Concept Development by Catherine McAleer

1. REPORT WORD COUNT: 4391 Catherine McAleer (MCA07207870) c.mcaleer1@fashion.arts.ac.uk

Table of

CONTENTS Executive Summary

Brand Values

Aims and Objectives Visual Identity

Brand Concept

7-9

The Consumer

11 - 15

Consumer Profile

16 - 21

The Competitors

23 - 48

Market Positioning

PESTLE

50 - 53

SWOT

Range Plan

Production

58 - 59

Supply Chain

Retail positioning

61 - 62

Online Presence

Publicity and Marketing

64 - 65

Conclusion

Executive

Summary Catherine McAleer will operate as a limited company, selling a range of luxury women’s footwear. This concept development report will look at the various aspects of establishing an SME design business. The strongest unique selling point for Catherine McAleer is the brand’s Irish background and use of traditional Celtic craftsmanship. The collection will be inspired by juxtaposition; of tradition and technology, vintage and modern, masculine and feminine. It will hold a deep memory of the past, which has been thrust into the future of new technology. Research has identified three main consumers; the Irish, British and Tourist consumer, they vary in age yet have similar needs. Against strong competition such as Bally, Lanvin and Rupert Sanderson, Catherine McAleer intends to become an identifiable brand within the market, through the use of intricate design details and strong sculptural features, which will command attention. The company will sit among these luxury brands in stores such as Brown Thomas in Ireland and Selfridges, London. Expansion to other countries will develop once UK and Irish stockists are established. A strong online presence will be acquired through a company website and stores such as net-a-porter. The collection will consist of a small refined range of shoes to suit the consumers’ needs. It will include a combination of flat and low to mid-height heels and one limited edition high heel, all available in a variety of sizes and colours. The manufacture and component supplies will be sourced in Ireland where possible.

Brand Values ~

Refined luxurious products

Attention to detail

~ Distinguished ~ Quality ~

Unique limited edition value

Amalgamating art, craft and design

Promotion of Irish craftsmanship

Aims ~

To create a luxury branded footwear company under the trading name, Catherine McAleer.

To source materials and production within Ireland where possible.

To establish a brand identity that communicates uniqueness and quality.

objectives ~

To offer an exclusive limited edition footwear design to customers.

To acquire at least five distinguished stockists in Europe in the first year of trading.

To break even after two years of trading.

To move to own workshop after five years of trading.

Visual Identity ~

Luxury quality

Celtic aesthetic

Irish descent

Vintage inspiration

‘The design is a way to communicate the emotion behind the brand and company’s philosophy.’ (www.emotionalbranding.com)

(Brand logo can be found in Book 3: Body of Work)

Brand

Concept Technological advances of the 21st century have brought increased material benefits and comfort to Ireland, the price paid, in terms of the country’s cultural heritage, has been high. ‘The indigenous, the traditional, and the work of the craftsman have been neglected’. (Mc Williams, 2007: 273) Author and economist David McWilliams suggests that the only way Ireland can get back on its feet, after the current recession, is by calling back our “Global Tribe,” who have dispersed throughout the world. We need to be producing our own goods, creating jobs and utilizing the skills of our workforce. ‘We can reimagine Ireland and reposition ourselves for the 21st century. No other country is doing this or can do this because no other country has a bigger diaspora, no other nation has fewer enemies, no other people have a stronger brand and no other tribe is as flexible.’ (Mc Williams, 2007: 273) As the creator and designer of the Catherine McAleer (CMA) brand is a native of Ireland, there is a powerful patriotic connection to her country of origin and a commitment to combining the ancient skills with modern technologies in order to forge a unique collaboration of both elements. Throughout the brand and in the designs, there will not only be a strong focus on Irish craftsmanship, such as embroidery, and metal work but also a reflection of the latest technological advances. As the brand expands it will offer local employment in other area of the business. A recent report prepared by Indecon International Economic Consultants, Economic Significance and Potential of the Crafts Sector in Ireland, highlights the fact that the craft sector makes an important contribution to national and local economic development in Ireland. A summary of the key measures of direct economic contribution of the Irish craft sector is presented in the table below. It is evident that there is a significant home and export market for Irish craft. Branding will help drive the company forward and ensure its future prosperity.

Direct Economic Contribution of the Craft Sector ________________________________________________________________ Estimated Value of Output

€498m

Estimated Employment

5,771

Value of Exports

€125.5

Value of Irish Market Sales

€373.5m

________________________________________________________________ FIG. 1

CMA will employ the skills of local crafts people and especially that of design graduates whose talent should be nurtured. Figure 2 below shows the number of students who are currently studying craft related courses in Ireland. If there is a lack of jobs in Ireland for these skilled people, they will go to other countries for employment, whereas jobs should be created in Ireland for those students. The extent of the recent problem was outlined in the latest Central Statistic Office figures, which shows that Irish emigration is ‘now at its highest level since the Great Famine, with 111 people leaving the country every day.’ (www.cso.ie)

Artistic and Creative Courses

Number of Courses

Number of students

Artistic and creative PLC

Total PLC Courses

Courses (% of total)

(% of total)

_________________________________________________________________________ Total

376

10,152

100%

14.50%

Art, Craft & Design

225

6,075

59.80%

8.70%

Courses related to craft

100

2,700

26.60%

3.80%

Craft Courses

1,377

13.60%

2.00%

Fig. 2

Catherine McAleer will be in a position to profit from recent craft promotions in Ireland and also gain investors. ‘The Crafts Council of Ireland and Northern Ireland have designated 2011 as the Year of Craft. The year marks the 40th anniversary of the Crafts Council of Ireland and will be celebrated through a diverse range of dynamic events and programes to showcase the very best of craft made on the island.’ (http://www.craftinireland.com/)

The Craft Council of Ireland emphasizes that ‘craft practice has significant social benefits, for example, enhancing well being and contributing to social inclusion.’ (http://www.ccoi.ie/)

‘Enterprise Ireland is the government organisation responsible for the development and growth of Irish enterprises in world markets. We work in partnership with Irish enterprises to help them start, grow, innovate and win export sales on global markets. In this way, we support sustainable economic growth, regional development and secure employment.’ (http://www.enterprise-ireland.com/en/)

Although it is idealistic to believe that creating craft products will be the answer to unemployment and the off-shoring of jobs, they do perform an underrated function by building and binding communities. Craft depends on skills being passed from one person to another and becomes a lifestyle, not a job. ‘Very few jobs can offer the same satisfaction. The tradition lives on in the skill, the craft, the pride, and if it dies we will be the poorer for it.’ (Hands, 1970, 15mins) Creating local supply chains generates a ‘healthy local economy that retains money, has a stronger immune system and is less vulnerable to global fluctuations in labour and currencies.’ (Barton, http://www.independent.co.uk/)

The

Consumer Who will purchase CMA shoes and buy into the brand is a key factor for a start up business and much emphasis has been placed on researching and targeting the right people. Questionnaires were carried out in areas such as Sloane Square, Knightsbridge and Notting Hill. Further questionnaires were answered by consumers in Belfast and Dublin city centre and also at Kilkenny Design Centre.

Results show that consumers are most interested in the quality, comfort and style of the shoes they purchase. A recent Mintel report also suggests that there has been a ‘significant rise in women investing in quality clothes, with almost a quarter (23%) buying fewer items but better quality garments, compared with one in eight in 2010. Under-35 females and those in the AB socio-economic group, as well as women with children aged 0-4 are most likely to invest in quality clothes.’ (Mintel, Women’s Fashion Lifestyles, 2011)

Most Important Factor When Purchasing Women’s Footwear (%)

15%

Comfort Style

Quality 18%

Ethical Value for money

11%

Brand Ethos Investment

8% 17% 7%

Country of manufacture

15% of women claimed that the country of manufacture was important in their decision-making. ‘I like to look and feel good, that means quality shoes. Italian or British are know to be well made.’ (See Appendix 1) People are aware of where their shoes come from and know which countries produce quality products. The questionnaire was adapted for the Irish consumer and when asked if it was an attractive trait for companies to be Irish-made, almost 100% replied that it was, ‘it has a reputation for being of good quality and high craftsmanship.’ (See Appendix 1) Garvan de Bruir, who runs a traditional design and craftsmanship studio in Kildare replied, ‘yes they are, but handmade products will always be fighting against the brand recognition factor and the complete merchandising and marketing machine, as opposed to just a product comparison. Around the world, the campaign for ‘local sourcing’ has always been promoted.’ (Appendix 2, page 38) These are positive words of reassurance for CMA, this means creating a brand alongside the craftsmanship of the product will be extremely important to the long term success of the company. 12

The results from the questionnaire indicate that the consumer aged 36-40 is the largest spender on shoes priced £450 - £750. Figure 3 proves people are interested in purchasing limited edition shoes and many would be willing to pay up to £1000 for them. The results again identify the age group 36-40 as the highest spenders. This information will contribute to the pricing strategy for the range. (see page 57)

Percentage of Women Who Would purchase Limited Edition Footwear

90 80 70 60 50

Percentage (%)

40 30 20 10 0

Yes Maybe

fig. 3 Average Amount Women would Spend on Limited Edition Footwear, In Relation To Age

£0-‐150 £151-‐300

£301-‐450 £451-‐600

£601-‐750 £751-‐900

£901-‐1050

20-‐25

26-‐30

31-‐35

36-‐40

41-‐45

46-‐50

51-‐55

56-‐60

60+

Average Amount Spent on Women’s Footwear In Relation To Age

4 £0-‐150 £151-‐300

£301-‐450 £451-‐600 £601-‐750

£751-‐900 £901-‐1050 1

20-‐25

26-‐30

31-‐35

36-‐40

41-‐45

46-‐50

51-‐55

56-‐60

60+

Questionnaire answers, demonstrates that it varies where people purchase their shoes and clothing. Many answers did indicate, regardless of earning power that their style was very much vintage inspired and often purchased from charity shops. Overall the questionnaire indicated that women’s outfits combined high street, designer and vintage, whereas their accessories and shoes were often purchased from designer stores to acquire quality and comfort from these items. After extensive research into CMA’s potential consumers, three types of consumer were identified and examined. ‘Consumer A’ is the primary customer. Working and living in Ireland, she is aged between 25 and 35. Secondary ‘Consumer B’ is a British woman, aged between 30 and 40. ‘Consumer C’ is the tourist customer, who is the youngest aged between 20 and 28. The graphs below indicate that Ireland and the UK have two different demographics; therefore the Irish consumer is slightly younger than the UK consumer.

Ireland and UK Female Population in relation to age

Uk: Female Popula.on

Ireland: Female Popula0on 100 years+

100 years+

90-‐ 94 years

80-‐ 84 years

70-‐ 74 years

60-‐ 64 years

50-‐ 54 years

Ireland

50-‐ 54 years

40-‐ 44 years

30-‐34 years

20-‐ 14 years

10-‐14 years

0-‐ 4 years

0-‐ 4 years 0

50000 100000 150000 200000

1000000

2000000

3000000

Fig. 4

Analysis of Craft Purchases in Ireland - Craft Consumers by Type

Tourist (Foreign) Tourist (Irish) Local Shoppers

Fig. 5

The tourist consumer is becoming more and more important to Ireland and the UK’s economy. The Irish craft sector has close relationships with the tourism industry, which provides Ireland with an important source of revenue, evidenced in the chart above. Foreign tourists account for almost 20% of the craft purchases, which means this is an influential consumer who cannot be ignored. A survey conducted by Shoparazzi, a member’s only shopping club, revealed that ‘over £3 billion is spent in the UK each year on fashion by tourists, making shopping tourism a significant contributor to the economy. As many as 1 million people per annum may be visiting Britain each year just to shop.’ (http://www.fashionunited.co.uk/) The following consumer profiles give a snapshot into the lives of consumers identified.

Consumer A Kristine Kilty 31 Interior designer ÂŁ 76,000 per annum ~ No children ~ High disposable income. ~ Needs to look professional at work but also show her personal creative style. ~ Loves visiting vintage markets. ~ Kristine has a great understanding of design and quality. ~ She loves taking her time and enjoying the finer things in life. ~ Spends a lot of money on herself, likes to look and feel good. ~ Works hard for her money and lives a hectic lifestyle of work, travel and socializing. ~ Canâ&#x20AC;&#x2122;t live without her iPhone.

Candle £36 - The White Company

Bicycle £625 - Pashley

Sunglasses £123 - RayBan

Vintage Bag £55 - Market

Hat £320 - Eugina Kim

Vintage Coat £125 - Annies Nail Polish £21 - Chanel

Vintage Cuff £39 - Market Lace-up Boots £395 - Marc Jacobs

Consumer B Norma Black 37 London Sales and Marketing Executive £120,000 per annum ~ Married, no children ~ Fits into the ‘Wealthy Achievers’ category in the Acorn structure. ~ Divides her time between her homes in London and Paris. ~ Hires a car, while travelling,. ~ Although Norma has a serious high powered job she enjoys having an eccentric dress sense. ~ She shops locally and appreciates good quality products, ranging from the food she eats to the cloths she wears. ~ She enjoys trips to the theatre and opera. ~ Takes care of her appearance and health. Feeling young and stylish yet likes to be comfortable. 18

Leather Journal £45 - Aspiral

Snake Ring £180 - Roberto Cavalli

Fragrance £72 - Jo Malone

Laptop case £189 - Estime

Trench Coat £2100 - Donna Karan

Snakeskin bag £2735 - Bottega Veneta Ankle Boots £315 - A.P.C.

iPhone £501.99 - Apple

Consumer C Jennivi Jordan 24 China Freelance Stylist £26,000 per annum ~ Single ~ Private means, fund her expensive taste. ~ Parents are typical A1 ‘Wealthy Achievers.’ ~ Jennivi mainly buys designer clothes and accessories when in Britain as prices are lower than in China. ~ Loves all things vintage but invests in key pieces every season from various luxury designers including Miu Miu and Dior. ~ She is not brand loyal and open to buying into new designers creations. ~ She loves to read online blogs ~ Keeps up to date with news and events via her iPad which she takes everywhere. ~ Keen interest in travelling but will always stay somewhere high end. 20

Scarf £165 - Alexander McQueen

iPad £499 - Apple

Ballet pumps £225 - Chanel

Oversized Alexa Bag £925 - Mulberry

Camera £1269.95 - Canon

Fashion Notebook £9.95 - Christian Lacroix

iPhone Case £52 - Juicy Couture Lace dress £445 - Anna Sui

The

Competition The following pages look at the top six rivals. By examining their marketing mix, hosting interviews with sales assistants and conducting individual shop reports, it is clear there is a gap in the luxury market for hand-crafted, limited edition Irish designs. Additional information regarding the primary and secondary competitors can be found in Appendix 3.

Contesse Ballerina £335

Bally offers an extensive range of beautifully crafted shoes. ‘People come to Bally because of their reputation

Marcelle Moccasin £250

for excellent quality, craftsmanship and timeless designs.’ (Har Lee, C, Appendix 2, 42) The original range, which rarely changes, consists of low pumps, ballerina flats classic boots and brogues – among which are the companies best sellers. A secondary collection was launched this season to celebrate 160 years in business. This line is much more fashion forward, aimed at a younger customer. Bally is considered a competitor for Catherine McAleer because

Deodara Wedge £450

of their craft heritage and strong customer base.

Primary Consumer Age: 35-65 Nationality: British/European What they buy: Low pumps, ballet flats, brogues. Overview: The Bally wearer leads a hectic lifestyle, usually in full time employment and a full time mother. She needs something comfortable, stylish, well made and

Mame Ankle Boot £895

aesthetically pleasing. Secondary Consumer Age: 20-28 Nationality: Chinese/Asian What they buy: Very high, trend driven platform heels. Overview: ‘Generally a graduate student with private means’ (shop assistant: Bally, New Bond Street) She wants something exquisitely beautiful yet fashionable to match her designer outfit.

Doges Boot £695

Celebrity Followers

Demi Moore

Kristen Stewart

Online Presence ~ E-commerce. ~

Easy to use and purchase products.

Mature layout, aimed at older consumer.

Plain background.

Neutral colours associated with craft.

Outline of unique heritage.

Time-line of promotional images.

Films promoting traditional craft methods.

Snakeskin Derby shoe £625

Although originally started as a clothing brand, Lanvin

Ankle strap stiletto £605

has expanded its product range into shoes, bags and other accessories, which have been just as successful. While Lanvin offers a limited selection of shoes compared with other competitors, the range is refined and perfectly selected for the consumer. Every season, ‘the inspiration is always to create beautiful, intelligent products which fits the brand.’ (Carson, A, Appendix 2, 40) Lanvin is a primary competitor for CMA in terms of the design aesthetics and similar target consumer.

Wedge Pump £850

Primary Customer Age: 35-55 Nationality: Italian/European What they buy: High pumps, medium height boots, ballet pumps. Overview: An extremely modern and stylish mature woman with a flare for fashion. Tastes are understated with a

Patent leather Stiletto £625

touch of luxury. Secondary Customer Age: 25-35 Nationality: European What they buy: 4” high platform heels, mid heel boots for winter and casual dress. Overview: Often a regent graduate who is now in full time employment, tastes are mature, yet their style has a fun

Leather chunky heel boot

side.

£980

Celebrity Followers

Diane Kruger

Kirsten Dunst

Online Presence ~ E-commerce. ~ Creative and interesting interactive website. ~ Extensive company history. ~ Design inspiration in the background. ~ Sketches by the designers. ~ Quotes from designers and directors allow the viewer to feel closer to the brand. â&#x20AC;&#x192;

Harper Suede pumps £505

Rupert Sanderson mixes traditional Italian craftsmanship with modern design. The use of luxurious textures and neutral colours makes his collection instantly recognizable. ‘The skills and “hand,” built up over generations in [his] factory high in the Italian Apennine hills, ensures that techniques are nurtured and handed down.’ (www. rupertsanderson.com/craft) With similar styles, influences of craft and a comparable

Hanover Leather boot £600

price range. CMAs striking features and intricate design details will provide serious competition.

Primary Consumer Age: 35-45 Nationality: European What they buy: 2-4 inch booties, evening shoes, flat pumps.

Devon hair calf loafers

Overview: This customers job is quite serious, so calls for

£625

footwear that is practical yet stylish, something she will be taken seriously in. Her fun side comes out at the weekend, opting to wear leopard print moccasins for casual wear and high-heeled flirtatious heels for evening. Secondary Consumer Age: 25-35 Nationality: European

Cecil blitz Suede peep toe shoes

What they buy: High fashion shoes.

£435

Overview: Always on trend and want to buy into a seasonal piece but something which is understated and can carry her from season to season without looking out of date.

Asiago Suede platform heels £620

Celebrity Followers

Kylie Minogue

Cheryl Cole

Online Presence ~ E-commerce ~ Simple website design: modern and sleek ~ Easy navigation ~ Celebrity wearers acknowledged ~ Background of company craft ~ Designer Biography ~ Press pages ~ Linked Blog

Monogrammed ballet shoe £305

There are a wide variety of shoes at Fendi, which appeal

Leather peep toe

to a range of customers of all ages and from all around

£599

the world. ‘Currently, Fendi has over 160 boutiques in some 25 countries around the world.’ (www.fendi.com) It is clear that competition from this highly branded company will be intense. Competition between consumers to get hold of their latest shoe designs is even fierce as some lines sell out quickly. Style wise, there are similarities to CMA, such as the vintage feel to the high fashion designs and a much more sexy vibe to the classic ‘F’ line.

Cameleon £704

Primary Customer Age: 38 - 45 Nationality: Arabian/Asian What they buy: Heavily branded items, driving shoes and evening platform heels 4”+ Overview: A lady with a lavish lifestyle. She has a need to have heavily branded items to show off her wealth.

Ankle boot £789

Secondary Customer Age: 20 - 30 Nationality: Italian/European What they buy: mid heel, fashion forward quirky shoes. Overview: A younger generation Fendi follower who has to have the seasons must have trends. Quirky and unique she stands out in a crowd and never goes unnoticed. Leather Boot £669

Celebrity Followers

Kelly Rowland

Eva Longoria

Online Presence ~ ~ ~ ~ ~ ~

No e-commerce Unique colour scheme sets Fendi apart from competitors A wealth of information included Links to other websites in association Focused on news, events and other projects Uses â&#x20AC;&#x2DC;Flashâ&#x20AC;&#x2122; which is slow to use but the viewer time to reflect and anticipate.

roberto cavalli

Patent Leather sandals £415

‘The king of party glamour’ says Net-a-porter. A designer who’s style and inspiration remains constant throughout the years, and is synonymous with glam, rock, and animal

Ballet Flats £270

prints. ‘He has also launched a nightclub, a fitting business venture for the man who designs clothes club girls love to wear..’ (www.nymag.com/fashion) This emphasises he is successfully selling a lifestyle. His shoes complement the clothing design perfectly and make any outfit look glamorous. Roberto Cavalli and CMA are similar in that their customer is more mature but still oozes sexiness and sophistication, displaying this through her choice of footwear and clothing.

Paillette shoes £504

Primary Consumer Age: 35-65 Nationality: Italian/ European What they buy: High heeled boots, evening shoes, high and flat sandals. Overview: A flamboyant dresser, oozing sexiness and personality she cares not for what people think of her.

Patent leather cage sandals £455

Secondary Consumer Age: 20-35 Nationality: European What they buy: High heeled sandals, boots and pumps Overview: Confident, care-free and focused on living a glamorous lifestyle.

Leather thigh boots £845

CELEBRITY FOLLOWERS

Halle Berry

Taylor Swift

Online Presence ~ E-commerce ~ Black red and gold layout ~ Not easily navigated around ~ No website map ~ Red carpet glamour pictures ~ Links to other ventures, including clubs and alcoholic drinks ~ Promotes a glamorous lifestyle

BOTTEGA VENETA

Bottega Veneta proves a prominent competitor, focused

Expresso Calf Suede Shoe £445

Silk Bejewelled Ballerina £425

on craftsmanship and luxury products and their loyal customer base. ‘Renowned for its signature intricate woven leather, Italian fashion house Bottega Veneta’s timeless style has earned it a loyal and discerning following since its launch in 1966.’ (www.net-a-porter.com) The products feel how they look – comfortable, easy to wear, soft to the touch. CMA will follow these same qualities but offer a more trend and fashion forward range of footwear.

Chene Python Sandal £670

Primary Consumer Age: 30-45 Nationality: Arab/Asian What they buy: High heels Overview: Attracted to the comfort and craftsmanship of the products. The consumer wishes to be comfortable and feel free to move around.

Antique Velvet Wedge Sandal £490

Secondary Consumer Age: 16-30 Nationality: Italian/European What they buy: Flat and mid-heels. Overview: A successful woman, living a luxurious lifestyle who needs something which can carry her from work life to home life.

Nero Lace Vernice Ankle Boot £580

Celebrity Followers

Gemma Arterton

GWYNETH PALTROW

Online Presence ~ E-commerce ~ Extensive range of products available to pur chase online ~ Easy navigation ~ Neutral colours ~ Sombre appearance ~ Lacks excitement and personality

Nina

Divito Nina Divito was a successful Irish footwear designer, but due to illness is no longer trading. Although not seen as a competitor, her work and business still remain an inspiration and much guidance can be taken from the companyâ&#x20AC;&#x2122;s successful history. The brand was positioned in the luxury market appealing to middle aged and younger women, similar to that of CMA. Divitoâ&#x20AC;&#x2122;s 2010 collection is still sold in Brown Thomas in Ireland and sits among competitors such as Lanvin and Nicholas Kirkwood. She used her artistic impressions of shoes to illustrate and promote her designs, gaining much press, her work was well recognized. Having strong links with Ireland will help promote and foster the CMA brand and in the future aims to be as successful as Nina Divito.

It is apparent that CMA is entering an extremely crowded market place, but the brand holds a rare unique selling point, which will set it apart from the competition. There are no other Irish footwear design companies in the luxury market. Consumers are aware that Irish craftsmanship is of an impeccable standard and offering a footwear range, which combines this with quality, style and comfort will fulfil a gap in the market. Many of the brandâ&#x20AC;&#x2122;s competitors are companies that started as clothing brands and footwear was introduced to complement this. CMA can offer the consumer an intimate selection of shoes designed to be versatile and stylish. The brand will not follow trends religiously but adapt and develop them to create new trends which suit the consumer needs.

Market

Positioning High Price

Luxury Brands: Price and consumer age

Age 20+

Age -60

low Price High Price

Heritage/Craftsmanship brands: Price and Style

Consevative Fashion

Design Lead

Low Price

Marco

Enviroment Political It is extremely important for a new business

In a climate of economic instability, it will be

to look at the wider ecosystem and examine

extremely difficult for any company to get a

the Macro environment through the use of

loan passed, but there is hope for Catherine

Pestle Analysis. The findings can help the

McAleer. The Irish Government is committed

company not only identify opportunities but

to the further development of Ireland as

create contingency plans and in turn aid the

a global innovation hub. ‘Innovation Fund

strategic business plan.

Ireland has been created to increase the availability of risk capital for early-stage and high-growth companies. The provision of ‘smart capital’ to support companies, is crucial to the growth of Ireland’s economy.’ (Enterprizeireland.com) The Report of the Innovation Taskforce outlines a vision for ‘sustainable economic renewal, by building on the strengths of the enterprise economy and utilizing the innovation or “ideas” component of this economy present in the knowledge, skills and creativity of people. It outlines the need to support enterprises and to encourage an education system, which fosters independent thinking, creativity and innovation.’ The government clearly sees the potential in this sector and in 2010, €125 million was provided to Enterprise Ireland by the government, giving CMA an important opportunity to obtain investors in the company.

Economical The present economic climate will affect

Research undertaken and published on Mintel

CMA in a number of ways. The Euro is in

shows the purchase percentage of high-end

turmoil and there is much uncertainty in the

luxury footwear products which are still very

current market. CMA’s target consumers

much in demand. The details in figure 6 show

have a high income bracket and are generally

that customers are still buying, and spending

unaffected by the situation. A report focusing

money on luxury footwear and that there is a

on Footwear Retailing (Mintel, (2010) points

potential market for CMA.

out the ‘lingering economic hangover’, which

CMA aims to approach a number of

has wavered customers spending patterns in

organizations, such as Enterprise Ireland

the UK but an opposing report identifies the

and Craft Council of Ireland, each existing

changing customer attitudes to luxury goods.

specifically to aid economic growth. The

‘While the economy has had an impact on

Craft Council of Ireland released a strategic

luxury sales, it is also apparent that many

plan in 2011 states ‘it is ultimately about

consumers still have an affinity for luxury

driving overall economic growth, creating

goods and thus are seeking them out in large

employment and contributing to the ongoing

numbers.’ (Mintel, Customer Attitudes to

development of our county at a national and

Luxury Goods, 2011)

international level.’

Recent purchases, by2011 gender Consumer Luxury Attitudes Toward Luxury Goods - March - Recent Luxury Purchases Recent luxury purchases, by gender, November-December 2010 All

Female

Jewelry and watches

Clothing (other than outerwear)

Footwear

Beauty products (i.e., skin care/cosmetics/fragrances, etc.)

Handbags/purses

Home appliances

Outerwear

Furniture

Art

Tools

High-end home gym equipment

Other

Fig. Source:6Mintel

Male

Electronics

Social and Cultural

Tecnological

Consumers are becoming more aware of

The technological advances of the last

where their products are coming from and

decade have had a huge impact on footwear

how they have been manufactured. The

production, from initial research through to

‘heritage’ trend, has evolved not only in

product delivery.

fashion design but also in other industries.

~ Use of online research resources gives

CMA holds a strong brand ethos of

the designer access to invaluable market

maintaining Ireland’s traditional crafts. The

information. Many small companies such

estimated 1377 students studying craft

as CMA do not have time and financial

related courses is Ireland (illustrated in figure

resources to spend on extensive primary

2, page 8) will be competing for a limited

research.

amount of jobs. This will supply a suitably

~ Use of CAD throughout the design

qualified workforce to recruit from. Although

process, is time saving. Design templates can

CMA will be a small Sole Trader, one of the

be created and reproduced quickly.

company’s long-term aims is to create jobs

~ 3D rapid prototyping technology

and promote Irish craft.

has become widely available. This will enable CMA to push design and creativity boundaries, and create products which cannot be produced using traditional methods. ~ New transportable technology such as the iPad, give consumers 24 hours a day online accessibility. ~ Marketing methods have become cheaper for businesses, as the use of Twitter, Facebook and online blogs have become a global phenomenon. A network of people can be created which companies can reach within seconds. ‘Apps’ are becoming more and more recognizable to companies as an important part of promotion.

Legal

Environmental

As a sole trader, Catherine McAleer has the

Concerns for the environment have been a

responsibility to ensure all business practices

long-standing issue for design companies.

are legal. One of the main laws which must

It is extremely difficult to be 100%

be abided by when selling footwear is the

environmentally friendly but being aware

â&#x20AC;&#x2DC;Sale of Goods Act 1979.â&#x20AC;&#x2122; It outlines that all

of the issue does help businesses become

goods must be as described, or of satisfactory

more conscious of their carbon footprint. As

quality and fit for purpose. Quality assurance

CMA is a small company, products will not

checks will be made at random on CMA

be mass produced and many elements of the

shoes by management at the factory.

shoes will be hand made so therefore sales projection must be well considered so there

Recently, the Consumer Product Safety

is little waste of materials. This should help

Improvement Act of 2008 was brought in.

lessen affects environmentally and financially.

The legalization reduces the amount of lead

All CMA products and components will

allowed in surface coatings. Although an

be sourced locally and so in turn will not

American law, it is important to be recognised

have the same carbon omission affect as

by CMA for future growth and expansion

companies who import products from

into the US market.

countries further afield.

Micro

Environment Strengths

Weaknesses

Strong brand identity

Crowded luxury market space

The collection accommodates for a variety of

Little room for small start up companies

customers offering a wide range of prices.

Hard to get established

Versatile and wearable

There are no leather tanneries in Ireland

Product quality and longevity

British fashion industry are open to new

Due to the recession, many people may

designers.

be put off spending money on material

A lot of help and support offered by the Craft

items such as shoes.

Council of Ireland ~

so they must be sourced from elsewhere

People are more inclined to spend on

Start up costs are high and an investor is needed.

foot wear which is long lasting, not trend lead and classical pieces. ~

Owner has experience working for luxury companies.

No other luxury Irish footwear design companies.

Opportunity

Threats

Opportunity to promote Irish heritage, showing the skills and craftsmanship of companies in Ireland.

not lend itself well to luxury spending ~

Opportunities to receive press from craft promotion happening around Ireland which

~ ~

Cheap marketing tools available such as

Exchange rates are fluxuating and the euro is weak.

will create hype around CMA ~

The current economic climate does

Not all materials will be Irish made and may damage the companies concept.

A lot of strong competitors in the

Facebook, Twitter and blogs: good for start

markets with more money to spend

up companies with limited budget.

on marketing their brands.

To create a diffusion line with lower prices,

There have been nine notable

which will open up the brand to new markets.

closures of HE Craft courses in the

The Irish government are planning to inject

last few years â&#x20AC;&#x201C; craft is quickly dying out.

money into Irelandâ&#x20AC;&#x2122;s Craft sector to help

Core craft skills are dying out quickly.

promote economic growth.

Range

Plan

The first collection launched by CMA will consist of a small, refined range of shoes and boots with a variety of styles to encourage the consumer to buy more than one pair. The price range varies with the amount of craftsmanship included, for example; goldwork is expensive and time consuming to produce and this will reflect in the retail price. Competitor and consumer research highlights the need for stylish comfortable boots. The factory which will be producing the shoes, Tutty’s, specialize in othotics and a cushioned insock will be developed to be built into each design. Also included in the range is a limited edition pair of ankle boots. These will show of various craft forms such as goldwork embroidery and metal work. The last was chosen because of its extreme, eye-catching height, this boot will be the ‘showpiece’ of the collection.

Last

Ref.

Heel height

Sizing

Ref. 927

0”

36-41

Ref. 415

Ref. 1215

Ref. 1278

1.5”

4”

5”

36-41

Description

Colour Ways

Retail Price

~ Ballet flat

£305

~ Moccasin

£295

~ Brogue

£425

~ Bootie

£550

~ Tall boot

£695

~ Court shoe

£395

~ Bootie

£705

~ Knee high boot

£905

~ Ankle boot

£1050

Production Item

Supplier

Last

Springline Ltd. Pondwood Close Moulton Park Industrial Estate Northampton NN3 6RT

Leather

A & A Crack & Sons 16 Pennard Close Brackmills Industrial Estate Northampton NN4 7BE

Metalwork

J. L Ornamental 87, Old Ballynahinch Rd, Lisburn, County Antrim BT27 6TH

Woodwork

McCalls Woodworking Ltd. Rathvilly, Co. Carlow, Ireland

Embroidery

Marie Woods 53 Edendoit Road Pomeroy, Co. Tyrone, BT70 2RG

Rapid Prototyping

Laser Prototypes Europe Ltd. Unit 2a Balmoral Link Belfast, BT12 6QB

Packaging

The Benson-Box Co. Ireland Limited Cardboard Box Manufacturer Killaloe Co. Clare

All other footwear making supplies.

Tutty’s Hand-Made Shoes, Riverhouse Millbrook, Naas, Co. Kildare, Ireland 58

Design brief

Inspirational research

Material and hardware sourcing via Trade Shows

Trend Research

Merchandising plan of action

Initial designs

Designs sent to factory

Product Development

Prototypes produced and critiques

Samples developed and amended

Lookbooks and linesheets created

Final designs confirmed

Sales appointments and Trade Shows

Press release and PR samples released

Stock sent straight to stockists

Orders processed and sent to factory

Sold to consumers

Supply

Chain The initial samples for Catherine McAleer will be made in London using suppliers in Ireland were possible. Other materials will be sourced locally in London. Sample heels will be cast using the lost wax casting process, whereas for production they will be manufactured using 3D rapid prototyping. All the components for production will be shipped to and manufactured at Tutty’s Hand-Made Shoes. Tutty’s is located in Kildare, Ireland. The town itself is at the hub of the craft industry in Ireland, fostering its growth and commercial strength. There are many skilled craftspeople in the area and CMA can avail of their services so supplies are sourced locally. Tutty’s, was unable to provide the cost of making CMA footwear, an estimated cost for materials and production for a high heel ankle boot below is calculated at 1/3 of the total retail price of each shoe. An estimated wholesale price was worked out by adding 20% to the cost price.

Embroidery

Leather

Metalwork Packaging

Via Company Website

Factory

Stockists

Customer

Cost of Materials

£85

Shipping

£3

Factory Costs

£100

Total + V.A.T

£225.60

Retail Profit

£705 £479.40

Wholesale Profit

£270.72 £45.12

All approximate costings are suject to V.A.T.

Retail

Positioning After examining the product placement of the main competitors, and consumer feedback on their shopping habits, the ideal stockists for the CMA brand can be observed below. They have been specifically chosen due to their exceptional standards and world-renowned status. The CMA brand can gain recognition through carful product placement, many of the brands competitors are located here and consumers already shop in these stores. Individual store analysis can be found in Appendix 5. The products will initially be stocked in Ireland and Britain and as the business develops these will spread further afield to countries such as Paris, New York and Dubai. These would be obtained by showing the collection at various trade shows such as Pure London, Micam and Premier Classe. (details of which can be found in Appendix 6)

BROWN THOMAS

SELFRIDGES

Online

Presence Catherine McAleer plans to have a strong online presence. As a start up company there are limited financial means to have a physical shop, so therefore CMA products will be available to purchase via the brand website. Sales via the website will be the most profitable (see page 60) and much emphasis will be placed on creating an e-shop with easy navigation which is convenient for customers. It is important for CMA to be sold on other websites such as net-a-porter.com. This will capture another audience and increase consumer awareness, which could potentially direct them to the company website will hold the full collection.

Publicity and

Marketing

Florence Welch

Diane Kruger

Rosin Murphy

Dita Von Teese

CONCLUSION There will always be a place in the world for high quality luxury products. The creation of refined, elegant products will require a degree of effort and ingenuity. A strong unique selling point coupled with master craftsmanship, will pave the way for inventiveness and enterprise. Research identifying a strong customer base will help to not only establish a market but also promote and showcase the best of Irish craftsmanship and technological knowhow in this field and in turn foster growth in the Irish economy. Skill and expertise alone will not drive the product forward; design flair and on trend innovation are important to differentiate the brand from competitors and help create products that are both unique and exceptional.