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Letter of Transmittal

December 10th, 2013

TO: Lori Newton & WeTech Representatives

FROM: Shaunie Gaudet

Jordan Costello

Tyler Lamphier

RE: Submission of Business Plan 2013- “A Tisket A Tasket Specialty Gift Baskets”

Lori Newton and WeTech representatives requested the submission of a

formal 2013 business plan for “A Tisket A Tasket Specialty Gift Baskets.” We are

pleased to send set business plan that includes a start-up budget and 12-month

forecast, as well as our market research, market analysis, marketing plan and our

production/operations plan. The information coming to you is a positive

collaboration of over 15 weeks of meetings and planning. Our end result is a well-

designed, well-put together package per Ms. Newton’s specifications.

A Tisket A Tasket Specialty Gift Baskets is grateful for all feedback and

constructive criticism from outside sources as well as Ms. Newton and fellow new

entrepreneurs. We will start by forming gift baskets for wedding showers, baby

showers, buck and doe’s, and house warming gifts. All baskets will include pre-

packaged food, crafts, as well as alcohol to be included once the buyer has pre-

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purchased these goods. We will deliver some gifts to their destination but only a

radius of 20 km from the production site and it will be at an additional cost.

We differ from other companies as we provide an emotional connection with our

baskets. With a tiny fee customers can customize their baskets to suit their specific

needs as well as selecting from a variety of pre-planned packages.

Concluding, we at A Tisket A Tasket Specialty Gift Baskets look forward to

hearing from yourself and your colleagues at WeTech, and hope that you will

consider submission of business plan 2013.

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Table of content

Letter of Transmittal ………………………………………………………………………………………… 1

Executive Summary ………………………………………………………………………………………….. 4

Company History ………………………………………………………………………………….…………... 6

Themes …………………………………………………………………………………………….…….………… 7

Basket Types/Visuals ……………………………………………………...………………………………… 8

Market Analysis …………………………………………………………………..…………………………… 12

Marketing Plan ………………………………………………………………………………………………… 15

Development Plan ………………………………………………………………….………………………… 17

Operation / Production Plan ……………………………………………………..……………………… 18

Marketing Team ………………………………………………………….…………………………………… 19

Implementation Schedule ………………………………………………………………………………… 20

Appendices ……………………………………………………………………………………………………… 23

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Executive Summary

A Tisket A Tasket Specialty Gift Baskets offers customers customizable gift

baskets as well as template models for all occasions. From weddings to baby

showers to house-warming gifts, we strive to provide the ideal gift for that special

moment when time and creativity is imminent.

Our clients are husbands, wives, co-workers, and family members who want

something personal for the right occasion that sends the perfect emotional message.

Customizing a gift basket may be something they feel comfortable enough doing,

while most may decide on a generic template with a bit of personal touch.

Throughout Canada, gift basket ideas have either been too customizable to

the point of not being recognizable or are too generic that they are not identifiable

to the public. Market research has shown that real estate brokers have a desire to

leave new home-buyers with an emotional keepsake but also something functional

for the new home. With our business, our audience is able to fill this need in a cost-

efficient manner while adding personal touches to the final product.

A Tisket A Tasket Specialty Gift Baskets has developed a marketing strategy to

emphasize the quality of the product that we are producing. We want the customer

to know that we spent a great deal of time and effort to ensure their basket was

shown as much attention as any other basket. Every basket will be marketed as if we

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were producing it for our husband or wife, our co-worker or a member of our

family. Customers of ours will come to love our basket templates but also the level

of creativity that we put into each basket.

Our team is made up of three: Jordan Costello, who received a Bachelor’s

degree in Business at the University of Western Ontario; Tyler Lamphier, recipient

of a diploma in Public Relations and Accounting; and Shaunie Gaudet, a Public

Relations graduate who also received a diploma in Marketing and Advertising. Our

staff will be subject to constant training to ensure that the best display practices

were being used. Upon start-up, the three core business partners will be responsible

for seeing each basket from start to finish. When all outstanding loans are paid in

full, and the business is beginning to turn a profit, staff expansion will be considered.

Local arts and design students will be considered for this growth, but each shall be

subjected to the same strict accountability as the managers.

Based on our market research in the defined market area, our sales

projections for the first year are $________. We are seeking an operating line of

$_______ to finance the first year of our growth.

To date, we have service commitments from 25 local real estate firms and

plan to aggressively build this client base through television and local newspaper.

The exceptional customizing product we provide is sure to appeal to the residents in

the Windsor area looking to provide thoughtful and meaningful gifts.

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Company History

A Tisket A Tasket Specialty Gift Baskets started as a mere school project at St.

Clair College between classmates. Seven years later it has become a dream between

business partners.

The manager and leader in the business is Jordan Costello. Mr. Costello has

Bachelor of Business from the University of Western Ontario and graduated in the

top percentile of his class. He also received a diploma from St. Clair College prior in

the field of Public Relations. He had internships at Cypher Systems and during his

last year of his business degree he interned at the Odette School of Business.

Next, we have Tyler Lamphier who handles all the financials of the business.

He also has a diploma in Public Relations from St. Clair College as well as a degree in

Accounting. He also has a well-rounded education including 2 internships at Bike

Friendly Windsor, where he designed numerous media kits and PR plans. His

second internship was at Caesars Windsor where he implemented a new system for

more effective time management and financial management.

Thirdly, is Shaunie Gaudet who handles all marketing, adverting and

customer relations. She has a diploma in Public Relations from St. Clair College as

well as a double major in Marketing/ Advertising and Fine Arts from the University

of Guelph. She interned at St. Clair College and created a Facebook for the students

of the MediaPlex to get to know each other and for future employers to get to know

who they are hiring.

This is the fiercely competitive team who stands behind the name A Tisket A

Tasket Specialty Gift Baskets.

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Themes

Gift baskets can come in many different varieties, sizes and themes. We plan

to have many themes available and the ability to customize them. This will allow us

to reach a larger population while making our gift baskets have a mass appeal. Our

customer base will very diverse. The following are some sample themes and items

that you might see in those types of baskets:

Baby Shower / Gift - tee-shirts, rattles, stuffed animals, bottles, pacifier,

gourmet baby food, photo album, diaper gift bag, bib, feeding set, candles,

lotions/powder, washcloth, cotton swabs, baby oil, baby shampoo, soap,

blanket, diapers, toy blocks

Housewarming – coffee / tea / hot chocolate, stationary, restaurant guide,

wine, chocolate, mugs / glasses, cookies / cakes / biscuits, cheese, gourmet

foods, books, candles

Wedding and / or Wedding Shower - candles, soaps, potpourri,

champagne glasses, candleholders, wine / champagne (purchased

separately), monogrammed hand towel, slippers, massage oils

Bath and Beauty - soaps, bath oil, bubble bath, bath beads, foot massager,

neck pillow, body brush / sponge, hand towel, soap dish, powder, tub toy,

bath salts, manicure set, hand cream, shampoo, conditioner, body wash

Food Basket – coffee / tea / hot chocolate, chocolate, crackers, cheese,

processed meats, gourmet jams / jelly, chips / pretzels, fruit, gourmet sauces,

pickles / olives, pasta, gourmet nuts, popcorn, candy, cake / brownies (all

food comes pre-packaged)

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Basket Types and Visuals

Wedding Shower Gift Basket

Small Sized Wedding Shower Basket

Includes:

Non-alcoholic wine (alcoholic can be purchased separately and added in)

Candles Soaps Homemade fudge (pre-packaged).

Medium Sized Wedding Shower Basket

Includes:

Coffee Towels Pre-packaged food Dishes Soaps Flowers

Large Sized Wedding Shower Basket

Includes:

Non-alcoholic wine (alcoholic can be purchased separately and added in)

Pre-packaged food Candles Umbrella or home items Dishes

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Baby Shower Gift Basket * All will be in neutral colors like green, white& yellow unless requested

Small Sized Baby Shower Basket

Includes:

Baby Books Baby Toys Night Light

Medium Sized Baby Shower Basket

Includes:

Stuffed Animals Baby Books Baby Care products (Soap, baby

powder, etc.) Small Toys Receiving Blankets

Large Sized Baby Shower Basket

Includes:

Baby Clothes Diapers Food containers Baby Formula Creams and soaps Baby Toys Receiving Blankets Baby Books

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House Warming Gift Basket

Small Sized House Warming Gift Basket

Includes:

Pre-packaged food Non-alcoholic wine (alcoholic can

be purchased separately and added in)

Flowers Box of Chocolates

Medium Sized House Warming Gift Basket

Includes:

Cookware Pre-packaged food Dishes Containers Herbs/ Spices Utensils Hand Towels

Large Sized House Warming Gift Basket

Includes:

Cookware Pre-packaged food Dishes Containers Herbs/ Spices Utensils Hand Towels Non-alcoholic wine (alcoholic can

be purchased separately and added in)

Flowers

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Box of Chocolates

Market Analysis

SWOT ANALYSIS:

Strengths:

- An advantage of our gift baskets is that in Windsor most baskets are either

food or flower based and very expensive. Whereas ours are a combination of

different items and we will be setting the price so even students can afford

them.

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- We do gift baskets better than everyone else because we have a variety of

different items ranging from sweets to handmade gifts to stuffed animals,

flowers, and art and holiday themed items.

- Our lowest-cost items that other people don’t have are do it yourself and

handmade gifts

- Our strengths are that we are low cost, hand-made and have lost of diversity

- We get the sale because we have value for low cost

Weaknesses:

- We could improve on how quickly we make the baskets as well as size.

- We should avoid only making baskets specific to a holiday or occasion, we

should have baskets “just because.”

- Our weaknesses might be that there are other stores out in Windsor and

Essex that offer just food or just flowers and are more specified but we can

tell them that we offer a chance for you to have an emotional connection with

our handmade gifts with whomever you are giving the basket to.

- Factors that would make us lose sales are if there is another company that is

offering the same emotional connection as well as other handmade goods.

Opportunities:

- Expanding into big event planning and wedding planning companies would

be a good opportunity because they would offer consistent business. Our

baskets could be centerpieces or thank-you gifts. They could be specialized

for their specific theme or colors.

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- Interesting trends is getting more for less. So that would be more items in the

basket for less money, as well as gift baskets for friends who are sad or really

happy.

- With the changes in technology we are more likely to start online and have a

catalogue that we mail to people instead of having a store that costs rent, and

electricity. The homemade things would be made in our own homes. The only

hassle might be credit card verification or PayPal verification.

- Government policy would affect us because we would need to have a health

and safety certification, this would insure us that we don’t have the liability

for any choking hazards as well as any food we sell is safe to travel in the

mail.

- We could be at local events such as Art in the Park and have nature/ art

themed baskets. We could also make lunch to go baskets that are healthy and

nutritious.

Threats:

- Obstacles that we face would be getting people to believe we have the best

value as well as believing in the emotional connection that they “NEED”.

- Our competitors are doing more specific baskets therefore people may want

to go to them instead.

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- If another business comes in and offers the same need and emotional

connection it could threaten our business because they are taking our unique

selling proposition and trying the make it theirs.

Marking Plan

Advertising

Word of mouth and family and friends will help start up our business.

However, beyond starting up we will need to gain new customers and begin the

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process of exposing our brand to the public in Windsor and Essex County.

Our business success is not only dependent upon creating an attractive,

reasonably priced product; it's also heavily dependent upon our marketing efforts.

Without a brick and mortar building to attracted customers to, it will be difficult to

gain our first round of customers. The continuing success of our business hinges on

a solid marketing plan that will allow us to reach as many customers as possible.

The first few months of the company’s life will be about aggressively

promoting our product and its versatility to the public to drive brand awareness.

Starting with marketing methods that consist of face-to-face promotion of your

product to our friends and family will allow us to get a feel for how we should

approach the market and product reception. From here, the growth from word-of-

mouth should help us gain some market traction.

Consignment

To help drive the exposure of our product, we will partner with a few select

local retailers to display our product. A list of some possible shops would include:

the gift shops at the local hospitals, florist, or specialty gift shop. We will attempt to

gain appointments to talk with the owners of several of these types of businesses.

Many of them are not already selling gift baskets; therefore we have got a great

chance at getting our items in front of their customers.

On-line

An on-line store will be the centre of our sales for direct customers. Setting

up an on-lie store front is both cost effective and simple, with programs that can

walk us through the setup in minutes and we retain the full customization of the

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site. It is also much easier to sell online due to the fact that there are many forms of

payment processors that will allow us to give payment options to our customers.

The use of PayPal is trusted and widely used, we could benefit from its branding.

In time we may also attempt selling our gift baskets through online auction

sites such as Kijiji or eBay. Although we may have to discount our prices because of

this form of selling, the volume should be much greater and make up for any losses.

Trade Shows, Wedding Shows, Home and Garden Shows

In Windsor, we benefit from having a number of event halls with trade shows

that happen year-round. For less than $100/show, we can rent a table area, set up

an attractive display, and drive our product ad brand name. This will provide a high

traffic environment without a major financial commitment. The biggest

disadvantage with this is that we will need a large on hand inventory so that our

booth does not look empty. This could impact sales, as our product will be tied up

for the duration of the event.

Retail store

We do not foresee a retail location outside of selling other stores in the

current five-year plan.

Development Plan

The growth of our business can be subjected to a number of challenges.

Although there are not many challenges, the few that can arise can cause a number

of issues for the company. Most notable are:

Failure to follow government and provincial regulations – we will

ensure to check with and follow local, provincial, and federal

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government regulations pertaining to the handing of food products,

alcohols and safety regulations. Even though all of our food items will

be pre-packaged, we want to make sure that safety of our consumers

if first and foremost.

Failure to establish a reliable inventory supply – it may take a while to

establish an inventory supply chain that is reliable, but must be done

as quickly as possible. Many of our customers are going to require that

their baskets be delivered in a timely fashion. Birthdays, retirement

parties, weddings, Christmas, business functions are all functions that

require punctuality for their gift baskets. A late delivery could tarnish

our reputation very quickly. 

Pricing – Gift baskets can become very pricy, very quickly. The right

balance of quantity, quality and pricing will play a major factor in

ensuring that we provide a product that is desirable. This does not

mean that we will use cheaper product, but that we will have striven

to find a balance to accommodate the customer's lifestyle and choices.

This will allow us to maintain a healthy gross margin.

Operation / Production Plan

Suppliers

A local supplier is lined up to service the material needs and products for our

start-up. This is critical to our business success because we need to know that we

can get our product fast efficiently. We are looking in to building a relationship with

a wholesaler that can provide a quality product, lots of choice, and at a decent price.

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There are a number of options for this and will most likely have to test several of

them to ensure that quality of product as well as timeliness of shipment does not

suffer.

Production

Production will take place in the basement production facilities that will be

created for this business. Each of the members of the management team will be

involved in the creation and delivery of the baskets.

Management Team

The management team consists of Jordan Costello, Shaunie Gaudet and Tyler

Lamphier working together in a partnership. Each member will be tasked with a

different function as outlined below:

Jordan Costello – Manager

Tyler Lamphier – Finances

Shaunie Gaudet – Marketing

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Together, the three of us will be handling the orders, creation and delivery of

baskets. Our combined unique skillsets allow us to bring a diverse portfolio of skills

to the group. Cover Letters and resumes can be found in the appendix.

Implementation schedule

Timeline

Three Months Prior to Start-Up-Opening Day (December 26 th , 2013)

Assess the competitive market.

Make it legal by going through registration and incorporation process.

Select business based on group’s interests and skills.

Select ideal business name, verifying our ability to use the name and register

the right to use.

Research feasibility of potential business ideas.

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Register for HST.

Establish record-keeping system to keep business in optimal shape.

Open checking accounts with local bank and sign up for lines of credit.

Subscribe to local papers to continue further research on community needs.

Decide on central location of business.

Obtain any necessary licenses.

Prepare preliminary business plan/budget.

Set up business telephone line to be used for orders, inquiries, etc.

Ensure that business filings and applications are completed. (patents,

trademarks, copyright)

Determine when local magazines are printed and explore promotional

opportunities.

Prepare business plan that includes preliminary marketing strategy.

Decide on form of business (sole proprietor, partnership, etc.)

Prepare advertisements to be displayed within the community upon launch.

Order supplies: business cards, necessary stationary, banking necessities.

Determine pricing of products, prepare customizable menu.

Prepare press release for media for business unveiling.

Opening Day-Three Months After Launch

On-air radio interview with local radio station personality announcing.

Word-of-mouth advertising done on online Facebook page.

Advertise that first 25 orders receive free shipping and handling made the

day of launch.

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Press Release sent electronically to The Windsor Star, AM800 to encourage

day-of orders.

Monitor performance and eliminate any dead-weight employees.

Involve employees in productivity workshops to promote high-energy and

good health.

Establish a marketing plan and template that can be followed and executed.

Budget advertising within the community to increase potential customers.

Have giveaways the day the business is launched.

Evaluate competition in the area, focusing strengths and weaknesses that

others have.

Take closer look at manufacturing process; make sure it is as efficient as

possible.

Establish zero-tolerance accounts receivable, ensuring that cash flow is

constant.

Three Months After Launch-Twelve Months After Launch

Evaluate marketing strategies and decide which ones are successful and

which are not.

Compare our business figures and profit with competitive company’s initial

profits.

Determine what marketing strategies could be used to stabilize the business.

Evaluate how we could advertise to new customers in local area.

Implement template for continued advertising campaign.

Include specific budget allocation for advertising campaign.

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Prepare full business plan that can be passed on to any successor.

Full business plan to be used if business is for sale or in worst-case fatality

scenario.

Extend credit line for future investments.

Re-asses as to whether current location is best option, research other

business districts.

Re-new licenses.

Prepare permanent marketing strategy that will thrive in local economy.

Appendices

Sample of Market Research done:

DIY Market Research Survey

1. Would you ever purchase a gift basket?

2. What is your opinion on gift baskets?

3. What would you like to see in a gift basket? For example: Chocolate, Alcohol, Stuffed Animals…

4. What is the most money you would ever pay for a gift basket?

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5. What kind of event would you buy a gift basket for? Example: Wedding, Birthday, or I’ sorry you’re sad…

6. What would you name our company?

yes depends no0

2

4

6

8

10

12

14

16

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Question #1

postive depends negative0

2

4

6

8

10

12

14

16

18

Question #2

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food/ch

oco

electronics

money b

ased

books/m

ags

spra

ys/so

aps

Alcohol

plus

other

depends0

5

10

15

20

25

Question #3

20-29 30-39 40-49 50-59 60-80 80+0

1

2

3

4

5

6

7

8

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Question #4

Birthday

Holiday

get well/

sorr

y

Wedd/sh

ower/house

warm

congra

t/co

ndol

thin

k.you/thank

don’t know w

ell

anniversary

go.com

e hom

e

event:raffl

e.date0

4

8

12

Question #5

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tisket tasket basket case ? creative descriptive baskets0

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7Question #6