Yeti Card & Gifts (“Yeti”) is a well-established business that sells a variety cards and gifts. Yeti’s motto is “Fun, Functional, and Funky, That’s Yeti.” Yeti was established two years ago as an Asian-themed retail store that specialized in home decor and Asian gifts. Yeti quickly outgrew its original location and now is located in the Wigman Hospital/Physicians & surgeons South Building. It’s open Monday through Saturday, 10am – 6pm. Yeti is currently working on tenant improvements in their second location, University Heights. The grand opening of the space is set for July 4th.
Yeti has achieved something no other retail card/gift shop has ever been able, and successfully appeals to two distinct target markets. University students are Yeti’s first target market segment. This segment is identified by having a younger age and a higher disposable income relative the household income. Many students find that university is their first time living away from home. Students love to make use of their disposable income to the fullest extent, sometimes even exceeding their financial capabilities. There are over 38,833 potential customers in this market segment.
Yeti also appeals to university faculty, Wigman Hospital staff, greater Cleveland Heights/University Heights communities. This segment is a relative older market. They are looking for a safe and friendly atmosphere that provides a sense of nostalgia mixed with youthful excitement. This segment could have over 191,590 customers.
Yeti’s competitive advantage is their ability serve two market segments simultaneously, something that no other gift/card shop can do. Yeti has achieved this feat by using two competitive advantages. First, a broad product range that appeals both to target markets is the key element. This idea is well captured by Yeti’s motto, “Risque not Raunchy”. Some of the products are a bit too extreme for good taste, but nothing is offensive or outlandish. This creates an atmosphere that has an edge, but one in which anyone would feel comfortable. Yeti is able serve two distinct groups of customers thanks to its extensive product portfolio. However, a wide product range is not enough to satisfy all customer segments. The customer service is another important aspect of their competitive edge. Customers feel comfortable shopping at the store and are welcomed. All of the Yeti employees are trained to create a helpful, gracious, welcoming experience for all customers. Sales staff understand that their job is to assist customers in any way they can. The customer will feel That Yeti is available to help them.
Having been open now for almost two years, Yeti Cards & Gifts has proven that they have been successful in meeting the needs of two distinct customer segments. Dan Gordon and Ishada Gordon are the husband and wife team behind the Yeti concept. They bring a wealth experience and skills to their company. Yeti is currently getting ready for their grand opening of the second location. Its overall growth looks promising. Sales forecasts indicate revenue of $169,000 for Year 3 and $180,000 for Year 4 with net profit of 5.96% and 7.59% respectively.
Yeti Cards & Gifts’#8217’s goal is to bring new products to customers and staff in a fun and friendly environment. Customer service is our number one priority.
#8220Fun, Functional and Funky, that’s Yeti.
Success keys 1.2
These are the keys for success
- You can offer items with a unique quality-value ratio that aren’t available anywhere else. This is critical to maintain the niche market segments mentioned in Executive Summary.
- Advertising and promoting in areas that our target customer base will learn about our store.
- Continuously reviewing our inventory and sales and adjusting our inventory levels accordingly.
Yeti has set two goals for the company. The objectives are lofty, yet achievable. It is possible to track progress and help develop it
toward the goals, the organization will push everyone to perform their best.
- To increase your visibility and sales potential, open a second shop in University Heights.
- In Year 4, open a third store