Marketing Plan For An Existing Business

Executive Summary

Dragonfly Designs already offers custom-made items and now we would like to expand our product lines and offer do-it-yourself items. Our existing location can be renovated to add the space needed for this service. We would also like to build a new facility with a larger work area for the do-it-yourself projects and kilns in the back area. The back area would be large enough to hold the inventory for both store locations. To accomplish these objectives, land needs to be found and purchased for the new facility. Bank financing is necessary for the building of this new facility but not needed for the renovations at our existing location.

Dragonfly Designs would also like to begin delivering our own goods locally. We already own two cargo vans for this purpose. However, a full-time driver will need to be hired for each facility. By incorporating the above mentioned services and products, we can increase our revenue, customer base, and create a new image for ourselves.

Marketing Objectives

We want to reach another target market by adding our hand-made objects to our product line. Our image now is crafted for our custom-made products and our name is synonymous with quality and status. This will help sell our new line to different customers.

The market we will be trying to reach will be of lower income than that of our custom-made projects. We will also only be marketing to local customers for our do-it-yourself items. All of these efforts are done in an attempt to increase our annual revenue by 15%.

Goods or Services

The items we will sell in our do-it-yourself product line will be made from clay. We will purchase these unfinished items and resale them for decoration within our facility. Some examples are bowls of various sizes, vases, mugs, pitchers, and plates. We will also carry many types of decoration for these items. Paints, stained glass pieces, porcelain tiles, beads, and other items will be available. Kiln-firing will be done at an additional cost. These new services will benefit customers who want custom-made products.

Resources Needed

For our new facility we will need several types of resources. Land for the new building and financing for the construction, new employees, and new equipment are paramount. The costs for these resources will cost Dragonfly Designs approximately $107,400 plus the cost of land. Depending upon the location and condition, the property will run $24,000-$35,000.

Renovations to our downtown store will not require as many resources. We will need more employees, money for the construction, and inventory for both stores. These costs will amount to approximately $31,800.

Projected Outcomes

Dragonfly Designs plans to use existing funds to handle the cost of renovating our downtown location. By doing this, we should profit monthly above expenses enough to pay for costs in just a few months.

Our new building should open after our downtown location is finished by several months. This will help ensure success for both locations. Financing is needed for this endeavor, so it will take longer to absorb all expenses. Our projections indicate that the new facility would pay for itself in only a few years.

Strategic Focus and Plan

Our Mission Statement

To create unparalled beauty in our one of a kind creations, to ensure superior quality and originality in each piece we design, and to support the innovations of our world-class artists through displays of their awe-inspiring work.

Goals

Financially, are goals are to increase our Internet orders by 10% annually for the next 3 years consecutively. The result would be a 30% increase in Internet sales by 2010. We would also like to increase our local sales by 15% this year. To help us achieve these goals, we are going to begin handling porcelain tiles and houseware products to expand our design options and products. Some examples of this would be custom murals, countertops designs, fireplace hearths, and home decorations.

Our non-financial goals are to offer new services and to handle our own local shipping. To ensure proper handling when shipping, we will start making local deliveries ourselves. We also plan to open an area in our shop to offer different art classes and do-it-yourself project options. We plan to buy some of the artwork made there by local artists and sell it in the showroom. We would like to start this service within the next 60 days. These goals will allow us to obtain the total revenue increase of 25% this year we are aiming for.

Core Competency

There is only one store within a 60 mile radius that handles stained glass and there is no place that handles porcelain designs locally. To be competitive on the Internet, price is key in getting customers to purchase from us. A user-friendly website also helps in increasing purchase orders. Our original designs and made-to-order products help to ensure satisfaction. Our shipping program is a big draw for consumers. Since the shipping is included in the price of the product, many consumers choose us over the competition.

Situation Analysis

Internal Focus

We have several strengths within our company. There are not many other businesses of our type in this area. Our pricing can be higher since our product is custom made for the individual. We have low overhead and do not need much space to manufacture our products. Our company is also able to handle repairs in our own shop. Our artists are all skilled craftsmen from various backgrounds and they bring their individual tastes to their projects.

External Focus

The opportunities for our business include some that we have already discussed. An artist's studio to add additional services and handling porcelain along with glass are some examples. Another avenue for growth is the home building industry. In our area the number of new homes being built is vast. A possible contract with a builder for stained glass windows in these new homes would increase our sales dramatically. In line with this expansion of homes is the possibility of opening a new store location to handle the do-it -yourself products and the artist's studio discussed earlier.