Introduction
The retail company I plan to start will be an upscale women clothing boutique. My company will focus on the sale of designer bags and clothing for female motorcyclists and thus given an opportunity for women to look stylish. The company will offer exclusive personal services to fashionable women. Such services include style assessment that will ensure customers are well dressed. The retail company is a sole proprietorship. Importantly, the company will start by selling fashionable designer bags and eventually grow to be a brand for motorcycle clothing which is sensitive to women’s fashion.
I will be the CEO of the company, and for a start, I will employ three other CEO among other employees that will total to 20. The company will focus on women’s fashion and in particular women motorcyclists. I will contribute $5000 to the industry, and $20000 will come from my family. To ensure the successful running of the retail company, then I will obtain licenses and permits form the local government. Most of our handbags will be created from the company while some will be obtained from selected highly competent suppliers. Finally, the marketing strategies; in bound, integrated marketing, and incorporation of a wide variety of advertisement tool will make the retail company obtain a presence in the market.
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Description of the Business
The market today offers women a variety of clothing to choose from. Women are more conscious of their dressing. One group that would also appreciate care for their fashion includes women motorcyclists. Thus, there is a high probability of continuous growth as fewer companies are focusing on the women motorcyclists. The is a high number of female motorcyclists today that show desire in riding bikes in high fashion that suites each event; dates, parties, and work. Thus, there is a market gap that needs to cater for such women.
The company will give special attention to color and styles that fit the different kinds of women. The products include bags, helmets, boots, apparels, and inspired accessories like scarves. The company is aimed at creating pieces of bags that meet the expectations for the urban motorcyclist and that it will allow them to use the bags even when they are not riding. Thus, the bags and some clothes will serve two purposes at a go. All products, whether created or outsourced with have clean aesthetics design that combines robustness and functionality. Some of the products will be made from leather while most will use high-tech artificial fabrics that can last for decades.
Marketing Strategy
One important factor that will ensure the success of the company is strategic marketing. Importantly, marketing goes beyond the pricing factor. Additional factors that will affect the success of the retail company include an established relationship with media, having a unique selling proposition, finding the right customers, and being competitive. For this reason, I would to identify a target market, find out their expectations, as well as the prices they are will to pay for their services. With this information, I will be able to provide services that ensure ultimate customer satisfaction and ensure profitability. Importantly, the average household income for motorcycle owners is $85,300, value higher than the average income of the average household in the US. Therefore, most of our potential customers are highly likely to afford high-end bags, apparel, and accessories among others (Gaille, 2015). Also, older motorcyclists are less likely to focus on other brands of bikes; instead, they invest much of their money on accessories. The inbound marketing strategy will be used for this business. An inbound strategy is an approach with a list of tactics that are focused on attracting prospects to the company rather than going to find products elsewhere (Royo-Vela & Hünermund, 2016). The inbound marketing strategy will thus require the company to build a brand, involve potential customers through social media platforms by asking and answering questions, and creation of a blog to market the company further.
The retail company will develop an integrated marketing plan that incorporates the 4ps: price, product, place, and promotion. The use of 4Ps requires a strategy that ensures the development of a profitable relationship with the customers. As such, there will be a need to integrate the company’s goals and objective to the strategic marketing plan and the services provided to the customers. Importantly, I will use the marketing expansion model to analyze the risks of the marketing strategy in penetration, service and market development, and diversification.
The company’s target group; women motorcyclists, will be divided into segments based on geographical locations, demographics, and ability to pay. The division into segments is essential for identifying the marketing strategies that are most appropriate the specific groups (Ashmore & Pritz). Advertisement tools that will complete the strategy and the marketing mix include the intense use internet and social media platforms as well as radio, television, and newspapers. Additionally, word of mouth endorsement will be used for satisfied clients.
It is undeniable that there are fewer companies selling women’s motorcycle gear; however, it is important to remember that the fewer number reflects the few numbers of women cyclists. Thus, the company will face competition from the few available companies that sale motorcyclist gear for women. These companies include Alpinestars, Klim, Dainese, Revit, and Licon. However, the company will differentiate itself from other companies by focusing on women stylish, quality accessories, and clothing options.
Management Plan
The company is a sole proprietor, and thus, I will be the principal owner. The retail company will operate within the clothing and clothing accessories stores classified under NAICS code 448120. Importantly, all apparel including the jackets and other gear will be tested, and CE certified to ensure that clients will be protected from abrasion.
I will be the overall manager; however, I will also need help from other overhead managers. My interests in motorcycling, riding, and fashion have led me to acquire much knowledge about the industry. Additionally, I worked as an intern at Alpinestar Company where I gained experience in retailing and sale of motorcycle gear. The other executive managers will thus include chief marketing director, financial officer, and operating officer. Importantly, I will hire well-informed executives with good experience in the fashion and who will therefore help in making the right decisions concerning the company. I will also need two mid-managers who will oversee customer needs and ensure all tools necessary for smooth running of the organization are present. The company’s functioning units include administration, customer care, and marketing.
For a start, I will only have one location; however, I will expand and have more branches as the company grows. The location will house the CEO, the three executives, the two mid-managers, 15 sales agents, and 15 other employers whose roles include travel agents. Importantly, my executives and managers will also participate in the hand on work with our subordinates considering this is a startup.
Finances Plan
The company will require a minimum of $25000 to launch and successfully run for the first three years. Apparently, I have $7000 in my savings, and my family offers $20000 for the startup. The funds will be sufficient to start a clothing company focused on women motorcyclists. The funds will be used to obtain licenses, acquire bags from suppliers, purchase of resources for bags that will be made from the company, and marketing of the company to potential customers. Additional costs will include rent for the office space, furniture, stationery, internet services, and salaries and wages, among other miscellaneous.
For the financial plan, there will be assumptions that the current interest rates, long-term interest rates, and tax rates are constant for the next three years. The subtotal cash flows from the first three years will be $45000, $60000, and $80000 respectively. The value spent on the operation for the three consecutive years will be approximately $4500, $6500, and $8000. Monthly breakeven is about $3000. The projected profits for the first year are $4000 and $1,5000 and $2,000 for the next two years respectively.
References
Gaille, B., (2015). 32 Compelling Motorcycle Demographics. Brandogaille.
Royo-Vela, M., & Hünermund, U. (2016). Effects of inbound marketing communications on HEIs’ brand equity: the mediating role of the student’s decision-making process. An exploratory research. Journal of Marketing for Higher Education , 26 (2), 143-167.
