The document provides details about a proposed Skirt Weight product from Swarovski. The Skirt Weight is a thin pin that slips through fabric to hold skirts down and can be accessorized with Swarovski crystals. The document outlines Swarovski's SWOT analysis and discusses targeting working women and college/high school girls. It describes the marketing mix of product, price, placement and promotion strategies to maximize profit through the Skirt Weight.

1. Keep your skirt from flying up and away!

3.  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.”

4. SWOT Analysis for Swarovski
The company created a situational
SWOT analysis of the external and
internal factors.

5. What is it?

6.  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!

7.  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

8. Culture
Demographics
Social Issues
Technological advances
Economic Situation
Regulatory Environment

9.  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.
◦ Except Jealousy!

10.  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.

11.  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.

12.  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. Go Green!

13.  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.

14.  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.

15.  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.

16.  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.

17. Target Market
- Segmentation
- Targeting
- Positioning

18.  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

19.  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.

20. Market Segment Chart
Segmentation

21.  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.

22.  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.

23.  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 event

24.  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.

25.  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.

26. Four P’s
Success and Profit
Maximization

27.  The Marketing Mix describes our Four P’s to
success and maximum profit.
◦ Product
◦ Price
◦ Place
◦ Promotion
 The four elements will solidify profitable
venture.

29.  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.

30.  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.

32.  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

33.  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.

34.  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.

35.  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.

36.  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.

37. Variable Costs
Fixed Costs
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$
Labor Per Unit 20.00$
Clip 0.21$
Topaz Per Unit 16.80$
Silver Per Unit 96.39$
Variable Per Unit 133.40$

38. Variable Cost Pie Chart
Fixed Cost Pie Chart

39.  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.

40. Price Per Unit Contribution Margin Break Even Units
140.00$ 6.60$ 19383
145.00$ 11.60$ 11031
150.00$ 16.60$ 7709
155.00$ 21.60$ 5925
160.00$ 26.60$ 4811
165.00$ 31.60$ 4050
170.00$ 36.60$ 3497
175.00$ 41.60$ 3077
180.00$ 46.60$ 2747

41.  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.

42.  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.

44.  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.

45.  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

46.  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.

47.  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.

48.  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

49.  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.

50.  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.

52.  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.

53.  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.

54.  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.

55. Target Market
Profitability
Willing and Able Consumers

56.  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.
◦ 48 million women employed full time in the U.S
◦ Swarovski projected 40% are willing and able.
◦ This is about 19.2 million woman willing and able.

57. Projected Sales Chart
Market Segments ability and
willingness to purchase a Skirt
Weight.

58.  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 $x.xx would equate a revenue of
$x.xx
◦ Subtracting costs, the profit would be $x.xx