Custom essay on Business Plan

Marketing Objectives
The objectives of the project are the following: during the first year the sales are expected to reach $1.5 million, with average monthly sales around $125,000. Profit margins are to be kept at the level of 12% on average during the first year, with possible reduction to 10% during the next 4 years, due to the economy of scale and bulk purchases. During the second year, at least 3 new stores in the neighboring cities will be launched, and total sales during the second year are expected to reach $6 million, with 40% of sales generated by the main store (monthly sales are expected to be around $200,000 ), and 60% of revenue generated by the new stores (monthly sales estimated as $100,000 per each store).
During years 3 and 4, a 10% annual increase of sales is the financial target. During year 5, it is planned to launch 5 new stores in the major cities of the neighboring sales and to increase the focus on e-commerce and the company’s infrastructure. The projected annual growth of sales for existing network is 10%, and the estimated sales for the group of new stores are $15 million (monthly sales at $125,000 for each store). Thus, overall revenue of the “Accessories” network of stores is expected to be $23 million, with 10% profit margin.
5. Marketing Strategy
As it was described in the SWOT analysis, there are 5 target groups of customers for the store: women 20-30 years old, women 30-45 years old, men 20-30 years old, men 30-45 years old and fans of alternative cultures. The selection of products will be varied; among the main categories are jewelry, watches, gloves, handbags, purses and wallets, belts, sunglasses, various pins, neckties and hair accessories. The suppliers will be chosen according to their high quality and price reduction options for bulk orders. The selection of products will be based on the surveys of customer preferences, latest fashion trends and geographical specifics.
The approach to distribution is mostly traditional (Luther, 2011): the customers will be able to buy the accessories at the store or make an online order with delivery options. A very important issue is to have a balance of inventory to avoid keeping outdated items, but at the same time making a reasonable reserve for popular items. The customers will have the opportunity to take pictures with the accessories and ask their friends or relatives for review. Also, there will be a special showroom where customers could try the accessories, and internet access for them to be able to connect to their relatives online, and to ask their opinion. A special fashion consultant will help the customers to select accessories for their style or for special events. In future, the “make-upon-order” function will be implemented; using this feature, customers will be able to order personalized products.
Promotion will be done online, in social networks (Negen & Negen, 2010), on radio and through text messaging on TV. Advertising materials will also be placed in the special journals and catalogues. Peer promotion will also be implemented on the basis of catalogues: referrals willing to earn income on intermediary actions could show the catalogues to their friends and provide them a personal code, resulting in a discount for the customer and a percentage of revenue for the referral. Exhibitions at fashion events will also be used as a means of promotion.
Finally, pricing will be a competitive advantage, since the “Accessories” store will provide high-quality items at the best prices. This is a form of diversification strategy (Boone & Kurtz, 2011), since this approach is aimed at several target groups, opposed to cost leadership, which commonly works for all customers. Bonus programs and family discounts will be offered for loyal customers. The store will also offer seasonal discounts and “lucky hours”. As a result, prices combined with great quality will create a strong competitive advantage for the “Accessories” store.
5. Implementation, evaluation and control
The steps of the marketing plan will be associated with certain timelines after a major conference including all sponsors and stakeholders. Further implementation of the marketing plan will be done at the middle managerial level and then descended to front line managers and employees. The assessment of the project’s profitability for each year in the 5-year period will be done after the project’s schedule is established. Every 6 months control marketing audits will be done (Lamb & Hair & McDaniel, 2010), with further adjustment of the marketing objectives and financial estimates.
Another method of evaluation and control will be customer feedback. “Anonymous customers” should be regularly sent to the store in order to evaluate the quality of service and convenience of the store (Boone & Kurtz, 2011). Since it is planned to create a website for the store, online surveys for studying the customers’ opinion and suggestions will be implemented. In addition to this, short surveys will be offered to customers at the store during certain days, in exchange for a discount or bonus program. Customers will be able to formulate their expectations and ideas both online and at the store, and the marketing plan will be customized according to the preferences of the target groups. Moreover, the customization will then be implemented differently in other regions and states, because customer preferences can vary across the country.

References
Boone, L.E. & Kurtz, D.L. (2011). Contemporary Marketing. Cengage Learning.
Ferrell, O.C. & Hartline, M.D. (2008). Marketing Strategy. Cengage Learning.
Lamb, C.W. & Hair, J.F. & McDaniel, C. (2010). MKTG4 2010. Cengage Learning.
Luther, W.M. (2011). The Marketing Plan: How to Prepare and Implement It. AMACOM Div American Mgmt Assn.
Negen, B. & Negen, S. (2010). Marketing Your Retail Store in the Internet Age. John Wiley and Sons.