Situational Analysis
» Jon Lomax is a serial entrepreneur who started the company in order to provide smokers with a healthier choice
» Currently our brand name is Monkey Vapes and we have loca-tions in Cielo Vista and Sunland Park Mall.
» The market at this moment is growing at a very rapid rate. It is estimated that revenues will reach 10 billion dollars in 2017
» We are at the perfect competition stage of the growth cy-cle. The vaporizing community is growing with festivals and events aimed at getting people together.
Competitors
» El Paso Vapor, Alice in VaporLand, Fit Vapes, Vapor Amor, Vape Shop, Star Mountain Vapor, Up-in-Vapor, Vape Lounge and Vapolocity.
» expand our native competitive: friendly knowledgeable staff,introducing new locations, selling exclusive equipment, creating social network buzz alongside sales promotions.
» Our indirect competitors at the moment are anything that can get people to quit smoking like nicotine patches, gums and lozenges.
» One advantage that vaporizers have over these traditional methods is that they come in different tastes and flavors. This provides a more pleasant way of reducing nicotine levels.
SWOT Analysis
» Strengths: most professional looking website out ofall the stores in El Paso. Will ship to all 50 states and doesn’t rely on El Paso sales. Two convenient locations.
» Weaknesses: search engine optimization is poor. When searching for El Paso vaping stores our website ends up on the third page of Google. The brand name and image is unap-pealing and geared towards children.
» » Opportunities: there is a lot of money to be made. Vaporiz-ers are legal in China and India.
» » Threats: consolidation. No long term studies showing how exactly vaporizing affects people’s health. A ruling could be issued that would make electronic cigarettes regulated at the same level of tobacco.
Research
» Face to Face interviews: We want to find out who is interest-ed in vaporizing and what type of characteristics they have in common.
» Written questionnaires: We will be using a simple random sample of an infinite population structure to give everyone an equal chance. We will provide an incentive by placing them in a raffle for free products.
» Build a database: We can find out where they live and what television programs and radio stations they enjoy so we can effectively place our financial resources in places that have the highest return on investment.
Marketing Objectives
» Rebranding: Our goals for this one year plan is to change the
brand name and image in a way that reflects the company’s
mission and makes us more attractive to the El Paso market-
place.
» Revenue Increase: We also want to increase sales by 50% by
introducing three more locations; one in the Outlet Shops,
one on Mesa Street and another one in Cielo Vista Mall.
Target Market
» We want to target Generation Y. More specifically, those be-
tween the ages of ages of 18-35.
» Both Male and Female
» those who follow current trends/up to date on new products
» those looking for an alternative to tobacco-based cigarettes
» Those seeking a healthier lifestyle.
» Those wanting to save money.*
Positioning
» We want current and incoming customers to perceive our
product as a healthier, more cost efficient alternative to tradi-
tional tobacco smoking.
» Vaporized cigarettes are almost certainly much safer than to-
bacco cigarettes, and to date there has been little real-world
evidence of harm from their use.
Product/Service
» Our brand name will be changed
from “Monkey Vapes” to “Pure Vap-
ing”.
» The new branding will be replaced
with a more contemporary look and
incorporate flat design.
» We provide tech support and barrista
type services with liquid flavors.
Price
» The Prices will remain the same. We want to raise revenue by
introducing new places.
» The pricing of our different products include the kits starting
at $34.99, a kit with 2 e-cigarettes for $59.99
» the Singles starting at $35/$40
» the Doubles start at $60/$65
» the highest priced single unit being a $100.
» The price will increase with the more features you add
Promotion
» Social media outlets: Facebook, Instagram, Tumblr, Pintrest...etc. in order to spread the word about our product.
» Host raffled events for free vaporizers and refills » increase traffic to our website while improving our search en-gine optimization
» reach out to the appropriate media outlets such as radio sta-tions to advertise our product
» we will use is to hand out flyers in places where there are like-ly to be traditional smokers: bars, hookah lounges etc....
» We will put in ads for local news papers and magazines: Fu-sion, El Paso Scene, City Beat, El Paso Times etc.
» online survey taking, » use email for once-a-month advertising » a customer referral program and a point system
Place
» Our direct manufacturer is in China where we receive our
electronic components and pre-made kits.
» Our liquid is manufactured in a lab certified by a pharmacist
in North Carolina.
» These products are then sent to our storage facility in Albu-
querque where everything is separated and distributed to our
different locations.
» Selling is done directly at the kiosks or via our website.
» Shipping procedures are done through UPS.
» We expect one more locations opening in Cielo Vista Mall, in
the Outlet shops, and a retail location on Mesa Street
» Another channnel of distribution will be the Internet
Action Programs
» Includes changing the appearance of primary store fronts, making changes to the website, enforcing identification poli-cy and also gaining exclusivity at local malls.
» Total cost associated with opening the new location are ap-proximately $15,000 including products, labor, and the set up the kiosk itself
» It will take one to two weeks to fully change the appearance of all three existing kiosks and this will cost the company about $3,000
» Pure Vaping will have secret shoppers to ensure employees a » checking age. It will cost $50 a month to hire secret shoppers. » For advertsing, radio commercials will cost $2000 a month for a span of six months then will be reduced to $1000 a month after.
» Ads will also be placed in local magazines such as Whats Up
publications and will cost $150 per month
» » We
Control Procedures
» Necessary for successful’operations
» Quarterly mplementations
» Marketing goals
» Evaluation and Drafting
Examples of Blue Printed Plans
» Customer Surveys
» Campaign Evaluations
» Focus Groups
Data Interpretation
» Statistics
» Central Limit Theorem
» Law of large numbers
» Sales Reports and financial Statements:
Quarterly report meetings
Operational Decision
» Purchasing and Control of inventory:’IMS’
» Promotional initiatives
» Market Overhaul
» ProductPlacement
Financials: Before & After
Monkey Vapes
Projected Profit & Loss Income Statement
12-‐Apr-‐14
Revenue
Monkey Cielo Vista Mall (Up) $45,000
Monkey Cielo Vista Mall (Down) 25,000
Monkey Sundland Park 20,000
Total Revenue $90,000
Cost of Sales
Monkey Cielo Vista Mall (Up) $10,000
Monkey Cielo Vista Mall (Down)
Monkey Sundland Park 15,000
Total Cost of Sales $25,000
Gross Margin $65,000
Pure Vape
Projected Profit & Loss Income Statement
12-‐Jun-‐14
Revenue
Pure Vape Cielo Vista Mall (Up) $55,000
Pure Vape Cielo Vista Mall (Down) 30,000
Pure Vape Sundland Park 20,000
New Pure Vape CanuMllo Outlet Shoppes 22,000
New Pure Vape Mesa St. 23,000
Total Revenue $150,000
Cost of Sales
Pure Vape Cielo Vista Mall (Up) $12,000
Pure Vape Cielo Vista Mall (Down) 16,000
Pure Vape Sundland Park 4,000
New Pure Vape CanuMllo Outlet Shoppes 6,000
New Pure Vape Mesa St. 5,000
Cost of Sales $43,000
Gross Margin $107,000
Salaries and Wages
Monkey Cielo Vista Mall (Up) $7,000
Monkey Cielo Vista Mall (Down) 6,000
Monkey Sundland Park 14,000
Total Salaries and Wages $27,000
OperaFng Expenses
Monkey Cielo Vista Mall (Up) Rent $2,800
Monkey Cielo Vista Mall (Down) Rent 2,800
Monkey Sundland Park Rent 1,000
WarranFes 1,500
Total OperaFng Expenses $8,100
Net Income $29,900
Salaries and Wages
Pure Vape Cielo Vista Mall (Up) $8,000
Pure Vape Cielo Vista Mall (Down) 7,000
Pure Vape Sundland Park 15,000
New Pure Vape CanuCllo Outlet Shoppes 5,000
New Pure Vape Mesa St. 6,000
Total Salaries and Wages $41,000
OperaCng Expenses
Pure Vape Cielo Vista Mall (Up) Rent $2,800
Pure Vape Cielo Vista Mall (Down) Rent 2,800
Pure Vape Sundland Park Rent 1,000
New Pure Vape CanuCllo Outlet Shoppes Rent 2,800
New Pure Vape Mesa St. Rent 2,000
WarranCes 1,500
Radio AdverCsing 2,000
Magazine AdverCsing 150
Total OperaCng Expenses $15,050
Net Income $50,950
Financials: Before & After