Business Plan 1.

0 Executive Summary

The C.U.T. (Capstones Unique Tumblers) is a retail business created by the visions of Mitchell Community College business, marketing, human resources, digital media tech, and accounting capstones. We will accomplish this mission through a team effort based on the cumulative knowledge obtained during our academic careers at Mitchell Community College. Local retailers have the ability to distinguish themselves by the types of products they offer and The C.U.T. is no exception. We have a unique product for which we can compete with. Certainly, there are other drink cups available, however, none that will stand out to our target market with such uniqueness. We are capturing the marketing niche. We can also safely say that there is no threat of new entrants into the market. The C.U.T. will be offering students, faculty, staff, and the community two styles of cold tumblers and one hot travel mug with select logos. We will be located outside the Student Union on the Statesville campus and at the Internet Caf on the Mooresville campus. So come and join us. Sit down and have a drink, and see what your students have become through your teachings and guidance.

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Organization Summary

Vision Statement Our vision is to demonstrate our working knowledge of concepts learned during our academic careers at Mitchell Community College. Mission Statement Our mission is to provide quality service to the students, faculty, staff and community while gaining experience and demonstrating our ability to operate and maintain a small business. Overview The C.U.T. is the creation of Mitchell Community Colleges five capstone departments. The Business Administration Capstone is responsible for overseeing and strategizing the business operations of The C.U.T. This includes upholding the companys mission and vision by offering a product the target market wants.

The Marketing Capstone will coordinate the advertising of the brand name The C.U.T. and our products. Marketing is responsible for identifying our target market and finding exactly what the consumer wants. With these efforts we will provide not only a profitable product, but a product that will create lasting memories. The Human Resource Capstone is responsible for recruiting and selecting employees, having detailed job descriptions, offer training, and implementing company policies that are law abiding and reflect the positive view the company holds. The Accounting Capstone is responsible for establishing, controlling, and interpreting all financial data for The C.U.T. Their duties will include calculating start-up cost, calculating the breakeven point, and managing/interpreting accounts for financial data to ensure your investment shows a profit. Digital Media Technology is responsible for converting our logos and slogans into the correct Vector format for our vendor.

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Product

To find a product Mitchell Community College students wanted, a survey was completed involving a diverse range of students. Tumblers were the favorite. The C.U.T. offers a 16oz double wall tumbler with a slider lid, 16oz double wall coffee tumbler, and 25oz gripper tumbler. All tumblers and travel mugs will be available with a slogan and logo in Mitchell Community Colleges burgundy color on the product. The products will be available with two different slogans; Grasp the Knowledge and Graduate 2014 (see images below). These products were selected using Mountain Island Promos which is owned and operated in Charlotte N.C. Prodoct Line/Slogans

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Market Summary

We have conducted extensive research at Mitchell Community College on both Statesville and Mooresville campuses, and have concluded our target markets will be composed mainly of Collaborative College Technology and Leadership students, graduates, and the excellent faculty and staff of Mitchell Community College. Our marketing survey provided us with the insight from these three markets where we found tumblers are the preferred product. Market Analysis Strengths We have good relations with customers (our fellow students and supportive faculty). Both Statesville and Mooresville store locations have a high traffic location. We have a focused management staff. With Mitchell Community College being well known in the community it will enhance our brands image. Weaknesses We are only open for operations for one week, allowing us only a short time frame to sell our products. Separate campuses can present communication barriers. Our total operations, from start to finish are only four months. As of this moment we dont have any information on the plans of what the Student Government Association will be doing during spring break; however, we are in the process of working with them to help boost sales and reach a broader market. We will be operating under a cash only business. Opportunities We have the ability to show fellow students at MCC what experiences are available as a graduating student of this amazing college. Being the graduating class we will have the support of the students and faculty. Similar products in the community are more expensive than our quality product. Good weather will increase our customer base. Threats The market could be price sensitive. Having an outdoor store location adverse weather could affect the amount of customer traffic. If this issue arises we do have a strategy in place to counter this threat. Competitors who sell a similar product may pose a threat. However, these competitors dont offer any brand connected to Mitchell Community College.

MARKET RESEARCH MALES FEMALES STAFF TOTAL CCTL STUDENTS MALES FEMALES TOTAL GRADUATING CLASS 2014 GRADUATES 2015 GRADUATES OTHER TOTAL TUMBLER VOTES 25OZ TUMBLER 16OZ TUMBLER TOTAL CLASS SCHEDULE(S) RANGE: CAMPUS SLOGANS VOTE COUNT HUMOROUS INSPIRATIONAL GRADUATE SECONDARY PRODUCT VOTES FLASH DRIVES KEY CHAINS CAPS T-SHIRTS

16 54 8 78

3 14 17

22 24 24 70 Male Female Faculty Total 12 35 5 52 4 19 3 26 78 The majority range was in the morning between the 8am and 3:30pm Only 2.9% of the 70 students surveyed had classes in Mooresville. (2) Total in % 38 49% 46 59% 33 42% Total in % 50% 42% 15% 49%

39 33 12 38

Five Forces Model: Rivalry among existing competitors: There is no rivalry and no true competition in this market. Even the Mitchell Community College Book Store supports this once a year effort. Our product is offered on a limited basis, thus being sold as a specialty item. We offer focused differentiation that makes our brand unique in this particular market. Customers possess large amount of bargaining power: In the sense the mark-up will be kept to a minimum, consumers are already getting the best price possible for this product. By adding coupons the customer would then gain substantial bargaining power and added value. Threat of substitute products: This product is unique to its market, and although there are other drinking vessels available, none with this branding, sentiment and artwork.

Threat of Substitute Products

Bargaining Power of Suppliers

Industry Rivalry

Bargaining Power of Buyers

Suppliers have high bargaining power: Because we are not able to operate as an economy of scale, the suppliers have the majority of bargaining power. Our order quantities will not earn us large discounts.

Threat of New Entrants

Threat of new entrants: There is no threat, based on the nature of this short term business and its specific time frame. This company will be the only one offering this product for spring 2014.

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Strategy

Distribution The C.U.T. products will be distributed by Mountain Island Promos located in Charlotte, NC. We preferred to keep the vendor in our area to help stimulate the economy from Charlotte to Statesville, NC. Store Operations The store will be located at the Statesville campus outside of the Student Union Building, VB 207 in the event of inclement weather, and at the Mooresville campus by the Internet Caf. Operating store hours will be during (Date?) from 9am-3pm and 5pm till 8pm. We will also provide a mobile station to help reach customers who rarely visit the student union building. The stores will be operated by two to three staff members and two other staff members who will man the mobile store unit. Inclement Weather Strategy In the event of adverse weather the Statesville campus will have VB 207 with product to offer consumers. Our mobile unit will still be available to reach out to consumers. Promotional Strategy To promote The C.U.T.s product line marketing has implement multiple campaign strategies: Commercial campaign Post/pass out flyers Sending out email notifications Initiate a grapevine throughout Mitchell Community College in order to bring customers in by word of mouth Pricing Strategy The C.U.T. will offer a quality product with lower prices than our competitors We will use inventory from MCC Tees to our advantage to promote the tumblers and travel mugs in order to receive fair market value for the excess inventory The shirts will be liquidated at a discount price, or by selling a combo pack to students The combo pack will include the choice of a tumbler or traveler mug with a t-shirt of the customers choice Exit Strategy We will use the following sales strategies to liquidate the inventory at the end of spring week. To sell all our remaining inventory (if any) we will be able to offer a 15% discount on all tumblers and travel mugs without losing money Combo deals will be available to help liquidate our inventory as well. This can include a combination of tumblers, travel mugs, and t-shirts If necessary The C.U.T.s sales team will extend out into the community to liquidate the remaining inventory
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Management Summary

The C.U.T. is divided into five divisions: Mooresville and Statesville Business Administration Capstone, Marketing Capstone, Human Resources Capstone, Accounting Capstone, and Digital Media Tech. The Mooresville and Statesville Business Administration Capstone classes decided on what product to sell, vendor, location of the store, price, and business strategy. The Marketing Capstone class designed the logo, marketing survey, and the advertisements for the product. The Human Resources Capstone class created job descriptions and policies and procedures for the business. The Accounting Capstone developed a system in order to track revenue, calculate inventory, and close out accounts and final remaining inventory. Our inventory system will be based off a periodic inventory system. The Digital Media Technology Capstone helped the Marketing class with the design of the logo and converting to a Vector file to send to our supplier. Organizational Structure Statesville GM and Assistant GM- Elvis Stump, Kandice Blodgett Mooresville GM and Assistant GM- Holden Cloer, Wendy Hinson Director of Marketing- Kassie Woodall Director of Human Resources- Monica Shuford Head of Accounts- Terry Gooding Product Coordinators- Brian Rudisill, Tracie Williams Statesville Business Administration Staff- Jennifer Ireland, Joseph Greene, Cameron Travis, and Doug Luhn. Mooresville Business Administration Staff- Marlene Clermont, Julie Cha, Garland Turner, Christine Walls, and Andrea Nicholson Marketing Staff- Ashley Wellman, Debra Nesbit, Lleana Santiago Human Resource Staff- Mia Susswell, Theresa Patton, Diane Rhodes, Fashonda Lowery, and Alacey Threatte

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Financial Summary

Financials
There are very few startup cost in regards to The C.U.T. There are no overhead costs as we do not have to pay labor, rent, utilities, etc. The only costs we will incur are the initial purchase of inventory. Planned Inventory Charts

Initial Inventory Purchase Quantity

500 450 400 350 300 250 200 150 100 50 0 16 oz Tumbler, 150 16 oz Mug, 96 Quantity 25 oz Gripper, 192

Cost
$2,500.00 $2,000.00 $954.84 $1,500.00 $1,000.00 $771.10 $500.00 $449.33 $Price 16 oz Mug 16 oz Tumbler 25 oz Gripper

Breakdown of Inventory Costs Initial Inventory Purchase Costs (2 logos) Tumbler/Mug Cost Quantity 16oz Double Wall PP Tumbler (Mug) $ 3.19 96 Setup cost Shipping Total San Clemente Gripper, 25oz $ 4.09 192 Setup cost Shipping Total Double Wall Acrylic Tumbler w/ Straw $ 3.84 150 Setup cost Shipping Total Grand Total

Price $ 306.24 $ 56.25 $ 86.84 $ $ $ $ $ $ 785.28 50.00 119.56

Total

$ 449.33

$ 954.84 576.00 49.00 46.10 $ 771.10 $2,175.27

Break-Even Analysis *assumption in break-even analysis is the 25 oz. tumblers will make up 57% of sales and the 16oz Tumblers will make up 23% and the 16oz Mug will make up the remaining 20%. Break Even Analysis Estimated % of Total Total Tumbler/Mug Sales Price 16oz Double Wall PP Tumbler (Mug) 20% $ 435.05 San Clemente Gripper, 25oz 57% $ 1,239.90 Double Wall Acrylic Tumbler w/ Straw 23% $ 500.31 Total 100% $ 2,175.27 Gross Margin Gross Margin 16oz Mug 25oz Gripper Actual Price % Actual Price % $ 6.50 100.0% $ 8.00 100.0% $ 4.68 72.0% $ 4.97 62.2% $ 1.82 28.0% $ 3.03 37.8% # Needed to Sell 67 155 77 299

Selling Price $ 6.50 $ 8.00 $ 6.50

Sales Price Cost Gross margin

16oz Tumbler Actual Price % $ 6.50 100.0% $ 5.14 79.1% $ 1.36 20.9%

Projected Sales Revenue Projected Sales Revenue * Tumbler Sales Price 16oz Double Wall PP Tumbler (Mug) $ 6.50 San Clemente Gripper, 25oz $ 8.00 Double Wall Acrylic Tumbler w/ Straw $ 6.50 Total *projections based on selling through entire inventory Projected Gross Profit Projected Gross Profit* Sales Revenue $ 3,135.00 Cost of Goods Sold $ (2,175.27) Gross Profit $ 959.73 *projections based on selling through entire inventory Quantity 96 192 150 Sales Revenue $ 624.00 $ 1,536.00 $ 975.00 $ 3,135.00

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Conclusion

Over these past few months there has been many lessons learned for all of us graduating this spring. Being placed in real life situations has not only tested what we have learned, but has tested the changing events that can take place in a business setting. We all learned how communication barriers can affect a business, how time constraints can become a game changer, and how working with others is a must to achieve a common goal. Yes, these may be considered barriers, but above all we learned how to overcome all these barriers as a single unit in pursuit to achieve a common goal. In the future our creation could become a franchise. The C.U.T. can be anything the future Capstone classes want it to be. The T can be used for multiple products other than tumblers. Products such as; tumblers, t-shirts, trinkets, or even thoughts. The T could just mean trade to relieve the issue of any product constraints. Can you just imagine the possibilities? We are asking for an investment of $3,000 to help make our vision a reality. You should invest into our organization because we believe in our product and the possibilities we will create for future students who are in pursuit of their dreams. Together we can uphold the Mitchell Community College high standards, and one day take the profits and build assets that allow future capstones to become self-efficient. Its much easier to sell a product that you believe in, and this idea is embedded into our culture at The C.U.T. Our organizations view is that our product will create lasting memories for students and faculty at Mitchell Community College. When students gather to design projects, create new ideas, or just simply talk and meet new friends its often over a coffee or a cold drink. With our vision to demonstrate our working knowledge of concepts we learned during our academic career at Mitchell Community College, The C.U.T. will be there to supply the tumbler that creates those lasting memories.

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