Marketing My Business

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Marketing My Business

  1. 1. Cross-stitch4u “We will convert your idea into cross-stitch pattern. It’s online, fast and with a touch of love to cross-stitch art” Patterns Cross-stitch supplies Forum Classes
  2. 2. My key service would be converting picture or image into cross-stitch pattern or creating a custom pattern from customer’s detailed description using a computer based converting program. <ul><li>My short term goals </li></ul><ul><li>To learn how to create a website and explore specifics of online services </li></ul><ul><li>To research the market for PC products for creating cross-stitch designs </li></ul><ul><li>To get to know the competition </li></ul><ul><li>My long term goals </li></ul><ul><li>To offer more services for online ordering: supplies for cross-stitching, advice columns, and a blog for sharing ideas </li></ul><ul><li>To find a space for opening a store in addition to online services </li></ul><ul><li>To add knitting into all aspects of the business </li></ul><ul><li>To offer classes and organize a club to learn cross-stitching/knitting and to share ideas and experience. </li></ul>
  3. 3. Personal Skills, Experience and Resources <ul><li>Cross-stitching is my hobby. I make art work as little as few sq. in. and as big as 180 sq. in. I get my work framed and it makes a perfect gift or thank you piece </li></ul><ul><li>I have a PC based program for converting images into cross-stitch designs. I use these designs or buy ready designs from a store </li></ul><ul><li>I am working in accounting, therefore, I have a knowledge in handling business accounts </li></ul><ul><li>I bring into the business: </li></ul><ul><li>- my time </li></ul><ul><li>- computer </li></ul><ul><li>- computer based program for converting images into the cross-stitch designs </li></ul>
  4. 4. Break Even Analysis 22 patterns per month Break even units/ Average pattern Average pattern 110 units or $22 Average 1 pattern per day 2,400 units per month Monthly overhead/ contribution margin Break even units $240 Internet service + Marketing + Time for processing orders Monthly overhead $0.10 Price – Direct cost Contribution margin $0.10 Time spent working on 1 unit Direct cost $0.20 1 sq. in. of pattern 1 unit
  5. 5. Market Potential <ul><li>I was thinking to start my business online. Therefore, it is very difficult to define market. For that matter, I chose to start from researching market around my living area, Albany, because it gives me benefit of knowing the area and ability to reach a customer on a more personal level. </li></ul><ul><li>Cross-stitching is the leisure craft for anyone who enjoys art and has patience to make it themselves. These criteria can fit many people: </li></ul><ul><ul><li>Mostly woman and teenage girls who are not interested in very active lifestyle </li></ul></ul><ul><ul><li>Retired, mature men, who are not afraid to reveal their interests anymore </li></ul></ul><ul><ul><li>Any person who is interested in self-made crafts and arts </li></ul></ul><ul><li>According to infousa.com, there are 565,664 potential customers (one per household) in the surrounding four counties (Alameda, Contra-Costa, Marin, San Francisco). All these people have access to personal computers, therefore, the online service might be appropriate for them. </li></ul>
  6. 6. Survey and its Results Analysis <ul><li>Survey to get information about: </li></ul><ul><ul><li>Are people interested in cross-stitching; </li></ul></ul><ul><ul><li>What ways people get patterns for their cross-stitching; </li></ul></ul><ul><ul><li>Are people interested in getting pattern creating service; </li></ul></ul><ul><ul><li>How much they are willing to pay for the service; </li></ul></ul><ul><ul><li>What other services they would be interested to get in addition to this one. </li></ul></ul><ul><li>I distributed Survey through eperalta.com/spring2011, amazon.com, e-mails . </li></ul><ul><li>Results: </li></ul><ul><ul><li>56% don’t know how to cross-stitch and don’t want to learn it; </li></ul></ul><ul><ul><li>Ones who are interested in cross-stitching : </li></ul></ul><ul><ul><ul><li>makes their own patterns using PC program or looks for it in the stores (Jo-Ann, Michaels); </li></ul></ul></ul><ul><ul><ul><li>63% are interested in a service for converting images into cross-stitch patterns; </li></ul></ul></ul><ul><ul><ul><li>80% would be willing to pay $21-$30 for the service; </li></ul></ul></ul><ul><ul><ul><li>In addition to the pattern creating service, respondents also would like to buy cross-stitching supplies and frame their work </li></ul></ul></ul>
  7. 7. Competitive Analysis -pattern making service -local classes <ul><li>does not convert images into patterns </li></ul><ul><li>located in Crystal Lake, IL </li></ul><ul><li>no local classes offered </li></ul>-everything I would want in the shop www.welcomestitchery.com -pattern making service -local classes -forum <ul><li>does not convert images into patterns </li></ul><ul><li>-no classes </li></ul><ul><li>-no forum </li></ul>-provides detail tutorial and advice for converting images into patterns by you www.laydenwithstitches.4t.com -local classes -forum and advise column -no classes -no forum -converts images into cross-stitch patterns -not expensive www.picturecraftwork.com -local classes -advise column - no local classes offered -converts images into cross-stitch patterns -has message blog www.crosstitch.com <ul><li>local classes </li></ul><ul><li>not expensive </li></ul><ul><li>located in Sweden, Europe </li></ul><ul><li>no local classes offered </li></ul><ul><li>very expensive </li></ul><ul><li>has 9615 members from around the World </li></ul><ul><li>pattern making service </li></ul><ul><li>has busy forum with advice column </li></ul>www.goldenkite.com My advantage Weaknesses Strengths Competitors
  8. 8. Marketing strategies <ul><li>Product Lines: </li></ul><ul><ul><li>Service of creating custom cross-stitch pattern from: </li></ul></ul><ul><ul><ul><li>digital picture </li></ul></ul></ul><ul><ul><ul><li>detailed description of an image </li></ul></ul></ul><ul><li>Positioning: </li></ul><ul><ul><li>I would offer not expensive service of creating cross-stitch pattern; </li></ul></ul><ul><ul><li>Will create forum for sharing ideas and advice; </li></ul></ul><ul><ul><li>Will offer classes for cross-stitch learning: </li></ul></ul><ul><ul><ul><li>at first, online detail instructions with chat and advice column; </li></ul></ul></ul><ul><ul><ul><li>later, live local classes for neighborhood children (in association with schools, YMCA, or local youth clubs) and adults </li></ul></ul></ul><ul><li>Pricing: </li></ul><ul><ul><li>The product is priced according to how many price units it contains. Price unit is 1 sq. in. of pattern. </li></ul></ul><ul><ul><li>Prices are not high comparing to competitors because: </li></ul></ul><ul><ul><ul><li>I will start business online; </li></ul></ul></ul><ul><ul><ul><li>I have computer; </li></ul></ul></ul><ul><ul><ul><li>I have PC based program for converting images into cross-stitch pattern </li></ul></ul></ul><ul><ul><ul><li>I have full-time job to cover my living expenses and I organize my business only for love for cross-stitching. </li></ul></ul></ul><ul><ul><li>I chose to price product per sq. in. of the pattern because that way customer has clear idea how much would pattern cost depending on its size. </li></ul></ul>
  9. 9. Marketing Strategies (cont’d) <ul><li>Placement and Distribution: </li></ul><ul><ul><li>Service will be provided online </li></ul></ul><ul><ul><li>Customers can place orders through: </li></ul></ul><ul><ul><ul><li>service website; </li></ul></ul></ul><ul><ul><ul><li>ads in other needlework websites with pricing and downloadable order form; </li></ul></ul></ul><ul><ul><ul><li>mail-in order form from ad in a local print. </li></ul></ul></ul><ul><ul><li>Finished orders will be distributed by: </li></ul></ul><ul><ul><ul><li>e-mail as attachment; </li></ul></ul></ul><ul><ul><ul><li>through mail (standard price for chosen kind of mail will be added to a total service price). </li></ul></ul></ul>
  10. 10. Marketing Strategies (cont’d) <ul><li>Promotions: </li></ul><ul><ul><li>Advertising tools: </li></ul></ul><ul><ul><ul><li>Pay Per Click advertising in related websites; </li></ul></ul></ul><ul><ul><ul><li>Use share advertisement with provider of complemented product; </li></ul></ul></ul><ul><ul><ul><li>Ads in e-zines, online classified ads, and blogs; </li></ul></ul></ul><ul><ul><ul><li>Add service website link to search engines and directories; </li></ul></ul></ul><ul><ul><ul><li>Pass out flyers or business cards at local schools, colleges, stores and other public areas; </li></ul></ul></ul><ul><ul><ul><li>Ads in local printed Yellow pages, classified ads, newspapers, and billboards. </li></ul></ul></ul><ul><ul><li>Public relations and Networking: </li></ul></ul><ul><ul><ul><li>Free classes/presentations in local public events; </li></ul></ul></ul><ul><ul><ul><li>Organize local club with promotional sessions for school students and YMCA members; </li></ul></ul></ul><ul><ul><ul><li>Join PTA and sponsor local school events </li></ul></ul></ul><ul><ul><li>Other: </li></ul></ul><ul><ul><ul><li>To ask customers to send a picture of finished work and open a gallery of art for others to enjoy and to show service at its work </li></ul></ul></ul>

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