Strategy and Implementation Summary
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.
5.1 Competitive Edge
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.
5.2 Sales Strategy
ICF's sales strategy will be based on targeted selection and personalized service.
- Selection: ICF's selection will be based on a few genres of films that are currently unavailable (for all intent and purposes) in Eugene. Having a selection of films that people want will be instrumental in turning leads into customers
- Personalized service: Typically at a video rental store you expect reasonably friendly service, although not necessarily informative service. At ICF, the employees are people that have an interest in these types of movies, that is why in part we have chosen them as employees. They also receive free rental privileges to encourage them to be more familiar with the rentals. In addition to having helpful and knowledgeable employees, ICF will have a very customer oriented service approach. If the customer is interested in a movie that falls within a certain genre of film that ICF carries, they will order the film for the customer. When was a normal video store willing to do this? It is the attention to details like this that will give the customer the impression that the store was opened for them personally, and this is what will turn a prospective lead into a long term customer who is vocal with his/ her friends about the services they like.
5.2.1 Sales Forecast
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:
- Business plan completion. This will be done as a roadmap for the organization. While we do not need a business plan to raise capital, it will be an indispensable tool for the ongoing performance and improvement of the company.
- Set up the store.
- Revenues of $50,000.
- Achieve 55% rental usage per day.