Business Proposal Cotie Rose GoozĂŠe
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Table of Contents
Executive Summary ………………………………………………………………………….……….3 Company Overview……………………………………………………………………………………8 Market Analysis………………………………………………………………………………………21 Customer Profile………………………………………………………………………..……..22 Target Market…………………………………………………………………………………33 Competitive Analysis……………………………………………………………………….…44 Marketing Environment……………………………………………………………………….47 Marketing Strategy Plan……………………………………………………………………………..71 Promotional Plan………………………………………………………………...……………72 Tactical Plan…………………………………………………………………………………...81 Pricing Plan……………………………………………………………………………………88 Distribution Plan………………………………………………………………………………92 Operations Plan………………………………………………………………………………………95 Inventory Control……………………………………………………………………………..96 Management Functions………………………………………………………………………100 Human Resources…………………………………………………………………………….101 Facilities Maintenance………………………………………………………………………....107 Customer Service……………………………………………………………………………..109 Financial Plan…………………………………………………………………………….………….111 Appendices…………………………………………………………………………………………..125 A, B, C
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Executive Summary
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Mission Statement
Mélangerie’s commitment to providing a carefully curated assortment of unique vintage and new products provides an unparalleled shopping experience for one and all. A perfect balance of old and new, trendy items meet their classic counterparts as once forgotten vintage items are restored and paired with the latest styles of clothing and décor. More than just salespeople, Mélangerie’s highly trained staff is skilled at providing styling services in both wardrobe and interior design. The owner and staff’s shared expertise provides an elevated level of customer service rarely found in small businesses. The store’s prime location in the thriving community-oriented Phinney Ridge and its close vicinity to the Woodland Park Zoo contribute to the boutique’s visibility and solid customer base. The fusion of eclectic items from the past and present provides the perfect shopping escape for women from age 4 to 99. The fast-growing neighborhood of Phinney Ridge and its surrounding communities are home to professionals with discretionary income to be spent on leisure and shopping. As it opens its doors to the public in April of 2014, Mélangerie presents the Seattle area with an original new lifestyle store that offers an unsurpassable shopping experience.
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Funding Funding for Mélangerie will be comprised of a 35% personal contribution, 25% from family contributions, and 40% from Boeing Employee Credit Union financing. Success Factors •
As the popularity of vintage and repurposed clothing, accessories, and décor continues to go strong, Mélangerie stays up to par with its offerings at affordable and competitive pricing by effectively sourcing buying opportunities and being flexible in its merchandise curation.
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The fact that Mélangerie is a small-business allows both the staff and the store to quickly adapt to new markets, and tailor its goods and services as needed. As new trends arise and old trends resurface, the small chain of command between the owner and sales people enables the store to change its product offering and styling services accordingly.
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As big box stores and e-commerce seem to dominate the retail market, Mélangerie offers a personalized shopping experience that is both visually and physically interactive. Customers can physically interact with products, and obtain free style advice and interior design consulting. The overall experience the store’s ambiance and personable staff-customer interaction is a huge advantage that Mélangerie has over large chain stores and websites. The duality of the store’s salespeople as stylists and sales associates is a unique quality that is rarely found in the retail sector.
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The staff’s familiarity with social media as a means of marketing to new and existing customers will contribute to the boutique’s relevance and connection to the consumer. By connecting with customers via Facebook, Instagram, Pinterest, and Twitter, the store will stay relevant and personallyconnected to its customers, wherever they go.
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Mélangerie will immerse itself into the local community and align itself with other business to strengthen its reputation with Phinney Ridge residents and businesses alike. Through business partnerships and participating in local events as well as actively supporting charities, awareness of the boutique’s involvement in the community will be apparent. Being an active member of the Greater Seattle Business Association as well as the Seattle Tourism Association will help the boutique gain industry knowledge as well as increase foot traffic. This relationship will translate to the greater Seattle area and provide a strong network of resources and opportunities.
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Section Summaries Company Overview The company overview includes an organizational chart of the store’s staff and legal services. It explains Mélangerie’s objectives as a company, both short and long term. The section emphasizes the store’s unique approach to selling, in that styling services and interior design services are incorporated into the overall shopping experience. A timeline of scheduled tasks to be completed leading up to the store’s opening in April of 2014 as well as information on the company’s resources and market scope are also located in this section. Market Analysis The area and demographics of the Phinney Ridge neighborhood as they relate to the store’s location and target market are discussed in this section. The demographics and financial status of the immediate area’s residents and how they align with Mélangerie’s business orientation as well over half of the residents currently being working professionals. Nearby competition is addressed as well as the overall marketing environment and how it contributes to the overall success of the boutique’s opening. Marketing Strategy Plan This section describes the product mix of new and used clothing and accessories with corresponding pricing charts. The overall marketing strategy is also discussed including the store’s plan to create a customer aging list and its utilization of social media for promoting business and maintaining long lasting relationships with customers. Also included is a detailed list of marketing tasks to happen 12 months after the store’s opening. Operations Plan Forecasting of trends and the sourcing of products and services for the store are discussed in this section. A detailed list of job descriptions and the hiring process as well as store maintenance also reside in this section. The use of publications such as Women’s Wear Daily and visits to vintage vendors in San Francisco are used to help identify trends and anticipate customer wants. The store’s unique approach to customer service is explained in detail. Financial Plan The store’s financial plan is presented in a detailed format that demonstrates a well-thought out plan for funding and operating the store on a month-by-month basis. 6
Appendices The appendices of this document include the owner’s resume, business card, product photos, retail floor plan, and other supplemental materials regarding the store. There is also an example of the store’s POS cash register system, CashierLive which will be used not only to conduct transactions, but also for employee time clock punches and inventory and stock control. Citations of materials used in developing the business plan are also located in this section.
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Company Overview
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Owner & Organization As a business, Mélangerie offers a unique array of old and new products that have been carefully curated to target a wide audience of customers. New items include blouses, sweaters, jackets, dresses, skirts, pants, jewelry, accessories, and home décor. Vintage and lightly used products will vary depending on what is available and will include clothing, jewelry, accessories, and furniture pieces. With a heavy influence of Parisian style, Mélangerie will also integrate design elements of a turn of the century circus for a whimsical The Mélangerie customer has an appreciation for vintage fashions, art and music. The average customer is well-educated, may or may not have children, and has an appreciation for vintage or vintage inspired fashion and objects. A play on two French words translating to “a mix of things” and “a collection of live animals or a diverse miscellaneous group”, Mélangerie’s name speaks to the community it serves. With its close vicinity to the Woodland Park Zoo, the unconventional boutique provides a curious and unique shopping destination for its neighborhood as well as for all Seattle visitors. Legal Form of Ownership The legal form of ownership of Mélangerie will be a sole proprietorship owned by Cotie Goozee. In the state of Washington, sole proprietorship is defined as one individual or married couple in business alone. 1A sole proprietorship is simple to form and operate, and may enjoy greater flexibility of management and fewer legal controls.
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Sos.wa.gov
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Overall Strategy Timeline of Scheduled Tasks prior to Opening April 2013: Acquire Building Location o
Business owner will meet with realtor and building owner to negotiate terms of the lease and make any improvements necessary to the retail space.
o
Business owner will seek and obtain all necessary city and state licensing and permits necessary to operate a business in the Phinney Ridge location.
May 2013: Interior Consulting/Design o
A meeting will be held with an interior design consultant to discuss on potential design plan for the chosen retail space.
o
Appropriate fixtures, materials, and tools will be ordered and obtained so construction may begin.
June/July 2013: •
Begin Construction o
Walls will be painted according to the color palette agreed on with interior designer.
o
Large scale fixtures will be assembled and prepped for merchandise presentation.
August 2013: •
Vendor Relations o
Research and communication with desired vendors via phone and e-mail.
o
Owner will contact vendors from trade shows and place product orders for first offering of store’s merchandise.
o
POS register and computer software will be ordered to ensure delivery before grand opening.
September 2013: •
Floor Sets o
Wall décor and display pieces will be set up and installed.
o
Office area and stock room will be set up and organized.
October 2013: 11
•
Receive Merchandise o
All merchandise will be checked in and recorded into a shipment receiving log.
o
The appropriate amounts of merchandise will merchandised on the selling floor, and the extra inventory will be put in back stock to replenish when displayed goods are sold.
November/December 2013: •
Recruit Employees o
Owner will seek one full-time employee as well as two part-time employees based on personal recommendations as well as through job ad postings.
o
Qualifications of potential employees will be evaluated and hiring decisions will be made.
January 2014: •
Train Employees o
Employees will be trained on POS cash register and software
February 2014: •
Digital Advertising o
Digital advertising efforts such as ads on Pandora and Facebook banners will commence and focus on the Grand Opening event.
March 2014: •
Soft Opening o
Mélangerie will remove the butcher paper from its windows and open its doors to the public in late March and begin conducting business.
o
Contact information of customers attending the soft opening will be acquired and they will be invited to attend the Grand Opening event and thanked for their business.
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Advertising and Promotion o
Advertising of the store’s opening will be done through the selected channels including ads in The Stranger and a press release in the Seattle Times.
April 2014: •
Website and Blog Launch o
The store’s website will go live just before the Grand Opening so that customers may visit it after they visit the store. 12
o
The blog will feature sneak peeks of merchandise and displays prior to the Grand Opening to spark interest and entice them to attend the store’s opening.
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Grand Opening o
The store will hold a Grand Opening celebration and sale event the same night as a community art walk in mid-April of 2014. Customers will be treated to refreshments, goodie bags, and entertained by local musicians.
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Company Objectives Short Term Objectives (1 Year after Opening) •
Develop strong and sustainable relationships with vendors. o
In an effort to ensure merchandise orders are fulfilled, the owner and staff at Mélangerie will work professionally and with a positive attitude in all interactions with vendors to build a strong and lasting business relationship.
o
Mélangerie will send hand-written thank-you cards and call vendors when merchandise is received or is selling well at the boutique to show gratitude and appreciation for the vendor’s accommodation.
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By developing terms of payment and making payments promptly and on time, Mélangerie can potentially earn discounts on future orders with vendors by demonstrating dependability and consistency.
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Establish a strong presence and solid reputation in the immediate Phinney Ridge community. o
To demonstrate Mélangerie’s commitment to its community, the boutique will hold charitable events to give back when possible. The boutique’s early expression of its goodwill and philanthropic efforts will help lay the foundation for Mélangerie’s longterm relationship with the community.
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The boutique will align itself with fellow businesses in the area and actively participate in community events.
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The owner and staff will make efforts to know their customers on a personal level. By developing a strong relationship with Phinnney Ridge residents and the surrounding population, Mélangerie will gain customer loyalty and develop a reliable support system of clientele.
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Begin to sell interior design and style consulting services. o
By hiring knowledgeable and style-minded employees, the owner and staff members will collaboratively offer home and wardrobe styling services that will be offered on and off-site.
o
By selling tangible goods as well as services, Mélangerie will be able to generate additional revenue with low operational costs.
o
The availability of wardrobe styling and home décor services in a small-scale boutique will give a unique quality to the business, and therefore further set Mélangerie apart from its competition. While most retailers offer strictly products or strictly services, Mélangerie’s fusion of goods and services will be a new and prosperous facet of the business as a whole.
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Long Term (3-5 Years after Opening) •
Become one of the top 10 boutiques in Seattle. o
Through the active use of reaching out to customers through social media, Mélangerie will generate traffic and spread awareness of the boutique to drive business.
o
The store will participate in the Best of Western Washington business competition to gain statewide attention.
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It is important to differentiate Mélangerie’s unique style of boutique and product offerings from other more conventional boutiques to generate intrigue and interest and drive foot traffic.
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Expand business and product offerings to the menswear market. o
Mélangerie will begin a digital marketing campaign to generate buzz and spread word about expanding the store to include men’s clothing and furnishings.
o
Research current men’s trends and buying patterns to be able to provide a relevant and attractive selection of goods to the male consumer.
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Many men in the Seattle area are investing money into their wardrobes or enjoy spending their disposable income on clothing that is unique and reflects their personal style.
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Begin selling boutique’s products online. o
Mélangerie will develop an effective and easy-to-use system of selling selected products through its website.
o
In a time when many people make the majority of their purchases online, Mélangerie will join the e-commerce world and be able to connect with consumers worldwide.
o
Offering products online will provide convenience to existing as well as new customers, and provide an additional channel for consumers anywhere to stay updated with the store’s offerings.
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Company Resources Management Duties As the owner and general manager of Mélangerie, Cotie Goozee will oversee all personnel operations. She will be in charge of hiring employees, payroll, marketing, buying and budgeting. She will be the direct line of communication between all employees, the attorney, and the accountant. The attorney will be responsible for all legal documentation, while the accountant will track financial records and the store’s income. The assistant manager will aid in scheduling efforts and general maintenance of the store. They will also hold the position of mentor to the two sales associates dealing with fashion styling and accessories. The assistant buyer who also has expertise in home décor will help Cotie select and install merchandise, as well as manage the home décor and furnishings inventory. Their role will also involve training and overseeing the home décor specialist sales associate. Financial Resources Mélangerie ‘s financial resources will consist of 30% personal funding, 30% contributed by family members, and 40% from Boeing Employees Credit Union.
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Market Scope The location of Mélangerie is suitable for a business of its kind due to the nature of the community’s residents to have adequate to high income levels, as well as the high frequency of traffic that goes through the area. Mélangerie also has a competitive advantage in the area as it is the only type of boutique that offers a mix of both new and vintage products in the immediate vicinity. The actual building that hosts Mélangerie is relatively new and has an upscale look. The building’s location on Greenwood Avenue offers a high rate of exposure and great visibility to residents, commuters, and visitors of the area. With most of the women in the Phinney Ridge area being in the early to mid-30s, it is likely that they have well-established lives with dependable sources of income that allow them to shop for clothing and home décor as they please. With 96% of its residents completing high school as well as some form of higher education, Phinney Ridge residents are an informed and savvy group of people Whether they are working professionals, stay-at-home mothers or business owners themselves, their personal appearance as well as their home’s are important to them. While most women’s retailers in the area traditionally offer strictly new products or strictly vintage items, Mélangerie fuses the best of both categories so the consumer may mix and match the two interchangeably. Also the combination of fashion, accessories, and home décor offers the customer an allencompassing shopping experience in which there are products that are applicable to every facet of their life. This combination of product selection encourages the customer to shop for themselves as well as for others since there is something for everyone. Mélangerie addresses a new generation of consumers who seek the latest trends but also seek out one-of-a-kind vintage finds, a market that has since been underserved.
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Basic Orientation Mélangerie will base its business strategy around the gross profit margin concept. Rather than looking at the number of products going out the door, the focus will be on a higher markup so that profit is generated each time an item is sold. By marking products up at a higher margin, Mélangerie is still able to make a profit even when items are discounted or put on sale because they are still being sold for a price higher than the original cost of goods. Mélangerie’s method of selling will be product oriented. The boutique’s products will be presented to the customer through the use of enticing visual displays and the emphasis of quality and uniqueness. All marketing and advertising efforts will focus on the store’s products and the lifestyle associated with the products. The webpage and social media outlets will also emphasize the uniqueness of the store’s array of product offerings through the use of product photographs.
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Anticipated Problems •
Another women’s boutique opens up in close vicinity, with comparably similar product offering. o
In the event that a similarly styled women’s boutique opened up in the Phinney Ridge neighborhood, Mélangerie would need to take certain actions to ensure that the store’s style and product offering have not been compromised and still remain relevant, unique, and attractive to its customers. Through the active communication between all staff members as well as listening to and addressing customer needs, Mélangerie will make any necessary adjustments to keep its business differentiated from any others.
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The nation’s economy does not grow stronger or worsens. o
In times of economic uncertainty, it can be difficult for small businesses, especially those that have been newly created, to flourish or break even. In order to combat this issue, Mélangerie would reevaluate its purchasing and staffing costs and make needed adjustments to provide pricing that is appropriate to the economic downturn. The working hours of staff may be reduced slightly, and Mélangerie would purchase more secondhand merchandise than new merchandise to reduce buying costs.
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E-commerce drives business away from brick and mortar stores. o
As many consumers use the internet for price comparisons or to find unique one-of-a-kind products, business can be driven away from brick-and-mortar stores. With the ultimate goal to sell the boutiques products through an e-commerce site, Mélangerie will join the worldwide marketplace by offering its products to be sold over the internet.
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Tourists do not visit Phinney Ridge area to shop. o
While the Woodland Park Zoo is a popular tourist destination when visiting Seattle, it is never guaranteed that they will also make their way to the actual Phinney Ridge neighborhood to spend their leisure time. Through associating itself with Seattle tourism associations such as VisitSeattle.org and actively advertising during peak tourism seasons, Mélangerie will strive to draw in visitors to the area to generate foot traffic and drive business.
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Younger generation of consumers does not care for vintage/vintage inspired styles. o
Though the vintage business has recently been very popular and relevant to people of all ages, it is possible that it may not remain relevant in an age where technology and new products are developed and produced so rapidly. Should the market shy away from the vintage/vintage-inspired business, Mélangerie would reevaluate its product offerings and
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adjust its overall direction so that it still holds the same values, but includes products that are relevant and desired by the new consumer.
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Market Analysis
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Customer Profile Demographics Age & Race The statistics below are reflective of the most recent data gathered based on residents of zip code 98103, also known as the Phinney Ridge neighborhood of Seattle. According to ZipSkinny.com, a reliable source of demographic information specific to each US zip code, there is a slightly higher concentration on female residents than male. This makes the location a viable place to locate a mostly female-focused clothing and home boutique. The median age of male residents is 33.3 years old while the median age of female residents is slightly higher at 34.1 years.
(ZipSkinny.com) The Phinney Ridge neighborhood is made up of mostly white residents, with Asian and Hispanic being the next most common races of the area. While race does not directly affect the success of a business in a given area, it may be beneficial to have a diverse population in the area in order to reach a broader audience of consumers. Occupation According to CityMelt.com, a database of quantitative data from over 50,000 cities in the United States, the most common occupation for both male and female residents falls into the management and professional category. 54% of male and 57.5% of female residents of Phinney Ridge work in this industry. The next most common occupation for the residents is either to work in sales or an office occupation, followed by jobs in the service industry.
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CityMelt.com With well over half of the residents working at professional jobs, Phinney Ridge demonstrates a stable population of workers who have a steady income ranging from moderate to high, making them ideal consumers. The income statistics are directly reflective of the occupations of the residents of 98103. 20.6% of the residents make $50,000-$74,999, 12.3% earn $75,000-$99,999, 11.1% earn $100,000-$149,000, and 5.1% make $150,000 or more per year.
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ZipSkinny.com Cumulatively, 49.1% earn a substantial income that allows the possibility of discretionary income to be spent on products and entertainment. Education The Phinney Ridge neighborhood is home to a highly educated population. At 96%, nearly the entire population of residents has completed high school, or some other form of higher education.
ZipSkinny.com The high level of educated individuals living in the area can be related to the income levels of the Phinney Ridge neighborhood. According to the Huffington Post, there is a direct correlation between obtaining a higher education and increased income.
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HuffingtonPost.com
As the table above demonstrates, yearly earnings increase respectively with the level of education achieved, with the exception of the doctorate degree. Since the Phinney Ridge neighborhood is home to a large percentage of people who have pursued higher education, it is likely that their incomes are reflective of their academic achievements. Family Size The number of people per household in the Phinney Ridge neighborhood varies, with single occupancy and double occupancy being the most frequently occurring living situation. Size of family households: 2 Persons
3 Persons
4 Persons
5 Persons
6 Persons
7 Persons
4,943
2,789
1,705
845
603
285
Size of nonfamily households: 1 Person
2 Persons
3 Persons
4 Persons
5 Persons
7 Persons
7+ Persons
10,921
3,916
994
602
514
1367
1985 (City-Data.com)
Most family households contain two residents, making it likely that the two people are a married or nonmarried couple. Most non-family households contain residents who live on their own, at 10,921 of residents.
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Homeowners and Renters The area is home to a mixture of people and families who are both home renters and home owners. Phinney Ridge contains 27,448 houses and condos and 13,507 renter-occupied apartments. 53% of the residents are renters, compared to the 36% of people renting in all of Washington state. The high level of residents who rent in the area is most likely due to the concentrated population and the primarily urban offering of housing options. Tourism & Foot Traffic According to the Seattle Visitor’s Bureau, the city is host to a large number of tourists and takes in a significant amount of income and tax dollars each year. “Some 9.9 million visitors spend $5.9 billion in Seattle and King County annually, contributing $463 million in state and local tax revenues. Direct visitor spending benefits hotels, retailers, restaurants, attractions, transportation services and other businesses, and supports jobs for more than 51,000 people in the Seattle region.” (VisitSeattle.org). These statistics support the fact that the Seattle area has a strong economic flow generated from tourism and visitors. Green Lake Park and the Woodland Park Zoo, as well as the infamous dive diner Beth’s Café are all helpful generators of tourism and foot traffic throughout the Phinney Ridge area.
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Psychographics Free time Activities The following brands and products are the preferred choices for the average Mélangerie customer, based on their lifestyle and income capacity. Magazines
Books
Movies
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Women’s Health
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Eat Pray Love
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Vogue
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The Great Gatsby
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InStyle
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The Girl with the
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Bazaar
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Real Simple
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Dragon Tattoo • •
Television Shows How to Marry a
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Mad Men
Millionaire
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Gossip Girl
Breakfast at
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Sex & The City
Tiffany’s
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Project Runway
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House Hunters
The Hunger
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Gone with the Wind
Games
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Dirty Dancing
Pride and
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Marie Antoinette
International
Prejudice Electronics
Websites
Music
Foods
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iPad
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Pinterest.com
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Sia
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Sushi
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iPhone
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Facebook.com
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Lana del Rey
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Curry
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Bose Speakers
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Etsy.com
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The Black Keys
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Pasta
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Chi Flatiron
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NastyGal.com
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Tom Petty
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Soft Cheeses
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MacBook
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Google.com
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The Rolling Stones
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Artichokes
Cosmetics
Restaurants
Stores
Brands
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MAC
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Bastille
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Anthropologie
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Bare Escentuals
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Matador
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Free People
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Chanel
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Anthony’s
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All Saints
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Kate Spade
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Laura Mercier
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Green Lake Bar &
Spitalfields
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Yves Saint
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Smashbox •
Grill
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Nordstrom
Wasabi Bistro
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Urban Outfitters
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Marc by Marc Jacobs
Laurent •
Tory Burch
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Chanel
While the customer primarily purchases new merchandise and products, their movie, TV, and style choices demonstrate a love for vintage clothing and décor as well. Old Hollywood movies, the show Mad Men, Pinterest.com, and Yves Saint Laurent are all examples of activities reflecting the customer’s love for vintage and vintage-inspired pieces of clothing and furnishings.
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“Day in the Life” Weekday – Wednesday A typical customer of Mélangerie boutique is a 32 year-old professional female resident of the Phinney Ridge neighborhood, 98103. Her day starts to the sound of her Hello Kitty beeping. She arises from bed and walks to the kitchen to start the Starbucks Barista coffee maker. While the coffee brews she leashes up her border collie-golden retriever mix dog to take it for a quick walk around the neighborhood. After bringing the dog back in she jumps in the shower. She lathers her hair with Pureology vegan shampoo and conditioner. She uses Skintimate shaving cream and her Venus razor as well as Tone body wash to clean herself. After using her ceramic Hot Tools blow dryer and Chi flat-iron, she styles her hair with Kenra Hairspray. After putting on her undergarments, black Vince Camuto dress pants, Diane von Furstenberg blouse, and a blazer from Anthropologie, she drinks her coffee and eats Kashi cereal while she checks her Gmail e-mail account. She then applies her M.A.C. foundation, and takes extra time to carefully swipe on her Smashbox eyeliner. After she is ready she picks up her North Face jacket and Timbuk2 bag and heads out the door. She walks four blocks to the bus stop, and waits for its arrival. After 6 minutes the bus comes, she swipes her ORCA card and takes a seat near the middle of the bus. She listens to music using Dr. Dre Beats headphones on her iPhone for the duration of the bus ride. She exits the bus, walks a few blocks, and arrives at her office building. After settling in to her desk and checking her work e-mails, she compiles a to-do list for the day in her Kate Spade day planner. During mid-day, she walks to local bakery Macrina for lunch with her iPad in hand to browse the internet for fun while she eats. She surfs around on Facebook, Pinterest, and Tumblr while she enjoys her sandwich and iced tea. She then returns to work to finish the duration of her shift. When she leaves work, she plugs in her Dr. Dre headphones into her iPhone, and walks to the bus stop. The bus arrives almost immediately, and she looks out the window at Elephant Car Wash and Gasworks Park on her ride home. The woman exits the bus two stops early to purchase some dinner groceries at natural food store PCC. After arriving home, she feeds the dog Natural Choice dog food, and changes in to Zella yoga pants and an Urban Outfitters t-shirt. She leisurely prepares dinner for herself and boyfriend, all the while sipping a small glass of Kendall Jackson Chardonnay. After dinner, she talks on her iPhone with her mother. After the conversation is concluded, she starts a load of laundry in her LG washer and dryer unit using Seventh Generation detergent. Her and her boyfriend cuddle up on their Restoration Hardware couch and watch the Daily Show & Colbert Report on Comedy Central. Commercial breaks allow for chit chat, snuggling, and some internet browsing on her Macbook Pro, where she pokes around on Etsy.com as well as Pinterest again. She gets up from the couch and puts the laundry in the dryer and boils water to makes some Twinings Herbal tea. After setting her alarm for the morning, she proceeds to crawl into her IKEA bed with her book Water for Elephants. Exhausted from her workday, she drifts off to sleep almost instantly.
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Weekend – Saturday On Saturday she wakes up feeling well-rested without the aid of an alarm clock. After dressing in her plush Victoria’s Secret bathrobe, she saunters to the kitchen and brews Vivace Italian roast coffee. She then makes her way to the bathroom where she puts her hair up in an H&M headband and jumps in the shower. She washes with her usual Tone body wash and Skintimate foaming shave gel. After drying off with her Pottery Barn towels, she selects a Free People skirt, Nordstrom tank top and an Anthropologie sweater to wear. She laces up some Steve Madden sandals and leashes up the dog for a morning walk. After taking the dog back inside, she heads to brunch with friends at Toulouse Petit Kitchen in the Queen Anne neighborhood. She orders a Domaine Ste. Michele mimosa and eggs benedict with local organic ham and eggs for breakfast. After wrapping up brunch, she picks up her boyfriend and their dog in her Volkswagen Jetta and together they visit the Ballard Farmer’s Market. They then make their way to Green Lake Park where they walk the dog, play Frisbee, and lay on a quilt from Pier 1 Imports. After their leisurely afternoon, it is time to attend happy hour at Green Lake Bar & Grill, where they can sit outside on the patio with the dog. They share a chicken quesadilla and some fries while she drinks a Absolut Peach Vodka Lemonade and he sips a Bounday Bay IPA. Upon returning home, they turn on The Black Keys on their Bose stereo system and change into dressier outfits. She puts on a lacey Jessica Simpson coral dress and he puts on a Burberry button-up shirt and Citizens of Humanity jeans. They pop open a bottle of 14 hands cabernet and call some of their closest friends over. After their friends arrive, everybody converses and drinks together and snack on brie cheese and sesame crackers. The group calls two cabs to take them to Capitol Hill. Cabs arrive and everybody piles in. They arrive at Pike street where most of their favorite bars are located. The group stands in a brief line to gain entrance into Barca. The woman has another Absolut Vodka drink and fraternizes with friends. After finishing her drink she dances with her boyfriend and their group.When last-call is announced, the group exits the bar and the woman and her boyfriend call a cab to head home. After arriving at home, she washes her face with Neutrogena Exfoliating Scrub and brushes her teeth with Crest Whitening toothpaste. It is then time to change into LuluLemon sweatpants and a vintage Rolling Stones t-shirt and retire to bed.
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Prizm NE Prizm Segmentation System is an online database of consumer market information that provides valuable demographic and lifestyle information based on populations of an area. According to Prizm, the following three categories of consumers are residents of Phinney Ridge, the proposed location for Menagerie boutique. Bohemian Mix The Bohemian mix make up 1.76% of total US households and have a median income of around $54,098. Individuals of the Bohemian mix are “an ethnically diverse, progressive mix of young singles, couples, and families ranging from students to professionals. In their funky row houses and apartments, Bohemian Mixers are the early adopters who are quick to check out the latest movie, nightclub, laptop, and microbrew,” (PRIZM). This group of the population is mostly made up of college graduates who rent their living spaces and make an upper-mid income. This ethnically diverse group shops at Express, watches foreign films, reads Details magazine, watches soccer on TV, and likes to drive Volkswagens. Money & Brains Members of the Money & Brains Prizm category are generally affluent empty nesters that have a median household income of about $88,813, making up 1.93% of the total US population. These urban residents range from 45-64 years of age and most of them are homeowners and have completed graduate degrees or more. They are loyal Nordstrom customers, contribute to NPR, read the Sunday newspaper, and like to drive Jaguars. Young Digerati The Young Digerati residents of this area are tech savvy individuals that live in upscale desirable neighborhoods. They are armed with a graduate degree at minimum and range from age 25-44. “Young Digerati communities are typically filled with trendy apartments and condos, fitness clubs and clothing boutiques, casual restaurants and all types of bars--from juice to coffee to microbrew,” (Prizm). This segment of residents make up about 1.2% of US households and have a median income of about $85,599. The Young Digerati order from Expedia.com, enjoy water skiing, read The Economist, watch IFC, and like to drive Audi’s.
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VALS The Phinney Ridge neighborhood of Seattle is home to an endless variety of different types of consumers. According to VALS online consumer segmentation resource which provides accurate consumer research and consulting services, there are three main types of consumers that populate this area. The first consumer category is the “Experiencer”. Individuals from this category are not afraid to take risks, they are highly social, and they love the outdoors and exercising. They like to look good while they are doing their favorite activities so they spend a significant amount of their money on clothing and entertainment. This type of consumer Another type of consumer that frequents the Phinney Ridge neighborhood is the “Innovator ”. Innovators are very confident successful people that network and exemplify great leadership skills. They spend money on luxury items and image is very important to them. While they like the finer things in life, they are more about expressing themselves than buying to show status and power. A third type of consumer that dwells in the Phinney Ridge neighborhood is the Thinker. Thinkers are well educated, mature, and confident. While they are very knowledgable and practical, they are still open to new ideas and experiences. Their incomes are substantial and gives them access to a wide arrange of product choices. “they look for durability, functionality, and value in the products that they buy,” (VALS). Thinkers are a great consumer group to target because they have the potential to be loyal lifelong customers if approached correctly.
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Buying Motivators Abraham Maslow created a pyramid demonstrating each human’s hierarchy of needs in pursuit of self-actualizing fulfillment as the end result. His hierarchy is designed in such a way that one cannot proceed to the next category of needs until the preceding category has been fulfilled. Once our basic physiological needs are met and we feel safe, we begin to feel comfortable and are able to seek and establish relationships, whether they are with friends, family, or significant others. While a clothing and home décor boutique does provide some of the things necessary in the two basic stages of physiological and safety needs, survival is the main objective rather than fashion and visual appeal. Appearances begin to come into play in the belonging stage of the hierarchy. We may dress ourselves a certain way to appear attractive while interacting with desirable acquaintances. We may also dress similarly to our friends and family to emphasize solidarity and belonging. Clothing is not the only representation of ourselves that we present to others; the places we live and dwell in are also considered a reflection of who we are as people. It is in the belonging/love stage of needs in which humans begin to seek approval and acceptance from others. This is also the stage when motivation for buying becomes more personal rather than a necessity.
“Every person is capable and has the desire to move up the hierarchy toward a level of self-actualization. Unfortunately, progress is often disrupted by failure to meet lower level needs.” (SimplyPsychology). Material possessions as well as fashionable clothing are ways of demonstrating achievement, mastery, and gaining recognition and respect from peers and others. The Self-Esteem and Self-Actualization stages of fulfillment are when the most purchasing and buying decisions occur, because all other needs are satisfied and more time, focus, and energy can be put toward the consumer’s selection process.
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Target Market Market Location – Phinney Ridge 98103 The map below shows the entire Phinney Ridge neighborhood of Seattle. It is conveniently nestled between the neighborhoods of Fremont, Ballard, and Green Lake. Phinney Ridge is home to the Woodland Park zoo, and shares a neighborhood border with scenic Green Lake.
Google Maps
The proposed location of MĂŠlangerie Boutique would be at 7720 Greenwood Avenue North. The retail space is at street level, and at the bottom of an upscale condominium complex.
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Market History HistoryLink.org’s summary of the Phinney Ridge Neighborhood: Seattle's Phinney neighborhood lies mostly on a high ridge that rises from the western shore of Green Lake. It owes its name to Guy Phinney (1852-1893), a wealthy immigrant from Nova Scotia who developed a private estate that became Woodland Park (later Woodland Park Zoo). The neighborhood is largely a bedroom community that on the east spills off the spine of Phinney Ridge down to Green Lake's shores, and on the west runs to the edge of Ballard at 8th Avenue NW. The ice age moraine runs north from N 50th Street and peters out somewhere south of N 80th Street, where Phinney and Greenwood community residents disagree over sovereign rights. Phinney residents also lay claim to Woodland Park Zoo and its four-footed residents, but this birthright is contested by the Wallingford and Green Lake neighborhoods. Trees and a Trolley By 1879, the four square miles of land encapsulating Green Lake was in the hands of speculators and a few homesteaders. The population of the entire area was in the hundreds. With the arrival of the electric trolley in 1890, growth of the area began in earnest, especially along Green Lake's eastern shoreline. In 1900, most of Phinney Ridge was still forested. But within three years the eastern slope had surrendered its Doug-fir and cedar to Parker's saw mill at the east end of Green Lake, and 1,500 residents now lived on the balding ridge above the lake's western shore. That thousands more did not call the high slope home may be due to the electric trolley line that ran up the other side of the lake (the east side) and stopped at the pleasure resort and picnic grounds at the northwest corner, near today's Bathhouse Theater. In contrast to the sparsely settled Phinney Ridge on the west, east Green Lake was home to nearly 10,000 residents.The pattern of growth of the Phinney neighborhood thus followed the laying of rails for the electric trolley lines in the area. By 1900, nearly all the land in the future Green Lake, Phinney, and Greenwood neighborhoods was platted. But development on the western slope of the ridge (facing Ballard) lagged behind the eastern slope (facing the lake). To Entice the Homebuyer... In 1902, the Green Lake line was extended completely around Green Lake and passed through Woodland Park on its return downtown. In addition to providing one of the most scenic and pastoral trolley routes in the city, bringing weekend and holiday sightseers to the area, the Green Lake line now brought potential property and home buyers to realtors C. D. Hillman and Wiliam F. 34
Hanbury on the west side of the lake. Guy Phinney himself helped bring people to the hinterlands north of Fremont by running a private trolley line from Fremont to the entrance of his Woodlands estate (Woodland Park), located at the south end of Phinney Ridge. This line was active from 1890 to 1897. Getting There and Living There The commercial district of Phinney and Greenwood paralleled the tracks on both sides of the right of way. By the 1930s, the business district of Greenwood was well established, and many of the brick and mortar buildings of the period remain in use today just beyond the Phinney neighborhood's northern reach. Although residential development continued to concentrate on the eastern slope of the ridge and on the crest of the ridge, by 1912 a new track now dog-legged along 6th Avenue NW and 5th Avenue NW toward a W 65th Street terminus. With this addition, access to the western slopes of Phinney ridge was complete and real estate lots began to sell. Later, with the demand for public transportation on the rise, the line was moved west onto 8th Avenue NW, which routed the trolley from Leary Way to the city line along a single broad, straight street. Bungalows in a Boom Town After the turn of the century, along with the construction of bungalows and box houses came families seeking fresh air and elbow room that was increasingly difficult to find in a Seattle that found itself a boom town in the wake of the Klondike gold rush of 1897 and after. The presence of families meant school children. An Internationally Acclaimed Neighborhood Zoo But it is the Woodland Park Zoo that draws people to the area. The hoofed beasts that graze the Savannah and the big cats help draw more than a million visitors to the neighborhood each year. Its newest resident as of November 2000, Hansa, the baby Asian elephant born at the zoo, has trumpeted her way into the hearts of Seattleites who arrive in droves to delight in her child-like antics. With its natural vistas of mountains and lakes, a well-established community center that produces a warm community spirit, and an award winning animal habitat, the Phinney neighborhood, with its 25,000 residents, has long been one of the most appealing neighborhoods in the city.
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Geographic Analysis A part of King County, Phinney Ridge is a populated urban area of the northern part of Seattle and sits at a latitude of 47.67s and longitude of -122.361.
YellowMaps.com
Frequented nearby areas include Highway 99/Aurora Ave., Green Lake, and the Woodland Park Zoo. Highway 99/Aurora Ave. is a popular alternative route to Intersate-5, and also hosts the large Aurora bridge that is the gateway from North Seattle to downtown. Green Lake Park is a favorite area of locals and visitors alike. In a profile of the park on Seattle’s Parks and Recreation website, the many attributes of Green Lake Park are discussed: “Its expanse of water and green space in the center of a dense urban neighborhood draws 36
thousands of people daily from all over the city. The park serves as a natural preserve for hundreds of species of trees and plants, as well as numerous birds and waterfowl. The newly reconstructed 2.8-mile path around the lake provides a perfect recreational spot for runners, bikers, skaters and walkers.” (Seattle.gov). In an urbanized area, Green Lake Park is a refreshing and peaceful destination that reconnects the city of Seattle with nature with its serene waterside greenery. Because of its relatively flat geographic landscape, Phinney Ridge is an ideal neighborhood to travel by bicycle or walking. According to NeighborhoodScout.com, 3.8% of the area’s residents commute by bicycle to work on a daily basis. “This neighborhood has more bicycle commuters than 98.5% of all neighborhoods in the U.S.” (NeighborhoodScout.com). The ease of navigation by bicycle or foot increases the likelihood of foot traffic for nearby businesses. Many residents also utilize public transportation in the area. “…more commuters here take the bus to work (17.6% ride the bus) than 95.5% of all American neighborhoods,” (NeighborhoodScout.org). The fact that Phinney Ridge provides adequate forms of public transportation makes it not only a desirable place to live but also an easily navigable area.
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Climate The city of Seattle, Washington is home to a varying yearlong climate that generally remains fairly mild. The annual average temperature of Seattle is 52.8 ° .
Climate-Zone.com While the climate remains fairly mild throughout the year, there is a large amount of rainfall, totaling at 38 inches per year. However, Mélangerie may use the drizzly weather to its advantage by providing a warm and inviting atmosphere that serves as a great alternative to outdoor activities canceled by the rain, such as visiting Green Lake or the Woodland Park Zoo. On the contrary, warm sunny days may generate more pedestrian and bicycle traffic which may increase sales and spread awareness of the boutique’s existence. Despite the Northwest’s reputation for constantly having rainy weather, the temperatures and rainfall of the area are mild in comparison with other areas. According to Seattle’s Convention and Visitor’s Bureau. “It’s been said that Seattleites will exaggerate about how much it rains in order to deter visitors from moving to their enchanting city. In reality, Seattle gets less rain than New York, Miami and dozens of other U.S. cities.”(VisitSeattle.org). While the city does get a significant amount of rainfall each year, it does not detract from the attractive features of the area.
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Market Scope The surrounding zip codes of 98125, 98115, and 98105 are compared to 98103. Zip
Population Population Median
Code
Increase
Age
Cost of
Median
Unemployment
Average
Living
Home Cost
Rate
Commute Time
(Since
(Compared
2000)
to U.S. Average)
98103
43,519
6%
38.7
+52%
$443,100
7.7%
26 mins.
98125
38,043
9%
41.3
+36%
$342,800
7.7%
30 mins.
98115
45,349
4%
41.2
+53.3%
$444,300
7.7%
28 mins.
98105
38,878
5%
30
+75.6
$589,900
7.7%
25 mins
Of its surrounding zip codes, Phinney Ridge (98103) has the second highest population. It is also the second most rapidly growing population at 6% in the last 12 years. Phinney Ridge has a slightly lower median age than neighboring zip codes, however 98105 had an especially low median age of 30. Phinney Ridge’s unemployment was consistent with the other zip codes, making them all below the U.S. average.
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Market Size and Growth Rate According to the online geographic database PeakBagger.com’s most recent compilation of U.S. city population info, in 2010 Seattle’s surrounding metropolitan population ranked at the 14th largest in the whole United States. The city of Seattle as a whole has experienced a growth rate of 5.9% since 2000, (BestPlaces.net).
PeakBagger.com The tables above show Seattle’s ranking in comparison to other metropolitan areas in regards to population. Though Seattle is moving down the list, it still remains in the top 15 cities with the highest surrounding populations. The Phinney Ridge neighborhood of Seattle specifically currently has a population of 43,519 people, (BestPlaces.net). The popular neighborhood includes a high number of family households, with 31.17% of its population currently married and the average household size being 1.96. (BestPlaces.net).
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Attractive features of this Market •
Bus Line o
With its close proximity to Aurora Ave./Highway 99, a popular commuter and alternate Interstae-5 route, Seattle’s King County Metro has extensive bus line transportation available to the Phinney Ridge neighborhood. This is a great advantage because it makes Mélangerie easily accessible to its surrounding neighborhoods and beyond.
King County Metro
•
Tourism o
The surrounding vicinity to the boutique’s location positions it nearby high traffic tourism areas. The close location of the Woodland Park Zoo consistently generates a flood of out-oftown visitors and tourists each year. According to their website, “the zoo serves a large regional audience and is a major Washington state attraction, drawing more than a million visitors annually. In 2011, more than 1.09 million guests visted the zoo to learn about the important connections between plants, animals, habitats, and people (peak months are May through September),” (Zoo.org).
•
Green Building o
Built in 2002, the dual condominium/retail building was easily updated to Green standards compliant with the United States Green Building Council’s requirements LEED program. The building has employed energy efficient and water conserving installations to make it a sustainable retail space with a minimal impact on the environment.
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•
Restaurants o
The most frequented streets of this area include Greenwood Ave., Phinney Ave, 65th Street, and 70th Street. These streets offer an eclectic mix of dining options, many of which are in old homes that have been converted into businesses.
•
Pedestrian Friendly o
With its plethora of coffee shops, a wide selection of restaurant, and many small businesses , Phinney Ridge has spacious sidewalks and plenty of crosswalks to ensure that its residents and visitors may walk the streets with ease.
Difficulties and problems in this market •
Crime o
The 98103 zip code of Seattle, WA currently stands at a violent crime rating of 5 based off of a scale of 1-10, 1 being low crime. According to BestPlaces.net, violent crime consist of four offenses: “murder and nonnegligent manslaughter, forcible rape, robbery, and aggravated assault. The US average is 4,” (BestPlaces.net).
o
The area’s property crime rates at a 6. “Property crime includes the offenses of burglary, larceny-theft, motor vehicle theft, and arson. The object of the theft-type offenses is the taking of money or property, but there is no force or threat of force against the victims. The US average is 4,” (BestPlaces.net).
•
Traffic o
While Phinney Ridge is not known to be a particularly high traffic area, its close proximity to Aurora Ave./Highway 99 can sometimes clog its streets with traffic at certain high traffic times of the day. Residents going and returning from their daily commute to work may experience an increased commute time during these hours.
•
Parking o
While there is a free parking lot nearby Mélangerie’s location, it may not be immediately obvious to potential customers that it is the best parking option in order to visit to visit the store. Street parking is usually available right out front of the store, however it can be discouraging to visitors if it appears all taken up.
•
Saturation of the Market o
There is no shortage of boutiques in any metropolitan city, so new boutiques must go out of their way to differentiate themselves from the competition.
•
Economy
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o
The unstable economy not only makes it hard for a new small business to get up and running, but it also makes the clientele’s monetary support uncertain.
Existing demand for this product/service •
Vintage Business o
A renewed interest in vintage clothing as well as vintage objects have surfaced in the last 10 years. The popularity of such items may be contributed to nostalgic television programs such as Mad Men, as well as current trends drawing inspiration from the early years of fashion.
•
Home Décor o
With such an unstable economy, people are often unable to afford new homes and are instead spending their money on minor remodels and redecorating which offers a much more affordable alternative.
•
Fashion Stylists & Interior Design Consulting o
Clients who seek direction and styling advice may do so at Mélangerie boutique, a unique feature that larger stores and most small stores do not offer.
•
Personalized Customer Service o
Having such a small store in a local community allows the owner and salespeople to thoroughly interact and get to know their clientele.
•
Pinterest & Etsy o
With the advent of online inspiration pinboards such as Pinterest.com and DIY craft sites such as Etsy, the popularity of the vintage look has become widespread, well-known, and a desirable style of dress and décor.
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Competitive Analysis Primary Competitors Of all the businesses in the surrounding area of Mélangerie’s proposed location, these three retailers are being considered the main competitors for business.
Address
Hip Zephyr
Anthropologie
Buffalo Exchange
6421 Phinney Ave. N.
2520 NE University
2232 Northwest
Seattle, WA 98103
Village St
Market
Seattle, WA 98105
Street Seattle, WA 98107
Business Description
Small clothing boutique opened in 2006.
What they sell
Clothing and accessories.
Why they are
•
considered competitors
•
Close vicinity to our store’s location Similar boutique format
Eclectic mix of products inspired from around the world. Clothing, accessories, housewares, furniture, home décor. • Extremely large selection of merchandise • As a corporate store, their products are always on trend
Chain consignment store offering men’s and women’s clothing. New, used, and vintage clothing, shoes, and accessories. • They share the same target market • Paying their customers for their unwanted items
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Competitive S.W.O.T. Analysis Mélangerie Boutique has compiled a condensed and co-related charting of non-redundant areas of strategic interest and implication with our business venture. The emphasis resides in how Mélangerie Boutique compares to our competitors and illustrates the strategies to overcome obstacles as well as those to better leverage company growth. Our top competitors (all three) are Hip Zephyr (H) , Anthropologie (A), and Buffalo Exchange (B) . Strengths Competition: • Carries an eclectic mix of clothing and home décor (A) • Awards cash or store credit for customer’s used items. (B) • Local store with regular clientele and an established presence in the community (All three) • Friendly prompt service (H)(A) Mélangerie: • A unique offering of new and used clothing, accessories, and home décor. • Personalized service that includes help with styling and decorating suggestions. • Warm, inviting, and attractively decorated store • Green certified business Opportunities Competition: • Located in popular shopping area (A) (B) • Corporate growth for the company (A) • Gaining even more support for a local small business from the community. (H) Mélangerie: • Opening of a new business will generate buzz and excitement and stimulate “wordof-mouth” mention of Mélangerie • Convenient location with great visibility • Growing market for vintage clothing and unique home accessories
Weaknesses Competition: • Parking is limited and on a busy street (B) • High markup on products (H ) • Too limited of space to display merchandise effectively (B)(H ) Mélangerie: • Customers may be confused by mix of old a new merchandise. • Parking for store is not immediately obvious from street view. • People may try to sell their belongings to the store since it offers used merchandise.
Threats
Competition: • Economic difficulties and an unstable economy. (All three) • Similar stores with more competitive pricing
(All three)
•
People shopping at farmers market and flea markets instead of local stores (All three) Mélangerie: • Unstable and unpredictable economy is a huge disadvantage for a new business • Shoplifting of merchandise, especially small items • Keeping current with trends can be challenging in a shop that sells partly used merchandise 45
Indirect Competition – Woodland Park Zoo Our indirect competition would include the Woodland Park Zoo which is very close by. The zoo is a family-friendly place that attracts people of all ages. We consider it to be our indirect competition because it offers an enjoyable activity that is appealing to all demographics and age groups. Their well-groomed zoo grounds, fun atmosphere, and amicable reputation help make the Woodland Park zoo a desirable destination for almost anyone. While they provide a completely different experience for the time and money spent there, it is still possible that potential customer may be drawn to the attraction as an alternate to shopping at Mélangerie’s boutique.
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Marketing Environment Part I Economic Issues National Beginning in 2008, the United States has undergone major financial changes and endured a difficult economic period that has not provided the ideal setting for new businesses to grow and thrive. However, many new businesses continue to open up and expand by successfully adapting to this new economic environment. According to the webpage of Russell Investments, an investment and consulting firm headquartered in Seattle that operates globally, the U.S. economy is gaining stability and providing jobs. “It will take between three and five months, starting July 2012, for the economy to get back on a track of steady employment growth exceeding 100,000 jobs per month.”(Russell.com). The steady creation of more jobs will bring more funds into circulation as more people become employed, making the success of new businesses more likely. Current Business Cycle Though the nation’s economy has fluctuated in prosperity recently and dipped to a significant low in 2008, Russel’s most current business cycle demonstrates promise and potential for stabilization in the near future.
Russel.com
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According to the Bureau of Labor Statistics, the current rate of unemployment in the United States sits at 8.3%, which is slightly less than the rate of 8.9% in the previous year, (BLS.gov). While it is not a particularly large drop in the rate, a 0.6% decrease in unemployment demonstrates the capability of the country to continue creating jobs and supporting businesses. In the most recent report issued by the United States Labor Department, “ Thursday’s report showed weekly applications for unemployment benefits fell last week by 6,000 to a seasonally adjusted 361,000,” (SeattleTimes.com). The fact that the number of applications for unemployment have been falling demonstrates that the economy is stabilizing as less people are being laid off and more jobs are being established. State Washington State’s current unemployment rate stands concurrent with that of the country as a whole at 8.3%. Since 2011, the number of employed persons in Washington has risen from 3,154,700 in July of 2011 to 3,228,700 as of May of 2012. The state of Washington shows a slow but steady rate of economic stabilization. County Spanning over 2,000 square miles of western Washington, King County is the home to a plethora of small businesses. The King County Office of Economic and Financial Analysis has provided a preliminary forecast of the area’s countywide assessed value for 2013, and the years following.
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(KingCounty.gov) This forecast represents the state of the county’s economy as well as how it is expected to fluctuate in years to come. While the county is expecting a negative growth of -1.25% for the year 2013, it is a smaller decrease than 2012 is experiencing. Also, the county expects a 4.43% increase in value for 2014, and positive increases in growth for the rest of the years projected into 2020.
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City As a city, Seattle has a large capacity for employment and demonstrates its integral role as providing jobs for the state as a whole. “The Seattle MSA accounts for 1.93 million jobs and has an estimated gross metropolitan product of $218.77 billion,” (Seattle.gov). The University of Washington is Seattle’s largest employer, having 28,188 faculty and staff. Technology-related occupations are the most frequently occurring, especially with the close vicinity of Microsoft, Boeing to the city. The city is also home to successful e-tailer Amazon.com, which provides many employment opportunities to the city. Below is a table of the main categories of employment in the city of Seattle from 2000, 2008, and 2009.
Since 2000, there has been a shift from the highest number of employees working in the Aerospace industry to the Information Technology sector. This is most likely due to the rapid growth of the technology industry and the widespread usage of the internet as a way of conducting business and trade. According to the Small Business Administration, as a city Seattle is making efforts to aid women who own or plan to own their own small businesses. Through the National Defense Authorization Act of 2013, women will have increased access to federal funding to start and expand their small businesses. The act is a result of the Obama Administration’s attempt to stimulate entrepreneurship. According to SBA Administrator Karen Mills, “Today, women own 30 percent of all small businesses up from ust 5 percent 40 years ago. As one of the fastest growing sectors of small business owners in the country, opening the door for women to compete for more federal contracts is a win-win,” (SBA.gov). 50
Neighborhood After the recent dissolving of the Phinney-Greenwood Chamber of Commerce, members of the Phinney neighborhood of Seattle have created the Phinney Neighborhood Association as their community’s support organization. The Phinney Neighborhood Association (PNA) offers annual memberships to local businesses and provides a number of benefits and services. Some of the key benefits include: •
Savings on advertising rates and promotions, access to targeted online networking groups,
•
Free Informational/educational meetings relevant to your business
•
Social gatherings sponsored by the PNA to support face to face networking with other local businesses
•
Member orientations to learn more about benefits and opportunities for PNA Businesses
•
Discounts to PNA events and classes for you and your employees
•
Free subscription to monthly PNA newsletter
•
PNA special event sponsorship opportunities.
•
Targeted promotion to people who live, work and play in your neighborhood (PhinneyCenter.org)
Joining the Phinney Neighborhood Association would position Mélangerie as a viable member of the community and contribute to creating a well established reputation as well as provide important promotion and networking opportunities.
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Top 20 Regional Employers The Pacific Northwest is home to a number of nationally and globally recognized businesses. Many of the businesses listed as top employers were conceived in the greater Seattle area and remain headquartered here today. Employer
# of Employees
1
Boeing
70,000
2
Joint Base Lewis-McChord (Air Force Base/Madigan Hospital)
55,603
3
Microsoft
40,000
3
University of Washington
25,000
4
Amazon
15,000
5
Local Public School Districts (k-12)
13,735
6
Weyerhaueser
10,000
7
Alaska Airlines
9,617
8
Group Health Cooperative
9,000
9
Fred Meyer
8,700
10
Bank of America
7,300
11
Qwest Communications
7,000
12
Multicare Health System
6,756
13
Washington State Employees
6,662
14
Nordstrom
6,000
15
Starbucks
4,300
16
Expedia, Inc.
1,580
17
Everett Clinic
1,244
18
Costco
1,115
19
800
20
Eddie Bauer
600
Many of the employees that work for the numerous successful companies stationed in this region fall into the demographic qualifications of Mélangerie’s target market. Companies such as Microsoft, Nordstrom, Starbucks, and Google employ many younger to middle aged professionals and provide them with compensation that makes it possible for them to have a discretionary income that could potentially be spent on shopping at neighborhood businesses such as Mélangerie boutique. 52
Political Issues National With the upcoming Presidential Election of 2012, the legal environment for small businesses may be affected. Current President Barack Obama running for re-election recently signed off on four executive actions aimed at helping small-business owners. According to a statement from the White House regarding the new rules "will accelerate federal payments, reduce paperwork and make it easier for small firms to access loans and tax credits," (USAToday). Components of Obama’s legislation include: •
Accelerate payments to small business subcontractors
•
Calling on Congress to let small businesses write off up to $250,000 in capital investments.
•
Increase access to capital through SBA's Small Loan Advantage (SLA) 2.0. This revamped program raises the maximum loan amount from $250,000 to $350,000, streamlines the loan process, and makes it easier for lenders to extend loans to small businesses across America.
•
Reduce paperwork for SBA's Disaster Loan Program: Cutting the online application from 80 screens to three or four screens (depending on loan type) will allow families and businesses easier and quicker access to support for rebuilding after a disaster.
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Align New Markets Tax Credit with the needs of investors in growing small firms: The Obama Administration is working on a set of regulatory reforms to the existing New Markets Tax Credit that will make it easier for community development entities (CDEs) to attract private sector funds for investment in startups and small businesses operating in lower‐income communities. (USAToday)
Overall, the new legislation provided by Obama focuses on making it easier for new and existing small businesses to gain access to funding, and eliminate unnecessary obstacles that arise during that process. Other 2012 presidential hopeful, Mitt Romney, also has legislation in mind that directly affects small businesses. According to business and financial news source Forbes, Romney’s plan involves “a 20% reduction across the board for all income tax brackets, especially small businesses filing as individuals, reduction of the corporate tax rate to 25% from 35% and removal of tax loopholes,” (Forbes). Romney also addressed the large part of the U.S. population that earns below $200,000 per year. “Romney keeps the capital gains and dividend tax rate at 15% and has a zero tax rate on those investment income items for earners below $200,000 in income, encouraging saving from this class of individuals – a much needed and desired result. This class is spending and borrowing when they need to be saving and investing. Romney kills 53
the inheritance tax and alternative minimum wage tax – great for small business owners,” (Forbes). Romney presents a plan that includes an appealing factor for almost any income group. While both democratic and republican candidates have been heavily criticized by the public as well as each other on their standpoints when it comes to support for small businesses, each of them have recognized the importance of such businesses and their owners in regards to working towards national economic growth and stability. State Results of the 2012 primary election have The state of Washington offers a small business credit initiative in order to encourage and aid new businesses in starting up. The state of Washington’s government is actively seeking financial assistance and support to small businesses located in the state. According to the Washington state Department of Commerce, “Washington state will distribute $19.7 million through three new Small Business Credit Initiative programs. Working with private partners, the state expects to leverage these funds and by 2016 drive around $300 million in new capital to Washington small businesses,” (Commerce.wa.gov). Other legislation in motion includes Executive Order 12-01 which was submitted in January of 2012. According to Executive Order 12-01 submitted by Washington State Governor Christine Gregoire, “with 95 percent of Washington employers having fewer than 50 workers, these small businesses are one of the main drivers in our state’s economy; and WHEREAS, small business success and growth are critical to the overall economic health of our state and nation”. (Governor.wa.gov). Executive Order 12-01 introduces the Small Business Liaison program, in which state officials would meet at least six times a year with small businesses to identify how the government can better serve the businesses and educate business owners about state and local requirements. Executive Order 12-01 also discusses the importance of less inspections and more online resources available to businesses; “regulatory red tape reduction across state agencies and access to more consistent and coordinated online resources are especially critical in tough economic times so small businesses can focus on sales and operations,” (Ibid). This order demonstrates the state’s commitment to aiding small businesses in their path to growth and success, making it a desirable state to own and operate a small business. Current attorney general Rob McKenna recently discussed his concern with the unemployment rate of the state.“McKenna, currently the state attorney general, is proposing to address the problem by reducing taxes on small businesses and eliminating regulations that may hinder job creation. Inslee, a longtime congressman, also supports review of some regulation and taxation. More prominently, he is emphasizing the importance of creating jobs in clean-energy fields,” (SeattleTimes). County 54
Results of the 2012 King County primary election have been compiled as of August 9th. Of the 1,110,063 registered voters in the county, 313,810 were counted, totaling to 28.27% of registered voter participation. (Your.KingCounty.gov). City/Neighborhood According to the Puget Sound Region Council, an organization dedicated to improving and creating effective regional transportation, growth management and economic development, voters have approved allocating $15 billion to improving the regions means of transportation. “The region is making a voter approved $15 billion investment in regional rapid transit. Growing Transit Communities is designed to help make the most of this investment by locating housing, jobs, and services close enough to transit that it is a viable option for many people. If done right, more people will have a faster and more convenient way to travel,� (Psrc.org). Such an investment in rapid transit would make it easier for individuals to commute to their jobs as well as make it easier to visit neighboring communities. Not only does the Growing Transit Communities plan make residents of the city and its neighborhoods more mobile, it also focuses on creating jobs and housing within the communities. The results of this plan should provide room for economic growth and reinforce a strong support system for local businesses.
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Legal/Regulatory/Tax/Licensing Criteria King County Sales Tax Breakdown The current sales tax rate of King County is 9.5%. Below is a breakdown of the components that make up this percentage.
KingCounty.gov
City of Seattle According to accesswa.gov, the following issues need to be addressed by the business owner in order to legally operate and conduct their business. •
Small Business License acquired through the City of Seattle’s Revenue and Consumer Affairs Department. Fee cost is between $45-$90, and must be renewed annually.
•
Obtain Federal Tax ID Number
•
Obtain Washington State Reseller permit o
This permit allows business owners to purchase wholesale items and other products to be resold without paying sales tax.
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o
Items bought with the use of a reseller permit must be directly sold in the normal course of the business (Washington State Department of Revenue).
•
Unemployment Insurance and Industrial Insurance o
To be acquired before the hiring of any employees
Taxes •
Local Sales Tax o
•
Local Business & Occupation Tax o
•
Rate of 9.5% As of January 2011, Seattle’s Business & Occupational tax rate for retailers is .00215
Plastic Bag Ban & B&O Tax o
Use of plastic bags is strictly prohibited. A charge of .05 cents is applicable to every paper bag distributed to customers.
Certifications •
Washington State Minority & Women’s Business Enterprise (M/WBE) program o
This certification provides extended aid and benefits to women and minorities who own their own businesses.
Commercial Zoning •
Mélangerie’s building is considered to be a small neighborhood shopping area and requires NC1 Neighborhood Commercial 1 type zoning.
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Seattle.gov Zoning permit is easily obtained through the City of Seattle’s Department of Planning of Development prior to opening for business.
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Marketing Environment Part 2
Social Issues Educational Level The residents of Phinney Ridge represent a well-educated community of the greater Seattle area. According to ZipSkinny.com, 96% of 98103 inhabitants have earned a high school degree or higher, and 61.7% have gone on to earn a bachelor’s degree or higher. Both of these percentages surpass the U.S. average for educational achievement.
ZipSkinny.com Studies conducted by the U.S. Census Bureau have shown a positive correlation between education level and an increased income. “Adults ages 25 to 64 who worked at any time during the study period 5 earned an average of $34,700 per year. 6 Average earnings ranged from $18,900 for high school dropouts to $25,900 for high school graduates, $45,400 for college graduates, and $99,300 for workers with professional degrees (M.D., J.D., D.D.S., or D.V.M.).” There is a direct association that the more educated an individual is, the higher their earning capacity is. Since the Phinney Ridge neighborhood is a well-educated community, their income levels are reflective of their academic achievement.
ZipSkinny.com
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Below is a chart from the U.S. Census Bureau demonstrating Education Attainment and the salaries reflecting such. The highest salaries paid to all workers occur for those who hold professional degrees, followed by those with doctorate degrees.
U.S. Census Bureau
Subsequently, the population with only a high school degree or less make the lowest incomes. Only 4% of Phinney Ridge’s population has not earned a high school degree, demonstrating that most of its residents go on to complete further schooling. The high number of educated people in the area provides a strong economic foundation for small businesses to be supported.
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Family Size and Structure Because of the diverse array of household types in the Phinney Ridge neighborhood, the type and size of households varies. Of the 41,450 households in the area, homes with 2 occupants are the most commonly occurring.
City-Data.com
Birth Rates
Doh.wa.gov For the year of 2010, most of the births in King County are occurring between the ages of 20 and 35. There were a total of 58,000 live births in King County alone in 2010, which demonstrates that people are raising families and the population of the area is steadily growing. Evidence of population growth shows that the area is sustaining its population and has adequate resources to do so. The increase in population will result in an expanded economy, as well as an increased number of potential consumers in the immediate area.
Housing Due to its high population density, Phinney Ridge is considered an urban neighborhood of Seattle. According to City-Data.com, of the 27,448 houses and condos in the area 53% of the 98103 residents rent their living spaces. 61
“Phinney median real estate prices are $508,516, which is more expensive than 91.3% of the neighborhoods in Washington and 91.9% of the neighborhoods in the U.S.,” (NeighborhoodScout.com).
NeighborhoodScout.com With over half of its residents renting their homes and apartments, Phinney Ridge’s rental rates are higher in comparison to the rest of the state as well as the country as a whole. “Average rental prices in Phinney are currently $1,100, based on NeighborhoodScout's exclusive analysis. The average rental cost in 62
this neighborhood is higher than 75.9% of the neighborhoods in Washington,” (NeighborhoodScout.com). Increased home and aparment rental rates reflect that Phinney Ridge has a population that can comfortably afford a higher cost of living, which makes it more likely that they also have a discretionary income to spend as well. The types of housing in 98103 are an accurate representation of the demographics of its residents. As mentioned in the Customer Profile of the area, over half of the residents work in professional job settings. The young educated professionals and families with school-aged children of the area are primarily living in medium sized homes and apartments in the area. “Phinney real estate is primarily made up of small (studio to two bedroom) to medium sized (three or four bedroom) single-family homes and small apartment buildings. Most of the residential real estate is occupied by a mixture of owners and renters. Many of the residences in the Phinney neighborhood are relatively historic, built no later than 1939, and in some cases, quite a bit earlier. A number of residences were also built between 1940 and 1969,” (NeighborhoodScout.com). Older housing units provide a historic charm to the area and add character to the neighborhood’s aesthetic, making it an attractive place to inhabit and visit. Both housing and commercial property are desirable in the Phinney Ridge neighborhood in comparison to the rest of the neighborhoods in the country. “Real estate vacancies in Phinney are 4.6%, which is lower than one will find in 76.6% of American neighborhoods. Demand for real estate in Phinney is above average for the U.S., and may signal some demand for either price increases or new construction of residential product for this neighborhood.” (NeighborhoodScout.com). This is a positive characteristic of the area, showing that the community has the economic capacity to keep homes and buildings occupied instead of sitting vacant.
Poverty & Crime Rates Due to the strong emphasis on family and community support in Phinney Ridge, the poverty rate remains relatively low. According to NeighborhoodScout.com, an online database of enterprise-grade information about every city and neighborhood in the U.S., “the Phinney neighborhood has some of the lowest rates of children living in poverty of any neighborhood in the United States. In a nation where approximately 1 in 4 children are living in poverty, the Phinney community truly stands out from the rest in this regard,” (NeighborhoodScout.com). In addition to a low poverty rate in the area, the number of sex offenders in the area is also considerably low. “According to our research of public records there were 20 registered sex offenders living in 98103 zip code in the middle of 2010. The number of registered sex offenders compared to the number of 63
residents in this zip code is smaller than the state average,” (City-Data.com). The low number of sex offenders is comforting to both the residents as well as visitors of the area. In an examination of the association between poverty levels and the likeliness of crime in a given area, economic researcher Blake Taylor discusses, “Poverty can lead to high levels of stress that in turn may lead individuals to commit theft, robbery, or other violent acts. Moreover, poverty may lead to an actual or perceived inferior education, which would cause youth to count on less access to quality schools, jobs, and role models, decreasing the opportunity costs of crime and increasing the probability of youth spending time on the street associating with gangs, etc (Taylor 2006). The community’s ability to demonstrate a low poverty level is encouraging that crime will subsequently be lowered respectively.
Cultural Issues Ethnicity & Ethnic Mix Much like the rest of the greater Seattle area, Phinney Ridge is home to a unique blend of different ethnicities and cultures. “The Phinney neighborhood has more Scottish and British ancestry people living in it than nearly any neighborhood in America… 5.3% of this neighborhood's residents have Scottish ancestry and 1.8% have British ancestry,” (NeighborhoodScout.com). The primary ethnicity of the area is White
City-Data.comA
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While the majority of the residents speak English at home, a significant number also speak Spanish or another language well. Nightlife/Local Entertainment/Restaurants The Phinney Ridge neighborhood is active in putting on and hosting community events for its residents, as well as to attract visitors and promote tourism. The following establishments are active entertainment venues for the residents and its visitors. •
Woodland Park Zoo Tunes o
Every summer, favorite local spot and tourist attraction Woodland Park Zoo hosts a familyfriendly outdoor summer concert series on the zoo grounds. According to a news report by CBS, “proceeds from ZooTunes support the zoo’s quality animal care, engaging education programs and wildlifeconservation,” (Seattle.cbslocal.com). Tickets are reasonably priced, and the popular concert series is effective at drawing visitors to the area.
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Red Mill Burgers o
A favorite restaurant for locals and those just passing through is Red Mill Burgers, located in close vicinity to Mélangerie’s proposed location. A review from the Seattle Times raves, “Checkerboard floors, red swivel stools and doo-wop music create a mid-20th century vibe. Lines are the norm but practiced staff keeps the burgers (beef, chicken and veggie), fries, onion rings, lemonades and milkshakes flowing.” (NWSource.com). The location of popular restaurants near Mélangerie makes it a desirable place to visit as customers add dining in to their shopping experience which may cause them to stay longer.
Parades, Parks, Sports •
PhinneyWood Art walk
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Woodland Park Zoo
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Home and Garden Tour
Civic Center and Events
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Phinney Ridge is home to a variety of unique event spaces and gathering spots to support and accommodate its community members. The Phinney Neighborhood Association actively puts on community events and provides an in depth directory that includes an assortment of different classes, programs, and other community engagements available to residents and visitors.
Religious Issues According to the Association of Religion Data Archives, most residents of King County are unclaimed in their religious preferences. The most prominent religions of those who have declared them include Catholic, Evangelical Protestant, and Mainline Protestant.
Phinney Ridge offers a number of religious institutions, ranging from Lutheran, Methodist, Presbyterian, and Latterday Saints to name a few. The inclusion and offering of so many different churches in the area further reinforces the area’s emphasis on community and welcoming all who live in and visit Phinney Ridge. The community is supportive of equal
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GoogleMaps
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Technological Issues Webpage Mélangerie will have a fully functional user friendly website that allows web users around the world to make purchases and provide feedback. The page will be created by web design students and moderated by the owner of the store. Employees will have access to editing the and updating the webpage and must gain approval from the owner prior to posting any content other than new merchandise listings. By giving web access to all employees during their work day at the store, Mélangerie’s webpage will remain current and can be instantly be adjusted depending on changes in inventory as well as the arrival of new product shipments. Social Networking Mélangerie will also employ the use of social networking as a means of building sustainable relationships with customers as well as a free marketing tool for the boutique. Customers will be encouraged to follow the store’s progress and happenings via its Facebook, Twitter, Instagram, and Pinterest accounts. The multi-level presence of the store across the different social marketing pages and applications will allow the store to transcend its strictly brick-and-mortar sales floor and stay relevant to customers wherever they go. The use of social media will also provide customers and those curious about the shop to get a behind the scenes look at the store’s on goings; the content and photos featured on the social media channels will be more detailed and candid that the webpage’s more straightforward content, giving the viewer a familiarity and strengthened connection with the overall store. Staff picks, special promotional sales and events, as well as product and display photos can quickly and efficiently be posted on to the social networking channels faster than the webpage can be updated. The use of social networking will also allow owners and employees to conveniently post updates and exciting news to the pages when they are off-site and away from the store. POS Terminals Mélangerie will make use of state of the art point-of-sale business management equipment to ensure secure transactions and efficient record keeping for the business and its consumers. The system that Mélangerie will use will be CashierLive, a multi-feature inventory and stock control tool that allows items to be scanned, stores purchase history, and keeps track of inventory. This system has importing tools that allow inventory to be scanned into the system, and track the inventory based on sales and returns accordingly. Should an item be damaged in the store, or returned and non-sellable thereafter, the system also allows the item to be removed from the system manually with approval from the owner or assistant manager. CashierLive POS system will allow the store to recognize certain inventory that is continuously offered at the store, and send an alert message to the POS screen when the quantity is low and needs to be reordered. The 68
CashierLive POs system also includes a fully functional mobile application that allows the store to conduct transactions and do stock checks through the use of mobile devices and tablets. Tablet Usage The store will have its own iPad that will be used for staff to conduct sales, as well as interact with customers to show product photographs and order items that may not be in stock. On busy sales days when multiple employees are on the selling floor and both POS cash registers are being used, the iPad will allow sales people to make purchases via the iPad and a Square card reader will be attached to the iPad for quick and easy mobile transactions. The use of the iPad will also allow the owner and employees to freely move about the store, and scan inventory in different areas while the data is automatically synced with the CashierLive POS system. Use of the iPad tablet technology will provide both seamless service to the customers and efficient operational capability to the business as a whole. Barcodes and Security Sensors When possible, Mélangerie will scan and upload the Universal Product Code (UPC) barcodes that is pre-attached to new merchandise to get the merchandise on the selling floor as promptly as possible. Since the boutique will also be a seller of secondhand and vintage items, custom price tags will be handwritten or printed and attached to merchandise of this nature. Each vintage or secondhand item will be entered into the computer database with its own unique inventory item and selling price. Thermal security tags will be attached to clothing, accessories, and décor items that exceed the price of $50. The thermal security tags will be acquired via SecurityTagStore.com, and will be adhesive stickers that appear that they are simply price tags. Tags will be deactivated upon purchase at the cash wrap. Alarms & Theft Detectors Mélangerie will use the security services of ADT, a highly acclaimed security company with tools and installations designed especially for small business. The security system will feature an alarm system, 8 internal cameras, 2 external cameras, a remote alarm system, real-time and event-triggered video, as well as e-mail and text alerts. Each employee will have their own individual code for the security system to ensure the store’s safety. The alarm system will alert the owner of any potential break-in attempts or unusual occurrences that happen in the store’s direct vicinity. A Ketec Clear Vector Security System will be placed at the stores doorway, the one and only entrance/exit, and will sound its alarm whenever a security tag that has not been deactivated passes through or comes close to the system.
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Environmental Issues Sustainability The Phinney Ridge Neighborhood Association is committed to making the neighborhood a more sustainable and earth friendly environment. The community offers classes such as “The Sharing Revolution”, which introduces residents how to share their surroundings and possessions in order to create a more sustainable living environment. With a strong focus on sharing cars, houses, and working areas, the overall goal is to reduce the number or resources being used and work together to save as well as make money. Recycling In an effort to stay eco-friendly and promote sustainable earth friendly business practices, Mélangerie will recycle all business related materials. The store will use the local waste management company to effectively dispose of paper, glass, and other materials so that they may be repurposed and reused once again. Mélangerie will also use recyclable paper bags to package their customer’s purchases and will encourage them to re-use the bag on their next shopping trip or at other retailers. Not only will the recycling practices be beneficial to the environment, but will also contribute to the business’s overall goodwill and responsible business conduct as a whole. LEED Compliance As mentioned previously in the Target Market description, Mélangerie will have a strong focus on being environmentally sound. Built in 2002, the dual condominium/retail building was easily updated to Green standards compliant with the United States Green Building Council’s requirements LEED program. LEED, which stands for Leadership in Energy and Environmental Design is an organization of the U.S. Green Building council that provides guidelines to transform buildings into green-friendly operations that conserve energy, use minimal resources, and are sustainable for the longterm. The building has employed energy efficient and water conserving installations to make it a sustainable retail space with a minimal impact on the environment.
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Marketing Strategy Plan
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Promotional Plan
Image Statement Mélangerie will offer a unique and personalized shopping environment unlike any other retailer for the residents of Phinney Ridge and its visitors. The owner and salespeople will greet and assist every customer in a friendly yet professional manner. All sales people will be trained and confident in making specific styling recommendations and décor suggestions for the customer. The external appearance of the store will be clean and approachable with oversized planters on each side of the entrance and floral hanging baskets cascading from the store’s front rooftop. The décor and aesthetic of the inside of the store will emanate signature French charm and warmth, immediately putting the clientele at ease upon entering. Walls painted rich neutral colors accented with shimmering gold, black and a few pops of brighter hues will present a visual feast for the eyes. Dim antique chandeliers, merchandise spotlights, and an array of lit candles give the store a romantic and nostalgic vibe. The store’s internal environment will be reflective of its product offerings, mixing new and on-trend merchandise with one-of-a kind hand selected vintage clothing and home décor to provide a truly unparalleled shopping experience unlike any other in the greater Seattle area.
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Marketing Mix
Product Product Tops Bottoms Dresses Home Décor
Brands • YA Los Angeles • Free People • Anne et Marion • Mother Denim • April May Clothing • Peacock Park Designs •
Styles
Price Range
XS-XL
$10-$125
Product Life Cycle Growth
0-16 XS-XL
$50-$225 $35-$200
Introduction Growth
$5-$250
Growth
$5-$100
Growth
• • • •
Accessories
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Dogeared Jewelry Butter London Nail Polish Voluspa Candles
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Wall décor Home furnishings Pillows Mats and Rugs Dining wares Charm Necklaces Post Earrings Chandelier Earrings Statement Necklaces
Price Mélangerie’s product offerings are tailored to fit almost any person’s budget. While many of the product’s pricing may be considered moderate to high in cost, the prices accurately reflect the labor and production costs of the items, giving the customer a fair price while still capturing a profit margin beneficial to growing and maintaining the business. Due to the mixture of new and used merchandise at Mélangerie, the store is able to provide a broad range of products at varying price tiers that suit all income levels. The low cost of used and vintage merchandise to the owner allows the retail price for the customer to be significantly reduced in comparison to new merchandise. Merchandise not purchased from wholesalers will include found objects from garage sales, estate sales, thrift stores, and flea markets.
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Depth of Inventory
Price Line Charts
Price ($)
Depth of Inventory
Women’s Tops at Mélangerie will primarily fall into the price range of $10-$125, with the highest amount of inventory costing $60-$100 as the graph below demonstrates. By utilizing the volume to prestige price range, Mélangerie will be able to provide shirts, jackets, sweaters, blouses and tanks that are of good quality without charging a luxury price for its tops.
Price ($)
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Women’s bottoms at Mélangerie will primarily be denim, hence the higher cost. While the bottoms offered at the store are considered to be in the prestige price zone, the high quality of the products and the fact that they were manufactured in the U.S. authenticates the higher price point of the garments. The
Depth of Inventory
primary denim brand offered will be Mother denim and will range from $140-$220.
Price ($)
Women’s dresses at Mélangerie will start around $30 and go up to $200 for the most embellished pieces as well as some vintage dresses. By using this range of prices, the store is able to cater to all levels of customer income. Also, selling used merchandise usually entails that the item was bought at a price lower than retail or wholesale, enabling Mélangerie to pass the savings on to its customers.
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Depth of Inventory
Price ($)
Much like the dresses offered at Mélangerie, home décor will also include a significant amount of used or vintage inventory. The total price range of home décor products will be from $5-$250, with most products
Depth of Inventory
falling into the volume price zone of $50-125$.
Price ($)
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Accessories at Mélangerie will primarily be new merchandise, and will range from $5-$100 in price. Most items will be offered at the promotional and volume price zones to increase sales and add on items since they will be affordably priced. Place •
Mélangerie will use locally produced products as much as possible, and the rest of the emphasis will be put on merchandise made in the USA, or imported from France.
•
Personal relationships between the owner and international vendors will help secure the most cost efficient and secure shipping of goods overseas, and the owner will bring smaller products back to the U.S. in personal luggage when returning from international business trips
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UPS ground shipping will be the primary means of shipping for most of the brands carried at Mélangerie, including YA Los Angeles clothing and Peacock Park designs.
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Promotion Advertising Strategy Through a multi-channel compilation of specifically tailored advertising efforts, Mélangerie will use an advertising strategy that will reach and connect with its desired target market and beyond in ways that are most relevant to their lifestyle. Magazine ads, digital advertising, in-store promotions, and community involvement will allow the store to maximize its customer reach and establish a well-known presence in the Seattle retail sector. Direct marketing strategy •
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Customer Aging List o Through the capturing of customer’s personal contact information with their verbal permission during transactions made at the store, Mélangerie will create a customer database that will provide purchase history and keep track of the frequency of their business. The database will allow the owner and sales associates to contact the customers to invite them back into the store for special events and to maintain relevance to the customer. Special coupons and birthday greetings can also be sent through the use of the aging list. Customers will be asked on their preferred contact preference upon the collection of their personal information, and may certainly choose not to be contacted if they please. Thank-You Cards o By use of the customer aging list, customers will be sent Thank You cards will be sent as seen fit after a memorable transaction or store visit. The thank-you cards will demonstrate the customer’s importance to the store and its employees and help make them feel appreciated and increase enthusiasm and loyalty to the store.
Public Relations Strategy •
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Charitable Events o Due to the strong emphasis on community and neighborhood support in the Phinney Ridge neighborhood of Seattle, Mélangerie will work collaboratively with the Phinney Neighborhood Assocation to remain an active participant in community events and charities. o The owner, employees, and their families will cook Thanksgiving dinner at the community center to show their support and commitment to the neighborhood and its residents. o A Spring fashion show will be held, working together with local high school and college students in production. Tickets will be sold for $10 and all proceeds will be donated to the local women’s shelter. Lookbook o Bi-annually, Mélangerie will create two seasonal lookbooks of product offerings and merchandise. Local students and community members will be invited to participate in the production of the lookbook and be featured as models in the photoshoot. Lookbooks will be created for the Fall/Winter season as well as Spring/Summer. Community members will be deeply involved in the process of creating the lookbook as a fun activity to encourage youth involvement and to show the boutiques connection to its neighborhood. 78
Personal Selling and Sales Promotion o
Seasonal Sales o Melangerie will conduct a series of seasonal sales depending on merchandise inventory as well as current events and holidays.
Internet Strategy and Means •
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Webpage o Mélangerie will have an actively updated website that will provide the store’s location, contact information, brands carried, and company history. There will also be an online guestbook for customers to write comments and reviews. o Reoccurring merchandise that is always in stock will be available for secure purchase through the store’s website. o The store’s website will include links to its social media pages: Tumblr Blog, Facebook, and Twitter. Blog o Mélangerie will have a blog that is updated at least twice weekly by the owner and sales associates. o Photos will constantly be uploaded of products, displays, customers, and any other relevant occurrences that involve the boutique. Facebook o The owner and sales associates will utilize Facebook to stay in touch with the store’s followers. o Special events and sales will be posted on the store’s facebook, and those who like the page will be the first to be notified and invited. Twitter o The twitter page will primarily be used to provide quick updates such as when new merchandise is received or a relevant event concerning the business or community occurs. Pandora o Mélangerie will advertise with Pandora radio station through its online service as well as its mobile app. Both ways of accessing Pandora provide locational services that will allow Mélangerie’s ads to be played to customers listening in the surrounding areas of its store location. The ads will also be aligned with specific types of music and artists that best reflect the target customer and their personal tastes to further connect with the community.
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Tactical Plan Mélangerie Marketing Tasks 12 months Prior to Opening Detail List •
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Acquire Building Location o Business owner will meet with realtor and building owner to negotiate terms of the lease and make any improvements necessary to the retail space. o Business owner will seek and obtain all necessary city and state licensing and permits necessary to operate a business in the Phinney Ridge location. Interior Consulting/Design o A meeting will be held with an interior design consultant to discuss on potential design plan for the chosen retail space. o Appropriate fixtures, materials, and tools will be ordered and obtained so construction may begin. Begin Construction o Walls will be painted according to the color palette agreed on with interior designer. o Large scale fixtures will be assembled and prepped for merchandise presentation. Vendor Relations o Research and communication with desired vendors via phone and e-mail. o Owner will contact vendors from trade shows and place product orders for first offering of store’s merchandise. o POS register and computer software will be ordered to ensure delivery before grand opening. Floor Sets o Wall décor and display pieces will be set up and installed. o Office area and stock room will be set up and organized. Receive Merchandise o All merchandise will be checked in and recorded into a shipment receiving log. o The appropriate amounts of merchandise will merchandised on the selling floor, and the extra inventory will be put in back stock to replenish when displayed goods are sold. Recruit Employees o Owner will seek one full-time employee as well as two part-time employees based on personal recommendations as well as through job ad postings. o Qualifications of potential employees will be evaluated and hiring decisions will be made. Train Employees o Employees will be trained on POS cash register and software Digital Advertising o Digital advertising efforts such as ads on Pandora and Facebook banners will commence and focus on the Grand Opening event. Soft Opening o Mélangerie will remove the butcher paper from its windows and open its doors to the public in late March and begin conducting business. o Contact information of customers attending the soft opening will be acquired and they will be invited to attend the Grand Opening event and thanked for their business. Advertising and Promotion 81
Advertising of the store’s opening will be done through the selected channels including ads in The Stranger and a press release in the Seattle Times. Website and Blog Launch o The store’s website will go live just before the Grand Opening so that customers may visit it after they visit the store. o The blog will feature sneak peeks of merchandise and displays prior to the Grand Opening to spark interest and entice them to attend the store’s opening. Grand Opening o The store will hold a Grand Opening celebration and sale event the same night as a community art walk in mid-April of 2014. Customers will be treated to refreshments, goodie bags, and entertained by local musicians. o
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MĂŠlangerie Grand Opening Event The newest retail addition to the Phinney Ridge neighborhood will open its doors on a Friday in midApril of 2014. A giant banner announcing the Grand Opening as well as decorative lanterns and party lights will adorn the storefront. The store will open its doors at 10 a.m., offering mimosas, an espresso and tea bar, French pastries and other refreshments. Customers will be treated to 15% off their entire purchase as well as goodie bags including samples of some of the merchandise, French chocolates, and a coupon for a future visit. The event will undergo a transition around 5:00 p.m. and shift to more of a cocktail themed event. Local musicians will be hired to play French style music while customers shop and mingle. The rest of the street will be holding an art walk, which will help increase traffic and exposure for the Grand Opening event. The event will introduce the new retailer to its community members and provide a hospitable and memorable first impression to its neighborhood and fellow businesses.
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Mélangerie Marketing Tasks 12 months After Opening Detail List • •
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Grand Opening o Grand Opening event will take place, and the store will begin its regular hours of operation. Acquire Customer Information o After each purchase is made on the POS register system, customers will be asked for their preferred method of contact from the store to be notified of special events and gain preferred access to sales and events. Order Fall Merchandise o Owner will contact vendors and select merchandise appropriate for the fall season. o Owner and sales associates will also take buying trips to local wholesalers, thrift stores, and flea markets to select used merchandise and display pieces for store. Activate Aging List o Customer information required so far will be examined and customers will be contacted according to their preferred method of contact, inviting them back to the store Personnel Review and Evaluation o The current staff will be evaluated based on their performance, personal growth, and sales capabilities. Each salesperson will meet individually with owner for a discussion of their duties and future goals. Order Holiday Merchandise o Customers will be notified and invited to join store for a Fall Harvest Celebration to occur in October. Harvest Celebration o Store will hold a Harvest Celebration to celebrate Halloween as well as the arrival of the Fall Season. Cider, refreshments, and o Store will close for Thanksgiving Day, and the owner, employees, and family members will participate in cooking a community dinner at the community center. Holiday Sales and Promotion o An invitation-only after hours sale will be held for preferred customers during the first week of December to encourage holiday shopping. Customers will be treated to a 15% off discount, beverages, refreshments, and goodie bags with purchase. Order Spring Merchandise o Merchandise will be ordered from appropriate vendors with an emphasis on Valentine’s Day, Easter, and Mother’s day. Winter Clearance Sale o A clearance sale on seasonal holiday products, coats, and other winter oriented products will be held to drive business and stay in touch with customers. Re-do Floor Sets o The store will undergo a floor set change to keep the interior fresh and give the customers an updated shopping environment. Order Summer Merchandise o Seasonal merchandise such as shorts, dresses, skirts, and accessories will be ordered from vendors according to upcoming trend reports and customer requests.
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Owner and sales associates will go on buying trips for summer themed vintage items and display pieces. Advertising and Promotion o Through the selected media channels of the ageing list, magazines, print, and internet advertising, the store’s one-year anniversary sale will be promoted. Anniversary Sale o The store will hold an event similar to the Grand Opening to thank its customers and community for their continued support business. All merchandise will be 20% off. The night before the anniversary sale, preferred regular customers will be invited to access the sale early between 6:00 and 9:00 pm and given 25% off of merchandise as a thankful gesture. o
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Reach and Frequency Plan and Advertising Budget Medium
Reach
Frequency
Size/Duration
Monthly Budget
Seattle Weekly
1,000,000
1x month
½ page ad
$250
$3000
The Stranger
1,000,000
1x week
Âź page ad
$200
$2400
Pandora
750,000
4x per day
30 sec flash ad
$300
$1200
500,000
2x per week
Banner
$150
$1800
Total Monthly Cost: $900
Yearly Budget
Totally Yearly Cost: $8,400
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Pricing Plan Mélangerie has oriented its pricing plan towards best serving its customer base while making the highest maximum profit. The pricing plan addresses and appeals to the many different income levels and lifestyles of the Phinney Ridge residents as well as its visitors, and keeps the store competitive both in the greater Seattle area as well as the online marketplace. Pricing Objectives •
Increase Dollar Sales o
Through the execution of extensive vendor research and negotiation, Mélangerie boutique will offer competitive prices and immaculate customer service in order to maximize the store’s dollar sales. In addition, Mélangerie will exist as a multichannel retailer, further extending its reach to customers and providing convenience and ease of access throughout the marketplace. The store will also make efforts focused on creating and maintaining a meaningful and trustworthy relationship with its clientele in order to secure their continued loyal and continued business.
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Match Competitor’s Prices o
Mélangerie’s will dedicate its practices to offering equal or lower prices in comparison to its competitors. Not only will this increase customer satisfaction but it will help to establish the business as an honest and accommodating company which will encourage customers to return in the future. Customers are welcome to bring legitimate advertisements or proofs of other retailers offering identical products at lower prices in order to receive a potential price match from Mélangerie (to be determined by the owner and sales team). Pricing Strategy
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Stepped Pricing - Promotional, Volume, Prestige o
Mélangerie’s product lines will range from promotionally priced items at low price points, volume priced items that are moderately priced, and more expensive products that carry a prestige status price tag. Most of the product will be priced at the volume price level, so that the store may adequately mark up the retail price while still keeping it generally affordable by most. Merchandise priced at the prestige level will be high in price due to it exclusivity of the product; one-of-a-kind vintage clothing and accessories as well as large-scale home décor pieces such as furniture and art will carry the highest price tags. Diversifying price points will enable customers with all levels of income to make a purchase, which will most likely increase dollar sales.
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Promotional Pricing o
The store will also put a large focus on a promotional pricing strategy. Efforts will include holiday sales, anniversary sales, preferred customer invitation-only sales, a Black Friday event, and many more. Promotional sales will not only help to secure repeat business from returning customers, but also draw in new clientele through advertising as well as gaining the attention of passersby during the events. Since prices will be significantly lower than regular retail prices during promotional events, MĂŠlangerie will be able to offer reduced prices that are lower than its competitors, both brick and mortar stores as well as online.
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Markup, Markdown, and Sales Event Plan
Categories Women’s Tops Women’s Bottoms Women’s Dresses Home Décor Accessories
Markup% 300% 350% 350% 400% 500%
Markdown% #1 15% 15% 15% 20% 25%
Markdown% #2 25% 25% 25% 30% 40%
Sales Event Markdown % 30% 30% 30% 40% 50%
Mélangerie will generally be frugal in its markdowns, saving the greatest customer savings for special sales events and promotional offers to encourage attendance and generate traffic. Women’s clothing will be marked up 300%-350% and marked down 15% during the first markdown, 25% during the second, and 30% off during promotional sales events. Items belonging to the home décor category will be marked up 400% because of the exclusivity of the product lines and low volume of that type of merchandise in the area. Accessories such as jewelry, wallets, and other small gift items will have the highest markup at 500% due to their low wholesale cost and high turnover ratio. Vintage and found items will be priced on a case-by-case basis taking into consideration any appreciating or depreciating value that may have occurred over time as well as its current demand in the marketplace.
Stock Turnover The stock turnover ratio will be computed using the following formula. The expectation is: Stock Turnover = Cost of goods sold/Average Value of the stocks
We are predicting a stock turnover rate of 3.8 to 4.2 during the 1st year of business, based on purchasing an entire store inventory four times per year.
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Terms of Payment Mélangerie intends to be on good pay terms with its vendors and take advantages of all discounts offered. The anticipated terms of payment with vendors is expected to be a 2% discount if a payment is made in 10 days, and the total net balance is paid in 30 days.
SoftChalkCloud.com
Doing so will enable the company to possibly negotiate extended terms in the future. The desired future terms would extend the total amount to be paid 90 days after the invoice is received, enabling Mélangerie to first sell through the merchandise and use profits to pay back the vendor. Establishing a solid relationship with vendors will result in Mélangerie becoming more competitive in the marketplace by taking discounts offered by its vendors.
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Distribution Plans
Off-Site Sales •
Online o
Mélangerie’s second most active selling channel will be through online sales. Sales via the internet will occur through the store’s secure website, as well as its mobile website that will be accessed via smartphones and tablets.
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Phone o
Mélangerie will allow transactions to be made over the phone when the customer is not physically able to make it to the brick and mortar location. Phone selling will enable the customer to still enjoy a personalized customer experience by interacting with sales people, even though they are not at the store in person. Additional security measures will be taken to ensure that any orders taken over the phone are not potentially fraudulent.
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Facebook o
While Mélangerie will not actually process transactions via the social networking site, the store will permit its customer’s to put items on a 24-hour hold through a post or message.
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Forms of Payment •
Cash o
Mélangerie will accept cash currency as a form of payment. Large bills will only be accepted if the appropriate amount of cash is available to make change without wiping out the till completely. An AccuBank ™ counterfeit detecting device will be used to check large bills for authenticity.
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Credit and Debit Cards o
In order to best accommodate its customers paying with credit and debit cards, VISA™, Mastercard™, Discover™ and American Express™ will be accepted. Photographic identification will need to be presented by anyone making a credit card purchase, regardless of the amount.
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Traveler’s Checks o
Traveler’s checks will be accepted in order to best accommodate tourists traveling to the Seattle area. Traveler’s checks will also be put through the AccuBank™ counterfeit detecting device to ensure the customer and retailer’s safe transfer of funds.
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Gift Cards o
Mélangerie will offer gift cards for purchase in the desired amount via Plastekcards.com. Offering gift cards will help increase profits by making the store a go-to place for gifting. Gift cards will be ran through the register like credit and debit cards, and remaining balances under $5 will be cashed out to the customer.
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Means of Shipping For any form of shipping between MĂŠlangerie and its customers, UPS standard ground shipping will be the primary service used. There will be occasions when website orders will be offered free shipping; however the customer will usually pay a flat rate of within the United States and Canada. MĂŠlangerie will graciously accommodate expedited and international shipping requests, given that the customer pay the full shipping cost at the same time the item is purchased.
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Operations Plan
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Inventory Control
Planning & Projecting Mélangerie will operate under a four-season plan, adjusting its merchandise buying and display techniques to winter, spring, summer, and fall. The majority of the buying for new clothing, accessories, and home décor will take place twice a year, in September for spring and summer merchandise, and in March for the Fall/Winter Merchandise. In August, the owner and selected staff will work together on planning the September apparel order. The owner and staff will take into consideration current trends across the country, on blogs, as well as in the immediate Seattle area and local neighborhoods when planning the merchandise purchase that will take place the following month. The same process will occur in February when the store prepares for its fall and holiday merchandise orders. The transition from fall to winter will begin the day after Thanksgiving as holiday décor and gift items become the store’s main focus. The transition from winter into spring will begin shortly after the new year, and will still include cold-weather options in apparel to suit the slow ease into the spring season. Summer merchandise will be introduced into the store in mid-March so that customers going on spring break or vacations will have a selection of items to choose from. The transition from summer to fall will begin at the end of July as people begin to shop for school. Seasonality will also play a large factor in the store’s merchandising and visual display techniques. Window displays will be planned according to scheduled arrivals of new merchandise, as well as to feature unique vintage and secondhand items that have just been put out for sale to generate the maximum amount of visual interest. Window displays will be adjusted at least once a month by either the home décor , with merchandise switch-outs weekly to keep the store looking fresh and constantly updated. The purchasing of vintage clothing, accessories, and home décor will be a reoccurring process that will occur on a case-by-case basis. Due to the unpredictable and sporadic nature of garage sales, estate sales, and craigslist listings, the owner will have to shop for the store’s vintage merchandise as it becomes available. In addition, the owner will supplement the vintage and secondhand purchases made in the area with a buying trip to San Francisco at least once a year to visit the Haight & Ashbury district. When possible the owner will visit San Francisco more than once a year, striving to build cooperative relationships with vendors in the San Francisco area. By visiting another major city on the west coast to buy merchandise for the store, the owner will gain an expanded perspective of popular fashions, scope out the orientation and products of other boutiques in the country, and also bring unique products back to the Seattle store that cannot be found elsewhere in the area. 96
Forecasting Websites The owner and assistant managers will utilize online resources such as Pinterest.com and Etsy.com to stay aware of consumer trends, especially in the used and vintage sector, visiting the sites weekly for inspiration and trend awareness. Pinterest, an online pin board full of thousands of artistic and inspiring images, allows users to view and organize groups of images to make virtual collages. Images of products, home décor, vintage style, architecture, and art installations all relate to the business and aid in the conception of create display techniques and merchandise buying decisions. The independent crafting website Etsy.com will be used as a tool to follow popular vintage style trends by examining popular items and the most frequently crafted items. Etsy will also be used to potentially recruit local crafters to feature their products in the store as consignment vendors. Sales associates will also be encouraged to peruse these websites as well as other useful blogs for trend and buying ideas, and then communicate their findings with upper management. Mélangerie will have an active subscription to Women’s Wear Daily that will be sent to the store for the owner and staff to familiarize with current industry news and trends. The subscription will consists of the actual paper copy of each issue as well as an online version so staff may refer to it on the computer or a tablet as well. Women’s Wear Daily offers the latest information regarding the fashion industry and sends out 250 issues per year. Access to Women’s Wear Daily will keep Mélangerie at the forefront of fashion trend reporting, keeping staff informed and constantly aware of new and changing styles. Possession of this privileged information will allow the boutique to quickly adapt to shifting trends as well as anticipate consumers buying patterns and behaviors before they occur. Trend Analysis Through the collective analysis of fashion publications, trend reports, blogging, popular culture, and street fashion, Mélangerie will tailor its buying practices and merchandising so that it adapts to the demand of the market but also remains unique in product selection. In the back room of the store will be a designated wall space for posting inspirational photos, upcoming trends, and other visuals to be analyzed and discussed during staff meetings. By taking cues from each of the trend information sources such as blogs, magazines, websites, and publications, Mélangerie’s staff will be able to recognize reoccurring themes in fashion and business so that they may adapt the business and its merchandise accordingly. Trade Shows & Showrooms The owner and assistant managers will attend trade shows across the country to maintain and develop vendor relations as well as view new products to potentially be carried in the store. Should the 97
business be especially profitable at a given time, the owner may extend the offer to take long-term salespeople (one or more years with the company) on buying related business trips as seen fit. The owner and any suitable employees will be scheduled to attend the following trade shows each year: •
Atlanta Gift Show- During the second week of April, AmericasMart, a large-scale Atlanta based gift showroom and trade center will host its annual Gift, Home Furnishings, and Holiday market. The store will be able to order its holiday décor and gift items in advance at this time so that they are readily available in fall. Ordering ahead of time will also allow for the store to successfully plan out floor plans, window displays, and merchandise arrangement.
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MAGIC – The owner and one to two other employees will travel to Las Vegas in mid-August each year to attend MAGIC market week to source new vendors and product lines for the store. This large-scale trade show features designers and products from all around the world, allowing Melangerie to conduct business on an international level. According to MAGIC’s website, With an average of nearly $200 million in per-day order volume and 67% of the top NPD buying teams in attendance, more business is done at MAGIC than any other fashion retail trade event. 2 MAGIC market week is also a great networking opportunity and enables business owners to discuss business practices, expansion, and potential investment opportunities.
In order to successfully project seasonal needs of the consumer, Melangerie will have a membership at the Pacific Market Center located in South Seattle where gift items, accessories, and home décor may be purchased as ‘cash & carry’, which consists of buying the vendors’ stock on hand with immediate payment and leaving the premises with the merchandise in hand. This allows the store to instantly provide merchandise that accommodates seasonality, such as if a customer requested place card holders for a Thanksgiving table setting. While the owner will pay attention to and review fashion weeks around the world, the key elements of the designer shows will successfully be absorbed through online video, photos, and reviews. It will not be necessary to visit the shows in person to obtain the trends and details featured in the show, however the owner will not rule out attending any type of fashion week altogether. The business’s energy will be more efficiently channeled by focusing on affordable and repurposed fashion and décor rather than designer and collector items.
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MAGICOnline.com
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Magazines & Blogs The owner will have a subscription to Entrepreneur magazine, which will provide cutting edge information pertaining to new and inventive ways to drive business. Entrepreneur magazine is issued monthly at a cost of $8.95 a year. The magazine is a reliable source for relevant data and consumer research regarding the operation and success of small businesses. In order to stay aware of the practices of MÊlangerie’s competition, the owner and assistant managers will follow the blogs of various similar retailers, both in the immediate community as well as across the country. The employees will be encouraged to visit different blog pages while they are at work as well as on their personal time. By following a range of various style blogs, the owner and employees will have a wellrounded sense of popular fashion and home dÊcor trends as they occur, and will better be able to anticipate and serve customer wants and needs. Alternative Resources The owner will actively pursue vintage and used merchandise at thrift stores, garage sales, estates sales, and craigslist as merchandise is needed for the store. The owner will shop neighborhood garage sales every Saturday morning from May-September of each year, as this time is when the frequency of such sales is at its highest. The owner may also purchase merchandise for the store if they are approached by a seller of items that would fit in well at the store and are at a price reasonable enough for a profitable markup.
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Management Functions
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Tracking Stock on hand; Quality Control o
Inventory of products ordered through vendors will be taken twice a year, once at the end of January and once at the end of August.
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There will be two registers equipped with CashierLive POS software that offers a variety of features to aid in inventory and stock control. This system has importing tools that allow inventory to be scanned into the system, and track the inventory based on sales and returns accordingly. Should an item be damaged in the store, or returned and non-sellable thereafter, the system also allows the item to be removed from the system manually with approval from the owner or assistant manager. CashierLive POS system will allow the store to recognize certain inventory that is continuously offered at the store, and send an alert message to the POS screen when the quantity is low and needs to be reordered.
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Due to the relatively small scale of the business, MĂŠlangerie should not need to contract any outside companies to perform quality control unless a major issue or discrepancy in inventory control should arise. Should this occur, MĂŠlangerie will use the services of ISOutsource, a national organization that provides technical support systems across the country and has representatives located in the nearby in the Bothell area. ISOutsource will provide consulting services as well as assistance in project management and cloud storage services.
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Human Resources Taxes, accounting, legal o
Mélangerie’s bookkeeping and taxes will be handled by William E. Ekanger, local certified public accountant.
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Legal services will be provided by Silvia Testa of Lane Powell Attorneys and Counselors law firm, which has offices in Seattle, Oregon, Alaska, and London.
Records keeping o
Daily reports of sales, returns, the day’s events, and any other relevant information will be entered on the computer and e-mailed to the owner at the end of each business day. A copy of the POS transaction record for the day will also be submitted to the owner automatically by the software. Daily reports will be combined quarterly, compressed into one document, backed up to a hard drive and archived to be referred to when necessary.
Hiring process and qualifications o
In the initial staffing process of Mélangerie, the owner will first examine their local network of peers and acquaintances for dynamic and reliable talent. After scouting through the local network, the owner will post ads on craigslist, and also examine LinkedIn for potential employees. The owner will follow use the same starting points of hiring future employees when adding new members to the store’s sales team.
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There will be a minimum educational requirement of a high school diploma. Experience and attitude will be of high value and the most important traits sought after in the hiring process. Word of mouth between friends, networking, and the community may also be a determining factor in pursuing or hiring potential candidates.
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A general application obtaining personal information, work experience, and any other lucrative information will be given to applicants that seem fit for the position. Applicants will also be encouraged to show any art work or supplemental material they feel will showcase their creative capabilities, as work in the boutique is a highly visual and design oriented experience. (See Appendix A for sample application).
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The owner will schedule a phone interview with potential candidates to discuss work experience and their reason for applying. From there the owner will determine if they would like to conduct a second interview in person at the boutique.
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Should the owner see the candidate fit for hiring after the in-person interview, they will reach out to the person with an employment offer and alert the accountant to obtain tax information and hiring paperwork.
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The employee will be subject to a 90-day review of their performance in which the owner will discuss the employee’s experience thus far and evaluate the next steps moving forward and the employee’s future with the boutique.
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Benefits will not be offered to part-time employees, but will be discussed with full-time employee after one-year of employment. The owner and employee will work with the legal representative to determine an appropriate benefit plan that may include limited coverage of medical and dental expenses.
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Job Descriptions
Assistant Manager o
The assistant manager will be required to be at least 18 years of age upon application for the position.
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Preferred 2+ years in management type occupation or equivalent
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Ability to work 40 hours a week
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Able to effectively create and adjust staff schedules, and anticipate staffing needs of the store
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Passionate about styling and decorating.
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Strong background in merchandising and visual display
Assistant Buyer/Interior Design Specialist o
Must be able to do light carpentry work, such as sanding, nailing, painting, and use of power tools
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Must possess a strong understanding of color theory and pattern
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Flexibility to travel with owner 3-4 times per year
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At least 2+ years of experience related to interior design, home decorating, event planning etc.
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Salespeople o
Salespeople will be required to be at least 18 years of age upon application for the position.
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Ideal candidates will demonstrate passion for style in all areas: fashion, accessories, art, home décor.
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Able to effectively handle forms of payment, and possess comprehensive mathematic skills.
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Warm attitude and developed communication skills.
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Excellent recording skills and the ability to create detailed reports for the owner and manager.
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Internships o
As an advocate for educational programs and working side-by-side in the local community, Mélangerie will offer internship programs to students of fashion and business from local colleges in the area. The store will be in contact with local college administrative offices and offer internship positions, with an emphasis on holiday season positions.
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Training Procedure
Newly hired employees will train for two weeks with the owner or manager so they may job shadow and address any crucial questions that may arise. Upon hiring, the employee will come in to the store to meet with the owner for a brief orientation. They will be given a tour of the facilities, briefed on the alarm system, and given a copy of the building’s key. During the first week of being hired the employee will have a manager oversee any transactions processed through the cash register. The first day will consist of operational training such as opening and closing procedures. The second day will focus on register training and familiarizing the employee with the CashierLive POS system. The following days will focus on product knowledge and customer service. The employee will participate in various styling and decorating exercises to become comfortable with the product and to learn different selling points of the items.During the second week the employee will work independently, however there will be a manager or a staff member on site at all times to answer and questions or assist in dealing with any issues. After the second week of training is complete, or when the owner determines the employee is ready, they will be put on the permanent schedule and ready to work on their own.
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Opening & Closing Procedures Opening: • • • • • • • • • • •
Arrive 30-45 minutes before store opens. Enter building, disarm alarm and turn all lights on. Store personal belongings. Review report from previous day, including sales, events, and any other pertinent information. Unlock safe and remove cash. Count cash and place in register and clear cash wrap. Check answering machine for any phone messages. Turn on store’s music player. Check for any new merchandise shipments. Dust, clean and tidy sales floor. Turn on open sign. Unlock front door and place signage on sidewalk. Prop door open if weather permits. Begin journal report to be updated throughout the day. Unpack and add any new merchandise to inventory.
Closing Procedure: • • • • • • • •
Lock front door when last customer has exited. Sweep/Vacuum as needed. Turn off store’s music player. Count cash in register. Deposit cash in safe. Record sales and events of the day in the journal report notebook. E-mail report of day’s events and sales to owner. Walk the sales floor and straighten any out of place merchandise or displays. Gather personal items, set alarm and exit store.
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Dismissal Procedure Regarding the dismissal of staff, the employee in question may be first given a warning depending on the severity of the behavior that created the possibility of being fired. The owner will speak to the employee in question in person and determine if the employee is able to alter their behavior to continue employment, or must be terminated immediately. If the employee is considered an asset to the business, the owner will make an effort to Should the owner decide that the necessary action is to dismiss the employee, they will call the employee or speak to them in person the next time they meet and notify them of their termination. Employees will be dismissed if the following issues arise during their employment at Mélangerie, as stated in the hiring contract when they accepted employment: •
Theft
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Damaging Property
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Drug/Alcohol Abuse
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Violation of Privacy
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Abusive Verbal/Physical Behavior
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Fraud In the event that an employee crosses the line regarding any of the above categories, their job will
immediately become unsecure. If a dismissed employee wants to defend their position, they will be referred to the legal services of Mélangerie.
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Facilities Maintenance
Janitorial •
Due to the relatively small space of the boutique at around 800 square feet, it will not be necessary for Mélangerie to contract an outside janitorial service. The store will utilize its staff as a means of keeping the store’s interior and exterior clean, presentable, and sanitary.
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Any staff working on merchandising will be required to tidy up after projects, which may involve windexing, dusting, and vaccuming before heading home for the day. During slow times, staff will be expected to walk the sales floor and inspect merchandise displays, fixtures, and garments for any needed primping or maintenance. When there are two to three sales people working, tidying the store will be a joint effort.
Store Maintenance Equipment: • Back Room/Office
Lint Roller
Storage Closet
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Clothing Steamer
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Broom
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Folding Tables
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Dusters
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Ladder
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Vaccum
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Stepstool
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Hardware
Restroom •
Bleach
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Cleaning Solutions
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Mop & Bucket
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Garbage bags
Main Floor/Cash Wrap •
Windex
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Paper Towels
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Security o
MÊlangerie will subscribe to the security services of ADT, a highly acclaimed security company with tools and installations designed especially for small business. The security system will feature an alarm system, 8 internal cameras, 2 external cameras, a remote alarm system, real-time and event-triggered video, as well as e-mail and text alerts. Each employee will have their own individual code for the security system to ensure the store’s safety.
Customer Service
Complaints o
Customer feedback is a vital part of Mélangerie’s ultimate success. The customer will always be encouraged to voice any potential concerns to any of the available staff. Should the owner or an assistant manager not be on site at the time of a complaint, the matter will be recorded by the salesperson in charge at the time, and either left in a note or sent in an e-mail to be dealt with by the owner or management as soon as possible.
Returns o
In the event that a customer wishes to return an item, they may do so within 10 days of the purchase as long as the item is re-sellable and they possess a receipt and price tag.
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After the 10-day return period, customers are welcome to return merchandise for store credit up to 30 days after the original purchase.
Referrals o
In the event that the store is unable to accommodate a customer’s request for an item, Mélangerie will gladly refer customers to nearby businesses offering products that the boutique is unable to provide. Mélangerie will strive to form meaningful and positive relationships with nearby businesses, retail and non-retail as an active member of the Seattle small business community. Connecting with nearby businesses will help reinforce the boutique’s reputation and overall goodwill in the community.
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Clientele included in the store’s customer aging list that refer friends that make purchases will be awarded $5 gift cards for each referral. Referred customers will need to provide the referrer’s name or phone number upon making a purchase for the referral to take effect.
After sale problems o
In the event that merchandise damage has gone unnoticed during a sale, or happens soon after being purchased, customers are invited to bring the item back and discuss the situation with the store staff. In most cases, a full-return of the original payment will be issued if the customer does not wish to exchange the item. All staff will be entrusted to use their best judgement in these types of situations and notify the owner of all faulty merchandise so that it may either be repaired or taken out of inventory.
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When dealing with apparel problems such as rips, missing, buttons and minor adjustments, MĂŠlangerie will offer to compensate the customer for the cost of the alteration when a physical receipt of the service is provided within 30 days of purchase.
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In the event of damage to home goods and furniture, the interior design specialist will deal with minor repairs such as chipped paint, loose screws, and minor hardware adjustments.
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Financial Plan
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