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Marketing ProposalBy IED Christine Huang

10/01/10

+Index

Brand Introduction

Current Business Status

Future Expansion

Strategy

Summary

Q&A

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BRAND HISTORY

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HistoryHeavy Machine was established in 2009 to fulfill the dream of a generation of trendsetting women who demand a deeper sense of empowerment, with footwear designed to be sexy and edgy. Their distinctive looks for the modern woman allow her to make a statement with each step that she takes. Inspired by industrial machine structures and heavy, strong lines, the shoes are designed to give each woman that pleasure of being standout beautiful, yet uniquely feminine. Though high heels have traditionally driven women to sacrifice comfort for looks, these are definitely “shoes comfortable enough to run away in.”

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Brand Philosophy"High heels should be lightweight and sexy despite everyday expectations. But from a rational health point of view, high heels can harm your feel, legs, and your spine. It causes women to suffer, yet they love it anyway. If we could rename a high heel, we would name it "Heavy Machine", a machine that drives women crazy to sacrifice their health for being sexy.”

--Founders & Designers: Michelle Wu & Yoyo Pan

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CURRENT BUSINESS

+Current Collections

S/S 2010 S/S 2011

+Current Production

Leather imported from Italy

Taiwanese shoe maker handmade

New heels & lasts developed each season

+Current Production

Country Q’ty (pr)Amount (USD)

Price / pr

Belgium 104,072 2,554,537 24.55

France 236 3,723 15.78

Germany 11,056 312,822 28.29

Greece 1,456 45,357 31.15

Netherlands 21,434 416,551 19.43

Italy 28,064 743,867 26.51

Spain 2,746 43,873 15.98

U.K. 6,282 164,133 26.13

Leather Type Footwear Export Analysis Jan.~ Aug. 2009

(Resource: Taiwan Footwear Industrial Information Center)

+Current Distribution

New York Helianthus Soho www.helianthusny.com Babel Fair www.babelfair.com

Taiwan Mr. T www.mrtdesign.com.tw SOLE www.wretch.cc/blog/loncandy

Netherlands LaBeuf Shoes www.labeufshoes.eu

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FUTURE EXPANSION

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PARIS, FRANCE

Next Move

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Why France?

Population 64,420,073

Capital Paris

Economy GDP-Purchasing Power Parity:

$2.097 trillion (2009 est.) Exports:

$472.7 billion (2009 est.) Imports:

538.9 billion (2009 est.)

(resource from CIA Website– “The World Fact Book”)

A little fact of this country…

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Why Paris?

…has been ranked the 3 most influential cities in the world in ‘09 & ‘10 (research by Financial Times)

Population is approximately 2.2 million

60,000 shops in Paris

Public transportations are highly concentrated

(resource from Paris City Government)

One of the major fashion cities

A little fact of this city…

Our SWOT AnalysisWhat’s there in France for us?

ＳＴＲＥＮＧＴＨ

ＷＥＡＫＮＥＳＳ

ＯＰＰＯＲＴＵＮＩＴＹ

ＴＨＲＥＡＴＳ

1. Taiwanese shoe makers hand-made2. All leathers are imported from Italy3. Eye catching4. High quality with affordable price

1. New design / development is slow2. Limited quantities can be made at a

certain amount of time3. Revenue is very low

1. The style can be easily accepted2. New designers exhibition3. Attract consumers who like hand

made & stylish shoes4. High purchase power parity

1. Economy crisis caused unemployment

2. Many old hand made fashion brands among Europe that located in Paris

3. Easily to be eliminated

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Competitors AnalysisSeveral brands that are on our mind…

+Competitors

STRENTH1. The brand has launched for over 20 years2. Roberto Clergerie used to work under the famous

footwear designer Charles Jourdan3. More styles including casual footwear4. More distributions5. Factory located in France

WEAKENSS1. Shoes are made in mass production2. The average price is between €300~€500

3. The colors of styles are not as innovated

+Competitors

STRENTH1. Distributions over 40 countries in the world2. Made in France3. Collaboration with famous designers4. 200 styles per month

WEAKENSS1. Not many selections of styles2. Shoes are made in mass production

+Competitors

STRENTH1. Lasts are varies according to

different market

2. Hand made production 3. Adopting the “fast fashion concept”

WEAKENSS1. Only distributing in three countries

(France, China, & Taiwan)2. The ad campaigns for the brand

looks very cheap

+Competitors

Competitiveness

Attractiven

ess

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STRATEGY

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Consumer Profile

Gender—Female

Age—25~40 years old

Income—Mid to high

Characteristic—Straight forward,like to be different,

aggressive, true to herself

“French women's I-don't-give-a-damn worldview also expresses itself in their style.” –by Edith Kumz’s “Fatale: How French Women Do It”

+Consumer Profile

(Resource from www.worldsalaries.org)

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Retail Strategy

Ｏ rder through the official website

Designated boutiques and their online shop

Other options

+Price Analysis

Items Cost (Euro) / Pair % of Retail

FOB + Transportation

€41.18 16.5%

Overheads (labor, administration…)

€12.00 4.8%

Marketing / Promotion

€7.00 2.8%

Profits €90.27 $36.1

Selling Price €150

ＦＯＢ= €38.48 Target In-Store Price= €250

+ PromotionsEvents / Press

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ＳＵＭＭＡＲＹ

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ＯＢＪＥＣＴＩＶＥＳ1. Be able to launch the new collection in Paris by 2012

2. Attend a designer trade show in Paris or in Europe if possible

3. Contact the local magazines regarding the collection to be launched in the retailer / department store

4. Try to cut down the overheads in order to decrease the cost

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Q&A

Thank you!!