Are you about starting a mall kiosk company? If YES, here is a complete sample mall kiosk business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting a mall kiosk business. We also took it further by analyzing and drafting a sample mall kiosk business marketing plan template backed up by actionable guerrilla marketing ideas for mall kiosks. So let’s proceed to the business planning section.
Mall kiosks are small stations usually placed in the center aisles of indoor malls, but during warm and dry climates, they can also be found in outdoor malls. These kiosks are not meant for all types of merchandise, but they avail themselves to impulse buying of small novelty items, jewelry, and accessories.
They also are used for seasonal merchandise, sometimes as promotional stations for larger retailers. The cost of buying a kiosk can be relatively low, but most malls demand long-term leases that can require upwards of $100,000 over the life of the lease.
Some malls require a contract that promises them a percentage of your sales in addition to the cost of the lease. The cost of the merchandise you sell will vary with the items you want to sell. You can also choose to buy or lease a kiosk. Used ones may be available at considerable savings, but be sure the used kiosk is free of problems. Leasing is usually for the short-term or for seasonal use, but you may save money on the long run if you buy a kiosk.
A kiosk should be staffed by at least two people so that more people can be helped at a time. Note that with two people, you also have coverage for lunches and bathroom breaks.
With only one person, you will need a way to secure the goods when the staffer needs to be away from the kiosk for a few minutes. But no matter how you decide to start and run your Kiosk, be sure you have a business plan to direct your every move.
A Sample Mall Kiosk Business Plan Template
Table of Content
- 2. Executive Summary
- 5. Job Roles and Responsibilities
- 6. SWOT Analysis
- 7. MARKET ANALYSIS
- 13. Startup Expenditure (Budget)
1. Industry Overview
According to industry data, the Mall Carts & Kiosks industry over the past five years has grown by 2.7 percent to reach a revenue of $12bn in 2018. In the same timeframe, the number of businesses has grown by 3.0 percent and the number of employees has grown by 3.8 percent.
Reports have it that the Mall Carts and Kiosks industry has also within the past five years pushed through difficult conditions. Dropping mall traffic and growing external competition have threatened operators, which rely primarily on impulse purchases.
Even with the strong consumer spending and more aggressive tactics by shopping mall owners to earn revenue from underutilized spaces, the industry strived to maintain sales during the period. Mall owners, battling reducing traffic due to changing consumer-shopping patterns, have tried to attract cart and kiosk operators with attractive lease terms and more prominent spaces.
To adjust to these difficulties, many operators adjusted their Business model to add service offerings as a new revenue stream.
The Mall Cart and Kiosk industry that was once fledgling and composed of only small, simple carts has expanded to include complex kiosks called retail merchandising units (RMUs), and large freestanding kiosks that include electrical outlets for product display through television and lighting, tablets, and other turnkey solutions.
Globally, the retail kiosk industry has taken off. Mall traffic throughout Europe and the Middle East continues to grow, and shoppers are “voting with their feet” for unique experiences at retail centers.
In North America, kiosk-generated revenue is expected to hit $4.4 billion by 2024, an annual growth rate of a whopping 6.1 percent. In fact, kiosks can now account for over 10 percent of a mall’s revenue. Malls are innovatively responding to these changes.
Once a place for the distribution and storing of goods, they are now a place for great experiences. With plenty of franchise options out there, and short-term lease commitments, it is the perfect time for entrepreneurs to start their own kiosk business without the need to invest a ton of money upfront.
2. Executive Summary
Prime Kings is a Limited Liability Company, a manufacturer, innovator and consumer brand of mobile accessories based in Manhattan, New York City, USA. This company was started by two high school friends, Martin Thomas and Denis Castle.
This business plan provides for the opening of a Prime Kings full service mall kiosk in Hudson Yards. Prime Kings will sell and professionally install an extremely diverse set of custom made mobile protection accessories.
Our goal is to challenge the status quo of the mall kiosk industry by selling high quality products, and backing them with lifetime guarantees and customer focused service. Prime Kings will be completely financed by equity capital provided by the two founders.
We believe that we will pass our break-even point within the first year. Conservative projections based on sales over the next three years yielded an annual revenue of $750,000 by Year 3. The company expects its cash account to remain healthy.
We strongly believe that Hudson Yards is an ideal location for our business. It boasts of an unparalleled location that offers the high visibility and heavy foot traffic necessary to support our enterprise. Prime Kings has created and maintained a proven business model that thrives in the mall environment, with more than 12 locations successfully operating globally, since 2012.
We believe that our entire business model is built around driving traffic to our Hudson Yards with corporate based marketing. The unique products we plan to sell protect not just the screen, but the entire device including back, sides and front for invisible, bulk free protection. We also protect everything from watches, smartphones and tablets to laptops and game controllers.
Due to our services and products, everyone in the mall is a potential customer for multiple sales. We not just sell our products; we back our products with a lifetime guarantee. At our kiosks, customers can count on a professional service handled by specially trained knowledgeable staff. Also, all our products come with quality US manufacturing in mind, and this value is a huge part of every decision made.
We believe that our personal approach to service gives the customer value that they cannot get anywhere else. Our award-winning RapidCut system allows us to easily manufacture Prime Kings products for virtually every handheld electronic device on the market within seconds, right at the kiosk, resulting in 35 percent more sales than our competitors.
3. Our Products and Services
All our products come with quality US manufacturing, and this core value is still a part of every decision we make. Our products are designed, sourced, manufactured and shipped in the USA, from our HQ in Manhattan, NY. We also professionally install all of our products for the customer, providing the best possible experience not available online or in big box retailers.
Our personal approach gives the customer value that they cannot get anywhere else. Our Products at Prime Kings also include:
- Clear Coat Original is a patented ultra-clear protective film that wraps around the entire device without adding to the bulk, featuring military grade scratch protection, HD clarity and self-healing technology.
- Clear Coat Matte features all characteristics of Clear Coat Original with added antiglare and anti-fingerprint technology.
- Fusion impact screen protector, which is one of the products with patented TriACTIVE™ technology, built to protect from impact.
- Style Skins add style & protection without adding bulk. Choose from variety of options depending on your personality — whether adding a splash of color, glitter and fun or texture, luxury and style to your favorite gadget.
4. Our Mission and Vision Statement
- Our vision at Prime Kings is to establish a phone accessories Kiosk whose primary goal is to exceed customer’s expectations.
- Our mission at Prime Kings is to make innovative accessories that will protect and maintain the beauty of mobile phones. We exist to attract and maintain customers. When we adhere to this maxim, everything else will fall in to place.
Our Business Structure
Prime Kings in Hudson Yards will be led by a team of professionals. Our plan is to strive every day to create an environment and structure that encourages productivity and respect for customers and employees. We also plan to hire workers that are very qualified, truthful, customer centric, good communication skills and are open to help us build a business that can compete in the industry. We plan to employ qualified and competent hands to occupy the following offices;
- Chief Executive Officer
- Managing Director
- Admin and HR manager
- Marketing and Sales Manager
- Sales representatives
5. Job Roles and Responsibilities
Chief Executive Officer
- He will be tasked with providing work direction for the business
- Charged with building, communicating, and implementing the vision, mission, and direction of the business – which also includes leading the achievement and implementation of the all the business strategy.
- Responsible for fixing prices and signing business deals for the business
- In charge of employment
- Tasked with paying workers salary
- Responsible for Signing checks and documents for and on behalf of the business
- Also Evaluates the success of the business
- In charge for managing the daily activities in the company
- Makes sure that the facility is in very good shape and conducive enough for customers
- Connects with third – party providers (vendors)
- Tasked with supervising and training new staff members
- Reports to the Chief Executive Officer
- Settle all Customers complains and enquiries
- Any other duty as assigned by the CEO
Admin and HR manager
- Tasked with overseeing the running of HR and administrative tasks for the company
- Monitors office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- State job positions for recruitment and managing interviewing process
- Organize induction for new team members
- Tasked with training, evaluation and assessment of employees
- Tasked with arranging travel, meetings and appointments
- Oversee the smooth running of the daily office activities.
Marketing and Sales Manager
- Oversee external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Creates demographic information and analyze the volumes of transactional data generated by customer purchases
- Understand, prioritizes, and reaches out to new partners, and business opportunities et al
- Understand development opportunities; follows up on development leads and contacts
- In charge for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Create, executes and evaluates new plans for expanding increase sales
- Keep all customer contact and information
- Represents the company in strategic meetings
- Aid to increase sales and growth for the business
- Quickly attends to customers in a friendly and professional manner
- Explain all available products services to customers
- Takes care of any other duty as assigned by the Chief Operating officer / managing director
- Tasked with cleaning the restaurant facility at all times
- Make sure the toiletries and supplies don’t run out of stock
- Handles any other duty as assigned by the manager.
6. SWOT Analysis
Our plan at Prime Kings is to focus on our target markets that will provide us with the greatest market penetration. We also plan to offer products and service packages that are priced appropriately for each segment. We have analyzed our business and we have ensured that we are prepared for anything.
We employed the services of a renowned Consulting firm to aid with our SWOT Analysis. Outlined below are the results presented to us at Prime Kings:
- We provide excellent customer service
- We plan to grow and maintain a referral network of customers
- Respond rapidly to customer problems with product or plan
- The industry has slowed down financially over the past three years with the economic downturn
- Business hours are limited for a retail establishment (Monday through Friday 9:00 a.m. to 6:00 p.m.)
The majority of products supplied by the Mall Kiosks industry are discretionary items. Therefore, the growth in household disposable income increases the propensity for consumers to purchase these goods, leading to growth in demand. Per capita disposable income is expected to increase through 2018 to 2019, creating a potential opportunity for the industry.
We at Prime Kings understand that E-commerce retailers offer substitute industry products, sometimes at heavily discounted prices. Products available online through e-commerce retailers are normally more convenient to buy, especially due to improved smartphone technology and next-day delivery services.
Hence, as more consumers visit online retailers for their shopping needs, demand for kiosk and cart establishments will fall. E-commerce sales are expected to increase in 2019, creating a potential threat to the industry.
7. MARKET ANALYSIS
- Market Trend
According to the recent expansion of the global smartphone market, the accompanying accessories market is growing at an accelerating rate. While new mobile devices are being released at a blistering pace, huge varieties of older models still remain in circulation.
Until now, it was impossible to offer everything, from the old BlackBerry Curve to the latest Samsung Galaxy S7 Edge, which resulted in missed sales and unsatisfied customers walking away unhappy especially in small footprint environments.
But with our new innovative, award winning on demand system at Prime Kings, RapidCut makes all of this a thing of the past. Our RapidCut system completely deletes inventory, enabling our kiosks to produce any one of our 11,000+ products on demand at the time of sale.
Industry Data has it that the market potential for cellular accessories is massive, with global revenues reaching US$81.5 billion in 2015. Prime Kings’ entire focus lies in specialty retail, with our growing global network of mall kiosks.
We believe that any mobile device user walking in a mall is our potential customer. But even with huge mass appeal, our products solve very specific problems. The biggest segment of our customers are people who want to keep their gadget’s original design without hiding it in a bulky case.
Prime Kings will provide solutions to keep mobile devices invisibly protected from all sides and look new without unnecessary bulk. Even for people who have cases and take them off occasionally, Prime Kings provides an invisible layer of protection from scratches underneath the cases. People who are in need of extra screen protection can get our patented impact screen protector, Fusion, which works great with any case or a bumper.
Note that unlike our competitors who sell commodity products made in China utilizing off-the-shelf components and inexpensive raw materials, we make use of premium materials and proprietary technology to create our one-of-a-kind products.
Traditionally, Prime Kings repeat customers account for more than 25 percent of our sales and guarantee our long – term sales growth. Every time they get a new device, they can count on us to protect it with our products.
8. Our Target Market
It is very important to state that the market for mobile phones and their accessories is very fragmented, crowded and competitive. Among these, there are only a few large firms that serve the entire city of New York and its surroundings.
The remaining are small firms that sell from kiosks in the surrounding malls. We at Prime Kings believe that our current niche in Hudson Yards, variety of products and expertise in serving the public will assure sales.
We expect to take full advantage of the trends described above, and try to penetrate the market with new innovations and gadgets — using advertisements and demonstrations. We shall also try to lure independent small sellers to join our effort.
- Our competitive advantage
We at Prime Kings believe that the market potential for our product is huge, evidenced by what appears to be the unstoppable growth of the telecom industry. Currently, the telecom industry is among the strongest growth industries and is responsible for huge gains in the capital markets. Our competitive advantage in this business includes:
- Location: Hudson Yards is a real estate development company in the Chelsea and Hudson Yards neighborhoods of Manhattan, New York City. It is the largest private real estate development in the united states by area. Upon completion, 13 of the 16 planned structures on the West Side of Midtown South would sit on a platform built over the West Side Yard, a storage yard for Long Island Rail Road trains.
- E-Commerce: we will make an effort to enhance sales through a serious and advantageous website in order to attract customers that are reluctant to do business with large companies.
9. SALES AND MARKETING STRATEGY
- Marketing and Sales strategy
Our marketing strategy at Prime Kings is divided into two: short and long term strategies. Our short-term marketing strategies are those that bring will bring us a temporary boost in traffic. Note that even though these techniques are very important to our over-all plan, they are only a temporary traffic source and must not be solely relied upon. Short-term marketing strategies include: Purchasing Advertising, Bulletin Boards and Search Engines.
While our long-term marketing strategies are those that will bring us a steady stream of targeted traffic over time. These strategies will continue to produce results even years down the road. Long-term marketing strategies include: Opt-in Lists, Freebies and Content.
We plan to create and implement a balanced marketing strategy, using both short-term and long-term strategies. We also believe that by using this simple formula when creating our Internet marketing strategy, we hope to guarantee our success.
Meanwhile, our short-term marketing strategy will focus heavily on sales promotion, niche positioning in the market and customer service with loyalty and retention in sales. Our promotions will always stay in tune with our company objectives and mission statement.
10. Sales Forecast
Mobile phones have revolutionized the communications arena, redefining how we perceive voice communications. The sales forecast displayed here is very conservative — although we aim very high, we decided to show a very slow growth and revise the plan on a yearly basis. As a rule we expect to expand the volume much more rapidly. Below are the sales assumptions for Prime Kings:
- We project a sales increase at 25 percent in 2023 due to the addition of a commissioned outside sales representative in July 2019
- We expect a sales increase an additional 25 percent in 2023 due to the continued effect of adding a commissioned outside sales representative in 2019
- We also forecast a sales increase of an additional 10.0 percent in 2023 due to the continued effect of adding a commissioned outside sales representative in 2019
- The relationship of accessories sales to total sales continues at its present level of 32 percent
- We expect the cost of material continues at its present level of 18 percent
- We forecast relationship of customization sales to total sales continues at its present level of 25 percent
- We estimate the cost of customization continues at its present level of 29.0 percent of customization sales
- We project that the total gross margin remains constant at its three-year average of 40.5 percent
11. Publicity and Advertising Strategy
Our mall kiosk will operate under a globally recognized brand, Prime Kings. Prime Kings generally provides a robust corporate marketing strategy that revolves around advertising, high quality collateral and local marketing that not only captures attention of passing traffic, but will also be bringing people specifically looking for our products. Our other promotional plan is diverse and includes a range of marketing communications:
- Public relations: We plan to issue press releases to both New York City journals and business publications such as Playboy Magazine.
- Trade shows: Our sales representatives will attend and participate in several trade shows.
- Print advertising: Our print advertising program will include advertisements in magazines.
- Internet: We will establish a presence on the Internet by developing a website. Plans are underway to create a professional and effective site that will be interactive and from which sales will be generated worldwide.
- Other: We also plan to leverage other channels including billboards, radio and television commercials, and a street team.
Our Sources of Income
We at Prime Kings will generate revenue from selling our unique products. These products at Prime Kings will not protect just the screen, but the whole device including back, sides and front for invisible, bulk free protection. All our products come with quality US manufacturing. Our products are designed, sourced, manufactured and shipped in the USA, from our HQ in Manhattan, NY.
We will also make money by charging customers for the professional installation all of our products, providing the best possible experience not available online or in big box retailers. We believe that our unique and personal approach gives the customer value that they cannot get anywhere else. We believe our business will be able to generate margins of 30 percent on each dollar of sales.
12. Our Pricing Strategy
We at Prime Kings believe that our target audience will buy based on superior quality, excellent customer service, and local business location. We also know that businesses in our scope make their money from the interest and commissions.
We hope to keep our prices at the average market rate for the time being, but will increase as our identity as the market increases. Most of our products will sell between $25 and $45 to take advantage of impulse purchasers in the mall. Our average sale is around $30, which also includes a professional installation.
We have a 600 percent markup with virtually no inventory, backed up with our Lifetime Guarantee. This is why our mall kiosks are thriving, even as eCommerce grows — our products are professionally installed on the spot, so we’re not just selling a product, we’re selling a service which isn’t offered online.
- Payment Options
We at Prime Kings will always strive to establish payment methods that will suit our diverse clients. We have also partnered with a renowned banking platform to help serve our clients very well. We hope to make available the following payment options for our clients;
- Payment by via bank transfer
- Payment via online bank transfer
- Payment through POS
- payment through PayPal
- Payment via check
- Payment with cash
13. Startup Expenditure (Budget)
We understand that the key to customer satisfaction is having the product and services that meet customer’s needs. A crucial part of that is to also have knowledgeable employees to help customers quickly find what they want. That is why we have taken our time to also build on our core portfolio of products and overcome any obstacles by using our expertise in the industry. The financial projection and costing of Prime Kings is outlined as follows;
- Cost of incorporating the Business – $750.
- Franchise Fee Cost – $60,000
- Cost for basic insurance policy covers, permits and business license – $10,000
- The cost of acquiring a suitable Kiosk in Hudson Yards – $55,000
- The budget for equipping the office (computers, software applications, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $5,000
- The price of purchasing of the required software applications (CRM software, Accounting and Bookkeeping software and Payroll software et al) – $12, 000
- The Cost of Launching our official Website – $600
- Our budget for paying at least three employees for 6 months plus utility bills – $36,000
- Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500
- Our Inventory fund – $2,000,000
- Miscellaneous – $1,000
From our cost analysis above, we will need $182,850 and our $2 million inventory fund to start Prime Kings in Hudson Yards.
Generating Funding/Startup Capital for Prime Kings
Prime Kings is a Limited Liability Company, a manufacturer, innovator and consumer brand of mobile accessories based in Manhattan, New York City, USA. This company was started by two high school friends, Martin Thomas and Denis Castle. It’s very important to state that Denis Castle is the most active and hands-on of the two owners. Denis comes from a retail management background with enough experience in the technology industry.
Our two founding owners will prefer to fund the business privately for now, but are likely to source for external funds as the business grows. The company will also seek a substantial long-term business loan. This funding will cover operating expenses and product development leading to the launch in November 2019.
Our Management have been able to raise $1 million from the two founding partners ($500,000 each). They have been able to raise this amount through their individual savings and few soft loans from their families.
14. Sustainability and Expansion Strategy
Prime Kings understand the need to attract, acquire, leverage, and retain customers. Revenue growth through customer acquisition and retention is as important a requirement in retail as it is in other businesses. Customers, especially in the Western business culture, count speed of service as a key reason why they do business with a company.
They resent delays and hate waiting for service. In the United States, almost 80 percent of the gross domestic product (GDP) is generated through different kinds of services, and speed of service no longer separates a business as providing superior value.
We understand that customers generally are not thrilled if they receive good service, but they are highly dissatisfied if they do not. We will provide the necessary framework to cope with these demands by cutting the waiting time for a service.
We have also noted that customers also want consistent, reliable and easy-to-use service. As the speed of service increases and customer expectations grow, it will make solution-oriented customer service an important business trend.
We at Prime Kings also plan to become a highly distinguished and recognized leader in phone accessories. It is the goal of our company to become established as the leading distributor of phone accessories and repair services in all of New York.
To achieve this goal, Prime King’s success factors will be to identify emerging trends and integrate them into company operations, respond quickly to technology changes/be there early, provide high-quality services, invest time and money in marketing and advertising, expand into specialty markets, and stay ahead of the “technology curve.”
Prime Kings has the technological expertise to assist customers in picking the product and service that best meets their needs. Finally, we believe it is important to remain an active member of the community, and to impact people’s lives in more ways than deriving a profit from them. We propose to host community events that bring out the best in people.
- Business Name Availability Check: Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Conducting feasibility studies: Completed
- Leasing, renovating and equipping our facility: Completed
- Generating part of the startup capital from the founder: Completed
- Applications for Loan from our Bankers: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Packaging, Marketing/Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of software applications, furniture, office equipment, electronic appliances and facility facelift: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business (Business PR): In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with banks, financial lending institutions, vendors and key players in the industry: In Progress