Grooves Business Description

Business description

Overview of industry

In the 1960’s, college students across the United States began forming a counter- culture that
challenged the social norms and political attention of many. The term “hippie” was coined from “hip” and slapped on any person who was rising against the machine and protesting the mainstream culture. These people dressed, and had very different walks of life. There culture became extremely popular later in the mid early 2000’s especially to modern times. “Trading posts” offer the clothing worn years ago. These pop up shops, such as Grooves, began gaining front race in urban, liberal areas such as Asheville, NC and north western states, (CA, NV).

Mission statement

Grooves wants to provide a calming

and friendly environment that caters everyone regardless of differences. Through clothing, and accessories, we believe we can help improve the way people express themselves culturally, and in any other way seen fit.

Business type, legal structure, location…

Grooves is a merchandising company. Products from other producers are sold in stores, as well as the store based brand.

Legally, merchandise businesses must have a business license to sell other trademarked goods.
If you buy from trademark corporations, you can get a resale license that omits you from having sales tax on bought goods with the goal of reselling them.

Grooves is located in Marin County, California.

We are close to the beach, that draw tourists and regulars alike.

Product/ services/ why and what makes it unique
Grooves offers a plethora of bohemian and culturally rare items that are not found in other chain department stores. Anything from shoes, to oil diffusers and hammicks, we offer one of the widest selections of goods in the regions. These products fit a certain lifestyle, and are a necessity to anyone leading it to the fullest. Our stores represent our different and unique style by displaying our beliefs and ethics through every item we have on the shelves. Take one look around and see that there is truly no place like it.

Position/Pricing strategy
We believe that the consumer has the power, so why charge them more? All products and goods sold are local or made within America, supporting local and self sustaining economy. When we buy products, we buy in bulk so that we can offer them at a lower price, creating repeat customers, while still keeping the highest quality. We sponsor a lot of local artists work in our store, while it may cost more, you’re paying for what you get. The goal is to price our store where anyone regardless of income can find something they love, while still making a profit to sustain the store. Local food and small items are always available, and online orders ship free to front

doors.
Market analysis:

Customer profile:
Our customers are primarily in their 20’s all the way to late 80’s. People are coming back to the products we offer from previous generations, while millennials are being introduced to it as well.

Where are they?
We are located on the coast and are near the boardwalk. Our client base comes from all around, but we chose our location due to the central placement for the best possible business. In california, there are 1,300,000 people aged 25-29 and for the middle age range, 1,200,000 are 45-49. These people come from all around and have helped keep our population at a small growing pace of 260,000 people.

What do they need?
Our customers deserve and need a place where the community can come together and find something they were made for. Every piece of merchandise and artistry Grooves offers is an excellent representation of what the community has presented itself as. We simply reflected the culture and added our own brand to it. Friendly customer help at a good price is the best and oldest rule in the book. Keeping it simple and sweet is an easy task we don’t mind filling. We will serve the community in any way possible to help unify it.

Where do they currently buy?

Currently, there are no other stores in marin county like Grooves, all other stores similar are outside of the county or only offer a certain range of metaphysical things such as the Stone room in Albany. For all purposes and needs pertaining to us, they go to the general store in downtown, or go to an online service where they are not able to see the items they are purchasing in physical form.

Research market diagnosis:
Marin county has the highest average income in the state. It has increased 4.6% since 2012. (133.389$)
60,000 residents with a bachelor’s degree start out making 65,540, again one of the highest median income for out of college workers.
Census data
Overall population is 260,000 people.
85.7% are of people of white ethnicity and only 2.8% of people are african american. 1.0% are asian.

Competition:
Stone room in Albany, CA
Crystal channels in Santa Rosa, CA
Milk and honey serving Sebastopol
Strengths:
These stores serve different parts of the county and surrounding areas. They offer only one or two things such as stones or physics.
Most of these stores have been around for some time, so they have more name recognition and have their regulars.
The stores such as Milk and Honey that serve the surrounding area, have an amazing online ordering process, and offers an extremely wide selection. They are the most similar to Grooves, and would seemingly be our biggest competition due to these factors. Marin county natives would think it was worth the drive to go there for something they wanted if they wanted it in the physical form that day.

Weaknesses:
These stores only offer one kind of product, maybe two such as the Stone Room. They have an extremely wide selection of stones and gems that we do not have, but nothing else for their customers to choose from. Physics are extremely interesting and many people flock to their services, but at the end of the quarter it’s another person that has to be paid and the ratio of use to availability isn’t high enough to need its service.

Labor abilities:
20.5% of the people living in the surrounding area are under 18, and would make a good night shift team.
The other 11.4% percent of the demographics are people over the age of 65. They would be good for day shift. They more than likely have had more experience and would be able to have a more flexible hours.
83.5% of the population have a highschool degree or GED.
100,498 people in the county are employed (half the total round of people)\
Half the county is old enough to be employed, and our business helps take up the slack of those with no previous opportunities.

Estimated sales:
Day- I project to sell an average of 3,000 dollars a day
Week- 7-8000 dollars
Month 15-25000 dollars
Year 100-150000 dollars my first year, increasing steadily with time as sales climb indefinitely

Sales and marketing

How to reel in customers

We hope to entice our customers with a friendly environment and calming atmosphere that would create a connection between happy experiences and us. Our plan is to offer good products at a low price, with rewards to the most loyal customers that help spread our business other places it might not have been before. Billboards, tv and radio advertisements as well as social media platforms will benefit us. Promotional giveaways and sales on all listed customer references will allow us to build up clientele.

Sales strategy
Potential customers will be enticed with radio advertisements such as Soma fm, Kpoo fm. Billboards on surrounding roads and on the outskirts of town will be posted for a contract signed time. Buying in bulk will be the way to keep costs low, while maintaining the quality.

Channel of distribution
North Pines, Inc.
Wild Bill wholesale
Bus stop
Puerto Rico products
Advertising medias
SOMA FM (popular radio station that is easy listening)
KPOO FM (popular radio station that features yoga music)
Billboards on the coast for a minimum contract of 6 months
Online media advertising is free, and our greatest marketing tool
Tv if the other options above do not produce positive results

Two medias:
Social media is the kingpin of all advertising platforms. Being able to upload as much as you want without a charge helps tremendously for startup businesses that can’t afford the overhead of some advertising opportunities.In addition to that, radio is the safest, seeing that 60% of people in the area are regular listers.

Promotional strategy:
At the local farmers market in downtown every saturday and sunday we can rent out a booth and pass out
promotional baskets and business cards. Getting involved with the community is a high priority, and we plan to be at every event to spread out our business plan.

Advertisements

60% off your first purchase of 50$ or more when you come in this week! (5-1-18//5-7-18) Grooves

Save the date. 5-17-17//5-20-18 50% additional percent off clearance!
(online and in store offer) Grooves

Management
Who are they?

Megan A.
Dawson S.
Cameron D.
Me
Manager responsibilities: Megan A.- handles the front of the store, and makes sure that clothes and accessories are distributed and handles in the appropriate fashion. She looks over front end employees, and manager breaks.
Dawson S.- He handles the back of the store, sorting and the ordering and managing of constant income. He makes sure all the back end employees sort our merch correctly and makes sure it goes out when needed.
Cameron D. - He handles scheduling and shift changes. Any new shipments coming in he double checks with our spreadsheets. In addition to that he handles birthdays and special events
Owners: I am the current and only full time owner. Any responsibilities required by the owner I fulfill. Any management job leftover that needs to be filled Id take up and perform.
Management strategy: We heavily interviewed dozens of people for these jobs. The three that ended up getting the positions have all have previous experience in other retail jobs. They brought their talents here and have been trained and tested for their performance.We viewed their strengths and placed them accordingly.

Financials

Risks

Our biggest risks is the internet market. In current times, most retail stores have internet markets, and pose a threat to in house stores.
Our second in the big chain stores, such as Earthbound. They have already established their presence and needed audience.
Other retailers have been around longer, and have a more established profile, with higher economic values.

Potential expenses:
Potential expenses of course are retirement plans in case we decide to offer those in the future with the qualifying employees, and growth of our company.
Liability insurance will be expensive. Most companies never have to use the insurance but it is still an important thing to invest in for all employees and the company.
Grooves will provide the uniform which will need to be ordered in all sizes and colors.
The decor and any other potential decoration items will need to be insured, as well as the store with needed insurance.