Yeti Card & Gifts, also known as Yeti, is a retail company that sells a wide variety of gift cards and cards. Yeti’s motto, “Fun Function & Funky,” is what it stands for. Yeti opened in 2012 as a gift shop specializing Asian decor and gifts. Yeti quickly out-grew its original space and is now located in the Wigman Hospital/Physicians & Surgeons South Building, open Monday through Saturday 10 am – 6 pm. Yeti is currently finishing tenant improvement on their second location. It is located in University Heights. The grand opening of the space is set for July 4th.
The Market
Yeti has managed to successfully appeal to two distinct market segments in a way that no other retail gift/card store has been possible. Yeti’s first target segment is university students. This group is identified by their younger age, higher disposable income relative their household income. For many students, the years at university is the first time they are living away from home and away from their parent’s often watchful and restrictive eyes. Students are able to maximize their disposable income and sometimes, unfortunately for them, go beyond their financial means. This market segment has 38,833 potential clients.
Yeti is also very successful in appealing specifically to the University faculty and staff as well Wigman Hospital staff and greater Cleveland Heights/University Heights residents. This segment is a maturer market. They are seeking a secure and friendly environment that is nostalgic but also youthful with excitement. This segment has more than 191,590 potential buyers.
Competitive
Yeti’s competitive advantage is their ability serve two market segments simultaneously, something that no other gift/card shop can do. Yeti was able to achieve this feat because of two competitive advantage. The first is a large product range that appeals equally to both target markets. Yeti’s alternative motto, “Risque and not Raunchy” captures this idea perfectly. Some of the products are a bit too extreme for good taste, but nothing is offensive or outlandish. This creates a relaxed atmosphere with an edge. However, it is one that everyone would be comfortable in. Yeti is able serve two distinct groups of customers thanks to its extensive product portfolio. Although a wide product choice is sufficient to provide two customer segments, it does not mean that the selection alone will suffice. Their competitive advantage is their high-quality customer service. This supports their large product range. The store provides outstanding service to customers who feel like they are truly welcome and enjoy the entire shopping experience. Every Yeti employee receives training to ensure that customers have a pleasant, positive, and helpful shopping experience. The sales staff realizes that the job of their employees is to help customers with any type of assistance they need. The customer will leave the store feeling that Yeti exists to cater to their individual needs.
Yeti Cards & Gifts opened almost two years ago and has proved that they can meet the needs for two distinct customer segments. The Yeti concept is being led by the husband and wife team of Dan and Ishada Gordon, both of whom bring a wealth of experience and skills to the company. Yeti is currently preparing for the grand opening of their second location and its overall growth looks quite promising. The sales forecasts predict revenue of $169,000 in Year 3 and $180,000 in Year 4, with net profits of 5.96% & 7.59%, respectively.
1.1 Mission
Yeti Cards & Gifts’#8217’s goal is to bring new products to customers and staff in a fun and friendly environment. Our top priority is customer satisfaction.
#8220Fun, Functional & Fun, That’s Yeti.
Success Keys 1.2
These are the keys for success
- Offering products of high quality and value that are not readily available elsewhere. This is crucial for maintaining niche markets mentioned in the Executive Summary.
- Promote and advertise in the areas our target customer base will be aware of our store.
- Continuously reviewing sales and inventory levels and making adjustments as necessary.
1.3 Objectives
Yeti has set two goals for the company. The objectives are lofty, yet achievable. You can track and develop your progress.
All employees will work to reach the goals and be motivated by the organization.
- To increase your visibility and sales potential, open a second shop in University Heights.
- Open a third store in Year 4.
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