Marketing Model Of Start-Up Enterprises

When you think about start-ups, the first thing that comes to mind is a couple of slovenly, smelly MIT students who spend the night in front of their computers programming. But it doesn't have to be. Peru, founded in 2009 clothing Retailers give us a very different look, and also for all entrepreneur It provides useful inspiration.

In an interview on May 4, 2011, CEO Manuel Rizo patron terrero explained how he put Treca on track. Manuel spent three years as a buyer in falabella, Chile, one of South America's largest retailers. There, he has established close relationships with clothing retailers such as north face and Columbia Sportswear.

As a Peruvian, Manuel saw an undiscovered business opportunity , that is to sell outdoor clothing to tourists who come to Machu Picchu. And, given that Peru's natural resources - including gold, silver, zinc and chalcopyrite - attract countless investments, Peru's annual economic growth rate is between 6% and 7%. So he started Cordillera, a 550 square foot store in Cusco, Peru, that sells camping equipment clothing and footwear to tourists - including north face, Columbia apparel and a Cordillera's own brand, alpinex, made in China.

There's a little problem here - Manuel was going to Wellesley, Ma, Massachusetts, where I met him in 2010, to study the MBA program at Babson College, so who would run the store? To solve this problem, he hired a high school friend who he believed had strong management experience COO - give him 50% of the company's shares in exchange for half the capital he invested in the company.

Manuel was unable to finance the company from Peruvian banks. The bank will never lend money to a loss making start-up. So he turned to his family and friends and raised $250000.

Cordillera did not fully meet expectations. It generated about $250000 in sales - roughly half of Manuel's expectations. But Manuel has been able to get better deals from north face, Colombia, Merrill, Patagonia and other brands. From the previous "little guy" deal - no credit and 35% profit margin - Manuel was able to negotiate an average profit margin of 40% and a 60 day credit payment period.

Manuel believes there are two reasons why store sales are not up to expectations. First of all, excessive rainfall from January to March led to the closure of Machu Picchu. Second, his clothing suppliers north face and Colombia decided to open stores near his store to compete with him.

Manuel calculates that the clothing market at the entrance to the Inca Trail is about $2 million, so Cordillera has a 10% share. To increase that share, Manuel wants to make Cordillera different from its competitors in two ways:

Custom store experience. Manuel believes that offering a WiFi access and beverage lounge like Starbucks on the second floor of a store can create a unique experience.

· cooperate with travel agencies. Manuel realizes that travel agencies have a huge impact on tourists. So he plans to train travel agency employees to become official Cordillera sales representatives - offering visitors catalogues and offering a 10% discount on catalogues and store prices. He wants to turn the travel agency into an Avon sales representative.

Manuel has very ambitious goals for Treca's future. He wants to reach $10 million in sales by 2020, in part by opening at least one store a year. This month, he will open a Hanes brands store in Lima to sell underwear; he plans to expand Cordillera's business through a franchise; and he hopes to open up more sales channels, including department stores and others.

Globalization is an important part of his company's growth strategy. To this end, he and two MBA students are preparing to start Treca USA to enter the wholesale market in North America. The first deal he is negotiating is to license camping equipment supplies from a large international brand and sell them in the United States, Canada and Mexico.

Doing these things depends on getting the right people. So far, Treca has 11 people working on management, logistics, sales and marketing support. He outsourced the accounting and it parts. He hired people he was "in tune with" - people he could trust and commit to his vision of Treca: to become Peru's most innovative retailer.

At the end of the day, Manuel believes his competitiveness depends on his ability to attract and motivate top talent. If he can find a management style that doesn't allow the best people to change jobs for higher salaries, and if he is both normative and friendly with his employees, his career will be smooth.

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