Currently, the alternative film rental market is not being addressed. This is shown through: 1) Eugene's demographics that typically support these types of films and 2) the success of the same genre first run movie theatre in Eugene. Having recognized this open space, ICF will come into Eugene and capitalize on the demand.
ICF will be marketing the store with advertisements in several local publications whose reader base appreciates this style of movies. Additionally, ICF will be advertising with the Bijou Arts Cinema, a first run movie house of this movie genre.
ICF will be turning sales leads into long term customer relationships through the use of superior attention of the customer. This is a combination of customer service, knowledgeable staff, and company policy that dictates pleasing the customer as the most important goal. These strategies will lead ICF into the Eugene community and establish a steady growth pattern.
ICF's competitive edge is their attention to the customers in Eugene. Their product offering is based on a need of Eugene's that is currently unfulfilled. While this approach only works with small applications, meaning it is not the best for a country wide implementation, it is also costly. Time must be spent doing marketing research to determine where the unmet need is. This strategy in unrealistic for a large corporate chain.
It is ideal for ICF however. Eugene has a large "arts" population that is currently not being addressed in the video rental market. ICF's competitive advantage is creating a store that fills a need specifically in Eugene, in contrast to opening a general store that will have broad, pedestrian appeal.
ICF will meet this need by basing their selection of videos that are in general hard to find in Eugene. ICF recognizes that by doing this they are decreasing the base of possible users. However, at the same time, they are developing loyalty among the smaller user base.
ICF's sales strategy will be based on targeted selection and personalized service.
The first two months will be spent setting up the store and ordering inventory. There will not be any sales activity. During this time period ICF will be interviewing people with the expectation of bringing on board three part time employees for the third month. By the fifth month, sales will be steadily increasing and ICF will have the need for a full time employee. In addition to these employees, Janet will be working full time. ICF expects a fairly linear sales growth pattern month to month.
ICF will have several milestones early on: