Organization and Management Descriptions - Essay Example

? Business Proposal for Decor Heels Table of Contents 0 Executive summary 1 Success Factors 2 Business Objectives 2.0 Business Description 3.0 Market Definition 3.1 Industry Analysis 3.2 Market Segmentation 3.3 Buying Patterns 4.0 Products or Service Description 5.0 Organization and Management Descriptions 6.0 Marketing Strategy 6.0 Financial Management 7.0 References 8.0 Appendixes. 1.0 Executive Summary Decor Heels will be a women’s custom shoe store that will specialize in designing shoes on selection. The store will deal with the designing of female shoes only. The business idea is based on the fact that many stores do not offer customized services for female consumers. Currently, women are finding it difficult to get shoes of their choice because most of the stores are offering already designed shoes (Shaw and Onkvisit, 2008). Decor Heels will have an unmatched and extensive selection of high heel shoes for women. The model of the business is based on customer selection that will allow customers design their own high heels under the brand name of Decor Heels. Customers will be required to place an order and the company will make an invitation for the design of their selected high heel shoes (Moisander and Valtonen, 2006). The business aims a creating a competitive advantage in the first six months of operation through diverse selection. This will depend on the company’s management team especially the marketing team. It is the expectation of the business to capture at least 20 percent of market share and a profitability of more than $100,000 in the first three years of operation. 1.1 Success Factors There is one main success factor and that is the ability of the business to enhance satisfaction for high heels among women. The business will achieve this by offering a wide selection of shoes as preferred by customers. 1.2 Business Objectives The objectives of the business are based on the first three years of operation and include: Establishing a retail store based on supplying high shoes that will satisfy customer needs beyond expectations Capturing 20 percent of the market share for female shoes by the unmet need for women to design high heel shoes Establishing a retail business that will grow on its financial performance 2.0 Business Description Decor Heels is a sole proprietorship business based in New York serving the unmet demand for customized high heel female shoes. The business aims at enhancing consumer satisfaction by offering the opportunity for customers to design their own high heel shoes under our brand name Decor Heels. Customers will be submitting their shoe design and the company will be making available the desired designs within a period of two days. Basically, Decor Heels will be keeping close contact with manufacturers and suppliers to ensure that the shoes are made available at the shortest time possible. In order to improve service delivery, the company will establish a total of ten retail stores at strategic locations within New York City and depending on its performance; the business will open more outlets in other cities within the first three years of operation. 3.0 Definition of the market 3.1 Industry Analysis The market for high heels is under the general market for shoes. Decor Heels is targeting the market for high heel shoes which has few market players. The market for high heel shoes is dominated by large departmental stores with other players including shoe-only stores and small retail stores. Departmental stores mainly sell everything with shoes being among their items for sale. They do not put their focus on shoes but all their products on sale. Shoe-only stores as the name suggests specialize in selling shoes only. Small retail stores engage in the sale of female shoes and clothes (Hill, 2011). 3.2 Market Segmentation The general market for female shoes has two population segments including female professionals and housewives. Professionals are defined by their responsibility of working on a full-time basis whereas housewives spend most of their time at home. Most of the working women have an income of more than $45,000 given the fact that they are working in a capital city. Housewives have an income of between $ 80,000 and $90,000 with most of them concentrated towards a household income of $90,000. 3.3 Buying Patterns Most of the women in New York are fashion conscious and they at least purchase a pair of shoes every week. Most of the purchases are made by female professionals rather than housewives. High heels are the most preferred among professionals because they are the corporate dress code (Freeman, 2000). Housewives also purchase high heels especially for dates and outings. 4.0 Products or Service Description Decor Heels will specifically sell female shoes with the focus of the business being high heels. The business will offer one of the largest high heels shoe selections in the city. The selections will be based on customer designs rather than offering already designed high heel shoes. The business will be making exclusive arrangements with suppliers and manufactures to ensure that there is timely supply of customized high heel shoes (Shaw and Onkvisit, 2008). Designs will be submitted in from of drawings along with additional details such as shoe size, color, patterns and decorations. As noted earlier, delivery will be made after forty eight hours of placing an order. However, Decor Heels will provide for rush one day services at an additional cost. This will enable customers have their orders supplied within twenty four hours. 5.0 Organization and management descriptions Decor Heels will be a sole proprietorship business that will be managed by its owner with the help of family members and other employees. I am a Bachelor of Arts graduate with a specialization in marketing from Yale University. I have worked with retail stores notably Dollar General and Target Corporation as a marketing manager. I will be running the business with the help of my wife who has a Bachelor of Science degree in Accounting. My wife and I will be working full time with the help of additional staff members such as the store keeper, messenger and a cleaner. I will be in charge of sales and marketing whereas my wife will be handling books of accounts and finances. The second month of operation may require an additional staff member who will be responsible for inventories. 6.0 Marketing strategy The retail store will be located in a mall because most of the women prefer doing their shops from malls. The strategic location of the store will be on the entrance point of the mall in order to attract more customers at their point of entering the mall. The location at the entrance is based on the idea that customers will find it easy to reach us. The other idea is that the store will be more visible at the point of entry as opposed to being located in the inner parts of the mall. The main advantage of locating the business in the mall is that there is the advertising of products and services at the mall by the management of the mall (Moisander and Valtonen, 2006). The business will implement a discount price policy on its shoes. Since the business is in its stage of introduction, it will be important that the business attracts customers through pricing techniques especially discount prices. This will make high heels affordable to most of the customers given that most of the businesses offer high prices for high heels. Shoe displays will be made on windows at the store (Hill, 2011). Displays will include shoe samples in form of attractive pictures and real shoes. Customers will be given an opportunity to test the shoes before designing their preferred high heels. The business aims at providing services and products in a manner. This means that there will be a lot of time saving for customers. This will require the company to design an official website from which customers will be presenting their designs and making orders. The site will be made attractive with colorful samples of high heels in different sizes, color, decorations and style. There will be online marketing on social sites such as Facebook and Twitter where there are a large number of potential customers. The company will also be posting advertisements with Google and Yahoo (Freeman, 2000). Decor Heels will prepare catalogues that will list all the sample high heels including color, style, size, decorations and price ranges. Most of the pictures will include models and the company brand name Decor Heels. During festive seasons such as Christmas and Valentine’s Day, the company will be making offers on specific high heel designs. This aims at improving sales since a large number of women will be shopping for shoes especially high heels. 6.0 Financial management The financial management of the company is based on assumptions that include estimations. However, one major consideration for the company is the breakeven point in terms of sales and revenues. It is the expectation of the company that the breakeven revenue for the business after three years will be $20,000. Monthly revenue from sales is expected to be $28,000 each month and total costs of $10,000. Other financial summaries for the business are shown in the appendix. References Freeman, C. (2000). High tech and high heels in the global economy: women, work, and pink- collar identities in the Caribbean. New York: Duke University Press. Hill, D. (2011). Red High Heels in Heaven. Chicago: AuthorHouse. Moisander, J & Valtonen, A. (2006). Qualitative marketing research: a cultural approach. New York: SAGE. Shaw, J & Onkvisit, S. (2008). International marketing: strategy and theory. New York: Taylor & Francis. 8.0 Appendix. Projected Profits and Loss Month 1 $ -6,000 Month 2 $-4,000 Month 3 $-2,000 Month 4 $-1,000 Month 5 $-500 Month 6 $1,000 Month 7 $1,500 Month 8 $2,000 Month 9 $3,000 Month 10 $4,100 Month 11 $5,500 Month 12 $7,000 Projected Cash Flow Month 1 $ -20,000 Month 2 $16,000 Month 3 $18,000 Month 4 $19,000 Month 5 $19,500 Month 6 $21,000 Month 7 $21,500 Month 8 $22,000 Month 9 $23,000 Month 10 $24,100 Month 11 $25,500 Month 12 $27,000 Read More