Aztec food imports (Aztec), will supply Mexican food product imports to meet the increased demand by the city’s Hispanic/Latino communities in the greater Richmond area. This community, which now accounts for half the Richmond Metro population (255,000), has seen a 70% increase in its size over the past five years. Aztec has been successful over the competition in supplying imported mexican food products to the area’s two PriceRight supermarkets. From this base, Aztec will build a successful business serving the area’s large and small markets.
1.1 Objectives
Establish Aztec Food Imports as the number one importer of mexican food products in Richmond.
In the next two years, we will see a 20% increase in the number mexican food products sold on local markets.
Build solid working relationships with the purchasing agents of the local stores serving Richmond’s growing Hispanic/Latino population.
1.2 Mission
Aztec’s mission will be to import Mexican food from Mexico to Richmond stores that aren’t being served by the importers more than 150 miles away. Raymond Garcia, Aztec’s co-owner, will use his import experience, his knowledge in the food retail industry, and his contacts in Mexico in order to deliver products that customers in the area are looking for.
1.3 Keys for Success
Success in Aztec’’s business is possible by these keys:
Offering high-quality, unique products that are not readily available elsewhere. This is critical to maintain the niche market segments mentioned in our mission statement.
Reliable, timely delivery. Aztec must make good on its delivery promises. Because of the nature of doing business in Mexico, this requires long-range planning in scheduling orders, taking into account Mexican business practices.
A reliable administration who is available to help customers, prepare accurate bills, follow up on orders, and keep a close watch over expenses and collections of accounts receivables.
Fantastic Florals, Inc. imports only handmade flowers from Indonesian artisans. The company’s main office can be found in Anytown Oregon. There is also a Seattle customs house broker who can assist with any related issues.
FFI quality products have a unique and exclusive appeal. Its target customers are women with high-incomes and middle-class families. FFI’s competitive advantage is the fact that all of its products are handmade. This makes them stand out from other competitors. FFI hopes to attract people who enjoy the art of making silk flowers. FFI products consist mainly of silk flowers and hair accessories. The company considers itself to have a place in the retail market for gifts, though some consumers may choose to purchase the product.
For the starting year, the company plans to attract manufacturer reps and retailers to distribute the products by attending the Silk trade show in Chicago, Illinois. This trade show allows buyers and suppliers to meet and make deals to sell silk flowers and other products. FFI projects that sales will reach $1.1 million within the first year. FFI will open an exclusive gift store for its product in Anytown, at the Third Street Public Market. The lease term is five years.
For the following year, the company plans to expand to direct mail catalog sales by being in an established catalog, with a similar target market. FFI predicts $1.5 million in sales for Year 2. FFI projects sales of nearly $2 million in the third year. This includes both direct sales through suppliers and catalogs.
FFI’s flower family will increase in Year 3, adding 10 more varieties of flowers and arrangement. It is realistic to expect a gross margin of between 25 and 30 percent. The annual sales growth rate is estimated at 25 percent.
1.1 Objectives
Year 1 sales over $1.1 million
Open gift shop in Anytown on Third Street Public Market, with a five year lease.
Expand into direct mail catalogs for Year 2.
Maintain gross margin of 25 percent.
Establish annual growth rate of 25 percent.
In Year 3, expand product range by adding 10 new types of flowers and arrangements to the flower family
1.2 Mission
FFI’s mission is to be a well-respected importer of high quality, artisan silk gifts in the United States. The company is committed to customer satisfaction and strives for friendly service.
FFI’s purpose is to enhance customer appreciation of handmade silk flower and other silk products, and to offer customers beautiful and unique artistic decorations.
1.3 Keys to Success
Fantastic Florals Inc. is looking for key success factors
Product quality.
Customer service.
Access to manufacturers and distribution channels.
Controlling fixed as well as variable costs during the first year.
Poppi Designs, an importer of Italian furniture in New York, is Poppi Designs. Over 10 years ago, the business was founded in New York. Since then, there have been many changes to its business strategy. The refined model is to import a wide range of Italian furniture and sell primarily to designers and unfinished furniture retail stores. The company has two principals, Kate Jackson located in N.Y., and Luca de Febonio located in Rome, Italy.
The Concept
Poppi is aware that the market for quality furniture can be very competitive. This is why they will focus their efforts on niches. They also recognize the importance of avoiding the big furniture superstores by focusing on remote areas. Poppi Designs will have full control over the import process by leveraging Luca’’s expertise in Italy. Poppi Design will have Luca in Italy as both the principal and agent.
Poppi Designs has three keys for success. The first is to build a relationship of high quality and high value with its vendors. A second key is to make sure that their products are delivered on time. Reliable administration is the last requirement for success.
Poppi was set up to be a home-based company with additional warehouse space. This will allow for the most cost-effective arrangement while still providing the required support and service.
The Market
Poppi Designs will target 3 market segments. Their primary market segment is specialty retailers, which makes up around 80%. This segment is growing at 2% and there are 16 potential customers. Poppi will reduce their dependency on this niche by focusing its marketing efforts. This market is more competitive and Poppi will target targeted marketing to increase their reach. The second is designers. They also enjoy a 2% growth rate and have 44 potential customers. The final targeted niche is the unfinished furniture retailer, with a potential 50 participant market and growing at 2%.
The market is less about brand equity and more about the actual product and the service provider. It is very important to the customer to touch and feel the product. The salesperson plays an important role in the transaction. These realities are beneficial to Poppi as they can pick and choose from a variety of manufacturers instead of being able to sell products from only known companies.
The Marketing Strategy
The sales strategy relies on direct sales calls to all market segments, except interior designers. Kate Jackson is the owner and must make the sales calls based on her expertise and knowledge of competitors and the products. Experience has shown that more time is spent on sales leads to more sales. A full-time team member needs to be found and added as soon as possible. Kate’s main task of selling is being diverted from her time by this person.
Poppi Designs with its well-focused business plan will reach profitability by month two. Based on conservative forecasts, sales could almost double between years one and three. The net profits will be proportional.
1.1 Objectives
Poppi Designs aims to:
To put in place adequate, and reliable, administrative machinery, allowing the owner to spend her time selling and maintaining major accounts.
Poppi’s efforts will be concentrated on certain market sectors that have been identified as promising.
To improve the reliability and timeliness of shipments from Italy.
1.2 Mission
Poppi’s mission is to provide chairs and other furniture items in niche markets that are not served by large domestic manufacturers. Poppi Designs’ owner uses her interior design experience, her knowledge in furniture retail, and her connections in Italy to customize her products for these market niches.
1.3 Keys To Success
Poppi Designs’s key to success are:
Offering products of high quality and value that aren’t available anywhere else. This is important for maintaining the niche market segments mentioned in our mission statement.
Reliable, timely delivery. Poppi must deliver on its promises. Poppi must keep its promises due to the fact that it does business in Italy. This requires long-term planning, including consideration of Italian holidays and business practices.
A reliable administration who is available to help customers, prepare accurate bills, follow-up orders, and keep an eye on expenditures and collections of accounts receivable.
Visigoth Imports offers complete import/export brokerage services, including shipping and warehousing as well as delivery scheduling. The company will concentrate on special and cultural imports from Germany and Scandinavia to the unique Bavarian town of Leavenworth, WA. Visigoth offers trade consultation services to new farms established under the Puget Consumers Co-op’s Farmland Fund Initiative.
Market
Visigoth is going to be serving two types clients only: the Leavenworth Gift Shops and the Puget Consumers Co-op Farmers (PCC). We have secured exclusive endorsements and contracts in both market segments. This gives us the unique opportunity to serve these niche clients.
These two markets are expected to have excellent profitability, particularly in the import section. Leavenworth attracts over a million tourists every year. The co-op’s profitability will grow slowly in the initial five years but we expect it to increase steadily.
Competition
All potential importing firms serving small enterprises, such as farms or specialty shops, are subject to competition. Practically, this means that we will not compete against the largest import/export businesses such as Eagle Distributing, Fisher-Mills, or other large, national companies. The majority of other companies are regionally focused. Foreign trade is fragmented. There are many small businesses that mainly serve small firms, and a few larger companies that look for large contracts from large companies like Microsoft or GM. This makes competition within the industry very intense. Our niche strategy will avoid the drawbacks of competition such as price battles, etc.
Why Us?
We will be the preferred supplier of imports to Leavenworth, a unique tourist destination. Visigoth understands that the import shops and restaurants in Leavenworth have special needs of most unique gifts for the million tourists that visit the town annually. Visigoth Imports understands that new farms created by the PCC farmland funds initiative have higher prices than other competitors. They will need to export their produce at an acceptable profit. Visigoth Imports brings together 35 years of experience in the export/import business. We believe in building long-term relationships with our clients to ensure seamless delivery and loyalty.
Expectations
Forecast
Most of the company’s liabilities will come from outside private investors and management investment, however, we have obtained current borrowing from Bank of America Commercial Investments, the principal to be paid off in two years. Charter Bank of Nieurich will pay off a long-term loan in ten years.
The company expects that it will be profitable by year 2. It does not anticipate any major cash flow problems. A break-even point will be achieved by approximately 3,500 units per monthly.
