The Business Plan of Top Dawg Shirts

Management 4320

Joel Corona, Roby Robinson

Chase Armstrong, Melesio Mejica

04/06/2022
 Top Dawg
Business Plan

Marketing

March 2022
 MARKETING

A. Marketing goals and Objectives

Top Dawgs major goal is to purchase needed machines and supplies and begin work on

our merchandise, develop our social media presence, and create a revenue of $250,000

within our first year. We plan to expand within the first 5 years of operation to a bigger

location that will allow us to supply internationally as well. We will be able to market to

anyone with a social media account because that is our main means of advertising with

our target market being dog owners or advocates. Our overall goal is to become a

profitable yet charitable organization that delivers quality products to our customers, we

pledge 1% annual revenue to various dog charitable organizations in hopes that our

business can make a difference.

Objectives:

1. To create revenue of $250,000 within the first year.

2. Increase sales a minimum of 9% going into Year 2 with a sales

revenue figure of $277,000.

3. Average 200 customers trafficking our website everyday, averaging a

minimum of 13% purchase completion.

4. Increase sales a minimum of 9% going into Year 3 with a sales

revenue figure of $304,000.

 5. Grow company assets within 5 years to a bigger location with more

machine capability.

6. Raise awareness through out charitable donation totaling 1% of all

sales revenue, looking to double our year 1 donation by year 5.

B. Product Description
Top Dawg makes and sells solid monotone shirts with various designs of dogs displayed

on the front. The 4 colors that we will offer will be black, white, maroon, and navy blue.

This simplicity of choice does not come from our lack of ability to offer other colors

rather our dedication to perfecting 4 colors initially. Customers will be able to purchase

and wear our shirts with pride for two main reasons, one, they will be able to display their

passion for animals, and two, they will be able to donate and help charitable canine

organizations. Thus, we will be able to make a contributable exchange with the customer,

we get their business and donations and they receive quality products as well as the

benefit of donation. The combination we offer are below.

Black Small Medium Large X Large XX Large

White Small Medium Large X Large XX Large

Maroon Small Medium Large X Large XX Large

Navy Small Medium Large X Large XX Large

*All combinations able to receive all print designs.
C. Control Methods

Quality Control

100% Inspection Method:

This method is conducted by reviewing and inspecting every single part of the product

and the machines that make the product. Every aspect of our company will be thoroughly

checked and reviewed every month. This will allow us to maintain a great product as well

as a safe work environment.

Taguchi Method:

This Method of quality control emphasizes on research and development to make our

product better in the future. This method also reduces the failure of products and tries to

eliminate variances in production before they occur.

Inventory Control

Perpetual Inventory System:

This system allows us to track inventory in real-time. This means whenever a product

sold, we scan the barcode and remove that product from our inventory database. Vise-

versa when we buy products. This system is highly detailed and accurately accounts for

inventory levels without the need for manual counts.

Shelf Strips:

Shelf strips will allow us to quickly organize our t-shirts by color, type, etc. This will

save the time for building our stock shelves by automating multiple strips at a time; this

being compared to manually filling out strips ourselves. The paper that will be sliding

into these strips will be made by using google-based software.

 Window Displays:

As a t-shirt retailer, we feel its best for us to make window displays in all of our stores.

This will allow us to gain interest from potential customers that walk by our store. In

order to display our product correctly, we will be using top-half only mannequins to put

our t-shirts on to attract potential customers.

D. Target Market
Our Target Market we will use different variables to determine the personal interest and

the time which consumers shop. Also our shirt size will be variable which will be small,

medium, large and extra large. Our company's target market generally must be large

enough to earn a profit. Our business will be for male and females and also for kids

too.Conversely, a large and tall men's shop focuses its marketing efforts on tall and

heavier men. Similarly, some small companies market to specific age groups.

E. Place
Top Dawg’s physical headquarters address is 1531 E Houston St, Tyler, TX 75702.

The reason for why this site was chosen is because it is the largest garage space available

of the four founders. This is where all the day to day operations happen aside from

shipping. This set up is only temporary until we have scaled the business large enough to

lease or buy a facility, making the decision worthwhile long term to the company.
F. Price

Our Prices:

Example: Retail Price Cost Gross Margin

Black $26.00 $11.70 $14.30
White $26.00 $11.70 $14.30
Maroon $26.00 $11.70 $14.30
Navy $26.00 $11.70 $14.30
Total $104.00 $46.80 55%
Selection

We expect to be slightly above the average gross margin for retail stores in the U.S. The

average gross margin for retail stores in the U.S. is 53.33%. We would be hovering

around 55%. We feel very confident our profit will equal out to what our research says to

expect.

Pricing strategy:

Top Dawg Shirts will have discounts for shirts the first weekend of every other month.

We plan to give out a buy 2 get one half off discount. This will allow us to attract more

customers to buy our products. But, this is a one time deal for each customer, meaning

customers can’t buy 4 shirts and get two half off.

 In order to avoid competitive price wars with our larger competitors, Top Dawg Shirts

will purchase a little more than half of its products from stores in the East Texas area; this

includes the DFW area. Our store needs to maintain at least a 53.33% gross margin rate.

In order to do this, our store will be pricing our products at a 55% gross margin rate. This

will give us wiggle room if we decide to drop any items off of our product list or if our

suppliers discontinue any goods we may need.

G. Promotion
Our Company will use the following advertising/promotion sources and we will budget

20% of annual sales for these expenditures

● Website

● Radio

● Google Ads

● Twitter

● Instagram

● Partnership with Influencers to promote merchandise

Our team decided to focus our resources and allocate them towards the least amount of

sources of media that will reach out to the biggest amount of audience. However, some

consumers don't use some sources of media listed above therefore we have diversified the

variety of advertising outlets. Please see our attached charts for analysis breakdown

of percentages on the next page.

H. Competitors:
Here are some companies and online designs that will be our competitors:

● DesignAShirt

● Target

● Uberprints

● Designhills

● American Graphics

Their Influence Over Us: The change in their prices or the way they manufacture the

shirts, the power to cause the changes on customer’s minds to buy their designs over us.

Our advantage: Best quality, being able to interact with customers by exchanging

products. The best advantage that we have over all the competitors is our way of

promoting our designs and the percent of the budget we will do annually.