Gift Novelty Souvenir Shop Business Plan


Gift Novelty Souvenir Shop Business Plan


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

  1. 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.

  2. Promote and advertise in the areas our target customer base will be aware of our store.
  3. 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.

Gifts, Novelties, Souvenir Business Plan


Gifts, Novelties, Souvenir Business Plan


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.

  1. 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.
  2. To achieve a modest profit of Rp. 1,801,000 by the second year and Rp. 6,807,000 in the third year.
  3. 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.