1. Marketing Plan Summary
This Marketing Plan lays out the intended strategy for launching Shopping Made Easy, a firm that will specialize in personal gift shopping. According to a study by the National Sleep Foundation, the average employed American works a 46-hour work week; 38% of the respondents in their study worked more than 50 hours per week. Therefore, many busy professionals may find it difficult to set aside the time necessary to select, purchase, and wrap special gifts that will delight their loved ones. Shopping Made Easy has already begun marketing via word-of-mouth within a group of friends, all middle-aged fathers residing in East County San Diego. These men have expressed an unmet need for assistance to not only select the “perfect” gifts for their wives, daughters, or employees, but to also wrap each gift beautifully and pair it with a fitting card. Shopping Made Easy will be a full-service personal gift shopping firm specializing in the extensive knowledge of the latest trends for different demographics, personalized gift selection and purchase, exquisite wrapping, and timely delivery. The mission of Shopping Made Easy will be to focus on and cater to the unique gift shopping needs of each individual customer
2. Target Market
· The results of a BizRate poll conducted in 2006 for the shopping web site Shopzilla suggested that for 48 percent of men, holiday shopping brings on feelings of inadequacy, confusion and anxiety. More than 56 percent of women, on the other hand, say they're actually excited about buying holiday gifts (Chatzky, 2006). Therefore, the target demographic for Shopping Made Easy will be men, particularly family men who feel confused, agitated, and overwhelmed about shopping for gifts.
· The firm will target men who fit the following criteria:
o Attempting to balance busy professional and personal lives.
o Have significant others, children, relatives, or employees for whom to buy gifts.
o Feel anxious about selecting the right gift and/or do not have the time to pull off the “perfect gift.”
o Have the financial means to purchase gifts:
§ Since Shopping Made Easy’s services will add a supplementary expense to the cost of a gift and the firm will specialize in high-end brands such as Coach and Tiffany &Co., the firm will market toward those who earn an annual income estimated to be near to or greater than the county average of $56,224 (U.S. Census, 2007).
· Shopping Made Easy plans on directing the majority of marketing activities toward supervisory professionals in various work environments. These professionals would be most likely to meet the above criteria.
3. Geographic Segmentation
· The initial geographic target area will be San Diego County, and the allocation of resources will be based on the relative economic growth and industrial activity within each zip code.
· The following information from the City of San Diego official web site suggests that the area will be an appropriate setting for the services of Shopping Made Easy.
o The City's 1.25 million residents make it the seventh largest city in the country and the second largest in California.
o The median age of San Diego's population is 32, with two-thirds less than age 35 and only 10 percent over 65.
o Nearly one-third of San Diego's workforce over the age of 25 has at least a bachelor's degree.
o More than 96 percent of San Diegans are employed, and the median family income approaches $40,000.
o The top industries in San Diego are manufacturing, defense, tourism and agriculture.
o Telecommunications, software and biotech are among San Diego's fastest growing industries, and San Diego has become the nation's center for wireless industries with the city being dubbed "Telecom Valley."
4. Market Needs
Shopping Made Easy aims to provide a service that will take the stress and uncertainty out of gift-giving. The company seeks to fulfill the following benefits that are important to its potential customers:
· Convenience. A representative from Shopping Made Easy will come to a potential customer’s home, place of business, or other convenient location of their choice to meet and discuss gift options. If the customer prefers it, the entire transaction can also be completed over the phone. The goal of Shopping Made Easy is to add ease and convenience to the gift shopping process, so eventually the firm would like to add an online component to the service as well.
· Individualized Services. These services include but are not limited to selecting, finding and purchasing, wrapping, and delivering gifts on behalf of customers. According to the United States Postal Service web site, the holiday season is their busiest time of the year. Shopping Made Easy will be aware of and act according to any postal deadlines. Whether a customer needs a gift to be shipped or hand delivered to the recipient, the company will be responsible for the gift’s timely arrival.
· Extensive Knowledge. The representatives from Shopping Made Easy will conduct thorough research of the latest, most popular gifts for different age groups and special interests. A representative from Shopping Made Easy will ask each customer several questions about their recipient and price range in order to personalize gift options. Based on this information, the representative will bring a binder prepared with photos and prices for a variety of gifts that will be the most likely to surprise and delight the recipient.
5. Trends and Market Growth
Shopping Made Easy will distinguish itself by taking all the work out of the gift-giving process for its customers. According to a survey recently published by Nielsen Online, holiday shoppers continue to search for convenience by shopping online.
Top 10 Reasons to Shop Online (U.S.)
Reason Percent of Respondents
Able to shop 24 hours a day 76
Saves time 74
Avoiding crowds 65
Saves gas 59
Sales/Discounts/Promotions 55
Low prices 53
Comparison shopping 48
Selection 40
Available product information 37
Items are in stock 37
(Source: Nielsen Online, Pre-holiday Survey, November 2008)
Shopping Made Easy can provide all of these conveniences by taking on every aspect of the gift giving process, including the scouring of web sites for the best online deals. Survey results also indicate that holiday gift budgets are shifting. Respondents said that they would spend an increased portion of their holiday shopping budget online, an average of 41 percent compared to 39 percent last year. Also, more respondents indicated that they would spend the majority of their holiday gift budgets online, up to 36 percent from 32 percent a year ago. Consumers continue to rate convenience over price as the primary benefit of shopping on the internet, with 76 percent of consumers citing the ability to shop 24 hours a day and 74 percent saying that saving time is why they shop online. This data suggests that a convenient shopping experience is in higher demand than ever before and shows strong potential for market growth.
6. SWOT Analysis
The following SWOT analysis describes the key strengths and weaknesses as well as the opportunities and threats that Shopping Made Easy could be faced with.
· Strengths
o In-depth knowledge and insight about the latest, most desired gift items.
o Individualized services based on each client’s needs, and each recipient’s unique style and background.
o Without office space and inventory, low overhead costs will allow for a more favorable budget for initial Marketing efforts.
· Weaknesses
o The challenge of developing brand awareness as a start-up company.
o The reliance on word-of-mouth to establish credibility.
o The challenge of convincing customers that Shopping Made Easy provides more benefits than other channels of convenient shopping.
· Opportunities
o Growing need for a convenient way to shop for gifts.
o Many men feel overwhelmed by the idea of holiday shopping.
o The ability to extend services to other occasions and become each customer’s personal shopping service for every gift-giving opportunity throughout the year.
o Very few competitors offer the same services.
· Threats
o A slump in the economy could discourage potential customers from spending their discretionary income on a seemingly “luxury” service.
o Potential competition in response to the growing need for convenience.
7. Competition
Shopping Made Easy is an adapter in the personal shopping market because none of the competitors are currently offering the following unique benefits:
· An unlimited choice of gifts, including:
o Experiences – i.e. a wine tasting weekend, concert tickets, and spa packages
o Jewelry, Clothing, and Handbags from virtually any designer
· Specializing in “San Diego-Specific” Gifts, such as:
o A special night out on the town, planned by Shopping Made Easy
o Items from popular local boutiques
· Face-to-Face “we’ll come to you” meetings with clients
· Individualized gift wrapping, greeting card selection, and delivery
To follow is a descriptive list of competing personal shopping firms.
www.beyourewife.com: Offers gift packages, such as Mama’s Boy, Perfect Brother, Professional Silver, and Professional Gold for different price ranges and needs. Shopping Made Easy would also offer packages but would give customers the option of a’la carte services.
www.personalshopper.com: Customers can shop by Price, by Trend, or by Category on this shopping web site. The personal shopper portion asks customers to complete a survey about the recipient and then subsequently delivers gift ideas. Shopping Made Easy would eventually offer a similar automated service, but would also provide the personal touch of face-to-face and phone conversations.
www.your-shopper.com: “Your Personal Shopper is a network of personal shoppers, who are able to fill your every request for personal gifts, business items, promotions, etc…” This company’s model is the most similar to Shopping Made Easy. However, their services are limited to the internet for San Diego residents. Your Personal Shopper’s fees are 10% of the total gift, with a $25 minimum purchase.
8. Marketing Mix: The 4 P’s
· Product
o Product Variety: Tailored to each customer’s needs
o Quality: Specializing in shopping for high-end, high-quality gifts
o Features: Gift suggestions, purchases, wrapping, and delivery.
o Brand Name: Shopping Made Easy
o Returns: Shopping Made Easy will buy gifts from vendors who offer flexible return policies.
· Price
o Based on the prices of competing firms, Shopping Made Easy will charge customers 10% of the total gift cost with a minimum purchase amount of $50. The total gift cost will include the costs of shipping, wrapping, and purchasing each gift.
o Packages: For repeat customers, Shopping Made Easy will offer pre-paid annual flat rate pricing.
· Promotion
o Advertising: Local Print Media and Fliers
§ North County Times, San Diego Union Tribune, San Diego Business Journal
§ Fliers on public bulletin boards at Starbucks stores near large companies.
o Sales Force Activities:
§ Making calls and sending emails to local news stations to inform them of our unique services and inquire about being included in a piece about holiday shopping.
§ Promotional booths at local trade shows.
§ Immediate follow-up on responses to flyers and print advertisements.
· Place
o Promotions will take place in and around San Diego County, with a focus on the zip codes that contain the county’s largest companies (San Diego Source 2007).
§ 92121: Qualcomm, Science Applications International Corp., Scripps Healthcare, Wells Fargo
§ 92122: General Atomics
§ 92101: Sempra Energy, SBC Communications
§ 92127/92128: Sony, Palomar Pomerado Health, Nokia
9. Critical Issues
As a start-up business, Shopping Made Easy will still be in its infancy. The critical issues are for SME to:
· Establish itself as a firm that will reliably fulfill the need for a convenient, worry-free shopping experience.
· Pursue growth by initiating promotional efforts in areas of high economic activity.
· Monitor customer satisfaction to establish credibility in the marketplace, and create positive brand awareness.
References
Chatzky, J. (2006 December 12). Msnbc.com Holiday Guide. Men and Women Differ on Holiday Shopping. Retrieved November 18, 2008, from http://www.msnbc.msn.com/id/16160277/
City of San Diego. Economic Development Important Facts and Figures. (n.d.) Retrieved on November 19, 2008, from http://www.sandiego.gov/economic-development/glance/sdfacts.shtml
Nielson Online (2008, November 19). Holiday Shoppers Continue to Shift Purchases Online for Convenience, but Competitive Pricing More Important this Year than Last. Retrieved on November 20, 2008 from http://www.nielsen-online.com/pr/pr_081119.pdf
San Diego Source: The Daily Transcript. San Diego’s Top Influentials SourceBook 2008: City of San Diego Largest Employers. (n.d.) Retrieved November 20, 2008, from http://sourcebook.sddt.com/Source/companies.cfm?BusinessCategory_ID=140
U.S. Census Bureau (2007). General Profile San Diego, CA. Retrieved on November 19, 2008 from http://censtats.census.gov/cgi-bin/usac/usatable.pl?State=&County=06073&TableID=AAA