Skirt Weights

Skirt Weights

Keep your skirt from flying up!

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

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

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 STP

Target MarketSegmentationTargetingPositioning

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 even

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 MIX

ProductPricePromotionPlace

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

Labor Per Unit 20.00$ Clip 0.21$ Topaz Per Unit 16.80$ Silver Per Unit 96.39$ Variable Per Unit 133.40$

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$

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

Price Per Unit Contribution Margin Break Even Units140.00$ 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

Costs: Break-Even Analysis

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 SALES

Target 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

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 $60.00 would equate a revenue

of $147 million◦ Subtracting costs, the profit would be $67.1

million

Projected Sales