Business Plan: Dazzling Diva Accessory Store Essay Example
Business Plan: Dazzling Diva Accessory Store Essay Example

Business Plan: Dazzling Diva Accessory Store Essay Example

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  • Pages: 13 (3531 words)
  • Published: November 27, 2018
  • Type: Case Study
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Introduction

The business registered in Austin County will be named Dazzling Diva retail stores and aims to establish a distinct identity. The store will be situated at 5000 Mission Oaks Boulevard, East Oak Hill in Austin, Texas. This city serves as the capital and is located within Travis County, Texas State.

With a population of over 850,000, this city is ranked as the 13th most populous in the U.S. and fourth in Texas. The discussed store will occupy an area of about 900 square feet and offer amenities including a restroom, two dressing rooms, and parking space. Additionally, there are various nearby establishments such as flower shops, Burger King, restaurants, and cosmetic shops that attract a diverse customer base throughout the day and even outside regular business hours.

Dazzling Diva is a company founded by three business management students from the University of

...

Texas: Joan, Michael, and Smith. The company focuses on selling women's accessories including hats, jewelry, scarfs, purses, and shoes. These products are obtained from both local and international markets. In addition to selling at local markets, Dazzling Diva also presents its items at fashion shows and festivals. Moreover, the company's sales representatives actively participate in promoting and distributing these accessories.

The company will begin as a partnership and then transition into a limited liability company in its third year of operation. Its main goal is to provide the community with high-quality products and services. Dazzling Diva's primary focus is on improving customers' appearance by offering affordable and quality accessories to the community. Once the business is established, community members will have the chance to buy goods at retail prices, making it easier to obtain affordable and

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quality accessories.

The clothing industry in the United States is highly profitable, with a retail markup ranging from 45-65%. It is also experiencing rapid growth as consumers constantly seek unique accessories.

Mission, Vision, and Strategy: Dazzling Diva's retail business aims to increase the owners' wealth through business profits while providing quality products for women in Austin. They prioritize customer satisfaction by offering exceptional service and strive to improve employee welfare through fair compensation and rewards. Their ultimate goal is to benefit customers, the community, employees, suppliers, and the country's economy through their products and services.

  • Mission: Provide local customers with affordable yet high-quality products.
  • Vision: Become Texas' leading provider of top-notch female accessories in surrounding areas.

Objectives:
- Achieve an average of ten repeat purchases within two years of operation.
- Increase market share by 15% annually starting from the second year.
- Offer affordable and quality accessories to the community.
- Cultivate customer relationships and gain referrals from five new clients each year.

Record a profit of 10 percent and above from year 2 of business.
Benefits
Implementing this project will benefit several stakeholders, namely business owners, community, employees, customers, vendors or suppliers of female accessories, and the country’s economy. Business owners receive sufficient dividends on their investment through accumulated operational profits, which will be utilized for their financial needs in the current economic hardships. The business will generate employment opportunities for various individuals who will be responsible for managing the store, including sales representatives, full-time shop attendants, accountants, and managers. Additionally, it will support the market with a wide range of suppliers in the clothing and footwear industry.

These include middlemen and manufacturers

in the textile and footwear industries. Customers can expect to find quality and affordable products at Dazzling Diva stores, which will enhance their appearance with unique clothing and accessories. The community will enjoy the benefits of increased accessibility to goods that were previously unavailable, as well as new job opportunities and charitable contributions from the company. In addition, the government will generate revenue through taxation starting from the second year of business.

Management Structure

The founders have decided that Joan will serve as the CEO of the company during its initial years of operation, gradually transitioning into a private limited liability company.

Mr. Michael has been appointed as the financial manager and Smith will oversee operations. Joan, who owns the majority shares, holds a 40% stake in the company, while Smith and Michael each have a 30% share. In the third year of business operation, when the company becomes a limited liability corporation, new management will be recruited through a competitive process to fulfill legal requirements.

The company is appointing three new board members. Joan, who holds a Master's degree in Business Administration, is pursuing enterprise management studies at Texas University while working in the hospitality industry. Michael, an accountant at a local retail store company, is also a student and has expertise with diverse accounting software. Conversely, Smith is studying entrepreneurship management and possesses extensive experience in operating small and medium-scale retail businesses.

The retail business will have skilled sales personnel, a proficient cashier, and additional staff for tasks such as office cleaning and maintenance. The three founding members of the company are responsible for strategic planning to achieve the company's objectives.

Planning in Dazzling Diva involves setting goals and

objectives for the company and making decisions on how to achieve them. The owners will also determine the resources needed, such as finance, equipment, human resources, and technology. Planning activities at Dazzling Diva include sales promotion by shop attendants and sales representatives, inventory management by cashiers and finance managers, and community activities such as educational support and environmental improvement.

Organizing

Dazzling Diva's organizing activities involve directing, motivating, and communicating with employees, individuals, and teams to ensure effective task completion.

The process of communication in Dazzling Diva is crucial for its effectiveness, encompassing language clarity, communication channel, and timing. The organization's three leaders must lead by example, being organized and embodying the values, mission, and vision. This sets a motivating tone for employees to increase productivity and feel empowered to achieve their goals. Communication plays a pivotal role within Dazzling Diva by transmitting top managers' mission, vision, values, goals, and responsibilities to lower levels. It also addresses conflicts and issues within the organization. To facilitate communication, Dazzling Diva organizes employees into teams and uses memos, e-mails, and meetings to inform them about tasks and responsibilities (Coulter, 2005).


Leading

In Dazzling Diva, leaders have the ability to influence their followers and guide them in performing tasks within the organization. This includes defining responsibilities, organizing work units, allocating resources, and creating a conducive work environment. The CEO and two other founding members possess the necessary qualities and skills to inspire employees to approach their assigned tasks with a positive attitude. Management activities in Dazzling Diva involve assigning responsibilities, distributing resources, and delegating tasks to employees at different levels of the hierarchy. These actions aim to drive the company

towards achieving its vision, mission, and goals of portfolio growth, productivity, and profitability.

Controlling

Controlling involves overseeing the performance of employees in Dazzling Diva.

The aim of "Dazzling Diva" is to receive feedback on employee progress, identify performance problems, and develop an action plan to address any issues. Control measures will ensure that operations align with the plan and budget. Quarterly performance assessments will be conducted to provide feedback on employees' progress towards set goals and monitor overall company performance. Additional controls include using an inventory tracking system to monitor stock availability, arrival times, and sales in real-time. Point of sale software will be used to manage inventory levels, generate current sales reports, and restock every two months.

Functional and Operational Analysis

The business is expected to commence operations during the Christmas season, a period known for high sales in the clothing and accessory industry. The store's operating hours will be from 8 AM to 9 PM on weekdays and Saturdays. It will provide personalized consultation services to customers, facilitated by two assistants, one cashier, and three sales representatives.

Michael, one of the founders, is currently in his final year of an accounting undergraduate program and possesses extensive knowledge of accounting software. Consequently, he will be responsible for managing the company's accounting records in its initial years.

Joan and Smith, the other two founders, have managerial experience and are currently enrolled in business classes. They are technically qualified to manage the business. The store will have sufficient inventory and prioritize excellent customer service to enhance the shopping experience. The business is projected to generate a positive cash flow within two years of operation. An inventory tracking system

will be implemented to monitor stock orders, arrival times, and sales for efficient stock planning.

Point of sale software is utilized for inventory control, registering each sale immediately. This enables real-time tracking of sales, costs, and profits based on sales representative and product category, on a daily, monthly, and yearly basis. Restocking occurs every two months, with ordering and delivery each requiring one week.

Cultural Issues Organizational culture and values have an impact on employee performance and behavior.

Dazzling Diva’s management will incorporate the principles of integrity, honesty, efficiency, commitment, and respect into its employees. These principles, when combined with individuals’ positive beliefs and environmental factors, will shape the organizational culture of the company. It is well-known that organizational culture and values have a significant impact on employee performance and their fulfillment of organizational duties. During the establishment of a new company, managers will make efforts to foster a culture that inspires its employees to excel. The managers at Dazzling Diva will regularly analyze the organizational culture to evaluate its influence on both employee performance and overall organizational success.

Efforts will be made to promote an inclusive culture that embraces workplace diversity. The three founders have the expertise and abilities to foster a culture that supports employee performance, facilitates the implementation of organizational strategies, and encourages teamwork.

Financial Planning and Analysis

The financial plan for "Dazzling Diva" aims to achieve various objectives: maintaining moderate financial growth with consistent cash flow, ensuring marketing expenses stay below 20% of sales, utilizing remaining profits for business expansion, and reducing overhead costs by 6% annually.

The goal is to achieve profitability by the end of the third year and strive for a financial growth

rate of over 10% within three years.

In order to evaluate the competition, a competitive analysis is conducted. Currently, there are no accessory stores directly competing within a 20km radius of the chosen Dazzling Diva store location. The clothing industry's retail profit ranges from 45% to 65%, indicating its viability and profitability. It's important to note that this sector is one of the most exciting and fastest-growing in the country as consumers continually search for unique clothing accessories. Additionally, it's worth mentioning that in the U.S., the retail sector is second only to the service industry in terms of size.

The clothing industry, with a revenue exceeding $2.34 trillion and a growth rate of approximately 5%, consists mainly of small and medium-sized businesses. In recent years, there have been noticeable changes in consumer preferences for apparel, requiring the adoption of new strategies to cater to the evolving demographics and purchasing habits of modern customers. This market segment faces competition from both major retail chains like Wal-Mart and local boutiques. Retail giants such as Wal-Mart enjoy significant cost advantages due to their extensive operations and well-established brand reputation (Kotler, 2003).

Competitors utilize various point of sale promotion strategies, such as flyers, animated displays, banners, streamers, pennants, and window displays, in major retail stores. Dazzling Diva's competitive advantage stems from its prime location within a wealthy community in a densely populated city. This location ensures a consistent influx of foot traffic throughout business hours and even after, due to the presence of neighboring establishments like flower shops, Burger King, restaurants, and cosmetic shops.

Segmenting, Targeting, and Positioning Strategies The target market for Dazzling Diva products is women, both young and

adult, aged between 16 and 60 years, who are employed or own a business, with disposable income of more than $10,000 per annum residing within Austin, Texas. Other groups forming secondary customers include men purchasing accessories for their wives and girlfriends. The market will be segmented into three main groups: teenagers, working professionals, and housewives.

Teenagers are fixated on fashion and flashy accessories, finding joy and status in owning them. They will buy trendy accessories and jewelry for occasions like birthdays and weddings, both for themselves and as gifts for friends. Since their income comes from parents and guardians, they are able to afford the newest items in stores without breaking the bank.

The target market for the store includes working professionals, employed young and adult women, who earn more than $30,000 annually and have a high purchasing power. This group is interested in purchasing accessories like scarfs, jewelry, and purses to enhance their appearance. They are also interested in footwear and enjoy having a variety of shoe options to match different outfits. Another segment of the target market is housewives, who have enough disposable income from their working husbands and ample time for shopping.

They are passionate about fashion, spending a significant amount of time shopping for clothing, footwear, and jewelry. Dazzling Diva will stand out as a premier destination for selling distinctive and trendy accessories to the local residents of Austin and its surrounding areas. Unlike its competitors who focus on selling clothing and accessories, Dazzling Diva will specialize in offering a fashionable appearance. To achieve this positioning, Dazzling Diva will provide a broad range of unique and high-quality accessories in Austin and its environs, catering

to fashion-conscious customers. This competitive advantage aims to understand and meet the specific needs and desires of this particular market segment.

It will also offer a wide range of accessories including hats, jewelry, scarves, footwear, and purses, as well as provide pleasant consultation services to clients.

Marketing Strategy

The marketing strategy will focus on raising awareness about the store and its products to potential consumers in Austin, establishing a customer base, and fostering customer loyalty and referrals. The company plans to utilize targeted advertisements and promotional materials to reach potential customers. Additionally, the company will engage in direct sales at local markets, as well as participate in special events such as festivals, fashion shows, concerts, ceremonies, bazaars, conferences, conventions, grand opening events, sports shows, trade shows, and more. These special events will not only generate revenue through direct sales but also increase awareness of the company and its products, promote goodwill within the community, and enhance its image and reputation.

The tactics for building brand awareness will involve the use of outdoor billboards, the company website, wall posters, media awareness, and banners. Other methods include repeated referrals, direct marketing, branded employees' uniforms, and the distinctive style of the store. The company will also participate in brand-related contests such as fashion and singing contests. They will utilize word-of-mouth marketing, social media, the company website, and corporate sponsorship of environmental causes (Daye, 2009). In addition, advertising will be placed in local newspapers, fashion sections of magazines popular among women, as well as local TV and radio stations as part of the marketing strategy. Public Relation activities and corporate social responsibility (CSR) will play a role in establishing the brand's name and

reputation.

The company's CSR activities will encompass environmental conservation, sponsorship of community events, like fashion contests, and charitable donations to local causes. They will also establish strategic partnerships with retail stores and offer complimentary accessories, such as women's clothing. This collaboration will allow them to combine their products, like wedding gowns with footwear or jewelry, and display them in the allied partners' stores. This will increase public awareness of the brand. Additionally, the possibility of collective advertisements and cost-sharing for advertisement expenses exists.

Competitive pricing will be offered to gain a larger market share in the clothing and fashion market. The company will sell their products in their stores, local markets, and special events. Customers will also have the option to order these accessories online and have them delivered for a reasonable fee.

Sales Forecast:

The sales forecast is a prediction of the company's future sales and financial performance. Sales are expected to increase gradually after the first year of operation as more customers become aware of Dazzling Diva store's products and services. In the future, the company plans to transition into a limited liability corporation.

The table below displays projected sales for the initial three years of business operation. Human Resources and Legal Environment are essential for the success of this business venture. At the beginning, the company will have a limited number of employees, allowing for their growth and development. The intention is to hire ambitious, talented, and knowledgeable salespeople. Human resource tactics will guarantee employee satisfaction and effective utilization of their skills in order to attain the organization's goals.

Appropriate reward systems will motivate employees to perform, so managers should create remuneration

packages based on the employees’ qualifications and performance. Managers should also provide a favorable working environment. In addition, the company should embrace workplace diversity and comply with labor laws. Furthermore, managers should conduct an orientation for new employees to inform them about the company, colleagues, and their duties and responsibilities to avoid task duplication. Training programs should be designed to enhance employee competence and keep them updated on new technologies. Lastly, employees’ performance appraisal should be conducted quarterly to identify any issues or needs they may have.


Legal Factors

The organization is significantly affected by legal factors. These factors include labor laws, which prevent the leadership from assigning certain tasks to employees, such as working long hours or in harsh environments without proper protective uniforms. Additionally, taxation laws can limit the company's financial capacity. Ethical issues also play a role in influencing employee performance and participation in organizational tasks and activities. Dazzling Diva's managers, who are experienced, will ensure compliance with occupational health and safety laws in order to build trust with their employees.

Occupational health and safety regulations are to be enforced in the company, and all employees should have insurance coverage for workplace injuries.

Research and Statistical Analysis
Planning

In the initial stages of development, research was conducted to understand the behavior of potential customers in Austin, where the business operates. A survey was conducted and questionnaires were used to collect information from a randomly selected sample of customers. The purpose of the study was to gain insight into the purchasing behavior, income level, tastes, and preferences of targeted customers.

The study focused on female residents of Austin who had a high purchasing power. The

target population included both young and adult women. Stratified random sampling was utilized to select a study sample. The population was divided into three groups: working professionals, housewives, and teenagers. A sample size of 45 women, who represented the population, was chosen for the study. To collect primary data, closed-ended questionnaires were designed by a qualified statistician and divided into two parts.

The first part of the study collected demographic information from the respondents. The second section focused on research questions. Additional information was obtained from previous studies, peer-reviewed journals, and books on marketing and consumer behavior. Printed questionnaires were given to a sample of respondents by a team of field researchers. The questionnaires were explained to the respondents, who were asked to answer all the questions.

Data analysis will involve collecting and encoding the gathered data using Excel software. The software will also perform statistical analysis and generate graphs for interpretation.

The study uncovered important information about the potential customers of Dazzling Diva's accessories, which served as the foundation for business and marketing strategies. It identified three primary customer groups: working professionals, housewives, and teenagers, and also revealed their preferred products. This research provided valuable insights into the customers, which were essential for the development of this plan.


Ethical Factors


Dazzling Diva will prioritize providing consumers with quality products at fair prices, and will ensure that all terms of agreement are honored.

The company's goal is to offer high-quality products at a reasonable price while adhering to ethical standards. It is committed to being a responsible corporate citizen by promptly paying taxes and fulfilling its corporate social responsibilities to contribute to society. Additionally, the company ensures compliance with

the law and accounting standards by regularly reporting its financial statements.

Regardless of their nationality, the company will ensure fair trading practices and proper treatment of employees. A professional code of conduct will be developed and implemented for all employees to follow.
Conclusion
This detailed and realistic plan showcases the initial years of operation for Dazzling Diva Company. The company aims to improve the appearance of individuals within the community and is a small to medium-sized company. Its target customers are females in Austin and neighboring areas who currently travel long distances for accessories. The business plan focuses on the new company's profile, as well as its financial and marketing strategies.

The company has well-suited strategies, a viable industry, and adequate resources to start and propel it into a bright future. There is a high chance of success in the proposed market, but it heavily relies on the team's ability to attract and retain customers. Implementing this marketing plan will undoubtedly drive the organization forward, and the management is capable and willing to carry it out. There is no doubt that goals and objectives can be achieved, but it requires commitment from all employees.

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