Allied North Marketing Plan

Executive Summary

Allied North is a local clothing company founded in Alberta by two young entrepreneurs,

Samuel Mckechnie and Douglas Marsten. Both individuals had a strong passion for business,

fashion and helping others in whatever way they possibly could. This led to the inception of

Allied North and thus began a journey to improving the lives of others through their clothing.

The naming of the company sprouted from the idea that they wanted to create a company that

would become allied with people around the world in order to initiate change. Currently, the

company's tagline is Join the Alliance.

Their focus to help others led to the decision to donate 20% of all profits to charities that

they have chosen to partner with. While the company is still in the beginning of its creation, the

goal is to create four different lines of clothing under the Allied North brand. Each line would be

partnered with a certain charity and 20% of the profits from that line of clothing would be sent

directly to the specific charity. For example, the first line of clothing put out is the BLUE line

and ties in with helping provide clean water for those around the world. Allied North has already

partnered with and set up a campaign with Charity Water, one of the most well known water

related charities in the world. The next three lines have yet to be announced, as they plan to

release them in succession of each other so as to give consumers something to follow and look

forward to.

The overarching mission of Allied North is to improve the lives of those less fortunate,

while at the same time providing a fashionable line with quality products at a low price. Moving

forward, the company has goals to grow as a company and increase their reach in the Alberta

market within the next five years.

 Situational Analysis

Key Performance Indicators

It is important for an E-commerce website to be able to track its performance in order to

see if they are successful. A great way for a business website to do this is through Google

Analytics. Google analytics is an accessory through Google where you can set different targets

and track your Ad performance pertaining to how much traffic you get through your site. It is a

great tool to use in order to see real time data that reflects how well you are doing. For instance,

if your performance is low, you're able to make changes promptly to get the best out of your Ad

and increase visits to your website. We believe that Allied North should use Google Analytics as

it is such an influential tool to track their Key Performance Indicators (KPI).

Sales. The first indicator Allied North should be concerned with is their sales. It is

important to know how much you are selling in order to see if you are making a profit. A great

way to do this is through conversion rates, shopping cart abandonment rate and inventory levels.

Conversion rate is the rate at which the consumer actually buys a product from the website.

Allied wants a high conversion rate which will tell them the website is performing very well. The

shopping cart abandon rate is somthing Allied North can use to track how many people pick out

items but then turn back last minute. If this rate is high, they can use specific techniques in order

to convince the consumer at the point of sale to convert and finalize the purchase. Another

efficient way to track performance is Allied Norths inventory levels. We encourage them to set

high/low inventory tracking techniques in order to measure inventory turnover. Inventory can be

a company's most expensive asset, thus you want high turnover to limit the liability of inventory

just sitting and not making money.

 Marketing. Marketing KPIs are a great way to see if you are doing the right things to get

the most out of your website. We recommend Allied North use social media, pageviews per

visits and time on site. Social media is a great way to get awareness out for your company and

you can track how many followers you have. More followers you have the better performance

you're more likely to have and the levels of engagement. Allied North needs to have an optimal

social media platform that is expanded through all mediums. As mentioned above, the use of

Google Adwords is imperative and a great way to maximize performance. Allied North can use

Adwords to track pageviews per visit and time on site on specific ads they use.

Customer Service. Another KPI we recommend for Allied North is customer service. It

is important to know how your customers feel about your product and service in order to

maximize benefit to the company. Among other techniques Allied North should provide online

testimonials, e-mails and calls in order to generate a relationship base between the business and

customers. We believe the customer is always right and you can track how the customer feels

about your product by listening to the testimonials and acting on the suggestions that arise.

Another great way to track customer service performance is by sending quarterly email updates

to the current customer base and give the customer the opportunity to give feedback and reach a

customer service representative at any time.

Performance. The last KPI we see as being important for Allied North is the ability to

track performance inside the company, specifically pertaining to employee performance. Once

Allied North grows to a well established brand, they will require more employees and personnel

to run the day to day activities and execute on their objectives. They can accomplish this by

conducting annual surveys that question employee moral, work environment and appropriate

wage rates. This information will allow the company to understand how the employees feel
about working at the firm and give feedback on work performance. Without happy employees

that work hard for your organization there is potential for setbacks on performance and overall

organizational growth.

SWOT Analysis

In order to analyze Allied Norths current situation, both internally and externally, we

have performed a SWOT that can be found in Appendix A.

Strengths and Weaknesses. They have a strong aesthetic design which will lead to

brand awareness in the future if properly marketed. Furthermore, through e-commerce Allied

North is able to reach worldwide. Allied North has partnered with Charity Water, which is a

well-known not for profit organization. This partnership helps propel Allied Norths reach and

gives validity to their stewardship efforts. Furthermore, the company is unique compared to its

local competitors in that it is charity based and is donating 20% of the proceeds to a developed

charity. There are numerous other charities that are available for future partnership, which will

help in the growth of the overall business. With that, there are weaknesses evident within the

business such as a lack of awareness on the internet. When you type the company into Google,

they are not the first business that pops up unless you include clothing in the keywords.

Furthermore, the two owners also have limited expertise in running a business and are currently

living in different cities which hinders communication and synergies. They also do not have a

plan as far as funding, which is a concern for future growth. Finally, the website is not completed

meaning that customers can not yet see designs or purchase products.

Opportunities and Threats. There are external factors that serve as opportunities for

Allied North. Firstly, the social responsibility trend amongst consumers has increased in recent

years and customers are now shifting towards supporting social needs. Continually, because
consumers will support social responsibility based upon their own social interests, they are more

likely to be loyal customers and identify with the brand. Furthermore, there is a growing trend to

support local businesses as well, and it is shown that consumers will pay a premium for products

that are locally produced or support local charities. (Lincoln, K., & Thomassen, L., 2008)

Finally, the e-commerce trend is expected to increase, which is an opportunity for Allied

North to tap into a large pool of potential customers. However, this same market also presents

threats to the viability of the business due to the fact that the target market may not have a large

amount of disposable income. Furthermore, there is a current downturn in the economy within

Alberta meaning that the local community is acting more fiscally responsible, especially in terms

of luxury items such as apparel.

Market Trend Analysis

As previously mentioned in our internal analysis, the market for e-commerce businesses

is on the rise. According to Statista.com, $63.5 billion (US) in retail e-commerce revenues was

generated in 2015 and online sales are expected to increase to $100 billion in 2019. Although

this is an American statistic, we can assume that this will also be the general trend for Canada as

well. Furthermore, apparel and accessories is the most popular category for online selling in the

United States. These trends are huge opportunities for Allied North in that they have support

from the current market to generate profit. If consumers are already more likely to purchase

apparel and accessories online, Allied North can capitalize on this through marketing techniques

and gain a portion of the market. Finally, although 86% of retail purchases are still made offline,

66% of those are web influenced sales. This means that Allied North can at least create brand

awareness and loyalty through their website and aim to partner with brick and mortar locations in

the future to carry their products as they grow into a larger company.
Environmental Analysis

Political. In order to understand Allied Norths market, it is essential to consider the

environment they are operating within. Politically speaking, there are several ways in which the

government can affect the companys business. Firstly, if they choose to sell out of province they

must be aware of when to charge a sales tax (such as GST, HST, PST). Similarly, they should

consider additional taxes when selling to other countries as well as take into consideration the

conversion rate at that given time. There are methods that can factor this in automatically to

ensure ease of sales for the business. Additionally, they may have to register their business

within other provinces and countries as well, even if they are already registered within their

home province of Alberta, and they must adhere to the specific Consumer Protection Acts of

each province. Allied North should also provide a detailed Terms and Conditions section for

purchases and see to it that their customers have to click Accept in order to ensure that they are

aware of all the information affecting the sale. Anti Spam Laws should also be taken into

consideration in order to avoid breaching consumers rights. Finally, they should be aware of

current events affecting the marketplace that may directly impact their business, such as the mail

strikes that have been going on recently in Canada.

Economic. On an Economic Level, Allied North should make sure that they are paying

strict attention to the current state of the economy. More specifically, they should consider any

rises or declines in the inflation rates, interest rates, foreign exchange rates, foreign direct

investment, as well as overall trends that seem to be occurring in the market. For example, a

recession within the economy could have a severe impact on sales. According to an article by

CBC written in June of 2016, Alberta is still in a recession and will remain in one until 2017

(Alberta will stay in recession, June 2016). This could drastically affect the future of Allied
North as local consumers may not be interested in spending on items such as clothing in the

current term, however things could pick up in the coming year when things start turning around.

Social. Allied North should pay special attention to any current trends that could be

affecting their business in the social environment. Furthermore they should be extremely familiar

with their target market, including specific information on the demographics. In Allied Norths

case, their core demographic would be millennials aged 15-33 who are active in an online

environment and interested in supporting a reputable cause. A 2015 report put out by the Inland

Institutional Capital Partners analyzes the shopping patterns of millennials. The report concludes

that nearly 80% [of millennials] buy in store after researching online, and they prefer to shop

local [and] favor responsible retailers (Inland Institutional, 2015). These facts all support Allied

Norths business model as they target millennials, are a local business, and they are socially

responsible in the sense that 20% of profits go directly to charity. According to Statista.com,

more than 40% of worldwide internet users have bought products or goods online which

speaks to the emerging prominence of E-Commerce. Furthermore, in 2013 US mobile

commerce revenue amounted to more than 38 billion US dollars, proving that consumers are

using their mobile phones to shop online more and more (Statista and Market Data, n.d.).

Therefore, Allied North should ensure that their website works well from different mobile

phones. While these trends are mostly all favorable for ANs business, it is important that they

are aware of all social trends in order to remain competitive.

Technical. On a technological level, Allied North must remain as competitive as possible

in order to remain relevant. In regards to payments, they are currently utilizing PayPal and have

also purchased a mobile card reader that users can swipe in person in order to complete

payments. However, in order to stay on top of the trends they could consider incorporating Apple
Pay into their business as it is becoming a growing trend. In relation to the manufacturing and

shipping side of things, they should try to stay as informed as possible about upcoming

technological advancements that could make things cheaper and more productive for them, such

as automation. Allied North does not yet have the online store up and running on their website,

therefore they should immediately focus on creating this section. Seeing as though their entire

business is ran using technology for their website, they should constantly be checking that their

site is easy to use and there are no flaws for consumers.

Legal. Allied North must be familiar with all legal factors relating to their business

including legislation and laws. For example, there are several Anti-Spam laws that they should

be aware of when sending out promotional emails or advertisements. They should also have clear

terms and conditions, and policies laid out on their website regarding different aspects of the

business including shipping and receiving, privacy of information, payment information etc.

Another Act they should consider would include the Uniform Electronic Commerce Act, which

is a general piece of legislation that attempts to cover all documentation relating to e-commerce.

While all of these laws are applicable to Allied Norths business, there are likely many more that

they must do their due diligence in researching in order to stay on top of the legal aspect of their

company.

Economic. Finally, Allied North should be well informed about the physical

environmental factors surrounding their operations. Seeing as though the company is strictly

online, there is no physical location that they operate out of which ultimately helps reduce their

environmental footprint. However, they should be aware of the impacts of shipping their

products from Vancouver, where they are manufactured, to Calgary at their central location.

Overall, the physical operations of the company provide few environmental impacts in
comparison to larger companies. Additionally, Allied North places a large emphasis on the

environment as seen through their goal to donate 20% of their profits to a reputable charity, for

example Charity Water for their first line of clothing.

Intermediary Analysis

Allied North currently has a manufacturer called SanMar Canada that is based out of

Vancouver, British Columbia. This manufacturer sells and ships the physical product to Allied

North where they are located in Calgary, Alberta. The owners of AN then take the shirts into

Iconic Embroidery in Calgary to get the prints on the shirts done. After the prints are finished,

the company is then able to sell to the consumers. If customers are local, they will generally meet

with the customer in person to facilitate the exchange, but if they are not local then they will

proceed with shipping however works best.

Perceptual Map

In order to understand where Allied North should position themselves within the market,

it is important to consider the key aspects of their business that they are strongest in. First and

foremost, the company is very socially responsible as they are donating 20% of their profits to

one of four charities. This is a relatively high number to be donating, and sets the company apart

from other competitors that are not charity based. The other key attribute that makes Allied

North unique is that the overall pricing of their products is considerably less than their

competitors. For example, Allied North currently sells their sweaters for $40 compared to their

competitors who are selling similar products for closer to $60. A perceptual map has been

created and can be viewed in Appendix B to better understand where Allied North fits within the

industry.

Competitive Analysis
 The e-retail apparel industry within Alberta is highly competitive and loyalty based.

Within our initial search for competitors, there were ten companies that were direct competitors

for Allied North and even more that were indirect competitors. Direct competitors means that

they are targeting the same group of customers, are operating within the same geographic region

and have virtually identical business models. This is a concern for Allied North, although not

detrimental if the firm can differentiate themselves.

West, Canadian Apparel Co, Local Laundry, Alberta Branded and World Awear are all

based out of Alberta, Krochet Kids and are in the local apparel niche. Ten Tree and Tom Shoes

are charity based e-commerce sites. Buttercream Clothing is a company engaged in

environmental stewardship.

Although these are different niches within the e-commerce apparel market, they all serve

as competition for Allied North. It is important that AN is able to differentiate themselves from

their competitors and position themselves in a way that can encourage loyalty from users. Due to

the propensity for the target market to be loyal to a brand, AN should focus on acquiring new

customers that have not yet identified with a competing brand. They can do this through creating

their own niche within the market and becoming a leader through first mover advantages.

Marketing Objectives

Short Term

Sell. Sell objectives will represent a short term objective because of the freshness and

recency of Allied North. The company is a startup and will not have a large customer base so the

key objective will be to work towards developing this. Opportunities will arise by reaching out to

consumers and enlightening them on the products and offerings of Allied North and creating

ongoing communication between consumer and Allied North.

 Sizzle. For sizzle objectives the primary goal would be to increase online awareness. This

can be done through various means. Currently the social media implementation by the company

is non-existent, therefore the first objective is the development of a social media presence

through the creation of corporate pages on various mediums (Facebook, Twitter, etc.). To

continue with upgrading online presence, the production of more blog posts would give a voice

for the company and help with personalizing the experience for the consumer. Currently Allied

North has a blog running on their website but the last post was from summer 2016. By resuming

and continuing posts on this blog, it will give the consumer a better understanding of the

company and the owners and how they are working towards improving their products. This also

helps with keeping the company on the forefront of the consumers mind because they can create

ideas to stand apart from the competition. By creating and implementing these objectives in the

short term, the company will be able to set up a framework for future endeavours.

Speak. Allied Norths communication with consumers has been limited to non-existent.

The creation of their website doesnt seem to include updates on products and offers with the

ability to even see products that are being developed. Objectives to communicate to the

consumer are seen through an email subscription service enlightening consumers on new

products and offers. By combining this with an updated blog and social media services, Allied

North can keep consumers aware of the company and the products they offer.

Long Term

Save. Allied North is a start up company who is trying to get its feet off the ground in the

clothing industry. Due to the freshness of the company, saving costs is an extremely important

factor in keeping the company afloat. With the majority of start up companies failing within the

first 5 years, many due to improper budgeting, the importance of creating a budget that is reliable
and reasonable is huge. With an increase in marketing for the company, the budget is likely to

increase as well. This means that, for a small company like Allied North, using cheaper and more

affordable methods to market their brand will be imperative and help with the bottom line.

Serve. Being a new company, Allied North needs to keep customer service at a forefront

of their communication to consumers. The main objective of good customer service is to create

consumer relationships, this being done by highlighting the positive attitudes towards the

company and keeping consumers happy. Developing customer service policies early will help

Allied North determine a strategy that can be continued into the long term.

Strategy

Segmentation & Target Market Analysis

The key segment of our target market includes young adults in the age range of 18-25.

These will be consumers with low to moderate income and less disposable income than other

demographics, however they will show the motivation to support local and charitable causes.

Because the portion of this demographic has low to moderate income, the likelihood of consumer

purchases is low as well. This means that Allied North will have to leverage their social

responsibility aspect and their strong product offering in order to succeed at infiltrating this

market. This demographic is also heavily influenced by internet factors, therefore when targeting

this market, technology and social media must be emphasized.

The name of segment within our target audience that is specifically targeted is what can

commonly be popularized as the heartfelt hipsters. This select group of individuals take their

clothing apperal very seriously as they must wear it when it is in style, cool and relevant. Allied

North has tapped into this segment by identifying as local and low-key as well as providing an

initiative to give a part of their proceeds to charities. This is a recent trend and can be seen
through their competitors actions, such as Ten Tree and Toms Shoes. Given that the segment is

heavily brand loyal, Allied North can utilize this charitable tactic all the while connecting with

the heartfelt hipsters on a deeper level.

See appendix C for further details regarding purchase history/market share

Positioning and Marketing Mix

Product

Allied North has a wide variety of clothing and accessories, these will all be tangible

products. Consumers will extend value into the product through the purchase and consumption of

these goods. Its about giving the customer the ideal Allied North product for their comfort and

lifestyle. By also creating a charity aspect with their clothing the product is enhanced into a

social responsibility aspect.

Place

Allied North is a pure click e-commerce corporation in which the business processes are

primarily internet based, with distribution of clothing being the physical component of place.

Goods are shipped to consumers using a drop ship supply chain method. Because of the drop

ship method, there is no need for Allied North to have a physical storage center or warehouse to

keep goods in stock but instead they just transfer goods through consumer orders and shipment

details are handled by the manufacturer.

Price

For pricing details, Allied North is taking a basic pricing strategy in which the prices are

a flat dollar amount and so far no discounts or add-ons have been included. By keeping a simple

pricing strategy it allows for easy purchase decisions, as well as a reliable profit margin

calculation. In their pricing model they receive 20% of profits however they are still reasonably
priced and are slightly on the lower end when compared to the competition. By keeping up with

competition and maintaining a price point that motivates consumers while also creating profit is

a key strategy.

Promotion

The main promotional tools used so far by Allied North are primarily dedicated towards

their website, Instagram and a blog on the website. All of the tools are focused on internet

marketing and there is a lack of diversity in their promotion. Creativity is lacking in this regard

and the promotional aspect is ineffective at communicating to the target audience.

Recommendations in this regard would be to develop more diversified promotions and integrate

offline and online promotions.

Process

Allied North will have processes in place that act as a liaison between the customer and

business. These processes include the ability for customers to check product availability or if the

product is in stock. This will create a more efficient process of ordering goods and establish less

time spent doing customer support. Time will be of the essence in the beginning phases of the

corporation especially with only two people working. Customer support can be a very time

intensive task so it is important to have proper processes in place to allocate more time on other

pressing issues, such as website development. Another important process will include a

Frequently Asked Questions (FAQ) page that can be of help to customers needs without having

to contact customer support. We want to emphasize that customer support should be the last case

scenario for customers but will be available upon request.

People
 Allied North consists of two founders that are running the day to day activities of the

initial start up phase of the business. The founders, Doug and Sam, will split the tasks

congruently for the first year until product demand increases. When necessary, extra help will be

hired to support the increased demand. Both partners will reinvest any of the profit for the first

four years to enhance the growth of the company.

Physical

The physical facilities include an online website that will initially conduct all transactions

for the company. The website will be managed from home in Airdrie, Alberta. After the initial

four years of operations the firm may expand to an office setting headquartered in Calgary,

Vancouver or Toronto.

Tactics & Actions

Social Media Plan.

We recommend that AN engages on Facebook and Instagram platforms as well as their

website as the primary methods for social media use. We recognize that this company already

has a limited Instagram presence, however they should put more effort into engaging regularly

with this platform. More specifically, we recommend that Facebook should have minimum three

posts per week, Instagram should have minimum two posts per week and the website should be

updated with a blog at least once a week. This can be a strenuous schedule to keep up with,

therefore we recommend that AN utilizes social media scheduling tools in order to maintain a

consistent frequency of posts. Hootsuite, Publisher and Latergram are all free accounts that can

be utilized and another benefit of these schedulers is that they provide analytics, which give

insight into the best times for posts, how much engagement they are getting and how long people

are staying on their pages.

 Through social media, it is important for AN to use contests in order to increase followers

and engagement with their target market. For example, they can create a contest on Instagram

which prompts users to like, share and comment with a favorite charity in order win a free AN

tank top. Furthermore, given that Allied North is a small organization, it is beneficial to partner

with larger businesses or charities to extend their reach. Once partnerships have been formed,

they can have Sponsor Spotlights where they give shoutouts to their partners. This increases

awareness to the partners brand as well as extends the reach of the post when the partner shares

the post on their own page.

Sponsorship.

Through sponsorship, AN is able to extend their reach and engage with the community.

This tactic fits with the company's strategy of stewardship and helping others, which makes them

look more authentic. Furthermore, working with partners and sponsoring events that align with

your companys mission and vision is a powerful tool that extends towards growth. For example,

AN can sponsor events such as Food Truck Frenzy, Lilac Festival or Market Collective in

Calgary, Edmonton or Lethbridge. These events are community based and will allow AN to set

up a booth for awareness of their company either through word of mouth, connecting personally

with locals or engaging in contests. Setting up a booth at one of these events can range from

$500-1000.

Search Engine Optimization.

It is important for AN to use search engine optimization in order to ensure that they are

utilizing the internet in the most effective way. One way that they can do this is through using

proper keywords and the language that their target market is using. Currently, when you type in

Allied North into Google, their website does not come up on the homepage. However, when
you type in Allied North Clothing into Google, they are first. However, this is a current

limitation because most consumers will not type in clothing and therefore their website is not

properly optimized online. Furthermore, the company has an added challenge in that their brand

name is very common and multiple businesses in different industries have a similar name.

Therefore, search engine optimization is critical for the firms recognition and success online.

Who Is In Charge?

We understand that IMC planning and execution is a taxing tool. It is a lot of work,

specifically with social media, to ensure frequency of posts, consistent messages and proper

engagement with current and potential customers. Due to this, we have devised two options for

the owners of AN. Firstly, the owners have an advantage in that they are both young men who

are aware and avid users of social media. The reduction in learning curves and the limited budget

that AN currently has leads us to recommend that they undertake this endeavor themselves and

use scheduling tools to simplify the process and stay on top of the posts. Secondly, the owners

could reach out to friends who have expertise in the social media management and could

volunteer to undertake the project themselves. Given that they have connections to university

students who are eager to build up their resumes and gain experience doing social media for a

legitimate business, this may be a viable option.

Controls

For viewing purposes, a controls implementation table can be found in Appendix C.

Allied North is still a relatively new company therefore sales will be modest initially.

Ideally, the company will sell about 200 T-shirts, 150 hoodies, and 100 hats in their first year of

operations, which totals to be about 450 overall units being sold. With T-shirts being sold at $30,

hoodies at $50, and hats at $20, this will result in about $15,500 of revenue for Allied North. As
the company grows, they can expect their sales to double in the second year, triple in the third

year, and quadruple in their fourth year of operations. In regards to market share, it is estimated

that 42 percent of Canadians shop online (The State of E-Commerce in Canada, 2015). With the

current Canadian population being at about 36 million, this equates to about 15.12 million

Canadians buying clothes online (Canada Population, n.d.). In their first year, Allied North will

hold approximately 0.0001% of the Canadian online retail market, which equates to 1512 people

(The State of E-Commerce in Canada, 2015).. In their second year, this number will grow to

3024, their third year they can expect 4536, and in their fourth year they are looking at 6048

people. Full market share calculation can be found in Appendix E.

There will be a higher conversion rate generating from inquiries rather than from

subscriptions. This is due to the fact that the consumer has taken the time and due diligence to

reach out to the company in regards to a certain product, therefore they are more likely to finalize

the purchase compared to someone who has subscribed. Conversion rates generated from

subscription would be higher than channel sources, because they are in contact and receiving

communications from the company more frequently, and therefore it is assumed that they are

more connected to the brand and more likely to purchase the product. Similarly, conversion rates

generated from channel sources would be the lowest due to the fact that consumers may follow a

page on social media however they may not be engaged with the brand or connected to the

company in any tangible way. We have used 1.4% for conversion rates generated from inquiries

because that is the industry average, and the other percentages fall sequentially (Coleman, 2015).

We have determined that Allied North consumers will spend roughly 3.4 minutes on the

companys website, as well as view an average of 5.4 pages per session (Coleman, 2015). These

figures are based on industry averages for the E-commerce marketplace. In relation to consumers
who are actually looking at making a purchase on the website, it is important to pay attention to

the overall attrition rate, or shopping cart abandonment rate. Based on industry averages, it has

been determined that roughly 68.81% of online shoppers will abandon their cart for a variety of

reasons including not being ready to purchase yet, extra costs are too high, and the site wanting

users to create an account (34 Cart Abandonment Rate Statistics, 2016). In order to combat these

issues, Allied North should ensure that their shoppers will not have to create an account in order

to make purchase, as well as try to include shipping and handling costs in the original prices on

the website. Additionally, Allied North should be weary about their unsubscription rate as they

move forward. Industry averages state that an unsubscription rate of less than 1% is ideal and

that e-commerce sites should strive for less than 0.5% (What is a good unsubscribe rate, n.d.).

The number for unique visitors is estimated to be 300 people due to the fact that we feel it

is realistic to at least get 25 new people to your site per month. Repeat visitors is estimated to be

150 people, which is 50% of the unique visitors. Of course, it is ideal to get a larger percentage

of your repeat visitors and through marketing efforts on multiple platforms this number should

increase.

Actual Inquiries have been estimated as 95% of total inquiries that are received by AN.

The remaining 5% is due to the fact that some communication from consumers may be a mistake

because they are mistaken about who the company is or they are making a comment rather than

an inquiry. Therefore, we have estimated 5 actual inquiries per month, which relates to 60 per

year as a goal for the company. Furthermore, quality inquiries will admittedly be less than actual

inquiries per year. This is due to the fact that a quality inquiry is defined as one that may result in

a purchase of the product. For this reason, we have estimated that 25% of actual inquiries will be

quality, resulting in 15 per year.

 Our estimation for the number of people who subscribe to the site is based upon our

estimation for repeat visitors. This is because those who subscribe to a newsletter are likely to be

more interested in the company or are hoping to be included in further product information.

Therefore, we feel that 33% of repeat visitors would subscribe, resulting in 50 people per year.

Our goal for awareness of the brand is 500 people per year. This is based on our number

for unique visitors, which was 300, because more people may be aware of your brand than

actually visit your site.

Our goal for awareness of brand benefits is 300 per year, which is the same number as

unique visitors. This is because all of those who visit the website should be aware of the fact that

Allied North donates 20% of their proceeds to a charity partner. Furthermore, a goal of AN

should be to reduce the disparity between awareness of the brand and brand benefits through

their marketing efforts.

Given that we are recommending an emphasis on social media in regards to marketing

efforts, it is important that the firm has a solid goal for likes and shares per post. We have

estimated 35-50 likes per post on Instagram and 25-30 likes per post on Facebook. Furthermore,

3-5 shares on Facebook is realistic and may increase with sponsorship opportunities due to the

fact that partners will be sharing their posts.

Costs. Given the specifics of the company, costs are only relevant to certain sections in

regards to the above chart. For instance, increasing conversion rates, time spent on site and

awareness of brand can be attributed to purchasing an account with Google Adwords. The cost

would vary based on the amount of money they decided to spend for cost per click, for example.

However, it is important to note that these are not direct costs and are therefore difficult to

measure. This has been discussed further in another section. Furthermore, other costs associated
with brand awareness and unique/repeat visitors can be associated with sponsorship efforts. As

previously mentioned, it costs $300-$500 on average to book a table and sponsor an event, of

course this also depends on the specific event

3M Analysis

Men.

To ensure maximum profit for the organization we must take into account the people and

resources we need in order to succeed. The key areas that are of utmost concern for Allied North

are the employees, suppliers of raw materials, volunteers and people responsible for marketing

mediums that provide awareness to consumers. The current employees and founders of Allied

North are Douglas Marsten and Sam McKechnie and they currently split operational tasks. Once

sales increase and demand rises they will look towards hiring another team member. A scenario

that we have suggested is acquiring volunteers to help out with social media platforms and

events. This will help keep labor costs down and embrace the socially responsibility aspect of the

organization by having said volunteers. The suppliers and manufacturers of the products sold are

a very important commodity of the organization. Therefore, it is important to ensure that they are

fairly compensated in order to give Allied North the necessary supplier power.

Money.

The initial capital needed to have an established inventory ready for sale is minimal. We

predict Allied North will need $5000.00 in startup capital to pay for initial site costs, inventory

and shipping. Given the projected returns in the first year, this should be a viable strategy for

Allied North. For the remanding capital needed we recommend to look into Kickstarter,

GoFundMe, government grants and personal capital as other sources of cash. Attached in
Appendix D is the projected budgeted income statement. All accounts and capital will be

managed through Quickbooks accounting software.

Minutes.

Throughout the first year of operations, the goal for Allied North is to break-even.

Knowing that 50 percent of small businesses will fail in the first year and up to 95% will fail in

the first five years, it is important that Allied North gets off to a strong start by limiting expenses

and generating sufficient revenues quickly (Schaefer, 2016). Projecting to double sales in second

year, triple sales in third year and quadruple sales in fourth year. By fourth year of operations

volunteers will be around to help with marketing and website deliverables.

References
Alberta will stay in recession this year before rebounding in 2017, Conference Board of Canada
forecasts. (2016, June 13). Retrieved December 1, 2016, from
http://www.cbc.ca/news/canada/calgary/conference-board-report-provincial-recession-
alberta-growth-1.3632268

Canada Population (LIVE). (n.d.). Retrieved December 05, 2016, from

http://www.worldometers.info/world-population/canada-population/

Coleman, A. (2015, January 15). E-Commerce KPI Study: There's (finally) a benchmark for that.
Retrieved December 5, 2016, from https://moz.com/blog/ecommerce-kpi-
benchmark-study

Inland Institutional. (2015). Shopping Patterns of Millenials. Retrieved December 1, 2016, from
http://www.nareim.org/wp-content/uploads/2015/03/Shopping-Patterns-of-Millennials-
ICAP-2-15.pdf

Schaefer, P. (2016). Why Small Businesses Fail: Top 7 Reasons Startups Fail and How to Avoid
Failure. Retrieved December 05, 2016, from
http://www.businessknowhow.com/startup/business-failure.htm

Statistics and Market Data about E-Commerce. (n.d.). Retrieved December 1, 2016, from
https://www.statista.com/markets/413/e-commerce/

Lincoln, K., & Thomassen, L. (2008). Private label: Turning the retail brand threat into your
biggest opportunity. Retrieved December 5, 2016.

The State of E-Commerce in Canada. (2016, March). Retrieved December 5, 2016, from
https://cira.ca/sites/default/files/public/Ecommerce-Factbook-March-2016.pdf

What is a good unsubscribe rate? (n.d.). Retrieved December 5, 2016, from

https://www.mailjet.com/support/what-is-a-good-unsubscribe-rate,77.htm

34 Cart Abandonment Rate Statistics. (2016, October 11). Retrieved December 5, 2016, from
http://baymard.com/lists/cart-abandonment-rate

Appendix A
Situational Analysis

Appendix B

Perceptual Map
 Appendix C

Controls Table
 What To Watch How Often? Who will do it?

Units 450 / year Owners

Revenue $15,500 Owners

Market Share 0.0001% / year Owners

Unique Visitors 300 / year Owners

Repeat Visitors 150 / year Owners

Quality Inquiries 15 / year Owners

Subscriptions 50 / year Owners

Actual Inquiries 60 / year Owners

Conversion Rates from Inquiries 1.4% Owners

Conversion Rates from Subscriptions 1.2% Owners

Conversion Rates from Channel Sources 1% Owners

Page Views Per Visit 5.4 Owners

Time Spent on Site 3.4 minutes Owners

Attrition Rates 68% Owners

Unsubscribe 1% Owners

Awareness of Brand 500 Owners

Awareness of Brand Benefits 300 Owners

Shares FB: 3-5/per post Owners

Likes Insta: 35-50/per post Owners

FB: 25-30/per post

Appendix D

Projected Budgeted Income Statement

Year 1 Year 2 Year 3 Year 4

Sales 15500 31000 46500 62000

COGS (3000) (6000) (9000) (12000)

Gross Margin 12500 25000 37500 50000

Expenses:

Donations 20% 3100 6200 9300 12400

Wages & Salaries 0 0 0 0

Rent 0 0 0 0

Utilities 0 0 0 0

Website fees 168 168 168 168

Insurance 100 100 100 100

Advertising 1800 1800 1800 1800

Sponsorship 500 500 500 500

Licences & Permits 100 100 100 100

Total Expenses 5768 8868 11968 15068

Net income 6732 16132 25532 34932

Appendix E

Market Share: Additional Information

42% of Canadians Buy Online

36 Million Canadian Citizens

15.12 Million Canadians Buy Clothes Online

First year Allied North will hold 0.0001% of the online canadian buying market equating to 1512 people.

Second year 3024 people at 0.0002%

Third year 4536 people at 0.0003%

Fourth year 6048 people at 0.0004%