Summary
Hailey Coleman, a woman studying business at Ryerson wants to launch her own business motif Damn Heels. As a business student she knows she needs to do some research and analysis before she launch her business so she hired three business analysts, Michael Edminson, Osama Turch and Hyein Choie in order to get some recommendations and quantitative results for her business and the market she wants to aim in her venture. Mrs Coleman is thinking about developing foldable flat wear enclothes woman visiting South Bank London. Her idea is that women can rest up their feet in a night party night for example, and change the heels for a more soft and comfortable pair of flats, to get there she hired a shoe designer from Craiglist and ask for China to make some foldable bags to carry the flats and the heels as well. In China you can reduce costs and the footwear manufacturing is an easy market to get involved in 2009, although is not that easy to grow because of the big signature companies dominating the market. Mrs. Coleman is operating in Ontario targeting women between 20 and 29 years old. She thinks that selling at a rate of 20% on committedness she can make her way in the market as most competitors operate through private websites.
1. SWOT analysis for Damn Heels
Strengths
Product prices are lower than those of competitors. There are significant initiatives towards promotion within local public relations organizations. Further there are strengths in the quality of management and a passionate owner for the business. Advantages exist in the design of their website as it is easy to learn and can be used by many users. Products are appealing to women that make the business profitable within its niche. Nontraditional retail environments such as salons and restaurants are a further strength for this purpose.
Weaknesses
There is limited research based on the usage of vending machines in Toronto. This can create substantial limitations for the venture, as there are few models to follow. Similarly there isn’t funding available based on products and duties. Lack of financing towards social media and increased expenses are other weaknesses experienced by the corporation.
Opportunities
There are numerous options for expansion within the Canadian market. Limitations to competitors as well as penetration within the market are amongst the major themes in this industry. A large female population in Toronto is the target market for this business and contributes to the greatest eminent opportunities within this group.
Threats
There are some threats towards the proper development of this company. Competitors that were able to establish themselves in retail spaces and online were amongst the most eminent. Currency fluctuations as well as the development of secondary areas. The growth of sales is also challenging because of deceleration in annual growth as well as the dominant business activities of larger retailers.
2. Qualitative Pros and Cons
Easy and direct access to target opportunities is essential for this market. Pursuing coat check sales would be a pro because of less time needed for individual standards, a large number of available opportunities as well as the increased revenue through meaningful connections to the audience. Target markets can be accessed through the sales staff as well. A large amount of people within the target audience was able to visit restaurants and clubs. These were in addition to maintaining control of the sales process at large. Profitability would ultimately increase as a result of this process.
Some cons by following through with these ventures include a loss of control over the product itself as well as remittance throughout the bar and club establishment process. In terms of expanding the sales staff it is possible for the salary to be modified in addition to the development of flats for specific venue purposes. Doing this would create a much-needed system of change that is able to create access to materials and systems of operation. Sharing profits as well as the development of DH are key towards the successful implementation of the business. Cons associated with the suggested strategies include the time consuming nature as well as the development of profit sharing that may take a great deal of application in order to be proven and effective.
3. Identifying costs associated with the venture.
There are multiple Variable costs associated with the venture. These include shipping cost per unit, manufacturing costs as well as differences based on the packaging and brand label establishment.
Fixed costs are based on the management of resources amongst the manufacturing team and in the development of key packing and other standards of operation. By addressing the flexible nature of sourcing it is possible to create lasting success within the specified mechanisms of operation. It would also help limit the unknowns within the product creation process.
4. Product unit cost and combinations
The average shipping cost per unit is at a variable point based on the standards for bags and flats.
Manufacturing costs would be 1.89 for the bag and 3.07 for the flats.
Similarly the brand label and packaging comes out to 0.33 per unit. Overall the variable cost would be $5.64 per unit.
5. How many pairs of foldable flats for break even within the venture?
be=(p*q)-(fc-vc)be=[(.7*16)+(20*.3)]q-(300*12+600)-4.78q0=(11.2+6)q-4200-4.78q0=17.2q-4200-4.78q4200=12.42qq=~338
Q. As Coleman, would you launch the venture? Why or why not?
Hailey Coleman is an innovative and successful owner of Damn Heels who brought her business in to a successful position. She launched her first product successfully in December 2009 by selling online, in different salons and restaurants where family and friends work and they can be targeted easily. Through the first quarter, Column accomplished great progress and successful business. The prime goal of the business is to offer high quality and comfortable products to the target market with affordable price as her shoes are prices at just $ 20 which is below than her competitors price range.
As a Coleman I will surely launch the venture because Coleman is in the perfect position to expand her business. Although the idea to introduce Damn Heels in foreign market or in America will not a suitable idea right now as she needs to grow more in the local market of Canada. Right now the right strategy will to expand the business in local method through various plans which includes vending machine to act as a distributor across Canada or to the other option is to hire saleswomen and sell through coat check. Although the ratio analysis shows that Damn Heels will get great benefit from the Vending machine distribution but the right choice would to hire seals women and perform the Damon Heels selling process through coat check sales because this is not only an easy solution but also less costly.
Assuming Coleman was to proceed with the venture, offer suggestions for each element of her marketing strategy.
In case Coleman decides to proceed with the venture then most effective solution would to hire saleswomen and sell by coat check sales. This solution will beneficial in the long run as she only needs to pay for the salary but keeping saleswomen for selling Damn Heels will increase customer satisfaction. This great service will not only retain old customers but will also help the company to attract more customers for future progress. But in future she needs to make new strategies to face competitors from U.S and Europe in Canadian market. To better face these competitors she can give attention on creating new designs, adding more colors in the shoe range or use vending machine. One of the best solutions could be to find a distribution partner, which would help to distribute the products successfully in the Canadian Market. All these strategies and solutions would not only help her to increase net profit but also help her to make Damn Heels stand as a consistent and unique brand in the market.
