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Skirt Weights

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Skirt Weights new product!

Skirt Weights new product!

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Skirt Weights Presentation Transcript

  • 1. Keep your skirt from flying up and away!
  • 2.  The mission of Swarovski and its retail stores is about the impact that its products can make in everyday lives, and reflects the desire of the Swarovski founder to use crystals to “spread joy.”
  • 3. SWOT Analysis for Swarovski The company created a situational SWOT analysis of the external and internal factors.
  • 4. What is it?
  • 5.  The Skirt Weight is a thin, pin-like attachment that slips effortlessly through fabric. ◦ The thin needle will leave no holes in clothing.  Accessorized with Swarovski crystal creations. ◦ These crystal creations will be able to keep the skirt down in the wind and add some glam to your outfit!
  • 6.   The pin and weight are made out of Sterling Silver with a fineness of 925 parts per thousand. The decorative creation can be clipped on and off of the product is made from various metals and distinguished Swarovski Crystal. ◦ The two are separately manufactured and brought together in the packaging process
  • 7. Culture Demographics Social Issues Technological advances Economic Situation Regulatory Environment
  • 8.    Culture is the shared meanings, beliefs, moral values and customs of a group of people The culture of our product we are selling to is American woman who are widely known to buy products to accent their style. The skirt weight will constitute a very professional product not to cause workplace distractions. ◦ Except Jealousy!
  • 9.   The targeted Demographic is gender oriented. The generational cohort being targeted is Generation X and Y. ◦ Generation X has spending power and convenience is important. ◦ Generation Y is similar and enjoy easy access with the constant availability of the internet.
  • 10.   Distinguishing between the Income and Education gap. The product is an unsought luxury good. ◦ Singling out specific income and education levels could risk leaving out less affluent classes.  Even those in the lower classes purchase items like these to stand out, look better, and feel better.
  • 11.  Social Trends can directly effect how Skirt Weights performs in the market. ◦ America is moving towards budgeted approach shopping ◦ Skirt Weight will have challenges.  Value must be added with product and price. ◦ Clip will be made from post-consumer recycled material. Go Green!
  • 12.  America is a time-poor society.  Advertising to this society will include the QVC Network ◦ This gives consumers quick and ample time to see and purchase product.  Advertising will not be used in the mass media of T.V advertising. ◦ The market we are trying to reach is a specific target audience.
  • 13.  We will be using our existing information of online purchases. ◦ We can see who has purchased similar Swarovski products. ◦ With this group determined we could market directly through outlets such as e-mail.
  • 14.  Most currencies are valued higher than the U.S Dollar. ◦ This attracts international tourism interest.  Interest rates have been substantially lower than in the past. ◦ Consumers are more likely to save money. ◦ This causes a problem for a luxury good.
  • 15.  Skirt Weights will not be affected by the environment. ◦ Not marketing towards kids, over the telephone, or through illegal channels. ◦ Swarovski is in a market with competitors so becoming a monopoly is no option.  Advertising used will be held to fullest extent of integrity and not to mislead.
  • 16. Target Market - Segmentation - Targeting - Positioning
  • 17.  The target market for this luxury good is going to be middle to upper class women and working women. ◦ This product will help make a fashion statement. ◦ And to feel comfortable in any position they are thrown in
  • 18.   Swarovski has identified three different segments that could be possibly marketed to with different products. We intend to have a design set to market to each of the three segments ◦ The segments are closely identified as potential buyers of the product and represent who we feel might be a profitable segments.
  • 19. Market Segment Chart Segmentation
  • 20.  Swarovski identified two segments to be most profitable. ◦ Working woman and the college and high school girls. ◦ They represent the women who have the funds and will buy an unsought luxury product.
  • 21.  Working women would be able to wear the product in and around the office. ◦ Professional and shows flash! ◦ The weight provides a function to skirts and dresses, and has the ability to match and accessorize your jewelry and outfit.
  • 22.  This segment could be considered the girl who is going out to bars and going to football game tailgates often. ◦ The high winds at stadiums during tailgates leave women wanting to keep dresses and skirts down!  Skirt Weights and Swarovski’s crystals provide the option to match your outfits and team colors for any event
  • 23.  High School and College Girls ◦ Positioned in this market we market collegecolored attachments and flashy appeal. ◦ Advertise in magazines such as Cosmopolitan, Seventeen, and People Magazine.  These ad’s will feature the product as classy and need to have item to fit the next trend.
  • 24.  Working Woman ◦ Business woman will be targeted through magazines and news sources such as;  Bloomberg Business  New York Times  Vogue Business Edition ◦ This is to emphasize how the crystals and design will make your outfit substantially better.
  • 25. Four P’s Success and Profit Maximization
  • 26.   The Marketing Mix describes our Four P’s to success and maximum profit. ◦ Product ◦ Price ◦ Place ◦ Promotion The four elements will solidify profitable venture.
  • 27.  Will be made from quality sterling silver material and the beautiful topaz gem Swarovski is famous for. ◦ Differentiated designs for each of the target segments will be developed.  The Skirt Weight is a multi-function piece of holding your skirt down to avoid embarrassing moments and looking fashionable while doing so.
  • 28.  Working Class Women ◦ Product will be more geared towards professionalism. ◦ Skirt Weight will flow with their outfit and not stand out to much.  College and High School Girls ◦ Product designed to match jewelry, college colors and sports teams, and flavor to outfit. ◦ Add value in fashion and to keep skirts down during long dates and outdoor tailgates.
  • 29.  The overall sacrifice a consumer is willing to make for a product or service ◦ Money ◦ Time ◦ Energy  We must consider the Five C’s of Pricing; ◦ ◦ ◦ ◦ ◦ Company Objectives Customers Costs Competition Channel Members
  • 30.   The objective is to design a product that creates value for the consumer to meet fashion and function needs and spread joy. We will take a Customer Orientated approach. ◦ There are two ways to do so  Focus on satisfaction by setting prices to match expectations  Lower overall price to increase value.  We will set prices to match expectations for our luxury product.
  • 31.   When creating value for customers, price is half of the value equation. Demand Curves help determine the level of demand at given prices for certain products and markets ◦ New product has no past data to analyze ◦ We know that as price increases, demand drops and as price decreases, demand raises.
  • 32.  Skirt Weights are a mix of a luxury product and provides function to clothing. ◦ Establish a price that maintains high status but still provides value.  Little outside factors influence because it is a new product. ◦ Our product could be considered a complimentary good to skirts and flowing dresses.
  • 33.   All fixed and variable costs are considered in pricing. We can not conclude final rice solely based on cost alone. ◦ Consumers need to perceive value. ◦ Price is set upon considering these costs we incur, provided value, and profitability.
  • 34. Variable Costs Labor Per Unit Clip Topaz Per Unit Silver Per Unit Variable Per Unit $ $ $ $ $ 20.00 0.21 16.80 96.39 133.40 Fixed Costs Rent Gem Cutting Machine Utility Expense Insurance Adminstrative Salary Total Fixed $ $ $ $ $ $ 15,000.00 8,000.00 2,000.00 3,000.00 100,000.00 128,000.00
  • 35. Variable Cost Pie Chart Fixed Cost Pie Chart
  • 36.  A break-even analysis considers the relationship between cost, price, revenue, and profit at different levels of production and sales. ◦ A problem is not being able to indicate level of sales  We examined our break-even point in units ranging from $140.00 per unit up to $180.00 per unit.
  • 37. Price Per Unit $ $ $ $ $ $ $ $ $ 140.00 145.00 150.00 155.00 160.00 165.00 170.00 175.00 180.00 Contribution Margin Break Even Units $ 6.60 19383 $ 11.60 11031 $ 16.60 7709 $ 21.60 5925 $ 26.60 4811 $ 31.60 4050 $ 36.60 3497 $ 41.60 3077 $ 46.60 2747
  • 38.   Focus on effect and how competitors react to our pricing strategies. Monopolistic Market ◦ Many firms in the market for clothing accessories ◦ Product is highly differentiated. ◦ Other products can not be viewed as a perfect substitute to the Skirt Weight.
  • 39.  Manufacturers, Retailers and Wholesalers. ◦ Communication is vital to avoid conflict.  Consumer impression of the brand is at a high in the value from the point of manufacturing to retailer ◦ Prices must be established and honored. ◦ Retailers marking prices lower then manufacturer recommended could adversely effect consumer impression.
  • 40.   Convenience is a key ingredient to success Placement of the product is judged by the target market. ◦ Where they live, and spend their free time is valuable to the success of a product. ◦ Also used to determine where advertisements should be placed and the retail stores to be sold in.
  • 41.  Advertisements will be located online at certain websites and on certain T.V channels. ◦ The internet is a global entity with reach past that of the T.V. ◦ Television ads will be sought after for their viral environment. ◦ Specific Networks  Home and Garden Television  Food Network
  • 42.  HGTV is an American based network owned by Scripps Network Interactive. ◦ 98,229,000 or 86.01% of American households receive HGTV ◦ HGTV continues to be the #1 market for upscale and classy woman.
  • 43.  An American company owned by Scripps Network Interactive and Tribune Cable Ventures. ◦ 99,283,000 or 86.94% households receive Food Network ◦ 65% of the Food Network’s audience is women. ◦ The network states their target audience is women ages 25 to 54.
  • 44.   Our advertisements will point to the stores that are easily accessible to the target market. Advertisements will inform the consumer of where to purchase the product. ◦ Specific Retailers include:  QVC T.V sales  Swarovski stores
  • 45.  QVC is an American home shopping network that is created to advertise products to sell on air. ◦ QVC’s target market is women ages 35 and older who love to shop.  Products pay for airtime on the network. ◦ QVC sales come directly from airtime and make purchasing easy. ◦ Also provide online product viewing and purchase.
  • 46.  Multiple outlets in different malls and shopping centers throughout the country. ◦ Positioning in the store is vital to inspire interest and want.  Sales Representatives in the store are able to discuss the product and inform consumers.
  • 47.  To get people to understand the product and promote value, there will be 3 different types of promotion. ◦ Celebrity Endorsements ◦ Personal Selling ◦ In-Store Advertisements.
  • 48.  Celebrity Endorsements will be a main promotion aspect that creates value. ◦ Recruitment of classy, hard working public figures to wear Skirt Weights.  Red Carpet opportunities provide personal exposure from specific sources. ◦ The Academy Awards is the biggest annual, nonfootball viewed event in U.S. television.
  • 49.  Our Swarovski stores will use a combination of in-store advertising with personal selling. ◦ Employees will be well informed on product and how it works to ensure consumers who enter the store are aware of the Skirt Weights value. ◦ Advertising using posters and sign throughout the store and windows will have solid exposure in the malls.
  • 50. Target Market Profitability Willing and Able Consumers
  • 51.   Determined by the number of women in our target market that are willing and able to buy the luxury Skirt Weight. Willing and able consumers have the money and desire to buy a luxury unsought good. ◦ 48 million women employed full time in the U.S ◦ Swarovski projected 40% are willing and able. ◦ This is about 19.2 million woman willing and able.
  • 52. Projected Sales Chart Market Segments ability and willingness to purchase a Skirt Weight.
  • 53.  The Skirt Weight is a product who has a high value perception. ◦ 50% of the women in our willing and able category purchase a Skirt Weight. ◦ The price set at $x.xx would equate a revenue of $x.xx ◦ Subtracting costs, the profit would be $x.xx