Burly's goal is to provide specialty apparel, shoes, boards (skateboards, snow boards, etc.), hardware and miscellaneous specialty items (hats, wallets, bandanas, etc.) to the under-served market of the Suburb/Salem community.The major competitive retailers have left a hole in this market. There are two to four competitors in the general area. After surveying many potential customers, we have found that the general trend is people feel that they have no alternative but to go to one of these stores. Many indicate that they would welcome an alternative in their locality. This particular population of customers is growing.
Our intention is to gain 80% of this market share by focusing on our niche positioning, neighborhood location, popular brands, and special promotions.
Burly offers an enhanced shopping experience, while being competitively priced and keeping up with the latest trends of the world wide market. Our stellar customer service separates Burly from the rest.
Our marketing strategy will focus heavily on sales promotion, niche positioning in the market and customer service with loyalty and retention in sales.
Initial marketing will begin with flyers and leaflets in the skate park for two months before we open, to alert our potential customers to our new store. Our Grand Opening, in May, will include discount prices, and we will give away discount cards to the first 50 customers that day.
Future marketing programs include radio spots, ads in the local high school newspaper, and leafletting around other high schools and skate parks in the Salem suburbs.
The following table and chart give a highlight of forecasted sales. We expect sales to start off slowly but increase extensively during the summer skateboard season. We also expect to see increased sales during the Christmas holiday shopping season and the winter snow boarding season. Burly has planned for a growth rate of 15% annually. As we build name recognition and status in the community, we expect to gain a larger percentage of the market share and increase our customer base, and consequently see an increase in revenue.
Based on research into other skateboard and snow board retailers, we expect COGS at 45% of retail prices for all categories.
The accompanying milestone chart highlights our plan with specific dates. This schedule reflects our strong committment to organization and detail.