Digital Transformation in the PLM domain - distrib.pdf
Business Plan: Lacey Couture Designs
1. Lacey Couture Designs Business Plan
21 July 2013
Copy A.1
Disclaimer of Confidentiality
This document is for information only and is not an offering for sale of any securities
of the company. Information disclosed herein should be considered proprietary and
confidential. The document is the property of the Lacey Couture Company and may
not be disclosed, distributed, or reproduced without the express written permission
of the Lacey Couture Company.
Contact
Lori Tantawi
2554 Holiday Dr., New Orleans, LA 70131
544-253-8790
lori.tantawi@yahoo.com
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MISSION STATEMENT
“Lacey Couture Designs is a company that is focused on providing one of a kind,
special event jewelry and accessories. Our couture jewelry and accessories are
never duplicated and are competitively priced with off the shelf costume jewelry.
Every piece is a handmade work of art designed and constructed with exceptional
care and quality. We are trendsetters, and we present styles that are flashy, creative,
and unique and attention grabbing. Our company aims to become a regionally
recognized brand name, capitalizing on the sustained interest in trendy fashion
jewelry and accessories. Our goal is moderate growth, annual profitability, and
maintaining their uniqueness and style.”
Lori Tantawi
President, Manager and Designer of Lacey Couture Designs
TABLE OF CONTENTS
3. 3
Company Description pg. 6
Industry Analysis and Trends pg. 9
The Target Market pg. 13
The Competition pg. 16
Marketing Plan and Strategy pg. 21
Operations and Management pg. 25
The Financials pg. 33
Appendix A: Finance Charts pg. 35
Appendix B: Technology Plan pg. 40
Appendix C: Product Photographs pg. 41
Appendix D: Market Research pg. 45
Lacey Couture Designs
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Handmade Couture Fashion Jewelry
Quick Facts
Seeking: $9,000 in equity financing.
Company Profile: Costume/Fashion Jewelry sector with 1 employee and organized on 1FEB2013
Contact Information: www.laceycouturedesigns.com; Lori Tantawi 2554 Holiday Dr., New Orleans,
LA 70131; 544-256-7856, lori.tantawi@yahoo.com
Investment Information: current funding is $4,000 from principle. Seeking $9,000 in equity. ROI of
50% a year
Management: Lori Tantawi, mentored by Anthony Patton, MBA and advised by Perfecto Boudillo,
owner Exagere’ Art Gallery and Furniture Boutique
Key Financials: $9,000 is needed within the next 7 months.
Start up cost is $5,600
Working capitol need is $3,000
Positive cash flow of $3,000 after first month of operation
Profit potential $246,000 in 3 years
Business Summary: We make handmade, trendy jewelry pieces that are never
duplicated and that are competitively priced with off the shelf costume jewelry. I’m
presenting an investment opportunity for the cost of $9,000.
Customer Problem: Consumers want one of a kind statement jewelry pieces that
provide glitz and glamour with out the big price tag. They want to be able to update
their jewelry style with the new trends in an affordable way.
Product: We provide affordable, never duplicated, handmade statement jewelry
that can turn a 400% or more net profit per piece. Each jewelry piece takes
approximately 3 hours to make, and cost about $30 in supplies. These pieces sell, on
average for $250-$375 each.
Management: Lori Tantawi is the manager and owner of Lacey Couture Designs.
She’s an international model and jewelry designer, a artist, actress and self taught
fashion designer. She’s a retired US Army CPT with a undergraduate degree from the
United States Military Academy and a graduate degree in Entertainment Business
from Full Sail University. She’s also a production assistant and event planner.
Target Market: 21 to 34 year-old female tourist and locals that are employed and
have a extreme interest in current fashion trends, and/or women involved in
pageants, modeling, styling, that can commute by public transportation and/or has
internet access, with a household income of $40,000-$120,000 per year, and visit, or
reside in the greater New Orleans area.
Sales/Marketing Strategy: The sales process consist of inside, outside on online
sales. Inside sales will be generated through the Art Gallery and outside sales will be
conducted through special events. We will also increase brand awareness of Lacey
Couture Jewelry designs by implementing a digital marketing campaign that will
entice customers to come to the Gallery, special events and visit the website and
ultimately share information about the brand. Purchases are paid in full at the time
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of purchase. The point of sale system will be online through PayPal, or in person
with cash or credit card.
Business Model: Once a jewelry piece has been made, the designer determines the
sale price, and a image and description of the piece is added to the digital marketing
campaign, and its inventoried and added to the Lacey Couture website, or to the
Exagere’ Art Gallery store front for sale. All items purchased are wrapped in the
signature Lacey Couture box. Purchases must be paid in full before the item is
processed for shipping or taken out of the gallery.
Competitors: Our direct competitor is African-American hair and beauty supply
stores. There are over 150-beauty supply stores in the New Orleans area. The pieces
are large and very flashy, and are purchased directly from a wholesale distributer
and are sold at a high mark-up price. Our indirect competitor is websites such as
Etsy.com. The site offers access to thousands of jewelry designers that sale their
handmade pieces from carrying price ranges.
Competitive Advantage: Our pieces are large, flashy and never duplicated. Each
piece is packaged in high quality signature boxes that are signed by the designer at
the time of purchase. We also offer a customization service and can also bead gowns
and formal attire. Each purchase comes with a free program to repair jewelry that
was bought within 3 months. The jewelry is sold in the historic district and is
considered artwork, and therefore customers do not have to pay taxes on their
purchases. We are also producing a reality TV show that will feature Lacey Couture
jewelry. This show will air on Lifestyle and Bravo.
In Dollars Year 1 Year 2 Year 3
Net Sales $154,948 $239,286 $392,889
Expenses w/COG $59,772 $61,472 $65,552
Profit Before Taxes $80,965 $141,803 $245,431
LACEY COUTURE DESIGNS
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COMPANY DESCRIPTION
Lacey Couture Designs is a sole proprietorship that sells fashion Jewelry and
accessories. The company is based in New Orleans, LA that provides couture jewelry
and accessories.
Business Concept
In the glamorous world of fashion and beauty, women are constantly seeking ways
to stay current with trends while standing out as an individual. Fashion jewelry
trends change and grow along with the designer fashions that are being sent down
the catwalk. There is a increasing demand to provide these designs at a affordable
price. Lacey Couture Jewelry will meet this demand by providing custom jewelry
designs that are never duplicated, affordable and trendy.
What makes Lacey Couture Jewelry unique? We make one of kind pieces that are
never duplicated and that are competitively priced with off the shelf costume
jewelry. Every piece of jewelry is also a work of art and can’t be found anywhere
else. All pieces are handmade with exceptional care and quality.
Lacey Couture Jewelry will be available at Exagere’ Couture Art Gallery and
Furniture Boutique and online at exagere.com. This gallery is located in the French
Quarter in New Orleans, LA and will attract the cultured business travelers, tourists
and middle to late aged professionals needed to support the jewelry sales. Lacey
Couture Jewelry is already on sale and is continuously promoted through email
mailings, special event invitations and target advertising to the surrounding hotels
and venues.
Products and Services
Lacey Couture Designs is a jewelry making service that specializes in couture
jewelry and accessories for special events. Our jewelry pieces are made with
Swarovski element gemstones, beads and crystals. All the materials are hand
selected for maximum shine and brilliance. Each piece sparkles and shines even in
low lighting. We provide custom, non-duplicated jewelry and accessories for prom,
weddings, pageants, formals ect. Lacey Couture also provides a consultation service
that will allow customers to help design their own jewelry and/or accessories. The
Lacey Couture Deigns line currently consists of 18 jewelry pieces. We anticipate
releasing a new line consisting of 10 more pieces every month, starting next month.
In the second year of this plan, we anticipate introducing a custom gown/garment
beading service.
Average Cost of Lacey Couture Designs Jewelry
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Only the larger pieces are sold on location in the Exagere’ Art Gallery. This is due to
the fact they all pieces sold from the gallery are subject to a 40% consignment fee.
The smaller pieces are sold online or by direct contact. Specialty pieces are also
made that can range in cost from $300-$600. These pieces are larger and are
designed for affluent older women, and are therefore also sold on location at
Exagere’ Gallery.
Patents and Licenses
Lacey Couture will secure a trademark for the brand name, and a wholesaler license
so that they can have access to the entire wholesaler network.
Business Location
Lacey Couture Designs operates out of the owners home office located at 2554
Holiday Dr., New Orleans, LA. Exagere’ Couture Furniture Boutique and Art Gallery
is located at 227 Dauphine St, New Orleans, LA and serves the entire Orleans Parish
area. Lacey Couture Designs are designed and produced at the owners home office
and will be available for sale at Exagere’ Couture Furniture Boutique and Art Gallery
and online.
Developments to Date
Lacey Couture Designs was founded in October 2012 by Lori Tantawi, and the
company began designing and selling jewelry and accessories for Exagere’ Couture
Furniture Boutique and Art Gallery in February 2013. In March 2013, Lacey
Couture Designs owner and designer, Lori Tantawi, entered into a partnership with
the Exagere’ gallery owner Perfecto’ Boudillo. The pieces were initially made for
wearing in international pageants in 2012. In April 2013, Lacey Couture Designs
were featured in a T.V. News broadcast and in a runway show that was produced in
conjunction with CBS. The jewelry will also be featured in a new reality show called
“Southern Couture” which is set to air on the Bravo and Lifestyle networks. The
show is centered on the Exagere’ Gallery, and follows the life of the owner, Perfecto
Boudillo and his partners. As of May 2013, Lacey Couture Designs has sold 8 pieces
and turned a profit of 50%.
Legal Status and Ownership
unit price my cost gross margin per sale
ear rings SM $48 $12 $36
Ear rings LRG $80 $24 $56
Necklace SM $140 $40 $100
Necklace LRG $200 $80 $120
E/N set SM $120 $32 $88
E/N set LRG $260 $100 $160
Bracelet- Cuff $80 $32 $48
Bracelet- other $48 $20 $28
Head Piece-chain $40 $12 $28
Hair jewelry-Pony T $60 $12 $48
TOTALS per collection $1,076 $364 $712
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Lacey Couture Designs, will be a sole proprietorship in the state of Louisiana,
licensed to do business in Orleans Parish, Louisiana. The owner, Lori Tantawi, owns
100% of the business. The company will secure a U.S. trademark to the name “Lacey
Couture,” which will be used on its logo, “Lacey Couture Custom Designs”. Lacey
Couture Designs has entered into a one-year, non-exclusive consignment agreement
with Exagere’ Couture Furniture Gallery and Art Boutique, the largest gallery
servicing the French Quarter and greater New Orleans area. Lacey Couture is willing
to offer 20% ownership to investors.
Legal Name: Lacey Couture
DBA: Lacey Couture Designs
Brand name “Lacey Couture Custom Designs”
Domain name: www.laceycouturedesigns.com
Financial Concerns
The overhead cost associated with the business is very small and credit has already
been established. The main financial concern is that the profit margin might have to
decrease in order to build up a local customer base and become more competitive.
This concern is small due to the fact that profit margin is mostly based upon tourist
and local events. Also the clientele that’s exposed to the jewelry in the Exagere’
gallery are from high-end hotels such as the Ritz Carlton and represent a higher
income bracket. The amount of debt that will be carried will be about $2000 dollars.
This is controlled through effective use of current inventory.
INDUSTRY ANALYSIS & TRENDS
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Lacey Couture Designs is well positioned to take advantage of the significant
opportunities presented by the expanding costume jewelry industry. As large
statement pieces become trendier, Lacey Couture has been able to take advantage of
this trend by offering better-designed and more affordable pieces. With the low cost
of materials and the proper design knowledge, Lacey Couture has been able to
create a solid place for custom made, non-duplicated, trendy jewelry. Economic
changes have caused consumers to choose more affordable costume jewelry over
the highly priced “real thing”. According to city-data.com, the median household
income in New Orleans, LA is $43, 362. With a lower median household, Lace
Couture can capitalize on the need for affordable jewelry. Lacey Couture is posed to
position itself as a competitor within the local, and regional marketplace as a
provider of statement, gemstone jewelry.
According to the U.S. Census Bureau, Lacey Couture falls into NAICS 448150:
Clothing Accessories Store
Compared to the 2008-2012 US GDP growth rate of 1.7, the costume jewelry
industry is growing significantly. This is due to an increasing need for more
affordable jewelry as consumers are cutting back on spending.
Industry Maturity
The jewelry market is currently expanding and this growth rate is giving many
business owners the opportunity to offer lower priced products in a market where
luxury items normally dominate. The risk associated with this is a potential flooding
of the market of low-end retailers that offer low prices, but decrease the overall
value of the product. Lacey Couture will mitigate this by offering exceptional,
consistent high quality products.
Current market leaders such as chain retail stores and major department stores are
expanding their fashion jewelry departments, however these areas are very large
and they often carry pieces months behind the current trends.
In this growing market Lacey Couture will establish itself as fashion jewelry
provider that always provides trendy, flashy, high quality pieces at bargain prices.
Our products range from jewelry and accessories and will have the opportunity to
grow to fashion apparel and custom beading and embellishments. Long-term
customer loyalty will be maintained through a continuous marketing campaign and
customer rewards program. The foundation of our loyalty program will be customer
service and product quality.
Within the regional market, Lacey Couture’s largest competitors are:
Rainbow Fashion and Accessories, located on Canal St, New Orleans, LA
(www.rainbowshops.com)
Assessory Wholesale, located on River Rd, New Orleans, LA
(www.awnol.com)
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Antiques, Arts, Collectables, located on Royal St, New Orleans, LA
(http://www.antiquesartcollectibles.com)
Costumes, Carl Mack Presents, located on Dauphine St, New Orleans, LA
(www.carlmackpresents.com)
Financial Patterns and Figures
Currently, retail stores and major department stores are selling small costume
jewelry pieces at very high markup rates. Stores such as Macy’s and Charlotte Rouse
sell jewelry for $15-$30+, however the same items can be purchased in bulk from a
wholesaler for $.20-$2.00 per piece (minimum purchase of 6 items required). Lacey
Couture Designs buys the items in bulk, a uses them to re-create bigger, flashier
pieces.
Competitive Advantage
Lacey Couture Jewelry Designs are located at the Exagere’ Art Gallery. Exagere’ is
over 13,000 square feet of multi level space located in the heart of the French
Quarter. We are one block from Bourbon Street and a few hundred feet from the
Ritz Carlton and other prestigious hotel. With in feet from our door we have covered
valet parking and a public parking garage. The gallery hosts the only VIP nightclub
venue that caters to celebrities, athletes and VIPs. With exclusive contact list
containing celebrities, local athletes, we have access to high profile events and
clientele. The gallery also host events that incorporate fashion, art, music and
theater and draw crowds of thousands of people. A reality show called “Southern
Couture” is currently in production and centers around events conducted at the
gallery. This show is set to air on Lifetime and Bravo and will feature the artwork,
designers and owners of the gallery.
The website list every artist that is featured in the gallery as well as a bio and
picture. Customers can also arrange VIP visits ad special showings. Every service
offered by the gallery is listed on the site, as well as pictures from past events and
celebrations. All of our artwork and designs are one of a kind and prints and
duplicates are not made. Since we are located in the historic district, our customers
don’t pay taxes on the items they purchase from the gallery.
Industry Overview
Real Jewelry
2009 10% decline
2010 2% growth
2011 10% growth
2012 6% growth
2012-2017 11% projected growth
Costume Jewelry
2012- 2017 4% projected growth
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The overall jewelry market is fragmented in that no single company controls more
than 5% of the costume jewelry market. Major competitors in the US costume
jewelry market make up 21% and the other 79% is made up of small independent,
jewelry only retail stores. The costume jewelry market is ruled mainly by current
trends.
Trends are constantly changing and a specific style that’s “in” today, might not be
“in” the next day. This, along with the desire to remain trendy on a budget, has
caused consumers to spend disposable income more wisely. In comparison with real
jewelry styles, costume jewelry is relatively cheap, and therefore appeals to younger
consumers. Flashy statement pieces, retro designs and glamour pieces are also in
high demand.
Also used for special events such as weddings, proms, balls and pageants, costume
jewelry is in high demand. Sold year round, faux pearls, rhinestones and statement
pieces are in demand. Well-made costume jewelry allows consumers to purchase on
a budget and remain up-to-date with all the latest trends. Costume jewelry is sold
off-the-shelf in all major retail stores such as Charlotte Rouse, Forever 21, Wal-Mart,
and Target. Since fashion jewelry is in such high demand, major retail stores such as
Bloomingdale, Macy’s and Dillard’s are displaying more costume jewelry.
Barriers to Entry
There are numerous clothing and accessories stores located within blocks of the art
gallery. Not only do these stores target part of my target market, but they also have
the advantage of selling clothing. The convenience of getting accessories along with
an outfit in one location is a advantage. These stores are also well established and
have multiple chain locations throughout the area. Canal St is located two blocks
away from the art gallery and is a tourism attraction for shopping.
Long-Term Opportunities
The long-term goal for Lacey Couture is to establish a consignment relationship with
some well-known retail stores. Through this relationship, Lacey Couture can offer a
custom line of jewelry for each store. These pieces would not be as flashy or as big
as the pieces offered in the art gallery, but they will still be designed with the same
care and quality materials. This will allow Lacey Couture to target younger
consumers in the age group of 16-21. Affordable and still trendy, these pieces will
appeal to younger girls.
Lacey Couture would also like to establish a relationship with local costume store
operators. Located next door to the art gallery, Carl Mack Presents offers Mardi Gras
Costumes and other special event/parade costumes. All of these costumes are
beaded and embellished. Since Lacey Couture plans to start offering a gown beading
service, it would be a great opportunity to do this in conjunction with Carl Mack
Costumes. This would increase exposure for the Lacey Couture brand.
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Lacey Couture will capitalize on the need for trendy jewelry by making flashy
statement pieces and trendy styles that are displayed in an artistic way and are
never duplicated. Each piece will be made using hand selected gems, stones, crystals
and hardware. These items will be competitively priced with off-the-shelf jewelry
that is found in retail fashion stores and major department stores.
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TARGET MARKET DESCRIPTION
Market Description
The costume jewelry market has continued to show growth over the past few years.
According to a report on jewelry industry trends, the jewelry market is expected to
see a 4% growth over the next 5 years. This market is a direct result of the economic
downturn and the affect it has made on consumer spending. We plan to dominate
the market by providing trendy couture costume jewelry at reasonable prices and
by offering the latest trends before our competitors. We will offer designer costume
jewelry and therefore target a large segment of the industry. We plan to increase
brand awareness in New Orleans, LA and saturate the market by offering major
discounts for local events and by gifting pieces to local socialites, professional
athletes, VIPs and celebrities.
A big part of our target market is tourism to the French Quarter. According to a
report by “What’s New in New Orleans”, over US $9 million tourist visits New
Orleans yearly. Also, over 100 events are held at Ernst E Memorial convention
center yearly. According to a report about the 25th Anniversary of the convention
center, the center is the 6th largest in the nation, has an economic impact of $48.1
billion, and over 500,000 attendees come to the convention center yearly.
Market Size and Trends
The costume jewelry industry has seen continuous growth since 2005 and is
projected to continue to grow over the next ten years. The trends of costume
jewelry closely mirror the fashion trends as well as what celebrities are wearing.
In New Orleans, we have year round festivals and parties that are extravagant and
rely upon costumes and over the top accessories and clothing. Mardi Gras, and the
French Quarter Festival are both one the biggest festivals held in the US and draw in
millions of tourist yearly. Formal parties and balls are also held on a continuous
basis and require formal attire complete with jewelry and accessories. These
festivals offer a great opportunity for us to provide tourists and locals with fashion
accessories to go along with their costumes and event attire.
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The urban modeling market, and the pageant, prom and wedding industry will also
be a part of our target. Miss USA (Teen, Mrs., Classic) along with Miss Swimsuit USA
and various independent beauty pageants hold contest in New Orleans. These
industries rely heavily upon costume jewelry and accessories. The prom, pageant
and wedding industries are worth over US $4 billion. Urban modeling, or glamour
modeling, is also heavily reliant upon current fashion jewelry. These pieces are very
large, unique and flashy.
Target Customers
21 to 34 year-old female tourist and locals that are employed and have a extreme
interest in current fashion trends, and/or women involved in pageants, modeling,
styling, that can commute by public transportation and/or has internet access, with
a household income of $40,000-$120,000 per year, and visit, or reside in the greater
New Orleans area.
Education level: some college
Marital or family status: single or married
Fashion forward
Trend Setters
Age: 24-34, and 18-25
Gender: female
Race: All, with a special focus on African Americans
Income: $40,000-$120,000
Target Market:
The primary target audience is females aged 24-35. The audience is educated young
adults with or without children. Alexa analytics of the popular jewelry website
Etsy.com show that the majority of traffic is from 24-35 year old women, who have
some college education, while they are at home. According to the report “Women-
Retail Study”, the second largest group accessed jewelry sites while at work. 49% of
this online shopping was done on Fridays between the hours of 11am to 2pm.These
young professional women are likely to be more financially stable and have time
and the resources to devote time to staying current in trends.
Secondary Market:
18-25 year-old females, with little to no college experience is the secondary market.
75% of this target market shop online while they are at work, in order to pass the
time. 18-25 year-old females are also the second largest group that represents site
traffic of the competitor’s sites.
By targeting both these audiences I can get an advantage by making sure my jewelry
appeal to them. Since the majority of shopping is done at work and out of boredom, I
will make sure that the ads are exciting, compelling and offer great deals. The site is
also user friendly so it will allow the typical woman the 15-20 minutes she will need
in order to shop. Due to the fact that all of my jewelry designs are not duplicated, on
the spot decisions will have to be made, or the buyer will miss out. I can target the
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market by offer great deals on new items that will spur a quick purchase.
Market Readiness
According to The Country Report on jewelry, the costume jewelry market is
expected to grow 4% over the next five years. Major department stores such as
Dillards and Macys have expanded their costume jewelry lines in order to meet the
new demand. Mall kiosks that specialize in costume jewelry have also increased.
The New Orleans area is comprised of designers and stylist that are fashion forward
and trendsetters. According to the New Orleans Event Guide, there are over 65
regularly scheduled formal events and balls in New Orleans. Also New Orleans is the
home of two professional sports teams, The New Orleans Saints and the New
Orleans Pelicans. These arenas are also regularly scheduled tour stops for major
recording artist. The city also host after parties and social events that require
Strategic Opportunities
Fashion forward women are always looking for the next trend and want to be the
first to showcase it. They need styles that are affordable and flashy. They want to
stand out and be able to coordinate their own unique look. Being the only person to
own an outfit or assessor is extremely important and Lacey Couture can meet that
need. Specialty shops that offer flashy pieces are straight from the manufacturer and
are not current with trends. Lacey Couture will be able to hand make flashy pieces
that are current and unique.
Furthermore we will stay ahead of current trends by offering pieces that appeal to
upcoming formals, parties and urban modeling events in the New Orleans area.
Through our extensive list of high-end contacts, celebrities and VIPs, we will be able
to create brand awareness and get our jewelry pieces exposure. Since Lacey Couture
is also a minority partner with Exagere’ Art Gallery, we will be part of the planning
process for all events and projects that the gallery produces. This will give us first
hand access to the affluent women that the gallery markets to.
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COMPETITION
Competition Plan
The jewelry industry is a highly segmented industry. No single company dominates
the revenue production. The U.S. retail jewelry industries consist of over 28,000
specialty stores, and they annually generate revenue of approximately US $30
billion. The main competitors in this Landscape are major retail stores such as Macy,
and Dillard’s and specialty retail stores such as Rainbow, hair supply stores and
jewelry kiosks. These retailers are trying to market towards the consumers with
less disposable income. The economic situation has caused shoppers to favor trendy
costume jewelry instead of real jewelry. Since trends change rapidly, this allows the
consumer to keep up with the current styles in a affordable way. Lacey Couture is
differentiating ourselves because we are able to quickly adapt to new trends and we
offer statement pieces that are better designed, higher quality and are unique. We
also offer customization services that will allow the customer to direct specific
design elements of their jewelry piece.
Key Competitors
Our key competitors are online sites that sell handmade jewelry, mall kiosks, African
American hair supply stores and major retail stores. Online stores, such as Etsy.com
have grown in popularity and allow designers and shoppers to buy and sell
handmade jewelry. The pieces range from small to very grand and intricate. Vintage
items are also available on the site. It’s free to signup on the site and anyone wishing
to sell his or her items pay a very small fee per piece sold. Retail stores are located in
every mall in the greater New Orleans area. They offer trendy jewelry at very
reasonable prices. They are also well known and established in the industry and are
composed of national stores such as Macys and Dillard’s. These retailers offer
smaller statement jewelry pieces and a few larger pieces made with genuine stones.
The jewelry kiosks offer larger statement pieces that major retailers don’t sell.
These pieces are flashy and designed for wearing with formal wear. Hair supply
stores also offer flashy statement pieces. Their pieces are usually displayed and
lighted properly and they showcase one piece at a time. According the
Businessfinder.com, New Orleans has over 200 hair and beauty supply stores. These
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stores are conveniently located throughout neighborhoods and in shopping areas.
Their pieces are priced affordably and they also offer other matching accessories
such as gloves, purses and shoes. Designed for formal wear, or urban wear, their
pieces are trendy and flashy.
Other Competitors
Our weaker competitors consist of “teeny bopper” stores such as Charlotte Rouse,
Forever 21 and Rainbow. These stores offer trendy jewelry pieces, however they are
very small and they are sold in bulk. They are very inexpensive, however they are
not designed for wearing with formal attire. They are also only marketed towards
young girls and young adults. Lacey Couture jewelry is marketed towards affluent
females and females in the urban modeling industry. Our target market wears flashy
statement pieces that are large and unique.
Competitive Positions (listed highest to lowest)
African american hair supply stores-
Strengths: Well known throughout the African American community, there are over
150-beauty supply stores in the New Orleans area. They are often located in rural
neighborhoods next to convenience stores and gas stations. They feature unique
jewelry pieces that are designed for urban culture and special event jewelry. The
pieces are large and very flashy, and are purchased directly from a wholesale
distributer and are sold at a high mark-up price.
Weaknesses: The pieces are bought in bulk, so there is no uniqueness. Also the
pieces are duplicated and well-liked designs saturate the market easily making them
loose their appeal to the trendier buyer. The quality of the pieces can be low and
they are easily subject to breaking and often utilize cheap materials.
Etsy.com-
Strengths: This site allows you to buy and sell vintage and handmade items. It’s
easy to use and membership is free. You can browse categories from children’s
jewelry, to special event jewelry. The site offers access to thousands of jewelry
designers that sale their handmade pieces from carrying price ranges.
Weaknesses: The overall design of the site does not allude to the different styles of
jewelry and merchandise that’s available. Also, the pieces featured on the homepage
are from multiple designers that have the same design aesthetic. Therefore, a buyer
won’t be sure that they can find the type of piece they are looking for when they first
visit the site. Also, as a designer you have to consider the fact that there are
thousands of others selling from the same webpage and that your designs can be
lost or not found as easily as others.
Mall Kiosks-
Strengths: They are located within in all major shopping malls in the greater New
Orleans area and they showcase jewelry in a manner that draws attention to the
consumer. They feature large pageant and special event jewelry as well as body
jewelry. Their pieces are unique and fairly priced. The pieces are bought in bulk
from a wholesaler and are marked up to 300%. They are easy to keep in stock and
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have low operating cost. They have access to my entire target market, and get
exposure to all shoppers due to their convenient location.
Weaknesses: Due to the fact that they are kiosks, they can loose the appeal of the
more affluent shopper. While the kiosk are well lit and organized, they can make
their pieces seem low-end to the consumer that wants to buy high quality couture
jewelry. They are also limited in display space and can have a hard time making a
consumer feel comfortable during their shopping experience.
Major Retailers-
Strengths: they sell both real and costume jewelry, and can conveniently present a
different option for a shopper that can’t afford a real piece. They also offer large
costume jewelry pieces that are made with high quality cubic zirconia and other
emerging lab techniques for simulated precious stones. They carry large amounts of
costume jewelry and the sections are organized in terms of color, making it easy for
the consumer to find for what they are looking for. These retail stores are already
internationally known and have extreme market exposure for all their different
departments. Due to this, they offer convenient, one stop shopping for the consumer
and can give a consumer the ability to buy a dress, shoes, handbag and jewelry all in
one place. The affluent shopper might associate their costume jewelry to be that o
higher quality due to the fact that’s its being sold in the same location as real
jewelry.
Weaknesses: These major retailers have only recently expanded their costume
jewelry sections. Also the sections are usually poorly maintained, and the pieces are
often tangled, broken or put in a “discount” pile. The pieces are also relatively still
expensive and are sold at 400% or higher markup. Major retailers are often two
months behind the current trend and carry pieces that are overpriced.
“Teeny Bopper” stores-
Strengths: They offer the current trends in clothing and accessories. The jewelry
pieces are small, yet trendy and fairly inexpensive. In one store, you can buy a
trendy outfit, shoes and jewelry and accessories. The stores are also internationally
known and are located in major tourist areas such as Canal St.
Weaknesses: They cater and market towards young girls, and therefore do not
appeal to the affluent older woman. They also offer pieces that are smaller and
repetitive. While fairly priced, the pieces loose their uniqueness due to over
saturation in the market and their ease of availability throughout different retailers.
They offer limited to no special event jewelry, and can be slow with updating
current jewelry inventory.
Advantages over Competition
The Lacey Couture brand personality is high-end couture fashion. It’s designed for
affluent and trendy women from the ages of 24-35. It appeals the beauty queens and
the every day women. Lacey Couture designs are all about being sparkly, and over
the top. Each piece makes a statement and is designed for the quiet confident
woman that carries a prestigious presence everywhere she goes. The competitor’s
image is not as high class or creative. Their image is a direct copy of current trends
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and doesn’t take them to the next level by creating a new trend within the trend.
Simplistic and basic, the competitor’s image does not meet the high standards of
class that Lacey Couture Jewelry designs do.
Lacey Couture has several specific advantages over our competition. Some of our
key advantages are:
Our designs are located throughout a 13,000 square foot Couture Art
Gallery located in the heart of the French Quarter.
Lacey Couture jewelry is exposed to high-end Gallery clientele through
exclusive gallery parties and events held for celebrities, professional
athletes and VIPs.
Our pieces are never duplicated and are wrapped in high quality
signature boxes that are signed by the designer at the time of purchase.
Our pieces are always up to date with current trends.
We offer a customization service and can also bead gowns and formal
attire.
We also offer a free program to repair jewelry that was bought within 3
months.
The jewelry is sold in the historic district and is considered artwork.
Therefore customers do not have to pay taxes on their purchases.
We are producing a reality TV show that will feature Lacey Couture
jewelry. This show will air on Lifestyle and Bravo.
Lacey Couture designs large, flashy formal event jewelry that is never
duplicated
Our designs are made by a international model and artist that has over 15
years of experience with fashion, design, jewelry making and the
modeling and fashion industry
We offer the shopping convenience of a online store and a physical store
front
Future Competition and Their Barriers to Entry
The costume jewelry industry is continuing to grow as independent jewelry makers
start making their designs available through Facebook, websites, blogs and through
booths set up at numerous events. These designers are picking up on current trends
such as beaded bracelets and horizontal crucifixes, and making small trinket sized
jewelry. These businesses are gaining access into the jewelry industry, however due
to their design esthetic, they are competing with major brands such as Charlotte
rouse, Forever 21 and Rainbow. These major retails stores are operating
successfully throughout the entire greater New Orleans area. According to store
locator services, there are over 15 of these locations within a 30-mile radius of New
Orleans, and their designs are focused on the same trends that small independent
designers are.
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The barriers to entry these new businesses will face is getting brand awareness and
setting themselves apart from the major stores that offer the same product and a
bigger selection. Future competitors will need to stay ahead of trends and offer
designs and services that aren’t available in these stores. They will need have a
artistic and unique space in order to properly display their items. They will also
need to gain access to celebrities, professional athletes and the modeling and
fashion design industry. They also must find a designer that is able to make intricate
designs composed of several elements and made utilizing varying techniques.
Jewelry and accessories is all about fashion and trends, and as long as a competitor
is able to offer something unique and trendy in a convenient way, there is a place for
them in the costume jewelry market.
Strategic Opportunities
Lacey Couture will capitalize on the competitors weaknesses by staying ahead of
current trends, marketing our products to appeal to affluent women, keeping the
jewelry well-displayed and properly lighted, keeping the pieces unique and using
the highest quality materials and best construction techniques. We will also offer a
free repair service for jewelry purchased with-in three months and also provide our
customers with exclusive event invites if they wear their Lacey Couture design to
the event.
Our jewelry combines the demand for designer jewelry with the need for fashion/
costume jewelry. Both these industries are the largest in the jewelry industry.
According to Fashion Overview, designer and costume jewelry makeup the majority
of the jewelry market.
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MARKETING PLAN AND STRATEGY
Marketing Plan
Lacey Couture is owned and operated by a retired US Army Disabled Campaign
Veteran. We meet our customer needs by providing a high-end couture version of
current trendy and flashy jewelry. Our pieces are priced competitively and we offer
a loyalty rewards program that gives special discounts to repeat customers. We will
also offer shopping on-line with same day shipping, as well as a free option for store
delivery. We also offer free jewelry repairs for items bought within 3 months.
Our message: “Embrace Yourself”
The Lacey Couture brand personality is high-end couture fashion. It’s designed for
affluent and trendy women from the ages of 24-35. It appeals the beauty queens and
the every day women. Lacey Couture designs are all about being sparkly, and over
the top. Each piece makes a statement and is designed by hand.
Unique Position in Market
We will offer personalized services to our customers so that they can design their
own pieces. We will also demonstrate our extensive knowledge of current trends by
offering advice on how to wear the pieces and coordinate them with clothing. We
can make pieces with a one-day turn around and make specialized events for local
festivals and events. We will also offer services to local designers, and models in
order to increase the overall image of their brands. We will also provide pieces for
fashion shows, photo shoots, music videos and special events in order to add
elegance and art to these events. We will also work closely with the community and
local charities in order to create opportunities for under privileged children in the
greater New Orleans area.
Marketing Plan
Objective Statement: Increase brand awareness of Lacey Couture Jewelry designs
by implementing a digital marketing campaign that will entice customers to come to
the store and share information about the brand.
The broad idea of the marketing plan is it to make locals and tourist know that they
can get quality couture jewelry at affordable prices in the French Quarter. I want to
make customers aware that I offer statement pieces that are designed for every
season and occasion and that nothing is every duplicated. I further want to convey
the message that every piece is a work of art and is affordable on almost any budget.
Channels Selected
Social Media
Digital Promotion/PR
Digital Advertising
Email Marketing
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Press Release: Lacey Couture will host/take part in at least one special event per
month during the campaign. For each of these events a press release will be made.
News/T.V.: Lacey Couture will attempt to feature special interest news stories
relating to special events and fundraisers though out the campaign. Lacey Couture
will take part in at least one event per month and will pitch a special interest news
story to the local channels.
Free Gifts: Lacey Couture will give 2 free gifts away to local fashion and industry
socialites in order to increase brand awareness and gain exposure.
Digital display advertising: Lacey Couture will place digital ads on three different
targeted websites. These ads will run during the peak shopping time for the targeted
consumer group. Customers will have the option to join the email subscriber list
once they click on an ad. This will increase the chance of this person becoming a
repeat customer.
Social Media advertising: Facebook and Pinterest will be used for the social media
campaign. Facebook will provide advertising that is specific to the target audience
for Lacey Couture jewelry. Facebook will allow Lacey Couture to advertise to the
primary and secondary target audiences, 18-35 year-old females, during a the time
when they are on-line, which is Fridays from 11am to 2pm.
Pinterest will be used to further brand awareness due to its increasing popularity
and the volume of consumers that utilize the network that are interested in jewelry.
According to Pinterest.com, 79% of the users on Pinterest are female. Pinterest now
allows businesses the options to create accounts instead of personal profiles. This
will allow Lacey Couture the ability to include “Pin It” buttons on webpages and use
the brand logo as an avatar. For Pinterest, Lacey Couture will feature all the current
jewelry designs and list the price. Including the price increases “Likes” by an
average 36%. This platform will also allow Lacey Couture to provide company
information and the ability to follow the interest of other consumers that are
searching for jewelry.
The friends and family members currently following the Lacey Couture Brand will
be engaged through direct communication via email, in person and through general
invites. In order to attract new followers, Lacey Couture will widen its current
network by reaching out to other models, designers and artist. The brand will also
keep the content on the social media pages new by engaging consumers and posting
pictures of events. Care will be taken to ensure that pictures are properly tagged and
captioned so that consumers can share them more easily.
QR Code cards: Lacey Couture will host/take part in at least one special event per
month during the campaign. For each of these events, QR code cards will be handed
out to the attendees. The cards will also be handed out on a daily basis as the owner
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socializes and makes business connections. 50 cards will be handed out a month, for
a total of 3,000 cards.
Emails: Email marketing will be used to increase brand awareness amongst
consumers and increase jewelry sales. The emails will provide discounts and special
deals as well as reward customers that refer people to the brand.
The email marketing list will be developed by giving consumers the option to join
the list after a purchase, on the website, in person at special functions and on digital
ads. Business cards with the Lacey Couture logo will also have QR codes that will
allow consumers to join the mailing list.
Once a recipient receives the marketing email, they will be prompted to view a
gallery of current jewelry that is available, as well as current discounts. The landing
page will showcase current and past designs and inform the consumers about the
brand. It will show consumers past community events the brand has taken part in
and give them the opportunity to connect with the brand through social media
websites. The content will be tailored, entertaining and non-clutter. This will
increase the effectiveness of the overall strategy.
Lacey Couture will send out two emails per month for a total of 12 emails for the
campaign. The emails will have information about the current months special event,
sales and promotions, as well as give the reader information about press releases
and upcoming events. As the campaign progresses, the subscriber list will grow and
sales that result from the email list will increase.
Lacey Couture will set aside an initial marketing budget of $5,000 for each year. This
will allow us to run a yearlong campaign that will focus on key events and major
national holidays.
Sales Strategy
As a new business, Lacey Couture will have to prove its worth in order to gain and
maintain customers. We must sell our products and our Company to our target
market. We will approach sales from a salesperson-customer relationship basis. All
sales personnel will be respectable, engaging and knowledgeable. We will gather
key customer information and encourage customer feedback.
Since Lacey Couture is currently being sold at Exagere’ Art Gallery and Boutique, the
sales force will consist of the Art gallery owner, the gallery curator and jewelry
designer. The gallery owner and curator are currently trained on fashion and
jewelry trends. They are also kept up to date with new Lacey Couture designs and
are given proper information on each piece in order to encourage sales. Each piece
is logged into the inventory at the art gallery and has a detailed description of the
item along with the materials used to make it. Instruction is also given on how to put
the pieces on and care for them.
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The sales process consist of inside, outside on online sales. Inside sales will be
generated through the Art Gallery and outside sales will be conducted through
special events. The designer, art gallery owner and gallery curator will attend
regular exclusive social events and functions throughout the greater New Orleans
area. For these occasions, personnel will wear a piece of Lacey Couture jewelry and
carry business cards. Anyone interested in the jewelry being currently worn or at
the Gallery can come by to make purchases. Jewelry will also be available online
through the exagere.com website. Purchases are paid in full at the time of purchase.
The point of sale system will be online through PayPal, or in person with cash or
credit card.
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OPERATIONS AND MANAGEMENT
Overview of Company Operations
Our products are created at the home office of the owner of Lacey Couture. Once a
month, items such as beads, jewelry, stones, wire, and jewelry displays are
resourced and collected at the home office. These items are bought based upon the
current trends, as well as any upcoming events and/or holidays. All materials are
inventoried at the home office and stored there. Each item is individually designed
and created by hand. Elements are bonded with industrial adhesives and specialty
wire to ensure longevity of the piece. During the final stages, each piece is worn in
order to ensure ease of use and overall comfort. Each piece is also paired with an
outfit in order to determine the best style elements for each piece. This information
is then relayed to the curator and jewelry owner so that they can advise customers
on how to properly wear and style their jewelry pieces.
One to two jewelry pieces are made per day and are put on jewelry displays in
order to be sure they don’t get damaged. After four or more pieces have been made,
the designer will then transport the pieces 5 miles to Exagere’ Art Gallery. At this
point the owner, or the gallery curator, will inventory the pieces to include the
name, general description, and price. Once the pieces are signed in, they will be put
on display but the curator or the owner and available for sale. Once a customer buys
a piece of jewelry, a sales receipt is made and the item is updated on the log sheet.
After 21 days of the final sale, 80% of the sale price is given to the designer by check
or money order. All of our pieces are packaged in a signature box, which includes a
felt finished jewelry display board, a Lacey Couture business card, information on
free repairs and an autograph from the designer. All packaging materials are the
signature Lacey Couture colors, brown, pink and gold.
For online purchases, our pieces are packaged in the same signature box, which
includes a felt finished jewelry display board, a Lacey Couture business card,
information on free repairs and an autograph from the designer. All packaging
materials are the signature Lacey Couture colors, brown, pink and gold. The
packages are sent through the Lacey Couture FEDEX business account and can be
mailed according to the time line the customer needs. Pieces placed on the Lacey
Couture website are not subject to any consignment fee. Once four or more pieces
are made, they will be photographed on a plain display model and on a fully styled
mannequin. Photoshop will be used to edit the pictures and then they will be
uploaded to the website.
Labor/Variable
We currently do not require any employees in order to make the jewelry pieces.
Each piece is designed and constructed by the designer and owner or Lacey Couture
Productivity
The rate of productivity varies between the size and types of pieces that are being
made.
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Based upon this custom ratio, you can see that it’s more profitable to spend more
time producing small trendy jewelry sets. These sets are sold online and therefore
are not subject to the 20% consignment fee that the larger sets are, therefore the
time it takes to make one of these sets is worth $78 an hour. These sets also sell
faster than the other sets. The formal pieces can take longer to make, but the time it
takes to do it is worth more than the time to make a large trendy jewelry piece.
Depending upon the month, different consumers are targeted. For example, during
Mardi Gras, (last week of January through the third in February) we will be targeting
tourist and locals that are participating in balls and parades. Therefore, there will be
a higher demand for large formal pieces and the sale of the trendy jewelry pieces
will decline.
Quality Control
Each item is individually designed and created by hand. Elements are bonded with
industrial adhesives and specialty wire to ensure longevity of the piece. During the
final stages, each piece is worn in order to ensure ease of use and overall comfort.
The designer will wear the piece and conduct normal activities such as driving,
putting on a jacket, bending over, etc., that is reasonably expected activity of the
consumer while wearing. Any problems that occur with the piece are then fixed in
order to ensure that the piece is able to withstand the normal movements that the
customer would make. All of our pieces are packaged in a signature box, which
includes a felt finished jewelry display board, a Lacey Couture business card, and
information on free repairs. The display board is to ensure that the customer can
store their piece in a way that won’t damage it, and so that they can enjoy their piece
as a work of art when they are not wearing it.
Suppliers
The purchasing decisions are made by the designer and are influenced through
current sales and feedback from the gallery curator, gallery owner and customers.
Jewelry making accessories, along with beads, pre-made jewelry pieces, crystals,
clasps, wire and adhesives are the key materials necessary to produce the jewelry.
The average cost of a month’s supply of these goods is $250. One month’s supply can
produce over 15 jewelry pieces, with enough materials left over to contribute to
future pieces. The sources of these goods come from the following:
Michaels Craft Store
Wal-Mart Craft section
Burlington Coat Factory Jewelry Section
Genie’s Hair and Beauty Supply Store
Fire Mountain Beads Online Store
Product Unit Price Cost Gross Margin Per Sale ProductionGross Margin per hour of production AVG sales
LRG Formal E/N sets $350 $45 $280 5 hrs $56 1/month
SM Formal E/N sets $200 $35 $165 3 hrs $55 4/month
LRG Trendy E/N sets $250 $30 $120 3 hrs $40 3/month
SM Trendy E/N sets $175 $20 $155 2 hrs $78 4/month
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7 different wholesalers through online stores. (Protected list)
All the suppliers, to include the wholesalers have been tested and are reliable with
shipping and returns. Many of the good are offered on multiple wholesale sites, so if
one site runs out, there is at least one more back up site, which might have the item
in stock. On-demand or short notice goods are difficult to obtain due to shipping and
handling, however short notice goods can be bought from Wal-Mart, Michaels and
other craft stores. The wholesale suppliers require that the items be bought in bulk.
For example, instead of buying one necklace for $0.20, you have to buy the pack of
six for $1.20. There is no minimum cost associated with buying materials from any
of the wholesalers. Suppliers are chosen for the uniqueness of their collections,
quality, shipping and customer service, as well as the size of their store.
Order Fulfillment and Customer service
Orders are processed online through the designer, or at the Exagere’ Art gallery by
the designer, curator or gallery owner. Items purchased at the gallery must be paid
in full at the time of purchase, as well items purchased on-line. Orders are packaged
in a signature box, surrounded by tissue paper and the custom Lacey Couture
initials. Inside the box is a jewelry display stand, care instructions, 3 month free
repair service information and a Lacey Couture business card. Items that need to be
shipped are prepared the same way, except the piece is encased in bubble wrap
inside of the signature box, and secured in a mailing box via Fed Ex. The customer
pays for all shipping cost.
The service program allows a customer to have piece repaired within 3 months of
the purchase date for free. This one time service will repair any damage due to
normal wear and tear, or settling of the elements of the piece. Since each piece is
very intricate, Lacey Couture understands that some elements could become loose.
Therefore we offer this service to ensure that our customers stay happy and because
we stand behind the quality of our pieces. Any repairs needed after the 3 month
time frame will only require the customer to pay shipping and a small repair fee
ranging from $10-$30. All items are final sale, except is the piece arrives damaged (if
the piece is shipped) or if the piece has a major malfunction that is not a result of
negligence from the consumer. Exchanges can be made for purchased made within 7
days.
Currently, Lacey Couture has sold nine pieces and has not had a compliant, return or
any required repairs.
Efficiencies
Since the owner will be making and selling the jewelry. It's important that time is
spent efficiently. For the first 4 years, I don't plan to hire any additional help.
Therefore I need to make sure the jewelry I'm making is worth the time it takes to
make it. In other words, 2 hours spent making a unit that only generates a net sale of
$15 is not as good as spending that same amount of time making a unit that
generates net sale of $40. This is a fine line, because I have to be sure that I can sell
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the units as well. Therefore I developed the custom ratio: Gross margin per Hour of
work. The gross margin per sale divided by the time frame is equal to the gross
margin per hour of work. This will help us determine whether or not it’s profitable
to work on one design versus another.
Another efficiency we will implement is on hand inventory control. Any on used
inventory is money that we could be making. While the parts and pieces kept in
inventory are extensive, there are times when the designer might be tempted to buy
an item from a store in order to enhance the piece. When bought from a retailer, we
are subject to all the markup fees associated with that purchase and therefore its
better to use supplies that are already on hand. If absolutely necessary, last minute
items will be purchased, however in an attempt to utilize inventory effectively and
save money we will implement an inventory control procedure. This procedure will
all items in the inventory displayed so that the designer can get a full view of
everything that’s available for use. Also, pieces that are taken apart will have any of
their parts salvaged for future designs. For example, we might buy a set of 12
beaded necklaces and earrings from a whole seller for the total price of $5. We will
then take apart these earrings and necklace sets and reuse the earing clips, necklace
clasps and all the beads in order to make new jewelry pieces. No useable part of the
earring and necklace sets will be thrown away. Each usable item will be stored in an
appropriate bin so that it can be used in the future.
Competitive Advantages
Since the majority of our jewelry designs are made from a pre-existing design, we
don’t have to create every piece from scratch. This saves a lot of time and money.
We are able to buy “base” pieces in bulk and then make unique pieces from them.
They are either used in their entirety, or they are taken apart and used on several
other separate pieces. We buy these pieces wholesale and therefore save over
300%. Buying jewelry pieces in bulk specifically for their stones, color or other
design elements is cheaper than buying the specific end item from a craft store.
Another competitive advantage is our location. Lacey Couture Jewelry Designs are
located at the Exagere’ Art Gallery. Exagere’ is over 13,000 square feet of multi level
space located in the heart of the French Quarter. We are one block from Bourbon
Street and a few hundred feet from the Ritz Carlton and other prestigious hotel.
With in feet from our door we have covered valet parking and a public parking
garage. The gallery hosts the only VIP nightclub venue that caters to celebrities,
athletes and VIPs. With exclusive contact list containing celebrities, local athletes,
we have access to high profile events and clientele. The gallery also host events that
incorporate fashion, art, music and theater and draw crowds of thousands of people.
A reality show called “Southern Couture” is currently in production and centers
around events conducted at the gallery. This show is set to air on Lifetime and Bravo
and will feature the artwork, designers and owners of the gallery.
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Problems addressed
The problem we predict occurring is not having the time to keep up with the
demand or the services offered. All pieces are made by a single designer in order to
keep the integrity of the creative process and the authenticity of the design esthetic.
Due to this a very strict design and production schedule must be met at all times.
This schedule predicts slow and high demand months and is centered on local and
national events and holidays. This production schedule allows the designer to plan
ahead and make pieces in a timely manner without compromising the overall
quality. During ramp up months, the demand can double; therefore the months
prior to this, the designer has to be making pieces in prep for the high demand
period. In some cases, this will mean staying ahead of trends by predicting where
the current trend will go and being prepared by having those items already in stock
and ready to sale. This means that the designer will always have to remain one
month ahead of the current time frame she is designing for. This will ensure that
the designer can allocate time for any special orders or other problems that could
arise with the current collection.
Another problem that we predicted was a lack of efficient revenue due to the 40%
commission fee. The price range for the pieces varies from $35-$450. If a piece of
jewelry sales for $35, it’s still subject to the 40% consignment fee and therefore the
profit is very small. Due to this, Lacey Couture will only sale pieces in the gallery
that are worth over $200. The smaller pieces that cost less than this will be available
for sale through the Lacey Couture website only. This way more profit can go back
to the company and the larger pieces that sell for more can still turn a profit through
the gallery.
Since the pieces are all handmade and composed of several small items, we have
devised a “care card” for out customers. These care cards will ensure that the
customers store and wear their pieces in a way that will ensure their longevity.
These care cards give tips on how to properly wear the jewelry, advice on what to
wear with it, and how to put the specific piece of jewelry on. Each piece is unique
and therefore has specific techniques in order to put the piece on. These cards
ensure that the customer is able to wear their piece and keep it intact. Along with
this we offer a one time free repair, for any normal wear and tear damages that
occur within 3 months of the initial purchase. After this time frame, we will still offer
repairs, but for a small fee. The fee will be dependent upon the total damage to the
piece and the cost of the materials needed in order to restore it.
Location
The company headquarters is located at a home office in the owner’s residence at
2554 Holiday Dr., New Orleans, LA 70131. The home office is approximately 300
square feet and is solely used for business functions.
Lacey Couture designers are also located at Exagere’ Couture Furniture Boutique
and Art Gallery through a consignment deal. The gallery is over 13,000 square feet
and consists of four levels. The ground level is retail space and approximately 2,000
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square feet and showcases the Lacey Couture designs. It’s the main level of the
gallery and showcases artwork, sculptures and furniture. An office is located in the
back of the showroom. It’s approximately 600 square feet and has a small computer
desk and meeting area. The owner uses this area as an office and for retail space.
Restrooms and a small outdoor smoking area are also located in this space.
The second level of the gallery is event and retail space. It features artwork and
sculptures, as well as numerous dance floors and rooms. The theme of the space is
changed depending upon the needs of the client. Jewelry can be showcased in this
space for special events. The space is approximately 6,000 square feet and has a
storage room that is approximately 400 square feet. The storage room is where the
packing materials for Lacey Couture Jewelry are stored. The material consists of
boxes, labels, wrapping paper and bubble wrap. A second set of restrooms, and a
catering prep area is also located on this level.
The third level consists of approximately 500 square feet of retail and event space
and leads to the rooftop. The rooftop offers 3,000 square feet and is used during
special events. Live bands and other entertainment is placed on the rooftop. There is
no retail space allocated on the rooftop, however hired models will be placed in this
area in order to model Lacey Couture Jewelry.
Lease
Lacey Couture currently does not have any leases. The gallery owner, Perfecto
Boudillo, covers the rent of the Art Gallery, and all expenses associated with the
building. Lacey Couture pays a 40% commission on all jewelry sales that are sold
through the art gallery. The owner and her husband currently own their home
residence and pay a monthly mortgage.
Improvements
Currently no improvements have been made to the home residence office, however
we plan to put in shelves and storage bins in order to organize jewelry pieces and
supplies. The owner of Lacey Couture will pay for these improvements. Perfecto
Boudillo currently does not have any improvements planned or underway. Any
improvements he makes to Exagere’ will be financed by him.
Utilities/Maintenance
The owner Perfecto Boudillo pays for the costs of all utilities and maintenance
associated with the Art Gallery. The owners of the private residence cover utilities
and maintenance cost of the home office.
Key Factors
The fact that our facility is also a Couture Art Gallery, high class event space and
located in the French Quarter a block away from Bourbon, as well as walking
distance from covered economy and valet parking is likely to affect our success in a
positive way. This location gives up prime access to our target market and gives us
the chance to increase brand awareness through our exclusive contacts within the
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entertainment and professional sports industries. The art gallery is over 13,000
square feet and the jewelry collection has room to grow to the different levels.
Fashions shows and other live events are also hosted at the venue and the jewelry is
displayed on models and live mannequins. We can present out jewelry in an
eloquent manner without having the cost associated with moving to a different
location.
Telecommunications
Internet access, a fax machine, and a mobile smart phone will also be needed. These
items will ensure that Lacey Couture can present their designs and conduct business
in all environments. Currently, Lacey Couture has all of these items and they are
working properly.
Website Plan
Our website will be used to display past events showcasing Lacey Couture designs,
keep customers up to date about upcoming events and provide a way for people to
purchase and order special pieces. The website will increase brand awareness and
also allow customers to sign up for newsletters and special discounts. We will make
the website interactive so that customers are engaged and keep returning. The
website will also feature a blog which contains information about new trends and
styling tips. Free giveaways and links to current fashion events will also be featured
on the webpage. This will increase traffic ability to the site and increase brand
awareness.
MANAGEMENT PLAN
Key Employees
The President, manager and designer of Lacey Couture is the owner, Lori Tantawi.
Lacey Couture currently does not have any employees and does not predict having
them within the next three years. After the term of three years, Lacey Couture will
expand the brand to include designer formal wear which will then require the
addition of employee(s) to handle the construction of the designs, as well as the
beading of the garments. This service is part of the future expansion of the Lacey
Couture brand, and will only occur after a firm foothold has been made within the
market, and the brand is financially ready to expand.
Currently Lacey Couture has designs available for sale at Exagere’ Art Gallery. All
cost associated with running the gallery to include the hiring and paying of
employees is the responsibility of the gallery owner, Perfecto Boudillo. Currently,
the art gallery employees a curator that will be selling the jewelry that is located
within the gallery. The art curator is educated on art history, art construction
methods, knowledgeable about local and international designers and artist and up
to date with current styling trends. There are eloquent and very approachable and
must be able to present that artwork and jewelry in a professional and engaging
manner that increases customer interest and showcases the beauty in every piece.
Past experience with curating is preferred.
32. 32
Consultants
Lacey Couture will be utilizing the services of Rocket Lawyer on a case-by-case basis
for legal consultations. The price of there service varies depending upon the needs
of the customer. Lacey Couture will use their basic monthly service for a fee of $40 a
month for the first year of operation to ensure that the business is set up correctly
and establish key procedures. Following the first year, Lacey Couture will hire
Rocket Lawyer on a case-by-case basis. For business related matters, Lacey Couture
will utilize the help of a business associate by the name of Anthony Patton. Mr.
Patton is a marketing leader and has over 13 years of experience. He is currently
mentoring and providing advice to the owner of Lacey Couture. He does not charge
for this service.
Management Structure
The owner of Lacey Couture designs and creates every piece of jewelry. The owner
also purchases and organizes all materials and maintains close contact with the
Exagere’ owner in order to ensure pieces are displayed properly and follow up on
any past issues. The designer is also responsible for the set up and maintenance of
the Lacey Couture website, to include taking the pictures and designing content for
the page. All shipping of sold materials is managed and conducted by the owner as
well. The owner of Exagere’ is responsible for all cost associated with promoting the
jewelry, to include hiring models, paying for special events and any shipping cost
associated with jewelry sold from the gallery. The owner also provides vital
feedback from customers about the jewelry and advises the designer in terms of
wants and needs of the customer. The owner is also responsible for selling the
jewelry; maintain proper receipts and paying the designer. The gallery curator is
assisting the gallery owner in all of these manners.
33. 33
FINANCIALS
A positive cash flow will be established during the first month of the first year of
operation of Lacey Couture Designs, with a net income after taxes of $2,999. Sells
increase during the second quarter due to Mardi Gras, prom, wedding, and tourism
season. The fourth quarter also sees a sales increase due to the holiday season and
local festivals. By the end of the first year, a total net income after taxes of $50,198
will be earned. (See appendix A, chart 1) During the second year of operations
income will continue to trend upwards in the same quarterly trend as the first year.
Marketing efforts will increase, and higher quality goods and services will be offered
as the price of the jewelry increases slightly. The second year of operation has a
projected total net income after taxes of $88,170. (See appendix A, chart 2) This
method will be mirrored for the third quarter in terms of seasonal sales increases
and the price and quality of product offered. The projected total net income after
taxes for the third year of operation is $152,167. (See appendix A, chart 3)
Start-up Cost
The start-up cost associated with Lacey Couture Designs is very minimal. Home
office improvements will only cost $200, and approximately $1,600 will be needed
for equipment such as furniture, POS systems and new software. Materials and
supplies make up the bulk of the start-up cost at $2,500. This cost includes all the
materials needed to compile a complete inventory of jewelry and jewelry making
supplies. The final $1,290 comes from fee such as business licenses, insurance and
legal. With the addition of a working capital need of $3,000, Lacey Couture Designs
requires approximately $8,600 in start-up cost. (See appendix A, chart 4)
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
Year 1
Year 2
Year 3
Net Income A er Taxes
Net Income A er Taxes
34. 34
Summary Income Statement
Sources and Uses of Funds Statement
The total amount of funds required is $13,000. This will be accomplished in one
funding round. The principle has invested $4,000 and is seeking an investment of
$9,000 in the form of a short-term loan. Lacey Couture is offering a ROI of 50% per
year. $1,785 will be used for capitol expenditures in the form of office
improvements and the purchase of furniture and equipment. $5,575 will be used for
working capitol in the form of inventory, supplies, fees and services. A 3-year
working capitol need of $3,000 has been established. The total amount of funds used
is $8,575, and this leaves a cash reserve of $4,425. (See appendix A, chart 5)
38. 38
Chart 4: Start-Up Costs (initial capital expenditures)
Start - Up Costs
(initial capital expenditures)
Facilities
Land $0
Building $0
Improvements / Remodeling $200
other : $0
other: $0
subtotal $200
Equipment
Furniture $200
Production Machines / Equipment $200
Computers / Software $705
Cash Registers / POS Terminals $30
Telephone / depreciable equipment $450
Vehicles $0
other: $0
other: $0
subtotal $1,585
Materials / Supplies
Office Supplies $200
Stationary / Business Cards $200
Brochures / Pamphlets / forms $100
Inventory $2,000
other : $0
other: $0
subtotal $2,500
Fees and professional services
Initial Rent $0
Deposits (Security/ Utilities/ etc) $0
Licenses, Permits $300
Trade or Professional $0
Attorneys $40
Accountants $0
Insurance $550
Marketing / Mgt Consultants $0
Design / Technical Consultants $100
Advertising / Promotion $300
other: $0
other: $0
subtotal $1,290
TOTAL Capital Costs $5,575
Working Capital Needs $3,000
Total Funds Required $8,575
Lacey Couture Designs
39. 39
Chart 5: Sources and Uses of Funds
Sources and Uses of Funds
Lacey Couture Designs
Number of funding rounds expected for full financing : 1
Total amount being sought in this round: $13,000
Sources of Funds
Equity Financing
Preferred Stock : $0
Common Stock : $0
$0
Debt Financing
Mortgage Loans: $0
Other Long Term Loans: $0
Short Term Loans: $9,000
Convertible Debt: $0
$9,000
Investment by Principal(s) $4,000
Total Source of Funds $13,000
Uses of Funds
$200
$1,585
$1,785
Working Capital
$2,500
$1,290
$3,790
subtotal $5,575
Three year working capital needs $3,000
Total Use of Funds $8,575
Cash Reserve: $4,425
Capital Expenditures
Land, building and
leasehold Improvements:
Purchase of Equipment/Furniture:
Materials, supplies and inventory
Deposits, fees and
professional services
Sources and Uses of Funds
Lacey Couture Designs
Amount of Investor funds being sought this round:
Investment by Principal(s):
TOTAL SOURCE OF FUNDS :
Uses of Funds
Capital Expenditures
Land, building and
leasehold Improvements
Purchase of Equipment/Furniture
Working Capital
Materials, supplies and inventory
Deposits, fees and professional services
total start-up costs
Three year working capital needs
Total Use of Funds
Cash Reserve:
$5,575
$4,000
$13,000
$1,290
$1,785
$2,500
$9,000
$200
$1,585
$4,425
$3,790
$8,575
$3,000
40. 40
APPENDIX B: Technology Plan
Equipment Schedule
Currently Owned Equipment
Equipment to be purchased
Software Needs
Lacey Couture needs QuickBooks Pro in order to keep track of all cost and ensure
we remain on budget as we acquire new jewelry making items. We will also need to
keep track of the cost and time associated with each piece made and how much the
piece sold for. This information will provide us with the basics we need in order to
conduct vital analysis to see where we can improve production and increase sales.
Photoshop will be used to edit pictures, and create graphics. A credit card scanner
for the iPhone will be needed so that the owner can make transactions while
traveling. Portrait studio will be used in order to take pictures of the jewelry pieces
to post online and to use for promotional purposes. This studio is a travel-sized
studio that has all the elements needed to provide optimal lighting in order to get
high quality photographs. A soldering tool will be used in order to provide a better
permanent adhesive for jewelry designs, and the iPhone will allow the owner to
synchronize her phone seamlessly with her MacBook.
Hardware Needs
Lacey couture will need to purchase a professional quality camera in order to take
pictures that would be suitable for display on promotional items and on websites.
The Nikon CoolPix P520 was selected due to its professional quality and shelf life.
Also an I Pad mini will also allow Lacey Couture to show case designs to potential
clients while outside of the gallery and at special events.
Description Status Date Purchased Cost Payment
MacBook Air OS X On Hand/working 2010 $2,500 completed
Back Up drive 5GB On Hand/working 2009 $200 completed
Kodak Digital Camera On Hand/working 2006 $375 completed
Tool Kit Advanced On Hand/working 2013 FEB $50 completed
Canon Laser Printer/fax On Hand/working 2011 $400 completed
Photoshop On Hand/working 2012 w/ computer completed
Office Suite On Hand/working 2012 w/ computer completed
Description Purchase Date Cost Terms Payment
I Pad Mini WiFi only 2013 AUG $330 cash paid in full
Nikon Coolpix P520 2013 SEP $450 cash paid in full
Sodering Tool 2013 AUG $200 cash paid in full
Portriat Studio 2013 SEP $200 cash paid in full
Credit Card Scanner 2013 OCT $30 cash paid in full
QuickBooks Pro 2013 2013 NOV $174.95 cash paid in full
I Phone 4 8GB 2013AUG free upgrade n/a n/a
41. 41
APPENDIX C: Product Photographs
Models wear Lacey Couture Designs “Come Play with Me” , “Coral Reef”, “Dynasty” and “Fall to
Command” at Exagere’ Charity Fashion Show
Designer, owner and manager of Lacey Couture Designs, Lori Tantawi
modeling “Sub Punishment” and “On the Rocks”
44. 44
APPENDIX C: Product Photographs cont.
Lacey Couture Designs on display for sale at Exagere’ Art Gallery.
Each piece is displayed on a piece of couture furniture.
“Fire” “Cloudy Night” “Fleur de lis” and “Bronze Goddess”
“Blue Nile”
45. 45
APPENDIX D: Market Research
Average Cost of Lacey Couture Designs Jewelry (pg. 7)
Charlotte Rouse: www.charlotterouse.com
Macy’s: www.macys.com
Wholesale figures from protected wholesaler list
Industry Analysis and Trends (pg. 9)
Gross Domestic Product: http://www.bea.gov/index.htm
Competitive Advantage (pg.10)
NAICS Association: http://www.naics.com/free-code-
search/naicsdescription.php?code=448310
City-Data: http://www.city-data.com
Industry Overview (pg. 10)
Country Report, Jewelry in the US: http://www.euromonitor.com/jewellery-in-the-
us/report
Global Costume Jewelry Market:
http://www.prweb.com/releases/costume_necklaces/jewellery_ear_rings/prweb7
41624.htm
How is Fashion Jewelry Doing in the Second half of 2012:
http://www.awnol.com/wholesale-fashion-blog/?cat=24
Faux, Fun and Fabulous by Marcia Turner:
http://specialtyretail.com/issue/2004/07/retail-products/costume_jewelry/
Market Size and Trends (pg. 13)
Chart-http://www.fashionproducts.com/fashion-accessories-overview.html
The $4billion Prom Industry by the Numbers:
http://theweek.com/article/index/215703/the-4-billion-prom-industry-by-the-
numbers
Fashion Accessories Overview, Growth Chart:
http://www.fashionproducts.com/fashion-accessories-overview.html
Country Report, Jewelry in the US: http://www.euromonitor.com/jewellery-in-the-
us/report
What’s New in New Orleans: http://www.neworleanscvb.com/press-media/press-
kit/whats-new
New Orleans Ernst N. Memorial Convention Center Celebrates 25 Years:
http://www.neworleanscvb.com/articles/index.cfm?action=view&articleID=5324&
menuID=1603
Target Customers (pg. 14)
Traffic stats and audience demographics. Etsy.com.
http://www.alexa.com/siteinfo/etsy.com#
Women-Retail Study by Maria Pousa’: http://www.slideshare.net/mpousa/women-
retailstudy
46. 46
Market Readiness (pg. 15)
Country Report, Jewelry in the US: http://www.euromonitor.com/jewellery-in-the-
us/report
New Orleans Event Guide: www.neworleanseventguide.com
Competition Plan (pg. 16)
Jewelry Industry Chart-Jewelry IQ Industry Report by Profile America
http://www.immediate.com/images/Jewelry%20Stores.pdf
Future Competitors and their Barriers to Entry (pg. 19)
Store Locators:
www.charoletterouse.com
www.forever21.com
www.rainbowshops.com
Strategic Opportunities (pg. 20)
Fashion Overview: http://www.fashionproducts.com/fashion-accessories-
overview.html
Marketing Plan (pg. 21)
Women-Retail Study by Maria Pousa’:http://www.slideshare.net/mpousa/women-
retailstudy
How to promote your business with Pinterest : http://www.pinterest.com
25 Clever Ways to Grow Your Email Marketing List by Andrew Pitre:
http://www.blog.hubspot.com
