Clothing Retail Business Plan

Mahogany Western Wear

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Strategy and Implementation Summary

Mahogany Western Wear's goal is to provide apparel to the under served market of the African-American cowboy community.The major western apparel retailers have left a hole in this market by not providing a larger assortment of sizes.

Our intention is to gain 80% of this market share by focusing on our niche positioning, neighborhood location, brand that we sell, southern hospitality and special promotions.

5.1 Competitive Edge

• The Mahogany Shopper Card which allows the customer a 15% discount after ten purchases.
  
• Our location in the community will offer closer access to our target customer base.
  
• We will offer plus sizes for women and big and tall sizes for men. 

5.2 Marketing Strategy

Our marketing strategy will focus heavily on sales promotion, niche positioning in the market and customer service with loyalty and retention in sales.

• The marketing budget will not exceed 5% of our gross annual sales.
  
• Our promotions will always stay in tune with our company objectives and mission statement.

5.2.1 Pricing Strategy

Mahogany Western Wear will maintain a flexible pricing strategy. We base the product lines that we carry on their reputation and quality as western wear apparel. Most of our lines come with a suggested retail price that we will follow. We will also utilize the standard practice of keystoning as well.

5.2.2 Promotion Strategy

Mahogany Western Wear will follow an aggressive yet creative promotional plan. This will allow us to focus directly on our target customer while still being conservative with our advertising dollars.

• A press release kit will be sent to all major media outlets in Houston, TX highlighting the grand opening of the first African-American owned western wear apparel retailer in the city. This kit will include a press release, pictures of the interior space, color postcard/flyer, and a business card.
  
• 5,000 4x5 color flyers/postcards will be distributed throughout the city at local zydeco and cowboy dance halls and clubs, trailrides and rodeos.
  
• Spot radio advertisements on two local FM radio stations, KMJQ Majic 102 and KTSU 90.9.
  
• A direct mail program that will further focus on and target the top 50% customer base with special in-house sales and promotions.

5.2.3 Distribution Strategy

Our retail location will be the foundation of building our customer base. We will also manage a direct mail program that will focus on our top 50% customers spotlighting any in-house sales and promotions.

5.2.4 Marketing Programs

Our marketing programs will consist of the distribution of 5,000 color flyers two weeks prior to our grand opening event.

5.2.5 Positioning Statement

For the more full-bodied individual seeking western apparel, Mahogany Western Wear will offer name brand western wear in a larger assortment of styles and sizes that aren't always readily available in the mass western apparel retailers.

5.3 Sales Strategy

• We will utilize the Retail ICE POS software with every sales transaction. With each purchase the software will record and maintain in its database the customer's name, address and purchases. This information will be used with our direct mailing program to focus on our top 50% of customers.
  
• We will offer a 14 day return/exchange policy to build trust with our customers and maintain retention and loyalty.

5.3.1 Sales Forecast

The following table and chart give a highlight on forecasted sales. We expect sales to start off conservatively and increase extensively during the Christmas holiday shopping season and during the months of The Houston Livestock Show and Rodeo.

Mahogany Western Wear has planned for a rate of growth at 15% for the first year as we build name recognition and status in the community. In the second and third year we look to see an increase of revenue of 20% as we gain a larger percentage of the market share and increase our customer base beyond the southwest part of the city.

5.4 Milestones

The accompanying milestone chart highlights our plan with specific dates. This schedule reflects our strong committment to organization and detail.