Sample Business Plans -> Watch Manufacturer
"Watch Manufacturer" Business Plan:
1.0 Executive Summary
Business Ideas applicable for this business plan:
This business plan was originally published
1.0 Executive Summary
It is the firm's intention to build and export its products to the United States and to make Grutzen Watches the number one selling European watch in the Western U.S. To do this the company's long-term goals are to to achieve a 20% market share in the U.S, build brand image and brand equity through marketing, achieve a sustainable 55% profit margin, and eventually produce luxury watches in addition to the initial, moderately-priced line.
Ownership is divided among three principal individuals who are putting up the initial investment. These include: Franz Grutzen - head of production department, Henry Winster - head of American division and sales and marketing division, and Walter Young - vice president of American division.
The German factory is located at 210 Autoroute 17, Frankfurt, Germany. The factory is 1,000 square meters and should be large enough for the first three years of the company's growth. The watches will be shipped to and distributed from Henry Winster's house at 343 Palm Avenue in Los Angeles, California. The watches will be initially sold in upscale watch stores in Los Angeles and San Francisco.
Grutzen's sales force will consist of Henry Winster and two freelancing sales representatives. Order processing will be achieved through communication between Henry Winster in the U.S. and Franz Grutzen in Germany.
The pricing strategy will be to initially undercut our main competitors by 10%, using a market penetration strategy. Then, pricing will be adjusted to be directly competitive with the other major competitors. The price per watch is expected to be around $100-$200.
One of the most important recent trends is that potential watch buyers are willing to spend higher amounts on watches because of the enhanced image appeal. Therefore, a company that can build a substantial brand image in this industry gains a significant competitive advantage. It is the aim of Grutzen to capitalize on its high quality and reasonable price while pursuing the innovative styles necessary for brand building.
The Break-even Analysis shows Grutzen Watches will be able to make a steady profit by the second year. The break-even point is only $12,000 per month, while projected sales are three to five (or more) times that figure.
Grutzen Watches is a watch company that produces wrist watches for sale in the United States - initially in California. The company will build its image as a quality watch first, and then will begin selling higher profit, luxury watches.
1.3 Critical Success Factors
To succeed Grutzen Watches must: