Marketing Management Essay
What if I told you that you can get stylish clothing and accessories and the only catch was that you have to clean out your closet? If you said yes, then Jenny’s Closet Party is the dynamic answer for you. Jenny’s Closet Party LLC is designed with you in mind, by creating the ultimate “Girls Night Out” experience, combining fashion, food, and fun while mingling amongst friends. Uniquely swapping from one fashionista’s closet to another and the remaining items are donated to a local charity. Sounds the perfect win-win scenario right? Jenny’s Closet Party, “A great excuse to clean out your closet”. First Step: Upon receipt of an invitation or retrieval of flyer, specific details will be highlighted as to a theme, what items are being requested, deadline for dropping of your items and also what you should expect the day of the event. Go through your closet and find articles of clothing or accessories that you would like to swap. The items must be in style, of good quality and condition. Some of the categories (depending on theme) may include: clothing, shoes, earrings, scarfs, jackets etc. Second Step: Bring the items to the Donation Center at the Porter County Expo Center two weeks prior to events (Fridays) from 9:00 am – 5:00 pm.
At this time you will be given a voucher at this time in which you will redeemed for tokens to shop with the day of the event. Third Step: The day of the event doors will open an hour and thirty minutes prior to shopping. At this time while mingling, you can enjoy complimentary wine and horderves that will be accompanied with light music to enhance your fun filled evening. Also, vouches can be redeemed for tokens during this time. Fourth Step: Prior to the scheduled shopping time, guest will be reminded of how all this works, rehashing the guidelines that were laid out on the initial invitation/flyer. Guests are encouraged to keep what they have donated anonymous while picking.
However, displaying and sharing their great finds amongst everyone creates sure excitement. Once the shopping time has been launched, participants will be able to go in rounds and selected two items at a time (to keep it fair) to purchase with tokens. Final Step: When the event is over and guests have gone home, the remaining items will be rounded up donated to a local women’s shelter. Sales Forecast
During the first two years of business, Jenny’s Closet Party anticipates generating $300,000 from endorsements and corporate sponsorships. Each member of this company is responsible for the minimum of two sponsorships ($500) in order to reach our strategic goals. We expect to generate the most sales during the summer months.
Jenny’s Closet Party LLC is a small company whose headquarters is located at 2143 Freedom Street Portage, Indiana; however, events will be hosted at the Porter County Expo Center located at 217 E. Division Road Valparaiso, Indiana. The company consists of eight employees; 5 full-time and 3 part-time employees. Jennifer Smith (CEO) will provide the executive leadership and oversee operations of every entity of the company. She will also be instrumental in developing strategies, vision and key performance indicators, to ensure goals are being met. She will be the face of the organization and will concentrate with building rapport and relationship with businesses. Taquanna White (Business Manager) will work closely with the CEO, manage the day-to-day business operations. Serve as our technical expert with keen knowledge in finance and computers. Serves as back up in absence of the CEO a, ensures tasks are being carried out, mentors and manage staff.
Bonita Sims is the (Bookkeeper). Her responsibilities include keeping track of financial transactions, audits, payroll, procurement and inventory. Georgia Manuel (Head of Marketing) is our fashion expert. She will be in the community, charge of sales and marketing and maintaining our Social Media/Blogging keep the company abreast of the latest trends and fashion news. Dionne Payne (Administrative Worker/Hostess) serves as supportive staff doing: project coordination, prepare reports, meeting arrangements, manage calendars, answer phones calls and serve as a hostess at the events. Our three part-time employees will assist with preparations leading up to the event as well as working on the day of the event.
Jenny’s Closet Party has been facing challenges over the last few years with consumers shopping in the thrift and resale arenas. The once known dismal second-hands stores offering outdated clothing have become the ultimate treasure hunt for unique finds at a great price. Much of the recent growth can be attributed to young shoppers, many of whom are passing on trips to the mall in favor of thrift stores (Tully, 2012). Resale stores offer a variety of unique finds at a fraction of the cost of retail stores and propose great risk to new startup companies like Jenny’s Closet Party. The Goodwill industry is a well-known non-profit organization that has been around for over 100 years. There huge targeted audience loves bargain shopping who are drawn by shopping incentives and those by who donate to their cause of giving back to the community. “We provide employment, job training and other community-based programs for people looking to advance their careers, build their skills and further their education” (Goodwill Industry International, 2014).
With a fluctuated economy and staggering unemployment rates many consumers have become more frugal with how they spend their money. Although the retail industry has experienced growth, the resale industry is blossoming and is making great head way to become the new trend for preferred shopping. While many businesses close their doors every day, resale remains healthy and continues to be one of the fastest growing segments of retail (NARTS, 2014). Consumers are seeking cleaver ways to save money and the affordability of shopping at malls with high markup priced garb is not an option. With millions of people looking for ways to save money in tough economic times, a growing number of consumers have turned to resale shops to find their clothes, furniture and household goods (Tully, 2012).
The Northwest Indiana Region’s Gross Revenue Product (GRP) over the past 3 years (2009-2011) has gradually increased by 3%. Porter County’s population is 166,557 (2008-2012) with the median household income was $62,457 compared to the states average of $48,374, of this population 50.95% are women (U.S. Census Bureau, 2014). Over the course of the year, household purchases rose by 0.5 (U.S. Department of Commerce, 2014). This shows that women in the Northwest Indiana Region have buying power which has influentially contributed to the region’s economic growth.
Technology is rapidly evolving and is unprecedented in the business industry. Technology is vital and plays a major role in the success or demise of a company; ultimately impacting processes, pricing, promotions and placement of products and services. Technology force is used just about in every capacity of a business operation, from finances, book keeping and cash registers down to marketing. Social Media mediums such as Pinterest, YouTube and Facebook are some of the most popular ways in which technology has to connect with consumers. Retailers with Wi-Fi allows customers to use their Smart Phones to research products, compare prices, and download coupons with apps to make purchases. Due to the rapidly growing competition of on-line shopping, in-store retailers and swapping businesses must set themselves apart by meeting the customers’ needs and provide them with the ultimate one-on-one experience and technology can effectively help with this.
Legal and Regulatory Forces:
Jenny’s Closet Party is a limited liability company. A legal limited liability company is a hybrid-type of legal structure that provides the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership (small business association 2014). Although, LLC’s have similar characteristics as corporation and partnership, the government does not hold them accountable to the same standards, structure and tax laws. To start an LLC one should research and decide what type of business they would like to organize. Specific documents to establish a business should be filed with the Secretary of State to start a business (procedures may vary from state to state).
Information submitted should include: Business name, registering, creating agreements and articles of incorporation. Once the company has been incorporated you will required to secure licensures, permits, EIN number, tax status and other required paperwork. Once all the necessary paperwork is complete and the business is established, the next steps should include obtaining insurance and doing the necessary footwork to get the business up and running such as networking, creating the brands image, and securing the necessary finances.
The political forces that have a direct effect on Jenny’s Closet LLC and other business are the stability or instability of the government, economic/trade policies, tax rates and different events that happen in our communities and throughout the nation. These factors can affect how consumer spending. Consumers are more incline to shop at stores like Jenny’s Closet and resale outlet stores. The resale, consignment and thrift store industries has boomed in the aftermath of recession in the 1990’s. For this included an increased need for households to sell unused items for cash and reduced quantities of disposable income that made it necessary for people to shop at cheaper outlets (NARTS, 2014).
Social Cultural Forces:
As society and cultures change, so should your business. In order to have a successful business, one must recognizes and adjust (according to the current times) in order to succeed. Some socio-economical dynamics that businesses must adapt to as the world evolves: demographics, marketing/advertisement, trends (staying on top of consumer preferences) and external factors that may require adjustments within the company.