Marketing Plan
Target Market
The prime target market for candles is women with families. "As one of life's little luxuries, candles are purchased at about the same rate across all income levels, among all ethnicities, and at all educational levels. Now, don’t be fooled because men love candles as much as women, however key demographic factors distinguish the candle buyers to women, aged 45 years and under, many that head families with children. There is also an increasing number of different cultural couples and families making candle purchases. This proves that with these findings come new elements with baby boomers creating a predictable pattern of home and family spending. These lifestyle changes can only mean increased growth in the candle industry.
Market Size & Share Estimate
Candle sales in the U.S. are estimated at roughly $2.3 billion a year, but this does not include accessories such as glassware, holders and more. For comparison, the U.S. computer industry has annual revenues of about $86 billion, (White, n.d.) again making the candle industry appears small in scale. Candles are a highly discretionary purchase and sales are greatly influenced by economic climate. Roughly one-third of all candle sales take place during any given holiday season (Easter, Christmas, etc.). Approximately 35% of candle sales occur during the Christmas/Holiday season. Non-seasonal business accounts for approximately 65% of candle sales.
There are more than 400 commercial, religious and institutional manufacturers of candles in the United States, in addition to scores of small craft producers for local, non-commercial use.
Candles are principally sold in three types of retail outlets: specialty or gift shops; department and home décor sto...
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...s of assorted candles (jars & individually wrapped), sconces, incense, tea-lights, tarts and candle accessories. This will occur through both retail (brick and mortar) and online sales. Online sales can provide easy access to reorders and new customers who live in various parts of the world. The retail store will provide our local customers a way to see, smell and touch the candles before they buy, as well as bringing in containers from their homes that can be refilled.
Promotion is a final step and can be easily marketed through local advertising in newspapers, flyers, school events, county fairs, churches, in home parties or celebrations; all occasions for the marketing of our candles. Once our company is established, along with returning customers, and increasing referrals we should not have any problems with increasing revenue; as candles are always in demand.
The next segment is Commercial Product 's, which is suits of retail store fixtures and point-of-purchase displays for major retailers and specialty shops (Leggett & Platt®, 2011). So really what Leggett and Platt is producing in this segment is displays for other retail stores to use in their store. They do this because it dresses up the product they are trying to sell, if a customer walks into a store with only mattresses on the ground then they might not want to buy it. But if a customer walks into a store with a mattress in a display with a dresser and frame around it then they might be more interested in buying the mattress product. Some of these Commercial Products categories include: gondola and shelving, in-store displays, seat mechanisms and controls, furniture bases,
Here’s a brief history of how the candle making industry flourished, declined and regained its prominence through the years.
Due to the good establishment of the business, it has huge market national. The company has therefore opened many retail shops and stores all over the country to ensure that their products are accessible to the customers. The entity provides a favorable environment, and many clients view the place as a fun shopping place to be. The retailer has targeted a big pool of customer because of the variety of products it sells. The stores products vary from kitchen goods, jewelry, and electronics clothes to hardware
Who would believe that one day a teenager by a lack of money would be able to create the largest company of scented candles in the world? This is exactly how Michael J. Kittredge began his journey as an entrepreneur.
Commercial products have been around since the beginning of time. Manufacturing millions of products such as Ketchup for consumers to use daily. One might argue that buying house hold items can be such a hassle even for consumers who barely have time to get ready for work, let alone clean after themselves. The need for more items influences consumers to evolve from prehistoric cave dwellers into item entrepreneurs through introducing multiple platforms to spread news about a product, appealing visually for customers to go buy it, and demonstrating why traditional ways of doing things helps improve modern cultures to expand newer ideas for buyers to sell or buy as they please.
Holidays have always been known to affect our consumer culture for many years, but how it all began eludes many people and very few studies have been completed on it. Even though some say that the subject is too broad to precisely identify how holidays, especially Christmas, directly affect our market, I have found that people’s values, expectations and rituals related to holidays can cause an excessive amount of spending among our society. Most people are unaware that over the centuries holidays have become such a profitable time of year for industries that they now starting to promote gift ideas on an average of a month and a half ahead of actual holiday dates to meet consumer demands.
A marketing plan is an essential tool for any business in today’s competitive consumer market. Developing a marketing plan will aid a firm in thinking about what makes its business unique and how it will get the message out to desired consumers, using a variety of different channels. A marketing plan helps a firm focus on the Four P’s of marketing; price, product, promotion, and place. If the plan is well thought out, it will keep business owners and employees on track, as well as help to identify consumer needs. It will also help to evaluate those consumer needs and determine if the organization can meet or exceed expectations in order to turn the desired profits. There are five main components that make up a marketing plan, the executive summary, business challenge, market, strategy, and budget (Tanner, Jr. & Raymond, 2012). A well thought out and executed marketing plan will make it easier for an organization to decide if the plan will profit.
Edmonds, T. P., & McNair, F. M. (2013). Accounting for Merchandising Businesses. Fundamental financial accounting concepts (8th ed., ). New York, NY: McGraw-Hill/Irwin.
Wicks n ' More is known for their high-quality, hand-poured fragrance candles. I had the chance to sit down with the co-founders and former owners, Beckey and Kim Neal. Wicks n ' More was founded in 1998 by mother and daughter, in their home garage as a hobby. Both, Beckey and Kim, gave their opinion about a small family business and about their business experience. Our discussion of their business growth, product line, product strategy, and new inventions relates to the product development of a small business. Their business is successful and is now a multi-million dollar business where fragranced candles are sold all over the world.
For instance, convenience offerings are low-priced goods that consumers can effortlessly acquire because they are relatively ubiquitous while shopping offering requires the consumers’ effort in comparing and contrasting various brands and retail outlet to find the best product at a good price. Besides, while convenience products are needed on a daily basis, shopping goods may not be required on a daily basis and it has a higher price compared to convenience goods. (Tanner & Raymond, 2010). Furthermore, specialty products are different from convenience and shopping offering because it is more expensive from the previous offerings and it is also not commonly sold in retail outlets. The consumers are few and the products are purchased less frequently, which give it a high margin profit. Finally, unsought offerings are different from all because they could be acquired even when it may be unnecessary at the moment. It is a product of circumstance by any
Over the last decade, sales at general merchandise stores, pharmacies and drugstores, have grown at average annual rates of 6.0% and 7.5%, respectively, according to US Census Bureau retail trade data.
competition is other businesses that create handcrafted products customized to the individual. Research found websites that sold handcrafted items but few offered different variations to meet the customer’s preferences. This provides a unique product that is not currently being offered (Scarborough, 2011).
Q2. How did the sales and marketing affect operations when they began to sell standard pieces to retail outlets?
The nature of the business of retailing puts retailers at a assumed risk of incurring costs because products are bought with the assumption that consumers will purchase. Additionally there are external factors that may also pose risks such as natural disasters, theft, spoilage and fire. In other circumstances retailers also extends financial credit to customers in the form of credit sales which facilitates the smooth transition from retailers to the marketplace. Retailers are in constant contact with customers which gives them the opportunity to research and study buyer’s behaviour. This involves collecting information about changes in customer preferences, perception and shifts in the demand curve. Through advertising within their stores retailers are able to exhibit and introduce existing and new products to the marketplace. Ultimately retailers are in the business of selling products to customers to achieve their goals of generating
Starting a business is a challenging undertaking that requires detailed planning and intensive research. The modern dynamic market and economic changes demand for the adoption of a well through of business plan that incorporates the entire business requirements (Pinson, 2004). The Paradise Beauty Centre will be a small enterprise that will focuses on the production and distribution of beauty products in United States of America. The business plan will help the business managers and other employees in understanding the long-term and immediate goals and objective of the business.