Topic: Market Analysis

Order Description For my entrepreneur class, I need to write a business plan for the Snooze Store. I have done most of the parts of it (I attached the file), However, I need you to complete the market analysis of the company: Market Analysis –The market analysis breaks the industry into segments and zeros in on the specific segment (or target market) to which the firm will try to appeal. –Items to include in this section: •Market segmentation and target market selection. •Buyer behavior. •Competitor analysis. Snooze Store LLC. Mission Statement Snooze Store’s mission is to provide a place for busy individuals to nap during the work-day. The store offers different types of napping options to accommodate the diverse needs of the clients. Product/Service The Snooze Store help customers recharge so that they can be well-rested for the rest of their busy day. Every individual has different routines that help him/her nap. We offer different accommodations to take a nap, whether you are a minimalist who prefers a twin-size bed, or if you would rather doze off in a swaying hammock. We also offer alternative methods of sleep such as our sleep pods that allows you to float in a water bed. The client would make a reservation online for the accommodation of their choosing and for the desired time-slot. Target Market The target market for the Snooze Store is working professionals. The store will be located in an urban location. The metropolitan area makes it convenient for commuters or any individual running errands who does not have the convenience of returning home during the day. Why As both college students and working professionals a lot is expected of us. We wake up early for our 8 AM classes, then continue with our jobs and internships in the afternoon. We then study until late at night, while trying to maintain some social obligations. Our busy schedules contribute to lack of sleep, which consequently affects our health and our ability to perform with effort. The average American needs approximately 8 hours of sleep per night. However, 65% of the population is only getting six and a half hours. The Snooze Store provides the perfect environment to regain energy and focus, without disrupting our packed schedules. Now we can do what we truly love, and we can do it in full-force. Special Features Snooze Store offers different options for sleep enthusiast to achieve that perfect nap. Our very affordable standard options include memory foam beds, and hammocks. Our more premium services include meditation classes lead by our sleep specialist, curated soundtracks, and sleeping pods. BUSINESS PLAN PART I: Industry Analysis It’s pertinent for any new entrepreneur to identify not only the opportunities but also the challenges that lie within the industry of interest. Various models have been applied to perform data analysis including porter’s five forces model, which is very instrumental for strategic business management. Snooze Store is not an exception and an analysis of wellness hospitality industry is crucial before the onset of the business. It’s a wise way of scanning the industry alongside the potential market. Industry Analysis (Wellness Hospitality) According to McKenna (2014), the wellness hospitality sector has grown immensely over the period in an effort to make people more efficient in their day-to-day tasks. Companies have embraced the practice as very crucial to improving the productivity of their employees. Wellness is crucial for people who travel extensively and reduces chances of high blood pressure and obesity (Richards and Rundle, 2011). The international tourists are also potential participants. The wellness segment within the ambit of tourism is anticipated to grow to Market valued even higher than $675 Billion by 2017. It’s evident that there is a growing interest on wellness. Up to 70 M individuals in the United States have sleep problems, and this figure have risen from then (Natasha, 2007). For only nine months in 2007, the sales in sleeping meditations surpassed $3Billion. This presents a lucrative market. According to Rauch (2015) one of the key success factors is incorporation of tasty food at affordable cost alongside other wellness services offered in the industry. Offering online systems for space booking, reputation management, meditations, and social media marketing are also critical to propel the sales of a firm in the Industry. It’s with no doubt that the market for the wellness hospitality industry is enormously expanding each day and most of the hotels have embraced this fact as it comes with superior economic benefits. Snooze store has therefore a wide market base and only needs to embrace the key success factors as mentioned above to compete effectively with rivals in the market. PART II: Company Description The Snooze Store is a new, groundbreaking company that will provide customers with the opportunity to experience the “perfect nap” at any time of the day. The Snooze Store will provide a variety of products and services to facilitate rejuvenation and combat fatigue without disrupting customers’ packed schedules. Founded in September 2015, the Snooze Store will be located in Brickell, Miami. The firm was started in response to the high-levels of fatigue found in American society. For example, the average American requires approximately 8 hours of sleep per night. However, 65% of the population is only getting six and a half hours. As a result, the Snooze Store’s mission is to provide a safe and tranquil environment for busy individuals to nap during the day. The Snooze Store will provide a variety of services adapted to the various needs of its clientele. It will allow customers to recharge through many different types of accommodations. The Snooze Store will offer minimalist twin-sized beds as well as affordable swaying hammocks to nap on. In addition, it will have premium options including memory foam mattresses, sensory deprivation float tanks, and sleep meditation. Technology will be integrated to allow customers to make reservations online through their laptops or smartphones. Customers will be able to reserve time slots starting at 30 minutes in length. The Snooze Store will be entering the wellness hospitality industry. It will have a strong position in the industry due to its unique services. The Snooze Store will be the first location in Brickell, Miami to offer napping amenities. It will also offer sleep guided meditation workshops as well as mindfulness events, which will create a community focused on wellness and rejuvenation. Currently, the Snooze Store is in its early phases of development. The founders of the Snooze Store are Shira Cohen, Tova Trellevik, Eda Men and Leiroy Abueg. All four of the owners have ample business experience. Shira has worked extensively in management positions in the hospitality industry. Leiroy has a background in finance, as well as accounting. Tova has worked in management and has studied sleep meditation. In addition, Eda is a skilled accountant and product manager. Thus, the Snooze Store has excellent personnel. The Snooze Store is a Limited Liability Company. The Snooze Store will have high equipment costs to create the sleep chambers. Thus, the Snooze Store has a key partnership with a venture capitalist who will be providing working capital to offset the high fixed asset costs. The founders are currently negotiating with a landlord for a location and are also in contact with equipment manufacturers. Section VII: Design and Development Development Status and Task: The Snooze Store trademark is currently pending, and our logos and branding are finalized. We have licenses with established napping products with a company called Metronaps in New York as well as Gulf Coast Hyperbarics, Inc. in Lynn Haven, FL to provide higher end Hyperbaric chambers. The toughest task will be building a need and awareness for our services. There are multiple steps involved in developing the company that will be discussed in greater detail next. The first and toughest step is to generate a significant demand for our services. We will accomplish this by working with the National Institute of Health (NIH) to visit board members of various companies in the financial district of Brickell to discuss the importance of sleep. Since Leiroy has a background in finance, he has a rolodex of contacts, which will make it easy to arrange meetings with various companies. In our discussions, we will discuss how the Snooze Store is more beneficial than afternoon coffees or energy drinks. We will provide longitudinal studies ran by the NIH, which show the benefits of napping. These same studies were used to convince Google’s Board to incorporate sleep pods on their campus, which shows their understanding of sleep’s importance during the work-day. Once we convinced enough companies about the importance and need for naps in order to increase production, we will offer our services as a way to meet those needs. The next step is finding a prime location in Brickell so that various professionals can use our services--this is the main concern we hope to supplement through investors. We have mapped out the locations of our target companies and found a vacant space to rent that is near the epicenter of our target companies. This is important for us to secure this space because we see that it is the most convenient distance for all our potential clients. Once we secure our space, we will finance equipment to suffice three tiers of service we have to offer: (1) our higher-end hyperbaric chamber; (2) our sleep pods; (3) and our lower end platforms such as our memory foam beds, and cots. Our hyperbaric chamber will provide a state of the art sleep experience. This is meant to attract higher end customers, who we expect to initially only receive select few customers. For that reason, we will only finance one hyperbaric chamber for at least the first year. The main purpose of offering the higher end hyperbaric chamber is to attract customers back to the middle tier we have to offer. Our sleep pods are designed for comfort and were carefully developed by Metronaps--who we license the pods from. This tier is significantly more affordable than the hyperbaric chamber, but also provides enough of a lasting experience to entice customers to upgrade to this service rather than the lower end accommodations. If they do decide to select a cheaper tier, we still provide a great environment and ambiance to create a lasting impression of the Snooze Store experience. In addition to our sleep chamber equipment, we will also require on-site cleaning facilities. We must purchase an industrial washer and dryer. In addition, we must buy bedding for the chambers. We will get this from a wholesaler. We will also require sanitation supplies to ensure a hygienic facility. We will require an IT system that includes a secured high-speed wireless network, a desktop computer, and booking software that is integrated onto a smartphone application. We will use a POS system called Square, which includes payment through a tablet. After our business has settled and we have all our licensed equipment ready in operating, we will further create brand awareness through product expansion and merchandising. Our stores will offer sleep related products with our brand to gain exposure, as customers are seen with shirts, travel pillows, sleep-masks and other products with our logos. We also hope to expand to other services that assist in rest and relaxation. That includes, meditation classes, yoga classes, and curated sounds to help customers sleep better. Our development plan starts with awareness. We want to create an urgent need for our service, secure our location to operate, then finance the right equipment to follow through with our service promise. To keep from making this service a fad or trend, we will expand to our services and products to offer our customers other mediums to recharge. Section VIII: Operations The Snooze Store is located in Brickell, which is a neighborhood of greater Downtown Miami and is also South Florida’s major financial district. Brickell is a prime location for the store because of the community wealth and the rampant growth. The average household income is $103,421 and there are approximately 75,000 employees working in the Financial District. There are four different levels of napping accommodations. There are 10 basic cots, which are the cheapest accommodations offered. The next level are 10 memory foam queen mattresses. Next are 10 energy pods, which are being licensed from Metronaps. The energy pods are a reclined leather type-chair with timed waking capabilities. Lastly, the most expensive option is the one Hyperbaric chamber, which are manufactured by Gulf Coast Hyperbarics, Inc, a local company that delivers to our location in Brickell. The chambers allow users to breathe 100% oxygen, which has many health benefits. The cots and beds are manufactured in a factory conveniently located in Miami at a very low-cost price, and have been delivered to the Brickell location. There is a storage room located in the back of the store containing two extra beds of each type incase there is an issue. The other equipment used in the store, such as state of the art bedding and miscellaneous furniture is manufactured locally in Miami as well. The store can sustain thirty-one clients at once, making the environment intimate, yet highly profitable due to the location and the wide variety of accommodations. The business operates similar to a spa or wellness center. It is currently a single store, that is being rented. The store has front desk receptionists who answer phones, scheduled appointments and assist customers. Additionally, there are attendants that are specialized in the different types of accommodations offered. These attendants assist the customers before and after their naps and also ensure proper sanitation by cleaning the rooms after usage. There are also managers onsite. There are also sleep specialists, which instruct the customers on how to achieve the best rest. The store will have a marketing team to promote the business. Finally, there are maintenance employees to fix any technical problems that may occur due to the advanced technology used at the Snooze Store. Section IX: Management Team and Company Structure The Snooze Store was founded by Shira Cohen, Tova Trellevik, Eda Men and Leiroy Abueg. Each member owns an equal quarter of the limited liability company. The LLC will be structured as following: Shira Cohen is the manager and the three remaining founders are members. Leiroy Abueg is the financial manager. Tova Trellevik and Eda Men will focus on operations. Our management team has extensive experience and advanced education. Shira Cohen graduated from the University of Miami in 2010 with a Bachelor’s of Business Administration. She served as General Manager at the Ritz Carlton in South Beach. Thus, she gained extensive experience in the hospitality industry. She began as manager of the spa and thus is very familiar with the wellness hospitality industry. Leiroy Abueg graduated from the University of Southern California Marshall School of Business in 2008 with a Bachelor’s of Science in Finance and Accounting. He received a MBA in 2011 from the University of Miami. For the past three years he has worked at a hedge fund in Miami and thus has a wide network of connections in Miami. In addition, Tova Trellevik has a Bachelor’s of Arts in Economics and Religion from New York University. She is a certified yoga teacher and has been teaching sleep meditations for the past five years. She previously owned and managed a yoga studio in Connecticut. Last, Eda Men received a Bachelor’s of Science in Accounting degree in 2008. She has since become a registered CPA. Eda Men has worked as Product Manager at a large health-care company where she assisted with corporate wellness. The Snooze Store is not a corporation and will begin as a single retail location so a board of directors is not required. However, there will be a board of advisors. The advisory board consists of Christopher Lindholst, Jim McCarthy, Kiersten Mooney, and Dave Margolis. Christopher Lindholst is CEO of MetroNaps and is an expert on combatting fatigue in the workplace. Jim McCarthy is the president of Gulf Coast Hyperbarics. He is a professional engineer and develops Hyperbaric chambers. Kiersten Mooney is a yoga teacher and entrepreneur who has opened several yoga studios in South Florida. Dave Margolis is a long-time friend of Tova Trellevik and practicing lawyer who will provide legal advice. Section X: Overall Schedule The path towards the establishment of the enterprise has a number of steps with about ten major steps. First, the entrepreneurs must undertake a comprehensive SWOT analysis that will lay down the preliminary cost-benefit analysis that will in turn spell the tune for the investors. Such an analysis ought to be completed over a two-week period. Once this is complete, it is envisaged that the business venture has more pros as opposed to cons to the extent that a financial analysis may be undertaken. At this stage, effort goes into determining some of the expected expenses that require immediate attention to realize at least a soft opening for the venture. Cognizant of the critical nature of this process, the financial analysis ought to be undertaken over a period of about four weeks so as to ensure all the areas of finance are covered including pinning down potential sources of capital. Next, the entrepreneurs set to the business of incorporating the business. This activity involves the registration of all business identities such as logo, policies and certificate of registration. Here, care ought to be taken to ensure that all tenets of business details are covered to prevent any possible litigation on issues such as copyright. Such a process ought to be undertaken in a span of no more than four weeks. To form an LLC, Articles of Organization must be filed with the Florida Division of Corporations. These articles must include: the LLC’s name and address, the name address, and signature of the LLC’s registered agent; the names and address of the LLC’s members and the effective date of the LLC. Then, an operating agreement should be made, which will define the firm’s policies and procedures, including the member’s roles and terms for withdrawal and dissolution. With the registration of the business, management can proceed to contact Metronaps who will be responsible for the licensing of the sleeping pods. As such, it should take about four weeks for the complete acquisition of a prototype for product testing. Once the product is tried and tested, the entrepreneur ought to move to obtain critical financing for the remaining tasks. Here, funds are needed for not only the inventory, but also securing a business location as well as marketing. Ergo, the activity will take about eight weeks for completion. Having secured the necessary funding, the next task is to secure a business location in which case Brickell has been chosen for the venture due to its convenience. The activity ought to take about two weeks for completion. As the venture now has both location and prototype, management will then move towards creating brand awareness for an initial period of about four weeks where the much needed hype is created. Concurrently, the activity will run parallel to the acquisition of inventory in preparation for a soft opening. As mentioned earlier, the inventory will be in the form of one hyperbaric chamber for at least the first year. Lastly, once the concept has been tested in a soft opening, the venture will be effectively launched twenty-eight weeks after conception of the idea.