Yeti Card & Gifts (« Yeti ») is a well-established business that sells a variety cards and gifts. Yeti’s motto reads « Fun and Functional, & Funky »; Yeti started two years ago with a gift shop that sold Asian home decor. Yeti outgrew its original location quickly and is now located inside the Wigman Hospital/Physicians & Scurgeons South building, which is open Monday to Saturday 10 am – 6pm. Yeti is currently finishing tenant improvements on their second location, a space in University Heights. The grand opening is scheduled for July 4.

The Market

Yeti has achieved something no other retail card/gift shop has ever been able, and successfully appeals to two distinct target markets. Yeti&#8217’s first target group is university students. This group is identified by their younger age, higher disposable income relative their household income. Many students will be living at university for the first times. Students like to make the most of their income, even if it is not enough. This market segment contains 38,833 possible customers.

The second distinct segment that Yeti has been successful in appealing to is the university faculty and staff, Wigman Hospital staff, and the greater Cleveland Heights/University Heights community. This segment is an older, more mature market relative. They are seeking a secure and friendly environment that is nostalgic but also youthful with excitement. This market has potential customers of over 191,590.

Competitive Edge

Yeti’s competitive edge is their ability to effectively serve both market segments at the same time, a feat that no other gift/card shop has been able to do. Yeti is able to do this because they have two competitive advantages. The first is a wide product portfolio that appeals to both markets. This idea is well captured by Yeti’s motto, « Risque not Raunchy ». Although some of these products can be considered offensive or inappropriate, none of them are outlandish. This creates a welcoming atmosphere where everyone can feel at home. This wide product span helps allow Yeti to serve two distinct sets of customers. It is not sufficient to have a large product portfolio in order to be able serve two distinct customer segments. The second element of their competitive edge is the high level of customer service that supports the broad product selection. Customers feel welcomed and appreciated by the store. Every Yeti employee receives training to ensure that customers have a pleasant, positive, and helpful shopping experience. The sales staff realizes that the job of their employees is to help customers with any type of assistance they need. The customer will feel That Yeti is available to help them.

Yeti Cards & Gifts is now open for nearly two years and has already proven their ability to satisfy 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 planning for the grand opening in their second location. Their overall growth looks good. 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.

1.1 Mission

Yeti Cards & Gifts’ goal is to offer new and exciting products in a friendly environment for staff and customers. Customer service is our number one priority.

#8220Fun Functional & Funky that’s Yeti.

1.2 Keys to Success

These are the keys for success

1. Offer products that have a high quality/value relationship and are not widely available. This is important for maintaining the niche markets discussed in the Executive Summary.

2. Advertising and promoting in areas that our target customer base will learn about our store.
3. We must constantly review our inventory and sales. If necessary, we will adjust our inventory levels.

1.3 Objectives

Yeti has 2 objectives for the organisation. These goals are lofty but can be achieved. Tracking and developing progress

toward the goals, the organization will push everyone to perform their best.

• Open a second store in the University Heights community, increasing visibility and sales potential.
• In Year 4, open a 3rd store