One, Two, Step!
Strategy and Implementation Summary
One, Two, Step! will use a strategy of providing a service to all women consumers with regular shoes and “plus size” shoes. We will offer a product that most women consumers will require. We will create an atmosphere that is appealing to the truly fashion forward consumer.
- Every female resident in Houston,TX is a potential customer.
- Promoting on the Web, by word of mouth and promotional postcards will give One, Two, Step! the opportunity to draw customers from outside Houston, TX.
- One, Two, Step! will aggressively pursue all contacts through networking.
One, Two, Step! will differ from other retail shoe stores because we will always be less expensive than the competition, but we will still maintain the high quality of our shoes.
Also, we will offer a sales promotion on a monthly basis, such as:
- buy one, get one half price
- buy one, get one free
- half off on shoes from the previous season
- “One, Two, Step ” dollars (for every $50 dollar purchase, the consumer receives an additional 20% off of their next purchase)
Our marketing strategy will not exceed 5% of our annual gross sales. Marketing will be via:
- 1, 2 Step! website (to be launched in the first year of business)- free shipping if ordered by 2pm central.
- Advertisement postcards
- Business Cards
- Word of mouth
Our key to sales strategy at One, Two, Step! will be a great buying experience, every time. Once a customer comes in the door, they will be greeted and assisted as much or as little as they wish. Some customers are uncomfortable with lots of personal attention; others expect it. Chloe’s experience as a retailer has taught her how to read the subtle signs that tell her what a customer is seeking when they enter. All customers will be offered tea or coffee while they shop, and we will have comfortable chairs for friends to sit in while waiting.
Our sales goal is to generate repeat business and strong word-of-mouth advertising based on this great buying experience. Word of mouth in new women’s apparel and accessory stores tends to spread to family, friends, co-workers, church members and people we depend on to provide us a service (hair stylist, nail salon,doctors, etc.), in and out of state.
We also plan to have software to collect customer information such as:
- Names, addresses, email addresses and phone numbers
- What type of shoes the customers prefer
One, Two, Step! will also accept returns/exchanges of unworn shoes with receipt within 30 days of their purchase to build a trust with all of our customers.
I expect a growth rate of 3% annually on shoe sales. I am projecting my sales to be at this level due to the low wholesale prices and the demand for women’s shoes. If you notice in my forecast table for the Christmas holidays and summer time, sales will increase. College kids will be out of school from May to August. Research shows that most consumers tend to spend the most money during the holidays for Christmas gifts and they can’t miss out on all of the great holiday sales.
In January, sales will most likely decrease because the average consumer has spent a lot of money for the holidays. January is the month to play “catch-up” on paying their credit card bills and restoring their bank accounts back to normal.
Direct costs for shoe and accessory sales are set at 70% for the first three years. This is much higher than normal for the industry, because of our pricing and specials – we can undersell the competition not through volume, but through the value-added of an exclusive location, personal service, and the owner’s independent income, which does not require a paid salary.
|Year 1||Year 2||Year 3||Year 4||Year 5|
|Direct Cost of Sales||Year 1||Year 2||Year 3||Year 4||Year 5|
|Boxes and bags||$1,079||$1,111||$1,144||$1,179||$1,214|
|Shipping costs for website sales||$2,157||$2,222||$2,289||$2,357||$2,428|
|Subtotal Direct Cost of Sales||$67,951||$69,989||$72,089||$68,405||$64,468|