Jewelry Marketing Plan

8/11/2019 Jewelry Marketing Plan

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Jewelry Marketing Plan

Executive SummaryContemporary Ti Design is a designer and manufacturer of unique titanium jewelry.

Contemporary Ti Design makes many designs in the form of earrings, pins, and

pendants. All of the products are designed and manufactured by Steve Artificer.

Each piece of jewelry is a work of art in itself, very special and unique. Most people

will feel that Steve's pieces are like nothing else they have ever seen. Steve will be

selling directly to end consumers through his website as well as at exhibitions/shows.

Steve will also use galleries, museum shops, and specialty jewelry retailers as a

distribution channel as well.

Steve will be operating Contemporary Ti Design out of his Hood River home. For the

first eight months Steve will be a one-man show. Steve will welcome an independent

sales representative on month eight to allow Steve to spend more time at home

designing and constructing.

Situation Analysis

Contemporary Ti Design is a start-up company operating out of the owner'shome. Marketing will be key to raise visibility and awareness of Contemporary Ti Design

and their products. The basic market need is for unusual pieces of art jewelry crafted out of

titanium. Titanium is used because of its hypoallergenic qualities (ideal for necklaces and

earrings that touch the skin), its incredible strength, and light weight.

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Market Summary

Contemporary Ti Design has a lot of information regarding the market and attributes

concerning their target customers. This information will be leveraged to continually

determine who the customer is, their specific needs, and how Contemporary Ti Design can

best communicate with them.
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Market Needs

Contemporary Ti Design is providing its customers with innovative, creative, handmade

jewelry. It will provide the following benefits to their customers:

Selection:A wide range of jewelry styles, creations, and anodizing schemes. Accessibility:Ti design sells direct to the consumer, through a network of art/jewelry galleries,

and at art fairs and shows.

Customer service:The patron will be impressed with the level of attention and service that

they receive. This level of service occurs during all transactions with Ti designs from answering

questions, to order taking, to warranty repairs.

Competitive pricing:The pricing structure provides the consumer with a good value for

handmade jewelry and the craftsmen with a fair profit.

Market Trends

The market trend within the jewelry industry is a movement toward custom, unique pieces as

well as limited production items. This trend is in response to the climate of the industry in

the mid-nineties where the jewelry market was flooded with thousands of identical pieces of

jewelry. Within a few years, people were running into others who had the same piece of

jewelry. This element of commonality or "run of the mill-ness" fueled demand for artistic

jewelry that was in low production and unique, not something that you would see very often.


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Customers are using similar pieces of jewelry as a way of creating distinction from the

common population, a way to stand out. This desire is part of a broader desire to be

different. Contemporary Ti Design has leveraged this trend by creating unique pieces that are

distinct.

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Market Growth

The artistic jewelry segment of the larger jewelry industry is growing at a healthy 9%. This

growth can be attributed to the value that people place on having distinctive, unique pieces of

jewelry.

Another factor that is supporting the growth is the blending of art and jewelry. Traditionally

jewelry was ornate pieces made out of precious metals. The nice pieces were a symbol of

wealth or status. As long as the piece was made out of a precious metal, there was value

attributed to the piece just by virtue of what it was made out of, regardless of the creativity ofthe actual piece. The younger population that recognizes the aesthetic value of art work is

now demanding jewelry to have artistic elements. In essence it is art that you wear. These

trends are helping the industry grow.

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SWOT Analysis

The following SWOT analysis captures the key strengths and weaknesses within the

company, and describes the opportunities and threats facing Contemporary Ti Design.

Strengths

Unique designs and construction methods.

Strong relationships with suppliers as well as galleries.

The flexibility to provide custom pieces.

A comprehensive distribution network from a robust website and a network of galleries.

Weaknesses

A large portion of the target market that is unaware of Contemporary Ti Design's products.

Limited time and budget to market the company to the segmented target population.

The struggle to constantly create new designs.

The possible inability to meet demand due to the small size of the company.

Opportunities

A growing market that, to a large degree, is unaware of Contemporary Ti Design.

The possibility to grow the size of the company so Steve is spending his time creating and allowing

others to deal with the administrative details.

The injection of fresh, creative designs in a somewhat stagnant industry.


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Threats

A decrease of availability of raw materials due to demand from other industries.

Artistic copycats that enter the market and mimic Steve's designs.

A slowdown of the economy that will have a reduction on individual's discretionary income.

Competition and Buying Patterns

As previously stated the jewelry industry is composed of thousand upon thousands of people.

Some work and distribute locally, others have national distribution systems set up. Some

artists will design products for larger companies to manufacture, others will design and make

the pieces themselves. This plan will have an abridged competition section. This is because of

the very large and distributed nature of artisan jewelry design, the market is entirely too

dispersed to have a complete catalog of the competition.

Competition takes the following forms:

Artists creating designs that are manufactured on a large scale and distributed nationally. The artists

might be famous enough to have their own one-name studio that creates designs and the product is

made and sold under the larger companies name. If the artist is not famous enough to have national

name recognition, the designers might belong to a firm that is hired to develop designs for a company

who will manufacture and sell the product.

A company that has their own designers in-house. In this case everything is done internally, design,

marketing and wholesaling. Another variation would be in-house designers, marketers and

wholesalers with the manufacturing contracted out.

Artists such as Steve who design and make all of the pieces themselves, and then do the wholesaling

or retailing themselves. In essence, one-man shows.

The buying patterns of consumers fall typically into two types. Gifts and impulse purchases.

A gift purchase occurs when the buyer is looking for a gift for someone, sees the art piece,

and then purchases it. In this case the plan is to make a purchase, it is just not known what or

where that purchase will be made. The other buying pattern is an impulse purchase. Someone

will be shopping, they are not in need of anything, will see the item and have to have it,

buying it on the spot. One last pattern, that occurs less frequently is if someone was looking

for an "accessory" that would match an outfit and happens to come across the piece of

jewelry and buys it.


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Product Offering

Contemporary Ti Design manufactures titanium jewelry. The jewelry takes the form of

pendants, earrings, and pins. All of the jewelry is made out of titanium. All of the products

are designed and made by Steve.

Steve has chosen titanium because of its unique characteristics. It is stronger than steel, yet

similar in weight to aluminum. It is inert and hypoallergenic.

Most of the jewelry is left unfinished. The gray of the titanium by itself looks quite nice.

Some of the pieces are anodized. Anodizing adds a broad range colors to the titanium.

Anodizing occurs by immersing the titanium in electrically charged water or hooking up the

titanium to a electrical power source. When charged with electricity, a light film or oxide will

form on the surface of the titanium and this produces color.

Contemporary Ti Design's pieces are constructed out of titanium sheets. The material is cut

using a saw blade. The interior of the pieces are cut by piercing a small hole through the

interior and inserting a saw blade. All pieces are made form several pieces of titanium. The

pieces are held together by rivets. Small holes are drilled through the different pieces and a

small wire (rivet) is inserted through. The head and end of the rivet is tapped with a hammer

and that enlarges the end holding the pieces together. In addition to the utility of the rivet, it is

aesthetically pleasing in terms of the overall look of the piece.

Keys to Success

Customer service.

Unique designs.

Creativeness.

Professionalism.

Critical Issues

Contemporary Ti Design is still in the speculative stage as a start-up venture. Its critical

issues include continuing to take a modest fiscal approach, expanding at a reasonable rate, not

for the sake of expansion in itself, but because it is economically wise to. Contemporary Ti

Design will continue to build brand awareness to assure growth in the customer and gallery

base.

Marketing StrategyContemporary Ti Design will rely on three forms of marketing activities. The first will be

attendance (including promotion with a booth) at the various art shows and festivals through


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out the country. This form of marketing/promotion is an efficient way to reach target

customers as well as generate sales at these events.

A second form of marketing is the use of the website which will be a source to disseminate

information, increase visibility, and process orders. The website will be submitted to various

search engines so people that are not even looking specifically for Contemporary Ti Design

will come across the site.

A third source of marketing will be networking and promotion through the network of

art/jewelry galleries. Initially Steve will be generating relationships with galleries.

Contemporary Ti Design will visit numerous galleries in many major cities and recruit them

to sell Steve's product. While the margins are smaller than if Contemporary Ti Design sells

the piece direct, the galleries will help significantly increase the volume of sales.




MissionContemporary Ti Design's mission is to make innovative pieces of art in jewelry using

titanium. We exist to attract and maintain customers through creative designs and customer

attention. When we adhere to this maxim, everything else will fall into place. Our services

will exceed the expectations of our customers.

Marketing Objectives

Increase the number of participating galleries by 8% a quarter after year one.

Increase Web traffic and sales by 5% each month.

Increase the amount of sales relative to marketing expenses steadily every quarter.

Financial Objectives

A 15% increase in productivity.

A decrease in variable costs through operating efficiencies.

An increase in sales, enough to warrant the hiring of additional people to take on administrative

details, allowing Steve to concentrate on his art work.


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Target Markets

Contemporary Ti Design will be focusing on two distinct groups of customers: the end

consumer, and galleries (galleries to be used as a distribution channel). The end consumer

will be interacting with Steve via his website as well as through personal contact at

exhibitions/shows. The galleries (also museum shops, jewelry stores) will also be met

through the exhibitions and shows. At these events a long-term relationship will be entered

into so that the shops become a retail distribution channel for Contemporary Ti Design.

Additionally, Contemporary Ti Design will be traveling the country meeting with different

galleries and setting up retailing relationships with them.

Positioning

Contemporary Ti Design will position itself as a creative constructor of artistic titanium

jewelry. Collectors of artistic jewelry will appreciate Contemporary Ti Design's unique

approach to wearable art.

Contemporary Ti Design will leverage its competitive edge:

It is based on creative, unusual designs. While this strategy can be replicated, it is not easy. Creative,

unusual designs require skill.

Steve is very skilled in what he does, and every piece that he manufactures incorporates an element of

creative, unusual, eye-catching design that stands out from most jewelry.

Strategies

The single objective is to position Contemporary Ti Design as an innovative, unique artistic

jeweler. This positioning is for the entire United States, the geographic region that

Contemporary Ti Design seeks to serve. The marketing strategy will seek to create customer

awareness regarding unique products offered, develop the customer base, and work toward

building a network of galleries as distributors.

The message that Contemporary Ti Design will communicate is that Ti Designs is a unique,

custom craftsmen of artistic jewelry. This message will be communicated through a variety

of methods. The first is through promotion and sales at various art shows and festivals

throughout the country. This method will be useful as it carefully targets one segmented

target population.

Another method will be the building of a gallery network that will serve as a distributor for

Ti's designs. Once this is established, this will be an effective sales outlet. The last method

for communicating Ti Design's positioning message is through their website. This website


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will provide unlimited geographic coverage and is a wealth of information regarding all of

Steve's products. Additionally, it will serve as a mechanism for order placement.

Marketing Mix

Contemporary Ti Design's marketing mix is comprised of the following approaches to

pricing, distribution, advertising and promotion, and customer service.

Pricing:The pricing scheme will be based on the cost of the raw materials and the amount of time

required to construct the piece.

Distribution:The products will be distributed via the website, at the booth that Ti Designs mans,

and through a network of galleries.

Advertising and Promotion:The avenues of distribution will also serve as the methods for

advertising and promotion.

Customer Service:Obsessive customer attention is the mantra. Ti's philosophy is complete

customer satisfaction. This will occur at whatever cost. Even if this does not make sense relative to

short-term profits it will be done, recognizing that this attitude will only bolster long-term business

health.

Marketing ResearchDuring the initial phases of the marketing plan development, several focus groups were held

for both consumers of artistic jewelry as well as buyers from galleries. These focus groups

provided useful insight into the decision making process of these target customers.

Steve also spent two months on the road participating in various art shows and festivals with

many different prototype pieces. This road show occurred to determine customer acceptance

of the product as well as to gauge demand. This information was then analyzed to determine

business feasibility.

The last source of marketing research involves road show and surveys that were handed out

at the fairs and shows. The purpose of the survey was to collect information regarding buyers

preferences, likes and dislikes regarding the designs, and price preferences of the products.

FinancialsThis section will offer a financial overview of Contemporary Ti Design as it related to the

marketing activities. Ti will address break-even analysis, sales forecasts, expense forecasts,

and how those link to the marketing strategy.


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Break-even Analysis

The Break-even Analysis indicates that $4,000 is needed in monthly revenue to reach the

break-even point.

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Break-even Analysis

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Break-even Analysis

Monthly Revenue Break-even $3,411

Assumptions:
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Average Percent Variable Cost 32%

Estimated Monthly Fixed Cost $3,400

Sales Forecast

The first month will be spent setting up the work quarters and building inventory. There will

be no sales. The second month will be spent traveling visiting galleries trying to set up

distribution channels. There will be no sales activity in month two as well. Month three will

mark the first month of sales activity. Steve will have been to exhibits and sold products, as

well as sales through the website. From month three on sales will increase

incrementally. Steve will be on the road usually about a week per month traveling to

galleries and exhibits. This will occur till month eight. Month eight will mark the time when

Steve will hire a sales representative to do the traveling to set up distributors and attendexhibitions to allow Steve to concentrate on his design and production. Month eight will

mark a larger increase in sales.

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Sales Forecast


Sales Forecast

2001 2002 2003
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Sales

Retailers (galleries) $21,566 $38,874 $45,785

Individuals $17,708 $23,545 $29,874

Total Sales $39,274 $62,419 $75,659

Direct Cost of Sales 2001 2002 2003

Retailers (galleries) $6,939 $5,831 $6,868

Individuals $5,646 $3,532 $4,481

Subtotal Direct Cost of Sales $12,584 $9,363 $11,349

Expense Forecast

Marketing expenses are to be budgeted accordingly:

Art shows and art festivals: these expenses will ramp up around the ten major shows throughout the

year. Expenses will include travel costs, booth construction, and entry/promotion fees.

Website: these expenses will be fairly flat the entire year and go to the maintenance of the site.

Gallery promotion: these expenses are primarily travel and networking expenses and will vary month

to month depending when trips are scheduled.

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Marketing Expense Budget


Marketing Expense Budget

2001 2002 2003

Art shows and festivals $3,400 $4,000 $4,500

Website $900 $900 $900

Other $850 $1,300 $1,600

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Total Sales and Marketing Expenses $5,150 $6,200 $7,000

Percent of Sales 13.11% 9.93% 9.25%

ControlsThe purpose of Contemporary Ti Design's marketing plan is to serve as a guide for the

organization. The following areas will be monitored to gauge performance:

Revenue: monthly and annual.
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Expense: monthly and annual.

Repeat business.

Customer satisfaction.

Word of mouth referrals




ImplementationThe following milestones identify the key marketing programs. It is important to accomplish

each one on time, and on budget.

Milestones


Milestones

Advertising Start Date End Date Budget Manager Department

Marketing plan completion 1/1/2001 2/1/2001 $0 Steve Department

Website completion 1/1/2001 2/1/2001 $900 Steve Department

Art show/festival activities 1/1/2001 ongoing $3,400 Steve Department

Gallery networking 1/1/2001 ongoing $900 Steve Department

Name me 1/1/2003 1/15/2003 $0 ABC Department



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Other 1/1/2003 1/15/2003 $0 ABC Department

Total Advertising Budget $5,200

PR Start Date End Date Budget Manager Department





Total PR Budget $0

Direct Marketing Start Date End Date Budget Manager Department





Total Direct Marketing Budget $0

Web Development Start Date End Date Budget Manager Department





Total Web Development Budget $0

Other Start Date End Date Budget Manager Department


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Total Other Budget $0

Totals $5,200

Contingency Planning

Difficulties and risks:

Problems generating visibility.

Change in customer preferences.

Inability to keep up with demand.

Worst case risks may include:

Determining the business cannot support itself on an ongoing basis.

Forced to sell assets to cover liabilities.

Documents

Jewelry Marketing Plan