Safe Silver
by LINK, a company linking worlds in marketingconcepts
Mission:
By making trendy original silverwear available Safe Silver wants to improve live in both developing and western countries:
1. Economical improvement in Nepal: create opportunities for small silverindustry (see 7 for detailed information)
2. Emotional improvement in western world: give small treatments in life by sparkling silver accessories and a way of expressing emotional statements
Strategy:
1. Develop a trendy brand in the fashion-accessories branch
2. Develop a productconcept, consisting of two parts:
a. The product: design a unique productline in silverjewellery (necklaces, bracelets, rings, etc).
b. The ‘story around’: the way the products are designed allow buyers to express feelings and statements to the outer world*.
3. Develop a program with original marketingactivities for effective salespromotion and involvement of consumers
The Business
Global costprice overview:
The idea will be profitable due to the expectation that the price consumers are willing to pay exceeds the total costprice by underneath mentioned percentage.
Costcomponents total costprice:
- costprice products (materials, labour, packaging)
- distribution/logistic costs
- A&P (advertising and promotion)
- salesmargin retailers
-
Profitmargin= consumerselling price - total costprice = 10%<
Global consumerprice ranges silverwear:
Pricerangeswill be in line with competition, with a low level range in affordable products to a top end range of more luxury products:
- necklaces: € 29,95 - 99,95
- bracelets: € 19,95 - 69,95
- rings: € 9,95 - 39,95
- earhangers: € 9,95 - 39,95
Profit reinvestment strategy:
- break even strategy for dutch organisation
- all profit to be reinvested to activities in 1. target region (Nepal), 2. sales pushing activities
Primary targetgroup (size 1,45 million, source CBS):
Women, age 18-35 years, living in the Netherlands. Global charactarisation: they are students or working as young professionals, they read magazines as Cosmopolitan, Linda, Viva, Living, they go out in weekends, like to travel and have a conscioussness about the world around them (growing population of cultural creatives).
Secondary target group (size unknown):
All persons buying presents for primary targetgroup, eg. boyfriends, familie, friends.
Why demand for this silverwear:
1. Growing popularity of silverjewellery: field research (dec ‘04) pointed out silver becomes more popular. Famous designers like Otazu and big fashionbrands as Esprit and Mexx enter the silvermarket.
2. Growing consumer conscioussness of social and environmental responsibility, especially in target group: consumers start looking for ‘safe’ products. They are even willing to pay more, but have high quality standards.
3. Growing need for expressing feelings in accessories, e.g. Live-strong bracelats, lady-bird against violence
New activities/ technologies:
New technoligies and activities include the manner of productdesign and use of marketingconcepts, with which exportsales from the region can be significantly expanded. In the actual production technologies we use proven craftmenship and known productionmethods to reach the demanded high quality standards.
Competitive field:
Accessories and jewellery producers/designers in trendy scene: eg Beedees, Esprit, Mexx, Bijenkorf, Swarovski, Otazu (high end), Accesories.
Competitive advantage:
Added value lies within the total concept. It is not just jewellery you buy, you buy the story with it. With wearing the ‘safe silver’ products you make a statement: ‘I’m trendy, I know what’s hot, but I also know what’s happening in the world’. It is an honest way of contributing a little bit to improve the world around you and treat yourself at the same time.
Producing partner: Dambar International — Silverfactory
Location: Kathmandu Nepal. Managing director Dambar, employees: 10 silversmiths.
Role: production of silver products.
Added value: existing production location, years of experience in production of silver jewellery, proven craftsmanship and high quality standards
Contact: dambar@mail.com.np
Design partners:
- designers: contact with several designers, selection process ongoing
- art-academies/ design-academies: orientating contacts about design competition for art academy students
Other partners:
Due to years of experience in marketing, I have a broad network in all kinds of disciplines. Personal contacts are willing to offer their services on non-paid basis or minimal charges. Services include: Internet (webdesign, e-marketing, webhosting, e-fullfilment), advertising, packaging design, photography, public relations, market research, training & coaching
Advisory board:
Via La Luz foundation I organised a brainstormsession in november ’04. From the participants a small group, all successful business people, form an advisory board for Safe Silver. Website: www.stichtinglaluz.nl
Saleschannels:
- Retail: via selective distribution (Chill-out Bijenkorf, fashionstores (G-sus, Miss Sixty), Beedees, Fair-trade shops, etc)
- Internet: e-store, e-bay
- Studentnetworks (by ambassadors)
Communication strategy:
Image is everything in this market.
- Don’ts: tell consumers to buy your product
- Do’s: let them tell eachother, or let important influentials tell them (their magazines, favourite tv-programs idols and rolemodels (famous people)
Activities by AIDA (get Attention, raise Interest/Desire, convert to Action):
Attention:
- PR campaigns: ‘objective’ information in magazines, radio, TV, internet
- Non spot advertising & productplacement TV (eg Looking Good)
Interest/Desire:
- Ambassadors: 1. use of famous ambassadors, eg Wendy van Dijk, Linda de Mol, 2. use of ambassadors in targetgroup
- Internet, e-marketing activities (mail-a-friend constructions)
Action:
- Salespromotion in shop: display (shop-in-shop), joint-promotions with fashion industry (eg. Gsus)
- Internetstore, e-promotions
- Silverwearparties (compare tupperwareparties)
Development
Silverfactory in Nepal:
Producing partner in business is Dambar International. Manager/owner Dambar runs the silverfactory in Kathmandu. Nepal is a country in a difficult situation economically and politically; a civil war divides and destroys the country, tourism (one of the most important sources of income) is running back, job opportunities are low.
Lowercast employees:
Even though the cast system is officially abolished, castrules are still broadly applied. This implies that chances in life for lowercast people are even more dramatic then for others. Dambar himself is a lowercast person, but he created luck in life by working hard and meeting a Dutch sponsor. In several years he built up the factory and now employs 10 silversmiths, all lowercasts. This way they make a worthy living.
Factory in trouble:
At the moment the silverfactory is at high risk shutting down, due to declining sales by their distribution- and salespartner. Already some of the silversmiths had to be fired. Safe Silver wants to avoid this at all costs and wants to generate a structural salesflow.
Future Perspective:
Expectation is with our idea the silverfactory can not only continue existence, but also expand and employing more smiths the future. We expect to employ 20-30 people in the next two years.
