BusinessPlan.docx (1)

MavFam Apparel Page | 0

MAVFAM APPAREL

A company through the United Prairie Bank Integrated Business Experience at Minnesota State University, Mankato.


Fall 2014


Contents

Executive Summary3

Company Overview4

Management Team5

Organizational Chart6

Situation Analysis7

Competitor Analysis7

Customer Analysis7

SWOT Analysis8

Marketing Objectives9

Marketing Strategy10

Target Market(s)/Segmentation Strategy10

Marketing Mix Strategy11

Cash and Inventory Management…………………………………………………………………………………………14


This page is intentionally left blank


Executive Summary

Our mission is to inspire students and the local community to support the University as well as provide high-quality, affordable, and unique apparel.

MavFam Apparel is a startup clothing line to be launched mid-October of this year. It will provide high-quality, affordable, and unique clothing to students as well as the general population of the Mankato area. MavFam Apparel will not only be providing clothing, but also events available for students to participate in on campus. All profits will be donated to Junior Achievements, a charity of our choice.

Sport seasons are beginning to start which makes this the perfect time for MavFam Apparel to be introduced. We will be providing an array of clothing such as; a crew neck sweatshirt, a long-sleeve dry-fit shirt, and a basketball jersey. Each item will have a unique design that differs from those seen from our main competitors.

We will also be providing a basketball and dodgeball tournament throughout the semester, on campus, which will be offered to students. This will be a unique and fun event at an affordable price. Prizes will be provided to the winners of the tournament.


Company Overview MavFam Apparel was founded by a group of 18 students enrolled in the United Prairie Bank Integrated Business Experience of the Fall 2014 semester. This company is located on the Minnesota State University, Mankato campus.

To be launched October 2014, we will strive to provide high-quality and affordable apparel to the students at the university as well as the general public of the Mankato area. We will also be hosting several events on campus that will be available to students.

We will be generating a profit from our products and events. However, all proceeds will be donated to Junior Achievements, a charity of our choice that focuses on introducing K-12 students to the business world. MavFam Apparel has chosen this charity because it focuses on something that each of us is passionate about: business. We are to donate money, and also time, to this charity.

The company is managed and directed by the CEO, Alex Fritz, and the VP, Dustin Childs.


Management Team The initial management of MavFam Apparel consists of Alex Fritz, CEO; Dustin Childs, Vice President; Tori Krienke, Financial Director; Stephanie Reitter, Marketing Director; John Kallestad, Management Director; and Cayce Craig, Planning Director.

Alex Fritz, CEO. Alex is a junior at the university and is planning to major in Business Management with a double minor in Marketing and Entrepreneurship. She has maintained a 3.87 GPA throughout school, while also remaining on the Dean’s list each semester. Alex has had two internships in professional work environments starting at the age of 16. Alex has just been welcomed to be apart of the Sigma pledge class in the International Fraternity of Delta Sigma Pi, the business fraternity on campus. She is focusing on the event portion of the company, as well as overseeing the company as a whole.

Dustin Childs, Vice President. Dustin is a junior at Minnesota State University, Mankato who is currently majoring in finance with hopes of double majoring with accounting as well. He is currently a member of the Epsilon Iota chapter of Delta Sigma Pi, the professional fraternity here on campus. He is a motivational leader with exceptional organization skills and communication skills. The last two semesters Dustin was honored with being on the College of Business Dean’s list by accomplishing a 3.87 first semester and a 4.0 second semester. He’s main focus is handling the product portion of the company and help Alex oversee the company’s daily operations, along with being a part of the f inance team.

Tori Krienke, Accounting/Financial Department Director. Tori is a junior at Minnesota State University, Mankato pursuing a double major in accounting and international business as well as a double minor in finance and business administration. Tori is involved in the accounting club and has recently accepted an internship with Northwestern Mutual: The Bohannon Group. Tori is responsible for the financial department and aspects of the company.

Stephanie Reitter, Marketing Director. Stephanie is a senior Marketing major at Minnesota State University, Mankato. She has interests in market research and advertising, which helps make her a good fit for the Marketing Director. In addition, she has worked in a variety of different work environments, including the professional on-campus office of the Vice President of Finance and Administration in addition to being a Marketing Intern at Planet Fitness in Mankato. It is Stephanie’s responsibility to lead the Marketing department, which includes identifying the most strategic means of marketing and advertising the business with her team.

John Kallestad, Management Director. John is a senior majoring in Business management. He had an internship last summer at a local technology firm. John is in charge of the cash and inventory management system, as well as leading the management department. He reports to the VP and the CEO.


Stephanie Reitter, Marketing

Director

Cameo Wetzel

Ian Illgen

Zubin Bhakta

Katie McMurchie

Carlee Dather

John Kallestad, Management

Director

Minh Ho

Ryan Zimmerman

Heath Dewes

Alexis Scholten

Alex Fritz

Tori Krienke, Finance Director

Derek Almich

Thang Vang

Cayce Craig (Planning Director)

Dylan Niklason

Dustin Childs

Dustin Childs, VP

Alex Fritz, CEO

Cayce Craig, Planning Director. Cayce is a junior at the university and is planning to major in Finance with a Business Administration minor. She has been employed at Profinium Inc., a community bank, for the past two years as a Flex Retail Associate and teller. She will mainly be coordinating events, working personally with our charity Junior Achievement, as well as being an active member of the finance team.


Situation Analysis

Competitor Analysis I. Key competitors (direct and indirect)

1. Direct

a. Maverick Bookstore

b. Barnes and Nobles Bookstore c. United Prairie Bank IBE Company 2

d. Scheels All Sport

2. Indirect a. CVS

b. Walmart

c. TJ Maxx

II. Key competitor’s profiles (market share, marketing mix) a. Maverick Bookstore is a local bookstore serving the students, faculty and staff of Minnesota

State University at Mankato with pride since 1990. Their primary goal is to ensure students

are able to obtain the course materials they need at reasonable prices. They also provide many other items to support students’ academic career and school spirit.

b. Barnes and Noble bookstore includes in their mission aspects such as making their customer

feel like the whole company is at their service, and becoming the best at their business

which is not only restricted to selling books but also they sell products such as shirts, pants, and others on campus. The Barnes and Noble bookstore is located on campus and carries a

lot of Minnesota State Mankato apparel that is good quality, but somewhat pricey for

students. 3. IBE Company 2 is the other company apart of the United Prairie IBE program. They are

focusing on selling winter hats, mittens and tumblers unique to the Minnesota State

University, Mankato population.

4. SCHEELS All Sport is a sporting goods store with a variety of clothing products and accessories to appeal to many types of markets. They are committed to customer service

and providing quality to products to their customers.

Customer Analysis

MavFam Apparel will focus on low-income, male and female, college students. Our key

competitors offer school-spirited clothing at an extremely high cost. We are striving to be an alternative to these costs, while not losing the high-quality material. Our clothing designs are

sports-based, so we are targeting the athletes and the athletic supporters of our school.


We will also focus on the faculty members and parents of the students at the university, as well as the community of the Mankato area. These are low- to middle-income families, and our clothing will be appealing to both the parents and kids. We will market to this population by selling our products off campus, at events such as; high school basketball games, outside of college hockey games, family weekend at the university, and other areas around the community.

SWOT Analysis

I. Internal Strengths 1. Not a Brick and Mortar operation (no storefront)

2. Student volunteer labor

3. Proven products 4. Customize and designed by IBE Students

5. Have different backgrounds and experiences

6. Small enough to have good communication within the company.

7. Motivation because of the small time students. 8. Reliable local supplier on product quality and efficiency

9. Clear leadership organization structure.

II. Internal Weaknesses 1. Limited time

2. Limited of presence within the community

3. Large number of members 4. Short time to sell

5. Conflicting schedules between company members

6. Possibility of product and sales errors

III. External Opportunities 1. Local vendor (Promotion 2000)

2. Winter season soon and a demand for warmer clothes.

3. Limited new entry’s in local market for MSU gear. 4. Special pricing for bulk orders.

5. Accessible multiple location across campus.

6. Potential holiday gifts.

7. Extending the market to parents and families of students. 8. Sports seasons are beginning

IV. External Threat

1. Price war possible 2. Competitors with the different bookstores on campus


3. Integrated Business Experience Company 2

4. Unforeseen setbacks (shipment hindered or delayed) 5. Environmental conflictions


Marketing Objectives

1. Our objective is to break-even by December 1, 2014 and to make at least a $1,000 profit to our charity, Junior Achievements.

2. Create a successful enough product plan to be competitive with other vendors selling similar products.

3. Sell quality products that are desirable to our target market.


Marketing Strategy

Target Market(s)/Segmentation Strategy

I. Basis for Segmenting Consumer Markets

1. Demographic

a. Low Income, ages 18-25 years, male and female b. Middle class Income, middle aged consumers (ages 30-50)

c. Children (elementary school) ages 6-12, dependent on parents’ income

2. Geographic

a. Suburban 3. Psychographic

a. Maverick Pride

b. Sports fans

c. Athletic 3. Benefits

a. Comfortable

b. Unique, one-of-a kind design c. Affordable

d. Quality items

5. Usage rate

a. Average use for crewneck sweatshirt b. High use for basketball jersey for dry-fit long-sleeved shirt

II. Strategies for Selecting Target Market

1. Multisegment Targeting Strategy a. We will have two well-defined market segments and develop separate marketing

mixes for each

III. Target Market Analysis 1. Who are they?

a. Our customers will be a variety of ages (approximately 18-60 years), income levels will vary based upon their age.

2. Why they buy?

a. We hold practical products with a unique and exclusive design. Our products

essentially are “limited edition” 3. How do they choose?

a. Exclusive item

b. They make the decision of buying the product c. Word of mouth referrals from friends or people they know

d. Unique logo design


e. Practical and useful products

4. Where they buy? a. Direct purchase

b. Possible Pre-sales

c. Our hosted event

5. When they buy?

a. Pre-sales (being the first to have it)

b. Events c. Whenever we are tabling

Marketing Mix Strategy

I. Student Marketing Mix

1. Product Strategy a. Crewneck sweatshirt, long-sleeve dry-fit, basketball jersey

b. Basketball and dodgeball tournament

c. Athletic positioning 2. Pricing Strategy

a. Affordable

b. Cheaper than key competitors

c. Between 50 and 65% markup depending the item d. Offer package deals at a discounted price

3. Promotion Strategy

a. Flyers distributed around campus, residence halls, and student housing b. Facebook and Twitter page

c. Wearing products around campus

4. Distribution Strategy

a. Selling outside of sporting events b. Tabling at CSU on specific days at specific times

c. Basketball and dodgeball tournament

d. Direct channel (products sold directly to consumers)

II. Community Marketing Mix

1. Product Strategy

a. Crewneck sweatshirt, long-sleeve dry-fit, basketball jersey (kids)

b. Comfortable, and stylish positioning 2. Pricing Strategy

a. Affordable

b. Between 50 and 65% markup depending on the item c. Offer package deals at a discounted price

3. Promotion Strategy

a. Facebook and Twitter page


b. Wearing products around community

4. Distribution Strategy a. Selling during Family Weekend at the university

b. Walking door-to-door of faculty offices

c. Direct channel (products sold directly to consumers)

III. Positioning- Perceptual Mapping


IV. Promotional Mix Explanation 1. Advertising

a. Flyers distributed on campus, residence halls, and student housing

b. Facebook and Twitter page c. Basketball and dodgeball tournament

2. Publicity (Public Relations)

a. Wearing products around campus and the community

b. Word of mouth promotion c. College of Business support

3. Differences between advertising and publicity

a. Cost

b. Control c. Credibility

4. Personal Selling

a. Support of family and friends 5. Sales Promotion – any form of promotion other than advertising, publicity, or personal

selling.

a. Offering a package deal at a discounted price

b. Lowering prices towards end of semester to get rid of leftover inventory c. Winning products during tournaments


Cash and Inventory Management

Handling of Money

I. Who will be handling the money?

1. Derek Almich, Ryan Zimmerman, and John Kallestad will be in charge of the cash and checks.

2. When the money is stored away for the night at least two people need to sign off on the

envelope

II. Where is it going to be stored?

1. Alex Fritz’s household (located across the campus)

2. Inventory will be kept safely and will be locked.

III. How will it be stored?

1. Locked cash boxes at Alex’s household

2. Locked room inside of household

IV. How can we make sure no one is taking money? 1. Balance sheet inside each box along with check out

a. Have two people check balances of each box before checking out and when

checking back in b. Document on balance sheet

Sales and Costs

I. How are we going to keep track of costs?

1. Spreadsheets in Excel

II. How are we going to report sales and keep track of costs?

1. “Square” website that tracks inventory and sales.

a. Email receipts 2. Balance sheets in Excel

III. How are the cash boxes and credit card swipes going to be checked?

1. Square vs cash/check on hand (variance) 2. The variance will be + or - 5 dollars

IV. Cash and checks?

1. Will be depositing all cash and checks each week with Derek or Ryan.

a. Receive deposit slip and keep in the locked cash box


2. If we receive a check or cash, it will be put into the cash box and deposited to the bank the

week it was received/checks can also go through “Square”. a. Checks have to be written out to “IBE Company 1” (subject to change)

b. If more cash is received than amount due, we will give the customer the correct

change that is due in cash c. If customer would like to use a credit/debit card, we will use “Square ” that will be

connected to a person’s cell phone

V. How are we going to keep transactions and inventory? 1. We will be using Square to keep track of inventory

2. Hand count after every night we sell

3. Sign off sheet that two or more people need to sign off on

4. Point of sale system.

Inventory

I. Who is going to be in charge of inventory?

1. Alex Fritz (CEO), Dustin Childs (VP), John Kallestad (Management)

II. Where is this going to be stored?

1. The inventory will be stored at Alex’s house, locked, and close to campus.

III. How are we going to keep track of items? 1. Inventory count will be kept through balance sheets and Excel sheets, as well as Square

2. The company heads will keep track of the inventory count each day.

IV. Make sure no one steal inventory? How? What methods? 1. Inventory will be secured in Alex’s locked house during non-sales hour to prevent theft

2. During Sales hours we will have several (minimum of 3) people to watch inventory

3. Count the inventory before and after every sale to make sure we do not lose any items through theft

4. Internal (personal) sales will be required cash in advance before item will be given.

V. How are we going to make sure the items are organized?

1. The variance between the sale of inventory and the actual count can be + or- two items. 2. Each item is in its own special box.

BusinessPlan.docx (1)

Documents

Transcript of BusinessPlan.docx (1)