3. Introduction
Pinks Accessories is a retail store that specializes in manufacturing and selling women’s and
men’s accessories. While Pinks primarily sells women’s products and has proven to be
successful by means of our online website and word of mouth, Pinks is now seeking new
ventures to expand our business and conform to our customer’s needs.
Pinks Mission Statement
The mission of Pinks Accessories is to provide quality accessories to both men and women while
maintaining efficiency in regards to pricing. While the products are made from inexpensive
materials, Pinks stands behind the quality of all of the products we sell.
Marketing Points
While expansion is generally viewed as positive in the retail industry, Pinks will assume the
same risks but by means of taking small steps to enlarging our company in order to ensure
security when trying new avenues. While there are several risks involved in opening up a store
front, Pinks anticipates many new opportunities that this business venture will help render for
our business.
Pinks drives most of its revenue from young adult women. While our company will continue to
focus on this demographic, our goal is to gain new customers from other demographics by
distributing company focus in regards to marketing and product expansion.
The key to our success is to present our image and our products in a way that will continue to
attract new customers and keep them coming back. While Pinks may offer great product, the way
4. we market our company will create the foundation for how we will be viewed among potential
consumers.
Situational and SWOT Analysis
Pinks Accessories have proven to be successful by marketing and selling all of our products
through our online website. Officially established in 2005, revenue has doubled over the last
three years and has continued to steadily progress. Because of our consistent growth and the
strong demand for our products, Pinks is able to finance a new location and in turn has analyzed
what potential strengths, weaknesses, opportunities, and threats that may lay ahead as a result of
our new venture.
Pinks strengths include the success of our online website, our affordable prices, the unique
selection we offer, and the current demand for our products.
Our online website has not only lead to our primary means of financing our new facility, but
during our first year of business will help act as a safety net if our new store does not meet or
exceed our expectations. This first year will act as a trial period for our business and if proven
unsuccessful, our online website will allow us to move out of our venture and again put all of our
focus on our virtual business. Because we started out as an online retailer, our name is already
well known and has helped build a positive reputation for our company.
Our affordable prices is the primary focus of our business. This is our niche in a competitive
market. Brand name deigns similar to ours can cost up to thousands of dollars. Pinks offers our
designer handbags and other accessories at a fraction of the cost. Because many of our designers
are recruited form local fashion design schools, we are able to help them by given these students
real world experience during their paid internships with us. Designers that stand out amounts
5. their peers and provide hot selling items get an opportunity for permanent employment and
competitive pay. The relationships we have acquired from our connections to the local fashion
design colleges have allowed us access to several means of purchasing inexpensive materials to
create our products. Without these factors, we would not be able to provide our products at the
prices we offer.
In addition to our strengths, the unique selection we offer has helped attribute success of our
business. Many of our customers have commented on the different designs we have and how
they appreciate being able to find matching sunglasses, scarves, or shoes to go with their new
handbag. Our unique designs are a result of encouraging our interns to always create something
new or find inspiration from other designers.
Status is very important in our culture and many feel their possessions attribute to how their
status is perceived by others. Because the accessories we offer look expensive, many people
utilize our products to help create an image of importance, beauty, or uniqueness. This is a large
component in our niche.
Opportunities may include the fact that the mall unit was previously leased by another female
oriented company and Pinks grand opening before the holidays. This is a great opportunity
because the mall is expected to have the heaviest traffic all year. This will allow us to market our
new location, experiment with different demographics, and anticipate lots of sales.
If generated sales go as expected and customers support expansion of our products, we will
expand our product line and carry a selection of store brand products as well as independent
designer product lines. The addition of offering higher end products at our store will add value to
our customers and could expand our customer base.
6. Potential weaknesses may include competitors offering similar products, several competitors in
the mall, and our prices may take away from the perceived value of our products.
If our marketing strategies provoke a negative reaction, our products may be perceived as cheap
instead of affordably priced-in turn, this does not only have the potential to hurt revenue, but the
company’s image as a whole.
Marketing strategies must be executed carefully to ensure that our company is recognized and
stands out amounts other competitors. In the mall location, there are several retail stores that
offer the same types of products we carry.
Potential threats include the other retails stores located in the mall, investment of the new
location can become costly if sales do not go as expected, and utilizing unattempted marketing
approaches.
Through our online marketing we have been able to target our main demographic by posting
advertisements on websites mainly viewed by young adolescent women. Our mall location will
require different marketing approaches to target our main consumers. Because these new
approaches have yet to be tested by our company, it will be hard to speculate what tactics will be
successful or otherwise.
Marketing Objectives
The objectives of the planned marketing approaches include advertising our new location,
expanding our target demographic, and consistently generate a profit.
7. Market Segmentation
Pinks main consumers are women between the ages of 15-35 with an average household income
of $45,000 to $80,000 a year. However, Pinks is looking to expand our current demographic by
introducing more men’s products and focusing on driving more woman over the age of 35 to
purchase their accessories at our store.
Target Market Strategy
New marketing strategies for our new store location will consist of meeting shoppers of the mall
that fit into our target demographic. All of our associates have been scheduled to spend a few
days at the mall every week before our grand opening. We will be introducing ourselves and our
new store by passing out flyers that includes information on the grand opening sale as well as
images of our best selling products. We have been utilizing online social networks to do much of
our advertising and have posted our cards and flyers in the different business around the mall,
including hair salons, nail salons, and restaurants. In addition, we have also placed several
advertisements in local papers and have advertised our new location on our website.
To help attract more men to our store, we have created many new displays that will highlight our
top selling men’s products and we plan to place these in front of our store window.
Marketing Mix Strategy: Product
Products carried at Pinks includes handbags, jewelry, scarves, watches, and sunglasses. With the
exception of our collection of designer watches and sunglasses, Pinks designs and creates all of
the products offered at our store. Our products are created by fashion design college students.
The designs are intended to look like high end accessories. While unique, much of our products
8. are influenced by the designs of very successful brands. Because of our demographic, our
designs tend to be very flashy, colorful, and are meant to be a focus piece in regards to attire.
Marketing Mix Strategy: Distribution
Our distribution chain is composed of several elements. Our materials are ordered from several
sources. We do business with many of the same material distributers that the local fashion design
colleges utilize. Once ordered, all materials are shipped to a privet facility where our designers
and seamstresses actually create our handbags, jewelry, and scarves. All finished products will
be driven to the mall location where they will be sold directly to our customers.
Marketing Mix Strategy: Price and Promotion
Many of our handbags are sold at $50-$150. Jewelry and watches are sold at $5-$100. Scarfs and
sunglasses are sold at pricing ranging from $10-$120. Pricing for our products varies according
to cost not demand for a particular item. During our grand opening sale, all products are buy one
get one fifty percent off. After our grand opening, our Christmas sale will include all of our
handbags and watches being sold at thirty percent off until after the New Year. After the New
Year, we will introduce our customer card. This electronic card will track all of the users
purchases and will give the customer additional savings when used to a certain dollar amount.
Evaluation
Because Pinks will have its grand opening before the holidays, we expect sales to be high.
Because of the strong demand for our products, we anticipate that many of our sales will help
new customers check out our stores and keep current customers coming back. During the first
year, it will be crucial to analyze what marketing approaches were the most effective at
9. producing the greatest amount of traffic and what promotions generated the most revenue.
Marketing tactics that prove to be successful will be used again and will act as a foundation for
new marketing techniques. Our goal is to make it to a year at this new location. If investment
balances out or generates a profit, then Pinks will continue at its new location and will approach
new ways to conform to our customers’ needs and expand in ways that will benefit both the
company and the customers.
