Introduction
J&J Bridal Salon will be a low-cost one-stop shop for couples in Silicon Valley who require high quality products and services.
The company’s products and services will include wedding gowns, rings, accessories, shoes and others for both selling and renting.
The business will run on a full time basis with five employees, including the owner. However, additional independent fashion consultants may be sought as demand increases.
Targeted Business Concept for the Bridal Salon
J&J Bridal Salon will differentiate itself from current bridal salons by offering unique customized products and services to customers (Scarborough & Zimmerer, 2012). A well-formulated differentiation strategy will ensure the company deals with the high-level of competition in Silicon Valley. Several bridal shops in the area have failed to offer low-priced wedding gowns and accessories. As a result, many couples shun wedding as grossly expensive. J&J Bridal Salon aims to change this notion.
Several current bridal shops have less competitive prices and therefore lockout many young potential customers. In addition, bridal salons require exceptional customer experiences, which J&J Bridal Salon will provide.
As mentioned previously, J&J Bridal Salon will be one-stop shop solution for all wedding affairs. Customers will get all relevant solutions at the Salon.
Competitive Advantage
J&J Bridal Salon will create competitive advantage through its quality human resources, products, service and pricing (Butow, 2004). It will offer a wide range of wedding gowns and other accessories to match different tastes. In addition, there would be products for rental. This would ensure that customers spend within their means and afford the best gowns and accessories at reasonably low prices.
J&J Bridal Salon will differentiate itself through excellent customer service. The company intends to meet all its deadlines as schedules by hiring additional trained consultants when the demands increase. No customer will experience delays at J&J Bridal Salon. Customers will have the flexibility of arranging for meetings, booking appointments or providing their details through the company’s Web site.
J&J Bridal Salon will rely on its employees and hired consultants to deliver the best products and services to its customers. Knowledgeable employees will guide clients and ensure that they get the best choices for weddings and celebrations.
These strategies will ensure that J&J Bridal Salon achieves its goals and attracts customers from other states. Besides, the company will open stores in high potential areas once it is well established. The stores will be designed to appeal to customers who can legally marry irrespective of their ages. Therefore, promotional materials will target couples, including those who want to remarry and renew vows. In addition, J&J Bridal Salon shall offer pre-wedding counseling to couples at small fees for additional incomes.
Build or Buy?
It would be a sound business decision to buy an existing bridal salon and rebrand as J&J Bridal Salon. This strategy would eliminate challenges associated with starting a new business. Before choosing an appropriate business to purchase, it would be prudent to understand business performance, liabilities and staff. Nevertheless, only reputable businesses will be considered. J&J Bridal Salon will realize the following advantages from buying an existing bridal business. First, the salon will be running. This will eliminate startup challenges and reduce time it takes to start a new venture.
Second, the company will rely on existing customers for growth and start earning revenues immediately. Third, in case the company shall require financial support for expansion, then it would be simple to get loans from lenders. Fourth, the existing business will provide a clear insight about the market and possible challenges. Any oversight will be handled carefully. Fifth, J&J Bridal Salon shall leverage on current employees to deliver quality products and services and hire trained consultants to create competitive advantage by meeting deadlines. Finally, there is already an existing customer base and demands for products and services.
On the other hand, buying an existing business may have some drawbacks for the company. First, the proprietor may not be able to transform old trends so fast. Moreover, employees might not be ready to adapt to changes and new management. Second, buying an existing bridal salon could be much expensive relative to starting a new one.
In addition, customers and potential referrals may not do business with the new owner, particularly if the previous one had established close personal relations with the customers. Third, it could be difficult to turn around a neglected, loss making business. Fourth, an existing business may have existing obligations and contracts, which J&J Bridal Salon will have to honor. Finally, the location of the business may also affect the company, specifically before any expansion strategies are implemented.
Starting a new bridal salon would offer some advantages, which the proprietor may not find in an existing one. The most important fact is that the business can be customized to meet unique taste of the owner.
Overall, J&J Bridal Salon will buy an existing business because starting a new one could present the above mentioned challenges. In addition, the fundamental approach is to plan and invest in a sound venture. The proprietor believes that buying a business would offer capabilities and a team that can help in implementing the plan.
The most appropriate form of ownership
J&J Bridal Salon will be a sole proprietorship business in order to eliminate several legal requirements and achieve the intended goals fast. The owner will observe all legal requirements and make important decisions to ensure growth of the company.
A sole proprietorship presents several strengths to the owner. It will be simple to acquire and run because individual makes effective decisions within a short time (Buttress & Macke, 2008). The owner will save time on several meetings and agreements noted in other forms of businesses (Scarborough & Zimmerer, 2012). Moreover, the proprietor will have complete confidentiality over the business and monitor all business processes. A sole proprietorship will eliminate extra legal costs incurred in other forms of businesses (Buttress & Macke, 2008). This approach will ensure the company achieves its potentials within a short duration.
J&J Bridal Salon shall collaborate with new partners in the future. This approach would ensure the company achieves its strategic expansion strategies. Consequently, the established business will also attract more business partners in the future. A sole proprietorship will make it easier for the owner to monitor all employees. This approach would ensure the company expands its operations. The business shall also monitor its profits and losses to adjust strategies for attracting and retaining more customers (Butow, 2004).
A business plan
Mission
The company intends to develop a reputation of low-cost pricing, quality products and services and reliability.
J&J Bridal Salon promises to deliver variety, selection and quality at low-cost for every bride
Target Market
The company targets the following customer segments:
- Young couples
- Couples intending to remarry
- Couples planning anniversaries
- Special groups (gay couples)
Marketing mix (4Ps)
J&J Bridal Salon strategy will consider place, pricing, products, people and promotion. In addition, the company will evaluate market and competitors.
Place
J&J Bridal Salon will be located on 1061 Blossom Hill Road. The area has attracted many single young people, mainly aged between 22 to 40 years old. This age group is most likely to get married in the Silicon Valley.
Pricing
J&J Bridal Salon pricing strategy will meet the needs customers who require products and services that range from low to medium price ranges. This will help the company to grow the customer base and act as an alternative for price sensitive couples.
People
J&J Bridal Salon has recognized the rising population of working, well-paid young people in Silicon Valley. These demographic characteristics are critical for the company’s growth. Although many customers may travel from other locations to search for suitable gowns and accessories, many will come from San Jose area. The company will also appeal to couples who want to remarry at any stage in their lives.
J&J Bridal Salon will employ experienced wedding consultants and assist in finding the perfect style for couples for the entire wedding arrangement.
Products
J&J Bridal Salon will provide one-stop for its customers who seek designer wedding gowns, rings, accessories, headpieces, invitation cards and tuxedos both for selling and for renting.
The company would recognize the importance of time in wedding planning and therefore it will offer a flexible schedule for all its customers.
Promotion
J&J Bridal Salon promotional strategies shall target couples, including gays who intend to get married, wed or to celebrate anniversaries. It will use local fashion magazines, Web sites, social media and traditional media. The company will strive to sponsor some wedding events for live coverage to promote its products and services.
Competition
J&J Bridal Salon has evaluated the market and found that there could be strong competition from Elegant Lace Bridal, Bloom Bridal Boutique, Brides of California, Rin’s Bridal and Nouvelle Bridal Boutique among others. The company can easily overcome many of its potential competitors through its business strategy of low pricing, appropriate location and effective customer service.
Capital requirements
The proprietor intends to invest $5 million to purchase an existing business and rebrand it. The initial investment will also be used for promotion, to hire new staff and train current ones on products and customer service.
References
Butow, E. (2004). Starting Your Business: Costs, Structures, and Pitfalls. Intercom, 51(10), 20- 23.
Buttress, S., & Macke, D. (2008). Energizing Entrepreneurs. Economic Development Journal, 7(4), 20-25.
Scarborough, N., & Zimmerer, T. (2012). Effective Small Business Management: An Entrepreneurial Approach. Upper Saddle River, NJ: Prentice Hall.