Presentation on theme: "1 Susan Devine Age: 25 Gift Baskets. 2 Mission Statement Taste of Oregon Gift Baskets sells artisanal baskets filled with Oregons best regional gourmet."— Presentation transcript:
2 Mission Statement Taste of Oregon Gift Baskets sells artisanal baskets filled with Oregons best regional gourmet food, perfect for people who love food and are environmentally conscious. Opportunity Distinctive food from the Willamette Valley and surrounding areas are very popular with tourists and locals. These gourmet items are not typically carried by local food stores. There are no other gift basket retailers in Keizer or the surrounding area.
3 Business Profile Type of Business Taste of Oregon Gift Baskets is a retail business selling gift baskets containing gourmet food from Oregon to tourists and the local population. Legal Structure Taste of Oregon Gift Baskets is a sole proprietorship. I chose this structure because of the ease of set-up, the low set-up costs, and the ease of maintaining the company.
4 Qualifications Im qualified to run this business because: I managed a flower and gift shop for three years. This offered experiences and insights into the gift-giving industry. I have four years of experience working in an upscale retail environment which had a customer-centric focus. I have a degree in Communications from the University of Portland.
5 Market Analysis Industry NameGift Basket Industry (GiftBasketBusiness.com)GiftBasketBusiness.com Industry Size $2.3 Billion in sales (U.S. Market) Total PopulationPopulation of Keizer, OR, (37,000) plus tourists (10,000 per year), plus corporate employees (850). Target MarketKeizer residents who are between the ages of 30-45 with an average household income of $54,000 (25,900), plus tourists and corporate employees. Potential MarketBased on survey, 54% of Keizer residents in target market would buy a basket at least once a year (13,986), plus tourists and corporate employees. 47,850 24,836 36,750 Total Population Target Market Potential Market
6 Demographics Keizer residents between the ages of 30- 45 with an annual household income of over $54,000; tourists older than 21; corporate employees who fit the same profile as Keizer residents. Geographics Keizer, OR, in the Willamette Valley, north of Salem, near Portland and near Interstate Highway. Psychographics Interested in high quality, regional food and wine. Residents are proud of the Willamette Valley, tourists are interested in the region. Buying Patterns Keizer residents and corporate employees will buy gift baskets for special occasions and holidays. Tourists will buy gift baskets on impulse as part of their tourist experience. Target Market Segment
7 Competitive Advantage Taste of Oregon Cooks Basket Giving Thanks Factors $50 – $125 Quality of Product/Service Price Location Reputation/Brands Unique Factors/ Knowledge $45 – $165$55 – $130 Regional gourmet items, locally woven baskets. Focus is on cookware. Minimal food. Food-related, not regional. Chinese baskets. Premium regional food, only one on wine trail, custom hand-packed baskets Kitchen productsPre-packaged baskets Willamette Valley Wine Trail, Keizer, OR Salem, OR New to marketWell known, in business 3 years Well known, in business 10 years
8 Marketing Mix PeopleProductPlacePricePromotion Keizer residents, corporate employees, tourists in the Willamette Valley Advertising in wine trail brochures, local publications and newspapers; in-store promotions, corporate discounts, local events, Website Store located on the Willamette Valley Wine Trail Hand-woven gift baskets containing premium regional gourmet and specialty food items Three sizes $50, $85, $125
9 Promotional Mix Advertising Brochure, cards, postage, Website, ads $325.00 Publicity Press releases Personal Selling Booth at Willamette Valley Fall Festival Sales Promotion Corporate discounts Other Sales via Website Total Monthly Promotional Expense $325.00 Promotional Expense Monthly Amount Monthly Amount
10 Cost of Materials & Labor Materials Material DescriptionCost/Total QuantityCost per Unit Regional gourmet items$20.00 Basket8.00 Total Material Cost per Unit $28.00 Labor Labor Cost per HourTime (in Hours) to Make One Unit Labor Cost per Unit $12.000.25$3.00 Total Labor Cost per Unit $31.00 COGS (per Unit) $31.00
11 Economics of One Unit Selling Price (per Unit) $72.50 COGS (per Unit) 31.00 Other Variable Expenses (per Unit) 2.50 Total Variable Expenses (per Unit) 33.50 Contribution Margin (per Unit) $39.00 Description of One Unit of Sale: $72.50 (Average Cost of Gift Basket)
12 Average Monthly Fixed Expenses Fixed ExpenseAverage Monthly Expense Insurance $204.17 Salaries of Employees 500.00 Advertising 325.00 Interest 41.67 Depreciation 54.17 Utilities (Gas, Electric, Telephone) 375.00 Rent 1,500.00 Other Fixed Expenses Total Average Monthly Fixed Expenses $3,000.01
13 Time-Management Plan Schedule for a Typical Week Total Hours in a Week = 168
14 Monthly Sales Projections First Year Total Units Sold 1,095
15 Monthly Break-Even Units In an average month, the company will begin to make a profit after selling units. 77 3,000.01 39.00 =76.92
16 Projected Yearly Income Statement First Year Selling Price per Unit $72.50 Number of Units Sold 1,095 Total Sales $78,387.50 Variable Expenses 36,682.50 Contribution Margin 42,705.00 Fixed Operating Expenses 36,000.12 Pre-Tax Profit 6,704.98 Taxes @ 15% $1,005.73 Net Profit $5,699.15
17 Start-Up Investment Start-Up Expenditures ItemWhere Will I Buy This?Cost Rent & Security Deposit Landlord$3,000.00 Initial InventoryLocal Vendors4,500.00 Total Start-Up Expenditures $7,500.00 Cash Reserves Emergency Fund $1,499.98 Reserve for Fixed Expenses 6,000.02 $15,000.00 Total Start-Up Investment
18 ROS & ROI ROS: Return on Sales For My Business: Dollar Equivalent = ROI: Return on Investment For My Business: Dollar Equivalent = $5,699.15 $79,387.50 X 100 =7% ROS $0.07 $0.38 $5,699.15 $15,000.00 X 100 =38% ROI
19 Financing Strategy SourceAmountDebtEquityGift Personal Savings $5,000.00 Relatives/Friends $10,000.00 Investor Partner(s) Totals $15,000.00$10,000.00$5,000.00 $15,000.00 Total Start-Up Investment
20 Business Responsibility & Philanthropy Business Responsibility Use organic, local products whenever possible. Baskets woven by local artisans using sustainable materials. Philanthropy Contribute gift baskets to silent auctions that raise money for health-related causes and to support regional farmers markets. 1% of yearly net profit (after 3 years of business) to nonprofits assisting in the cure and prevention of breast cancer.
21 Business & Personal Goals Establish sales through the store on Willamette Rd. Develop a Website and begin generating sales through it. Learn more about sustainable farming procedures. BusinessPersonal Receive repeat orders online from tourists who visited the store. By the third year, increase sales through the Website so they are equal to in-store sales. In the fourth year, open a second store. Short-Term Long-Term Buy a home that would allow for a large garden. Consider going into business of producing an organic gourmet product, such as jams, for the regional market (and, if successful, selling it nationally).
22 Gift Baskets Thank you for your consideration.