Business Plan


BUSINESS DESCRIPTION
Oak Furniture Warehouse, is a furniture store specializing in the selling of furnishings constructed hardwoods, the bulk of which will be oak, to Coeur d’Alene area customers. The store will be a show floor/warehouse, with 85 percent of the available space open to the customers. The merchandise has been carefully selected to be affordable to the majority of consumers along with higher line items for upgrades and future purchases.
Oak Furniture Warehouse, plans to open for business during January, 2000. The store will be open Monday thru Friday, from 10:00 am till 8:00 pm and Saturday, from 10:00 am till 6:00 pm.
· In the strong and stable furniture sales market, Oak Furniture Warehouse will stand out as a leader in customer service and quality craftsmanship.
· A strong customer focus, an accessible location and a broad product line will enable the establishment to slowly and steadily develop a loyal customer base.
The retail demand for home and office furnishings is seasonal and business in Coeur d’Alene fluctuates according to the seasons. Primarily, the Oak Furniture Warehouse, will attract business during seasonally slow months through a comprehensive marketing and promotional strategy to generate additional revenues in these slack periods. Secondly, by directing attention to the business and home office markets, which budget more on a fiscal basis. Finally, there is no direct competition in the area giving The Oak Furniture Warehouse an advantage in the lack of competition.
MARKET PROFILE
Oak Furniture Warehouse, will provide quality, competitively priced specialty furniture not yet available from a single source in the Coeur d’Alene metro area. The goal is to sell solid, well built furniture through a knowledgeable and professional sales staff in an inviting atmosphere, that will encourage customers to return to the Oak Furniture Warehouse for all their home furniture needs.
¨ The well crafted quality of our product.
¨ The affordable pricing and group discounts.
¨ Convenience of a local location.
¨ Our convenient location, where ample parking is available.
¨ Word of mouth advertising from past customers.
CUSTOMER PROFILE
The 4 major categories of customers are:
¨ First time buyers, recently out on their own
¨ Young families - renting or purchasing a home
¨ Families updating their existing furnishings
¨ General population fulfilling a need for furniture
Younger family being our largest market target.
According to research (Washington State Business Journal, 1990 US Census, and area statistics) the target customer for home furnishings is as follows:
¨ Educated female
¨ Twenty two to thirty two years old
¨ Lives with her family in a home
¨ Family income of $30,000 to $45,000.
Experience has shown that on the average, customers are ready to update their furniture every six years and this would translate into a stable source of future sales.
DESCRIPTION OF COMPETITION
Black Canyon Oak Originals - 901 N. 3rd, Coeur d’Alene, ID
A high end, specialized furniture store with limited floor space and inventory. Targets the more affluent homeowners and resort area tastes.
· 4 years in business
· 3 sales persons, 1 warehouse person no delivery
The Furniture Broker - 609 W. Appleway, Coeur d’Alene, ID
A large franchise furniture showroom specializing in upholstered lower quality furniture located north central Coeur d’Alene. The furniture broker is well-financed and uses extensive advertising campaign. They offer a large array of mass produced accessories for sale from it’s retail floor.
· 2 years in business
· 3 sales persons, 2 warehouse persons, area delivery
Runge Furniture Co. - 303 E. Spokane Ave., Coeur d’Alene, ID
A large store that has a good reputation and has been in the area for many years. They offer all home furniture, of all hardwood types and are priced high for the market. They only carry expensive, well known makers of furniture. Their staff is friendly and knowledgeable.
· 43 years in business
· 3 sales persons, 1 warehouse person, area delivery
MARKETING STRATEGIES
Being a new store the primary plan is to have a grand opening sale, lasting 9 days (over two weekends). Advertising will be through the local newspaper, flyers will be sent out to all new home buyers within the last 6 months, renting of a balloon for location exposure, having a clown on the first two weekends and to give away one bedroom set as prize for visiting the new Oak Furniture Warehouse.
Ongoing advertising will be shared with the Spokane stores, which consists of Yellow Pages