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Marcella Boutique Business Plan

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Mission Statement:
Our mission at Marcella Boutique is to offer one of the wide selections of apparel and to
introduce quality designer apparel, accessories, and shoes to shoppers while offering the best
customer service possible. We strive to give our customers a blissful shopping experience by finding
popular and unique apparel and accessories for easy shopping all in one place.

The boutique concentrates on having a different style from others that represents the
characteristics of our customer. This elegant high apparel boutique is dedicated to selling luxury
goods created by the world’s most famous designer. We will maintain financial balance while
delivering a quality product to our customers. On the other hand, we will make our clothing
accessible throughout our community by having online store, fashion shows, and events. We will
make a profit and generate cash and provide a rewarding work environment and fair compensation
to our employees and ensure excellent services to our customers.

Marcella boutique will be open on the 8th of December 2010, and it is located on Main Street
in the heart of Old Bellevue, Washington, which is nearby central business district. Bellevue is
recognized for its diverse cultures which create more opportunity for business growth to satisfy
different customer’s needs.

Funding:
The financial for Marcella Boutique will be 80% from family, 10% from personal savings and 10%
from Bank of America.

Success Factors:
There are numbers of factors which contribute toward the success of Marcella Boutique, which are:

• Proper inventory management;


o Keeping minimum inventory as per past sales trends.
o Making sure there are enough inventories for special holiday seasons like Christmas
and New Year.

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o Make sure to order the inventories on time so as to have new arrivals whenever the
customers shop with us.
o Camera should be placed in the storage room to ensure that the staff are working in
an ethical manner and avoid any shortage in inventories.
• Running store professionally
o It is the staff/owner responsibility to make sure that the business should be open
from 9AM-6PM every day.
o The store should always be handled by the owner and two other employees. One is
in charge of operating the cash register and loss prevention while the other is
responsible for customer service and inventory control. The owner will be
responsible to handle everything around the store; customer service, complaints,
selling and inventories control.
o Make sure that the floor, clothing and accessories display and restroom are cleaned
every day.
• Maintaining serious business discipline

o Eliminate credit and terms to customers (not credit card sales).


o Maintain enough money on hand each month to pay the cash obligations the
following month.
o Clearly understand the market, distribution costs and competition, and continually
adjust accordingly.
o Keep enough cash, as needed for security, on hand to cover expenses.
o Reduce accountant expenses by producing our own summary statistics and
projections via accounting software.
o Identify and eliminate overhead expenses.
• Customer satisfaction should be given due to the importance of increasing sales.
o Excellence customer service should be provided in store. For example, in-store
alterations for customer’s convenience while shopping with us. C
• Carry an assortment of sizes and styles to fit different type of customers.
o We will carry different type of brands from Asia and United States to fit different
types of people and ensure that the clothing is unique and different from other store.

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By having apparel and accessories that are unique, will keep the customer coming
back.

Section Summaries:
Company Overview

Marcella Boutique’s primary goal is to satisfy customers that love fashion and keep them coming
back. The store is designed to help customers change their look without buying an entirely new
wardrobe. We will cater to the person wanting to build a new wardrobe by purchasing clothing and
accessory pieces to add a trendy look.

Market Analysis

The total sales reported in the U.S. retail industry in 2007 (including food service and automotive)
exceeded $4 trillion. There are roughly 75 million Baby Boomers, half of which are women. In
Bellevue, the current population is 117,000 with 52.1% female; the average age around 30 to 50
years old. The population in Bellevue is not only increasing experienced, but also the city itself is
growing and improving. With growing population by 4% in 4 years (2003-2007), means more
potential customers to be targeted for Marcella Boutique.

Market Strategy

Marcella Boutique recognizes the importance of marketing. And to that end, we plan to promote
our retail business with an ambitious, targeted marketing campaign, which will include a grand
opening event, local media coverage, print advertising and a direct-mail campaign. Our goal is to
keep our marketing budget to no more than 5% of our gross annual sales, and we will partner with
local organizations such as the Chamber of Commerce.

To increase sales and promote Marcella Boutique, special events will be held that please people,
create interest, pursue leisure, involve social participation, and occur within a specific time frame.
Some of our special events will include:

• Anniversaries
• VIPs sale

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• Birthday sale
• Loyalty membership
• Fashion Shows
• Season sale
• Grand Openings

Special events give Marcella Boutique powerful way to promote our image, products, merchandise,
services, and to generate brand awareness to the public.

Marcella Boutique will use these events, trend forecasting research, and promotions plan to attract
customers, sell products, earn profits, make markets aware of new developments, and make
communities aware of their policies, goals, and purposes.

Operations

The store will be open from 9 A.M. to 6 P.M. and be staffed by Mellinda Marcella and two
full time employees. On weekends, a part-time worker will be hired to work in the store from 10
A.M. to 5P.M. Fiscal management will be closely monitored by the accountant, Kathy Chalmers to
ensure success of the business. All computations for mandatory accountings as well as federal, state,
and local financial obligations will be handled by the accountant to ensure compliance.

The inventory will be purchased through several vendors and we will need six weeks worth
of inventory from the first day of the count cycle to stay in operation until our merchandise arrives.
We will have on hand a six-week supply of inventory.

Financial

The financial for Marcella Boutique will be 80% from family, 10% from personal savings and 10%
from Bank of America.

Appendices

Resume, store floor plan, visual merchandising layout or photos, merchandising inventory stock and
budget formula plan will be shown in the section.

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Owner & Organization


Basic Business Concept

Business will be a high end women’s apparel and accessories boutique. The name of the
boutique is Marcella Boutique. The boutique concentrates on having a unique style that represents
the characteristics of our customer. This elegant high apparel boutique is dedicated to selling unique
and luxury goods that created by the most exciting designers. Marcella boutique is located on Main
St in the heart of Old Bellevue, Washington. Bellevue is recognized for its growing population and
diverse cultures and many foreign people living around this area. It also means more opportunity to
sell more products to satisfy their needs. Our target market would be women from the age of 18 to
40s.

Legal form &Ownership

The business of Marcella Boutique will be a sole proprietorship.

Overall Strategy
Company Objectives:

Short Term

• Keeping new and existing customers, by building customer loyalty, trust and satisfaction
through our products and services. We will make use of our membership card, birthday
sales, holiday sales and other promotions to attract loyal and potential customers to shop
with us.
• To offer a wide and up-to-date selection of brand name apparel from Asia and USA.
Marcella Boutique will carry varieties of brand to satisfy different customer’s fashion style
and we will find vendors from China and Singapore that carries high end brands.
• Design a promotion campaign and social networking through Facebook to build customer
awareness and loyalty. Marcella Boutique will have one employee who is in charge of

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creating and updating the Facebook for promotions and events every week. We will ensure
to reach audience at any places to come and shop with us.
• Creating our online shopping websites for easy and convenient shopping. We will build our
own websites to attract broader target market and will find designer who is able to make the
websites at affordable prices. This websites not only new arrivals products but also discount
products and pre order items.
Long Term

1. To increase profit margin by 5% over the next 2 years and maintain it with the hopes to
increase by another 10% in 4 years by:
• Increasing the number of website hits with minimal advertising costs (ie. referrals,
testimonials and word-of-mouth
• Free online delivery to encourage customers to shop more often.
• Initiating a loyalty program – membership – those who have purchased 3 products online
will receive a free pair of flip flops or 15% off their next purchase.
• Biweekly emails to keep customer up to date about our products and promotions and attract
them to shop more with us.
2. Continually and consistently increase total number of customers per year by:
• Offering the best customer services to satisfy them and ensure that they will come back for
their next shopping by giving them coupon of offers for their next purchase if they
purchased 3 or more products.
• Make our clothing and accessories accessible throughout our community by way of
establishing a retail location, fashion shows, and events.
• Updating Facebook as frequent as possible to promote Marcella Boutique and create events
to attract more customers to come and shop.
• Regular emails and flyers for customers to know about events and promotions.
3. Maintain financial balance while delivering quality product to our customers.
• Providing customers with reliable quality products at competitive prices by having good
relationship with vendors in order to build trust in them and able to buy inventories at good
prices.

Company Resources

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Management

• Manager: To control the whole store from inventory to sales when owner is not around.
• 2 full time employees and 2 part times: Focused on making sales, inventory stock and
control, operating the store and loss prevention.

Financial

The financial will be 80% from family, 10% from personal savings and 10% from Bank of America.

Market

Marcella Boutique is located at the heart of downtown Bellevue which is nearby the central business
district. Many people shop around this area, from tourist to employees who work nearby. There is
need for this market as Bellevue has a high growing population and there are few of similar
boutiques that are very successful. From the demographics, people who living in Bellevue are mostly
highly skilled and qualified workforce which means that they have a higher income. This is an
advantage for opening a new business as there are potential customers that have extra money to
shop. Bellevue has a low crime rates and it have all big companies and departments stores in the
surrounding areas; Neiman Marcus, Bellevue Square Mall, and Microsoft.

Basic Orientation:

The basic orientation for Marcella Boutique is Product/ Margin. Our store focused on getting a
unique product from all over the world’s famous designer. We try to be different from other store,
by having clothes that are limited in quantities and unique. Based on the demographics and location,
we have a large target market from the people living in Bellevue, Kirkland and Mercer Island. These
people are usually driven to purchase products that are different and they are loyal to a certain
brand.

Problems & Contingency Plan:

1. Competitor: There are many boutiques around the areas. We need to keep up with the
competitors and make sure we carry more color, sizes and style from different designers.

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With varieties of choices in one store, customers will prefer to come to us as it is more
convenient.
2. Rent: The monthly rent in downtown Bellevue area will be very high so we need to make
sure to keep our profit high by increasing advertising with minimal cost like referrals, sales
promotion, and brand loyalty program.
3. Inventory stock: Need to really know the customer’s buying pattern so as not to have
overstock items. By using POS software, we will able to track customer buying pattern and
this make it easy for inventory control. Trend research and meeting will be conducted at
least once a month.
4. Pricing: With high rent and other expenses (employees, internet, and others), we need to
adjust the price (season, sales and promotions) to make sure that we earn enough profit. We
will also do price matching to ensure that we do not lose potential customers and to show
our quality services.
5. Reach monthly goal: We need to reach our target sales in order for the business to keep
running. By knowing customer’s buying habit, will benefit us by creating sales and
promotions that will attract them to shop with us more. Trend forecasting research and
checking customer’s buying pattern will benefit the store. Seasons and VIPs sale will also
needed to improve profit.
6. Selection of wrong designs: If the designs are not selected according to the tastes of
clientele, it can be bad for the business. In order to avoid it, the clientele taste need to be
properly tracked.
7. Tax: Improper documentation of sales receipt record may lead to problems with Tax
department.

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Customer Profile
 

Demographics

http://maps.google.com/maps?hl=en&gl=us&um=1&q=10245%20main%20street%20bellevue%20wa&ie=UTF-

8&sa=N&tab=il&tbo=0

Marcella boutique is a high end women’s apparel and accessories boutique. The boutique
concentrates on having a unique style that represents the characteristics of our customer. This
elegant high apparel boutique is dedicated to selling unique and luxury goods created by the world’s
most exciting designers.

Marcella boutique is located on Main Street in the heart of Old Bellevue, Washington. The
total population is 22,650, with 47.9% male and 52.1% female. The average age in downtown
Bellevue would be around 35 to 50 years old. 1

                                                                                                                         
1
 "98004  (BELLEVUE  WA)."  ZIP  Skinny.  Web.  9  Dec  2009.  <http://zipskinny.com/index.php?zip=98004>.  

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Popula(on    
4,000  
3,000  
2,000  
1,000  
0  
Popula[on    

http://zipskinny.com/index.php?zip=98004

If we incorporate the population figures from downtown Bellevue, Everett and Seattle,
which is  123771,  98212 and 536946, 3we would be able to reach broader target market. 4Population
in Everett is 98,212 with 50.9% male and 49.1% female and downtown Bellevue’s population is
109,569 with 49.6% males and 50.4% females. 5

By having different locations of customers coming to shop, Marcella Boutique will have
greater opportunity for growth and sales.

In reference to the chart above, the average person in Bellevue is between 18 and 50 years
old. People who live around the area have a high education level, as most of them have their
bachelor’s degree, and this area is surrounded by Bellevue College and City University. The second
highest education level is a high school degree or equivalent. The third is a master’s degree, followed
by 1 or more years of college. 57.7% of the total population will have bachelor’s degree or higher,
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and 95.7% attained high school or higher education.

                                                                                                                         
2
 98004  (BELLEVUE  WA)."  ZIP  Skinny.  Web.  9  Dec  2009.  <http://zipskinny.com/index.php?zip=98004>.  
3
 Seattle  Population  Overview.  Web.  9  Dec  2009.  <http://www.epodunk.com/cgi-­‐
bin/popInfo.php?locIndex=24992>.  
4
 "Everett,  Washington."  City  Data.  Web.  9  Dec  2009.  <http://www.city-­‐data.com/city/Everett-­‐Washington.html>.  
5
 Bellevue  Population  Overview.  Web.  9  Dec  2009.  <http://www.epodunk.com/cgi-­‐
bin/popInfo.php?locIndex=24672>.  
6
 "Bellevue  Community."  Bellevue  Washington  Chamber  of  Commerce.  Web.  9  Dec  2009.  
<http://www.villageprofile.com/washington/bellevue/06/topic.html>.  

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http://www.city-data.com/neighborhood/Old-Bellevue-Bellevue-WA.html

The median household income in Bellevue is estimated to be around $63,358 and the
individual average income is around $50,000 to $70,000. A total of 30.4 % of household (10,579
homes), have an average income of $50,000 and above and 30% of it earn $100,000 and above.7
The marital status in the area is as follows:

• Never married -4,463


• Currently married -10,885
• Widowed -1,226
• Divorced -1,4708

People who live in this area are mostly married, aged between 35 to 40 years old.

Marriage  status  
60.00%  
40.00%  
20.00%  
0.00%  
Marriage  status  
Marrie

Separat

Widow

Divorce
ed:    
ed:    
d:    

d:    

http://www.brainyzip.com/social/98/social_98004.html

                                                                                                                         
7
 "Bellevue  WA  98004  Economics."  Brainy  ZIP.  Web.  10  Dec  2009.  
<http://www.brainyzip.com/economic/98/economic_98004.html>.  
8
 "Bellevue  WA  98004  Social."  Brainy  ZIP.  Web.  10  Dec  2009.  
<http://www.brainyzip.com/social/98/social_98004.html>.  

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Race  
Hispanic/La[no  

White    

Black  

Na[ve  American  

9 http://zipskinny.com/index.php?zip=98004

From the chart above, it is clear that Bellevue’s location is very diverse with many different
races living in the area. Having multi-ethnic population means that we can have a broader target
market.

The occupations for the people who live in Bellevue are:

• Management/Professional --54.4%
• Service –9.5%
• Sales/Office –28.7%
• Farm/Fishing/Forestry –0.1%10

Bellevue has a low unemployment rate which is 1.7%.

Occupa(on    
 Mgt./Professional    

Service  

Sales/Office      

Farm/Fishing/Forestry    

http://zipskinny.com/index.php?zip=98004

                                                                                                                         
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   98004  (BELLEVUE  WA)."  ZIP  Skinny.  Web.  9  Dec  2009.  <http://zipskinny.com/index.php?zip=98004>.  
 
10
 98004  (BELLEVUE  WA)."  ZIP  Skinny.  Web.  9  Dec  2009.  <http://zipskinny.com/index.php?zip=98004>.  
 

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Psychographic Profile

Free time Activities

People around Bellevue mostly work in the downtown area. They work at places such as
Bank of America, Neiman Marcus, Bellevue Square Mall and Microsoft. Their working hours are typically
from 08:00A.M TO 05:00PM. After work, some of them work out at 24 Hour fitness or LA fitness.
Others will choose to enjoy their after-work-time by shopping around Bellevue Square Mall, Neiman
Marcus, or buy some groceries nearby at Safeway or QFC. They may also enjoy a cup of coffee at
Starbucks while buying at groceries.

http://seattletimes.nwsource.com/ABPub/2008/04/24/2004371834.jpg

Most of the workers go home after their work on Friday and enjoy their weekend by going
to a club or bar in downtown Bellevue such as Palomino Restaurant or Joeys. Some of them prefer to
spend time with their families on the weekends by shopping at Bellevue Square Mall or watching
movies in Lincoln Square Cinemas. Some people prefer to spend their time by going to Bellevue Arts
Museum or reading fashion magazines at Barnes & Noble’s. For some other weekends, they will go
to fashion show during fashion week that is held by Bellevue Square like Nordstrom or Macys
fashion show.

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Day in the Life

Valentina who work at Microsoft, loves fashion and shopping. She woke up at 6.00AM every
weekday morning to get ready for work, BY 7.15AM she needs to get coffee at Starbucks, which is
in front of her apartment, and then catch the bus and make sure that she arrives at the office around
8:00AM. She always remembers to bring her VOGUE or In Style magazines for reading on the bus.
She got off work at 5:00PM and reach home around 5:45PM. By 6:00PM, she will be wearing her
Lulu lemon athletic apparel and go to yoga class at LA Fitness.

http://www.abollendesign.com/blog/2009/01/bellevue-towers-hits-mark-i-want.html

After gym, she will drive her MINI Cooper to Bellevue Square to have dinner with friends at
Magiano’s Little Italy. After dinner, she will either go to Joeys for some cocktails or watch New
Moon movies at Lincoln Square Cinemas or go for some shopping with friends at Neiman Marcus
which is few blocks away from Bellevue Square. Valentina always makes sure that she will be home
by 10PM to get enough sleep every weekday night to get ready for work tomorrow. She will sleep by
10:30PM and wake up at 6:00AM again the next day.

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VALS

VALS consulting provides clients with tailored marketing strategies for targeting,
positioning, and communications—real-world, real-time, actionable strategies. Consumer surveys
and focus groups inform our work.

VALS Benefits:

• Gain a fresh perspective by getting "into the heads" of your customers.


• Create richly textured consumer profiles or personas.
• Understand the distinct communications styles of your best targets.11

The first VALS category for the Bellevue population will be “Innovators”. According to the
VALS website, the characteristic of an Innovator is:

“Innovators are successful, sophisticated, take-charge people with high self-esteem.


Because they have such abundant resources, they exhibit all three primary motivations in
varying degrees. They are change leaders and are the most receptive to new ideas and
technologies. Innovators are very active consumers, and their purchases reflect cultivated
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tastes for upscale, niche products and services.”

Innovators are very hard working and they like to be a leader. In order to compete, they
strive for the best and make sure that they survive in any kind of situation. Most innovators will
have a high education background and are hard working people. They love their jobs and want to
keep improving their lives. With a good salary and occupation, they tend to have a high standard of
life compared to others.

The second VALS category is” Achievers”. According to the VALS website, the
characteristics of Achievers are:

“Motivated by the desire for achievement, Achievers have goal-oriented lifestyles and
a deep commitment to career and family. Their social lives reflect this focus and are
                                                                                                                         
11
 Strategic  business  inside.  Web.  25  Nov  2009.  <http://www.strategicbusinessinsights.com/vals/about.shtml>.  
12
 "Innovators."  SRI  Consulting  Business  Intelligence.  Web.  28  Oct  2009.  <http://www.sric-­‐
bi.com/VALS/innovators.shtml>.  

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structured around family, their place of worship, and work. Achievers live conventional lives,
are politically conservative, and respect authority and the status quo. They value consensus,
predictability, and stability over risk, intimacy, and self-discovery.” 13

Achievers are trying their best to attain their goal and want to make the best of their
lives. They concentrate on what they are doing and they have planned ahead for what they really
want. They are not easily satisfied by what they already have, but rather constantly challenge
themselves for a new and better life.

The third VALS category is “Strivers”. The characteristics of Strivers are:

“Strivers are trendy and fun loving. Because they are motivated by achievement,
Strivers are concerned about the opinions and approval of others. Money defines success for
Strivers, who don't have enough of it to meet their desires. They favor stylish products that
emulate the purchases of people with greater material wealth. Many see themselves as
having a job rather than a career, and a lack of skills and focus often prevents them from
moving ahead.” 14

Strivers really care about their looks and other’s opinions about them. People in this category
usually try to work and earn money for themselves. They attempt to purchase luxury goods and
having a better lifestyle in order to be successful. For them, whatever they wear or use represents
their status and this is one of the reasons that they do not have enough money to meet their desires.

PRIZM NE

                                                                                                                         
13
 "Achievers."  SRI  Consuling  Business  Intelligence.  Web.  <http://www.sric-­‐bi.com/VALS/achievers.shtml>.  
14
 "Strivers."  SRI  Consulting  Business  Intelligence.  Web.  <http://www.sric-­‐bi.com/VALS/strivers.shtml>.  

17  
 
PRIZM NE is used by thousands of marketers across the country and the world providing
the "lingua franca" for cost-effective marketing in an increasingly diverse and complex American
marketplace. Below are the segments for the people who live in Bellevue.

The first segment is Young Influential, midscale and younger without kids. These people are:

“Once known as the home of the nation's yuppies, Young Influential reflects the
fading glow of acquisitive yuppiedom. Today, the segment is a common address for
younger, middle-class singles and couples who are more preoccupied with balancing work
and leisure pursuits. Having recently left college dorms, they now live in apartment
complexes surrounded by ball fields, health clubs, and casual-dining restaurants.” 15

Young Influential is usually a college graduates and have just started working. They are
usually middle class and are less than thirty-five years old, single, and without kids. They shop at
store such as Express, watch movies on the weekends, and drive cars similar to Mazda. The ethnicity
around the area would be Caucasian, African-American, Asian, and Hispanic.

The second type is, Executive Suites, upper middle class people with no kids.

                                                                                                                         
15
 "My  Best  Segments."  2008  PRIZM  NE  Segmentation  System.  Web.  10  Dec  2009.  
<http://www.claritas.com/MyBestSegments/Content/tabs/filterMenuFrameWork.jsp?page=../Segments/snapshot
.jsp&menuid=91&submenuid=911>.  

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“Executive Suites consists of upper-middle-class singles and couples typically living
just beyond the nation's beltways. Filled with significant numbers of Asian Americans and
college graduates--both groups are represented at more than twice the national average--
this segment is a haven for white-collar professionals drawn to comfortable homes and
apartments within a manageable commute to downtown jobs, restaurants, and
entertainment.”16

Executive Suites are usually less than sixty five years of age and are in management or
professional related jobs. They are categorized as upper-middle class people than earn around
$74,000 per year. The ethnic makeup is Caucasians, Asian and multi-racial.

The third type is Home Sweet Home, upper middle class people, with or without kids:

“Widely scattered across the nation's suburbs, the residents of Home Sweet Home
tend to be upper-middle-class married couples living in mid-sized homes with few children.
The adults in the segment, mostly under 55, have gone to college and hold professional and
white-collar jobs. With their upper-middle-class incomes and small families, these folks
have fashioned comfortable lifestyles, filling their homes with toys, TV sets, and pets.”17

These people are mostly below 50 years old. They are considered upper middle class people
that earn more than $60,000 per year. They love shopping in a convenient way which is good way as
Marcella Boutique have online website for customers who prefers to shop at home and shop. They
drive Mazda 6 and love watching late night shows with Conan O’Brien.

                                                                                                                         
16
 "My  Best  Segments."  2008  PRIZM  NE  Segmentation  System.  Web.  10  Dec  2009.  
<http://www.claritas.com/MyBestSegments/Content/tabs/filterMenuFrameWork.jsp?page=../Segments/snapshot
.jsp&menuid=91&submenuid=911>.  
17
 "My  Best  Segments."  2008  PRIZM  NE  Segmentation  System.  Web.  10  Dec  2009.  
<http://www.claritas.com/MyBestSegments/Content/tabs/filterMenuFrameWork.jsp?page=../Segments/snapshot
.jsp&menuid=91&submenuid=911>.  

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By knowing the PRIZM NE segments, Marcella Boutique will use this information to target
the market segments, research pricing, selecting styles of the products in order to match the image
of the store.

Buying motivators

Abraham Maslow developed a model in which basic, low-level needs such as physiological
requirements and safety must be satisfied before higher-level needs such as self-fulfillment are
pursued. In this hierarchical model, when a need is mostly satisfied it no longer motivates and the
next higher need takes its place. Below shown the buying motivators for customers who shop at
Marcella Boutique.

20  
 
(http://theskooloflife.com/wordpress/wp-content/uploads/2009/05/maslows-hierarchy.gif)

1. Self actualization:
The people shopping at Marcella Boutique will have a sense of creativity and feel they are
being accepted by their society.
2. Self-esteem:
By wearing clothes from Marcella boutique, customers will feel confident that they have a
unique sense of fashion and build up their self-esteem.
3. Belongingness and love:
The potential customers feel that they blend in with the surroundings and belong to a certain
level of class by shopping at Marcella boutique.

Target Market

Market Location

The location of Marcella Boutique is at Bellevue of Washington State 98004. Bellevue is a


rapidly growing city in King County, Washington, and located across the Lake Washington from
Seattle. It comes from a French word which means, “Beautiful view”. According to the Washington

21  
 
State Office of Financial Management's April 1, 2006, it is the fifth largest city in state and has a
population of 117,000.

Bellevue is surrounded by many cities where most of our customers came from, such as,
Everett, East Union, Kirkland, Madison Park, Medina, Mercer Island, Newcastle, Renton, SeaTac,
and Seattle. It is best known for the trendy shops, upscale restaurants and distinctive department
stores that make up its 180-store Bellevue Square. More than 16 million people visit Bellevue Square
each year, making it a destination stop in its own right.18

According to “livebellevue.com”, Bellevue is:

“Downtown Bellevue is undergoing rapid change. Lincoln Square, which opened in 2005, and a
recently-completed overhaul of the former Qwest building into a New City Hall appear to be the
leading edge of a development boom. Over the next few years, the area will see the construction of
several additional high-rises and other projects for office, residential, and retail space.

Based on per capita income, Bellevue is the 15th wealthiest of 522 communities in the state of
Washington.” 19

On the other hand, Bellevue has an easy access to highway as they are surrounded by I-5 and
I-90. These are the largest highway in Washington, which also means many people will pass by this
area.

                                                                                                                         
18
 "Puget  Sound  Travel  Region  Bellevue,  Washington."  City  Guide  to  Bellevue  Washington.  Web.  10  Dec  2009.  
<http://www.gonorthwest.com/washington/puget/Bellevue/Bellevue.htm>.  
19
 "Bellevue,  Washington."  livebellevue.com.  Web.  28  Oct  2009.  
<http://www.livebellevue.com/AboutBellevue/BellevueWashington/tabid/1813/Default.aspx>.    

22  
 
According to “HistoryLink.org”, the history of Bellevue was:

“The City of Bellevue is a modern, metropolitan community dotted with skyscrapers. Although it
didn't incorporate until 1953 and has experienced most of its rapid growth since then, its history
goes back many decades, as a farming center, inland port, and milling center.”

“Throughout the first half of the twentieth century, Bellevue maintained its rural lifestyle. Their
annual Strawberry Festival was always a big success, both for selling produce and for luring new
residents who wanted to live in a country environment, yet still be able to commute to their Seattle
jobs.”20

The first founders of Bellevue were William Meydenbauer (1832-1906) and Aaron Mercer
(1824-1902), who both arrived in 1869. It was officially incorporated in 1953. Before the 1900s, the
access from Seattle to Bellevue was by ferryboat. In 1917, the opening of the Lake Washington ship
canal brought new business to Bellevue, when local resident William Schupp, head of the American
Pacific Whaling Fleet, decided to move his corporate to Bellevue. 21

I think it is important to understand the market location of Bellevue before opening Marcella
Boutique as it shows easy access for customers to come to Bellevue and show where potential
customers will come from.

Geography

                                                                                                                         
20
 J.  Stein,  Alan  .  "Bellevue  -­‐-­‐  Thumbnail  History."  historylink.org.  9  November  1998  .  Web.  28  Oct  2009.  
<http://www.historylink.org/index.cfm?DisplayPage=output.cfm&file_id=313>.    
 
 

23  
 
http://www.bellevuedentalexcellence.com/location.php

Bellevue is close to Interstate 90, which lies between Lake Washington to the west. The city
is bisected by Interstate 405 running north-south and the south portion is crossed from west to east
by Interstate 90.

I-90 connects Bellevue to Mercer Island to southwest, Issaquah to east, Coal creek and
Factoria to west. It is bordered by the cities of Kirkland and Redmond to the northeast along the
Overlake neighborhood.

With I-90 and I-405 nearby, it made it an easy and convenient access for the people who
travel by car for Seattle, Mercer Island and Everett to come to Bellevue to shop. 22

Climate

                                                                                                                         
22
 "Prime  Location  for  Employees."  Village  profile.  Web.  10  Dec  2009.  
<http://www.villageprofile.com/washington/bellevue/05/topic.html>.  

24  
 
Bellevue, Washington is a good place to live in with its acceptable level of annual temperature
change. It gets around 35 inches of rain per year. There are around 155 sunny days per year. Average
maximum temperature of Bellevue, Washington in July is around 75+ and lowest in January is
around 37+/-. Average precipitation in January is 4.61, in July it is 1.47.
Because of the flatness of the area, it is a good reason for Marcella Boutique to open store in this
location as it easy for cars to pass by and there is no slope and hills like in Seattle area. During
winter, Bellevue always been good dealing with the snow, they always cleared the snow for easy
access driving and walking. 23

Market Size

After a downturn in early 2000, Bellevue is again start growing. Below is a chart showing the
population growth in the area from the year 1990-present.

http://www.bellevuewa.gov/pdf/PCD/census_png.pdf

Fortune Small Business magazine recently named Bellevue the best place in the country to
live and launch a business. The population in Bellevue is still growing from 1990’s until now as it has
a strong economy. Bellevue keep developing new business and experienced 45% of growth rate in
leasable office space since 2000.
                                                                                                                         
23
 "Bellevue,  Washington."  Sperling's  BestPlaces.  Web.  10  Dec  2009.  <http://www.bestplaces.net/city/Bellevue-­‐
Washington.aspx#>.  

25  
 
According to “villageprofile.com”, Bellevue shows a tremendous growth rate over the past
few years.

“With a diverse and dynamic mix of successful and entrepreneurial businesses, Bellevue
leads the way in commerce and industry. Many companies choose Bellevue as their corporate or
regional headquarters, and over the past three decades, employment growth has transformed the city
from a suburban residential center to a thriving economic engine.” 24

Attractive features

1. Location: Marcella Boutique is located at the heart of downtown Bellevue which is nearby
the central business district. Many people shop around this area, from tourist to employees
who work nearby.
2. Diverse culture: Bellevue is recognized for its diverse cultures and many foreign people
living around this area. It also means more opportunity to sell different product to satisfy
their needs.
3. Operating Costs/Competitive Advantage: No increases in gross receipts tax rates in the
last 10 years, no employee “head” tax, no annual general business license renewal fees
4. Well educated workforce: From the demographics, people who living in Bellevue are
mostly highly skilled and qualified workforce which means that they have a higher income.
This is an advantage for opening a new business as there is potential customers that have
extra money to shop.
5. City focused on business: Bellevue has a low crime rates and it have all big companies and
departments stores in the surrounding areas; Neiman Marcus, Bellevue Square Mall, and
Microsoft.

Difficulties &Problems

8. Competitor: There are many boutiques around the areas. We need to keep up with the
competitors by having uniqueness and varieties of products that other stores do not carry.

                                                                                                                         
24
 "Booming  Bellevue."  Village  profile.  Web.  28  Oct  2009.  
<http://www.villageprofile.com/washington/bellevue/04/topic.html>.  

26  
 
9. Rent: The monthly rent in downtown area will be very high so we need to make sure to
keep our profit high.
10. Inventory stock: Need to really know the customer’s buying pattern so as not to have
overstock items.
11. Pricing: With high rent and other expenses (employees, internet, and others), we need to
adjust the price to make sure that we earn enough profit.
12. Reach monthly goal: We need to reach our target sales in order for the business to keep
running. By knowing customer’s buying habit, will benefit us by creating sales and
promotions that will attract them to shop with us more.

Existing demand for product and services

1. Unique and creative products that are different from others


2. Personal alterations services
3. Great customer service
4. Being green
5. Having similar target market from the competitors to attract them to shop with us instead.

Primary Competition
 

We found these two boutiques below that appear to be our biggest competitors:

Posh on Main La Ree Boutique Nordstrom

27  
 
Address 10245 Main St 11 103rd Ave NE 100 Bellevue Square
Bellevue, WA 98004 Bellevue, WA 98004 Bellevue, WA 98004
Store Description Concentrates on selling Spacious boutique that Department store that
high-end designer bag features the latest features the latest
and shoes trends of high-end trends of high-end
designer apparel and designer apparel and
accessories accessories.
Products Shoes and bags only Apparel and Apparel and
accessories accessories
Why they are Same target market Same target market, Same target market,
competitors (only accessories) and varieties of high end excellent customer
beautiful and classic designer’s brand and service with easy return
interior product choices policy
 

COMPOSITE S.W.O.T
 

Marcella Boutique has compiled a condensed and co-related charting of non-repetitive areas
of strategic interest and implications to our business venture. The emphasis resides in how our
business compares to its major competitors and illustrates the strategies to overcome obstacles as

28  
 
well as those to better leverage company growth. Our top three competitors are Nordstrom, Posh
on Main and La Ree Boutique.

Strengths Weaknesses
Competitors: Competitors:
• Well-known designer brands, such as • Poor customer services
Marc Jacobs, Tory Burch, Juicy Couture • Poor return policy
and others. • Not many sizes
• Financially stable • Not much varieties
• Well-known • Easily find at any store
• Loyal customers Marcella Boutique:
Marcella Boutique: • Less advertisement
• Varieties of famous brand from many • Less sales and promotions
designers. • Less available parking
• High quality
• Unique
• Personal alterations service
• Unique interior
Opportunities Threats
Competitors: Competitors:
• Well known store which means more • With today weak economics, people are
loyal customers not willing to spend so much for clothing
• Great location with the right target or accessories
market • Many competitors in the area
• Online shopping that enable customers • Decline in profit
to shop 24/7 • Rent increase
Marcella Boutique: • Too much overstock items
• Great location Marcella Boutique:
• New store with unique clothing and • Weak economics makes it harder to
accessories will attract new customers attract customers to spend more
• New style, unique and rare item from • Many competitors to compete
world’s designers • Not stable profit during the first few
• Extra alterations services that many months when the business first start
stores do not have
 

Indirect Competition:

Our indirect competitors would be Belle Pastry which is located at 10266 Main Street,
Bellevue, Washington 98004. They provide varieties of food and beverages. Their target markets are
mainly people from 20 to 50 years old. They are our main competitors as they already have their
loyal customers and famous for its cakes. They have attractive way of marketing by having sample of
coffee and cakes in front of their store. People who walk past by the store will definitely attracted by
the smell of the coffee.
29  
 
 

Marketing Environment
Political/Environmental Analysis

http://www.thebluecollarinvestor.com/blog/wp-content/uploads/2008/11/business-cycle-graph-better.jpg

After going through recession, recovery will be the next thing. As our economy is getting
improving now, there is a big possibility that the economy will be back to normal completely for the
next few years.

“Unemployment in Washington dropped slightly in September for the first time in five
months, even as the nation seemed to plunge into recession. The state's jobless rate last month fell
to 5.8 percent from 6 percent in August, a four-year high, the Employment Security Department
said Tuesday. As always, the latest numbers are subject to revision as more data come in, the agency
said. The preliminary figure doesn't mean the state is bucking the slowdown; Washington's jobless
rate for September is nearly one-third higher than it was 12 months ago. However, strong aerospace
and software sectors, combined with the state's relative isolation from the housing meltdown that's
wrought havoc elsewhere, have helped to cushion the fall."The economy is still relatively strong,

30  
 
although it's not immune to what is going on in the nation," said Mary Ayala, chief economist for
the state Employment Security Department. "Growth appears to be decelerating."”25

http://seattletimes.nwsource.com/html/businesstechnology/2008295035_unemployment22.html

From the chart above, it shown that the employment opportunities are getting better from
September 2008, the unemployment rate is decreasing to 4.6% in Seattle-Bellevue-Everett area. This
also means higher chances for business growth when more people are employed and economic is
getting better.

According to Puget Sound Business Journal, “despite a general slowdown in consumer


spending, the wealthy remain a very viable market, particularly in the Puget Sound area. High-
fashion retailers continue to land in Seattle and Bellevue, attracted by high incomes and, surprisingly,
the weak dollar, which makes expansion cheap for European brands. Gucci and Louis Vuitton both
plan new stores in the area, while Hermes is expected to announce a location soon, following
Burberry’s and Seven For All Mankind.”26

As the wealthy people do not get affected by the recession, they are still able to shop luxury
products and these create business growth in Bellevue and Seattle area. Bellevue area is the places
where by many people have a better salaries and education level. More people also came to Bellevue

                                                                                                                         
25
 Angel,  Gonzalez.  “Unemployment  rate  falls  to  5.8  percent."  Seattle  Times  (2008):  n.  page.  Web.  2  Dec  2009.  
<http://seattletimes.nwsource.com/html/businesstechnology/2008295035_unemployment22.html>.  
26
 Lang  Jones,  Jeanne.  "Despite  economy,  shops  arrive  in  Bellevue,  Seattle."  Puget  Sound  Business  Journal  (2009):  
n.  pag.  Web.  7  Dec  2009.  <http://seattle.bizjournals.com/seattle/stories/2008/09/08/story3.html>.  

31  
 
and shop and it draws their attention more here as Neiman Marcus is located right at downtown
Bellevue and Microsoft office is opening which creates more job opportunities. With more people
coming to Bellevue, it will draw more customers to shop at Marcella Boutique.

Seattle, Washington is the economic and cultural capital of the northwestern United States.
Seattle is the leading financial center of the Pacific Northwest and several major corporations base
their headquarters in or near the city. Seattle possesses a modern port located on an excellent deep-
water harbor and has good transportation connections to the outside world. The growth of the
Pacific Northwest helped the economic expansion and sustains Seattle’s growth for the future.

http://money.cnn.com/galleries/2009/news/0909/gallery.g_20_summit/index.html

According to the chart above, it shows that the economy appears to be better in the second
quarter of 2009 and there is a huge differences rate from -6.5% to -1%. With the economy getting
better, it is a good time for Marcella Boutique to open our business in 2010. Less people will be
unemployed and more people are financially stable and getting back their jobs. These leads to an
increase in customers spending which is the main reason our store will be open in 2010, when the
economy getting better.

The U.S. economy appears to be stabilizing after declining for four straight quarters.
According to CNNMoney.com, “Financial markets have shown signs of improvement, and
interbank lending has largely returned to normal. Consumer spending is still shrinking due
to ongoing job losses and difficult credit conditions, but it has been stabilizing over the past

32  
 
quarters. Furthermore, home sales and new home construction are beginning to make a
long-awaited comeback.”27

Many economist believe that there will be economic growth this quarter and business will
recovered throughtout the quarter.

According to CNNMoney.com, “When hunting for cash, desperate small business


owners may find themselves sucked into buying books and software packages promising
"Billions in Free Grants!" from Web sites with names like NeverPayItBack.com, or hiring
consultants who promise to find them gads of money. All they're likely to get, though, are
empty promises. Grants are rare, but the information you need to find and apply for
legitimate ones is publicly available and free. For qualifying businesses, there really are
opportunities to land free money from state, county and city governments, as well as private
foundations and corporations.”28

There is some free cash for the small business to save their store. In Ohio, Tech Columbus
offer $50,000 to stores to see whether if they are business-worthy. With today’s economics, there is
still some other help or ways to save your small business and make sure they pass this hard time.
The government supports local business growth and cares about how they are dealing during this
time.

                                                                                                                         
27
 "G-­‐20  summit:  6  countries  in  recovery."  CNN  Money  (2009):  n.  pag.  Web.  2  Dec  2009.  
<http://money.cnn.com/galleries/2009/news/0909/gallery.g_20_summit/index.html>.  
28
 Zimmerman,  Eilene.  "Free  cash  for  your  business  Small  business  grants  are  rare,  but  they  do  exist.  Here's  how  to  
find  them.."  CNN  Money  (2009):  n.  pag.  Web.  6  Dec  2009.  
<http://money.cnn.com/2009/10/27/smallbusiness/free_money_small_business_grants/?postversion=200910281
1>.  

33  
 
(https://fortress.wa.gov/esd/lmea/countydashboard/URateDetails.aspx?area=53_01_000000&qtype=1&comp=True&area2=&area3=00_00_00000
0)

From the chart above, it can be seen that unemployment rate has been decreasing for the
past few months. Economic are recovering now and more people starting to get back their jobs.

According to Washington Times, economic growth came roaring back in the summer
quarter, registering at a 3.5 percent pace and raising hopes that the economy is entering a recovery
after the longest recession. Growth was the strongest in two years and largely reflected the impact
from two popular government programs -- the "cash for clunkers" auto trade-in program and a
housing tax credit for first-time home buyers. New business are encouraged during this time and
government try to lower taxes and rent for economic growth. 29

http://www.amlife.us/economic_trends.html

                                                                                                                         
29
 Hill,  Patrice.  "Economic  growth  spikes  to  3.5%  in  3Q."  Washington  Times  n.  pag.  Web.  6  Dec  2009.  
<http://www.washingtontimes.com/news/2009/oct/29/government-­‐report-­‐should-­‐show-­‐economy-­‐recovering/>.  

34  
 
Seattle's economic growth has also exceeded that of most other West Coast cities. This
faster-than-average growth is a long-run trend that will affect business cycles and is projected to
continue throughout the future. The Puget Sound Regional Council projects that metropolitan
Seattle will contain 1.6 million jobs by 2010, 1.81 million jobs by 2020, and more than 2 million jobs
by 2030.30

Top 20 Largest Employers in Washington and Number of Jobs Provided Each Year31

Business Name Number


of
Employee
1. UNIVERSITY OF WASHINGTON 27,000
2. SEATTLE-TACOMA INTL-SEATAC 21,000
3. MICROSOFT CORPORATION 20,000
4. BOEING CORPORATION 10,000
5. UNIVERSITY OF WASHINGTON 6,000
6. WASHINGTON STATE UNIVERSITY 5,770
7. BBSI 5,000
8. MULTI CARE HEALTH SYSTEM 5,000
10. SOUTH SEATTLE COMMUNITT COLLEGE 5,000
11. VIRGINIA MASON MEDICAL CENTER 5,000
12. FAIRCHILD AIR FORCE BASE 4,500
13. STEWART TITLE CORPORATION 4,500
14. ST JOSEPH MEDICAL CENTRE 4,400
15. PROVIDENCE SERVICES HOSPITAL 4,100
16. HARBORVIEW MEDICAL CENTER 4,000
17. SACRED HEART MEDICAL CENTER 4,000
18. SWEDISH MEDICAL CENTER BALLARD 3,956
19. SACRED HEART CHILDREN'S HOSPITAL 3,900
20. BATTELLE 3,800

                                                                                                                         
30
 "Seattle  Economic  Trends."  American  Life  Incorporate.  Web.  6  Dec  2009.  
<http://www.amlife.us/economic_trends.html>.  
 
31
 Inglish,  Patty.  "Top  20  Jobs  in  Washington  State."  Hub  Pages.  Web.  6  Dec  2009.  
<http://hubpages.com/hub/Washington_State>.  
 

35  
 
As a conclusion, the economic is getting better and they are recovering so well this year.
With the dropping of unemployment rate and increasing 5 % of US Gross Domestic Product, it
encourages the growth of small business and greater chances of survival as more people are
financially stable and more willing to pay extra money for clothing and accessories.

Tax Issues
Washington State does not have a corporate, unitary, or personal income tax. However, the
majority of Washington businesses are subject to one or more of these major taxes:
• Business and Occupation (B&O)
• Retail Sales
• Use
Business and Occupation (B&O) tax:
The state B&O tax is gross receipt tax. It is measured on the value of products, gross
proceeds of sale, or gross income of the business. Washington’s B&O tax is very low, which is
0.00146% and it is calculated on the gross income from activities which means there are no
deductions for labor, materials, or any other costs of doing business.

Retail Sales tax:

This is Washington’s principal tax source. Business in retail sales collect sales tax from the
customer and businesses also pay retail sales tax on the purchase or rental price of items for their
own use, such as supplies or equipment, which will not be resold or used as an ingredient in
producing a product for sale. Retailer must collect local sales tax based on the destination of the
shipment or deliver. Also, use tax is paid by the consumer when the retail sales tax was not collected
by the seller/service provider.

36  
 
Use tax:

Use tax is a tax on the use of goods or certain services in Washington when sales tax has not
been paid. Goods used in this state are subject to either sales or use tax, but not both. Thus, the use
tax compensates when sales tax has not been paid. 32

Retail Sales/Use Tax


Effective dates 11/01/09 - 11/30/09
City......................................... Bellevue
County....................................... King
State Sales and Use Tax .065
Local City/County Sales and Use Tax .30 +
Total tax rate .095

Licensing Cost
City of Bellevue Fees
General Business Registration $30
Master Business Application $15
Register Business as trade name $15
33

Social Issues
Bellevue’s location is very diverse with many different races living in the area. It is
surrounded with many different best schools around Bellevue, such as Bellevue College, City University
and Eastern University.

“Bellevue is nationally recognized for its award winning schools, innovative curriculum and
exceptional teachers. In a May 2008 edition of Newsweek, all five Bellevue high schools appeared
prominently in the top 200 in a list of over 1,200 “America’s Best High Schools,” according to Jay

                                                                                                                         
 
32
 "Business  Tax  Guide  Washington  State  Department  of  Revenue  2009."  Web.  6  Dec  2009.  
<http://dor.wa.gov/Docs/Pubs/ExciseTax/FilTaxReturn/BusTaxGuide.pdf>.  
33
 "Business  &  Professional  Licensing."  Wa  State  Licensing.  Web.  10  Dec  2009.  
<http://www.dol.wa.gov/business/>.  

37  
 
Mathews’ Challenge Index. International School boasted an impressive rating at #10, with Newport
High at #31, Interlake at #45, Bellevue High at #63, and Sammamish High at #167. 34

Bellevue’s innovative school curriculum is designed to give students a competitive advantage.


Successful learning initiatives, such as full-day kindergarten, a full complement of Advanced
Placement courses, an International Baccalaureate program, world language studies, and extensive
collaboration with partners in higher education and educational research give Bellevue students the
tools they need to be successful in college and in the workforce.”35

With many good schools around, it will draw attentions to parents and family to move to
Bellevue to give their kids a better education and these will lead to an increase of population and
create potential customers for Marcella Boutique.

Educational attainment continues to be a primary factor influencing the quality of life in


Bellevue. The percentage of the population in Bellevue with higher education degrees is consistently
higher than Seattle, as well as nationwide.

• 59% of residents have attained Bachelor’s Degree or higher.

• 58% of employees work in management or professional services jobs.36

Bellevue is best known for their highly skilled and quality of workforce. It provides
advantage for business in attracting employees. By offering education opportunities and workforce
training, and professional development, it draws attention of the people to work here and creates
opportunity of Marcella Boutique to expend their target market.

Salaries and employment opportunities make Bellevue a welcome place to work and live.
Bellevue’s median and average household incomes are higher than median and average incomes for

                                                                                                                         
34
 "Education  Resources."  Bellevue  Chamber  of  Commerce.  Web.  10  Dec  2009.  
<http://www.bellevuechamber.org/incs/process_f.asp?uid=122784>.  
35
 "Exceptional  Education."  Bellevue  Washington.  Web.  2  Dec  2009.  
<http://www.villageprofile.com/washington/bellevue/11/topic.html>.  
36
 "Higher  Education."  Bellevue  Washington.  Web.  2  Dec  2009.  
<http://www.villageprofile.com/washington/bellevue/11/topic.html>.  

38  
 
King County and the nation as a whole. The 2006 American Community Survey estimated
Bellevue’s median household income at $76,757 and average household income at $102,531.37

With such a high salary rate, it shows the high standard of living in of the people in Bellevue
community. They are willing to buy luxury clothing and accessories as they feel the importance of
the product quality. This also means that there is a need of opening high luxury boutique around this
area.

Source: US Census Bureau, Population Estimates Program


(http://factfinder.census.gov/servlet/DTTable?_bm=y&-geo_id=16000US5305210&-ds_name=PEP_2008_EST&-
mt_name=PEP_2008_EST_G2008_T001)

Bellevue had an increase of 4% in birth rate from the 2003 (62%) to 2008 (66.4%). It also
has a population growth of 7.86% since the year 2000. The population in Bellevue is not only
increasing experienced, but also the city itself is growing and improving. With growing population,
means more potential customers to be targeted for Marcella Boutique.38 Higher educational level
also means higher chances of getting a better job that give them more than enough income to shop
for luxury clothing and accessories.

According to City of Bellevue, “The WASPC statistics released Tuesday indicate that of the
nine largest cities in the state, Bellevue in 2006 had the lowest crime rate -- 38.1 crimes per 1,000
residents. The next lowest crime rate was in Vancouver, 45.8 major crimes per 1,000 residents. The
rate in Seattle was 75.9 crimes per 1,000 residents. Montgomery said the WASPC statistics provide
                                                                                                                         
37
 "Bellevue  Community."  Village  Profile.  Web.  10  Dec  2009.  
<http://www.villageprofile.com/washington/bellevue/06/topic.html>.  
38
 "Center  for  Health  Statistics  Abortion/Pregnancy  Data."  Washington  State  Department  of  Health.  Web.  11  Nov  
2009.  <http://www.doh.wa.gov/ehsphl/chs/chs-­‐data/abortion/viewdown.htm>.  

39  
 
law enforcement agencies with a snapshot of crime trends, which they can use when determining
where to allocate resources.”39

Bellevue has a low crime rate compared to other cities in Washington. From the range 1-10,
Bellevue’s crime rate is at 3 compared to 7 in the Seattle area. The location in Bellevue is safe as it
has a police station nearby and makes it the perfect and safe place to open Marcella Boutique.
Customers do not need to worry when they are shopping and they could shop at any time without
worrying of robbery or their safety when it is dark outside as the location of Marcella Boutique will
gives them the safest shopping experience.

Compared to the rest of the country, Bellevue's cost of living is 61.26% which is higher than
the U.S. average. There are 63.4% of the populations in Bellevue that are married with children
under 18 years old and 22.2% without children. Most of these people are living in their own house.
There are 28 % of the people living in a lease or owned apartment and/or condos. With more
people owning their house, means that they have more stable income and this will encourage
business growth when the population has extra money to spend on other things besides basic
necessities.

Religious Issues

Religion  
Catholic  
Protestant  
LDS  
Bap[st  
Episcopalian  
Pentecostal  
Lutheran  
Methodist  
Presbyterian  

                                                                                                                         
39
 "Bellevue's  crime  rate  continues  to  drop."  City  of  Bellevue.  Web.  2  Dec  2009.  
<http://www.ci.bellevue.wa.us/crime_rate_drop_2006_news_release.htm>.  

40  
 
Bellevue has a cosmopolitan culture with people following different religion and beliefs.
37.26% of the people in Bellevue, WA are religious, meaning they affiliate with a religion. 16.15%
are Catholic; 11.74% are Protestant; 2.39% are LDS; 4.52% are another Christian faith; 1.87% in
Bellevue, WA is Jewish; 0.13% is an eastern faith; 0.47% affiliates with Islam.40

Bellevue’s diverse culture is complicated as many people influence each other’s culture,
especially because of the intermarriage. It is like melting pots that collect new things together and
began to accept new way of living. Things are all going global and people with different culture and
religions are moving around places and influence each other and bring a new vision of culture to
different places.

With diverse culture and religions in Bellevue, it benefits Marcella Boutique as we carry a
varied selection of clothing and accessories from the world’s famous designer to satisfy each
customer. Holiday seasons such as Christmas and New Year will draw big customers from different
places such as Seattle, Everett and Mercer Island to come to Bellevue to shop for gifts.

Cultural Issues
Cultural experiences and family entertainment are abundant in Bellevue and the nightlife is
alive with new opportunities.

The Bellevue Arts Museum Fair, a nationally recognized event, is held each July and attracts
more than 300,000 visitors to downtown Bellevue. The fair includes more than 300 exhibitor
booths, art demonstrations, exhibitions, multiple ethnic food options and a kid’s fair. Additional
community events include a Family 4th of July, the Magic Season, and the Bellevue Collection’s
Snowflake Lane and New Year’s Celebration Lane.

The Bellevue Collection is also host to Fashion Week, a celebration of fall fashion with
runway shows, trunk shows, seminars and VIP shopping. A culinary and Washington wine event
features tastings, pairings, and cooking demonstrations in the spring.

Music has deep roots in Bellevue, and the Bellevue Downtown Association presents the
Bellevue Jazz Festival featuring an elite lineup of Northwest and national artists for free and ticketed
                                                                                                                         
40
 "Sperling's  BestPlaces."  Bellevue,  Washington.  Web.  11  Nov  2009.  <http://www.bestplaces.net/city/Bellevue-­‐
Washington.aspx#>.  

41  
 
performances in the spring. The Theatre at Meydenbauer Center hosts an array of productions by
local, regional and national performing arts groups.

Nightlife is alive in Bellevue as well. Lincoln Square Cinemas exhibits the latest in quality and
sophistication while remaining true to the concept of the movie palaces of old. Lucky Strike Lanes
and The Parlor Billiards & Spirits offer entertainment with an upscale spin and fine food and drink
while you play. Other restaurants feature entertainment, jazz, piano bars and interesting and
engaging entertainment well into the evening, catering to residents and workers alike.41

Technological Advances
With today’s technologies, Internet is everywhere and everybody is using it. It is so
convenient these days that you can even shop through the phone. For Marcella Boutique, customers
can order via the phone or online shop through our websites. It is the fastest way to shop and
convenient as well.

Facebook is a good way for social networking, connecting people and building relationships
with potential customers. Marcella Boutique will have a Facebook account with all our customers on
it. We will also invite events and offer promotions through websites and Facebook.

For the store inventory control, it will be right at the cash register with our point-of-sale
(POS) software and equipment. Our POS software records each sale when it happens, so inventory
records are always up-to-date. We will get more information about the sale than we would gather
with a manual system. By running reports based on this information, we will be able to make better
decisions.

Our POS equipment includes electronic cash drawers, bar-code scanners, credit card readers,
and receipt printers. Our POS software package includes integrated accounting modules, including
general ledger, accounts receivable, accounts payable, purchasing, and inventory control systems. In
essence, our POS system is an all-in-one way to keep track of our business cash flow. The reporting
capabilities of our POS programs include sales, costs, and profits by salesperson or by category for
the day, month, and year-to-date.

                                                                                                                         
41
 "Wahington  Bellevue."  Arts,  Culture  and  Nightlife.  Web.  2  Dec  2009.  
<http://www.villageprofile.com/washington/bellevue/09/topic.html>.  
 

42  
 
Having up to date software and computer systems will benefit the store and increase profits
as we will be able to track our inventory easily and track customer’s buying patterns before ordering
the stock.

Environment Issues
Consumers are becoming more aware of their overall impact on our communities. Shoppers
are developing more of a green attitude as a way of life and Marcella Boutique needs to be there to
meet those needs. By implementing sustainable practices, it can be an efficient way to save money in
the process.

Marcella Boutique will be a green boutique that encourages reuse, reduce and recycle. We
will use all earthy and 100% natural cleaning products from cleaning residues on counters, floors,
sink, and others. We will reduce paper transactions by going digital for bill payment, vendor
ordering, invoices, online banking, e-mail and faxing directly from the computer and also purchasing
energy-efficient PCs, printers, and other equipment with the Energy Star label. To encourage
customer to go green, we will use 100% recycled bag and paper for the receipts. The store will
ensure a low-energy or electricity usage. During winter, the heater will turn on/off automatically for
every 45 minutes. This will avoid over usage of electricity. The heater will be turned on during
business hours only, which are from, 9A.M. to 6P.M.

The store will have a policy for the employees in order to conserve energy by instituting a
policy to turn off equipment when not in use. Other ways to conserve are:

• Use ceiling fans to reduce the use of air conditioners.


• Insulate hot water heaters and lower the temperature.
• Switch to low-energy lighting and compact fluorescent bulbs.
• Put outdoor lighting on timers.
• Install air hand dryers in the restrooms.
• Use low-flow toilets and urinals.

43  
 
• Set PCs to power-down when not in use.42

Promotional Plan
Image Statement

Marcella Boutique is located on Main Street in the heart of Old Bellevue, Washington. This
elegant apparel and accessories gallery is dedicated to selling luxury clothing created by the fashion
world’s most famous designers. Products are beautifully displayed in gold-framed niches like
decadent artwork throughout feminine setting. Customers love to shop at Marcella Boutique for its
charming atmosphere, personal attention and varieties of product selection.

Marketing Mix:

• Product
Marcella Boutique is a high end women’s apparel and accessories boutique. The boutique
concentrates on having a unique style that represents the characteristics of our customer. We
are carrying some new designer’s brands which not many retail boutiques will carry. The
products are all high quality product which is the same like any upscale department store but
with more varieties of brand and style. The designers we have are for apparel, shoes and bag
are; Herve Leger, Mphosis, Diane von Furstenberg, Anya Hindmarch, Theory, Marc
by Marc Jacobs, Elizabeth and James, YSL, Alexander Wang, Derek Lam, Alice
+Olivia, Jill Stuart, Marc Jacob, Longchamp, Tory Burch, Jimmy Choo,
Twenty8Twelve and Valentino. We will also carry 100% organic materials from Eco-
Ganik, which is a contemporary and trend driven to complement the hip, carefree, and eco-
conscious lifestyle of the consumers; combining soft jersey basics, feminine tunics, dresses,
fashion-forward knit and woven tops, as well as woven and knit bottoms. By doing so, our
eco-conscious consumer will have more choices of selecting certain brands of clothing.
Marcella Boutique concentrates more on carrying day wear to formal dress, blouse, heels,
                                                                                                                         
42
 Waters,  Shari  .  "Going  Green:  Tips  for  Retailers  Ways  to  Reduce,  Reuse  and  Recycle."  Web.  11  Nov  2009.  
<http://retail.about.com/od/storeoperations/qt/green-­‐retailing.htm>.  

44  
 
and flats and totes bag. We try to make our product to be functional and can be worn at any
events. Also, the quantity of the product will be limited as we try to make our product as
unique as possible.  
 
 
 
Categories:  
Tops: Shirt/ T-shirt/Blouse that is simple, elegant and feminine.
Dress: One piece dress with different styles from casual to formal depending on the season
and trend.
Skirt: Casual to formal skirts that are unique, feminine and elegant (Bubble
skirt/Mine/Pencil Skirt/High-waist skirt)
Outerwear: Jacket, vest or coat
Pant: Skinny pants/Jeans/Leggings
Evening wear: Party wear or cocktail dress for special events
Flats/High heels shoes: Formal to casual styles that match with the dress or tops
Tote bag: Casual to formal tote that can be worn at any occasions
• Price
The products we are carrying are from all over the world. It will be shipped from many
different countries like Singapore, China and Taiwan. These products will be mid-high
quality products and price. Designer’s products (Italy and USA) are mostly high price line.
The price range for clothing and accessories is from $80-$2500.

45  
 
700  

600  

500  

400  

300  
Blouse  
200   Bag  
100   Shoes  

0   Dress  
50%   20%   member  
Store  Price   Pres[ge  
discounts   discounts   discounts  
Blouse   250   300   350   400   550  
Bag   40   80   120   200   300  
Shoes   200   280   400   500   600  
Dress   200   250   300   400   500  

Based on the chart above, it shows that most of the people that come in to Marcella
Boutique are interested in buying prestige and fashion forward goods. They are not much
looking for out of season trend, which are the sale items. They are willing to pay more for
the quality and the brand.

Products &Price:

Totes: $300-$2500

   

Tops &Blouse: $ 80- $400

46  
 
                                                                               

Shoes: $80- $400 Dress: 150-$1000 Outerwear: $250-$1500

43
                                         

• Place

Marcella Boutique location is at 10246 Main St Bellevue, WA 98004. It is around Old


Bellevue town which is the largest street that people will pass by for dinner or shopping. Our
vendors mostly are from United States and some from foreign country like China, Taiwan
and Singapore. Products from United States will be ordered by phone, email or tradeshow
from their warehouse itself. After the order, vendors will ship the order by freight train or
truck to our store. Vendors from overseas will send the order by cargo ship or by air
(depending on how fast we need the products). Vendors might have contract with MidWest
distribution Company for distribution of products from the warehouse, UPS, FedEx, or
USPS to deliver the package to retail boutique.

Promotion Mix:

• Advertising

                                                                                                                         
43
 www.net-­‐a-­‐porter.com  

47  
 
Marcella Boutique will start the advertising approximately three months before the grand
opening. We will send out invitations and advertisement to every resident and company
around Old Bellevue town twice a month and weekly for flyers.
Types of advertisements we will use:
1. Newspaper:
♦ Seattle Times Newspaper
♦ The Stranger Newspaper
2. Magazine:
♦ D List Magazines
♦ Seattle Home & Life Magazines
3. Poster
4. Flyers
• Direct Marketing
Following our grand opening, we will conduct a direct-mail campaign to target consumers
that we have signed up through our in-store mailing program. The direct mailers will be
comprised of 2,000 full-color postcard mailers. Each will include at 10% coupon. We will
offer promotional discounts and seasonal and clearance sales throughout the year. In the
catalog, we will show promotions and events along with the coupon.
• Public Relations
We will partner with local organizations such as the Chamber of Commerce and Downtown
Merchants Association as often as possible. These organizations are dedicated to promoting
local businesses within our community and sponsor several events downtown each year. As
a member of these organizations, Marcella Boutique will gain exposure, make business
contacts, and will benefit from Chamber and Association advertising, Web site promotions
and events. These strategic partnerships will allow us to increase on publicity for local
events, as long as they are within our targeted demographic. Marcella Boutique's initial
marketing efforts will remain local as we establish a presence in our community. These will
rely heavily on local print and broadcast media coverage, traditional advertising, signage, a
direct mail marketing campaign and networking. We will also support local artist by having a
silent auction of the painting collection. Also, we will invite Seattle Magazine and Seattle
home & life magazine to be our sponsor for the grand opening.

48  
 
We will hold a drawing for a $100 shopping spree and fashion consultation. Entry collection
will start at the grand opening and continue throughout the week. The Chamber of
Commerce and the Downtown Merchants Association will promote the event in local
newspapers and radio advertising.
• Personal Selling & Sales promotion
Marcella Boutique will hire two full time employees in the store. One person will be
responsible for operating the cash register and loss prevention. The other person will be
responsible for customer service and inventory control. Opening and closing the stores will
be owner and full time employee’s responsibilities. All of our employees will be professional
and well-trained. We will invite spokesperson, mostly have experienced in retail selling or
boutique owner, to share their experience with the employees and give tips for better selling
and boutique operations.
We believe in serving the best for customer, therefore, we will have a personal tailor in the
store. It is more convenient for the customer to fix their clothing while they are shopping.
Hiring the best employee and giving the best quality services to customer, will build good
relationship between the customer and the seller. Treating employees with equality and
respect will leads to better working environment and relationships. Also, vendor and buyer
need to maintain long-term good relationship to build trust and leading to a cheaper product
price and promotions.

Types of promotions:
 Loyalty Membership Card Need to spend over $1000 in a single receipt to get it (10%
off for every purchase)
 Anniversary sales
 Private Label sales
 VIP sales
 Holiday sale: Thanksgiving, Christmas, and New Year
 Student Discounts (10% off)
 Birthday events (20% off )
• Internet

49  
 
As the Internet has become a staple of American life and retail merchandising, Marcella
Boutique will have a viable Web site. We have secured the domain name
MarcellaBoutique.com and will begin site development as funds become available. Further,
we plan to hire an established Web designer that will accept modest pay. Also, we intend to
showcase our brand, our clothing and provide customers with the ability to purchase items
online. As the site progresses, we will include features such as fashion advice, interviews,
newsletters, and Internet-only specials. Eventually, we hope to establish online social
community where women can gather and discuss topics of the day, network and share
clothing secrets. Marcella Boutique will also have a Facebook account with all our customers
on it. We will invite events and offer promotions through websites and Facebook.

Grand Opening
Marcella Boutique’s grand opening will be on December 8 2010, at 12P.M. It will be located
at 10246 Main St Bellevue, WA 98004. We will provide lunch and beverages. Seattle Magazine and
D List magazines will be invited as our guests of honor.

On the grand opening day, we will have a one day sale promotions, which is, whoever
spends $300 and above, will get $50 gift card and free membership card instead of paying $20 which
they can use for their next purchase with us. At the end of the day, we will provide goodies bags for
all of our guests and 3 ruffle prizes for the lucky winners.

At the beginning of the grand opening party, our guests of honor, Seattle Magazines and D
List Magazines, will give a short speech. After that, lunch will be served and people can enjoy the
music while shopping at the store.

50  
 
Tactical Plan
12 months prior grand opening

December 2009:

• We need to find location


• Meeting with owner and sign lease
• Make sure marketing plan (budget plan) is complete
• Getting the capital to ensure secure in financial(either from bank or family)
• Setting up the image and layout of the store so we can talk to interior designer
• Apply for licensing once we done with the leasing

January 2010:

51  
 
• Working with interior designer for designing the store layout and matching the image of the
store
• Getting the license
• Make sure to contact with vendors and plan out what to order with them

February 2010:

• Working with contractors


• Start buying furniture for the store
• Planning for the decoration
• Plan for grand opening

March 2010:

• Contacting with Seattle and D List magazines for advertising


• Starting interior and exterior of the boutique
• Planning for the advertisement for the store
• Purchase supplies from vendors

April 2010:

• Hiring employees
• Deciding VIP List and invitation list for grand opening
• Planning for food and beverages
• Print out advertising and invitations

May 2010:

• After hiring, it requires immediate training to ensure employees are fully trained before the
grand opening day
• Find sponsors and invite them for grand opening
• Check supplies with vendors

June 2010:

52  
 
• Keep track of advertising and invitations
• Decide what to do for grand opening and what supplies are needed
• Keep working on store layout

July 2010:

• Sent out mailer to get ready for grand opening


• Plan out for grand opening events
• Purchase supplies needed for the events

August 2010:

• Cleaning up the store after finishing the decoration


• Getting the supplies from vendors and unpack
• Check with VIPS and sponsors
• Set up schedule for employees

September 2010:

• Weekly ads with promotion coupon (10% off for 500 purchase) will start until the opening
of the store
• Print out Catalog

October 2010:

• Large weekly ads will start until the grand opening day

November 2010:

• Preparing the event


• Check with caterer for the food and beverages
• Send out all invitation
• Large weekly ads used

53  
 
December 2010:

• Set up for grand opening


• Preparing prizes and goodies bag for guests
• Grand opening event!!!!

Tactical Plan
12 months after grand opening

December 2010:

• Sent out thank you notes for the guests


• Sending email for clients
• Setting up clientele base
• New promotion plan
• Weekly ads
• Online shopping

January 2011:

• Sent out catalog ever changing seasons


• New inventory stock

54  
 
• VIP sales starting
• Weekly ads
• Online shopping

February 2011:

• VIP sales
• Birthday sales
• Sending out new mailers for new events and promotions
• Monthly financial report
• Season sale
• Weekly ads
• Online shopping

March 2011:

• VIP sales
• Birthday sales
• Weekly ads
• Online shopping
• Monthly financial report

April 2011:

• VIP sales
• Birthday sales
• Monthly financial report
• New inventory stock
• Weekly ads
• Online shopping

May 2011:

• VIP sales
• Birthday sales

55  
 
• Online shopping
• Monthly financial report
• Season sale
• Weekly ads
• Send out catalog for clients

June 2011:

• VIP sales
• Birthday sales
• Online shopping
• Monthly financial report
• Employee meeting
• New inventory stock
• Weekly ads

July 2011:

• VIP sales
• Birthday sales
• Monthly financial report
• Weekly ads
• Online shopping

August 2011:

• VIP sales
• Birthday sales
• Monthly financial report
• Weekly ads
• Online shopping

September 2011:

• VIP sales
• Birthday sales

56  
 
• Online shopping
• Weekly ads
• Send out catalog for customers
• Planning promotion and events for anniversaries
• Monthly financial report

October 2011:

• VIP sales
• Birthday sales
• Weekly ads
• Online shopping
• Monthly financial report
• Sending out ads for anniversary sales and promotions

November 2011:

• Preparing for anniversary events


• New inventory
• Season sale
• Weekly ads
• Birthday sales
• Online shopping
• Monthly financial report
• Sending out ads for anniversary sales and promotions

December 2011:

• Setting up new marketing plan to improve profits


• Monthly financial report
• VIP sales
• Online shopping
• Employee meeting
• Birthday sales
• Anniversary!!!!

57  
 
 

Reach and frequency plans

Media Reach Frequency Types Monthly cost Yearly cost

D List 15,000 per month Monthly 2/3 page $897 $10,764


Magazines

Stranger 35,000 view per Weekly ½ page $220 $2,640


day

Seattle Time 75,000 view per Weekly 60” $413.80 $21,504


day

Flyers 3,000 view per Weekly 8.5x11" $765 $9,180


month

TOTAL: $ 2295.80 $44,088


44
 

 
                                                                                                                         
44
 "Seattle  Times  -­‐  WA  -­‐  Newspaper  Advertising  Costs."  Resources  for  Entrepreneurs.  Web.  25  Nov  2009.  
<http://www.gaebler.com/Seattle+Times-­‐WA-­‐Newspaper-­‐Advertising-­‐Costs++10951>.  
"Stranger  -­‐  WA  -­‐  Newspaper  Advertising  Costs."  Web.  25  Nov  2009.  <http://www.gaebler.com/Stranger-­‐WA-­‐
Newspaper-­‐Advertising-­‐Costs++10955>.  
D  List  Magazines.  Web.  25  Nov  2009.  <http://dlistmagazine.com/MediaKit09Web.pdf>.  
Flyers  Price  List.  Web.  25  Nov  2009.  <http://www.coloritprinting.com/cdnnew/flyers/pricelist_cdn.html>.  
 
 

58  
 
 

Pricing Plan

Pricing Strategy

• Promotional Pricing

• Premium pricing

• Price skimming

Pricing Objective

• Increase sales volumes

• Build store traffic

• Company growth

• Customer satisfaction

Marcella Boutique carries world famous designer products from all over the countries.
We offer the highest quality of products and services. Our pricing strategies are premium
pricing and price skimming. We use a high price as we select our product carefully and make sure
that they are unique and different from our competitors. Our products will not be easily
found at any stores especially our apparel products. People who love unique style will want

59  
 
to shop with us as we are the only one who carries brands from Singapore and other
countries. The high price tends to attract new competitors to the market and with these we
need to use promotional pricing in order to keep them away. Promotional pricing will includes
10% off when they purchase $500 and above in a single receipt. For out of season sale, there
will be buy 1 get 2nd 30% off.

Marcella Boutique business objectives are all about increasing the profit and ensure
company growth. To make sure the Boutique keep continues, we will need to increase sales from
month to month. We will need to keep sending out advertisements and flyers in order for
customers to keep coming back. Different promotional events like discounts and
membership special events will build store traffic and definitely increase growth. Customer
satisfaction is another important thing in order to make our business grow. Marcella Boutique
will ensure that they employees are well-trained and able to serve the best services for the
customer. Our customer is the main priority and they are the ones who keep our business
growing, so we will give them extra services like personal tailoring for convenience and our
employees/stylist will help them to mix and match the clothes during shopping.

Stock Turnover
The rate of stock turnover for Marcella Boutique is 3.7 and 4.3. According to “Mathematics
for retail buying” book:

Stock turnover is regulating the dollar investment of stock in relation to sales to obtain a
satisfactory balance between these two factors.45

Formula:

Stock turnover= Cost of Goods/ Average Inventory or Sales/ Inventory

Markup &Markdown

                                                                                                                         
45
 Kepper,  Bette.  K.  Mathematics  for  Retail  Buying  .  5TH.  2006.  Print.  

60  
 
Product Standard Markdowns Markdowns Markdowns
Category Markup 30 days 60 days 90 days
(online only)
Dress 300-400 % 20% 30% 50%
Tops 300-400% 20% 30% 50%
Pants 300-400% 20% 30% 50%
Shoes 300-400% 20% 30% 40%
Bags 100-200% 10% 20% 30%

Our markup price for apparel will be at least 70-100% while for the bag; it will be at least
from 50%. As our store carries high end luxury products, we need to ensure that the prices match
the products quality. We will have our financial report monthly and decide the changes needed for
the price mark up and mark down. With the most product category we sold, we will have a higher
percentage markup on that category of products.

Our first markdown will be 20 %, starting within a month so as to attract more customers to
purchase the products. By 60 days, if the product still cannot be sold and we still have many
inventories in stock, we will mark it down to 30%. This is for those customers who are waiting to
get a better deal in price. By 90 days, we will have new inventories coming in and we do not want to
have a lot of stock in storage room, we need to have final mark down by 50% for the old inventories
to ensure that they sale sections will be gone soon and ready to have new products on the floor.

During holiday season, we will try to put our over season products on the floor and having a
higher markdown percentage. By doing all of the above, we will attract more customers that are
looking for a better deal.

Term of Payment
Marcella Boutique will have the same agreement with every vendor: 5/10 N30

5% discounts off the billed cost is permitted if the invoice is paid within 10 days following the date
of invoice. The payment of the net amount is required between the 11th and 30th day following the
date of invoice.

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Distribution Plan
We will offer online shopping through our websites and in-store shopping. For those people
who prefer ordering through phone will also be accepted. For online and phone shopping, we will
sent the products with coupons and promotions through the mail with UPS. For those people who
interested in buying products that are not in stock anymore, we could order it for them and send it
to them.

Forms of payment
We prefer customers to pay with cash so as to decrease the amount of money needed or
paying the bank. For in-store, phone and online shopping, customers could use any types of credit
cards to pay.

Marcella Boutique accepts different payment methods:

• VISA
• Master Card
• Debit Card
• Cash
• American Express

At the end of every week, we will check our account and with the bank to ensure every payment that
we go through is correct.

Means of shipping:
Marcella Boutique will use UPS for shipping to all over the cities. We will have a contract with UPS
yearly to ensure guarantee shipping for the customers.

• Membership= Free shipping for standard rate


• Non-member= Regular rate

STANDARD Order will be arrived within 5 business days


from the days it shipped
EXPRESS Order will be received within 2 business days
from the days it shipped

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OVERNIGHT Order will arrive the next business days if you
place your order by 12:30P.M.

$50 or less $50-250 Over $250


STANDARD $5.95 $7.95 $9.95
EXPRESS $10.95 $12.95 $14.95
OVERNIGHT $15.95 $17.95 $19.95
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Inventory Control
The following section will identify the proposed operational plan for Marcella Boutique.
Included are the general operating procedures, human resources, facilities maintenance, and
management functions and customer services requirements of the business.

Buying and tracking stock on hand

In order to provide a selection, we will carry varieties of clothing brand from world’s famous
designer. We will control inventory right at the cash register with Retail Pro point-of-sale (POS)
software and equipment. Our POS software records each sale when it happens, so inventory records
are always up-to-date. We will get more information about the sale than we would gather with a
manual system. By running reports based on this information, we will be able to make better
decisions. We will count our inventory once every two weeks (the count cycle). Processing
paperwork and placing orders with our vendors will take two weeks (the order cycle). The order will
take two weeks to get to us (delivery cycle). Therefore, we will need six weeks worth of inventory
from the first day of the count cycle to stay in operation until our merchandise arrives. We will have
on hand a six-week supply of inventory.

Our POS equipment includes electronic cash drawers, bar-code scanners, credit card readers,
and receipt printers. Our POS software package includes accounting modules, including general
                                                                                                                         
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 UPS  Shipping.  Web.  10  Dec  2009.  <http://www.ups.com/content/gb/en/shipping/index.html?WT.svl=SubNav>.  

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ledger, accounts receivable, accounts payable, purchasing, and inventory control systems. Also, our
POS system is an all-in-one way to keep track of our business cash flow. The reporting capabilities
of our POS programs include sales, costs, and profits by salesperson or by category for the day,
month, and year-to-date.

Projecting seasonal needs

• We will ask customer’s opinion in a survey form about what style or trends that they want to
see in the store.
• We will look at WWD, Vogue, In Style Elle, and Glamour magazines to see what styles is
in trend and TRENDZINE forecasting magazine to see what type of fashion is going to be
in trend for the next seasons.

Quality Control

We will use Hyper Quality company services for our store quality control.

Human Resources
There are certain requirements in order to work for Marcella Boutique. The sales person
needs to be at least 18 years old and able to manage the store and communicate well with the
customer.

Staffing:
On weekdays, the store will be open from 9 A.M. to 6 P.M. and be staffed by Mellinda
Marcella and two full time employees. On weekends, a part-time worker will be hired to work in the
store from 10 A.M. to 5P.M. An additional part time worker will be hired during the summer
months so that the owners can reduce the amount of time they spend in the business during these
months. Marcella Boutique will hire two full time employees in the store. One person will be
responsible for operating the cash register and loss prevention. The other person will be responsible
for customer service and inventory control. Opening and closing the stores will be owner and full
time employee’s responsibilities.

Hiring Qualifications:
• Driven to deliver superior service by exceeding customer expectations

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• Demonstrated ability to develop relationships with customers and co-workers
• Able to work well as a team player in a fast-paced, energetic environment
• Proven ability to plan, set and achieve goals
• Strong organizational and follow-up skills
• Excellent verbal and interpersonal skills
• Presents a professional image in appearance, words and actions
• Be a self-starter and use good judgment in all situations

Training:

Sales training is the responsibility of the sales trainer. Guest speakers (experienced
salesperson/ boutique owner/experienced in retail sales) are brought in to give advanced sales
training. Selling skills are discussed with the idea of solving problem areas the sales people are
encountering. With this information along may help all of the force. Learning and reminding the
sales force of the selling basics should be a consistent part of ongoing sales training. Sales training
will include many elements such as, product knowledge, sales processing, finding potential clients
and sales situations and techniques. Mastering the techniques of sales is beneficial to the business.

Firing:

The exit procedure for the sales people will be if they disobey the store’s policy like stealing,
attacking customer physically, sexual harassment, poor work performance, attendance problems, and
behavioral issue (unprofessional manner). Disobeying rules for three times in a row will results in
getting fired.

Tax:

Fiscal management will be closely monitored by the accountant, Kathy Chalmers to ensure
success of the business. All computations for mandatory accountings as well as federal, state, and
local financial obligations will be handled by the accountant to ensure compliance.

Facilities maintenance:
Janitorial

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Marcella Boutique will have Argus Janitorial Services to do general cleaning (window and wall), floor
care and carpet cleaning twice every year. Restroom, storage room and hardwood floor will be
cleaned by the employees every day after the store closed at 6PM.

Equipment

The store will be equipped with vacuum cleaner, floor wiper, and all equipment for cleaning the
restroom like bleach cleaner, tissue paper, and cleaning cloth.

Security

For securities, our store will be equipped with wireless alarm systems, checkpoint and sensormatic
sensor tags, retail security towers, and anti-theft cameras. We will use ADT Security systems that offer
retail security solutions from Electronic Article Surveillance (EAS), video surveillance, remote
viewing, video analytics, intrusion, and fire monitoring. ADT Security solutions will help to better
manage stores and improve profits.

Management functions:
• Every 3 months Marcella Boutique will do trend forecasting research every seasons for next
year’s trend and sales. Employees are responsible in giving ideas and feedbacks. We also
might put customer’s opinion from surveys under considerations.
• We will use TRENDZINE trend forecasting book for the trend analysis and make sure to
have fashion forecasting meeting at least once per month.

Customer Service:
Return and exchange policy:

All merchandise must be returned to us in the same unworn condition that within 30 days in an
original receipt. In order to exchange unworn goods, it must be within 14 days in an original receipt.

Refund:

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Upon the receipt of the returned goods, we will thoroughly assess the contents of the package.
Marcella Boutique reserves the right to deny credit, issue store credit or charge a 20% restocking fee
if the merchandise does not meet the return policy guidelines.

Price Adjustment:

If an item goes on sale within 14 days of purchase, Marcella Boutique will honor a one-time price
adjustment for store credit only. Unfortunately, we cannot issue credit card refunds on price
adjustments.

Complaints:

Our managers will take care of the complaint in the store. Marcella Boutique will acknowledge
complaint within 5 working days of receipt of the complaint. We will investigate it and send a final
response within 4 weeks of receipt of the complaint (online).
 

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