Marketing Plan
Target Market
The prime target market for candles is women with families. "As one of life's little luxuries, candles are purchased at about the same rate across all income levels, among all ethnicities, and at all educational levels. Now, don’t be fooled because men love candles as much as women, however key demographic factors distinguish the candle buyers to women, aged 45 years and under, many that head families with children. There is also an increasing number of different cultural couples and families making candle purchases. This proves that with these findings come new elements with baby boomers creating a predictable pattern of home and family spending. These lifestyle changes can only mean increased growth in the candle industry.
Market Size & Share Estimate
Candle sales in the U.S. are estimated at roughly $2.3 billion a year, but this does not include accessories such as glassware, holders and more. For comparison, the U.S. computer industry has annual revenues of about $86 billion, (White, n.d.) again making the candle industry appears small in scale. Candles are a highly discretionary purchase and sales are greatly influenced by economic climate. Roughly one-third of all candle sales take place during any given holiday season (Easter, Christmas, etc.). Approximately 35% of candle sales occur during the Christmas/Holiday season. Non-seasonal business accounts for approximately 65% of candle sales.
There are more than 400 commercial, religious and institutional manufacturers of candles in the United States, in addition to scores of small craft producers for local, non-commercial use.
Candles are principally sold in three types of retail outlets: specialty or gift shops; department and home décor sto...
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...s of assorted candles (jars & individually wrapped), sconces, incense, tea-lights, tarts and candle accessories. This will occur through both retail (brick and mortar) and online sales. Online sales can provide easy access to reorders and new customers who live in various parts of the world. The retail store will provide our local customers a way to see, smell and touch the candles before they buy, as well as bringing in containers from their homes that can be refilled.
Promotion is a final step and can be easily marketed through local advertising in newspapers, flyers, school events, county fairs, churches, in home parties or celebrations; all occasions for the marketing of our candles. Once our company is established, along with returning customers, and increasing referrals we should not have any problems with increasing revenue; as candles are always in demand.
Here’s a brief history of how the candle making industry flourished, declined and regained its prominence through the years.
The next segment is Commercial Product 's, which is suits of retail store fixtures and point-of-purchase displays for major retailers and specialty shops (Leggett & Platt®, 2011). So really what Leggett and Platt is producing in this segment is displays for other retail stores to use in their store. They do this because it dresses up the product they are trying to sell, if a customer walks into a store with only mattresses on the ground then they might not want to buy it. But if a customer walks into a store with a mattress in a display with a dresser and frame around it then they might be more interested in buying the mattress product. Some of these Commercial Products categories include: gondola and shelving, in-store displays, seat mechanisms and controls, furniture bases,
Wicks n ' More is known for their high-quality, hand-poured fragrance candles. I had the chance to sit down with the co-founders and former owners, Beckey and Kim Neal. Wicks n ' More was founded in 1998 by mother and daughter, in their home garage as a hobby. Both, Beckey and Kim, gave their opinion about a small family business and about their business experience. Our discussion of their business growth, product line, product strategy, and new inventions relates to the product development of a small business. Their business is successful and is now a multi-million dollar business where fragranced candles are sold all over the world.
Due to the good establishment of the business, it has huge market national. The company has therefore opened many retail shops and stores all over the country to ensure that their products are accessible to the customers. The entity provides a favorable environment, and many clients view the place as a fun shopping place to be. The retailer has targeted a big pool of customer because of the variety of products it sells. The stores products vary from kitchen goods, jewelry, and electronics clothes to hardware
Commercial products have been around since the beginning of time. Manufacturing millions of products such as Ketchup for consumers to use daily. One might argue that buying house hold items can be such a hassle even for consumers who barely have time to get ready for work, let alone clean after themselves. The need for more items influences consumers to evolve from prehistoric cave dwellers into item entrepreneurs through introducing multiple platforms to spread news about a product, appealing visually for customers to go buy it, and demonstrating why traditional ways of doing things helps improve modern cultures to expand newer ideas for buyers to sell or buy as they please.
Q2. How did the sales and marketing affect operations when they began to sell standard pieces to retail outlets?
For instance, convenience offerings are low-priced goods that consumers can effortlessly acquire because they are relatively ubiquitous while shopping offering requires the consumers’ effort in comparing and contrasting various brands and retail outlet to find the best product at a good price. Besides, while convenience products are needed on a daily basis, shopping goods may not be required on a daily basis and it has a higher price compared to convenience goods. (Tanner & Raymond, 2010). Furthermore, specialty products are different from convenience and shopping offering because it is more expensive from the previous offerings and it is also not commonly sold in retail outlets. The consumers are few and the products are purchased less frequently, which give it a high margin profit. Finally, unsought offerings are different from all because they could be acquired even when it may be unnecessary at the moment. It is a product of circumstance by any
Over the last decade, sales at general merchandise stores, pharmacies and drugstores, have grown at average annual rates of 6.0% and 7.5%, respectively, according to US Census Bureau retail trade data.
Edmonds, T. P., & McNair, F. M. (2013). Accounting for Merchandising Businesses. Fundamental financial accounting concepts (8th ed., ). New York, NY: McGraw-Hill/Irwin.
Starting a business is a challenging undertaking that requires detailed planning and intensive research. The modern dynamic market and economic changes demand for the adoption of a well through of business plan that incorporates the entire business requirements (Pinson, 2004). The Paradise Beauty Centre will be a small enterprise that will focuses on the production and distribution of beauty products in United States of America. The business plan will help the business managers and other employees in understanding the long-term and immediate goals and objective of the business.
competition is other businesses that create handcrafted products customized to the individual. Research found websites that sold handcrafted items but few offered different variations to meet the customer’s preferences. This provides a unique product that is not currently being offered (Scarborough, 2011).
Too often, a marketing function is misunderstood, because many people do not understand what is meant by ‘Marketing’.
The nature of the business of retailing puts retailers at a assumed risk of incurring costs because products are bought with the assumption that consumers will purchase. Additionally there are external factors that may also pose risks such as natural disasters, theft, spoilage and fire. In other circumstances retailers also extends financial credit to customers in the form of credit sales which facilitates the smooth transition from retailers to the marketplace. Retailers are in constant contact with customers which gives them the opportunity to research and study buyer’s behaviour. This involves collecting information about changes in customer preferences, perception and shifts in the demand curve. Through advertising within their stores retailers are able to exhibit and introduce existing and new products to the marketplace. Ultimately retailers are in the business of selling products to customers to achieve their goals of generating
In a simple way, the retailer needs to create a warm, friendly and an approachable retail space to attract consumers.The visual displays is an imperative element of branding of any store. If the stock is presentable, it is bound to appeal to the shoppers. If the shoppers appreciate the store layout and product, they are likely to spend more time in the store, and in return reward the store with sales. Along with the products for sales, the staff, the décor, the store interiors, the trial rooms arrangement, the lightings and music also form an inclusive elements boosting store sales. (fibre2fashion, 2008)