Skirt Weights

Keep your skirt from flying up!

The Company

SWOT Analysis for SwarovskiThe company created a situational SWOT analysis of the external and

internal factors

MACRO-ENVIRONMENTALFACTORS

CultureDemographicsSocial IssuesTechnological advancesEconomic SituationRegulatory Environment

Shared meanings, beliefs, and values

American Women known to buy elaborate accessories

Professional product

Culture

Gender oriented demographic

Generational Cohorts◦ Generation X and Y

Demographics

Social trends effect how the Skirt Weight is perceived by consumers

Time Poor Society◦ QVC Advertising

Going Green◦ Post consumer metals

Social Issues

Existing information from past purchases

Social Media Platforms

Advancement in mining machinery

Technology

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

Economic Situation

Political◦ Warning labels◦ Poses choking hazard for kids

Ethical◦ Not a misleading product◦ Works as advertised

Regulatory Environment

IDENTIFYING AND EVALUATING OPPORTUNITIES USING STP

Target MarketSegmentationTargetingPositioning

Women

◦ Willing and Able

Target Market

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

Segmentation

Accessorize and match jewelry

Wear around office◦ Professional and not distracting

Targeting: Working Women

Tailgates

Long walks

Shopping trips

Targeting: College and High School Girls

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

Working Woman◦ Professional advertisements◦ Work on maintaining “functional accessory”

image

Positioning

MARKETING MIX

ProductPricePromotionPlace

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

Product

Fixed CostRent $15,000

Gemstone Cutting Machine $100,000

Utility Expense $30,000

Adminstrative Salary $500,000

Total Fixed Cost $645,000

$15,000

$100,0

00

$30,00

0 $500,000

Fixed Cost

RentGemstone Cutting MachineUtility ExpenseAdminstrative Salary

Fixed Cost(Per year)

Price

Variable Cost (per unit)

$15.80

$11.30

$0.21

$5.00

Variable Cost

Topaz GemsSilver PlatingSkirt Weight ClipLabor

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

Price

Selling Price $60 dollars per pack 1 clips and three

weights/pack $60 - $32.31= $27.69 B2C selling

Home and Garden Television80% of homes receive HGTV

Food Network65% of Food Network’s Audience is women86% of Households receive Food Network

Place: T.V. Ads

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

QVC Direct Buy

Multiple outlets in different malls ◦ Positioning in the store is vital to inspire interest

and want◦ In-store advertising◦ Sales Representative

Use Personal Selling

Place:Swarovski Stores

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

store and windows

Promotion

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, non-

football viewed event in U.S. television

Celebrity Endorsements

PROJECTED SALES

Target MarketProfitabilityWilling and Able Consumers

Projected Sales ChartMarket Segments ability and

willingness to purchase a Skirt Weight.

40% 30% 60%

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

Projected Sales

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

Start Up Cost

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

Conclusion