Marketing plan (retail store) assignment
Marketing plan (retail store) assignment
Opportunities include the ability to take advantage of the unfulfilled customer need of knowledge, the potential for a second location in the southwest community of , a possibility of franchising, as well as partnering with local varsity sports teams, such as the University of Dongau Bears and to become an official team supplier. Threats include a possible price reduction strategies by nearest competitor , as well as increased marketing efforts in the southwest. Another possible threat includes the seasonal nature of the sport.
Objectives of this market plan include a desire to obtain $1 million in revenues in its first year of operation, with the target of a 10% increase in each subsequent year. In addition, AtoZ expects to retain an 80% capacity in each of its off-season conditioning camps. AtoZ also anticipates a minimum of 30% return-on-assets in its first year of operation. Intangible objectives include developing an increased community awareness of the health and wellness benefits of playing hockey, as well as acquiring the reputation of a company which cares about the well-being of its customers and its community.
Opportunities for local television advertising will be explored if deemed necessary. In terms of placement, the store’s physical location can be considered a medium-sized store with a 6000ft2 sales floor, as well as a large stock room, pro shop, and office. Advertising for given products will be largely provided by suppliers and will occupy central areas next to their corresponding products. Financially, AtoZ expects first-year sales to range between $850, 000 and $1 million. AtoZ will require approximately $100, 000 in long-term financing, which has been secured at 4. 25%.
In assessing its current marketing strategies, AtoZ will implement several controls and monitoring strategies to ensure their effectiveness. AtoZ will install a comprehensive customer database which will track customer information, such as name, address, and purchase history. This way, AtoZ can monitor where, specifically, marketing efforts are being directed, as well as where they have not been covering. In addition, AtoZ will maintain a customer relationship management system which will continually assess the customer relationship, as well as track sales, costs, margins, and trends.
The area is located on a 1. 2 acre plot of land within a massive residential area. The only other commercial entity in the area is a gas station located on the opposing corner of the intersection. The corner lot location also provides easy access from all directions and is located less than 1 kilometer away from the 121st Street exit off Highway 26, the city’s brand new ring road. SWOT Analysis Strengths – AtoZ Hockey will carry reputable, quality brand names such as Nike-Bauer, CCM, Easton, Mission, Sher-Wood, Vaughn, RBK, and more. AtoZ hockey will base its competitive advantage on delivering a personable customer experience, unlike primary competitor SportChek, whose commission-based employees have relatively little in-depth knowledge of hockey equipment and lack a sense of passion for the game. – AtoZ Hockey will benefit from its location in an upscale urban community with favorable demographics which include SES, number of children per family, involvement in extra-curricular activities, and potential partnership with King George Elementary School. AtoZ Hockey endeavours to build lasting personal relationships with its customers and involve itself in sponsoring Southwest-based community hockey teams at all levels. – Strategically placed in a residential community with the nearest competitor located in a commercial district 9 kilometers North, AtoZ Hockey intends to capture a large portion of the hockey-playing market of Southwest. – In addition, AtoZ Hockey will offer three on-ice training programs for amateur players of all ages.
These programs vary in length and include power skating, puck skills (shooting, passing, puck control), and positional strategies. AtoZ will also offer an off-ice dry land training program in the off-season. Weaknesses – AtoZ Hockey may struggle to acquire brand recognition because it is a single store – AtoZ Hockey will not immediately possess the buying power that larger stores have, resulting in slightly higher prices (AtoZ Hockey plans to supplement higher prices with superior customer service and product knowledge). AtoZ Hockey will not have the same capacity to store or replenish merchandise as effectively as larger stores. – AtoZ Hockey will incur higher labor costs based on the need to attract and retain mature, knowledgeable, and professional individuals. – AtoZ will encounter competition from community-operated and other privately-operated hockey camps. Competition will come in the form of price, program length and quality, as well as rink availability. Opportunities – AtoZ Hockey will take advantage of an unfulfilled customer need: knowledge.
Although it will inevitably be a follower to larger and primary competitor , we feel the nature of our company to be more community-oriented and knowledge-centered. The unique characteristics of our company can be identified by a strong community presence, as well as an intensively-trained and knowledgeable staff. In addition, service offerings such as hockey camps and off-season training will separate AtoZ from its major competitor. Pricing We anticipate our products to be priced approximately 10% higher than our competitors.
The price difference can be justified by a fully-trained, knowledgeable, and experienced staff who are well-versed in the mechanics of hockey equipment. Our staff will be capable of conveying a personalized, educational approach to purchasing equipment. The staff will be able to effectively determine suitability in terms of size, comfort, and protection for any hockey player at any level. In addition, the pro shop can also customize equipment for enhanced protection and fit. Further, AtoZ will be initially operating on a smaller scale, and will therefore, lack the buying power possessed by larger retailers.
AtoZ also intends on hosting a 24-hour outdoor charity game in December. The proceeds will benefit minor league hockey, as well as sports programs for disadvantaged children. AtoZ has also planned the participation of local celebrities such as, as well as several members of the local hockey club and the junior team. Placement AtoZ will operate a storefront on the Southeast corner of. Products and customers will “ meet” in a 10, 000ft2 store with an open concept, organized by equipment type.
AtoZ intends on using a no-pressure, commission-free sales force that will educate its customers thoroughly on equipment suitability. AtoZ will also consider outsourcing the pro shop service to another local interest within its first two years of operation, thus benefiting from the resulting royalty agreement. AtoZ will acquire the large majority of its in-store advertising from its suppliers. In addition, AtoZ will purchase a virtual shooting range (to test hockey sticks) and a resin-based track to test skates before purchasing.
In addition, AtoZ will closely monitor their relationship with King George Elementary School by tracking the number of students whose parents make purchases at AtoZ. This can be accomplished by outfitting students at the school with a personalized loyalty card which guarantees that a percentage of their purchase is donated back towards their school. Not only does this sponsorship help promote healthy, active lifestyles at King George, it arms AtoZ with valuable marketing information that can be used to identify active markets and enhance promotional strategies accordingly.