Skirt Weights

Keep your skirt from flying up!
The Company
SWOT Analysis for Swarovski
The company created a situational
SWOT analysis of the external and
internal factors
Culture
Demographics
Social Issues
Technological advances
Economic Situation
Regulatory Environment

MACRO-ENVIRONMENTAL
FACTORS






Shared meanings, beliefs, and values

American Women known to buy elaborate
accessories
Professional product


Gender oriented demographic



Generational Cohorts
◦ Generation X and Y




Social trends effect how the Skirt Weight is
perceived by consumers
Time Poor Society
◦ QVC Advertising



Going Green
◦ Post consumer metals


Existing information from past purchases



Social Media Platforms



Advancement in mining machinery


Currencies are valued higher than U.S. Dollar
◦ International company
◦ Able for other countries to buy our product



More consumers are being conscious of the
money they spend
◦ Poses problems for luxury goods


Political
◦ Warning labels
◦ Poses choking hazard for kids



Ethical
◦ Not a misleading product
◦ Works as advertised
Target Market
Segmentation
Targeting
Positioning

IDENTIFYING AND
EVALUATING OPPORTUNITIES USING
STP


Women
◦ Willing and Able


Two segments
◦ Working Women (48 Million)
◦ College and High School Girls (20 Million)



Different design set for each market
◦ Professional design
◦ Team colors with a flare


Accessorize and match jewelry



Wear around office
◦ Professional and not distracting


Tailgates



Long walks



Shopping trips


High School and College Girls
◦ Team colored weights
◦ Jewelry matching



Working Woman
◦ Professional advertisements
◦ Work on maintaining “functional accessory” image
Product
Price
Promotion
Place

MARKETING MIX


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



Multi-functional piece
◦ Holds skirt down
◦ Fashionable
Fixed Cost
Rent
Gemstone Cutting Machine
Utility Expense

$15,000
$100,000
$30,000

Adminstrative Salary

$500,000

Total Fixed Cost

$645,000

Fixed Cost

Fixed Cost
(Per year)

$15,000
$100,000

$30,000

Rent
Gemstone Cutting
Machine

$500,000

Utility Expense
Adminstrative Salary
Variable Cost (per pack)
Topaz Gems

$15.80

Silver Plating

$11.30

Skirt Weight Clip

$0.21

Labor

$5.00

Total Variable Cost

$32.31

Variable Cost

Variable Cost
(per unit)

$0.21

$5.00
$15.80

$11.30

Topaz Gems
Silver Plating
Skirt Weight Clip
Labor







$60 dollars per pack
1 clips and three
weights/pack
$60 - $32.31= $27.69
B2C selling
 Home

and Garden Television

80% of homes receive HGTV
 Food

Network

65% of Food Network’s Audience is women
86% of Households receive Food Network





Buy directly from store
Easily accessible
Trendy clothes and jewelry
Women aged 35 and older


Multiple outlets in different malls
◦ Positioning in the store is vital to inspire interest
and want
◦ In-store advertising
◦ Sales Representative
 Use Personal Selling


In-store Advertising and Personal Selling
◦ Employees will be well informed on product
◦ Advertising using posters and sign throughout the
store and windows


Celebrity endorsements will create value
◦ Recruitment of hardworking women to wear skirt
weights at significant events



Red Carpet opportunities provide personal
exposure
◦ The Academy Awards is the biggest annual, nonfootball viewed event in U.S. television
Target Market
Profitability
Willing and Able Consumers

PROJECTED SALES
40%

30%

60%

Projected Sales Chart
Market Segments ability and
willingness to purchase a Skirt
Weight.


Luxury product value
◦ If only 50% of women who are willing and able buy
the product it equates to 1.73 million women for
one segment
◦ The price set at $60.00 would equate a revenue of
$147 million
◦ Subtracting costs, the profit would be $67.1 million
over 3 years

First Year Projected Sales

• 500,000 = $13.9 million in revenue
• 13.9 million – 645,000 fixed cost
• 13.2 million first year profit


$2 Million start up cost
◦
◦
◦
◦
◦

$1 Million Advertising
$250,000 Research and Development
$500,000 Mining Cost
$200,000 Swarovski building fee
$50,000 Initial Machinery fee





Skirt Weight keeps skirts down!
Easy to pin on the dress
High School/College and Working Women
Profitability
PresentationFINALNOWWWW

PresentationFINALNOWWWW

Editor's Notes

  • #2 Cory– Nothing to say about this slide.
  • #3 CoryMission StatementWhere the company was foundedWhat the company isWhat the companies profit wasWhere are their stores (100 US stores or something)Popularity, Shiny things, Ect.
  • #4 Steven
  • #5 Steven
  • #6 Steven
  • #7 Steven
  • #8 Steven
  • #9 StevenWe can use existing information from past purchases of Swarovski crystalsSocial media platforms enable us to reach various different market segmentsAdvancement in mining technology has helped us reduce our cost
  • #10 StevenCurrencies are valued higher than the US dollar which means that international buyers can use the swarovski website to buy our product with the exchange rate. We are an international company alreadyMore consumers are spending their money more wisely rather than spending on luxury goods. We could have a problem with the demand for our product because of this
  • #11 Steven
  • #12 Billy
  • #13 BillyThe women must be willing and able to buy the product
  • #14 Billy
  • #15 Billy
  • #16 Billy
  • #17 Billy
  • #18 Austin
  • #19 Austin
  • #20 Austin
  • #21 AustinLabor cost is $5.00 per unit because we have a high quality standard and each unit is individually inspected
  • #22 Austin
  • #23 Peter
  • #24 Peter
  • #25 Peter
  • #26 Peter
  • #27 Peter
  • #28 Peter
  • #29 Peter
  • #30 Peter
  • #31 Steven
  • #32 Steven