When Good Work Makes Good Sense, Business Plan Example

Competition and Resource Requirement

The main competitors of St Michael Thrift  Shoppe, identified previously are Texas Thrift Store, Good Will, and the Resurrection Thrift Store, all located in the same Austin area as SMCA-TS. The below overview will analyze the results of interviews conducted and findings about customer habits, preferences, in order to create a competitive market strategy for SMCA-TS and successfully determine the resource requirements.

Competition

In order to successfully determine the competitive advantages of SMCA, it is important to review the marketing strategies of competing firms.

Goodwill Store, one of the main competitors of SMCA, for example, uses a simple pricing and logistics process, this means that donated goods are quickly available for sale. Further, the management of Goodwill has established a relationship with companies that sponsor the store. Dell recycling program integration is already present in the store, creating extra revenue for the charity. The store uses eBay online auctions to sell some merchandise that does not get sold in the shop. This means that customers see the items change day by day. This increases customer satisfaction and retention, and creates a solid long term customer base.

Texas Thrift Store uses community involvement to increase the popularity of the store in the local area. This makes a constant flow of merchandise maintained. Donations are extremely important for thrift stores, and with so many shops competing for the same customers and donors, it is important to provide communities with a good reason to make a conscious choice. Customer service excellence has also been identified as one of the main competitive advantages of the Texas Thrift Store. Local event sponsoring and engagement in community projects are things that SMCA could implement into its market strategy.

The Resurrection Thrift Store targets a specific segment of the market. Keeping the prices low, they aim to appeal to low income families and individuals. The store does have a strong Christian atmosphere, provides a welcoming environment for all. It is essential that SMCA finds the right market segment to target, as well, based on the needs of different customers, and matches the service, layout, programs, and products to their expectations.

Customer Expectations and Competition

Based on the findings of the interviews conducted, it is important to note that many shoppers are expecting a thrift store to look more like a retail unit, and less like a warehouse. Some customers of The Blue Hanger expressed their dissatisfaction with the layout and organization of the store. Further, one specific interviewee, Frank Wolfe stated that the atmosphere of the store – as he recalled – was not welcoming. Further, several people expressed that they would like to see students as volunteers in the store, to be able to communicate with those who benefit from the revenue of the store. It is clear that SMCA has a task ahead to successfully communicate and articulate the importance of the cause served by the store. Further, matching customer expectations, the layout of the store should be reviewed and redesigned. It is likely that this project can be completed with little or no investment, using volunteer workforce and community engagement. Community projects should be sought and leaders of different local charities should be approached to design models of collaboration. The implementation of this market intervention would not create extra expense of the organization, as current volunteers would be able to complete the research and contact organizations.

Implementation and Resource Allocation

Based on the above findings and competition analysis, the implementation of a new market plan should involve various steps detailed below:

• Creating an awareness of the aims, goals, mission, and vision of the Academy, as well as the store among people within the local community
• Recruiting student and former student volunteers using social media, email, and letters in order to make the store appeal more to young people in the community, while utilizing the new volunteers’ innovative way of thinking
• Reviewing the layout of the store and comparing it with the three competing shops’ layout. Interviewing current customers in the form of a suggestion submission box entry, where they could vote on changes they would like to see implemented in the store, e.g: dressing rooms, fitting service, advice, notification of new items, social media page.
• Creating a strong social media presence for the store using student volunteers’ expertise.
• Reviewing the option of making intake of new goods faster, so customers can see the inventory change more regularly (Wodon & Wodon, 2013). Further, selling online or using auction sites to eliminate items that did not sell in the store for a long time should be considered.

Resource Allocation

Social media marketing and like page promotion should not create an extra expense for SMCA, as it would be based on volunteers’ time only. The redesigning of the shop and layout modifications would incur some material costs, while the job could be completed by volunteers. A funding of $500 should be allocated for this purpose. Community engagement projects would not impose extra financial burden on the charity. Improving goods intake and pricing would also not increase operation costs. Extra five volunteers’ intake from student groups, and an additional five to ten volunteers’ recruitment from local communities is also recommended. Looking at the case study of Women’s Home and Cottage Thrift Shop (Structured Employment Economic Development Corporation, 2002), volunteers are essential to create community engagement and a positive reputation.

References

Structured Employment Economic Development Corporation (2002) When good work makes good sense: social purpose business case studies. Retrieved from http://www.proveandimprove.org/documents/good_work.pdf

Wodon, D. & Wodon, N. (2013) Analyzing the determinants of individual sales at nonprofit thrift stores: a case study for Martha’s Outfitters in Washington, DC Washington International School, Washington, DC, June 1, 2013 Retrieved from http://www.amstat.org/education/posterprojects/projects/2013/SecondPlace7-9.pdf