Strategic Plan 2015 Prepared by: Anna Gilkerson & Kristen Krajewski Sneaker Station October 2014 Table of Contents Page Executive Summary ...................................................................................................................... 3 1.0 Organization Background ....................................................................................................... 4 1.1 Business definition ..................................................................................................... 4 1.2 Vision .......................................................................................................................... 4 1.3 Mission ........................................................................................................................ 4 1.4 Value Proposition ........................................................................................................ 4 1.5 Organization Structure ................................................................................................ 4 1.6 History & Culture ....................................................................................................... 5 2.0 Situation Analysis.................................................................................................................... 5 2.1 Definition & Scope of Situation .................................................................................. 5 2.2 Stakeholders Effected ................................................................................................. 6 2.3 Competition ................................................................................................................ 6 2.4 SWOT Analysis........................................................................................................... 6 3.0 Plan ......................................................................................................................................... 8 3.1 Objectives..............................................................................................................................................................8 3.2 Strategies .................................................................................................................... 9 3.3 Key Performance Indicators ...................................................................................... 10 3.4 Budget & Resource Allocations ............................................................................... 11 3.5 Timeline .................................................................................................................... 11 3.6 Evaluation Method & Anticipated Results ................................................................ 12 Appendices ...................................................................................................................................... A. Budget ....................................................................................................................... 13 B. Timeline ..................................................................................................................... 14 Page 2 of 17 Executive Summary Sneaker Station is a new business in Normal seeking to provide brand name clothing and shoes for a discounted price in a college friendly area. The business has great potential to grow both financially and gain public interest within the community. Because Sneaker Station only recently opened, there are still many advances that could be made. The following plan is to help Sneaker Station through the period of October 31, 2014 to November, 2015. First, the business will be examined to review its underlying values and base operations thus far. Then, the potential for development will be discussed along with possible problems to Sneaker Station’s success. Several objectives for the business and their budget requirements will be suggested including: Create awareness in the community through four philanthropic events, either by donating products or sponsoring events in order to improve corporate social responsibility and strengthen relationships within the community. Generate sales among target audience by $10,000 by November 1, 2015 in order to allow for expansion of retail and promote business recognition through successful business tactics. Create awareness of Illinois State University and the Bloomington-Normal community by 60 people between November 2014 and January 2015 by building a relationship between Sneaker Station and new customers. Strengthen and promote business via social media platforms by attaining 700 followers through strategic and planned social media efforts. This plan will serve as guide for the next year in order to attain these objectives. All employees should know and utilize the plan for it to reach its full capabilities. For the next year, this plan will serve as a basic guide to develop a new plan for the needs of that year. Compliance with the plan outlined below after its acceptance will bring Sneaker Station the guidance it seeks to prosper in its early stages. In addition, once this plan has been carried out completely, there are methods of evaluation of the plan to help determine the success and failure. Page 3 of 17 1.0 Organization Background This section covers necessary information about Sneaker Stations business antics. The information provided allows for a better understanding of the situation analysis in section 2.0, which discusses the current situation of the business, the stakeholders whom are affected and areas for improvement and growth. While the business plan in section 3.0 provides objectives, strategies, and tactics. 1.1 Business Definition Sneaker Station specializes in men’s clothing and hats and Illinois State apparel, as well as a variety of discounted causal, athletic and dress footwear. Our store offers a wide selection of brand-name footwear and an individualized customer service experience. 1.2 Vision To enhance and diversify the footwear and apparel selections offered to the Bloomington-Normal area by offering the newest brand-name merchandise at a discounted price. 1.3 Mission To offer a broader, more affordable selection of brand-name apparel and footwear while offering personal sales expertise to every customer. 1.4 Value Proposition The value proposition is significant to recognizing the factors that make Sneaker Station exemplary in comparison to its competition. It includes two parts: (1) a thesis statement describing Sneaker Station’s (selling proposition) and (2) proof points, which support the fundamental idea of the thesis by providing the compelling viable advantages that Sneaker Station possesses. The value proposition is presented below: Thesis: Sneaker Station offers a wider variety of newly released, discounted brand-name apparel and footwear while offering personal sales expertise and experience to every customer. Proof Points Sneaker Station’s inventory consists of newly released shoes that could take up to three years to reach other similar footwear stores in the Bloomington-Normal area. Sneaker Station offers not only footwear but also accessories, such as jewelry, tobacco pieces, cell phones and data plans, hats, socks, and clothing to act as a one-stop shop for its customers. Sneaker Station offers personal footwear expertise to its consumers. Sneaker Station’s shoe selection is always discounted 15 to 20 percent from their original retail price. 1.5 Organization Structure Sneaker Station is a limited liability company (LLC). The organizational structure consists of two individuals, one manager and one part-time employee who reports to the owner. The manager has full responsibility, while the part-time employee fills in when the manager cannot be there. 1.5.1 Owner/Manager (Lucky) The owner is responsible for and makes the final decisions for all day-to-day matters, including financial, inventory, retail, and bookkeeping matters. He also conducts all promotional efforts by updating all social media and advertising platforms. Page 4 of 17 1.5.2 Part-time Employee The part-time employee is responsible for opening and closing the store according to business hours and assisting with daily sales and inventory. 1.6 History & Culture as of August 2014 Lucky realized his interest and passion for shoes when he started collecting from a very young age. His collection progressed into over 300 pairs of top-of-the-line, brand-name shoes. Lucky grew up in Schaumburg, Ill., and attended Heartland Community College. After posting his shoe collections on his social media platforms, he developed a fan base and realized the potential he had to start his own shoe business. Shortly after he opened Sneaker Station. Sneaker Station believes that everyone should have the chance to buy top-of-the-line shoes at a discounted price. The store provides not only footwear but also other apparel and merchandise. Sneaker Station encompasses a welcoming and youthful environment for its consumers. The store and strives to provide customers, especially college students, with merchandise expertise. 2.0. Situation Analysis Sneaker Station is in a adequate state right now considering the business has recently opened however there is a lot of room for improvements in various aspects of the business, both structurally and tactically. Change is currently needed within the organization structure. By creating additional part-time sales associate positions as well as part-time manager positions, the organization’s responsibilities can be divided, specific to each position. Dividing the work among more employees will allow the owners to spend more time and effort partaking in administrative tasks. 2.1 Definition & Scope of Situation As a new business to the Bloomington-Normal area, Sneaker Station has the opportunity to develop and create new relationships or partnerships both on and off campus. Sneaker Station also has the opportunity to develop a relationship with the University due to its close proximity. Some things they could implement as a new business would be to create a new website, refurbish their current social media platforms, and reach out to the community through different promotional deals or events. Sneaker Station would progress by creating additional part-time employee positions, as well as extra managerial positions. These additional positions would allow for the distribution of daily roles and responsibilities within the business so the owner could focus on more administrative tasks. Another area within the organization that would improve through change is the promotion of the organization. Currently, there are no marketing or advertising efforts being made to further the business’s revenue. Sneaker Station needs to implement and improve its marketing and social media tactics to reach target audiences and potential audiences. By doing so, people will be more aware and knowledgeable about the business as a whole and what it has to offer. Because of the lack of employees, the overwhelming amounts of responsibilities enable the owners from properly using social media and advertising outlets. The company is currently in danger of losing potential customers due to the lack of knowledge and awareness of the business. Page 5 of 17 Sneaker Station has many stakeholders on whom the business’ success or failure depends. Owners, Lucky and his wife, Gaga, are the main source of financial support for Sneaker Station. If sales were to decrease, the business could fail because they can only contribute a specific amount of finances to the business. 2.2 Stakeholders Effected Sneaker Station’s owners are the sole investors in the business. As a result, Sneaker Station depends on its customers to stay loyal to the business and continue purchasing its products and services. The business also depends on the perception of the on-campus area as a safe, close, and modern atmosphere. Employees serve as the face of the company to its customers. If the employees are unprofessional, inadequately trained, or incompetent, the consumer will be unhappy and unlikely to continue business with the company. 2.3 Competition Currently, there are numerous organizations in the Bloomington-Normal community that Sneaker station competes with. The competition is categorized as “very strong,” “strong,” and “weak.” Very strong competition denotes a serious threat to Sneaker Station because those companies offer similar products, as well as more variety in shoes to the same community. Strong competitors also offer similar products and services but pose less of a threat than very strong competition because Sneaker Station has superior products and a well-known reputation compared to the opposition. Weak competitors do not pose a great threat to Sneaker Station because the businesses are not as specific to our target clientele. The following list presents the three levels of competition: Very strong competitors include Dick’s Sporting Goods and Shoe Carnival, which are both located in Normal. Dick’s Sporting Goods offers athletic apparel and footwear and advertises its company, as “every season starting here,” meaning it provides apparel and equipment for all sporting needs. Shoe Carnival offers similar brand-name footwear for a discounted price. Dick’s Sporting Goods and Shoe Carnival are very strong competitors because they offer extended and similar retail inventory and have the potential to draw consumers away because they are well-known companies. Strong competitors are department stores including Macy’s, Kohl’s, and Journey’s located in Bloomington. They all offer the latest styles and top name brands, in addition to serving women as well as men. In addition, department stores offer coupons with savings that compare to the discounted shoes at Sneaker Station. Weak competitors are “big box” stores such as Wal-Mart, Meijer, and Target in addition to Murray’s Shoes in Bloomington. Murray’s poses a weak threat because its target customers do not match Sneaker Station’s. Also, none of these businesses offer the same leading brand-name shoes that Sneaker Station provides. 2.4 SWOT Analysis This section discusses strengths and weaknesses internal to the organization, as well as opportunities and threats which are both external to the organization and out of their control but can be acted on. Aspects Strengths Provide discounted footwear for comparatively low prices to competition Implications Builds the reputation as a standout footwear store with affordable prices Page 6 of 17 Possible Actions Expand footwear selection to gain more consumers and maintain an edge against Provide personal footwear expertise to every consumer Provides convenient accessibility due to location on campus Weaknesses Lack of defined roles for employees at varying levels Poor utilization of marketing and promotion resources Partaking poor business practices Opportunities Expand the company Expand and maintain social media presence Develop and strengthen relationships with local non-profit and community organizations Threats Other discounted footwear stores in the Bloomington-Normal community that offer similar merchandise Business organization and structure may be detrimental Develops relationship between Sneaker Station (SS) and its consumers Creates a relationship with Illinois State, its students, and surrounding businesses -Limits productivity and current employees have an overwhelming amount of responsibilities competitors Maintain customer service that encourages customers to return and promote business Participate in the campus wide discount tactic (Redbird Monday) - Establish defined employee positions according to hierarchy with corresponding responsibilities -Potential to cause time burden Potential consumers may be unaware of SS’s merchandise and discounted prices Causes confusion due to unclear communication regarding store information and services Establishes another place for consumers to continue business and adds recognition within the area Create social media tactics to keep consumers updated and informed of new products, sales, deals, and savings Establish social responsibility within community and promote positive business perception Consumers may choose to be patrons of the competition -Hold employee meetings on monthly basis Hire promotion company to utilize services to help with advancement of business and increase revenue Set up voicemail, add business hours to social media sites, create website, create direct email for business inquiries Open a store in Bloomington Lack of management and clearly defined roles may lead to serious implications regarding the store’s longevity Hire more staff members and distinguish roles and their significance to the business Page 7 of 17 -Utilize Hootsuite as a strategy to make timely and newsworthy social media releases -To stay organized -Partner with universities to support athletics and rso’s -Donate products to target audience events or causes Continually promote the store’s transparency through approachable employees and personalized experience 3.0 Plan This section presents a formal and specified plan action for Sneaker Station for the beginning of the remainder of the calendar year and the 2015 calendar year. It is related to the previous two sections. The plan in this section provides Sneaker Station with the steps necessary to make to significant improvements in order to best achieve its mission and reach its full potential. The following subsections include objectives, strategies and tactics; critical success factors; key performance measurements; implementation timeline; and the final evaluation method and anticipated results. 3.1 Objectives, Strategies, and Tactics The following table shows the objectives, strategies and tactics that make up the central part of this plan as well as the subsequent subsections. Objectives are the main aspects the organization needs to accomplish in order to achieve its vision. Each objective includes four parts (1) a desired effect (2) a goal, stated as a numerical target (3) the target audience (4) an established target date or deadline. The benchmarks for each goal are presented after each objective. Strategies are the categories of things Sneaker Station needs to do to fulfill the objectives. Tactics are the specific actions that Sneaker Station will take to accomplish each strategy, which will subsequently fulfill the related objectives. Objectives 1. Establish involvement in the community by participating in four philanthropic events per year. Strategies Promote corporate social responsibility through being active in community events and being involved with the publics the event draws (Benchmark: This objective assumes that Sneaker Station is currently unaware of new opportunities for community involvement, so the benchmark is zero.) 2. Generate sales among target customers by $10,000 by November 1, 2015. (Benchmark: Record all revenue monthly and analyze the productivity before implementing sales tactics) Tactics Donate shoes, hats, clothes for raffle events Participate in community events or fairs with a booth Sponsor an event in the community Target current and potential audiences through promotion of sales and business Create a customer punch card to promote customers loyalty to business Offer coupons in campus special coupon book for new and returning Illinois State University students at beginning of school year Expand retail in store to women’s apparel and shoes to appeal to and draw more customers to business Hold back to school sale, semi-annual sale and before finals sale to increase Page 8 of 17 3. Create awareness of ISU and Wesleyan students by 60 people between November 2014 to January 2015. Target current and potential audiences through promotion of business, sales, and merchandise (Benchmark: Survey results of publics’ interest in store. Benchmark is currently 0 with a potential of interest) 4. Focus on strengthening and promoting business via social media platforms by attaining 700 followers. Utilize social media outlets to establish and develop relationships with audiences and in return increase revenue and build awareness (Benchmark: Sneaker Stations’ Twitter is currently at 270 followers.) revenue Post new merchandise arrivals via social media platforms to promote retail Create and distribute surveys to different areas on campus and within the community to access current awareness Have ad featured in Vidette and local newspaper to target current and potential audiences Have followers retweet to enter to win a free pair of socks or hats the first week of every month Gain a following through promotional efforts on all social media platforms Share social media post from Sneaker Station to increase chances of winning apparel or merchandise the third week of every month Hold Instagram the last week of every month of fans wearing Sneaker Station apparel with hashtag for a chance to win gift card 3.2 Critical Success Factors The following table describes four categories of factors that could affect Sneaker Station positively and negatively when attempting to fulfill its objective along with the implications related to each category. Opportunities include occasions where Sneaker Station can take advantage of the situation to build its image and increase customer support and involvement. Barriers include, but are not limited, situational, attitudinal, and environmental opposition to Sneaker Station. Environment includes both internal and external factors that influence Sneaker Station operations. Resources include the employees and material required to fulfill business objectives. Objectives 1. Establish involvement in the community by participating in 4 philanthropic events per year. Opportunities Improve Corporate Social responsibility Barriers Limits time that owners spend at Sneaker Station Develop and strengthen relationships with local non-profit and community Loss of sales due to donation of product Page 9 of 17 Environment Increase recognition of Sneaker Station in the BloomingtonNormal area Provides employees with experience outside of the store Resources Provide a use for “leftover” or extra resources More employees will be needed for the events organizations 2. Generate sales among target audience by $10,000 by November 1, 2015. Allow for expansion of retail to include women’s merchandise Allow for potential to expand to additional locations 3. Create awareness of ISU and BloomingtonNormal community by 60 people between November 2014January 2015. Expand network of potential customers 4. Focus on strengthening and promoting business via social media platforms by attaining 700 likes and followers. Create and build a following of fans and consumers Allows the store to be more involved in the University and it’s community Expand network of potential customers Potential to create a financial burden to owner Promote business recognition through successful business tactics Creates demand for employees which would create new responsibility for management Owner and employee couldn’t keep up with demand of new interest None (How do we delete this box without deleting entire column?) Strengthen relationship among employees and boost morale Limits time that owners spend on the floor at Sneaker Station Limited knowledge of how to effectively manage social media platforms Increase following and viewers of product, store and promotions Develop relationship between public and Sneaker Station Additional employees to tailor to new fashion and sales expertise Increase productivity and efficiency Build a relationship between Sneaker Station and new customers More employees will be needed due to high demand Increase recognition of Sneaker Station in BloomingtonNormal area Promotional strategies and tactics to successfully advertise their business Increase employee productivity Improve employee time management and devote time to strictly social media efforts 3.3 Key Performance Indicators (KPIs) KPIs are intermittent measurements taken by Sneaker Station to keep the plan on path to success. For each listed objective, specific measurements will be taken by the owners or managerial staff periodically and compared to the benchmark or level prior to progress. Objective 1 – Establish community involvement by participating in 4 philanthropic events per year. o Benchmark – This objective assumes that Sneaker Station is currently unaware of new opportunities for community involvement, so the benchmark is zero. o KPI -- Donate to or sponsor one local philanthropic event every four months to reach a total of four. Objective 2-- Generate sales among target audience by $10,000 by November 1, 2015. o Benchmark -- Record all revenue monthly and analyze the productivity before implementing sales tactics. o KPI—Production of sales should increase roughly $800 over the next year after the sales tactics are implemented. Page 10 of 17 Objective 3 -- Create awareness of ISU and Bloomington-Normal community by 60 people within 3 months. o Benchmark -- Survey results of publics’ interest in store. Benchmark is currently 0 with a potential of interest. o KPI – Access surveys monthly to determine any increase in awareness by both the Bloomington-Normal community and campus. Objective 4 -- Focus on strengthening and promoting business via social media platforms by attaining 700 followers and likes. o Benchmark – Sneaker Stations’ social media platforms Twitter and Facebook are currently at 270 followers and 249 likes. o KPI – Access both platforms following implementation of social media tactics and analyze productivity and increased engagement from consumers. 3.4 Budget & Resource Allocations Sneaker Station is a new business and required several large investments before it first opened in August 2013. It is especially important for the business to have an appropriate budget and resource allocations in order to implement the plan described in the prior subsections and remain successful. The budget (see Appendix A) lists only those expenses necessary to achieve the objectives, strategies, and the tactics described in section 3.1 because income and sales amounts were unavailable during the planning process for confidentiality reasons. This budget offers opportunities with Sneaker Station’s best interest in mind. However, other avenues may be taken to reduce costs. For example, the Vidette is the most popular newspaper among students and should yield the most college student interest. If funds are not able to accommodate the price of ads, other newspapers in the area offer similar opportunities. The costs for the philanthropic events are estimated for 100 attendants at 65 percent markup. The estimate for each event can be adjusted to fit the specifics of each event. The costs for philanthropic events are estimated for 50 attendees. The estimate for each event can be adjusted accordingly to each specific event. While much of this plan consists of social media efforts through various tactics and strategies, it will not be accounted for in the budget because it doesn’t utilize any additional resources with the exception of time. It is crucial to point out that we are not currently budgeting for advertising, but there may be potential to do so in the future. Currently, the resources being allocated provide Sneaker Station to operate at full capacity. Increasing the level of customer demand and interest has the potential to increase sales to levels above the current supply capabilities. We are instead focusing on our current customers and opportunities before pursuing other opportunities in the future that will increase our expenses. 3.5 Timeline (October 31, 2014 to November 1, 2015) To guarantee the success of this plan and its implementation, the timeline in Appendix B provides Sneaker Station with a calendar for when each of the recommended tactics should be executed. Every component of the plan’s execution is dependent on whether other objectives and tactics succeed. For example, the surveys should be distributed prior to the awareness tactics are implemented to accurately reflect the success of the tactics and if it generated any increase in awareness. Tasks specifically related to audience awareness through social media tactics were meant to be implemented at specific times within the month as well as within the year. For each social media Page 11 of 17 platform, messages have been created and scheduled for the second, third, and fourth week of every month or included throughout the entire year. There are many tasks that occur throughout the remainder of the year and each one in addition to when they are being implemented are highly critical to the stores improvement. This span includes the implementation of many suggested objectives. Semi-annual periods are the most important sections of time because they have influence over new consumers while many tactics are executed. The plan suggests that every four months philanthropic events coincide with awareness tactics causing distress on the two positions that fall under Sneaker Stations organizational structure. 3.6 Evaluation Method & Anticipated Results To determine if this plan was successful, Sneaker Station will have to evaluate the efforts of this plan. The overall success of the plan is based on whether and how well the objectives are met by the end of the plan year. Along the way, KPIs (see Section 3.3), which are periodic measurements of the overall measurements given below, would have been used to gage how well the plan has been on track. The following.is an outline of the final evaluation metrics we would use and the expected results: Objective 1-- Establish community involvement by participating in 4 philanthropic events per year. o Evaluation for this requires finding four potential opportunities for philanthropy, if four were found, Sneaker Station was successful. o If four could not be carried out, adjust the plan to two larger events a year. Objective 2 -- Generate sales among target audience by $10,000 by November 1, 2015. o If by the end of the year, sales were able to increase $800 each month (after the plan begins) or totals $10,000, the plan was successful. o If the plan was not successful, adjust operations for the next calendar year to reach the increase. Objective 3 -- Create awareness of ISU and Bloomington-Normal community by 60 people within 3 months. o If the surveys projected an increase in awareness, the plan was successful. o If it did not increase, awareness tactics will have to be adjusted for the following year by adding at least two more. Objective 4 -- Focus on strengthening and promoting business via social media platforms. o If followers and likes reach 700 or more, than the plan was successful. o If 700 followers and likes could not be reached, social media expertise should be sought out. Success is anticipated for Sneaker Station with this plan. The owners and staff due can easily implement the objectives suggested to increase in social media and store awareness as well as social responsibility and engagement. Page 12 of 17 Appendices A. BUDGET Organizational Budget (Overall) ~ 2014 EXPENSES ACCOUNTABILITY 1.Increase community involvement Gaga & Lucky Donate either shoes, hats, clothes Lucky Participate in community events Gage & Lucky Sponsor an event in community Lucky 2.Increase sales by $10,000 Lucky Coupon book when school starts Gaga Customer loyalty punch card Gaga Back to school, semi-annual & finals sale Gaga Expansion of retail to women's apparel Gaga &Lucky 3.Increase awareness of ISU & BN Gaga & Lucky Post new merchandize via social media Lucky Create and distribute surveys to different areas Gaga on campus and within the community to access current awareness Ad in Vidette and local newspaper Lucky 4. Strenghten social media platforms Lucky Retweet to win free apparel Lucky Follow/like for exclusive deals and specials Lucky Instagram contest for chance to win giftcard Lucky Share post for monthly give-away Lucky TOTAL TOTAL NOTES $400.00 $75.00 $500.00 For each of the four philanthropic events a single item is donated worth up to $100 Have a table or booth set-up on the event grounds Provide full fiancial costs for event $100.00 $6.00 $3,000.00 Create one to two coupons to be featured in back to school coupon book. FedEx Kinkos Printing ($0.06 per page) Print cards, give cards to customers. Advertise and promote big sale events throughout the year social media Estimation based off of current clothing options $0.00 $12.00 FedEx Kinkos Printing ($0.12 per page) Distribute surveys and analyze $600.00 The cost per add is $300.00 semesterly $300.00 One shirt will be given to the winner with a value of up to $25 $240.00 $240.00 $4,693.00 One giftcard is given out per month. Value of give-away is worth up to $20 Page 13 of 17 Page 14 of 17 12/28 12/21 12/14 12/7 11/30 11/23 11/16 11/9 11/2 10/26 10/19 10/12 10/5 9/28 9/21 9/14 9/7 8/31 8/24 8/17 8/10 8/3 7/27 7/20 7/13 7/6 6/29 6/22 6/15 6/8 6/1 5/25 5/18 5/11 5/4 4/27 4/20 4/13 4/6 3/30 3/23 3/16 3/9 3/2 2/23 2/16 2/9 2/2 1/26 1/19 1/12 1/5 12/29 12/22 12/15 12/8 Objectives & Tactics Specific Dates 1. Increase community invovelment by participating in four philanthropic events per year. Donate shoes, hats, clothes for raffle events Participate in community events/ fairs with booth Sponsor an event in the community 2. Increase sales by $10,000 by November 1, 2015 Coupon book when school starts Punch card Expansion of retail to women's clothing and shoes Back to school sale, semi-annual sale, before finals sale 3. Increase awareness of ISU and Bloomington-Normal area by 20% within 3 months Post new merchandise arrivals via social media Create and distribute surveys to different areas on campus and within the community to access current awareness Ad in Vidette and local newspaper 4. Focus on strengthening and promoting business via social media mediums Retweet to enter to win free pair of socks/hats Follow/like for exclusive deals and specials Share post for monthly give-away Instagram contest with hashtag of yourself wearing apparel for chance to win giftcard 12/1 B. TIMELINE Page 15 of 17 Page 16 of 17 References Page 17 of 17