Art and Furniture Retail Marketing Plan by PaloAltoSoftware

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                               Table Of Contents


1.0   Executive Summary       . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1

2.0   Situation Analysis . . . . . . . . . . .                 .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .1
         2.1    Market Summary . . . . . . . .                 .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .1
                    2.1.1 Market Demographics                  .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .2
                    2.1.2 Market Needs . . . .                 .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .2
                    2.1.3 Market Trends . . . .                .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .3
                    2.1.4 Market Growth . . . .                .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .3
         2.2    SWOT Analysis . . . . . . . . .                .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .4
                    2.2.1 Strengths . . . . . .                .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .4
                    2.2.2 Weaknesses . . . . .                 .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .4
                    2.2.3 Opportunities . . . .                .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .5
                    2.2.4 Threats . . . . . . .                .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .5
         2.3    Competition . . . . . . . . . .                .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .5
         2.4    Product Offering . . . . . . . .               .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .5
         2.5    Keys to Success . . . . . . . .                .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .6
         2.6    Critical Issues . . . . . . . . .              .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .6

3.0   Marketing Strategy . . . . .    .    .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .6
        3.1    Mission . . . . . .    .    .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .6
        3.2   Marketing Objectives    .    .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .7
        3.3    Financial Objectives   .    .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .7
        3.4   Target Markets . . .    .    .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .7
        3.5   Positioning . . . . .   .    .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .7
        3.6   Strategies . . . . .    .    .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .8
        3.7    Marketing Mix . . .    .    .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .8
        3.8    Marketing Research     .    .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .8

4.0   Financials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
         4.1    Break-even Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . 9
         4.2    Sales Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
         4.3    Expense Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

5.0   Controls   . . . . . . . . . . . .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   . 11
         5.1     Implementation . . . .    .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   . 12
         5.2     Marketing Organization    .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   . 12
         5.3     Contingency Planning .    .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   . 12
                                              Bike Art


1.0 Executive Summary

   BikeArt is a stand-alone kiosk located in the busy Valley River Mall. BikeArt sells assorted pieces
   of art as well as furniture made out of recycled bicycle parts. Through outstanding terms and
   conditions of their lease, BikeArt will be able to display their larger items on the surrounding
   floor space. This should significantly increase sales as walk through traffic in the wall is very
   high.

   BikeArt will target two market segments, industrial art aficionados and bicycle enthusiasts. Both
   of these groups are populous in Eugene. Eugene is a progressive, liberal city which favors
   forward-thinking art collectors. Additionally, Eugene is Bike City USA, meaning bicycling is
   hugely popular. Having good numbers of these populations will fuel growth.

   BikeArt is forecasted to reach profitability by month nine and will have profits of almost $40,000
   by year three.



2.0 Situation Analysis

   BikeArt is a start-up company. Marketing is critical to success and future profitability. The
   company offers art work constructed out of recycled bicycle parts.



2.1 Market Summary

   BikeArt possesses good information about the market and knows a great deal about the common
   attributes of the most prized and loyal customers. BikeArt will leverage this information to better
   understand who is served, their specific needs, and how BikeArt can better communicate with
   them.




                                       Target Markets




                                                                            Industrial art collectors
                                                                            Bicycling enthusiasts




                                                                                                        Page 1
                                                 Bike Art


     Table 2.1: Target Market Forecast

      Target Market Forecast
      Potential Customers            Growth     2001     2002      2003       2004       2005     CAGR
      Industrial art collectors          8%    5,644    6,096     6,584      7,111      7,680     8.00%
      Bicycling enthusiasts             10%   12,545   13,800    15,180     16,698     18,368    10.00%
      Total                           9.39%   18,189   19,896    21,764     23,809     26,048     9.39%




2.1.1 Market Demographics

  Geographics

      • The immediate geographic target is the city of Eugene with a population of 130,000.
      • A 25 mile geographic area is in need of BikeArt's products.
      • The total targeted population is 18,189.

  Demographics

      •   Primarily male.
      •   Primarily single.
      •   Progressive.
      •   Income of at least $30,000.

  Behavior Factors

      • Progressive.
      • Collects art or "cool looking stuff."




2.1.2 Market Needs

  BikeArt is providing customers with cutting edge, creative art work designed out of recycled
  bicycle parts. BikeArt seeks to fulfill the following benefits that are important to their customers:

      • Novelty Items: The products that BikeArt produces are unique and interesting.
      • Selection: A wide selection of bicycle art work.
      • Accessibility: BikeArt is located in the Valley River Mall and is open all hours that the mall
        is.
      • Customer Service: The patron will be impressed with the level of service and attention
        that they receive.
      • Competitive Pricing: BikeArt will price their products to receive a fair margin and to
        provide the artist with reasonable compensation.




                                                                                                 Page 2
                                             Bike Art


2.1.3 Market Trends

  One trend within the art industry that BikeArt is riding on is the trend of art to utilize everyday
  items. This is seen with BikeArt's use of bicycle components. It can also be seen with other artists
  that go to junk yards to find pieces of metal and then weld the metal into objects such as animal
  lawn ornaments. The trend of creativity in the construction of art from everyday objects has
  picked up more and more artists over the last several years.




                                     Market Forecast


  30,000


  25,000


  20,000


  15,000
                                                                          Industrial art collectors
                                                                          Bicycling enthusiasts
  10,000


   5,000


      0
             2001       2002      2003       2004       2005




2.1.4 Market Growth

  The world wide art industry is huge. Within the industry there are so many niches that artists fill.
  Art is used as a creative expression, as well
								
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