Homecoming Hats Business PlanBulldoggie Style

1.0 Executive Summary

IntroductionOnce a year for an entire week college students prepare for possibly one of the craziest weeks of the year. Homecoming is an event that not just the University of Minnesota Duluth campus celebrates, but it is an event that sweeps the nation. School rivalries, excessive partying, and sporting events drive students to their limits of partying, alcohol consumption, and of course who can show the most school spirit.

Who can show the most school spirit is not only decided by those who can scream the loudest, come up with the best chants, or the most face paint, but every year there seems to be a group of students who try to make a little extra tuition, and rent money on the side by creating, and selling t-shirts that generally have clever, yet “provoking” sayings that have to deal with drinking, or trying to belittle the opposing school. College students find these shirts to be a part of their school spirit, and most do not hesitate when purchasing one of these shirts.

The CompanyBulldoggie Style is incorporated in the state of Minnesota. It is owned and managed by one person.

Axel Rosar is a current student enrolled at the University of Minnesota Duluth who is working on his bachelor’s degree in Marketing. He has sales, and marketing experience working for his parent’s small automotive and flat glass replacement business. He is very active with social media, is familiar with SEO/SEM marketing and has a natural talent for keeping up with what people are looking for next. After seeing a group of students begin marketing the shirts for the 2012 year, Axel decided to change up the pace with introducing a style of hat that have been growing in popularity over the past year.

Products and ServiceBulldoggie Style offers a simple choice of products. There are two snap-back hats that customers can chose from. One is a black snap-back hat with that is made of 40% woven acrylic, 50% nylon, woven felt, and 10% woven wool. The other is a white snap-back hat that is made of 80% woven acrylic and 20% woven wool. Each hat has a pre-determined logo with an outline of the state of Minnesota with a star where the city of Duluth is located and text that reads ,” We Do It BullDoggie Style” both of which is embroidered on the crown of the hat.

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Bulldoggie Style business operations are open Monday through Friday 9am until 4pm., and Saturday and Sunday times mayust be scheduled. Bulldoggie style however offers customer service 24/7 through the Facebook page and UMDsnapbacks@gmail.com

The MarketWith school homecomings in early October, incoming freshmen ready to purchase anything that has something related to where they attend school, and other students who still have money from the summer, the retail clothing industry is a perfect area to make a little extra profit.

Bulldoggie Style wants to use social media marketing, as well as posters/fliers, and word-of-mouth marketing to build a potential customer base. By promoting, and marketing the hats with weeks before homecoming, this gives these potential customers time to spread the word, time to talk with their friends, plan their homecoming schedule, and gather their money.

Financial Considerations

Bulldoggie Style expects to raise the money up-front. This means by taking the money up-front, customers will purchase the hat, and when the order deadline is passed, our purchase order, and stock will have little variability. This also means Bulldoggie Style DOES NOT need to get a bank loan.

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Bulldoggie Style has a goal to sell 200 hats, but anticipates selling 100 hats in the first purchase order. Each hat will be sold at retail for $15. Total revenue is expected to be $1500. Cost per hat is determined by exactly how many hats are being purchased (bulk discount). Cost of the 1st-12th hat is $176.89. Revenue of first 12 hats is $180.00. After the 12th hat, profit per hat is $1.01. After the 48th hat, profit per hat is $5.00. After the 199th hat, profit per hat is $5.51. At the 300th hat sold, profit per hat is $7

Bulk discount pricing

First hat: $23.00 (Includes hat, and embroidering)12th hat: $13.99 (includes hat and free embroidering)48th hat: $10.00 (includes hat, free embroidering and discounted $3.99)199th hat: $9.49 (includes hat, free embroidering, and discounted $4.50)300th hat: $8.00 (includes hat, free embroidering and discounted $5.99)

1.1 Mission

Bulldoggie Style aims to offer high quality product, professional customer service, competitive prices of $15 (the same as competitive t-shirts) to meet the demand of college students.

1.2 Keys to Success

Keys to success for Bulldoggie Style will include:

1. Providing the highest quality product with personal, professional, and reliable service.

2. Competitive pricing

2.0 Company Summary

Bulldoggie Style is a student owned and operated business. There are currently are two employees that help in the sales. The company plans to build a strong market position around campus due to clever pricing, promotion, and placing of the product.

2.1 Company Ownership

Bulldoggie Style is incorporated in the state of Minnesota. It is owned by one sole proprietor.

2.2 Start-up Summary

Bulldoggie Style is a start-up company. Financing will come from the sole proprietor for basic promotion including: printer ink, and printer paper for fliers, and cost of first hat.

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Start-Up RequirementsStart-up ExpensesLegal $0Premise renovation $0Expensed equipment $0Other $23Total Start-up Expenses $23Start-up AssetsCash Required $200Other Current Assets $123Long-term Assets Total Assets $723Total Requirements $746

Start-up FundingStart-up Expenses to Fund $23Start-up Assets to Fund $723Total Funding Required $746AssetsNon-cash Assets $600Cash Requirements $200Additional Cash Raised $0Cash Balance on Starting Date $300Total Assets $1100Liabilities and CapitalLiabilitiesCurrent Borrowing $0Long-term Liabilities $0Accounts Payable $0Other Current Liabilities $0Total Liabilities $0CapitalPlanned Investment $200Additional Investment Requirement $0Total Planned InvestmentLoss at Start-up $600Total Capital $1100Total Capital and Liabilities $1100Total Funding $746

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3.0 Products

Bulldoggie Style offers a simple choice of products. There are two snap-back hats that customers can chose from. One is a black snap-back hat with that is made of 40% woven acrylic, 50% nylon, woven felt, and 10% woven wool. The other is a white snap-back hat that is made of 80% woven acrylic and 20% woven wool. Each hat has a pre-determined logo with an outline of the state of Minnesota with a star where the city of Duluth is located and text that reads ,” We Do It BullDoggie Style” both of which is embroidered on the crown of the hat.

4.0 Market Analysis Summary

Bulldoggie Style’s focus is on meeting the demand of college students ready to have a good homecoming, as well as student who may be visiting Duluth for the UMD homecoming festivities.

4.1 Market Segmentation

Bulldoggie Style focuses on all income markets. By having a low priced product, it allows all income market segments to have equal consumption of the product.

Students on Campus

Bulldoggie Style wants to attract student who currently reside in on-campus livinghousing. This segmentation of mostly new, freshmen students will bring stability and high sales to the business. Freshmen students are more attracted to goods that are related to the university they are attending.

Off-Campus Students

Bulldoggie Style also aims at those off-campus students who may be in their 2nd, 3rd, or 4th year of college, but still have the same school spirit as when they were freshmen. While after freshmen year, students buy fewer goods affiliated with their university logo, there are still those who are stuck in the loop, and those who want to truly show school spirit, and we want to take advantage of that.

4.2 Target Market Segment Strategy

The dominant target market for Bulldoggie Style is freshmen students who are more attractive to products and good affiliated with the university.

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4.2.1 Market Needs

Because there are two other groups of students creating t-shirts, and another group creating a jersey for homecoming, why created a product that is in the same group as them. ? By creating the Bulldoggie hats, we differ ourselves in the competing market, even though the product is still related to clothing and accessories.

4.3 Competition and Buying Patterns

Competition on campus to sell your clothing product is more competitive in the 2012-2013 academic years than ever. In 2011, there was only one group of students who created a t-shirt for homecoming. The group of students sold 276 t-shirt for $15 dollars apiece (total profit is unknown).

With four different, yet similar products in the market this year, total sales will generally be more dispersed. Although, the clothing that attracts more students will hold more market share. By creating a hat rather than another item of clothing that covers your torso, Bulldoggie Style separates itself from its competitors.

Local competition is weak on their promotion and marketing skills. One group creating a black t-shirt joined the market too late which did not give students time to react, while some already purchased another product. The group creating the gold t-shirts, which is the same group that sold 276 shirts the previous year, had a design that did not appeal to many students. The last group creating the jersey style homecoming clothing did not take into account the weather in Duluth in the month of October. Many students found it to be too cold to wear a jersey during a football game.

5.0 Competitive Edge

All three competitors had a design that had something related to “Homecoming 2012”. Bulldoggie Style feels as this creates a low re-wear value. Students may not want to continue wearing the product after the homecoming week. However, Bulldoggie Style’s design aimed at not only creating school spirit for homecoming week, but for the rest of a student’s college career. The design allows students to wear the product anytime, anywhere, for any sporting event. Also, other competitors only have one choice of a product; by that it means you only have one choice of color and design. Bulldoggie Style offers two different designs with minimal work. Competitors must have order forms with size charts of their product (S through XXL). By having a one size fits all product, we are able to limit our inventory to either black or white hats.

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6.0 Sales Forecast

Units SalesWhite Hats 124Black Hats 176Total Unit Sales 300Unit PricesWhite Hats $15Black Hats $15SalesWhite Hats $1860Black Hats $2640Total Sales $4500Direct Unit CostWhite Hats $8Black Hats $8Direct Cost of SalesWhite Hats $992Black Hats $1408Subtotal Direct Cost of Sales $2400

7.0 Management Summary

Axel Rosar is a current student enrolled at the University of Minnesota Duluth who is working on his bachelor’s degree in Marketing. He has sales, and marketing experience working for his parent’s small automotive and flat glass replacement business. He is very active with social media, is familiar with SEO/SEM marketing and has a natural talent for keeping up with what people are looking for next. After seeing a group of students begin marketing the shirts for the 2012 year, Axel decided to change up the pace with introducing a style of hat that have been growing in popularity over the past year.

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