Beruflich Dokumente
Kultur Dokumente
RETAIL MARKETING
(OPENING A NEW RETAIL STORE)
BA (HONS) BUSINESS STUDIES
Table of Contents
1.0 Introduction................................................................................................................................2
2.0 Marketing Strategy....................................................................................................................2
2.1 Target Market......................................................................................................................2
2.2 Positioning Strategy............................................................................................................3
2.3 The Differentiators..............................................................................................................3
3.0 Business Planning......................................................................................................................3
3.1 Startup Costs and Requirements.........................................................................................3
3.2 Business Operations...........................................................................................................4
3.3 Product Innovation.............................................................................................................4
3.4 Lead Generation Plan.........................................................................................................5
3.5 Customer Services..............................................................................................................6
3.6 Brand Elements...................................................................................................................6
3.7 Financial Plan.....................................................................................................................7
4.0 Environmental Analyses............................................................................................................9
4.1 PEST Analysis....................................................................................................................9
4.2 SWOT Analysis..................................................................................................................9
5.0 Industry Analysis.....................................................................................................................10
5.1 New Market Entrants........................................................................................................10
5.2 Existing Market Rivalry....................................................................................................11
5.3 Threat of Substitute Products............................................................................................11
5.4 Powers of Suppliers and Buyers to Bargain.....................................................................12
6.0 Conclusion...............................................................................................................................12
References......................................................................................................................................13
Appendices....................................................................................................................................14
Appendix A.............................................................................................................................14
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1.0 Introduction
Slough Fashion District is looking to impact the buying behavior of the residents of Slough by
the products that are consciously selected to satisfy the apparel needs of the Asian population of
the region. The store is planning to accomplish its aims through effective viral marketing,
fortified market visibility, and enhanced sale strategies. The business will focus on the value
creation for the target customers through quality products and services provided at the store.
They key goals of the business of Slough Fashion District would be:
o Establishing long-term relationships with the customers, investors and the other
stakeholders of Slough Fashion District
o Growing the business sales to nearly 300,000 by the end of third year of operations
o Increasing the customer satisfaction and trust on the store by providing products and
services required to them
o Attracting more customers to the store by increasing the referrals
o Sponsoring at least one major event in the region targeting the resident students
o Establishing a web store by the end of fourth year of business operations offering value
services for the customers
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14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
Expenses
Assets
Investment
Loan
Figure 1: Startup
services which are unique and required (Pride and Ferrell, 2008). The category wise product and
services which are planned to be the most innovative point for Slough Fashion District are as
follows:
Buy them a gift: through this service, the customers would be provided a facility of delivering
their shopping in their desired packing to their loved ones as a gift and this service would be
initially offered for the Slough region only and gradually expanded to other regions of the
country.
The bags used for packing of the different products would be environment friendly and
recyclable to further emphasize on the cause Slough Fashion District will seek to serve.
The suspected customers of the store would be provided with the information of the store
offerings and the local products purchase significance in the present time to make them the
prospective customers of the store through broachers, and advertisements on the local media.
For the loyal customers, the Slough Fashion District would be offering many different schemes
for different situations. Loyalty cards would be one of them which would be offered for the
customers who opt to sign for membership giving them a discount of 10 (Silver Membership), 15
(Gold Membership) and 20 (Diamond Membership) percent depending on the membership type
they select. Further, to drive the word of mouth, customers bringing in the guest customers
would be given 10% discount.
A small counter would be provided near exit where product under the price range of $25 would
be displayed wrapped and ready to be gifted to persuade the impulse buying of the customers as
at this point, attractive cheap range small products like apparel accessories would be appreciated
by the customers.
different from other retail stores. Flyers displaying the new clothing items will be available at
store. Referrals from the existing customers who would be persuaded to bring new customers by
offering them discounts on their purchases
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COLOR THEME: Corresponding to the colors of the environment, greens and blues will make
the most part of the store interior as we want to be a retail outlet serving and saving the
environment in its particular domain. This color theme and the logo as well would be applied on
all the advertising material of the store including the visiting card, price display cards, posters,
outdoor signs etc.
PRODUCTS: T Shirts, Sweat Shirts, Jackets, Uppers, Zippers, Trousers, Scarves, Caps, Gloves,
Pants, etc.
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
Year 1
Year 2
Year3
Year 1
Year 2
Year3
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WEAKNESSES: Lack of identity at the first step would be a certain weakness of the store which
would be tackled by effective marketing strategies including advertisements on the radio,
newspapers and television. Further, till the time store achieves its brand reputation, a weak brand
image needs to be handled efficiently by Slough Fashion District.
OPPORTUNITIES: The Asian community which is the key target population of the Slough
Fashion district and its proportion in the region is a potential opportunity for the store and the
store will be filling the unsatisfied needs of the customers. No huge cloth retail store is already
operating in the region and this would be an opportunity for the store.
THREATS: The new market competition may arise at any time in the market presenting as a
threat for the store and the store need to generate policies and strategies to effectively handle the
competition.
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colours and material in order to be in the customer product preference list. The wide product
range available at the store will tackle this situation where different styles would be made
available in accordance to the latest fashion trends.
6.0 Conclusion
This short report presented the marketing strategy and planning of store to be opened in Slough
area to fulfil the apparel needs of Asian community. The store will compete with its rivals on the
basis of product innovation and differentiation, customer services, and unique business
operations. The environmental analysis of clothing industry reveals no major threat/issues for the
store apart from identity unawareness. In addition, industry analysis reveals severe rivalry and
threat of new entrants for Slough Fashion District.
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References
Baker, M.J. (2003). The Marketing Book. 5th Edition, Taylor & Francis
Drummond, G., Ensor, J. and Ashford, R. (2007). Strategic marketing: planning and control. 3rd
edition, Routledge
Johnson, G., Langley, A. and Melin, L. (2007). Strategy as practice: research directions and
resources. Cambridge University Press
Ottman, J. (2011). The New Rules of Green Marketing: Strategies, Tools, and Inspiration for
Sustainable Branding. Berrett-Koehler Publishers.
ONS (2011) Census: Ethnic group, local authorities in England and Wales. [online]. Available
from: http://www.ons.gov.uk/ons/guide-method/census/2011/index.html [Accessed: 07 March
2013]
Perrey, J. and Spillecke, D. (2012). Retail Marketing and Branding: A Definitive Guide to
Maximizing ROI. 2nd edition, John Wiley & Sons
Pride, W.M. and Ferrell, O.C. (2008). Foundations of marketing. Cengage Learning
Seybold, P. B. (2001). Get Inside the Lives of Your Customers. Harvard Business Review, 79(5),
pp. 80-89.
Sullivan, M. and Adcock, D. (2002). Retail marketing. Cengage Learning EMEA
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Appendices
Appendix A
Start-up Funding
Start-up Expenses to Fund
6,309
9,637
15,946
Assets
Non-cash Assets from Start-up
9,380
257
257
Total Assets
9,895
Long-term Liabilities
11,189
1,340
Total Liabilities
12,529
Capital
Planned Investment
Owners Investment - Cash
3,417
Other
3,417
-6,309
Total Capital
-2,892
9,637
Total Funding
15,946
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Start-up Requirements
Start-up Expenses
Rent
1,076
268
1,055
235
Business Insurance
402
677
Store Fixtures/Decorations
1,005
Computer/Cash Register
637
268
84
Business/Office Supplies
268
Other
335
6,309
Start-up Assets
Cash Required
257
Start-up Inventory
9,380
Long-term Assets
Total Assets
9,637
Total Requirements
15,946
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Year 2
Year 3
190,414
247,538
321,794
95,207
123,769
160,897
95,207
123,769
160,897
95,207
123,769
160,897
50%
50%
50%
Payroll
29,557
32,513
35,764
10,350
10,400
10,609
1,206
1,206
1,230
Utilities
3,015
3,216
3,280
Payroll Taxes
2,956
3,252
3,576
Sales
Direct Cost of Sales
Other Production Expenses
Total Cost of Sales
Gross Margin
Gross Margin %
Expenses
Depreciation
Other
Total Operating Expenses
47,084
50,587
54,460
48,123
73,183
106,438
EBITDA
48,123
73,183
106,438
999
787
566
14,137
21,719
31,761
Net Profit
32,987
50,677
74,110
Net Profit/Sales
17.32%
20.47%
23.03%
Interest Expense
Taxes Incurred
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