Retail Store Marketing Plan

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									This is a plan that helps guide businesses in making efficient marketing decisions based
on relevant statistics. This plan will help provide an effective marketing strategy and
ensures proper allocation of marketing funds. This specific plan is designed for retail
stores and is based on a fictional company called “Knit Purl” in order to provide
thorough examples. This plan can be used by small businesses or other entities that
operate as retail stores and want a more effective and efficient marketing plan.
                         Retail Marketing Plan
                                     [Knit Purl]




                                   Fiscal Year [20XX]
                                Prepared by [Your Name]




© Copyright 2011 Docstoc Inc.                             2
                                          Confidentiality

The reader acknowledges by examining or possessing this packet that the information within this
marketing plan is confidential. The reader agrees not to disclose any of this information, without
the express written permission of [Knit Purl]. The reader acknowledges that any information in
this marketing plan is confidential in nature, unless otherwise in the public domain, and that to
disclose any of the information within may cause serious harm or damage to [Knit Purl], and
may result in legal action being taken.


Upon request, please return this document IMMEDIATELY to:


___________________________________________________




© Copyright 2011 Docstoc Inc.                                                           3
Contents
I. Executive Summary……………………………………………………………………5
       Introduction……………………………………………………………………... 5
       Purpose & Objectives…………………………………………………………… 5
       Marketing Opportunities………………………………………………………… 5

II. Environment Analysis………………………………………………………………...6
Customer Analysis……………………………………………………………………….. 6
Ideal Customer…………………………………………………………………………… 6
Needs…………………………………………………………………………………….. 6
Trends……………………………………………………………………………………. 6
Growth…………………………………………………………………………………… 7
Competition Analysis……………………………………………………………………. 7

III. Internal Analysis……………………………………………………………………..8
Performance……………………………………………………………………………… 8
People…………………………………………………………………………………….. 8
Infrastructure & Delivery………………………………………………………………… 8
Competitive Edge…………………………………………………………………………8
Product…………………………………………………………………………………… 9
Price Rationale…………………………………………………………………………… 9

IV. SWOT…………………………………………………………………………………10

V. Fundamental Marketing Strategies………………………………………………….11
Mission…………………………………………………………………………………… 11
Marketing Objectives…………………………………………………………………….. 11
Supply……………………………………………………………………………………. 11
Demand…………………………………………………………………………………... 11
Competition……………………………………………………………………………… 11
Position…………………………………………………………………………………... 11
USP & Key Differentiators………………………………………………………………. 12

VI. Implementation & Control…………………………………………………………..13
Implementation…………………………………………………………………………... 13
Control…………………………………………………………………………………… 14

VII. Financial Forecast…………………………………………………………………..15
Break-even Analysis……………………………………………………………………... 15
Sales Forecast……………………………………………………………………………..15
Cost of Marketing………………………………………………………………………... 15

VIII. Conclusion…………………………………………………………………………..16



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Executive Summary

(In this section, briefly describe the company, where it stands in the market, and what
opportunities are available. Although this appears first in the document, you may wish to wait
until later to write the Executive Summary as it is intended to summarize the main points of your
plan. If you have a business plan, you can use parts of your Executive Summary from that
document to fill this out.)

Example: Knit Purl opened up shop in 1995 in the front room of founder Kelly Kirk’s three-story
home, one block from downtown Hartford. In the past 16 years, the store has expanded into the
second floor of the building and become a Mecca for knitting and crocheting enthusiasts all over
Hartford. As we enter our 17th year in operation, we have significant opportunities to grow our
share of the market by focusing on what drives our key demographics.

Purpose & Objectives

(In this section, briefly outline the purpose of the Marketing Plan, including company objectives
and strategies that are being suggested based upon the research you have conducted to create
this plan.)

Example: This marketing plan for fiscal year 2012 outlines our goals for growing our customer
base and increasing revenue, and the approach we plan to take in order to achieve these goals.


Marketing Opportunities

(In this section, go into more detail about current market conditions. Explain to the reader what
opportunities arise out of these conditions, and describe how your company can take advantage
of them.)

Example: Knit Purl has been steadily growing a loyal customer base in Hartford, many of whom
visit the store weekly to take classes, purchase products, and take part in knitting circles and craft
groups. Additionally, Knit Purl has been making strong connections with several llama and
sheep farms in the nearby counties and purchasing raw wool that is dyed, handspun by
employees, and is then packaged for sale. In order to catch up to speed with online businesses
(and because online expansion is the only expansion available, as Mrs. Kirk simply has no more
room in her house), Knit Purl will be launching a new website, through which we will sell our
own handspun yarn as well as the many brands of knitting and crocheting products that we sell
through the store.

As the economy shifts and attitudes in America begin to reject disposable lifestyles, hand-crafted
items and hobbies are experiencing a renaissance, especially in the younger generation. Many
companies have successfully marketed needlework products to younger women in recent years.
We think we have a real opportunity to grow our customer base and increase revenue by
capitalizing on our hand-spun, natural yarn that has been dyed with organic materials.

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Environment Analysis
Customer Analysis

Ideal Customer

(In this section, describe your ideal customer. Discuss their income, age group, spending habits,
lifestyle, geographic location, frequency of purchase of your product/service, what percentage of
their income goes towards your product/service, media and social networking habits, brand
loyalty, and other traits that affect how they perceive and purchase your product/service. You
may find that you have several kinds of ideal customers. Separate them and discuss them
individually, since their differences may affect how you approach marketing to them.)

Example:
Mother Hens – Women 35-65

Example: Mother hens are women with children of any age, from toddler to adult. In order to
care for their children, they tend to work fewer hours than their husbands, or not at all. They
have taken up knitting because it is a relaxing and creative hobby. They are willing to pay more
for yarns they perceive to be of a richer material. They are not as concerned with the origin of the
material.

Kitschy Knitters – Women 15-35

Needs

(In this section, discuss the needs of your ideal customer that are not currently be met by the
market, with an eye toward taking advantage of these needs).

Trends

(In this section, discuss any trends in the market, like changes in household incomes, new
technologies, world events, and shifting cultures that affect the way you do business or currently
reach your customer.)

Example: As outlined earlier, several needlecraft retailers have successfully launched websites
for their products, capitalizing on the young age and tech-savvy disposition of the craft’s fastest
growing demographic: young women in their twenties and thirties. We believe that there is a
place for us amongst these markets if we focus on selling local wool. Many of our customers are
drawn to knitting as part of a larger lifestyle of thoughtful living, and this includes purchasing
and using organic, natural materials.




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Growth

(In this section, discuss projected growth in the market and important variables that adversely or
favorably affect it.)

Competitor Analysis

(In this section, discuss your competition. Separate each into their own paragraph or set of
paragraphs, and outline their market share as well as a brief overview of their company history,
the products/services they offer, and their target market.)

Example:
In Hartford, we are the only store devoted solely to needlecraft and with a large selection.
Several other stores in town do sell needlecraft supplies, but they are almost exclusively chain
stores, and 85 percent of their material is not what our customer base wishes to purchase.
Additionally, these stores, like Target, Wal-Mart, and Michael’s, also sell so many other things
not related to needlecraft that our customers perceive their material as inferior, even though they
do sell some of the same brands that we do.

Nancy’s Needles – A small storefront downtown, probably a quarter or a fifth of the size of our
store. Nancy’s has been around for about a decade longer, but they aren’t gaining new customers
at the rate that we are. They cater mostly to women 50+.

Michael’s

Wal-Mart




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Internal Analysis

Performance

(In this section, give a brief overview of your company’s performance with a general (and
concise) look over the life of the company and a more critical focus on the past one to two years.
Detail the market share that the company currently holds.)

Example: In the past 16 years, Knit Purl has grown from a one-room store to a two-story knitting
boutique. We host knitting circles and classes every day that our doors are open, and we have
recently begun in earnest to sell local yarns. When it comes to young, hip knitters, and knitters of
all ages who thrive in a community, we have the market cornered in Hartford. We are now
looking to an online store as an opportunity to expand our business.

People

(In this section, discuss the staff and leadership in your company. Depending on the marketing
strategies included in this plan, you may want to discuss how easily staff can be trained, how
connected staff is to the local community, etc.)

Example: Our owner, Kelly Kirk, runs several of the weekly classes and supervises the hand-
spinning and dying of local wools. We have four employees on staff, all full-time, who mind the
store and manufacture local yarn. All of these people are closely connected to, and actively
participate in, the knitting community that has been built up in the rooms of Knit Purl. Two of
the employees are young women who are very computer literate and who will take over
responsibility for the daily operation of the website.

Infrastructure & Delivery

(In this section, discuss the infrastructure of your business, including physical locations and your
online presence. Discuss how you deliver your product/service to your customers. If you sell
through a third-party (retail store, Amazon.com, etc.) list them here.)

Competitive Edge

(In this section, discuss your competitive edge. What it is that you offer to your clients that your
competition does not or cannot? Discuss strategies designed to respond to and outrun your
competition in the future.)

Example: In terms of the competition in Hartford, we offer a welcoming and fun atmosphere, a
knowledgeable staff and incredible selection. By presenting an environment that combines crafts
and community, we encourage people to spend time in our store, rather than rushing them
through a checkout line and out of the store. This drives up sales and ensures repeat customers.


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Product

(In this section, outline your products/services with descriptions and alignment to your ideal
customer(s).)

Examples:
Needlecraft Supplies – This is a wide category meant to encompass the many different brands
of wool, yarn, needles and other accessories. The majority of our selection is comprised of
either boutique yarns, which have been hand-spun and dyed by companies all over the world, or
high-quality, natural fiber yarns.

Books – We have a large selection of books: pattern books, teaching books and craft idea
books, as well as most of the major needlecraft magazines.

Local Yarns – We purchase wool from several llama and sheep farms in the surrounding
counties and hand-spin them in the store.


Pricing Rationale

(In this section, explain your pricing rationale and why it is an appropriate strategy for the
market. Also discuss how you will continue to monitor this strategy for effectiveness. Are you
working with a low-cost/high-volume system, a high-cost/low-volume system, or an alternative
system?)




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SWOT
(In this section, lay out your strengths, weaknesses, opportunities, and threats as a business.
Writing about these will help you to understand the factors that affect your business from within
and without.)

               Strengths                      Weaknesses
                   Strong Customer              Rising property taxes
                      loyalty                    Price
                   Young Development            Rising Utility Costs
                      Staff                      Not as established online as
                   A considerable share           our competitors
                      of the market




               Opportunities                  Threats
                  Growing tech-savvy             Online storefronts of other
                    customer base                   competitors
                  New trends in                  Recession/unemployment
                    conscious-living                rates
                  New technologies




(Give detail here for each bullet in the SWOT diagram, and take this opportunity to explain how
your business will utilize its strengths and opportunities to eliminate weaknesses and threats.)

Strengths
       [Strength details]

Weaknesses
       [Weakness details]

Opportunities
       [Opportunity details]

Threats
       [Threat details]



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Fundamental Marketing Strategies
(This is the most important part of your Marketing Plan, and you will need to spend some time
with it to make sure that your plan is grounded and viable.)

Mission

(In this section, state your mission with regards to the outcome of this marketing plan.)

Example: Our mission with this marketing plan is to continue to grow our customer base and see
a significant ROI as the result of building our new website for online sales of local yarn.

Marketing Objectives

Supply

(List your marketing objectives that will involve increasing (in actuality or in customer
perception) products or services.)

Example: We have already been selling locally hand-spun yarn for a couple of years, but now we
are ready to build a website that will allow us to bring that product to the world. This site will
focus on the quality and naturalness of the material, capitalizing on recent trends towards well-
made, organic goods.

Demand

(List your marketing objectives that will involve increasing demand for your product/service,
either by identifying a problem that your product/service solves or by reaching out to new
customers.)

Competition

(List your marketing objectives that will serve to mitigate certain advantages that your
competitors currently have. Don’t forget to include how you will let your customers know that
you have done this.)


Position

List your business’ current position in the market in relation to your competition, and describe
the position you want the business to hold. Then, detail how your marketing objectives will either
allow you to hold that position (if at the top) or reach the desired position.




© Copyright 2011 Docstoc Inc.                                                           11
USP & Key Differentiators

(USP is your business’ Unique Selling Proposition. This is what your business does for the
customer that gives you an edge over the competition. Refer back to this when developing the
message you want this marketing strategy to convey to your customers.)

Example:

Our USP – We offer quality needlecraft materials that are simultaneously beautiful and well-
made, and we foster the joy that comes from creating in a community setting.

(Key Differentiators are specific things that your product/service does to back up the USP.)

               We make hand-spun, hand-dyed yarn from local wool
               We stock materials that are of high quality and exceptional beauty
               We offer classes and host knitting circles on a daily basis
               Our website will make it extremely easy for anyone living almost anywhere to
                purchase beautiful, quality materials for their own projects




© Copyright 2011 Docstoc Inc.                                                         12
  Implementation and Control

  Implementation

  (Use this table to outline the specific actions (include dates and the roles and responsibilities of
  key players) that will be used to implement your marketing strategy.)

Role - Responsibilities           Owner              Oversight       Deadline/Frequency

Website                           J. Smith           K. Kirk         February 2012

    -Design                       Web Developer      K. Kirk         December 2011

    -Weekly blog                  J. Smith, D.       K. Kirk         weekly
                                  Anderson
    -Updating product             D. Anderson        K. Kirk         weekly or as needed
      catalog
    -Processing orders            J. Smith           K. Kirk         daily

Advertisements                    D. Anderson        K. Kirk         February 2012

    -Design                       Graphic            K. Kirk         January 2012
                                  Designer
    -Placement in                 D. Anderson        K. Kirk         February 2012
      consumer magazines




  © Copyright 2011 Docstoc Inc.                                                             13
Control

(Use this table to outline how your company will evaluate the effects and effectiveness of your
plan.)


     Activity                   Performed by             Frequency

     Staff Performance          K. Kirk                  Annually
     Evaluation
     Salary and                 K. Kirk                  Annually
     Incentive Review
     Measure Results            K. Kirk, J. Smith        Monthly/Quarterly/Annually
     Against
     Projections
     Surveys of in-store        J. Smith, D. Anderson    Monthly
     customers




© Copyright 2011 Docstoc Inc.                                                          14
Financial Forecast

Break-even Analysis
(Use a table, graph or chart that can accurately capture your business’ break-even analysis.)

Operating Expenses
Fixed Costs                                                1,000,000
Variable Costs                                                    40%

Break-even Revenue – rounded                               1,670,000

Required Total Revenue                                     1,670,000
Assumed Product Revenue                                         75%
Required Product Revenue                                   1,272,500



Sales Forecast

                 Dec               Jan          Feb          Mar            Apr
SALES
Yarn             $8,000            $10,000      $12,000      $12,500        $12,500

Needles          $2,000            $2,500       $3,000       $3,500         $4,000

Patterns         $650              $700         $750         $800           $850
Total Sales      $10, 650          $13,200      $15,750      $16,800        $17,350



Cost of Marketing

      Year                2010               2011           2012              2013
Spending                  $3,130             $4,870        $7,220            $9,810
Growth                                       55.6%         48.3%              35.9%




© Copyright 2011 Docstoc Inc.                                                         15
Conclusion
(Enter two or three sentences to wrap up all the information and bring this plan to a close.)




© Copyright 2011 Docstoc Inc.                                                          16

								
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