Write a marketing plan based on the Dillard\'s retail chain opening the restaura

ID: 2746466 • Letter: W

Question

Write a marketing plan based on the Dillard's retail chain opening the restaurant you have chosen inside each of their retail outlets. restaurent like CHILIS

Use facts about Dillard's where you can and use your imagination and innovation when you can't.

Below is the marketing plan outline:

I. Background (1 page minimum)

A. Brief history of organization

II. Situation analysis

A. Environmental trends

- Macro and Micro if appropriate

B. Stage in industry/product life cycle

C. Opportunities, and Threats

D. Strengths and weaknesses

E. Analysis of strategy

- Customer profiles

- Market segmentation

- Target market(s)

F. Competitive Environment

III. Conclusions and Recommendations

Explanation / Answer

Background

William Dillard, the founder and Chairman of Dillard’s, Inc., developed a keen interest in retailing at an early age. He started his success story in 1938 when, with $8,000 borrowed from his father, he opened a small store in his wife's hometown of Nashville, Arkansas. By that time, he had better than 12 years of part-time and summer experience working in his father's Mineral Springs, Arkansas store. After completing college (University of Arkansas-1935) and graduate school (Columbia University School of Business-1937), Mr. Dillard began working as a management trainee for Sears Roebuck & Company. Shortly after completing the training course, a period of only seven months, Mr. Dillard left Sears and opened his first store.

Even in the beginning, Mr. Dillard was well aware of the value of effective advertising in building a business. With each move/expansion, the company has stressed value in its advertising. Aside from a short period during World War II, the Company continued operating and expanding its Nashville location. In 1948, Dillard, looking for more growth prospects, sold the Nashville store and used the money, along with some outside financing, to buy controlling interest in a Texarkana (AR,TX) store. His competitive strategy was to offer attractively priced national name brand merchandise along with customer credit. By 1953, it was the leading store in Texarkana. From Texarkana, Dillard expanded to Tyler, Texas in 1956 with the purchase of an existing store. In early 1960 he entered into a similar transaction for a Tulsa, Oklahoma store which was twice the size of the now thriving Tyler operation. Like his other acquisitions, he was quick to make it profitable and to pay down acquisition-related debt.

The department store operator opened his first store in a shopping mall in 1964 in Austin, TX, a decision which proved to have significant implications in the chain's future growth strategy. One of the cornerstones of Dillard's philosophy is that location is the key to success. Meanwhile, the Company had established a credit subsidiary, purchased two central Arkansas department store chains, relocated its headquarters to Little Rock, Arkansas, implemented a centralized computer system, realigned its capital structure and used its existing store base as a vehicle for expansion into mall locations. Throughout the late sixties and beyond, this aggressive mall expansion would continue.

In 1969, Dillard Department Stores, Inc. went public, offering its Class A Common Stock to eager investors for the first time on May 9. By the early 1970's, the chain had moved into Louisiana, Missouri and New Mexico and had expanded its presence in Texas, Arkansas, and Oklahoma, thus necessitating a divisional organization within the parent company. In 1974, the purchase of five stores from Tandy's Leonard's Division gave Dillard a strong foothold in the Dallas/Fort Worth market.

Today, a major part of Dillard's marketing philosophy remains based on Mr. Dillard's sound selling methods, keen attention of day-to-day organizational details, alert selection of personnel and hard work. Presently, the chain consists of approximately 300 stores spanning 29 states, all operating under one name - Dillard's

Situation analysis

Environmental trends

Dillard's, Inc. ranks among the nation's largest fashion apparel, cosmetics and home furnishings retailers with annual sales exceeding $6.5 billion. The Company focuses on delivering style, service and value to its shoppers by offering compelling apparel, cosmetics and home selections complemented by exceptional customer care. Dillard's stores offer a broad selection of merchandise and feature products from both national and exclusive brand sources. The Company operates 273 Dillard's locations and 24 clearance centers spanning 29 states plus an Internet store at www.dillards.com.

Stage in industry/product life cycle

In industry life cycle the organization stands in saturation phase, It has high income now and is having systemized operation with minimum infrastructure development cost causing the organization to earn maximum revenue by reducing the cost.

Opportunities-

The Class A Common Stock of Dillard's, Inc. is traded on the New York Stock Exchange under the ticker DDS.

They operate approximately 300 stores spanning 29 states. They operate all stores under one name – Dillard's.

Organization is having global market and local market both which gives a wide market to the organization for the sales of their product.

Threats

Government changes impacts the business severely as the existing leader may be of different view

-Since the shopping is going through revolutionary phase and new generation is switching to online shopping hence technological challenges may create big trouble

-increasing costs

Cost which is levied to the operation is increasing due to inflation and business may get impacted for the changes

Change in tax rule will spread panic In the organization

Strengths

Labour cost is low being established organization’
-Business is old and employees are experienced helping them to maintain the same quality
-Being into saturated part of industry life cycle the revenue is high
-Domestic and international marked is available for trade
For loans and other financials support financial institutions will be available to ensure the help is extended

Weaknesses

Debt for the organization which is yet to be cleared
Size of business units are very small

E) Analysis of Strategy

This strategy involves in deciding the type of customers, their interest, investment in the business, risks, profits etc. The process of analyzing how to start up a business, what could be the revenue and identity risk and solutions to overcome them is analysis of strategy.

As you wish to open a Chillis Bar and Restaurant, you should first do the basic ground work and identify few things which would effect your business in positive or negative manner.

Customer Profiles-

It is very important to identify which segment of the customer you wish to target based on their status. Accordingly, decision can be taken to design Chillis Bar and Restaurant. As there is saying 'First look is the Best look', creating good ambiance should be primary goal.

Market Segmentation-

The process of segmenting the customers based on age of customers, their interest, locality, ability to spend etc is Market segmentation. For example, children generally like ice-creams, brownies, chocolates etc, wherein elders have different taste.

Based on the locality of customer, their food taste and food habits differ. Some like spicy, some like sweets, some like Chinese etc. The ability to spend depends on the status of customers.

Target market(s)-

If the customers like the food at your restaurant, is more likely to get profits and reputations. Hence, is important to identify the interest of customers based on the locality.

For example, in china, the Chinese food have good scope to run the business. However, innovative ideas to prepare Chinese with Indian spices etc may attract Indian people who go china for studies.

Competitive Environment-

Identifying the competitors in the market help to avoid the risk which may occur in the business. It is ideally good to choose the locality where there is no near by Bar and Restaurant as it is a start-up based restaurant. Later on, once good reputation and fame is developed, business can be expanded to near by places of competitors.

Conclusions and Recommendations

Being into the 21st century shopping generation, store may get an impact however the company needs to make significant investment to develop its online units and making it more suitable for the current generation