Business plan of a toy store Essay

In this business plan is considered a plan of opening a toy store for children in Colorado. Kids’ store as a business is very perspective, especially because the last time when government actively supports programs to increase fertility. Children products that we can offer to consumers are always in demand.
The concept of the future children store is proposition of good variety of toys, and products of the highest quality and with guaranteed safety for children’s health. It is sure that such business as a children’s store, offering only high quality products, will bring a good profit, as demand for safe products for children is increasing last time. That is, the main focus in the positioning of the store is sale of only environmentally friendly and safe for the health toys and products from organic materials.
Description of goods in the store. The store will propose toys for younger children, children of preschool and school age. The windows of the store should show the variety and assortment: for example, a rattle for babies, dolls for girls, cars for boys. There must be different intellectual and developmental toys and books: constructors, games for children’s development, puzzles, books.
Clients. The main and most important customers of the baby toys store are children of different ages and their parents. That is why the main purpose of the store is to attract customers (with the help of correct storefronts design) and to make children feel as if in the world of fairy tales and adventure. Creation of a special atmosphere that is memorable for kids help to attract them into the store more and more.
Seasonality in the business is an important factor to be taken into account. Traditionally, sales are more productive in September, when parents want to make children a gift for the new academic year. The peak of demand is observed on the eve of Christmas and New Year holidays, as before the New Year toys – the symbols of the coming year are bought massively. But in May sales usually go and stay stable during summer season.
Competitors. The competitors are shops that provide the same goods. That is why it is better to locate the store away from other such shops. It is also necessary to give easy and memorable name to the store (for example, “Fairy tales world”)
Capital. The available amount of 20000$ will cover the rental cost, procurement of commercial equipment and goods, marketing and salaries for employees.
Marketing. Before opening of a children’s toy store it is necessary to make advertisement in the media (magazines for children and young mothers are good variants); to put up ads near schools and kindergartens; to distribute leaflets about the opening of the new store. Also, in the opening day it is advised to make different competitions for children, presentations, prize drawings (small toys) and sweetens for children (candies).
Internet marketing. It is very important to make a site on the Internet, with the name of the store and company logo, to make presentation on the main page of the store and its main concepts (quality and safe toys and products for children). Next it is necessary to place a catalog of all goods on the site, and every toy will be under its number to enable customers to make orders on the site. For example it is possible to make the tab “orders”, where everyone can order any toys with free delivery, or leave his wishes. It will help to attract buyers from other cities.
Staff. Key staff includes a director, accountant, sales and cashier. To serve customers it is enough to hire 3 qualified employees. Before opening the shop it is necessary to conduct a psychological training with employees to educate them how to work with people and satisfy employees. Employees must learn the existing catalogs of goods to be aware of their titles and characteristics, to be able to give customers all interesting information, and to be able to make recommendations, to help to choose. Qualified and polite staff is one of the key elements of good sales. For operational work of shop it is necessary to buy a cash register, which must be registered in the tax office, and computer for accounting of the goods.
Location of the store. More and more popular becomes relatively new kind of trade for children – baby supermarkets or stores, which propose all kinds of goods: from toddlers and diapers to radio-controlled cars and books for children. High attendance show also children’s departments in large shopping centers, that rely on great number of customers during weekends, when people come to buy all necessary goods for each family member. As a rule, in big trade centers shops for children are located above the second floor. Shopping centers ensure a large inflow of visitors and reasonable rents, so this option will be most suitable.
Sections in the store. Modern shop and a children’s department are usually arranged on the principle of self-service, that is especially important for children who have free access to the goods, and also increases the percentage of spontaneous purchases. The shop must be thematically divided into commodity sectors, given the different age categories and types of goods (toys are located closer to the exit, clothes are located in depth as they require more careful selection). Also toys in the store must be divided by types, all goods must have coded labels or magnetic media. The hall with toys must be modeled according to the form of entertainment: for example, a zone of soft toys, zone with dolls and simulation games, then may be situated area of logic and educational games, etc. For toys and accessories for children from zero to three years is given a separate room or part of a trade hall with clear pointers to the location. It is advised to arrange a gaming zone, where children can have fun with toys and games that they liked. Such play zone offers children the opportunity to try toys they want to buy.
The interior design of the shop include two important points. First, the store design should attract buyers, both children and parents, and not just to attract but not to leave empty-handed. The most widely used are colorful and interesting children’s play facilities or toy characters in front of the store, which will attract children to come in (to see-touch-and buy). Second, in contrast to the bright outdoor decoration the interior of the shop should not distract buyers from the goods, and should not discordant with them. The original design of the hall and equipment must complement brightness and unusual design of toys, therefore, proper design of equipment is very important. The basis equipment in the store are the children’s shop shelves. Shelving should be of excellent quality, have a large number of accessories, such as perforated panels with hooks on which to hang toys. In addition, lighting of the store is crucial: a steady light of the whole area and illumination of separate shelves.
The main marketing objectives are: within two years to increase market share to 20% and raise the level of profitability.
Marketing strategy: To increase the market share necessary to stimulate sales. The sales promotion include:
a)Increase in the range of goods
b) Reduce the prices of goods with elastic demand and costs, and to increase prices of goods in highest demand (for example, of developing books).
c) Increase spending on advertising: to use several types of advertising, for example, outdoor (billboard), print (leaflets), advertising in the press and on television.
d) To introduce a discount program (discount for purchasing goods on high sums of money, discounts for regular customers),
e) At the opening of the store to arrange a presentation that will attract buyers and make them want to come again (for example, to propose discount on all products during first days).
Plan of actions
In the first year it is necessary:
– Attract customers by:
* Presentation of opening of a new store;
* Advertising company;
* Flexible pricing tactics.
– Start a program of product promotion: regularly give advertisements in local media, print ads in the form of booklets, installation of outdoor advertising (billboard)
– follow all the possible innovations in the market of toys for children
In the second year it is necessary:
– to support constant level of sales
– Expand the trading areas and warehouses.
– Increase number of qualified staff;
– Find additional suppliers of new products
– conduct research of customers’ satisfaction, of trends in the market.
To return the invested sum of money it is necessary to have constant increase of sales. This can be achieved by introducing a discount (discount for purchases on large sums, discounts for regular customers), the increase in prices of goods of highest demand.