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The

Little
Llama
Business Plan
Chelsea Irwin, Taylor Hilton, Kaylee Horner
Table of Contents

Introduction..................................................3
Industry Segment Analysis...........................4
Target Market Analysis..................................9
Competitor Analysis....................................18
Triple Bottom Line.......................................29
Merchandise Assortment............................34
Marketing Plan.............................................49
Visual Merchandising Plan..........................65
Branding......................................................77
References...................................................83
Introduction to the Report

In January, our group was assigned the task of creating a theoretical retail store that
would open in Manhattan, KS. Over the course of the semester, we considered many factors
and conducted research using knowledge we’ve gained over our college career. We had to
consider our target market’s needs, forecasted trends, and strategies to properly market and
attract the customer we wanted.

We researched retail options in Manhattan and saw a lack in the availability of


clothing for children. Then, we identified who we wanted to shop at our store, their
behaviors, and how they like to do their shopping. Next, we considered the three largest
competitors in the childrenswear market and used their information to identify how we could
keep a competitive advantage. Sustainability is something that is important to not only our
group, but the Earth as a whole. So, we outlined five strategies for sustainability that we felt
were best suited for our store to tackle.

Next, we looked at how our target market would dress and chose a WGSN forecast to
model our merchandise assortment after. From there, we chose marketing strategies to get
our name and aesthetic out. Finally, we created a visual merchandising plan to help promote
our merchandise in the store.

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Industry
Segment
Report
Introduction
Despite national birth rates being at an all-time low (Matthews, 2017), a growth of 6%
is expected of the childrenswear market by 2020 (Global Children’s Wear Market, 2015). As the
demand for the market grows, there continues to be a lack of retailers in Manhattan, Kansas
that provide childrenswear, much less unique childrenswear. Consequently, the few chain
stores in Manhattan that dominate the childrenswear market in town provide the same
general merchandise one can find all over the country. Manhattan has a need for more
childrenswear options to keep taxpayer money local and to give parents more affordable
options to dress their children for a reasonable price.

Overview
For our retail concept, we have decided to focus on the lack of options for
childrenswear in the Manhattan area. Our store, The Little Llama, will focus on the
Generation X grandparents and Millennial parents buying clothing for their children ages 0-8
at a moderate price point. In a survey we conducted, Manhattan parents prefer to spend less
than $150 on clothes for their children in a single shopping trip. After finding this data, we
decided we needed to find a way to keep our prices affordable while maintaining product
quality. Children, especially newborns, grow out of clothes within six months (Brophy, 2017).
In most cases, parents do not want to spend that much on baby clothes since it is only worn
for a few months.

Nationally, the childrenswear market is mostly comprised of large corporations such


as various discount retailers like Target and retail brands such as Carters, The Children’s
Place, and OshKosh. These large retailers are the leaders in the childrenswear market are
places where our target market will likely shop at. Our store’s goal is to offer family
experiences while shopping, unique clothing, and to get customers the best price for their
goods. In order to reach consumers beyond Manhattan, we will market ourselves on social
media as well as sell our products through e-commerce to support the brick and mortar
location.

Market Demands
Global Industry Analysts, Inc. forecasts growth for the global market of childrenswear
to reach $321.6 billion by 2024. The increase is driven by factors such as the increase of
technology that exposes more children to the media, our society’s desire to have material
things and a lot of them (Global Childrenswear Market 2016-2020, 2015). As parents start
having kids later in life and are more established in their careers, families have more
disposable income and are willing to spend impulsively. Millennial parents are choosing to
integrate their children into their lives more and more every day, which in turn increases the
role of children in parents purchasing decisions (Millennial Parents, 2017). Seeing
childrenswear industry forecasts are encouraging not just for Manhattan, but as a whole
country. Our choice to open a children’s store in Manhattan shows promise as we look at
spending patterns for childrenswear, as well as the increased desire and need for quality

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products. Presently, there is a demand for childrenswear that will only continue to increase in
the near future in the United States and Manhattan, KS.

We are also seeing a trend of women waiting to have children later in life, and we
believe this will greatly affect our market demands. According to Rae Ellen Bichell from NPR,
the main force pulling the average age to the older end of the spectrum is a decrease in the
number of teen pregnancies. Over the past 15 years, the proportion of first-time mothers
younger than 20 years old dropped from 23 percent to 13 percent (Bichell, 2016). With our
children’s store in mind, we are wanting to connect with our target market and the age of
these older women that are having children. We also need to keep this in mind for our buying,
marketing, and public relations strategies for our store. With older age, there comes a higher
household income and more disposable income to spend on clothing and other items for
yourself or others. According to the United States Census Bureau, the top three areas in
Manhattan with the highest income were Manhattan, Westmoreland, and St. George
(“American Fact Finder”, 2010). These three areas will be our main focus for the target market
for new mothers and childrenswear.

Business Trends
As more and more Millennials become parents, there has been a rise in a parenting
style that allows children to be engaged in their parent’s lives at all times. With this,
Millennials are looking to purchase lifestyle clothing for their children that resembles their
own. In recent years, Millennial parents have been seeking experiences that include their
children, whether that be shopping while the child plays in an in-store play area, family
friendly restaurants, or by working in an environment that allows them to work with their
children near (Millennial Parents, 2017). As children become more integrated into their
parent’s lives, so do their clothing options, which, with help from social media, brings out the
“mini-me” trend. Studies have found “functional, yet trendy” pieces have become
increasingly popular for kids thanks to social media and Millennial parents (Bickerton, 2017).

Consumers placing a value on experiences are not limited to parents wanting to


integrate their lives with their children. As a society, there has been a shift from spending
money on quality items to spending money on experiences. Researchers have found that
people are seeking meaning and emotion, which drives attention (McDermott, 2017). The
emphasis on experience gives us an opportunity to set aside an area in our store for
experiences such as a play area, special events, or classes that could bring in consumers who
are not only wanting to shop, but also wanting to spend time with their children and make
family memories. Companies will have to start making a connection with their customers and
their values in order to keep customer retention up (McDermott, 2017). Putting the focus on
the experience consumers are having when they enter our store will continue to bring them
back and allow them to leave with special memories they will remember for a lifetime.

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Social movements in the last year, have brought more gender fluidity to fashion than
ever before. More and more companies are striving to make clothing lines that are unisex to
be inclusive of everyone. As gender-neutral clothing has been on the rise for adults and the
mini-me trend grows, unisex clothing has finally found its way to childrenswear. Companies
are focusing more on self-expression through fashion rather than traditional gender roles.
This trend is not meant to take the place of girl’s and boy’s clothing, but to be offered
alongside it. Gender-neutral fashion is meant to offer children choices and to allow everyone
to feel included. However, for families that have boys and girls, gender-neutral lines allow
more clothing to be passed down between siblings, thus allowing parents to spend less
money on their kids and set back more for experiences. Several celebrities are backing this
trend, such as Russell Westbrook and Aleali May who have both recently released unisex
clothing and shoe lines respectively (Jensen, 2017). Once known for excluding women,
streetwear has become heavily influenced by unisex fashion lines and funnels to
childrenswear.

With the integrated lifestyle between parent and child in combination with a
movement of free choice, practicality, and gender-neutrality, there are many directions one
could take in a childrenswear company. Building a store that caters to the experiences
parents want to have with their children and still allows them to shop for the clothing they
need, is a recipe for success in Manhattan as long as we focus on the needs of our target
market.

Players of the Industry Segment


There are several companies in the industry that are making headway in the
childrenswear market. Some major players include Gymboree, Children’s Place, Carter’s, and
H&M. Big corporations like these offer great prices and a wide range of essential
childrenswear pieces. Even though the major corporations and designers rule the segment,
several smaller companies are also relevant to the industry. These businesses include
Maisonette, Little Trendsetters, and Lenny Lemons. Advantages of these types of e-commerce
are the unique offerings, the convenience of being able to order from home, and the variety
of clothing available for both girls and boys. John Lewis, a designer from the United Kingdom,
is an industry player in terms of gender neutral childrenswear. He removed genders from the
labels of his clothes and inspired other companies like Target to press forward and design a
children’s unisex line (Jensen, 2017).

Conclusion
Our group feels there is a lack of locations in Manhattan that families can shop at for
the children in their life. As women wait later to have children and baby boomer
grandparents have more spending power, families have more disposable income to spend on
childrenswear. This leads us to believe Manhattan would be able to sustain a store that
specializes in trendy childrenswear at a moderate price point. Creating a store that gives

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families’ experiences and not meant to just shop at, would support the growing trend of
parents integrating children into all aspects of parent’s lives.

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Target
Market
Analysis
Introduction
Our goal is to open The Little Llama, a children’s clothing store in Manhattan, KS that will
offer childrenswear to Manhattan and surrounding communities at a moderate price point.
We are targeting Millennial parents and Baby Boomer grandparents who will be making a
majority of purchase decisions in our stores. To determine

Demographics
Sex
Primarily, we expect mothers to be the ones shopping for childrenswear in Manhattan.
Females between the ages of 23 and 42 makeup 25.5% of the population in Manhattan
(“American FactFinder”, n.d.). These women are the primary targets because they most likely
have families. Nationally, the average age for a woman to give birth has gone up in recent
years according to Rae Bichell. In 2014, the average age for a woman to give birth was 26.3.
With that birth age and our targeted range in Manhattan, it is safe to say that most of these
women are mothers of children within our stores size range.

Generational Cohort
Besides the parents, we expect to have Baby Boomer grandparents come in and shop
for their grandchildren. Those grandchildren have Millennial and Generation X parents, who
will be our high priority target market. Between these two generations, we will have to learn
to run The Little Llama in a way that both generations will be satisfied with their service.

We want to look at Baby Boomers for an idea of a potential target market. As time
goes on, at least 30% of grandparents wish to retire within a mile or two away from their
grandchildren (Garages and Grandkids, 2017). To please both markets, we will have to ensure
our customer service is top notch. Baby Boomers have a tendency to be more demanding in a
retail environment. These customers would like to feel appreciated and are more likely to
“write off a retailer if a sales associate did not appreciate their business, if a store was messy
and if returns were a hassle (Wilson, 2017). Similarly, millennials also would like to feel like
retailers came about them and the experience they are having (Conley, n.d.). Conveniently,
84% of Baby Boomers prefer an in-store shopping experience rather than attempting to order
online, unlike their Millennial children (Wilson, 2017).

Those born on the later end of Generation X are also included in our target market.
Generation X consumers are known for favoring shopping online, rather than in a physical
location (Wroblewski, 2018). They spend time researching large purchases and ensuring they
have made the proper decision and have all the information they need (Wroblewski, 2018).
Considering we will own a small business with no e-commerce option, we will have to ensure
that our social media and store displays educate those Generation Xers (Wroblewski, 2018).
Our Generation X consumers need businesses to be reliable and consistent. They enjoy
family-friendly environments where they feel welcomed and like they can trust the business.

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Millennial parents also tend to be more price conscious than Baby Boomers. These
parents look at focusing on price before deciding to make a purchase, rather than looking at
the quality (Fromm, n.d.). Millennials are a generation with a growing passion towards social
responsibility and 50% of millennials try to buy products that support causes or charities.
Purchases like this make consumers feel better about themselves and will help empower
them to make better choices. Millennials also prefer to shop at big box retailers, much like
those who we surveyed for our research and they search more for affordability (Conley, n.d.).
The older moms in this category are responsible for 80% of shopping for their household
compared to 59% of younger consumers. Because of those statistics, it strengthens the
reasoning we had to making these moms the focus of our target market.

Social Class & Annual Income


Manhattan is a diverse location in terms of people and how they shop. For example,
on the east side of town, the average family has a median income $66,738 (“American
FactFinder”, n.d.). Having an income at that level puts the 66502 citizens in the lower-middle
class. Head on over to the west side of town and the average income for 66503 is $97,765,
placing those in that side of town in the upper-middle class (“American FactFinder”, n.d.).
Considering our population’s income, it would make sense to price our merchandise in a way
that will not hurt group.

Marital and Child Status


Depending on which side of Manhattan one is looking at, there are slight difference in
population statistics for the two zip codes. Of all the households in the 66502 area, 20.2% are
family households with one of more children compared to 29.9% of the families in 66503
having at least one child (“American FactFinder”, n.d.). According to data from the U.S.
Census, both zip codes had about 6% of children growing up in single parent housing. Those
who are married most likely have a counterpart who also works, providing the family with
more disposable income than those who are raising children in a single parent household.
Given these statistics are almost ten years old, these numbers could full well be fluctuated by
now.

In Manhattan, there are 6,309 children under the age of nine between the two zip codes.
Through research on the Claritas, My Best Segments, we found that a majority of Manhattan,
Fort Riley, and surrounding areas are primarily family households. This leads us to believe
that along with the lack of options for childrenswear in Manhattan, a business like ours could
do well in this area.

Education
Education levels of consumers in Manhattan show that not many went on to pursue
higher education. In Riley County, 95.6% of the population has obtained a high school
diploma, while 46% had a bachelor’s degree, which makes Riley County educated than the
U.S. average (“American FactFinder”, n.d.). Of adults that are between 25-34 years old, 96.5%

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have graduated high school and 47.8% have obtained higher education (“American
FactFinder”, n.d.). This lets us know that our over half target market may not have the
education level to get them a job that gives them a lot of disposable income. However, those
that are well-educated professionals most likely have the means to spend a little income on
clothing for their kids.

Occupation
In Manhattan, there are a variety of businesses that bring many different
opportunities in different industries to people. Thanks to Kansas State University, USD 383,
and other higher education facilities in Manhattan, the most common occupation in the city
is within educational services (Manhattan, KS, n.d.). According to Data USA, many consumers
in the area also work in administration, sales, or management. With new businesses coming
into town in the next few years, growth in these industries is expected. Another large
occupation that many in the Manhattan area hold is an involvement in the military. Fort Riley
is a nearby military base that brings in families often and they have nowhere else to shop
besides Manhattan. As population rises and people move into town, they will bring their
families, which will grow our customer base and drive the need for our store.

Behavioristic Characteristics
Shopping Patterns
We distributed a survey to sixteen parents in the Manhattan area to gain a better
understanding of consumer shopping patterns. Considering Manhattan does not have a large
selection of children’s clothing, we were not surprised to find that a majority of respondents
(73.3%) travel to Topeka or Kansas City to shop for their children. Of those that travel to shop,
only 38.5% of those visit Topeka, as the remaining 61.5% travel to the closest metro area,
Kansas City where there are numerous options for shopping. These shoppers are frequently
going on these shopping trips for their kids, 80% go as often as every month to four months.
The frequency was to be expected considering the rate children grow, only one consumer
said they went every five to six months. This leads us to believe that consumers in the
Manhattan area tend to be planned shoppers, the frequency is too low to classify the
customer base as impulsive shoppers. Mothers especially tend to be more frugal than other
consumers, which leads to creating budgets and planned times for shopping excursions
(Conley, n.d.). They know what they are looking for when shopping and what to consider
before putting money down on their growing children’s clothes.

What Is Important
Through our research, we found consumers in our target market tend to shop based
on how often their children will wear the garment, how it fits, but there was a drop when it
came to how sustainable the item was.

Since there is a high turnover in the life of childrenswear, our consumers are
extremely concerned with how often their child will wear their clothing before buying, with

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76.6% saying that it was the most important thing. Children seem to grow overnight,
therefore they go through clothing faster than older people. Parents want to be sure their
child can wear the clothing for as long as they can, as well as make sure their child will
actually wear it more than a few times before growing out of it. How a garment fits is also
extremely important to 46.6% of our consumers. If an item is even slightly too small, the child
will more than likely outgrow it within the month. In addition to that, ill-fitting garments can
be uncomfortable, and parents do not want to dress their children in clothing they will
constantly be messing with. This means our store will have to provide practical items and
basics that will go with everything to allow parents to have the versatility they want to have a
garment go with multiple outfits as well as a variety of sizes and cuts that are perfect for
adjusting to different body types.

Given the information, it is obvious that shopping environmentally friendly is factored


into purchase decisions in Manhattan. This could be linked to the lack of education about
sustainability in the Midwest or could it come from the potential of a sustainable products
being more expensive? On average, 64% of Millennial parents are more concerned about the
environment since having children (Fromm, n.d.). However, when looking at consumers in
Manhattan a mere 15.38% take the environment into consideration when making a purchase.

The Price Conscious Consumer


Of the surveyed consumers in Manhattan, only 33.3% spend more than $150 on their
children’s clothes. Considering Manhattan and its surrounding towns are low-income areas
and mothers in general tending to be more conscious of their spending, it was no surprise a
majority of our consumers spend $100 or less on their children. Of those we surveyed, 20%
spent less than $50, 26.6% spent between 50% and 75%, and 20% spend between $75 and
$100. Purchasing products like outerwear and denim gives our surveyed families a reason to
splurge on a product. Outerwear and denim are typically items that consumers want to be a
better quality because they usually experience the most wear and tear.

A problem we will have to combat will be our consumer’s reluctance to shop at a


boutique rather than a chain store. Reasons our consumers had for choosing chain stores
ranged from having a brand preference, easier due to being able to shop other categories at
the same time, and the opportunity to order online if the store does not have the size or style
they want. The biggest concern was the tendency independent stores have to price items
with a higher markup. Out of the nine responses for the question, seven consumers
mentioned chain stores tend to be cheaper and they want to shop cheap. In order for our
store to succeed, we will have to price garments at a reasonable price point and implement a
system that would allow us to have access to other sizes or styles of items we carry to make
the shopping experience easier for consumers, as well as provide specialized services to
customers.

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Opportunity for E-Commerce
Despite the fact e-commerce sales account for 8.8% of all retail purchases in the
United States and 79% of shoppers make purchases online (Kanapi, 2017), only a mere 15.7%
of respondents utilize shopping online as a means of purchasing clothing for kids. As e-
commerce gains popularity, it is speculated this number has potential to grow exponentially
in the future. The gap in the number of respondents versus the national average is large,
however, considering 46.6% of those parents take fit into account when making purchasing
decisions, the choice to shop in a brick and mortar store is justified. When one is unsure of
how a garment will fit their child, it is easier to just visit the actual location to see and feel it,
rather than order and have to possibly return it.

PRIZM Classification and Description


We looked at PRIZM classifications for Manhattan, KS and the surrounding areas, then
chose those who represented our target market. We found our top three to target would be,
Kid Country, USA, Up-and-Comers, and Upward Bound.

Consumers in Kid Country, USA have a midscale level income at about $58,000 while
working service mix jobs, at a college graduate education level ("2018 Claritas PRIZM Premier
Segmentation System", 2018). This group has the closest annual income level to the average
Riley county income at $46,609 (“American FactFinder”, 2018). This segment consists of a
household with mostly children, with some of them being homeowners in a town setting.
("2018 Claritas PRIZM Premier Segmentation System", 2018). Some lifestyle choices that
those in Kid Country, USA make are an interest in following college baseball, owning a GMC,
eating at Logan’s Roadhouse, and going on vacations to the Bahamas ("2018 Claritas PRIZM
Premier Segmentation System", 2018). This segment group would shop at our boutique for
gifts for friends and family and would and would probably drift towards discounted items.

The next group that is classified is Up-and-Comers. This group has an upper middle-
income level at only $65,200 a year, while having a mix of management and professional
employment with attaining a college degree ("2018 Claritas PRIZM Premier Segmentation
System", 2018). Up-and-Comers have families with children located in a metro mix. ("2018
Claritas PRIZM Premier Segmentation System", 2018). This segmentation owns a Volkswagen
and watch ESPN classic in their free time. This consumer most likely shops at Gap Kids and
follows college hockey ("2018 Claritas PRIZM Premier Segmentation System", 2018). With the
income level that this segment group is at, they will be shopping at our boutique for their
children and will be a great source of word of mouth for their family and friends to shop at
The Little Llama.

The final segment we will be focusing on is Upward Bound. They are an upscale
income level with an average annual income of $80,000 and most likely have a college level
education that allows them to hold a management or professional career ("2018 Claritas
PRIZM Premier Segmentation System", 2018). This would target homeowners in a metro mix,

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with a mixed family, aging from 25-44 years old ("2018 Claritas PRIZM Premier Segmentation
System", 2018). This fits in well with 34.3% of Manhattan’s population fitting into this age
range (“American FactFinder”, n.d.). Some lifestyle characteristics that would describe them
would be own a Mitsubishi, eats at Qdoba, and likes to shop at Express ("2018 Claritas PRIZM
Premier Segmentation System", 2018). This segment group would also be regular shoppers at
our boutique with having a growing family and wanting to have stylish clothing for every
member of the family.

We feel that these segments represent our consumer base in Manhattan and
surrounding areas. They have a similar income and lifestyle for the people in the community,
that our business will be located in. Even though these groups have a higher income than the
surrounding areas, we know this store will be an appealing and bring in customers with
similar values as ours.

Psychographics can be defined by the attributes, personality values, and interests that
a people group share. In the Midwest, and more specifically Manhattan, KS, we see attributes
as loyal, kind hearted, and family oriented. When it comes to personality, we know to be true
is that people are friendly, laid back, and are welcoming to others. Values are shaped by
having Fort Riley and Kansas State University in the Manhattan area. Having values that are
surrounded by education, family, religion, and love for country is what shapes Manhattan
and will be for years to come. Having an understanding of these will be key for us to relate to
them when speaking to them, understanding their wants and needs for childrenswear and
overall being a successful business in Manhattan.

Hobbies and interests of those in Manhattan range from sports and wellness, hunting,
religion, and listening to country music. Manhattan is known for being an agricultural focused
city with the amount of research and development the university puts in to it. Consumers
enjoy family time and making time count with those who are closest to them.

The lifestyle of those in Manhattan tend to drift towards being laid back and relaxed,
as well as attempting to live a healthy, well-rounded life. Manhattan is an area where there
are many locations for wellness and recreational activities. These range from parks, sports
fields, health food restaurants, and other recreational locations like Wildcat Creek Fun and
Fitness.

Consumers also tend to place an importance on supporting college athletics, thanks


to Kansas State University. Being in a college town with a loyal alumni base, this comes as no
surprise. Much like the consumers we focused on, the Up-and-Comers and Kid Country, USA,
consumers in Manhattan consider college athletics to be a big deal.

VALS Classification and Description

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We asked a group of participants to complete the VALS survey for research on
psychographic data. The majority of these participants fell into the innovator group.
Innovators are observant and always trying to absorb new information (“Innovators”, 2018).
This group also tends to make the largest number of financial transactions out of all the VALS
classification groups. This is most likely due to these consumers do the bulk of the buying for
their households. We will have to be mindful of their skeptic attitudes towards
advertisements (“Innovators”, 2018). As a company we need to make sure we advertise in a
minimalistic way to please this group and not to turn them off from our store.

Our next highest VALS group were the achievers. This group places a high priority in
putting their family and jobs first. They have the mindset of “me first, my family first”
(“Achievers”, 2018). This means they will do whatever is necessary to help their families grow
and achieve. Achievers believe that “money is a sign of authority” and might care more about
a brand’s reputation in order to show off their money. According to the VALS type
descriptions, achievers “value technology as a productivity boost”. This might entail that this
type of consumer will do their research on our store before coming in and shopping.
Achievers tend to stick to the status quo and are uncomfortable with straying away from
what they are accustomed too.

Lastly, our final group we decided to focus on were the thinkers. Some key
characteristics of this group is that they “plan, research, and consider before they act”. This
will play a huge influence of how they go about the buying process. VALS says consumers in
this group are financially established and we can tell this by adults waiting to have children
later in life, which allows them to focus on their careers first. Thinkers are not influenced by
fads and trends; these things will not phase this type of consumer. To help them in their
product research “they use technology in functional ways”. This tactic helps them learn
about all the brands, so they can find what best suits their needs. Lastly, they will “buy
proven products”, these are the types of consumers that reads the reviews and care about
what other consumers had to say about a particular product. (“Thinkers”, 2018).

As a business it is important to learn what types of consumers you will be doing


business with. Each classification group reacts different to certain situations and certain
spending patterns. As a children’s boutique we want to appeal to all potential customers.
Which we know we can arise to the challenge.

Location
We have selected 406 Poyntz Avenue, as the location for our retail store. Situated in
the heart of downtown Manhattan, Poyntz Avenue is a high-traffic area for retail and
entertainment in Manhattan. Our location is just blocks away from restaurants, the mall,
local specialty retailers, and other family-friendly businesses. The space of 3,375 square feet
is perfect for a versatile retail space with all that surrounds it (406 Poyntz Ave, n.d.). The floor
plan will allow us to create different experiences in different spaces and possibly utilize an

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area as an event space. With its hardwood floors and open spaces, there will be plenty of
room for us to spread racks out in order to make maneuvering around the store with a
stroller easy.

Manhattan draws in retail foot traffic from all over Riley, Clay, and Pottawatomie
counties, due to the lack of shopping in those areas (“Star Bond Feasibility & Market Study”,
2006). Poyntz Avenue benefits from its proximity to the mall and other large retailers such as
Dick’s Sporting Goods, Best Buy, and Wal-Mart (“Star Bond Feasibility & Market Study”, 2006).
Our business will benefit by being within minutes of these locations, as well as the smaller
businesses that occupy Poyntz store fronts. In 2005, a study for a downtown Manhattan
revitalization found there was a $768,282 demand for childrenswear in the area that was not
being met. Although this statistic is thirteen years old, the population in Manhattan has risen
by about 5,000 residents which suggests that demand has only grown since then (“American
FactFinder”, n.d.). All things considered, we believe this location on Poyntz will be the best
option in Manhattan for our childrenswear store and The Little Llama to thrive.

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Competitor
Analysis
Introduction
When trying to open a childrenswear retail store in Manhattan, KS, we must keep in
mind our competitors and the needs of the demographic we are targeting. Our customers are
seeking unique, decently prices apparel for their children that cannot be found in a chain
store. They want fun, playful basics that can be worn for play or casual. We will try to
encompass all aspects of our customers’ wants and needs. In order to determine what we
must do to compete, we chose three retailers in the area we would be most competitive with.

Competitor Analysis
In order to find our top competitors, we analyzed the options available in Manhattan
and selected three companies we believe to be the top childrenswear retailers. The three
companies we identified as our strongest competitors were Target, The Children’s Place, and
Michael + Madge. Choosing these three competitors gives us a variety of pros and cons to look
at with each retailer so we are able to capitalize on their faults and compete.

Target
Overview
Target is a national retailer with over 1,800 stores in the U.S. and have a large online
presence. Striving to be an “upscale discount retailer that provides high-quality, on-trend
merchandise at an attractive price in clean, spacious, and guest-friendly,” shopping at Target
creates an experience for consumers through their displays, in-store concession stands, and
merchandise (Corporate Fact Sheet, n.d.).

Since Target is a well-known company, they have several competitive advantages.


First, there are many locations throughout the country giving consumers a familiar place to
shop if travelling or in a new location. Target customers exemplify a strong brand loyalty and
usually shop at few other places besides Target. Secondly, they offer fairly good quality
merchandise for a discount price point and have a wide breadth of item for people to shop.
Making Target a one-stop shop for everything from clothing to home goods to groceries to
beauty supplies and more.

Market Profile
The average age for a Target consumer is 40 years old, with an average yearly income
of $64K (Corporate Fact Sheet, n.d.). This consumer more than likely has a family and could
either work or be a stay-at-home parent. Currently, Target holds a 2.08% market share; for
comparison, Wal-Mart holds a 14.09% market share. However, Target is a slightly more
expensive than Wal-Mart and doesn’t have as many locations and they cater to two different
markets. (Corporate Fact Sheet, n.d.)

Target consumers have a high sense of brand awareness and a strong brand loyalty.
Target offers well-known brands, as well as private labels for their clothing departments.
Target also offers great customer service dealing with returns and exchanges. It also helps

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that they have their Target Red Card. For Target’s marketing strategies they like to be known
as a cheap and chic option for consumers. Target’s new head of marketing media, Rick
Gomez is striving to put new strategies in place to increase sales and awareness, such as
creating a swimsuit campaign and not using Photoshop on their models (Corporate Fact
Sheet, n.d.). Consumers love this because they feel like they can relate to it and are more
likely to buy swimwear. Target hopes this new marketing approach, it will hopefully reach a
wider range of consumers, specifically those of a younger age about to start a family.

Product/Service Profile
Target offers numerous products and offers just about everything you need. Target
does also offer a handful of services. Offering products, furniture, and even a baby registry for
others to help with the upcoming new arrival of their friends and families new babies. They
offer everything from clothing, shoes, bottles, diapers, and so much more. Target has a high
breadth of products in stores and a deep selection. Target offers competitive prices for their
customers, because of their discount price point. They must offer this type of pricing in order
to keep up with their competitors.

Target offers two main ways for customers to save money. First, is the Red Card. The Target
Red Card is a credit card that gives customers a 5% discount with every use. If one doesn’t
want to commit to a card, customers can save by using the Cartwheel app on their phones.
Using this app allows customers to scan their item and the app will tell them if there is any
available savings on said item. At checkout, the cashier will scan the barcode and all
qualifying coupons will be applied and customers can redeem their savings once they
accumulate so many. They also offer coupons in their weekly ads in the Sunday paper for
those who aren’t so technologically savvy.

Target offers two methods of distribution for their customers, e-commerce and brick and
mortar. Shopping online can give customers a little bit more of an assortment. However, the
selection should be pretty close to what you find in stores. Along with e-commerce, you have
the choice to ship your items to the store and this will allow you to save money on shipping to
your home.

Marketing Strategies
Target advertises online, weekly newspaper ads, and TV commercials. They also rely
and the strong loyalty of their fans. Target’s overall advertising themes have a catchy, feel-
good vibe that really gets the consumers attention. On their social media accounts, Target
will do a lot of announcements for their consumers on it. Such as partnering with celebrities
or having a new line being released to stores. Target has several different divisions of their
Instagram; accounts for style, to teachers, and to giving back to their communities. So, the
consumer is really able to focus in on what content they want to see.

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Environmentally and Socially Responsible Business Practices
Target is a company focuses on being sustainable involving in the communities where
they are located. As stated under Target corporate responsibility page, “we believe that
together we’re designing a better tomorrow today. Target will lead the way by designing for
more value, positive impact and healthy, vibrant communities.” (Corporate Fact Sheet, n.d.).
This shows Target wants the best for those around them, even if they are people that doesn’t
shop at Target. Target is aware that they must treat their consumers like family because they
are the one shopping in the store and spending money there. One way they try and be more
environmentally friends is offer customers eco-friendly bags to put their purchases in. Target
tries to have the best conditions for their workers, staff, and customers.

The Children’s Place


Overview
According to Thomson Gale from Encyclopedia.com, The Children’s Place is a publicly
owned American specialty store for children’s apparel and accessories with stores all across
the country including Manhattan, KS. The Children’s Place is a leading competitor in
childrenswear due to the volume of stores, depth of the product, and their loyal customer
base (Gale, T., n.d.). The Children’s Place is primarily located in malls and opens new stores
throughout the country, primarily in the Midwest. According to their corporate website, The
Children’s Place’s company perspective is that “as a growing retailer of clothing and
accessories for kids, we provide our customers a high-quality, focused merchandise selection
at prices that represent a substantial value relative to our competitors. Current fashion
trends in a broad color palette are offered as coordinated outfits specifically designed for
children.”

The Children’s Place is a well-established North American company and has had a
history of success within the childrenswear industry over the years. According to The
Children’s Place Company Profile, The Children’s Place has roughly 960 stores in the U.S., as
well as 135 stores in Canada. Having locations all across the United States and Canada has
reached not only millions of people just by their brick and mortar store and they also have a
large online presence. The depth and breadth of their products is large and having sizes go
from newborn to size 16 is an advantage for the brand. With this brand having this history of
success with families, this brand will be difficult to compete with when it comes to brand
loyalty in Manhattan, KS.

Market Profile
The Children’s Place targets low income to middle class consumers for their online
site and their brick and mortar stores. They offer discount codes and sales throughout the
year and encourage customers to own a “My Place Rewards Credit Card” for more savings
and rewards when purchasing at The Children’s Place. By offering different styles for boys
and girls, The Children’s Place offers clothing that would appeal to many different types of
people.

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The Children’s Place has been under fire recently through their customer service and
within upper management in their company that has been taking time to reevaluate their
market share over the last twelve months. Grace L. Williams from Forbes said, “President and
CEO Jane Elfers said the results point to the company’s strategic growth initiatives, which
include superior product, business transformation through technology, global growth
through alternate channels of distribution and fleet optimization.” The Children’s Place is still
navigating the market of children’s apparel and are wanting to become the best they can for
years to come.

The Children’s Place has been in business science in 1989 and have had a mass
following. From their inexpensive children’s clothing to their stores that are wildly popular
they are a brand that is well known and often shopped at. The Children’s Place uses social
media as a platform for marketing and brand awareness for their customers, so they can stay
up to date on new arrivals and sales for the brand. Overall, The Children’s Place has loyal
customers that have been returning to The Children’s Place for years and don’t plan on
stopping until their kids grow out of it.

The Children’s Place has several platforms that they use for marketing strategies. They
use social media to promote their product and inform customers of sales and new trends that
are coming up. This is a way to reach people all over the world that might not have a
Children’s Place near them. Catalogs and seasonal magazines are mailed out to customers
for promotions and marketing strategies. Lastly, you can sign up for emails that The
Children’s Place will send you that will alert you to sales, promotional, and new product that
will be in store and online. Overall, The Children’s Place uses several platforms to educate
and inform customers about product in hopes to make more sales.

Product/Service Profile
The Children’s Place has a wide variety of clothing for both boys and girls in every
category from clothing, accessories, and shoes. With only focusing on childrenswear, they
focus on producing many categories of clothing as possible. From sleepwear, outerwear,
pants, tops, and more, The Children’s Place has the depth of these products in many different
colors, styles, and patterns for many different sizes and ages for children. The Children’s
Place primarily only sells clothing and accessories and does not offer any other services other
than free shipping for their website for customers.

The Children’s Place Prices their merchandise at low cost and affordable prices.
Pricing merchandise for childrenswear can be difficult because customers are aware that
children are growing and will grow out of their clothing within months of buying. The
Children’s Place is aware of this and pricing their product in a way that people feel
comfortable buying their product for their growing children. Pricing strategies for The
Children’s Place is pricing it low and affordable with sales that go on all year round. Providing

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coupons through social media, email advertising, and mail The Children’s Place makes it a
point to give their customers the best price for their children’s apparel.

The Children’s Place has two main channels of distribution, e-commerce and their
brick and mortar stores thought North America. Having a strong presence internationally is
key to their success in staying open in the future. Customers are expecting to have both
options when shopping so that they can do their shopping in person and online. Having both
be strong options for The Children’s Place is not only necessary for sales but it is necessary to
stay relevant within the retail environment for the company to thrive in.

Marketing Strategies
The Children’s Place offers many promotions during holiday season and all year for
their new products and sales. Promoting through online ads, in store advertising, social
media, and direct emails, The Children’s Place has a plan on how they will draw customers to
their website and store. Promoting sales is key for increasing sales and customers being
happy with their product is what they aim for. Having their customers be educated on what is
new and on sale at The Children’s Place is how to stay relevant in the industry and also
keeping your customers happy.

Advertising themes for The Children’s Place are very consistent thought their social
media and marketing strategies. Having playful colors and trendy graphics is what they aim
for and succeed with in their advertising. Each season has a different style and new colors
and The Children’s Place has strong designs and advertising for each seasonal campaign that
comes along. Overall, with having children’s apparel, keeping the advertising consistent
throughout marketing, social media, and in store advertising is key to attracting new
customers and keep them coming back.

Online promotional strategies that The Children’s Place are actively communicating
to their customers through platforms on Twitter, Facebook, and Instagram. They post photos
of real life customers who are wearing their product and share it with their followers. This is
giving their followers a glimpse into other customers and their children wearing their product
in hopes that they can relate and shop at The Children’s Place as well. Having a strong
platform on all three social media sites is key to have updated and current for their
customers to be up to date on the latest sales, trends, and promotions that they store offers.

Environmentally and Socially Responsible Business Practices


The Children’s Place prides themselves on being a company that not only clothes
children but also helps clothe and provide jobs for people in developing countries. Being able
to easily access information about their overseas factories and how they treat their
employees. According to The Children’s Place responsible sourcing page “[they] recognize
that we can play a role in trying to improve the lives of the factory workers who make our
products…such programs move beyond a compliance-based approach by focusing on

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workers' needs. These programs support our business goals by working to reduce
absenteeism and improve factory productivity. We are proud sponsors of BSR's HERproject
and CARE's Healthy Food, Healthy Workplace program. (The Children’s Place Profile).” Having
a company that takes action in making sure that their product is made ethically and
responsibly is a company that take ownership in their product and merchandise. While
looking through their website I was not able to find any information on environmental
practices and how they might be able to also make this a priority in their overseas factories
and production.

Michael + Madge
Competitor Profile
A newcomer to the childrenswear market, Michael + Madge is a specialty
childrenswear store that has recently opened in Manhattan, KS. Michael + Madge is located
within The Boutique, a popular boutique in Manhattan, KS. The Boutique opened the Michael
+ Madge portion of their store in Fall 2017 to try and fill a gap in the market. However, they
only cater to a higher priced clothing for demographic that can afford the higher price point
on their children and grandchildren.

After spending some time in the Michael + Madge section of The Boutique, it was
apparent the section was relatively new to the store. The main competitive advantage
Michael + Madge would hold over our store is the fact it is owned by a relatively well-known
store in the Manhattan area. However, they do not heavily advertise so not many people
know they exist. Another downfall that could also hit Michael + Madge hard is their price
point. Not being able to cater to a majority of the demographic in the area is a weakness. In
most cases, it would be assumed most of Michael + Madge’s sales come from residents who
live in the 66503-zip code of Manhattan.

Market Profile
Michael + Madge targets middle and middle-upper class families in Manhattan. This
demographic is mostly comprised of Baby Boomer grandparents looking to shop for their
grandchildren and parents that are late Generation X category and early Millennials. The
majority of consumers who shop at Michael + Madge most likely have obtained at least a
bachelor's degree and probably work as an educator or in business. These families have
young children ranging from infant to six years old and have reason to wear preppy, casual,
quality made clothing.

Michael + Madge does not own a large share of the childrenswear market due to their
status as a young, small business. They could do well in Manhattan since they are the only
local specialty store, however their merchandise and marketing practices do not set them
apart enough to make them a competitor in the larger markets. It is also hard to tell they
have a space in The Boutique just by looking at the store front. I saw no signage advertising

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the children’s line at the front of the store, which makes it look like just a womenswear
retailer. This is also partly why Michael + Madge has a low brand awareness.

On social media, Michael + Madge has a weak following with 230 likes on Facebook
and less than 50 on Instagram. Considering they are less than six months old, this isn’t too
shocking, but Michael + Madge has a long way to go with brand awareness and marketing
strategies before hitting their maximum potential. From what I observed in the store and
online, Michael + Madge runs little to no promotional offers.

Product/Service Profile
Michael + Madge offers a selection with limited breadth and depth. There are only a
few racks with clothing and a small number of accessories on shelves around the section. On
the racks you will find pajamas, dresses, casual tops and bottoms, blankets, and a few toys
and accessories. They do not offer many play clothes for children. Majority of their selection
consists of nicer clothes parents would probably choose for church, pictures, or any other
occasion one would have to dress nicer for. I would assume the small selection is due to
Michael + Madge not having their own retail space, as well as being a fairly new company.
Michael + Madge does offer a baby registry service for new moms to select items they would
like their babies to have once born. Merchandise for Michael + Madge is only sold through the
brick and mortar location. In the future, they might move to e-commerce, however that isn’t
likely since they carry a small selection of product.

Marketing Strategies
Michael + Madge’s primary means of advertising comes from social media and word of
mouth. Instagram and Facebook are utilized to promote sales and products. However, these
aren’t used on a consistent basis. I was unable to find much advertising from Michael + Madge
locally besides the use of social media. They do not have much of a community involvement
yet, but their connection to The Boutique brings them those customers and their families.

Environmentally and Socially Responsible Business Practices


Michael + Madge is an extremely small, new segment of The Boutique; because of their
size, they really cannot do anything to be environmentally conscious besides watch what
labels they choose to purchase. Besides have good working conditions, Michael + Madge
doesn’t have any policies regarding being socially responsible.

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SWOT Analysis

Competitive Advantage
Through analyzing the SWOT analysis and discussing the vision we see for our
concept, we developed strategies to help us satisfy the triple bottom line. In order to be the
best company, we can be, we will have to implement smart triple bottom line strategies. We
strive to be responsible regarding social, environmental, and financial policies and below is
how we plan to do so.

As far as being socially responsible, we want to make sure we are sourcing products
from factories that work under fair labor standards. We don’t want to sell product that has
been made in a sweatshop because it isn’t a practice that we agree with, therefore we don’t
want to support it by putting money into a vendor that does. It is understood that being
socially responsible and trying to source from places that work under fair practices may have
higher prices and in order to keep costs low for consumers in the area, some markup might
have to be sacrificed. However, in the bigger picture, one is able to rest easier knowing they
aren’t supporting a brand that has child labor, awful working conditions, and unfair
compensation for workers. Another goal we have is to try and source from the United States
as much as we can. We recognize manufacturing prices can be higher domestically, but once
again, we will rest easier knowing it was a product made in fair working conditions. An

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initiative we thought of locally is to be active in the community, making us more well-known,
but more importantly allowing us to give back to the community that supports us. This could
include small donations to schools and local organizations, actually doing volunteer work in
town, or hosting small workshops in-store to talk about sustainability in a fun way for
children.

To be environmentally responsible, we thought of a few initiatives to help combat the


damage the apparel industry does to the Earth. One initiative we thought of would give
customers incentive to come back as well as reducing plastic waste. This initiative is to not
use traditional plastic bags, but to use eco-friendly, cloth bags. If a customer brings their bag
back to use again, they would say 10% on their purchase. Our store would not use tissue
paper, for gift wrapping we would use other materials that are better suited for the
environment. The store would recycle since working in retail can come with excessive
amounts of cardboard and paper, especially when new shipments come in. It is a goal to keep
all paper goods and materials as eco-friendly as possible and encourage our customers to do
the same for the betterment of the future of the Earth.

We will have to approach being financially responsible cautiously. Household income


in Manhattan can be anywhere from an average of $50,000 to $78,000 (American Fact Finder,
2010). So, families can either have a lot of disposable income or very little to spend on
clothes. We will have to watch ourselves when doing buying to keep quality of our product
high and the prices low, while still being able to make a profit.

After taking a look at top three competitors Target, The Children’s Place, and Michael
+ Madge after taking the triple bottom line into consideration. We have broken it down as to
why our children’s boutique will fulfill a need in Manhattan. Currently, there aren’t too many
options for childrenswear in Manhattan, much less options for clothing that isn’t from a
national chain. The specialty store in town, Michael + Madge offers a price point that is too
high for most residents in Manhattan, we hope to be the difference. Our ideal customer might
order in childrenswear from a store like H&M or a boutique found on Instagram. We want to
make connections with all of our customers and make them feel wanted.

Most of our marketing will take place on social media to drive brand awareness. We
will use social media to attract customers of all ages, with an emphasis on mothers and
fathers. This is where we will announce new arrivals and offer exclusive promotions. To keep
brand awareness up, we could also send emails to customers that include coupons and
product announcements. To keep customers engaged, we will offer fun workshops or events
for parents to spend quality time with their children and we will add a small entertainment
area for children to sit and hang out while their parent shops. Another service we would offer,
would be a monthly box, like a subscription plan. Parents could fill out a form with sizes and
style preferences, one of our employees would put together a box with coordinating clothes.
The box would then be sent to the customer to pick and choose what they want to keep from

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the comfort of their home. This would be a great service for new parents as they are adjusting
to life with a baby and might not have time to shop by themselves. Being able to create a fun
experience for consumers will keep them coming back to make even more.

Too meet our triple bottom line goals, we can tackle a socially responsible initiative
and volunteer in the community, giving employees paid time off to volunteer. Small
businesses are hard to start and keep open, by giving employees the opportunity to give back
to the community that supports them, other members of the community will appreciate you
and your company’s goals. We will offer eco-friendly bags with every purchase and give
customers a discount for bringing the bag back to use again. Our products will be made in fair
labor factories and will be of high quality. We hope to serve Manhattan and the surrounding
areas to the best of our abilities.

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Triple
Bottom
line
Introduction
This triple bottom line report will be the guideline for sustainability for The Little
Llama. Having these guidelines and expectations for our boutique will be a way to
differentiate ourselves from other childrenswear stores and boutiques in the Manhattan area.

The Little Llama will be a children’s boutique that provides the Manhattan, KS area
with trendy and affordable childrenswear. Our demographic consists of millennial parents
and generation X parents with young elementary aged children. Manhattan is surrounded by
Fort Riley, Wamego, and Junction City, so we also want to be an appealing children’s
boutique to these regions as well. Knowing the average income for these areas and knowing
how much disposable income will be key for our pricing and success as a small business.
Being able to look at our target market and know how they will respond to our product, while
educating them on sustainable resources for childrenswear to help our Manhattan
community is the goal of our small business.

Having big retailers like Target and The Children’s Place in the Manhattan area will be
our main competitors within the geographic area. The Little Llama will have to be diverse in
our product, aesthetic, and dedication to sustainability to be more diverse and appealing to
our customers. By having The Little Llama be a locally owned childrenswear boutique, we
hope that the community of Manhattan will be supportive by choosing to shop local and
support sustainability within the community.

With childrenswear, we know that the parents, grandparents, and other guests will all
have to feel a family atmosphere and a feel a cohesion of modern and Midwest values in our
store. We hope to welcome customers into a playful environment to shop for their family.
Overall, having a childrenswear boutique that feels a sense of responsibility to not only our
customers and gives them quality product at an affordable price, but to also be able to focus
on social and environmental responsibility to those within the greater Manhattan area and
the footprint we leave on Earth.

Sustainability Challenges to Confront


The Little Llama will primarily be confronting the amount of clothing waste in landfills,
waste of plastic/paper goods, having products that are made overseas from organizations
that have a social responsibility to women, and encourage customers to be educated in how
to shop while being conscious of social and environmental needs. Lastly, we would like to
have technology that will assist in reducing paper waste and will focus on this being a priority
in our store. Having a store that not only offers children’s clothing and accessories, but also
helps the Manhattan community in a way that will last years to come is important to our
business as we move forward with our retail store plans.

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Our first effort will be to help eliminate clothing waste in the landfills of the Manhattan
area and the globe. “More than 15 million tons of used textile waste is generated each year in
the United States, and the amount has doubled over the last 20 years. In 2014, over 16 million
tons of textile waste was generated, according to the U.S. EPA. Of this amount, 2.62 million
tons were recycled, 3.14 million tons were combusted for energy recovery, and 10.46 million
tons were sent to the landfill. (Rick LeBlanc).” With these daunting facts, we are wanting to
educate our customers on why it is our responsibility to reduce the amount of clothing in
landfills in our community and globally.

Secondly, another point will be reducing plastic and paper goods in our store. We
understand that our store will not be 100% paper and plastic free, but we want to keep it in
the back of our minds to use less and educate our customers on why it is a priority. Limiting
the usage of tissue paper is a very simple way to reduce waste. “The United States,
[uses] about 50 pounds of tissue products per person every year. This is 50% more than
the consumption rate in Western Europe and Japan, and usage has grown considerably
over the past few decades. (Ron Czinski)” Seeing that this is a problem for our landfills,
as a team we agree that using tissue paper for our packaging and take-home items is
unnecessary for our store and we will utilize more sustainable options for packaging.
Educating our customers on why we choose to practice sustainability through limiting
paper will hopefully be a testimony to our ethics and how we do businesses with our
customers.

Thirdly, we would like to spend time educating our customers on why we are
implementing these social and environmental practices. We believe that if your
customers don’t know that there is a dire need for social and environmental
responsibility in the Manhattan area, then they wouldn’t quite understand why we are
making the choices we are. Informing our customers about our practices will be one of
our staff’s responsibilities and marketing strategies as we promote our store. We hope
to be a positive influence on our customers will not only support the organizations that
The Little Llama supports but bring change in their daily habits to be more aware of the
environment.

Fourth, having products and items in our store that are from overseas
organizations that provide women with jobs and resources to help empower them.
According to Plan International, an organization that works globally to help women
and children empower themselves out of poverty. Plan International stated their
“extensive research shows that girls continue to be the single most excluded group in the
world. They face discrimination and abuse simply for being young and female. Girls are often

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denied their right to equal opportunity and engagement in society. Many are unable to attend
school or make important decisions about their own futures and bodies, and they are far too
often the victims of gender-based violence.” Knowing that we can make an impact for
women globally in the textile industry is a goal that we have set for The Little Lama. As a
business, we understand that by having more women working and supporting their families
here in Manhattan, we can slowly overseas can being more hope for generations to come.

Lastly, using technology to help reduce paper in our everyday operations for our store.
Having to print out receipts and using paper to print out schedules can be hassle and also not
very effective or necessary for our business. Having less paper and more technology will
hopefully be more effective for our customers and staff as we move into a time that demands
more technology and customer interaction with it. With these guidelines for our business, we
are wanting to promote environmentally sustainable and address responsible social needs
both locally and globally for The Little Llama. Being able to educate our customers on why we
choose to do business through more technology will hopefully clearly communicate our
mission for going green.

Triple Bottom Line Practices and Strategies


The first strategy that will be in place for The Little Llama will be for the purpose of
reducing waste in the landfill both locally and globally. By having baskets by our register for
customers use to donate used baby clothes and baby toys, we will take those items to the
Manhattan Emergency Shelter. The customer will benefit by receiving a 10% discount on their
purchase and those in need will benefit from our customers old items. Giving these items
another life for a family in need to use these items will be a socially conscious decision for our
customers to make and be of great service to the community.

To help reduce paper and plastic in our store we will be offering reusable bags
with our logo on it for our guests to take home their items. By having multiple sizes and
fun colors, we will stand apart from our competitors when it comes to presentation and
marketing strategies for our store. We will also give our customers an incentive of 10%
their purchase if they bring back their bags from their previous purchase at The Little
Llama.

We will also utilize our reusable bags as a way to educate our customers about
sustainability issues in the fashion industry. Providing a brief description on the back of
our bags that will describe our services of recycled clothing and how they can donate
clothing to receive a discount on their next purchase. Our sales associates will educate
customers at check out on our services of donations and why we choose not to use
paper goods for take home items in our store. We are hoping that with this initiative,
customers will tell their family and friends about our store and help spread awareness

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of our store by word of mouth. Having our customers be aware of our practices is a
social practice for the community of Manhattan, and hopefully encourage customers to
do the same in their own homes.

Having products in our store that are from organizations that support and
empower women globally will be on our minds while buying product and restocking
our shelves of product. An example of this will be, “JOYN” a company that started in
the states and has since moved to India and Thailand. According to JOYN’s website,
their mission statement is “JOYN aims to provide high quality, handbags and fashion
accessories while principally sustaining and lifting the artisans it works with out of
poverty. By embracing traditional production methods, JOYN works to invigorate and uplift
communities in Rajpur, India while honoring and preserving their cultural identities.” Having
baby bags and accessories from JOYN would be one of many companies that support social
empowerment overseas. We also understand, that not all of our product will be made from
fair trade organizations, but we want to make an effort with a variety of product in The Little
Llama.

Lastly, we will have technology in our store that will help reduce paper and we will be
making a point to make our customer aware of our paperless technology and how this can be
a way to go greener for our business and hopefully in the lives of our customers. Having the
option for our customers to have their receipt emailed to them or printed will be one method.
Also, having technology to help our staff with scheduling, communication, and buying will be
key to reaching our goal for a minimal paper business. Having the mentality of a sustainable,
small business will be difficult, but sticking to our values we know that with these small
efforts this can go a long way for the future of small business in Manhattan.

Conclusion
In conclusion, The Little Llama will be different from our competitors because they
haven’t implemented as many sustainable practices as we hope to. Educating our customers
and staff on reducing waste by donating clothes to those in need and giving them a second
life and having a small business that is focused on reducing paper for our customers and staff
will be beneficial to the Manhattan community as many businesses haven’t started these
initiatives or see the need. We will help empower women by purchasing products for our
store that has a social meaning from overseas. Lastly, the importance of using technology to
help reduce paper and to keep up with the times for our store will be key. It is up to us to help
educate and practice these standards of sustainability for The Little Llama in hopes of a
better future for the community of Manhattan and also keeping a global impact in mind as we
do business to bring stylish and affordable children’s clothing to Manhattan, KS.

THE LITTLE LLAMA BUSINESS PLAN 33


Merchandise
Assortment
Introduction
Being in the Midwest, we have to be aware and conservative with the volume of trendy
merchandise that we select for our store. Since trends move from the coasts inward, we have
to make sure that The Little Llama carries basic items that have trendy details to stay up to
date with fashion yet being simple enough for the laggards to feel comfortable purchasing.
All of our items will be machine washable in order to make taking care of the garments as
easy as possible for parents and guardians. As far as merchandise goes, our goal is to provide
as much as we can for children in Manhattan within reason. This includes carrying onesies,
tops, bottoms, and sleepwear for both girls and boys ages 0-8, as well as formal clothes for
boys and girls. For other items, we have opted to carry accessories for children such as
beanies, bows, and bibs etcetera. To incorporate our sustainability plan, we plan to sell and
diaper bags that are sustainable and/or organic and from brands that help to empower
women and the less fortunate. By offering a variety of clothing and accessories, we will be
able to fill the need of trendy, yet basic items for those in Manhattan.

Key Fashion Trends


As mentioned above, the Midwest tends to begin participating in trends later than
cities on the coast. With that in mind, we will be carry items in neutral and muted colors, with
simple silhouettes, and fun details. For colors and trends used in our buying decisions, we
will have to consider forecasts and colors for Autumn/Winter 2018 and make smart choices
utilizing those forecasts Of WGSN’s forecasted trends for the time period, we chose to model
our choices after the future trend, The Thinker. The Thinker will be muted, simplistic with
some bold details, and include classic silhouettes. Our color story will consist of muted tones
such as powdered blue, apple blossom, primrose, blood red, wildflower blue, cream, and
metallic accents (Cragg, H., 2017).

Powdered Blue

Apple Blossom

Blood Red

Primrose

Wildflower Blue

THE LITTLE LLAMA BUSINESS PLAN 35


WGSN’s research shows apple blossom will be especially popular within the baby and
toddler markets. Our textiles, will be soft, comfortable fabrics that will not cause irritation to
children’s sensitive skin. The Thinker is projecting cable knit for sweaters and cardigans,
jersey knit for sweats and tees, and knitted materials for onesies and separates (WGSN
Kidswear Team, 2017).

For each department, we have selected a fashion trend that we think will be key for
our goal of having merchandise that will be both trendy and simple. Since babies grow out of
clothing quickly, only a small percentage of our merchandise will be infant, but still, we
wanted to incorporate a few trendy items into our merchandise assortment. For infant girls,
we have selected frill/ruffle sleeves as a key trend. The ruffles are youthful, fun, and not too
over-the-top for our conservative consumer base. Once ruffles are added to a onesie, the
piece goes from a simple garment to one that has something extra to add interest and dress
up the onesie.

(Kirkhope, E., 2016, Frill Bodysuit, p. 9)

For our infant boys, we will be featuring coveralls that are either primarily canvas or a
cotton knit. Coveralls can be dressed up or down and can be made to work for any type of
weather. Mothers will be able to dress their baby in these coveralls for running errands or
going to family events. The coveralls offer an added bonus of being a garment that can also
be unisex for baby girls as well.

THE LITTLE LLAMA BUSINESS PLAN 36


(Kirkhope, E., 2016, Felted Rider, p. 9)

For young girls, we decided to offer an item that that incorporated ruffles, like infant
boys, but in the form of a peplum top. Peplum tops are versatile, can be used as playwear, or
can be dressed up for family events. Mothers will find that this top will be suitable for any
occasion and will add a fun, youthful look to their daughter’s outfits.

(Weston, C., 2017, Elastic Blouse, p. 5)

Our young boy’s department will offer more staples then trendy items considering
boys/men’s fashion does not take too many drastic turns and our location. However, one
trend we will incorporate into our merchandise assortment is a mock turtleneck quarter zip
top. Quarter zips are available in many different textiles that make the product versatile and
functional. Fleece iterations will be perfect for early fall, playtime, and football season, while
cable knit, and other knits will be better suited for family events and other occasions.

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(Goodfellow-Ash, A., 2016, Mock Turtleneck, p. 13)

Merchandise Assortment Plan


After conducting research from our potential clients, here at The Little Llama we
decided to have our clothes go from baby and infant up to age 8 in children’s wear. We
decided to dedicate 35% of our inventory to our older boy’s section. Within this section we
would have short sleeve 50%, long sleeve 20%, button downs 15%, and quarter zips 15% for
their tops, and their tops will count towards 42.5%. We will also have 42.5% of the boys’
inventory dedicated towards bottoms. Within the boy’s bottoms section, it would consist of
jeans 30%, joggers 25%, shorts 30%, and dress pants 10%. Then we will have 10% dedicated
towards our boy’s outerwear. The boy’s outerwear would consist of a variety jackets 60%,
vests 30%, and coats 10%. Lastly, within the overall 35% of the department 5% of it will be
dedicated towards pajamas for boy. These pajamas will consist of different sets at 100%.
When conducting surveys with local parents we found that their top priorities when shopping
for their boys were athletic clothes, having the brands they like, and being able to get it at a
reasonable price.

THE LITTLE LLAMA BUSINESS PLAN 38


Our next department will be for older girls, and that will consist of 35% of all
merchandise. Out of that overall 35% the tops will make up 40% of girls merchandise. The
types of styles that will make up these tops are blouses 20%, sweaters 15%, short sleeve shirt
40%, and long sleeve shirts 25%. Pants for this department will consist of 40% of the overall
40%. In this department there will be jeans 35%, shorts 25%, skirts 10%, and leggings 30%.
Dresses will be 10% of the overall girls’ merchandise. We will carry two different styles with
play dresses 90% and formal dresses 10%. In this department 5% of merchandise will be
outerwear. We will have jackets 50%, vests 40%, and coats 10%. Finally, 5% of the overall
department merchandise will be dedicated towards pajamas. We will offer the same styles as
we did for the boys with the different sets 50% and nightgowns 50%.

THE LITTLE LLAMA BUSINESS PLAN 39


Our next department will be dedicated towards the infant boys age group 10%. Their
tops will make up 45% of the infant boy’s assortment. We will offer different styles such as
long sleeve shirts 10%, short sleeve shirts 20%, long sleeve onesies 25%, and finally short
sleeve onesies at 45%. The boy’s bottoms will be 30% of our merchandise. There will be pants
at 60%, and shorts 40%. Infant boy’s outerwear will makeup as 5% of their merchandise. We
will offer jackets 70%, and coats 30%. We will have 20% of infant boy’s merchandise be for
pajamas, and we will only offer different pajama sets.

THE LITTLE LLAMA BUSINESS PLAN 40


For infant girls we will offer the same amount of merchandise as infant boys, except
for bottoms. Infant girl bottoms will only be 25% of our selection. While having pants still at
60% and shorts still at 40%. There will also dresses offered for 5% of total merchandise. We
will sell formal dresses 10% and play dresses 90%. We are adding these dresses because
within the first couple of years of a little girl's life they have several occasions when they need
to wear one such as birthdays, baptisms, holidays, etc. Within all of our departments we will
also over collegiate wear. This way children and infants will be able to support their favorite
teams, while being able to look fashion forward all at a reasonable price.

THE LITTLE LLAMA BUSINESS PLAN 41


Our final department will be for accessories at 10% of total merchandise. We will offer
different toys 25%, diaper bags 10%, blankets 25%, towels 10%, bibs 2.5%, burp cloths 2.5%,
headwear 20%, socks 2.5%, and mitts 2.5%. These accessories will be for all age ranges from
older children to our newborn babies.

Brands We Would Like to Carry


When selecting brands to carry at The Little Llama, we wanted to keep a majority of
our prices for apparel below $30-$40. Several respondents from a survey we conducted said
they would like to shop local, but often choose chain stores due to prices being lower. With

THE LITTLE LLAMA BUSINESS PLAN 42


that being said, price was a significant factor for us to consider when selecting the brands
that The Little Llama will offer. Another factor we had to consider was how trendy, yet basic
the items are and if they are something the Manhattan market would be interested in
purchasing. As mentioned previously, consumers in the Manhattan area tend to be slow at
adopting new trends, so we have to be aware of how fashion forward our merchandise could
potentially be or not.

Infants
The Little Llama’s infant boys’ and girls’ categories will mostly be sourced from the
primarily organic brand, Burt’s Bees Baby. Burt’s offers affordable options that will allow us
to be competitive in the Manhattan market. Most garments from Burt’s will be offered for
below $20, which includes tops, onesies, bottoms, sets, and sleepwear. The brand offers
prints and colorways that range from bright and colorful to muted and subtle, which will
allow us to reach the many different consumer personalities within Manhattan. With Burt’s,
we will be able to combine our targeted infant ruffle sleeve trend with a basic onesie outfit
and offer this two-pack to our consumers for $17-$20.

(Baby 2 Pack Onesie, n.d., Burt’s Bees Baby)

The basic tees/onesies for our infant boys will also be sourced from Burt’s Bees for
about $12-$15. For infant sleepwear, Burt’s Bees carries sleepers and two-piece pajama sets
for infants in a variety of gender-neutral colors and patterns for less than $17. We plan to
incorporate Burt’s sleepwear products into our assortment for both boys and girls.

Boys
Since a boys’ wardrobe tends to consist mostly of basics, we will be sourcing most of
our boys’ garments from Primary, as well as some items from Burt’s Bees Baby. Primary is a
company that sells items like t-shirts, sweatshirts, sweats, and more. All tops from Primary
would be priced under $20, with options for a bundle deal when buying three Primary

THE LITTLE LLAMA BUSINESS PLAN 43


products. Primary is perfect for play clothes and can even be worn by both genders. One item
we will offer from Primary that fits our key trends is this french terry half-zip in heather
cobalt. This half-zip will be great for play time and will be suitable for playing outside in the
fall. Offering the half-zip and other basic products from Primary in addition to trendier pieces
from Burt’s Bees Baby will allow us to offer a variety of options to our consumers for an
affordable price.

(Cobalt Half-Zip, n.d., Primary)

Girls
Girls’ clothing will be sourced from Primary, Burt’s Bees Baby, as well as Pearls and
Piggytails. We chose Pearls and Piggytails for their selection of peplum tanks and ruffle
bottom dresses for under $25. These tanks and dresses come in a variety of colors and will
provide variety for our consumers. The mauve color of the peplum tank is almost identical to
the trending apple blossom color that we have forecasted as a new color. We would also be
able to order this tank top in more colors and neutrals that might be more versatile for
different occasions. These key items can be paired with a cardigan to last throughout the fall
season, as well as be comfortable for those warm September days.

THE LITTLE LLAMA BUSINESS PLAN 44


(Peplum Tank, n.d., Pearls and Piggytails)

(Ruffle Bottom Dress, n.d., Pearls and Piggytails)

Like the boys’ apparel, we would offer basic t-shirts and leggings from Primary to
ensure we have staple items for all genders. Burt’s Bees would be our source for printed
garments and garments with embellishment/patterns at an affordable price.

Sleepwear
Children’s sleepwear will partially be sourced from Brian the Pekingese, a company
that produces pajamas in the United States and offers options that are made with organic
cotton. Brian the Pekingese’s merchandise selection consists of fun, brightly colored patterns
that we would like to incorporate into our store. The prices are on the higher end, but these

THE LITTLE LLAMA BUSINESS PLAN 45


garments are well-made with recyclable materials, which offer a benefit beyond the
consumer. Currently, the website prices pajama sets at $34, but we will offer these sets for
$25-$30. The company offers sleepwear for boys and girls, so we will be able to show some
consistency between departments.

(Rocket Print Pajamas, n.d., Brian the Pekingese)

Collegiate
Being in Manhattan, Kansas it makes sense that we should offer collegiate wear for
children to support the K-State Wildcats. We plan to source this collegiate wear from GTM
Sportswear primarily. GTM is a local apparel printing company owned by Hanes Brands, Inc.
We will be able to select specifically what garments we would like in our store, as well as
decide what type of applique and what wording we would like on our garments. The downfall
with this option is the issue of potential licensing issues and royalty fees that will have to be
paid to Kansas State. We do not foresee licensing issues as being a major issue, as in most
cases as long as an item is marked for specialty store sale when going through the licensing
process, K-State allows it to proceed considering it has met all branding standards. The items
we would offer range from basic Hanes t-shirts to Champion outerwear garments at a slightly
higher price point. If we were not satisfied with an item that GTM offered, we would be able to
purchase onesies and other garments from a wholesaler and then take them into GTM to be
printed on with what we wish.
Accessories
The Little Llama will be carrying baby accessories that will fit the aesthetic of the store
and also provide our customers with necessity items for themselves and their children at a
price point that is at the same time reasonable and stylish. We are excited to have a diverse
mix of accessories that will range from fair trade diaper bags, blankets, toys for all ages, and
other goods that will be for gifting and necessary for everyday use for our customers.

The Little Llama’s accessories division will be ten percent of the product base. The
variety of products will include: diaper bags, blankets, towels, bibs, burp cloths, headwear,
socks, and mitts. The items have been selected in hopes that these will be spontaneous

THE LITTLE LLAMA BUSINESS PLAN 46


additions to purchases and to help enforce that idea, we will place them around the store
and close to the cash register. It is important for The Little Llama to carry items that are a
necessity for our customers, and that are also affordable for the demographic within the
Manhattan, KS area.

We plan to offer a monogramming service to our customers for an additional $3-$5. In


the store, there will be a monogramming machine in the lower level that will allow customers
to bring in personal items to be monogrammed or to personalize an accessory or garment
from The Little Llama. Having a towel or baby blanket monogrammed has the potential to be
a very special gift for yourself or to a loved one. With this technology in the store, there will be
high hopes for The Little Llama to use it as a marketing tool and provide a popular service for
the community of Manhattan, KS.

Overall, The Little Llama will be carrying an assortment of accessories in the store, yet
it will not be the main focus. Carrying accessories that will be appealing for a quick add on for
a purchase will be a way for the store to build purchases at checkout. For example, carrying
items that will be customized by monogramming for customers to take home for themselves
or that will be encouraged to add on for a gift will be a great way to boost sales. Having
sustainability be a reminder in the sales will be a focus while choosing brands that support
the Little Llama’s beliefs is a staple for the store. These beliefs are social responsibility and
environmental responsibility. Carrying items in the store that will be used for years to come
will make an impacted on the customers and the companies that are chosen to be carried at
The Little Llama.

Sourcing
The Little Llama will primarily be focusing on sustainability for the store in terms of
paperless transactions and employee communications with technology, reusable bags for
customers to take home, and buying a portion of clothes and accessories from socially
responsible companies from both the United States and overseas companies. An example of
environmentally responsible sleepwear for The Little Llama is the company, Brian the
Pekingese. Brian the Pekingese is made in the US and is a sustainable sleepwear brand. On
Brian the Pekingese home page they have a statement that says “We have children’s organic
pajamas featuring Brain the Pekingese in whimsical prints, a Brian the Pekingese plush toy
and a children’s bedtime story book. You choose pajamas made from either 100% organic
cotton or 100% cotton. We pre-wash the cotton for extra softness and we do not use any
flame-retardant chemicals. All of our pajamas are quality-made in the USA.” This is exciting to
carry a brand that is sustainable and interactive with the customers and the children that will
be wearing the pajamas with the plush toy in hand while reading a story about Brian the
Pekingese.

THE LITTLE LLAMA BUSINESS PLAN 47


The Little Llama will also have an assortment of accessories that will be socially
sustainable. JOYN is a company that has handmade handbags and accessories that are
produced overseas. We will be promoting JOYN for bags for everyday life or they can be used
as diaper bags. JOYN has education on their website that talks about their mission to provide
work for people in southeast Asia and that also enriches their lives in ways that will affect
generations to come. On JOYN’s website, they are transparent of the story of how JOYN came
to be and how their process works; “JOYN started here, in a…village at the base of the
Himalayas, with a mix of… people from India, Nepal, Tibet and beyond. People from many
different backgrounds, religions, languages and cultures come together daily to create art,
build community and live out their dreams. We started our color mixing and block printing
operations here and continue to expand into vegan leather and cotton stitching, with Tsering
Yankee heading our Rajpur Division. Our non-profit headquarters, JoyCorps, shares our
property here and diligently serves our community with access to medical care, vocational
training, childcare, micro-loans, life-skill training, counseling and much more. Rajpur
currently serves as our Headquarters and handles all of our in-country design and product
development, QC, legal work and logistics.” Seeing that JOYN cares for their employees and
has a passion to help different communities in southeast Asia is a company that The Little
Llama will be supporting and will be pleased with carrying their product.

Lastly, Burt’s Bees will be a brand that will be carried at The Little Llama due to
popular demand, their price point, and their stand on environmental sustainability. From
their company website, we found they have a set of “2020 Sustainability Goals” that allow
them to create a supply chain and facility that helps consumers recognize the need to
“protect the natural world.” Buying products that have a mission to help others while also
keeping the Earth in mind is a brand The Little Llama will get behind and promote in store.

As store owners, we are thrilled to have a selection of apparel and accessories that will
be made ethically and sustainably that will make us feel comfortable to sell to the public.
Both socially and environmentally responsible brands will be serving a purpose while also
educating our customers on why they should care about these brands while also serving a
purpose for our customers in an affordable and stylish way. The Little Llama will be
promoting these products in our store and will be keeping social and environmental
sustainability at the forefront of our buying and choosing of our products that will be sold in
our store.

THE LITTLE LLAMA BUSINESS PLAN 48


Marketing
Plan
Introduction
In this report, you will find the marketing strategies that we plan to implement in
order to bring in customers and increase awareness about The Little Llama. We will be
utilizing paid and free marketing strategies including but not limited to: direct mailers, social
media, setting up booths at community events, and placing print ads in local publications.
This information is laid out and detailed in a six-month plan, along with our scheduled
promotions and sales events.

Marketing Strategies
The Little Llama’s marketing plan will begin July 2018 and will run through December
2018. The strategies include relationship, traditional, and social media marketing directed
towards our target market to promote our brand. In order to make this happen, The Little
Llama will have a heavy social media presence and will hold in-store events, as well as
actively setting up booths at community events in Manhattan.

Social Media
We decided we will use Instagram, Facebook, and Pinterest to connect with our target
market. About 78% of Americans aged 30-49 actively use social media, which leads us to
believe primarily focusing on social media marketing will be our best option (Smith &
Anderson, 2018).

Facebook is still the most popular form of social media being used, with 68% of U.S.
adults being active users in a research conducted by Pew Research Center (Smith &
Anderson, 2018). As a result, we will be able to reach a majority of our target market through
Facebook with the help of pay per click ads, post shares, and making the most out of the
algorithm that determines which posts are shown with higher priority on user’s newsfeeds.
Facebook will primarily be used for showcasing our products and new arrivals, starting
conversations with customers, and educating our customers about how to shop eco-
consciously.

On Instagram, we will be posting daily about our products, lifestyle images, and
customer images. Pew Research Center found that 35% of U.S. adults are Instagram users. We
will be engaged with our customers by using call-to-actions in captions of our posts, hosting
giveaways, and having customers tag us in their photos. By using Instagram, we hope to
reach younger millennial parents and even to customers outside of the Manhattan area.

Pinterest will not be as product heavy as Facebook and Instagram. We will mostly
utilize Pinterest as more of a resource for our customers by having boards dedicated to
recipes, crafts, our products, and other family-friendly pins. Only 29% of American adults use
Pinterest actively, so we do not want to put as much focus on the platform (Smith &
Anderson, 2018). We want to let customers know about things we are interested in and give
them ideas of fun things to try with their children, among other things.

THE LITTLE LLAMA BUSINESS PLAN 50


To build our social media following, we will utilize different strategies for each
platform to cater to each demographic. At all of our events, we will have our social media
handles posted or have them on our bags. Pre-opening, tabling at the Riley County Fair will
set us up for a good foundation for a small following. On Facebook, we will use pay-per-click
advertising, sharing posts to our personal accounts to give them more exposure, and inviting
people and Facebook friends to like our page. Growing our following on Instagram is
expected to be significantly easier than growing a Facebook following. On Instagram, we will
look for accounts of families in Manhattan that follow similar local retailers and try to engage
with those customers to encourage them to follow us. We will follow some of these accounts,
like their photos, and reply back to their posts with personalized comments. In addition, we
will follow other children’s boutiques to see what works for them and try to implement the
strategies they use to grow our account and following. On Pinterest, we will do some of the
crafts or recipes then post to our Facebook and Instagram accounts to encourage those
followers to also follow our Pinterest account.

Traditional Marketing
For traditional marketing methods, we will be setting up booths at community events
such as Purple Power Play, the Mini Makers Faire, and Riley County Fair. We will hand out a
variety of promotional items, coupons, and have an activity for children to participate in
while their parents/grandparents learn more about The Little Llama. We also plan on running
radio ads on 96.3 twice a day the week before opening day. The week before our grand
opening, we will be sending out direct mailers to 5,000 targeted households in the Manhattan
area.

THE LITTLE LLAMA BUSINESS PLAN 51


Jump for 50% Off The

Little

JOY!
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The Postage
Little Paid
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406 Poyntz Ave.
Manhattan, KS, 66502

Paola Antonelli
thelittlellama.com Museum of Modern Art
(748) 751-1278 11 W. 53rd St, New York, NY 10019

The Little Llama will also send out emails every Thursday to customers on our email
list. We decided Thursday was the best day because it is right before the weekend, when most
people do their shopping.

Promotions
In store promotions for The Little Llama will also be in connection with sales and
sustainability. In the month of August, we will be prompting sales and we also be at the Mini
Makers Faire where we will have a booth and promote our store opening. Every second
Thursday of the month we will be having a craft night where we will be hosting families to
help educate and promote sustainability in a fun and create way for all ages. Overall, we have
carefully planned out sales and promotions to go along with holidays and to make room for
new merchandise as the seasons change.

Pre-Opening Marketing Plans

THE LITTLE LLAMA BUSINESS PLAN 52


The Little Llama will be opening our store on August 4, 2018. The main reasons we
chose this date was due to school starting and parents doing back to school shopping for all
ages, holidays that will be in months to come and having the summer to promote our store to
the public. Having our store opening in the tail end of the summer and start of the fall will
hopefully drive traffic of customers wanting to get out of their homes to be active in their
communities. We believe that August is the ideal month for The Little Llama to have our
grand opening in hopes to a successful start to our business.

The Little Llama plans on marketing a one month before our store opening in August
and we plan on using social media, email, and radio to promote The Little Llama before our
grand opening. Starting in July we plan on posting on social media every other day to
promote our store and the progress we are making for the store opening. Having a soft
opening a week before the grand opening will provide close family and friends an
opportunity to come and see our new store and help celebrate with us. The Riley County Fair
will be in late July and we will be able to have a booth to actively promote our store and
interact with the community about our sustainability practices and inviting the public to our
grand opening. Within the same week of the Riley County Fair, we will be sending out direct
mailers to 5,000 families within the Manhattan area. Within the week of our grand opening we
will also be actively promoting our store every day on social media and twice a day on local
radio to promote our grand opening.

Post-Opening Marketing Plans


After our grand opening, we plan on marketing our store primarily through social
media and weekly emails to our customers. Posting on Instagram, Facebook, and Pinterest
will be the networks we will utilize for after our grand opening. Weekly emails will be
prompting sales, craft nights, and community events The Little Llama will be attending.
Marketing for after the grand opening will be planned in advance and will be a direct
reflection of our calendar till December 2018. We will also be implementing a store rewards
system. For every $10 spent, customers will get a punch and earn $10 off after ten punches.
We will also offer 10% off if customers bring their bags back to use again on their next
purchase.

Sustainability
Marketing for sustainability within The Little Llama will be diverse in the way of using
promotional products, social media outlets, and educational tools to encourage our
customers to stop and think about the environmental and social issues in the Manhattan area
and how The Little Llama is planning on tackling these issues. The first marketing tool for
promoting sustainability will be creating a reusable bag in many sizes for our customers to
take their items home. Having our logo on the front of the reusable bag will hopefully help
our customers remember to bring back the reusable bag for a discount of ten percent on their
next purchase at The Little Llama. We are also hoping that our customers would use our

THE LITTLE LLAMA BUSINESS PLAN 53


reusable bag for groceries and other daily activities and be a way to market to friends and
family when using the reusable bag outside of The Little Llama.

An added bonus for our customers and an incentive to bring back the reusable bags
with our store logo would be to have our customers bring used baby clothing in their
reusable bags for an additional discount on their next purchase. These reusable bags will
come in different sizes and we will be ordering new bags to fit the seasons so that our
customers have a fun surprise when coming into our store throughout the year and changing
seasons. During our promotional month before the store opens, we plan on handing out
these reusable bags with our store information on it in place of a flyer, and this will also help
on our cut back on paper goods. Having playful marketing with our logo of a llama will
hopefully keep children and their parents intrigued when shopping at The Little Llama.

Implementation
The Little Llama plans to market our store and grow our business primarily through
social media outlets, however, we will not leave traditional marketing methods behind.
Online, we plan on using Instagram, Facebook, and Pinterest to reach our target market. We
will consistently update these platforms on a daily, every other day, and weekly basis,
respectively. These platforms will be used to promote our store, sales and promotions, as
well as educate our customers about how to shop consciously for the environment. We want
to keep our brand image strong across Instagram and Facebook especially and will have to
work on coordinating our posts to keep the same information available but worded to cater
the type of person who would visit Facebook versus the type of content someone on
Instagram is looking for. As far as traditional marketing, we will be using direct mailers, radio
ads, and setting up booths at community events.

Social Media
On Instagram, we will be posting daily the week leading up to our opening day and
then continue posting daily after that. Instagram will be used to primarily promote products
and promotions. We will implement our eco-conscious education on Sunday’s through a
hashtag, “#SustainabilitySunday”. In addition to our educational hashtag, we will be
including “lifestyle” posts. These posts will be photos that do not necessarily involve product
but will include call to actions in the caption to allow us to engage with our customers or
graphics that have inspirational, empowering quotes, or quotes about motherhood. Product
posts will show customers how to style our garments or highlight actual customer photos of
their children wearing our clothing.

THE LITTLE LLAMA BUSINESS PLAN 54


Facebook will be used as more of a conversation center for us to really connect with
our customers and find out their wants and needs. We will be posting on Facebook 3-4 times
a week, focusing on promoting sales, products, and truly being able to hone in on eco-
conscious shopping education and starting a conversation about it. Facebook will be the best
option for us to push events that we have, such as our soft opening, grand opening,
community events we will be tabling at, and our sustainability education craft nights. By
posting these events on Facebook, our customers will be able to share them for their friends
who might not know about The Little Llama to see. The more these events get shared, the
higher up Facebook will place them on user’s timelines due to their algorithm, and in turn,
our page/events will receive higher exposure. We will be posting highlights from these
community and in-store events and encourage people to stop by the next one.

THE LITTLE LLAMA BUSINESS PLAN 55


Pinterest is where we will not necessarily be promoting our products, but instead
pinning lifestyle pins. We will dedicate boards to party themes, easy recipes, recyclable crafts
and activities for kids, and for our products. An hour or two each week will be dedicated to
following relatable accounts and pinning relevant content to our boards. We do not want to
make Pinterest as heavy of a priority as Facebook or Instagram since it is not a platform that
a company can use to engage with their customers. To lead customers to our Pinterest
account, we will try a recipe or craft, then post about it on Facebook referencing our Pinterest
to take our customers there.

For community outreach and events, we will be tabling at events such as the Riley
County Fair, Purple Power Play, and the Mini Makers Faire, as well as walking in the K-State
Homecoming Parade. For these events, we will hand out promotional items, flyers, our
reusable bags for customers to bring in their old clothing to be donated to the Crisis Center,
and other store information.

THE LITTLE LLAMA BUSINESS PLAN 56


The Little Llama will also be hosting sustainable craft nights on the second Thursday
of every month. These crafts will include making things such as sensory bottles, baby food jar
snow globes, and a milk carton bird feeder among other things. Each workshop event will
include educating our customers and their children the importance of recycling whatever
object is used for that night (i.e. plastic water bottles, glass jars, paper cartons etc.). We hope
these events allow us to connect with our customer base, instill knowledge of recycling in our
youth, and have a positive influence on the Manhattan community.

Traditional Marketing
Our traditional marketing methods of direct mailers, and radio ads will be heavily
used during the month prior to opening. The week of our opening and on, we will start our
email list and will send out emails weekly on Thursday mornings. These emails will promote
items, promotions, styling tips or fun stories, in-store events, as well as general brand
awareness. We will send out direct mailers, one before our grand opening to raise brand
awareness. Radio advertisements will be used daily the week before our opening across
popular radio stations in Manhattan such as 96.3 during customer’s morning commutes or
during the lunch hour.

Budget
The Little Llama has budgeted $4,200 for marketing in the first six months. The
following is a breakdown of how we will use our money:

THE LITTLE LLAMA BUSINESS PLAN 57


6 Month Marketing Plan
July
Our marketing plan starts one month before The Little Llama’s opening date. This is
when we will begin to grow our social media following and start posting on our accounts
consistently. In the weeks leading up to our grand opening, we will be posting on our social
media everyday starting on the Fourth of July. On Sunday the 8th, we will begin our
#SustainabilitySunday’s to let customers know our values and start to educate them on being
eco-conscious. On July 16th, we will send out invites for our soft opening event on July 21st.
The soft opening will be for a select group of our close family and friends to check out the
store before our official opening. We will provide appetizers and drinks for these families to
help us celebrate the opening of The Little Llama. From July 25th to July 29th, we will be
setting up a booth at the Riley County Fair to hand out our reusable bags to raise awareness
for our grand opening the next weekend. On July 30th, we will send out a direct mailer to 3,000
families in the community to let them know about The Little Llama’s grand opening on
August 4th. On the 30th we will also begin our radio ads that will lead up to opening day and

THE LITTLE LLAMA BUSINESS PLAN 58


start to post on Instagram daily rather than every other day. For this week only, we will be
posting on Facebook only day to build awareness.

August
From August 1st to grand opening day, August 4th, we will be running daily radio ads as
well as posting daily on Facebook and Instagram. On August 2nd, we will begin sending out
weekly emails to customers on our email list that we start to acquire after the soft opening.
After opening day, we will continue posting on Instagram daily and on Facebook 3-4 times a
week. August 9th, will mark the beginning of our Back to School promotion, which will run into
that Sunday. It will also be the first of our monthly sustainable craft events for children and
their families. These events will be held on the second Thursday of every month. August 30th
will be the beginning of the two-day event, Purple Power Play, where we will set up a table to
promote The Little Llama. It will also mark the start of our Labor Day promotion which will
run through Labor Day.

THE LITTLE LLAMA BUSINESS PLAN 59


September
September will begin with the continuation of the Labor Day promotion, which runs
through September 3rd. We will continue posting on Facebook every other day, Instagram
daily, and sending out emails every Thursday. September 13th will be our second in-store
sustainable craft night. The Mini Makers Faire does not have a set date yet, but we are
projecting it to be on September 22nd. At the Mini Makers Faire, we will be setting up a booth
in Aggieville and have one of our sustainable crafts for kids to do. We will also be handing out
our reusable bags and promoting The Little Llama’s donate for a discount promotion.

THE LITTLE LLAMA BUSINESS PLAN 60


October
We will continue the same frequency for social media and email marketing
throughout October. On October 11th, we will hold the in-store craft night and we will
participate in the KSU Homecoming parade on the following day, October 12th. At this point,
we will have to run an end of season promotion to clear out the remaining summer inventory.
The end of season promotion will run October 18th through October 21st.

THE LITTLE LLAMA BUSINESS PLAN 61


November
All social media and emails will be scheduled the same as previous months in
November. On November 8th, we will be hosting a craft night for customers. Our Black Friday
sale will run from November 23rd to November 25th.

THE LITTLE LLAMA BUSINESS PLAN 62


December
Social media and emails will continue as previously scheduled throughout December.
December 13th will mark the start of our holiday promotion that will run through the 16th and
will also be the day of our monthly craft night.

THE LITTLE LLAMA BUSINESS PLAN 63


THE LITTLE LLAMA BUSINESS PLAN 64
Visual
Merchandising
Plan
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nspi
rati
on I
mages
STORE LAYOUT

dividing curtain

stairs
down Event
Space

Play
Area

Ac
ce
sos
rie
s

Infant
Girls

Infant
Boys

Girls
Boys
front door

window display window window window display

window window

front
Restroom

dividing curtain

stairs
down

Play
Area
Event Office
Space

Blan
ket
, Ba
gs,T
owe
ls,
Toy
s
Socks
Dressing /Misc.

Tops, Bottoms, Dresses


Room

sleepwear
outerwear
Dressing
Room

Dressing cash wrap

Tops, Bottoms
Room

sleepwear
outerwear
donation bin

cash wrap
sleepwear
Tops & Bottoms, Select Dresses

outerwear
sleepwear
Tops & Bottoms

dresses
outerwear
Tops & Bottoms
Tops & Bottoms
front door

window window

window window

front
Wi
ndow Pl
an

St
oreHour
s
Monday-Thur
sday :
10am -7
pm
Fr
idayandSaturday:10
am -8pm
Sunday:12pm -5pm
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nfant Boys
I
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Boys
Gi
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ACCESSORI
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GET
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DON’
UR CU
TO NG
ABOU GRAMMI
MONO VI CE
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BRANDING
The

Little
Kaylee Horner
Llama Owner

406 Poyntz Ave. Manhattan, KS


khorner@littlellama.com
Phone: (785) 751-1278
Fax: (785) 751-9913

The

Little
Llama
4526 Poyntz Ave.
Manhattan, KS, 64111
Paola Antonelli
Museum of Modern Art
11 W. 53rd St, New York, NY 10019
The

Little
Llama
406 Poyntz Ave.
Manhattan, KS, 66502
thelittlellama.com
(748) 751-1278
fax: (748) 751-1279

Paola Antonelli 3 April 2018


Senior Curator
Museum of Modern Art Dear Ms. Antonelli,
11 W. 53rd St,
New York, NY 10019 Or reritem re sumquatem ea natur, net ulloruptate doloratiani od quiae nonecab oritatio. Ga. Itas
excepe experum eictius, quatur, solupiet que cusa dit, tecus.Oluptae nature non et min nectem
rae nimolor ereiund elendis mil minctis simusciunt, nima nos esti cum quo dis con cus aut expli-
bus et iditas sentur?

Ovid moluptaturi volestrum quaectam ium ut abo. Henimiliquo ium autem solupie ndusdae.
Itatemo luptatur, el iunt atiis molor rempori busdae accum iuscitatium, estrum fugiae raeper-
chicid earciae. Et lia sum rataestiis es et, sintiissinus pra culliae ctatet vel idunt haria quidit ma
duntis nos del il et rernate mperepudae volupidit eicimin versped ictota aped magnate nienihi
llatiscias acerciis nisti opta dunt id mo quam quo consedis dolores si odipsam fugiam diati qui
sequias is aut eostem eostiatem. Qui ommolo omnihic ipiendi to omnimint maximintem quis
secaese ruptatempor sitas dolupta tatibusam qui di seque versped quiatibusam num lam rae pro
expelendis dolesed modis nimusamus non peria quo tes vendeniae. Officiliquam im ex excero
iduciant idenetur apicat.

Lendebit, quidi quatemporro et magnatur moluptassum es etus, si corehent, cus, solum, nist
dem la vit, sequas coribus.Ehendae reius arcimagnatur molo ium nonsequ ossimagnis sequo
mint officte moluptat quo di officim iundel moluptas et ex eicta volum aspis ipis disquam qui
nitae mi, quam et id quatus mo quae andi que sitist, inis ex est, as doluptatia comnihil moditat
ibercimaio.

Bustiat iaerum volupta tisciatur, adis inimus plique dia que vel estium quasit andersped mos ip-
sum elitas pel ius sam, testi volescil et molut asse pore dipsand untiunt, culpa qui te excest ut ra
sed que idellabo. Et od qui nonet ut quam quibea nis plaborecte alique vollorum dolenti omnime
esciis quia dereperferum cullabo. Ut velitat iatempo rporemporit eume cus est, quia veritinus.

Sincerely,

Stephanie Lincoln
Associate Director
Logos

The The The

Little Little Little


Llama Llama Llama

The The

Little Little
Llama Llama
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THE LITTLE LLAMA BUSINESS PLAN 85


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