Free «Business plan for All that Glitz Jewelry Company» Essay

Business plan for All that Glitz Jewelry Company

Executive Summary

All that Glitz is a jewelry company in the US that will start operating in August this year. The company will be headquartered in Texas, while other branches will be opened in Illinois, California and Michigan. The company will be offering a variety of jewelry in the form of earrings, diamond, necklaces, silver and gold rings. The company intends to partner with world leading companies such as BVLGARI Company for the supply of ornaments and other jewelry products. The company’s outlets will be located in convenient places where customers can get easy access to purchase jewelry.

The business will be located at a strategic neighborhood for easy accessibility by customers. For a business to achieve its objective, care must be taken when finding the location (Abrahams 2003). A recent survey of the jewelry market established that there is 35% of unexploited market share. The business is expected to command the market share within a short time competition in the market. This is positive and healthy for entrepreneur’s survival, thus fueling the spirit of hard work for the success of the business. Though there are competitors in the same business, the company will develop a sound marketing strategy to win the confidence of the customers.

Vision Statement:

All the Glitz is a Jewelry company is a business that will be ambitious to become the most preferred premium one stop shop in Texas. The company intends to offer its customers with the latest and timeless fashion jewelry that are appropriate for customers of all ages. The company will focus on the prime market of Texas, before opening outlets in other potential markets such as the Illinois, Michigan and California.

Mission statement

The mission of All the Glitz Co. is to be the pacesetter in the provision of the latest classic styles, fashion and trends in the jewelry industry. Since the company intends to target the high end market which consists of middle class citizens, it will provide excellent and efficient service delivery. The mission of All that Glitz is to change the jewelry industry by offering high quality, but affordable products to its customers.

All that Glitz SWOT Analysis

Strengths:

1) The business will be strategically located in a Texas where no such business exists; thus there will be no competition

2) The company will offer a wide assortment of the latest and unique jewelry for its customers

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3) The company has the strategic advantage of customizing jewelry designs for customers according to their tastes and preferences.

4) Company will open numerous outlets for customer convenience

Weaknesses:

1) Lack of adequate startup capital to finance the business

2) A lot of expenses will be incurred in buying and importing the jewelry

3) Since the business is new it will be challenging to win over customers who have been regulars at other jewelry shops. 

4) Another weakness is the ability to adapt to the rapid changing trends of the jewelry industry that makes the obsolete after a few months.

Opportunities:

1) This business has the potential to making quick financial gains due to lack of stiff competition

2) The company has the opportunity of create a reputation and developing a brand name as the best jewelry company in the country

3) The company has the opportunity of working in tadem with modeling companies worldwide for its mutual benefit and marketing its products.

4) The company will offer after sales services to its customers, such as free repair and replacement of damaged products with one year of purchase.

Threats:

1) The biggest threat is the risk of importing counterfeit products. This can significantly affect sales and ruin the image and brand name of the company. Any business must plan on how to counter counterfeit products to secure a niche in the market place (Reading 2004)

2) Patent and copyright rights are also difficult to ascertain since they differ from one country to another. Our jewelry designs could be created and circulated in diverse labels by our competitors without our consent.

3) Competition from other jewelry companies is also a vital threat to our business. A viable market strategy to counter this threat will be developed since completion keeps on increasing.

4) It may take long to negotiate for a bank loan, since the process is long.

Analysis of Competition

According to Ferrell & Hartline, (2011) any business that has a huge potential in the market must have a competitor. As a new business, our chief competitor will be Kay jewelers who are considered design giant in the jewelry industry. Although their jewelry products are expensive, they are preferred by customers because of quality and durability. For the market research survey, Kay jewelers command 55% market share, leaving the other share for other small companies. The greatest strength of Kay jewelers is that they offer free shipping to any online purchase made by customers to any part of the work. This has made the company attract customers from all over the world, thus commanding a large share of online clientele. However, the company’s greatest weakness is that its products are extremely expensive. As a result, the company attracts a small percentage of individual consumers.

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Company Goals

1) To set high standards in the jewelry industry, and develop a unique brand name by offering unique products such as customized anniversary bands, engagement and wedding products among others.

2) The company seeks to achieve high levels of customer satisfaction through the provision of quality products and efficient customer relations.

Company Objectives:

1) To become a stable self-sustainable and profitable company after 5 years of operation.

2) To increase the company’s market share by 40% in first 3 years of operation.

Strategic Options and Marketing strategies

The marketing strategy:

In designing our marketing strategy, the company will develop open ended questionnaires for our potential customers all our branches in an effort to understand their needs. To avoid any misinterpretation, the questions will be straight forward questions for easy responses. This will offer a candid market and customer preference analysis, hence helping the company to know the customer needs. For example, do you think All Glitz jewelry stands a chance? What do you think All Glitz jewelry should do to flourish? What type of products do you need that are not in the market?

Since the business is new in the locality, advertising shall be the key marketing strategy for business. Advertising will take the largest share of the marketing budget. In order to achieve projected market share of 35% or move, it is vital to embark on an exceptionally aggressive campaign on advertisement and sales promotion. In advertising its products, the company will use newspapers, magazinnes, Radio, Television, posters, billboards, signboards and novelties like pens, calendars and packing papers. Primm & Roncevich (2011) observe that, through advertising the company has the potential to build a respectable image and unique brand name. Besides, effective advertising can translate into profits, and increase demand for the company’s products and services

Another vital strategy that the company will use is provision of online services. For instance, the company will develop a unique website that will enable customers from all over the globe can buy our products at a subsidized fee. This will be through our website www.allglitz.org. The company will make use of social networks like Facebook and twitter to widen the potential customer base among the youth and middle class customers. In addition, the use of the internet will enable many people to view our collections and promote our website.

The company will also subsidize the prices of its products to attract customers. In this regard, the company will adopt the strategy of initial pricing, where customers will be given discounts on all the products worth $25 and above.

All that Glitz Company Strategic Plan

Objective

Timescale

Status

Identification of a business location

Obtaining official credentials and registration of the company

Obtaining a bank loan and setting up of building

Increasing number of customers by 300 per week

March 2012

 

April 2012

May 2012

 

June to October

Done

 

Done

In progress

Set up a new branch in Illinois

Sustain a turnover margin at 10-25%

Open a new outlet Michigan

July 2012

August 2012

October 2012

 

Open a new area office in California

Increase stock revenue by 35%

Streamline the jewelry shop

Increase in number of staff by 10%

March 2014

May 2014

November 20112

December 2012

 

Financial forecasts:

1) The startup cost that includes stockpile for the five months is projected to be at $100,000. The owner of the business will provide about 20% of the initial capital.

2) During the first six months of operation, approximately $ 50,000 will be pumped into the business from sale proceeds and bank loan

3) Yearly gross sales are anticipated to grow from $80,000 in the first five months to over $300,000 by the end of the year.

4) The Company’s net profits are projected at roughly 20% in the course of 2012, with reinvestment of 8% for growth purposes of the business.

5) The company will hold expenditure of merchandise sold at approximately 45% of sales returns. The company intends to sustain a markup margin of approximately 60% throughout the first year of business.

Note: from the sales forecast, it is quite evident that the company has an ambitious plan to succeed in the jewelry business and outdo its competitors. In addition, if the sales forecast succeeds, the company will increase its market share by a bigger margin. Correia, (2007) notes that financial forcast is the cornerstone of any business and must be given a detailed approach.

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