This action might not be possible to undo. Are you sure you want to continue?
0 Executive Summary
Contemporary 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.
2.0 Situation Analysis
Contemporary Ti Design is a start-up company operating out of the owner's home. 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.
2.1 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.
99% Individuals 1% Retail
2.1.1 Market Demographics
The profile for the ideal customer consists of the following factors: Geographics • The United States is the geographic area. This is due to the enormous reach of the Internet as well as promotion and distribution in most of the larger states. • The total targeted population is 168,000.
. unique pieces as well as limited production items. Behavior Factors • Enjoy spending their discretionary income on art or jewelry.000. This desire is part of a broader desire to be different. creations. •Accessibility: Ti design sells direct to the consumer.Demographics • Male and female.000. and at art fairs and shows.$80.1. to order taking. Customers are using similar pieces of jewelry as a way of creating distinction from the common population. This level of service occurs during all transactions with Ti designs from answering questions. a way to stand out. • Have attended some or all of a 4-year degree program at a university. Contemporary Ti Design has leveraged this trend by creating unique pieces that are distinct. 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. 2. •Customer service: The patron will be impressed with the level of attention and service that they receive. • Have liberal political views. • Live a progressive lifestyle. and anodizing schemes. It will provide the following benefits to their customers: •Selection: A wide range of jewelry styles. through a network of art/jewelry galleries. • Income ranging from $30. •Competitive pricing: The pricing structure provides the consumer with a good value for handmade jewelry and the craftsmen with a fair profit.2 Market Needs Contemporary Ti Design is providing its customers with innovative. Within a few years. not something that you would see very often. • Ages 21-43.3 Market Trends The market trend within the jewelry industry is a movement toward custom. • Middle of the road liberal politically.1. creative. to warranty repairs. people were running into others who had the same piece of jewelry. handmade jewelry. 2. This element of commonality or "run of the mill-ness" fueled demand for artistic jewelry that was in low production and unique.
This growth can be attributed to the value that people place on having distinctive.2.4 Market Growth The artistic jewelry segment of the larger jewelry industry is growing at a healthy 9%.2. there was value attributed to the piece just by virtue of what it was made out of. • A slowdown of the economy that will have a reduction on individual's discretionary .2 Weaknesses • A large portion of the target market that is unaware of Contemporary Ti Design's products. 2. • The possible inability to meet demand due to the small size of the company. to a large degree. 2. In essence it is art that you wear. • Limited time and budget to market the company to the segmented target population. unique pieces of jewelry. creative designs in a somewhat stagnant industry. • The injection of fresh. • The flexibility to provide custom pieces.2. 2. • The struggle to constantly create new designs. • Artistic copycats that enter the market and mimic Steve's designs. 2.4 Threats • A decrease of availability of raw materials due to demand from other industries. As long as the piece was made out of a precious metal.1. Another factor that is supporting the growth is the blending of art and jewelry. • A comprehensive distribution network from a robust website and a network of galleries. The nice pieces were a symbol of wealth or status.2. Traditionally jewelry was ornate pieces made out of precious metals. is unaware of Contemporary Ti Design.2. • Strong relationships with suppliers as well as galleries. These trends are helping the industry grow.1 Strengths • Unique designs and construction methods. The younger population that recognizes the aesthetic value of art work is now demanding jewelry to have artistic elements. regardless of the creativity of the actual piece. • 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.3 Opportunities • A growing market that.
It is stronger than steel. Some work and distribute locally. Another variation would be in-house designers. This is because of the very large and distributed nature of artisan jewelry design. a light film or oxide will form on the surface of the titanium and this produces color. In essence. Steve has chosen titanium because of its unique characteristics. and then do the wholesaling or retailing themselves. 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. one-man shows. The gray of the titanium by itself looks quite nice. 2. • Artists such as Steve who design and make all of the pieces themselves. they are not in need of anything. Anodizing adds a broad range colors to the titanium. and pins. others have national distribution systems set up. 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. Some artists will design products for larger companies to manufacture. Anodizing occurs by immersing the titanium in electrically charged water or hooking up the titanium to a electrical power source.3 Competition and Buying Patterns As previously stated the jewelry industry is composed of thousand upon thousands of people. it is just not known what or where that purchase will be made. and then purchases it. . If the artist is not famous enough to have national name recognition. will see the item and have to have it. All of the jewelry is made out of titanium. others will design and make the pieces themselves. Some of the pieces are anodized. In this case everything is done internally.4 Product Offering Contemporary Ti Design manufactures titanium jewelry. The buying patterns of consumers fall typically into two types. The jewelry takes the form of pendants. Competition takes the following forms: • Artists creating designs that are manufactured on a large scale and distributed nationally. Gifts and impulse purchases. the designers might belong to a firm that is hired to develop designs for a company who will manufacture and sell the product. The other buying pattern is an impulse purchase. marketers and wholesalers with the manufacturing contracted out. the market is entirely too dispersed to have a complete catalog of the competition. All of the products are designed and made by Steve. When charged with electricity. Most of the jewelry is left unfinished. It is inert and hypoallergenic. buying it on the spot. Someone will be shopping. In this case the plan is to make a purchase. 2. marketing and wholesaling. sees the art piece. yet similar in weight to aluminum. One last pattern. A gift purchase occurs when the buyer is looking for a gift for someone. This plan will have an abridged competition section.income. design. earrings. • A company that has their own designers in-house.
1 Mission . All pieces are made form several pieces of titanium. In addition to the utility of the rivet. 2. Initially Steve will be generating relationships with galleries. A second form of marketing is the use of the website which will be a source to disseminate information. and process orders. The interior of the pieces are cut by piercing a small hole through the interior and inserting a saw blade. The first will be attendance (including promotion with a booth) at the various art shows and festivals through out the country.5 Keys to Success • Customer service. While the margins are smaller than if Contemporary Ti Design sells the piece direct. 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.Contemporary Ti Design's pieces are constructed out of titanium sheets. expanding at a reasonable rate. increase visibility.0 Marketing Strategy Contemporary Ti Design will rely on three forms of marketing activities. The material is cut using a saw blade. Contemporary Ti Design will continue to build brand awareness to assure growth in the customer and gallery base. not for the sake of expansion in itself. Small holes are drilled through the different pieces and a small wire (rivet) is inserted through. 2. Contemporary Ti Design will visit numerous galleries in many major cities and recruit them to sell Steve's product. A third source of marketing will be networking and promotion through the network of art/jewelry galleries. Its critical issues include continuing to take a modest fiscal approach. 3. The head and end of the rivet is tapped with a hammer and that enlarges the end holding the pieces together. • Unique designs. the galleries will help significantly increase the volume of sales. This form of marketing/promotion is an efficient way to reach target customers as well as generate sales at these events.6 Critical Issues Contemporary Ti Design is still in the speculative stage as a start-up venture. • Professionalism. 3. but because it is economically wise to. The pieces are held together by rivets. • Creativeness. it is aesthetically pleasing in terms of the overall look of the piece.
unusual designs require skill.Contemporary Ti Design's mission is to make innovative pieces of art in jewelry using titanium. unusual. When we adhere to this maxim. it is not easy.3 Financial Objectives • A 15% increase in productivity. At these events a long-term relationship will be entered into so that the shops become a retail distribution channel for Contemporary Ti Design. allowing Steve to concentrate on his art work.6 Strategies . 3. The galleries (also museum shops. Contemporary Ti Design will be traveling the country meeting with different galleries and setting up retailing relationships with them. and galleries (galleries to be used as a distribution channel). Creative. enough to warrant the hiring of additional people to take on administrative details. eye-catching design that stands out from most jewelry.2 Marketing Objectives • Increase the number of participating galleries by 8% a quarter after year one. and every piece that he manufactures incorporates an element of creative. • A decrease in variable costs through operating efficiencies. The end consumer will be interacting with Steve via his website as well as through personal contact at exhibitions/shows. • Increase Web traffic and sales by 5% each month. jewelry stores) will also be met through the exhibitions and shows. 3. • Steve is very skilled in what he does. 3.5 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. While this strategy can be replicated. • Increase the amount of sales relative to marketing expenses steadily every quarter. everything else will fall into place. unusual designs. Contemporary Ti Design will leverage its competitive edge: • It is based on creative. 3.4 Target Markets Contemporary Ti Design will be focusing on two distinct groups of customers: the end consumer. • An increase in sales. We exist to attract and maintain customers through creative designs and customer attention. 3. Our services will exceed the expectations of our customers. Additionally.
and work toward building a network of galleries as distributors. •Advertising and Promotion: The avenues of distribution will also serve as the methods for advertising and promotion. Once this is established. Another method will be the building of a gallery network that will serve as a distributor for Ti's designs. The marketing strategy will seek to create customer awareness regarding unique products offered. 3. This method will be useful as it carefully targets one segmented target population. custom craftsmen of artistic jewelry. and through a network of galleries. advertising and promotion. Ti's philosophy is complete customer satisfaction. This will occur at whatever cost. unique artistic jeweler.7 Marketing Mix Contemporary Ti Design's marketing mix is comprised of the following approaches to pricing. Even if this does not make sense relative to short-term profits it will be done. This website will provide unlimited geographic coverage and is a wealth of information regarding all of Steve's products. This positioning is for the entire United States. These focus groups provided useful insight into the decision making process of these target customers.8 Marketing Research During the initial phases of the marketing plan development. •Distribution: The products will be distributed via the website. •Customer Service: Obsessive customer attention is the mantra. Additionally. The last method for communicating Ti Design's positioning message is through their website. the geographic region that Contemporary Ti Design seeks to serve. This message will be communicated through a variety of methods. develop the customer base. this will be an effective sales outlet. at the booth that Ti Designs mans. it will serve as a mechanism for order placement. distribution. Steve also spent two months on the road participating in various art shows and festivals with many different prototype pieces. The message that Contemporary Ti Design will communicate is that Ti Designs is a unique. •Pricing: The pricing scheme will be based on the cost of the raw materials and the amount of time required to construct the piece. recognizing that this attitude will only bolster long-term business health. The first is through promotion and sales at various art shows and festivals throughout the country. 3.The single objective is to position Contemporary Ti Design as an innovative. This road show occurred to determine customer acceptance of . and customer service. several focus groups were held for both consumers of artistic jewelry as well as buyers from galleries.
4. There will be no sales. 4. Steve will be on the road usually about a week per month traveling to galleries and exhibits.2 Sales Forecast The first month will be spent setting up the work quarters and building inventory. • Website: these expenses will be fairly flat the entire year and go to the maintenance of the site. Month eight will mark the time when Steve will hire a sales representative to do the traveling to set up distributors and attend exhibitions to allow Steve to concentrate on his design and production. The purpose of the survey was to collect information regarding buyers preferences.0 Financials This section will offer a financial overview of Contemporary Ti Design as it related to the marketing activities.3 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. This will occur till month eight. There will be no sales activity in month two as well. 4. and entry/promotion fees. booth construction. and how those link to the marketing strategy. The second month will be spent traveling visiting galleries trying to set up distribution channels. and price preferences of the products. 4. Steve will have been to exhibits and sold products. The last source of marketing research involves road show and surveys that were handed out at the fairs and shows. as well as sales through the website.000 is needed in monthly revenue to reach the breakeven point. sales forecasts. • Gallery promotion: these expenses are primarily travel and networking expenses and will vary month to month depending when trips are scheduled . expense forecasts. Month eight will mark a larger increase in sales. From month three on sales will increase incrementally. likes and dislikes regarding the designs. Month three will mark the first month of sales activity.the product as well as to gauge demand. Expenses will include travel costs.1 Break-even Analysis The Break-even Analysis indicates that $4. This information was then analyzed to determine business feasibility. Ti will address break-even analysis.
Worst case risks may include: • Determining the business cannot support itself on an ongoing basis. and on budget. . • Forced to sell assets to cover liabilities. 5. • Change in customer preferences. • Expense: monthly and annual. • Inability to keep up with demand. The following areas will be monitored to gauge performance: • Revenue: monthly and annual.1 Implementation The following milestones identify the key marketing programs. Steve will outsource the website development.5. It is important to accomplish each one on time.0 Controls The purpose of Contemporary Ti Design's marketing plan is to serve as a guide for the organization.3 Contingency Planning Difficulties and risks: • Problems generating visibility. • Customer satisfaction.2 Marketing Organization Steve Artificer will be primarily responsible for the marketing activities. • Word of mouth referrals 5. • Repeat business. 5.
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue listening from where you left off, or restart the preview.