Skirt WeightsKeep your skirt from flying up and away!
Introduction to the Company
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.”
Swarovski’s Mission Statement
SWOT Analysis for SwarovskiThe company created a situational SWOT analysis of the external and
internal factors.
The Skirt WeightWhat is it?
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!
What is a Skirt Weight?
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
Skirt Weight: Material
Macro-environmentalFactors
CultureDemographicsSocial IssuesTechnological advancesEconomic SituationRegulatory Environment
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!
Culture
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.
Demographics
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.
Demographics
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!
Social Issues
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.
Social Issues
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.
Technology
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.
Economic Situation
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.
Regulatory Environment
Identifying and Evaluating Opportunities
Using STPTarget Market- Segmentation- Targeting- Positioning
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
Target Market
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.
Segmentation
Market Segment ChartSegmentation
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.
Targeting
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.
Targeting: Working Women
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
Targeting: College and High School Girls
High School and College Girls
◦ Positioned in this market we market college-colored 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.
Positioning
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.
Positioning
Marketing MixFour P’sSuccess and Profit Maximization
The Marketing Mix describes our Four P’s to success and maximum profit.◦Product◦Price◦Place◦Promotion
The four elements will solidify profitable venture.
The Marketing Mix
Product
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.
Product: Skirt Weights
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.
Product
Price
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
Price
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.
Company Objective
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.
Customers
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.
Customers
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.
Costs
Costs: Variable and Fixed
Variable Costs
Fixed Costs
Rent 15,000.00$ Gem Cutting Machine 8,000.00$ Utility Expense 2,000.00$ Insurance 3,000.00$ Adminstrative Salary 100,000.00$ Total Fixed 128,000.00$
Labor Per Unit 20.00$ Clip 0.21$ Topaz Per Unit 16.80$ Silver Per Unit 96.39$ Variable Per Unit 133.40$
Costs: Variable and Fixed
Variable Cost Pie Chart
Fixed Cost Pie Chart
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 $180.00 per unit.
Costs: Break-Even Analysis
Costs: Break-Even AnalysisPrice Per Unit Contribution Margin Break Even Units
140.00$ 6.60$ 19383145.00$ 11.60$ 11031150.00$ 16.60$ 7709155.00$ 21.60$ 5925160.00$ 26.60$ 4811165.00$ 31.60$ 4050170.00$ 36.60$ 3497175.00$ 41.60$ 3077180.00$ 46.60$ 2747
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.
Competition
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.
Channel Members
Place
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.
Place
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
Place: Advertisements
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.
Place: Home and Garden Television
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.
Place: Food Network
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
Place: Retail
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.
Place:QVC
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.
Place:Swarovski Stores
Promotion
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.
Promotion
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, non-
football viewed event in U.S. television.
Promotion:Celebrity Endorsements
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.
Promotion:In-Store and Personal Selling
Projected SalesTarget MarketProfitabilityWilling and Able Consumers
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.
Projected Sales
Projected Sales ChartMarket Segments ability and
willingness to purchase a Skirt Weight.
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
Projected Sales
Questions?