Product Development

Page 1


CREATOR Morgan Sheryl Davis

Fashion Marketing Major morgansheryldavis@gmail.com


CONTENTS OUR PHILOSOPHY MISSION STATEMENT PRODUCT CATEGORY PRODUCT ASSORTMENT INDUSTRY AND TREND RESEARCH OUR PRODUCT DESIGN INSPIRATION TARGET MARKET DEMOGRAPHIC RESEARCH PSYCHOGRAPHIC RESEARCH SALES VENUE PROMOTION CORPORATE MEETING OUR COMPETITION SWOT SPEC SHEET COST SHEET

03 04 05 06 07-08 10 11 12-15 16 17 18 19 20-21 22-24 25 26 27-29


OUR PHILOSOPHY Childhood is a crucial time in every young girl’s life. Childhood is a time to have fun and be creative. It’s a time to create your personality and find who you are. Glam Gloss sets out to help you express your personality through statement jewelry that even mom will be jealous of.


MISSION STATEMENT

“Empowering the fashionistas of tomorrow by providing them with trendy and wearable eauty products of today”


PRODUCT CATEGORY Children'sJewelry

-Children’s wear is a rapidly growing industry -Millenials are starting to have kids and they are spending more and more on their children than previous generation --The global children’s wear mark is estimated to hit a value of US $173.6 billion by 2017 -$71.3 billion in US sales alone in 2013 -Sales are expected to grow 6% by the end of 2014 -The global jewelry market is valued at $275.4 billion


PRODUCT ASSORTMENT -Initially our company will focus on statement necklaces -Once established, our company will create a product assortment including: -Long Necklaces -Bracelets -Watches -Rings -All products will incorporate lip gloss within the product


INDUSTRY RESEARCH Children's Wear

-There is begining to be a demand for current trends and adult wear in children’s wear -These days children are the new accessory, as once-snooty brands line up to please conservative-minded millennials while they use tiny garments to strengthen their brand power in regions such as Asia-Pacific -Households with an income under $10,000 spend an average of $24.67 on boys’ clothes and $49.75 on girls’ clothes, while households that earn $70,000 or more spend an average of $167.04 on boys’ clothes and $216.57 on girls’ clothes -The average family spends $107.28 on children’s clothing -- $123.79 for each girl, $90.77 for each boy


TREND RESEARCH Customisable Designs for Children

-Designs that can be customised give the children a sense of ownership -By designing products that can be easily adapted and altered, the lifespan of that product is increased. This is particularly relevant to the kids market and appeals to parents who hold the buying power -Interactive designs are playful by nature -Designers are taking inspiration from toys and how children interact with them -Designs are influenced by childlike activities: colouring, sticking, tearing, drawing, collecting, piecing together and building -A modern approach is taken by using traditional finishes in unexpected ways -Glam Gloss will be taking full advantage of this trend by combining removable and interchangeable lip gloss our necklace -Each necklace will come with one lip gloss and other lip gloss flavors and colors will be sold seperately -The consumer will have the option of changing the lip gloss or removing it completely -In the future, Glam Gloss will be doing the same with all accessories


OUR PRODUCT


DESIGN INSPIRATION

Sugary sweet brights are a new direction for fresh, playful kids’


TARGET MARKET wearer/purchaser “For many manufacturers and retailers, families are a core target audience as they generally spend more and have a wider range of needs than single households or couples without children. The challenge for companies trying to engage this audience is that, while the adults are typically the ones making the final purchase decision, their choices are not made in a vacuum as they are likely to feel some influence from their kids throughout the decision-making process.� - Kids as Influencers report, June 2011, Mintel Oxygen

Fashionable girls ages 5-10


CONSUMER PROFILE


TARGET MARKET wearer/purchaser Mother’s 27-40 years old College Graduate With 1-2 children Total Household Income of $60,000+ Achievers: Commitment to career and family Image is very important Value material possessions Fashion Forward Put children first Like to indulge and spoil children Want their children to have the latest trends Value self expression of their children


CONSUMER PROFILE


DEMOGRAPHIC RESEARCH In 2013, children ages 0-17 made up 23.4% of the population in the United States In 2013, there were 14.5 million children ages 6-11 64.1% of children ages 0–17 lived with two married parents in 2012 Two parent families spend about 7% more on their children than single parent families Families spend an average of $10,010 and $15,460 a year on their children 41.2% of mothers in 2013 had a bachelor’s degree or higher 70% of women in 2012 who had children from 6-17 years old were employed part time In 2013, the median household income was $52,100


PSYCHOGRAPHIC RESEARCH As of 2014, 14% of the United States population are Acheivers The median age for Achievers is 41 70% of Achievers are married 65% of Achievers work full time There awere about 1,744,907 Acheivers in the United States in 2009 85% of women are making purchasing desicions for their household There is about $24 trillion of spending each year by moms alone in the Unites States Young moms are two times more likely than the average adult to use social media more than three times each day They are also more likely to be active, posting and commenting two times more than the overall population


SALES VENUE

-Claire’s Stores, Inc is one of the world’s leading specialty retailers of fashionable jewelry and accessories for young women, teens, tweens and kids. -Claire’s aims to inspire girls and women around the world to become their best selves by providing products and experiences that empower them to express their own unique individual styles -As of November 2, 2013, Claire’s ® had a presence in 44 countries through the 2,720 company operated Claire’s ® stores in North America, Europe and China, and 414 franchised stores in numerous other geographies


PROMOTION #GLAMGLOSS Strong social media pressence to attract young moms including Twitter, Facebook, Twitter, Instagram, and Pinterest Encourage interaction on social media posts, both directly with brand and with other moms -Lip gloss tins will serve as leave behinds and giveaways -They will be the same size as the lip gloss tins used in our products and therefore compatable with all products -If you own one of our products, you may interchange this with the existing lip gloss tin

Encourage them to post their daughters OOTD to social media platforms and hashtag #glamgloss Hold styling contests of daughters outfits with hashtag #glamgloss to win free lip gloss/accessories Encourage them to post tips on raising a daughter, back to school shopping, daughter’s room decorating, healthy recipes etc. with hashtag #glamgloss to win free lip gloss/accessories


CORPORATE MEETING Meeting with Jennifer Gennace Who she is: -Jewelry/Accessories Product Development/Manager What she does: -Manage freelance product and graphic designers -Liaison between merchandising team, allocation, planning and overseas vendors for best pricing, delivery, and production -Works in conjunction with the buyer and vendors to deliver and maintain all product development/sourcing requirements that meet the needs of the department -Manages product development process from initial design all the way to providing vendors with tech packs/ specification sheets/collection line sheets to get first approval sample -Acts as team support and develops productive relationships with new vendors/manufacturers


MEETING EXPENSES Hoffman Estates, IL on Aug 12 2014 PLANE

HOTEL

FOOD

TAXI

MISC

$413.00 Leave US Airways 2693 / 1892 Mon, Aug 11 12:52 PM Savannah SAV 3:44 PM Chicago ORD

Standard 2 Doubles Two Double Beds Max Occupancy: 4 adults Includes: Free Wireless Internet Mon Tue $110 $110

Resturaunts near 2400 W Central Rd Hoffman Estates, IL 60192

From airport to hotel: 19.7 mi and 24 min

TOTAL: $30.00

Chili’s TGI Friday’s Romano’s Macaroni Grill IHOP Steak ‘n Shake

x2

Return US Airways 2698 / 2783 Wed, Aug 13 2:55 PM Chicago ORD 7:29 PM Savannah SAV TOTAL: $413

TOTAL: $220

Eat at Hotel TOTAL: $50.00

Taxi Cost: $43.98

TOTAL: $87.96 GRAND TOTAL: $800.96


OUR COMPETITION

Price

Quality


COMPETITOR ANALYSIS Established: 1973, London

Established: 2004, New Albany, Ohio

Established: 1947, Västerås, Sweden

Brief Overview: Monsoon Accessorize is a design-led retailer based in London operating two international retail clothing chains - Monsoon and Accessorize

Brief Overview: Justice Stores, LLC operates girls’ fashion apparel and accessories retail stores.

Brief Overview: From a single women’s wear shop in Västerås, Sweden, to six different brands and 3,200 stores all around the world. H&M’s company policy is to offer fashion and quality at the best price.

Similar Products offered: -Fashion Necklaces:$4-$14 Competitive Advantage: -Lip gloss included in necklace -Interchangeable -Innovative -Trend Setting

Similar Products offered: -Fashion Necklaces $3.59-$12 Competitive Advantage: -Lip gloss included in necklace -Interchangeable -Innovative -Trend Setting

Similar Products offered: -Fashion Necklaces $3.95 Competitive Advantage: -Lip gloss included in necklace -Interchangeable -Innovative -Trend Setting


COMPETITOR ANALYSIS Established: 1976, San Francisco, CA Brief Overview: Crazy 8 is owned by the Gymboree Corporation which operates a chain of over 1200 specialty retail stores of children’s apparel in the United States, Puerto Rico and Canada. Similar Products offered: -Fashion Necklaces: $9.88 Competitive Advantage: -Lip gloss included in necklace -Interchangeable -Innovative

Established: 1989, Secaucus, NJ

Established: 1960, Shinagawa, TKY

Brief Overview: The Children’s Place is an American specialty retailer of children’s apparel and accessories

Brief Overview: Sanrio Co., Ltd. is a Japanese company that designs, licenses and produces products focusing on the kawaii segment of Japanese popular culture.

Similar Products offered: -Fashion Neckaces $5.95$8.95 Competitive Advantage: -Lip gloss included in necklace -Interchangeable -Innovative -Trend Setting

Similar Products offered: -Fashion Necklaces $9.95$245.00 Competitive Advantage: -Cheaper price point -More easily accessible -Appeals to wider market


SWOT -New spin on old idea -Not a lot of competition -Appeals to young girls -Cute and Functional

-New to market -Inexperience in manufacturing -Inexperience in jewelry industry -No already established customer -Need to spend more on marketing since product is new

-Multiple styles of pendants -Multiple flavors -Interchangeable flavors of lip gloss -Not just lip gloss, solid perfume too -Bracelets, rings, watches, etc.

-Already established jewelry companies -Cheaper lip gloss necklaces -Knock-offs


SPEC SHEET Length of Chain: 16” 16” Circ.

Middle Pendant: 1.25” Secondary Pendants: 1” Lip Gloss container: 1.25” x .29” Individual beads: 1.5cm

1” Dia.

1” Dia.

.29” Ht 1.25” Diameter


PACKAGING SPEC SHEET

Item

Quantity

Details

Cost x1

Cost x1000

Hang Tag

1

Paper hangtag 4.5in x 2.5 cm

$0.10

$100.00

Plastic Bag

1

Clear, self adhesive plastic bag; 8cm x 10 cm

$0.03

$30.00

$0.13

$130.00

Total


COST SHEET Item Chain

Quantity 16�

Details

Cost x1

Cost x1000

One 16� long chain

$0.26

$260.00

Beads

43

Tourquise teardrop beads for pendants, 17 on middle pendant, 13 on two secondary pendants

$0.86

$860.00

Seed Beads

20

10 in the middle of two secondary pendants

$0.0004

$0.44

Container

1

Container for lip gloss on center pendant

$0.16

$159.00

Velcro

2

Two 1 sq in of velcro for the middle pendant and the lip gloss container so they are able to attach

$0.001

$1.02

Pinch bail

3

Fasteners for each pendant

$0.13

$128.11

Jump rings

5

3 for each pendant

$0.08

$80.00

Lip gloss

1/20 oz

To place inside of the container

$0.49

$490.00

Fabric

3

Three 1 sq in fabric squares to sew each bead onto, to create each pendant

$0.0027

$2.75

Total

$4.71

$1,981.32


WHOLESALE & RETAIL PRICE POINT Cost: $4.71 Packaging: $0.13 Shipping & Handling: $0.69 TOTAL COST: $5.53 MU%: 180.47% Price Point: $9.98



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