Strategy and Implementation Summary
University Telephones will promote the store opening. We will advertise in the university daily student newspaper as well as the university area advertising flyer. In the advertisements for the store opening, we will have a 20% off coupon for product purchases over twenty dollars. We will continue this discount for the first month of operation.
5.1 Competitive Edge
The University Telephones’ competitive edge is:
- Location: University Telephones is located on Steward Street, just a half block from campus. The foot traffic on Steward Street is very strong. University Telephones is sandwiched between a popular student espresso shop and the University Bookstore.
- Customer Service: Robert Conway, owner of University Telephones, has been the manager of the University Bookstore’s electronic department for the past four years and is very familiar with his target customer base. He has an excellent reputation for customer service. Most importantly, the store location will improve customer satisfaction when problems with product or service occur. Customers will value the ability to come into the store between classes to resolve any problems that come up.
5.2 Sales Strategy
The sales strategy of University Telephones is simple. The key to customer satisfaction is having the product and services that meet the customer’s needs. A crucial part of that is to also have knowledgeable employees to help customers find what they want quickly.
5.2.1 Sales Forecast
The following is University Telephones’ sales forecast for three years.
|Year 1||Year 2||Year 3|
|Land Line Phones||$35,000||$37,000||$44,000|
|Cell Phone Accessories||$59,000||$63,000||$72,000|
|Cell Service Plans||$164,000||$170,000||$190,000|
|Direct Cost of Sales||Year 1||Year 2||Year 3|
|Land Line Phones||$8,200||$9,000||$1,000|
|Cell Phone Accessories||$15,300||$15,000||$19,000|
|Cell Service Plans||$117,000||$118,000||$121,000|
|Subtotal Direct Cost of Sales||$159,300||$162,000||$166,000|