of a large portion of its potential market. These relatively high income group presents a prime opportunity for Luna's. Knowing about the needs of this group will help Luna's purchase goods that are most desired by their key target markets. The convenient location of the store will mean that Luna's will have to do little above the line advertising.
5.3 Sales Strategy
Luna's will aim to provide a typical convenience store fare as well as items that they will purchase on impulse and that will increase the average sale per customer. The sales staff will be focused on customer service and always ask customers if they have found everything that they need.
5.3.1 Sales Forecast
The average customer ticket is expected to be $5.50 cents. This is greater than the industry average of $3.75, due to the demographics of the surrounding neighborhoods and the focus on branded goods and organic, healthy foods.
Fresh Foods, Dairy and Drinks
Beer, Wine and Cigarettes
Direct Cost of Sales
Drinks (inc. beer and wine)
Subtotal Direct Cost of Sales
The accompanying table lists important program milestones, with dates and managers in charge, and budgets for each. The milestone schedule indicates the tasks that Thomas and Heidi will have to complete in order to have a successful start up.