Prepared by:

C&B Communications
Brock Zimmermann and Courtney Schafer
Fall 2015

Table of Contents
Executive Summary

1.0 Organization Background

1.1 Business Definition
1.2 Vision
1.3 Mission
1.4 Value Proposition
1.5 Organization Structure
1.5.1 Owner
1.5.2 Part-time Owner
1.5.3 Part-time Virtual Assistant
1.5.4 Pattern Testers
1.6 History and Culture
2.0 Situation Analysis
2.1 Definition and Scope of Situation
2.2 Stakeholders Affected
2.3 Competition
2.4 SWOT Analysis
2.5 Market Positioning
3.0 Plan
3.1 Objectives, Strategies and Tactics
3.2 Critical Success Factors
3.3 Key Performance Indicators
3.4 Budget and Resource Allocation
3.5 Timeline
3.6 Evaluation Method and Anticipated Results
Appendices
A. Organizational Chart
B. Job Descriptions
C. Budget and Resource Allocation Spreadsheet
D. Timeline

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Executive Summary:
Modkid boutique (hereafter known as Modkid) is a design studio located in downtown
Bloomington specializing in high quality styled patterns, textiles and sewing books. Modkid has
been in business for ten years and is known for having quality products at affordable prices.
Modkid has many opportunities to gain awareness both locally and nationally as well as gaining
customers by expanding the business further.
This plan will help Modkid become well known and let the public know what it offers is
unique to not only the Bloomington-Normal area, but to customers worldwide and offers high
quality patterns for customers desired products. We want this to be the place people think of
when wanting unique patterns and textiles and also sewing books. We want the public to be
aware of Modkid and to contact them when they are looking for unique textiles and patterns and
sewing books.
This plan is meant to review and analyze the organizations current practices, and to see
what it does well and where it needs to improve. Then, the potential for improvements as well as

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setbacks will be discussed. There are several objectives that we will suggest for Modkid
including:
A plan to increase the awareness of Modkid worldwide
Relocate to a smaller workspace to minimize expenses
Increase amount of people talking about Modkid through online mediums as well as word
of mouth
Create new customers and business by offering new and different products
This plan will be used as the guideline until November 1, 2016, in effort to achieve these
objectives. The organization and future employees and interns should be aware on this plan in
order to follow its basic structure. Its important that all employees understand this plan and have
their beliefs for the organization aligned with it. In the future, this plan can be used as a guide or
template to create a new model in the following year.

1.0 Organization Background

This section provides the general background of Modkid and its business functions. This
information will make it easier to understand the sections that follow.
1.1 Business Definition:
Modkid specializes in the making of pattern and textiles for childrens clothing, womens
clothing, doll outfits, purses, other accessories and home furnishings using high quality patterns
and textiles. Patty Young also writes sewing books.
1.2 Vision:
To be the premier unique pattern and textile supplier in Bloomington-Normal while maintaining
affordable prices for its customers.
1.3 Mission:
To provide quality and affordable fabrics and patterns by specializing in high quality boutiquestyle sewing patterns which include children's clothes, doll outfits, purses and other assorted
accessories and home furnishings.
1.4 Value Proposition:
The value proposition identifies how Modkid differs from other similar brands online and also
competitors in the area. The two parts included in the value proposition are the thesis which
describes what Modkid is, and proof points that support the main idea of thesis.
Thesis: Modkid has unique designs to offer people all around the world.
Proof Points:
Modkid provides designs, textiles and sewing books to help put one of a kind clothing
together.
Modkid allows its designs to be sold anywhere globally.
Modkid has unique and special designs that differ from clothing you could buy from a
department store.

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1.5 Organization Structure:

Since being created in 2005, Modkid has stayed relatively the same. It joined the online retail site
Etsy in 2008, and thats where the majority of pattern sales come from. It is currently licensed
with three major companies in the United States, and when working on collection Modkid
receives quarterly royalty payments from the company following the finished work. At times it
has employed interns or part-time assistants, but currently the owners dont see a need to expand
their workforce since they are comfortable with the roles they have now.
1.5.1 Owner (Patty Young)
Patty is the lead designer and works on patterns and products in her personal studio. She
responds to shipment requests and creates her patterns based on the demands of the industry as
well as her personal preferences.
1.5.2 Part-Time Owner (Jon Young)
Jon is Pattys husband and is in charge of the accounting, budgeting and distribution matters for
Modkid. Jon also updates the website and sends out the e-newsletters. He works full-time with a
different organization and only works part-time for Modkid.
1.5.3 Part time Virtual Assistant
This position is in charge of all social media accounts and blogging. While Modkid currently
does not have a part-time virtual assistant, the position is about ten hours per week when the
position is being utilized. Although this assistant has never met with Modkid owners personally,
they have a great relationship through shared passions.
1.5.4 Pattern Testers
At any given time, there are roughly ten pattern testers that Modkid uses whenever it has a new
design pattern. These testers arent paid and often take pictures and write reviews that Modkid
can use for their social media pages. Modkid has good relationships with these testers, and part
of its very high reputation for customer service and quality products come from getting excellent
reviews of the patterns. If the testers give the pattern a good review, it is essentially approved for
sale. If it has poor reviews or errors, Modkid will continue to work on the pattern before
finalizing it.
1.6 History and Culture:
Modkid doesnt have a location for direct resale; it operates online through its own website as
well as selling fabrics and designs to online sellers with dozens of US locations and in eight
different countries. Modkid is partially owned by a married couple and does not employ anyone
part time. Since opening in 2005, there have been 10 completed collections of fabrics and
designs
Patty Young grew up in San Jose, Costa Rica, where she was encouraged to express her
creativity freely. Both of her parents dabbled in the arts so it was only natural that she would
inherit their creative genes and pursue a career in the design industry. Patty moved to the United
States in 1987 and started attending the University of Central Florida. She graduated with her
Bachelors Degree in Fine Arts in Graphic Design and Photography. She would continue to
expand her design abilities for 12 years while working at many different marketing agencies

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before deciding to leave her corporate job in 2005 to stay at home with her children and pursue
her own creative endeavors.
Today, she owns and operates Modkid LLC as the lead designer. Her designs are inspired by all
things pretty and colorful. She has completed 16 collections of textiles, quilting cottons and
knits. In addition to her studio work, she has also completed a book with sewing and knit
patterns called Sewing Modkid Style. She is a licensed textile designer for Michael Miller
Fabrics, JoAnn Fabrics, and Riley Blake. Her designs can be purchased through more than 50
company websites in the United States as well as in eight countries worldwide.

2.0 Situation Analysis

Modkid faces several challenges as well as opportunities in its ever-changing market
environment. This section will go over its scope, the stakeholders affected by Modkids
decisions, examining the various levels of competition, and providing analysis of its strengths,
weaknesses, opportunities, and threats for the future success of the organization.
2.1 Definition & Scope of Situation
Modkids main focus is to sell sewing patterns, textiles, and sewing books. Modkid has ten
textiles collections, a variety of sewing patterns, and two sewing books. We want to make
Modkid the brand everyone chooses when they are sewing. Without a store location in the area, it
is hard to gain awareness since most awareness efforts would be online. While there is a strong
following on Facebook, there is a lot of room for increased awareness on hobby and design
focused social media websites like Pinterest, Etsy, Instagram and Tumblr. With the possibility of
expanding into a personal store or larger chain retailers, there could be a noticeable positive
impact on profits. While the target audience is primarily focused on clothing for young girls,
there is room to expand patterns and designs for boys and both women and men. We feel that
since the online competition is strong, Modkid has the opportunity to set itself apart from the
other pattern and style companies by doing these things.
2.2 Stakeholders Effected
The two owners, Patty and Jon, are the ones who provide financial backing for Modkid. There
are over 60 companies that sell its fabrics directly or from another seller. Patty and Jons children
are also affected based on the success of the company. Modkid has three major contracts with
fabric companies, sewing machine companies, and the testers who receive the patterns to review
them. The major companies that have contracts with Modkid are greatly impacted by its success.
The fabric and design testers could potentially lose the benefits of receiving patterns for free.
2.3 Competition
While there is no immediately strong competition to Modkid in the Bloomington-Normal area,
there is competition from all over the world. Competition is described as very strong,
moderate, and weak. Very strong competition poses a high threat to the success of Modkid
because it primarily sells similar goods online. The moderate competition represents the major
arts and crafts stores in the Bloomington-Normal area, which offer different products than
Modkid, but are seen as an alternative. Weak competition is described as small-scale arts and
crafts shops in the Bloomington-Normal area, which are similar to the chain stores, because they
offer different but potentially alternative products than Modkid.

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Very strong _ The strongest level of competition comes from the independently-owned
sewing companies like Modkid, who make custom patterns and designs, and sell online,
to stores, and distributors worldwide. Modkid has many competitors that operate online,
but none are local. Modkid owners consider two-to-300 different companies at any given
time serious competition. Since it is a relatively affordable business to startup, many
companies will appear suddenly and then fold just as quickly as they are created. Go To
Patterns, Angela Kane, and Burda Style all offer online print pdf patterns. These are some
companies that are major competition to Modkid, although it changes constantly.
Moderate - Although they dont pose a direct threat to Modkid, the major retail brand
stores such as JoAnn Fabrics, Michaels and Hobby Lobby offer alternative arts and
crafts. Modkid is licensed through JoAnn Fabrics but there are other similar companies
within JoAnn Fabrics stores that could be purchased instead. These large retail stores
offer several books and pamphlets with sewing designs and patterns and they could be
purchased instead of Modkid.
Weak - Although they are not direct competition in the area, there are several stores in the
Bloomington-Normal area that offer similar products. Those weak competitors are
Sewing Studio, Quilt and Fabric Fashion Store, Hancock Fabrics, Bolines LLC, Sew Into
It, and Wee Sew Shop. These shops do not offer custom made fabrics and therefore do
not pose much of a threat, but because they offer the minimalistic alternatives, these
competitors are a minor concern to Modkids success.

2.4 SWOT Analysis

This analysis of Modkids strengths, weaknesses, opportunities, and threats (SWOT) shows
many different aspects on improvements, negatives and positives of the business,and restrictions.
The SWOT analysis presents individual aspects of Modkids strengths, weaknesses,
opportunities, and threats; the implications of each aspect on Modkids business; and the possible
actions that could be taken to address each SWOT aspect.

Aspects

Strength
s

Implications

Possible Actions

Designer provides
unique fabrics,
textiles, and
sewing books.

Allows people to have

more unique options for
childrens clothing
instead of department
store clothing.

Make sure Modkid is being

promoted as much as possible
and keeping followers and
potential buyers updated on new
products.

Designer is very
passionate about
her job and it
shows through
her abilities.

Allows people to
understand that Modkid
puts a lot of work and
thought into her designs.

Have Modkid share more in its

blogs and on social media to show
how much work is put into
designs. Let the public know the
process the designer goes through
in order to make the product the
best it can be.

Since there are only

Encourage more

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Make sure that local

three employees,
there arent many
outside or additional
resources

college students are

aware of intern
opportunities.

Not many online

reviews and
ratings, although
most reviews are
extremely positive

Encourage buyers to
review and rate Modkid
designs.

Send an online survey and

share feedback and or
encourage them to rate and
review designs on Modkid
social media accounts.

Confusion
throughout the
community on what
Modkid actually is.

People in the community

think that it is a boutique
styled retail store.

Update websites, blogs and

social media accounts on
the name and emphasize
more on the fact its strictly
a design studio not a
boutique.

Increase social media

presence on design
specific websites like
Pinterest, Etsy, and
Instagram.

Open up the studio to allow

potential customers to buy
designs, textiles and sewing
books in the studio.

Increase designs
for male customers.

Increase profit for

Modkid.

Promote more male designs

online using the website
and social media

Several competitors
online who offer
similar products at
competitive prices.

Modkid needs to stand

out from all of the other
similar businesses
online.

Increase presence on
multiple sites and offer
discounts or deals when
ordering Modkid designs.

Challenge to expand
to people outside of
the organization.

Allow more part-time

workers or interns for
fresh ideas.

Hire a few part-time

workers to work in the
studio or on social media
platforms

Opportunities Expansion to

location instead of
just online, or
continue expanding
to more online
retailers.

Threats

students to intern with

Patty Young when
needed.

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2.5 Market Positioning

Market positioning allows an organization to see how it compares to its competitors. It allows an
organization to conceptualize how its products or services are seen in the markets it serves. This
market position will show what Modkid does to differentiate itself among competition, its
strengths and weaknesses, how its perceived, the target customers, and competition and market
analysis. Since a detailed SWOT analysis is presented later, this section will focus on the general
strengths and weaknesses.

Differentiation is how Modkid sets itself apart from competitors. Modkid has survived a
constantly changing environment by priding itself on excellent customer service. It is
known by major retailers as well as Modkids competitors what organizations have good
or poor customer service in the industry. Modkid is constantly regarded as one of the best
in the world for quality responses in a timely manner. Not only is the quality of the
product always excellent, the customer service is excellent and that has allowed the
organization to thrive for many years while others have folded very quickly.
Strengths and Weaknesses are the things that continue to keep Modkid moving forward
and what it can work on. The quality of the product is error free every time. This is done
by extensive pattern testing through its trusted testers as well as starting with flawless
design. The product is so good that many other competitors will copy the design and
change it just slightly enough that it becomes legal for them to sell. A weakness to work
on is the general marketing strategy. Once the budget increases from changing to a more
affordable location, the possibilities for marketing will increase greatly.
Perception is how customers and people who come across Modkid perceive it. In the
industry it is perceived as a trusted and established organization with quality products.
There is some confusion in the local community. Many people think of Modkid as a retail
clothing store, based on the name and window display. Downtown Bloomington requires
a window design for stores and this creates confusion for window shoppers. Many people
do not understand that its strictly a studio, and not a retail location.
Target Customers are defined as who Modkid is trying to reach. The majority of the
audience is mothers or grandmothers with primarily granddaughters but also grandsons.
There are much more women interested in the field of sewing, and this is why most of the
patterns are designed for girls.
Competition and Market Analysis Shows that based on Modkids ability to establish itself
globally, it is doing well compared to the competition. Its competition will gradually
come and go, because those other organizations either dont have the capital to sustain the
cost, of the quality of product is very poor.

3.0 Plan
The plan section provides details for the actions moving forward for Modkid starting November
1, 2015, and ending November 1, 2016. This section looks to guide Modkid in fulfilling their
mission and vision while giving it the tools and references for a successful year. The following
subsections include objectives, strategies, and tactics; critical success factors; key performance
indicators; budget and resource allocations; an implementation timeline; and final evaluation and
anticipated results.
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3.1 Objectives, Strategies, and Tactics

This section presents a specific plan for advancing Modkids business beyond current
performance levels and in particular ways. This sections content is divided into three parts in the
following table:

Objectives are the main things that Modkid wants to achieve in a measureable amount of
time.
Strategies define the Modkid should take to accomplish a desired objective using
different activities that apply to related objectives.
Tactics are specific forms of discourse that would be used to fit within the strategies and
achieve objectives.

Objectives

1.

1. A plan to increase the

awareness of Modkid worldwide by
25% in the next six months

Strategies

Tactics

Use loyal customers to

spread awareness for
Modkid

Use incentives and

rewards to recruit new
customers by referral
increase amount of blog
type posts and shareable
posts

Research locations and

properties for the best fit

Employ someone who

can search for new
properties to alleviate
the stress and time
commitments

(In an industry that has been

gradually declining, we want to show
the world that Modkid offers elite
products as well as community
service)
(Benchmark: Record customers
shares, likes and follows on the
different social media platforms.
Record information every month for
the next six months and compare
information at the end.)
2. Relocate to a smaller and more
affordable location in the next 12
months
(Rent has been consistently the
highest expense, and the owners want
to move to a location that is roughly
half the current size due to not
utilizing all of the current space)

Bring on a part-time
employee or intern for
class credit through ISU

(Benchmark: Search for the most

reasonable places to rent every month
and after researching those findings,
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narrow it down and move to the new

location.)
3. Increase amount of people talking
about Modkid through online
mediums as well as word of mouth by
45% in the next eight months

Create posts and products

that increase online shares
and personal
recommendations

(Jon made it a point that they could

always use marketing a little bit
more, but with their small budget,
utilizing low-cost social media and
word of mouth is critical.)

Increase content on
already popular
Instagram page
Utilize share to win
posts so the page
appears on the
homepages of friends
who follow

(Benchmark: Keep track of comments

about Modkid online and research to
see what people are saying about
Modkid.)
4. Create new customers and business
by 10% in the next 12 months.

Increase likes and

follows on Facebook,
Pinterest, website &
blog, and Instagram

Target more customers and

potential customers on
social media

(Modkid can slightly alter its current

products to meet more clients as well
as introduce completely new
products)

Increase the amount of

designs posted on
Pinterest and Facebook
Enter the technology
industry by making
designs for smartphone
and laptop cases

(Benchmark: Modkid needs to keep

new customers engaged and up to
date and record whenever there is a
new customer or business for
Modkid.)

Offer lessons or classes

with her own material

3.2 Critical Success Factors

The following table explains how Modkid could be affected in either a positive or negative way.
The chart fulfills the objectives and the implications related to each category.
Opportunities include what Modkid can do to capitalize in its competitive industry by
continuing what it does well and also to add new unique products.
Barriers include the current situation, attitudes, and environmental challenges Modkid
faces.
Environment includes internal and external factors that may have an impact or influence
on Modkids day-to-day functions.
Resources are the employees and materials used by Modkid to meet expectations.

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OBJECTIVES

1. Increase
awareness of
Modkid
worldwide

2. Relocate to
a smaller
workspace to
minimize
expenses

OPPORTUNITIES

BARRIERS

ENVIRONMENT

RESOURCES

Give buyers
incentives for
referring a new
customer

Would be
primarily from
its websites or
social media
pages

Continue to
build
relationships
with already
strong overseas
buyers

Contact retail
stores in
countries that
dont currently
sell Modkid
designs

Very large
scale audience,
may not be
received well

Use these
relationships to
make a
connection with
someone who is
an opinion
leader or has
advertising
knowledge

BloomingtonNormal is a
large metro
area with many
real estate
companies and
locations

Many
businesses may
be looking for
similar sizes
and prices

Be aware of
successful and
affordable real
estate
companies in
the area

Requires time,
labor, and
possibly money
to search for a
new location

Look in
neighboring
communities
that might offer
more affordable
rent compared
to
BloomingtonNormal

Might cause
day-to-day
inconveniences
for Modkid
employees
based on
travel,
familiarity, etc.

Owners may be
hesitant to
relocate
somewhere
based on
personal
preferences of
where they
want to live

Moving
company or a
self-rental
mover would
likely be
required to
accomplish this
objective

Culture varies
by country and
Modkid may
not be relevant
in a particular
area

The process
can be stressful
and costly for a
small business

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Increase
knowledge of
marketing and
advertising
online and with
retailers

3. Increase
amount of
people
talking about
Modkid
through
online
mediums as
well as word
of mouth

Encourage
public reviews
from pattern
testers and
from first-time
customers

Ultimate PR is
difficult to
achieve when
working in a
global setting

Continue to
build
relationships
with returning
and loyal
customers

Continue to put
customer
service and
relations first

Not all
customers use
social media
platforms
frequently

Vendors and
retailers know
Modkid offers a
quality product

4. Create new
customers
and business
by offering
new and
different
products

New or
innovative
products will
continue to set
Modkid apart

Owners have
hesitated to
follow trends in
the past

Listen to
customer
feedback and
understand
what they want

Would require
owners to take
on new job
responsibilities
or add more
employees

Follow trends,
expand outside
of fabrics

Limited
opportunities
in the industry

Recognize what
other
companies are
doing well or

Emphasis
would need to
shift to other
products,

The industry as
a whole has
been declining
in recent years

Employees
should be
experts in all
social media
platforms

3.3 Key Performance Indicators (KPIs)

KPIs are calculable measurements that show the critical success factors for Modkid. Each
objective measurement the owners will compare to the benchmarks.

Objective 1- Increase the awareness of Modkid worldwide by 25% in the next six
months.
o Benchmark: Record customers shares, likes and follows on the different social
media platforms. Record information every month for the next six months and
compare information at the end.
o KPI: Awareness should increase by 4% every month when Modkid is posting and
keeping people up to date.
Objective 2 - Relocate to a smaller and more affordable location in the next 12 months
o Benchmark: Search for the most reasonable places to rent every month and after
researching those findings, narrow it down and move to the new location.

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o KPI: Finding 3 new potential properties every month should increase the
likeliness of finding a new location for Modkid.
Objective 3- Increase amount of people talking about Modkid through online mediums as
well as word of mouth by 45% in the next eight months.
o Benchmark: Keep track of comments about Modkid online and research to see
what people are saying about Modkid.
o KPI: Talk about Modkid should increase 6% every month as Modkid continues to
engage in the world online and offline.
Objective 4-Create new customers and business by 10% in the next 12 months.
o Benchmark: Modkid needs to keep new customers engaged and up to date and
record whenever there is a new customer or business for Modkid.
o KPI: New customers and business should increase by at least 2% every couple of
months.

3.4 Budget and Resource Allocation

Modkid has been in existence for ten years and most of the immediate startup costs have been
long paid off. Its current location is a former Borders store, and the furniture was purchased at a
discount price. Modkid saves money by having great relationships with retailers. In its contracts
with major fabric companies, it receives the first roll of fabrics for free, as well as having two
sewing machines that cost several thousands of dollars at no cost. All of its customers pay for
their own shipping and handling. Modkid has several design testers, who do not get paid but
dont have to pay for the pdf design. These testers often do their own reviews as well as
photography of the final product that Modkid uses on its social media pages. The current major
expenses are the monthly rent and utilities which is about $1,750 per month, and a subscription
to the Adobe Creative Suite which is $49.99 per month.
Since Patty is her own boss, many of the labor costs are already on her own personal
time. Many of the objectives were designed specifically to be cheap or at no cost, since its a
small business with a tight budget to work with. Traditional ways to increase awareness and
customers wouldnt benefit Modkid that much since they are a global company that focuses
primarily online with its customers. Modkid is not currently making enough money to add
another assistant, but is interested in offering potential interns for class credit in the spring.
3.5 Timeline
For Modkid to continue being a successful business, a timeline is necessary to help Modkid see
how they will measure the tactics to see if awareness, relocating, discussion on social media, and
new customers increase throughout the year. (See Appendix D for the timeline). Complete an
evaluation throughout the months to see how the plan is working out. Recording benchmarks are
very beneficial when trying to measure the success of the business.
3.6 Evaluation and Anticipated Results
To see whether the plan of action was successful, Modkid will have to evaluate the attempts. See
section 3.3 for KPIs and benchmarks.
Objective 1: Increase the awareness of Modkid worldwide by 25% in the next six
months.
o If by the end of the six months awareness worldwide has increased by 25% the
plan was successful.
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o If the plan was not successful, Modkid needs to adjust the plan for the next six
months to increase awareness worldwide.
Objective 2Relocate to a smaller and more affordable location in the next 12 months.
o If Modkid relocated within six months then this plan was successful.
o If Modkid was unable to relocate in 12 months then they need to continue looking
and find a new location within the next year.
Objective 3: Increase amount of people talking about Modkid through online mediums as
well as word of mouth by 45% in the next eight months.
o If by the end of the next eight months the amount of people talking about Modkid
has increased by 45% then the plan was successful.
o If the plan did not reach 45% by the end of the eight months the Modkid needs to
become more engaging and active online in the next eight months.
Objective 4: Create new customers and business by 10% in the next 12 months.
o If by the end of the next 12 months Modkid has gained more customers and
business by 10% the plan was successful.
o If the plan did not meet a 10% increase in 12 months then Modkid needs to adjust
the plan for the next 12 months.

With this plan, success is expected. The objectives provide an understanding way for the owners
to help accomplish the plan. If the plan begins to not meet the KPIs, corrections and adjustments
must be made in order to be successful for the next year.

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Appendices
A.

Current Organization Chart

Lead Designer

Pattern Testers

B.

Accountant

Virtual Assistant

Job Descriptions

Lead Designer-This position is in charge of all things creative for the company. Modkids budget
is currently too small to add another employee. The owners feel that the organization is doing
well right now creatively and that bringing in someone else isnt necessary.
Accountant-In charge of all things related to expenses and distribution. This position oversees
purchases and expenses of the organization.
Pattern Testers-Modkid typically uses about 12 testers across the United States for collection
designs. These testers are strategically selected based on their history with the organization, their
ability to review and analyze the designs for errors, and if they can contribute to a specific size
requirement. Since Modkid prides itself on excellent customer service, it makes sure that their
testers are spread out throughout the various sizes of patterns they offer.
Virtual Assistant-This position primarily makes posts on social media accounts and works on the
website blog. Moving forward, this position may want to focus on keeping accounts updated,
even if some of the platforms are slowly becoming less used by the customer.

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C.

Budget

Page 16 of 17

D.

Timeline

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