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Eden Creations

Marketing Management
by

Kailee Miner

on 6 February 2013

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Transcript of Eden Creations

Finally Marketing Problem Eden Creations Owner:

Company:

Date:

Mission:

Problem: Decision Factors Distribution

Target Customer

Packaging

Price

Website Quantitative Analysis BREAKEVEN ANALYSIS Alternative Comparison Directly to Customers vs. Retailers

Bridal Show vs. Private Show

TheWeddingRing.ca vs. advertisement vs. Personalized Website

New brand vs. Expansion of Eden Melissa Jean Eden Creations August 2, 2004 Business Expansion Controllable Factors Uncontrollable Factors Managers Forgetting to Restock

Customers

Competition Strengths Weaknesses Opportunities Threats Low Costs

Unique design

Manager’s knowledge on bridal industry Unknown Brand Name

Weak Network Channel

Limited Experience in Non-Bridal Jewelry Market

Unable to respond to growing demand due to non-existent labour Large Customer Base

Niche Market Competitors

Seasonal Fashion Trends

Strict Return Policies Sell directly to Customers

Host Private Home Show

Accept Personalized Co. website

Reject TheWeddingRing.ca

Reject Creation of New Brand CURRENT FUTURE BRIDAL SHOW ONLINE SALES CONTRIBUTION MARGINS
1. Retail price: $19.50
Retailer margin: 50%
Retailer’s cost: ($19.50x0.5)=$9.75
Variable cost: $4.10
Contribution margin: $9.75-$4.10=$5.65
(29%)

2. Retail price: $11.00
Retailer margin: 50%
Retailer’s cost: ($11.00x0.5)=$5.50
Variable cost: $2.90
Contribution margin: $5.50-$2.90=$2.60
(27%) Necklaces Earrings 1. Retail price: $6.00
Retailer margin: 50%
Retailer’s cost: ($6.00x0.5)=$3.00
Variable cost: $1.40
Contribution margin: $3.00-$1.40=$1.60
(29%) Fixed Costs $200 of supplies
$200 of store display accessories
$700 in advertising/promotion
$500 in start-up costs

Total: $1600 Breakeven Units Necklace 1 --> $1600/$5.65= 284 necklaces 1
Necklace 2 -->$1600/$2.60= 616 necklaces 2
Earrings -->$1600/$1.60= 1000 pairs of earrings Breakeven Sales Necklace 1 -->284x$9.75= $2769
Necklace 2 -->616x$5.50= $3388
Earrings -->1000x$3.00= $3000 Fixed Costs Breakeven Units Breakeven Sales $400 of supplies
$200 of store display accessories
$500 of miscellaneous costs

Total: $1100 Necklace 1 --> $1100/$5.65= 195 necklaces 1
Necklace 2 -->$1100/$2.60= 434 necklaces 2
Earrings -->$1100/$1.60= 688 pairs of earrings Necklace 1 -->195x$9.75= $1901.25
Necklace 2 -->434x$5.50= $2387
Earrings -->688x$3.00= $2064 Fixed Costs Breakeven Units Breakeven Sales Fixed costs: $1100
Booth rental: $1450
Booth preparations: $500
Business cards: $150
Free giveaways: $200
Fashion shows: $400

Total: $3800 Necklace 1 --> $3800/$5.65= 673 necklaces 1
Necklace 2 -->$3800/$2.60= 1462 necklaces 2
Earrings -->$3800/$1.60= 2375 pairs of earrings Necklace 1 -->673x$9.75= $6561.75
Necklace 2 -->1462x$5.50= $8041
Earrings -->2375x$3.00= $7125
Fixed costs: $1100
Website: $2600
Transaction cost: 2.9%

Necklace 1 ($19.50x2.9%) = $0.57 (73% vs. 29%)
Necklace 2 ($11.00x2.9%) = $0.32 (66% vs. 27%)
Earrings ($6.00x2.9%) = $0.18 (65% vs. 27%)

Flat fee: $0.55
Maintenance fees: $240 (12x$20)

Total:$3940 + $0.55 + 2.9% of each sale Costs Necklace 1: $19.50-$4.10-$0.55-$0.57 = $14.28
Necklace 2: $11.00-$2.90-$0.55-$0.32 = $7.23
Earrings: $6.00-$1.40-$0.55-$0.18 = $3.87


Necklace 1 --> $3940/$14.28= 276 necklaces 1
Necklace 2 -->$3940/$7.23= 545 necklaces 2
Earrings -->$3940/$3.87= 1018 pairs of earrings


Necklace 1 -->276x$19.50= $5382
Necklace 2 -->545x$11.00= $5995
Earrings -->1018x$6.00= $6108 New Contribution Margins Breakeven Units Breakeven Sales Develop Marketing Plan ($4000 to $12000) SWOT ANALYSIS
Full transcript