To market, to market

1
To market, to market

• Getting your scooter jacket to the customer

2
The retailers objective

• Turn one bag of money (your initial investment)
  into many bags of money by having the right
  merchandise at the right price available to the
  right customer at the right time in the right
  place.

3
Financial Model

• Markup or Margin
• The T-shirt company
• Impact of markdowns!
• Planning, planning, planning

4
Inventory Turnover

• Retailers reuse their investment capital over and
  over
• Buy merchandise, sell it for more than paid for
  it use excess to pay the bills.
• Every time you sell an item, its cost is returned
  to store along with markup which is used to pay
  bills and earn profit.
• Turnover varies by merchandise classification.
• Jacket turnover would be between 3 and 4 in most
  department stores

5
Inventory Turnover Calculation

• Inventory T/O Net Sales
• Average Inventory
• Shoes 1 X
• Junior Girls Dresses 13X
• U. Book Store 4X
• Scooter Jackets?

6
The Retailers Problem

• What will sell in what quantities in this
  classification in 6 months to one year subject
  to
• Changing tastes
• Changing economic conditions
• Changing technology
• Changing supplies
• Trend analysis
• Uncertain supply chain developments

7
Retailers concerns when selecting merchandise

• Matching merchandise to the target market
• Competitive product comparisons style, design,
  price, quality, etc.
• The Value Equation
• Quality units/price Value
• PLC and Rate of Adoption Stages
• Deals discounts, coop advertising, freight
  considerations, shipping dates, quantity
  limitations

8
Which Distribution Channels?

• Scooter Clubs
• Internet
• Retail Stores
• Direct Mail?
• Ads in Scooter magazines

9
Scooter Clubs

• Right Target Market
• Short term exposure
• The price is right - free!
• Potential customization
• Others?

10
Internet

• Target market finds you - you hope!
• Flexible, can contain a lot of information
• With a new product, will people know to look
  for it? How do you generate awareness?
• Very cheap!
• Who pays the freight?

11
Retail Stores

• Exposure in scooter stores builds awareness, hits
  right target market
• How do you get the retailer to buy the jackets?
  What is your angle?
• Costly samples, personal selling, backup
  inventory
• Financial advantage retailer pays you!

12
Direct Mail

• Purchase mailing list - scooter magazine
  subscribersetc.
• Mailings can be costly and less effective
• Direct Mail can effective - when?
• Catalogs - yours or those of others

13
Ads in Scooter Magazines

• Can you get accompanying media coverage?
• Orders from the ad?
• The Avon Experience

14
Others?

• Parties, infomercials, QVC -
• Your ideas..

15
Guerilla Marketing

• Unconventional marketing intended to get maximum
  results from minimal resources. Coined by Jay
  Conrad Levinson, guerilla marketing is more about
  matching wits than matching budgets. Guerilla
  marketing can be as different from traditional
  marketing as guerilla warfare is from traditional
  warfare. Rather than marching their marketing
  dollars forth like infantry divisions, guerilla
  marketers snipe away with their marketing
  resources for maximum impact.

16
What will you do?

• Challenge to make the target aware that a
  special scooter jacket exists that will better
  suit the needs of the rider than existing
  alternatives.