Market Analysis
Table of Contents About and History.......................................... pg.1 Product Development.................................... pg. 3 Sales, Distribution, and Employees............... pg. 4 Target Market.................................................. pg. 5 Kaylee............................................................... pg. 6 Melissa............................................................. pg. 7 Marlene............................................................ pg. 8 Competition.................................................... pg. 9 SWOT Analysis.............................................. pg. 10 Trade Shows..................................................... pg. 11 What’s Next?................................................... pg. 13 Resources and Credit..................................... pg. 14
About Working Class Studio is a product development venture of the Savannah College of Art and Design that promotes the work of talented SCAD students, alumni, and faculty artists. Working Class Studio marinates fine art products that serve the quirky yet sophisticated customer. The company’s unique array of merchandise is truly derived from up and coming artists and designers, the SCAD students.
History Working Class Studio has existed as a product development venture of the Savannah College of Art and Design for over eight years. Launching with highly praised products such as the melamine plates and magnetic frames. Since their launch, Working Class has continued to expand their product line to include more handmade, one of a kind pieces such as The Charles Collection Clocks , Cory Vases, and Tucker Lamps. Working Class features items that are limited, made by their prestigious interns, in order to try new and complex things. 1
Product Development Working Class is constantly seeking to improve its successful products. The products that are currently created focus on three specific areas; SCAD branded, Working Class, and home decor. The interns who develop these products begin with thorough research: addressing Working Class as a company, who its target market is, its strengths and weaknesses. The interns develop their projects in relation to these findings, drawing inspiration from resources such as fashion and graphic design, trade shows, and the Savannah atmosphere. The interns then present their product ideas as a team and individually, to the full time staff at Working Class Studio. The Puffy Frames, created in the winter of 2009, consisted of only three colors, since its creation, it has expanded to include more child friendly and brighter colors allowing the product to expand into a collection that features a total of seven colors. Its success is due to its unique features as a product by being tactile and versatile. Cory Vases, are also a very successful product. Made in house at Working Class studio. The success of this product also lies in its uniqueness, custom aspects, and opportunity for customer interaction.
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Sales Working Class has a sales force that consists of two in house representatives. There are a total of three sales representatives outside of the Working Class Studio. These representatives cover the Midwest, Pacific North West, and Canada. They each have a showroom that displays the Working Class Studio products alongside an array of other companies with similar merchandise. These outside sales representatives have the responsibility to sell the line products offered by Working Class, as well as gain new accounts. They are also responsible for nurturing the relationships with retailers in their regional area.
Distribution Working Class Studio seeks to distribute merchandise in a timely manner. Their deliveries are generally made within 2-5 business days of when the order is placed. It is ultimately fulfilled within 10 days. Working Class has international inquires and customers from location such as Bermuda, Panama, Puerto Rico, Venezuela, Australia, and Canada.
Employees Working class has a total of 5 full time employees and a various amount of interns. They can vary from 4 to 20 throughout the four quarters offered at SCAD. Interns represent undergraduates, graduates, and a variety of majors. 3
Target Market The primary target market for Working Class Studio consists of women who are in their mid 20’s to late 40’s. These women seek fun, are quirky, and desire an aesthetically pleasing home. They are technologically savvy customers who are constantly seeking interesting products. Some of their favorite places to shop consist of websites such as Amazon, Target, Wanelo, and small brick and mortar boutiques. The target market consist of “Achievers” as well as “Strivers”, according to the VALS strategic business insight. “Achievers” are motivated by the desire to succeed. They are goal-oriented in their lifestyles and have a strong commitment to their career and their family. “Achievers” are active in the consumer marketplace. They favor established, prestige products and services that demonstrate success to their peers. “Strivers” are trendy and fun loving. They are motivated by achievement. They are active consumers who shop as a social activity and opportunity to show their purchasing. They are entertainers and very sociable.
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The Chic Career Girl Age: 24 Status: Single Income: $40,500 Annually Location: Philadelphia Career: International Commercial Photographer Transportation: Planes, Trains, and Buses Lives in: Studio Apartment Hobbies: Photography, Lounging, and Canoeing Favorite things: Her wiener dog Fiasco, Vintage Barbie dolls, and Card games Favorite blog: The Cut Favorite thing to do on a Sunday: Host Brunches Favorite clothing brands: Tommy Hilfiger, H&M, and Jason Wu Style: Free and Trendy
Kaylee aka Cookie No one can make you feel inferior without your consent.
Eleanor Roosevelt
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The Multiple Hat Mother Age: 37 Status: Married with two children Income: $90,000 Combined Location: East Boston Career: Accountant at Nstar Co. Lives in: 4 bedroom, 3 bathroom country style home Hobbies: PTA, Marathons, and Reading Favorite things: Her Children, Caramel Apples, and Foreign Films Favorite blog: Good.is Favorite thing to do on a Wednesday: Kids eat free at Ihop Favorite brands: Ann Taylor Loft, Donna Karen, and New York & Co. Style: Classic and Professional
Melissa aka Missy When you are a mother you are never really alone in your thoughts. A mother always has to think twice, one for herself and one for her child. Sophia Loren
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The Great Gift Giver Age: 67 Status: Has a “friend”, two children, six grand-children and eight great-grandchildren Income: $60,000 Annually Location: Sante Fe, NM Career: Retired RN; Owner of “Crates” furniture consignment shop Lives in: Ranch style, 2 bedroom 1 and 1/2 bathroom Hobbies: Baking, Gardening, and Singing jazz Favorite blog: The Washington Post, in print Favorite thing to do on a Saturday: Watch the great-grandchildren Favorite brands: Liz Claiborne, JCPenny, and Nine West Style: Contemporary and quirky
Marlene aka Lenni What could be more beautiful than a dear old lady growing wise with age? Every age can be enchanting, provided you live within in it. Bridget Bardot
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Competition Working Class has several competitors in the home decor and gift market. These competitors carry similar merchandise to that of the Working Class Studio aesthetic.
Mio Culture: Founded in 2001, Mio Culture focuses on changing
the consumers purchasing decisions by creating affordable yet sustainable products. • Price range: $15 - $250 • Product selection: Narrow and Deep
Others to Consider
The following are other company’s that sell their own private label home decor and accessories that are competition to Working Class Studio:
• • • •
Ikea Target Uncommon goods Chiasso
West Elm:
Collaborates with other designers to create modern products using natural materials and affordable design. • Price range: $4 - $500 • Product range: Broad and Shallow
French Bull: Entered into the market with its melamine kitchen products. Soon after, it became a lifestyle brand that focuses on a broader selection of home decor and accessories items. This company sells it items wholesale and retail. • Price range: $8 - $250 • Product selection: Narrow and Deep
Jonathan Adler:
Focuses on style, craft , and joy in his upscale products for the home. The lifestyle brand has a range of products, from apparel and accessories to bedding and lighting. The designer also offers the option for his customers to customize their products. • Price range: $20 - $800 • Product selection: Broad and Shallow 8
SWOT Analysis This SWOT analysis explores the strengths, weakness, opportunities, and threats for Working Class Studio. Working Class Studio can use this SWOT analysis to guide future projects and products.
Strengths • Unique products • Products created by SCAD students, faculty, and staff • Moderately priced • Collaboration
Weakness • • • •
Opportunities • Social networking marketing • Furniture • Attend international trade shows • Lifestyle product offering
Outdated prints Trade show; exposure Marketing on social networks Outdated color palette
Threats • • • •
Competition Economy Overstock of old product(s) Customer
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Trade Shows Working Class Studio currently participates in several trades shows to promote its products to potential retailers and consumers. Working Class also has outsourced sales representatives attend other trade shows and host showrooms to promote the merchandise. • • • •
Seattle Market Week : Pacific Market Center/ Scarlet Chicago Market: Living and Giving CGTA * Toronto Gift Show New York International Gift Fair
To reach the ever increasing global market, Working Class should consider increasing their products and brand to other trade shows. The trade shows to consider are national as well as international. Reaching out to a global audience allows Working Class Studio to gain an international presence, allowing for exposure to new trends, influences from foreign countries, manufacturing and sourcing opportunities, and gaining new clients.
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High Point Market: For over 100 years, this historical loca- Chicago International home + housetion has established itself as the world’s home for home furnishings. High Point continues to be the best location for trends and innovation. wares show: Working Class Studio already ventures to the It is consistently featured on trend publications such as WGSN and Stylesight. • October 13-18, High Point, NC • Over 75,000 attendees in a 10 million square feet of exhibition space • More than 2,000 exhibitors with 100+ countries represented • http://www.highpointmarket.org/
United Kingdom Autumn Fair: The United Kingdom
boast the title of having the seventh largest economy, and a world renowned international trade fair that leads up to the Christmas season. • September 2-5, NEC Birmingham, England • 32,000 buyers from 78 different countries; 82% of buyers have direct purchasing power. • Attended by everyone from the major multiples and department stores to the important independents. • http://www.autumnfair.com/
“windy city” to show at the Chicago Market: Living and Giving trade show. However, there is an opportunity to return to the Chicago area for the international home and housewares show because of it’s array of buyers and competing vendors. This allows for excellent exposure to indoor and outdoor trends for the home. • March 2-5 , Chicago, IL • Over 2,000 exhibitors from over 35 countries • 15,000 U.S. buyers • 6,000 international buyers representing; 100 different countries • http://www.housewares.org/
Pulse: The United Kingdom’s only summer trade event.
Offers unique buying time for the home and gift market. • June 10-12, London, England • 480 exhibitors in contemporary and innovative gift, home, and lifestyle brands • 7,000 buyers from independent, e-tailers, and department stores • Marketing assistance through their exhibition directory online and in print • http://www.pulse-london.com/ 11
What’s Next? Working Class has created a wide product assortment for their target audience, but there is always room for more. Working Class can develop a stronger product assortment to become more of a lifestyle brand. This includes creating more items that focus on different the aspects of its target markets lifestyle. Working Class should look towards other home decor pieces, updated prints and fabrics, and furniture. Based on trend research and market analysis, there are several key products and ideas that were trending at shows such as the Milan furniture fair and High Point Market. • • • • • • • • • • • • •
Rugs Kitchen accessories Bathroom decor Dorm Children’s bedrooms Customizing Interactive Digital Sustainable Wedding Wall Art Decals Office supplies
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Resources and Credits House Beautiful.com Martha Stewart Living French Paper World interior Design Network Megan Ave ’ Lallemant, Working Class Studio Real Simple Magazine Style at Home Fibre to Fashion Mio Culture.com West Elm French Bull Jonathan Adler Ikea Target.com Uncommon Goods Chiasso CNBC Mashable.com Strategic Business Insights Pew Internet
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Taylor Justin Spring 2012