Marketing Plan Project: From Bags to Riches Danette Faulkner Dr. Neil Southern Marketing

From Bags to riches ships lodge was founded in September 2007 in north Mississippi with the goal of creating and selling hundreds of authentic, exclusive spring bulge places and jewelry. From Bags to Riches advances access to borrow hundreds of purses and jewelry as oftentimes as you like. a) Internal environ behave forcet Mission Statement If you impulse an authentic designer handbag, you leave behind love From Bags to Riches.Imagine always having the perfect bag and necklace to match. From Bags to Riches is an internet business that cites gritty fashion noblely cheap by borrowing designer handbags and jewelry to consumers at portion of the sell price.A spot element of the internal environment is the power of fashion inspires exc dotent, confidence, and that tone good vibe all adult female gets from wearing something wise. We know that when a woman looks her beat let out she feels her best. Our mission is to extend this feeling to every woman on a regular basi s by offering high fashion at a highly brook fitted price. b) External Environment From Bags to Riches faces new(a) seasonal trends in ever-changing fashion industry. We ar constantly adding new designers and items to our collection so new items appear on a daily basis. We entered during a period of prosperity.A high level of posit for our merchandise is due to celebrity fashion and affordability. The fashion industry operates in a persistent stat of progression, reinvention, and renovation. New styles go out as readily as they come in. We ar regularly clearing out our closets to make room for the hottest new collections from all all over the country. Since we rent designer bags by dint of the e-commerce business, we argon closely related to technological advances. We design the internet to exsert low monthly memberships and no late fees. Our demographic environment would be directed towards millions of women from 16 to 60 family olds.It likewise includes women who sho p on the internet. c) SWOT Analysis Strengths of From Bags to Riches are that they offer the intimately sought-after(a) after designer brands at low rental prices. We are adapted to adapt to technological win over and new fashion trends. We form planetary relationships with all major designers. Our master(prenominal) weaknesses are our financial support, knowledge in the local market place and the ability to expand in our rate of flow location. The main opportunities identified are technological advancement in return ordering, variegation of products and future expansion to separate markets.Our threats include current economic mood and the volume of indirect competition from otherwise designer bags and jewelry companies. II. marketing Objectives Marketing objectives that are attain equal to(p) and realistic goals would have to be define as increasing customer satisfaction by making every individual woman feel fashion competent. We would like to use to Product argument strategy to satisfy the main desires and take ins of our consumers. Our customers must maintain swan in our association. We take authenticity of our bags very seriously. We ask to increase our gross gross sales by 75 percent within the next year.We grass beset adoption by distri scarcelying free rental after the first membership purchase. The rental of designer bags and jewelry business is crushed but exploitation and I would like to minimize our competition. III. Marketing Strategies a) Target Markets Our hindquarters is in womens fashion market. Demographics include females aging from 16 to 60. Some men possibly included because men would often join to rent small products for their wives, daughters, and mothers. The average incomes would range from 20,000 to 100,000 per year. Psychographics would be women who spend a lot of duration obtain with their family and friends.They enjoy looking nice and are tight spenders. The earthly concernity would be directed at th e end consumer or buyer as we attempt to increase customer demand. The media habit used would mainly be the internet and shopping advertisements. Women would frequently read magazines such as harpers Bazaar and Lucky. Women of all ages testament be cap adequate to afford expensive jewelry and purses in order to wear to weddings, banquets, proms, or to other dances. b) Positioning the Product From Rags to Riches positions its products as the number one company of designer handbags and jewelry for rent. We never carry fake, faux, or replica bags or jewelry.Our company emphasizes choice and flexibility. We strive to always be responsive to the consumers unique needs. Bags git be borrowed for any length of time for a week, month, or much. Our Core Product forget be access to lean brand purses and high-end jewelry. The Actual Product testament be the rental of the purses and jewelry. The augment Product lead be that we offer a monthly subscription fee, designer recommendation serv ice, and unlimited supply of our products. We entrust communicate the marketing strategy though intermediaries such as designer agents retail cut ins and distributors.We go forth have access to customers by apply our vendors. For example, someone that buys Gucci purses straight from the manufacturer forget be able to publish to a greater extent(prenominal) capital by undertake a purse for our company instead of overcompensateing $400. 00 dollars on the skin senses for a true purse. They volition be able to ex transfer purses for new styles. c) Product Strategies In order to be able to fit out our sales goals we must be able to distribute our customers what they want the must by offering different major brands. We go out offer Couture bags with are lead worthy handbags and jewelry from the top designers such as Gucci and Rosiblu which hail the most within a month.The is Diva bags which are luxurious, dream bags and jewelry from Louis Vuitton and Charriol scratch at ninety dollars a month. Then we offer the Princess, which is a short(p) less bellly, and it includes accessories from Burberry and Coach. Last, we offer the Trendsetter fresh, trend-forward small accessories from designers such as Dooney & Burke and lolly Haan. d) Pricing Strategies The combination of high expense and low shelf life sentence makes designer apparel affordable to only a few. Our products allow outride the same regardless of the amount of produced therefore, it pull up stakes be a contumacious cost.We entrust need to estimate the demand by finding out how much of our product does our customer want and how will this change if prices go up or down? When our economy is down the consumers are more interested in lower prices. Our customers will non have to pay the high price for high quality instead, they will be able to pay a low monthly fee for high quality. The archetype of borrowing levels the playing field and allows everyone the opportunity to carry the la test styles and without the cost. The current pricing should work for fashion bags and jewelry. The price must reflect the boilers suit company objectives.A number of factors need to be considered before prices are allocated to for each one of the products. For instant access to the newest styles of high-end handbags and jewelry, prices will range from $25. 95 a month for three months or $67. 95 for one year. Customers will receive the best value by purchasing the year membership by economy over 55%. e) Promotion Strategies Advertising is the most familiar and ocular part of the promotion mix. Product advertising will focus on what our company has to offer. For example high-end jewelry and purses at half the retail price.Personal selling, public relations, and direct directing are all good strategies for From Bags to Riches, although they might not be the most effective. We can use sales promotions such as coupons, rebates, and premiums. By offering premiums will help us give so mething limited to our existing customers. The media must also reflect our objectives. Our position can change over time and provide a number of advantages for our product. By using the unique selling proposition, we can get our direct reason out about our product and show our consumer why it has better quality and how our product qualifies consumers needs.Because From Bags to Riches budget is limited, we will keep the message simple, emphasizing how on the table and convenient our product is. By using advertising, we will be able to control what the message will say, when it will appear, and who is will see it. From Bags to Riches will use guerrilla marketing so that we will be able to catch them as a surprise. We can place small messages or coupons for our online store on the back of receipt for retail stores. If we were able to use public relations, it would be low in cost and give us high credibility.With the limited budget, ads in direct harness brochures will be small. Tele vision advertising From Bags to Riches will purchase a small amount of line of work advertising. This type of advertising will be flexible and high impact. It will air on local cable shopping networks directed towards women. Television is a useful means for revealing a story or for demonstration purposes. Viewers are often relaxed, which can be a negative because our message needs to be easily understood. Its not like direct mail, newspaper, and magazine advertisements where you can look back over the information in order to get through the message.The negative attributes of using television advertising is that it can be high in costs and quickly forgotten. Magazine advertising From Bags to Riches will advertise in all fashion magazines with some success but this will be an expensive option. By using magazine advertising, we will have a specific target audience and have extensive image quality. This will show all of the new products for each season. We will also offer discounts through the magazine subscribers. get off television advertisements in exchange for magazine advertising can be very beneficial. This will enable us to keep the same budget, fleck increasing exposure.We will have to use several magazines to reach our target audience. Direct mail advertising From Bags to Riches will use this to save on cost depending on location, how much we send, and po submit cost. Direct mail advertising will first emphasize From Bags to Riches two key benefits. It will offer a lot of detail towards a certain customer so that its personal which is most important to effectively reaching the core target market. By using direct mail advertising, we will be able to receive feedback. Direct mail has a dependable history of generating high-quality leads for entrepreneur business. f) Distribution StrategiesChances are that we have more competitors than we even thought. Primarily From Bags to Riches products will be direct sales through the internet. Our customers will be experiential shoppers because we offer fast shopping and they will be entertained by the hunt. Sales promotion will be a positive incentive to retailers to support our product. It will be the most effective distribution channel because we will be able to sell directly to the end-user. We will be able to distribute our item by using the internet. We can place our URL address with advertisements on clothing, magazine, and shopping websites.We will also identify key promises made by our company. IV. Implementation Strategies The tasks required to implement and superintend each strategy are listed in this section for From Bags to Riches. a) Action Plan From Bags to riches will use the push strategy and have retailers offer our renting process and they can attract their customers to select our product. My company is in its introduction phase so our objective is to create awareness of and push customers to try our product. We will fall in with department managers to promote our plan and mission statement. We must set up appropriate times to meet with jewelry and purse designers.Third, we must meet with managers to discuss new trends in clothing and accessories and how to improve customer feedback. Lastly, we will schedule and promote course for organization. b) Budgets Television advertisement can stock in the midst of $400. 00 to $3500. 00 depending on airtime and service station. Magazine advertisement can cost at the most $10,000. 00, which would be the most expensive based on which magazines we choose to go with. Mail orders would be relatively cheaper running between $300. 00 to $600. 00 depending on location. We will be able to generate enough money in order to use the best promotions.If these dont work out or are too costly, we will have to change our direction and switch to something less costly. c) Timing/ Schedules We plan to exceed growth patterns with in 12 months to little over the coming year. We will typically focus on the performance of our s hipment to our customers renting our jewelry and purses. We will typically focus on the mechanics of the media, mailing and promotions. Using the cost per thousand method will help to measure our cost strength of our ads and compare promotions at separate publicity rates and will give us a specific cost to deliver our message to over 1,000 people.From bags to riches will continue to envision where the company is going and where we need the company to be within the next three to five years. We are ultimately reaching for the best customer satisfaction as swell up generating higher sales. Our company will add three new employees every six to nine months. Office space will expand accordingly. We will have two team leaders to every manager so that manager will have the help they need. Future results for the coming year will be Gross sales $154,000 Net profit $12,400 V. observe and Control StrategiesIn order to better serve our customers From Bags to Riches will monitor and control ou r product. Using the AIDA model will encourage our customers with action, desire, interest, and attention. With database marketing, we can institute relationships and learn our customers preferences. It can also attract new customers. We need feedback and opinions from our determine customers so that we are capable of serving them to the highest quality of needs. We can treasure our strategy by measuring the consumers response to sales promotions.We will also be able to evaluate and compare sales performances by area and sales force. a) Research Using market research will help the company understand what exactly the competitors are doing that we arent. We can also use online research techniques that can test our customers reactions to product ideas, which is faster than other research. We will be able to know what special products, service or pricing offers do the customers get from my competition. By using copy examen method, we can find out if our promotional ads are working f or our consumers.This will tell us whether our consumers are receiving and responding to our ads. I will be able to find out needed information to better my sales and my company. I need to ask questions such as how are other companies products or services similar to my product and services. The key to winning the target market is to differentiate my company by providing products, services, or solutions that my customers will find more desirable than whats offered by my competitors. b) Trend Analysis From Bags to Riches will do a seasonal trend analysis to understand the new and upcoming styles for our customers.This will give us an insight to what exactly our customers want and enjoy. Our store image would be luxury and elegance. Our personnel should match the stores image. At this point, we will be in our growth stage and we will need new and improved advertising to make us stick out from our competition. c) Marketing Audit A Marketing canvas will be done annually. This will be he lpful for our company and our customers. This can help fix problems we have internally and problems that are remote of the companys authority. We can reinforce our mission statement and maybe enable us to offer new products.