cmp 2014 final 1

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I. EXECUTIVE SUMMARY “The aim of marketing is to get customers to know, like and trust you.” ~ Unknown RATIONALE FOR SELECTING RESEARCH PROBLEM The Alma DECA Creative Marketing Project for 2014 was based on the Marketing Department’s school based enterprise, aire-looms. For the past five years the SBE’s gross sales had steadily climbed, but this fall, sales were down significantly. The project aimed to find answers to the following questions: 1. What is the cause of the decline in sales? 2. Is there a secondary target market that the SBE can reach and gain as customers? 3. Will a promotional plan for the holiday season help increase sales? 4. Is the product mix meeting the needs of the SBE’s customers? 5. What can the SBE do to maintain sales into the new year and beyond? To find out what was happening in our SBE the project chairman formulated a research plan and with the help of the Alma DECA Chapter, conducted primary and secondary research, worked on designing the components of a promotional plan, staffed the SBE during the holiday promotional event, and designed new products for special sales promotions. Along with support and input from community members, the project chairmen and the Alma DECA Chapter worked to energize the SBE. RESEARCH DESIGN 1. Define the problem A decline in sales in our school based enterprise 2. Obtain the data Secondary research: business articles, government sites, trade publications Primary research: two surveys, focus group, observations research, personal interview 3. Analyze the data Compile the information from all of the research into useable information 4. Recommend solutions Come up with potential solutions and present them to officials 5. Apply the results Put research results into action 1

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Page 1: CMP 2014 Final 1

I. EXECUTIVE SUMMARY“The aim of marketing is to get customers to know, like and trust you.” ~ Unknown

RATIONALE FOR SELECTING RESEARCH PROBLEMThe Alma DECA Creative Marketing Project for 2014 was based on the Marketing Department’s school

based enterprise, aire-looms. For the past five years the SBE’s gross sales had steadily climbed, but this fall, sales were down significantly. The project aimed to find answers to the following questions:

1. What is the cause of the decline in sales?2. Is there a secondary target market that the SBE can reach and gain as customers?3. Will a promotional plan for the holiday season help increase sales?4. Is the product mix meeting the needs of the SBE’s customers?5. What can the SBE do to maintain sales into the new year and beyond?

To find out what was happening in our SBE the project chairman formulated a research plan and with the help of the Alma DECA Chapter, conducted primary and secondary research, worked on designing the com-ponents of a promotional plan, staffed the SBE during the holiday promotional event, and designed new prod-ucts for special sales promotions. Along with support and input from community members, the project chair-men and the Alma DECA Chapter worked to energize the SBE. RESEARCH DESIGN

1. Define the problemA decline in sales in our school based enterprise

2. Obtain the dataSecondary research: business articles, government sites, trade publicationsPrimary research: two surveys, focus group, observations research, personal interview

3. Analyze the dataCompile the information from all of the research into useable information

4. Recommend solutionsCome up with potential solutions and present them to officials

5. Apply the resultsPut research results into action

FINDINGSSignificant findings from the research included:

1. The 16-20 age group was the dominate market, which is a change from previous years of the 32 plus age group so the SBE needs to retain the current market and regain the 32 plus group

2. Females make us the largest percentage of customers3. 89% of the respondents would like an on-line site for ordering products4. Social media sites were popular so an Instagram site would be beneficial5. The SBE is clearly the preferred retailer of Airedale apparel and gifts.6. T-shirts are the most popular piece of merchandise that aire-looms offers for sale

SOLUTION TO RESEARCH PROBLEMThe solution was to create an effective promotional plan to creatively market aire-looms throughout

the holiday season and to analyze the effects of our promotional plan as we begin a new quarter in January. Getting back to the basics of the $10-$15 t-shirt should increase sales figures, as well as locating additional rev-enue streams. MAJOR RECOMMENDATIONS/OUTCOMES FROM PROJECTRecommendation 1: Increase promotional efforts, especially social mediaRecommendation 2: Insure the product mix meets the needs and wants of the target marketsRecommendation3: Create additional revenue streams. Recommendation 4: Continue to monitor the fluctuating market

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II. INTRODUCTION

A. Statement of problem

For the past five years the Alma DECA Chapter’s school based enterprise, aire-looms, gross sales had

steadily climbed, but this fall, sales were down significantly.

After reviewing aire-looms financial statements with the DECA advisor, it was noticed that our SBE

was experiencing a fluctuation in gross sales in 2013 when compared to the same month from previous years.

At that point, we decided action was needed to see what was causing the decrease in sales. We decided to cre-

ate a promotional strategy for our SBE, more specifically; we worked with our chapter to create a promotional

plan to promote an annual event we call Holiday Open House that is held yearly in December. An additional

goal was to examine the current product mix to determine if the current products offered for sale were meeting

the needs of the SBE’s target market. The creative marketing project aimed to find answers to the following

questions:

1. What is the cause of the decline in sales?2. Is there a secondary target market that the SBE can reach and gain as customers?3. Will a promotional plan for the holiday season help increase sales?4. Is the product mix meeting the needs of the SBE’s customers?5. What can the SBE do to maintain sales into the new year and beyond?

B. Significance of problem studied

As five year members of the Alma DECA Chapter, we take an interest in the business of our chapter;

one of those areas is the operation of our school based enterprise, aire-looms. As we began this school year, we

observed that there was a change in our customer demographic and after discussing this with our advisor we

discovered a decline in sales in aire-looms for August, a slight recovery in September, and then a steady decline

in the following month. We recognized the need to create a new product mix and a promotional mix in order to

boost sales for the month of December, to find out what was causing the decline in sales and to discover what, if

any, additional revenue streams could be acquired. The proceeds from aire-looms are retained in the business to

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use for operations and are used to defray costs of Alma DECA members attending conferences, so there was a

financial component that was important.

C. Background information

Description of Business

Opened on December 21, 2007, aire-looms is a school-based enterprise developed, implemented,

organized and operated by the Marketing Education and DECA students at Alma High School and Alma Middle

School. It is a hands-on laboratory that is managed and operated by students and is located in the Promenade at

Alma High School.

aire-looms is a retail establishment

that offers Airedale apparel, spirit items, totes

and bags, miscellaneous gift items, costume

jewelry, school supplies, and a limited line of

seasonal gourmet items. Services offered at

aire-looms include free gift wrapping and

delivery of gifts to the schools in the Alma

School District.

The purpose of aire-looms is to provide Marketing Education and DECA members with real-world

experiences in marketing competency areas of product development, market research, management, selling,

distribution, buying, promotion, pricing, financing, and other retail operations.

The mission of aire-looms is to provide quality products at reasonable prices for the students, the

staff, and the community along with a high personal level of customer service.

aire-looms submitted documentation for and received Gold Level Status in February of 2009, Gold

Level re-certification in February of 2010, 2011, 2012, 2013, and has received Gold Level certification again

in 2014. aire-looms is the first school based enterprise in Arkansas with Gold Level certification from

DECA Inc.

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Improvements made in aire-looms during the past year include a store security tagging system,

streamlining worker duties, implementing a successful marketing plan, expanding the Small Business

Operations class, creating a Facebook account for the SBE, and adding a customer database which was

organized for the purpose of sending email blasts to the customers.

aire-looms hours are before school from 7:45 to 8:15, re-opening daily at 9:30 to 4:00, and before

home sporting and special events, and at other times by appointment.

Many customers have commented on how aire-looms has the feel of a boutique. This image, the

commitment to providing quality apparel and products, and meeting the needs and wants of the customers, is

what sets this school-based enterprise apart from its competitors.

Description of the Community

Nestled at the foothills of the beautiful Boston Mountains, the City of Alma, Arkansas, offers that small

town ambiance known throughout the Ozarks. Known as the “Spinach Capital of the World,” Alma offers the

best of both worlds-city life and country living. In Alma, you can enjoy a relaxed, residential living

environment and the natural beauty of our pristine mountains all around. Only 20 miles east of Fort Smith, the

University of Arkansas Fort Smith, hospitals, entertainment and shopping, Alma is settled in a great area to use

all of this.

Geographic

The city of Alma, Arkansas, lies within the Arkansas River Valley at the base of the Ozark Plateau in

the northwest region of Arkansas. It is 432 feet above sea level and rests in the transition zone created by the

Arkansas River between the Ozark Plateau to the north and the Ouachita mountains to the south. Because it is

located near the river, much of the land is excellent for sustaining large crops or livestock. The climate of the

region is very mild with little to no snow in the winter and hot temperatures in the summer. This winter,

however, has been very harsh, with the area experiencing many days of snow and ice.

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Alma is an important location for travelers. Nestled on the intersection of I-540 and I-40, Alma is the

primary stopping rest point for those traveling to or from Little Rock or north to Fayetteville. Most of the town

is structured around or on Highway 71 N, a scenic bypass.

Alma also plays host to an array of wonderful natural scenes and is near many others. From here,

visitors and natives alike can enjoy hiking and fishing at the city park, beautiful drives through the countryside,

and even horseback riding or off-road riding along various trails and dirt roads.

Nearest city with population of

City Name Distance from Alma in miles

Exact population

50,000+ Fort Smith, AR 14.8 mi 80,268200,000+ Tulsa, OK 126.1 mi 393,049

1,000,000+ Dallas, TX 256.3 mi 1,188,580

Nearest Cities to AlmaCity Name Distance from Alma in miles

Rudy, AR 4.4 miKibler, AR 4.5 miDyer, AR 5.7 mi

Van Buren, AR 9.2 miMountainburg, AR 11.0 mi

Mulberry, AR 11.3 mi

The following map shows the location of Alma in western Arkansas and its surrounding cities. Alma,

Arkansas, lies in the latitude of 35.49 N and a longitude of 94.22 W and has a land area of 4.81 square miles.

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This map shows the location of the city Alma, Arkansas, in the United States.

Demographic

The population in Alma, as of July 2013, is 5,471 showing a 31.5% increase in population

since 2000.

Statistic Number PercentageMales 2,567 46.9%Females 2,904 53.1%Median Resident Age 32.8 yearsArkansas Resident Age 42.2 years

The average age of a person in Alma is 32 years old and females make up a greater portion of the

population than males by 6.2%.The percentage of white non-Hispanics in Alma is 89.5%. Other races that make

up the community are Hispanics (4.2%), American Indians (1.8%), Blacks (1.6%), Hawaiian (.02%), Asian

(.4%), two or more races (2.5%), and other races (0.04%).

Residents of Alma are generally educated with 86.3% of the people have high school diplomas or

higher, 15.6% have received a bachelor’s degree or higher and 5.9% have a graduate or professional degree.

Only 7.7% of Alma’s residents are unemployed. Over half of the community’s residents are married (63.6%),

while others are divorced (11.6%), have never been married (16.2%), or are widowed (5.1%).

Alma’s public school system includes five schools, plus the administrative offices and the transportation

garage. Students attend Alma schools from surrounding communities including Rudy and Dyer. Mulberry,

Mountainburg, Kibler, Fort Smith, Van Buren and others students can attend Alma Schools by school choice.

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The Alma School District is made up of five campuses. Alma High School, Alma Middle School, Alma

Intermediate School, Alma Primary School and Alma Opportunity School.

Economic

Alma compared to Arkansas state average:

Median household income is $32,849, well below the state average of $38,758. Median house value is $120,000 which is above the state average of $106,300. Unemployment percentage of 7.7% is slightly above the state average of 7.2% Black race population percentage of 1.7% is significantly below state average of 15.4% Hispanic race population percentage of 4.2% is below state average 6.4% Mean travel time to work is 22.8 minutes Persons below the poverty level is 25.8% which is above the state average of 18.7% There are fewer than 25 businesses in the Alma area Alma is relatively comprised of average income, Caucasian families.

Competitors

The main competitors of aire-looms are:

Walmart Dick’s Sporting Goods Sports Academy Petals and Stems Captive Images Generic Online Stores Miscellaneous small shops in the area

aire-looms is able to compete with their local competitors in both price and non-price factors.

The major business that offers similar items to aire-looms in the Alma area consists mainly of

Walmart. The items at Walmart are an inferior quality and are not the correct school spirit colors. A small print

shop in Van Buren, Arkansas, makes some Airedale hoodies and t-shirts for women but do not have a wide

product line. This store is about a 15 minute drive from Alma.

In order to compete with Walmart, aire-looms is using the tagline as the “Official Home of Airedale

Apparel and Gifts.” Walmart has not ordered as much Airedale apparel as they did last year, but what they do

have is priced lower than aire-looms. Also, branding has been discussed with the school district’s

superintendent so that aire-looms would own the logos that are currently able to be used by anyone who

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wants to print an Airedale spirit shirt. Currently, the Director of Student Services and our Marketing Advisor

are working on the logos that we will trademark.

There are several non-price factors that set aire-looms apart from all of the competition. The level of

personal service at aire-looms cannot be matched. aire-looms will provide free gift wrap and provides

free delivery to the Alma area schools. aire-looms staff will call customers when products they know that

customer will like are in stock, and take time to help customers mix and match products to get just the right

Airedale look!

Description of Alma High School and Alma Middle School

At Alma High School there are 1,066 students which is the highest enrollment of any school in the

district. The high school is located at 101 East Main Street and consists of grades 9 – 12. The Alma High

School student body is 93% Caucasian and the rest is a mix of Native American, Hawaiian, Asian, Hispanic,

and African American.

Alma Middle School is located at 706 Highway 64 East. The grades at this school are 6 – 8. There are

796 student; 94% percent are Caucasian.

Description of the Alma DECA Chapter

The Alma DECA Chapter consists of 179 total members, 3 advisors, 20 professional members and 156

student members. The members are in grades 8-12. The club is led by an officer team that is responsible for

the program of work. The Arkansas State President and Vice-president of Civic Consciousness are members of

Alma DECA. Alma DECA has been the Arkansas DECA Chapter of the Year for the past eight years.

III. PROCEDURES AND RESEARCH METHODS USED

A. Description of secondary research conducted

Secondary research uses outside information assembled by government agencies, industry and trade as-

sociations, labor unions, media sources, chambers of commerce, and so on. It's usually published in pamphlets,

newsletters, trade publications, magazines, and newspapers. Secondary research involves internet sources and

U.S government sources to learn about topics such as demographics and economic conditions. There are also

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consumer and business publications to use where you can gain knowledge about the business climate. Business

and trade information can be obtained in publications such as Forbes Magazine, Advertising Age, The New

York Post, and The National Retail Federation which are valuable secondary research tools.

Advantages of Secondary Research:

1. Easy to obtain Can be found on:

The Internet Corporate, Public, and College Libraries U.S. Bureau of the Census

2. Low cost3. May help researcher clarity their research question4. May answer the research question

Disadvantages of Secondary Research:

1. Existing data may not be suitable for a particular project2. Data may also be inaccurate.3. Information may not be timely4. Quality of the research may be questionable

If utilized correctly, secondary research can be an important tool for performing well rounded market re-

search.

GOVERNMENTATL INTERNET SITES

To begin with, we conducted secondary research over the Alma Area using the U. S. Census Bureau and

City-Data sites. We were able to learn about the economic trends in our community and our demographic sta-

tistics.

MARKETING TEXTBOOK

We used our Marketing text book to review marketing information management and the marketing re-

search process.

aire-looms OFFICIAL FACEBOOK

From the aire-looms Facebook page, we reviewed posts from our customers, noting that some customers

are not from the Alma Area, but from other states and other countries.

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aire-looms FINANCIAL DOCUMENTS

From the financial documents, we reviewed the sales from the previous years and compared the infor-

mation to the current year’s sales figures. We reviewed the current SBE inventory, noting what products were

selling better than others, and the markup percentage on wholesale costs.

RETAIL INDUSTRY ARTICLES

From multiple sites on the Internet, we obtained relevant date forecasting 2013 holiday shopping trends

that were emerging in the United States market and what effect the polar vortex was having on retail sales.

From Retailers Less Than Cheerful Over Christmas Sales, Kohl’s reported that its net income fell 18%

from the same period a year ago. This was a $38 million deficit.

From Big Consumer Trends from the 2013 Holiday Shopping Season, we learned that retail sales

dropped by 3.1% nationwide. The weekend before Christmas, retail stores experienced a 18.1% dropped in traf-

fic coming into the retail establishments.

Holiday Shopping, Christmas Sales, Job, Technology Predictions Roundup, surveyed 1,000 consumers

and determined that 62% predicted that they would spend less money this holiday season. 31% of women said

they were more likely to do their holiday shopping online.

Severe Winter Weather Cripples Retail Sales discussed this year’s severe weather and its impact on re-

tail sales nationwide. “Harsh winter weather is masking the performance of the broader economy.” The severe

weather has made it difficult to assess if the retail sales slowdown is temporary or a telling sign of a longer last-

ing weakness in the consumer-fueled economy.

Christmas Sales Decline at Target in Wake of 40 Million “Compromised Credit Cards; Stolen Cards for

Sale on Black Market” stated that due to hackers, nearly 40 million credit and debit cards were stolen. This was

one of the biggest data breaches in history. Sales were down 3% after this most recent security breach.

Profits Fall for Walmart and Nordstrom, and They Forecast Weakness Ahead states that both stores have

issued weak sales forecasts for the coming year and that both stores reported disappointed earning for the fourth

quarter of 2013. Both listed a struggling customer base, federal cuts to the food stamps program, a ferocious

winter, stagnant wages, and low economic growth as explanations for the low sales.10

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5 Ways Social Media Takes Customer Relationships to the Next Level states that to make a connection

with your audience, businesses should make social media about the customer not the product being sold, take

every opportunity to gain customer feedback by making it easy for customers to share their story.

7 Best Practices for Building Client Relationships states that it is important for businesses to differenti-

ate themselves from their competition. This can be done through going the extra mile for customers, respond-

ing quickly, and treating every customer as your most important one.

B. Description of primary research conducted

Primary research offers the benefit of direct contact through a survey or interview with certain markets

and customer groups. This type of research can be tailored to meet the needs of an organization and it provides

specific and detailed timely information because it has a specific research plan and it is mostly accurate, it has

relevance to research, it handles internal data and external data.

For our creative marketing project, we determined that the most relevant types of primary research we

needed to use was the survey method, a focus group, observation research, and personal interviews.

The survey method is a research technique in which information is gathered from people through the use

of surveys or questionnaires.

A focus group interview involves a group of people who are brought together to evaluate advertising, a

particular product, package design, or a specific marketing strategy under the direction of a skilled moderator.

The observation method is a research technique in which the actions of people are watched or recorded.

Primary interviews involve having questions answered in a face-to-face discussion. We had several of

these interviews with our DECA advisor throughout the project.

Advantages of Primary Research1. The researcher can focus on qualitative and quantitative issues2. The researcher can control research design to fit their needs3. The researcher can control how the research is collected

Disadvantages of Primary Research1. Could be expensive to carry out2. Requires the development of a research plan3. Costs will be incurred for surveys or experiments4. Possible low response rate5. Takes longer to obtain than secondary research

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COMMUNITY SURVEY

A community survey was conducted at a home high school football game to see what the demographic

make-up of aire-looms customers was this season, to determine the best selling product, preferred promotional

media.

IN-STORE SURVEY

An exit survey was conducted at the Holiday Open House event to test the value of the promotional me-

dia used to promote the event. We also gathered new demographic date to determine if there was still a shift of

the market we were serving.

STUDENT FOCUS GROUP

Two focus groups were held with the teen market to determine their views on the product mix, promo-

tional media and general feelings towards product offerings in aire-looms.

ADULT FOCUS GROUP (FACULTY)

From the community survey we determined we needed to regain the 32 plus market, so we held a focus

group with the high school faculty to get their opinions about the SBE product mix.

INTERVIEW WITH DECA ADVISOR

We conducted multiple interviews with our DECA Advisor throughout the fall semester. We had many

questions throughout our creative marketing project for our advisor which she answered. Our advisor also pro-

vided us with the SBE’s financial recorded and inventory information that we used in our research.

OBSERVATION RESEARCH

From pictures we took during the community survey, we noted that there were not as many adult fans at-

tending the home football games this fall. This was verified by chapter members who are football players who

confirmed that the stands were not full like they normally were. We confirmed this observation by obtaining

the gate ticket sales with the athletic department.

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C. Description of involvement of chapter members and business people in the project

Alma DECA chapter members were a vital part of completing the research for this creative marketing

project. Chapter members designed posters promoting the product line at aire-looms through-out the fall semes-

ter, created promotional materials, designed sales promotions for aire-looms, designed display ads, designed,

tagged, merchandised, and inventoried store products, worked shifts when aire-looms was open, helped with

customer service and with surveying customers at the football games and at the Holiday Open House.

Two chapter members, Jake Bull and Lane Inge, were the chairpersons of the Holiday Open House

event, and worked closely with us in promoting the event based on the market research we had conducted.

Their committee was instrumental in the operations of the Holiday Open House event, including tasks like mer-

chandising, personal selling, and organizing the sales promotions held in the SBE during the holiday season.

Chapter members, Madison Gambill and Junior Edwards, chaired a buying and merchandising research

project. These two chapter members mediated the two focus groups. We shared research responsibilities and

helped each other tally and analyze the data we collected. It was interesting examining the data and even more

interesting as we were able to see how the data showed why the SBE’s sales had decreased during the time pe-

riod we studied. This committee helped formulate some of the recommendations that we are implementing to

increase sales.

The Small Business Operations classes worked on designs for the product mix, three of which were of-

fered for a special order—a baseball shirt, a senior class shirt and a basketball hoodie. These special orders

were profitable and met a market that has a need. Currently, a fourth special order is being designed for the

band. These special orders were an additional revenue stream that proved to be profitable.

Local businesses, such as Geno’s Pizza, The Alma Area Boy’s and Girl’s Club, Coleman Pharmacy,

Harp’s Grocery, Bancorpsouth, Edward Jones, the Alma School District, and Citizens Bank allowed us to place

posters in their businesses which promoted the Holiday Open House event. Individual business people were

also instrumental in the completion of this project, providing insight into the business climate, additional needs

of the community and input on business strategies.

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DECA AdvisorsSherry Siler and Ross White

Chairmen:Braxton Anderson

Sean Siler Shane Siler

Alma DECA ChapterHoliday Open House Chairs

Jake Bull, Lane Inge

Business CommunityBuying and Merchandising

Research Team: Madison GambillJunior Edwards

CMP Committee

Our advisors supervised the operation of aire-looms and answered questions for us. They provided

prodding so we would get our tasks done in a timely manner, provided a channel of communication with the

other committees when needed, and supported us throughout this process. Our advisors were key in supplying

financial information and helping organize the materials needed to complete the project.

As chairmen of this project, we planned, organized and implemented all aspects of the creative market-

ing project from designing, testing and tallying the survey, to working in the SBE, to recruiting membership to

help. We lead our chapter members through the research process, and could not have completed the process

without their help and work.

Below is an organizational chart for the project chairmen and their advisors.

CREATIVE MARKETING PROJECT CHAPTER INVOLVEMENT

Dates Activity/Event #of Chapter Members Involved (129 student members-AHS)

September 2013 Met with advisor to review SBE sales

3

September 2013 Form CMP Committee 27October 2013 Design community survey and

in-store survey3

October 2013 Conduct community survey 18Sept-Nov 2013 Create promotional materials 12Sept-Nov 2013 Design special order pieces 30Oct-Nov 2013 Assist with focus groups 40

November 2013 Met with local paper to pur-chase display ad

3

November 2013 Meet with area businesses to post promotional flyers

35

December 2013 Coordinated Holiday Open House, in-store survey

12

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IV. FINDINGS AND CONCLUSIONS

A. Presentation of findings, data to support findings

Findings from interview with DECA Advisor:

After interviewing Mrs. Sherry Siler, the Small Business Operations instructor and DECA Advisor in

early fall, it was discovered that aire-looms sales had seen a slight decrease from previous years sales, when

comparing the months of August and September for the years of 2012 and 2013. This provided the creative

marketing team with incentive to conduct the project on the Marketing department’s school based enterprise

with the goal of having a positive impact on the SBE and turn the decreasing sales information around. Addi-

tional information from the interview included that the best-selling item in the SBE has traditionally been the

$10 t-shirt, followed by t-shirts that run $12 to $15. It was discovered that the main target market of the SBE

was the 32 plus aged female, who was usually buying for her children, followed by the school district staff ,

then the high school market. One additional market the SBE has had interaction with is Airedale dog breeders

and owners from around the globe, and that is a niche for additional revenue.

Findings from community survey:

Findings: We found that 43% of customers

surveyed were from the ages of 16-20,

18% were in the age of 13-15, while

12%were from the age of 41-45.

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These pictures, taken during the community survey, note the lack of people attending the high school

football game.

Findings: We found that 61% of the people sur-

veyed were females, 39% of people surveyed

were males.

Findings: 89% of people would like to see

aire-looms open an on-line e-commerce site, while

11% would not.

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Findings: 47% of the survey partici-

pants listened to KISR radio station

Findings: We found that 40% of aire-looms

customers use Facebook, 33% use Twitter

while 27% of customers use Instagram.

Findings: We found that 70% of aire-

looms customers favorite place to shop for

Airedale Apparel is aire-looms, 15% shop at

Academy, 10 % shop at Walmart while the last

5% shop at Petals and Stems and Captive Im-

ages.

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Findings: 79% of aire-looms customers sur-

veyed favorite item to purchase is a T-Shirt,

10% is hoodies, while the final 11% is candy,

gifts, shorts, caps, jewelry

Findings from adult focus group:

Findings from teen focus group:

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Blue=Very Satisfactory Red=Satisfactory Green=NA Purple=Non-Satisfactory Light Blue=Very non-Satisfactory

Based on the teen age focus group, we determined that the majority of the survey participants were satis-

fied with the SBE and the merchandise. This group does not use Facebook as their primary social media and

would prefer an online site to order from.

Findings from in-store survey:

The most significant finding from the in-store survey was the breakdown of the promotional media used

to promote the Holiday Open House. This chart indicated that the media selected for the promotional mix was

evenly distributed throughout all types.

Findings: 61% of the survey participants were female, 39% male.

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Findings: The majority of the survey participants, 72%, were over 30 years of age.

Findings from observation research:

From observation research, we discovered that there has been a decrease in attendance at the football

games throughout the season, from mid-October to December from the adult market. This could have contrib-

uted to a loss in sales for the fall months.

Findings from secondary research:

From our secondary research we learned that most major retailers had experienced a decline in sales in

the fall of 2013. Overall in the United States, there was a decrease in retail sales from stores like Walmart,

Kohls, Target, and even Nordstroms. We learned that this Christmas, families spent much less in retail stores

than expected. One article stated that the harshness of the winter played a part in the decrease in sales, since

families were spending more of their income on heating expenses and for cleaning up after storms. We discov-

ered that on-line shopping was increasingly important as well as having ways to communicate with customers

on social media. We read topics on building relationships with customers via social media and getting the cus-

tomers involved are beneficial to businesses.

B. Presentation of conclusions, rationale to support conclusions

We designed our creative marketing project to answer the following questions and believe we had done

so. Below the questions are the conclusions we drew based on our secondary and primary research.

1. What is the cause of the decline in sales?2. Is there a secondary target market that the SBE can reach and gain as customers?3. Will a promotional plan for the holiday season help increase sales?4. Is the product mix meeting the needs of the SBE’s customers?5. What can the SBE do to maintain sales into the new year and beyond?

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When looking at each type of research individually, it might not seem to be of any value, but when

looked at holistically, trends begin to stand out and answers to the decline in sales begins to emerge.

1. When comparing the age range of customers on the community survey and the personal interview, it is noticeable that the age range of the customers from the community survey was a young age bracket, which is not what the SBE has catered to in previous years. From the personal interview we learned that in all prior years, the SBE’s main target market had been females, aged 32 years and older. From the in-store survey, 30 plus customer was the major market.

2. As noted in the pictures from the first survey and from observation research, the attendance at the home football games was down this year, and so far in the basketball season, attendance has not picked up.

3. A majority of the survey participants were female, a strong majority preferred the $10 t-shirt, and so-cial media is a necessary media to use to communicate with customers.

4. Facebook is the means for customers outside of the Alma area to communicate with the SBE.

5. Since a large majority of the survey participants go to the SBE first for their Airedale apparel, it is evident that those attending the games are not those who have discretionary income.

6. The special order shirts and hoodies were profitable, so additional special order designs should be considered.

7. The teen focus group indicated they were satisfied with aire-looms, but preferred an on-line site and some asked for a larger selection in 2xlarge sizes.

8. The adult focus group indicated while most were satisfied with the SBE hours, some were not. Sev-eral types of products were noted from their comments that the SBE design staff should look in to like an inexpensive line of dress shirts, baby clothes and women’s sweat pants.

9. From secondary research we concluded that nationwide sales were down and on-line presence is a must for retail businesses.

From all of this data our conclusion is:

1. While the harsh winter may have caused part of the decrease in sales, aire-looms should return to the basics of the $10-$15 t-shirt to meet customer’s needs.

2. aire-looms should regain the 32 plus female market, while keeping the teen market3. A promotional mix with a large reach to meet different target markets should be enacted for the holi-

day season, culminating with the Holiday Open House event. 4. aire-looms should limit the quantity of branded products ordered.

5. aire-looms should continue hitting small markets with special orders, look for additional revenue streams and continue to use promotion to communicate with the target markets.

V. RECOMMENDATIONS

A. Recommendations resulting from the study

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Based on our community survey, the in-store survey, the focus groups, the secondary research, and ob-

servation research at the Holiday Open House we developed a recommended action plan for aire-looms to carry

out.

1. aire-looms should concentrate its promotional efforts by using a variety of promotional media such as social media, email blasts, PSA’s, and traditional media.

2. Consider creating an Instagram account for the SBE3. aire-looms should go to the basics and offer more $10-$15 t-shirts while limiting the quantity

of branded products ordered (like Nike).4. aire-looms should create an online market place in addition to additional revenue streams.5. Trademark aire-looms, the Alma Airedale, the Alma “A”, Scruffy, and all logos associated with

Airedale apparel.6. The female demographic was the majority in both surveys, so aire-looms should work to reach the

male market.7. The age demographic fluctuated from the community survey to the in-store survey, so additional re-

search should take place to monitor this statistic. 8. Continue to reach to specific markets with special orders.9. Even though sales have fluctuated, promotions should still take place.10. The weather may have contributed to some of the decrease in sales, as families were spending more

on heating their homes which left less to spend.

B. Projected outcomes from implementing the recommendations

Based on the information gained from the creative marketing research, the chapter chairmen have deter-

mined the following outcomes will take place:

PROMOTION:

A heavy promotional campaign was effective for the school based enterprise. We received boost

in sales for the month of December.

By continuing this type of promotional activity, we believe that sales should increase to previous

year’s numbers.

ACCESSIBILITY:

An on-line marketplace would increase accessibility of the product line.

PRODUCT MIX:

By going back to the basics of the best-selling $10 tshirt, aire-looms should increase monthly

sales.

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Special orders should continue to take place as there is a high return on this type of product of-

fering.

TARGET MARKETS:

Keeping the teen market and regaining the 32 plus female market, is possible with the proper

promotion and product line.

The females aged 35-50 demographic is especially important for us to regain.

Using additional forms of social media will build relationships with all target market segments.

C. Plan for implementing the recommendations

The following is a description of the plan that we implemented in our SBE :

PROMOTIONAL PLAN

GOAL: aire-looms will develop, coordinate and follow a promotional plan that will focus on the

needs and wants of the consumer and increase sales.

The promotional plan that was developed is targeted to the students, the parents, and the community of

Alma. From tailoring a product mix that satisfies the customers, offering products for sale at competitive

prices, opening at prime events and times, helping the customers make satisfying buying decisions, and using a

proper promotional mix, keeping the needs and wants of customers is a priority.

aire-looms serves individuals of all ages, most of them live in Alma or work for the Alma School

District. Airedale fans of all ages shop at aire-looms. Since there are a wide variety of prices and products

at aire-looms, most customers have been able to find what they want at a price that fits in their budget.

The marketing plan developed for remainder of the year is as follows:

October Promote special apparel and accessories in conjunction with Lee Denim DayReset window after Homecoming for October Breast Cancer Awareness month Tackle CancerSet store for the holiday season

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Decorate Christmas tree for the holiday seasonNovember Open for Parent/Teacher Conference night

DECA member discount days the week before ThanksgivingPurchase display ad in The Press Argus Courier/The Alma Journal (2 ads)Basketball hoodie special ordereFortSmith ad, Facebook posts, email blasts, flyers

December Hold the 5th Annual Holiday Open HouseMarquee signageAlma School District Employee Discount DaysIn Touch display ad

January Reset store Display ad in the In Touch, email blasts, Facebook postsSpecial order for the band

February Valentine’s Day promotion.Co-sponsor 5th Annual Pink Zone to benefit breast cancer awarenessOpen for Parent/Teacher Conference night

March Clean-sweep sale.Survey customers to follow up on promotional media, preferred apparel and demo-graphic information

April Plan a graduation promotion for the Class of 2014Begin design on fall lineSet up an Instagram account to showcase the fall line

Since the needs and wants of the consumer are what aire-looms strives to please, the development and

coordination of the promotional plan developed with the help of market research is a plan that changes as the

needs of the customer changes and as new target markets are identified. We are monitoring monthly sales to

see if the promotional plan is working.

Promotional Execution:

Broadcast Mediao KISR radioo KMAG radioo Channel 5 Newso Channel 40 Community Calendar

Chapter members submitted PSA’s to these local TV

and radio stations to promote the Holiday Open House to the

community.

Print Mediao eFort Smith Magazineo Press Argus Couriero Alma Journalo Alma School District In Touch

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o Brochures

Shown are some of the display ads and information submitted to local print media.

Personal Sellingo Customer service in the SBEo Special order products

The SBE staff are trained to provide personal service to all customers. Customers are greeted as they

enter the SBE and the staff pride themselves on helping the customers get the perfect Airedale look.

Visual Displayo Store fronto Point of Sale Displayo Window and Visual Displays

The entire storefront at aire-looms is made up of a

22 foot 4 inch long by 4 foot 2 inch wide display window.

This large window allows for very creative displays to be

designed by the marketing students, and, due to the high visibility of the window, the displays are seen by the

majority of the student body. This picture on the previous page shows the store front with the Christmas

display. Many of the items used in the display were sold to customers who picked them up after the Holiday

Open House event.

In addition to the storefront, visual displays inside the store must be created and maintained on a regular

basis. Since slat walls are used throughout the store, changes can be made quickly and easily. Merchandise is

rotated to keep visual interest high.

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The point-of-sale display includes small inexpensive items that are easy for customers to pick up and

purchase.

Electronic Mediao E-mail blastso aire-looms Facebook Up-

dateso Twitter Postso Alma School District Website

The aire-looms Facebook account and

the Alma DECA twitter account were utilized

to promote the promotions for this creative

marketing project. Email blasts to the cus-

tomer database and school district staff were

also beneficial.

Signageo Flyerso Marqueeo Signs in local businesseso aire-looms marker board

The flyers and posters were created and hung in local area businesses to promote the Holiday Open

House. The marquee, see picture on the next page, is located at the entrance to the high school and is viewed by

over 700 drivers daily. The marker board, middle picture, was used at ballgames and during the normal work

day, and a chapter member is hanging a flyer promoting the Holiday Open House event at a local business.

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Guerilla Marketingo Word of Moutho Unique events

By using unconventional methods of building relationships with our customers, we want our customers

experience at aire-looms to be memorable and to retain their business. Adding the Instagram account would aid

in this area. Since the chairmen took on this project, three special sales promotions took place: one for the

baseball team, one for the senior class and one for a basketball hoodie. All three special promotions were prof-

itable. This is just one example of how looking for special niche markets can be profitable for a small business.

Currently, we are working with the band to create another revenue stream which we hope will be just a prof-

itable as these have been.

D. Evidence that the project has been presented to the appropriate business and/or government officials who would benefit from the study

Even though we had been in constant contact

with our DECA Advisor, we presented our findings and

recommendations to her in our SBE. Based on the fig-

ures obtained from our point-of-sale terminal (see chart

below), our promotional plan proved to be helpful to

gross sales in the Fall of 2013. By implementing spe-

cial order products for the baseball team, basketball

fans and the senior class, the SBE was able to maintain sales in September and October while in December sales

were constant. November was the only month, other than August that experienced a decline in sales. Our advi-

sor was appreciative of our work and has suggested that we present our findings to the Director of Student Ser-

vices.

SALES COMPARISONS 2012-2013

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The charts and table shown above show the special product mix plan had a positive effect on our SBE’s

sales as gross sales increased in September and October. We believe that our product mix and promotional plan

was successful, but believe that we should continue to promote our SBE heavily in the first quarter of the new

year.

MONTH THIS YEAR LAST YEARAugust $11,466 $20,582

September $9,039 $7,174October $6,387 $5,742

November $2,211 $2,765December $8,111 $8,483

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VI. BIBLIOGRAPHY

Alma, Arkansas Detailed Profile, Demographic Information. Online. http://www.city-data.com/city/Alma-Arkansas.html, January 2013

Siler, Sherry, “Information on Alma High School DECA.” Personal Interview. 13, Novmber 2013.

Treece, Pam “Information on Alma High School.” Personal Interview, 15 Septmeber 2013.

"Arkansas Economist » Unemployment Rate." Arkansas Economist RSS. N.p., n.d. Web. 9 Feb. 2014.

"Primary Research Advantages And Disadvantages." Primary Research Advantages And Disadvantages. N.p., n.d. Web. 9 Feb. 2014.

"What Is Guerrilla Marketing?" Creative Guerrilla Marketing. N.p., n.d. Web. 9 Feb. 2014.

"Alma (city) QuickFacts from the US Census Bureau." Alma (city) QuickFacts from the US Census Bureau. N.p., n.d. Web. 9 Feb. 2014.

Farese, Lois, Grady Kimbrell, and Carl A. Woloszyk. Marketing Essentials. New York, NY: Glencoe/McGraw-Hill, 2002. Print

Harris, Elizabeth A. "Profits Fall for Walmart and Nordstrom, and They Forecast Weakness Ahead." The New York Times. The New York Times, 20 Feb. 2014. Web. 21 Feb. 2014.

Harris, Elizabeth A. "Retailers Less Than Cheerful Over Christmas Sales." The New York Times. The New York Times, 14 Nov. 2013. Web. 10 Feb. 2014.

"Holiday Shopping, Christmas Sales, Job, Technology Predictions Roundup." About.com Retail Industry. N.p., n.d. Web. 10 Feb. 2014.

"Severe Winter Weather Cripples Retail Sales." National Retail Federation -. N.p., n.d. Web. 10 Feb. 2014.

Kerpen, Dave. "5 Ways Social Media Takes Consumer Relationships To The Next Level." Forbes 24 Dec. 2012: n. pag. Web.

Sharma, Gauri. "7 Best Practices For Building Client Relationships." Forbes 04 Oct. 2013: n. pag. Web.

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