Retail: Brick by Brick- Marketing and Sales, Part 2

{photo by Erin Darcy. Time to wrap your business plan up with some pretty packaging!}

We're back again today to finish up the second half of the Marketing and Sales plan in our Business Plan Challenge! We only have 3 more topics to discuss - Operations, Financial plan and the Executive Summary. You're almost there!

So lets be serious for a minute. Are you working on your business plan? Anyone feeling really overwhelmed? You're entitled to! Writing a business plan is a really big commitment, and some parts are very painful. Trust us, once you get your first copy completed it will feel wonderful.

The second half of the Marketing and Sales plan covers your marketing and sales strategy. With each of these you will be developing your company brand, the one image that pops into people's minds when they think of your business.

The Marketing Strategy:

Company Image: Describe the image you want your company to project. This will includes both the image you present to your customers and how you want your customers to describe your business. By image, include both tangible and intangible descriptions. For example, maybe your business will be known for great window displays and excellent customer service.

Advertising and Promotion: Thinking about the description of your target market, what advertising and promotional methods will best reach your customer? In this section, include all of the advertising and promotional ideas your business will use. Make sure all of your ideas are cost effective. Thinking of new, creative promotional ideas can often be very inexpensive and produce great results. One of the best promotions I've experienced was for the opening of a new hair salon. One Saturday, on one of the local shopping streets, the salon had their employees hand out cotton candy from a machine. The free bright pink cotton candy inspired memories of my childhood and instantly made me a fan of the salon.

Sales Strategy:

Sales Forecasts: Make a note of this section. You wont have any forecasts until you complete the Financial Plan. Once that is finished you'll have to come back here and summarize the Financial information.

Sales Organization: Who will be responsible for selling your products? Are you selling directly to the customer or through wholesale?

Customer Buying Pattern: Does seasonality effect your business? I imagine in almost every retail situation, there is some sort of increase in sales around the holiday season. Also, does the customer seek out your business, or do you go to them? Do you have to make repeated contacts and possibly meet with the customer before you have a sale? Will your customers offer repeat business?

Sales Methods: Document everything you need to do to make a sale. How will you reach the customers, where will they see your product and how will that make the sale. Will you present samples? Direct your customers to an online portfolio or store? Do you have to write a proposal? Have your customer sign a contract?

Payment Methods: When and how will the customer pay? Do you accept checks in your retail store or at a craft show? Will you take credit cards? If you're selling an expensive item, are there payment terms?

Delivery Methods: How will you make sure orders are filled on time? How will you get the product to your customer? How will you package your item (I'm always a fan of lovely packaging)?

Customer Service Policy: How will you handle complaints and returns? This version of your customer service policy is for you. Thinking about how you will handle various situations today will save you stress in the future.

See! Today's post was easy! Next week we'll discuss Operations. This is where you'll determine the legal form your business will take and outline your costs and pricing. We'll see you then!

Lili Nedved and Henry Sinha are opening a brick and mortar retail store in Vancouver, Canada. With lots experience staying up late and working on Lili’s handbag business, iglubu, Henry was recently promoted from an Electrical Engineer to Director of Fabric Organization. Lili hopes her Finance degree will give her the edge in the competition for Employee of the Month.