Business Analysis

By: Cassie Hagedorn, Madison Miekley, Brandon Nguyen, and Laura Rusert

05.16.2018
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Mission Statement
Current Mission Statement:
“To challenge and improve our products, services and practices to meet and exceed
client expectations. We believe that attention to detail and industry knowledge is
the foundation for a keeping a competitive edge. Believing in creating unique
spaces to reflect and support how our clients live. Understanding that giving back
encourages growth individually and as a company and shows appreciation for the
community in which we live.”
New Mission Statement:
Obelisk Home is committed to offering Springfield and the surrounding
communities a diverse range of contemporary furnishings that no other home
store can provide. We strive to provide people with unique style that reflects their
creativity and fits to their lifestyle.

Obelisk Home Team

Co-Founder, Principle Designer - Nathan Taylor

Co-Founder - J. Kent Martin

Director of Logistics - Chris

Director of Strategic Relations - Nicole

Project Manager and Technical Designer - Alexa

Design Assistant - Elyse

Store Manager - Michael

Assistant Store Manager - Rachael

Marketing Assistant and Visual Merchandising - Colby

Graphic Design and Marketing - Jeremy

Warehouse Manager - Jake

Warehouse Assistant - Rick

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Warehouse Assistant - Jeff

Assistants - Blue Taylor-Martin and Willie Taylor-Martin

Description of Your Business

Product
Merchandise:

Living Room Sofas, Sleeper Sofas, Sectional Sofas, Chairs, Chaises, Ottomans,
Collections: Benches, Accent Tables, TV Stands & Media Consoles, Storage
Cabinets, Bar Cabinets & Bar Carts,
Bookcases

Dining & Kitchen Dining Tables, Dining Chairs, Bar Stools, Buffets & Sideboards
Furniture:

Bedroom Beds & Headboards, Nightstands, Dressers & Chests, Armoires,

Furniture: Desks

Lighting: Chandeliers, Pendants, Table & Desk Lamps, Floor Lamps, Wall
Sconces

Pillows & Throws: Decorative Pillows, Outdoor Pillows, Poufs, Throws

Wall Decor & Mirrors, Prints, Original Art, Wall Art, Clocks, Picture Frames
Mirrors:

Home Accessories: Home Accents, Sculpture, Centerpiece Bowls, Candles, Vases, Candle
Holders, Lanterns

Rugs: Area Rugs, Outdoor Rugs, Kitchen & Entryway Rugs, Runner Rugs

Pet Bowls

Merchandise Used in Business Analysis Sales Forecasting:

Couches Tables Chairs Lighting Accessories

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Uniqueness of the Product:

Obelisk Home offers customers unique and one-of-a kind home furnishings that
cannot be found at any other store in the area that is centered around the concept
of home furnishing and services. As a local business they go beyond the means of
being a traditional mass retailer of home furnishing. They offer special services
such as upholstery on current and new products, as well as ones brought in by
customers. They work with high quality fabrics, which provide the customer with
more options than they could find at any other business. They also provide one-of-
a kind accessories that are not found in the Springfield metropolitan area.
Additionally, they offer in-house brands such as JKHome and Unleashed.

Niche:

The overall aim of Obelisk Home is to sell home furnishing to consumers that are in
need of new furniture. However, when looking at the niche of Obelisk Home they
have concentrated all of their main marketing efforts and focused on a selected
target audience in a rather defined market. As of now, they are working in a market
that is looking for something eclectic and special. These individuals are not wanting
to look for something that is in the mainstream marketplace, rather they want
something that is unique and fits their needs as an Obelisk Home client. This can be
seen in two key aspects first is in the selection of product that is being sold. Second
is the additional services that is offered.

Key Elements of Services

Type of CS Provided:

Obelisk Home offers customers the opportunity to cultivate their style in their
home over a period of time.

Customer Incentives:

Customers receive incentives that they are given a personalized experience with
Obelisk.
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Add-ons:

In addition to what Obelisk Home is already providing their customers, we

recommend that they offer a payment plan for those customers who are not
prepared to spend all their money at once.

Credit Cards:

They accept all major credit cards.

Product Assortment Plan

Seasonal Changes

How often new product:

Obelisk Home is continuously getting in new product all the time. They get new
merchandise in weekly and depending on the season sometimes daily.

Trend

For the Springfield and surrounding areas Obelisk Home is a trend setter for those
who wish for the unique and contemporary styles they provide.

Vendors
Who are they?

Obelisk Home has many different vendors. We were not permitted information on
whom those vendors are, however, we know for a fact they do have 11 core
vendors and roughly 7 changing vendors, totaling around 18 vendors.
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Price Points
Price Ceiling & Price Floor
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Location Details

Benefits
Physical Store Location

The store is located in the downtown Springfield area between Campbell Avenue
and Booneville Avenue. Being in downtown the store becomes a special destination
for customers to come and visit. This location also fits into the narrative of the store
as downtown is seen more of an art place.

Cost of living.

One of the key benefits of Springfield, MO is that the cost of living is considerably
lower than the national average. The cost of living in the overall Greene County, MO
the cost of living is about 12% lower than the national average in the United States.
When the basic cost of living is covered by an individual, the remaining income
becomes disposable income for that person. This means that there is an
opportunity for a person to then use that disposable income at the store.

Challenges
Physical Store Location

Although the store is located in downtown Springfield, the location is not visible
from the main road for customers to see. The store is four blocks from the main
square of downtown where most of the business occurs. This means that
customers are not walking in off the street, it has to be a destination for them. In
addition to the location of the store itself being located downtown, the city of
Springfield, MO has unique challenges. These challenges are seen as possible
negatives that could be seen as a repellent to consumers in the local area.

Violent Crime
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Springfield has a higher rate of violent crime when compared to the state of
Missouri and the United States National Average. When it comes Springfield annual
crimes report there are about 2,250 cases for violent crimes or about 13.45 per
every 1,000 residents. This is higher than the state of Missouri overall as it is only
about 5.19 per every 1,000 residents, and the national average coming it about 4
per every 1,000 residents. Thus, a person in Springfield as a 1 in 74 chances of
becoming a victim of a violent crime, compared to the entire state of Missouri is 1 in
193 chances of becoming a victim of violent crime. This means that when
comparing Springfield has a violent crime rate that is 159.15% higher than the state
of Missouri. Then when comparing Springfield to the United States the violent crime
rate is higher by about 236.25%. This is broken down to about on average when it
comes to annually reporting 8 reported cases of murders (0.005 per 1,000), 293
reported cases of rape (1.75 per 1,000), 428 reported cases of robbery (2.56 per
1,000), and about 1,522 cases of assault (9.10 per 1,000) within a population of
about 167,000.

Property Crime

When looking at property related crimes in Springfield there is about 14,290 cases,
or about 85.43 per every 1,000 residents. This is higher than the state of Missouri
which is about 27.99 per every 1,000 residents and the national average which is
about 25 per every 1,000 residents. Thus, a person in Springfield has a 1 in 12
chances of becoming a victim of a property crime. This is higher than the state of
Missouri which is about 1 in 36 chances of becoming a victim of a property crime.
This means that when comparing Springfield and the state of Missouri the rate is
about 205.22% higher. When comparing Springfield to the national average,
Springfield property crime rate is about 241.72% higher. This is breaking down to
about on average when it comes to annual reporting 2,122 reported cases of
burglary (12.68 per 1,000), 10,508 reported cases of theft (62.80 per 1,000), and
about 1,664 reported cases of motor vehicle theft (9.95 per 1,000).
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Tax Increase.

Greene County voters recently voted in a sales tax increase back in November of
2017 that would also affect Springfield, MO. The tax dollars that is being collected is
going to be used building of a new $60 million state prison. The tax percentage
increase for the city of Springfield was at 7.6% to now 8.1%. This tax was a ½ cent
increase on everything that is sold. Tax is projected to net about $27 million each
year that it is in effect for that full fiscal year. This possible tax increase could be a
deterrence for consumers are thinking about wanting to make a large purchase.

Visual Merchandising Plan

How often does it change?

The visual merchandising of the store changes frequently due to two main factors.
The first main reason is that merchandise is being sold to customers, or when there
are new pieces that come in to the store. This kind of change is seen as strategic
and necessary as there is a need to place on the sales floor for new product
allowing customers to see the items. Second, is that the merchandise is subjected
to the people who work there. This kind of change is more random and carefree as
the employees move things around and change the look of the store. This can be
on a daily basis. The visual merchandising for the store is an eclectic with, boutique
feel which allows for this constant change in design layout.

Recommendations?

From the perspective of a possible customer the layout of the store is fun and
eclectic and is fairly stimulating to the eyes as there are a mixture of pieces that are
arranged together. One of the things that could be done is possibly having less
product on the floor. As this would reduce not only the amount of product on the
floor, but it would also give the store more space for consumers to engage with the
product and walk around the store.

Exterior of the Store Location

Accessibility:

Although the store is a destination for customers, it is easily accessible.

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Parking:

The parking is relatively convenient to the location of the store, and the overall
entrance point that customers walk into. There is a small parking lot dedicated to
both the customers of Obelisk home that is shared with customers of the law firm
next door. Of course, there is also the possibility to park on the street, should the
parking lot be full. There is one small problem in the fact that parking lot only has
four handicap accessible parking spots and if those should be taken it is very
inconvenient for them to have to park in the street.

Safety of Customers:

While a lot of people like to go downtown every once in a while, there is a certain
stigma that downtown Springfield has that could be seen as a negative factor. Some
people in the target market might think that downtown and the store being tucked
away from the major traffic area of the square does not help attract those potential
customers in. Had the location been on Walnut Street, that stigma of downtown
most likely wouldn’t affect the store traffic.
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Current Marketing Plan

Target Customer
Demographics:

Geographic: General overall location review of Bentonville, AR

When looking at Bentonville, AR there is consistent growth that is higher than both
the United States average and Springfield, MO overall. The current population of
the area is 47,093 with a trending growth of 4.66% each year. Within the population
the median age of the people there is about 32.8. Within the population the
ethnicity breakdown is 73.6% White, 10.4% Hispanic, 10.4 % is Asian, and 2.9%
Black. The number of people that are employed is about 19,800 with a job growth
trending at about 5.12% each year. The median household income is around
$71,900 with an average growth rate of 0.67% each year. The median property
value is that around on average $175,400 with an expected growth in 3.93% each
year. The homeownership rate is trending at about 56.7%. The poverty level is low
in this area as it is only 7.74% when compared to the national average of 14.7%,
meaning that Bentonville is below the national average by 47.34%.

Age: 35-75+ (1946-1964)

The age bracket for this target clients is starting at about 35 years old, ending at
about 75 years, and older. The median age of an average client within this grouping
if using the ages starting at 35 years old and ending at 75 years old is expected to
be about 55 years old. This average age group is older than the average age of
Bentonville collectively, which is 32.8 years old. The target age group is about 40.4%
older then general average age group for the city of Bentonville.

Education: Associates Degree or above.

The target client that is being aimed for has an Associate’s Degree or higher. The
main University that is located within the city of Bentonville is Northwest Arkansas
Community College that on average has a 2-year program and has a tuition cost of
about $3,675 for instate and $3,750 for out of state. Northwest Arkansas
Community College awarded 1,050 degrees with 372 being male and 687 being
female. The most common degrees where in the Liberal Arts and Sciences,
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Roistered Nursing, and General Business Administration and Management. The

other Universes that are located around Bentonville include University of Arkansas,
John Brown University, and National Park College.

Occupations
When looking at the occupations of the target client there is not a single occupation
that is being focused on but rather it is a general trend of who can be expected to
possibly be a client when using other demographics such as income and education
level. When looking at the most common occupations that are held by number of
employment is that of Sales with 2,896 (14.6%) employees, Administrative 2,759
(13.9%) employees, and Management 2,541 (12.8%) employees. When it comes to
occupations in fields that are most specialized and evaluated with the Revealed
Comparative Advantage (RAC) calculation is that of Computer and Mathematical
with 4.19 RAC, Management with 1.35 RAC, and Business and Financial Operations
with 1.34 RAC. This highest paid occupation with in the Bentonville is that of Legal
with median yearly earnings of $91,421, Management with median yearly earnings
of $83,656, and Business and Financial Operations with median yearly earnings of
$78,905.

Income: $75,000 – $200,000+

The main income target within this demographic is a range starting at lower end of
about $75,000 and topping off at roughly $200,000 or more. Within this income
range the median is about $137,000 for the average target customer. When
compared to the larger Benton County PUMA, AR this group makes up 48.2% of the
total population that fall within this income rage. The United States national
average is about 35.6% when the same income bracket is applied to the general
population. The difference between the United States National Average and Benton
County PUMA, AR is that of 12.6%, meaning there is a 26.1% difference in growth in
the Benton County PUMA, AR then the United States average. This difference is an
advantage for the Benton area as it is reflecting the overall growth that is to be
projected when looking at income and trending income growth as stated earlier.

Cost of Living: 9% Below National Average

Cost of living is the amount of income that is needed to sustain a certain level of
living that is above the poverty line, including basic expenses such as housing, food,
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taxes and health care. This is used to measure how expensive living cost are
compared to other states and cities. When looking at the cost of living in the overall
Benton County AR, the cost of living is about 9% lower than the national average in
the United States when considering the living needs for a single adult per year
when looking at annual expenses. Each of these averages are looked at with factors
regarding family size, composition, and current location. The average living wage is
$10.49 for A single adult.

Annual Expenses Cost of Living for 1 Adult

Food $2 ,986

Child Care $0

Medical $2,242

Housing $6,552

Transportation $4,236

Other $2,656

Required Annual income after taxes $18,671

Annual Taxes $3,157

Required annual income before taxes $21,828

Geographic: General overall location review of Springfield, MO

When looking at the overall area of Springfield MO, there is a growth rate of about
0.85% that is slightly higher than the United States national average of about 0.70%.
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The overall population of Springfield is about 165,140. Within the population there
is about 85.6% white, 4.58% Black, and 4.21% Hispanic. The median age of
Springfield is about 32.8, and about 21.8% of the population are about 18-24. The
median average household income is about $33,769 with an average income
growth at about 0.63% each year. Springfield has a higher level of poverty rate with
about 25.9% compared to the United States average of about 12.7%. When the two
percentages are compared Springfield, MO is about 104% higher the overall United
States national average. The number of employment is about 79,400 with an
expected growth at about 1.34% each year. The median property value is about
$109,500 with a growth of about 1.77% each year. The largest university is Missouri
State University with about 4,432 graduates, Ozark Technical Community college
with 2,920 Graduates, and Drury University with 1,331 Graduates.

Age: Millennials - Ages 22-38 (1981-1997)

The age bracket for the target client of Springfield, MO is starting at about 22 years
old, ending at about 38 years old, or referred to as the millennial population when
looking at generational age ranges. The median age of an average of a consumer
within this grouping if using the ages starting at about 22 years old and ending at
about 38 years old is expected to be on average about 30 years old. The overall
percentage of that age group share is about 43.2%. This average age group is
younger than the average age of Springfield collectively, which is 32.8 years old.
This means that the average age of the target age group is about 8.3 percent
younger than general average age group for the city of Springfield.

Education: Associates Degree or Higher

The target client that is being aimed for has an Associate’s Degree or higher. The
three main Universities and Colleges are Missouri State University with about 4,431
graduates, Ozark Technical Community College with 2,920 graduates, and Drury
University with about 1,331 graduates. The median In-state public tuition is about
$6,150 for a 4-year degree, and the average median for private tuition is about
$24,750. Most of the student that graduate from Springfield, MO went to Missouri
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State University. The most common degree that student receive from are that of
General Psychology with 7.2%, General Business Administration and Management
with about 5.7% and Teaching and Elementary Education at 5.3%.

Occupation

When looking at occupation of the target market, there is not one occupation that
is being focused on but rather this is what is to be found in the general area of
Springfield that could happen to be a client. When looking at the most common
that is held by employment is that administrative with 13,276, Sales 9,256, and Food
Services 7,469. When it comes to occupations in fields that are most specialized and
evaluated with the Revealed Comparative Advantage (RAC) calculation food services
have an RAC Ranking of 1.52, then Health Technicians with an RAC ranking of 1.47,
and HealthCare Support with an RAC ranking of 1.28. Finally, when it comes to jobs
that are highest paid with overall median earnings Legal with $75,853.80, Health
Practitioners with $47,008, and Computer and mathematical with $45,648.

Income: $35,000 – $200,000+

When looking at are target market and the income bracket that we are aiming for is
about $35,000 to $200,000 or more. Within the population, about 56.1% of the
population makes up the income bracket. When compared to the United States
average the with the income bracket applied it is about 58.9%. This means that
Springfield has less people within this income bracket by about 4.4% when
compared to the United States average. In Springfield, the average Median income
was about $33,769, which is less than the United States median annual income of
about $59,039. The average Springfield annual income is 42.80% lower than the
national average. This is also can be explained when looking at the Cost of Living of
Springfield when compared to the United States national average which is 12%
lower. However, in the Springfield area there is still economic growth in annual
income at about 0.84%.
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Cost of Living (12% lower than the National Average)

Cost of living is the amount of income that is needed to sustain a certain level of
living that is above the poverty line, including basic expenses such as housing, food,
taxes and health care. This is used to measure how expensive living cost are
compared to other states and cities. When looking at the cost of living in the overall
Greene County, MO the cost of living is about 12% lower than the national average
in the United States when considering the living needs for a single adult per year
when looking at annual expenses. Each of these averages are looked at with factors
regarding family size, composition, and current location. The average living wage is
$10.35 for A single adult.

Annual Expenses Cost of Living for 1 Adult.

Food $3,050

Child Care $0

Medical $2,296

Housing $6,024

Transportation $4,173

Other $2,877

Required Annual income after taxes $18,421

Annual Taxes $3,114

Required annual income before taxes $21,535

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Psychographics:

Personality
There is not an expected personality of a possible target customer when it comes to
are client as disclosed. However, there is a possible and reasonable expectation of
a customer that can become a customer and client. When looking at a personality
assessment the VALS scale (Values, Attitude, and Lifestyle). The VALS research
methodology is used for the main segmentation of a market when regarding
psychographics and driving consumer behavior. This was what seemed to be the
most helpful when assessing a possible consumer with these personalities and
expanding the target market. The main VALS that seem to fit with the narrative of
Obelisk Homer were those relating to Innovators, Thinkers, Achievers, and
Experiencers.

Innovators

Regarding this class of consumers, they are at the top of the VALS Framework as
they are seen having a high income each year and having access to a plethora of
resources. This means that this group is the able and has the wiliness to make large
financial transactions that most other groups cannot due to the lack of possible
resources that they do not have. In addition, both of these factors help the class of
Innovators in regards of achieving independence as it is highly valued by these
people. They have the finer taste in life and have a taste in things that is unique to
them because they have the confidence for experimentation and maximizing self-
expression.

Thinkers
When looking at this class they are well-educated professionals that are high up on
the VALS framework when it comes to resources. In this group of individuals, they
are reliant on their knowledge and are well informed about what is around them.
They have high resources to exercise their decision-making processes and assets
what is around them before fulfilling a transaction. They are motivated by what
they see is rational to them and are not as compliant to what is trending in the
market. To them what they see as self-expression is the use of rationalization that
is fitting to them.
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Achievers
Within this grouping of individuals they are motivated by the achievement that they
have made in their lifetime. They are known to have high resources to achieve what
they are striving for. These are the kind of people that tend to excel at their job as
well within their family. They are seen as sometimes as a brand loyalist if they see
that as brand is doing well consistently over time because that is seen as an
achievement for that brand in their eyes. Thus, the faster a brand is growing in the
eyes of a person with the mindset of an achiever they will adopt the brand because
it will fit in with their narrative. For them what is seen as self-expression are
achievement, whether that be external or internal motivations.

Experiencers
Looking within this group of individuals they are seeking experiences that they feel
are special to them. A large factor that they also see is important is that they want
to have an outlet of self-expression, as this is one of the key values for them. Most
of the people in this group are considered young adults that are also high in
resources for them to seek these experiences.

Life Cycles - Generational

Baby Boomers (1946 – 1964)

When looking at the Bentonville AR, are we are aiming at a pollution that was born
in 1946 – 1964 or the ages of 54-72. This collective group makes up about 74 million
of the total population in the United States. There about 47,000 people that live in
Bentonville and about 11,000 of them are in the baby boomer generation. That
means about 23.4% of the total population are held by the Boomer generation. This
population controls over 70% of the disposable income in the United States. The
main spending that this generation does is on travel with about an average of $120
billion annually on leisure travel. The other area that baby boomers like to spend
their money on is that of improving their home experience. This generation sees
that the home is a place that is seen as an investment. This generation is engaged
when retails provide home improvements and repair services such as Home Depot
and Lowes.

When looking at Baby Boomer population there is a lot digital activity that they
participate in when it comes to the internet and also using social media platforms.
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About 60% of people that fall within this age, range has at least one social media
site platform that they use, with Facebook being the most popular with about 82%.
About 60% of baby boomers spend time reading blogs and other online articles.
They also spend on average 27 hours a week online and are 19% more likely to
share content then other generations. 95% of baby boomers use email as one of
the main forms of communication, and 92% of them use online shopping sites for
products and service then traditional brick retails. Over 50% of baby boomers will
go to the online site of a company if they saw an ad for it on some kind of social
media site.

Millennials 1981-1997 (21-37)

When looking at the Springfield MO, are we are aiming at a pollution that was born
in 1981-1997 or the ages of 22-38. This collective group makes up about 75.4
million of the total population in the United States. In Springfield MO, the
population is about 167,000 and about 71,440 of the population fall with in this age
range. This means that about 42.77% of the population are to be considered to be a
part of the Millennial generation. When looking at spending power this generation
has over $1 trillion in spending when looking at the United States alone. Millennials
also make up as much as 75% of the American workforce by the year 2025. This
generational grouping also sees that social action is more important when
monetary value. This so considered to be true when about 87.5% of Millennials
disagree with the notion of that money is the best indicator of success. When
compared to the entire population which is about 78%. Millennials are also more
likely to shop at business that have a connection to social enterprise, which is about
89%. One of the key trades of this group was that they were alive during the
September 11 (9/11) terrorist attack.

Social Class: The Middle-class Separation

Upper Middle Class

When looking at the Upper Middle social class, the people within this group are
predominately individuals who have been born in a middle-class family but have
worked their way up the social ladder. Many of them want to join into the Bottom-
Upper or Upper-Upper class ranking as they have gained more power to spend.
According to the Census data, 6.1% of households made about $200,000 or higher
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every year, and 14.1% have made between $100,000 - $150,000 each year. The
Urban Institute argues that this social class that this is growing each year since the
1979 from 12.9% to 29.4% in 2017. This growth from 1979 to 2017 was about 56.1%
in overall earnings in income, or about an average growth of 4.7% each year for the
past 38 years.

Within the Bentonville area there are about 34.3% of the population makes as
average income of $100,000 and more. As earlier stated the national average for
this income bracket that is being focused on is about 20.2% (6.1% + 14.1%). The
difference from the national average of the upper middle-class population and the
percentage of upper middle class in Bentonville is about 14.1%. This means that the
Bentonville area is 41.1% higher than the national average when it comes to the
overall population of individuals or households that fall within the upper middle
class.

Middle Class and the Lower Middle Class

When looking at the average middle-class grouping, they are a group that believes
in the American dream and thinks big. This group of people also were born in the
status, with regard of their parents also being in this class range. This is also the
largest group to be married as well, about 85% of men and 74% who are married
see themselves in the middle class. That is in comparison to 57% of men and 59%
of women who are singe. This is also the group of people who are seen to be
optimistic about the future. The Census Bureau states the about 41.5% of
Americans made between $35,000 to $100,000. The Urban Institute defines that
middle class makes about on average $30,000 to $100,000 per year for a family of
three. When reviewing Pew Research analysis of government data, about 50% of
the United States Population falls in the Middle-Class income bracket that is set by
the Brookings Institution.

In looking to the lower middle class, these people so share the same values as
those in the middle class, but they are set at lower income bracket. The Brookings
Institution defines says that they fall in a range with an annual income at about
$18,871 to $47,177 for a family of three. This does not mean that they are living in
the poverty level because they about 100% to 250% above that income bracket.
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Rather, these individuals are one are one emergency away from causing them to
slip into the Poverty.

When considering the evaluation for the Springfield area we are taking all three
sections of the middle class as a collective and including it into are evaluation.
When looking at the Springfield area there are about 56.1% of the population
makes as average income of $30,000 and more. When looking at the national
average for this income bracket starting at $30,000 and more that is being focused
on is about 61.7% (41.5+6.1% + 14.1%). The difference from the national average of
the upper middle-class population and the percentage of upper middle class in
Bentonville is about -3.4%. This means that the Springfield area is 5.5% lower than
the national average when it comes to the overall population of individuals or
households that fall within the middle-class range. This however could also be
explained by the fact that the Springfield area also has a lower cost of living then
the national average by 12%.

Values
There is not a particular value that is being primary focused on when looking at the
new Bentonville, AR location or in the current store location that being Springfield,
MO. Rather we will be looking to the Bentonville area and the Springfield in context
to being located in the Midwest and in the Bible Belt region of the United States. In
addition, both Arkansas and Missouri are to be considered red states and is
considered one of the key possible factors for this assessment. The values that are
being examined are going beyond the means of politics, but rather just a general
guideline of what can be seen of customers that can be found in the area.

Conservative
At the core of conservatism these individuals like the concept of freedom and
individualism as it seen fundamental for people to flourishes in terms of pursuing
and achieving life achievements. For them they see that people are responsible for
their actions and must be held accountable. They like the status quo to be
maintained rather than dramatic and radical changes that are sudden. This is due
to the idea of wanting to uphold tradition and looking to the past as a reference.
Conservatives have a desire for social order and seeking security even when it
comes to giving up some freedoms. This value description is going to be applied in
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both areas of Bentonville, AR and also Springfield, MO. However, this is going to
have a larger possible impact in Bentonville, AR are due to the age bracket that was
earlier mentioned being that of 35-75 and up.

Liberalism
Theses individuals value the concepts of freedom and individualism but uses a
different criterion. They believe the best way for human flourishing to take place is
with dynamic change to one’s current conditions. Liberals seek change and looks to
challenge the status quo as they have the goal of seeking the truth. They look to the
future, as it is important for them to focuses on, as is the direction that society is
moving forward. They are open-minded to changes that come on a just manner.
They look to others, not themselves, for change, as an open debate that is tolerant
and respectful of differences are important. This value description is going to be
applied in both areas of Bentonville, AR and also Springfield, MO. However, this is
going to have a larger impact in the Springfield, MO area due to the age bracket
that was earlier mentioned being that of 22-38. There are also large Universities
and other institutions of higher learning such as Missouri State University, Ozark
Technical Community College, and Drury University.

Attitudes - Use of Functional Theories

We are using this as a general compass of what kind of people will be living in the
Bentonville area and in Springfield, MO. The Attitudes that are being looked at are
applied in a general manner to the framework of values that have been listed
earlier. The use attitudes are seen as a backdrop that other psychographics will be
working in tandem with as it increases the possible chances of finding a consume
that will fit the narrative of the store's environment and the people that is being
attracted. However, there are some basic functions of attitudes that can be
highlighted, as they seem to correspond with the target market evaluation when
referring back to the demographics in each of the cities. These functions that are
being looked at are also not mutually exclusive as there can be overlap when it
comes to how they are applied.

Utility Function
This function looks to the basic utility when it comes to the decision-making and
buying processes of the target market. Customers are evaluating the product in
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terms of what would make them the happiest in the long-term. Thus, these people
assist the overall basic utility of the product that is being bought and how well the
product is going to work with their lifestyle.
Value-Expressive Function
This function is looked at when a consumer accepts a possible product or service
that changes their social identity. He or she is seeking to change himself or herself
in a manner that is being related to one’s image. This is used as a way to exercise
how they want to be viewed by others. Thus, their main concern is what their self-
image will be.

Ego-Defensive Function
This function is applied when the consumer feels that the product or service is
comprise of one’s own image. Thus, the user evaluates the product if he or she
literally sees himself or herself in the product. This is the most challenging functions
of attitude to work with, as there is a fine like of the consumer accepting the
product or denying the product.

Knowledge Function
This function looks at the idea that the consumer is organizing and providing
structure regarding their attitudes about a product of service. This means that they
are willing to exam the product or service bases on the merits of the product. The
advantage with this attitude is that there is a possibly to change the minds of a
customer with this kind of attitude if presented a compelling case.

Competition
Indirect Competition:

The indirect competition they have are stores in cities like Kansas City and St. Louis.
These stores include places like West Elm, Restoration Hardware, and Crate&Barrel.

Direct Competition:

While no other store in the area provides the style and experience to customers like
Obelisk, there are a few places of direct competition. For example, when shopping
customers may go to places like Target and Home Goods for a more cost-effective
option which will provide them with the similar styles they are looking for. Another
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direct competitor that Obelisk Home faces are specialty upholstery stores in the
Springfield area, such as The Pickwick Company and

Pricing and Sales

Marketing Calendar

Notes:

Merchandise is ordered based on approximately 8-week delivery.

December 2018:

· 12/31- Order merchandise for March Cityscape advertisement

January 2019:

· 1/1- Order merchandise for March Cityscape advertisement

· 1/4- Post on social media about Art Walk tonight; follow posts from all week

· 1/9- Begin creating March Cityscape advertisement

· 1/12- Post Opulence ad on social media

· 1/30- Order Opulence line merchandise

February 2019:

· 2/1- Post about First Friday Art Walk on social media

· 2/4- Order merchandise for April billboard advertisement

· 2/12- Post Opulence ad on social media

· 2/25- Cityscape’s March issue released

· 2/25- Begin creating April billboard advertisement

March 2019:

· 3/1- Post about First Friday Art Walk on social media

· 3/17- Set out Opulence line

· 3/18- Begin creating May Cityscape advertisement

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· 3/12- Post Opulence ad on social media

· 3/29- Order Opulence merchandise

April 2019:

· Run April billboard all month long

· 4/4- Oder merchandise for June billboard advertisement

· 4/5- Post about First Friday Art Walk on social media

· 4/12- Post Opulence ad on social media

· 4/17-Begin creating June Billboard advertisement

· 4/22- Cityscape’s May issue released

· 4/29- Order merchandise for July Cityscape advertisement

May 2019:

· 5/3- Post about First Friday Art Walk on social media

· 5/12- Post Opulence ad on social media

· 5/16- Begin creating July Cityscape advertisement

· 5/20- Set out Opulence merchandise

June 2019:

· Run June billboard all month long

· 6/6- Order merchandise for August billboard advertisement

· 6/7- Post about First Friday Art Walk on social media

· 6/12- Post Opulence ad on social media

· 6/20- Begin creating August billboard advertisement

· 6/24- Cityscape’s July issue released

· 6/29- Order Opulence merchandise

July 2019:

· 7/5- Post about First Friday Art Walk on social media

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· 7/12- Post Opulence ad on social media

· 7/29- Order merchandise for October Cityscape advertisement

August 2019:

· Run August billboard all month long

· 8/2- Post about First Friday Art Walk on social media

· 8/2- Begin to formulate November advertisement for Cityscape’s Magazine

· 8/12- Post Opulence ad on social media

· 8/20- Begin creating October Cityscape advertisement

· 8/26- Order merchandise for November Cityscape advertisement

· 8/28- Set out Opulence merchandise

September 2019:

· 9/3- Begin creating December Cityscape advertisement

· 9/6- Post about First Friday Art Walk on social media

Order merchandise for November billboard advertisement

· 9/10- Begin creating November billboard advertisement

· 9/12- Post Opulence ad on social media

· 9/20- Begin creating November Cityscape advertisement

· 9/23- Cityscape’s October issue released

· 9/30- Order merchandise for December Cityscape advertisement

October 2019:

· 10/4- Post about First Friday Art Walk on social media

· 10/12- Post Opulence ad on social media

· 10/20- Begin creating December Cityscape advertisement

· 10/21- Cityscape’s November issue released

· 10/29- Order Opulence merchandise

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November 2019:

· Run November billboard all month long

· 11/1- Post about First Friday Art Walk on social media

· 11/12- Post Opulence ad on social media

· 11/25- Cityscape’s December issue released

December 2019:
· 12/6- Post about First Friday Art Walk on social media

· 12/12- Post Opulence ad on social media

· 12/20- Set out Opulence merchandise

Advertising & Promotions

Store Marketing Program:

Obelisk Home is currently using 417 Magazine, 417 HOME, and Houzz to reach their target
market. They also use social media platforms such as Facebook and Instagram to showcase
their products and update customers on exciting events.
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New Marketing Plan

Ad’s, Entice new customers, FB, twitter, Instagram.

Instagram Contest

Every week before the First Friday Art Walk there will be an Instagram photo contest to
post a creative photo involving a home decor item. At the end of the day a winner will be
selected and receive a certificate to Obelisk Home.

Location of Ad’s
Two of our ad’s will be in the Arkansas based magazine Cityscape’s. Cityscape’s Magazine is
Northwest Arkansas' longest running and most widely circulated monthly city/regional
lifestyle magazine.

We recommend starting with the Full Page 3X package for $2,658 for the first year. This
means there will be three ads in six months.

According to the special features calendar the we recommend the following months:

March: Before and After Spaces

May: Travel and Leisure

July: Kids, Pets, and Family Fun (This would be a good month to advertise
UnLeashed)

October: Seasonal Happenings and Breast Cancer Awareness

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November: Holiday Guide

December: Holiday Guide

Given examples of Ad’s for each marketing venue

Billboard
Not only are we trying to gain exposure in Arkansas, we also hope to draw in more
customers from the south side of Springfield. Something that was mentioned by the
Obelisk team is that new customers will walk into the store and say that they were
completely unaware that Obelisk existed. One way to reach more people than before is to
advertise on a digital billboard.

There are multiple billboards in the Springfield area but there is one we think will be best
for Obelisk. This billboard is under the Watkins HD company and is located on the corner of
Battlefield and National. This location has a reach of nearly 35,000 car a day. At the rate of
$0.03 for a spot of 10 seconds every other minute, you would spend $8,400 for a year on
 29

this marketing plan. This will reach much more people than the current 417 Magazine does
and will be seen by those from the south side - which is the perfect customer for your
target market.

Something that is beneficial with Watkins HD is the fact that Obelisk would be able to
change the displayed ad at any time with no additional cost to them. We’ve spoken with
Greg Watkins who says that “there is never a charge for production or installation. You can
change or add new designs anytime and as often as you wish and there is never a charge.”
This is perfect for Obelisk home. A potential plan would be to have a new ad for every
season and then the week before artwalk have an ad that announces the featured artist
and some of their work. This is a great plan to attract new people to the location on a
regular day and also during artwalk.

Example Billboard
 30

Information on Selected Billboard

 31

Financial Data (New Product and Services)

Sales

Monthly Sales Plan

Month % of Total Year Sales Sales Plan Justification

January 6% 53,400 Sales will be lower

these months due to
it being the start of
the new year.
Customers will also
not be spending as
much due to the
recent holidays.

February 6% 53,400 Sales will be lower

this month due to
customers not
wanting to do much
work on their
homes. This can be
due to the weather
and wanting to save
money. March issue
of Cityscape is
released.

March 7% 62,300 Sales this month are

a percent higher due
to spring coming
and customers are
starting to look into
working on their
homes. March
Cityscape ad will be
running.

April 7% 62,300 Sales this month

stay the same due to
 32

taxes being paid,

which leads to
customers being
more conservative
with money.

May 9% 80,100 Sales are a percent

higher this month
for customers are
starting to plan to
re-style their homes.

June 8% 71,200 Sales will be a little

lower for this time
of year many people
on vacations.

July 12% 106,800 Sales this month will

be higher due to the
advertising on the
billboard and in the
magazines.

August 8% 71,200 Sales are steady this

month due to the
monthly advertising
plans set in place.

September 7% 62,300 Sales are steady this

month due to the
monthly advertising
plans set in place.

October 7% 62,300 Sales are steady this

month due to the
monthly advertising
plans set in place.

November 12% 106,800 Sales will be

increased this
month because of
Thanksgiving and
Black Friday. People
will be starting their
 33

holiday shopping
and wanting to
decorate their
homes.

December 11% 97,900 Sale will be higher

this month due to
holiday shopping
and customers
wanting to decorate
their homes for the
holidays.

Total 100% $890,000

Open Inventory
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Gross Margin Plan

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Diffusion line

Opulence by Obelisk Home

Mission statement: Design your Legacy.

The mission and concept behind Opulence by Obelisk is to pay homage to Obelisk Home
and its founders. Looking to history as a guiding principle to design, Opulence that concept
and makes it feel modern. The brand image revolves around the idea of something fun,
lighthearted, and quirky. There is a central theme within the brand of taking contrasting
ideas and combining them to give that timeless feel by revolting against the boundaries.
The goal is to use the future to shape one’s legacy.

Theme and Color

The theme behind the collection is about challenging what the concept of time is and
mixing the past and the present to create the future. We felt that time is something that
most people feel that they cannot take control of, so we wanted to give them that power.
This meant that looked to the 70’s and the people of Venice beach and the work of writer
Joan Didion as this was before the loss of her husband and daughter. The color that felt the
most compelling was pink. The color is stands out like no other color with the ability to
grabs one’s attention. Pink is a color that has a traditional notion that has been defined by
women. This time we wanted the color pink to be for both sexes.
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