BUYING AND MERCHANDISING

OPERATIONS RESEARCH EVENT

San Leandro DECA
San Leandro High School
2200 Bancroft Avenue
San Leandro, California 94577-6103
Frederick Kao, Aaron Gaona, Melissa Chavez
January 8
th
, 2014











Table of Contents


I. EXECUTIVE
SUMMARY1

II. INTRODUCTION
A. Description of the business or
organization.2
B. Description of the community (economic, geographic, demographic and
socioeconomic
factors)...............................................................................................................................2-
3
C. Description of the business or organizations mission, target market and existing
branding

efforts...3

III. RESEARCH METHODS USED IN THE STUDY
A. Description and rationale of research methodologies selected to conduct the research
study..4-5
B. Process used to conduct the selected research
methods..5-6

IV. FINDINGS AND CONCLUSIONS OF THE STUDY
A. Findings of the research
study6-8
B. Conclusions based on the
findings......8-9

V. PROPOSED REBRANDING PLAN
A. Objectives and rationale of the proposed rebranding
plan..9-10
B. Proposed activities and timelines.11-
12

VI. PROPOSED BUDGET
A. Costs associated with proposed rebranding strategies....12-
13
B. Proposed metrics to measure return on investment
(ROI)............................................13-14

VII. BIBLIOGRAPHY.....14-
16















Executive Summary


Rasputin Music is a well known music brand in the Bay Area that originated in Berkeley
in 1971 by Ken Sarachan. The Rasputin Music in San Lorenzo was created as a franchise which
has been located on Hesperian Boulevard since 1999. Rasputin Music provides used and new
CDs, DVDs, vinyl records, music accessories (for example turntables), buys back music, games,
movies, and sells other merchandise like shirts, sweatshirts, and bags.
When conducting research we took information from primary and secondary research
areas. The primary research we conducted a survey and questionnaire in which we surveyed 50
people along with having a personal interview with a manager at the San Lorenzo store. For
secondary research we obtained information from online sources such as the official website and
Yelp.
We found that the most predominant problem in the store was their organization of the
products was inconvenient and that they would like them to have a larger, newer selection.
Among other findings in our research, we learned that the San Lorenzo Rasputin Music does not
have a large follower base in social media, only having a Facebook page and having one
reference on the official Rasputin website. We found that in a short interview that they do not
have an official mission statement, they do not have a large social media presence and they are
against very large competitors in their market.
Our proposed plan was over the next three months we want to help the San Lorenzo store
grow in social media along with helping to make their store to be more suited for customer
convenience. Since they are only on one of the dozens of social media sites, we want to promote
them on Instagram and Twitter along with promoting in store concerts like the one in Berkeley
does.
Our budget for the San Lorenzo Rasputin Music store rebranding is as cost-efficient as
possible. Promotions are virtually free but the money would go to funding necessary items for an
inside concert.



II. Introduction
A. Description of the Business or Organization
Rasputin Music is a music store where they sell a variety of things including albums,
records, movies, games, novelty items, and music accessories. Rasputins was established in
1971 in Berkeley, California and then in San Lorenzo, California in 1999. Rasputins has
expanded and has multiple stores within Alameda County. Rasputins is a retail business and
was opened by a man named Ken Sarachan but can now also be considered a secondhand
business since it has also taken up purchasing used or unwanted items.
Rasputins provides music and entertainment to their customers through their various
collection of albums, DVDs, music accessories, and much more. There are also events held for
the community such as concert ticket giveaways and performances by local artists. That aside,
Rasputins has also taken up buying used and unwanted items and the pay range for those items
is provided on their online webpage. Pay range varies by the category of the item and the
categories include old DVDs, videos, games, cassettes, and laserdiscs. Used games can have a
20% increase in trade which can have up to $25 cash or $30 in store value. For used DVDs, they
can range from $2-$30 depending on the popularity of the video or film. Used CD range from ten
cents to ten dollars regardless of the type of genre. Rasputin's is open from 11 A.M. to 9 P.M
from Monday through Thursday and Sunday and 10:30 A.M. to 10 P.M. on Fridays and
Saturdays. The business has a total of twenty employees and possible work hours are 5 hours.

B. Description of the Community (Economic, Geographic, Demographic and
Socioeconomic Factors)
San Lorenzo, located in Alameda County, is within the Bay Area region with a
population of 23,452 as of the 2010 Census. The median household income in Alameda County
is $60,703 and is considered a diverse county with the median resident age at 39.3 years. The
majority of the community is still youthful, as seen in the percentages.
Population
1. 24.2% under the age of 18
2. 9.4% age 18 to 24
3. 26.9% age 25 to 44
4. 26.8% age 45 to 64
5. 12.7% age 65 years or older
C. Description of the Business or Organizations Mission, Target Market and Existing
Branding Efforts
Rasputin Music's target market can vary due to its varied selection ranging from past
selections to newer and more modern selections. That aside, their target market is prioritized to
collectors and people who dont use the internet. Rasputin Music does not have an official
mission statement. Since the larger portion of its stock seems to be older classics, more people in
their later years go there when they are looking for something they knew of in their younger
years. Rasputin's potential customers are from the more youthful culture and also adults who are
still into music whether it be from the present or the past.




III. Research Methods Used in the Study


A. Description and Rationale of Research Methodologies Selected to Conduct the Research
Study

When conducting the research we found that the website provided mostly information based
on all the stores in general or mostly the one in Berkeley so we decided to go firsthand to the
store. Our objective was to analyze and review the current state of how the store is seen as a
brand through the eyes of the customers along with the stores marketing strategy. Our goal was
to improve and rebrand Rasputins Music so for that we conducted primary and secondary
research.


Secondary Research


Research Databases Social Media Classroom Presentations
1. City Data



1. Re-Branding Articles
2. The Brand Gap
Company Information Online Articles
1. Companys Website
2. Companys Myspace
3. Companys Facebook
1. "Rasputin Music Reviews" Yelp
2. "Rasputin Music" Wikipedia
3. "Rasputin is hoping for sweet sound of success" Dennis
Taylor
4. "Cortera Company Profile for Rasputin Music" Cortera
Business Directory




Rationale: To begin the research process, secondary research sources were utilized to gather all
existing data about Rasputin Music's statistics, target market, and social media strategies along
with how it affects its sales. We gathered information on Rasputin Music's current social media
strategies, inventory, and current conflicts that have been provided by current customers as
feedback to the business. Since social media is growing in trend, we gained an insight of how it
could be useful to rebrand the business and give the business a newer image.


Primary Research


Personal Interviews Customer Questionnaires
1. Rasputin Musics Store Manager 1. 50 people interviewed



Personal Interview
Rasputin Music Store Manager
Rationale: To further our knowledge about the business itself, its target market, opinions on the
brand, and vision of social media methods, we conducted an interview with the Store Manager.
Throughout the interview we were able to collect data and statistics about the social media
strategy and their involvement with it, along with more information on their customers and
employees.


Customer Questionnaire


Rationale: To learn more about the potential and target market, a questionnaire and survey was
used. This allowed us to gather data about the trending items that sell and the status of the
business thought the eyes of the customers. Questions related to opinions about the service and
business in general were included. The questionnaire provided us with an insight of the main
focus points for the rebranding process.


B. Process Used to Conduct the Selected Research Methods


Personal Interviews: To gain more knowledge about Rasputin Music and their business as a
brand, we conducted an interview with the manager. Before the interview process, we researched
and organized a series of questions based on the data that was still required and could be
potentially useful in the future. To get in contact with our interview source, we made phone calls
to several numbers to set up the interview and obtain information. During the interview, short
notes were taken and information that was needed was easily obtained because of the series of
questions asked.
Conducting the interview with a manager from San Lorenzos Rasputin Music, the place in
which the business is in is a fairly large space. It is an older vintage look that is provided there
and is busy with many different types of people who look for collector items such as shirts or
other older products like vinyl records or cassettes. The manager was able to further our
knowledge on the location and it's current status.


Teen Questionnaire: It was important for us to understand our target market and critical points
for rebranding by interviewing customers and potential customers around the business area and
receiving their feedback. To receive effective information for our studies, our team decided to
use an average approach in creating the questions used in providing the feedback. To assist the
data analysis we included absolute and unbiased opinion, "yes or no", and multiple choice
questions. Objectives were set in order for the research method to take place effectively. Through
the questionnaire we aim to gain more knowledge about the target markets feelings and
emotions towards the music industry that takes place outside of the internet.


IV. Findings and Conclusions of The Study


A. Findings of the Research Study
After the interview with the manager of the San Lorenzo Rasputins Music store we found
that they have a target market not limited to people of a certain age but people of certain interests
such as customers whom collect novelty items or the avid music listener.


Primary Research
Key Findings: While conducting primary research on the San Lorenzo Rasputin Music store, we
found that of the problems listed on a created survey which were: pricing, customer service,
condition of items, security, and the organization of the store; we found that the organization of
the store was of the highest to be a problem for people who took the survey, and the customer
service and the condition of items while security and the pricing for the products were at the
lowest of all the presented problems. Also, finding that some people who shop for music on
CDs would go to other larger brand stores such as Walmart or Target. Most people who were
surveyed would hope that if the San Lorenzo Rasputin Music were to change in anyway then it
would become more organized.


Secondary Research
Key Findings: During our research using the available information online we were able to gather
the basic information needed to fuel a rebranding plan. Resources such as the companys social
media pages and Yelp were used alongside the many articles and databases that were also
utilized for our findings.
From the research conducted it was noted that there was no record of a mission statement
recorded on the website or any other sites with the history of the business. Through social media
and review sites we were able to gather more in depth data that was more along the lines of first
hand information provided by the business and the people. Through Yelp we were able to find
the general information such as location alongside with helpful feedback from the past and/or
current customers. Through those reviews we were able to pin-point the common problems that
the business and customers alike have been facing. Some of the problems included pricing,
selling payouts, used collections being too worn out, and the quality of the customer service.
Articles online also helped with the background check for some of the information that was
needed.
While gathering information from the company website we observed that there were
many activities, promotions, and public relations activities that Rasputin Music organized but
most took place in the more popular business location in Berkeley although there were some
giveaways that might have applied to more than one of the locations.


B. Conclusions Based on the Findings
The main conclusion that we have came across is that the Rasputin Music store in San
Lorenzo should have more channels of promotion and not just limit itself to one personalized
page for itself.
Conclusion #1: After conducting a short interview with one of the managers we found
that their social media promotion was very unsteady considering that they have other means
of advertisement that are free. Also, with the many promotions that are posted on the webpage
we saw that most were to attract customers to the store in Berkeley so there should be more
advertisement and promotion for the store in San Lorenzo.
Conclusion #2: There seems to be very little awareness of Rasputin Music's social media
presence even though the company owns it's own Myspace and Facebook accounts. Since teens
and young adults are the most associated with social media they will be the primary target
market and will ensure that there will be more youthful customer generations. Throughout the
use of the major social networks such as Facebook and Twitter we will be able to attract more
customers as well as help increase sales.
Conclusion #3: Looking at the location and the information as to why the location was
chosen for Rasputin Music we can assume that they have a limited budget that is also limited due
to the amount of sales made. Since the Berkeley one is more popular than it has more advertising
and promotional activities whereas the one in San Lorenzo does not. Most advertising does cost
money but some do not such as social media or even some public relations activities. With the
less costly methods of publicity we will be able to attract more potential customers as well as
increase sales and make the San Lorenzo location a more popular location.
Conclusion #4: Other music retail businesses, such as Amoeba, and even the more
popular Rasputin Music locations, such as the one in Berkeley, all have a much better strategy
and management of how to use their social media to appeal to the potential and current
customers. As a result their locations are more successful and have regular or increasing sales.
Creating the San Lorenzo location it's own webpage and updating all of the company's social
media will be essential to making the location more appealing to the eye of the potential and
current customers. The webpages and social media will help reach out to the customers in order
to improve their experience even outside the location.


V. Proposed Rebranding Plan
A. Objectives and Rationale of the Proposed Rebranding Plan
1. Find better ways of promotion for Rasputin Music because when we interviewed the
manager he said they only had a Facebook page and no official web page for that store. Also
another type of promotion would be to make an app and would be able to access the inventory
from the app and be able to place orders on what they want to buy.
Rationale: With means of promotion through more than one social media site such as
Facebook can lead to a growth in customers and begin to grow a larger fan base than had before
with just one way of advertising special promotions from. The app would make shopping at
Rasputin Music much more easier for a person to shop by being able to check inventory, hours,
and other things that would affect a persons inconvenience.
2. Logo should be more commonly known and also we can also make the logo look
different so that it can be appealing to customers.
Rationale: The company as a franchise itself has been around for more than 40 years and
has not seen any drastic logo changes. The current logo seems to be slightly plain and can be
improved to become more appealing to younger adults than the ones that currently visit the store.
3. Create a mission statement because Rasputin music does not have a current mission
statement for customers on any type of advertisement. Without a mission statement the company
appears to be less professional and official.
Rationale: With the creation of an official mission statement then it would give customers
a clearer summary into what the business does.
4. The difference in organization. Some customers who walk into the store for the first
time can be confused very easily with the change in their organization, customers can find what
they want faster.
Rationale: With a total reconstruction of the store, more people who find the original
stores layout to be confusing or have difficulty trying to find something specific will easily find
what they want or need and want to come back because of either the likeness of a product or the
service that comes along with finding a CD, record, movies and other merchandise of the sort.
B. Proposed Activities and Timelines
The activities and timelines needed for Rasputin Music to advance in their social
media/promotions and improve the San Lorenzo Rasputin Music as a whole in order to rebrand it
so that it can be known beyond the Bay Area.
Online Promotion Plan Strategies
1. Individual Webpage: Rasputin Music already has a webpage but it's purpose is for all of
the stores in general. That's not the case because most of the promotions and advertising
are generated for the Berkeley location. It's is best to create a personalized webpage for
just the San Lorenzo location this way more promotions can be made for that location
and will not be outshined.
2. Increase Facebook and Other Social Media Followers: Since going out to buy your
own music seems like a thing of the past if we can show that the youth are still into
places like Rasputin Music then the store will also have a youthful feel to it and the target
market will continue to increase which means more potential customers and increased
sales. Also, increasing followers will show others who come across it that it is a popular
place and may become potential customers.
3. Updating Social Media: The location's social media will be updated regularly with
activities and other similar promotions like that of the location in Berkeley because that
seems to be the customer attraction, such as the concerts that are held at the locations.


Offline Promotion Plan Strategies
1. In-Store Concerts: To increase the service and sales, customer attraction will be
increased using indoor concerts, raffles/giveaways, and autograph signings like the ones
held at the more popular Berkeley location. To gain attention about the promotional
events there will be different advertising forms such as informational flyers and
brochures, promotional merchandise, community newspaper advertisements, and
promotion information on customer receipts. These can take place yearly or as often as
the location is willing.
Timeline
January February March
Starting with the creation of
more social media outlets for
advertisement.
Begin promotional campaign
to gain more followers and
increase awareness.
Monitor social media outlets
and improve on gaining
followers and views
Begin to implement more local
events (events such as small
indoor concerts)
Plan local events by either
local companies or other
local groups.
Create mission statement and
begin reorganization ideas.


VI. Proposed Budget
A. Costs Associated with Proposed Rebranding Strategies
The investment necessary to follow through with the proposed rebranding plan is as follows:
Online Promotional Costs
1. Create Individual Web Page: Creating a web page for that particular store location should
have no potential cost since there are many sites that allow you to do so at no extra cost.
COST: $0
2. Increase Facebook and other Social Media Followers: Social media is one of the key tools
for a business to use since many of the popular ones today are free. Using social media,
followers will be able to be updated with store events and promotional activities.
COST: $0
3. Updating Social Media: Keeping a social media page updated has no additional cost and will
provide followers with up-to-date information on any events, sales, or promotional activities.
COST: $0
TOTAL ONLINE INVESTMENT: $0


Offline Promotional Costs
1. In-Store Concerts: For the concerts being held, there will be different advertising campaigns
to gain customers' attention and promotional merchandise. Flyers will be posted around the area
to gain attention and will be promoted within the store before the event. T-shirts and buttons will
also be sold to help spread word of the event and increase sales and popularity for the store.
END COST: Depending on the event, about $1,000 would be set aside to provide the products
necessary for the event and advertising per event.
TOTAL OFFLINE INVESTMENT: About $1,000 per In-Store Concert
TOTAL ONLINE INVESTMENT: $0
TOTAL OFFLINE INVESTMENT: +$1,000
TOTAL CAMPAIGN INVESTMENT: +$1,000


B. Proposed Metrics to Measure Return on Investment (ROI)
ROI & Sales Related Metrics
1. Increase in Facebook and other social network following as well as sales.
% Increase (Followers/Fans)
+15%= Excellent
15%- 13%= Very Good
13%- 10%= Good
10%- 8%= Fair
8%- 5%= Bad
<5%= Poor


In-Store Concert Campaign Traffic Metrics
For the in-store concert campaign to be successful, some aspects of the event must be tracked.
1. Total number of Rasputin Music's Social Media Followers/Fans
2. Number of Social Media followers/fans sharing Rasputin Music's posts about concerts
3. Track web traffic from all social media sources
4. Brand Mentions: Track both positive and negative online brand mentions or comments


VII. Bibliography
1. Internet Sites
"Neighborhood Information for San Leandro, CA, 94578." Movoto. N.p., n.d. Web. 9
Jan. 2014. <http://www.movoto.com/neighborhood/ca/san-leandro/94578.htm>.


"Rasputin Music - Berkeley, CA - Music Store, DVD & Video Store | Facebook."
Facebook. N.p., n.d. Web. 10 Jan. 2014. <https://www.facebook.com/RasputinMusic>.


"Rasputin Music- San Lorenzo,CA." Yelp. N.p., n.d. Web. 3 Jan. 2014.
<http://www.yelp.com/biz/rasputin-music-san-lorenzo?start=80>.


"Rasputin Music Store." Myspace. N.p., n.d. Web. 9 Jan. 2014.
<https://myspace.com/rasputinmusic>.


"San Leandro, California." City-Data. Onboard Informatics, n.d. Web. 9 Jan. 2014.
<http://www.city-data.com/city/San-Leandro-California.html>.


"San Leandro Population and Demographics." AreaConnect. N.p., n.d. Web. 10 Jan.
2014. <http://sanleandro.areaconnect.com/statistics.htm>.


"San Lorenzo, California." Wikipedia. Wikimedia Foundation, 01 Feb. 2013. Web. 10
Jan. 2014. <http://en.wikipedia.org/wiki/San_Lorenzo,_California>.


"Welcome to Rasputin Records." Rasputin Music RSS. N.p., n.d. Web. 10 Jan. 2014.
<http://www.rasputinmusic.com/>.


2. Personal Interviews
Store Manager of Rasputin Music in San Lorenzo, California


3. Consultants
Styner, Mary. Marketing Education and DECA Advisor.