Customer Profile

78705 Demographic

The information that has been researched and compiled gives a better idea of the

demographic that Edna’s will be accommodating. The characteristics of area code

78705 are highlighted to easily identify the group that will shop at Edna’s. The

target consumer’s demographics have been compiled to put into perspective who

the consumer will be for this retail store. 1 2

Gender Female: 47.3%

Male: 52.7%

Education Levels(among people 25 years or older)

Less than 9th Grade: 0.8%

9th-12th Grade: 2.3%

High School graduate: 6.1%

Some college: 14.7%

Associate degree: 3%

Bachelors degree: 42.3%

Graduate/Professional: 30.7%

High school or higher: 96.9%

Bachelors or higher: 73.1%

1 City-Data2 Zipskinny.com

Marital Status (Among 15 years or older)

Never married: 83.1%

Married: 13.1%

Separated: 0.3%

Widowed: 0.7%

Divorced: 2.8%

Stability Appeal:

Same home 5+years: 9.3%

Race: Hispanic/Latino: 10.1%

White: 69.4%

Black: 2.9%

Native American: 0 %

Asian: 14.8%

Hawaiian/Pacific Islander 0.1%

Other: 0.3%

Multiracial: 2.2%

Age: Male% of males/% of All

0-9 years: 1.4% / 0.8%

10-19 years: 27.6% /14.5%

20-29 years: 55.1% / 29%

30-39 years: 8.1% / 4.3%

40-49 years: 3.9% / 2.1%

50-59 years: 2.3% / 1.2%

60-69 years: 0.8% / 0.4%

70-79 years: 0.5%/0.2%

80+ years: 0.3%/ 0.1%

Age: Female

0-9 years: 1.2%/0.6%

10-19 years: 33.9%/16%

20-29 years: 51.4%/24.3%

30-39 years: 6.1%/2.9%

40-49 years: 3%/1.4%

50-59 years: 2.2%/1%

60-69 years: 0.9%/0.4%

70-79 years: 0.7%/0.3%

80+ years: 0.6%/0.3%

House-hold income

<$10,000: 39.2%

$10,000-$14,999: 11.2%

$15,000-$24,999: 18%

$25,000-$34,999: 9.8%

$35,000-$49,999: 7.3%

$50,000-$74,999: 5.5%

$75,000-$99,999: 3.9%

$100,000-$149,999: 2.7%

$150,000-$199,999: 1%

$200,000*: 1.3%

Occupation Mgt./Professional: 45.8%

Service 17.6%

Sales/Office: 30.8%

Farm/fishing/forestry: 0%

Construction/Extract/Maint 1.4%

Production/Transportation: 4.4%

Unemployment/Poverty

Unemployed: 6.2%

Below Poverty line: 50.2%

Housing Expense

Own/Rent Home

Rent: Large population of civilians is students who attend the University of Texas.3

Own: Known as “One of the best places to live” 4

Edna’s Demographic:

Gender: The merchandise sold at Edna’s will generally interest women. She will

like to look classy and sweet. Her look will be feminine and chic; this will grab the

attention from her friends and the people around her.

3 “Guide, Mobil. Mobil Travel Guide 2008 Texas . Mobil Travel Guide, 2008. Print.4 Ibid

Age: The ladies that will shop at Edna’s will be around the age of 18-28 years old.

This age makes up around 40% of area code 78705. This is greatly contributed by

the students that attend the University of Texas.

Education level: High School graduate-Bachelor Degree

Marital Status: Primary Consumer- Single

Secondary Consumer: Married

Race: White, Black, Hispanic, Asian.

Occupation: (main) Students

Income: $10k-$100k

Home owners/Renters: Owners and Renters.

Psychographics:

Edna’s shoppers will be ladies that enjoy similar classy activities and past

times. To better understand the consumers who may shop at Edna’s, we have

compiled information and created a list to easily identify an Edna’s consumer.

Free time Activities : Social life/Forms of Entertainment: 5 6

5 Fodor. Fodors Travel Pubns, 2008. Print

6 Baird, David, Eric Peterson, and Neil Schlecht.Frommer . Frommers, 2007. Print.

Reading/Literature People Magazine InStyle Magazine Vibe Magazine Harry Potter Series Twilight Saga The Davinci Code Chicken Noodle

Soup Peaches

TV Desperate

Housewives The Hills Family Guy Cougar Town

Radio 101.7 FM

(Country) 88.7 FM (Voice) 107.1 FM (Country) 96.7 FM (Hit

music) 95.5 FM (Soft

Rock) 98.1 FM (Country)

Places to Shop Forever 21 Nordstrom Goodwill Urban Outfitters A’GACI Pottery Barn Barnes and Noble Bath & Body Works Whole Foods

Entertainment Venues Austin Zoos Highland Lakes Forest Creek Golf

Club Lady bird Johnson

Wildflower Research Center

Sixth Street South Congress

Avenue Texas State Library Zilker Metropolitan

Park Hyde park

Favored Brands A’GACI Clinique Mac UGGs Apple Marc Jacobs Theory

Hobbies Skating Walking Reading Dining Out Biking Lounging around Golfing

Movies Avatar The Princess and

the Frog Sex in the City Breakfast At

Tiffany’s When Harry Met

Sally Titanic Kill Bill Vol. 1 & 2 Geisha How to lose a guy

in 10 days

Night life Warehouse District 6th street Ginger man 219 West Esther’s Follies Cactus Café Momo’s

Restaurants Chez Nous County Line on the

Hill Driskill Grill Pappadeaux Ruth’s Chris Steak

House Zoot

Vacation Kauai Island,

Hawaii Mexico Venezuela Seoul, Korea Tokyo, Japan London Paris

Forms of Exercise Walking Team Sports Walking pets

Day in the Life:

Edna starts out her morning with a good stretch. She reaches over to turn off her

Taylor Swift “Love Song” alarm and grabs a pair of Victoria Secrets sheer boy-

short underwear and heads over to her bathroom. She looks over her counter and

finds that her Colgate toothbrush is lying on the tile rather than on her vintage

toothpaste stand that she bought at the Austin Farmers Market last Saturday.

She sets the toothbrush in its place and sets her underwear on the toilet cap. Edna

hears a whine and realizes that JJ her golden retriever is ready for their morning

run. Out of habit, Edna taps him on the nose, grabs his head, and takes a good

sniff. She realizes that he smells a bit pungent and plans to take him to the Dirty

Dog later that day.

Edna loves to exercise and spend her time outdoors. So taking JJ out for a walk is

as easy as pie. She first pulls on her Nike Glides and her Nike running shorts,

then hurries to put JJ’s leash on, that she bought at Petsmart on sale. Edna loves a

bargain; it’s hard for her to pass up great deals. Edna looks down at the leash and

praises herself for doing a good job, and heads out onto the open road.

After JJ’s run, Edna jumps in the shower and lathers her hair with Dove’s shampoo

and conditioner. Her hair is a bit more damaged because of all the sun, so she

grabs the Neutrogena hair mask and lets it sit for about 10 minutes; after she

rinses her hair out and starts to prepare for school. She first grabs her…. Edna is a

junior at the University of Texas. She is a die-hard Long Horn fan, but who isn’t

if they live in Texas?

Edna grabs her North Face back pack and runs out the door. She heads into class

and says hi to her friends Billy and Jane. Edna is wearing a floral dress with

cowboy boots. Jane has always liked Edna’s style, and asks her where she got her

outfit from. Edna always tells her she finds great deals all over town. She

especially likes to shop at Urban Outfitters, Forever 21, and Maya Star.

After classes she heads back home to set down her backpack. It’s a Friday

afternoon and the weather is warm with a little less humidity. Edna loves a

beautiful day; she grabs her bike and heads out with JJ to Hyde Park. She rides

around the tree-lined area and stops at a nearby bench to read “Peaches”, a book

she started a few days ago.

Half-past 5, Edna is ready to go home and get ready for a fun filled night. Her

friend Jane wanted to catch dinner at Uchi’s, then head over to Lady Bird

Johnson Wildflower Center to see the new blooms and take some pictures

together. Edna’s thinks that it would be fun to end their night with drinks on 6th

street with Billy. Edna loves a night with music and friends.

It is half past 12 and Edna is finally heading home. She completely forgets about

taking JJ for a bath, and plans to take him tomorrow no matter what. Finally, they

arrive at her home near The University Of Texas On Guadalupe Street. She

jumps out of the car and waves to her friends. Billy and Jane look at each other,

and just shake their heads as they watch Edna grovel over how cute JJ is as soon as

he runs out to greet her.

It’s 12:30AM and Edna is exhausted. She takes some time to upload her pictures

from her Cannon camera onto her Dell Laptop and laughs at how funny Jane

came out on one of the pictures. Edna pulls out her journal and checks off her

checklist that she made the day before. She looks down at where JJ is lying and

thinks about how successful her day was and how tomorrow will be even better.

Edna writes her schedule for Saturday and makes sure that she places a star next

to Barton Creek Greenbelt located on Lamar Blvd and perhaps Market

District, where they can grocery shop at Whole foods.

It’s now 1:30AM and Edna is falling asleep as she is finishing schedule for

tomorrow. She turns off her bed side lamp and taps JJ on the head before drifting

off to sleep.

Prizm Categories:

Prizm was used for customer segmentation profile. Edna’s wants to know exactly

which type of consumers we will be trying to sell to. We have not only found the

location where our demographics are, but we have identified exactly which

segment of people will be most interested in Edna’s merchandise.

22   Young Influentials

Midscale, Younger w/o Kids

“Once known as the home of the nation's yuppies, Young Influentials reflects the fading glow of acquisitive yuppiedom. Today, the segment is a common address for younger, middle-class singles and couples who are more preoccupied with balancing work and leisure pursuits. Having recently left college dorms, they now live in apartment complexes surrounded by ball fields, health clubs, and casual-dining restaurants”

02   Young Achievers

“Young, hip singles are the prime residents of Young Achievers, a lifestage group of twentysomethings who've recently settled in metro neighborhoods. Their incomes range from working-class to well-to-do, but most residents are still renting apartments in cities or close-in suburbs. These seven segments contain a high percentage of Asian singles, and there's a decidedly progressive sensibility in their tastes as reflected in the group's liberal politics, alternative music, and lively nightlife. Young Achiever segments are twice as likely as the general population to include college students living in group quarters”

Demographics Traits:

Urbanicity: Suburban

Income: Midscale

Income Producing Assets: Low

Age Ranges: <35

Presence of Kids: HH w/o Kids

Homeownership: Renters

Employment Levels: WC, Service, Mix

Education Levels: College Grad

Ethnic Diversity: White, Black, Asian, Hispanic

US Households: 1,683,242 (1.46%)Median HH Income: $50,454 7

Edna’s will not only be directed to college students, but it will be for the college

graduates who are still living in the area. We want to be able to keep our clientele

until they have comfortably transitioned out of their college life, into their career

life.

Being located in an area where people from all over unite for education creates a

large melting pot in Edna’s location. Our Bohemian Mix consists of liberal,

diverse, and newly formed, families. These consumers will largely consist of

experiencers. This Vals category is a group of people who love to do things for fun

and for good times.

16   Bohemian Mix

Upper-Mid, Middle Age Family Mix

7 2009 PRIZM Segmentation System. Accessed 23,April 2010

“A collection of mobile urbanites, Bohemian Mix represents the nation's most liberal lifestyles. Its residents are an ethnically diverse, progressive mix of young singles, couples, and families ranging from students to professionals. In their funky row houses and apartments, Bohemian Mixers are the early adopters who are quick to check out the latest movie, nightclub, laptop, and microbrew”

 Lifestage Group:  Young Achievers

Demographics Traits:

Urbanicity: Urban

Income: Upper-Mid

Income Producing Assets: Moderate

Age Ranges: <55

Presence of Kids: Family Mix

Homeownership: Renters

Employment Levels: White Collar, Mix

Education Levels: College Grad

Ethnic Diversity: White, Black, Asian, Hispanic

US Households: 2,042,124 (1.77%)

Median HH Income: $55,665 8

We will definitely be able to count on our Bohemian Mix to be at Edna’s

grand opening. They will come and reminisce of their college lives by

visiting the area that was so close to campus. This is why we have located

in an area that will be filled with our demographic, and for past clients to

come visit until they have moved onto a different stage in their lives.

Edna’s merchandise will be appealing to women up until their late 20’s.

Our City Startups will be the college students that attend the University

of Texas. It will have 10 times as many college students as the national

average, and they will not have that much money. We can count on

seeing this group of people every day and everywhere.

8 2009 PRIZM Segmentation System. Accessed 23,April 2010

47   City Startups

Low Income, Younger w/o Kids

In City Startups, young, multi-ethnic singles have settled in neighborhoods filled with cheap apartments and a commercial base of cafés, bars, laundromats, and clubs that cater to twentysomethings. One of the youngest segments in America--with ten times as many college students as the national average--these neighborhoods feature low incomes and high concentrations of African-Americans.

Demographics Traits:

Urbanicity: Second City

Income: Low Income

Income Producing Assets: Low

Age Ranges: <35

Presence of Kids: HH w/o Kids

Homeownership: Mix, Renters

Employment Levels: WC, Service, Mix

Education Levels: Some College

Ethnic Diversity: White, Black, Mix

2009 Statistics:US Households: 1,397,857 (1.21%)Median HH Income: $24,355 

Edna’s demographic will most likely attend the University of Texas. College

students are notorious for their crazy nights out and being broke most of their

college days. However, it seems like these students always look their best even at

their financial worst. Edna’s will appeal to these college students. Being a college

student enlightens you of the good things that are in the world, and Edna’s will be

the place to shop for quality merchandise. Most of Edna’s associates will be

college students or just students that have just graduated. We believe that this will

make our consumers feel like they are in the right place for their apparel needs.

Vals Category

“Vals is a gathering of data to figure out the consumer’s insight that drive

marketing innovation…Understanding customers is critical to marketing. VALS

strengthens demographic characterizations by explaining the deeper psychological

drivers of consumer behavior.”9The Vals survey categorizes all consumers as a

thinker, achiever, experience, believers, striver, or a maker. Edna’s shoppers fit

into the category of believers, strivers, and experiencers, in the Vals category test.

Believers:

“Like Thinkers, Believers are motivated by ideals. They are conservative, conventional people with concrete beliefs based on traditional, established codes: family, religion, community, and the nation. Many Believers express moral codes that have deep roots and literal interpretation. They follow established routines, organized in large part around home, family, community, and social or religious organizations to which they belong. As consumers, Believers are predictable; they choose familiar products and established brands. They favor U.S. products and are generally loyal customers.”10

Texas is known for their loyalty to football and religion. They are not completely by

the book, but they are certainly not far from it. Our consumers will be those that

see a partial cup of water as half full, and not half empty. They will see the brighter

side of life, and will want to believe that it is as good as they make it. Edna’s will

provide them with clothes that reminds them of beautiful times, and perhaps also

to wear to beautiful places. Edna’s wants for their customers to believe what they

want, and look beautiful in the process.

Strivers:

“Strivers are trendy and fun loving. Because they are motivated by achievement, Strivers are concerned about the opinions and approval of others. Money defines success for Strivers, who don't have enough of it to meet their desires. They favor stylish products that emulate the purchases of people with greater material wealth. Many Strivers see themselves as having a job rather than a career, and a lack of skills and focus often prevents them from moving ahead. Strivers are active consumers because shopping is both a social activity and an opportunity to

9 http://www.strategicbusinessinsights.com/vals/10 “The VALS Segments.” Vals Pscyhology of Markets. SRI Consulting Business Intelligence, 21 April 2010

demonstrate to peers their ability to buy. As consumers, they are as impulsive as their financial circumstance will allow.”11

Our main demographic is set in an area where there are people from all over the

country and outside of the country. We will have a wide array of consumers

because of the University of Texas. However, one thing that we will know about

our consumer, is that they are striving to achieve something. Whether it be

marrying the right person, getting their college degree and moving onto graduate

school, or just trying to live day to day the best they can. Edna’s will be the type of

store where you will come to feel better about yourself through what you wear; no

matter what stage you are in your life.

Experiencers

“Experiencers are motivated by self-expression. Young, enthusiastic, and impulsive consumers, Experiencers quickly become enthusiastic about new possibilities but are equally quick to cool. They seek variety and excitement, savoring the new, the offbeat, and the risky. Their energy finds an outlet in exercise, sports, outdoor recreation, and social activities. Experiencers are avid consumers and spend a comparatively high proportion of their income on fashion, entertainment, and socializing. Their purchases reflect the emphasis that they place on looking good and having "cool" stuff.”12

Again, we see what happens when you have a large mix of people trying to find

themselves. Edna’s will be filled with experiencers at all times of the day. They

will be the ones who buy our new items in stock and perhaps even be trendsetters.

Experiencers try new and crazy things. They are what we can call the natural

person. They do what they feel like doing just to know what it feels like, or just to

have said that they experienced it.

11 IBid12 IBid

Buying Motivators 13

Maslow’s Hierarchy of needs identifies why Edna’s consumers purchases

products, and the reason they buy at all. Women who purchase Edna’s

merchandise will primarily be motivated to buy because they like what they see

and want to look good. The dress is an article of clothes that identifies a feminine

person and makes women feel truly like a lady. In a dress you can feel vulnerable,

but a certain power comes with a woman’s sensuality. Edna’s shoppers will want

to be noticed by friends, family, as well as the male species. Their self-esteem on

choice of clothes will be high due to the knowledge of fashion trends and from the

praises they get from others. An Edna shopper will not care what people think of

their style, but will usually be spot on when it comes to what is trendy.

13 Google-images.com

Figure 1 : Image Source-Google images

Edna’s shoppers will be motivated to buy because they want to look good and feel

good about themselves. Many people that shop at Edna’s will be the age of 18-30,

which is the prime age according to human development research. Around 18-25,

normal young adults want to find where they belong and find their purpose in life.

The clothes at Edna’s give off a care-free and retro image. People who enjoy

Edna’s will be people who are more developed than a normal young adult. They do

not need to be completely accepted by a certain genre of people, but become a

genre in themselves. They will be known as the modern bohemians; not living

according to the conventions of society but still striving to be someone in the

world.

Target Market

Market Location

Our target market will be primarily found in area code 78705 Austin, Texas.

This area code is where the University of Texas and downtown are located

in. We had picked this location because of the number of young adults ages

18-29. The University of Texas will provide us with our consumers which

make up around 84% of our target market. 14

Edna’s will specifically be located on Guadalupe Street. This street is

known for being the college avenue, which will give us a high volume of

people just passing by Edna’s. We know that this will definitely increase

our sales. Edna’s will take pride in being a retail store that is unique and

beautiful. If we have consumers to look at our product, they will most likely

be interested enough to come in and shop.

14 Zipskinny.com

Edna’s location is ideal for the merchandise we sell as well, because of the

surrounding entertainment. Eastwood Park, Adams Park, Downtown, House

Park, and Duncan Park are all places that

our target market will definitely like to go

to regularly.

Image Source: http://www.google.com/imgr 1

Market HistoryImage Source: http://o.aolcdn.com/dynamo 1

“Austin is an extraordinarily open and welcoming place-a city where you’re not

only allowed but expected to be yourself, in all your quirky glory. The people you

encounter are likely to be laissez-faire and may even be newcomers themselves.

People are a bit different and self-directed come to realize their fullest selves.” 15

Image Sources: http://www.xomba.com/file 1

Austin is the Capitol of Texas and the location named after the “Father of Texas,”

Stephen F. Austin. It is a lively place with a growing music scene, which some are

saying that it is the live Music Capital of the World.

People that live in this area are free flowing and relaxed. They love being

innovative and out of the box; not like San Francisco, but similar. The culture is

rich and the people are even more so. The saying that Texas is a friendly state is

not a joke. Stephen F.Austin himself wanted the state to be brought up with

respect and kindness towards one another.

Edna’s will fit right in to such a rich culture full of people that are different yet

pleasant. Our target market has been identified as someone who is full of life and

15 Fodor. Fodors Travel Pubns, 2008. Print.

someone who doesn’t mind too much what people think. Who would better fit this

description but the “self-directed and quirky” Austinians.

Geographic analysis

Edna’s has designated a spot where there is much going on almost throughout the

entire week. Geographically we have found a spot that will be filled with students,

teachers, and small business owners. The maps show that we are in a spot that will

be busy during traffic and very slow when students are off for break.

Edna’s will be located on Guadalupe Street and W 24th Street. This is where our

top competitor Urban Outfitters will be located bringing us competition. We

encourage this because we are confident in our product and our prices. During our

research, we have also taken into consideration the traffic of area which we have

designated. We know that there will be other competition that will help create foot

traffic for Edna’s or take away business. Here are business we feel will create

traffic in our geographical area.

Wells Fargo Bank: W 21st & Guadalupe Street Starbucks: W24th St. & San Antonio Quiznos: W 24th St & Nueces Street University of Texas: W 25th St & Guadalupe Street Urban Outfitters: W 24th St & Guadalupe Street Sprint Store: W 24th St & Guadalupe Street Goodall Wooten Dormitory: W 21st St. Guadalupe Bus Stops located every 2-3 blocks on W 21st Street

Image Source: Google maps 1

Image Source: http://maps.google.com/ 1

Another factor to take into consideration when discussing traffic would be the

freeways and Highways that run through this area. We have I-35, Hwy-183, and

Hwy 290.16 “The major entry way into Austin is I-35. This freeway is commonly

known as the MoPac and joins the northern and southern outskirts. 17Highway 183

runs at a slight north-south diagonal through Austin. Although it doesn’t serve any

16 Fodor . Fodors Travel Pubns, 2008. Print.17 http://www.traffic.com/Austin-Traffic/Austin-Traffic-Map.html

major cities, U.S. 153 does serve as a major thoroughfare through town. Lastly,

U.S. 290 connects Austin and Houston.”18

Month Low HighJan 40.0°F 60.3°F

Feb 44.0°F 65.1°F

Mar 50.9°F 72.5°F

Apr 57.6°F 78.9°F

May 65.4°F 84.8°F

Jun 71.1°F 90.9°F

Jul 73.4°F 95.0°F

Aug 73.3°F 95.6°F

Sept 68.8°F 90.1°F

Oct 59.8°F 81.4°F

Nov 49.3°F 70.1°F

Dec 41.9°F 62.3°F

Climate 19

18 Fodor . Fodors Travel Pubns, 2008. Print.19 http://www.rssweather.com/climate/Texas/Austin%20City/ (Image source)

The graphs and charts we see above show the average rainfall, sunshine,

and temperature for the city of Austin Texas. Edna’s will benefit from the

warm climate all year long. This is one of the primary reasons we have

decided to locate our dress boutique in Texas. Edna’s must also take into

consideration the extremeness of the weather during the summer and

winter. The temperatures can reach up to 110 degrees Fahrenheit in the

summer and mid-30 degrees Fahrenheit during the winter. Most people will

not want to even step out of their homes during the extreme heat of the

summer, and in the winter, they may not want to wear dresses at all.

Month PrecipitationJan 1.89in.

Feb 1.99in.

Mar 2.14in.

Apr 2.51in.

May 5.03in.

Jun 3.81in.

Jul 1.97in.

Aug 2.31in.

Sept 2.91in.

Oct 3.97in.

Nov 2.68in.

Dec 2.44in.

Month Sunshine HoursJan 49%

Feb 51%

Mar 55%

Apr 54%

May 56%

Jun 69%

Jul 75%

Aug 74%

Sept 66%

Oct 64%

Nov 54%

Dec 49%

Edna’s should look at these quarters of operations as opportunities to

expand their inventory with items that will be sought out. Perhaps provide

that season with warmer merchandise and a smaller collection. Edna’s will

continue to look at yearly trends of climates and continue to watch out for

weather extremeness throughout the season.

Market Scope

Not only will Edna’s be shopped in the 78705 location, but we will also be a

destination for many other zip codes around the area. We have made sure to

analyze outside of our area so that our entire business does not only rely on

area code 78705.

North Austin, Cedar Park, Leander“Just a short drive Northwest of the Capitol City, you find the relaxing oasis of suburban life.  Build on your own land or find a master planned community to suite your taste, either way both wildlife and luxury combine in this uniquely charming area of Central Texas.  Northwest Suburban Austin, including Cedar Park, Leander and, Lago Vista is expanding at a rapid pace.  Homes in this area begin in the lower 100’s, up to one million.”20

Georgetown“Georgetown is the historic county seat of Williamson County.  Both the county, and the city, have experienced a tremendous growth pattern over the past 10 years.  The population of Georgetown has almost doubled since 1997, reaching approximately 30,000 residents.  Originally founded at the fork of the San Gabriel River, Georgetown is only a short commute North of the Austin City Limits, yet offers its residents a small hometown feel.”21

Northwest Austin“Northwest Austin is surrounded with both an abundance of activities and beautiful scenery.  The Arboretum is well known for endless shopping, dining, and entertainment. The Domain offers unrivaled shopping, recreation, and contemporary apartment homes.  The location is optimal, with highway 183 running through Northwest Austin, and connecting you to both Loop 1 and IH 35 which take you downtown.  Homes in this area begin in the 200’s, to over one million.”22

Round Rock“Directly North of downtown Austin, Round Rock has become a very popular landing spot.  Home to the Round Rock Express baseball team, as well as many

20 http://austin.cbunited.com/relocate/community.asp21 ibid22 ibid

large businesses, including Dell, Ikea, and Premium Outlet Malls, Round Rock has something for everyone.  Offering close proximity to downtown Austin, coupled with suburban living, rich with outdoor family activities, parks, shopping and beautiful homes.  Homes in this area begin in the mid to upper 100’s, up to one million.”23

Lakeway“Lakeway is a beautiful community located on the south side of Austin’s prominent Lake Travis.  The Lakeway area includes some of Central Texas’ most exciting cities, including Lakeway, Majestic Hills, Flintrock Falls, Rough Hollow, Arbolago, Costa Bella, Vineyard Bay, Lakewind, Falconhead, and Alta Vista. Homes in Lakeway begin in the upper 200’s, to multi-million dollar homes.”24

Westlake“With meticulously master planned communities, exclusive country club golf courses, breathtaking views, and highly acclaimed schools, you can expect only the very best in Westlake.  Surrounded by the natural beauty of the hills and lakes, the charm of Westlake is in the scenery.  Homes in Westlake range from the upper 300’s to multi-million dollar homes.  The community of Westlake includes the cities of West Lake Hills, Rollingwood, and encompasses the west bank of Lake Austin.”25

Southwest Austin“Southwest Austin is a diverse and exciting locale.  Some of the most beautiful scenery of Central Texas unfolds before your eyes in the breathtaking southern hill country.  Although Southwest Austin is within the city limits, the feel of the area is that of the suburbs.  Southwest Austin is family friendly, with several outdoor activities and parks, including Austin’s Metro Park.”26

South Austin, Bastrop and Dripping Springs“South Austin is the heart of Austin and the epicenter of all that is uniquely Austin.  South Austin features many of Austin’s most distinctive neighborhoods, shops, restaurants, and bars.  The Southern Suburban areas of Bastrop, Kyle, Dripping Springs, and Wimberly offer spread out suburban neighborhoods, just a few short miles south of the city.”27

Buda and Kyle “Located between Austin and San Antonio, Kyle and Buda are two of the largest towns in Hays County, and growing at a rapid pace.  The towns have been strategically planned for growth.  Real estate in Kyle and Buda ranges from vast acreage estates to master planned communities, such as Plum Creek, Shadow Creek, Waterleaf, and The Meadows of Buda.”

23 http://austin.cbunited.com/relocate/community.asp24 ibid25 ibid26 ibid27 ibid

Austin is surrounded by many cities and towns that have Edna’s target market. We

feel that many students of colleges in the surrounding areas will come the

University of Texas to hang out and enjoy the parks and other entertainments

offered in Downtown Austin. Edna’s must also keep in the mind the competition

that might start stores similar to us that will open up in our market scope. This

could mean less business and more work in trying to make Edna’s a one of a kind

store.

Market size and growth rate 28

Texas has 24 million in population. It is the second largest state in the

United States and is still growing in population. Austin was announced as

one of the best places to live. During the last couple of years, Austin has

risen up to become a music haven for artists and entrepreneurs. “According

to the city’s music commission, Austin has more live venues per capita than

Nashville, Memphis, or New York City. Most of the city’s music clubs are

concentrated in a mile-and-a-half stretch along 6th street.”29 The projected

population for the year 2040 is almost 4 million. Edna’s can definitely say

that we have found an area that has great potential for growth.

Population & Population Growth

  1980 1990 2000 2009Percent change

1990-2000 2000-2009

Austin MSA 585,051 846,227 1,249,763 1,705,075 47.7% 36.4%

Bastrop Co. 24,726 38,263 57,733 74,876 50.9% 29.7%

Caldwell Co. 23,637 26,392 32,194 37,810 22.0% 17.4%

Hays Co. 40,594 65,614 97,589 155,545 48.7% 59.4%

Travis Co. 419,573 576,407 812,280 1,026,158 40.9% 26.3%

Williamson Co. 76,521 139,551 249,967 410,686 79.1% 64.3%

Texas 14,225,512 16,986,335 20,851,820 24,782,302 22.8% 18.8%

United States -- -- -- -- 13.2% 9.1%

Data Source: http://www.austinchamber.co 1

28 Source: U.S. Bureau of the Census.29 Cohen, David, Rick Smolan, and DK Publishing.  Texas 24/7. Dk Pub, 2004. Print

Population Growth 1999-2009

Data Source: http://www.austinchamber.co 2

Population Projections

  2000 2010 2020 2030 2040

Austin MSA 1249,763 1,712,647 2,292,737 3,030,478 3,958,933

Bastrop Co. 57,733 81,717 112,096 149,340 192,599

Caldwell Co. 32,194 38,724 45,622 51,469 55,752

Hays Co. 97,589 164,078 250,886 355,508 469,394

Travis Co. 812,280 992,773 1,168,738 1,336,648 1,498,569

Williamson Co. 249,967 435,355 715,395 1,137,513 1,742,619

Growth rates   2000-2010 2010-2020 2020-2030 2030-2040

Austin MSA 37.0% 33.9% 32.2% 30.6%

Texas 21.7% 21.6% 20.8% 20.3%

Data Source: http://www.austinchamber.co 3

Attractive features of this Market

The climate of Austin Texas is a very attractive feature to this market. Edna’s clients will want to wear dresses to cool off during the hot summer days as well as look great.

There is a wide array of religion in Texas. It would not be too difficult to find your comfortable place in Texas.

Brand loyalty or any kind of loyalty is strong in Texas; whether it is for football or religion. Edna’s will benefit from those that have strong brand loyalty.

Traditional and festive No major state has weathered the recession more successfully than

Texas. 30

Difficulties and problems in this Market

Existence of similar attire in the area Competition being in the location for a longer period of time. This will

give them the upper hand in the beginning. Holidays will be difficult for Edna’s. Since we are located in the heart

of The University of Texas, the quarters where there will be a long break will be a time of low sales.

Acceptance of a new retail store during the first year. Staff loyalty and dedication. Because Edna’s will be selling clothes to

students that attend the University, we would like our staff members to be someone they can relate to. However, we may have to change our staff regularly and this could be difficult, but not impossible.

Existing Demand for this Product/Service

Trends indicate the coming of dresses

Dresses create more air circulation and keeps ladies cool. Texas can

reach up to 110 degrees, it will help with the heat.

30 http://www.portfolio.com/business-news/2010/01/18/austin-tops-small-business-vitality-survey

Growing popularity of Asian style clothes

Only one store similar very close by.

A large number of target market age that will want more than one

store to store to shop at.

Competitive Analysis

Direct Competition

Forever 21: Address-2901 S Capital of Texas Hwy, Austin, TX 78746 Section MForever 21 also known as XXI, has boomed in the past 5 years as a trendy and fashionable store where you can find anything and everything. They are notorious for being “with the trend” and cater to a Niche Market of 15-25 year olds. Within the last year they have expanded their market to males around the same age.

A’GACI too: Address-2901 S Capital of Texas Hwy, Austin, TX 78746 Section RA’GACI was found in Texas in 1972 by two brothers. It has been around for a while, but it is just starting to branch out and invade North America like XXI did. Currently they have stores in California, Texas, Arizona, Tennessee, Florida, and Chicago. Their primary consumers would be women around the age of 13-22. They highlight the fact that their shoppers love fashion and that they will find everything they need at A’GACI.

Urban Outfitters: 2406 Guadalupe St. Austin, TX 78705Known for their bohemian free flowing style, Urban Outfitters is a favorite among 19-35 year old men and women. They not only sell apparel, but home furniture and cleaver toys and accessories. Urban Outfitters has done an incredible job through just word of mouth marketing. Their products are fun and fulfill what the consumer is looking for, causing people to go back for more every time.

BCBGMaxazria: Address-2901 S Capital of Texas Hwy, Austin, TX 78746 Section BBCBG is a well known brand all throughout the world. They have over 20 international locations and is known for their elaborate colors and quality of clothes. Although their price points are a bit high, they are appealing to the

brand loyal customer. If she wears BCBG she will want to stop in every time to see what exciting new colors and designs are in.

Indirect Competition

The University of Texas’s foot ball team, Long Horns, will be Edna’s indirect competition. Texas is known for their love for football. Women who will normally shop at Edna’s and use about $30-150 will be torn by either purchasing a new outfit, or watching the Long Horn’s in the next home game. Thankfully, football is not a year-long sport, and business will be better when this event is not present. 31

COMPOSITE S.W.O.T

Edna’s has compiled a condensed and co-related charting of non-redundant

areas of strategic interest and implication with this new business venture. The

emphasis resides in how Edna’s compares to its major competitors and illustrates

the strategies to overcome obstacles as well as those to better leverage company

growth. Our top competitors are Urban Outfitters32, A’GACI too33, Forever

21(XXI)34, and BCBGMaxazria. 35

StrengthCompetition:

Developed brand nationally and domestically

Accommodate economic recession by having lower price points

Good marketing through word of mouth and other forms of media

Online presence with good distribution

WeaknessesCompetition:

Limited customer base Location of warehouse might cause

distribution problems and errors in shipment of goods

Store layout flaws Low quality products Competitive pricing-may be too

expensive for those that live on a

31 Texas. 1st. New York: Random House Ltd., 2008. 107-108. Print.32 Urbanoutfitters.com33 BCBG.com34 Forever21.com35 A’GACI.com

Extended customer base; for both men and women

Good service and product varietyEdna’s:

Exceptional service and product variety

Prominent Target Market location Shopping where quality and quantity

can co-exist Good Marketing through word of

mouth Online presence with option for

distribution Personal touch due to caring and

knowledgeable staff

budget (BCBG,UO) Low sales due to economic status

Edna’s: Lack of employees when needed due

to being a small store Low sales due to economic status Limited customer base: predominant

target market for female Being in an area that does not

provide a one stop shopping experience

Not being able to put items on sale as quickly as big corporate retail stores

OpportunitiesCompetition:

Better distribution plan Initiate sales to rid of old inventory Quicker merchandise turnover with

better analyzing of trends and communication with buyers and stores

Worldwide reputation will draw brand knowledgeable customers

Edna’s: Better marketing through word of

mouth and promotional events New business will attract customers Great location: University of Texas

neighbor-never ending source of target market

New and exclusive merchandise

ThreatsCompetition:

Competitor taking business of potential customers

Closing down of stores because of economic status

Losing inventory due to large orders Losing customers due to not enough

merchandiseEdna’s

Losing opportunity due to lack of inventory

Competitors being in close proximity and some being in malls

Losing business because of holidays that cancels school for weeks

Lack of employment due to small store and working with a budget

Marketing Environment

Below we see an image showing the business cycle. The importance of knowing the

business cycle is to identify in what economic situation you and your business is in

or will be in. The Business Cycle goes further than just identifying the economic

trends of Edna’s location of 78735 TX. We will examine the economies of the

nation, state, county, city, and the sub-cities. This will allow us to change or plan

according to the needs of our

changing economy which may change the needs of our consumers.

Image Source: Google images 1 1

Economic Issues

National:

“The G-20's six largest economies took a big hit during the global recession in the past year and a half. Challenges remain but most appear on the path

to recovery”36

Image Source: CNN.com

Currently the nation’s top six largest economies are beginning to recover from the

recession. The charts show the business cycle and at which point these 6 nations

are in. The United States has recovered significantly and is looking like we will be

getting out of the negatives.

Identifying the economic state of the entire nation, especially the 6 largest

economies, will assist Edna’s with information about how much they should buy for

the coming year and how consumers will buy. This can also determine if Edna’s

will be producing items overseas or open up multi-channels to sell through the

internet to different nations. During the years of recession, we saw a growing

36 Goldman, David. "G-20 summit:6 countriesin recovery."  CNN (2010): n. pag. Web. 2 May 2010. <http://money.cnn.com/galleries/2009/news/0909/gallery.g_20_summit/index.html>.

trend uncirculated money. We are hoping that the following years of improvement

will allow Edna’s shoppers to consume more.

State

“The Texas economy, the worlds 11th-largest, continues to fare better than those of

many other states. But Texas felt the effects of the worldwide recession during

2009.

According to the National Bureau of Economic Research, the U.S. economy peaked

in December 2007 and entered recession. The Texas economy continued to grow

through most of 2008, with employment peaking in August that year, then Texas

joined the nation in losing jobs. During 2009, Texas’ gross state product (GSP)

declined more slowly than the U.S. economy (-1.7 percent versus -2.5 percent.”37

The presence of so many multi-million dollar companies has definitely been a plus

for Texas. The economy of the United States as a whole is in recovery. Even though

Texas was not hit as badly, it will be an advantage for Edna’s. This will create

more spending for tourists that may come from different parts of the country that

was affected by the recession. And the fact that we are coming out of the recession

will put people at ease and allow them to spend more on items that they might not

necessary need but want.

“Both the United States and Texas labor markets passed the trough of the Great Recession

in September 2009 (Figure 1). Texas’ job loss rate has decreased from 4 percent in

August 2009 to 1.5 percent in March 2010. Over the same period, the U.S. job loss rate

has decreased from 5 percent to 1.7 percent (Figure 1).The state’s seasonally adjusted unemployment rate rose from 7 percent in

March 2009 to8.2 percent in March 2010, while the U.S. rate rose from 8.6 percent to 9.7

percent duringthat period.”38

Edna’s will benefit greatly if job loss rates are significantly decreased. This will

better the economy as a whole and create traffic in their retail store. People will be

willing to spend their money instead of save it like they did during the recession.

37 http://www.texasahead.org/economy/outlook.html38 http://recenter.tamu.edu/pdf/1862.pdf

County

“The mission of the Travis County Underage Drinking Prevention task force is to create a community consensus that underage drinking is illegal, unhealthy, and unacceptable. The task force is comprised of social service, law enforcement, and other agencies and individuals, including TxDOT, Mothers Against Drunk Driving, the Travis County Sheriff's Office, the Texas Alcoholic Beverage Commission(TABC,APD, area school districts, local colleges and universities, and health care providers. Meetings are held on a regular basis.”39

Travis County should be more aware of underage drinking. This is a bigger problem for the County because Austin is in it, and because it carries the biggest University in the State; the University of Texas. Travis County has 8 colleges/universities with underage students that they also need to keep a watch on.40 That is almost 80,000 undergraduate students to watch over.

Edna’s employees will mainly be students at the University of Texas over the age

of 18. We will make sure to keep a strict policy where our employees do not come

to work intoxicated and drink responsibly if they do consume. Travis County’s

watch over these underage kids will help Edna’s by keeping students aware of

illegal acts. It could get difficult if our employees were to get arrested and not be

able to attend to their work at Edna’s.

City:

“The City of Austin has launched an online tool that works as an outlet for the public to provide comments about the city's budget.”41

The City of Austin is becoming more high tech and is finding ways to conserve

their city budget and use it wisely. Edna’s can benefit from the conserving of the

city’s budget. First off, if they were to use it to build more entertainment and

attractions in the Downtown area or even at the University, it could potentially

mean more customers and sales for Edna’s. Or it could be renovations for

39 http://www.co.travis.tx.us/county_attorney/underage_drinking_pgm/40 http://www.traviscountytexas.us/Colleges/universities.htm41 http://news8austin.com/content/top_stories/271656/city-launches-online-tool-to-gain-public-perspective

buildings and better living, making Austin Texas an even better place to live.

Anything that makes Austin better will benefit Edna’s whether it be better roads

or more parks.

City-Sub

“Right Now is a Great Time to Live in Austin!

Not only has Austin consistently controlled one of the strongest real estate markets in the United States, but according to Money Magazine, Austin is one of the Best Places to Live in America.

Austin is a tourist attraction and a magnet for new businesses.  Even Hollywood has taken a recent interest in the city, dubbing Austin an up and coming “Tinseltown.”  Once visitors enter the capitol city, they find it difficult to leave…which is evident in the area’s climbing growth rate.  Quality of life in the Greater Austin Area is superior to most major metropolitan areas; the employment rate is high, and cost of living comparatively low.”42

Throughout our research we are finding that almost everything we read tells us

that Austin is the way to go if you want to live in the suburbs. The reputation that

Austin has will be incredible for Edna’s. This means that we are in the right place

at the right time. It’s not that Austin is beginning to flourish. We believe that

Austin will be the starting point for Edna’s rich and long future. We have definitely

designated a great location and know that there will be many more opportunities

presented to us in the future as we grow astride the population and popularity of

this innovative community.

Political Issues

42 http://austin.cbunited.com/relocate/community.asp

National:

“(CNN) -- Grammy Award-winning singer Shakira has joined the growing chorus of opposition to Arizona's new immigration law.Shakira met with leaders Thursday in Arizona Thursday before talking about the issue on CNN's "AC 360." She said some police and lawmakers in Arizona are worried about how the new law will be implemented.‘"The mayor is very, very worried, as well as the chief of police here," Shakira said. "They're both very worried about the impact that implementation of this law will have on Latino families, the level of abuse that will be inflicted on Latinos, with or without papers."’43

Texas is home to many Latino families. They make up 36.5% of the entire Texas

population.44 Edna’s is located in an area where Latinos are not as prominent, but

the surrounding areas have an abundance of people with this background. These

surrounding areas include Round Rock and San Antonio. We have identified that

these locations are important to Edna’s. All of Texas will be affected if all their

Latino background workers were in danger of being deported back to their

homeland. Not many people will take the assortment of jobs that Latinos will take.

State: “The bill passed by the Senate Banking Committee would establish a $50 billion fund, prepaid by large financial institutions, that would be used to keep failing firms operating as regulators sell off their assets in an orderly liquidation process.”45

If this bill was passed, it would be incredible for small new businesses. If

Edna’s was opened during this time period, we would expect operating the

business to be less stressful because of the back up this bill would create.

We also hope that it will create more business around the area for Edna’s. It

would create competition but it will bring foot traffic to that area where

Edna’s will be as well.

County:

43 http://www.cnn.com/2010/US/04/30/arizona.shakira.immigration/index.html44 http://quickfacts.census.gov/qfd/states/48000.html

45 http://austin.bizjournals.com/austin/othercities/buffalo/stories/2010/04/26/story3.html?b=1272254400^3225501&s=sbc:2

“The 2010 Census is coming and it's imperative that Central Texans participate. Each question helps to determine how approximately $400 billion will be allocated to communities across the country.”46

Travis County wants everyone to fill out the 2010 census. This will assist in

creating a clearer analysis of the demographic of cities and help businesses

such as Edna’s to find the right place to open up a retail store. The Census

can also be a way for our county to be remodeled. If the government finds

there is a need, they will provide. Having a town worthwhile to visit will

bring consumers all around the world and all around the state.

City/City-Sub:

“Commissioner Gómez has successfully supported Travis County Bond Elections

every five years since 1995 to invest in the local economy as well as in the

infrastructure of the local mobility of traffic. Two bond elections were approved by

the voters to invest $90 million for the purchase of right of way for SH130. Drainage

projects have been approved by the voters since flooding in prevalent in Precinct 4,

Southeast Travis County.

In November, 2004, she successfully supported and received voter approval for the

construction of commuter rail, adding another mode of transportation to address

traffic congestion in Austin/Travis County.”47

Margaret Gomez has been both supportive and involved in the Austin Community

and Travis County. She has done an exceptional job in school at a late age and has

much to better her community. The re-election of Commissioner Gomez would be

good, not only for Travis County and Austin, but also the world right now.

Margaret Gomez has a Latin background and is holding a position where her

decisions could affect the American people. Re-electing her would mean that we

are going to trust our fellow Latin Americans. Currently Arizona is going through a

crisis where they are not allowing any Latin background on the United States

without their papers. Edna’s will favor the mixing of ethnicity and freedom to all

people who are American in the U.S. We will be a store that appreciates every race

46 http://www.campotexas.org/47 http://www.reelectmargaretgomez.com/about/

by allowing them the opportunity to work for us, and we feel that supporting

Commissioner Gomez will show our support.

Layoffs/Unemployment

Data Source: http://data.bls.gov/PDQ/ser 1

Data Source: http://data.bls.gov/PDQ/ser 2

Data Source: http://data.bls.gov/PDQ/ser 3

Data Source: http://data.bls.gov/PDQ/ser 4

Data Source: http://data.bls.gov/PDQ/ser 5

Top 20 Employers in Texas

“American Airlines (AA) is a global airline doing business in 250 cities and 40 countries throughout the world. AA is headquartered in Dallas, TX, but offer career opportunities in a number of other locations, including Boston MA, Chicago, IL, Miami, FL, Philadelphia, PA, San Francisco, CA and Tulsa, OK. At American, you'll find outstanding career opportunities and the chance to work with some of the best in the business.

AT&T is the largest telecommunications company in the United States and one of the largest in the world. Headquartered in San Antonio, TX, AT&T had 179,420 employees as of Sept. 30, 2006. The company   delivers  an unsurpassed portfolio of traditional and IP-based voice, broadband Internet, data transport, wireless and video services.

Baker Hughes has been a technology leader in providing products and services for the oil and natural gas industry for nearly 100 years. The company, headquartered in Houston, TX, is the only major oilfield service company structured around strong product-line divisions that are focused on Best-in-Class products and services. "New Baker Hughes employees have the opportunity to work in teams of engineers and scientists who invent and implement innovative technology that rivals the space industry in its complexity and sophistication."

The Container Store was founded in 1978 when Kip Tindell (CEO), Garrett Boone (Chairman), and Architect John Mullen opened a retail store offering an exceptional and eclectic mix of products devoted to helping people simplify their lives. The Container Store's home office is located in the Dallas/Fort Worth Metroplex, which is located adjacent to their Distribution Center

Dell Computer has revolutionized the industry to make computing accessible to customers around the globe, including businesses, institutional organizations and individual consumers for over 20 years. "Round Rock, Texas is the home to Dell Americas, the regional business unit for Canada, the United States and Latin America. Dell has regional headquarters in Bracknell, England, for Europe, Middle East and Africa and in Singapore to serve the Pacific Rim, including Japan, India, China, Australia and New Zealand." Dell is committed to being a meritocracy, and to developing, retaining and attracting the best people, reflective of their worldwide marketplace.

El Paso owns North America’s largest natural gas pipeline system and one of North America’s largest independent natural gas producers. "In the three-quarters of a century since its founding, El   Paso  has grown from a regional natural gas company to the largest natural gas transmission system in North America." Headquartered in Houston, TX, El Paso provides competitive pay and benefits.

"GameStop   is the world's largest video game retailer. With over 4,400 stores located throughout the United States and 15 countries, we are the retail destination for gamers around the world." Headquartered in Grapevine, TX, GameStop is always looking for intelligent and self-motivated people interested in working within one of the fastest-growing segments of the interactive entertainment business.

Hewlett-Packard Company (HP) was founded in 1939 by Bill Hewlett and Dave Packard. "The company's first product, built in a Palo Alto garage, was an audio oscillator—an electronic test instrument used by sound engineers. One of HP's first customers was Walt Disney Studios, which purchased eight oscillators to develop and test an innovative sound system for the movie Fantasia." Today HP maintains offices around the world including Hewlett-Packard USA in Houston, TX. HP provides technology solutions to consumers, businesses and institutions around the world and currently has over 140,000 employees in 178 countries.

J.C. Penney - James Cash Penney opened his first "Golden Rule" Store in 1902 in Kemmerer, WY. The J.C. Penney name was adopted in 1913 when the company had a total of 36 stores. Today, the company is headquartered in Plano, TX, has more than 151,000 employees and operates 1,037 stores throughout the U.S. and Puerto Rico. "JCPenney is the nation's largest catalog merchant of general merchandise, and jcp.com is one of the largest apparel and home furnishings sites on the Internet

Kemah Boardwalk, located in Kemah, TX, is the perfect family get-a-way with hotels, amusement park, restaurants, shopping and a marina. Employment opportunities exist here in a variety of fields from cashiers and dishwashers to hosts, retail associates and ride operators. Kemah is alway looking for fun, energetic, honest, hard-working individuals to work in their many locations.

Men's Wearhouse opened their first store in Houston, TX in 1973 selling primarily polyester sports coats. Today the company operates more than 720 retail apparel stores in North America. Men's Wearhouse provides competitive compensation and benefits, high-quality training programs and promotional opportunities.

Michaels Stores, Inc., the nation's largest specialty retailer of arts and crafts materials, has been helping crafters of all ages express themselves with skill and originality for over 20 years. Headquartered in Irving, TX, Michaels Stores can be found in 48 states. The company also operates seven distribution centers. Michaels has career opportunities available in a variety of fields from corporate to retail level

Nieman Marcus is a renowned specialty store dedicated to merchandise leadership and superior customer service. Headquartered in Dallas, TX, Nieman Marcus opened the doors of the first store on September 10, 1913. The firm offers

competitive compensation, a comprehensive benefits package and currently has career opportunities available at both corporate and retail levels.

Southwest Airlines (SWA )  began as a small Texas airline more than 35 years ago. Today, headquartered in Dallas, TX, Southwest Airlines flies more than 80 million passengers a year to 62 great cities all across the country, and we do it more than 3,100 times a day. SWA is now hiring Flight Attendants and Ramp Agents.

SYSCO - an acronym for Systems and Services Company - began with a promise to assist foodservice operators in providing consumers with solutions for meals consumed away from home. Headquartered in Houston, TX, SYSCO has over 170 locations in the U.S. and Canada, 47,700 employees and today is North America's leading foodservice marketer and distributor. The firm offers competitive compensation and a comprehensive benefits package that is responsive to the needs of their employees

Tesoro, headquartered in San Antonio, Texas, is a Fortune 200 and a Global Fortune 500 company with approximately 4,000 employees. The company refines crude oil from around the world into transportation fuels that meet the needs of their customers and consumers in the communities in which they operate. Full-time, regular employees of Tesoro are eligible for a competitive benefits package as part of their total compensation.

Texas Instruments (TI) was founded more than 75 years ago and today, evidence of TI’s continuing work in processing and interpreting signals is all around us in communication and entertainment. The company has earned more than 15,000 patents - testimony to the bright minds and innovative wills that keep TI at the technological vanguard. Headquartered in the heart of Dallas, TX, TI has manufacturing sites, sales and support offices located in Europe, Asia, Japan, and the Americas. If you are a professional, college grad or student on a search for engineering jobs or an exciting career in information technology (IT), manufacturing or finance, then a world of opportunity awaits you at TI.

Valero Energy Corporation, the largest refiner in North America, is based in San Antonio and has approximately 22,000 employees. Valero derives its name from San Antonio's most famous landmark, the Alamo. Founded in 1718, the Alamo was originally called Mission San Antonio de Valero. "Employees at Valero appreciate challenging responsibilities, the best benefits in the industry, a diverse working environment, and many opportunities to give back to their communities."

Whole Foods Market is the largest natural and organic foods supermarket retailer. Headquartered in Austin, TX, Whole Foods operates 187 locations in North America and the United Kingdom with 39,000 employees and 8 distribution

centers. If you are interested in a career in the food service sector, check out the opportunities available here.”48

University of Texas “The 350-acre campus breeds Texas Longhorns, as passionate about football as they are about academics. The university is the larger employer in Austin, (even more than the state government), employing more than 80,000 people. The number of student here is staggering, too: 39,000 undergraduates and 11,000 at the graduate level.”49

Texas is full of businesses due to the natural resources available and because there

is enough land to hold such large companies. For Edna’s this could either be a

good thing or a bad thing. Depending on the location of such businesses, it would

create more customers for Edna’s or it can take away from their business. The

University of Texas will be a good source of customers for Edna’s. The

demographic of Edna’s will be easily found in this location, whether it be student

or teacher.

Legal/Regulatory/Tax/Licensing Criteria

Tax Rates

“The Texas state sales and use tax rate is 6.25%, but local taxing jurisdictions

(cities, counties, special purpose districts, and transit authorities) may also impose

sales and use tax up to 2% for a total maximum combined rate of 8.25%.”

State City County Transit Special

Purpose

Districts

6.2%(.0625) 2%(.0025-.02) .5%$(.015) 1%(.0025-.01) .125%

(.00125-.02)

Due Date

Monthly, Quarterly, Yearly (based on qualifications): 20th day of the month

following the end of the reporting period.

Interest Rate

Past-due taxes are charged interest beginning sixty-one days after the due date.50

Licensing48 “Texas’s Largest Employers”. www.jobbankusa.com. Accessed 2, May 201049 Texas. 1st. New York: Random House Ltd., 2008. 107-108. Print.50 “Local Sales and Use Tax”. http://www.window.state.tx.us/taxinfo/local/. Accessed 1 May 2010

The City of Austin does not require a business license unless it involves taxi’s or

other specialized activities. These can be found in title VIII of the city code, Volume

I.51

Marketing Environment P.2

Social Issues

51 ibid

Education level

Education attainment for females 25 years and older:

No schooling: 3,495 Nursery to 4th grade: 2,264 5th and 6th grade: 4,996 7th and 8th grade: 4,518 9th grade: 4,296 10th grade: 3,634 11th grade: 3,199 12th grade, no diploma: 4,883 High school graduate (or equivalency): 36,974 Less than 1 year of college: 12,745 Some college more than 1 year, no degree: 29,591 Associate degree: 9,623 Bachelor's degree: 51,545 Master's degree: 18,568 Professional school degree: 4,130 Doctorate degree: 2,614

Education can be important when considering the target market. It is important to

know the level of education that your consumer has because it may determine how

you will run your business. Many of Edna’s consumers will be thriving for higher

education. We can make this prediction, because our main source of consumers

will come from the University of Texas, Austin. Although some businesses may

cater directly to those not as well educated resulting in a limited budget, Edna’s

will be a store that caters to those knowledgeable and aware of fashion as well as

price conscious. We will not discriminate any customer, but we feel that Edna’s

consumers will know what’s good for them in quality and style; she keeps up with

the trends and as she ages she is willing to spend more for the sake of her image.

Overall, educated or not, we feel that these people will definitely help us begin to

build a clientele and reach our goal for the end of this year.

Housing52

Houses: 276,611 (265,409 occupied: 119,191 owner occupied, 146,218 renter occupied)

% of renters here: 

 55%

52 Data Source: http://austintx.areaconnect Error! Main Document Only.

State:   36%

Housing density: 1100 houses/condos per square mile

Household type by relationshipHouseholds: 17,404

In family households: 3,744 (976 male householders, 443 female householders)

1,009 spouses, 737 children (711 natural, 10 adopted, 16 stepchildren), 7 grandchildren, 316 brothers or sisters, 26 parents, 77 other relatives, 153 non-relatives

In nonfamily households: 13,660 (4,994 male householders (3,125 living alone)), 3,524 female householders (2,003 living alone)), 5,142 nonrelatives

In group quarters: 9,568 (363 institutionalized population)

Size of family households: 909 2-persons, 250 3-persons, 167 4-persons, 77 5-persons, 9 6-persons, 7 7-or-more-persons.

Size of nonfamily households: 5,128 1-person, 2,372 2-persons, 519 3-persons, 406 4-persons, 69 5-persons, 15 6-persons, 9 7-or-more-persons.

Knowing our customers inside out is key to better sales and a quicker clientele.

Edna’s wants to understand all our clients and be able to cater to their needs. We

could definitely benefit from this type of information, because knowing the

household number and the amount of people will help us to estimate their

spending habits after finding out the average income. We know that this will not be

completely accurate, but through research we have identified this area to have

great potential due to the small family sizes and a large number of students.

Crime Rates53

Crime Type   2006 Total

Per 100,000 People

National per 100,000 People

Overall Austin Crime Index

45231 6372.2 4479.3

Austin Violent Crimes 3658 515.4 553.5

Austin Murders 20 2.8 7

53 Data Source: http://austintx.areaconnect Error! Main Document Only.

Austin Rapes 319 44.9 33.1

Austin Robberies 1358 191.3 205.8

Austin Aggravated Assaults

1961 276.3 336.5

Austin Property Crimes

41573 5856.9 3906.1

Austin Burglaries 7467 1052 813.2

Austin Larceny/Thefts 31562 4446.5 2601.7

Austin Motor Vehicle Thefts

2544 358.4 501.5

Austin Arsons 1   88 12.4 N/A

Knowing the area which you are setting up your own business is very important.

We have researched the crime rate of Austin to better protect our business and to

be aware of our surroundings. We will definitely provide assistance to our

employees when cars are parked far away and when in any doubt. Edna’s wants to

provide security especially on the job and even after hours.

Cultural Issues

Ethnic Mix

“The State is a melting pot dotted by pockets of Czech, German, and Irish communities; bilingual population in the lower Rio Grande Valley and border towns; and more than 4 million of Hispanic descent statewide.” 54

54 Baird David, Peterson.E, Scheldt. N. Texas, Wiley Publishing ,Inc. Indianapolis.

55

“Texas remains one of the fastest-growing states in the country. Between 1970-1990 its population growth rate was about two-and-a-half times the national average. From 1990 to 2000 the growth rate was almost 23%, nearly twice the national average, as Texas gained close to 4 million new residents.”56

“The three ancestries in Texas are Mexican, German, and Irish.”57

“Austin’s population has grown 47% since the 1990’s.” 58 Edna’s caters to every

race and ethnicity. We are located in an area where we cannot be racist or bias.

“The university has one of the most diverse student populations in the country and

is a national leader in the number of undergraduate degrees awarded to minority

students.”59 The UT has students coming from all around the world exposed and

raised in different cultures. Edna’s will accommodate any consumer who comes in

to look at our merchandise. A girl is a girl no matter what color or language they

speak. They all want to acknowledged and feel beautiful.

Night Life

55 Image Source: http://www.zipskinny.com/index.php?zip=7870556 Barenblat, Rachel.  Texas, the Lone Star State . Gareth Stevens, 2002. Print.57 ibid

58 Fodor. Fodors Travel Pubns, 2008. Print.

59 http://www.utexas.edu/opa/pubs/facts/overview.php

Heritage and Background, Austin TX

WhiteNative Hawaiian and other pacific islanderHispanic/LatinomultiracialAsianBlack/African Americanother

Club and Music Scene 6th street

Warehouse District

Red River- between 6th and 10th streets.

Oslo, 301 W. 6th st (512/480-9433)“Is the place to see and be seen in Austin, with lines out the door. The club plays host to a strong roster of the city’s finest DJs, as well as live performers such as regular Tuesday-night torch singer, Hedda Layne”60

Edna’s clients will love the night life as much as they love the day life. During the

night they can relax on 6th street with friends and go bar hopping. Or they could

just head over to warehouse district for some clubbing and live music. Our client is

versatile and fun. She will enjoy both day and night, and always be in areas of high

interest to the young and bright.

Performing Arts

Theaters Austin Circle of Theaters Hotline, 512/469-Show, Ext. 1603

Texas Box office, texasboxoffice.com: 512/416-5700

Star Tickets Plus,888/597-STAR, premier.ticketplus.netConcerts at La Zona Rosa, the Backyard, and Austin Music Hall, and selected shows at the Paramount Theatre.

60 Guide, Mobil.  Mobil Travel Guide 2008 Texas . Mobil Travel Guide, 2008. Print.

Austin Box Office, 3423 Guadalupe (512/474-8497; www.austix.com

State Theater Company, 719 Congress Ave. (512/472-5143; www.austintheatre.org.

“Performs at the beautiful old theater for which it is named, is Austin’s most professional troupe, and their recent repertoire ran the gamut from Judith Ivey’s Women on Fire to a dramatization of Orwell’s 1984.

Zachary Scott Theatre Center (512/476-2163; www.zachscott.com). Austin’s oldest theater which was incorporated in 1933.Performing Arts Center, The University of Texas;

“Austin has its own symphony, theater, ballet, lyric opera, and modern dance companies, but it also draws national and international talent to town. This center is located at the University of Texas.”61

Austin Symphony, 1101Red River St. (888/4MAESTRO; www.austinsymphony.org)

Austin Lyric Opera, 901 Barton Spring Rd. (800/21-OPERA, www.austinlyricopera.org)The Austin Chamber Music Center, 4930 Burnet Rd. Suite 203

Restaurants62

Downtow South Central Eastside Northwes Westlake/ Musica

61 Guide, Mobil.  Mobil Travel Guide 2008 Texas . Mobil Travel Guide, 2008. Print.

62 Guide, Mobil.  Mobil Travel Guide 2008 Texas . Mobil Travel Guide, 2008. Print.

n Austin t Lake Travis l Brunches

Driskill Cafe

Uchi Jeffrey’s Eastside Café

Z’Tejas Southwestern Grill

Hudson’s on the Bend

Castle Hill Café

Vespaio Fonda San Miquel

Hoovers Musashino The Oasis

Shoreline Grill

Curra’s Grill

Wink

Clay Pit Guero’s AstiHuts’s Hamburgers

Matt’s El Rancho

Hyde Park Bar and Grill

The Iron Works

The Salt lick

Threadgill’s

Las Manitas

Chuy’s

Shady Grove

We have researched all the restaurants and eateries that our consumers will be present in. Whether it be burgers or steak, our Edna girl will have a good appetite. Identifying the places where our clients will go outside of Edna’s is important for us as a store because it will allow us to better understand our consumers. It could also help us during selling, by being the connection needed to close a sale.

Parades /Festivals/Holidays63

1. Fantastic FestHeld each year at the Alamo Drafthouse Cinema on South Lamar in Austin, Fantastic Fest has become the largest genre film festival in the United States. Those in attendance are treated to a full slate of horror, sci-fi, and action movies throughout Fantastic Fest.

2. Texas Book FestivalHeld at the State Capitol in Austin, the annual Texas Book Festival features over 200 authors, as well as exhibitors, live music, food, a children's area and more.

3. Austin City Limits Music FestivalOne of the largest and most popular music festivals in the country, the Austin City Limits Music Festival features in excess of 100 performing acts offering a mix of music from various genres.

4. Austin Film Festival63 http://gotexas.about.com/od/festivals/tp/05HolidayParade.htm (1-8)

For more than a decade, the Austin Film Festival has provided a venue for up-and-coming screenwriters and filmmakers to have their work brought into the public consciousness.

5. South by Southwest Music FestivalHeld in Austin each March, South By Southwest (SXSW) is one of the top music festivals in the country. Event performers cover over 50 stages in downtown Austin.

6. Keepin' It Weird FestivalAustin's annual Keepin' It Weird Festival celebrates all of the odd, crazy, irreverent and funky things that make Austin a unique place to visit and live.

7. Austin Reggae Festival

Austin Reggae Festival

The Austin Reggae Festival is one of the largest and most popular Reggae music festivals in Texas. Featuring nearly a dozen bands, the Austin Reggae Festival treats attendees to two full day of live music.

8. Chuy’s Christmas Parade

Chuy's Christmas Parade Overview:

Why wait 'til December for a Christmas Parade when you can attend Chuy's Christmas Parade in Austin during November? This unique Christmas parade raises money for "Operation Blue," which provides toys to needy children in the Austin area.

About Chuy's Christmas Parade:

Held the Saturday following Thanksgiving, Chuy's Christmas Parade features giant inflatable balloons, holiday floats, classic cars, marching bands and Santa. However, in addition to being great entertainment for those in attendance, Chuy's Christmas Parade also serves as a toy drive for needy children. Spectators are encouraged to bring a toy, which will be collected by 'Santa's Helpers' on behalf of Operation Blue during the parade.

Where Chuy's Christmas Parade is Held:

The parade route begins at the State Capitol at 11th and Congress and proceeds south along Congress to Cesar Chavez.

Austin is considered by many to be the cultural hub of Texas. This diversity is reflected in the varied festivals and events staged in Capital City each year.

9. Austin's Pride Parade

“The Austin Gay and Lesbian Chamber of Commerce has organized Austin's Pride Parade since 2002 with attendance as high as 45,000 in 2008.  In 2008, AGLCC added the festival to its list of responsibilities and in 2009 commissioned the formation of The Austin Gay and Lesbian Pride Foundation - an organization solely dedicated to managing and organizing Austin's Pride parade and festival.  The 501(c)(3) has been filed with the Texas Secretary of State and the IRS and approval of the non-profit status is pending.”64

10. First Night Austin

“Each New Year’s Eve the city serves as the stage for a variety of artists, street performers, musicians, puppeteers, and dancers. The interactive festival features children workshops for creating puppets, festive hats, and origami cranes for the final event parade.”65

Austin Texas is a city full of excitement and events. The biggest event in Austin is the Chuy’s Christmas Parade, which goes on during November. This is when Edna’s will begin its second promotional sale. Our consumers will know of this through our advertising on Facebook and other mediums.

We can definitely count on our target market to be present in many of the festivities taken place throughout the year. This will be a time for Edna’s to sell and observe the sales throughout this time. It will assist in inventory control and help us to determine how to prepare for the next year, or show us the success of that season.

64 http://sites.google.com/a/aglcc.org/austin-pride-2010/

65 Fodor. Fodors Travel Pubns, 2008. Print.

Edna’s will be closed during the main holidays such as Thanksgiving, New Years, New Years Eve, Christmas, and 1/3 of the day the Chuy’s Parade occurs. We will determine if it is necessary to close during smaller festivities, because being available to our consumers during these periods could mean more sales and clientele

Religious Issues“Percentage of population affiliated with a religious congregations: 46.17%”66

Religion Adherents

Catholic ChurchSouthern Baptist ConventionPresbyterian ChurchLutheran ChurchUnited Methodist ChurchChurches of ChristCharismatic ChurchesEpiscopal ChurchEvangelical Lutheran

image source: http://www.city-data.com/h 1

Knowing our customer religion could again help us to make sales by helping us better relate with them.

Texas is known for their religious background. It is not unlikely that a Texan will go to church on a

Sunday morning and in his good shirt. By understanding the culture we are able to better understand the

way that our demographic is. Edna’s will try our best to accommodate those that are obligated to not do

66 http://www.city-data.com/city/Austin-Texas.html

things or do thing because of their religion. We will also make sure that our employees understand that

we will be considerate of their beliefs and values.

Creating a trusting relationship on a personal level will help Edna’s to establish its place among the stores

in the area. We hope that we can make our customers feel more welcome and continue to put a personal

touch on our customer service to better assist our consumers.

Technological Advances

The Technologies that we see today in the retail industry is becoming more and

more advance every day. E-commerce has grown over the last decade, and not we

are going on to bigger things and better things; such as mobile commerce.67 This is

when advertisements and buying can be done through your mobile phone. The

existence of phones that receive internet connection, such Apple products, Verizon

Wireless phones, Samsung, AT&T, are just the beginning of the mobile revolution. 68

These technological advances are making their way into the fashion industry

quickly. How will Edna’s benefit from these new technologies? The technologies

that are coming into existence are cheaper to obtain when they first debut; this is

usually to test out the technology. However, Edna’s will not be advertising via

mobile commerce because we have yet to figure out if our Edna’s client would be

interested in such a way of buying. From our research, we have identified that our

consumers like to see the products and touch them with their own hands and eyes

before purchasing. So we will definitely take into consideration the option, but not

until our first or 2nd year of operation.

67 http://www.ecommercetimes.com/?wlc=127616250668 http://www.mcom.cs.cmu.edu/

Technology will continue to advance, and to be able to keep up with the trends,

Edna’s should understand and know what is out there and if it will be beneficial for

them to have in our store.

Environmental Issues

“Environmental Impact Assessment (EIA) is a process of evaluating the likely environmental impacts of a proposed project or development, taking into account inter-related socio-economic, cultural and human-health impacts, both beneficial and adverse.”69

“LEED - (Leadership in Energy and Environmental Design) is an ecology-oriented building certification program run under the auspices of the U.S. Green Building Council (USGBC).  LEED concentrates its efforts on improving performance across five key areas of environmental and human health:  Energy, Efficiency, Indoor Environmental Quality, Materials Selection, Sustainable Site Development, and Water Savings.  Consumers around the world are learning about LEED compliant products, and are adapting them in their home everyday.”

The environment and how it is affected should be important to everyone. This earth

is our earth and the earth or our children and grand-children. It is important to

take care of it while you can, and Edna’s has researched ways to be more green

efficient. Coincidently, the LEED compliance headquarters is located in Houston,

Texas. This should be even more important to us because our state has taken

initiative to become more green. Leed will assist us in improving performance in

energy, efficiency, indoor environmental quality, materials selection, sustainable

sit development, and water savings.

Edna’s will put in the extra effort to be as green as we can. We understand the

finances that go with this responsibility, but we would like to support our earth and

so will our consumers.

69 http://www.cbd.int/impact/whatis.shtml

Promotional Plan

Image Statement

“Edna’s will create a place to shop for those who want to express

themselves with comfortable and beautiful clothes. Our “in” girl is not

determined by what she is wearing, but by the aura she gives off while

wearing Edna’s clothes. An Edna girl will be described as determined,

simple, independent, happy, balanced, and beautiful. Indulge life like an

Edna girl. Live every day like it’s your last, dance like there is no tomorrow

and sing as if no one is around. Be an Edna girl!”

Image Source: Google Images 1

Marketing Mix

Edna’s will be recognized by its elephant logo. We have chosen the elephant

because they have been defined as a creature larger than life. This image

will be the source to our store image. We want the Edna girl to understand

that they are part of a big life(elephant) and to live it beautifully(little girl).

Another reason why we choose the elephant is because of the beauty it

exerts in behavior and the fact that it lives in a warm habitat kind of like

Texas. Our image will be made through our clothes, and our clothes will be

inspired by our view in life.

Product Description

The lifecycle of Edna’s merchandise will be longer than stores because they

will be bringing things in from out of the states, and beccause the products

we purchase will be more classical pieces. Edna’s will carry a large

assortment of accessories, dresses, skirts, shoes, and dressy tops. We

believe these items will remain in the Edna’s shoppers closet for years to

come. They will wear merchandise bought from Edna’s until they think it’s

time for someone else to enjoy it. Edna’s will carry items that fall between

the growth stage and Maturity stage. Which means that many items will be

classic pieces. We could call ourselves perhaps a mixture of Chanel and

theory knockoffs. We want our pieces to be items that people are going to

love for years to come. When pictures of Edna’s dresses appear, we want

our consumers to see themselves as beautiful with the help of Edna’s.

Source: Google Images, http://www.12mana 1

Categories of ApparelOne-piece DressesSkirtsDressy TopsAccessories

Brands 70 Hand Bags Dresses Dressy

Tops/Skirt

s

Accessori

es

Forelle Lovely Day Yoco Ann Kim

Fashion

Accessorie

s

Deux Lux Namdaemu

n71 

Namdaem

un

J&B

Super Lover

handbag

Dongdaemu

n72

Dongdaem

un

Juliana

Binman

Collection

Yoco Lovely Day Luca

Edna’s will consist of clothes bought in California, Texas, Korea, and online

venues. All venues will be visited 3 months before the upcoming season. Our

product brands will include items from Dongdaemun and Namdaemun from Korea.

Juliana, Mikko, Luca, and J&B will be bought from jobbers in California and Texas.

Many of our products will be from out of the Country for the first year. We will

develop more relationships throughout this next year and spread our business to

more local wholesalers. Edna’s will hire buyers as well as do some buying on their

own. Any buying outside of the states will be done through the owner of the

business. We will have to be more vigilant when it comes to buying in foreign

countries.

70 http://www.fashiondistrict.org/Search.html?tag=Handbags71 http://www.lifeinkorea.com/shopping/index.cfm72 http://www.lifeinkorea.com/shopping/index.cfm

One-Piece Dresses, Skirts, Dressy Tops

Vendors Manufacturer/ DeliveryFashion4us73 Korea, Hong Kong, Japan /DHL Express

shippingAlternative Apparel /FedexLovely Day Wholesale California/ Ground Shipping via UPSMyong-dong Wholesale74 Korea/ Air Freight, international

shippingNamdaemun/Dongdaemun Korea/Air Freight, international

shippingYoco Korea, Hong Kong, Japan /DHL Express

shipping

Accessories

Vendors Manufacturer/DeliveryMyong-dong Wholesale Korea/ Air Freight, international

shippingYoco Wholesale75 Korea, Hong Kong, Japan /DHL Express

shipping

Handbags

Binman Collection76 Japan/UPS ShippingSuper Lover Handbag Japan/UPS ShippingDeux Lux California/Ground shipping via UPSForelle California/Ground shipping via UPS

73 http://fashion4us.com/wholesale-fashion.action74 http://www.mytravelguide.com/attractions/profile-79555205-South_Korea_Seoul_Myung_dong_Street.html75 http://www.yocowholesale.com/wholesale-handbags-c-20.html76 http://www.carlvinoparis.com/product_info.php/pName/bn1195-black-m

Price

Dresses

Skirts

Dressy Tops

Accessories

HandBags

$0.00 $50.00 $100.00 $150.00 $200.00

25.95

20.95

12.95

5.95

35.95

32.95

25.95

19.95

12.95

59.95

59.95

35.95

25.95

19.95

79.95

PromotionalValuePrestige

Edna’s price range will fall at $5.95 to $79.95. Our prices have such a large range

because there will be items that cost more because of international shipping and

because out products will be of better quality. When our consumers talk about out

store, they will tell their friends that we have good quality items for a good price.

Our price line will be at $19.95- $79.95 for our entire store. For each category it

will all differ. Handbags will range from $35.95-$79.95, Accessories will be $5.95-

$19.95, dressy tops will be $12.95-$25.95, skirts will be $20.95-$35.95, and our

dresses will be $25.95-$59.95. Consumers will regularly come out of Edna’s after

spending an average of $150.

Our prices will attract our demographic that value quality and price the same.

Edna’s will be a place where you can get an item at every visit. The quality of our

products will be worth every buck.

Promotional Mix

Eventually, we hope that the media that will effectively market and bring

consumers to Edna’s will be word of mouth. Our primary competitor, Urban

Outfitters, is dominantly sold through word of mouth, catalogs, and through blogs. 77 We do not see the presence of advertisements in the form of magazines,

celebrity citing, or in television. Edna’s would like to have that kind of consumer

interest. Our merchandise will be seen and talked about enough to stir interest in

anyone who sees and wears it.

Edna’s would like to be a community known boutique. We want our customers to

know that we are exclusively in their city and sell items that can only be bought at

Edna’s. This will hopefully create a sense of pride in Austinians and make them

feel inclusive. However, until we can create that kind of consumer loyalty and

interest Edna’s will advertise with the local media, and grow to become a store

which can advertise through blog writing, catalogs, and word of mouth. The

mediums used such as, The Austin Chronicles, Austin Business Journal, Austin 360,

Austin Monthly, The Daily Texan, and Austin is burning, will have an article to

identify the existence of Edna’s. The Daily Texan is a newsletter made by the

students of the University of Texas.78 Edna’s will be located on Guadalupe Street,

which is the avenue directly associated with UT students. Our primary consumers

will be found in this place. So this will be a very important part of our advertising.

Another spot Edna’s will keep as a primary advertising venue will be Austin 360

and the radio station 96.7 and 98.1. Many people that are planning to visit Texas

will want to see our beautiful capitol.79 We want to provide tourists with as much

information as possible. Although our primary consumers do not entail tourists, we

know that anyone looking to stay in Austin, Texas, will listen to our popular

country music and look up internet sites to assist them while in Austin.

77 http://www.urbanoutfitters.com/urban/index.jsp78 http://www.dailytexanonline.com/ 79 http://www.austin360.com/blogs/content/shared-gen/blogs/austin/outandabout/index.html

Direct Marketing Strategy

Direct marketing will be more prominent after a clientele is made. For the time

being we will continue to market our products through flyer advertisements when

promotions are being offered, and when we are having a sale that we would like

everyone to know about.

Public Relations

Edna’s will learn what is important to their customers. We will try our best to

attend any events that will help us spread our name out and to better assist our

consumer. Edna’s will be closed on major holidays.

Personal Selling

Edna’s will be a place where anyone and everyone will be able to shop

comfortably. We will provide our sales associates with the knowledge necessary to

cater to the needs of our consumers. Our primary customers will be around the

age of 18-24 which fall into a group of people born in the Y Generation. We find

that this fact will help us understand our customers as multi-taskers, technology

savvy, and product knowledgeable80. This is why our sales associates will be our

consumers as well. They will be familiar with the product because they own it

themselves. We will allow our staff members a great discount, which will

encourage purchasing at Edna’s.

We want to provide an environment where our staff members feel just as important

as our consumers. Our sales associates will only sell as much as they want to. If

they do not like the area which they work in, Edna’s cannot expect to reach its

highest potential in sales or advertising: this is because our primary form of

advertising is word of mouth. So to maintain a great work environment we will

ensure a strong managing staff. These managers will be designated by the owner.

All managers will take care of customers and meet their needs whatever it may be.

A strong staff will create a strong and comfortable environment. We know that

Edna’s will build a clientele list within the next year. Being a client of Edna’s will

come with many benefits, which will draw consumers to sign up. All staff members

80 Yan, Sophia. “Understanding Generation Y”. 2006. The OBERLIN REVIEW. http://www.oberlin.edu/stupub/ocreview/2006/12/08/features/Understanding_Generation_Y.html

will be knowledgeable of all happenings in store, and will be portray a professional

attitude at all times.

Internet Strategy and Means

The internet is a very important entertainment for many college students. It is not

only a means of entertainment, but it is a way of life. You can find anything and

everything online. According to a statistics report made in 2009, there are a

growing number of older people using facebook. However, the number of college

students using facebook is still unbeat81. We see a 40.8% of facebook users are

aged 18-24, which is the demographic that we are targeting.

Data Source: http://www.istrategylabs.co 1

Advertising has become a huge part of Facebook. This is because there are so

many consumers of all demographics online. It is the perfect place to let them

know that something is hip and happening. Edna’s will use this internet site to

81 http://www.istrategylabs.com/2009/01/2009-facebook-demographics-and-statistics-report-276-growth-in-35-54-year-old-users/

advertise our retail store. We will let them know of the promotions, directions to

Edna’s, and a description as to what we sell. We are hoping to think of ways to

make more sales by promoting friends tell friends to receive discounts.

Twitter is another form of internet communication, but we find that twitter can be

harmful to our business during the first year. We would like to establish our stores

image before we have anyone giving immediate opinion on our merchandise. For

the time being, we will use Facebook as our primary medium through the first year

of business.

Tactical Plan

Gantt Chart 12 month prior to Opening

We have made a Gantt Chart to clearly identify the process before Edna’s will be

opening up for the public. Edna’s will set a time limit of 12 months to prepare for

the debut of our first retail business. In our Gantt chart we will identify the time it

will take for our plans to be approved, loans, building lease agreement, interior

design, contacting vendors, ordering displays, hire associates, and advertising. We

have estimated the amount of time that each one of these projects will take and

will attempt to stay on track.

June

Finish plan and receive approval.

o Know the specified loan amount

o Have demographic and location set

July

Plan completely approved

Visit bank for loan consultation

Begin looking at leasing buildings in Guadalupe Street location

August

Loans completely approved

Location set and ready for renovation

Leasing of building

o Begin paper work

o Begin analysis of store and what is needed.

September

Building lease approved

Interior design ideas formulated

Interior design begins

o Visit furniture stores

o Consult with interior designer/architect on plans

October

Continue interior designing

Exterior design begins

November

Continue interior design/renovation

Continue exterior design/renovation

Contact vendors for merchandise

Begin choosing merchandise

o In state buying

o Out of state buying

Advertising begins

December

Finish interior design

Finish Exterior design

o Cover Exterior until open day.

Cover with white/black with sign telling of Edna’s opening day.

Buy merchandise

o Order all merchandise with agreement of 5/10 net 30.

Begin looking to hire

o Post signs and put onto craigslist.

Advertising Cont.

o Austinian Times

o The Daily Texan

January

Finish negotiation with vendors

Continue purchasing merchandise

o Inventory delivery begins

Start hiring

o Sales associate

o Managers

o Buyers

o Cashiers

Advertising Cont.

o Austin Chronicles

o Austin is burning

February

Finish all buying of Merchandise

Begin training employees

Inventory deliveries throughout month

Advertising cont.

o Facebook

o Austin 360

March

Finish Training employees

o Begin arranging inventory

Advertising cont.

o The Daily Texan

Inventory deliveries throughout the month

April

Advertising Cont.

o Facebook

o The Daily Texan

May

Advertising Cont.

GRAND OPENING

o May 23, 2012

Gantt Chart 12 month post Opening

Edna’s will not only have a Gantt chart that plans 12 months before opening, but

also a chart that identifies goals that we accomplish post opening. Some goals that

we will set for the next 12 months will include; an advertising efficiency test, plan

out our 2 sale dates, provide a sales associate workshop mid-year, buying

merchandise out of state and in state 3 months prior to season, and make a client

list by the end of the year.

June

Continuation of Advertisingo Facebook Advertising will be done throughout the yearo Austin chronicles will be done 1 month after opening dayo The Daily Texan will advertise for 2 months right after our grand

opening We will do it twice for The Daily Texan because our primary

target market will be reading these papers. 1st promo sale preparations

o Markdowns for opening o 25-35% off with promo tickets

Continue to look for potential vendors or good buys

July

Continuation of Advertisingo Facebooko Daily Texano Austin Journal ad will be 2 months after. We want them to write about

how successful they think our business will be and about our unique opening day.

1st promo sale Continue to look for potential vendors or good buys

August

Cont. Advertisingo Facebook

Cont. to look for potential vendors or good buys

September

Cont. Advertisingo Facebook

Begin traveling to buy merchandiseo Travel to korea

Buy merchandise Sales Workshop begins (manager)

o Education for sale repso How to better relate to you customer

October

Cont. Advertisingo Facebook

Sales workshopo Sale associates testing for awards

Buying merchandise for Spring 2011o Finishing buying in Koreao Travel back to the states

Begin in state buying California

November

Cont. Advertisingo Facebook

Sale workshopo Awards given out

Gift cards Shopping sprees

Buyingo In state buying

Texas Final all buying

December

Cont. Advertisingo Facebooko Austin Chronicleso The Daily Texan

2nd Promo Saleo Mark downs taken o 25%-15%

Spring buying complete

January

Cont. Advertisingo Facebook

2nd Promo Sale

February

Cont. Advertisingo Facebook

March

Cont. Advertisingo Facebook

Traveling for buying begins for Fall 2012o Buying in korea

April

Cont. Advertisingo Facebook

Traveling back to stateso Buying in states

Texas California

May

Cont. Advertisingo Facebook

Finish Fall 2012 buying

Opening Day Event

Edna’s will open its doors on May 5, 2011. We have planned a special day for

those that are interested in coming to our opening event. Advertisements

according to our Gantt chart plan will start during the month of November. This

will allow potential consumers enough time to identify a new retail business

opening up in the Downtown area. We will promptly advertise via the Austinian

Times, Texan Daily, Austin monthly, Austin 360, and blogs such as Austin is

burning.

Our advertisements will announce the opening day features and why everyone

should attend. Edna’s will be a retail store that makes her feel feminine, beautiful,

and whimsical. We want all our consumers and guests to feel like a lady and

treated like during our opening event. On opening day we will be sufficiently

staffed and provide each visitor who purchases an item/items over $35 a free sun

parasol. They will have floral designs in shades of pink, yellow, and orange. Sun

parasols were used as sun shields by royals and people of high stature. 82 Recently

it has come back into fashion as an accessory; women are realizing that the sun’s

rays are much more harmful than they had expected. Edna’s will accommodate

each lady who purchases item/items over $35, a sun parasol to protect them

against the wrath of the Texas sun. We have also decided to provide refreshments

to all that enter Edna’s; this will cause a stir in front of our business and create

more foot traffic. We are sure that once our consumers take a look at what we have

to offer, they will want to come in.

Our opening day set up will be elaborate. Edna’s will put much effort into

providing a grand opening. The entire area will be lit up with round pink balloons,

so that it cannot be missed. At the front of our store we will have the promotional

cards explaining the procedure of purchasing $35 worth of items to receive a sun

parasol. This front area will also be the designated spot for the placement of our

refreshments. We will carry Pellegrino in a orange and lemon flavor. We have

chosen this drink because it is not as generic and cheap looking as regular sodas.

Lastly, we will have our sales associates placed at the front of the house, in house,

and back of the house for a smooth shopping experience for all. Edna’s does not

want to be remembered as the store that was understaffed or having a lack of

customer service.

Reach/Frequency/Advertising budget

82 http://www.sarasparasols.com/parasol_history.html

Medium Reach Frequency Type/Size Monthl

y Cost

Yearly

Cost

Faceboo

k83

1/month Pop Up $.46/

click

$500

$6000

Austin

Chronicl

es84

443,000 1/6

months

Tabloid

Ad

$2,000 $4,000

Austin

Business

Journal85

77% of

people in

managem

ent

positions

Once Newspape

r, 1/3

page

vertical

$2,362 $2,362

The

Daily

Texan86

48,000/

day

1/6

months

Newspape

r Ad ¼

page

$300 $600

Austin

Monthl

y87

130,000 once ¼ page $800 $800

Austin

36088

250,000 Througho

ut year

In

newspape

r 3 lines

with

online Ad

42

days/$6

0

$540

Austin is

Burnin

g89

$100 1/6

months

Online

blog

$100 $100

83 http://www.facebook.com/advertising/84 http://www.austinchronicle.com/85 http://www.bizjournalsmediakit.com/austin/Readership.html86 http://www.dailytexanonline.com/87 http://www.austinmonthly.com/advertise.php88 http://www.austin360.com/89 http://austinisburning.blogspot.com/

Total Monthly $6902

Totally Yearly $14,402

Pricing Plan

Pricing Objectives & Strategy

What will Edna’s be known as after entering the Austin group of boutiques and

stores? Edna’s main objective for this first year will be to increase sales volume

and gain customer satisfaction. We believe that through premium pricing and

geographical pricing, we will be able to accomplish our goals for 2011.

As a brand new store Edna’s wants to be accepted by the demographic that they

are selling to. We want to do everything possible to make the shopping experience

memorable and addictive to our consumers. This would result in an increase in

sales volume which will help us meet our goals. To accomplish these goals we will

need a strategy that grabs the attention of our consumers. Edna’s strategy will be

to sell products that no one else will sell and to price the items according to needs

of that area. We will be located in Downtown Austin on Guadalupe street. This is

the main street for the University of Texas, where over 50,000 students go through

to attend classes and spend their leisure time.90 We want to be able to cater to the

students that attend the University of Texas. If statistics hold true, college students

do not have a lot of money to spend. This is why we have decided to conduct a sale

twice a year and create promotions creating an idea of great deals. Our competitor

is located on the same street and we will make sure to drop in from time to time to

see their style of pricing.

We hope that our strategies of pricing will assist us in achieving our objectives,

and to grow as a small business. Edna’s biggest goal during the first year of 90 Baird, David, Eric Peterson, and Neil Schlecht.Frommer. Frommers, 2007. Print.

operation will be to be appealing to the market that we have targeted. Once we

reach that point, we believe that everything will slowly fall into place.

Markup/Markdown plans

Edna’s will plan on marking up their merchandise 400-500% the original

wholesale price. Our boutique will not be able to survive if we were to go through

markdowns at low mark ups percentages. However, since we have high markups,

we will also have some great sales two times a year. During these sales we will

deliver products that are 35% OFF at first mark down, 25% OFF at second

markdown, and 15% OFF at third markdown. All of our products will be marked

down around the same time.

Product Class Markup Markdown

Dresses 400-500% 1st MD= 35%

2nd MD= 25%

3rd MD=15%

Skirts 400-500%

Dress Tops 400-500%

Accessories 500-600%

Shoes 400-500%

Edna’s accessories will be marked up differently than our apparel. We will markup

accessories 500-600%. This will not be so questionable due to the fact that most of

our accessories will be coming from Korea. This will assist greatly, in the payments

that are needed off hand at the time of buying. Our markdowns for accessories will

be done at around the same time as our apparel; 35%, 25%, and 15% OFF.

Our markups will be determined during and discussed after purchasing. The

markdown for Edna’s will be greatly awaited, but will be done according to the

selling of merchandise. Our markdowns done two times a year will be a

promotional event. Where Edna’s will give a certain percent off at your next

purchase, or purchase on the day of, if a certain amount is bought. These

promotional markdowns will follow the seasonal changes, and will take place

during the receiving of our new season’s products.

Stock Turnover

We will find our stock turnover by dividing yearly sales by the inventory. Our range

will fall between 3.8-4.2. This range indicates that Edna’s will purchase almost all

products at least 4 times a year.

Terms of Payment

Edna’s will be working largely with small wholesales located in Korea, California,

and online vendors. Many of our payments for Korea or any foreign country will be

paid off as soon as the merchandise are bought. State vendors will be discussed

and agreed upon after meeting.

Our good pay strategy will enable us to take the discounts offered by our vendors.

We hope that this will assist us in being competitive in pricing and profitable as we

increase gross margin with lower cost of goods. Lastly, we want to create a good

relationship with our vendors to receive items quicker and more efficiently.

Terms of payment will be determined by the vendor and Edna’s. Most of our terms

of payment will include a 5/10 net 30. This will mean that if we pay in 10 days we

will receive a 5% discount and the invoice must be paid in 30 days. Edna’s will use

this term due to being a small boutique that buys in small quantities. We will also

be doing frequent business in the first year to get a good feel for what our

customers like and what they do not.

Distribution Plans

Off Site Sales

Edna’s will distribute merchandise to their clients in a variety of ways. We do not

see Edna’s taking on this task until the second year after opening; however, we

find that it is important to identify where we want to be and how we will do this.

After opening our store on Guadalupe Street we intend to begin building our client

list and identifying which is the best for our target market.

We want to provide our customers with satisfaction and alternative venues of

purchasing Edna’s merchandise if necessary. The first form of distribution will be

via telephone. Our sales group will view a phone call just as important as a

customer who enters the store. Due to the cost of creating a catalog or maintaining

an internet site, we will keep our selling primarily by phone and orders in store.

Edna’s will keep record of the products that we have designated to be re-ordered,

and notify customers of the availability of these products if asked. We hope that

later in business, once we have created enough foot traffic and produced a high

volume of sales, we will initiate the spreading of distribution and take the next step

according to our progress this fiscal year.

E-Commerce or E-business has grown tremendously over the last 8 years.91 The

internet has begun to be found in places that are more easily accessed by anyone

has a mobile phone. As the internet becomes more accessible through the phone or

iPods, we see the growth of M-commerce. This form of selling is mainly through

the mobile phone. 92

Data Source: http://www.trulium.com/User 1

Although selling through M-commerce is becoming more prevalent, Edna’s will

not be using this form of selling until we have become more established. Since we

are a new business, we must be cautious of all the variables that could make us

better, or more vulnerable.

Forms of payment

91 http://www.witiger.com/ecommerce/ecommercestatistics.htm92 http://www.wisegeek.com/what-is-m-commerce.htm

Edna’s will be taking payments of MasterCard, Visa, checks, and cash. We want to accommodate any

customer who prefers different forms of payment. It would be a great loss if we could not take payments

at our inconvenience. We have identified that many of our consumers will range between the age of 18-

30. Many of our consumers will be students who do not want to spend more money than they have to. We

believe that the master and visa card will be more sought out means of finance, due to the lack of an

annual fee to our consumers; whereas Discover and AMEX have higher fees for both the seller and

buyer.93 This will be the main reason why we feel that it is unnecessary for our retail store to take AMEX

or Discover. In addition, Discover’s policies of returns could be detrimental for our business.

Checks will always be doubled checked by the banks they represent. Edna’s clients will be young, so we

do not want to take chances when it comes to payments. We will train all our sales associates to be polite

when attempting to guarantee a payment at all times.

Shipping/Pricing Charts

Below is a map detailing the amount of time it will take to deliver through UPS in North America.

Edna’s will only deliver their merchandise within the 51 states and think about expanding only after we

have completed the 3rd year in business. We have researched the prices for shipping, and have concluded

that many of our sales will average out to be 5-10 lbs. These weights will determine the amount shipping

93http://www.creditcards.com/credit-card-news/help/differences-visa-mastercard-amex-express-discover-6000.php

Graph Source: http://www.google.com/imgr 1

will cost for each customer. The price 5-10lbs will range around 5 to 51 dollars.94 Although 51 dollars

seems like a large amount, it will readily be used. Many of our clients will be domestic, and will range

around 5 to 10 dollars for shipping.

Zones 102 103 104 105 106 107 108 124†

Image Source: http://www.ups.com/maps/re 1

Sources

Books

1. Barenblat, Rachel. Texas, the Lone Star State . Gareth Stevens, 2002. Print.2. Fodor. Fodors Travel Pubns, 2008. Print.3. Guide, Mobil.  Mobil Travel Guide 2008 Texas . Mobil Travel Guide, 2008.

94 http://www.ups.com/media/en/daily_rates.pdf

Print.4. Wills, Charles. A Historical Album of Texas . Millbrook Pr, 1995. Print.5. Cohen, David, Rick Smolan, and DK Publishing.  Texas 24/7. Dk Pub, 2004.

Print

6. Texas. 1st. New York: Random House Ltd., 2008. 107-108. Print.

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by-storm/11. Goldman, David. "G-20 summit:6 countriesin recovery."  CNN (2010): n. pag.

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12. istrategylabs.com/2009/01/2009-facebook-demographics-and-statistics-report-276-growth-in-35-54-year-old-users/

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perspective17. oberlin.edu/stupub/ocreview/2006/12/08/features/Understanding_Generation_Y.html18. quickfacts.census.gov/qfd/states/48000.html19. recenter.tamu.edu/pdf/1862.pdf20. rssweather.com/climate/Texas/Austin%20City/21. Texas State Data Center, 2008 Population Projections22. texasahead.org/economy/outlook.html 23. traffic.com/Austin-Traffic/Austin-Traffic-Map.html24. txcn.com/news/25. window.state.tx.us/finances/26. zipskinny.com

Vendors1. deuxlux.com/2. fashion4us.com/wholesale-fashion.action3. fashiondistrict.org/Search.html?tag=Handbags

4. yocowholesale.com/wholesale-womens-dress-j1254-pink-p-2901.htmlNewspaper

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Important1. ci.austin.tx.us/sbdp/retail-local-business.htm

Presentation Board1. http://www.utexas.edu/opa/pubs/facts/overview.php

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