Mobile Home Accessory and Gift Shop - Assignment Example

Mobile home accessory and gift shop By + Introduction Zaet Mobile home accessory and gift shop are a start up mobile retail shop that will deal with offering rewards to consumers as well as electric home accessories. It will be headquartered in San Diego in the state of California in the United States of America and will offer after-sell services such as transport and fixing of the appliances at the consumer’s home. Our experts will also advise the customers on how to utilize the machines in addition to repair services. Our salesmen and women will focus on serving customers all over California with determination. Our products will be of high quality and our services will be exceptional (Tuver, 2009). Zaet mobile home accessory and gift shop aim at creating a personalized home environment. Our services and products will be located in the City of San Diego as we look forward to extending it to the other parts of the state (CANN, 2012). Our stores will be in various part of the city, and we shall have a twenty-four hours customer service in place. The target market and customer related issues The city of San Diego will be our target market. As per the population study that was conducted in the year 2014, the city’s population was estimated at 3,368,650 people with 58.9% being white, 45.1 % non-Hispanic, 6.7 % black and African-American. 28.8% Latino whereas the Asian population was represented by 15.9 %. The San Diego’s urban area has a total population of 3,095,313 making it the third largest city in the state of California (Simons, 2011). The high population will provide a ready market for our products. Our business will target more middle-class and upper-class consumers who focus beyond the national gift chain stores as well as home accessory for that expression of style and individual personality. I believe that our unique products, quality, and unparallel customer service, as well as values, will complement the experience of our clients. Through our online services, we expect to target more and more customers in the city as well as other parts of California. The firm expects to register comfortable total revenue at the end of the first year, Followed by the development of marketing plans in the second year as well as creation of E-commerce and extension of our business to other parts of the city by the end of the third year (Sarr, 2009). The 2013 census report indicated that there was an increase in the number of household. San Diego has over a million families according to the survey that was conducted in the year 2013. The city has recorded a poverty level of below ten percent as well as median household income of around $62, 962. Most people in middle and high classes do their shopping in various places such as fashion valley shopping center, seaport village, Las American premium outlets, Tijon, La Jolla open air market and little Italy Mercato. Our major main store will be at seaport village with others in little Italy Mercato, La Jolla free Aire market and Tijon, Plaza Del Pasado and Nordstrom. Among four of my competitors in the market are patioproduction, Skylar’s home and partio, Jerome’s Furniture, Aztec appliances as well as machine alley shop (Pontuch, 2012). The home accessory shops have a market share of 25%, 23%, 19%, 18.5% and 15 % respectively. The five firms are making a total of around $ 15 million. The product and founder related issues The firm’s success will be on the following; selling products that provide value and quality to the consumer. As well as meeting the needs for the expression of personal style (Beverly, 2010). The firms will also have a twenty-four customer services in place to direct as well as advice our clients on how to make use of our quality products. The business will advertize our products online in order to reach many customers having in mind that 70% of the people in San Diego are often online each day. Additionally, our firm will utilize other means of communications such as the magazine advertisement, website, and postcard mailing to reach the customers. Zaet mobile accessory and gift shop aims at establishing accessible, welcoming and visible storefront and website that will position the services and products within the marketplace and beyond (Hughes, 2008). The firm will be opened throughout the week and twenty-four hours in a day except during weekends. During weekends, the business will be opened from 12: 00 pm to 5: 00 pm. The firm will be staffed by one-time workers, working forty hours a week and other party time employees who will be working thirty hours in a week. The firm’s aims will focus on maintaining a direct cost of sales of 40% or less, and a gross margin of 60% and above. The company hopes to generate total revenue of $ 626,000 at the end of the first year. Our target will be to realize an annual growth rate of around thirty percent in the second year. When not attending to our consumers at their households, our sales persons will be onsite daily and will provide customer service assistance as well as additional sales (Peña, 2008). The firm will accept the following forms of payment from the customers; visa, credit card, check, Cash, Master Card as well as American Express; travelers’ check and debit card. Defective and damaged items can be to our stores for refund or replacement. Our team of expert will always be on alert to attend to our customers at home or on site. Business potential and positioning of products and services Strengths Most of the competitors in the market have not been conducting mobile services. Most of the accessory have only been serving the customers at the site and doing less of after sell services and repair to the consumer’s house. Our services will comprise both on-site customer services as well as mobile services especially when consumers shop online. We also hope to utilize online advertisement in order to reach more clients in the state of California. Our employees will visit clients in their home to do the repair as well as helping them fix the appliance (Weimer, 2010). Our customer services unlike most of the competitors will be open twenty-four hours in a day. Customers will be able to conducts us by utilizing the contacts attached to our products. The firm will focus on creating long-lasting relationships with our clients. I believe the business idea will offer a competitive advantage for the firm in the market. Our major store will be at seaport village with others in little Italy Mercato, La Jolla open Aire market and Tijon, Plaza Del Pasado, and Nordstrom. The location of our business in various sites will make it easier for us to reach more customers and improve the quality of our services as well. (Kalah, 2010) Weaknesses Zaet Mobile home accessory and gift shop are new in the market. Despite the presence of other competitive firms in the market, I believe the various plans such as online advertisement and other marketing strategies will enable us built a name. I also believe that the customer-centered services offered by our sales persons will help us market our brand and develop a long lasting relationship with our clients. Although we may not have enough startup capital, I believe, we will be able to secure loans, as well as support from friends and well wishers (Popp & Holt, 2011). Our sales person will ensure we can increase our sales so as we can generate enough funds to run our business. Opportunity San Diego is the third most populated city in California. It has a household number of around 1,086,865 and a median household income of around $61,426 with a total population of 3,095,313. The large population together with the high number of household offers a ready market for our products. The middle-class income range of the city is $70, 000 to $ 210, 500 with the high-class individuals having an income range of above $ 210, 500. The high income and increased number of the middle-class and high-income individual creates a better environment of for the growth of our business. (Sillard, 2013) Threat The major threat to our business is market saturation. Many individuals will be able to recognize the idea and venture in the same market. I believe that our customer-centered services, as well as the high quality of our products, will bring a lasting union with our customers thereby gaining a competitive advantage (Kennedy, 2011). Additionally, our plan to conduct a market research twice in a year will enable us provide services that will satisfy the demands of customers. Financial issues The total long term and current assets will make up to seventy percent of our start-up requirements. Start-up requirements and expenses will include; accounting and legal organization $ 2,500, initial marketing and advertisement $ 2,678, miscellaneous $ 756, logo development, business cards and stationary $ 2, 800, training and installation $ 2,923, store planner $ 500, service provision $ 3,000, travelling $ 3,300 and packaging $ 3,300. The total start-up expenses will be $ 23,357. The cash required is $ 28,098, long-term assets $ 83, 775, start-up inventory $ 31,770 and a total asset of $ 146, 643. Total requirement is around $ 170, 000 (Mikus, 2006). The startup capital will be through equity financing, life insurance personal savings, home equity loans friends and relative, government grants, venture capital, angel investors and debt financing. I believe the business will be able to grow faster and generate enough cash to start paying the loans as well as running the firm. References Beverly, T. 2010. Real-world intranets in 2010: SWOT analysis. Business Information Review, 27(2), 85-93. doi:10.1177/0266382110370535 CANN, W. 2012. COST-BENEFIT ANALYSIS VS. FEASIBILITY ANALYSIS: THE CONTROVERSY RESOLVED IN THE COTTON DUST CASE. Am Business Law Journal, 20(1), 1-35. doi:10.1111/j.1744-1714.1982.tb01129.x Cavazzani, P., & Rajagopal, N. 2010. Market analysis of growing competition in pharmaceutical industry. International Journal Of Business Competition And Growth, 1(1), 31. doi:10.1504/ijbcg.2010.032827 Hechavarria, D., Matthews, C., & Reynolds, P. An Investigation of Start-Up Outcomes Over Time: Does Start-Up Capital Structure. SSRN Journal. doi:10.2139/ssrn.2446059 Hughes, O. 2008. The idea comes first…. Monash Business Review, 4(1), 3-3. doi:10.2104/mbr08001 Kalah, C. 2010. Downtown San Diego mall puts fresh spark in shopping. Chicago Sun-Times. Retrieved March 5, 2015, from http://www.highbeam.com/doc/1P2-3962719.html? Kennedy, C. 2011. Thinking of opening your own business? Be prepared!. Business Horizons, 28(5), 38-42. doi:10.1016/0007-6813(85)90066-7 Mikus, K. 2006. Treasures Are Not Difficult to Find at New Gift and Home Accessory Shop. Daily Herald. Retrieved March 5, 2015, from http://www.highbeam.com/doc/1G1-151866703.html? Peña, I. 2008. Intellectual capital and business start‐up success. Journal Of Intellectual Capital, 3(2), 180-198. doi:10.1108/14691930210424761 Pontuch, P.2012 Financing Constraints, Product Market Competition, and Business Cycle Sensitivity. SSRN Journal. doi:10.2139/ssrn.1763961 Sillard, P.2013. Financing Constraints, Product Market Competition, and Business Cycle Sensitivity. SSRN Journal. doi:10.2139/ssrn.1944113 Popp, A., & Holt, R. 2011. The presence of entrepreneurial opportunity. Business History, 55(1), 9-28. doi:10.1080/00076791.2012.687539 Sarr, M.2009. Generating an idea: will it be publishable?. Equine Veterinary Education, 13(3), 114-115. doi:10.1111/j.2042-3292.2001.tb00072.x Simons, D. 2011. LED HIGHLIGHTS STATE ECONOMIC SUCCESSES IN 2010. States News Service. Retrieved March 5, 2015, from http://www.highbeam.com/doc/1G1-245696449.html? Tuver, A.2009. San Diego businesses optimistic about economy. Knight Ridder/Tribune Business News. Retrieved March 5, 2015, from http://www.highbeam.com/doc/1G1-124828220.html? Weimer, A. 2010. The idea business. Business Horizons, 8(3), 69-70. doi:10.1016/0007-6813(65)90007-8 Read More