MADO Enterprises is a unique business venture, targeting today’s modern market. The venture is unlike any other in the retail industry because it offers unique shopping experience for the customers. The enterprise understands the consumers’ need of going shopping without having to worry about how they are going to pay for it. This is because the enterprise has introduced an innovative payment method, which will appeal to many consumers. The following business plan highlights the aims and objectives of the company in offering the customers high quality products at affordable prices, and enhancing their shopping experience and satisfaction. The company aims that it will enhance brand awareness and loyalty from its customers because of the guaranteed customer satisfaction.
The company faces stiff competition from the established retailers and food outlets in the region. It also faces the disadvantage of having to begin working from scratch, yet at the same time developing a new idea in the market place. However, the company has the benefit of having a strong and committed team of professionals who are dedicated towards their work, and who understand the power of customer satisfaction in any industry. The company has the advantage of working in a stable environment that encourages business growth and opportunity. The company will incur several costs before beginning its operations and even after it has set up and becomes established within the region
Aims and Objectives of the Business
MADO Enterprises aims and objectives for the first year of operation include the following:
- To obtain a significant share of the retail market by ensuring that it attracts a minimum of 100 customers monthly
- To offer unique customer experience that will lead to increased customer satisfaction and subsequent customer loyalty
- To create a unique marketing experience that will create brand awareness and lead to the creation of the company’s brand name
- To develop a way for customers to shop for everyday items easily, without worrying about fear of credit
- To increase customer awareness concerning their use of credit and money, and how they can use credit to their advantage
- To use effective means to deliver products to the customers using the business to consumer methodology
- To offer high quality products at very affordable prices to the customers, without any hidden charges
Business Environment (Competitor Analysis)
The company faces stiff competition from the retail industry and from the various food outlets such as hotels, restaurants, and fast food places. The retail industry offers a wide variety of products and it includes shopping malls and grocery stores found in many places around the region. The different food places on the other hand provide a wide variety of food items suiting the preferences and tastes of different people.
The company has to ensure that it complies with the regulations from different local and government departments. The business will operate in a stable political environment, which encourages business setup and growth, and which provides access to the necessary information regarding business setup. It will operate in a good economic environment, although there are changes in the economy due to inflation in the country, and globally. This will affect the prices of commodities in different areas, and it can create disabling price shifts in commodities. The business will operate in a region with people from different backgrounds and cultures, and this will ultimately affect its operations. It has to consider the different tastes and preferences of individuals and offer a wide variety of products that will cater for these needs. The company has made good use of technology, as it has digitalized its systems of operations. It will offer customers the chance to shop and request for their products online and by using social media and networking sites in its marketing campaigns (Faarup 2010).
The company has several strengths. It has a team of people who are committed and knowledgeable at what they do. This includes the agents who are knowledgeable about finance and how to increase customer satisfaction. The company has established an online system, and this has enabled it to tap into the social media market. This is one of the major strengths for the company because it will be able to attract many young people who spend their time on different social media sites. The company is new and it is offering services that are not developed in the market. The idea of using vouchers and coupons can be detrimental to the company’s profits if the customers are not able to pay their debts. This is despite the interest rates that the company will charge for late payment. The company’s dependence on customers trust and loyalty can end up destroying its finances. There is an opportunity for the company to expand once more people learn about it. There are more people needing the services that the company is offering in different parts of the country. Once the company has established itself in the targeted markets, it can use its impressive financial performance to target different markets. The company faces threats from the established retail markets and other food outlets, which already have a firm customer-loyalty base, and which offer similar products.
MADO Enterprises will offer unique customer services in the retail industry. The company will offer high quality products without increased costs, therefore attracting people from different economic backgrounds. The company will offer products that the customers require daily. These products include food and beverage items, clothing for all genders, and appropriate for all ages, fashionable shoes, and basic electronics. It will provide the customers with a chance to choose their payment methods at their stores. The payment options include cash and the introductory method of using an exclusive payment system for the VIP customers with a membership. This is the unique selling point for the company. It is different from the credit card option because of the high interest charged by the credit card companies, and the fact that these companies do not offer consumer education.
The VIP membership service will include customers purchasing private and unique coupons to use as an alternative for cash. When the customers have used the coupon, they will receive a voucher explaining the payment period they have. This offers a unique and enhanced shopping experience for the customers. To encourage the customers to pay at the right time, the company will explain to the customers the need to charge daily but affordable interest rates until the customers have paid for their purchases. The voucher and coupon method offers a competitive advantage for the company, as it offers several benefits to its customers. In addition to giving the customers sufficient time to pay for their purchases, this method is a way for the company to educate their customers concerning their use of credit. The company has designated agents whose main purpose will be to guide the customers to ensure that they pay on time.
The agents will visit specified districts and offer the coupons, which customers can only use in the MADO Enterprise stores. The agents will then collect the money from the customers on their weekly visits to the customers, according to the payment period specified on the voucher. The agents will offer financial advice to the customer, instilling in them the knowledge of having good credit. They will educate the customers on how they can use the coupons to acquire good credit with the company, thereby securing them several benefits with the company. The agents understand the importance of having greater customer satisfaction because this translates to better sales for the customers, and therefore increased customers. The agents will receive 10% of the company’s profits, and this will act as a form of intrinsic motivation for them. They will be sure to work hard at satisfying the customers so that they can receive a higher pay. In case the company incurs a loss, the management will decide on the method it will use to compensate the agents for their services.
The company has identified different market segments. The first segment includes the low-income families, who want the advantages of bulk shopping but they do not have the money to do so. This group realizes that people save a lot when they buy items in bulk, but they do not have the money to enable them to do this. The second group is the busy working college students who do not have daily income, and who do not have sufficient knowledge concerning the use of credit. This group does not have sufficient time to go shopping, and they can use the company’s online shopping option, and pay later when they have the money to do so. The third group includes the individual customers who may not be from low income families, but who need to purchase some products and may not have cash at the time.
The company has four major shareholders, who own 70% of the company, and who have an equal share in the business. The shareholders have used their resources and funds as part of the capital for the business. They have sourced the other funds from the investors who have an interest in the company. The company will incur several costs, before and during its operations. Most of the finances will go towards acquiring the inventory, while the rest will go towards administration expenses. The legal expenses will include permits and licences, payment for health regulations among any other special regulations required for the company. Administration costs will include the cost of developing vouchers and coupons and of the maintenance of the company’s website for the online shoppers.
There is slow growth in many regions, mostly because of the inflation that occurred some time ago. However, the retail industry is improving gradually, as customers become more willing to spend their money. Online sales have increased substantially in the last year, and the business will capitalise on that. The fact that the company is dealing with necessities is an added advantage because people cannot live without these products.