Handbag_Obession

Executive SummarySituation AnalysisMarket SummaryMarket Demographics: Needs, Trends, and

GrowthSWOT AnalysisCompetitionKeys to SuccessCritical IssuesChannelsMission

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Marketing ObjectivesFinancial ObjectivesTarget MarketingPositioningMarketing MixBreakdown of Marketing CostsLink To Sales ProjectionsControls: Implementation Milestones,

Contingency Planning, Recommendations and Alternatives

Appendices Bibliography04/18/23 3

Handbag Obsessions is an established

wholesaler of handbags in New York.

Our product offers every woman self-

confidence and certainty in an appealing and

elegant way.

Some of the handbags we carry are comprised

of private dividers which allow us to carry

items that we use on a regular basis. 04/18/23 4

Handbag Obsessions markets its product line with each handbag having a name and an identity that customers can quickly connect with.

Types of Handbags:Pax -Perhaps for large

bags that can pack a lot of items

Pucker– a classy evening type handbag

Keri -medium size handbag that allows for the daily needs

Race Case – Perhaps a business attaché’ case for the professional woman working in a rat race

Leisure – Perhaps a handbag for the more leisure times in our lives such as grocery shopping, running errands, etc.

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This way of thinking assures that the company is doing “Right” by the customers.

We are seeking funding to expand Handbag Obsessions operations to include a catalog of our products

Based upon conservative market growth projections, once start-up funding is secured, the company expects to generate very healthy sales revenues in Fiscal Years 1, 2 and 3.

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Handbag Obsessions will increase sales to more than $1 million in three years, while also improving the gross margin on sales and cash management and working capital.

Handbag Obsessions business plan includes this summary, and chapters on the company, products and services, market focus, action plans and forecasts, management team, and financial plan.

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Information in this section provides rationale and support for the marketing objectives, plans, and strategies that we’ve outlined.

Market Summary and Demographics: Presents information on trends

Market Situation: Includes size, growth trends of total market, and key segments

Competitive Situation: Provides a description of major competitors

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Target Buyer or End User Situation: Analyzes the identification and behavior of target buyers/end users and consumer wants and needs

Product Situation: Includes sales, prices, and contribution margins

Distribution Situation: Provides information on size, trends, and importance of each distribution channel for the company's products

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Women's handbag market is over a $1B a year business nationwide

Handbag Obsession expects to capture about 50% of that market

We forecast this summary for the end of the fiscal year due to our low cost and high quality products

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Needs: New York and

California have the highest fashion stats in the United States

Trends:Focused on providing

high-end merchandise at a lower price in order to attract consumers

Growth:

Marshal Cohen, a chief industry analyst stated, “sales of handbags actually increased by 31% in stores nationwide and over 14% due to online sales”

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There are only a handful of other businesses offering designer handbags

Our competitive advantage stems from our design experts and the quality of our products.

Our designs feature emphasize on our customers’ needs.

Most of our competition has out priced themselves and we offer are products at an affordable price.

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We desire to run a business selling handbags in wholesale clubs.

We have planned via our marketing plan and from input from the team.

We will have attempted to sell a product to make a profit.

If success is where preparation and opportunity meet, then Handbag Obsessions will be very successful.

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Goals and ObjectivesMaintain a Marketing dashboard with real-

time information on each product. Maintaining a dashboard linked to the

marketing plan will provide a road map that monitors the achievements of goals and objectives.

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Evaluate each handbag that we sell to ensure that price is an indicator of value.

Value is judged by consumers as worth and desirability that satisfies some need.

Maximize every product line profit in the short-run to achieve the profits in the long-run

Profit= total revenues-total costs

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We will need to evaluate: Total cost, Fixed cost, Variable cost, Unit Variable cost and Marginal cost.

A Break-even analysis could be employed to analyze total revenue and total cost to determine profitability for each handbag.

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To ensure the success of our business it will be necessary to introduce new products and develop brand extensions.

The logo could be applied to new streams of products that would compliment the current handbag varieties.

Keeping the product life cycles new will ensure that customers are returning to view new releases of the latest additions to our brand.

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As our handbags will be placed in wholesale clubs, it will be important to maintain relationships with each club to retain target market.

80/20 rule. 80% of our sales will come from 20% of our customers. Dealing with matters as they arise within the clubs quickly and efficiently, will ensure continued success of our business.

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Profitability success will be determined by sales and repeat business, but our reputation success will be determined by customer satisfaction.

Giving customers more than what they expect will result in satisfied customers returning to make new purchases and spreading word of mouth to new customers.

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One of the critical issues we’re going to face with starting a new business is the economy.

We provide in this presentation a chart taken from a 2007-2008 consumer survey that was completed by the Bureau of Labor Statistics and can be found on page 48 of the 52 page report referred to as the Consumer Expenditure Survey Anthology, 2011.

Keeping in mind this is a survey from 3-4 years ago and the economy has only become worse.

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PUSH STRATEGIES 1.Partake in tradeshows to promote our

product.2.Create terms with vendor to stock product.3.Create efficiency in supply chain to allow

retailer a resourceful supply.4.Create a package design to encourage

purchase.5.POS(point of sale) display.

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PULL1.Strong advertising promotion2.Management will establish a relationship

with customers.3.Create sales promotions and discounts.

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Ultimately our mission is to supply each of our unique customers with the finely detailed handbag style of their choice that creates an exceptionally outstanding look and enhances their appearance meanwhile maintaining organization of their possessions.

Provide each customer with a quality product that offers an assortment of handbags that will present every woman with self-confidence and certainty in an appealing and elegant way.

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We want to create a shopping environment that caters to the needs of all women

To become the number one handbag company throughout the United States

To achieve a net profit of $50,000 by the end of the second year, and $150,000 by the end of the third year.

To be an active member and participant of all the surrounding fashion shows where models are using our handbag products in their shows.

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Financial ObjectivesFinancial ObjectivesRevenue

Revenue objectives for our marketing plan needs to be very specific so that the company can have a way of measuring the plan's success or failure.

CostsThe projected costs are made up of the

elements required to manufacture and distribute the product including material costs, shipping costs and personnel costs.

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Financial Objectives ContinuedFinancial Objectives ContinuedAdvertising The advertising schedule set up in a

marketing campaign uses historical data of past campaigns and research. As Handbag Obsessions is a newly launched product in the marketplace, Objective and Task would be the best approach.

After the marketing plan is completed, analyzing the advertising dollars spent will assist with determining more efficient ways to spend those dollars on future marketing plans.

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Financial Objectives ContinuedFinancial Objectives ContinuedProfitProfit projections are a significant part of

the revenue projections in the marketing plan, and profit must be monitored as closely as revenue.

Profit is not just a function of how low the company can get the cost to deliver product, it is also based on how much Handbag Obsessions can raise the asking price.

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Targeted Market:New York and California have the highest

fashion stats in the United States.25% of the approximate 20,000 fashion

designers are self-employed28 percent of fashion designers worked for

apparel, piece goods, and notions merchantWholesalersEach year, over $250 billion is spent on

fashion (including accessories) in the UnitedStates and over $20 billion in revenue is

generated annually.

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Handbag Obsessions will be discovered through: Neighborhood StorefrontsFriends and Customers by word of mouthPersonal shoppers and email listingsWomen’s fashion magazinesLocal press and advertisingTravel, business and shopping catalogues

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The primary customer is the professional and domestic woman with a household income of $40,000 or more. Her main characteristics will be:Professional woman ages 30-55Household income over $40,000Enjoys the luxury of owning quality and elegancePsychographicsLooks for bargains, but is willing to spend money on

quality itemsWould like more assistance in understanding what type

of handbag is appropriate for her and her lifestyleWants to look her best because she wants to feel good

about herself as well as make a good impression at her job.

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Leisure ActivitiesSupports the ArtsBusiness woman and motherWatches HBO, Lifetime and the Hallmark

ChannelReads Vogue, New Yorker Is internet savvyTravels and enjoys visits with friendsEnjoys eating out as well as taking time for

herself at the spa04/18/23 33

What kind of products is it? Fashionable, high standard quality handbags that are unique

and can’t be found anywhere else

What is the single most important benefit it offers? Elegance and practicality at an affordable price

Who is its most important competitor? Coach, Gucci and any other highly marketed designer handbag

What is the significant customer benefit of that difference? None of the other companies offer money back guarantee with

a six-month warranty included in the purchase of the handbag.

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Handbag Obsessions is based on the following factors :Product:

PaxPuckerKeriRace CaseLeisure

Price: The company will

offer quality handbags at less cost than the existing market standard.

Handbags will cost from $12-$60.

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Promotion: Media Advertising

Catalogs Magazines Social Media Sites

Incentives:Rebates/Free

subscriptionsDiscounts for

customer referrals

Distribution of Channel:Initially sold

through our wholesale company

Will later be available through retail outlets to be sold before the holidays.

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Handbag Obsessions is a new product at the introduction stage of the product life cycle.Informing customers regarding our product is our primary promotional objective.

Marketing mix consists of:PricingProductPromotionOnce the Channels of Distribution have been finalized, it will be important to link these to the business strategy to breakdown the marketing costs.

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The marketing costs are a detailed examination of the costs incurred in the business and an administration of the marketing function.

It impacts sales volume that also relates costs resulting in profitability.

Each handbag will also need to have individual sales targets as each handbag will have a different appeal to a different target audience.

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Each handbag would need to apply a percentage of the sales to promotion.

As this business requires an initial high cost promotional campaign a 10% cost per anticipated sale would ensure each handbag contributes to the marketing costs.

The following year this amount can be adjusted as brand awareness increases.

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Placing Handbags Obsession in a wholesale club brings a unique marketing issue, as the owners will need to maintain a tight budget as the wholesale concept results in lower cost items for the customer.

Templates for completing a marketing budget plan are readily available and Microsoft has several templates.

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Sales projections is a month by month prediction of the level of sales Handbags Obsessions expect to achieve.

Sales projections will be prepared once per year.

This purpose is to identify problems or opportunities with each product line.

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It helps to mange each product line as well as avoiding unforeseen cash flow.

Real-time adjustments can be made for each handbag depending upon the achievement of each target for each month.

Questions Handbag Obsessions needs to ask to clarify the Sales projections.

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Obtain feedback from wholesale club regarding sales volumes.

Encourage customer feedback on post purchase to improve handbags.

Check web based sales against wholesale club sales for data to estimate orders for each product line.

Review new markets to increase growth.

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There are many free templates available on the internet.

Complete two forecasts “best guess”- results the business hopes to achieve and “worst case” – low estimates that you are confident of achieving that result in a break even rather than high profit outcome.

Keep collecting data to help with next years sales projections.

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BUDGET

PROFITIABILITY

EFFICIENCY

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SALES, STOCK, EMPLOYEES, DISTRIBUTORS, MARKETING, ADVERTISMENT, MONTHLY/QUARTERLY

BUDGETS WILL BE MONITORED AND REVIEW ON A MONTHY BASIS. IF THERE ARE ANY DEVIATIONS, STEPS MUST BE TAKEN IMMEDIATELY TO CLOSE ANY GAPS.

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Increase profit margin in sales Reduce costs in

inventoryIncrease assetsReduce waste

All employees are working efficientlyProducts are

profitableCustomer

satisfactionLogistic costDelivery serviceOrders received

correctly

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Store space will be available 4 months before grand opening.

Qualified staff will be trained 30 days before grand opening.

Marketing Managers will be responsible for sales, in-store marketing, invoices, purchasing, hiring staff and other managerial responsibilities.

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MARKETING PLAN WILL BE UPDATED AND REVISED EVERY 12 MONTHS AND REVIEWED EVERY QUARTER.

* This will ensure that the Marketing Plan is on schedule and make corrections if needed.

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SALES – DETERMINE WAYS TO INCREASE SALES BY REVIEWING MARKETING MIX AND BRANDING. DEVELOP NEW PROMOTIONAL SALES.

MARKETING – CONDUCT MARKETING RESEARCH TO ENHANCE PRODUCTS PROFITIBITY. DETERMINE IF PRODUCTS MUST BE REPOSITIONS OR MODIFY THE MARKET. DEVELOP NEW MARKETING SCHEMES.

EMPLOYEES – DETERMINE IF STAFF IS WORKING EFFICIENTLY AND IF TRAINING IS A DETERMINE FACTOR.

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