1. Executive summary
The dynamism of technology has forced businesses to go an extra mile in terms of services provision to their clients. Consumers appreciate services that are appealing and convenient to acquire. For this reason, consumers select businesses that are trendy and prosperous in the market.
ClothesHome intends to offer unique products using qualitative and quantitative mechanisms attractive to consumers. The targeted population is the youths since they desire clothes and products that are recognizable nationally but unavailable in the local markets.
There exist multiple differences between ClothesHome website and other rivals websites in that the company focuses on consumers within small towns in the cities. Through this initiative, the company will have contact relationship with their consumers and offer customized services.
The targeted consumers are aged 16-24, who are involved in physical activities like music and sports. In this regard, teens’ music needs are diverse, which demands a wide variety of clothes and products to substantiate their objectives. On the other hand, some of the common sports participated by these consumers include basketball and skating.
Consequently, ClothesHome will utilize the various sites visited by a majority of the youths to advertise its products. Since this is a vital concept that should be nurtured to yield the returns, most financial providers will be willing to offer finances to the company.
ClothesHome’s mission is to offer the best and trendy clothes and products for the youths in small towns using the internet to reduce operation costs. We endure to attract and retain customers through the provision of services that exceed their expectations.
b) Keys to success
The company’s keys to successes include:
Provision of services that meet consumers’ needs
Effective and continuous marketing
User friendly and trendy website
Enhancement of product quality
2. Company summary
The goal of ClothesHome Company is to become the leading e-commerce company in terms of sales and provision of high quality clothes and services. The company will create an effective service delivery mechanism, which will ensure effective delivery of products to consumers. In addition, the company will develop means to boost the marketing campaign through both online and offline methods.
Jack Johnson and Michael Brown are the co-owners of the company. The co-owners have estimated the whole costs needed to establish the company through analysis of inventory, marketing and establishment of website costs. Through this analysis, they have identified the start-up funds will be sourced from owners and long-term business loans.
ClothesHome will provide their consumers with clothing and other related products that meet their age group needs. Some of the products offered will include T-shirts, jeans, shoes, sweaters, pants, caps, goggles, jewelry, dresses, skirts, shirts and other products. The consideration of changes in the products demanded by consumers will enhance their loyalty to the company.
4. Market analysis summary
A large proportion of clothing and clothing-related products are consumed by the youths. Recent reports depict that youths are the greatest spenders with respect to clothing compared to any other age group. Youths are flexible and fast in terms of culture and changes in market trends. Consequently, the company has to adopt appropriate technology that would ensure the provision of services and goods as anticipated by consumers. This is attributed to the needs of youths, which are mainly entertainment, clothing and technology.
The dynamism of technology has enabled youths to seek for their desired products in a flexible and convenient way. Since clothing and other related goods are some of the main needs of youths, they can find and purchase them using the online ways. Based on the design and functionality of the website, youths can search for their goods and order them for delivery. On the other hand, they could be given directions to the nearest retail stores from their place of residences.
The frequency of youths accessing the internet contributes significantly to marketing plans of the company. In this regard, it is estimated that about three quarters of youths population utilize internet for personal needs and fun. In addition, most households with youths are more likely to be equipped with computer facilities compared to other households.
Over time, there has been an increasing trend of youths utilizing online shopping mechanisms to conduct their purchases. This issue will contribute significantly towards the performance of the company.
a) SWOT analysis
The company is attributed to strengths, weaknesses, opportunities and threats in the course of operation in the market. Some of the strengths depicted by the company include contact with their customers at small markets, unique and quality products, retail stores across at regions of the market and effective management. These strengths will boost the performance of the company, improving its rating in the industry.
There exist weaknesses within the company in a bid to go for online distribution of its products. In this regard, there are multiple challenges experienced from other developed companies. These issues are facilitated by the fact that the internet offers a common platform to all companies for operation. In addition, participating in online market implies that the market will have to comply with the universal standards, which may not serve the needs of the company in addressing individual needs of their consumers.
Regardless of the weaknesses attributable to the company, multiple opportunities exist for the company to exploit. Initially, the company has potential to meet the needs of its customers through the provision of customized services and products. If the company capitalizes on this benefit, it can overcome its rivals that operate in the regional level and offer mainstream products. The other main opportunity is the analysis of the youths needs through exploitation of youths’ creativity and innovation.
Based on the market exploited by ClothesHome, there is a significant amount of threats subjected to it. Primarily, participation in e-commerce involves exposure of the company to multiple internet risks. This can lead to destruction of company’s property or loss of finances.
Consequently, the performance of the company will drastically decline. At the same time, competition experienced in the almost perfect competitive market is paramount to business performance. However, all these challenges and threats will be contained and tailored to the success of the company.
b) Market segmentation
The trend of demographic factors in the US has been changing significantly over the recent past. The growth of both urban and reserve populations has been growing at a similar rate. Literacy level has been witnessed to be increasing over time due to efforts placed to motivate people appreciate academics.
Furthermore, the flexibility and simplicity of accessing the technological facilities has been experienced in all corners of the country. Following these developments, retail stores for the company could be conveniently located in profitable regions where the demand for clothing products is high. Moreover, this issue will lead to expediency in delivery of products to youths, which stimulate the promotion campaign of the products.
Since most malls are located in regional headquarters, the company has an ideal market to offer clothing products to youths at small niches. Additionally, it is critical to realize that the company will be able to provide clothing products as per the taste and preference of the youths from each marketing niche. This will offer an additional competitive advantage to the company unlike the regional companies that offer mainstream products.
ClothesHome will exploit trend displayed by the youths with regard to consumption of clothing products. In this case, the population targeted consists of two main groups that are the teens and the young adults. The needs of the teens are varied since they are still fresh from the school setup. In addition, their demands are dynamic and move with changes in technology.
Consequently, the urge to meet their needs necessitates the company to add substantial features in their website such as links to music and games download sites. Through this initiative, the company will serve their needs while attracting them for future interrelated services. On the other hand, the needs of the young adults vary from the teens.
Their internet usage tends to diversify with time, but they still keep pace with the clothing available in the market. In this case, they are more likely to access the internet and find products they desire conveniently. Furthermore, they are independent in decision-making and are likely to be influence by the design and quality of products offered in the website.
5. Strategy and implementation plan
ClothesHome Company’s strategy is based on exploitation and maximization of web sales in the growing market for youth clothing. This strategy will be realized through improvement of the services offered and marketing campaign.
The promotional campaign will be conducted through advertisement magazines and social websites. Links will be placed in the social sites, which will allow potential and existing customers to access the site. The participation of the company in corporate responsibilities will improve its rating in the minds of consumers.
Through such events, the company representatives should target to convey the policies and products offered by the company, which contributes to its promotional strategies. It is also critical to review the pricing strategies of the company’s products during certain periods of the year. This will serve to improve the level of sales and attract additional consumers to the site of the company.
a) competitive advantage
The company has a competitive edge in terms of provision of customized products to customers at different market niches. These distinctive products will serve the taste and preference of consumers compared to regional distributors. Consequently, consumers would be triggered to check for new products of the company frequently in the site
Another critical element that contributes to its competitive edge is the fact that youth products are influenced to market dynamism and technological changes. This implies that the company will have to be dynamic and adopt the current market needs to flourish in the market. Some of the main factors that can contribute to success of the site also include incorporation of chat, blog and message sections. As a result, consumers would be attached to the services offered by the company.
b) Sales strategy
There would be balanced sales volume for the first two months. After this period, there is a high expectation that it will improve and grow steadily to the optimum point. Based on the amount of resources invested, the anticipated sales would be significantly high.
6. Summary of the web plan
ClothesHome will utilize the website for purchase ordering and catalog services. The ideal software for development of the site is Linux since it is open source software. For this reason, the company would develop an ideal website and reduce its production costs. After the website has been developed, it is critical to consider the design of the website to attract a significant number of customers.
In this regard, the site should be appealing and flexible for consumer utilization. Moreover, there should be research and forecasting tools that will enable the company analyze the attributes of customers and market changes.
7. Personnel summary
Jack Johnson will supervise the daily operations of the company. Michael Brown will spearhead the production and marketing teams. The two leaders have skills and knowledge in their sections acquired over a twenty-year period. Other personnel who will be vital for the performance of the company include operations manager, website manager and processing manager.
8. Financial summary
The funds acquired from the inheritance of Great Aunt Jo of $ 50,000 will be used to begin the business. After the establishment the business, a SBA loan of $ 10,000 and mortgage loan of $ 26,000 will be utilized to support the operations of the business.
The above capital will be vital in the survival of business during the break-even period of the business. After the sales have significantly grown, profit will be used to contain the operations cost of the business. This objective will be realized after duration of one year from the inception date of the business.