Business Plan and Idea Assignment - Opening a Brand New Store of Luxurious EyeWare Brand
EssayChat / Nov 3, 2018
Executive Summary
This assignment has been focused on the business idea presented by StéphanieLoutfi Le Grand for opening a brand new store of luxurious eyewear brand.The report involves coming up with a line of selling strategy and market expansion plan for Luxury eyewear in Paris that includes several region of Parisalso for enlarging operation in other countries of Europe. Product description and operational procedure of business operation has been provided along with its effective USPof the business in the context to luxury eyewear products that has been helped to define the organization dealing in similar product line with their USPs in the marketplace. Whereas, evaluation of internal and external factors, risk elements that business might face, pricing strategy and selection of valuable partnersin the marketso that business could flourish in the entire market, could also be provided in this unit segment. This will enable readers to understand that for setting a Luxury eyewear business in the competitive marketplace, is not an easy task and it requires lots of prior planning with an effective marketing plan for setup business organization at the subtle, financially growing, stable and sustainable position in the market.
Table of Contents
Introduction5
Products6
Operational Procedures 7
Unique Selling Propositions 9
Company Vision and Strategy 11
Competition 14
Target Group 16
Risk Analysis 16
SWOT Analysis 17
Location of Headquarters 19
Business Partners 19
Consulting 20
Marketing Plan 21
Price Strategy 23
Communication Strategy 24
Business Organization 25
The Founder and Director 26
Staff 26
Financial Plan 29
Brand canvas 32
Conclusion 33
Introduction
The reporting unit focuses on offering the business plan for Luxury eyewear undertaking its marketing strategy and business plan. Luxury is in fashion and fashion is for luxury. In the current scenario, luxury is in all place, and marketing and managing individual are regularlyinvestingnew quality terms to luxury. The business of luxury eyewear by Tom Le Grand by StéphanieLoutfi Le Grandcould constitute to qualifying eyewear to luxury through offering massive, premium, true luxury, hyper-leisure and ultra-premium quality eyewear for the group of rich and semi-rich individual who mainly fashion and style conscious and looking for eyewear has to enhance their personality (Kernstock et al. 2017). The concept of luxury is old as humanity, and its discriminating understanding will be reflected in this assessment to make a possible definition of rigorous rules towards effective management.
The mission of the business plan is to provide luxurious and stylish eyewearto customers who wish to augment their physical appearance with eyewear. It has been observed that almost 58% of the population in the France considers wearing eyewear, indicating that this could be a profitable business in the European countries such as Paris and Italy (Okonkwo, 2016). The business will implement target-marketing strategy, communication strategy for the smooth running of business without any concerns from users as well as employees of the organization. The goal of business would provide luxury eyewear to its targeted customers in the market of Paris with the prices that would be convenient for them in the term of standard and quality of the product. For the long-term growth and development of luxury eyewear business of Tom de Grand by StéphanieLoutfi Le Grand in the marketplace, major factors of production with attractive quality and fashionable style towards facilitating uniqueness and differentiation, price design and financial plan will also be discuss in this report.
It is difficult for an organisation to enter into the competitive market where the nature of the market is perfect competition. The StéphanieLoutfi Le Grand has decided to open business by the name of Tom Le Grand has in the market of Paris with luxurious eyewear collection lovers who are interested in purchasing luxurious products. The business wishes to focus on both large and small segment of the luxury eyewear market. In the large segment, it focuses on providing fashionable eyewear that will include lens specks as well as goggles of a wide variety ranging from standard to premium prices. Whereas, in a small segment of business it also wishes to offer contact lens to its customer to also attract customers who are not just interested in specks but looking towards other forms of eyewear to suit their personality. The purpose of business is to provide handmade, high-quality luxury eyewear and sunglasses at mid to high prices. The organization believes that every individual should be able to look fashionable and stylish without spending much of fortune (Kapferer and Valette-Florence, 2018). For every sunglass bought a pair of reading glasses offered at 50% discount. For highly fashionable individuals product offered are of different shape and size including semi-circular, rectangle, circular with iconic and elegant yet trendy look with a differing colour of their choices that are special, precious and classic in appeal and appearance giving luxurious tough to eyewear. However, for semi-fashionable individual eyewear could be of sleek and subtle appearance focusing on Italian customer's preference and needs that they require in their eyewear.
Undertaking these activities,Luxury eyewear business Tom Le Grand by StéphanieLoutfi Le Grandorganization wishes to give tough competition to other brands operating in Europe/Parislike Gucci, BVLGARI, Cartier, Dior, PRADA etc, towards providing extinguished sunglasses and prescribed eyewear under matched-price of customers offering eyewear to evoke high fashion and style with present fashion trend of finest and crafted quality material (Ft.com. 2018). The eyewear frames would fall under three categories as Fun, Intelligence and Glamour where each category/segment would contain 15 to 20 different frames of several designs offered in different finishes and colors.The Tom Le Grand by StéphanieLoutfi Le Grand organization would offer eyewear product in both acetate or plastic and metal frames pre-installing clear polycarbonate lenses as well as offering platforms to customers where they can customize their own specks based on their preferred design for ultimately increasing the variety of luxury eyewear product and making frame selection procedure less stressful and more fun.
Operational procedure in luxury eyewear branding of Tom Le Grand by StéphanieLoutfi Le Grand organization and its product expansion in the marketplace would describe the process from manufacturing to the final destination to end-users. It would be a recurring operation towards quality investigation and having control over the business operation. Effective management of operation procedure of business organization is essential towards decision-making process constituting to defining and tracking the development and growth of business in the marketplace. The process requires the understanding of logistics, merchandise and cost control to more items from manufacturing unit to the production facility or physical stores into the hands of customers. Supply chain management process will include the supply of product from its manufacturing unit to transportation segment, leading, shipping and finally transporting it to the destination that would be the physical store in the country to different branches (Boonjing et al. 2015). Outbound shipping cost would be managed by establishing different branches in the country and integrating handmade craftsmanship reducing the cost of over shipping.
Figure 1: Supply Chain Management
(Source: Boonjing et al. 2015)
Tom Le Grand by StéphanieLoutfi Le Grand organization has the option to lead their new businessdone through e-commerce including social media platforms, several site promotions and collaboration with the different companies online store app like Amazon, Flipchart, etc. for sales operation worldwide along with Europe/Paris. The store of Tom Le Grand by StéphanieLoutfi Le Grand organizationwill be designed based on window presentation, music, lighting, consistent store maintenance and having salespersons who areexperienced in selling luxury eyewear product having wider knowledge about the product, its quality and presenting own products image in mind of the customer without defying other company's product.
Figure 2: Retail Value Chain Management
(Source: Boonjing et al. 2015)
The operational procedure would be followed by the available resources in the organisation and the number of works that will help the organisation to produce better products for their targeted customers.Shelves, racks or display would be arranged at angles, straight or in a geometric pattern to produce visual interest of customers in addition to business. Display placement will ultimately increase the visibility of the product, and a unique brand proposition of quality, luxurious yet fashionable product will include the online and traditional form of operational procedure (Sandra, 2016). Under the traditional form of advertising activity, the business product of luxury eyewear will be promoted through pamphlet, hoardings, TV channels, posters etc. Cash handling segment should include electronic cash management and accounting software to help towards proper management of daily sales and revenue generated by the business. Staffs recruitment process by management of Tom Le Grand organizationwill include the selection of employees that are aware with selling tactics and idea helping organization to represent the better product in market ultimately reflecting the strong brand image in the mind of its targeted customers. Retail chains would have own warehouse to stock products merchandise and are also allowed taking the proper procedure to prevent loss of stock and inventory. Managers operating in the business of luxury eyewear product would conduct frequent training and development programs for employees who are mostly sales representative, team members or cashiers to make them aware of advancing business process and allow understanding of the usage of technology for maintaining brand image and quality among its customers.
As the brand is launching luxurious item in the market and hence the USP should be set up to the mark that might influence the customers to purchase the product. USP defines advertising effect that has influenced brand preference of customers making the switch from other brands in the marketplace. This will enable luxury eyewear brand to exhibit company services and products to stand out from rival's organization. The USP of Luxury eyewear is to provide high-end fashionable eyewear with trendy and stylish frames matching their personality. The collection appeal would be unmatchable with distinctive and bold glasses for youth and fashionista individual with lightweight frames of better quality material, design and attention to details. Prescribed lenses are checked against certified opticians by the staffs additionally providing customers centric services and care for their eye. However, for doing this, the company have to do proper research about the types of the fashionable sunglasses that are available in the market. In addition to this, the sunglasses must specify that those are made up of good quality of materials so that the client must spend some extra money on these expensive sunglasses that provides them luxurious feelings.Luxurious features like a wide collection of stylish and fashionable yet classic frame, plastic and metal frames with polycarbonate lenses for both prescribed eyewear and goggles along withUV protection lenses of different colour shades etc. are needed to be offered to the customers at specific price range mainly ranging from medium to range cost.
The luxury eyewear brand focuses on entering in the field of eyewear business with an USP of "Let Your Eyewear Speak about who you are". To maintain its USP for longer run establishing successful luxury eyewear business, the organization needs to work on its frame style, material frequently adjusting it to current, and future coming fashion trend in the context of eyewear frames, goggles and meeting the need of changing customers preference about the product (Payne et al. 2017). For providing the line of glasses for women, business could vary itself extensively with other premium brands including different shapes like oval, cat-eye, round, rectangular and rounded eyewear frames. Whereas, in men's frame section it could include masculine rounded edge, square and rectangle frames defining brand image and loyalty of its customers towards the brand.
A vision of Tom Le Grand has in the market of Paris is to thrive in the marketplace and strive within potential customer base with providing high-quality, luxurious sunglasses and prescribed lenses/glass or eye contact lenses at medium to high prices even enabling middle-class population of the country to be fortunate to afford luxurious eyewear product. Organization vision would be to create luxury eyewear identify of the brand among its customers through approachable imaginary storytelling.The vision statement of the company should justify the brand name of the organisation and the value of the product among the customers. It will further help the organisation to attract loyal customers in the market.
In addition, in creating a consistent and strong image of the brand through effective market analysis, planning and implementing the strategy for establishing brand loyalty among new and old customers as well. Whereas, the strategy of the luxury eyewear brand are as follows-
To increase customer base especially targeting Europe/Paris customers initially the organization will building the strong association with current style and fashion through viral marketing, amplifying public relation, participating in events and press coverage. Along with this, the organization will promptly be processing return products and shipping order to divide the organizational department into a different segment for the smooth functioning of business operation. Apart from this the organization focus on their investment procedure as well as target and for that the company might invest capital of approximately $10,000 on online marketing for expanding business broadly as well covering country as well (Vander Linde, 2015).
To maximize return on equity by 35% by the end of 2020 also to increase sales by 17% by the end of 2018 the organization is needed to maintain the cost of sales at reasonable and specific prices staying parallel with the vision statement. On the other hand, to create a charitable image of the business and to raise awareness of eye care among un-aware individuals the organization might add the line of eyewear for children by January 2019. By offering other retail stores like shopping malls, Eyewear Hut across urban areas of Europe/Paris, within the next five years the organization might set their milestone to enter in the global market.
As per the current market analysis, industry of eyewear in Europe is more focused on the online retail platform than offline stores in the market. The consumers are more concerned about pricing, look and style of spectacles over the quality of the product. It has assessed that changing fashion and outlook of consumers is changing with pace. Thus, a constant innovation over style and texture of spectacles has become one of the priorities. The prime goal and objective of luxury eyewear creation are to enter the European market to expand its business positioning. In the market, consumers try different clothing and wearable products to look more trendy and fashionable. Thus, the company will target men and women with an age group of 20-50 years. It has assessed that the particular group of peoples are more eager to try new look and outfit every day. The frames must be up of plastic or metals, on the other hand, the lenses are made up of polycarbonate material that offers a platform for the customers where they can buy the products of their choice, whether it is a sunglass, eyeglass or contact lenses. The eyeglasses will be made with the high-quality material. Therefore, the company will have to target upper class and middle-class customers. In addition to it, the company will target consumers in London and Paris to attract consumers wish to stay in fashion all the time. It is expected that the company will be able to cove 10% of customers within 3 years of business. The market target for luxury eyewear will include the differentiated market strategy that will assist, in which customers based in Paris will be focused with the tag to "change your fashion every day". Online advertisement campaign will be introduced to reach a maximum number of customers.
Product Tom Le Grand has in the market of Paris will introduce product segmented sunglasses, eyewear and eye care through online and offline stores. The product line also includes eye contact lenses; customized lenses, customized spectacles and eyewear related products for its customers in the marketplace. The frames must be up of plastic or metals, on the other hand, the lenses are made up of polycarbonate material that offers a platform for the customers where they can buy the products of their choice, whether it is a sunglass, eyeglass or contact lenses. In the product segmentation, customized spectacles as per style, colour, size as per customer demands can be prepared.
Price In relation to meet the price margin in the European market, company will use customer based pricing strategy. The strategy will help to put the cost price of products lower than the standard price of spectacles available in the market. The company will target to reach 50 cities in the Paris for the online sale of prescribed and luxury spectacles in 3 years. The increase in sales will help to cost cutting of its products by 45%-55%.
Place The Tom Le Grand has in the market of Paris will introduce 10 off stores in Paris and Italy providing online platform for shopping of the lenses and spectacles. The company plans introduce the product in different cities of the Europe within three yearsas part of expansion strategy plan. The customer base once created, the company can enhance its offline stores more to stay in competition in the European eyewear industry.
PromotionThe online advertisement and road shows are two basic focused promotional activities that help to introduce and create a brand identity for the customers in the France. It has evaluated that the company engage advisement capping through social media, search engine optimization and trade show to increase the attention of consumers.
Competition analysis would help the organisation to measure its future market also it will help to generate a possible market for the customers so that customers could get better options than other brands.The business could get tough competition from brands like PRADA, Gucci, BVLGARI, Dior, Cartier who also operate their business in the same field and they are old to this market field. The Luxury eyewear brand may face the challenges in matching with the standard of quality and brand image that these big firms have created among its customers through retaining them from a long run. However, for doing this, the company have to do proper research about the types of the fashionable sunglasses that are available in the market. In addition to this, the sunglasses must specify that those are made up of good quality of materials so that the client must spend some extra money on these luxurious sunglasses that provides them luxurious feelings. As the rival company holds large market share and operating in the market from the longer period, they have much knowledge over customer's preference and market trends where it could rise as the threat to new business as they have the average knowledge and are new to the marketplace (Ft.com. 2018).
Figure 3: Market Share of Luxury Eyewear Companies in Paris
(Source: Ft.com. 2018)
Apart from these, the business could mitigate these challenges through implementing effective marketing plan and strategy and undertaking promotional and advertising activity through social media platform to reach targeted fashionista and style conscious individual mostly younger generation within short duration with attractive USP and value proposition.
Target Group
The target group should be luxurious customers who should have enough disposable income to spend on the offered product in the market including the urban and suburban region of Paris, that constitute to higher disposable income from higher and upper-middle class individuals/community/group. For expanding the customer base of Tom Le Grand has in the market of Paris, the branding process will mainly due to attract or target younger group generation including both men and women eyewear who are mostly interested in fashion and have knowledge of style, love to dress accordingly keeping their preference of eyewear up-to-date with changing the trend in fashion.
Risk Analysis
Risk analysis factor will help the organisation to identify the uncertainty that might arise in the future market that might further help the organisation to calculate its market growth rate. The Tom Le Grand has in the market of Paris could face several risks while being new to the marketplace in the field of luxury eyewear business. There could be capability risk where start-up or new business like luxury eyewear fails to scale their capability of business on a timely basis and required level. Other risks would development where business fails to develop its services and products on scheduled time within defined specification and budget increasing the cost debt and design risk where business not capable to meet the required service and design of product based on performance standard defaming the brand image and their effectiveness among potential customers (Salamzade and KawamoritaKesim, 2015). In addition, there could also be a risk to funding restricting business proceeding and economic life of product where eyewear product life is shorter than it has been projected and anticipated organically by the business brands. Failure in maintenance and management will also arise as risk if the business brand fails to manage its staff/team that lack experience and skills set to execute knowledge in start-up business plan ultimately poorly able to maintain company's assets and resources at appropriate levels increasing much business operational costs.
Sometimes, actual market demand for services, products unable to yield projected sales volumes ultimately contribute towards demand risk, and failure to adapt to growing technology could arise as the challenge if management of the business is not aware of its effective utilization. Considering business risk, founders and directors of Tom Le Grand has in the market of Paris could be able to identify negative factors influencing business profitability and growth in the marketplace. Thus, it is essential for Luxury eyewear to analyse these risk at regular interval of time to eliminating and encountering risks enchasing business functioning and providing unmatchable quality of eyewear frames, sunglasses and prescribed lenses.
SWOT analysis will help the luxury eyewear brand to know its strengths, weakness, opportunity and threat in the marketplace that could be from the rival company as well as due changing market and customer's preferences. The strength will allow the business to maintain itself in the market whereas, and weakness could alter business operation decreasing sustainable profit margin and threatening luxury eyewear business to get extinguish from the market (Eskola, 2016). Identifying the opportunity will allow business to flourish and expand in the market even being new to it. This will even help the learner to define the current position of the organisation in the targeted market based over which the future market will be calculated.
Strength
·Iconic Branding
·Clear polycarbonate lenses
·In-house French design
·Strong luxury look and design
·Light-weight frames
·Fashionable, stylish yet classic frames with different shapes and color shades for men and women
·High quality, hand-crafted frames and sunglasses
Weakness
·Weak customer base
·New to marketplace
·Less number of Employees
·Average awareness in luxury eyewear sector
·Low visibility of product in the marketplace
·Lack of brand collaboration or association with desirable luxury eyewear company's
Opportunity
·Enhance customer base through increased visibility of luxury eye-wear product through social media platforms, traditional marketing and visual merchandising
·Create brand loyalty among younger customers who are more fashion-centric
·Increase the number of employees
·Merger and Acquisition with big brands
·Expanding knowledge over Luxury eyewear other products available in the marketplace Threat
·Sacrificing exclusivity for visibility
·Compromising tradition with the objective of younger target
·Threat of cloning
·Better and old luxury eye-wear organization in the market giving tough competition like Gucci, BVLGARI, Cartier, Dior, PRADA
·Changing fashion trends and customer preference
Table 1: SWOT Analysis
(Source: Eskola, 2016)
Location of Headquarters
The most important part of the establishment of the business is the setting of the headquarters and to decide the location of the headquarters in Paris is the most challenging work. The reason behind this is that most of the countries in Europe offer equal opportunities as well as advantages to those who are willing to start up a business. However, it is the best option to establish the headquarters in the Paris as it has attracted a large number of foreign investors. This is because the regulations of the Europe are business friendly, and the environment is thriving for the growth of the business.
The European countries are the most advantageous country that offers various types of benefits. These are highly skilled workers, friendly environment for business, competitive tax management, and worldwide links and excellent infrastructure of ICT and proper support for all types of innovation. All of these benefits make the France as the appropriate location for the headquarters of this project.
Business Partners
For this company, the media partners, e-retailers and commercial websites must be selected as the business partners. These partners will provide various types of benefits to the company. Those are it can help in gaining direct exposure to the company; help in increasing the awareness of the brand, it will enhance the profile of the eyewear of this company, the promotion of logo will also provide benefit to the company and helps in generating the quality of the product. Further, there are also some promotional benefits from the commercial websites as these websites will give proper recognition to the company by providing a direct link to the company (Jussila et al. 2014). The e-retail will help the company by providing access to the market very easily, online sale of the products will help in removing the necessity of the retail shops as well as the staffs those are facing the customers. All of these services will increase the ability of the eyewear company to target its desired market as well as the customers.
Consulting
There are many businesses of eyewear in Europe, so before starting a new company, it is very important to consider some of the points. Those points will help to set up the foundation of the business in such a way that will lead to success. Before starting the business of eyewear, the company must do proper market research for targeting the focus groups. Next, the company must make a plan for the business. After that, the financial planning of the business must be decided (Lovelock and Patterson 2015). Then the developing of the product is done that is the luxurious eyewear by maintaining the quality of the product. A proper structure for the business is chosen for which the registration is needed for the business. Next, the company had to choose the accounting system for setting up the rates for that the company must manage the budget and files the taxes of the company. The setting of the location is done for the business and to getting a team of capable staffs by recruiting proper members for employees. Then the most important part is the promotion of the small business. Finally, the business must be grown by targeting a new type of market, expanding the offerings and various other strategies (Lovelock and Patterson 2015). All of these attributes will help the company establish a new company in the market.
As the company Tom Le Grand is planning to start a business of luxurious eyewear, it must do the marketing strategy as per the needs and the habits of purchasing of the customers. Different customers in the markets have different needs, so it is very necessary for the company to satisfy the needs of the customers. For this, the process of segmentation, targeting and positioning of the market is necessary for the marketing process (Scarborough 2016).
Segmentation - For the establishment of a company selling the luxurious eye wears segmentation can be done on the following basis:
Demographic - For this company Tom Le Grand, the market must be targeted both on the male and female customers from the age of people from 18-40, those who are from the higher-middle class to upper class. The customers can be working professionals, students or sportsperson. The income of the family must be more than 3-4Lakhs p.a.
Geographic - according to this the targets include African, Asian, and American populations. Along with then, there are the peoples those who are living in the areas that are mostly exposed to the sun, and they had to wear the sunglasses very often.
Psychographic - Men and women in this group mostly make their purchases for reflecting their status, lifestyles as well as to flaunt their attitudes.
Behaviouristic - This group specifies those men and women those who are employed and put importance upon their self-expression.
Targeting - The Company Tom Le Grand must now narrow down the target to the people those who are young and mostly come from the suburban area of the different countries. The customers might be a male or female, but they must belong to the family those who have the household income from upper middle class to higher class (Scarborough 2016).
Positioning - the positioning of the sunglasses, lens and other types of eye wears of this company must be done on the basis of some product, customers and the needs of the customers. The products of this company must be of high fashion, classic and trendy because the target market consists of the luxurious customers. Once the customer buys the product, these provide them with a stylish and sleek look and will match any of the outfits for any type occasion. The company must tend to maintain their quality so that the customer will buy these products for the next time as an iconic brand that gives the customers a classy look along with the trendy vibes.
For the complete marketing plan, the company must focus on the marketing mix which contains 4Ps, i.e. product, price, place and promotion.
Product - The frame of the eyewears must be made in such a way so that each and every people could get their choice of accessory. Each frame must offer various types of colours as well as designs. The products are a different shape that includes semicircular, rectangle, circular with iconic and elegant. The appearance of the product will be sleek, light-weighted and funky that will meet the needs of the customers (Fine 2017). The frames must be up of plastic or metals, on the other hand, the lenses are made up of polycarbonate material that offers a platform for the customers where they can buy the products of their choice, whether it is a sunglass, eyeglass or contact lenses. The products must be different from the others so that the customers must think of this brand each time they want to buy eyewear. The packaging of the eyewear must be very simple but elegant. It must come with a black round edge box which should have only the logo of the brand on the top of the box.
Price - the price of the product must be remarkably below the price of its other competitors but must be of high range than the eye wears those are not branded or luxurious. The pricing of the products is not only decided as an accessory to the people, but it must be kept in mind that some people will also buy the eyeglasses (Fine 2017). The plan must be kept to make the glasses available that ranges can be afforded by the people of the upper middle class to higher class.
Promotion - the strategy of promotion will include the advertising and program of sales. The advertisement must be done with the help of various local media such as the newspaper, television channels as well as the radio. In addition to this, the advertisement can also be done with the help of social media. This could be maintained especially through the online websites such as Facebook, Twitter, Instagram and other online portals (Fine 2017).
Place - while selling of the eye wears such as sunglasses, eyeglasses or contact lens the selling must be done mostly through online. The reason behind this is it helps the company to sell its products on the basis of the international market all over the world. The customers will be able to make an online delivery, and the products will be delivered to them in a time of 3-5 weekdays (Fine 2017).
Price Strategy
The products of this company can be differentiated on the basis of the price (Beracha and Seiler 2014). The frames of these company are of a high range of price as the customers include the people those are having a high level of income and have disposable income which they can spend on buying luxurious as well as branded eyewear. The frames that are made by this company are approx. €70 - €200 a pair which is at a range of medium to high price. The price of the eyewear must be marked under the name of its brand so that the customers can easily recognize it. For doing a good marketing process to the audiences, the price of the eye wears must be kept in the middle of the retail scale. The range of the price for the sunglasses is very realistic according to the target customers (Huang and Sarigöllü 2014). The competition of this company with its rivals will be done on the basis of the quality of the product and differentiation. So the company must sell various types of eye wears according to the need of the customers. For instance, the company must have different types of sunglasses as the choices of the customers. However, for doing this, the company have to do proper research about the types of the fashionable sunglasses that are available in the market. In addition to this, the sunglasses must specify that those are made up of good quality of materials so that the client must spend some extra money on these luxurious sunglasses that provides them luxurious feelings. The group of customers those who are being targeted will always choose to buy these luxurious eye wears that will suit their style and maintain their status (Huang and Sarigöllü 2014).
Communication Strategy
Fig 5: 7Cs of communication strategy
(Source: Finne and Grönroos 2017)
The communication strategy is also an important part of starting a business because for any type of work there must be proper communication between the management and the employees of the communication. So the message that is sent to must be complete and can be easily understood by the receiver. The message that is sent must be concrete and is supported by facts or figures (Finne and Grönroos 2017). While sending any type of message the sender must maintain courtesy so that it may not harm the sentiments of the receiver. The language of the message must be correct and must not contain any type grammatical errors or wrong verb. The message must be clear and consist of short, concise but correct as well as concrete sentences. The message must give emphasis on a particular goal at a particular time. During any type of conversation, the target group must be taken into consideration, and the message must be delivered according to them. The message must not be stated as it is biased and must not include the terms that show disrespect for the recipient (Luxton et al. 2015).
Fig 6: Organizational Structure
(Source: Allen and Kraakman 2016)
A hierarchy is very important for the company as it describes the relationship between the managers and the subordinates from the top level to the bottom that consists of team members. The structure of the business organization consists of the CEO as the head of the organisation (Allen and Kraakman 2016). He mainly manages four different departments that are the marketing department, finance department, operations department and the department of human resource. The managers of these levels then look after the team leaders who then take care of the work that was done by the members of each team individually. Managers operating in the business of luxury eyewear product would conduct frequent training and development programs for employees who are mostly sales representative, team members or cashiers to make them aware of advancing business process and allow understanding of the usage of technology for maintaining brand image and quality among its customers (Allen and Kraakman 2016).
The Founder and Director
Stéphanie, a young French designer had developed the original idea for creating the eyewear brand. This company was born from the association made by the oriental jeweller that is situated in Dubai along with the French craftsman who builds the eyewear. The Tom Le Grand has decided to open a market for the luxurious eyewear collection lovers who are interested in purchasing luxurious products. The organization believes that every individual should be able to look fashionable and stylish without spending much of fortune. It focuses on providing fashionable eyewear that will include lens specks as well as goggles of a wide variety ranging from standard to premium prices.
Staff
The staff planning of the company will include with proper recruitment and selection process. Most of the staff members require will be front-line employees for the company. Thus, then there will be the requirement of skilled and experienced staffs will be required (Greer et al. 2016). It was assessed that the about 50 employees would be recruited for the job roles in the different store to be introduced in the Paris by Luxury eyewear. There could be capability risk where start-up or new business like luxury eyewear fails to scale their capability of business on a timely basis and required level. The staff role requirement is evaluated as follows:
Staff RolesReporting Skills required Staff number Training durations
Store manager Owner Decision making, communication, analytical, strategic skills22 months
Accountant/ cashierStore managerAnalytical skills, cash handling skills 52 months
Store team leader Store managerMotivational skills, communication skills, time management skills, excision making skills22 months
Front store staff Team head Communication skill, decision making skill82 months
Back store staffTeam head Communication skill, decision making skill82 months
Online sales staffTeam headCommunication skill, sales skills, decision making skill82 months
Online store executivesOwnerCommunication skill, sales skills, decision making skill, decision making 52 months
Customer service headManager Motivational skills, communication skills, time management skills, excision making skills 12 months
Customer service staffsTeam headCommunication skill, sales skills, decision making skill, decision making 52 months
Online IT professional Manager Motivational skills, communication skills, IT skills, time management skills, excision making skills32 months
Financial Plan
Profit and loss account
Profit and loss Account Year 2017 (in EUR)Year 2018 (in EUR)Year 2019 (in EUR)
Sales 100030005000
Cost of sales30016503300
Gross profit 70013501700
Expenditures
Administrative 506685
Marketing and operational 808999
Operating expenses 8090102
Rents and rates 9095105
electricity 608895
Insurances 6088102
Salaries and wages 405665
Total operational expenses 2407781047
Net profit 460572653
Balance sheet statement
Balance SheetYear 2017 (AUD in million)Year 2018(AUD in million)Year 2019(AUD in million)
Assets
Current Assets
Cash equivalents 500520530
Amount receivables 560500550
business inventories 460477489
Business inventory499510511
Other assets (current)320350300
Total current assets 233923572380
Fixed Assets
Plant, properties and equipments 120013201440
investments and equity 156016001650
Company goodwill 202020802102
Long term assets
Total assets711973577572
Liabilities
Current liabilities
debt short term 300320330
payables 450489510
liabilities accrued 250288310
revenue differed 320330350
Total current liabilities 132014271500
Fixed liabilities
Long term Debt 201020562055
Long term liabilities 175017801800
Loans and advances 203920942217
Total liabilities711973577572
Ratio Analysis
Ratio analysisFormulaeYear 2017 (AUD in million)Year 2018(AUD in million)Year 2019(AUD in million)
Current ratioCurrent assets/curent liabilties 1.771971.6517171.586667
Quick ratio Current assets-inventories/current liabilties 1.3939391.2943241.246
Gross profit marginGross profit/ net sales 0.70.450.34
Net profit marginNet profit/ net sales 0.460.1906670.1306
Return on assetsNet slaes/total assets 0.1404690.4077750.660328
Breakeven point
Breakeven point
Fixed cost3.5
Sales price per unit10
variable cost per unit 6.5
Breakeven point1
Brand canvas
StorySymbolStrategy
NameTom Le GrandStyleCustomised
Perceived statementOur product is the luxurious eye wears that has been made for the people those who belong to the upper middle or higher class.ColourGold and acetateSaleSelling is done by the online marketing
PromiseWe promise to give a high quality of product at a reasonable rate.LogoTOM
GREAT Delivery At the time of delivery, the delivery boy gives the package to the customers.
PersonalityReliable, competent, sophisticated, elegant, flexible and up-to-date
Conclusion
The report involves coming up with the line of selling strategy and market expansion plan for Luxury eyewear in the France including other nations of Europe and Paris as also enlarging operation in other countries.The Tom Le Grand has decided to open a market for the luxurious eyewear collection lovers who are interested to purchase luxurious products.The concept of luxury is old as humanity, and its discriminating understanding will be reflected in this assessment to make the possible definition of rigorous rules towards effective management.
The Tom Le Grand has decided to open a market for the luxurious eyewear collection lovers who are interested in purchasing luxurious products. The eyewear frames would fall under three categories as Fun, Intelligence and Glamour where each category/segment would contain 15 to 20 different frames of several designs offered in different finishes and colors. The operational process of this company requires the understanding of logistics, merchandise and cost control to more items from manufacturing unit to the production facility or physical stores into the hands of customers. The vision of the organization would be to create luxury eyewear identify of the brand among its customers through approachable imaginary storytelling. The eyeglasses will be made with the high-quality material. The Luxury eyewear brand may face the challenges in matching with the standard of quality and brand image that these big firms have created among its customers through retaining them from the long run. The target market of this company are the people those who are young and mostly come from the suburban area of the different countries. The appearance of the product will be sleek, light-weighted and funky that will meet the needs of the customers.The frames that are made by this company are approx. €70 - €200 a pair which is at a range of medium to high price.
Reference list
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This assignment has been focused on the business idea presented by StéphanieLoutfi Le Grand for opening a brand new store of luxurious eyewear brand.The report involves coming up with a line of selling strategy and market expansion plan for Luxury eyewear in Paris that includes several region of Parisalso for enlarging operation in other countries of Europe. Product description and operational procedure of business operation has been provided along with its effective USPof the business in the context to luxury eyewear products that has been helped to define the organization dealing in similar product line with their USPs in the marketplace. Whereas, evaluation of internal and external factors, risk elements that business might face, pricing strategy and selection of valuable partnersin the marketso that business could flourish in the entire market, could also be provided in this unit segment. This will enable readers to understand that for setting a Luxury eyewear business in the competitive marketplace, is not an easy task and it requires lots of prior planning with an effective marketing plan for setup business organization at the subtle, financially growing, stable and sustainable position in the market.
Table of Contents
Introduction5Products6
Operational Procedures 7
Unique Selling Propositions 9
Company Vision and Strategy 11
Competition 14
Target Group 16
Risk Analysis 16
SWOT Analysis 17
Location of Headquarters 19
Business Partners 19
Consulting 20
Marketing Plan 21
Price Strategy 23
Communication Strategy 24
Business Organization 25
The Founder and Director 26
Staff 26
Financial Plan 29
Brand canvas 32
Conclusion 33
Introduction
The reporting unit focuses on offering the business plan for Luxury eyewear undertaking its marketing strategy and business plan. Luxury is in fashion and fashion is for luxury. In the current scenario, luxury is in all place, and marketing and managing individual are regularlyinvestingnew quality terms to luxury. The business of luxury eyewear by Tom Le Grand by StéphanieLoutfi Le Grandcould constitute to qualifying eyewear to luxury through offering massive, premium, true luxury, hyper-leisure and ultra-premium quality eyewear for the group of rich and semi-rich individual who mainly fashion and style conscious and looking for eyewear has to enhance their personality (Kernstock et al. 2017). The concept of luxury is old as humanity, and its discriminating understanding will be reflected in this assessment to make a possible definition of rigorous rules towards effective management.
The mission of the business plan is to provide luxurious and stylish eyewearto customers who wish to augment their physical appearance with eyewear. It has been observed that almost 58% of the population in the France considers wearing eyewear, indicating that this could be a profitable business in the European countries such as Paris and Italy (Okonkwo, 2016). The business will implement target-marketing strategy, communication strategy for the smooth running of business without any concerns from users as well as employees of the organization. The goal of business would provide luxury eyewear to its targeted customers in the market of Paris with the prices that would be convenient for them in the term of standard and quality of the product. For the long-term growth and development of luxury eyewear business of Tom de Grand by StéphanieLoutfi Le Grand in the marketplace, major factors of production with attractive quality and fashionable style towards facilitating uniqueness and differentiation, price design and financial plan will also be discuss in this report.
Products
It is difficult for an organisation to enter into the competitive market where the nature of the market is perfect competition. The StéphanieLoutfi Le Grand has decided to open business by the name of Tom Le Grand has in the market of Paris with luxurious eyewear collection lovers who are interested in purchasing luxurious products. The business wishes to focus on both large and small segment of the luxury eyewear market. In the large segment, it focuses on providing fashionable eyewear that will include lens specks as well as goggles of a wide variety ranging from standard to premium prices. Whereas, in a small segment of business it also wishes to offer contact lens to its customer to also attract customers who are not just interested in specks but looking towards other forms of eyewear to suit their personality. The purpose of business is to provide handmade, high-quality luxury eyewear and sunglasses at mid to high prices. The organization believes that every individual should be able to look fashionable and stylish without spending much of fortune (Kapferer and Valette-Florence, 2018). For every sunglass bought a pair of reading glasses offered at 50% discount. For highly fashionable individuals product offered are of different shape and size including semi-circular, rectangle, circular with iconic and elegant yet trendy look with a differing colour of their choices that are special, precious and classic in appeal and appearance giving luxurious tough to eyewear. However, for semi-fashionable individual eyewear could be of sleek and subtle appearance focusing on Italian customer's preference and needs that they require in their eyewear.
Undertaking these activities,Luxury eyewear business Tom Le Grand by StéphanieLoutfi Le Grandorganization wishes to give tough competition to other brands operating in Europe/Parislike Gucci, BVLGARI, Cartier, Dior, PRADA etc, towards providing extinguished sunglasses and prescribed eyewear under matched-price of customers offering eyewear to evoke high fashion and style with present fashion trend of finest and crafted quality material (Ft.com. 2018). The eyewear frames would fall under three categories as Fun, Intelligence and Glamour where each category/segment would contain 15 to 20 different frames of several designs offered in different finishes and colors.The Tom Le Grand by StéphanieLoutfi Le Grand organization would offer eyewear product in both acetate or plastic and metal frames pre-installing clear polycarbonate lenses as well as offering platforms to customers where they can customize their own specks based on their preferred design for ultimately increasing the variety of luxury eyewear product and making frame selection procedure less stressful and more fun.
Operational Procedures
Operational procedure in luxury eyewear branding of Tom Le Grand by StéphanieLoutfi Le Grand organization and its product expansion in the marketplace would describe the process from manufacturing to the final destination to end-users. It would be a recurring operation towards quality investigation and having control over the business operation. Effective management of operation procedure of business organization is essential towards decision-making process constituting to defining and tracking the development and growth of business in the marketplace. The process requires the understanding of logistics, merchandise and cost control to more items from manufacturing unit to the production facility or physical stores into the hands of customers. Supply chain management process will include the supply of product from its manufacturing unit to transportation segment, leading, shipping and finally transporting it to the destination that would be the physical store in the country to different branches (Boonjing et al. 2015). Outbound shipping cost would be managed by establishing different branches in the country and integrating handmade craftsmanship reducing the cost of over shipping.
Figure 1: Supply Chain Management
(Source: Boonjing et al. 2015)
Tom Le Grand by StéphanieLoutfi Le Grand organization has the option to lead their new businessdone through e-commerce including social media platforms, several site promotions and collaboration with the different companies online store app like Amazon, Flipchart, etc. for sales operation worldwide along with Europe/Paris. The store of Tom Le Grand by StéphanieLoutfi Le Grand organizationwill be designed based on window presentation, music, lighting, consistent store maintenance and having salespersons who areexperienced in selling luxury eyewear product having wider knowledge about the product, its quality and presenting own products image in mind of the customer without defying other company's product.
Figure 2: Retail Value Chain Management
(Source: Boonjing et al. 2015)
The operational procedure would be followed by the available resources in the organisation and the number of works that will help the organisation to produce better products for their targeted customers.Shelves, racks or display would be arranged at angles, straight or in a geometric pattern to produce visual interest of customers in addition to business. Display placement will ultimately increase the visibility of the product, and a unique brand proposition of quality, luxurious yet fashionable product will include the online and traditional form of operational procedure (Sandra, 2016). Under the traditional form of advertising activity, the business product of luxury eyewear will be promoted through pamphlet, hoardings, TV channels, posters etc. Cash handling segment should include electronic cash management and accounting software to help towards proper management of daily sales and revenue generated by the business. Staffs recruitment process by management of Tom Le Grand organizationwill include the selection of employees that are aware with selling tactics and idea helping organization to represent the better product in market ultimately reflecting the strong brand image in the mind of its targeted customers. Retail chains would have own warehouse to stock products merchandise and are also allowed taking the proper procedure to prevent loss of stock and inventory. Managers operating in the business of luxury eyewear product would conduct frequent training and development programs for employees who are mostly sales representative, team members or cashiers to make them aware of advancing business process and allow understanding of the usage of technology for maintaining brand image and quality among its customers.
Unique Selling Propositions
As the brand is launching luxurious item in the market and hence the USP should be set up to the mark that might influence the customers to purchase the product. USP defines advertising effect that has influenced brand preference of customers making the switch from other brands in the marketplace. This will enable luxury eyewear brand to exhibit company services and products to stand out from rival's organization. The USP of Luxury eyewear is to provide high-end fashionable eyewear with trendy and stylish frames matching their personality. The collection appeal would be unmatchable with distinctive and bold glasses for youth and fashionista individual with lightweight frames of better quality material, design and attention to details. Prescribed lenses are checked against certified opticians by the staffs additionally providing customers centric services and care for their eye. However, for doing this, the company have to do proper research about the types of the fashionable sunglasses that are available in the market. In addition to this, the sunglasses must specify that those are made up of good quality of materials so that the client must spend some extra money on these expensive sunglasses that provides them luxurious feelings.Luxurious features like a wide collection of stylish and fashionable yet classic frame, plastic and metal frames with polycarbonate lenses for both prescribed eyewear and goggles along withUV protection lenses of different colour shades etc. are needed to be offered to the customers at specific price range mainly ranging from medium to range cost.
The luxury eyewear brand focuses on entering in the field of eyewear business with an USP of "Let Your Eyewear Speak about who you are". To maintain its USP for longer run establishing successful luxury eyewear business, the organization needs to work on its frame style, material frequently adjusting it to current, and future coming fashion trend in the context of eyewear frames, goggles and meeting the need of changing customers preference about the product (Payne et al. 2017). For providing the line of glasses for women, business could vary itself extensively with other premium brands including different shapes like oval, cat-eye, round, rectangular and rounded eyewear frames. Whereas, in men's frame section it could include masculine rounded edge, square and rectangle frames defining brand image and loyalty of its customers towards the brand.
Company Vision and Strategy
A vision of Tom Le Grand has in the market of Paris is to thrive in the marketplace and strive within potential customer base with providing high-quality, luxurious sunglasses and prescribed lenses/glass or eye contact lenses at medium to high prices even enabling middle-class population of the country to be fortunate to afford luxurious eyewear product. Organization vision would be to create luxury eyewear identify of the brand among its customers through approachable imaginary storytelling.The vision statement of the company should justify the brand name of the organisation and the value of the product among the customers. It will further help the organisation to attract loyal customers in the market.
In addition, in creating a consistent and strong image of the brand through effective market analysis, planning and implementing the strategy for establishing brand loyalty among new and old customers as well. Whereas, the strategy of the luxury eyewear brand are as follows-
To increase customer base especially targeting Europe/Paris customers initially the organization will building the strong association with current style and fashion through viral marketing, amplifying public relation, participating in events and press coverage. Along with this, the organization will promptly be processing return products and shipping order to divide the organizational department into a different segment for the smooth functioning of business operation. Apart from this the organization focus on their investment procedure as well as target and for that the company might invest capital of approximately $10,000 on online marketing for expanding business broadly as well covering country as well (Vander Linde, 2015).
To maximize return on equity by 35% by the end of 2020 also to increase sales by 17% by the end of 2018 the organization is needed to maintain the cost of sales at reasonable and specific prices staying parallel with the vision statement. On the other hand, to create a charitable image of the business and to raise awareness of eye care among un-aware individuals the organization might add the line of eyewear for children by January 2019. By offering other retail stores like shopping malls, Eyewear Hut across urban areas of Europe/Paris, within the next five years the organization might set their milestone to enter in the global market.
Market Segmentation Targeting and Positioning
As per the current market analysis, industry of eyewear in Europe is more focused on the online retail platform than offline stores in the market. The consumers are more concerned about pricing, look and style of spectacles over the quality of the product. It has assessed that changing fashion and outlook of consumers is changing with pace. Thus, a constant innovation over style and texture of spectacles has become one of the priorities. The prime goal and objective of luxury eyewear creation are to enter the European market to expand its business positioning. In the market, consumers try different clothing and wearable products to look more trendy and fashionable. Thus, the company will target men and women with an age group of 20-50 years. It has assessed that the particular group of peoples are more eager to try new look and outfit every day. The frames must be up of plastic or metals, on the other hand, the lenses are made up of polycarbonate material that offers a platform for the customers where they can buy the products of their choice, whether it is a sunglass, eyeglass or contact lenses. The eyeglasses will be made with the high-quality material. Therefore, the company will have to target upper class and middle-class customers. In addition to it, the company will target consumers in London and Paris to attract consumers wish to stay in fashion all the time. It is expected that the company will be able to cove 10% of customers within 3 years of business. The market target for luxury eyewear will include the differentiated market strategy that will assist, in which customers based in Paris will be focused with the tag to "change your fashion every day". Online advertisement campaign will be introduced to reach a maximum number of customers.
Marketing Mix
Product Tom Le Grand has in the market of Paris will introduce product segmented sunglasses, eyewear and eye care through online and offline stores. The product line also includes eye contact lenses; customized lenses, customized spectacles and eyewear related products for its customers in the marketplace. The frames must be up of plastic or metals, on the other hand, the lenses are made up of polycarbonate material that offers a platform for the customers where they can buy the products of their choice, whether it is a sunglass, eyeglass or contact lenses. In the product segmentation, customized spectacles as per style, colour, size as per customer demands can be prepared.
Price In relation to meet the price margin in the European market, company will use customer based pricing strategy. The strategy will help to put the cost price of products lower than the standard price of spectacles available in the market. The company will target to reach 50 cities in the Paris for the online sale of prescribed and luxury spectacles in 3 years. The increase in sales will help to cost cutting of its products by 45%-55%.
Place The Tom Le Grand has in the market of Paris will introduce 10 off stores in Paris and Italy providing online platform for shopping of the lenses and spectacles. The company plans introduce the product in different cities of the Europe within three yearsas part of expansion strategy plan. The customer base once created, the company can enhance its offline stores more to stay in competition in the European eyewear industry.
PromotionThe online advertisement and road shows are two basic focused promotional activities that help to introduce and create a brand identity for the customers in the France. It has evaluated that the company engage advisement capping through social media, search engine optimization and trade show to increase the attention of consumers.
Competition
Competition analysis would help the organisation to measure its future market also it will help to generate a possible market for the customers so that customers could get better options than other brands.The business could get tough competition from brands like PRADA, Gucci, BVLGARI, Dior, Cartier who also operate their business in the same field and they are old to this market field. The Luxury eyewear brand may face the challenges in matching with the standard of quality and brand image that these big firms have created among its customers through retaining them from a long run. However, for doing this, the company have to do proper research about the types of the fashionable sunglasses that are available in the market. In addition to this, the sunglasses must specify that those are made up of good quality of materials so that the client must spend some extra money on these luxurious sunglasses that provides them luxurious feelings. As the rival company holds large market share and operating in the market from the longer period, they have much knowledge over customer's preference and market trends where it could rise as the threat to new business as they have the average knowledge and are new to the marketplace (Ft.com. 2018).
Figure 3: Market Share of Luxury Eyewear Companies in Paris
(Source: Ft.com. 2018)
Apart from these, the business could mitigate these challenges through implementing effective marketing plan and strategy and undertaking promotional and advertising activity through social media platform to reach targeted fashionista and style conscious individual mostly younger generation within short duration with attractive USP and value proposition.
Target Group
The target group should be luxurious customers who should have enough disposable income to spend on the offered product in the market including the urban and suburban region of Paris, that constitute to higher disposable income from higher and upper-middle class individuals/community/group. For expanding the customer base of Tom Le Grand has in the market of Paris, the branding process will mainly due to attract or target younger group generation including both men and women eyewear who are mostly interested in fashion and have knowledge of style, love to dress accordingly keeping their preference of eyewear up-to-date with changing the trend in fashion.
Risk Analysis
Risk analysis factor will help the organisation to identify the uncertainty that might arise in the future market that might further help the organisation to calculate its market growth rate. The Tom Le Grand has in the market of Paris could face several risks while being new to the marketplace in the field of luxury eyewear business. There could be capability risk where start-up or new business like luxury eyewear fails to scale their capability of business on a timely basis and required level. Other risks would development where business fails to develop its services and products on scheduled time within defined specification and budget increasing the cost debt and design risk where business not capable to meet the required service and design of product based on performance standard defaming the brand image and their effectiveness among potential customers (Salamzade and KawamoritaKesim, 2015). In addition, there could also be a risk to funding restricting business proceeding and economic life of product where eyewear product life is shorter than it has been projected and anticipated organically by the business brands. Failure in maintenance and management will also arise as risk if the business brand fails to manage its staff/team that lack experience and skills set to execute knowledge in start-up business plan ultimately poorly able to maintain company's assets and resources at appropriate levels increasing much business operational costs.
Sometimes, actual market demand for services, products unable to yield projected sales volumes ultimately contribute towards demand risk, and failure to adapt to growing technology could arise as the challenge if management of the business is not aware of its effective utilization. Considering business risk, founders and directors of Tom Le Grand has in the market of Paris could be able to identify negative factors influencing business profitability and growth in the marketplace. Thus, it is essential for Luxury eyewear to analyse these risk at regular interval of time to eliminating and encountering risks enchasing business functioning and providing unmatchable quality of eyewear frames, sunglasses and prescribed lenses.
SWOT Analysis
SWOT analysis will help the luxury eyewear brand to know its strengths, weakness, opportunity and threat in the marketplace that could be from the rival company as well as due changing market and customer's preferences. The strength will allow the business to maintain itself in the market whereas, and weakness could alter business operation decreasing sustainable profit margin and threatening luxury eyewear business to get extinguish from the market (Eskola, 2016). Identifying the opportunity will allow business to flourish and expand in the market even being new to it. This will even help the learner to define the current position of the organisation in the targeted market based over which the future market will be calculated.
Strength
·Iconic Branding
·Clear polycarbonate lenses
·In-house French design
·Strong luxury look and design
·Light-weight frames
·Fashionable, stylish yet classic frames with different shapes and color shades for men and women
·High quality, hand-crafted frames and sunglasses
Weakness
·Weak customer base
·New to marketplace
·Less number of Employees
·Average awareness in luxury eyewear sector
·Low visibility of product in the marketplace
·Lack of brand collaboration or association with desirable luxury eyewear company's
Opportunity
·Enhance customer base through increased visibility of luxury eye-wear product through social media platforms, traditional marketing and visual merchandising
·Create brand loyalty among younger customers who are more fashion-centric
·Increase the number of employees
·Merger and Acquisition with big brands
·Expanding knowledge over Luxury eyewear other products available in the marketplace Threat
·Sacrificing exclusivity for visibility
·Compromising tradition with the objective of younger target
·Threat of cloning
·Better and old luxury eye-wear organization in the market giving tough competition like Gucci, BVLGARI, Cartier, Dior, PRADA
·Changing fashion trends and customer preference
Table 1: SWOT Analysis
(Source: Eskola, 2016)
Location of Headquarters
The most important part of the establishment of the business is the setting of the headquarters and to decide the location of the headquarters in Paris is the most challenging work. The reason behind this is that most of the countries in Europe offer equal opportunities as well as advantages to those who are willing to start up a business. However, it is the best option to establish the headquarters in the Paris as it has attracted a large number of foreign investors. This is because the regulations of the Europe are business friendly, and the environment is thriving for the growth of the business.
The European countries are the most advantageous country that offers various types of benefits. These are highly skilled workers, friendly environment for business, competitive tax management, and worldwide links and excellent infrastructure of ICT and proper support for all types of innovation. All of these benefits make the France as the appropriate location for the headquarters of this project.
Business Partners
For this company, the media partners, e-retailers and commercial websites must be selected as the business partners. These partners will provide various types of benefits to the company. Those are it can help in gaining direct exposure to the company; help in increasing the awareness of the brand, it will enhance the profile of the eyewear of this company, the promotion of logo will also provide benefit to the company and helps in generating the quality of the product. Further, there are also some promotional benefits from the commercial websites as these websites will give proper recognition to the company by providing a direct link to the company (Jussila et al. 2014). The e-retail will help the company by providing access to the market very easily, online sale of the products will help in removing the necessity of the retail shops as well as the staffs those are facing the customers. All of these services will increase the ability of the eyewear company to target its desired market as well as the customers.
Consulting
There are many businesses of eyewear in Europe, so before starting a new company, it is very important to consider some of the points. Those points will help to set up the foundation of the business in such a way that will lead to success. Before starting the business of eyewear, the company must do proper market research for targeting the focus groups. Next, the company must make a plan for the business. After that, the financial planning of the business must be decided (Lovelock and Patterson 2015). Then the developing of the product is done that is the luxurious eyewear by maintaining the quality of the product. A proper structure for the business is chosen for which the registration is needed for the business. Next, the company had to choose the accounting system for setting up the rates for that the company must manage the budget and files the taxes of the company. The setting of the location is done for the business and to getting a team of capable staffs by recruiting proper members for employees. Then the most important part is the promotion of the small business. Finally, the business must be grown by targeting a new type of market, expanding the offerings and various other strategies (Lovelock and Patterson 2015). All of these attributes will help the company establish a new company in the market.
Marketing Plan
As the company Tom Le Grand is planning to start a business of luxurious eyewear, it must do the marketing strategy as per the needs and the habits of purchasing of the customers. Different customers in the markets have different needs, so it is very necessary for the company to satisfy the needs of the customers. For this, the process of segmentation, targeting and positioning of the market is necessary for the marketing process (Scarborough 2016).
Segmentation - For the establishment of a company selling the luxurious eye wears segmentation can be done on the following basis:
Demographic - For this company Tom Le Grand, the market must be targeted both on the male and female customers from the age of people from 18-40, those who are from the higher-middle class to upper class. The customers can be working professionals, students or sportsperson. The income of the family must be more than 3-4Lakhs p.a.
Geographic - according to this the targets include African, Asian, and American populations. Along with then, there are the peoples those who are living in the areas that are mostly exposed to the sun, and they had to wear the sunglasses very often.
Psychographic - Men and women in this group mostly make their purchases for reflecting their status, lifestyles as well as to flaunt their attitudes.
Behaviouristic - This group specifies those men and women those who are employed and put importance upon their self-expression.
Targeting - The Company Tom Le Grand must now narrow down the target to the people those who are young and mostly come from the suburban area of the different countries. The customers might be a male or female, but they must belong to the family those who have the household income from upper middle class to higher class (Scarborough 2016).
Positioning - the positioning of the sunglasses, lens and other types of eye wears of this company must be done on the basis of some product, customers and the needs of the customers. The products of this company must be of high fashion, classic and trendy because the target market consists of the luxurious customers. Once the customer buys the product, these provide them with a stylish and sleek look and will match any of the outfits for any type occasion. The company must tend to maintain their quality so that the customer will buy these products for the next time as an iconic brand that gives the customers a classy look along with the trendy vibes.
Marketing Mix
For the complete marketing plan, the company must focus on the marketing mix which contains 4Ps, i.e. product, price, place and promotion.
Product - The frame of the eyewears must be made in such a way so that each and every people could get their choice of accessory. Each frame must offer various types of colours as well as designs. The products are a different shape that includes semicircular, rectangle, circular with iconic and elegant. The appearance of the product will be sleek, light-weighted and funky that will meet the needs of the customers (Fine 2017). The frames must be up of plastic or metals, on the other hand, the lenses are made up of polycarbonate material that offers a platform for the customers where they can buy the products of their choice, whether it is a sunglass, eyeglass or contact lenses. The products must be different from the others so that the customers must think of this brand each time they want to buy eyewear. The packaging of the eyewear must be very simple but elegant. It must come with a black round edge box which should have only the logo of the brand on the top of the box.
Price - the price of the product must be remarkably below the price of its other competitors but must be of high range than the eye wears those are not branded or luxurious. The pricing of the products is not only decided as an accessory to the people, but it must be kept in mind that some people will also buy the eyeglasses (Fine 2017). The plan must be kept to make the glasses available that ranges can be afforded by the people of the upper middle class to higher class.
Promotion - the strategy of promotion will include the advertising and program of sales. The advertisement must be done with the help of various local media such as the newspaper, television channels as well as the radio. In addition to this, the advertisement can also be done with the help of social media. This could be maintained especially through the online websites such as Facebook, Twitter, Instagram and other online portals (Fine 2017).
Place - while selling of the eye wears such as sunglasses, eyeglasses or contact lens the selling must be done mostly through online. The reason behind this is it helps the company to sell its products on the basis of the international market all over the world. The customers will be able to make an online delivery, and the products will be delivered to them in a time of 3-5 weekdays (Fine 2017).
Price Strategy
The products of this company can be differentiated on the basis of the price (Beracha and Seiler 2014). The frames of these company are of a high range of price as the customers include the people those are having a high level of income and have disposable income which they can spend on buying luxurious as well as branded eyewear. The frames that are made by this company are approx. €70 - €200 a pair which is at a range of medium to high price. The price of the eyewear must be marked under the name of its brand so that the customers can easily recognize it. For doing a good marketing process to the audiences, the price of the eye wears must be kept in the middle of the retail scale. The range of the price for the sunglasses is very realistic according to the target customers (Huang and Sarigöllü 2014). The competition of this company with its rivals will be done on the basis of the quality of the product and differentiation. So the company must sell various types of eye wears according to the need of the customers. For instance, the company must have different types of sunglasses as the choices of the customers. However, for doing this, the company have to do proper research about the types of the fashionable sunglasses that are available in the market. In addition to this, the sunglasses must specify that those are made up of good quality of materials so that the client must spend some extra money on these luxurious sunglasses that provides them luxurious feelings. The group of customers those who are being targeted will always choose to buy these luxurious eye wears that will suit their style and maintain their status (Huang and Sarigöllü 2014).
Communication Strategy
Fig 5: 7Cs of communication strategy
(Source: Finne and Grönroos 2017)
The communication strategy is also an important part of starting a business because for any type of work there must be proper communication between the management and the employees of the communication. So the message that is sent to must be complete and can be easily understood by the receiver. The message that is sent must be concrete and is supported by facts or figures (Finne and Grönroos 2017). While sending any type of message the sender must maintain courtesy so that it may not harm the sentiments of the receiver. The language of the message must be correct and must not contain any type grammatical errors or wrong verb. The message must be clear and consist of short, concise but correct as well as concrete sentences. The message must give emphasis on a particular goal at a particular time. During any type of conversation, the target group must be taken into consideration, and the message must be delivered according to them. The message must not be stated as it is biased and must not include the terms that show disrespect for the recipient (Luxton et al. 2015).
Business Organization
Fig 6: Organizational Structure
(Source: Allen and Kraakman 2016)
A hierarchy is very important for the company as it describes the relationship between the managers and the subordinates from the top level to the bottom that consists of team members. The structure of the business organization consists of the CEO as the head of the organisation (Allen and Kraakman 2016). He mainly manages four different departments that are the marketing department, finance department, operations department and the department of human resource. The managers of these levels then look after the team leaders who then take care of the work that was done by the members of each team individually. Managers operating in the business of luxury eyewear product would conduct frequent training and development programs for employees who are mostly sales representative, team members or cashiers to make them aware of advancing business process and allow understanding of the usage of technology for maintaining brand image and quality among its customers (Allen and Kraakman 2016).
The Founder and Director
Stéphanie, a young French designer had developed the original idea for creating the eyewear brand. This company was born from the association made by the oriental jeweller that is situated in Dubai along with the French craftsman who builds the eyewear. The Tom Le Grand has decided to open a market for the luxurious eyewear collection lovers who are interested in purchasing luxurious products. The organization believes that every individual should be able to look fashionable and stylish without spending much of fortune. It focuses on providing fashionable eyewear that will include lens specks as well as goggles of a wide variety ranging from standard to premium prices.
Staff
The staff planning of the company will include with proper recruitment and selection process. Most of the staff members require will be front-line employees for the company. Thus, then there will be the requirement of skilled and experienced staffs will be required (Greer et al. 2016). It was assessed that the about 50 employees would be recruited for the job roles in the different store to be introduced in the Paris by Luxury eyewear. There could be capability risk where start-up or new business like luxury eyewear fails to scale their capability of business on a timely basis and required level. The staff role requirement is evaluated as follows:
Staff RolesReporting Skills required Staff number Training durations
Store manager Owner Decision making, communication, analytical, strategic skills22 months
Accountant/ cashierStore managerAnalytical skills, cash handling skills 52 months
Store team leader Store managerMotivational skills, communication skills, time management skills, excision making skills22 months
Front store staff Team head Communication skill, decision making skill82 months
Back store staffTeam head Communication skill, decision making skill82 months
Online sales staffTeam headCommunication skill, sales skills, decision making skill82 months
Online store executivesOwnerCommunication skill, sales skills, decision making skill, decision making 52 months
Customer service headManager Motivational skills, communication skills, time management skills, excision making skills 12 months
Customer service staffsTeam headCommunication skill, sales skills, decision making skill, decision making 52 months
Online IT professional Manager Motivational skills, communication skills, IT skills, time management skills, excision making skills32 months
Financial Plan
Profit and loss account
Profit and loss Account Year 2017 (in EUR)Year 2018 (in EUR)Year 2019 (in EUR)
Sales 100030005000
Cost of sales30016503300
Gross profit 70013501700
Expenditures
Administrative 506685
Marketing and operational 808999
Operating expenses 8090102
Rents and rates 9095105
electricity 608895
Insurances 6088102
Salaries and wages 405665
Total operational expenses 2407781047
Net profit 460572653
Balance sheet statement
Balance SheetYear 2017 (AUD in million)Year 2018(AUD in million)Year 2019(AUD in million)
Assets
Current Assets
Cash equivalents 500520530
Amount receivables 560500550
business inventories 460477489
Business inventory499510511
Other assets (current)320350300
Total current assets 233923572380
Fixed Assets
Plant, properties and equipments 120013201440
investments and equity 156016001650
Company goodwill 202020802102
Long term assets
Total assets711973577572
Liabilities
Current liabilities
debt short term 300320330
payables 450489510
liabilities accrued 250288310
revenue differed 320330350
Total current liabilities 132014271500
Fixed liabilities
Long term Debt 201020562055
Long term liabilities 175017801800
Loans and advances 203920942217
Total liabilities711973577572
Ratio Analysis
Ratio analysisFormulaeYear 2017 (AUD in million)Year 2018(AUD in million)Year 2019(AUD in million)
Current ratioCurrent assets/curent liabilties 1.771971.6517171.586667
Quick ratio Current assets-inventories/current liabilties 1.3939391.2943241.246
Gross profit marginGross profit/ net sales 0.70.450.34
Net profit marginNet profit/ net sales 0.460.1906670.1306
Return on assetsNet slaes/total assets 0.1404690.4077750.660328
Breakeven point
Breakeven point
Fixed cost3.5
Sales price per unit10
variable cost per unit 6.5
Breakeven point1
Brand canvas
StorySymbolStrategy
NameTom Le GrandStyleCustomised
Perceived statementOur product is the luxurious eye wears that has been made for the people those who belong to the upper middle or higher class.ColourGold and acetateSaleSelling is done by the online marketing
PromiseWe promise to give a high quality of product at a reasonable rate.LogoTOM
GREAT Delivery At the time of delivery, the delivery boy gives the package to the customers.
PersonalityReliable, competent, sophisticated, elegant, flexible and up-to-date
Conclusion
The report involves coming up with the line of selling strategy and market expansion plan for Luxury eyewear in the France including other nations of Europe and Paris as also enlarging operation in other countries.The Tom Le Grand has decided to open a market for the luxurious eyewear collection lovers who are interested to purchase luxurious products.The concept of luxury is old as humanity, and its discriminating understanding will be reflected in this assessment to make the possible definition of rigorous rules towards effective management.
The Tom Le Grand has decided to open a market for the luxurious eyewear collection lovers who are interested in purchasing luxurious products. The eyewear frames would fall under three categories as Fun, Intelligence and Glamour where each category/segment would contain 15 to 20 different frames of several designs offered in different finishes and colors. The operational process of this company requires the understanding of logistics, merchandise and cost control to more items from manufacturing unit to the production facility or physical stores into the hands of customers. The vision of the organization would be to create luxury eyewear identify of the brand among its customers through approachable imaginary storytelling. The eyeglasses will be made with the high-quality material. The Luxury eyewear brand may face the challenges in matching with the standard of quality and brand image that these big firms have created among its customers through retaining them from the long run. The target market of this company are the people those who are young and mostly come from the suburban area of the different countries. The appearance of the product will be sleek, light-weighted and funky that will meet the needs of the customers.The frames that are made by this company are approx. €70 - €200 a pair which is at a range of medium to high price.
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