The “Gift Shop” at Avant-Garde Building has long offered a wide range of novelties and stationary inside one of the most prestigious landmark buildings in Jakarta, Indonesia. Customers of the Avant-Garde Building’s Gift Shop were primarily tenants. The new venture, “PT. Avant-Garde Shop, in a joint operation to PT. ABC Company Indonesia. We intend to broaden our customer base, not only by targeting tenants, but also neighbours and visitors to Avantgarde Building. The grand opening is slated for December 9th. Our main priority at PT. ABC Company has one goal: to remodel the existing outlet so that it can be used as an official store for professionals, who are the main focus of our marketing program. [NOTE: *PT stands for Indonesian Perseroan Terbatas and is a shorthand for Limited Company.
This business plan lays out our strategy for re-positioning the “Gift Shop” from “just-another-store” to the “Official Store of Avant-Garde.” This plan will detail services to be provided by ABC Company in the joint operation, along with the implementation milestones for each step. ABC Company will give strategic recommendations on how to increase the traffic and image for the retail facility by renaming, image overhauling, remodeling of interior and merchandise resources planning.
The Market
Avant-Garde Building hosts approximately 100 offices. Avant-Garde Building attracts roughly 1,000 people daily. Avant-Garde Shop identifies three distinct market segments.
The primary target customers are approximately 1,500 Tenants who are white-collar workers earning high disposable incomes. The area’s office community, which often visits the Avant-Garde Building during lunch hours to catch up with colleagues or friends, are our secondary target customers. Both of these groups are known to be willing to purchase from retail stores in the Avant-Garde structure. Its location on the Mezzanine just above the ground-floor eating area is ideal for catching their attention.
The Avant-Garde Shop’s final target customers are tourists and Jakarta Metro residents who visit the Avant-Garde Building as a way to feel glamorous and be part of Indonesia’s modern economy.
Strategy
PT. Avant-Garde Shop will build on the Avant-Garde Building’s existing brand-name and image to create a powerful brand that reflects power and modernity as well as wealth and global sophistication. We will increase the retail space through a new design. In addition, we will supplement retail sales by selling catalogs and web orders. It is important to remember that we do not sell merchandise. Instead, we are selling a company and an image, the New Indonesia.
All amounts are shown in the plan in Indonesian Rupiahs (IDR), also abbreviated as Rp.
1.1 Objectives
Avant-Garde Shop aims to achieve two things. These lofty goals are achievable, but they are not impossible. By developing and tracking progress toward the goals, the organization will push everyone both from PT. Avant-Garde & PT. ABC Company will perform at its best.
- The current Avant-Garde Gift Shop will be repositioned as the Official Avant-Garde Store. This will be done through the re-modeling and implementation of various marketing programs. These programs will generate more revenue for Avant-Garde and increase its overall equity.
- To achieve a modest profit of Rp. 1,801,000 by the second year and Rp. 6,807,000 in the third year.
- To make a profit of Rp. 90,299,000 in year one and Rp. 95,717,000 by year two and Rp. 101,460,000 for year three.
1.2 Mission
Avant-Garde Shop specializes in the retail sale of novelty items of different product mixes. However, the Avant-Garde Shop will focus on the sale of official Avant-Garde merchandise. The store will offer a complete selection of accessories, stationary, and apparel as well as other lifestyle-related novelty items.
Our goal in ABC Company is to be the sole supplier to those official merchandise of Avant-Garde. To be able to position Avant-GardeShop, we must follow the theme that corresponds to the lifestyle of the target customers.
1.3 Keys of Success
Avant-Garde Shop must ensure that all aspects are important to their customers for success in the retail merchandising industry.
- A variety of mix and match merchandise to best suit their white collar target customers.
- Customer service excellence in a professional atmosphere.
- Advertise and promote our store in areas where our target customers will know about it. We do this by using point-of-sales (banners and leaflets, flyers), our website, and any other marketing medium to encourage people to visit the location.
- We must constantly review our inventory and sales, and adjust our inventory levels accordingly.