1The mission statement for Kernel Collection is to create memorable and compelling shopping experiences for customers by offering the best selection of shoes that bring a mix of innovation, comfort, and fun together with quality, service, and value, through consignment.
Executive Summary
In the recent past, there has been a rise in demand for ideas to give people opportunities to express themselves in various ways, particularly through trends in fashion. Consequently, entrepreneurial endeavors have been invested in fashion, with luxury boutiques and designer cloth lines emerging as businesses. Kernel Collection will be based in Seattle, WA, and will specialize in a consignment of sneakers of all makes. The company will seek to leverage strengths such as online presence, financial backing, and affiliate opportunities to take advantage of opportunities and to overcome threats by turning weaknesses into opportunities. Its SWOT matrix will be analyzed to develop goals and objectives for the company.
Delegate your assignment to our experts and they will do the rest.
SWOT Analysis
Strengths
Low start-up and operation costs : Sneaker consignment store leverage on shoe owners in the sense that there are no upfront payments to acquire merchandise. Shoe owners, including manufacturing companies, give consignment stores their products and expect compensation once the sale has been made.
Online presence: Kernel Collection will have a strong online presence, in which shoes are displayed in several ways that include Yellow pages ads, Facebook forums, and online stores. Customers will have an opportunity to shop online or visit one of the nearest chain stores.
Access to financial resources: The availability of financial backing through numerous bank loans is another strength of the company. Government lending programs such as Small Business Administration support small businesses by linking them with lenders. Additionally, affiliate companies selling products through consignment allows for Kernel Collection to leverage their financial position for operations costs such as maintenance and upgrade of stores. The financial backing mechanism previously mentioned will enable the company to close in on budget gaps, among other financial needs. Furthermore, the shop will have pick-up stations and drop-off centers in various places in Seattle
Weaknesses
Competition: Stiff competition for customers is a major anticipated weakness for the business. Consignment business is volatile with numerous stores of the same kind, as well as retail shops offering shoes at lower prices.
Logistics: Transport cost is also a significant weakness. Customers order shoes from various places countrywide. Costs of delivering products to the pick-up and drop off stations will likely lead to delays, discouraging customers who will leave negative response and reviews under its online pages. It requires a significant amount of investment to speed up the delivery process.
Opportunities
Mergers: Affiliate relationship with companies manufacturing and selling shoes gives will give Kernel Collection a competitive advantage in the sense that it can market and sell its products through established brands that have strong consumer confidence. Locations, including online presence and numerous strategic, pick up and drop off stations enhance marketing strategy of the company. Fashion and modeling events can generate traffic to the company’s online stores, which can be converted to engagement and later potential customers.
Emerging markets: Kernel Collection has the potential to grow its operation and venture into other states and even outside the US. This strategy will result in increased brand recognition and revenue.
Threats
Availability of substitutes: The growing popularity of online retail stores such as Amazon and eBay are increasingly impacting brick-and-mortar retailers by becoming an efficient substitute for traditional shopping as well as leaders of innovative ideas in online shopping. The company anticipates threats due to the popularity of the platforms previously mentioned.
Counterfeit products: Notably, it is easy to replicate the company’s main idea as well as a business model. The company runs the risk of competing with low-quality and low-priced versions of its products from retailers that sell counterfeits. Such an issue may adversely affect the company’s brand image.
Goals and Objectives
To invest 15% of net profit in direct advertising campaigns
To increase the company’s market share by 10% by annually
To increase income revenue by 10% in the next two years
To acquires affiliate relationships with shoe owners including high-end shoe brands such as Avia, Brooks sports, Sketchers, and Air Jordan, Nike, and Adidas
To distribute sneakers to customers nationally and reduce delays in delivery time
Marketing Strategy
A digital marketing strategy will be used to reach out to potential customers. The strategy entails both blogging and social media marketing. Blogging utilizes peer-to-peer communication in influencer marketing, in which influencers spread word of mouth about a product or brand in social sites (Hughes et al., 2019). Kernel Collection will focus on both social media influencer marketing as well as sponsored blogging, in which tailored posts about sneakers on sale will be created and posted through well-known bloggers. Sponsored blogging will generate traffic to the company’s websites, which may attract potential customers.
Social media marketing will also be used to spread word of mouth about the brand and the products on sale. Social media marketing entails using social sites to disseminate information about brands or products. According to Duffet (2017), social media has become indispensable, especially among youth, making it a target for marketers keen on online marketing. Therefore, the company will utilize social sites to expand its brand awareness and widen its customer base.
Target Market Strategy
Segmentation creates a competitive advantage for an organization. There are five forms of segmentation: geographic, demographic, behavioral, benefit, and psychographic (Kingsnorth, 2019). Demographic segmentation entails targeting consumers based on factors such as age, race, gender, and education. The store will segment its market and focus on youth or both gender divides. Geographic segmentation is the location of consumers being targeted (Kingsnorth, 2019). The company will establish its end-shops in a strategic location near institutions of learning and talent centers.
Marketing Mix
Marketing entails numerous ways of managing consumers to increase organizations' marketing base. According to Resnick et al. (2016), marketing strategy includes activities and processes for implementing a marketing mix that is composed of 4Ps: product, price, place, and promotion. Kernel Collection will implement its marketing mix using various strategies, within the 4Ps.
Product
The company’s product line will consist of shoes of all makes for both genders. Shoes sold at the store will be available in all sizes to meet the needs of the target market. The store intents to target youth, especially high school and college-going students. The sneaker line will also include loafers, flip flops, and brogues. Other types of shoes will be canvas, trainers, heels, and boots.
Price
The company will use a market-oriented pricing strategy for all shoes, in which price is set in line with the prevailing market prices. Thus, the price range will be between $70 and $80, depending on the features and materials used.
Place
The shop and its chain stores will operate in strategic places with ease access. Sites for chain stores are near talent centers and institutions of learning in Seattle, WA. Besides, customers can order at various pick-up and drop off stations as well as on the website.
Promotion
Store’s promotional mix will include social media marketing and influencer marketing or blogging. This avenue gives the company a competitive advantage over its competitors who rely on traditional marketing strategies such as TVs, radio, and billboards.
References
Duffett, R. (2017). Influence of social media marketing communications on young consumers’ attitudes. Young Consumers , 18 (1), 19-39. https://doi.org/10.1108/yc-07-2016-00622
Hughes, C., Swaminathan, V., & Brooks, G. (2019). Driving brand engagement through online social influencers: An empirical investigation of sponsored blogging campaigns. Journal of Marketing , 83 (5), 78-96. https://doi.org/10.1177/0022242919854374
Kingsnorth, S. (2019). Digital marketing strategy: An integrated approach to online marketing (1st ed., pp. 23-24). Kogan Publishers.
Resnick, S., Cheng, R., Simpson, M., & Lourenço, F. (2016). Marketing in SMEs: A “4Ps” self-branding model. International Journal of Entrepreneurial Behavior & Research , 22 (1), 155-174. https://doi.org/10.1108/ijebr-07-2014-0139
