Country Peddler Sales Promotion

Country Peddler Consignment Boutique Brookings, South Dakota

carmela garcia lammers sales promotion effort october 8, 2010

Country Peddler Consignment Boutique Overview On October 15, 1991, The Country Peddler Consignment Boutique opened its doors to the community of Brookings, South Dakota, on its diverse Main Street. The Country Peddler is a used clothing boutique specializing in women’s casual, career and special occasion clothing, accessories, footwear, jewelry, watches, designer inspired sunglasses, unique home décor and much more.

Strengths Location Country Peddler is located on the second block of Brookings’ Main Street, which receives a large amount of traffic at all hours of the day.

Product selection A large variety of apparel brands are available for purchase in the boutique. Brands ranging from Gap, American Eagle, Ann Taylor Loft, Banana Republic, Old Navy, Maurices and more are available as well as the occasional luxury brands such as Coach, BCBG, Louis Vuitton, Uggs, etc. Not only is there a large number of brands of clothing, there are also a large number of home decoration items, jewelry, handbags, shoes, etc.

Price Prices throughout the store allow customers to purchase items at prices based on the quality of the consigned garment. Items with the original tags and luxury brand items tend to be priced higher than regular items; however, they are typically priced 70 percent lower than normal prices.

Services Country Peddler provides a variety of services for its customers. These include:

Consignment: receive 50 percent of the selling price

Wardrobe consultation: employees help customers select attire for special occasions, job interviews and can help customers put together a selection of mix and match pieces.

Wish list: if consumers are looking for a particular item, Country Peddler will let the consumer know if anything has come to the store.

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Services continued

Private shopping parties: customers have the opportunity to shop around the store during closed hours. Coun try Peddler with provides hor d’oeuvres, personalized music and special offers.

Gift cards: reloadable giftcards of any amount are available for purchase for those special occasions.

Layaway: customers have the opportunity to layaway items with just 20 percent down and pick up in 3 weeks.

Weaknesses Location Country Peddler is located one business away from its main competitor, Trendz clothing. Although Goodwill isn’t a very large competitor for Country Peddler, it is also located fairly close to the business.

Hours The typical working hours in Brookings are from 8 A.M. to 5 P.M., leaving only an hour after work or an hour during lunch for customers to visit the store during its Monday to Friday 10 A.M. to 6 P.M., Thursday 10 A.M. to 7 P.M. and Saturday 10 A.M. to 5 P.M. business hours.

Organization Due to the large amount of items being consigned on a daily basis, Country Peddler’s space is overwhelmingly full of clothes. This makes finding updated items hard to accomplish.

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Trendz

Trendz is the only other consignment boutique in Brookings. It offers clothing from newborn to adolescent and for both males and females. Because of its close proximity to Country Peddler and because its another local business, Trendz is a high competitor for Country Peddler. The prices in Trendz match closely with those of Country Peddler, as does the quality of clothing. Trendz is located one business away from Country Peddler and has a much larger amount of space for its products, making it easier to organize all of its items. Throughout the year, Trendz offers promotions for customers and participates in the annual Crazy Days sale each summer in Brookings.

Goodwill

Although Goodwill sells donated items at very affordable prices, some items sold at Goodwill could also be sold at Country Peddler; however, a large number of the items at Goodwill are not carefully selected for quality like in Country Peddler. Goodwill does not offer its customers promotions and does not consign clothes. The overall environment of Goodwill is different from Country Peddler in that it does not have a specific target consumer and targets to everyone and anyone.

Sonnies Trends & Traditions

Competitive Set

Sonnies is another local clothing boutique that features new clothing and accessories. Although it is not a main competitor, its close proximity to Country Peddler may draw customers into the store. Prices throughout the store are very high compared to the consigned items of Country Peddler; however, customers have been able to find items from Sonnies throughout Country Peddler. Promotion wise, Sonnies offers seasonal promotions to its customers and at times has a sale rack placed in the store.

The environment in Sonnies is organized and shopper friendly.

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Competitive Points of Difference Country Peddler Consignment Store offers its customers a personalized, affordable, exciting, experience none of its competitors are able to offer. Through its different services offered, Country Peddler allows customers to get the most out of doing business with them on both the consignment and purchasing side. Without offering these unique services, Country Peddler would not be able to differentiate themselves that easily from its main competitor, Trendz.

Due to its relatively long time in the market place in Brookings, Country Peddler is familiar to the old community of Brookings, while Trendz is only a few years old.

Country Peddler’s extensive line of quality clothes, home decorating goods, accessories, etc, offers a variety of items that change everyday. Due to the large number of items consigned on a daily basis, customers are able to find a large variety of items every given week.

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Industry Analysis As the economy begins to strengthen throughout the US, retail business is also starting to look up. Add to the strengthening economy the fact that consumers today are looking to be environmentally friendly. Purchasing used articles of clothing and home goods is an easy way for consumers to satisfy the need to save money, always have an updated wardrobe and be “green”.

The overall clothing industry in Brookings, however, is not comparable to that of neighboring Sioux Falls. Due to the small number of clothing stores available to Brookings women, Country Peddler has the advantage of offering brands only available outside of Brookings.

Statement from Commerce Secretary Gary Locke on Retail Sales in August 2010: “The Commerce Department’s U.S. Census Bureau today released retail sales data for August 2010. Retail sales rose 0.4 percent, essentially matching the July gain of 0.3 percent and slightly above private-sector expectations. Motor vehicle sales fell 0.7 percent, and sales at gasoline stations jumped 1.9 percent. Sales excluding motor vehicle and parts dealers and gasoline stations rose 0.5 percent.

An increase in retail sales in both July and August is encouraging and suggests that the economic recovery continues,” Commerce Secretary Gary Locke said. “While these data show that consumers are spending, the administration recognizes that Americans are still struggling. That is why President Obama is focused on doing more to accelerate job growth in the short term and strengthen the economy in the long run, including new investments in our roads and railways and tax cuts for small businesses owners.”1

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http://www.commerce.gov/news/press-releases/2010/09/14/statement-commerce-secretary-gary-locke-retail-sales-august-2010

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Target Audience Definition Psychographics (Attitudes, Interests, Opinions)

The average customer of Country Peddler does not mind shopping for clothes at consignment boutiques and enjoys spending time searching for items. Finds joy and excitement in finding a piece of clothing for much lower than the regular price at the store. She is interested in fashion and likes staying up to date with her wardrobe without breaking the bank. Typical consumers are also interested in helping a local business strive and in purchasing “recycled” goods (in this case, clothing, home goods, etc.).

Behavior

One of the main concerns for Country Peddler is finding ways to increase its customer base and relieve the stigma associated with buying second hand clothing. This can be difficult because customers range from loyal users; those who shop at Country Peddler for every clothing purchase, switchers; those who tend to switch between Country Peddler and its competitors and out of town clothing stores, nonusers; those who have never shopped in Country Peddler because they are either unaware of the store or choose not to purchase secondhand clothing and price buyers; those who only purchase items that are reasonably priced for a secondhand item. By reminding consumers that buying secondhand is in style, affordable, exciting and beneficial to both the business and each individual, Country Peddler will be able to set itself apart from its competitors and main stop for Brookings women shopping for clothes,

home goods, etc.

Geography & Demographics • Brookings, South Dakota and surrounding communities • All women ages 18-65

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Sales Promotion Strategy Objective The main objective of the sales promotions created for Country Peddler Consignment store are to remind present customers and prospective customers of what Country Peddler offers by hosting a fashion show event and offering a coupon with a donation to Red Cross for a limited time.

Strategy #1: Reaching out with an event and incentive to buy

Purpose The purpose of holding a fashion show event is to remind women around the Brookings area of Country Peddler and their services, interact and build a relationship with customers, showcase some of the current items available for purchase and distinguish them from Trendz, their main competitor.

Details The event will be held on a Saturday evening, a day most women are free from work and an hour when most women are free from family activities. Country Peddler will work with students from the Apparel Merchandising department students in styling models with clothes throughout the store. These models and students will be given a Country Peddler giftcard for their help with the project. Customers will be served refreshments and food as they

view garments pass throughout the store. The garments will then be available through a silent auction once they have all been displayed and attendees will be able to shop around the store during extended hours and receive special discounts.

Response & cost This event aims to put Country Peddler out into the community; therefore, although the hope is to sell items, the main goal is to remind women that Country Peddler is the best choice when shopping for secondhand clothes in Brookings because it is affordable, has a great variety of items and is a local business.

Costs: Models & students: five models and five students will each receive $15 giftcards Refreshments and food: approximately $150

Success This event will have been successful if the overall traffic in Country Peddler increases, if a solid profit is gained from the silent auction of items and if attendees give good feedback about the event and request more. Overall, the event will give attendees an opportunity to be reminded that Country Peddler is a fun place to shop and do business with.

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Strategy #1 Tactic: newspaper ad & poster for fashion show

COUNTRY PEDDLER’S

FASHION NIGHT OUT FASHION SHOW FEATURING ALL OF

TODAY’S

TOP BRANDS

NOVEMBER 6

6PM - 7PM 320 Main Ave. Brookings, SD 605-697-6292

Visit: www.countrypeddlerbrookings.com for more information or follow us on Facebook

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Strategy #2: Reaching out to the community with a good cause and incentive to buy

Purpose

The purpose of working with the local Red Cross is to remind customers that Country Peddler also works with charitable organizations in order to make a difference in the community. Customers who are interested in donating coats will have the opportunity to save money on a purchase at the store.

Details The event will be held from November to January at the store during regular store hours. There will be a clothes hanger behind the register where customers can donate coats and receive a $5 off any purchase of $30 or more. Every week, a Red Cross representative will come to the store and pick up the donated coats. If customers aren’t able to use the $5 discount the day of the donation, they will receive a certificate they can use on a different occasion.

Response & cost The main goal of this event will be to raise enough donations for Red Cross, attract potential customers who are interested in the organization and donating, increase sales and gain potential loyal customers.

Costs: Certificates: $30 to print twenty-five certificates

Success This event will result successful if there is an increase in revenue, if Red Cross receives a large number of donations and if there is a growth in the number of loyal visitors.

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Strategy #2 Tactic: newspaper ad for Red Cross program

COA S

FOR FASHION Bring in your gently used winter coats between the month of November & January to Country Peddler Consignment Boutique and receive $10 off your purchase of $30 or more.

Coats will be donated to the local Red Cross.

Contact Country Peddler at 605.697.6292 for more information

American Red Cross Brookings County Chapter

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Overall Goals of Sales Promotions

Awareness With these sales promotions, Country Peddler hopes to raise the awareness of the store with current consumers and future consumers.

Distinction Country Peddler hopes to distinguish itself from its main competitor, Trendz, with the use of interactive and creative sales promotions. This distinction from the competitor will allow Country Peddler the opportunity to increase its traffic.

Social responsibility In a time where social responsibility is the growing trend, Country Peddler hopes to put its foot out there as a leader in supporting local charities.

Availability In line with awareness, Country Peddler will remind customers of the availability of its services through sales promotions that involve consumers and keep their interests in mind.

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