The “Gift Shop” at Avant-Garde Building has long offered a wide range of novelties and stationary inside one of the most prestigious landmark buildings in Jakarta, Indonesia. The Gift Shop’s customers were primarily employees of the Avant-Garde Building’s tenants. The new venture, “PT. Avant-Garde Shop” is taking over this space and redesigning it as the flagship store of the Avant-Garde Building, through a joint operation with PT. ABC Company Indonesia. We will broaden our customer base by focusing not only on tenants, but also on neighbors of and visitors to the Avant-Garde Building. The grand opening is slated for December 9th. Our main priority at PT. ABC Company is to refurbish the existing outlet to become an official store associated with the lifestyle of the professionals who are the focus of our marketing program. [NOTE: *PT is an abbreviation for Indonesian Perseroan Terbatas, meaning Limited Company.]
This business plan lays out our strategy for re-positioning the “Gift Shop” from “just-another-store” to the “Official Store of Avant-Garde.” This plan will detail services to be provided by ABC Company in the joint operation, along with the implementation milestones for each step. ABC Company will provide several strategic recommendations on how to enhance the traffic and image of the retail facility through re-naming and image revamping, re-modeling of interior and merchandise resource planning.
There are approximately 100 offices inside Avant-Garde Building, and roughly 1,000 visitors daily to Avant-Garde Building. The Avant-Garde Shop has identified three distinct market segments: tenants, neighbors, and visitors.
There are roughly 1,500 Tenants, our primary target customers, who are white-collar workers with large disposable incomes. The secondary target customers are the surrounding office community in the area, who often visit the Avant-Garde Building during lunch hour to meet their colleagues or friends. Both of these groups have already proven their willingness to buy from retail stores within the Avant-Garde building, and out location, on the Mezzanine above the ground floor dining area, is ideal for catching their eye.
The last target customer of the Avant-Garde Shop is visiting guests, both tourists and residents of the Jakarta Metro region who have come to the Avant-Garde Building for a taste of glamour, as the symbol of high-class, high-tech, fast and modern living in Indonesia’s new economy.
PT. Avant-Garde Shop will leverage the existing image and brand-name of the Avant-Garde Building into a formidable brand that reflects power, modernity, wealth, and global sophistication. We will enhance the existing retail space with a new design, and supplement retail sales with catalog and website orders. We must remember that we are not selling merchandise, we are selling a brand, and an image: the New Indonesia.
All monetary amounts in this plan are in 1,000’s of Indonesian Rupiahs (IDR), abbreviated here as Rp.
The Avant-Garde Shop has two objectives for the organization. The objectives are lofty, yet achievable. By developing and tracking progress toward the goals, the organization will push everyone both from PT. Avant-Garde and PT. ABC Company to perform their best.
- To re-position the current “Gift Store” as the Official Store of Avant-Garde, through re-modeling of the retail space and various marketing program to generate more revenue and contribute to the overall Avant-Garde Building equity.
- To achieve a modest net profit of Rp. 1,801,000 by year two and Rp. 6,807,000 by year three.
- To achieve revenue of Rp. 90,299,000 by year one, Rp. 95,717,000 by year two and Rp. 101,460,000 by year three.
The Avant-Garde Shop is a retail store specializing in the sale of novelty of various product mix. The store, however, will emphasis the sale of official merchandise of the Avant-Garde brand with a full assortment of apparel, accessories and stationary, as well as other lifestyle related novelties.
Our goal in ABC Company is to be the sole supplier to those official merchandise of Avant-Garde. We believe that to attain the Avant-Garde Shop positioning strategy, we will need to be consistent within the theme according to lifestyle association of the target customers.
1.3 Keys to Success
In order to succeed in the merchandising retail, the team of Avant-Garde Shop must consider all aspects of significant value to their customers:
- Carry an assortment of various mix to fit the more ample frames of their white collar target customer base, and also create an image where visiting guests can associate themselves with the merchandise offers.
- Provide customers with top notch personalized customer service in an atmosphere of professionalism and hospitality.
- Advertise and promote in areas where our target customer base will learn about our store, through the implementation of point-of-sales (banners, leaflets, flyers), website and other method of marketing medium to attract visitors to visit the location.
- Continuously review our inventory and sales and adjust our inventory levels accordingly.