Gifts, Novelties, Souvenir Business Plan

Avant-Garde-themed merchandise will be the product focus of the Avant-Garde Shop. Our task is to make sure that the Avant-Garde-themed merchandise is keeping up with the latest category trend and needs. The following lists shows examples of products within their respective categories:

Avant-Garde-Themed Novelties/Stationary

• T-Shirts.
• Caps.
• Bags.
• Pens.
• Memopads.
• Calculators.
• Clocks.
• Umbrellas.
• Key chains.
• Mugs.
• Golf Balls.
• Golf Club Covers.

Indonesia’s Arts and Crafts (small size merchandise that will consist of 15% of total merchandise displayed)

• Silver jewelry.
• Masks.
• Other ethnic accessories.

Others

• Books (history books about Avant-Garde and topics related to Indonesia’s commerce, politics, and social sciences).
• Magazines.

Merchandise will be managed by ABC Company; they will find the right supplier, propose a design concept and day-to-day retail activity. Inventory management will be tracked through our computerized cash register, so that each month we are aware of the style, trend and quantity on every item sold in the store for future planning. Re-orders are drop-shipped by ABC Company, or can be rush ordered directly through our channel, if needed.

3.1 Product Description

Product pricing will be adjusted according to the re-positioning effort to enable premium charges to each product. All products are quality checked when they arrive and quality checked before the customer takes them home to ensure they meet the standards of the official store of the Avant-Garde.

Products will not limited to one type per category, for example we will offer 3 types of different kinds of key chains or 5 different design types for caps or t-shirts, because we know that customers want options!

Pricing example

• Official Avant-Garde Caps: Rp. 55,000 – Rp. 150,000.
• Key Chains: Rp. 20,000 – Rp. 55,000.
• Golf Shirts: Rp. 120,000 – Rp. 350,000.
• Golf Balls (3): Rp. 70,000.
• Umbrellas: Rp. 20,000.
• Memo Pads: Rp. 45,000.
• Pen/Stylus/Pencils: Rp. 15,000 – Rp. 35,000.
• Clocks: Rp. 85,000.
• Coffee Mugs: Rp. 65,000 – Rp. 80,000.
• Key Chains: Rp. 45,000 – Rp. 55,000.
• Avant-Garde Theme Checker Game: Rp. 120,000.
• Bags: Rp. 130,000 – Rp. 350,000
• Calculators: Rp. 30,000.

3.2 Competitive Comparison

When we positioned the “Gift Store” as the official “Avant-Garde Shop” for the Avant-Garde Building, we narrowed our competition in a niche portion of the market as more than 80 percent of the inventory will be exclusively marked under Avant-Garde brand.

In general, however, our other product mixes, such as Indonesia’s ethnic arts and crafts, will face competition from other specialty souvenir stores in the area around the “Golden Triangle” and other establishments that carry ethnic merchandise.

3.3 Sales Literature

After much research, we found that the product mix we have compiled in the attached catalog most closely meets the needs of the consumer niche that we are focusing upon. An online catalog will also be offered to supplement the awareness of this new, revamped store of the Avant-Garde Building.

Our sales literature is simple, because we realize that most sales depend on existing foot traffic from visitors, tenants and guests of the Avant-Garde Building, thus the sales generation will depend on the image communication from the management of Avant-Garde. We will produce flyers in-house on an as-needed basis. These will primarily showcase new products and/or to advertise special sales promotions. The flyers will be distributed inside the Avant-Garde Building, especially in those areas which have the most significant traffic, such as cafes and restaurants at Ground Level.

Avant-Garde Shop will use additional targeted advertising and sales program to generate publicity and build a customer base.

• Standing banner or metal post with the new logo and color theme, announcing the opening of the new Avant-Garde Shop.
• 2,000 flyers to be distributed inside the Avant-Garde Building and in establishments surrounding the Golden Triangle.

3.4 Sourcing

Avant-Garde Shop will partner with ABC Company for all merchandise as outlined below:

• With ABC Company, who have the expertise of running the retail and supply chain management, the Avant-Garde Shop under ABC Company Management will place quarterly reorders with qualified manufacturers on all Avant-Garde-themed merchandise.
• For all other products we will work directly with the manufacturer and minimize the selection by purchasing small amounts for store display.
• Seasonal gift orders will be handled personally with ABC Company and with direct communication to ABC Company office.

We will also work to solidify our relationships with manufacturers and suppliers so that we may achieve decreased cost of goods. Our competitors, both direct and indirect, purchase from the same sources and we believe that through marketing programs and strategic alliances we will begin to gain a competitive advantage.

3.5 Technology

Retail establishments have a tendency to have a high number of SKUs because of the level of inventory. It is imperative that an advanced inventory and point of sales program be utilized to maintain stock levels and track sales. The Avant-Garde Shop will utilize database merchandise software for all tracking and accounting purposes as well as inventory management and point of sale transactions that will be summed into one database for handling the online store as well.

Online commerce is becoming an increasingly attractive option due to the the global reach of the medium; this could be an additional re-positioning element to increase the visibility of the Avant-Garde Shop.

3.6 Future Products

Future expansion may allow for a horizontal increase of our product line by offering additional product categories: sport gear and accessories. We won’t rule out the possibility of vertically integrating through our own line business gift products. We will also explore new services such as providing a gift certificates for our customers, or a membership cards for discounted price at affiliated retail establishments.

It is our dream to become more than just another souvenir store at Avant-Garde Building, but also an extended official representative of Avant-Garde to the public.

After the success of launching the official Avant-Garde Shop, we will plan to open another one as “annex store” at another “over-the-counter” exchange establishment. Our effort at ABC Company will not stop within the boundary of Jakarta Metro Area, but will expand to other cities as well, such as similar building themes for the Malang Stock Exchange, and so on.