Example Marketing Plan

The following market plan is an actual plan written by a woman-owned business. Names of some
businesses and cities have been fictionalized at the owner's request.
MISSION STATEMENT
Technically, the mission statement is in the opening of the entire Business Plan, of which the
Marketing Plan is a part. It's included here for the reader's information...
North American Button and Closures intends to supply Nevada with the most visually interesting
buttons available today. They will delight their users and provide a springboard for creative
activity. North American Button and Closures believes artistic expression enhances life. It
appreciates the skill of human hands and the sensitivity of human hearts. It regards buttons as
small works of art in which we are able to see ourselves.
-------------------------------------------------------------------------------North American Button and Closures' Marketing Plan
A. HISTORY & DESCRIPTION
North American Button and Closures is a specialty retail store offering a collection of antique,
contemporary and hand-crafted buttons from around the world. These buttons are distinguished
from those available in the marketplace by the quality of materials, workmanship and design.
A very simple need which North American Button and Closures addresses is the need to have
fun! Buttons are wonderfully expressive objects that add unexpected vitality to clothing. Apparel
manufacturers are witnessing a competitive advantage to using fun and distinctive buttons. North
American Button and Closures makes such buttons available to home sewers and others involved
in the needle arts. Providers of interior design services are also served by North American Button
and Closures in their efforts to create custom bedding, slip covers and window treatments.
With growth, North American Button and Closures will also establish a working studio for the
surface design of fabric. Workshops for the painting, dyeing and printing of fabric will be
offered throughout the year. These will be conducted by the sole proprietor of North American
Button and Closures and by guest artists with particular expertise.
North American Button and Closures opened for business on January 25, 1999, with an
inventory valued at $2,950. In the first eight months of operation another $2,240 of inventory
was added. Sales totaled $3,128 for the same period with the average monthly total being $391.
Sales have increased steadily over this eight month period.
Organizations and businesses served include:
Machine Knitters Guild of Nevada
Nevada Embroiderers Guild

Sew for Profit of Nevada

The National Button Society
Home Fabrics
WestCoast Designers
Funding for the company has come from the personal income of the sole proprietor and from the
income generated by sales. Additional funding is sought for the expansion of inventory and for
advertising.
B. PRODUCT OR SERVICE DESCRIPTION
North American Button and Closures offers hand-crafted and manufactured apparel buttons in a
range of materials and finishes. A high percentage of these buttons are made of natural materials
such as horn, bone, wood, glass and clay. These buttons are hand-crafted by artisans throughout
the world and are of original design. Manufactured metal and synthetic buttons are also offered,
together with a collection of vintage and antique buttons.
All garments benefit from buttons that contribute to their character. North American Button and
Closures offers an opportunity to reinvent ready-made clothing and engages people in a creative
process. Buttons are a form of ornament. They allow people to express their personal style in a
novel manner.
"Makers" of garments who have invested a great deal of time and energy are unwilling to use
buttons with nothing to offer but an attractive price. These people are looking for the perfect
button for their creation. North American Button and Closures helps people accomplish this and
brings the entire process to a satisfying conclusion.
The charm of buttons is increasingly evidenced in the home, where they are used as a design
element on pillows, bedding and window treatments.
Buttons are often purchased not for reasons of utility, but simply for their beauty. Collections of
antique buttons represent a significant investment and historically rise in value.
C. LOCATION DESCRIPTION
North American Button and Closures is located in the Fargas Building, 663 East SW, Suite 222,
Redwood, Nevada. This building, a historic landmark from the town's lumbering days, houses
two design businesses and a dozen creative studios for book illustration, photography, painting
and surface design, and furniture making. Most notable are the Artists' Studio, a custom frame
and gift gallery, and LaFontaine Gallery, a premier fine art gallery. These buildings have
supported the artistic community in the area for over a dozen years by offering architecturally
interesting spaces and low rent. They are a signpost of creative thought and activity in the
community and attract customers who are interested in artistic expression. This area is also about
to receive renewed attention as renovations begin on the city's former water purification plant,
soon to become a nationally franchised restaurant.

North American Button and Closures is currently located in a second floor suite in the Fargas
Building. With growth, it would like to relocate to the building's south end. The benefits of this
location are first floor access, room for expansion, higher visibility from large arched windows,
more convenient parking, closer proximity to area retailers and reasonable cost.
D. MARKET ANALYSIS
D1. The Industry
According to the American Home Sewing and Craft Association, the home sewing industry
contributes $3.5 billion in retail sales to the national economy. In the five years from 1987-1992,
first-time buyers of sewing machines increased from 30 percent to 50 percent. In the last five
years (1991-1996), membership in the American Sewing Guild has doubled in size with a 55
percent increase in the number of local chapters. Thirty million people in this country are serious
sewing hobbyists.
The availability of the serger may account for these increases. This machine seams, overcasts
and trims all in one motion, cutting sewing time in half. Also, today's sewing is technologically
advanced, eliminating the need to thread needles and trim excess thread. Computer memories
have also enhanced the creative potential of the sewing machine.
Sewing is one of several creative industries served by North American Button and Closures As
this country reassesses its priorities, home oriented leisure activities enjoy increased levels of
interest. Gallop Organization's 1990 report on leisure trends indicated that sewing/knitting ranks
fourth in activities pursued by the general public.
Throughout Nevada, there are guild chapters for sewing, weaving, knitting (machine and hand),
embroidery and quilting. Nevada also hosts a chapter of the National Button Society, an
association of button collectors.
D2. The Target Market
The home sewer's profile, as reported by the American Home Sewing and Craft Association,
looks like:
75 percent female
25 to 54 years of age
college educated
household income of $35,000 and up
artistic, values originality
sewers of varying ability
This profile is supported by direct observation of North American Button and Closures'
customers.

People who pursue the creative industries value objects made by hand and purchase them for
themselves, their friends and their families. They are deeply involved in home-based leisure
activities such as reading, gardening and exploring the culinary arts.
Within the Reno-Carsonville-Schuyler DMA, 23 percent of households sew and 20 percent
practice a form of needlework. This is slightly above the national average and compares
favorably to the City of Reno, which supports Buttons Galore, a similar enterprise with an annual
trade of $500,000.
A larger percentage of people from the Reno-Carsonville-Schuyler DMA attend cultural events
and patronize fine art and antique galleries than from Reno. The median income for this area is
alsoslightly higher than that of Reno.
North American Button and Closures also serves design businesses that focus on residential
interiors. Buttons are used increasingly in the home as an element of interest and design.
D3. The Competition
Direct competitors exist in three nearby cities. They are The Threadminder, a supplier of
designer knitting and weaving yarns in Altamount; The Fabric Alley, a high-end fabric shop
located in Emery; and two button shops in Fairhills - Twelve Buttons and Renewal Buttons. The
strength of these competitors lies in the length of time they have been in business. Awareness of
their product is well established.
The Threadminder offers a limited selection of unusual buttons purchased from the same
suppliers as North American Button and Closures for the same price. They offer one-stop
shopping for the knitting and weaving community, but buttons are not their focus. Unless
shoppers were looking for yarn, they would not know that buttons were available at the
Threadbender. North American Button and Closures will compete by focusing on buttons and by
offering a broader and more exciting selection.
The Threadminder develops their market by offering classes in knitting and weaving.
Participants who love fiber and the textile arts will be open to exploring other avenues of
expression. North American Button and Closures will offer instruction in those areas.
North American Button and Closures will also compete on the basis of location. It is centrally
located with easy access from all parts of the city.
The Fabric Alley in Emery, appeals to serious sewers who are given to spending considerable
sums on fine fabric. They offer a very broad selection of buttons in the same price range as North
American Button and Closures Sewers can locate buttons and fabric in one location. However,
access to the buttons is difficult. They are poorly displayed and shoppers must be very
determined to locate buttons they find attractive. Once spotted, the clerk must retrieve the
buttons from stock before the customer can fully assess them. This is both frustrating and time
consuming.

Buttons are displayed prominently at North American Button and Closures in a manner
consistent with their quality and character. Again, North American Button and Closures will
compete by focusing on buttons. The company will also compete on the basis of location. Those
whose needs are met by the local fabric stores and who may be unwilling or unable to travel
across the state will depend on North American Button and Closures for distinctive buttons.
Twelve Buttons and Renewal Buttons offer a product impressive in its range of quality, price and
character. They are both centrally located in the downtown area. They are the model upon which
North American Button and Closures patterns itself.
North American Button and Closures will entice fans away from the Fairhills shops by diligently
procuring buttons of high originality. Independent buttonsmiths will be showcased whenever
possible. North American Button and Closures will also maintain a large collection of vintage
and antique buttons. Relationships with the local interior design trade are also vital to success.
Indirect competition comes from the local chain stores: Northeast Fabrics, Wisconsin Fabrics,
Joan's Fabrics and Fieger's Fabrics. North American Button and Closures offers buttons which
cannot be found in these stores and which are priced generally higher. North American Button
and Closures will attract customers who may be willing to spend more on buttons than on fabric
to achieve a higher level of style and expression.
E. PROMOTIONAL OBJECTIVES AND STRATEGIES
One of the greatest challenges facing North American Button and Closures in its first year of
operation is lack of community awareness. At this time, the customer base is 90 people. The
company's goal is to double this number over the months of June through October for an overall
goal of 180 customers.
Strategies for achieving this goal include:
Establishing an auxiliary sales display at the local farmer's market on Saturdays throughout the
summer. This can be done at a cost of $210.

Distributing business cards and reprints of the "Grandstand" article about North American
Button and Closures which appeared in Lifelike Magazine in January of 2000. Distribution
points will be the farmer's market, the Arts Alive Gallery Hop, the Underground Studio, and area
dry cleaners.

Mounting additional signage to the exterior of the Fargas Building by May 1, 2000, at a cost of
$120.

Publishing a quarterly newsletter to existing customers and selected businesses. The newsletter

will solicit referrals, advertise additions to inventory and notify readers of current sales
promotions.

Establishing quarterly sales promotions in May, August, November and February.

The May sales promotion will be in honor of Mother's Day. Customers will be treated to an
afternoon tea; discounted gift certificates for mothers will be offered.
During August, Collage will celebrate its anniversary. A fashion show/competition or other
activity will be planned.
November will focus on year-end festivities.
February will highlight Valentine's Day.
Advertising in the newsletters of the Westward Weavers, the Nevada Quilter's Guild and the
Greater Redwood Embroiderers Guild. Costs range in the area of $10 per issue.
Continuing to advertise in the Greater Redwood Yellow Pages at a cost of $12.25 per month.
Participating in the fundraising activities of public radio, such as the RWRU Auction, by making
a donation in the form of a gift certificate. (Retail value of $30; actual cost $15)
Supplying area interior designers with button samples mounted on fabric for them to use with
their clients.
Another goal which North American Button and Closures needs to address is that of building
inventory. Summer months will allow a greater portion of the company's resources to be directed
toward augmenting inventory.
North American Button and Closures will advertise in the area weeklies, such as Retreat, as
wanting to buy old buttons.
North American Button and Closures will solicit handmade buttons by advertising in the
"Opportunities" section of The Art Calendar as a consignor.

F. PRICING POLICY
Three categories of buttons are purchased by North American Button and Closures for resale.
They are hand-crafted buttons, manufactured buttons and vintage buttons. The standard industry
mark-up is 100 percent.
The average retail price of hand-crafted and vintage buttons is $4.25. Manufactured buttons
range in price from $1.45 to $2.00, depending on what material is used. Buttons of natural
materials are more expensive.
In the eight months North American Button and Closures has been in business, the best selling
button has been a natural corozzo nut button that sells for $1.20.
G. TERMS OF SALE
North American Button and Closures currently accepts cash and personal checks in the amount
of the purchase. With growth, the company will establish credit card acceptance.

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