Start Up of Product BrandMid Term Project

Chebanova Veselina Kranthi Kiran Manthri Xinyun Zhang Anna Schiraldi

Idea of the brand

• Woman fashion SHOE brand • High COMFORT improvement of product• PERSONALIZATION with colors• CUSTOMIZATION with accesories

Comfort

Everyone is different

Everyone is different

• Two different fittings

• To introduce orthopedic technology and create comfortable insole (Collaboration with Politecnico of Milan)

• Make elastic stitches for hemline with one level lining

• To put special soft leather pillow on the counter part to provide more comfort

• Calculate amount of the load on foot and place the heel in the right position and make ergonomic platforms

Personalize

• COLOR YOUR LIFE! Wide range of colors

• CHOSE YOUR SHOES! Possibility to order the selected

styles with all the available colors (Fast delivery: 1 WEEK)

• BE CREATIVE! The customer can also order one

pair of shoe with two different colors

Customize

Everyone is different

• MAKE IT CONVENIENT! The customer can use different

accessories for one pair of shoes

• MAKE IT FLEXIBLE! The customer can create different

styles with change of accessories

• MAKE IT SMART! The customer can wear different

accessories for diffent occassions

MISSION• To personalize shoes according

to customers needs• To promote fashionable shoes

for every occasion• To improve comfort ability

VISION

Making women unique, fashionable and confident.

Vision & MissionEveryone is different

Serena Van Der Woodsen• IT girl• Work in PR• Very fashionable• Style: trendy, sexy, use different styles depending on occasion

Jenny Humphrey•Studies fashion design•Style: Rock and Avant-garde

Blair Waldorf• Works for Fashion Magazine• Style: retro, uses lots of accessories, romantic

Lily Van Der Woodsen• Business woman• Mother• Public figure• Style: elegant and classic

Our Customers

Trade Mark

We choose the brand name

HERA, because:

• Short and simple

• Easy to memorize and pronounce in all relevant languages

• Feminine and fits our product

• Easy to adapt to all advertising media

• Has a positive and strong connotation

Brand Name

Regional registration area: Europe

Owner of TM: Company

Class 18: Leather and imitations of leather, and goods made of these materials and not included in other classes; animal skins, hides; trunks and travelling bags; Umbrellas, parasols and walking sticks; whips, harness and saddlery.

Class 25: Clothing, Footwear, Heargear.

Class 35: Advertising, Business management, Business administration, Office functions.

Application

Preparatory studiesTrade mark name Graphic

representationNice classification

Hera’z H 14, 35, 42

Heraea No graphic representation

25, 41, 43

Hera No graphic representation

32, 33

Hera ballerina Not registered Not registered

Market Research

THE BUSINESS MODELAMSTERDAM: Headquarter (Fiscal Issues)

ITALY: Distribution channel (DOS)

CHINA: Manufactoring Accessories

MARCHE: Manufactoring shoes (Shoes cluster)

WORLD: Distribution channel (Online Retailing)

Footwear market in ItalyValue Quantity Price

s2010 Million

EuroWorld Rank

Million Pairs

World Rank

Euro

Export 7 296 2 222 4 32,92

Import 4 107 5 356 8 11,52

Production 5 630 203 9 27,8

Consumption 337 12

An Initiative of APPICCAPS Portuguese footwear, Components and Leather Goods Manufacture's Association

An Initiative of APPICCAPS Portuguese footwear, Components and Leather Goods Manufacture's Association

• World Market Share• 201010%

• Europe Market share• 201027.1%

• Export Increase in Quantity• Export Increase in Value

14%7%

• Import Increase in Quantity• Import Increase in Value

14%10%

• Main Importer • 30%

FranceGermany

• Main Exporter• 21%China

Footwear market in Italy

18%

19%39%

24%

Luxury € ≥ 300 € 9 billion

Fine € 100 - 300 € 9,1 billion

Medium € 30 - 100€ 19,4 billion

Ecomomical € ≤ 30 € 11.8 billion

Entry Segmentation

Excellent quality and perfect fit (handmade)Trendsetting Exclusive collection Mostly luxury or design brands

Very good quality and fitTrend following and attention to stylingVariety in collections but limited production

Acceptable qualityFunctionalLarge variety and high volume production

Low to medium qualityNon-brandedHigh volume production at the lowest price

Positioning MapJimmy Choo

TOD’s

Paul Smith

Coclico

Ecco

Bata

BIRKENSTOCKGEOX

Charlotte OlympiaLouboutin

Clarks

Casadei

Luxury

Economical

Practical Fashion

Giuseppe Zanotti

Product Development

Color palette. First collection.

• Power•Sophistication• Formality• Elegance• Mystery

• Excitement• Energy• Passion• Love• Speed

• Harmony• Health• Peace• Freshness• renewal

• Nature• Environment• Healthy• Intelligence• Confidence

• Stability• Harmony• Intuition• Meditation• Deepness

• Energy• Elegance• Luxury• Nobility• Confidence

• Sexuality• Pureness• Sensuality• Femininity• Nature

Merchandising ShoesFirst Collection

Model Color Fitting Sizes High Heels 9 cm 7 2 35 - 40

High Heels 9 cm with platform 7 2 35 - 40

Mid Heels 6 cm 7 2 35 - 40

Mid Heels 6 cm with platform 7 2 35 - 40

High Heels 9 cm mix color 4 2 35 - 40

Ankle boots High Heels 9 cm 7 2 35 - 40

Ankle boots High Heels 9 cm with platform 7 2 35 - 40

Ankle boots Mid Heels 6 cm 7 2 35 - 40

Ankle boots Mid Heels 6 cm with platform 7 2 35 - 40

Ballerinas 7 1 35 - 40

Loafers 7 2 35 - 40

Total: 11 styles

Collection

Heels 9 cm Heels 6 cm Ankle boots 9 cm Ankle boots 6 cm

Heels 9 cm with platform Heels 6 cm with platform Ankle boots 9 cm with platform Ankle boots 6 cm with platform

Loafers Ballerinas Mix Color

Merchandising AccessoriesFirst Collection

Model Color Variation SizesHigh boots style 7 2 1

Middle boots style 7 2 1Low boots variation 7 3 1Ankle Belt 6 2 1Anvil jewelry 1 3 1Heels ring 1 3 1

Total: 6 styles

Accessories

High boots style Middle boots style

Accessories

Low boots style

Accessories

Ankle Belt

Accessories

Anvil jewelry Heels ring

Production

Mixed Production

• Program production for shoes • + 2 Flashes per year• Fast fashion for accessories and

made to measure• Region of location: Marche, Italy

(exploiting the shoes cluster know-how)

• LEAD TIME: - for accessories 2 weeks - 1 week for custom made

Benefits

Program production • Product Development• Quality control• Product improvement

Fast fashion for• Short lead time• Flexibility• Easier forecast• Adapt to demand

Retail Price Calculation

General cost: 655 000 €(for one pair of shoes 10 €)

36,5 x Mark Up 5 = 182,5€

Direct cost:Material cost +

Labor Cost:13 + 18 x 45/60

= 26,5 €

182,5 + VAT 21% = 220€

Retail Price 220€

Price Range for Shoes Model

Retail Price for pair

Retail Price for one shoe

High Heels 9 cm 220 150

High Heels 9 cm with platform 220 150

Mid Heels 6 cm 220 150

Mid Heels 6 cm with platform 220 150

High Heels 9 cm mix color 260 260

Ankle boots High Heels 9 cm 290 210

Ankle boots High Heels 9 cm with platform 290 210

Ankle boots Mid Heels 6 cm 290 210

Ankle boots Mid Heels 6 cm with platform 290 210

Ballerinas 120 120

Loafers 160 160

ModelRetail Price for

pair Retail Price for

one

High boots style 59 39

Middle boots style 59 39

Low boots variation 49 29

Ankle Belt 39 19

Anvil jewelry 49 29

Heels ring 49 29

Price Range for Accessories

Distribution

DOS(Company Store)

• Communicate Brand Image

• High profit on sales

• Easier supply chain control

• Understanding of customer’s needs and expectations

• Customer Relationship Managment

• Quick response

Benefits:• Test the Market in different City• Understand customer’s needs

and expectation• Low investment & Low risk• High and creative

communication• Combination of exhibition,

performance and sales• Thematic event• Cooperation with young

creative designers and architect

POP UP (Temporary Store)

E-tailingDomain Name: www.herashoes.com

E-tailing or "virtual storefronts" on Web sites with online catalogs, sometimes gathered into a "virtual mall“

• Reduction of general costs• 24-hour availability• Global reach• No distribution cost• the ability to interact and provide

custom information and ordering• High brand image• Online shopping experience • Never-ending products

Communication

We communicate through:

• Word of mouth

• Collaboration with artist

• Promotion in Fashion Blogs

• Social Media

• Customers testimonials in blogs

• Promotion of our website in our stores

Planning Plan for five years

First Year

• Start in August 2013 with our autumn - winter collection

• DOS in Milan

• 3 Pop-up shops in different part of Italy during one year

• Developing production

• Organizing panel test

• Customer Profiling

• DOS in Rome

• Website improvement

• Collaboration with artist for creating flash collections

• Market research in Italy and other EU countries

Second Year

• DOS in Bologna

• Strong collection

• Collaboration with famous designers for accessories line

• Strong communication

Third Year

• DOS in Torino

• Communication investments

• Retail expansion in France and Germany

Fourth Year

• Brand extension

• Different Colored Bags with the same product idea

• launch accessories new line headgear, necklace, brooch, and earring

Fifth Year

Video

Everyone is different