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Strategic Plan

for

The Turquoise Elephant Boutique

Prepared by

Western Carolina University

Joseph Bridges, Austin Cash, Brittany Pennell, Emily Smith, Austin Truitt, Kylee Vowell, Mary Catherine Whitley

April 2019

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Table of Contents

Table of Contents 1

Organization Profile 4

External Situational Analysis 5 Industry Analysis 5 Environmental Scan 5

Political 7 Economic 7 Social 7 Technological 7 Ecological 7 Legal 7

Environmental Scorecard 8 Market Analysis 8

Competitive Rivalry 9 Threat of New Entrants 9 Threat of Substitutes 9 Bargaining Power of Suppliers 9 Bargaining Power of Buyers 9 Market Analysis Scorecard 9

Competitive Benchmarking 11 Competitive Benchmarking Scorecard 11

Internal Analysis 13 Value Chain Analysis 13 Resource Review 15 Resource Review Checklist 15 Core Competencies 17

SWOT Analysis 18 SWOT Analysis 18

Strategy Selection and Strategy Map 22 SWOT to Strategy 22 Strategy Map with KPI’s 23

Recommendations 24

Social Media Schedule 25

Conclusion 30

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Executive Summary Core Values Statements “Our mission is to help ladies of all ages and sizes feel unforgettable by offering clothing that is classy, comfortable, stylish, and affordable.” Turquoise Elephant wants to strive to build a relationship with each customer by being friendly, sincere, and kind. They want to help customers find clothing that makes them feel good, but mostly want them to feel special every time they walk into the boutique. Company Information The store is located in Waynesville, North Carolina. It is owned by partners Sheree Rose and Mallory Bermudez. The store opened its doors in 2016. They sell a variety of women’s clothing and accessories. As of now, they have a few part-time employees excluding themselves. They are in the process of beginning to have monogramming services available. Marketing Strategy Recommendations Our strategic recommendations can be summarized into two main goals which are Financial Stability and Market Development. These can each be divided into three action steps. For Financial Stability, the steps are: develop an effective budget, determine the best items for the product mix, and review expenses to see if costs can be reduced. For Market Development the steps are: Utilize resources to enhance marketing efforts, monitor social media and increase customer engagement, implement marketing campaigns through online tools. Competitive Advantage Their competitive advantage is the fact that they can provide a personalized shopping experience for individual customers because of their size while also being able to provide affordable prices for clothing and accessories that may not normally be found at a good price range. They will also soon have monogramming available which comes with a high level of personalization and they will be the only ones in the area to have this capability. Recently, they have implemented a Drop Shipping which is not common among smaller boutiques so this definitely sets them apart. Competition Currently, they are having to compete with small boutiques in the Waynesville area as well as the larger department stores in the area. In addition to these, there is the mall and outlet mall in Asheville that offers many options for similar products.

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Organization Profile

● Founded:

○ 2016

● Address:

○ 1360 Asheville Rd, Waynesville, North Carolina, 28786

● Contact Information:

○ Sheree: Shereeglee@gmail.com (828-550-3877)

○ Mallory: (828-564-3609)

● Annual Sales:

○ $198,415

● Key Employees:

○ Sheree Rose and Mallory Bermudez

● About Key Employees:

○ Mother-daughter duo

○ Mallory oversees digital marketing

○ Sheree oversees physical store front

● Main Products:

○ Tunics, Kimonos, Dresses, Jewelry, Monogrammed Personalized Items

● Direct Competitors:

○ Robin Blu, Belk, High Country Style

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External Situational Analysis The primary purpose of an external analysis is to determine the opportunities and threats in a specific industry in order to further promote growth and profitability. This section will consist of an industry analysis, environmental scan, market analysis, and competitive benchmarking in order to determine the opportunities and threats that our client may face.

Industry Analysis An industry analysis is an overview of the current business environment that is typically completed by business owners. This analysis allows businesses to gain a competitive advantage by understanding the different economic, political, and market factors that may influence how the industry develops. We were able to utilize IBISWorld to complete this analysis. IBIS Industry Definition This clothing boutique industry includes small retail stores that offer a limited range of apparel and accessories. The industry is defined as single-establishment stores only. Boutiques can be designer based (i.e,. only one designer’s collection is sold there), or they may sell a mix of brands that are specifically catered to the local market. Main Activities

● Selling boutique women’s wear ● Selling boutique men’s wear ● Selling boutique children’s wear ● Selling boutique footwear ● Selling boutique accessories

Key Success Factors

● Accessibility to shoppers ● Knowledgeable salespeople ● Having a loyal customer base ● Attractive window and in-store displays

Total Revenue: $21.3 billion Number of Businesses: 154,730 Annual Growth: -2% from 2013-2018 Major Players The Clothing Boutiques industry is composed of small retail stores that have only one location. Consequently, there are no players in the industry that are large enough to gain a significant market share. While revenue for the industry totals $21.3 billion in 2018, revenue for the average company totals about $137,745. Businesses in this industry usually have fewer than

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five employees or are classified as nonemployers, meaning they are operated entirely by the boutique owner (IBISWorld Industry Report, May 2018, Anya Cohen).

Environmental Scan Environmental scanning is the process of gathering information about events and their relationships within an organization’s internal and external environments. By completing environmental scanning, an organization is then able to identify opportunities and threats to further develop new objectives and strategies.

Political ● The current political climate can impact tariffs and the price of imported goods. This

trend could potentially affect clothing boutiques due to the fact that many boutiques use overseas suppliers. This trend could affect Turquoise Elephant if they ever choose to pursue overseas suppliers.

● Buying locally is a highly encouraged and popular trend in the United States. Consumers of the clothing boutique industry may have a particular stance or attitude on whether they want to buy from a business that purchases their products from overseas vendors. Many consumers like to buy products that are made in the United States because of the improved quality. By doing business with suppliers within the country, clothing boutiques such as Turquoise Elephant will better cater to this market.

Economic ● The economic trend of the decline in disposable income decreases the amount of money

people have to spend. The city of Waynesville has a median household income of $34,602, which is significantly lower than the average US income and a poverty rate of 22.2%, which is 10% higher than the US average. Because of these factors, it can be assumed that few residents of Waynesville have excess amounts of disposable income. For Turquoise Elephant to be successful in this market, they will need to provide goods that align with the consumer’s income.

● The tourist industry in Waynesville and surrounding areas (Lake Junaluska, Maggie Valley, etc.) has been growing exponentially in past years and will continue to grow at a steady rate. The economic impact from the tourism industry in Haywood County was $155.38 million in 2013 and was expected to increase along with the overall increase in tourists. Because of this trend, the customer base is expected to grow for Turquoise Elephant in the peak tourist months.

Social ● The fashion and clothing industry is ever-changing which is a trend that can both

positively and negatively affect clothing boutiques. Clothing boutiques who may not have enough capital to keep their inventory stocked with new items will be negatively affected by this trend. However, clothing boutiques who have enough capital to keep their inventory stocked with trendy pieces will draw the attention of more customers.

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● As fashion changes, so do the style differences between old and young generations. This trend will positively impact Turquoise Elephant because of the fact that they offer clothing lines and styles that cater towards both demographics.

Technological ● The major technological trend that we found was that in the past five years, online sales

of clothes have increased by 12.7%. It is expected that in the next five years, the percentage of services conducted online will continue to increase at an annualized rate of 7.2%. As online shopping increases in popularity, it is important for clothing boutiques such as Turquoise Elephant to have an online presence. Having an aesthetically pleasing and functional website can differentiate Turquoise Elephant from their direct competitors, drive sales, and increase brand loyalty.

● With the trend of technology rapidly evolving, many clothing boutiques are adopting the latest POS systems and inventory management systems. It will be important for Turquoise Elephant to adopt new technologies that can help them run more smoothly and increase efficiency, ultimately accommodating more customers and prompting sales to increase.

Ecological ● As the trend of becoming environmentally conscious and cutting down on consumer

waste increases, so does the trend of upcycling and sustainable fashion. Upcycling is the act of reinventing an old item in order to make it better than the original. This trend will negatively impact clothing boutiques such as Turquoise Elephant due to the increasing number of environmentally conscious consumers who are not currently purchasing new products.

Legal ● A major legal trend that faces the clothing boutique industry is the terms and agreements

between the boutique and their suppliers. Many suppliers that work with clothing boutiques offer 30-60-90 day terms. If a clothing boutique doesn’t pay their balance in full by the time the term is over, they are charged interest and gain a bad reputation in the industry.

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Environmental Scorecard

Factors Influential Trends Strength (-2 to +2)

Political Factors ● Tariffs – political climate can affect the price of imported goods

● Buying locally is highly encouraged – buy from local businesses and vendors rather than overseas

- 2

+ 1

Economic Factors ● High unemployment and poverty rate – disposable income per capita

● High amount of tourist traffic in the area

● Population growth in Waynesville and surrounding areas

- 2

+ 2

+ 2

Social Factors ● Age distribution – style differences between old and young generations

● Keeping up with changing trends

+ 1 -/+ 2

Technological Factors ● Online shopping – need a working website to keep up with competition

● Increase social media presence ● Update POS and inventory

management systems in order to efficiently meet consumer needs and monitor sales mix

+ 2

+ 2

+ 1

Ecological Factors ● Sustainable fashion is increasing in popularity – recycling clothes

- 1

Legal Factors ● Potential suppliers – outsourcing ● Supplier terms and agreements ● Labor laws

- 1 -/+ 1

- 1

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Market Analysis A market analysis evaluates the favorability of the market for an organization’s product or service offerings. Through this market analysis we were able to use Porter’s Five Forces model to more accurately examine Turquoise Elephant’s position in the clothing boutique industry.

Competitive Rivalry This factor measures the extent of competition among existing firms. Intense rivalry can limit profits and lead to price cutting, increased advertising expenditures, or spending on product improvements and innovation.

Threat of New Entrants This factor represents the ease of which potential competitors will enter the industry. A highly profitable industry will attract a higher number of competitors looking to achieve profits. The entry barriers are low in the clothing boutique industry which could pose a threat to those already participating in the market.

Threat of Substitutes This factor represents the ease to which consumers can substitute a product or service in a different way or outside the given industry to meet their needs.The threat of substitutes is high when competitors offer more attractive or lower cost products.

Bargaining Power of Suppliers This factor is determined by the ease in which suppliers can pressure an industry by increasing their prices. Suppliers are typically most powerful when companies are dependent on them and cannot switch suppliers because of high costs or lack of alternatives.

Bargaining Power of Buyers This factor refers to how easily customers can influence an industry’s margins by demanding a lower price for their products or higher quality products. The bargaining power of a strong buyer can make an industry more competitive while also decreasing the profit potential for the sellers.

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Market Analysis Scorecard

Rating 1-10 (unfavorable to favorable)

Supplier Power 7

Threat of Substitutes 5

Buyer Power 4

Threat of New Entrants 6

Intensity of Competition 4

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Average 5.2

Scoring Analysis Supplier Power A score of seven was chosen for the power of suppliers. It is favorable for Turquoise Elephant due to suppliers having limited bargaining power within small business. Small businesses pay suppliers for providing clothing and accessories to sell and these businesses desire trendy and quality clothing at a lower price. If the quality of clothing disappoints customer clientele, or if the supplier charges too high of a price, then the buyer (i.e., Turquoise Elephant) will not continue purchasing items through that supplier. The bargaining power of suppliers is low due to the competitiveness within all suppliers. Because of this, suppliers must remain price and quality conscious. Threat of Substitutes A score of five was chosen for the threat of substitutes. As online shopping and upcycling become increasingly popular, the threat of substitutes for the clothing boutique industry rise. Turquoise Elephant will be at a high risk of being substituted by online shopping because of the convenience and popularity of it. Due to technological advances, smartphones make it possible to order clothing within minutes. Online shopping displays continuous growth patterns through 2022, therefore, this form of substitution is going to remain constant over the course of many years.

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Buyer Power A low score of four was chosen for the power of buyers. This score was chosen due to the fact that Turquoise Elephant has nine different competitors that are within a four mile radius of their store. Because of this, buyers who aren’t having a pleasant shopping experience or can’t find what they need would be able to easily leave and go somewhere else. Buyers in this area have a very low switching cost and are able to easily become loyal to another store. This could cause Turquoise Elephant to not generate enough revenue to sustain their profitability. Threat of New Entrants A score of six was chosen for the threat of new entrants. Currently, the clothing boutique industry is at a high risk, high reward state for new entries. The threat of new entrants in this specific industry is not very high and the cost(s) for new businesses to compete with bigger companies are far too great along with the risks associated. In the Waynesville area specifically, due to the high unemployment rate and lack of disposable income, we do not foresee many new clothing boutique entrants emerging which is favorable for Turquoise Elephant. Intensity of Competition A score of four was chosen for the intensity of competition. This is unfavorable because of the high competitive rivalry in the fashion industry. Companies that have similar products offerings make the market heavily saturated, thus resulting in more fierce competition between rivals. In the Waynesville area specifically, Turquoise Elephant is competing against a handful of other boutiques and department stores that have very similar product offerings.

Competitive Benchmarking Competitive Benchmarking is the process of comparing a company against a number of their direct competitors using a set collection of critical success factors. Below, we were able to compare Turquoise Elephant to three of their local competitors in order to better understand how they rank among their competition.

Competitive Benchmarking Scorecard

(Score 1-5 with 5 being most favorable relative to a comparison of the group)

Critical Success

Factors

Our Company

Turquoise Elephant

Competitor 1

Robin Blu

Competitor 2

Belk

Competitor 3

High Country Style

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Customer Experience 4 4 2 3

Product Differentiation 3 4 2 2

Quality and Style of Product

3 4 3 2

Desirable Location 2 4 4 5

Online Presence 3 4 3 4

Personal Customer Relationship

4 4 2 3

Store Image 4 5 2 3

Average

3.2 4.1 2.6 3.1

Positive Attributes

- Owners have personal connections with customers - Positive customer experience - Alternative to more expensive shops

- Very active on social media - Offers wide variety of unique items - Able to ship items

- Wide variety of products, many choices - Well priced - Popular location

- Has two desirable locations - Functional and detailed website

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Negative Attributes

- Website is not up and running - Location not ideal

- Location off of Main Street

-Very disorganized store - Difficult to find customer service

- Styles very similar to competitors

Internal Analysis In the internal analysis, the value chain analysis, resource review, and core competencies of Turquoise Elephant were analyzed. Through the internal analysis, strengths and weaknesses can be identified. Knowing strengths and weaknesses can help an organization determine what advantages and disadvantages they have, which assists in further understanding of the organization and in developing a strategy.

Value Chain Analysis The value chain represents the internal activities of an organization. Each step in the value chain analysis adds value to the final product that is delivered to the customer. Depicted below are primary activities of the value chain, which are the activities that are directly involved with producing the product.

Inbound Logistics Operations Outbound Logistics

Marketing & Sales Customer Service

Selecting suppliers that offer affordable products that consumers actively and consistently demand

Hours of operations

Shipping products to customers who order via social media or via phone

Billboard in Maggie Valley/Paid ad in local Haywood County newsletter

Welcoming and helpful employees, and friendly store atmosphere

Inventory Control Loyalty Program (ex: one $20 spend equals one stamp and 10 stamps equals $20 off entire purchase)

Live try on sessions and customer/TE chat discussions via social media platforms

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Supplier turnaround time is one week

Social Media: (Instagram and Facebook Presence)

Multiple suppliers to choose from

Promotions (ex: Spring Sale 20% off all day)

Participating in community events

Primary Activities: Inbound Logistics Turquoise Elephant purchases from 20 suppliers for their clothing, accessories, and home goods. The suppliers used by the boutique offer products for sale that are currently trending, and are sold at an affordable price. After purchasing from a supplier, the turnaround time is one week. Operations Turquoise Elephant has limited operations because they are a boutique. Monday through Friday the store is open from 10am-6pm. On Saturday the store is open from 10am-4pm. On Sunday the store is closed. Outbound Logistics Distribution of Turquoise Elephant primarily takes place in-person between employee and customer at the Turquoise Elephant store. However, the boutique does offer the ability to ship products to customers who order through social media or through a phone call. The store has a relationship with the Waynesville postal office allowing for quick and easy shipment of ordered goods. Marketing and Sales Turquoise Elephant utilizes multiple marketing methods to reach their customers. The boutique has placed a billboard ad in Maggie Valley to drive business, especially with seasonal tourists. To drive business with local customers, they bought into a paid ad in the Haywood Country newsletter, as well as participating in different community events (e.g. fashion show). They have an online presence on the social media platforms of Instagram and Facebook. Lastly, they offer loyalty programs for incentivizing returning customers as well as various promotions.

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Customer Service Customer service is an important asset that Turquoise Elephant has to offer. Their employees are welcoming to new and returning customers. They also make themselves available to customers by helping them find the best product for their wants or needs.

Resource Review The resource review checklist helps in identifying the resources of an organization. The review serves to determine if each resource is valuable in that it provides opportunities or minimizes threats, rare in that competitors do not have the resource, costly to imitate, and organized to capture value. When a resource has all four components, they are a strength for the organization and an asset to sustainable competitive advantage.

Resource Review Checklist

List Resources

·

Valuable Rare Costly to imitate

Organized to Capture value

Strength

Embroidery Monogram Machine (Upcoming)

✔ ✔ ✔ ✔ ✔

Customer Service ✔ ✔ ✔ ✔ ✔

Affordable Prices ✔ ✔

Shopify ✔ ✔ ✔

Drop Shipping (Upcoming) ✔ ✔

Limited Product Line ✔ ✔

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Reasoning: Embroidery Monogram Machine (Upcoming) This resource was marked as being valuable, rare, costly to imitate, organized to capture value, making it one of two total strengths of Turquoise Elephant resources. The monogram machine is labeled as valuable and rare because it provides a service that is not widespread or easily accessible in the Waynesville area. The machine is labeled as costly to imitate because it is a large financial investment, making it financially for some other businesses to obtain the machine. Lastly, the machine is organized to capture value because it offers a service that will meet a customer need that is not being met in the area, as well as bringing in additional revenue. Customer Service Turquoise Elephant is strongly committed to customer service, leading this resource to be checked as valuable, rare, costly to imitate, organized to capture value. Customer service can make or break any business, making it a valuable resource. The resource is valuable to the boutique because it sets them apart from the competition, as it is not a skill that every business has. Again, the resource is rare because not every business is competent in offering a memorable customer service experience. For businesses that do not already have strong customer service skills, the resource can be costly to imitate because new employees may need to be hired, or training may need to be implemented. Lastly, customer service is organized to capture value because offering a positive customer service will motivate customers to return, as well as draw in new customers from positive word of mouth. Affordable Prices Turquoise Elephant focuses on providing its customers products to be purchased at an affordable price. Therefore, providing products at an affordable price point is valuable because they are the only boutique in the area with that price point, which allows them to reach a different set of customers. This is also organized to capture value because, by price products lower than the competition, it makes their products more accessible to individuals who want to pay less for their clothing. Shopify Shopify is a service that Turquoise Elephant uses to measure specific data like total traffic, total sales, and average order value. Therefore, Shopify is a resource that is valuable, because it provides detailed information and data that can be analyzed to improve the boutique. The resource is costly to imitate because there is a financial cost associated with it. Shopify is marked as being organized to capture value because the resource provides data that provides detailed information on the business and can be utilized to make effective changes.

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Drop Shipping (Upcoming) Drop Shipping is an online boutique service through Shopify that Turquoise Elephant will be using in the near future. The service provides a way for the boutique to reach a new market with products that are different from those offered in the store. Drop Ship is a valuable resource because it allows Turquoise Elephant to reach a new market and tap into a new revenue source. Limited Product Line Turquoise Elephant primarily sells shirts, dresses, one brand of jeans, and assorted accessories, essentially have a more focused, limited product line. Offering a limited product line is valuable and organized to capture value because the boutique has a set focus when purchasing new products from suppliers, customers know what to expect, and they purchase items that will sell.

Core Competencies Core competencies are unique strengths that an organization has that helps them differentiate the products or services offered to customers. In the analysis of core competencies, major products and services of Turquoise Elephant were identified. With each product and service identified, a list of key features that draw customers to purchase and value the items was developed, as well as the common themes between them. By identifying this information, an organization is able to understand their unique strengths and identifying what draws customers to the products or services.

1. Your product or service

2. Key features or benefits of each product and service that your client’s customers really value

3. Common themes

Best Sellers: Tunics, Kimonos, Dresses

● Variety of colors ● Comfortable ● Functionable ● Broad size range (x-small to plus) ● Makes versatile outfits

● Fashionable and trendy clothing at an affordable price

● Caters to all sizes of women

● Unique pieces

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Vinyl Monogram (Upcoming Embroidery)

● Allows customers to personalize products that cater to their specific needs

● Matte, gloss, and semi-gloss options along with an extended amount of color choices.

● Multi-material compatibility ● Multifunction features ● Professional appearance

● Customizable apparel allows for personalization of products

Jewelry ● Allows customers to express style

● Many different types of jewelry to choose from

● Available at an affordable price

Strong Customer Service

● Better communication ● Richer customer experience(s) ● Greater customer

loyalty/retention ● Enhanced business reputation.

● Superior customer satisfaction

Transactions via Social Media

● Convenient for customers ● Increases customer engagement

levels ● Allows out-of-area customers to

purchase TE items

● Increasing convenience and direct conversation/ engagement with customers

SWOT Analysis A SWOT analysis is a framework for identifying and analyzing the internal and external factors that can have an impact on a business. By utilizing the SWOT analysis, businesses are able to gain a better understanding of their current and future position in the marketplace. By using analyses such as the external analysis (industry analysis, environmental scan, market analysis, and competitive benchmarking) and the internal analysis (value chain analysis and resource review) we were able to create a table of strengths, weaknesses, opportunities, and threats. The following SWOT analysis summarizes Turquoise Elephant’s current situation.

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SWOT Analysis

Strengths Weaknesses

● Provides strong customer service through positive customer interaction (welcoming/friendly presence)

● Has a growing social media presence where they engage with their customers

● Offers affordable prices ● Local customer base ● Monogram machine will catch the

attention of customers– provides TE with an additional way to increase their profit

● Broad product offerings ● Offers a wide variety of sizes (ex:

petite, plus size) ● TE has a willingness and is open to

change

● Financial Restrictions– limited funds for product purchasing and distributing

● Cash Flow Problems– not budgeting effectively; money coming in and not being allocated efficiently

● Insufficient Marketing Efforts, not taking advantage of marketing potential

● Maintenance Issues ● Location ● Limited Technical Knowledge ● Not utilizing Shopify or MailChimp

to full potential (ex: marketing campaigns)

● Unestablished Target Market ● Understaffed ● Trying to take on too much and not

having any specific focuses ● Currently not utilizing

monogramming machine

Opportunities Threats

● Opportunity to bring in new customers through expanding via e-commerce

● Tapping into the WNC tourist market

● Growing population of Waynesville could generate more business

● Integrate new products (new brands, make use of monogram machine)

● Ability to use monogramming as a method of differentiation, and being

● Lack of differentiation between Turquoise Elephant and competitors

● Not being able to keep up with constantly changing trends and styles

● Lack of disposable income in the Waynesville area

● Substitutes– online retailers (e-commerce), upcycling, etc.

● Competitors that are close in proximity to Turquoise Elephant

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the only business in the area to offer monogramming service

● Expanding marketing and advertising strategies (set aside a budget for these new expenses)

● Reach out and develop strategic partnerships (ex: upcoming movie theatre launch and fashion show)

(ex: other boutiques, mass retailers)

● Differing internal interests ● Increasing competition in the e-

commerce market ● Low barrier of entry for online and

brick-and-mortar competition ● The ability for individuals to

monogram from home or outsource monogramming

Strengths Customer Service- Turquoise Elephant heavily relies on the Waynesville locals to play a major part in their business. By having great customer service and giving each shopper one on one interaction, they have been able to create strong customer loyalty within the local community. Wide variety of products- Turquoise Elephant has a wide variety of offerings and products for customers to choose from. This means they have the ability to attract more customers within their market segment. Local competitors carry clothes and jewelry; while Turquoise Elephant carries item categories such as home decor and accessories. Affordable Pricing- Low pricing is a strength that Turquoise Elephant possesses over their competitors. While maintaining quality products, Sheree and Mallory have set their in-store pricing to a minimum compared to their local competitors. This brings in many local shoppers as many in the area do not have excess disposable income. Weaknesses Financial Restrictions- Turquoise Elephant is lacking the necessary funds to purchase the trendy and in style products that they want to carry in their store. This is due in part to the fact that Turquoise Elephant has products that do not sell as well as others and are taking up room on the sales floor. These funds could be spent on better selling items to increase revenue. Insufficient Marketing Efforts- Turquoise Elephant is not currently utilizing marketing and advertising tools such as various social media platforms, Shopify, or MailChimp which inhibits them from reaching a wider range of potential customers.

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Unestablished Target Market- Turquoise Elephant does not currently have an established target market. They carry items in-store that cater towards an older demographic and are also in the process of releasing a website that offers juniors clothing. This could create confusion among potential customers regarding what Turquoise Elephant does or doesn’t carry. Opportunities Integration of New Products- By integrating new products, such as personalized items using their embroidery monogramming machine, Turquoise Elephant will be able to begin differentiating themselves among their local competitors and stand out in the minds of their customers. Making use of this expensive monogram machine will improve their return on investment and initiate their revenue growth. WNC Tourist Market- The tourist industry in Waynesville and surrounding areas (Lake Junaluska, Maggie Valley, etc.) has been growing exponentially in past years. Marketing effectively towards this market using social media and billboards will allow Turquoise Elephant to expand their customer base and generate more revenue during their peak seasons. Expanding Marketing and Advertising Strategies- By taking advantage of social media, Shopify, and MailChimp, Turquoise Elephant will be able to further establish a credible reputation while also gaining a competitive advantage over their competitors. Threats Lack of Differentiation- Turquoise Elephant carries very similar clothing items compared to their local competitors. Because of this lack of differentiation, customers can easily switch their brand loyalty from Turquoise Elephant to a competitor. Differing Internal Interests- Sheree and Mallory of Turquoise Elephant have had some differing ideas and visions for Turquoise Elephant. These specifically include differing opinions and ideas on what their target market and overall brand identity should be. This internal conflict could ultimately hinder Turquoise Elephant’s growth and profitability in the long run. Constantly Changing Trends- If Turquoise Elephant does not keep up with the constantly changing trends of the fashion industry, they will lose their competitive advantage against local boutiques, department stores, and online retailers. Not having adequate capital to invest into their inventory prevents them from keeping up with these trends.

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Strategy Selection and Strategy Map A SWOT analysis compares strategies based on combinations of strengths, weaknesses, opportunities, and threats. The good strategies are those that take advantage of the strengths and opportunities while at the same time minimizing the weaknesses and threats. The process of developing the grand strategies begins with finding combinations with high levels of synergy among your companies strengths, weaknesses, opportunities, and threats. For example, the top priority for Turquoise elephant was Market Development. Before we developed this, we found out that weakness 2 (Insufficient Marketing Efforts) had a high level of synergy with that of O2(Expand Marketing and Advertising Strategies. Knowing that these two had a high level of synergy gave us the opportunity the know that we needed to develop a strategy to improve on market development.

SWOT to Strategy

Priority Fit Strategic Direction Grand Strategy

1 W2-O2 Utilize accessible promotional material such as Mailchimp and Shopify to gain a competitive advantage and earn a credible reputation. Maintain superior growth by using social media to interact and engage with prospective and active customers to improve brand loyalty.

Market Development

2 W1-T3 Develop an extensive budget to accurately forecast future expenditures over a 12-month period, which includes incorporating strong efforts to build and implement a savings account. Shopify provides numerous tools that can measure specific data that TE can benefit from financially (i.e., conversion rates, total traffic, total sales, and average order value).

Financial Development

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Strategy Map with KPI’s

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Recommendations

Market Development: (Grand Strategy 1) Our first recommendation is to develop Turquoise Elephants market by utilizing current marketing and CRM tools. We also suggest that T.E begins to track their social media analytics in order to increase leads and brand loyalty.

● Utilize current resources to enhance marketing efforts.

Turquoise Elephant has numerous marketing resources available to enhance their marketing efforts. These resources include CRM softwares such as MailChimp and Shopify. Currently, these resources are being paid for but are not being utilized. With these resources at our disposal, we feel that there is a significant opportunity to gain a competitive advantage over the local competition. Using CRM tools such as Omnisend to strengthen relationships with current customers while building relationships with new consumers will ultimately increase store traffic and enhance profitability. Staying in touch with consumers is key, it is crucial that T.E focuses on building these relationships while seeking to convert leads into loyal customers. Most importantly, we suggest that Mallory and Sheree take time every day to learn how to utilize these tools effectively. When it comes to marketing, learning never stops, and you certainly don’t want to be left behind by competitors marketing efforts.

● Monitor social media analytics

Monitoring social media analytics is directly correlated with enhanced marketing efforts and increased profitability. Platforms such as Instagram and Facebook have built-in analytical tools that allow you to track the customer's journey and their interaction on your social pages. With the strong following that Turquoise Elephant has on social media, it is crucial to track customer interaction in order to make profitable adjustments. For example, if a post of a sale gains traction and has substantially more interaction with consumers than another, you may want to resurface that post with the same sale in the near future. Analytics is all about what works and what doesn’t, so minimizing strategies and post that are ineffective will allow you to create a more genuine and profitable relationship with consumers. Track your numbers and make the appropriate adjustments; this will simply strengthen your social presence and build the T.E brand.

Financial Development: (Grand Strategy 2) Our second recommendation is to develop our finances, effectively spending, reallocating and saving revenues.

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● Develop an extensive budget. Without a budget, we believe that T.E has had difficulty tracking expenses. With a $25,000 loss last year, we suggest that T.E develops a budget to help maintain and limit spending. We also believe that a budget will help spend money more efficiently. Our team recommends that Mallory and Sheree open a savings account to help stabilize T.E’s current financial situation; saving 5% of revenues per month. Having a budget will allow T.E to narrow down insufficient expenses and reallocate money in a more effective way. Remember, it will be necessary to adjust the budget as time goes on but always make sure to stay as true to the initial budget as well as you can.

● Utilize tools to allocate funds more efficiently

Tools such as Shopify will allow Mallory and Sheree to see which items are selling and which items are not. Shopify allows you to easily develop your product mix. With a large amount of in-store product not being purchased as much as it should, this forces Mallory and Sheree to discount the product(s), resulting in a loss of revenue. By cutting down on items that aren’t selling, you allow your expenses to decrease which ultimately results in an increase in revenue. Developing your product mix is correlated with efficient spending. Determining what the most profitable product mix is will allow your business to grow substantially. Our team suggests that Mallory and Sheree cut down on products that are not contributing to profitable product mix by 70% by September 30th, 2019.

Social Media Schedule

Objective To get visibility and have strong presence in their social media platforms focusing on Instagram and Facebook. Purpose To improve their brand awareness and increase Turquoise Elephant follower engagement in their social media platforms. Creating interesting, attractive, and compelling content will improve their brand awareness when the audience is liking, reacting, commenting, and sharing the social media posts. Also engaging with the audience and customers by encouraging them to comment, like and share Turquoise Elephant posts as well as answering their comments and inquiries will promote the follower engagement.

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Facebook: Facebook is one of the most used social media platforms amongst Turquoise Elephant’s target group which makes it an important marketing channel. Therefore, it is crucial to establish an effective presence in Facebook, although it might be challenging to stand out. Postings:

● Information about the collections ● News about events and buying’s ● Quality pictures/videos ● Different competitions and giveaways ● Sharing content relevant to Turquoise Elephant

Recommendations:

● Posting 4 times per week ● Focusing on special days (special offers/competitions/giveaways) ● Separating audiences and customers defining the demographics ● Integrating various hashtags on every post

Considerations:

● Utilizing Facebook ads to reach larger audience and gain new followers. ● The organic reach of every Facebook post is limited which means that all TE followers

might not see all the posts. ● With Facebook ads, posts can be promoted to reach more audience and target the posts

to a certain group of people. ● Viewing and tracking Facebook metrics on a weekly basis to determine the best time(s)

and day(s) to post as well as which type of content is receiving the most engagement.

Instagram: Instagram is the another platform to reach Turquoise Elephant’s target audience and it has established a presence equipped with 2,831 followers. Instagram will be used to attract, engage, inform and inspire the audience. Posts:

● Content about the collections ● Pictures of the collections ● “Behind the scene”- pictures ● Lifestyle posts ● Quality content

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Recommendations: ● Pay attention to the overall feed, filters, colors, fonts, and the overall harmony and flow

of the page. ● Pay attention to the quality of the photos; the size and the pixels. ● Post (at minimum) 5-7 days per week, no more than twice a day.

○ If you need to post more, use multiple pictures on the original post. ○ (Instagram allows you to add up to 10 in a single post) ○ Or use the ‘story’ feature to highlight additional content.

● Comment and like competitors, partners, and customers posts ● Encourage customers to like and share your content ● Do not use glitter borders and other collage techniques. Follow the same theme/pattern

for every post. Considerations:

● Use the feature to promote your individual posts ● Use Instagram ads to target the content to a specific group and gain new customers ● Incorporate Shopify feature to Turquoise Elephant marketing actions

Note: It is important to use the same filter for every post and follow the same theme. Posts in Instagram should not be as informative than in Facebook. It is crucial to use high-quality content. Content Ideas:

● Seasonal collections and outfits ● Behind the scene pictures ● Product details ● Trending topics and visual trends ● Business decisions and milestones ● Asking questions and feedback ● Holidays and events ● Contests and surveys ● Inspiring quotes related to Turquoise Elephant ● Storytelling ● #MonogramMonday ● #TrendyTuesday - show how to style new arrivals or most popular selling items. Try to

incorporate flat lays. ○ #TuesdayTrivia - ask a question about your business or something unique about

the month and provide a small incentive for the first correct answer. ● #WaynesvilleWednesday - post about an upcoming event in Waynesville and mention

that you can pick up an outfit here at TE for the event.

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● #ThursdayThoughts - ask questions to your audience and see if they would be interested in this piece of clothing, or that piece of clothing. Record the responses to understand consumer needs/wants to accurately order your next inventory.

● #FeatureFriday - post about a specific item (or line) of clothing or accessory you want ‘spotlight’ to get consumers attention.

○ #FreebieFriday - use this hashtag on Friday’s that you want to offer an incentive to come in the store. The ‘free’ item could range from something small such as a free TE sticker with every purchase made today or something larger such as a free pair of earrings with a 50$ purchase.

● #SaleSaturday ○ #SaturdaySpecial

■ #SaturdayStyle ● #ShoutoutSaturday ● #SmallBusinessSaturday

Perform A Content Audit: Performing content audits routinely is extremely important since it helps you to determine several things about your social media pages including:

● Content which requires editing for improved quality ● More updated and current content ● Content which should be removed ● Content gap opportunities ● Which content, hashtags and keywords are working

Schedule: Social media is all about quality, not necessarily quantity. That is why it is crucial to perform detailed planning and develop a social media marketing schedule that helps you to reach the results you desire. Use both Facebook and Instagram metrics to discover what time(s) and day(s) your target audience is using social media. One way you can do this is by experimenting. Try posting different content at different times and follow up by using the accessible metrics to see what works the best. You need to create a schedule plan that is tailored to what you can keep up with, follow, and maintain for every social media platform and post. This will give you a clear understanding to what content needs to be posted and what time and date you need to deliver it by. Once you have this developed, you will never miss important dates. Posting content regularly at designated times increases brand reliability and credibility. It shows professionalism and that you have a persistent, strict routine that you actively follow by.

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What To Do Daily: ● Check any notifications that appeared when you were offline ● Respond to comments, inquiries, and problems as soon as possible ● Review that everything is working ● Review which posts are getting the most likes and responses and take notes • Schedule

your comments for the rest of the day ● Comment and like other brands content – Interaction is the key ● Follow back ● Schedule your posts for the next day

What To Do Weekly:

● Experiment with different posts what content and time creates engagement and likes ● Review trending topics related to Miss Chic Bohé ● Check your competition

○ What are they posting? ○ What is their follower base? ○ How much interaction are they getting on average and which posts get the most?

● Make new connections ○ Start following other brands and users who are your target audience

● Update your social media ads ● Post your own content

TO DO MONTHLY:

● Draft content and advertisement(s) ● Plan and schedule content for the next month ● Plan with calendar – look up for special dates (i.e. valentine’s/ Graduation) ● Revise upcoming website ● Track email subscribers and new followers coming from all social media platforms ● Take fresh, new and high-quality pictures ● Run campaigns and competitions ● Track and record marketing results ● Analyze the results and make conversions ● Set goals for the future

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Conclusion We understand that as business owners, you all would not be able to tackle all of the important issues all at once. We recommend looking at the recommendations we made and address them one by one. While we recommend addressing S1 first, which is financial stability, we know that ultimately it is your choice. Implementing these recommendations will take time and will not happen overnight, but they will have a significant impact and are necessary to the success of your business. We would like to thank you for giving us the opportunity to work with your company and allowing us to help you grow and become a stronger brand. If you have any questions, feel free to contact any one of us, as well as Dr. Aho. We are always willing to help.