Strategy and Implementation Summary
Regali Luxuri will develop effective marketing & sales strategies by focusing on the following key areas:
- Distribution channels
- Customer relations
These keys areas will reflect our existing and potential target market segments previously mentioned.
5.1 Competitive Edge
KEY COMPETITIVE STRENGTHS
- Customized Services — These “tailor-made” services offer the customer a personal connection to the product that he/she is purchasing. This type of service is not commonly offered in today’s retail marketplace.
- Printing Services — The added printing products service within the gift shop is unique for a gift shop. This will enable customers to bring in personal photographs and mementos or email digital images to create greeting cards, 12-month calendars or business cards. These types of items then become personal keep-sakes and one-of-a-kind type merchandise.
- Handmade/Handcrafted Products — The handcrafted products will be designed by owners Bensai and Kaethe as well as outside entrepreneurs. We will showcase their crafts on consignment. This will also broaden the our own product line.
- Brand Identity — The proprietary products that we design will be distinguished from other products by brand labels. Our brand name merchandise makes up 50% of our present product line. Promoting “brand recognized” merchandise connects the customers to products that represent high-quality and dedicated customer service.
KEY COMPETITIVE WEAKNESSES
- Range of Product Line — Although Regali Luxuri’s present product line is unique and high-end merchandise, the range of our products is considered small in relation to more established businesses. Yet these items are engaging and personable.
- Location of the Gift Shop — Because the area is in its developing stages of residential and commercial enterprise zones, business traffic is relatively slow. However with time, west midtown will undoubtedly generate a traffic-flow of curious residents and outside customers.
5.2 Marketing Strategy
Although Regali Luxuri products are high-end and stylish, our pricing structure remains affordable and in-line with other specialty gift retailers. Our pricing structure is also based on the value the customers place on these products.
Regali Luxuri will host several seasonal open houses offering special discounts. This promotional strategy will showcase new products and liquidate slow moving merchandise. The following illustrate the seasonal open houses:
- Spring: 15-20% discounts
- Fall: 15-20% discounts
- Summer: 15-20% discounts
- Annual Anniversary: 25% discounts
Existing customers as well as potential customers will be informed about new merchandise and savings utilizing the following marketing communications channels:
- Direct-Mail Postcards: Advertising postcards will be mailed to various local ZIP codes and to existing clientele located out of state.
- Word-of-Mouth: Networking through friends, family, and business associates is an inexpensive and effective marketing tool which Regali Luxuri utilizes to broaden our clientele base.
- Advertising Literature: Regali Luxuri will distribute our literature to various local community businesses and establishments such as restaurants, coffee shops, book stores, and universities.
5.3 Sales Strategy
Establishing a rapport and connection with the customer directly effects a business’ sales. The following methods will establish such a connection:
- Training and Customer Needs: While training sales associates, we will emphasize the importance of the customer’s needs and inform associates to be helpful and personable.
- Suggestion/Comment Box: A suggestion/comment box will be available to customers near the boutique’s entrance. This provides Regali Luxuri with direct customer feedback concerning areas of improvement or enhancements.
PRODUCTS AND MERCHANDISING
Staying abreast of product and market trends is also essential to increased sales for a business. Regali Luxuri will utilize the following methods to increase our sales:
- Gift Industry Trade Shows: Frequenting local and national trade shows will provide Regali Luxuri with most up-to-date gifting products and the customer’s buying trends.
- Subscribing to Trade Publications: This resource will also ensure that Regali Luxuri product selections are current and satisfying the customer’s needs.
- Proprietary Products: Regali Luxuri will continue to develop creative and stylish products that will continue to strengthen our brand positioning and company image.
5.3.1 Sales Forecast
For this first year we have chosen to average our cost of goods across all product lines at 42%. As we track our real costs our forcasts for subsequent years’ COGS will be adjusted. Sales forecasts show the cyclical trends of seasonal/holiday spending and post-holiday frugality. Current forecasts show decling sales in the summer months, but as the neighborhood economic/residential develpment continues, there is the possibility of more visitors/vacationers/guests/residents shopping the area, and our sales would then improve.
|Year 1||Year 2||Year 3|
|Personal Care Accents||$10,875||$13,594||$16,313|
|Bamboo Garden Vase Collection||$12,390||$15,488||$18,585|
|Direct Cost of Sales||Year 1||Year 2||Year 3|
|Personal Care Accents||$4,567||$4,567||$4,795|
|Bamboo Garden Vase Collection||$5,203||$5,203||$5,463|
|Subtotal Direct Cost of Sales||$27,449||$27,449||$28,821|
The following lists important milestones for Regali Luxuri along with dates and person(s) responsible for each task.
|Milestone||Start Date||End Date||Budget||Manager||Department|
|Store Location Confirmed||1/1/2003||1/15/2003||$0||Bensai||Department|
|Lease Agreement Negotiated/Signed||1/15/2003||3/1/2003||$0||Bensai/Kaethe||Department|
|Utilities, Internet Service Confirmed||3/1/2003||3/6/2003||$0||Selma||Department|
|Vendor List Selection||5/1/2003||2/1/2004||$0||Bensai/Kaethe||Department|
|Product Selection Confirmed||5/1/2003||2/1/2004||$0||Bensai/Kaethe||Department|
|Business Acccount Opened||7/1/2003||7/1/2003||$0||Bensai/Kaethe||Department|
|Business Plan Completed||10/1/2003||2/20/2004||$0||Bensai/Shantu||Department|
|Grand Opening Advertisement||12/1/2003||1/1/2004||$0||Bensai||Department|
|Business Cards & Stationery Printed||1/1/2004||2/1/2004||$0||Kaethe||Department|