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Regali Luxuri

Strategy and Implementation Summary

Regali Luxuri will develop effective marketing & sales strategies by focusing on the following key areas:

  • Prices
  • Promotions
  • Distribution channels
  • Customer relations
  • Products

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

PRICING 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.

PROMOTION STRATEGY

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

MARKETING CHANNELS

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

CUSTOMERS

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.

Gift shop business plan, strategy and implementation summary chart image

Gift shop business plan, strategy and implementation summary chart image

Sales Forecast
Year 1 Year 2 Year 3
Sales
Personal Care Accents $10,875 $13,594 $16,313
Candle Products $7,800 $9,750 $11,700
Bamboo Garden Vase Collection $12,390 $15,488 $18,585
Home Accessories $11,190 $13,988 $16,785
Pet Products $7,770 $9,713 $11,655
Printing Products $8,960 $11,200 $13,440
Customized Apparel $6,370 $7,963 $9,555
Total Sales $65,355 $81,694 $98,033
Direct Cost of Sales Year 1 Year 2 Year 3
Personal Care Accents $4,567 $4,567 $4,795
Candle Products $3,278 $3,278 $3,442
Bamboo Garden Vase Collection $5,203 $5,203 $5,463
Home Accessories $4,700 $4,700 $4,935
Pet Products $3,264 $3,264 $3,427
Printing Products $3,763 $3,763 $3,951
Customized Apparel $2,674 $2,674 $2,808
Subtotal Direct Cost of Sales $27,449 $27,449 $28,821

5.4 Milestones

The following lists important milestones for Regali Luxuri along with dates and person(s) responsible for each task.

Gift shop business plan, strategy and implementation summary chart image

Milestones
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
Licensing/Business Entity 7/18/2003 8/18/2003 $0 Bensai/Kudana 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
Totals $0