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Fred and Larry are determined to increase on their sales, flexibility, and the stability of their profits in the wine business. They want to maximize on exposure and ensure that they have as many people as possible visit their stores. They are also determined to ensure that they retain their customers and ensure that they come back to their store often. They are determined to ensure that they establish and are able to sustain a positive flow of cash within their first six months of their grand opening. Their medium range goals call for an establishment of a flow of cash from their operation, an all year round support from the local clientele to ensure they sustain the cash flow and the beginning of referrals from one customer to another due to the customers’ satisfaction they aim at.
They project their first, second and third year sales to be: $1000000, $1500000, and $2000000 respectively. They intend to increase their annual sales of between five to ten percent. By the time the business reaches its fifth year, they want to sell it at a profit of more than $1000000 or they might choose to continue growing their business and having fun with it. To do so, they have to come up with a short, medium, and long-range marketing and promotion plan. This is to ensure that they create awareness to their targeted customers and to attract as many of them as possible in their business to ensure that they increase on their sales and profits.
Fred and Larry Butts are scheduled to celebrate the grand opening of their new wine and specialty store in four months. After a year of choosing the best location for their new venture and completing their business plan and market research, they purchased a property in the lakes region of New York. They built their business structure of 7200 square foot retail showroom with a below ground wine and storage area for their inventory of similar dimensions with the showroom. Their retail room is elegant and eye-catching with wood floors, beautiful windows with bright succo walls with a large collection of various works of arts. The building is situated on a busy road with plenty room for parking and future expansions of the building if need be. Their market research reveals an even division of individuals in the upper middle class with a second seasonal home in the area and an all year round of retired individuals. Another population of white-collar individuals in the banking and insurance sectors and another in blue-collar individuals in the industry sectors are also in the area. The population in the region hits double between memorial and labor days due to the numerous summer cottages and camping grounds in the area. Tourism sector is the main industry in the area followed closely by manufacturing sector. The area has little direct competition with the wine and related products’ markets growing steadily. The only available wine in the area is in local convenience stores and supermarkets thus resulting into the need for them to tap into the wine market. They have to make several important decisions before their grand opening.
The main issues facing them are how they will be in a position to tap the wide market that is available in the area. How will they come up with the best marketing and promotion plan to ensure that they tap into the available market to increase on their sales?
Caliber of analysis
The area they are venturing in is faced with very little competition with the only wine available sold in local convenient stores and in supermarkets. Considering that they want to ensure that they attract and retain as many customers as possible, they have to come up with the best marketing and promotion strategies. First, the areas main industry is the tourism sector due to the availability of various camping grounds and cottages. In fact, between memorial and labor days, the population in the area hits over 100000. Thus, such is the period when their business can really thrive. They have to create awareness to such individuals about their availability to prevent them from buying their wine in supermarkets and convenient stores.
Considering that the customers’ preferences is the key to ensuring their satisfaction. It i.............
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