Subscription Kit Business Plan

Subscription Kit Articles

A subscription kit business is a new e-commerce trend that has revolutionized the way sampling is carried on by companies as it uses a steady database of customers that already have an interest on certain products or services to test and enjoy products that are being introduced to the market. On the other hand, the business provides a steady predictable source of income along with low overhead.

subway business plan

Business Model

Subscription Kit businesses work by sending regular boxes to subscribers including products the company has identified as relevant or interesting to these people. The business plan will outline which products and services will be delivered to customers and how the company will determine which products to send and how much to charge per subscription.

Business Summary

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Market Positioning

The subscription kit business plan describes the way your business will position itself among many other services available both online and offline. By using SEO-oriented strategies to drive people to your site or employing influencers to increase brand awareness the business will attract customers and continue to position itself within the pre-established segment.

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Operations Plan

A subscription kit business is a mainly a logistics operation. The business has a fulfillment center and along with the list of products that will be sent to customers, employees or third-parties can fulfill the boxes properly to be sent out. Developing a structured procedure to acquire and serve customers is crucial to maintain loyalty within subscribers, along with setting up a formal logistics process that includes item selection, shipping schedule, handling returns and complaints, along with an adequate customer service platform.

Marketing Plan

The marketing section of a subscription kit business plan includes all strategies required to set the business in the top of its segment. Many different tools can be used to both drive visitors towards the business website to turn them into subscribers.

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Market Segmentation

Segmentation is essential in a subscription kit business. The business plan will define who your customers are and how you can get to them. Whether you want to focus on a particular age segment, income-level segment or gender segment, the business plan will define who your customers are. When it comes to segmentation, market reports and industry knowledge will be important to define the niche that will be served by the subscription key business.

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Promotional Strategies

Employing SEO techniques and online advertisements will help the business attract potential subscribers. Also, coupon and discount sites will also help acquire first-time clients, along with viral videos and images that can help get the word out there.
Subscribers can be also rewarded by luring new customers in, by using references through the website. If the referred party becomes a subscriber the company can issue a reward for the luring client in order to keep him motivated to attract others.

Financial Projections

Subscription kit businesses have steady finances as their subscribers are charged on a monthly basis. Therefore, forecasting its finances will not be a difficult task and the business plan will help you do this. By identifying the main revenue sources and expenses you can make sure the business is a profitable and sustainable one.

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Revenue Assumptions

The main sources of revenues for subscription kit businesses are obviously monthly or yearly subscriptions, along with potential endorsements and advertising deals that will lead to include a certain brand and its products for a given period of time in the kits.

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Projecting Expenses

Expenses for a subscription kit business are fairly easy to predict, as the business requires a low overhead in terms of operational expenses. On the other hand, negotiating with shipping companies to get the best rates possible will be a crucial factor to increase profits.

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