Business Plan for a New Business
Business Plan
Business Name: “Foot Junkiez”
Business Type: Sell customized footwear on eBay which people can put any name or image on them.
Business description
Financial Goals
Nonfinancial goals
Market strategies
: PASTEL
Political
Economic
Social
Technological
Environmental
Legal
Marketing Mix
Product strategy
Distribution Strategy
.
Pricing Strategy
Competitive analysis
Foot Junkiez is a customized online footwear store. The area urgently needs an upscale customized shoe shop because the current shops have insufficient selections. Currently, customers that need custom-made footwear must travel long distances to find the right footwear. Foot Junkiez will have an unrivaled, wide-range of different footwear. The size of Foot Junkiez collection is expensive following the different sizes that must be supplied per design. Foot Junkiez has a unique business structure that allows them to have a wide-ranging at the price of only storing one size per design. This is achieved through a unique connection with the supplier so Foot Junkiez can get a client’s needed size within two days. Rush overnight delivery is available at additional price. While some people might not like a shop where footwear cannot be tried out before purchasing/ordering, stylish footwear is different. When it comes to fashionable, awesome looking footwear, appearance is prioritized more than fit.
A diagnosis of Foot Junkiez’s business environment serves as the basis for this business plan. The plan concentrates on the company’s marketing strategies, highlighting ways relating to online avenues to build customer relationships and target specific customer niches.
Business description
Foot Junkiez will be established by a group of entrepreneurs who have a degree in marketing and spent years working in the retail shoe industry. This group has experience in business, as they have operated an online women clothes store before selling the store to a partner. The entrepreneurs, who have been friends since university, have decided to market customized footwear, with a unique but universal appeal. Foot Junkiez reflects the entrepreneurs’ interest for customized footwear. The company’s unique products enable people to put any name or image on them (Brown, 2009). However, Foot Junkiez sells footwear for both men and women, in the coolest color themes like twilight purple, sunrise pink, ocean blue, cactus green, river rock gray and sunset red.
The founding entrepreneurs are currently the managers of foot Junkiez. The company will be based on the web for easy access to clients. The top quality, stylish colors, and customized images and names have gained Foot Junkiez a following among consumers aged between 20 and 45 (Pinson, 2008). Sales are expected to double year after year and Foot Junkiez is currently working to expand its production abilities. Foot Junkiez is also dedicated to giving back to the community by participating in local conservation projects. Therefore, the company would like to develop and finance its environmental projects. This plan will outline how Foot Junkiez plans to enter the market, reach its target market, and fight competition.
Mission and Goals
Foot Junkiez’s mission is to be the top manufacturer and marketer of customized shoes. In addition, Foot Junkiez aims to design programs for protecting the natural environment. During the next five years, Foot Junkiez strives to achieve the following financial and nonfinancial goals:
Financial Goals
I. Obtain funding to flourish production abilities, improve submission, and present two new products.
II. Increase earnings by at least 50% each season.
III. Donate at least $25,000 a season to preservation companies (Luther, 2001).
Nonfinancial goals
I. Enter new geographical markets, such as southwest and Mid-Atlantic States.
II. Develop a successful Website, while keeping strong connections with suppliers of raw materials.
III. Develop its environmental preservation program targeted at helping communities raise money to support themselves
Market strategies
In order for Foot Junkiez to be successful, it will need a functional marketing strategy. This is a plan that will measure the company’s resources and apply it to increase the sales and gain a competitive advantage among the competitors. It involves several market analyzes, which will provide information for the actual strategy. There are many ways of executing a marketing strategy, but this is the most suitable way for this type of a company. A marketing strategy consists of a PESTEL analysis, which concentrates on the external environment scan and a marketing mix, which consists of the four P’s. There will also be an external environment analysis, which contains a competitor analysis. After these analyzes, the actual strategic plan will be made, which will be the final marketing strategy.
External environment analysis: PESTEL
Political
Taxation policy: At the beginning of July 2010, there was a change in the taxation policy, which concerns both B2B and B2C business. The value added tax (VAT) was raised from 22% to 23% (Pinson, 2008). The new change requires that the new VAT will be used in the invoicing and accounting systems. Foot Junkiez will use the 23% VAT straight away, and there is no need for changes in the prices of the products, because the company is still in the planning stage. In the future though, changing taxation policy will be followed, because it has a direct impact on the retail prices of Foot Junkiez.
Economic
Available income: Available income is what you have after all expenses. In the country, despite of the recent recession, the available income rose by 1.9%. Salary income declined with 1%, but social benefits grew, and the taxation declined. It means that the national households have more money for purchases despite the recession. The information is important when starting a business dealing with selling customized products.
Social
Age-composition: In 2008, the number of pensioners exceeded the number of people aged below 20 unlike in previous times. The cruel fact means that the population is aging. This is a negative issue for customized footwear in general because the target market is getting smaller (Luther, 2001).
Technological
Internet: A research conducted by Akamai Technologies, shows that United States is one of the top countries in Internet usage in the world. The number of IP addresses in proportion to the number of people, Finland is the second, tight after Sweden and Norway. The research also shows that the usage of the Internet has spread very widely through the country and the number of Internet attacks and viruses, is quite low (Brown, 2009).
E-Business: Another research points out that the number people using the Internet between the ages 16 — 74 is 82% in United States. Of the 82%, a great 37% had used Internet, within the last three-month to buy something from an online store. According to a research made by Smilehouse, the number of people buying online has been rising despite the recession. They say that the buying behavior of the consumer is going to more web orientated way, and the American businesses should react to this fact. The research shows that 38% of the people buying online, say that they have bought more, compared to the year before. The same study says that bout 54% that the buying has stayed the same, and about 8% say that their online shopping has declined.
Environmental
Climate change: In the United States, both men and women buy customized footwear. Online Footwear retailers always operate round the clock to satisfying the increasing demand. Weather is of no impact to the business as it is based on the Internet. Although global warming is a fact, the effects of it are still very small, at least in this business sector. The online stores are always open from morning throughout at night with sales representatives working round the clock to deliver orders (Brown, 2009). Nowadays, almost everyone wants to wear customized footwear, as they believe it is a source of prestige. Therefore, the weather has only a minor impact on this business.
Legal
The U.S. Consumer bureau provides a list of rules and regulations as it comes to web store marketing and terms of contracts. The consumer protection law in the United States makes sure that the consumer has its right, weather one buys their products from a local convenience store or online.
Foot Junkiez focuses on the redefined online market. The customers will be Baby Boomers, which signify roughly 50% of the discretionary income currently in America. They are looking for practical, non-invasive, and non-pharmaceutical ways to keep in good health as they age. Foot Junkiez can bring these people cutting-edge products along with comfort and service. The long-term goal of Foot Junkiez is to control the customized footwear market and make an icon brand.
Originally, the organization will engage in Web-based marketing during and after the launch to produce awareness of the organization and product information. Because online-based marketing has decreased recently, the costs for marketing have consequently considerably decreased making the expenses more economical. Take part in outside marketing offering common awareness to the public at large and immediate individuals to the organization’s website (Brown, 2009).
Marketing Mix
Product strategy
Foot Junkiez currently offers a range of high-quality footwear products such as sandals, wedges, high heels, sneakers, casual shoes, dress shoes, and sports shoes. None bears any slogan or motto to enable people to put any name or image on them. The company has investigated the most popular shades for its products and given them titles that clients enjoy. They include twilight purple, sunrise pink, ocean blue, cactus green, river rock gray, and sunset red.
Over the next five years, Foot Junkiez plans to expand the production to include personalized apparel items. Customers may choose a logo that suits their wants, like rock climbing for sports. Then they can add a slogan to accompany the logo, like “Move It.” A cap with a motorist might keep the motto, “Spin It” (Longenecker, 2012). Initially, there will be ten logos and five new slogans, but buyers will be allowed to design their slogans and logos. Gradually, some catch logos and slogans would be outdated, and new ones presented. This tactic will keep the idea fresh and avoid it from becoming diluted with too many modifications.
Distribution Strategy
Currently, Foot Junkiez is promoted through online specialized stores. So far, Foot Junkiez has not been distributed through national customized footwear chains. Climate and season tend to determine the sales at specialized stores, which sell more shoes during times such as Christmas. Foot Junkiez acquires much of its information about overall market styles in different geographical areas from its trade organization, Footwear Industry Association. Over the next five years, Foot Junkiez looks to expand distribution to retail online stores nationwide, focusing next on the Southwest and Mid-Atlantic market segments. Foot Junkiez has not yet determined whether it would be beneficial to market through a major nationwide online chain like Bass Pro-Shops as these sites could be considered rivals.
Promotional Strategy.
Foot Junkiez communicates with customers and suppliers about its items in several different ways. Information about Foot Junkiez — the organization and its offerings — is available through the Internet, direct messages, and in individual. The firms’ promotional initiatives also seek to distinguish its items from those of its competitors. In addition, the business intends to sell customized footwear to people who need to create a unique image of themselves. In order to increase sales and market Foot Junkiez, they will organize special events that interest people, involve social participation, and stimulate interest within a specified period. These special events will include:
Conferences
Anniversaries
Celebrations
Bazaars
Ceremonies
Contests
Concerts
Grand openings
Fashion shows
Exhibitions
Festivals
Trade shows and Testimonies
Special events will give Foot Junkiez a strong vehicle to promote their brands, image, and services while generating goodwill to the public. Foot Junkiez will employ these special events to attract buyers and enlighten communities about their policies, purposes, and goals.
The organization depends on personal contact with buyers, through online routes to promote the items in their shops. This direct contact with buyers helps express the Foot Junkiez message, demonstrate the products’ unique features, and develop relationships. Foot Junkiez sales associates visit work round the clock to ensure customer requests and orders are delivered. As distribution increases, Foot Junkiez will change to meet greater demand by increasing sales agents to make sure its online shops are frequently visited.
Public relations and sales promotions currently make up the large part of Foot Junkiez’s marketing technique. Foot Junkiez staff works with event organizers to provide short-term special offers linked with contests and events. In addition, Foot Junkiez is currently working with several trip outfitters to provide Foot Junkiez items on a promotional ground. Because Foot Junkiez is also involved in cause marketing through its participation in environmental conservation programs, excellent public relations have followed.
Pricing Strategy
As previously mentioned in this plan, Foot Junkiez items are priced with the competitors in mind. Foot Junkiez is not concerned with setting high prices to signify prestige or luxury, nor is it trying to achieve the goals of offsetting low costs by selling great quantities of items. Instead, value costing is used so that customers feel comfortable buying new footwear to replace the old, given they might just want the new themes. The costs technique also makes Foot Junkiez items excellent gifts — for birthday parties or graduations. The personalized footwear will sell for $3 to $5 more than the regular Foot Junkiez footwear (Longenecker, 2012).
Competitive analysis
Camileon Footwear is a direct opponent that focuses on the same target audience. They provide shoes that have different inches heels, which are exchangeable, but are not completely custom-made shoes. The chance of losing a heel is at their drawback. An indirect opponent is Rollasoles, who provide non-reusable flat shoes from a vending machine placed in clubs that are convenient and inexpensive, but only focuses on the socialite segment. Foot Junkiez also looks at Kenneth Cole, Guess Shoes, and Michael Kors as indirect competitors. These organizations are at an advantage because they are well established, and have wide product lines that give their customers options (Brown, 2009). However, many of these organizations are very large and not as innovative. They are also disadvantaged since they are not serving the online market.
Foot Junkiez’s greatest strong points are the convenience of the impressive heel that flips in instead of being removed like Camileon footwear, as well as the discounted prices. Weak points of Eclipse are customers’ mistrust in the flip technique of the high heel and low initial product loyalty among customers. Eclipse’s complementary products consist of organizations that provide other transformable shoes such as Victoria Secret. Substitute shows include the indirect competitor, Rollasoles, as well as other shoes like sandals, wedges, and brands of heels.
References
Brown, B.C. (2009). The complete guide to affiliate marketing on the Web: How to use and profit from affiliate marketing programs. Ocala, Fla: Atlantic Pub. Group.
Luther, W.M. (2001). The marketing plan: How to prepare and implement it. New York: AMACOM.
Longenecker, J.G. (2012). Small business management: Launching and growing entrepreneurial ventures. Mason, OH: .
Pinson, L. (2008). Anatomy of a business plan: The step-by-step guide to building your business and securing your company’s future. Tustin, Calif: Out of Your Mind…and Into the Marketplace.
