Customer Profile
78705 Demographic
The information that has been researched and compiled gives a better idea of the
demographic that Edna’s will be accommodating. The characteristics of area code
78705 are highlighted to easily identify the group that will shop at Edna’s. The
target consumer’s demographics have been compiled to put into perspective who
the consumer will be for this retail store. 1 2
Gender Female: 47.3%
Male: 52.7%
Education Levels(among people 25 years or older)
Less than 9th Grade: 0.8%
9th-12th Grade: 2.3%
High School graduate: 6.1%
Some college: 14.7%
Associate degree: 3%
Bachelors degree: 42.3%
Graduate/Professional: 30.7%
High school or higher: 96.9%
Bachelors or higher: 73.1%
1 City-Data2 Zipskinny.com
Marital Status (Among 15 years or older)
Never married: 83.1%
Married: 13.1%
Separated: 0.3%
Widowed: 0.7%
Divorced: 2.8%
Stability Appeal:
Same home 5+years: 9.3%
Race: Hispanic/Latino: 10.1%
White: 69.4%
Black: 2.9%
Native American: 0 %
Asian: 14.8%
Hawaiian/Pacific Islander 0.1%
Other: 0.3%
Multiracial: 2.2%
Age: Male% of males/% of All
0-9 years: 1.4% / 0.8%
10-19 years: 27.6% /14.5%
20-29 years: 55.1% / 29%
30-39 years: 8.1% / 4.3%
40-49 years: 3.9% / 2.1%
50-59 years: 2.3% / 1.2%
60-69 years: 0.8% / 0.4%
70-79 years: 0.5%/0.2%
80+ years: 0.3%/ 0.1%
Age: Female
0-9 years: 1.2%/0.6%
10-19 years: 33.9%/16%
20-29 years: 51.4%/24.3%
30-39 years: 6.1%/2.9%
40-49 years: 3%/1.4%
50-59 years: 2.2%/1%
60-69 years: 0.9%/0.4%
70-79 years: 0.7%/0.3%
80+ years: 0.6%/0.3%
House-hold income
<$10,000: 39.2%
$10,000-$14,999: 11.2%
$15,000-$24,999: 18%
$25,000-$34,999: 9.8%
$35,000-$49,999: 7.3%
$50,000-$74,999: 5.5%
$75,000-$99,999: 3.9%
$100,000-$149,999: 2.7%
$150,000-$199,999: 1%
$200,000*: 1.3%
Occupation Mgt./Professional: 45.8%
Service 17.6%
Sales/Office: 30.8%
Farm/fishing/forestry: 0%
Construction/Extract/Maint 1.4%
Production/Transportation: 4.4%
Unemployment/Poverty
Unemployed: 6.2%
Below Poverty line: 50.2%
Housing Expense
Own/Rent Home
Rent: Large population of civilians is students who attend the University of Texas.3
Own: Known as “One of the best places to live” 4
Edna’s Demographic:
Gender: The merchandise sold at Edna’s will generally interest women. She will
like to look classy and sweet. Her look will be feminine and chic; this will grab the
attention from her friends and the people around her.
3 “Guide, Mobil. Mobil Travel Guide 2008 Texas . Mobil Travel Guide, 2008. Print.4 Ibid
Age: The ladies that will shop at Edna’s will be around the age of 18-28 years old.
This age makes up around 40% of area code 78705. This is greatly contributed by
the students that attend the University of Texas.
Education level: High School graduate-Bachelor Degree
Marital Status: Primary Consumer- Single
Secondary Consumer: Married
Race: White, Black, Hispanic, Asian.
Occupation: (main) Students
Income: $10k-$100k
Home owners/Renters: Owners and Renters.
Psychographics:
Edna’s shoppers will be ladies that enjoy similar classy activities and past
times. To better understand the consumers who may shop at Edna’s, we have
compiled information and created a list to easily identify an Edna’s consumer.
Free time Activities : Social life/Forms of Entertainment: 5 6
5 Fodor. Fodors Travel Pubns, 2008. Print
6 Baird, David, Eric Peterson, and Neil Schlecht.Frommer . Frommers, 2007. Print.
Reading/Literature People Magazine InStyle Magazine Vibe Magazine Harry Potter Series Twilight Saga The Davinci Code Chicken Noodle
Soup Peaches
TV Desperate
Housewives The Hills Family Guy Cougar Town
Radio 101.7 FM
(Country) 88.7 FM (Voice) 107.1 FM (Country) 96.7 FM (Hit
music) 95.5 FM (Soft
Rock) 98.1 FM (Country)
Places to Shop Forever 21 Nordstrom Goodwill Urban Outfitters A’GACI Pottery Barn Barnes and Noble Bath & Body Works Whole Foods
Entertainment Venues Austin Zoos Highland Lakes Forest Creek Golf
Club Lady bird Johnson
Wildflower Research Center
Sixth Street South Congress
Avenue Texas State Library Zilker Metropolitan
Park Hyde park
Favored Brands A’GACI Clinique Mac UGGs Apple Marc Jacobs Theory
Hobbies Skating Walking Reading Dining Out Biking Lounging around Golfing
Movies Avatar The Princess and
the Frog Sex in the City Breakfast At
Tiffany’s When Harry Met
Sally Titanic Kill Bill Vol. 1 & 2 Geisha How to lose a guy
in 10 days
Night life Warehouse District 6th street Ginger man 219 West Esther’s Follies Cactus Café Momo’s
Restaurants Chez Nous County Line on the
Hill Driskill Grill Pappadeaux Ruth’s Chris Steak
House Zoot
Vacation Kauai Island,
Hawaii Mexico Venezuela Seoul, Korea Tokyo, Japan London Paris
Forms of Exercise Walking Team Sports Walking pets
Day in the Life:
Edna starts out her morning with a good stretch. She reaches over to turn off her
Taylor Swift “Love Song” alarm and grabs a pair of Victoria Secrets sheer boy-
short underwear and heads over to her bathroom. She looks over her counter and
finds that her Colgate toothbrush is lying on the tile rather than on her vintage
toothpaste stand that she bought at the Austin Farmers Market last Saturday.
She sets the toothbrush in its place and sets her underwear on the toilet cap. Edna
hears a whine and realizes that JJ her golden retriever is ready for their morning
run. Out of habit, Edna taps him on the nose, grabs his head, and takes a good
sniff. She realizes that he smells a bit pungent and plans to take him to the Dirty
Dog later that day.
Edna loves to exercise and spend her time outdoors. So taking JJ out for a walk is
as easy as pie. She first pulls on her Nike Glides and her Nike running shorts,
then hurries to put JJ’s leash on, that she bought at Petsmart on sale. Edna loves a
bargain; it’s hard for her to pass up great deals. Edna looks down at the leash and
praises herself for doing a good job, and heads out onto the open road.
After JJ’s run, Edna jumps in the shower and lathers her hair with Dove’s shampoo
and conditioner. Her hair is a bit more damaged because of all the sun, so she
grabs the Neutrogena hair mask and lets it sit for about 10 minutes; after she
rinses her hair out and starts to prepare for school. She first grabs her…. Edna is a
junior at the University of Texas. She is a die-hard Long Horn fan, but who isn’t
if they live in Texas?
Edna grabs her North Face back pack and runs out the door. She heads into class
and says hi to her friends Billy and Jane. Edna is wearing a floral dress with
cowboy boots. Jane has always liked Edna’s style, and asks her where she got her
outfit from. Edna always tells her she finds great deals all over town. She
especially likes to shop at Urban Outfitters, Forever 21, and Maya Star.
After classes she heads back home to set down her backpack. It’s a Friday
afternoon and the weather is warm with a little less humidity. Edna loves a
beautiful day; she grabs her bike and heads out with JJ to Hyde Park. She rides
around the tree-lined area and stops at a nearby bench to read “Peaches”, a book
she started a few days ago.
Half-past 5, Edna is ready to go home and get ready for a fun filled night. Her
friend Jane wanted to catch dinner at Uchi’s, then head over to Lady Bird
Johnson Wildflower Center to see the new blooms and take some pictures
together. Edna’s thinks that it would be fun to end their night with drinks on 6th
street with Billy. Edna loves a night with music and friends.
It is half past 12 and Edna is finally heading home. She completely forgets about
taking JJ for a bath, and plans to take him tomorrow no matter what. Finally, they
arrive at her home near The University Of Texas On Guadalupe Street. She
jumps out of the car and waves to her friends. Billy and Jane look at each other,
and just shake their heads as they watch Edna grovel over how cute JJ is as soon as
he runs out to greet her.
It’s 12:30AM and Edna is exhausted. She takes some time to upload her pictures
from her Cannon camera onto her Dell Laptop and laughs at how funny Jane
came out on one of the pictures. Edna pulls out her journal and checks off her
checklist that she made the day before. She looks down at where JJ is lying and
thinks about how successful her day was and how tomorrow will be even better.
Edna writes her schedule for Saturday and makes sure that she places a star next
to Barton Creek Greenbelt located on Lamar Blvd and perhaps Market
District, where they can grocery shop at Whole foods.
It’s now 1:30AM and Edna is falling asleep as she is finishing schedule for
tomorrow. She turns off her bed side lamp and taps JJ on the head before drifting
off to sleep.
Prizm Categories:
Prizm was used for customer segmentation profile. Edna’s wants to know exactly
which type of consumers we will be trying to sell to. We have not only found the
location where our demographics are, but we have identified exactly which
segment of people will be most interested in Edna’s merchandise.
22 Young Influentials
Midscale, Younger w/o Kids
“Once known as the home of the nation's yuppies, Young Influentials reflects the fading glow of acquisitive yuppiedom. Today, the segment is a common address for younger, middle-class singles and couples who are more preoccupied with balancing work and leisure pursuits. Having recently left college dorms, they now live in apartment complexes surrounded by ball fields, health clubs, and casual-dining restaurants”
02 Young Achievers
“Young, hip singles are the prime residents of Young Achievers, a lifestage group of twentysomethings who've recently settled in metro neighborhoods. Their incomes range from working-class to well-to-do, but most residents are still renting apartments in cities or close-in suburbs. These seven segments contain a high percentage of Asian singles, and there's a decidedly progressive sensibility in their tastes as reflected in the group's liberal politics, alternative music, and lively nightlife. Young Achiever segments are twice as likely as the general population to include college students living in group quarters”
Demographics Traits:
Urbanicity: Suburban
Income: Midscale
Income Producing Assets: Low
Age Ranges: <35
Presence of Kids: HH w/o Kids
Homeownership: Renters
Employment Levels: WC, Service, Mix
Education Levels: College Grad
Ethnic Diversity: White, Black, Asian, Hispanic
US Households: 1,683,242 (1.46%)Median HH Income: $50,454 7
Edna’s will not only be directed to college students, but it will be for the college
graduates who are still living in the area. We want to be able to keep our clientele
until they have comfortably transitioned out of their college life, into their career
life.
Being located in an area where people from all over unite for education creates a
large melting pot in Edna’s location. Our Bohemian Mix consists of liberal,
diverse, and newly formed, families. These consumers will largely consist of
experiencers. This Vals category is a group of people who love to do things for fun
and for good times.
16 Bohemian Mix
Upper-Mid, Middle Age Family Mix
7 2009 PRIZM Segmentation System. Accessed 23,April 2010
“A collection of mobile urbanites, Bohemian Mix represents the nation's most liberal lifestyles. Its residents are an ethnically diverse, progressive mix of young singles, couples, and families ranging from students to professionals. In their funky row houses and apartments, Bohemian Mixers are the early adopters who are quick to check out the latest movie, nightclub, laptop, and microbrew”
Lifestage Group: Young Achievers
Demographics Traits:
Urbanicity: Urban
Income: Upper-Mid
Income Producing Assets: Moderate
Age Ranges: <55
Presence of Kids: Family Mix
Homeownership: Renters
Employment Levels: White Collar, Mix
Education Levels: College Grad
Ethnic Diversity: White, Black, Asian, Hispanic
US Households: 2,042,124 (1.77%)
Median HH Income: $55,665 8
We will definitely be able to count on our Bohemian Mix to be at Edna’s
grand opening. They will come and reminisce of their college lives by
visiting the area that was so close to campus. This is why we have located
in an area that will be filled with our demographic, and for past clients to
come visit until they have moved onto a different stage in their lives.
Edna’s merchandise will be appealing to women up until their late 20’s.
Our City Startups will be the college students that attend the University
of Texas. It will have 10 times as many college students as the national
average, and they will not have that much money. We can count on
seeing this group of people every day and everywhere.
8 2009 PRIZM Segmentation System. Accessed 23,April 2010
47 City Startups
Low Income, Younger w/o Kids
In City Startups, young, multi-ethnic singles have settled in neighborhoods filled with cheap apartments and a commercial base of cafés, bars, laundromats, and clubs that cater to twentysomethings. One of the youngest segments in America--with ten times as many college students as the national average--these neighborhoods feature low incomes and high concentrations of African-Americans.
Demographics Traits:
Urbanicity: Second City
Income: Low Income
Income Producing Assets: Low
Age Ranges: <35
Presence of Kids: HH w/o Kids
Homeownership: Mix, Renters
Employment Levels: WC, Service, Mix
Education Levels: Some College
Ethnic Diversity: White, Black, Mix
2009 Statistics:US Households: 1,397,857 (1.21%)Median HH Income: $24,355
Edna’s demographic will most likely attend the University of Texas. College
students are notorious for their crazy nights out and being broke most of their
college days. However, it seems like these students always look their best even at
their financial worst. Edna’s will appeal to these college students. Being a college
student enlightens you of the good things that are in the world, and Edna’s will be
the place to shop for quality merchandise. Most of Edna’s associates will be
college students or just students that have just graduated. We believe that this will
make our consumers feel like they are in the right place for their apparel needs.
Vals Category
“Vals is a gathering of data to figure out the consumer’s insight that drive
marketing innovation…Understanding customers is critical to marketing. VALS
strengthens demographic characterizations by explaining the deeper psychological
drivers of consumer behavior.”9The Vals survey categorizes all consumers as a
thinker, achiever, experience, believers, striver, or a maker. Edna’s shoppers fit
into the category of believers, strivers, and experiencers, in the Vals category test.
Believers:
“Like Thinkers, Believers are motivated by ideals. They are conservative, conventional people with concrete beliefs based on traditional, established codes: family, religion, community, and the nation. Many Believers express moral codes that have deep roots and literal interpretation. They follow established routines, organized in large part around home, family, community, and social or religious organizations to which they belong. As consumers, Believers are predictable; they choose familiar products and established brands. They favor U.S. products and are generally loyal customers.”10
Texas is known for their loyalty to football and religion. They are not completely by
the book, but they are certainly not far from it. Our consumers will be those that
see a partial cup of water as half full, and not half empty. They will see the brighter
side of life, and will want to believe that it is as good as they make it. Edna’s will
provide them with clothes that reminds them of beautiful times, and perhaps also
to wear to beautiful places. Edna’s wants for their customers to believe what they
want, and look beautiful in the process.
Strivers:
“Strivers are trendy and fun loving. Because they are motivated by achievement, Strivers are concerned about the opinions and approval of others. Money defines success for Strivers, who don't have enough of it to meet their desires. They favor stylish products that emulate the purchases of people with greater material wealth. Many Strivers see themselves as having a job rather than a career, and a lack of skills and focus often prevents them from moving ahead. Strivers are active consumers because shopping is both a social activity and an opportunity to
9 http://www.strategicbusinessinsights.com/vals/10 “The VALS Segments.” Vals Pscyhology of Markets. SRI Consulting Business Intelligence, 21 April 2010
demonstrate to peers their ability to buy. As consumers, they are as impulsive as their financial circumstance will allow.”11
Our main demographic is set in an area where there are people from all over the
country and outside of the country. We will have a wide array of consumers
because of the University of Texas. However, one thing that we will know about
our consumer, is that they are striving to achieve something. Whether it be
marrying the right person, getting their college degree and moving onto graduate
school, or just trying to live day to day the best they can. Edna’s will be the type of
store where you will come to feel better about yourself through what you wear; no
matter what stage you are in your life.
Experiencers
“Experiencers are motivated by self-expression. Young, enthusiastic, and impulsive consumers, Experiencers quickly become enthusiastic about new possibilities but are equally quick to cool. They seek variety and excitement, savoring the new, the offbeat, and the risky. Their energy finds an outlet in exercise, sports, outdoor recreation, and social activities. Experiencers are avid consumers and spend a comparatively high proportion of their income on fashion, entertainment, and socializing. Their purchases reflect the emphasis that they place on looking good and having "cool" stuff.”12
Again, we see what happens when you have a large mix of people trying to find
themselves. Edna’s will be filled with experiencers at all times of the day. They
will be the ones who buy our new items in stock and perhaps even be trendsetters.
Experiencers try new and crazy things. They are what we can call the natural
person. They do what they feel like doing just to know what it feels like, or just to
have said that they experienced it.
11 IBid12 IBid
Buying Motivators 13
Maslow’s Hierarchy of needs identifies why Edna’s consumers purchases
products, and the reason they buy at all. Women who purchase Edna’s
merchandise will primarily be motivated to buy because they like what they see
and want to look good. The dress is an article of clothes that identifies a feminine
person and makes women feel truly like a lady. In a dress you can feel vulnerable,
but a certain power comes with a woman’s sensuality. Edna’s shoppers will want
to be noticed by friends, family, as well as the male species. Their self-esteem on
choice of clothes will be high due to the knowledge of fashion trends and from the
praises they get from others. An Edna shopper will not care what people think of
their style, but will usually be spot on when it comes to what is trendy.
13 Google-images.com
Figure 1 : Image Source-Google images
Edna’s shoppers will be motivated to buy because they want to look good and feel
good about themselves. Many people that shop at Edna’s will be the age of 18-30,
which is the prime age according to human development research. Around 18-25,
normal young adults want to find where they belong and find their purpose in life.
The clothes at Edna’s give off a care-free and retro image. People who enjoy
Edna’s will be people who are more developed than a normal young adult. They do
not need to be completely accepted by a certain genre of people, but become a
genre in themselves. They will be known as the modern bohemians; not living
according to the conventions of society but still striving to be someone in the
world.
Target Market
Market Location
Our target market will be primarily found in area code 78705 Austin, Texas.
This area code is where the University of Texas and downtown are located
in. We had picked this location because of the number of young adults ages
18-29. The University of Texas will provide us with our consumers which
make up around 84% of our target market. 14
Edna’s will specifically be located on Guadalupe Street. This street is
known for being the college avenue, which will give us a high volume of
people just passing by Edna’s. We know that this will definitely increase
our sales. Edna’s will take pride in being a retail store that is unique and
beautiful. If we have consumers to look at our product, they will most likely
be interested enough to come in and shop.
14 Zipskinny.com
Edna’s location is ideal for the merchandise we sell as well, because of the
surrounding entertainment. Eastwood Park, Adams Park, Downtown, House
Park, and Duncan Park are all places that
our target market will definitely like to go
to regularly.
Image Source: http://www.google.com/imgr 1
Market HistoryImage Source: http://o.aolcdn.com/dynamo 1
“Austin is an extraordinarily open and welcoming place-a city where you’re not
only allowed but expected to be yourself, in all your quirky glory. The people you
encounter are likely to be laissez-faire and may even be newcomers themselves.
People are a bit different and self-directed come to realize their fullest selves.” 15
Image Sources: http://www.xomba.com/file 1
Austin is the Capitol of Texas and the location named after the “Father of Texas,”
Stephen F. Austin. It is a lively place with a growing music scene, which some are
saying that it is the live Music Capital of the World.
People that live in this area are free flowing and relaxed. They love being
innovative and out of the box; not like San Francisco, but similar. The culture is
rich and the people are even more so. The saying that Texas is a friendly state is
not a joke. Stephen F.Austin himself wanted the state to be brought up with
respect and kindness towards one another.
Edna’s will fit right in to such a rich culture full of people that are different yet
pleasant. Our target market has been identified as someone who is full of life and
15 Fodor. Fodors Travel Pubns, 2008. Print.
someone who doesn’t mind too much what people think. Who would better fit this
description but the “self-directed and quirky” Austinians.
Geographic analysis
Edna’s has designated a spot where there is much going on almost throughout the
entire week. Geographically we have found a spot that will be filled with students,
teachers, and small business owners. The maps show that we are in a spot that will
be busy during traffic and very slow when students are off for break.
Edna’s will be located on Guadalupe Street and W 24th Street. This is where our
top competitor Urban Outfitters will be located bringing us competition. We
encourage this because we are confident in our product and our prices. During our
research, we have also taken into consideration the traffic of area which we have
designated. We know that there will be other competition that will help create foot
traffic for Edna’s or take away business. Here are business we feel will create
traffic in our geographical area.
Wells Fargo Bank: W 21st & Guadalupe Street Starbucks: W24th St. & San Antonio Quiznos: W 24th St & Nueces Street University of Texas: W 25th St & Guadalupe Street Urban Outfitters: W 24th St & Guadalupe Street Sprint Store: W 24th St & Guadalupe Street Goodall Wooten Dormitory: W 21st St. Guadalupe Bus Stops located every 2-3 blocks on W 21st Street
Image Source: Google maps 1
Image Source: http://maps.google.com/ 1
Another factor to take into consideration when discussing traffic would be the
freeways and Highways that run through this area. We have I-35, Hwy-183, and
Hwy 290.16 “The major entry way into Austin is I-35. This freeway is commonly
known as the MoPac and joins the northern and southern outskirts. 17Highway 183
runs at a slight north-south diagonal through Austin. Although it doesn’t serve any
16 Fodor . Fodors Travel Pubns, 2008. Print.17 http://www.traffic.com/Austin-Traffic/Austin-Traffic-Map.html
major cities, U.S. 153 does serve as a major thoroughfare through town. Lastly,
U.S. 290 connects Austin and Houston.”18
Month Low HighJan 40.0°F 60.3°F
Feb 44.0°F 65.1°F
Mar 50.9°F 72.5°F
Apr 57.6°F 78.9°F
May 65.4°F 84.8°F
Jun 71.1°F 90.9°F
Jul 73.4°F 95.0°F
Aug 73.3°F 95.6°F
Sept 68.8°F 90.1°F
Oct 59.8°F 81.4°F
Nov 49.3°F 70.1°F
Dec 41.9°F 62.3°F
Climate 19
18 Fodor . Fodors Travel Pubns, 2008. Print.19 http://www.rssweather.com/climate/Texas/Austin%20City/ (Image source)
The graphs and charts we see above show the average rainfall, sunshine,
and temperature for the city of Austin Texas. Edna’s will benefit from the
warm climate all year long. This is one of the primary reasons we have
decided to locate our dress boutique in Texas. Edna’s must also take into
consideration the extremeness of the weather during the summer and
winter. The temperatures can reach up to 110 degrees Fahrenheit in the
summer and mid-30 degrees Fahrenheit during the winter. Most people will
not want to even step out of their homes during the extreme heat of the
summer, and in the winter, they may not want to wear dresses at all.
Month PrecipitationJan 1.89in.
Feb 1.99in.
Mar 2.14in.
Apr 2.51in.
May 5.03in.
Jun 3.81in.
Jul 1.97in.
Aug 2.31in.
Sept 2.91in.
Oct 3.97in.
Nov 2.68in.
Dec 2.44in.
Month Sunshine HoursJan 49%
Feb 51%
Mar 55%
Apr 54%
May 56%
Jun 69%
Jul 75%
Aug 74%
Sept 66%
Oct 64%
Nov 54%
Dec 49%
Edna’s should look at these quarters of operations as opportunities to
expand their inventory with items that will be sought out. Perhaps provide
that season with warmer merchandise and a smaller collection. Edna’s will
continue to look at yearly trends of climates and continue to watch out for
weather extremeness throughout the season.
Market Scope
Not only will Edna’s be shopped in the 78705 location, but we will also be a
destination for many other zip codes around the area. We have made sure to
analyze outside of our area so that our entire business does not only rely on
area code 78705.
North Austin, Cedar Park, Leander“Just a short drive Northwest of the Capitol City, you find the relaxing oasis of suburban life. Build on your own land or find a master planned community to suite your taste, either way both wildlife and luxury combine in this uniquely charming area of Central Texas. Northwest Suburban Austin, including Cedar Park, Leander and, Lago Vista is expanding at a rapid pace. Homes in this area begin in the lower 100’s, up to one million.”20
Georgetown“Georgetown is the historic county seat of Williamson County. Both the county, and the city, have experienced a tremendous growth pattern over the past 10 years. The population of Georgetown has almost doubled since 1997, reaching approximately 30,000 residents. Originally founded at the fork of the San Gabriel River, Georgetown is only a short commute North of the Austin City Limits, yet offers its residents a small hometown feel.”21
Northwest Austin“Northwest Austin is surrounded with both an abundance of activities and beautiful scenery. The Arboretum is well known for endless shopping, dining, and entertainment. The Domain offers unrivaled shopping, recreation, and contemporary apartment homes. The location is optimal, with highway 183 running through Northwest Austin, and connecting you to both Loop 1 and IH 35 which take you downtown. Homes in this area begin in the 200’s, to over one million.”22
Round Rock“Directly North of downtown Austin, Round Rock has become a very popular landing spot. Home to the Round Rock Express baseball team, as well as many
20 http://austin.cbunited.com/relocate/community.asp21 ibid22 ibid
large businesses, including Dell, Ikea, and Premium Outlet Malls, Round Rock has something for everyone. Offering close proximity to downtown Austin, coupled with suburban living, rich with outdoor family activities, parks, shopping and beautiful homes. Homes in this area begin in the mid to upper 100’s, up to one million.”23
Lakeway“Lakeway is a beautiful community located on the south side of Austin’s prominent Lake Travis. The Lakeway area includes some of Central Texas’ most exciting cities, including Lakeway, Majestic Hills, Flintrock Falls, Rough Hollow, Arbolago, Costa Bella, Vineyard Bay, Lakewind, Falconhead, and Alta Vista. Homes in Lakeway begin in the upper 200’s, to multi-million dollar homes.”24
Westlake“With meticulously master planned communities, exclusive country club golf courses, breathtaking views, and highly acclaimed schools, you can expect only the very best in Westlake. Surrounded by the natural beauty of the hills and lakes, the charm of Westlake is in the scenery. Homes in Westlake range from the upper 300’s to multi-million dollar homes. The community of Westlake includes the cities of West Lake Hills, Rollingwood, and encompasses the west bank of Lake Austin.”25
Southwest Austin“Southwest Austin is a diverse and exciting locale. Some of the most beautiful scenery of Central Texas unfolds before your eyes in the breathtaking southern hill country. Although Southwest Austin is within the city limits, the feel of the area is that of the suburbs. Southwest Austin is family friendly, with several outdoor activities and parks, including Austin’s Metro Park.”26
South Austin, Bastrop and Dripping Springs“South Austin is the heart of Austin and the epicenter of all that is uniquely Austin. South Austin features many of Austin’s most distinctive neighborhoods, shops, restaurants, and bars. The Southern Suburban areas of Bastrop, Kyle, Dripping Springs, and Wimberly offer spread out suburban neighborhoods, just a few short miles south of the city.”27
Buda and Kyle “Located between Austin and San Antonio, Kyle and Buda are two of the largest towns in Hays County, and growing at a rapid pace. The towns have been strategically planned for growth. Real estate in Kyle and Buda ranges from vast acreage estates to master planned communities, such as Plum Creek, Shadow Creek, Waterleaf, and The Meadows of Buda.”
23 http://austin.cbunited.com/relocate/community.asp24 ibid25 ibid26 ibid27 ibid
Austin is surrounded by many cities and towns that have Edna’s target market. We
feel that many students of colleges in the surrounding areas will come the
University of Texas to hang out and enjoy the parks and other entertainments
offered in Downtown Austin. Edna’s must also keep in the mind the competition
that might start stores similar to us that will open up in our market scope. This
could mean less business and more work in trying to make Edna’s a one of a kind
store.
Market size and growth rate 28
Texas has 24 million in population. It is the second largest state in the
United States and is still growing in population. Austin was announced as
one of the best places to live. During the last couple of years, Austin has
risen up to become a music haven for artists and entrepreneurs. “According
to the city’s music commission, Austin has more live venues per capita than
Nashville, Memphis, or New York City. Most of the city’s music clubs are
concentrated in a mile-and-a-half stretch along 6th street.”29 The projected
population for the year 2040 is almost 4 million. Edna’s can definitely say
that we have found an area that has great potential for growth.
Population & Population Growth
1980 1990 2000 2009Percent change
1990-2000 2000-2009
Austin MSA 585,051 846,227 1,249,763 1,705,075 47.7% 36.4%
Bastrop Co. 24,726 38,263 57,733 74,876 50.9% 29.7%
Caldwell Co. 23,637 26,392 32,194 37,810 22.0% 17.4%
Hays Co. 40,594 65,614 97,589 155,545 48.7% 59.4%
Travis Co. 419,573 576,407 812,280 1,026,158 40.9% 26.3%
Williamson Co. 76,521 139,551 249,967 410,686 79.1% 64.3%
Texas 14,225,512 16,986,335 20,851,820 24,782,302 22.8% 18.8%
United States -- -- -- -- 13.2% 9.1%
Data Source: http://www.austinchamber.co 1
28 Source: U.S. Bureau of the Census.29 Cohen, David, Rick Smolan, and DK Publishing. Texas 24/7. Dk Pub, 2004. Print
Population Growth 1999-2009
Data Source: http://www.austinchamber.co 2
Population Projections
2000 2010 2020 2030 2040
Austin MSA 1249,763 1,712,647 2,292,737 3,030,478 3,958,933
Bastrop Co. 57,733 81,717 112,096 149,340 192,599
Caldwell Co. 32,194 38,724 45,622 51,469 55,752
Hays Co. 97,589 164,078 250,886 355,508 469,394
Travis Co. 812,280 992,773 1,168,738 1,336,648 1,498,569
Williamson Co. 249,967 435,355 715,395 1,137,513 1,742,619
Growth rates 2000-2010 2010-2020 2020-2030 2030-2040
Austin MSA 37.0% 33.9% 32.2% 30.6%
Texas 21.7% 21.6% 20.8% 20.3%
Data Source: http://www.austinchamber.co 3
Attractive features of this Market
The climate of Austin Texas is a very attractive feature to this market. Edna’s clients will want to wear dresses to cool off during the hot summer days as well as look great.
There is a wide array of religion in Texas. It would not be too difficult to find your comfortable place in Texas.
Brand loyalty or any kind of loyalty is strong in Texas; whether it is for football or religion. Edna’s will benefit from those that have strong brand loyalty.
Traditional and festive No major state has weathered the recession more successfully than
Texas. 30
Difficulties and problems in this Market
Existence of similar attire in the area Competition being in the location for a longer period of time. This will
give them the upper hand in the beginning. Holidays will be difficult for Edna’s. Since we are located in the heart
of The University of Texas, the quarters where there will be a long break will be a time of low sales.
Acceptance of a new retail store during the first year. Staff loyalty and dedication. Because Edna’s will be selling clothes to
students that attend the University, we would like our staff members to be someone they can relate to. However, we may have to change our staff regularly and this could be difficult, but not impossible.
Existing Demand for this Product/Service
Trends indicate the coming of dresses
Dresses create more air circulation and keeps ladies cool. Texas can
reach up to 110 degrees, it will help with the heat.
30 http://www.portfolio.com/business-news/2010/01/18/austin-tops-small-business-vitality-survey
Growing popularity of Asian style clothes
Only one store similar very close by.
A large number of target market age that will want more than one
store to store to shop at.
Competitive Analysis
Direct Competition
Forever 21: Address-2901 S Capital of Texas Hwy, Austin, TX 78746 Section MForever 21 also known as XXI, has boomed in the past 5 years as a trendy and fashionable store where you can find anything and everything. They are notorious for being “with the trend” and cater to a Niche Market of 15-25 year olds. Within the last year they have expanded their market to males around the same age.
A’GACI too: Address-2901 S Capital of Texas Hwy, Austin, TX 78746 Section RA’GACI was found in Texas in 1972 by two brothers. It has been around for a while, but it is just starting to branch out and invade North America like XXI did. Currently they have stores in California, Texas, Arizona, Tennessee, Florida, and Chicago. Their primary consumers would be women around the age of 13-22. They highlight the fact that their shoppers love fashion and that they will find everything they need at A’GACI.
Urban Outfitters: 2406 Guadalupe St. Austin, TX 78705Known for their bohemian free flowing style, Urban Outfitters is a favorite among 19-35 year old men and women. They not only sell apparel, but home furniture and cleaver toys and accessories. Urban Outfitters has done an incredible job through just word of mouth marketing. Their products are fun and fulfill what the consumer is looking for, causing people to go back for more every time.
BCBGMaxazria: Address-2901 S Capital of Texas Hwy, Austin, TX 78746 Section BBCBG is a well known brand all throughout the world. They have over 20 international locations and is known for their elaborate colors and quality of clothes. Although their price points are a bit high, they are appealing to the
brand loyal customer. If she wears BCBG she will want to stop in every time to see what exciting new colors and designs are in.
Indirect Competition
The University of Texas’s foot ball team, Long Horns, will be Edna’s indirect competition. Texas is known for their love for football. Women who will normally shop at Edna’s and use about $30-150 will be torn by either purchasing a new outfit, or watching the Long Horn’s in the next home game. Thankfully, football is not a year-long sport, and business will be better when this event is not present. 31
COMPOSITE S.W.O.T
Edna’s has compiled a condensed and co-related charting of non-redundant
areas of strategic interest and implication with this new business venture. The
emphasis resides in how Edna’s compares to its major competitors and illustrates
the strategies to overcome obstacles as well as those to better leverage company
growth. Our top competitors are Urban Outfitters32, A’GACI too33, Forever
21(XXI)34, and BCBGMaxazria. 35
StrengthCompetition:
Developed brand nationally and domestically
Accommodate economic recession by having lower price points
Good marketing through word of mouth and other forms of media
Online presence with good distribution
WeaknessesCompetition:
Limited customer base Location of warehouse might cause
distribution problems and errors in shipment of goods
Store layout flaws Low quality products Competitive pricing-may be too
expensive for those that live on a
31 Texas. 1st. New York: Random House Ltd., 2008. 107-108. Print.32 Urbanoutfitters.com33 BCBG.com34 Forever21.com35 A’GACI.com
Extended customer base; for both men and women
Good service and product varietyEdna’s:
Exceptional service and product variety
Prominent Target Market location Shopping where quality and quantity
can co-exist Good Marketing through word of
mouth Online presence with option for
distribution Personal touch due to caring and
knowledgeable staff
budget (BCBG,UO) Low sales due to economic status
Edna’s: Lack of employees when needed due
to being a small store Low sales due to economic status Limited customer base: predominant
target market for female Being in an area that does not
provide a one stop shopping experience
Not being able to put items on sale as quickly as big corporate retail stores
OpportunitiesCompetition:
Better distribution plan Initiate sales to rid of old inventory Quicker merchandise turnover with
better analyzing of trends and communication with buyers and stores
Worldwide reputation will draw brand knowledgeable customers
Edna’s: Better marketing through word of
mouth and promotional events New business will attract customers Great location: University of Texas
neighbor-never ending source of target market
New and exclusive merchandise
ThreatsCompetition:
Competitor taking business of potential customers
Closing down of stores because of economic status
Losing inventory due to large orders Losing customers due to not enough
merchandiseEdna’s
Losing opportunity due to lack of inventory
Competitors being in close proximity and some being in malls
Losing business because of holidays that cancels school for weeks
Lack of employment due to small store and working with a budget
Marketing Environment
Below we see an image showing the business cycle. The importance of knowing the
business cycle is to identify in what economic situation you and your business is in
or will be in. The Business Cycle goes further than just identifying the economic
trends of Edna’s location of 78735 TX. We will examine the economies of the
nation, state, county, city, and the sub-cities. This will allow us to change or plan
according to the needs of our
changing economy which may change the needs of our consumers.
Image Source: Google images 1 1
Economic Issues
National:
“The G-20's six largest economies took a big hit during the global recession in the past year and a half. Challenges remain but most appear on the path
to recovery”36
Image Source: CNN.com
Currently the nation’s top six largest economies are beginning to recover from the
recession. The charts show the business cycle and at which point these 6 nations
are in. The United States has recovered significantly and is looking like we will be
getting out of the negatives.
Identifying the economic state of the entire nation, especially the 6 largest
economies, will assist Edna’s with information about how much they should buy for
the coming year and how consumers will buy. This can also determine if Edna’s
will be producing items overseas or open up multi-channels to sell through the
internet to different nations. During the years of recession, we saw a growing
36 Goldman, David. "G-20 summit:6 countriesin recovery." CNN (2010): n. pag. Web. 2 May 2010. <http://money.cnn.com/galleries/2009/news/0909/gallery.g_20_summit/index.html>.
trend uncirculated money. We are hoping that the following years of improvement
will allow Edna’s shoppers to consume more.
State
“The Texas economy, the worlds 11th-largest, continues to fare better than those of
many other states. But Texas felt the effects of the worldwide recession during
2009.
According to the National Bureau of Economic Research, the U.S. economy peaked
in December 2007 and entered recession. The Texas economy continued to grow
through most of 2008, with employment peaking in August that year, then Texas
joined the nation in losing jobs. During 2009, Texas’ gross state product (GSP)
declined more slowly than the U.S. economy (-1.7 percent versus -2.5 percent.”37
The presence of so many multi-million dollar companies has definitely been a plus
for Texas. The economy of the United States as a whole is in recovery. Even though
Texas was not hit as badly, it will be an advantage for Edna’s. This will create
more spending for tourists that may come from different parts of the country that
was affected by the recession. And the fact that we are coming out of the recession
will put people at ease and allow them to spend more on items that they might not
necessary need but want.
“Both the United States and Texas labor markets passed the trough of the Great Recession
in September 2009 (Figure 1). Texas’ job loss rate has decreased from 4 percent in
August 2009 to 1.5 percent in March 2010. Over the same period, the U.S. job loss rate
has decreased from 5 percent to 1.7 percent (Figure 1).The state’s seasonally adjusted unemployment rate rose from 7 percent in
March 2009 to8.2 percent in March 2010, while the U.S. rate rose from 8.6 percent to 9.7
percent duringthat period.”38
Edna’s will benefit greatly if job loss rates are significantly decreased. This will
better the economy as a whole and create traffic in their retail store. People will be
willing to spend their money instead of save it like they did during the recession.
37 http://www.texasahead.org/economy/outlook.html38 http://recenter.tamu.edu/pdf/1862.pdf
County
“The mission of the Travis County Underage Drinking Prevention task force is to create a community consensus that underage drinking is illegal, unhealthy, and unacceptable. The task force is comprised of social service, law enforcement, and other agencies and individuals, including TxDOT, Mothers Against Drunk Driving, the Travis County Sheriff's Office, the Texas Alcoholic Beverage Commission(TABC,APD, area school districts, local colleges and universities, and health care providers. Meetings are held on a regular basis.”39
Travis County should be more aware of underage drinking. This is a bigger problem for the County because Austin is in it, and because it carries the biggest University in the State; the University of Texas. Travis County has 8 colleges/universities with underage students that they also need to keep a watch on.40 That is almost 80,000 undergraduate students to watch over.
Edna’s employees will mainly be students at the University of Texas over the age
of 18. We will make sure to keep a strict policy where our employees do not come
to work intoxicated and drink responsibly if they do consume. Travis County’s
watch over these underage kids will help Edna’s by keeping students aware of
illegal acts. It could get difficult if our employees were to get arrested and not be
able to attend to their work at Edna’s.
City:
“The City of Austin has launched an online tool that works as an outlet for the public to provide comments about the city's budget.”41
The City of Austin is becoming more high tech and is finding ways to conserve
their city budget and use it wisely. Edna’s can benefit from the conserving of the
city’s budget. First off, if they were to use it to build more entertainment and
attractions in the Downtown area or even at the University, it could potentially
mean more customers and sales for Edna’s. Or it could be renovations for
39 http://www.co.travis.tx.us/county_attorney/underage_drinking_pgm/40 http://www.traviscountytexas.us/Colleges/universities.htm41 http://news8austin.com/content/top_stories/271656/city-launches-online-tool-to-gain-public-perspective
buildings and better living, making Austin Texas an even better place to live.
Anything that makes Austin better will benefit Edna’s whether it be better roads
or more parks.
City-Sub
“Right Now is a Great Time to Live in Austin!
Not only has Austin consistently controlled one of the strongest real estate markets in the United States, but according to Money Magazine, Austin is one of the Best Places to Live in America.
Austin is a tourist attraction and a magnet for new businesses. Even Hollywood has taken a recent interest in the city, dubbing Austin an up and coming “Tinseltown.” Once visitors enter the capitol city, they find it difficult to leave…which is evident in the area’s climbing growth rate. Quality of life in the Greater Austin Area is superior to most major metropolitan areas; the employment rate is high, and cost of living comparatively low.”42
Throughout our research we are finding that almost everything we read tells us
that Austin is the way to go if you want to live in the suburbs. The reputation that
Austin has will be incredible for Edna’s. This means that we are in the right place
at the right time. It’s not that Austin is beginning to flourish. We believe that
Austin will be the starting point for Edna’s rich and long future. We have definitely
designated a great location and know that there will be many more opportunities
presented to us in the future as we grow astride the population and popularity of
this innovative community.
Political Issues
42 http://austin.cbunited.com/relocate/community.asp
National:
“(CNN) -- Grammy Award-winning singer Shakira has joined the growing chorus of opposition to Arizona's new immigration law.Shakira met with leaders Thursday in Arizona Thursday before talking about the issue on CNN's "AC 360." She said some police and lawmakers in Arizona are worried about how the new law will be implemented.‘"The mayor is very, very worried, as well as the chief of police here," Shakira said. "They're both very worried about the impact that implementation of this law will have on Latino families, the level of abuse that will be inflicted on Latinos, with or without papers."’43
Texas is home to many Latino families. They make up 36.5% of the entire Texas
population.44 Edna’s is located in an area where Latinos are not as prominent, but
the surrounding areas have an abundance of people with this background. These
surrounding areas include Round Rock and San Antonio. We have identified that
these locations are important to Edna’s. All of Texas will be affected if all their
Latino background workers were in danger of being deported back to their
homeland. Not many people will take the assortment of jobs that Latinos will take.
State: “The bill passed by the Senate Banking Committee would establish a $50 billion fund, prepaid by large financial institutions, that would be used to keep failing firms operating as regulators sell off their assets in an orderly liquidation process.”45
If this bill was passed, it would be incredible for small new businesses. If
Edna’s was opened during this time period, we would expect operating the
business to be less stressful because of the back up this bill would create.
We also hope that it will create more business around the area for Edna’s. It
would create competition but it will bring foot traffic to that area where
Edna’s will be as well.
County:
43 http://www.cnn.com/2010/US/04/30/arizona.shakira.immigration/index.html44 http://quickfacts.census.gov/qfd/states/48000.html
45 http://austin.bizjournals.com/austin/othercities/buffalo/stories/2010/04/26/story3.html?b=1272254400^3225501&s=sbc:2
“The 2010 Census is coming and it's imperative that Central Texans participate. Each question helps to determine how approximately $400 billion will be allocated to communities across the country.”46
Travis County wants everyone to fill out the 2010 census. This will assist in
creating a clearer analysis of the demographic of cities and help businesses
such as Edna’s to find the right place to open up a retail store. The Census
can also be a way for our county to be remodeled. If the government finds
there is a need, they will provide. Having a town worthwhile to visit will
bring consumers all around the world and all around the state.
City/City-Sub:
“Commissioner Gómez has successfully supported Travis County Bond Elections
every five years since 1995 to invest in the local economy as well as in the
infrastructure of the local mobility of traffic. Two bond elections were approved by
the voters to invest $90 million for the purchase of right of way for SH130. Drainage
projects have been approved by the voters since flooding in prevalent in Precinct 4,
Southeast Travis County.
In November, 2004, she successfully supported and received voter approval for the
construction of commuter rail, adding another mode of transportation to address
traffic congestion in Austin/Travis County.”47
Margaret Gomez has been both supportive and involved in the Austin Community
and Travis County. She has done an exceptional job in school at a late age and has
much to better her community. The re-election of Commissioner Gomez would be
good, not only for Travis County and Austin, but also the world right now.
Margaret Gomez has a Latin background and is holding a position where her
decisions could affect the American people. Re-electing her would mean that we
are going to trust our fellow Latin Americans. Currently Arizona is going through a
crisis where they are not allowing any Latin background on the United States
without their papers. Edna’s will favor the mixing of ethnicity and freedom to all
people who are American in the U.S. We will be a store that appreciates every race
46 http://www.campotexas.org/47 http://www.reelectmargaretgomez.com/about/
by allowing them the opportunity to work for us, and we feel that supporting
Commissioner Gomez will show our support.
Layoffs/Unemployment
Data Source: http://data.bls.gov/PDQ/ser 1
Data Source: http://data.bls.gov/PDQ/ser 2
Data Source: http://data.bls.gov/PDQ/ser 3
Data Source: http://data.bls.gov/PDQ/ser 4
Data Source: http://data.bls.gov/PDQ/ser 5
Top 20 Employers in Texas
“American Airlines (AA) is a global airline doing business in 250 cities and 40 countries throughout the world. AA is headquartered in Dallas, TX, but offer career opportunities in a number of other locations, including Boston MA, Chicago, IL, Miami, FL, Philadelphia, PA, San Francisco, CA and Tulsa, OK. At American, you'll find outstanding career opportunities and the chance to work with some of the best in the business.
AT&T is the largest telecommunications company in the United States and one of the largest in the world. Headquartered in San Antonio, TX, AT&T had 179,420 employees as of Sept. 30, 2006. The company delivers an unsurpassed portfolio of traditional and IP-based voice, broadband Internet, data transport, wireless and video services.
Baker Hughes has been a technology leader in providing products and services for the oil and natural gas industry for nearly 100 years. The company, headquartered in Houston, TX, is the only major oilfield service company structured around strong product-line divisions that are focused on Best-in-Class products and services. "New Baker Hughes employees have the opportunity to work in teams of engineers and scientists who invent and implement innovative technology that rivals the space industry in its complexity and sophistication."
The Container Store was founded in 1978 when Kip Tindell (CEO), Garrett Boone (Chairman), and Architect John Mullen opened a retail store offering an exceptional and eclectic mix of products devoted to helping people simplify their lives. The Container Store's home office is located in the Dallas/Fort Worth Metroplex, which is located adjacent to their Distribution Center
Dell Computer has revolutionized the industry to make computing accessible to customers around the globe, including businesses, institutional organizations and individual consumers for over 20 years. "Round Rock, Texas is the home to Dell Americas, the regional business unit for Canada, the United States and Latin America. Dell has regional headquarters in Bracknell, England, for Europe, Middle East and Africa and in Singapore to serve the Pacific Rim, including Japan, India, China, Australia and New Zealand." Dell is committed to being a meritocracy, and to developing, retaining and attracting the best people, reflective of their worldwide marketplace.
El Paso owns North America’s largest natural gas pipeline system and one of North America’s largest independent natural gas producers. "In the three-quarters of a century since its founding, El Paso has grown from a regional natural gas company to the largest natural gas transmission system in North America." Headquartered in Houston, TX, El Paso provides competitive pay and benefits.
"GameStop is the world's largest video game retailer. With over 4,400 stores located throughout the United States and 15 countries, we are the retail destination for gamers around the world." Headquartered in Grapevine, TX, GameStop is always looking for intelligent and self-motivated people interested in working within one of the fastest-growing segments of the interactive entertainment business.
Hewlett-Packard Company (HP) was founded in 1939 by Bill Hewlett and Dave Packard. "The company's first product, built in a Palo Alto garage, was an audio oscillator—an electronic test instrument used by sound engineers. One of HP's first customers was Walt Disney Studios, which purchased eight oscillators to develop and test an innovative sound system for the movie Fantasia." Today HP maintains offices around the world including Hewlett-Packard USA in Houston, TX. HP provides technology solutions to consumers, businesses and institutions around the world and currently has over 140,000 employees in 178 countries.
J.C. Penney - James Cash Penney opened his first "Golden Rule" Store in 1902 in Kemmerer, WY. The J.C. Penney name was adopted in 1913 when the company had a total of 36 stores. Today, the company is headquartered in Plano, TX, has more than 151,000 employees and operates 1,037 stores throughout the U.S. and Puerto Rico. "JCPenney is the nation's largest catalog merchant of general merchandise, and jcp.com is one of the largest apparel and home furnishings sites on the Internet
Kemah Boardwalk, located in Kemah, TX, is the perfect family get-a-way with hotels, amusement park, restaurants, shopping and a marina. Employment opportunities exist here in a variety of fields from cashiers and dishwashers to hosts, retail associates and ride operators. Kemah is alway looking for fun, energetic, honest, hard-working individuals to work in their many locations.
Men's Wearhouse opened their first store in Houston, TX in 1973 selling primarily polyester sports coats. Today the company operates more than 720 retail apparel stores in North America. Men's Wearhouse provides competitive compensation and benefits, high-quality training programs and promotional opportunities.
Michaels Stores, Inc., the nation's largest specialty retailer of arts and crafts materials, has been helping crafters of all ages express themselves with skill and originality for over 20 years. Headquartered in Irving, TX, Michaels Stores can be found in 48 states. The company also operates seven distribution centers. Michaels has career opportunities available in a variety of fields from corporate to retail level
Nieman Marcus is a renowned specialty store dedicated to merchandise leadership and superior customer service. Headquartered in Dallas, TX, Nieman Marcus opened the doors of the first store on September 10, 1913. The firm offers
competitive compensation, a comprehensive benefits package and currently has career opportunities available at both corporate and retail levels.
Southwest Airlines (SWA ) began as a small Texas airline more than 35 years ago. Today, headquartered in Dallas, TX, Southwest Airlines flies more than 80 million passengers a year to 62 great cities all across the country, and we do it more than 3,100 times a day. SWA is now hiring Flight Attendants and Ramp Agents.
SYSCO - an acronym for Systems and Services Company - began with a promise to assist foodservice operators in providing consumers with solutions for meals consumed away from home. Headquartered in Houston, TX, SYSCO has over 170 locations in the U.S. and Canada, 47,700 employees and today is North America's leading foodservice marketer and distributor. The firm offers competitive compensation and a comprehensive benefits package that is responsive to the needs of their employees
Tesoro, headquartered in San Antonio, Texas, is a Fortune 200 and a Global Fortune 500 company with approximately 4,000 employees. The company refines crude oil from around the world into transportation fuels that meet the needs of their customers and consumers in the communities in which they operate. Full-time, regular employees of Tesoro are eligible for a competitive benefits package as part of their total compensation.
Texas Instruments (TI) was founded more than 75 years ago and today, evidence of TI’s continuing work in processing and interpreting signals is all around us in communication and entertainment. The company has earned more than 15,000 patents - testimony to the bright minds and innovative wills that keep TI at the technological vanguard. Headquartered in the heart of Dallas, TX, TI has manufacturing sites, sales and support offices located in Europe, Asia, Japan, and the Americas. If you are a professional, college grad or student on a search for engineering jobs or an exciting career in information technology (IT), manufacturing or finance, then a world of opportunity awaits you at TI.
Valero Energy Corporation, the largest refiner in North America, is based in San Antonio and has approximately 22,000 employees. Valero derives its name from San Antonio's most famous landmark, the Alamo. Founded in 1718, the Alamo was originally called Mission San Antonio de Valero. "Employees at Valero appreciate challenging responsibilities, the best benefits in the industry, a diverse working environment, and many opportunities to give back to their communities."
Whole Foods Market is the largest natural and organic foods supermarket retailer. Headquartered in Austin, TX, Whole Foods operates 187 locations in North America and the United Kingdom with 39,000 employees and 8 distribution
centers. If you are interested in a career in the food service sector, check out the opportunities available here.”48
University of Texas “The 350-acre campus breeds Texas Longhorns, as passionate about football as they are about academics. The university is the larger employer in Austin, (even more than the state government), employing more than 80,000 people. The number of student here is staggering, too: 39,000 undergraduates and 11,000 at the graduate level.”49
Texas is full of businesses due to the natural resources available and because there
is enough land to hold such large companies. For Edna’s this could either be a
good thing or a bad thing. Depending on the location of such businesses, it would
create more customers for Edna’s or it can take away from their business. The
University of Texas will be a good source of customers for Edna’s. The
demographic of Edna’s will be easily found in this location, whether it be student
or teacher.
Legal/Regulatory/Tax/Licensing Criteria
Tax Rates
“The Texas state sales and use tax rate is 6.25%, but local taxing jurisdictions
(cities, counties, special purpose districts, and transit authorities) may also impose
sales and use tax up to 2% for a total maximum combined rate of 8.25%.”
State City County Transit Special
Purpose
Districts
6.2%(.0625) 2%(.0025-.02) .5%$(.015) 1%(.0025-.01) .125%
(.00125-.02)
Due Date
Monthly, Quarterly, Yearly (based on qualifications): 20th day of the month
following the end of the reporting period.
Interest Rate
Past-due taxes are charged interest beginning sixty-one days after the due date.50
Licensing48 “Texas’s Largest Employers”. www.jobbankusa.com. Accessed 2, May 201049 Texas. 1st. New York: Random House Ltd., 2008. 107-108. Print.50 “Local Sales and Use Tax”. http://www.window.state.tx.us/taxinfo/local/. Accessed 1 May 2010
The City of Austin does not require a business license unless it involves taxi’s or
other specialized activities. These can be found in title VIII of the city code, Volume
I.51
Marketing Environment P.2
Social Issues
51 ibid
Education level
Education attainment for females 25 years and older:
No schooling: 3,495 Nursery to 4th grade: 2,264 5th and 6th grade: 4,996 7th and 8th grade: 4,518 9th grade: 4,296 10th grade: 3,634 11th grade: 3,199 12th grade, no diploma: 4,883 High school graduate (or equivalency): 36,974 Less than 1 year of college: 12,745 Some college more than 1 year, no degree: 29,591 Associate degree: 9,623 Bachelor's degree: 51,545 Master's degree: 18,568 Professional school degree: 4,130 Doctorate degree: 2,614
Education can be important when considering the target market. It is important to
know the level of education that your consumer has because it may determine how
you will run your business. Many of Edna’s consumers will be thriving for higher
education. We can make this prediction, because our main source of consumers
will come from the University of Texas, Austin. Although some businesses may
cater directly to those not as well educated resulting in a limited budget, Edna’s
will be a store that caters to those knowledgeable and aware of fashion as well as
price conscious. We will not discriminate any customer, but we feel that Edna’s
consumers will know what’s good for them in quality and style; she keeps up with
the trends and as she ages she is willing to spend more for the sake of her image.
Overall, educated or not, we feel that these people will definitely help us begin to
build a clientele and reach our goal for the end of this year.
Housing52
Houses: 276,611 (265,409 occupied: 119,191 owner occupied, 146,218 renter occupied)
% of renters here:
55%
52 Data Source: http://austintx.areaconnect Error! Main Document Only.
State: 36%
Housing density: 1100 houses/condos per square mile
Household type by relationshipHouseholds: 17,404
In family households: 3,744 (976 male householders, 443 female householders)
1,009 spouses, 737 children (711 natural, 10 adopted, 16 stepchildren), 7 grandchildren, 316 brothers or sisters, 26 parents, 77 other relatives, 153 non-relatives
In nonfamily households: 13,660 (4,994 male householders (3,125 living alone)), 3,524 female householders (2,003 living alone)), 5,142 nonrelatives
In group quarters: 9,568 (363 institutionalized population)
Size of family households: 909 2-persons, 250 3-persons, 167 4-persons, 77 5-persons, 9 6-persons, 7 7-or-more-persons.
Size of nonfamily households: 5,128 1-person, 2,372 2-persons, 519 3-persons, 406 4-persons, 69 5-persons, 15 6-persons, 9 7-or-more-persons.
Knowing our customers inside out is key to better sales and a quicker clientele.
Edna’s wants to understand all our clients and be able to cater to their needs. We
could definitely benefit from this type of information, because knowing the
household number and the amount of people will help us to estimate their
spending habits after finding out the average income. We know that this will not be
completely accurate, but through research we have identified this area to have
great potential due to the small family sizes and a large number of students.
Crime Rates53
Crime Type 2006 Total
Per 100,000 People
National per 100,000 People
Overall Austin Crime Index
45231 6372.2 4479.3
Austin Violent Crimes 3658 515.4 553.5
Austin Murders 20 2.8 7
53 Data Source: http://austintx.areaconnect Error! Main Document Only.
Austin Rapes 319 44.9 33.1
Austin Robberies 1358 191.3 205.8
Austin Aggravated Assaults
1961 276.3 336.5
Austin Property Crimes
41573 5856.9 3906.1
Austin Burglaries 7467 1052 813.2
Austin Larceny/Thefts 31562 4446.5 2601.7
Austin Motor Vehicle Thefts
2544 358.4 501.5
Austin Arsons 1 88 12.4 N/A
Knowing the area which you are setting up your own business is very important.
We have researched the crime rate of Austin to better protect our business and to
be aware of our surroundings. We will definitely provide assistance to our
employees when cars are parked far away and when in any doubt. Edna’s wants to
provide security especially on the job and even after hours.
Cultural Issues
Ethnic Mix
“The State is a melting pot dotted by pockets of Czech, German, and Irish communities; bilingual population in the lower Rio Grande Valley and border towns; and more than 4 million of Hispanic descent statewide.” 54
54 Baird David, Peterson.E, Scheldt. N. Texas, Wiley Publishing ,Inc. Indianapolis.
55
“Texas remains one of the fastest-growing states in the country. Between 1970-1990 its population growth rate was about two-and-a-half times the national average. From 1990 to 2000 the growth rate was almost 23%, nearly twice the national average, as Texas gained close to 4 million new residents.”56
“The three ancestries in Texas are Mexican, German, and Irish.”57
“Austin’s population has grown 47% since the 1990’s.” 58 Edna’s caters to every
race and ethnicity. We are located in an area where we cannot be racist or bias.
“The university has one of the most diverse student populations in the country and
is a national leader in the number of undergraduate degrees awarded to minority
students.”59 The UT has students coming from all around the world exposed and
raised in different cultures. Edna’s will accommodate any consumer who comes in
to look at our merchandise. A girl is a girl no matter what color or language they
speak. They all want to acknowledged and feel beautiful.
Night Life
55 Image Source: http://www.zipskinny.com/index.php?zip=7870556 Barenblat, Rachel. Texas, the Lone Star State . Gareth Stevens, 2002. Print.57 ibid
58 Fodor. Fodors Travel Pubns, 2008. Print.
59 http://www.utexas.edu/opa/pubs/facts/overview.php
Heritage and Background, Austin TX
WhiteNative Hawaiian and other pacific islanderHispanic/LatinomultiracialAsianBlack/African Americanother
Club and Music Scene 6th street
Warehouse District
Red River- between 6th and 10th streets.
Oslo, 301 W. 6th st (512/480-9433)“Is the place to see and be seen in Austin, with lines out the door. The club plays host to a strong roster of the city’s finest DJs, as well as live performers such as regular Tuesday-night torch singer, Hedda Layne”60
Edna’s clients will love the night life as much as they love the day life. During the
night they can relax on 6th street with friends and go bar hopping. Or they could
just head over to warehouse district for some clubbing and live music. Our client is
versatile and fun. She will enjoy both day and night, and always be in areas of high
interest to the young and bright.
Performing Arts
Theaters Austin Circle of Theaters Hotline, 512/469-Show, Ext. 1603
Texas Box office, texasboxoffice.com: 512/416-5700
Star Tickets Plus,888/597-STAR, premier.ticketplus.netConcerts at La Zona Rosa, the Backyard, and Austin Music Hall, and selected shows at the Paramount Theatre.
60 Guide, Mobil. Mobil Travel Guide 2008 Texas . Mobil Travel Guide, 2008. Print.
Austin Box Office, 3423 Guadalupe (512/474-8497; www.austix.com
State Theater Company, 719 Congress Ave. (512/472-5143; www.austintheatre.org.
“Performs at the beautiful old theater for which it is named, is Austin’s most professional troupe, and their recent repertoire ran the gamut from Judith Ivey’s Women on Fire to a dramatization of Orwell’s 1984.
Zachary Scott Theatre Center (512/476-2163; www.zachscott.com). Austin’s oldest theater which was incorporated in 1933.Performing Arts Center, The University of Texas;
“Austin has its own symphony, theater, ballet, lyric opera, and modern dance companies, but it also draws national and international talent to town. This center is located at the University of Texas.”61
Austin Symphony, 1101Red River St. (888/4MAESTRO; www.austinsymphony.org)
Austin Lyric Opera, 901 Barton Spring Rd. (800/21-OPERA, www.austinlyricopera.org)The Austin Chamber Music Center, 4930 Burnet Rd. Suite 203
Restaurants62
Downtow South Central Eastside Northwes Westlake/ Musica
61 Guide, Mobil. Mobil Travel Guide 2008 Texas . Mobil Travel Guide, 2008. Print.
62 Guide, Mobil. Mobil Travel Guide 2008 Texas . Mobil Travel Guide, 2008. Print.
n Austin t Lake Travis l Brunches
Driskill Cafe
Uchi Jeffrey’s Eastside Café
Z’Tejas Southwestern Grill
Hudson’s on the Bend
Castle Hill Café
Vespaio Fonda San Miquel
Hoovers Musashino The Oasis
Shoreline Grill
Curra’s Grill
Wink
Clay Pit Guero’s AstiHuts’s Hamburgers
Matt’s El Rancho
Hyde Park Bar and Grill
The Iron Works
The Salt lick
Threadgill’s
Las Manitas
Chuy’s
Shady Grove
We have researched all the restaurants and eateries that our consumers will be present in. Whether it be burgers or steak, our Edna girl will have a good appetite. Identifying the places where our clients will go outside of Edna’s is important for us as a store because it will allow us to better understand our consumers. It could also help us during selling, by being the connection needed to close a sale.
Parades /Festivals/Holidays63
1. Fantastic FestHeld each year at the Alamo Drafthouse Cinema on South Lamar in Austin, Fantastic Fest has become the largest genre film festival in the United States. Those in attendance are treated to a full slate of horror, sci-fi, and action movies throughout Fantastic Fest.
2. Texas Book FestivalHeld at the State Capitol in Austin, the annual Texas Book Festival features over 200 authors, as well as exhibitors, live music, food, a children's area and more.
3. Austin City Limits Music FestivalOne of the largest and most popular music festivals in the country, the Austin City Limits Music Festival features in excess of 100 performing acts offering a mix of music from various genres.
4. Austin Film Festival63 http://gotexas.about.com/od/festivals/tp/05HolidayParade.htm (1-8)
For more than a decade, the Austin Film Festival has provided a venue for up-and-coming screenwriters and filmmakers to have their work brought into the public consciousness.
5. South by Southwest Music FestivalHeld in Austin each March, South By Southwest (SXSW) is one of the top music festivals in the country. Event performers cover over 50 stages in downtown Austin.
6. Keepin' It Weird FestivalAustin's annual Keepin' It Weird Festival celebrates all of the odd, crazy, irreverent and funky things that make Austin a unique place to visit and live.
7. Austin Reggae Festival
Austin Reggae Festival
The Austin Reggae Festival is one of the largest and most popular Reggae music festivals in Texas. Featuring nearly a dozen bands, the Austin Reggae Festival treats attendees to two full day of live music.
8. Chuy’s Christmas Parade
Chuy's Christmas Parade Overview:
Why wait 'til December for a Christmas Parade when you can attend Chuy's Christmas Parade in Austin during November? This unique Christmas parade raises money for "Operation Blue," which provides toys to needy children in the Austin area.
About Chuy's Christmas Parade:
Held the Saturday following Thanksgiving, Chuy's Christmas Parade features giant inflatable balloons, holiday floats, classic cars, marching bands and Santa. However, in addition to being great entertainment for those in attendance, Chuy's Christmas Parade also serves as a toy drive for needy children. Spectators are encouraged to bring a toy, which will be collected by 'Santa's Helpers' on behalf of Operation Blue during the parade.
Where Chuy's Christmas Parade is Held:
The parade route begins at the State Capitol at 11th and Congress and proceeds south along Congress to Cesar Chavez.
Austin is considered by many to be the cultural hub of Texas. This diversity is reflected in the varied festivals and events staged in Capital City each year.
9. Austin's Pride Parade
“The Austin Gay and Lesbian Chamber of Commerce has organized Austin's Pride Parade since 2002 with attendance as high as 45,000 in 2008. In 2008, AGLCC added the festival to its list of responsibilities and in 2009 commissioned the formation of The Austin Gay and Lesbian Pride Foundation - an organization solely dedicated to managing and organizing Austin's Pride parade and festival. The 501(c)(3) has been filed with the Texas Secretary of State and the IRS and approval of the non-profit status is pending.”64
10. First Night Austin
“Each New Year’s Eve the city serves as the stage for a variety of artists, street performers, musicians, puppeteers, and dancers. The interactive festival features children workshops for creating puppets, festive hats, and origami cranes for the final event parade.”65
Austin Texas is a city full of excitement and events. The biggest event in Austin is the Chuy’s Christmas Parade, which goes on during November. This is when Edna’s will begin its second promotional sale. Our consumers will know of this through our advertising on Facebook and other mediums.
We can definitely count on our target market to be present in many of the festivities taken place throughout the year. This will be a time for Edna’s to sell and observe the sales throughout this time. It will assist in inventory control and help us to determine how to prepare for the next year, or show us the success of that season.
64 http://sites.google.com/a/aglcc.org/austin-pride-2010/
65 Fodor. Fodors Travel Pubns, 2008. Print.
Edna’s will be closed during the main holidays such as Thanksgiving, New Years, New Years Eve, Christmas, and 1/3 of the day the Chuy’s Parade occurs. We will determine if it is necessary to close during smaller festivities, because being available to our consumers during these periods could mean more sales and clientele
Religious Issues“Percentage of population affiliated with a religious congregations: 46.17%”66
Religion Adherents
Catholic ChurchSouthern Baptist ConventionPresbyterian ChurchLutheran ChurchUnited Methodist ChurchChurches of ChristCharismatic ChurchesEpiscopal ChurchEvangelical Lutheran
image source: http://www.city-data.com/h 1
Knowing our customer religion could again help us to make sales by helping us better relate with them.
Texas is known for their religious background. It is not unlikely that a Texan will go to church on a
Sunday morning and in his good shirt. By understanding the culture we are able to better understand the
way that our demographic is. Edna’s will try our best to accommodate those that are obligated to not do
66 http://www.city-data.com/city/Austin-Texas.html
things or do thing because of their religion. We will also make sure that our employees understand that
we will be considerate of their beliefs and values.
Creating a trusting relationship on a personal level will help Edna’s to establish its place among the stores
in the area. We hope that we can make our customers feel more welcome and continue to put a personal
touch on our customer service to better assist our consumers.
Technological Advances
The Technologies that we see today in the retail industry is becoming more and
more advance every day. E-commerce has grown over the last decade, and not we
are going on to bigger things and better things; such as mobile commerce.67 This is
when advertisements and buying can be done through your mobile phone. The
existence of phones that receive internet connection, such Apple products, Verizon
Wireless phones, Samsung, AT&T, are just the beginning of the mobile revolution. 68
These technological advances are making their way into the fashion industry
quickly. How will Edna’s benefit from these new technologies? The technologies
that are coming into existence are cheaper to obtain when they first debut; this is
usually to test out the technology. However, Edna’s will not be advertising via
mobile commerce because we have yet to figure out if our Edna’s client would be
interested in such a way of buying. From our research, we have identified that our
consumers like to see the products and touch them with their own hands and eyes
before purchasing. So we will definitely take into consideration the option, but not
until our first or 2nd year of operation.
67 http://www.ecommercetimes.com/?wlc=127616250668 http://www.mcom.cs.cmu.edu/
Technology will continue to advance, and to be able to keep up with the trends,
Edna’s should understand and know what is out there and if it will be beneficial for
them to have in our store.
Environmental Issues
“Environmental Impact Assessment (EIA) is a process of evaluating the likely environmental impacts of a proposed project or development, taking into account inter-related socio-economic, cultural and human-health impacts, both beneficial and adverse.”69
“LEED - (Leadership in Energy and Environmental Design) is an ecology-oriented building certification program run under the auspices of the U.S. Green Building Council (USGBC). LEED concentrates its efforts on improving performance across five key areas of environmental and human health: Energy, Efficiency, Indoor Environmental Quality, Materials Selection, Sustainable Site Development, and Water Savings. Consumers around the world are learning about LEED compliant products, and are adapting them in their home everyday.”
The environment and how it is affected should be important to everyone. This earth
is our earth and the earth or our children and grand-children. It is important to
take care of it while you can, and Edna’s has researched ways to be more green
efficient. Coincidently, the LEED compliance headquarters is located in Houston,
Texas. This should be even more important to us because our state has taken
initiative to become more green. Leed will assist us in improving performance in
energy, efficiency, indoor environmental quality, materials selection, sustainable
sit development, and water savings.
Edna’s will put in the extra effort to be as green as we can. We understand the
finances that go with this responsibility, but we would like to support our earth and
so will our consumers.
69 http://www.cbd.int/impact/whatis.shtml
Promotional Plan
Image Statement
“Edna’s will create a place to shop for those who want to express
themselves with comfortable and beautiful clothes. Our “in” girl is not
determined by what she is wearing, but by the aura she gives off while
wearing Edna’s clothes. An Edna girl will be described as determined,
simple, independent, happy, balanced, and beautiful. Indulge life like an
Edna girl. Live every day like it’s your last, dance like there is no tomorrow
and sing as if no one is around. Be an Edna girl!”
Image Source: Google Images 1
Marketing Mix
Edna’s will be recognized by its elephant logo. We have chosen the elephant
because they have been defined as a creature larger than life. This image
will be the source to our store image. We want the Edna girl to understand
that they are part of a big life(elephant) and to live it beautifully(little girl).
Another reason why we choose the elephant is because of the beauty it
exerts in behavior and the fact that it lives in a warm habitat kind of like
Texas. Our image will be made through our clothes, and our clothes will be
inspired by our view in life.
Product Description
The lifecycle of Edna’s merchandise will be longer than stores because they
will be bringing things in from out of the states, and beccause the products
we purchase will be more classical pieces. Edna’s will carry a large
assortment of accessories, dresses, skirts, shoes, and dressy tops. We
believe these items will remain in the Edna’s shoppers closet for years to
come. They will wear merchandise bought from Edna’s until they think it’s
time for someone else to enjoy it. Edna’s will carry items that fall between
the growth stage and Maturity stage. Which means that many items will be
classic pieces. We could call ourselves perhaps a mixture of Chanel and
theory knockoffs. We want our pieces to be items that people are going to
love for years to come. When pictures of Edna’s dresses appear, we want
our consumers to see themselves as beautiful with the help of Edna’s.
Source: Google Images, http://www.12mana 1
Categories of ApparelOne-piece DressesSkirtsDressy TopsAccessories
Brands 70 Hand Bags Dresses Dressy
Tops/Skirt
s
Accessori
es
Forelle Lovely Day Yoco Ann Kim
Fashion
Accessorie
s
Deux Lux Namdaemu
n71
Namdaem
un
J&B
Super Lover
handbag
Dongdaemu
n72
Dongdaem
un
Juliana
Binman
Collection
Yoco Lovely Day Luca
Edna’s will consist of clothes bought in California, Texas, Korea, and online
venues. All venues will be visited 3 months before the upcoming season. Our
product brands will include items from Dongdaemun and Namdaemun from Korea.
Juliana, Mikko, Luca, and J&B will be bought from jobbers in California and Texas.
Many of our products will be from out of the Country for the first year. We will
develop more relationships throughout this next year and spread our business to
more local wholesalers. Edna’s will hire buyers as well as do some buying on their
own. Any buying outside of the states will be done through the owner of the
business. We will have to be more vigilant when it comes to buying in foreign
countries.
70 http://www.fashiondistrict.org/Search.html?tag=Handbags71 http://www.lifeinkorea.com/shopping/index.cfm72 http://www.lifeinkorea.com/shopping/index.cfm
One-Piece Dresses, Skirts, Dressy Tops
Vendors Manufacturer/ DeliveryFashion4us73 Korea, Hong Kong, Japan /DHL Express
shippingAlternative Apparel /FedexLovely Day Wholesale California/ Ground Shipping via UPSMyong-dong Wholesale74 Korea/ Air Freight, international
shippingNamdaemun/Dongdaemun Korea/Air Freight, international
shippingYoco Korea, Hong Kong, Japan /DHL Express
shipping
Accessories
Vendors Manufacturer/DeliveryMyong-dong Wholesale Korea/ Air Freight, international
shippingYoco Wholesale75 Korea, Hong Kong, Japan /DHL Express
shipping
Handbags
Binman Collection76 Japan/UPS ShippingSuper Lover Handbag Japan/UPS ShippingDeux Lux California/Ground shipping via UPSForelle California/Ground shipping via UPS
73 http://fashion4us.com/wholesale-fashion.action74 http://www.mytravelguide.com/attractions/profile-79555205-South_Korea_Seoul_Myung_dong_Street.html75 http://www.yocowholesale.com/wholesale-handbags-c-20.html76 http://www.carlvinoparis.com/product_info.php/pName/bn1195-black-m
Price
Dresses
Skirts
Dressy Tops
Accessories
HandBags
$0.00 $50.00 $100.00 $150.00 $200.00
25.95
20.95
12.95
5.95
35.95
32.95
25.95
19.95
12.95
59.95
59.95
35.95
25.95
19.95
79.95
PromotionalValuePrestige
Edna’s price range will fall at $5.95 to $79.95. Our prices have such a large range
because there will be items that cost more because of international shipping and
because out products will be of better quality. When our consumers talk about out
store, they will tell their friends that we have good quality items for a good price.
Our price line will be at $19.95- $79.95 for our entire store. For each category it
will all differ. Handbags will range from $35.95-$79.95, Accessories will be $5.95-
$19.95, dressy tops will be $12.95-$25.95, skirts will be $20.95-$35.95, and our
dresses will be $25.95-$59.95. Consumers will regularly come out of Edna’s after
spending an average of $150.
Our prices will attract our demographic that value quality and price the same.
Edna’s will be a place where you can get an item at every visit. The quality of our
products will be worth every buck.
Promotional Mix
Eventually, we hope that the media that will effectively market and bring
consumers to Edna’s will be word of mouth. Our primary competitor, Urban
Outfitters, is dominantly sold through word of mouth, catalogs, and through blogs. 77 We do not see the presence of advertisements in the form of magazines,
celebrity citing, or in television. Edna’s would like to have that kind of consumer
interest. Our merchandise will be seen and talked about enough to stir interest in
anyone who sees and wears it.
Edna’s would like to be a community known boutique. We want our customers to
know that we are exclusively in their city and sell items that can only be bought at
Edna’s. This will hopefully create a sense of pride in Austinians and make them
feel inclusive. However, until we can create that kind of consumer loyalty and
interest Edna’s will advertise with the local media, and grow to become a store
which can advertise through blog writing, catalogs, and word of mouth. The
mediums used such as, The Austin Chronicles, Austin Business Journal, Austin 360,
Austin Monthly, The Daily Texan, and Austin is burning, will have an article to
identify the existence of Edna’s. The Daily Texan is a newsletter made by the
students of the University of Texas.78 Edna’s will be located on Guadalupe Street,
which is the avenue directly associated with UT students. Our primary consumers
will be found in this place. So this will be a very important part of our advertising.
Another spot Edna’s will keep as a primary advertising venue will be Austin 360
and the radio station 96.7 and 98.1. Many people that are planning to visit Texas
will want to see our beautiful capitol.79 We want to provide tourists with as much
information as possible. Although our primary consumers do not entail tourists, we
know that anyone looking to stay in Austin, Texas, will listen to our popular
country music and look up internet sites to assist them while in Austin.
77 http://www.urbanoutfitters.com/urban/index.jsp78 http://www.dailytexanonline.com/ 79 http://www.austin360.com/blogs/content/shared-gen/blogs/austin/outandabout/index.html
Direct Marketing Strategy
Direct marketing will be more prominent after a clientele is made. For the time
being we will continue to market our products through flyer advertisements when
promotions are being offered, and when we are having a sale that we would like
everyone to know about.
Public Relations
Edna’s will learn what is important to their customers. We will try our best to
attend any events that will help us spread our name out and to better assist our
consumer. Edna’s will be closed on major holidays.
Personal Selling
Edna’s will be a place where anyone and everyone will be able to shop
comfortably. We will provide our sales associates with the knowledge necessary to
cater to the needs of our consumers. Our primary customers will be around the
age of 18-24 which fall into a group of people born in the Y Generation. We find
that this fact will help us understand our customers as multi-taskers, technology
savvy, and product knowledgeable80. This is why our sales associates will be our
consumers as well. They will be familiar with the product because they own it
themselves. We will allow our staff members a great discount, which will
encourage purchasing at Edna’s.
We want to provide an environment where our staff members feel just as important
as our consumers. Our sales associates will only sell as much as they want to. If
they do not like the area which they work in, Edna’s cannot expect to reach its
highest potential in sales or advertising: this is because our primary form of
advertising is word of mouth. So to maintain a great work environment we will
ensure a strong managing staff. These managers will be designated by the owner.
All managers will take care of customers and meet their needs whatever it may be.
A strong staff will create a strong and comfortable environment. We know that
Edna’s will build a clientele list within the next year. Being a client of Edna’s will
come with many benefits, which will draw consumers to sign up. All staff members
80 Yan, Sophia. “Understanding Generation Y”. 2006. The OBERLIN REVIEW. http://www.oberlin.edu/stupub/ocreview/2006/12/08/features/Understanding_Generation_Y.html
will be knowledgeable of all happenings in store, and will be portray a professional
attitude at all times.
Internet Strategy and Means
The internet is a very important entertainment for many college students. It is not
only a means of entertainment, but it is a way of life. You can find anything and
everything online. According to a statistics report made in 2009, there are a
growing number of older people using facebook. However, the number of college
students using facebook is still unbeat81. We see a 40.8% of facebook users are
aged 18-24, which is the demographic that we are targeting.
Data Source: http://www.istrategylabs.co 1
Advertising has become a huge part of Facebook. This is because there are so
many consumers of all demographics online. It is the perfect place to let them
know that something is hip and happening. Edna’s will use this internet site to
81 http://www.istrategylabs.com/2009/01/2009-facebook-demographics-and-statistics-report-276-growth-in-35-54-year-old-users/
advertise our retail store. We will let them know of the promotions, directions to
Edna’s, and a description as to what we sell. We are hoping to think of ways to
make more sales by promoting friends tell friends to receive discounts.
Twitter is another form of internet communication, but we find that twitter can be
harmful to our business during the first year. We would like to establish our stores
image before we have anyone giving immediate opinion on our merchandise. For
the time being, we will use Facebook as our primary medium through the first year
of business.
Tactical Plan
Gantt Chart 12 month prior to Opening
We have made a Gantt Chart to clearly identify the process before Edna’s will be
opening up for the public. Edna’s will set a time limit of 12 months to prepare for
the debut of our first retail business. In our Gantt chart we will identify the time it
will take for our plans to be approved, loans, building lease agreement, interior
design, contacting vendors, ordering displays, hire associates, and advertising. We
have estimated the amount of time that each one of these projects will take and
will attempt to stay on track.
June
Finish plan and receive approval.
o Know the specified loan amount
o Have demographic and location set
July
Plan completely approved
Visit bank for loan consultation
Begin looking at leasing buildings in Guadalupe Street location
August
Loans completely approved
Location set and ready for renovation
Leasing of building
o Begin paper work
o Begin analysis of store and what is needed.
September
Building lease approved
Interior design ideas formulated
Interior design begins
o Visit furniture stores
o Consult with interior designer/architect on plans
October
Continue interior designing
Exterior design begins
November
Continue interior design/renovation
Continue exterior design/renovation
Contact vendors for merchandise
Begin choosing merchandise
o In state buying
o Out of state buying
Advertising begins
December
Finish interior design
Finish Exterior design
o Cover Exterior until open day.
Cover with white/black with sign telling of Edna’s opening day.
Buy merchandise
o Order all merchandise with agreement of 5/10 net 30.
Begin looking to hire
o Post signs and put onto craigslist.
Advertising Cont.
o Austinian Times
o The Daily Texan
January
Finish negotiation with vendors
Continue purchasing merchandise
o Inventory delivery begins
Start hiring
o Sales associate
o Managers
o Buyers
o Cashiers
Advertising Cont.
o Austin Chronicles
o Austin is burning
February
Finish all buying of Merchandise
Begin training employees
Inventory deliveries throughout month
Advertising cont.
o Facebook
o Austin 360
March
Finish Training employees
o Begin arranging inventory
Advertising cont.
o The Daily Texan
Inventory deliveries throughout the month
April
Advertising Cont.
o Facebook
o The Daily Texan
May
Advertising Cont.
GRAND OPENING
o May 23, 2012
Gantt Chart 12 month post Opening
Edna’s will not only have a Gantt chart that plans 12 months before opening, but
also a chart that identifies goals that we accomplish post opening. Some goals that
we will set for the next 12 months will include; an advertising efficiency test, plan
out our 2 sale dates, provide a sales associate workshop mid-year, buying
merchandise out of state and in state 3 months prior to season, and make a client
list by the end of the year.
June
Continuation of Advertisingo Facebook Advertising will be done throughout the yearo Austin chronicles will be done 1 month after opening dayo The Daily Texan will advertise for 2 months right after our grand
opening We will do it twice for The Daily Texan because our primary
target market will be reading these papers. 1st promo sale preparations
o Markdowns for opening o 25-35% off with promo tickets
Continue to look for potential vendors or good buys
July
Continuation of Advertisingo Facebooko Daily Texano Austin Journal ad will be 2 months after. We want them to write about
how successful they think our business will be and about our unique opening day.
1st promo sale Continue to look for potential vendors or good buys
August
Cont. Advertisingo Facebook
Cont. to look for potential vendors or good buys
September
Cont. Advertisingo Facebook
Begin traveling to buy merchandiseo Travel to korea
Buy merchandise Sales Workshop begins (manager)
o Education for sale repso How to better relate to you customer
October
Cont. Advertisingo Facebook
Sales workshopo Sale associates testing for awards
Buying merchandise for Spring 2011o Finishing buying in Koreao Travel back to the states
Begin in state buying California
November
Cont. Advertisingo Facebook
Sale workshopo Awards given out
Gift cards Shopping sprees
Buyingo In state buying
Texas Final all buying
December
Cont. Advertisingo Facebooko Austin Chronicleso The Daily Texan
2nd Promo Saleo Mark downs taken o 25%-15%
Spring buying complete
January
Cont. Advertisingo Facebook
2nd Promo Sale
February
Cont. Advertisingo Facebook
March
Cont. Advertisingo Facebook
Traveling for buying begins for Fall 2012o Buying in korea
April
Cont. Advertisingo Facebook
Traveling back to stateso Buying in states
Texas California
May
Cont. Advertisingo Facebook
Finish Fall 2012 buying
Opening Day Event
Edna’s will open its doors on May 5, 2011. We have planned a special day for
those that are interested in coming to our opening event. Advertisements
according to our Gantt chart plan will start during the month of November. This
will allow potential consumers enough time to identify a new retail business
opening up in the Downtown area. We will promptly advertise via the Austinian
Times, Texan Daily, Austin monthly, Austin 360, and blogs such as Austin is
burning.
Our advertisements will announce the opening day features and why everyone
should attend. Edna’s will be a retail store that makes her feel feminine, beautiful,
and whimsical. We want all our consumers and guests to feel like a lady and
treated like during our opening event. On opening day we will be sufficiently
staffed and provide each visitor who purchases an item/items over $35 a free sun
parasol. They will have floral designs in shades of pink, yellow, and orange. Sun
parasols were used as sun shields by royals and people of high stature. 82 Recently
it has come back into fashion as an accessory; women are realizing that the sun’s
rays are much more harmful than they had expected. Edna’s will accommodate
each lady who purchases item/items over $35, a sun parasol to protect them
against the wrath of the Texas sun. We have also decided to provide refreshments
to all that enter Edna’s; this will cause a stir in front of our business and create
more foot traffic. We are sure that once our consumers take a look at what we have
to offer, they will want to come in.
Our opening day set up will be elaborate. Edna’s will put much effort into
providing a grand opening. The entire area will be lit up with round pink balloons,
so that it cannot be missed. At the front of our store we will have the promotional
cards explaining the procedure of purchasing $35 worth of items to receive a sun
parasol. This front area will also be the designated spot for the placement of our
refreshments. We will carry Pellegrino in a orange and lemon flavor. We have
chosen this drink because it is not as generic and cheap looking as regular sodas.
Lastly, we will have our sales associates placed at the front of the house, in house,
and back of the house for a smooth shopping experience for all. Edna’s does not
want to be remembered as the store that was understaffed or having a lack of
customer service.
Reach/Frequency/Advertising budget
82 http://www.sarasparasols.com/parasol_history.html
Medium Reach Frequency Type/Size Monthl
y Cost
Yearly
Cost
Faceboo
k83
1/month Pop Up $.46/
click
$500
$6000
Austin
Chronicl
es84
443,000 1/6
months
Tabloid
Ad
$2,000 $4,000
Austin
Business
Journal85
77% of
people in
managem
ent
positions
Once Newspape
r, 1/3
page
vertical
$2,362 $2,362
The
Daily
Texan86
48,000/
day
1/6
months
Newspape
r Ad ¼
page
$300 $600
Austin
Monthl
y87
130,000 once ¼ page $800 $800
Austin
36088
250,000 Througho
ut year
In
newspape
r 3 lines
with
online Ad
42
days/$6
0
$540
Austin is
Burnin
g89
$100 1/6
months
Online
blog
$100 $100
83 http://www.facebook.com/advertising/84 http://www.austinchronicle.com/85 http://www.bizjournalsmediakit.com/austin/Readership.html86 http://www.dailytexanonline.com/87 http://www.austinmonthly.com/advertise.php88 http://www.austin360.com/89 http://austinisburning.blogspot.com/
Total Monthly $6902
Totally Yearly $14,402
Pricing Plan
Pricing Objectives & Strategy
What will Edna’s be known as after entering the Austin group of boutiques and
stores? Edna’s main objective for this first year will be to increase sales volume
and gain customer satisfaction. We believe that through premium pricing and
geographical pricing, we will be able to accomplish our goals for 2011.
As a brand new store Edna’s wants to be accepted by the demographic that they
are selling to. We want to do everything possible to make the shopping experience
memorable and addictive to our consumers. This would result in an increase in
sales volume which will help us meet our goals. To accomplish these goals we will
need a strategy that grabs the attention of our consumers. Edna’s strategy will be
to sell products that no one else will sell and to price the items according to needs
of that area. We will be located in Downtown Austin on Guadalupe street. This is
the main street for the University of Texas, where over 50,000 students go through
to attend classes and spend their leisure time.90 We want to be able to cater to the
students that attend the University of Texas. If statistics hold true, college students
do not have a lot of money to spend. This is why we have decided to conduct a sale
twice a year and create promotions creating an idea of great deals. Our competitor
is located on the same street and we will make sure to drop in from time to time to
see their style of pricing.
We hope that our strategies of pricing will assist us in achieving our objectives,
and to grow as a small business. Edna’s biggest goal during the first year of 90 Baird, David, Eric Peterson, and Neil Schlecht.Frommer. Frommers, 2007. Print.
operation will be to be appealing to the market that we have targeted. Once we
reach that point, we believe that everything will slowly fall into place.
Markup/Markdown plans
Edna’s will plan on marking up their merchandise 400-500% the original
wholesale price. Our boutique will not be able to survive if we were to go through
markdowns at low mark ups percentages. However, since we have high markups,
we will also have some great sales two times a year. During these sales we will
deliver products that are 35% OFF at first mark down, 25% OFF at second
markdown, and 15% OFF at third markdown. All of our products will be marked
down around the same time.
Product Class Markup Markdown
Dresses 400-500% 1st MD= 35%
2nd MD= 25%
3rd MD=15%
Skirts 400-500%
Dress Tops 400-500%
Accessories 500-600%
Shoes 400-500%
Edna’s accessories will be marked up differently than our apparel. We will markup
accessories 500-600%. This will not be so questionable due to the fact that most of
our accessories will be coming from Korea. This will assist greatly, in the payments
that are needed off hand at the time of buying. Our markdowns for accessories will
be done at around the same time as our apparel; 35%, 25%, and 15% OFF.
Our markups will be determined during and discussed after purchasing. The
markdown for Edna’s will be greatly awaited, but will be done according to the
selling of merchandise. Our markdowns done two times a year will be a
promotional event. Where Edna’s will give a certain percent off at your next
purchase, or purchase on the day of, if a certain amount is bought. These
promotional markdowns will follow the seasonal changes, and will take place
during the receiving of our new season’s products.
Stock Turnover
We will find our stock turnover by dividing yearly sales by the inventory. Our range
will fall between 3.8-4.2. This range indicates that Edna’s will purchase almost all
products at least 4 times a year.
Terms of Payment
Edna’s will be working largely with small wholesales located in Korea, California,
and online vendors. Many of our payments for Korea or any foreign country will be
paid off as soon as the merchandise are bought. State vendors will be discussed
and agreed upon after meeting.
Our good pay strategy will enable us to take the discounts offered by our vendors.
We hope that this will assist us in being competitive in pricing and profitable as we
increase gross margin with lower cost of goods. Lastly, we want to create a good
relationship with our vendors to receive items quicker and more efficiently.
Terms of payment will be determined by the vendor and Edna’s. Most of our terms
of payment will include a 5/10 net 30. This will mean that if we pay in 10 days we
will receive a 5% discount and the invoice must be paid in 30 days. Edna’s will use
this term due to being a small boutique that buys in small quantities. We will also
be doing frequent business in the first year to get a good feel for what our
customers like and what they do not.
Distribution Plans
Off Site Sales
Edna’s will distribute merchandise to their clients in a variety of ways. We do not
see Edna’s taking on this task until the second year after opening; however, we
find that it is important to identify where we want to be and how we will do this.
After opening our store on Guadalupe Street we intend to begin building our client
list and identifying which is the best for our target market.
We want to provide our customers with satisfaction and alternative venues of
purchasing Edna’s merchandise if necessary. The first form of distribution will be
via telephone. Our sales group will view a phone call just as important as a
customer who enters the store. Due to the cost of creating a catalog or maintaining
an internet site, we will keep our selling primarily by phone and orders in store.
Edna’s will keep record of the products that we have designated to be re-ordered,
and notify customers of the availability of these products if asked. We hope that
later in business, once we have created enough foot traffic and produced a high
volume of sales, we will initiate the spreading of distribution and take the next step
according to our progress this fiscal year.
E-Commerce or E-business has grown tremendously over the last 8 years.91 The
internet has begun to be found in places that are more easily accessed by anyone
has a mobile phone. As the internet becomes more accessible through the phone or
iPods, we see the growth of M-commerce. This form of selling is mainly through
the mobile phone. 92
Data Source: http://www.trulium.com/User 1
Although selling through M-commerce is becoming more prevalent, Edna’s will
not be using this form of selling until we have become more established. Since we
are a new business, we must be cautious of all the variables that could make us
better, or more vulnerable.
Forms of payment
91 http://www.witiger.com/ecommerce/ecommercestatistics.htm92 http://www.wisegeek.com/what-is-m-commerce.htm
Edna’s will be taking payments of MasterCard, Visa, checks, and cash. We want to accommodate any
customer who prefers different forms of payment. It would be a great loss if we could not take payments
at our inconvenience. We have identified that many of our consumers will range between the age of 18-
30. Many of our consumers will be students who do not want to spend more money than they have to. We
believe that the master and visa card will be more sought out means of finance, due to the lack of an
annual fee to our consumers; whereas Discover and AMEX have higher fees for both the seller and
buyer.93 This will be the main reason why we feel that it is unnecessary for our retail store to take AMEX
or Discover. In addition, Discover’s policies of returns could be detrimental for our business.
Checks will always be doubled checked by the banks they represent. Edna’s clients will be young, so we
do not want to take chances when it comes to payments. We will train all our sales associates to be polite
when attempting to guarantee a payment at all times.
Shipping/Pricing Charts
Below is a map detailing the amount of time it will take to deliver through UPS in North America.
Edna’s will only deliver their merchandise within the 51 states and think about expanding only after we
have completed the 3rd year in business. We have researched the prices for shipping, and have concluded
that many of our sales will average out to be 5-10 lbs. These weights will determine the amount shipping
93http://www.creditcards.com/credit-card-news/help/differences-visa-mastercard-amex-express-discover-6000.php
Graph Source: http://www.google.com/imgr 1
will cost for each customer. The price 5-10lbs will range around 5 to 51 dollars.94 Although 51 dollars
seems like a large amount, it will readily be used. Many of our clients will be domestic, and will range
around 5 to 10 dollars for shipping.
Zones 102 103 104 105 106 107 108 124†
Image Source: http://www.ups.com/maps/re 1
Sources
Books
1. Barenblat, Rachel. Texas, the Lone Star State . Gareth Stevens, 2002. Print.2. Fodor. Fodors Travel Pubns, 2008. Print.3. Guide, Mobil. Mobil Travel Guide 2008 Texas . Mobil Travel Guide, 2008.
94 http://www.ups.com/media/en/daily_rates.pdf
Print.4. Wills, Charles. A Historical Album of Texas . Millbrook Pr, 1995. Print.5. Cohen, David, Rick Smolan, and DK Publishing. Texas 24/7. Dk Pub, 2004.
6. Texas. 1st. New York: Random House Ltd., 2008. 107-108. Print.
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b=1272254400^3225501&s=sbc:23. austin.cbunited.com/relocate/community.asp4. austinchamber.com/DoBusiness/GreaterAustinProfile/population.html#table15. city-data.com/housing/houses-Austin-Texas.html6. cnn.com/2010/US/04/30/arizona.shakira.immigration/index.html7. co.travis.tx.us/county_attorney/underage_drinking_pgm/8. economics.about.com/cs/studentresources/f/business_cycle.htm9. entrepreneur.com/tradejournals/article/159827361.html10. getdegrees.com/distancedaily/lifestyles/asian-american-community-takes-fashion-world-
by-storm/11. Goldman, David. "G-20 summit:6 countriesin recovery." CNN (2010): n. pag.
Web. 2 May 2010. <http://money.cnn.com/galleries/2009/news/0909/gallery.g_20_summit/index.html>.
12. istrategylabs.com/2009/01/2009-facebook-demographics-and-statistics-report-276-growth-in-35-54-year-old-users/
13. jobbankusa.com/jobs/texas_tx/job_employment_largest_employers.html14. money.cnn.com/galleries/2009/news/0909/gallery.g_20_summit/index.html15. money.cnn.com/2010/04/14/news/economy/retail_sales_March/index.htm16. news8austin.com/content/top_stories/271656/city-launches-online-tool-to-gain-public-
perspective17. oberlin.edu/stupub/ocreview/2006/12/08/features/Understanding_Generation_Y.html18. quickfacts.census.gov/qfd/states/48000.html19. recenter.tamu.edu/pdf/1862.pdf20. rssweather.com/climate/Texas/Austin%20City/21. Texas State Data Center, 2008 Population Projections22. texasahead.org/economy/outlook.html 23. traffic.com/Austin-Traffic/Austin-Traffic-Map.html24. txcn.com/news/25. window.state.tx.us/finances/26. zipskinny.com
Vendors1. deuxlux.com/2. fashion4us.com/wholesale-fashion.action3. fashiondistrict.org/Search.html?tag=Handbags
4. yocowholesale.com/wholesale-womens-dress-j1254-pink-p-2901.htmlNewspaper
1. austin.bizjournals.com/austin/2. austinchronicle.com/3. austin360.com
Magazines 1. austinist.com/arts_and_entert/2010/05/2. austinmonthly.com/
Important1. ci.austin.tx.us/sbdp/retail-local-business.htm
Presentation Board1. http://www.utexas.edu/opa/pubs/facts/overview.php
PowerPoint Presentation 1. entrepreneur.com/tradejournals/article/159827361.html2. getdegrees.com/distancedaily/lifestyles/asian-american-community-takes-fashion-world-
by-storm/3. Googleimages.com4. Googlemaps.com5. Zipskinny
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