FSH 632 Trend Analysis and Product Development Instructor: Kari Lantin #03067740 Tian Huang( Meggie ) #03255601 Yun- Hsin Yang ( Fiona Yang) #03425765 Yu- Sheng Lin ( Jungle )
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Table of Contest Customer Profile…….……………………1 Trend Board………………………………..3 Logo…………………………………………4 Products Picture………………………….5 Economic of the Unite Sates……………7 Manufacturing Venue Report……………...8 Current Employment……………………..9 Special Research................................11 Interest and Inflation Rates……………..13 Industry Trends…………………………...14 Lifestyle Trend…………………………….20 Fashion Trend……………………………..22 Branding Strategies………………………24 Promotion…………………………………..28 Sales Plan…………………………………..32 Reference……………………………………34 Specification Sheet & Cost Sheet……
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CUSTOMER PROFILE
Demographics and Psychographics For our company, our target market is from 18 to 35 years old, male and female. Many of them live in the United States and have regular 9-5 jods. They will spend the weekend going to the beach to relax. We also focus mainly on Americans because they like to spend their free time to going to the beach to play in the water and our products can easily be used when they go to beach. Their education level is higher than high school up. Our customers, likes to travel, play in the water and they do not like to bring too many things when they go to beach. So when they go to play water and they do not want to leave any important things on the sandy beach so they will use our product. Our customers like to combine relaxation and functionality in their free time. When they go to beaches or the outskirts of a city, they like to drive to there but they do not like to bring too many things. Our product is not too expensive so everyone can have more than one. We will produce more than one color of the products. Our customers, also value fashion so they want to coordinate their outfit and they will buy different types or different color flip-
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flops to coordinate with their outfit. Now, male also value to coordinate and they can wear our products when they go to the beach. Our customers also value fashion so they will like our products because we will focus on the fashion trends.
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Trend Board
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Logo
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Products Picture
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Products Picture
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Economic of the Unite Sates
Our company (FLY) find that Unemployment rate steadily grow in the Unite States, but people still spend much time on entertainment or going to beach in the vocation. Therefore, we consider our costumers income, so our flip flops’ price is middle price. In this way, our customers have enough money to pay the products.
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Manufacturing Venue Report In our company (FLY), we choose PVC and EVA to make flip flops. Materials
Characteristics
PVC
It is the cheapest material.
(Polyvinylchloride)
It usually uses industrial products. It has flame-Resistant finishes.
EVA (Ethylene Vinyl Copolymer Resin)
Synthetic rubber has artificial elastomeric and polymeric. Acetate
Synthetic rubber has stretchy, flexible, luster, extremely waterproof, and thermoplasticity. It is for safety and comfort, and uses it to produce hoses, belts, gaskets, tires, molding, and thousands of other products.
We consider main reason to setting factories in the Indonesia. Indonesia is the largest economy in Southeast Asia. They have high and rapid population and their works usually is agriculture (38.3%) and industry (12.8%). They have largest employers for many centuries in the Indonesia, so if our company (FLY) set our factories, we don’t spend much money in the laborers.
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CURRENT EMPLOYMENT According to tradingeconomics.com, the employment rate in United States was at 89.3 percent in April of 2011. The employment rate has raise by 1.8 percentage point since December 2010. On the other hand, based on the web side, there are more and more professional jobs in United States. Most of jobs are also focus on business services, leisure and hospitality. Compensation of Employees: Wages & Salary Accruals
EDUCARION LEVELS and UNEMPLOYMENT
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According to the employment status of the civilian population 25 years and over by education, especially in April of 2011, in the United States, American with low than high school diploma, the unemployment rate was 14.77 percent, for people with only a high school diploma, the unemployment rate was 10.01 percent, for people with college or associate degree, the unemployment rate was 8.2 percent, and for people with bachelors’ degree or master, the unemployment rate was 3.78 percent. For high unemployment and weak labor market, so there are some old people will go back to school again after they work. However, they just want to get the degree quickly and they can get more money from their work. So they will choose the school and get the degree as soon as possible. United States Unemployment Rate
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LA Special research Our company (FLY) researches some information in LA. Because of surrounding, people usually wear casual apparels and shoes to outside whatever men or women. LA weather is very warm and nice, so people can enjoy the sunshine everyday, and LA has many resorts like beach. People spend much time to the beach and wear “freestyle� to relax and enjoy it.
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Therefore, above of reasons, our company thinks we have good marketing in LA, so we do special research here.
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INTEREST and INFLATION RATES According to moneyrate.com, this Internet point out a biggest goal of keeping economic to grow up. In the situation, higher inflation and lower unemployment are the two main points could cause the Federal Reserve Officials rise rate sooner. However, we can look at the high unemployment in the United States. The economic will still maintain a low interest rate until 2012.
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INDUSTRY TRENDS Characteristics of Products or Services in the Industry Flip-flops in our lives are a very important thing because they can be accessories. In their free time, most people like to take a trip. It is very casual and relaxed when you wear the flip- flops. However, the normal flip- flops can only be changed in shape of them or color of them. So, we decided to put one useful and convenient function for our products. We will put a zipper in the middle of the lip-flops so everyone can put some things in the middle of. The price of the product is mid level. So, from students to working females and males are our target customers. For our company, we will sell our products in physical stores in many cities all over the world. We also will put our stores in some places near the beach or near resorts or in the airport. Our target customers do not like to bring too many things when they go out. In the United States, flip- flops are very popular recently so we think we can do very well in this market. For our products, we also chose good quality materials to make them, such as NR and EVA and we also chose a plastic zipper because they can be water resistant so customers can keep keys, room cards and money still dry when they put them in the middle of the shoe.
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Sales Trends in the Industry In the United States, there are many brands of flip- flops. However, the flip- flops market experienced a rise in sales in 2010 to 2011. From this point, we can know that more and more people like to wear flip- flops to everywhere. In their free time, most people like to wear casual style to take a trip in United States. So, we think it is a very big and good market for our company. According to the marketresearch.com, flip- flops sales account for approximately 58 percent of accessories sales for 2010 and the United States manufactures’ sales of flip- flops rose 2.8percent in all. In 2011, we hope flipflops can show good improvement. Now, many brands like to sell their flipflops on the web. So we are also going to sale our products on the web. More and more customers like to purchase clothes or some accessories online. There are many different brands of flip- flops but we can use our special function to compete with them. Technological Trends in the Industry Flip- flops are very important things for our lives. We want to provide very comfortable and functionality flip- flops to our customers. We will do some different change for the flip- flops. It will have a new feeling with the traditional flip- flops so it will be a great market for us.
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A. The shape of flip- flops & Different function flip- flops For the most of brands of flip- flops, there are many different functions for it. For example: comfortable, safe and beautiful. Some products will let you feel comfortable when you wear the flip- flop because it will very match with your feet. Many of people like to wear the flip- flops to go to beaches so safe is also a very important point for customers. Flip- flops are also accessories so the beautiful is also an important point for the products. However, there are no have any companies or brands to design the products like our products. For male, they do not like to change more of slip- slops’ shape. So most of brands that like to use the simple shape for their products. But we will change a little shape for our products. In the United States, the most of male like to try different type flip- flops so we will design the different kind of shape of flip- flops for men. However, for female, they like to change more for their accessory so they also like to change some point for their flip- flops. For
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example, now, some of brands like to let flip- flops become high heel flip- flops so many of customers like to wear flip- flops instead.
B. Color of flip- flops For male, they like to wear the dark color or plain color flip- flops even though the season is summer, but we want to choose some light color for our products because our season trend is summer. For female, they like to wear different kind of color for their flip- flops so we also will design different kind colors for the women’s flip- flops.
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Trade Publications in the Industry Our company will choose some Publication to promote our brand. It is very important because our brand is a new brand. We want to everyone can know our brand from different way, such as accessories magazine, WGSN web and Facebook. A. ACCESSORIES MAGAZINE The magazine is founded in 1908. It provides much information to the audience. In the magazine, they talk about much information about the trends for the next season. It also shows the retailers and the manufactures. It provides much up-to-date information about the accessories. For example: jewelry, belts, handbags, scarves, hosiery, small leather goods, flip- flops. So we also can put our products information in the accessories magazine.
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B. WGSN The web is a trend- analysis and research service. It provides much information about trend for next season. For example, color trend, pattern trend, style of products and design style. It also provides many famous people’s fashion clothes. Thus, we can put our products information on this web. C. FACEBOOK We will put our new information on the Facebook and our customers can know our new products or news. It is a very popular wed and a fashion google engine so we can put everyone information that we want to show on our facebook. If our customers have any problems want to ask us and they can post the question on our fackbook.
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Lifestyle Trend Most of people like to arrange their free time after they work for five days or a week. Now, in the United States, most of work male or female likes to enjoy their free time. If they have a long vacation, they will go to other countries. On the airplane, they also like to wear flip- flops. When they get destination. Usually, they like to change the flip- flops instead. Most of people value the quality of their trip so they hope it is very relax and comfortable for their vacation. Some of Sea Islands are good choose for the American. When they go to beach. Our customers focus on men or women whom has career. They can spend just a little money to buy our products if they want to go to take a trip. They will feel very comfortable and convenient because they have to put too many things in their pocket and they can put the keys and money in the middle of our products. At the same time, it is also very safe because the important things is under your feet so you will do not worry about them. For our customers, they also value the fashion trend so we will let our products become a fashion accessory. Some of students also likes to go to somewhere to take a trip with their friends. They like to wear flip- flops to hang out with their friends because it is very causal. They always buy more than one flip- flops to be the accessories. The price of flip- flops is not expensive for students. We will design some
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fashion products for our customers if they are students because more and more students value the fashion.
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Fashion Trend Color Color is also a very important point for our products. Our main season trend is 2012 summer so we chose some light colors to be our color trend. For female, we will choose light colors and warm colors, such as light blue green and pink but most of male cannot accept the colors like them. On another way, we will choose dark colors or warm colors for male, such as black and light blue. Research from Google for 2012 Color trend:
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Pattern In 2012 summer, the animal pattern is very popular, such as leopard print and zebra print. We also hope we can print the animal pattern in the some of our flip-flops. Some of female like to do some change so we also want to produce some products could let them to choose or some of fashion people also can choose our products. Research from Google for 2012 pattern trend:
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Branding Strategies
Product description FLY is a store for popular flip- flops. Now, there are more and more people like to take a trip to somewhere in their free time. For our research, the most of people like to wear flip-flops when they go out in the vacation. We want to let our customers can enjoy their free time so we design a functional flip- flops. Actually, most of flip- flops just can change their colors or shape. However, we want to put a zip in the middle of flip-flops. Why we put a zip in the middle of them? We hope our customers can put their keys or room cards or money in the middle of shoes in their free time, shopping time or playing time. The function is the biggest advantage for our brand. We had not seen the products in the market. Our price range is from 25 to 30 and it is the middle level for everyone in anywhere. For our zip of products, we will choose plastic zip because it will not easy to rust. At the same time, it also can be a waterproof flip- flops when you put the something inside the flip-flops. We also choose some comfortable materials to compete our products, such as NR or EVA. In the upper of flip- flops, we will design the shape of it because we want to let the upper of flip- flops can fit our feet. We will also put
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the logo on our shoes and shopping bags because we hope let our customers can know our brand when they see our logo in anywhere.
Business Objectives The business objectives of FLY is to design a comfortable and functional flip- flops for everyone who likes to go to somewhere in their free time over the world. We hope our customers cannot be upset to bring too much things when they go to beaches to play water or go shopping in the night market. We also combine the fashion trends with our products. We hope our customers feel not only comfortable and convenient but also fashion.
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Pricing Strategy Prices
Characteristic
FLY 25~30
Comfortable Convenient Functional
Reef 30~60
More example Leather
Ipanema 35~60
Fashion Colorful Creative
Havaianas 22~40
Popular brand Skidproof
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For our brand, we are cheaper than other brands and we also have the biggest function for our products. Reef is also a big brand for flip- flops. However, the price is too high and the material is leather so you cannot wear it to go to beaches. Ipaneme is also a big brand of flip- flops but it just has girls’ flip-flops so if men want to buy the flip- flops and they cannot find anything over there. Havaianas is the most popular brand pf flip- flops. Actually, it does not have any big characteristic of products.
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Promotion Interactive Marketing Web sideThere are many people will use the Internet to watch news or use the Internet to find some information. They will set some web side to be the homepage, such as, yahoo or Google. We can put our advertisement on the homepage of web side. Someone can see our advertisement when they start to use the web side to research the information. We will put some very strong imagine for our advertisement because that can easy to catch the look of customers. So this is also a big part of our promotion way for the customers because there are many customers spend much for Internet. For example: we also can ask the web side to use the main words search for our company because people can easy to know our brand when they type the key words about our company. If you import some key words to research and you will see our homepage and you can understand our brand more and more. The words are shoes, comfortable, luxury, and fashion.
APP-
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There are more and more people will use their telephone to find some information. So we also provide the service for APP. So you can through APP to get our brand’s information and it is also a new way to promote our brand and they also can easy to understand our brand. It is a good way and easy way to promote our brand.
HomepageWe will do a very special and very clear homepage to introduce our products. When someone goes to our homepage, they can very easy to get much information and get main point of our brand. Homepage is a biggest promotion way for us to promote our products. Someone will research some information of our brand form our homepage. We will put some very detail information on our homepage because many people can see all of our products from it. Our target market is from 18 to 35 years old female and male so we will use the relax and summer of style for our homepage. Every brand has their homepage so we will design a very special homepage to attract some people of our target market women. It is the easiest way to promote our products for our brand. For example, our customers can easy to find the information from our homepage so we have to put all important information for our homepage.
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Print Advertising PosterWe will design some posters and then put them in the subway station or on the subway cars. When they go to work to take the bus or subway, they will see our advertisement. So they will try to understand the information of our products so we can easy to let many people to know our brand. We will design many different types of poster for each season or each year. We will use the strong imagine for our poster. Most of people will through the poster very quickly when they are on the walk to the work. Posters usually are showed for a long time in the subway station or some bus station. The poster is the cheapest promotion way for us to promote our products and we also can design many different kinds of poster in every product or every year or every season. For example, we also can put the high quality poster to promote our products in every season.
Direct Marketing CatalogueIn every month or in every season and we can do a catalogue to introduce our products. We can put in every product that we promote in this season or in t
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his month. Then we can put the catalogue in our store or sent it for our customers. In every season or every year, we will do the some catalogues to promote our products. Sometimes we also sent the catalogue for our customers. We will put many products in our catalogue and we will write some detail information for our products because it is very easy to understand our products. Or we will put our catalogue in the shopping bags when the customers who shop in our store. And then they can read it at their home and maybe they will come back our store again. It is a good way for us to promote our products. For example, we can do two kind of catalogue, the first one is small and the other one is big and we can send small one to our customers and the other one can put in our store to let someone to take it. We have two different sizes, one is big and the other is small. We will put the big one in the store and customers can take it from our store. We will send the small one for our customers who had been shop in our store and they have left their information for us and we will send the small catalogue for them in every season that we have some new produce to be produce.
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Sales Plan Mission------- With us, you are walking on the sky Goal-------To provide people the most safe and stylist flip- flops in the world. You can wear to everywhere and do not bring too many things on your hand. Objective------- To let 10% of our target audiences in the United States know about our brand ------- To recover our costs within 3years Strategy------- To provide perfect store experience to gain customers relaxed feeling. Sales Strategy We have our own store in the United States. The main purpose of our brand is providing good flip- flops for our customers in their vacation. We will use some special window display to show our products. We will put our new products in our store window. Our customers can see our new products
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quickly. In the some special holiday, we will have some special way to sell our products, such as discount for our products or give our customers some gifts.
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Reference 1.http://www.google.com/publicdata?ds=usunemployment#ctype=l&stra il=false&nselm=h&met_y=unemployment_rate&scale_y=lin&ind_y=false &rdim=state&ifdim=state&tdim=true&hl=en&dl=en 2. http://moneyrate.com/ 3. http://tradingeconomics.com/united-states/indicators 4.http://en.wikipedia.org/wiki/Los_Angeles#Climate 5.http://www.wildnatureimages.com/Santa_Monica_Pier_Photos.htm 6.http://www.wildnatureimages.com/Venice_Beach_Photos.htm
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