House of wine

House of wine

Name

Institution

House of wine

Abstract

Fred and Larry are determined to increase on their sales, flexibility, and the stability of their profits in the wine business. They want to maximize on exposure and ensure that they have as many people as possible visit their stores. They are also determined to ensure that they retain their customers and ensure that they come back to their store often. They are determined to ensure that they establish and are able to sustain a positive flow of cash within their first six months of their grand opening. Their medium range goals call for an establishment of a flow of cash from their operation, an all year round support from the local clientele to ensure they sustain the cash flow and the beginning of referrals from one customer to another due to the customers’ satisfaction they aim at.

They project their first, second and third year sales to be: $1000000, $1500000, and $2000000 respectively. They intend to increase their annual sales of between five to ten percent. By the time the business reaches its fifth year, they want to sell it at a profit of more than $1000000 or they might choose to continue growing their business and having fun with it. To do so, they have to come up with a short, medium, and long-range marketing and promotion plan. This is to ensure that they create awareness to their targeted customers and to attract as many of them as possible in their business to ensure that they increase on their sales and profits.

Background information

Fred and Larry Butts are scheduled to celebrate the grand opening of their new wine and specialty store in four months. After a year of choosing the best location for their new venture and completing their business plan and market research, they purchased a property in the lakes region of New York. They built their business structure of 7200 square foot retail showroom with a below ground wine and storage area for their inventory of similar dimensions with the showroom. Their retail room is elegant and eye-catching with wood floors, beautiful windows with bright succo walls with a large collection of various works of arts. The building is situated on a busy road with plenty room for parking and future expansions of the building if need be. Their market research reveals an even division of individuals in the upper middle class with a second seasonal home in the area and an all year round of retired individuals. Another population of white-collar individuals in the banking and insurance sectors and another in blue-collar individuals in the industry sectors are also in the area. The population in the region hits double between memorial and labor days due to the numerous summer cottages and camping grounds in the area. Tourism sector is the main industry in the area followed closely by manufacturing sector. The area has little direct competition with the wine and related products’ markets growing steadily. The only available wine in the area is in local convenience stores and supermarkets thus resulting into the need for them to tap into the wine market. They have to make several important decisions before their grand opening.

Issues/challenges

The main issues facing them are how they will be in a position to tap the wide market that is available in the area. How will they come up with the best marketing and promotion plan to ensure that they tap into the available market to increase on their sales?

Caliber of analysis

The area they are venturing in is faced with very little competition with the only wine available sold in local convenient stores and in supermarkets. Considering that they want to ensure that they attract and retain as many customers as possible, they have to come up with the best marketing and promotion strategies. First, the areas main industry is the tourism sector due to the availability of various camping grounds and cottages. In fact, between memorial and labor days, the population in the area hits over 100000. Thus, such is the period when their business can really thrive. They have to create awareness to such individuals about their availability to prevent them from buying their wine in supermarkets and convenient stores.

Considering that the customers’ preferences is the key to ensuring their satisfaction. It is important for them to get the required feedback from customers to ensure that they get the best wines for them in stock. This is because most individuals enjoy a great taste and quality of wine at affordable prices. Since their main aim is increment of sales, profits and their business stability, a good short term, medium and long-term marketing and promotion plan is important. To do so, they have to conduct have their customers feedback to realize their preferences.

Recommendations

The main aim of Fred and Larry is to ensure that they attract many customers to increase on their sales and overall profits. The first thing they ought to do is conduct a survey to their potential customers to determine their preferences in wine. With such information, they will be in a position to stock the best available wines preferred by their customers at considerable prices. They must keep in mind that cheaper wines sell fast but at a smaller profit while wines that are more expensive sell slowly with a larger profit margin. They must be very considerate to the image of their showroom since an attractive image will attract more customers. They must also consider the services they render to their customers since customer service is a key to enhancing customer satisfaction.

Thus, they should employ caterers with a high experience in customer service. They must also ensure that their designs layout is well established and set to maximize on their sales and increase on their profits. It also ensures that they maximize on the buying experience of their customers, minimize on shoplifting and liability, and maximize on the overall safety of the building. Their outdoor presentations must also be made as attractive as possible since it will be their selling point to passersby. To create awareness of their business, they should market and promote their products adequately. They should consider advertising their business on mass media including television and newspapers to ensure that more people learn about their business (Lamb, Hair, & McDaniel, 2012). They should also conduct door-to-door promotions in the surrounding areas ensuring that they have a small amount of wine that they give to potential customers for them to taste.

By so doing, they are able to make their potential customers have a hint of their taste of wine and make them yearn for more. They should also ensure that they offer a small discount on their wines to ensure that more customers buy from them. To do so, they have to strike a deal with their distributor to ensure that they do not suffer from losses considering that theirs business is still at the formation stages. They should also consider creating an online program where they can promote their products and services and possibly ensure that their target consumers can make online orders. With improved technology, online business can really thrive creating a platform for such consumers to event give their feedback to the house of wine thus enabling them to improve based on the given feedback.

Basis of recommendation

Since the house of wine is aimed at increasing their sales, profits and ensuring the flexibility and stability of their business, it is important for them to establish a convenient marketing and promotion plan to ensure that they achieve their long and short-term goals of the organization. The best pricing strategy is the penetration pricing. The wine house can set a low price on their wine business to increase on their sales and target market. Once they have captured the market share, then they can progress to increase their price. This is considering that they are establishing a new business in the region. If they set their prices higher than those in local convenient stores and supermarkets, their targeted customers might continue purchasing their wines in those stores and reject their offers on selected wine prices. In addition, ensuring that they make have an online setting of their business could enable them attract more customers even from outside their targeted region. They can envision enlarging their borders to diversify their business in other areas in future.

References

Lamb, C. W., Hair, J. F., & McDaniel, C. D. (2012). Essentials of marketing. Mason-Ohio: South-Western Cengage Learning.