TheWho_MommaMia_FinalBusinessPlan

TheWho_MommaMia_Fina - 1 MEETING ALL OF YOUR PREGNANCY NEEDS Prepared By Ashley Stephens CEO 2 Executive

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Unformatted text preview: 1 MEETING ALL OF YOUR PREGNANCY NEEDS! Prepared By Ashley Stephens CEO 2 Executive Summary Maternity leave is not a common option for expecting mothers anymore. More women are entering the workforce, more families are financially struggling from the recent economic recession and high unemployment rates create heavy job competition that puts pregnant women at risk of losing their jobs if they take a leave of absence. The Pregnancy Discrimination Act and the Family & Medical Leave Act, the two federal laws in place to help expecting mothers and families, provide no job protection to expecting parents and offer unpaid leave for only 60 percent of workers, and millions of them cannot afford to take the unpaid leave it provides. Traditional marketing may portray moms as perfect and happy multi-taskers who can work, take care of their children and their husbands. But in reality, the average expectant mother is working part or full-time to be financially secure for her baby on the way and does not have the time to socialize and shop for her pregnancy needs. She suffers from physical disabilities like back pain that makes it difficult to have the energy to work and continually fears of miscarriage from all the stress received from trying to finish all her tasks in her condition. The expectant mother is most likely a woman in her late 20s to 30s who still needs to pay her student loans and is more and more likely to be unmarried. According to the US Mom Report 2010 and the National Partnership for Women and Families, 1 in 4 moms are college graduates and both parents work for pay in more than 78 percent of today’s families. The expecting mother has a hearty appetite for learning everything she can about her pregnancy most likely through the Internet and social networking sites. Momma Mia will provide an online subscription service that produces and distributes monthly gift packages to expecting mothers that hold items for one’s pregnancy needs. We are taking away one less worry from the lives of these busy expecting mothers by bringing all the things they would need for the pregnancy to their doorstep. Unlike our maternity retail competitors like Destination Maternity and Babies R’ US, Momma Mia would provide a shopping experience customized to each stage of pregnancy and the customer’s preferences and save the time of driving to competitor stores in their weak condition. But most importantly, we would let our expecting mothers know that they are understood, cared for and given the very best support through our gift packages that will also hold pampered items for mothers. There is currently no other online gifting service for pregnant women. Momma Mia aims to provide and bring awareness to high quality and innovative products to customers by partnering with companies who would like to test their newly developed products that are proven to work but may not have much awareness yet. Thus, our time-to-market will be considerably quick compared to physical retail stores that only have enough space and inventory on their shelves to sell only the typical, top-selling maternity items. Our main barrier to entry will be supplier power as we may not have enough leverage in the beginning to get the best deals on products and we might have to take on some liability for customer complaints on certain products within our gift packages. As an LLC, we will do our best to reduce our liability risks and by partnering with companies who need customers to sample their innovative products, we would most likely pay a discounted cost to obtain products for our gift packages. Momma Mia possesses aggressive online marketing and word of mouth strategies to quickly create positive brand awareness among our target market of 20 to 40 year old women who are pregnant or in their post-birth periods and are Internet savvy and have an increased need to socialize. Our company will take advantage of Search Engine Optimization (SEO) 3 and the increasing use of social media to market to our primary customers of 20 to 30 year old expectant mothers. Customers will pay a low monthly fee of $75 for our gift packages. We will conduct all our operations within a designated warehouse facility and will use our executive team, staff and interns to handle the distribution of our gift packages in a low cost and efficient way. Momma Mia plans to employ Enterprise Resource Planning (ERP) software that enables the flow and recording of financial transactions and orders and allows us to store and organize our data into a sufficient database. In terms of our products, the R&D costs will be passed onto our suppliers who supply the products. We will invest approximately 31% of all expenses in our first year and decreasing to 22% of total expenses by year 5 into the R&D and technical maintenance of our database and website innovations. Since Momma Mia will be shipping thousands of baskets all over the United States, we plan to organize efficient and low cost operations to our strategic advantage. We plan to lease the Airport Trade Center located in Louisville, KY because of its close proximity to United Postal Service’s (UPS) main shipping hub called Worldport and it is particularly well served by all transportation modes. Momma Mia’s CEO is a graduating Finance major who is competent to oversee the logistics of our company operations to be profitable. We also have a CFO with a strong Accounting background in order to ensure our financials are accurate and focused on increasing profit. Our executive team consists of our COO who graduates with degrees in Marketing and Supply Chain Management, who will use his market research and promotions skills to build the brand awareness of our company service. His knowledge of supply chain logistics contributes to our company’s operations and management of distribution channels. Our CMO also has a background in entrepreneurship and the arts and will help oversee marketing and product/service innovations for the growth of the company in the long run. We have recruited a team of Board of Directors, which includes a Registered Nurse (RN), a Retail Maternity Director, a Maternity Education Coordinator and a Marketing Expert for businesses aimed towards mothers. Momma Mia’s operating margin is 61% of sales. Our cost structure is more variable and many of our expenses on the income statement can be adjusted based upon the continual evaluation of our company’s needs and financial performance. Our business model primarily relies upon re-packaging pre-manufactured items, and gifting them in a way that is currently not present in the market. Because of this, our firm will experience a large cost of sales and a low contribution margin until we are able to lower this logistically by volume. Based on our current financials with all expenses as estimated in the income statement, Momma Mia will break-even in the 2nd quarter of year 2. At the end of year 2, we will have a positive net income to begin re-investing in our business or make payments to our investor. Our industry is comprised of approximately 4 million women who become pregnant each year and by the then end of year 5, we would like to obtain sales equal to 1% of the market, which is 40,000. Based on our current cost structure, Momma Mia expects to see profits of approximately $647,000 by the end of year 5. The majority of the initial investment will be used up during year 1 to cover expenses until we are able to operate with profit beginning in year 2. Our executive team plans to make an initial investment of $20k per person (total of 4 $80k), as well as an investment of $100k from an outside investor. For an investment of $100,000, Momma Mia will provide a 4% share of equity in the company. At the end of Year 5, Momma Mia will pay a lump sum of $541,542 to the Angel Investor. 5 SECTION I: The Company, Concept and Service The Company and the Concept In October of 2011, CEO Ashley Stephens spoke with three close family members; all of which were first time mothers. In speaking with them it was evident that while they were excited to be pregnant, they were also overwhelmed from preparation process. These women are working professionals with limited time to dedicate to research and purchase of all the items necessary for pregnancy. Momma Mia’s executive team realized an opportunity to design a one-stop maternity brand that offers convenience, expertise, and through an online subscription pregnancy care package service. Momma Mia (Maternity and Infants’ Apparel/Accessories) provides monthly pre-customized care packages based on the gestational trimesters of expecting mothers. Through consultation with maternity retail experts and suppliers, Momma Mia developed a total of eight care packages that will be sold through MommaMia.com. Each basket is designed to meet the needs of a specific trimester and include items like prenatal vitamins, baby name book, pregnancy pillow, stretch-mark cream, and other products. Momma Mia was started after research showed that the market of pregnant women and mothers in general are vastly misunderstood and underserved. Our primary focus is serving pregnant women because that is the most vulnerable time in a woman’s life considering the fact that pregnancy is a temporary disability. The Service Mix Momma Mia offers a wide product and service mix by selling pregnancy items including food products and nutritional supplements, informational books, for-comfort items such as comfort pillows, and other health equipment and pampering items. Gift packages with these pregnancy items will generate our primary share of revenue. Momma Mia plans to expand its product mix by selling post-birth items for the mother and newborn and also sell self-help books and pampered gifts for the physical and psychological adjustment of fathers during pregnancy and post-birth. Momma Mia’s service ultimately saves working mothers the time of searching and shopping for the best supplies for their pregnancy by providing them with a one-stop platform for all pregnancy needs along with a variety of items that are proven effective by our panel of experts. Customers are able to subscribe to our service for a monthly fee of $75. Our service provides value through convenience, affordability, and expertise. In addition, customers will also receive savings at the price of $75 per basket is two times lower than the retail value of pregnancy items. Momma Mia will differentiate its service by providing a customization feature through which customers can pick and choose which products among the product options they would like their gift packages. Momma Mia plans to maintain our competitive advantage and create barriers to entry by keeping our expertise and knowledge that we receive from our board of directors and panel of experts as a trade secret. We will also establish non-compete 6 agreements with our suppliers and distributors to ensure that these wholesalers would not stand in our way of obtaining substantial market share with the market of pregnant women and mothers. Entry and Growth Strategy Momma Mia will base our services within the Southwest of the United States because that is where the mean center of population is and the we’ve noticed a trend of people moving there and population growth are rising most quickly in the southern states. We see our company expanding across the United States and internationally. We also plan to expand our market outside of mothers and serving fathers and career professionals in general who do not have time to shop for daily needs. SECTION II: THE INDUSTRY ANALYSIS Momma Mia operates within the Women’s Clothing Stores in the US industry (NAICS code: 44812 and SIC code: 562103). Types of apparel in order of popularity segment the industry include: Women's shirts, blouses and other tops Women's pants and jeans Skirts and dresses Women's outerwear and suits Maternity wear The size of our industry is $40.6 billion dollars and boasts an annual growth rate of 3.4%. The industry’s life cycle is in the early stage of maturity. C. Discuss the structure of the industry at present. The concentration and competition levels in the “Women’s Clothing Stores in the US” industry are low because there are only a few major players as shown that hold relatively small market shares. The major players are Ann Taylor Corp. and Charming Shoppes Inc. with the highest market shares of an average 5%. The concentration and competition levels in the e-commerce industry are also low. The major players are Amazon.com with a market share of 12% and eBay with 2.5%. 7 Key Trends in the industry Women's apparel stores will recover from the recession, with industry revenue and profit growing over the five years to 2016. Driven by the slow rebound of consumer sentiment and personal disposable income, women will go back to purchasing apparel from specialty women's stores. Still, growth is not projected to be very fast, especially in the near future. As the national unemployment level recedes in the latter half of the period, revenue is expected to grow more rapidly, increasing 3.6% in 2014 and 4.5% in 2015. Consumer sentiment is also expected to increase rapidly during these years, stimulating more clothing purchases on the basis of fashion rather than function. Women's clothing retailers will enjoy solid profit margins in the latter years of the 5-year period. Profit is expected to grow to 10.6% of revenue by the end of the five years to 2016 (IBISWorld). Operators will likely use cost-saving tools at their disposal, such as internet social network marketing, which is cheaper than traditional marketing and advertising and allows companies to build their brand among their target markets. Continued low-priced import sourcing will contribute to additional cost savings. Domestically produced clothes will continue to be replaced by their lower-cost counterparts, sourced from countries like China and Vietnam, allowing retailers to obtain lower purchasing costs from upstream suppliers and wholesalers. The difference will result in larger profit margins by the end of the five-year period. Key Success Factors The key success factors for this industry are superior cash flow controls and debt management, attractive product presentation, having a clear market position, establishment of brand names, ability to control stock on hand, experienced work force, proximity to key markets and production of goods that are currently favored by up-to-date fashion trends. Our physical retail store competitors are especially vulnerable in this economy due to their high costs associated with rent, customer service and material suppliers. Mama Mia would slash these high costs by making the customers do the work of customer service by enabling them to pick and choose their products and customize their packages themselves. In this slow economy, customers are less willing to pay the rising prices that many of these retailers are applying due to high material costs. Also, even the very few major players within our industry have very small market shares, which give Mama Mia a great faith in our ability to successfully compete with our competitors. Financial ratios for Women’s Clothing Retail Industry: Key Ratios Revenue Imports/ Exports/ per Wages/ Employee Averag IVA/revenue (% demand (% revenue (% employe revenue (% s e ) ) ) e ($'000) ) per est. wage($) 200 2 30.6 0.0 N/C 116.4 13.3 7 15,508. 5 200 3 200 4 200 5 200 6 200 7 200 8 200 9 201 0 201 1 201 2 201 3 201 4 201 5 201 6 8 31.0 0.0 N/C 120.6 12.5 7 31.2 0.0 N/C 114.1 13.1 7 28.9 0.0 N/C 117.3 12.9 7 27.7 0.0 N/C 115.8 13.0 8 26.5 0.0 N/C 116.1 12.9 7 19.6 0.0 N/C 116.1 12.4 7 20.6 0.0 N/C 116.0 12.3 7 21.1 0.0 N/C 118.6 11.9 7 21.9 0.0 N/C 119.1 11.8 7 23.1 0.0 N/C 119.5 11.8 7 24.6 0.0 N/C 118.5 11.9 7 26.1 0.0 N/C 119.2 11.9 7 27.1 0.0 N/C 120.5 11.8 7 27.0 0.0 N/C 122.8 11.7 7 15,088. 7 14,925. 1 15,086. 5 15,041. 5 14,995. 6 14,432. 8 14,213. 4 14,054. 7 14,015. 1 14,069. 6 14,093. 1 14,213. 8 14,272. 9 14,343. 1 Section III: Market Research and Analysis Definition of Relevant Market and Customer Overview Momma Mia plans to create business concepts that appeal to expectant mothers in the US, between the ages 25-45 and who are in their 1st to final trimesters of pregnancy. Our company plans to primarily establish brand awareness among expectant mothers located in the Southwest regions of the US where birth and population growth rates are the highest (US Census 2010). Momma Mia’s target market is based on specific parameters, which include: age, income, educational background, ethnicity, stage in pregnancy/motherhood, and marital status. As a pregnancy gifting service, we aim to expand our target market to post-birth mothers, husbands and other close family members and friends. Essentially, our company aims to primarily reach out to the sector of the maternity market that consists of working professionals with disposable income. 9 Market Size and Trends Among women, 51.1 million fall into the prime birthing years. From these 51.1 million women in their birthing years, we estimate our primary market size to be 4 million women per year, which is based on the average annual number of births in the US. The birth rate for women in their twenties, the main childbearing years, fell 2 to 3 percent, but the rate for women aged 40-44 increased 4% to 9.9 births per 1,000 women, the highest since 1967 (National Vital Statistics Report). Since birth rates among women in their prime to late 40s are increasing, we expect an increase in market size. This is a huge opportunity to target working mothers who does not have time to shop around looking for the best products. Since women are giving birth late into their careers, this service will help them to save time in preparing for a child. The increasing age and educational levels of new moms has widespread economic implications because they are more likely to be employed and have substantially higher incomes. As a result they spend far more on goods and services for their children than the younger moms of yesterday. For example, the Bureau of Labor Statistics reports a 50 percent increase in the past decade in spending on childcare services for families with children under 6 years old. Therefore, we project a market expansion of .5 million customers over the next few years. Our industry will also experience a projected growth rate of 3.4% within the next five years (IBISWorld). Based on 4 million potential customers and a price of $100 for 5 years, the estimated market size is 61,337.82 units and $19.63 million dollars. Buyer Behavior Momma Mia’s primary market will be expecting working mothers who are the primary decision makers when it comes to spending for themselves and their family. Mothers are 44% of the women’s market but they account for 51% on spending food, 49% on spending on health and beauty aids and 47% of spending on clothing. They are presumed to be Internet savvy and will primarily look online for information, products and services related to pregnancy and this would hopefully be our point of sale (US Mom Report 2010). Unfortunately 69% of women don’t get prenatal care during their first trimester (US Mom Report). This means that most women don’t start researching about their pregnancy until the 2nd or later months of their pregnancy period and thus, would not become aware of or utilize our service until then. That means from start to finish our primary market would utilize our service for about 8 months. To lengthen the period of commitment with the customer, we plan to expand our services to post-birth mothers. When women find out they are pregnant they become like sponges, absorbing as much information they can about products, services and pregnancy. Shopping characteristics in new expecting mothers are that they are extremely well informed consumers, early adopters, approval seeking, and shop a variety of stores (U.S Mom Report 46). According to the US Mom Report 2010, 55% of expecting mothers do become early adopters within the maternity market and 73% are not brand loyal. This information allows us to believe that hopefully most of these expecting mothers will try our service within the first year. 10 Pregnant mothers can be easily reached through promotions and distribution channels like stated before earlier. Momma Mia’s primary research was conducted by distributing surveys through social networking sites designated for pregnant women. 81% of the 151 expecting mothers who responded stated that they primarily look online for information regarding their pregnancy and related products and/or services. “Dad shoppers” are not brand loyal and are Internet active as well. Therefore, both expecting mothers and fathers would be easily reached through online marketing (US Mom Report). There are many dos & don’ts moms do when shopping. 52% of mothers go to a variety of stores, 60% shop specials and sales and 44% read labels. This data tells us that moms are very informed consumers and price sensitive. The “don’t” of moms are also interesting; 74% of moms do not give into kid’s requests, 73% don’t think of shopping as boring, and 53% don’t decide what they want before shopping. This information helps us construct a shopper’s profile. Mom shoppers research frequently, use the Internet extensively, and are open to advertising, family centered and a bargain shopper (US Mom Report 2010). Market Segmentation and Targeting Momma Mia’s primary market of expecting mothers will be further segmented based on age, income and number of children. Common demographics of our target market would be expecting women, between the ages of 25-45, with college education, and disposable income. We expect first-time expecting mothers who are between the ages of 20-34 with disposable income to be our first customers. This segment is more internet-savvy and would look more to online sources like the company website for information and accounts for 75% of expecting mothers. We expect to attract the growing market of older expecting mothers ages 35 and above as well. Although experienced mothers with 1 child or more feel confident concerning their knowledge of pregnancy and thus, would look less online for information. But through our primary research, the majority of our survey respondents who are experienced mothers have stated that they would be interested in purchasing Momma Mia’s subscription care packages if it includes new products that they have never heard before that are fun and pamper to their needs. Although we are targeting to women, Momma Mia is a service anyone can purchase for a loved one who is expecting. The person who purchases this service is valuing time. This leads us into the person’s psychographics. When we look at psychographics we focus mainly on a person’s lifestyle. Personality values, attitudes and interests are all factors when evaluating if this person is part of our target market. When looking overall at potential customers, there are certain things we desire when understanding her life style. This should be an individual who is busy. At the current time in their life their career is at primary focus. Worrying about the pregnancy was the last thing this individual was focus on. This is the type of person that will most likely work up until the last possible stage in their pregnancy. Through our research we recognize that women will become highly informed about her pregnancy primarily by Internet research. This has allowed us to bring the best products to their doorstep without all of the time and energy wasted on finding and shopping for all of their pregnancy needs themselves. Expecting women are feeling progressive and open to new things as their world shifts and changes. The overall emotional state of a pregnant mom is excited but scared. Pregnant women’s greatest concerns are they have lost control of their body and the health of their 11 child. These are positive effects to our market impact because this shows pregnant women are open and willing to buy new products and services for her body and for the health of her child Competition and Competitive Edges Mama Mia has identified key competitors within our industry which include Destination Maternity Corporation, Belly Bandit, Ann Taylor and Babies R’ Us. Destination Maternity Corporation: The main strength of this company is that they currently have a major market share within our industry. The firm is currently the world’s largest designer and retailer of maternity apparel. They have also used a market cannibalization strategy through which they have diversified their brand through various subsidiaries targeted towards the maternity market. Their subsidiaries include Motherhood Maternity, which sells maternity clothing, and A Pea in the Pod, which sells products applicable for pregnancy symptoms. This diversification strategy enabled them to gain a larger market share by reaching different demographics among the same target market of mothers. Customers would buy from this company because it is the most well known brand of our competitors. But they would face problems of an increasing consumer turnover rate because after their pregnancy period is over, women would no longer feel the need to purchase their products. Belly Bandit: Belly Bandit finds its strength in its marketing and differentiation of their target market. This company has recently gained much publicity with celebrities including Christina Applegate, Kourtney Kardashian and many others dedicated to promoting their products. Unlike other competitors in the industry, Belly Bandit focuses primarily on women going through the post-birth period. Customers would buy from them because of the celebrity adoration they’re receiving and because it is one of the few companies devoted to women, post-birth. Women might abandon this company due to the fact that they do have a very limited number of products. Ann Taylor (LOFT): Ann Taylor’s strength is in their substantial market share within the industry because it is a well-recognized brand and available in many locations around the world which brings convenience for the consumer. Also, they not only offer maternity wear, but clothing for all types of women which would prevent a high consumer turnover rate because women could still shop in Ann Taylor even after their pregnancy period is over. Expectant mothers could quite possibly not shop in LOFT stores because it does not provide anything other than clothing and shopping at a store 12 that sells both maternity clothing and supplies would be more convenient. Amazon.com Inc: Amazon.com is a well-established web retailer that sells a vast variety of products, a lot of which are not available in stores and has a substantial market share of 12%. They efficiently sell and distribute their products at low prices, which attract price-conscious consumers. One of their core weaknesses is that they are not a specialty service and our target market would have to search for extensive periods of time to compare and find what they need due to the vast number of options. Shopping on this site can be a time-consuming and confusing process, which might push customers to leave the site. Substitute products and services are midwife services, non-profit organizations for expectant mothers, hospital centers, plus-size clothing stores, online retailers that sell a diverse array of products and stores that sell maternity-related books. These representative key companies are the following: Craigslist – Provides midwife service offerings. New York Presbyterian Hospital – Provides specialized medical care for pregnant women. Charming Shoppes Inc. (Lane Bryant) - Plus-size clothing stores that can provide clothing that also fit women in maternity. eBay - Online retailers that also sell a wide collection of maternity products through its wholesalers. Barnes and Noble - Brick and mortar store that sells educational books for pregnancy. Citrus Lane - Provides a subscription gifting service for mothers with newborn babies. Gifts are primarily for the care of their babies rather than the mothers themselves. Strengths and Weaknesses Strengths: Many brands have done a good job in establishing a clear market position by differentiating their target market and establishing brand recognition for their specialization in maternity apparel. Weaknesses: Many of our competitors fail to meet the needs of convenience and a diverse array of products for expectant mothers. Physical retail stores require women to leave their house and take the time to drive to shop to buy related apparel. Also, our competitors often only provide one or the other for maternity products due to their limited product lines. For example, Ann Taylor only provides maternity clothing. But even chains like Destination Maternity Corporation, which provides both clothing and maternity comfort equipment, faces problems with customer turnover rate due to their limited target market. Also, our competitors face high costs due to a high level of capital intensity because stores devoted to women and maternity apparel require high levels of customer service. Cost Structure 13 Women's clothing retailers are expected to achieve average profit of 5.6% of revenue during 2011. Profit has come down significantly during the past five years as a result of decreased discretionary spending due to the recent economic downturn. Section IV: Economic Business Model Revenue Drivers and Profit Margins Momma Mia’s primary revenue driver is the eight pre-customized monthly care packages. Expecting mothers and other secondary target consumers will have the opportunity to purchase a subscription to our service for $75 per month. The care packages will account for 100% of our revenue. Customers will also have the opportunity to purchase the basket as a gift for at the same price of $75. Fixed and Variable Costs Momma Mia’s fixed expense includes salaries, rent, utilities, personnel phones, advertising, legal/consulting fees, and insurance. Operating Leverage Momma Mia’s operating margin is 61% of sales. Our cost structure is more variable and many of our expenses on the income statement can be adjusted based upon the continual evaluation of our company’s needs and financial performance. Our business model primarily relies upon re-packaging pre-manufactured items, and gifting them in a way that is currently not present in the market. As a result, our firm will experience a large cost of sales and a low contribution margin until we are able to lower this logistically by volume. Our variable expenses will be consulting fees to speak with experts. These experts include CEO and founder of MyBirthClass, Retail Maternity Director from Walmart, and Maternity Education Director from First Steps Program at Crouse Hospital. Momma Mia will consult with these experts periodically during seasonality and to determine newer products to include in our care packages. The most important variable expense will by the cost of goods sold. This variable rate will be determined by our buy power. The more capital Momma Mia possess, the more volume we are able to purchase. 14 Startup Costs Shelving Computers Total 600.00 3,000 $3,600 *We are willing to purchase used office equipment on classified sites like Craigslist to reduce our initial start up costs. Profit Durability Our profit stream is substantially solid because we plan to utilize multiple revenue streams as well as create barriers to entry through non-compete agreements with our suppliers. Momma Mia will also prevent inimitable services by maintaining our expertise as a trade secret. We will also have a first-mover advantage in the expectant mothers’ services market because there is currently no one-stop shop service for all pregnancy needs. Break Even Analysis It is projected that Momma Mia will break even at the end of Year 2, QTR 2. As our volume of sales increases it should be easy to obtain our break even sales mark. Throughout year one of sales we hope to be able to purchase larger portions of inventory in bulk, which will greatly increase our margins, as well as directly affect our bottom line. The company plans to experiment with sales and gross margins once we reach stable volume, at this point we will be able to maintain steady revenue while discovering whether fluctuations in the selling price will have a positive or negative impact on sales. At price of $75 per basket we would need to sell 5,729 baskets to breakeven at the bare minimum. In our income statement, we are optimistic about sales and plan to exceed these numbers, which is why we have incorporated additional fixed and variable expenses. 15 Section V: The Marketing Plan Overall Marketing Strategy Momma Mia seeks to provide all things pregnancy directly to our consumer’s doorstep! It is our goal to become the go-to brand for pregnancy items. In order to establish this kind of brand recognition and attain a large amount of sales, Momma Mia has developed a detailed marketing strategy to reach our target customers. Through primarily online and magazine advertisements, Momma Mia expects to target a large consumer base of educated, professional first time pregnant woman and their friends and family members. Momma Mia targets educated, pregnant professionals between the ages of 25- 40 in metropolitan areas. In order to reach this demographic, we position ourselves as the top ten pregnancy sites on the web and the most featured company in magazines. As a pregnancy care package service, we pride our self on our convenience and expertise, which most of our competitors fail to provide. In terms of convenience, we offer all the necessary items for pregnancy in eight baskets over the course of the three trimesters, shipped directly to the customer. Unlike our competitors, specialists and the customers themselves have recommended all of the items in our care packages. Our company will launch our service on January 1st, 2012. During our initial intensive selling efforts, we will target pregnant first time mothers with limited time and knowledge to show for items on their own. To attract these individuals we will use viral online advertising strategy. We plan to advertise our service through Google Ads, Twitter, Facebook, and on our company website. Our market research shows that most women access the Internet for information related to pregnancy. In addition, the women in our target market find it more convenient to order all the necessary items from one site online than to go out into retail stores and purchase the items themselves. According, to a research study on IBIS world, 65% of pregnant women obtain all the knowledge related to pregnancy through online sources. This includes well-known books, DVDs, and centers for pregnancy. Although Mama Mia intends on being a national brand, we will start by introducing our service regionally. Momma Mia seeks to initially target regions where there is a high birthrate. According to the US Census, the highest number of births occurs in California, Florida, New York, and Texas. Once we enter into these markets and build a relationship with our consumers through online and magazine advertisements, our company will branch out to other regions. Pricing Momma Mia provides high quality service at modest prices. As a subscription service we will offer a total of eight pre-customized baskets through a monthly subscription service. The subscription includes a $75 per month subscription fee. From surveying our target market, we have found that 59% of expecting parents, especially first time parents are willing to pay over $50.00 for a pregnancy care package. Our management team surveyed 151 women, who all said they would be willing to spend between $50- 75 on a care package for expecting mothers. Compared to our competitors like Citrus Lane, which offers monthly baby products, our prices are highly competitive. Other subscriptions services similar to ours, only provides 16 4-5 items in one care package. However, Momma Mia provides up to 10 items per month, for around the same price. The Selling Cycle Mama Mia will establish a relationship with our target market by using an aggressive online marketing strategy to not only advertise to but also connect with our potential consumers. According to data revealed in from surveys 81% of expecting mothers use the Internet to research pregnancy. As a result, Momma Mia seeks to advance our SEO in order for our company brand to appear for keywords of pregnant women and their needs. Our customers may know their types of discomfort, confusion and other feelings associated with their pregnancy but they do not know of a resolution for them. For example, mothers on babycenter.com have expressed that concerns related to exercise and nutrition while being pregnant. These mothers are unaware of the different kinds of DVDs or help books to help them with these concerns. This leaves the opportunity to meet the demand of the many mothers like this by offering these products in our care packages. Thus, our market research concluded that the majority of our primary market conducts online research to find their information and solutions. We hope to brand ourselves as the service with the solution through social media, search engine optimization, and affiliate marketing on relevant sites and word of mouth in advantageous areas known for a large population growth. Their clicks, questions and social media conversations would ultimately lead them to our website where they would receive a customized gifting service for their needs and eventually close the sale. Sales Tactics Since most births occurs during the months of July and August, we will promote our sales during these months of predicted low sales by providing products and services for post-birth and focusing our promotions on other target groups including fathers (A father’s psychological support needs occur during pregnancy and after birth). Mama Mia will use a sales force to review customer orders in the online database. They will sort through the inventory and assemble the care packages as specified by the order place. Our sales force will consist of full and part-time workers, which will be used in proportion to sales seasonality. For the short-term and first year, our sales force will most likely consist of mainly our own team of executives excluding the board of directors and investors. But as our sales and brand awareness increases, we will hire sales representatives to help market and operate our business. Momma Mia will use UPS to arrange and distribute the gift packages to customers. We have selected our distributors and suppliers based on the low wholesale prices they will offer to keep operating costs low. Momma has identified three main suppliers: Reviva Labs, MyBirthClass, and Zenoff. We plan to work with these suppliers to ensure that the entire product needs for each trimester is met. The sales force will be recruited through internships and they will be trained throughout the unpaid internship. Then the sales force will be compensated based on a commission of how many orders they can successfully deliver per month. Advertising and sales promotion 17 It has been often been said that the way to a woman’s happiness is retail therapy. As previously stated, the expecting mom’s shopping profile is something that is very appealing to us. According to IBIS World, expecting moms are extremely informed consumers, early adopters, researches heavily, and shops a variety of options. When we look at this type of shopping profile, we can conclude that expecting mothers research in depth about pregnancy. Using key word optimization we will expect a lot of web traffic to our site. This couldn’t be more ideal for a new start up business. Our primary way of marketing will be through online advertisements. For example creating a sponsored link through Google Ad Words and Facebook. The most appealing thing to online marketing is the advertiser only pays when the link is clicked. With Google Ad Words if our link is never click we would not pay Google. Facebook is a bit different but considering its ability to communicate with massive audiences, Facebook has become a must for advertising. When creating an ad with Facebook, it allows you to see your estimated target market based on location, advanced demographics, and precise interests Our cost for online marketing will really depend on our website that our advertisement link will drive in. The more clicks we get, the more we pay out. Using Google Ad Words and Facebook both have estimated our pay per click to be around .57-.99 cents. Publicity Celebrity endorsements will also be used to promote our service. We will establish relationships with celebrities are currently pregnant and ask them to use the products in our care packages. This kind of celebrity publicity will be recorded in local newsletters and newspapers. Celebrity endorsements and features in pregnancy magazines will allow Momma Mia to acquire the national brand recognition we desire. Customer Service Momma Mia caters wholeheartedly to needs of expecting parents everywhere! Customer service will be defined, measured and reviewed by executives monthly. We will also implement a CRM system to manage customer service and service levels. There will also be a section on our website for customers to post reviews to evaluate our products and service. If for any reason customers want to return a product we will, the item must be returned within 10 days of receiving the package. Customers are still bound to their subscription even if they return a basket. Section VI: Design and Development Development Status and Tasks Due to the nature of our service, Mama Mia has begun to develop our service in various ways.First, we have established certain items that will be included in the pregnancy care packages that will ship to customers. Secondly, we identified our warehouse for operations in Louisville, Kentucky. Since Momma Mia, does not develop any of its own products, there is no need for testing. Majority of our investment capital will be used to purchase care package items from suppliers, warehouse rental, and shipping costs. 18 Momma Mia works diligently to find the most reliable suppliers to provide quality products for pregnancy. Our company has selected three major suppliers, which include Zenoff Products, Reviva Labs, and MyBirthClass. These suppliers will provide Momma Mia with the items needed for the care packages, which include stretch mark creams, pregnancy pillows, prenatal birthing and fitness books and DVDs, and various other items. After speaking with these suppliers, we decided that they would give us the best wholesale rate on pregnancy goods. In addition to providing us with a low wholesale price for the pregnancy items, these suppliers are also experts in items needed for pregnancy and will able to guide us accordingly. Momma Mia has enlisted the services of a website designer by the name of Joshua Anderson. Mr. Anderson will be in charge of creating a full functional e-commerce website. The website will allow customers to place orders, rate products, and offer suggestions. In developing the website, Mr. Anderson will create a robust database that will keep track of customer orders and subscriptions. Once a customer places their order online, it will be recorded in our database and then the order will be filled in our warehouse. The development of the website will be free of cost. Difficulties and Risk Although Momma Mia does not manufacturer our own line of pregnancy items, we still stand at potential liability. To protect the company from any kind of liability we will have a full disclosure that we are not the manufacturers of the items in the basket so we cannot be held liable. We will enlist the services of an attorney if any potential claim is filed against the company. Product Improvement and New Products Mama Mia’s service will maintain a competitive edge by offering new products that may not be available in the retail market by partnering with small businesses that need a platform for their new product testing and promotions. In terms of the website’s design, we will offer features for customization in order for customers to pick and choose the products they prefer in their packages. Also, the products can be rated and recommended based upon customer and expert reviews. Costs The majority of costs are attributed to the pregnancy items that will be included in each basket. We will provide nine packages over the course of a woman’s pregnancy. The items in one of these baskets will provide by suppliers at an average cost of $50 per basket. Another cost associated with our service is packaging. Momma Mia wants expecting mothers to feel like they re receiving the gift of a lifetime. This will be established through our unique packaging. Instead of just sending various items in a plain box, Momma Mia is working on creating Momma Mia baskets. The baskets will be lined with silky soft material and covered in wrapping that displays the company’s name. Proprietary Issues Mama Mia is in the business of primarily bundling other products of many companies 19 together to provide a service for the niche market of first time pregnant woman to obtain, and test a wide array of products from these companies that they may or may not know about. Since we are a distributor of other already established goods, Mama Mia does not have the ability to obtain a copyright, patent, or trade secrets to protect our service from other companies. What Mama Mia does plan to do is establish the name a service mark to advertise our product with so that consumers will begin to see our name and image, which we hopefully can use establish our service within the market, and become a household name to consumers in this market. We would like to obtain a Trademark to place on the basket or container that the customer receives our product in. We cannot put a trademark on the products themselves because the products are under the trademark of the manufacturer of the product of which we are simply marketing within our services. Since Mama Mia distributes products of many established companies, we may have to obtain contractual rights to distribute the trademarks and service marks of these other products in association with our service. This will probably not be necessary for samples of new products of which we are marketing for a company through our service, but brands or products of which we distribute a large volume of, or a product which is distributed to consumers as a regular or full size product (not a sample) , we should obtain contractual rights to associate and distribute the products of these companies with Mama Mia’s service. Section VII: Operations Plan Operations Model and Cycle Momma Mia is highly organized and efficient company. This is accomplished through our succinct operations model and cycle. In terms of back stage of operations, Mama Mia would make negotiations with suppliers and have the necessary items delivered to the warehouse. These items are then recorded in our database and held as inventory. The front stage of our operations begins in which customers will be able to enter our website and view a list of 20 products under each category based on product type and stage of pregnancy. Then the customers would pick and choose the products they would want to receive and design their own customized package and send us their orders. In the back stage of operations, this order would be processed by our internal data management system and would be reviewed by an employee who would send each order’s specifications to the 3PL. The 3PL would sort and arrange the specified products into the gift packages and ship them to the customers. Through extensive research and interviewing consumers, Momma Mia has come up with a list of products to include in the pregnancy care packages. These items range from morning sickness kit, to yoga for pregnant women DVDs, to prenatal vitamins, and so much more. The first month will be the “Beginners Basket”, second month with be an “Exercise Basket”, and every other basket will have a theme that meets the needs of that month. Due to the fact that our products are exclusive and available for niche markets, the bottlenecks in our manufacturing and service delivery process would most likely arise due to the limited availability of supplies and inventory when we cannot meet the demand of customer orders. We would address this issue by creating agreements with suppliers to streamline the inventory delivery and payments processes. On the front stage of operations, we would only allow customers to choose a limited number of products for each order by choosing only one product under each category given. This would help prevent these bottlenecks from becoming a frequent occurrence or problem. Mama Mia’s lead-time is estimated to be a few days (2-5) at maximum because our items are mostly non-perishable. During peak periods of our business sales cycle, our lead times would generally be a few days longer and we would hire part-time staff to help process customer orders and packages. We would establish agreements with our suppliers to ensure a premium quality of the products. We will also have employees review each package before they are shipped to the customer to ensure that each order is accurately processed and distributed. Operations Strategy Momma Mia’s operations strategy relies on suppliers providing pregnancy items to our company so that we can fill customer orders. It is important for successful companies to have a clear and detailed operations strategy. Mama Mìa will obtain our care package items from multiple suppliers. In order to eliminate manufacturing costs, we will purchase items in large quantities in order to receive discounts from suppliers. Our incoming items will be shipped from our suppliers to our warehouse, the Airport Trade Center, in Louisville, Kentucky. Once the items arrive at the warehouse, they will be sorted by the staff and then used to fill customer orders. Another important element of our operations strategy is delivery. As a pregnancy care package subscription service, Mama Mìa relies heavily on shipping. To reduce shipping costs, our company has strategically chosen to lease a distribution warehouse that is in close proximity to the United Postal Service and FedEx. Both UPS and FedEx have superhubs that are close to our warehouse, which allows us to ship packages at any time of the day. Due to the large range of inventory that our company will need to include in the care packages, we have chosen to purchases these items from suppliers. As a small startup business, Mama Mìa does not possess the capital to manufacture our own line of items to include in the basket. It is also beneficial for us to purchase our items from other suppliers because it eliminates the cost associated with employing skilled workers and R&D. 21 There are numerous suppliers that would be able to provide Momma Mia with the necessary items for pregnancy care packages. The first option is to contact manufacturers who produce the specific products needed. Potential suppliers included Spring Valley, Boppy, TriLastin, and TradeKey Our company plans to consult with professionals about the best selling products that we can offer through our care packages. This will ensure that our service is of high quality and that we are a reputable service provider. Geographic Location To be successful and as profitable as possible, we need to have the most efficient and cheapest operations. Since Momma Mia will be shipping thousands of baskets all over the United States, efficient shipping as to be a main priority. After much research and strategic planning we plan to lease the Airport Trade Center located at 4770 Crittenden Drive, Louisville, KY 40209. When choosing a location, we researched based our logistical needs, location, and price. The main strategic advantage of our preferred location was the close proximity to one of the main shipping players, United Postal Service (UPS) or FedEx. Both players have a “superhub”. In the simplest terms; a superhub is a massive hub located at an airport that a shipping company does the majority of its shipping from. Being so close to superhubs is a huge strategic advantage; it will allow late drop-offs and early morning deliveries. For example, if your distribution center is near a super hub, organizations could get their shipments their as late as 1:00AM, compared to being located in Syracuse, NY, an organization would have to process their shipments before 3:00PM. Facilities, Equipments, and Improvements The Airport Trade Center is an industrial property with about 49,200 Square feet. The warehouse is divided into three different spaces; A, B and C. We plan to lease space C which has an estimated 8,900 square feet, within that is an approximately 1,000 square feet of office space. For the estimated 80 to 150 SKUs this is more than enough space for our ideal distribution center. Even after a few years if we plan to expand the capacities required by future sales projections this warehouse would still be able to house our operations. The center has three dock doors, perfect for shipments coming in and shipments going out. Also the warehouse is 1.1 miles away from Louisville International Airport, as mentioned before; a huge strategic advantage. Finally, the price is only $3,400.00 a month. Overall this facility is a steal and a strategic advantage to ultimately lowering operation costs. Looking further into the advantages of leasing the Airport Trade Center we can dive into UPS' superhub called Worldport. Worldport is the largest fully automated package handling facility in the world. The operation currently turns over 130 aircraft daily, processing an average of 1.5 million packages a day. Louisville International Airport is positioned less than ten miles south of Louisville, KY, at the corner of Interstates I- 65 and I-264. The location is strategic because it is particularly well served by all transportation modes. There are railroads just east, north and south of the airport, and the Ohio River is only 8 miles from the airport. All transportation modes can easily serve the airport. UPS Airlines is currently the airport's largest operator and the only airline that operates international flights in and out of Louisville International Airport. We plan to ship exclusively through UPS because of their strategic advantages. 22 Section VIII: Management Team Organization: Key Management Personnel • Ashley Stephens, CEO: Ashley Stephens oversees the logistics of Momma Mia’s company operations and sales. Ashley Stephens holds an academic degree in Accounting and Finance as well as entrepreneurial experience through being the previous finance director for a start ­up company. In addition, she has also had experience in providing company analysis for startup company in Shanghai, China. • Chris Stefanec, CFO: Chris Stefanec is responsible for accounting and managing the company financials to ensure profit growth. Stefanec contributes a strong background and skills in accounting. He has successfully completed several finance and accounting courses and utilized his accounting skills through previous internships with large companies including Lowe’s. • Mike Madonia, COO: Mike Madonia oversees the management of supply chain logistics including our distribution channels as well as contributes to Momma Mia’s operations strategy. Mika Madonia graduates with a degree in supply chain and marketing and contributes a large network of suppliers and other professionals in the supply chain field. • Priscilla Kim, CMO: Priscilla Kim directs the marketing strategy and service innovations for the growth strategy of Momma Mia. Our CMO comes with a 23 background in entrepreneurship and the arts and has interned with various companies within the entertainment industry including ESPN. Management Compensation and Ownership Each member of the executive team will receive a salary of $10/hr. Each member will contribute an equity investment of $20,000. Thus, each person will have a 25% share of ownership of the firm. Momma Mia’s Board of Directors include: • Kathy Bluett, Retail Maternity Director at Wal Mart: She will help us to develop an online retail strategy through her knowledge of how to sell maternity products. • Nicole Davis, Registered Nurse at the Faxton St. Luke’s Hospital: Experience with child ­birth and would know how to have successful pregnancies • Leslie Griles, Director of Outreach and Partnerships at The Mom Complex: Featured in the NY Times dues to their innovative marketing strategies for maternity products at a large ­scale with nationwide brand recognition, which we hope to achieve. • Cathleen Miller Murphy, Maternity Education Coordinator at the First Steps Program of Crouse Hospital: She has been teaching mothers for over ten years to help prepare mothers with what they would need. 24 Section IX: Overall Schedule 25 Section X: Critical Risks, Problems and Assumptions Momma Mia has projected sales based on the 1% of the market, from the national birthrate, that we are trying to acquire. In doing so, we require sales to be $245,625 by the end of year 2 so that we can break even. The official Maternity Shop Sector report is still in development by IBIS World. As a result this can hinder Momma Mia from acquiring the 1% of the market share, then our projected sales will be lower than expected. Thereby creating various problems for the firm like lack of profitability. Although this is a risk assessed by the management team, we are confident that we will capture 1% and even more of the market since we will be the only subscription pregnancy care package service in the Women’s Clothing Retail Industry. Another critical risk is the aspect of liability. Momma Mia will be selling products supplied to us from three main maternity manufacturers. If these products were to cause harm to any consumer, we would be expected to defend our brand from any possible financial loss incurred. As a result, Momma Mia will obtain product liability insurance and demand high quality from our suppliers and service operations to ensure to reduce the risk of being held liable. Section XII: Financial Plan Highlights of the Financial Statements Momma Mia has estimated potential financial statements for years 1 through 5. Given our current sales price of $75, along with fixed, variable and estimated cost for the business Mama Mia doesn’t expect to profit until quarter one of year two, unless we eliminate some of the expenses we find important for our success. Our sales projection for year one through five 26 respectively are as follows: year 1 .00125% of market share, year 2 .0025%, year 3 .0050%, year 4 .0075%, year 5, 1% of market share. With an initial investment of $20k from each of us, and $100k investment from an outside investor, this should be a significant amount of cash for Mama to operate throughout year 1. By the 2nd quarter of year 2 we will have recovered from our year 1 deficit and we will begin to earn an operating profit. At the end of year 2 we will be able to make a payment to our investor, or reinvest to make our business more efficient, which can be negotiated at that time. Cost Controls Our cost control will be monitored monthly, as our operating margin could fluctuate based on our cost of goods from suppliers. We expect that our costs of goods sold will decrease as our volume grows but at this point Momma Mia uses a conservative cost approach. Pro Forma Cash The Statement of Cash Flows for Momma Mia reflects our budgeting in that we should be able to cover all of our deficits with the total initial investment of $180k. Payables and receivables are estimated to be approximately equal to one month’s sales. Momma Mia should have enough cash on hand to pay suppliers and other expenses in advance if a discount is offered, which we plan to take advantage of to directly impact our bottom line. Mamma Mia plans to invest $4,032 in computer equipment, which will be depreciated on a straight-line basis over three years. We expect to purchase new equipment for the same value, which is why we expect our depreciation to be the same for years 4 and 5. Our shelving and office equipment investment of $1,140 will be depreciated over a 5 years, also on a straightline basis. Section XII: Proposed Company Offering Desired Financing Based on monthly cash flow projections, we do not see anything more than the initial investment of $180k necessary for our business to develop and expand over the next three years. Logistically, our costs will become cheaper as our company’s sales expand over the next three years. By the end of year one given on sales projections, we should be operation out of the negative before the end of year one, and begin fund our own expansion through reinvestment by the middle of year two. As our product begins to expand and become established in the market we may develop a complementary service for our product, but we ill be able to fund the expansion ourselves, and for now our main focus is on our target market of pregnant mothers. Based on current projections, the initial startup through the first, 6 to 8 months look to be the most difficult for us, as our product establishes itself in the market. With our total initial investment of $180k, Momma Mia should be able to operate without any problem, although if we were to split up the investment we could split the initial invest amount up with half at the beginning of the business, and the other half at year 3. We should be able to cushion our business operations with this cash investment as we expect to break even by the end of year 2 and gain profit in subsequent years. 27 We plan to make an initial investment of $20k per person (total of $80k), as well as an investment of $100k from an outside investor or angel investor. Through this investment we will offer the investor a percentage of non-controlling interest in the company initially, with the option of repayment of debt or a percentage of ownership to be worked out in the future. Momma Mia believes this is the most profitable way for us to fund our investment, given the start up cost and operating in the negative part of the first year, because we will not be incurring interest and principal payments at this time. Offering Momma Mia is an amazing service that not only gives added value to its customers but to its investors as well. For an investment of $100,000, Momma Mia will give provide a 30% share of equity in the company. Our company will give our investors the opportunity to sell their equity stakes to us, the management team at the end of year 5 for 541,542.00. Use of Funds: The primary use for the capital raised would be to create, design and run an efficient website and CRM software system which would enable Momma Mia to provide customizable features on the site for customers and manage and review their orders well. A quarter of our capital would also go to our fixed costs for Momma Mia’s warehouse, gifting arrangement and distribution equipment and low-cost deals with third-party suppliers. For the first few years, not much capital will be used for employment because we will hire interns who will be trained and work alongside executives for their first year. Because most of our marketing promotions will be fostered online through social media and related sites, Momma Mia will dedicate smaller percentage of our capital will be needed for our marketing plan. But to build brand awareness in the first years of our business, we will take advantage of over a quarter of the raised capital for promotional activities. Investor’s Return The valuation of Momma Mia would be accounting for its current assets on hand, which would be the products we own and the number of customers we currently have at time. We could also valuate our intellectual property. Momma Mia’s exit strategy is to sell the company to a competitor or a company that offers a complementary product at the end of Year 5. The revenue from this sale will go toward paying the lump sum to the Angel Investor. 28 Appendix Financial Statements FIGURE 1 Momma Mia Balance Statement December 2014 29 Figure 2 Momma Mia Income Statement Year 1 30 Figure 3 Momma Mia Income Statement Years 2-5 31 Figure 4. Momma Mia Statement of Cash Flows 32 Figure 5. Momma Mia Sales Forecast 33 Figure 6 Momma Mia Valuation 34 Primary Research- Survey Report Respondents: 151 Initial Report Last Modified: 12/07/2011 1. Gender # Answer 1 Male % 2 Female Total 100% # Answer % 1 under 25 2 26 ­30 3 31 ­35 4 36 ­40 2% 5 41 and over 0% Total 100% 4% 96% 2. Age 16% 62% 20% 35 3. What is your household income? # Answer % 1 $0 ­25,000 8% 2 $26,000 ­35,000 3 $36,000 ­55,000 4 $56,000 ­66,000 0% 5 $67,000 ­75,000 0% 6 $76,000 ­ $100,000 2% 7 $100,000 + 0% Total 100% 34% 56% 5. Are you a first time mother? # Answer 1 Yes 2 No Total % 82% 18% 100% 6. What is the current number of children in your household? # Answer 1 0 2 1 3 2 6% 4 3 0% 5 4 0% 6 5+ 0% Total 100% % 81% 13% 36 7. Are you currently pregnant? # Answer 1 Yes 2 No Total % 82% 18% 100% 8. What trimester are you currently in? # Answer 1 1st 2 2nd 3 3rd Total % 30% 40% 30% 100% 37 9. List some items that you personally would want/need during pregnancy? Text Response Maternity clothes, comfortable shoes, healthy food, Prenatal vitamins food money maternity clothes and underwear, panty liners, healthy food delivery service, no MSG food for pregnant mom, pregnant women's magazine, baby pictures not drawings by weekly basis and so on organic food, journal, pregnancy books, exercise DVDs comfortable pillow, comfortable clothing, toothbrush, lotion Comfort pillows. items for birthing and the baby. books on the birthing process. Nutritional supplements for pregnancy. Things to relieve back pain. Organic foods. Lotions for both my belly and face because my skin has been breaking out all over. organic foods. Music cds for the baby, birth kits. Books and food for pregnant women. Educational items for expecting mothers. New products for pregnancy I've never heard or tried before. Fun stuff and pampered items for pregnant women. Items for the baby and breastfeeding kits. New Products and comfort/recreational/pampering items. Items to relieve physical distress on my body like back pain, etc. pregnant women's magazines and comfort pillows. Maternity items and wear. High quality foods, lotions and maternity wear. Safe and organic foods and supplements pregnant women can eat. Items for the baby and birth at home. Pain relief supplements or equipment. Products I haven't heard about before for pregnancy. Maternity wear and equipment for comfort, birthing and breastfeeding. Books/magazines and items for massages/lotions. 38 Breastfeeding equipment and items needed for birth and the baby. Maternity wear and care items. Maternity wear, special foods, music for the baby and me. Snuggies, slippers. Slippers, pillows and robes. Vitamins. Mirrors to see my feet. Foods, books, and comfort items. Spa and massage items and lotions. Maternity wear. Educational books. Things for backaches. Recreational items for stay ­at ­home pregnant moms. Foods like candy that pregnant women can eat. breastfeeding kits 10. How often do you use these items? # Answer % 1 Never 2% 2 Less than Once a Month 0% 3 Once a Month 2% 4 2 ­3 Times a Month 5 Once a Week 6 2 ­3 Times a Week 7 Daily Total 15% 11% 23% 47% 100% 39 11. Are you interested in receiving monthly pregnancy care packages for the duration of your pregnancy? # Answer 1 Yes 2 No Total % 92% 8% 100% 12. If not, why not? Text Response Not currently pregnant I am not pregnant not pregnant Statistic Value Total Responses 3 13. How much would you be willing to pay for such a service, per month? # Answer 1 $25 ­50 2 $50 ­75 3 $75+ 2% Total 100% % 40% 57% 40 14. Which of the following would you purchase a pregnancy care package for? # Question Not at All Somewhat Most likely likely Definitely Mean 1 Daughter 6 13 25 2 2.50 2 Spouse/Partner 10 19 14 3 2.22 3 Family Friend 3 18 24 1 2.50 4 Relative 2 19 24 1 2.52 5 Co ­Worker 4 19 22 1 2.43 6 Yourself 4 8 23 12 2.91 15. Would you be interested in purchasing care packages for baby showers? # Answer 1 Yes % 2 No 6% Total 100% 94% 16. baskets (CJ) Featur e Attribu te 1 Mea n 1 Eliminat ed 1 Attribut e 2 Mea n 2 Eliminat ed 2 Attribut e 3 Mea n 3 Eliminat ed 3 books 1 book 1.23 0 2 books 3.72 0 3 books 4.59 0 DVD 0.23 0 2 1.03 0 3 0.86 0 1.78 0 JJ 1.88 0 BB 1.77 0 1 Cream Avon s 41 17. Where do you access most of your information about pregnancy? Min Value Max Value Average Value Standard Deviation # Answer 1 Internet 1.00 100.00 82.16 23.94 2 Retail Stores 1.00 60.00 25.00 21.76 3 Magazines/Catalogues 1.00 100.00 36.16 25.18 4 Clinics/Centers 1.00 91.00 48.88 19.41 Interview Details Student’s Name Expert’s mployer: E Expert’s Name: Expert’s Title: Chris Stefanec Section Tuesday Self-employed Date: Oct 16th Deborah Horner Child care provider Expert’s E-mail: [email protected] Interview Questions Question: Time: See document below Notes: Question: Notes: Question: Notes: Additional Notes Expert’s Phone Number: ( 315 ) 360 4675 42 See document below 1. 2. What type of child care do you specialize in? I provide child care with children from 12 months up to age four and five. I also have experience with children with autism and ADHD. With this being a crucial stage, how many children to do you watch at a time? Typically, my partner and I only take about 4 to 5 children at a time, especially if they are very young. 3. 4. Are there any special products that women use for their children? Many women purchase a large supply of items they know they are going to need for their child such as bottles, rubber spoons, clothes, pacifiers, wipes, diapers, small storage containers for foods. Do you think that if we provided some of these products to women through our care package, this would be convenient to them? Yes, once the child is born, many women buy an abundance of these products. They can never have more than enough of these sorts of products. We typically purchase some of these products or have mothers purchase a back up of the product in case they forget them or lost along the way. 5. 6. 7. 8. How much do you think mothers typically spend on products such as these? I would say once the child is born, $100 or more per month is probably not unrealistic. Although many of these items are probably necessity items than novelty. How much does the day care spend to have extra materials like these on hand in case of a shortage? Our cost varies since mothers typically leave an extra item or two in case one is lost. We likely spend $50 ­75 per month or so just to have some of these items on hand. Being a mother yourself, are there any products you tried to find during pregnancy that were difficult for you? I always tried to find special pillows that worked well for me while pregnant. Also, many moisturizers and lotions that worked well for me were difficult to find. I did not have many health or stress related issues. Primarily discomfort was most prevalent for me. How many products did you try before finding the right products? I tried 2 or 3 pregnancy pillows before I found one that I liked best. I also tried many lotions and moisturizers before I found what I liked best. I first began trying product 43 recommended to me by friends and family, but it takes times to find what works for you. 9. Do you think if we offered an array of product throughout our series of baskets women, or yourself would find this appealing? During pregnancy I believe women would be very interested in a product like this. I also sought out ways to discover new products, but there was nothing like this while I was pregnant. I typically tried new items after reading or seeing an advertisement about them in a magazine or online. 10. Have you ever come across a product like this in the market? I have never came across a pregnancy package like this, although there is a product like this that deals with cosmetics, where women can sample new products each month. 11. With that said, would you purchase the product for yourself or another as a gift if it were available? I believe I would have definitely purchased something like this for myself. Depending on the price, I would definitely consider purchasing a product like this for a relative or close friend of mine. Figure 8. Interview Details Student’s Name Expert’s Employer: Chris Stefanec Section Tuesday Faxton- St lukes hospital Date: 10/24 Expert’s Name: Nicole Davis Expert’s Title: RN Expert’s E-mail: Interview Questions Question: Notes: Question: Notes: Question: Notes: See document below Expert’s Phone Number: Time: ( 315 ) 723 5533 (personal phone) 44 Additional Notes See Document Below 1. 2. 3. 4. 5. What is your position at Faxton ­St.lukes hospital? I am a Registered Nurse at Faxton ­St.Lukes. Although I can be placed anywhere in the hospital, I have been primarily working with pregnant women the last year or so. How many years have you been in this position? I have worked for the hospital for about three years now. The first two years, I worked in many different areas of the hospital, but I would like to gain more knowledge in maternity area. After hearing about our product what types of products would you recommend we place into some of our baskets? Since I do not deal with the delivery of the babies often, the majority of the women I see are having problems with discomfort, or health related. Stress is always a factor for these women also. While women are pregnant and come into the hospital is there one thing that women complain or worry about most? • Discomfort • Pain • Health ­ nutrient levels • Cramping • Indigestion What type of product would you recommend to help solve this? As far as products for you to provide I would recommend pillows, vitamins, as well as informational material. Many women, especially if this is there first pregnancy lack information and knowledge, because this is a new experience for them and do not know what to expect. 6. Do you think a pregnant mother would find convenience in receiving some of these products each month instead of going out there way to search for them? I think it depends on the woman, some woman although pregnant like to be really active. I do believe the knowledge as well as the array of products they would receive each month, is something that they would not receive from another source. Many women ask me where the best place to pick up pregnancy pillows, or products to comfort them can be found. 45 7. 8. Do you think that women are price sensitive to these sorts of products? I do not think women would be price sensitive, as long as it is reasonable. This is a tough, lengthy process for many women, and will do whatever they can to be comforted and pampered during this time. Are there any other common things women have trouble with other than discomfort, stretching, and nutrition? Other than medical related problems, other problems include itching, sleeplessness, nausea, and swollen ankles. 9. Do you thing that if we included items in our product that are not pregnancy related, but just for pampering them would have a positive effect? I think many women could use products that can take there mind off from thinking about it pregnancy for a short period of time. Women become stressed and worrisome often throughout pregnancy. I believe products like this would fit your product well. 10. Once the baby is born, are there any other issues that women have that could help us extend our product line in the future? Many women still look for nutritional related items, as well as items to get them back in shape to they way they were prior to pregnancy. I believe product like this along with items to take care of their new addition would be a great way to retain your customer. 11. Would you be willing to serve on our board of directors, to help provide us with any information we may need with our business? Sure, If there is anything I can do to help you and your team be successful with your product, let me know. Figure 9 Interview Details Student’s Name Expert’s Employer: Chris Stefanec Section Tuesday NA Date: 10/30 Expert’s Name: Cassandra Stefanec Relative- new mother: prospective customer Expert’s Title: Expert’s E-mail: [email protected] Interview Questions Question: Notes: See document below Expert’s Phone Number: Time: ( ) 46 Question: Notes: Question: Notes: Additional Notes See below 1. 2. 3. After hearing about Momma Mia’s product, would you be interested in receiving this product as a gift or purchasing it for yourself? Yes, finding many of these products consumes a lot of my time. Usually because the first product I try is not always the best for me so I am constantly trying new brands until I find one that works best for me. Also many stores only carry certain brands of products so a lot of the time I was unable to get everything I needed or liked from one source. Through research we have found that many consumers are not price sensitive in this type of product, what would you pay monthly for this sort of product? I believe anywhere from $50 to $100 is reasonable to spend for each basket. Typically, unless you were going to a Wal ­Mart or Target etc, you are not able to get all of products from one store, and if you are they me be all on brand, so I end up traveling from store to store anyways, which not only consumes money spent on the products but probably just as much to drive to and from these stores. What types of product would you like to appear in the basket? If I were to purchase this for myself or someone else I’d like to receive lotions, pillows, and some informational materials especially if this is your first pregnancy, as it was mine. I would not only purchase the baskets to try some of these products, but just to 47 4. 5. 6. 7. have some excitement while pregnant. Pregnancy is boring at times, and you just want some pampering to take your mind of it for a short time. Do you believe this provides convenience to you while being pregnant? I do believe it would be convenient for any woman. As I mentioned before, I used to travel from store to store to get the products that worked best for me. As your pregnancy moves from stage to stage, it gets tougher and tougher to be able to do everything you are used to being able to do. Would you prefer to receive products at the beginning, middle, or end of each month? For me I wouldn’t really have a preference when I received the product, as long as I got the package once month, in a timely manner. Also I think maybe shortening the time between each basket toward the end of the pregnancy might be beneficial to mothers since you will have more free time and doing less activity. While you were pregnant do you wish a product or service like this was being offered? My mother and I actually searched for something like this while I was pregnant. We were able to find magazines and books that you could receive monthly, but no packages that sent you a variety of products to you. What types of products or brands did you primarily use during your pregnancy? I used a variety of brands from Johnson and Johnson, to nivea, and some brands I’ve never heard of as well. It just took me sometime to try and find which brands product that I liked most. Before you re pregnant you never really think about these things, and end up taking recommendations from other pregnant women or doctors, but these brands still may not be the best one for you. 8. Were you able to get all of these products, and information from one source? Not at all, some products I have to travel between stores to get. After awhile I just started ordering the product from Amazon so that it would just be delivered to my door rather than having to continue to travel around once a week or so. 9. How much do you believe you spent on products monthly? If you include everything such as books, creams, pampering items etc. I would say that I spend $80 dollars or so each month. I was always purchasing different products, to find which I liked best or just to compare to others. 10. If our product provided convenience for you, as well as provided a significant amount of the items you may have discovered or used during your pregnancy, would you look to continue your business with Momma Mia after the pregnancy? Definitely, a lot of the health care products such as vitamins, lotions, and other products I discovered I have continued to use a couple months after my pregnancy now. I have also looked to find products by the brands that I like for my baby also. 48 Figure 10 Interview Details Student’s Name Expert’s Employer: Expert’s Name: Expert’s Title: Chris Stefanec Section Tuesday Prospective customer: male Date: 11/5 Zhu Lin Secondary market research Expert’s E-mail: [email protected] Interview Questions Question: Time: See below Notes: Question: Notes: Question: Notes: Additional Notes Expert’s Phone Number: ( ) 49 See below 1. 2. 3. 4. 5. 6. After hearing about Momma Mia’s product, would you purchase this product as a gift for your wife? Yes, while my wife was pregnant, her mother and I tried to find a product like this or something similar that we could purchase for her. It sure would have saved me many trips to and from the store. Through research we have found that many consumers are not price sensitive in this type of product, what would you pay monthly for this sort of product? I believe as a gift for someone especially that is very close to you, price is not as much of factor if the benefit of the product will out weigh the monetary value, as I think this would. I would say anywhere between $60 and $80 would be reasonable monthly. What types of product would give you interest in purchasing this product for someone? I believe product that are informational, health minded, provide comfort, as well as something not pregnancy related at all would be beneficial to the consumers of this product. Do you believe our product would provide convenience to you and your wife while you’re expecting? Absolutely, I totally believe a product like this would help introduce us to new products and information we may not have found in the store. It also gives my wife something to look forward to every month. Would you prefer to receive our product at the beginning, middle, or end of each month? Depending on when we place our order, I believe receiving the product once a month would be sufficient. But if the product was sent at a specific time every month for example, the 2nd week of each month, we would know when to expect the care package and become excited about receiving it. Have you found any gifting or mail order services similar to this for men, and if not would you purchase it if one was offered? Well, I would certainly not purchase a pregnancy basket for myself (laugh). If there was a package wear I could receive new men’s trial products of toiletries etc. I would definitely be interested in the product, but I have not found any specific male related products of this type. This service reminds me of a cooking or wine club. 50 7. 8. What types of products or brands do you believe would provide comfort to your wife during this process? As mentioned previously, I think any of the products from those categories would be sufficient. Possibly even trial samples of new product in the market along with your regular sized product would also be interesting. If the package provides value to me, so that I am saving money than if I were to go out and buy all of these products, would be the most beneficial to me as the purchaser. Do you believe that the ability to get all of these products, and information necessary from one source has a significant advantage over acquiring these goods from many other sources? I do believe the ability to receive this package in the mail is beneficial, especially if I am saving money. It already reduces the number of times that I will be asked to stop at the store. Although we may consider purchasing additional items of a certain product, since the baskets are pre customized, unless we are able to purchase it from you. 9. How much do you believe you spent on products like these monthly while your wife was pregnant? I’m not sure how much she spent monthly, but I know that I spent at least $50. I’m sure the two of us combined was well over the $75 you plan to charge for your product, which is why the consumer would see value in it. 10. Do you believe that this product would be even more interesting if it provided info and a product or two, for the father? Even if were at a slightly higher cost per month? I definitely believe informational material just for fathers would be a very good idea, especially since many fathers are clueless about the whole process. I found myself searching the web for information, and found some valuable tips, although receiving it in the mail would be of great benefit to my wife and I. Figure 11 Interview Details Student’s Name Expert’s Employer: Chris stefanec Section Tueday Walmart Date: 11/11 Expert’s Name: Kathy Bluett Expert’s Title: Expert’s E-mail: Maternity retail manager [email protected] Interview Questions Expert’s Phone Number: Time: ( 315 )368-5542 51 Question: See document below Notes: Question: Notes: Question: Notes: Additional Notes See document below 1. 2. 3. After hearing about our product, do you believe it would be successful in the market? Yes, I do believe that it would be a good seller in the market. Many customers come in to the store looking for a gift basket if they are going to a baby shower, but we do not carry anything like that in the store. I do see however some customers creating their own gift baskets every so often. What type of products do women seek most from your department? Common products include informational materials, lotions/moisturizers, as well as small products to be prepared for when the baby arrives home. Many women also look to purchase vitamins and supplements to maintain adequate nutrition, although these types of products are usually in the pharmacy area. Do you believe it is possible to assemble a basket of goods that women would appreciate and get use of each month? I definitely believe a product like this would sell in the market, especially if it was sold in a retail store. There are money products you can put into the basket, and do not all necessarily have to be pregnancy related. I find many women just looking for comfort and stress relieving items. 52 4. In your position what happens if you do not currently supply a product that a consumer may want, or one that has an increasing demand? Most of the time we can get the customer the product they are looking for, or one that is similar in nature from the company website and have it shipped to their home. If the product becomes in high demand we can sometimes get the product into the stores, and on to the shelves. Most of the time the company, or our vendors of our products our good at predicting trends in the market, and we can usually obtain similar products to what the consumer is looking for. 5. Do women know what products are best for them during each stage of pregnancy, and how do they typically determine this? Women typically do not know, from my experience. Women try items that are recommended to them by others. But a lot of the time, women may try product after product until she finds what is best for her. The majority of our products on the shelf sell very well, for the reason that women are trying each product we offer until they are satisfied. 6. Do these choices and variables have direct correlation in the demand and turnover of specific products? Some products do sell quicker than others such as Gerber, Johnson and Johnson, or brands that have a reputation in the market. I would not say consumers are brand loyal, but they are willing to try something they are familiar with first, which is probably why some brands sell faster than others. 7. As the birth is approaching do women still seek informational materials, and what products become more of a demand? I have found that women can always use more information, although the majority of the health related information is usually the first concern. As the pregnancy goes on, first time mothers still look for information on what to expect, toward the end of the pregnancy, and after the child is born. Also many women begin buying items they know they will need such as diapers, wipes, pacifiers, clothes, and blankets just to be prepared. 8. Do you believe the price of our product would be competitive in the market, especially with the prices a large supplier such as Wal ­Mart would be able to provide? I definitely think you can provide consumers with relatively close to the same retail value of product. Obviously you know that some prices can not be matched just due to the volume and turnover of product within the company, few retailers can. Primarily, the lower cost will more so benefit a companies bottom line rather than being passed on to consumers. 9. What recommendations do you have to possibly retain these women as customers after the child birth? If customers are satisfied with your original product line, I do not see why they would not want to continue to be a customer with you for another year or so if you were to provide them with more baby related products, as well as a few things for them as well. I do think the Mommy and me basket that you send to them when the child is born, would be a great way to introduce them to what to expect, if they were to sign up for the next series of baskets. 10. Do you find that women are typically picking up these products from the store, or do you believe men play a significant role in the selection of products also? I would say I encounter women more so than men shopping for these products, although men do pick up many of the products once women have settled on what to use, and what is best for them. Primarily, the female shopper is more likely to inquire about a product for them, opposed to the male picking up the product. 11. Would you be willing to serve on our board of directors, and help provide us with information and select the correct products for our baskets? I’d love to serve on the board of directors for your company. The idea seems very 53 feasible, and could be a hot seller in the market. Figure 12 Primary Research Interviews Interview Details Student’s Name Expert’s Employer: Priscilla Kim Section M006 The Mom Complex/The Martin Agency Date: 12/6/11 Expert’s Name: Leslie Griles Director of Outreach and Partnerships Expert’s Title: Expert’s E-mail: Expert’s Phone Number: Time: 1:00 PM (804)698-8161 [email protected] Interview Questions Question: What services does your company offer? The Mom Complex offers customized marketing solutions for companies directed towards women. We Notes: provide all forms of advertising and media nationwide. Question: Notes: Being that our target market is pregnant women, what do you think will be the best marketing strategies to use? I suggest using both traditional and online advertising methods to reach mothers of all kind. Question: How would you be able to help our start-up company? We typically work with big nation-wide brands and not many start-ups unless we believe in their mission and their differentiation strategy. We will further look into and assess your current marketing strategy and business plan. Then we can create and implement a customized marketing plan for you that we guarantee Notes: will reach the market of mothers and women all across the US. Additional Notes 54 Primary Research Interviews Interview Details Student’s Name Expert’s Employer: Priscilla Kim Section M006 N/A Date: 11/1/11 Expert’s Name: Bora Jin PhD Candidate of Child and Family Studies, Syracuse University Expert’s Title: Expert’s E-mail: Expert’s Phone Number: Time: 1:30 PM (315)480-5782 [email protected] Interview Questions What do would want or need during your pregnancy and/or what things are lacking in the pregnancy market? Question: Edible and healthy soda and sparkling water, ginger drinks (calm morning sickness but not sold anywhere in the US; not gingerale), smaller prenatal vitamins and mild and healthy menus for pregnant women. I wish there was more proximity of fresh and organic foods specially made for pregnant women available whether in Notes: supermarkets or somewhere else. Question: Notes: Do you think your needs would differ for each month or trimester of your pregnancy and if so, how? I’m currently in the 1st trimester of my pregnancy so I’ve been having a lot of cravings for certain foods and there are many foods I cannot eat. There haven’t been many noticeable changes in my body so far, but I think that once I get to my 2nd trimester and beyond, I will experience more physical discomfort. Question: How do you feel about our service? Would you use our service if it started? I’m excited for your service. I think it is a wonderful idea. I’m always open to the idea of helping pregnant women because we do need help. I would definitely use your service if it is not overly pricey and lessens the Notes: burden for me to go out and shop for my food and pregnancy needs. Additional Notes When did you find out that you were pregnant? I found out around the 2nd week I became pregnant because my husband and I were trying to start a family as soon as possible and thus, would take regular trips to the doctor’s office. I discovered I was pregnant during one of my weekly check ­ups. How do you think your feelings about yourself or others change when you become pregnant? I heard that when you become pregnant, you get many mood swings and easily frustrated but that is not the case for me. I think I’ve been seeing everything in a more positive and exciting light after I became pregnant. I get excited just seeing other children or baby shoes. 55 Primary Research Interviews Interview Details Student’s Name Expert’s Employer: Expert’s Name: Expert’s Title: Priscilla Kim Section M006 American Pregnancy Association Date: 12/8/11 Time: 10AM Dr. Brad Imler Executive Director Expert’s E-mail: Expert’s Phone Number: (972 )550-0800 [email protected] Interview Questions What services, resources, and/or benefits do you offer to clients like us who have Question: services aimed towards pregnancy women? We primarily provide access to pregnancy health information. But we have access to suppliers and Notes: consultants for organizations focused on pregnancy needs. Question: Notes: Do you think having the APA brand on firm's websites and products would change how people perceive a firm? If so, how? Yes, the APA brand establishes credibility for an organization because we provide expertise on pregnancy health and leverage corporate partnerships to give access to information and databases of professionals within the pregnancy field. You have a very well-informed and resourceful site. What are the types of professionals you work or interact with? If we join your association, would we have access to Question: relevant health professionals, etc.? Yes, we work with all types of health professionals dedicated to pregnancy health as well as experts who can Notes: provide additional brochures and resources on pregnancy. Additional Notes How much does it cost to join your organization? $40 annual membership fee. 56 57 Primary Research Interviews Interview Details Student’s Name Expert’s Employer: Expert’s Name: Expert’s Title: Priscilla Kim Section M006 Onondaga Family Planning Service Date: 12/1/11 Time: 3PM John H. Mulroy Health Professional Expert’s E-mail: Expert’s Phone Number: (315)435-3295 N/A Interview Questions Question: What types of prenatal care do you provide for women? We provide pregnancy tests and counseling, physical examinations, contraceptive counseling, medical Notes: referrals, STD and HIV counseling and patient education. Question: Notes: What are some common symptoms or issues do you see that pregnant women face when they come get examined? I notice women experience typical pregnancy symptoms like nausea and physical discomfort. Physical issues aside, there are a lot of emotional stress and excitement that are experienced as well and we provide counseling for the options pregnant women may have. Question: What are the general demographics of the pregnant women you see on a weekly basis? Although I cannot disclose any profile on my patients, I can tell you that women from all ages, young and old, Notes: come to visit me about their pregnancy related issues. Additional Notes 58 Primary Research Interviews Interview Details Student’s Name Expert’s Employer: Expert’s Name: Expert’s Title: Priscilla Kim Section M006 Hiscock Legal Aid Society Date: 12/8/11 Time: 4PM Gloria Chung Lawyer Expert’s E-mail: Expert’s Phone Number: (315)373-3602 [email protected] Interview Questions Question: What types of clients do you normally work with? When I worked for the Hiscock Legal Aid Society, the majority of my clients were the working poor and Notes: their families. My firm is not the one who will produce the maternity products we sell because we will make deals with other suppliers. Will my business still have some liability if a product (that Question: we sell but don't make) doesn't work and our customer complains? I do not deal with B2B related legal matters, but I suggest that you look into utilizing a business liability insurance policy. Notes: During you field of work, you must have dealt with many mothers and expecting mothers. What do you feel are their biggest needs? Question: I’ve worked with many mothers and most if not all of them seem to all think of taking care of their children and families first. They are self-sacrificing and especially for expecting mothers, they have Notes: many worries (financial concerns, etc.) and cares placed into providing for the new coming baby. Additional Notes 59 Primary Research Interviews Interview Details Student’s Name Expert’s Employer: Expert’s Name: Expert’s Title: Michael Madonia Section 006 Tim Hortons Date: 11/7/11 Time: 5:00PM Karllie Anne Barry Expecting Mother Expert’s E-mail: Expert’s Phone Number: (585)-899-9994 [email protected] Interview Questions Question: Notes: What are some necessary items that you personally need/want during pregnancy “gentle dental floss, like Reach Ultraclean” iPod (“I spend a lot of time waiting around ei doctos), Tums, suckers, “Mambino Organics Baby Belly Butter”, slippers, books and body pillow Question: Notes: How often are you using these products? Everything mentioned above daily Question: Notes: How much are you willing to pay for pregnancy items $40-50 Additional Notes 1. Gender Female 2. Age 21 3. 20,000 Household Income 4. Location Rochester, NY 5. Yes Are you a first time mother? 6. What trimester are you currently in 3rd 7. Where do you get information about pregnancy? Internet or “I ask my mom a lot of questions” 60 8. Are you interested in receiving monthly care packages for the duration of your pregnancy? Yes 9. Who would you purchase a pregnancy care package for? Myself 10. Would you be interested in purchasing care packages for baby showers? No 11. What would you say is the total you spend on the pregnancy (Not include medical) $1,200 12. Any additional comments or thoughts you’d like to share? “being pregnant sucks if you don’t have a good support group” “I like the idea of getting something after month in the mail vs getting products I need, it would be nice to get something to show your loved” “Now I spend most of the time, getting ready for the baby to come” “I would be more interested in the basket during this trimester and after the baby comes..I just don’t have the time or energy to do all I want” Primary Research Interviews Interview Details Student’s Name Expert’s Employer: Expert’s Name: Expert’s Title: Michael madonia Section 006 Date: 11/04/11 Time: 6:15PM Katie Giarrusso **Was pregnant mother Expert’s Phone Number: ( ) Expert’s E-mail: Interview Questions Question: Notes: Cocoa butter, Lip gross or nail polish, Crackers, a back scratcher, slippers, Chapstick Question: Notes: Question: Notes: What are some necessary items that you personally need/want during pregnancy? How often are you using these products? Cocoa Butter –“Used all the time (3-4 bottles)” Crackers- “that’s all I could eat” Back Scratcher- “my back stitched a lot” Slipper “I loved them” How much are you willing to pay for a service like this Around $100 61 Additional Notes Age when you were pregnant 17 Household Income 45,000-60,000 Location East Syracuse Tell me about your experience Being a single mom was horrible, the father didn’t step up and do this part. My parents were n ot supportive about I got pregnant at such a young age. “A service like this would of helped” Where do you get information about pregnancy? “Most of the time I called my doctor” “Sometimes I went to the internet” Are you interested in receiving monthly care packages for the duration of your pregnancy? Yes, I would of 15. Who would you purchase a pregnancy care package for? Myself, it would be too expensive to spend on anyone else What were the items you avoided Avoid the chocolate, tea, coffee. “My stomach couldn’t handle anything” What is the thing you disliked most about the pregnancy “The time, everything always took much longer than usual. “Not to mention I always felt gross” Anything additional comments or thoughts “I think it would be like nice to maybe get a personal thank you letter with the last basket, just thanking them for there service and wishing them luck” “ I wouldn’t want to receive any clothes I would prefer to do that on my own” “I wish I had more information about kick counting or kit” “You should also start thinking or something or a way to end the service if someone has the same situation as me” “I personally know it would kill me to service a care package after what happened” Primary Research Interviews Interview Details Student’s Name Expert’s Employer: Michael Madonia Section 006 SuperCuts Date: 10/30 Time: 2:00PM 62 Expert’s Name: Expert’s Title: Sabrina Marie Burkle Mother of one Expert’s E-mail: Expert’s Phone Number: (585)-749-1567 [email protected] Interview Questions Question: Notes: What are some necessary items that you personally need/want during pregnancy? Palmers cocoa butter, chocolate, vitamins, fan , bigger clothes (sweats), belly bands Question: Notes: How often are you using these products? The creams- everyday “I always craved chocolate and mac & cheese”. Used the vitamins from the OBGYN Question: Notes: How much are you willing to pay for pregnancy items $75-100 Additional Notes 1. Gender Female 2. Age 24 3. 60,000 Household Income 4. Location East Rochester, NY 5. Yes Are you a first time mother? 6. Where do you get information about pregnancy? Internet 7. Are you interested in receiving monthly care packages for the duration of your pregnancy? Yes 8. Who would you purchase a pregnancy care package for? Myself, “I think it’s a good idea it would of saved me a lot of time” 9. Would you be interested in purchasing care packages for baby showers? No, it’s too expensive if you had to buy 8 10. What would you say is the total you spend on the pregnancy (Not include medical) $1,500 63 11. Any additional comments or thoughts you’d like to share? “You should make sure the basket is worth the money, it should have more than that the retail cost in the basket” “I got hot a lot” – temperature wise Primary Research Interviews Interview Details Student’s Name Expert’s Employer: Expert’s Name: Expert’s Title: Michael Madonia Section 006 Full-time student at Daniel Webster College Date: 11/20/11 Time: 6:40 Samantha Savage Mother Expert’s E-mail: Expert’s Phone Number: (603) 275-5009 [email protected] Interview Questions Question: Notes: What are some necessary items that you personally needed/wanted during the pregnancy ? bio oil crackers, Tylenol, mouth wash, palmers, bath lotions, Belly bands, slippers, shoe inserts, boppy pillow, nurse pads during the 3rd, 1 or 2 pound weights with yoga ball Question: Notes: How often did you use these products 12-14 oz of bio oil - whole pregnancy 3oz a month - palmers 24 oz Question: Notes: How much are you willing to pay for a service like this $40 Additional Notes 64 Age 21 When did you get pregnant 19 Years old Household income $40,000 Location Windham, NH Child Daughter – two years old Describe your experience “excited but nervous” “I worry a lot at first because I was partying a lot before I was pregnant” What type of food item did you crave? Chewy, salty and cameral Where did you go when you needed information on the pregnancy internet –“wic” or doctors Would you be interested in a service like this? Yes Who would you be interested in purchasing these type of service for family friends myself Any other additional comments or insights “People are very nice to pregnant women” “at the end of the pregnancy I felt like a bimple” Primary Research Interviews Interview Details Student’s Name Expert’s Employer: Expert’s Name: Michael Madonia Section 006 Unemployed Date: 10/30/11 Theresa Butterazzi- Fiorica Time: 1:15PM 65 Expert’s Title: Mother of 2 Expert’s E-mail: Expert’s Phone Number: (585) 775-5424 ) [email protected] MAIN QUESTIONS Interview Questions Question: What are some necessary items that you personally need/want during pregnancy? Palmers Coca Butter ,Nipple cream but only towards the end of the pregnancy. “I loved my bobi fuly Notes: body pillow all the time, new undergarments Question: Notes: How often are you using these products? (“Used the palmers lot during the pregnancy”), Started using the full body pillow in the two trimester “I took pregnancy vitamins everyday” Question: Notes: How much are you willing to pay for pregnancy items $50-75 Additional Notes 1. Gender Female 2. Age 25 3. Household Income 50,000 4. Location East Rochester, NY 5. Are you a first time mother? No, second time 6. Number of children in your household, if not a first time mother? two 7. Where do you get information about pregnancy? Internet or Doctor 8. Are you interested in receiving monthly care packages for the duration of your pregnancy? Yes 9. If not, why would you not be interested? 10. Who would you purchase a pregnancy care package for? Myself, because giving it to a friend would to be expensive considering its a subscription service. “Unless my other sisters wanted to split the total cost of it for someone we all know” 66 11. Would you be interested in purchasing care packages for baby showers? No, as explained above 12. What would you say is the total you spend on the pregnancy (Not include medical) $2,000 13. Any additional comments or thoughts you’d like to share? “I really like the idea, when your pregnancy you feel fat and ugly and it would be nice to receive something every month knowing someone loves you “Maybe the last basket could have like some one-time products like diapers or wipes because I spend a lot of time towards the end of the pregnancy getting things ready for when the baby comes and it is time consuming” 67 Primary Research Interviews Interview Details Student’s Name Expert’s Employer: Expert’s Name: Expert’s Title: Ashley Stephens Section M006 MyBirthClass Date: 12/7/11 Time: 7:42PM Becky Rassmussen CEO Expert’s E-mail: Expert’s Phone Number: N/A [email protected] Interview Questions Question: What would be some primary concerns for a pregnant woman during her first trimester? What items would help alleviate them? Since the primary concern in the first trimester of pregnancy is nausea I would include some items like PSi bands or Preggie Pops. The Preggie Pops come in really good sour flavors like sour raspberry, lemon, etc and are made with natural essential oils that settle the stomach. I would also include a vigorous Yoga Routine that will keep them flexible and moving before there tummy gets big. Women in this stage also need naps more so than in the second trimester. Perhaps some sort of sleeping aid for power naps would be beneficial. I'm thinking an eye shade or a comfort pillow to begin early sleep training on the left side of the body. Maybe a natural lotion that relaxes the body with an ingredient like Chamomile. I like the idea of a name book too. Notes: Question: Have you noticed any problems with businesses and/or products meeting the needs of pregnant women? Part of the problem is that most of the products I really like for pregnancy are kind of expensive and might be difficult to budget into a gift basket. Aside from maternity clothing, books, meditative music for relaxation, there are few aren't very many low priced items I can think of off the top of my head. Notes: Question: Do you offer any other specialty items for pregnant women? A birth ball/fitness ball is a really good tool for the whole pregnancy. We have a really fun Cardio Fitness video where women can bounce up and down on the ball and get a great work ­out with the ball absorbing all of the impact. Along those lines, a yoga mat might be good with a prenatal yoga routine. Notes: Additional Notes 68 Primary Research Interviews Interview Details Student’s Name Expert’s Employer: Expert’s Name: Expert’s Title: Ashley Stephens First Steps Program, Kienzle Family Maternity Center Section M006 Date: 11/29/11 Time: 2:37PM Cathleen Miller Murphy Education Coordinator Expert’s E-mail: Expert’s Phone Number: (315) 470-5727 N/A Interview Questions Question: What is your experience in working with expecting mothers? I am a mother myself. Has a nursing degree and has been working as a part-time nurse at Crouse Hospital Notes: for ten years. Holds maternity workshops every month. Question: Notes: What are the services your maternity center offers? Lamaze classes, birth preparation classes, healthy eating workshops, baby screenings and informational sessions on prenatal care and environments. Question: Which needs of pregnant women do you feel are not provided for yet? A lot of pregnant women that come to our hospital travel long distances to get here. So I would say there is a Notes: lack of proximity of prenatal care and related maternity items and classes. Additional Notes 69 Primary Research Interviews Interview Details Student’s Name Expert’s Employer: Ashley Stephens Section Dendreon Date: Expert’s Name: Deneika Douse Administrative Assistant at Dendreon Expert’s Title: Expert’s E-mail: M006 November 16, 2011 Expert’s Phone Number: Time: 6:00pm ( 732 ) 306-6762 [email protected] Interview Questions What stage of your pregnancy are you in? How old are you? Are you a first-time expecting mother? Question: I recently gave birth to my son. I am 30 years old and I am a first-time expecting mother so I didn’t know what Notes: to expect during my pregnancy. Question: Notes: How did your life change after you became pregnant? I went on maternity leave during the 5th month of my pregnancy and found myself to have lots of free time at home and bored most of the time. Question: How was your baby shower? How do you feel about our gifting service? My baby shower was a blast and I am excited that you offer a gifting registry for these events. I would love to receive care packages monthly because I will occupy my time at home. I would also appreciate the advice Notes: and customization of packages by experts who know what they’re talking about. Additional Notes Primary Research Interviews Interview Details Student’s Name Expert’s Employer: Ashley Stephens Section Albert Einstein Hospital Date: Expert’s Name: Cheryl Arscott Expert’s Title: Expert’s E-mail: Medical Receptionist [email protected] M006 November 4, 2011 Expert’s Phone Number: Time: 5pm ( 347 ) 628- 2389 70 Interview Questions Question: Notes: I have three children and am 50 years old. Question: Notes: Are you a first-time or experienced mother? How old are you? Do you have any recommendations of what products we should sell for pregnant women? I would recommend selling sleeping pillows for backaches Question: How do you feel about our care package service for pregnant women? I love this idea. When I was pregnant, there were few things available to meet my pregnancy needs. Something like this is definitely appropriate to serve mothers because when you’re pregnant, there are some things you don’t think about taking caring of because you have nausea and physical discomfort that disables Notes: you from taking the time to shop for pregnancy needs. Additional Notes Primary Research Interviews Interview Details Student’s Name Expert’s Employer: Expert’s Name: Expert’s Title: Expert’s E-mail: Ashley Stephens Section M006 St. Phillips and James School Date: 11/5/11 Time: 5PM Zahirra Khan-Willins 8th Grade Educator [email protected] Expert’s Phone Number: ( 646 )302-3546 71 Interview Questions How did your behavior change when you became pregnant and how much money did you spend for your pregnancy? Question: I became a shopping fanatic when I became pregnant. For my first pregnancy, I spent over $1000 for myself Notes: and maternity wear and things for the baby’s nursery. Question: Notes: How do you feel about our service and would you purchase our monthly care packages? Being able to have special care packages every month that I can enjoy would attract me to your kind of service. Question: What were some of your pregnancy symptoms? My first pregnancy was very extreme. I had extreme morning sickness where every day I threw up so I would need something to settle the stomach. Also, any comfort items would be helpful too because I had back pain Notes: and things like books to relieve my stress. Additional Notes 72 Interview Details Student’s Name Expert’s Employer: Expert’s Name: Expert’s Title: Chris Stefanec Section Tuesday Self-employed Date: Oct 16th Deborah Horner Child care provider Expert’s E-mail: [email protected] Interview Questions Question: See document below Notes: Question: Notes: Question: Notes: Additional Notes See document below Time: Expert’s Phone Number: ( 315 ) 360 4675 73 12. What type of child care do you specialize in? I provide child care with children from 12 months up to age four and five. I also have experience with children with autism and ADHD. 13. With this being a crucial stage, how many children to do you watch at a time? Typically, my partner and I only take about 4 to 5 children at a time, especially if they are very young. 14. Are there any special products that women use for their children? Many women purchase a large supply of items they know they are going to need for their child such as bottles, rubber spoons, clothes, pacifiers, wipes, diapers, small storage containers for foods. 15. Do you think that if we provided some of these products to women through our care package, this would be convenient to them? Yes, once the child is born, many women buy an abundance of these products. They can never have more than enough of these sorts of products. We typically purchase some of these products or have mothers purchase a back up of the product in case they forget them or lost along the way. 16. How much do you think mothers typically spend on products such as these? I would say once the child is born, $100 or more per month is probably not unrealistic. Although many of these items are probably necessity items than novelty. 17. How much does the day care spend to have extra materials like these on hand in case of a shortage? Our cost varies since mothers typically leave an extra item or two in case one is lost. We likely spend $50 ­75 per month or so just to have some of these items on hand. 18. Being a mother yourself, are there any products you tried to find during pregnancy that were difficult for you? I always tried to find special pillows that worked well for me while pregnant. Also, many moisturizers and lotions that worked well for me were difficult to find. I did not have many health or stress related issues. Primarily discomfort was most prevalent for me. 19. How many products did you try before finding the right products? I tried 2 or 3 pregnancy pillows before I found one that I liked best. I also tried many lotions and moisturizers before I found what I liked best. I first began trying product recommended to me by friends and family, but it takes times to find what works for you. 20. Do you think if we offered an array of product throughout our series of baskets women, or yourself would find this appealing? During pregnancy I believe women would be very interested in a product like this. I also sought out ways to discover new products, but there was nothing like this while I was pregnant. I typically tried new items after reading or seeing an advertisement about them in a magazine or online. 21. Have you ever come across a product like this in the market? I have never came across a pregnancy package like this, although there is a product like this that deals with cosmetics, where women can sample new products each month. 22. With that said, would you purchase the product for yourself or another as a gift if it were available? I believe I would have definitely purchased something like this for myself. Depending on the price, I would definitely consider purchasing a product like this for a relative or close friend of mine. 74 Interview Details Student’s Name Expert’s Employer: Chris Stefanec Section Tuesday Faxton- St lukes hospital Date: 10/24 Expert’s Name: Nicole Davis Expert’s Title: RN Expert’s E-mail: Interview Questions Question: Notes: Question: Notes: Question: Notes: See document below Expert’s Phone Number: Time: ( 315 ) 723 5533 (personal phone) 75 Additional Notes See Document Below 12. What is your position at Faxton ­St.lukes hospital? I am a Registered Nurse at Faxton ­St.Lukes. Although I can be placed anywhere in the hospital, I have been primarily working with pregnant women the last year or so. 13. How many years have you been in this position? I have worked for the hospital for about three years now. The first two years, I worked in many different areas of the hospital, but I would like to gain more knowledge in maternity area. 14. After hearing about our product what types of products would you recommend we place into some of our baskets? Since I do not deal with the delivery of the babies often, the majority of the women I see are having problems with discomfort, or health related. Stress is always a factor for these women also. 15. While women are pregnant and come into the hospital is there one thing that women complain or worry about most? • Discomfort • Pain • Health ­ nutrient levels • Cramping • Indigestion 16. What type of product would you recommend to help solve this? As far as products for you to provide I would recommend pillows, vitamins, as well as informational material. Many women, especially if this is there first pregnancy lack information and knowledge, because this is a new experience for them and do not know what to expect. 17. Do you think a pregnant mother would find convenience in receiving some of these products each month instead of going out there way to search for them? I think it depends on the woman, some woman although pregnant like to be really active. I do believe the knowledge as well as the array of products they would receive each month, is something that they would not receive from another source. Many women ask me where the best 76 place to pick up pregnancy pillows, or products to comfort them can be found. 18. Do you think that women are price sensitive to these sorts of products? I do not think women would be price sensitive, as long as it is reasonable. This is a tough, lengthy process for many women, and will do whatever they can to be comforted and pampered during this time. 19. Are there any other common things women have trouble with other than discomfort, stretching, and nutrition? Other than medical related problems, other problems include itching, sleeplessness, nausea, and swollen ankles. 20. Do you thing that if we included items in our product that are not pregnancy related, but just for pampering them would have a positive effect? I think many women could use products that can take there mind off from thinking about it pregnancy for a short period of time. Women become stressed and worrisome often throughout pregnancy. I believe products like this would fit your product well. 21. Once the baby is born, are there any other issues that women have that could help us extend our product line in the future? Many women still look for nutritional related items, as well as items to get them back in shape to they way they were prior to pregnancy. I believe product like this along with items to take care of their new addition would be a great way to retain your customer. 22. Would you be willing to serve on our board of directors, to help provide us with any information we may need with our business? Sure, If there is anything I can do to help you and your team be successful with your product, let me know. Interview Details Student’s Name Expert’s Employer: Chris Stefanec Section Tuesday NA Date: 10/30 Time: 77 Expert’s Name: Expert’s Title: Cassandra Stefanec Relative- new mother: prospective customer Expert’s E-mail: Expert’s Phone Number: ( ) [email protected] Interview Questions Question: See document below Notes: Question: Notes: Question: Notes: Additional Notes See below 11. After hearing about Momma Mia’s product, would you be interested in receiving this product as a gift or purchasing it for yourself? Yes, finding many of these products consumes a lot of my time. Usually because the first product I try is not always the best for me so I am constantly trying new brands until I find one that works best for me. Also many stores only carry certain brands of products so a lot of the time I was unable to get everything I needed or liked from one source. 12. Through research we have found that many consumers are not price sensitive in this type of product, what would you pay monthly for this sort of product? 78 13. 14. 15. 16. 17. I believe anywhere from $50 to $100 is reasonable to spend for each basket. Typically, unless you were going to a Wal ­Mart or Target etc, you are not able to get all of products from one store, and if you are they me be all on brand, so I end up traveling from store to store anyways, which not only consumes money spent on the products but probably just as much to drive to and from these stores. What types of product would you like to appear in the basket? If I were to purchase this for myself or someone else I’d like to receive lotions, pillows, and some informational materials especially if this is your first pregnancy, as it was mine. I would not only purchase the baskets to try some of these products, but just to have some excitement while pregnant. Pregnancy is boring at times, and you just want some pampering to take your mind of it for a short time. Do you believe this provides convenience to you while being pregnant? I do believe it would be convenient for any woman. As I mentioned before, I used to travel from store to store to get the products that worked best for me. As your pregnancy moves from stage to stage, it gets tougher and tougher to be able to do everything you are used to being able to do. Would you prefer to receive products at the beginning, middle, or end of each month? For me I wouldn’t really have a preference when I received the product, as long as I got the package once month, in a timely manner. Also I think maybe shortening the time between each basket toward the end of the pregnancy might be beneficial to mothers since you will have more free time and doing less activity. While you were pregnant do you wish a product or service like this was being offered? My mother and I actually searched for something like this while I was pregnant. We were able to find magazines and books that you could receive monthly, but no packages that sent you a variety of products to you. What types of products or brands did you primarily use during your pregnancy? I used a variety of brands from Johnson and Johnson, to nivea, and some brands I’ve never heard of as well. It just took me sometime to try and find which brands product that I liked most. Before you re pregnant you never really think about these things, and end up taking recommendations from other pregnant women or doctors, but these brands still may not be the best one for you. 18. Were you able to get all of these products, and information from one source? Not at all, some products I have to travel between stores to get. After awhile I just started ordering the product from Amazon so that it would just be delivered to my door rather than having to continue to travel around once a week or so. 19. How much do you believe you spent on products monthly? If you include everything such as books, creams, pampering items etc. I would say that I spend $80 dollars or so each month. I was always purchasing different products, to find which I liked best or just to compare to others. 20. If our product provided convenience for you, as well as provided a significant amount of the items you may have discovered or used during your pregnancy, would you look to continue your business with Momma Mia after the pregnancy? Definitely, a lot of the health care products such as vitamins, lotions, and other products I 79 discovered I have continued to use a couple months after my pregnancy now. I have also looked to find products by the brands that I like for my baby also. Interview Details Student’s Name Expert’s Employer: Expert’s Name: Expert’s Title: Chris Stefanec Section Tuesday Prospective customer: male Date: 11/5 Zhu Lin Secondary market research Expert’s E-mail: [email protected] Interview Questions Question: Time: See below Notes: Question: Notes: Question: Notes: Additional Notes Expert’s Phone Number: ( ) 80 See below 11. After hearing about Momma Mia’s product, would you purchase this product as a gift for your wife? Yes, while my wife was pregnant, her mother and I tried to find a product like this or something similar that we could purchase for her. It sure would have saved me many trips to and from the store. 12. Through research we have found that many consumers are not price sensitive in this type of product, what would you pay monthly for this sort of product? I believe as a gift for someone especially that is very close to you, price is not as much of factor if the benefit of the product will out weigh the monetary value, as I think this would. I would say anywhere between $60 and $80 would be reasonable monthly. 13. What types of product would give you interest in purchasing this product for someone? I believe product that are informational, health minded, provide comfort, as well as something not pregnancy related at all would be beneficial to the consumers of this product. 14. Do you believe our product would provide convenience to you and your wife while you’re expecting? Absolutely, I totally believe a product like this would help introduce us to new products and information we may not have found in the store. It also gives my wife something to look forward to every month. 15. Would you prefer to receive our product at the beginning, middle, or end of each month? Depending on when we place our order, I believe receiving the product once a month would be sufficient. But if the product was sent at a specific time every month for example, the 2nd week of each month, we would know when to expect the care package and become excited about receiving it. 16. Have you found any gifting or mail order services similar to this for men, and if not would you purchase it if one was offered? Well, I would certainly not purchase a pregnancy basket for myself (laugh). If there was a package wear I could receive new men’s trial products of toiletries etc. I would definitely be interested in the product, but I have not found any specific male related products of this type. This service reminds me of a cooking or wine club. 81 17. What types of products or brands do you believe would provide comfort to your wife during this process? As mentioned previously, I think any of the products from those categories would be sufficient. Possibly even trial samples of new product in the market along with your regular sized product would also be interesting. If the package provides value to me, so that I am saving money than if I were to go out and buy all of these products, would be the most beneficial to me as the purchaser. 18. Do you believe that the ability to get all of these products, and information necessary from one source has a significant advantage over acquiring these goods from many other sources? I do believe the ability to receive this package in the mail is beneficial, especially if I am saving money. It already reduces the number of times that I will be asked to stop at the store. Although we may consider purchasing additional items of a certain product, since the baskets are pre customized, unless we are able to purchase it from you. 19. How much do you believe you spent on products like these monthly while your wife was pregnant? I’m not sure how much she spent monthly, but I know that I spent at least $50. I’m sure the two of us combined was well over the $75 you plan to charge for your product, which is why the consumer would see value in it. 20. Do you believe that this product would be even more interesting if it provided info and a product or two, for the father? Even if were at a slightly higher cost per month? I definitely believe informational material just for fathers would be a very good idea, especially since many fathers are clueless about the whole process. I found myself searching the web for information, and found some valuable tips, although receiving it in the mail would be of great benefit to my wife and I. Interview Details Student’s Name Expert’s Employer: Chris stefanec Section Tueday Walmart Date: 11/11 Expert’s Name: Kathy Bluett Expert’s Title: Expert’s E-mail: Maternity retail manager [email protected] Expert’s Phone Number: Time: ( 315 )368-5542 82 Interview Questions Question: See document below Notes: Question: Notes: Question: Notes: Additional Notes See document below 12. After hearing about our product, do you believe it would be successful in the market? Yes, I do believe that it would be a good seller in the market. Many customers come in to the store looking for a gift basket if they are going to a baby shower, but we do not carry anything like that in the store. I do see however some customers creating their own gift baskets every so often. 13. What type of products do women seek most from your department? Common products include informational materials, lotions/moisturizers, as well as small products to be prepared for when the baby arrives home. Many women also look to purchase vitamins and supplements to maintain adequate nutrition, although these types of products are usually in the pharmacy area. 14. Do you believe it is possible to assemble a basket of goods that women would appreciate and get use of each month? I definitely believe a product like this would sell in the market, especially if it was sold in a retail store. There are money products you can put into the basket, and do not all necessarily have to be pregnancy related. I find many women just looking for comfort 83 15. 16. 17. 18. 19. 20. 21. and stress relieving items. In your position what happens if you do not currently supply a product that a consumer may want, or one that has an increasing demand? Most of the time we can get the customer the product they are looking for, or one that is similar in nature from the company website and have it shipped to their home. If the product becomes in high demand we can sometimes get the product into the stores, and on to the shelves. Most of the time the company, or our vendors of our products our good at predicting trends in the market, and we can usually obtain similar products to what the consumer is looking for. Do women know what products are best for them during each stage of pregnancy, and how do they typically determine this? Women typically do not know, from my experience. Women try items that are recommended to them by others. But a lot of the time, women may try product after product until she finds what is best for her. The majority of our products on the shelf sell very well, for the reason that women are trying each product we offer until they are satisfied. Do these choices and variables have direct correlation in the demand and turnover of specific products? Some products do sell quicker than others such as Gerber, Johnson and Johnson, or brands that have a reputation in the market. I would not say consumers are brand loyal, but they are willing to try something they are familiar with first, which is probably why some brands sell faster than others. As the birth is approaching do women still seek informational materials, and what products become more of a demand? I have found that women can always use more information, although the majority of the health related information is usually the first concern. As the pregnancy goes on, first time mothers still look for information on what to expect, toward the end of the pregnancy, and after the child is born. Also many women begin buying items they know they will need such as diapers, wipes, pacifiers, clothes, and blankets just to be prepared. Do you believe the price of our product would be competitive in the market, especially with the prices a large supplier such as Wal ­Mart would be able to provide? I definitely think you can provide consumers with relatively close to the same retail value of product. Obviously you know that some prices can not be matched just due to the volume and turnover of product within the company, few retailers can. Primarily, the lower cost will more so benefit a companies bottom line rather than being passed on to consumers. What recommendations do you have to possibly retain these women as customers after the child birth? If customers are satisfied with your original product line, I do not see why they would not want to continue to be a customer with you for another year or so if you were to provide them with more baby related products, as well as a few things for them as well. I do think the Mommy and me basket that you send to them when the child is born, would be a great way to introduce them to what to expect, if they were to sign up for the next series of baskets. Do you find that women are typically picking up these products from the store, or do you believe men play a significant role in the selection of products also? I would say I encounter women more so than men shopping for these products, although men do pick up many of the products once women have settled on what to use, and what is best for them. Primarily, the female shopper is more likely to inquire about a product for them, opposed to the male picking up the product. 84 22. Would you be willing to serve on our board of directors, and help provide us with information and select the correct products for our baskets? I’d love to serve on the board of directors for your company. The idea seems very feasible, and could be a hot seller in the market. 85 Works Cited D&B: The Million Dollar Database. Toys ‘R’ Us. Dun & Bradstreet, 2011. Retrieved from http://www.selectory.com.libezproxy2.syr.edu/Selectory/SummaryView/InlineProfile. aspx. IBISWorld. Children’s and Infant’s Clothing Stores in the US: 44813. September 2011. Retrieved from http://clients.ibisworld.com/industryus/default.aspx?indid=1068. IBISWorld. Women’s Clothing Stores in the US: 44812. August 2011. Retrieved from http://clients.ibisworld.com/industryus/default.aspx?indid=1067. Mergent Online. Competitors: Destination Maternity Corp. Dec 09 2011. Retrieved from http://www.mergentonline.com.libezproxy2.syr.edu/competitors.php?compnumber=7 6114. Silver Stork Research Packaged Facts. The U.S. Mom Report 2010. New York, NY: Silver Stork Research, 2010. Web. Nov 2010. U.S. Census Bureau. NAICS 44812: Women's Clothing Stores. May 04 2011. Retrieved from http://www.census.gov/econ/industry/def/d44812.htm. U.S Census Bureau. NAICS 44813: Children’s and Infant’s Clothing Stores. May 04 2011. Retrieved from http://www.census.gov/econ/industry/products/p44813.htm. ...
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This note was uploaded on 01/02/2012 for the course EEE 457 taught by Professor Haynie,j during the Fall '08 term at Syracuse.

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