Marketing Plan

Agate Jewelry
Marketing Plan

Agate Jewelry
BP 44444
Minneapolis, MN, 55044
Phone: 123-456-7890
Fax: 123-456-7890
Email: info@agatejewelry.com
Web Site: www agatejewelry.com
Contact: Mimi Kinde

Marketing Plan

Table of Contents
EXECUTIVE SUMMARY...........................................................................................................................................3
MARKETING OBJECTIVES...........................................................................................................................................3
GOODS OR SERVICES..................................................................................................................................................3
RESOURCES NEEDED..................................................................................................................................................3
PROJECTED OUTCOMES..............................................................................................................................................3
COMPANY DESCRIPTION.......................................................................................................................................3
STRATEGIC FOCUS AND PLAN.............................................................................................................................3
MISSION/VISION.........................................................................................................................................................3
GOALS........................................................................................................................................................................4
CORE COMPETENCY...................................................................................................................................................4
SITUATION ANALYSIS..............................................................................................................................................4
INTERNAL FOCUS........................................................................................................................................................4
EXTERNAL FOCUS.......................................................................................................................................................4
INDUSTRY ANALYSIS/TRENDS.....................................................................................................................................5
COMPETITOR ANALYSIS..............................................................................................................................................5
SWOT ANALYSIS SUMMARY......................................................................................................................................6
MARKET PRODUCT FOCUS................................................................................................................................7
MARKETING AND PRODUCT OBJECTIVES...................................................................................................................7
TARGET MARKETS......................................................................................................................................................7
POINTS OF DIFFERENCE..............................................................................................................................................7
POSITIONING...............................................................................................................................................................8
MARKETING PROGRAM.........................................................................................................................................8
PRODUCT AND PRODUCT STRATEGY..........................................................................................................................8
PRICE..........................................................................................................................................................................9
PROMOTION..............................................................................................................................................................10
PLACE.......................................................................................................................................................................11
DATA AND PROJECTIONS.....................................................................................................................................11
COSTS.......................................................................................................................................................................11
FINANCIAL PROJECTIONS..........................................................................................................................................11
IMPLEMENTATION PLAN.....................................................................................................................................12
PEOPLE REQUIRED....................................................................................................................................................12
MANUFACTURING, FINANCIAL AND OTHER RESOURCES NEEDED...........................................................................12
TIMING......................................................................................................................................................................12
EVALUATION AND CONTROL..............................................................................................................................12
CRITERION MEASURES WITH OBJECTIVES................................................................................................................12

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Executive Summary
Agate Jewelry is a company, which specializes in the design, manufacturing and marketing of
unique handmade jewelry. Agate jewelry markets earrings, pendants, necklaces and bracelets,
which are all, designed by the master designer Mimi Kinde.
The company only uses the highest quality gemstones, pearls, Swarovski crystals and other
unique original pieces from Africa and Asia.
Every piece of Jewelry from Agate jewelry is handmade and unique. Therefore our customers are
always certain they will not find the same piece anywhere else. Even if two pieces seems similar,
since they were handmade, they are definitely so unique, an enthusiast can definitely tell the
special touch each piece has received.
Agate jewelry is planning to sell directly to its customers through its website, jewelry shows and
some jewelry parties. Agate will also explore the use of galleries.

Marketing Objectives
The market for Jewelry has changed in the last decay from mass production of boring identical
pieces that were considered safe or proper. The new jewelry customer prefers completely
unique pieces, handcrafted and selected to please the most eccentric taste.
Mimi Kinde, our designer was born in a family of gold jewelers in West Africa and was raised
with variety of original designing around her. She has developed that upbringing into a skill that
shows in her unique pieces
Agate jewelry wants to use marketing to increase its reach among its target customer base. Being
a start-up family business, the company would like to build a customer-based brand loyalty
through quality, uniqueness, but mostly responsiveness to the need of its customers.
The company wants to use its website, mass mailings, email marketing, and an impeccable
centralized Integrated Marketing Communication to send a brand image of high quality, superior
customer service and thus reach its target sales of $5000.00 a month which is right around breakeven.
Another avenue is participation in jewelry shows where Agate Jewelry will network with other
Jewelers and develop its customer base and work on increasing traffic to its website.
We also intend to maintain an annual sales growth of at least 10% a year for the first 5 years of
operation.

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Goods or Services
Agate Jewelry will be selling handmade earrings; necklaces, bracelets and pendants designed
using genuine gemstones and pearls. Each piece is unique and every collection is limited to
approximately 5 pieces.
Each piece reflects genuine craftsmanship and originality, and is made with the utmost care.
Each piece comes with a handmade gift box with their purchase.
Mimi Kinde uses carefully selected fresh water pearls, Swarovski crystals, special Asian
gemstones, original stones from West Africa and sometimes, unique unbreakable porcelain from
East Africa.
Those fine pieces are carefully mixed with silver claps, and some coiling that she personally
designs to obtain really unique bracelets, necklaces and earrings.

Resources Needed
Agate Jewelrys goal is to reach its customers through its website, through email marketing,
direct mailings, special promotions.
To achieve this:
-

Start our website with a very welcoming design with an ultimate message that fits into
our IMC message.

Sign up with an email marketing service provider. We have prospected Constant Contact
and will use their services

To keep costs down, we will use vista Print services to start a direct mail to targeted
customers that we know will be interested in our products.

We will purchase some marketing research about the jewelry market in the US.

Projected Outcomes
By doing very targeted big pull promotions during occasions such as: Mothers Day, Christmas
and New Year, Valentines Day, and smaller promotions through email marketing during other
holidays or throughout the year, we can will succeed in reaching our goals of $5000,00 a month
income.
From the get go, Agate Jewelry has chosen to invest in quality and the best designs and thus our
prices will reflect that commitment. Moreover, our marketing goal is to integrate that message of
quality and superior customer service which will make it possible to put a premium price on our
goods.
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Since our designer can also do her own claps and coils, the company stands to save enormously
by not having to purchase ready-made and more expensive raw material.
In sum, it will take just a very small number of very faithful customers to reach the sales target.
If we are able to implement 80% of our marketing goals, we will be well above our sales goal.

Company Description
Agate Jewelry is a Minnesota Limited Liability Corporation. The company is 100% owned by
Mimi Kinde, the founder. The company is a home-based start-up business operating out of the
owners home.
The company designs and makes handmade necklaces, bracelets and pendants designed using
genuine gemstones and pearls then sells them directly to customers through mostly three ways:
1- its website: www.agatejewelry.com
2 Seasonal jewelry shows
3 Jewelry parties
The company focus on upper middle market and sells to young successful or older customers
with a taste for very fine piece of art that are unique.

Strategic Focus and Plan

Agate Jewelry intends to give the best value for its customers. Our research shows us that we can
deliver for the same quality and craftsmanship an absolutely value priced items to our customers.
We intend to keep the company that way. But most of all, we want our customers to experience
something totally different when dealing with Agate Jewelry.
Our designers special sets of skills and the commitment of the company to keep abreast of
trends but also to travel around the globe looking for the most unique sources of inspirations will
put us always ahead of the curve in the industry.

Mission/Vision
Agate Jewelrys mission is to use inspiration, talent and the best selection of beads and peals to
give the customer that look they wont find elsewhere but with the customer not having to
breaking the bank.

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Goals
Agate Jewelry marketing goals are listed below:
-

To increase our inventory Turnover at least 10% at the end of the first year

To increase participation in shows and steadily establish a good network which would
generate leads and help traffic to the website grow 5% every month

To grow 10% over our current $5000.00 monthly sales every year

To make enough sales to marketing expense ratio decrease consistently by 2% every

month.

Core Competency
Agate Jewelry master designer Mimi Kinde has a unique set of skills and a background that
allows her to come up with designs that are so unique, they can always strike the interest of any
observers.
On top of this, she has studied not just the art of making jewelry based on beads, but she can
make her own claps, coils, which is such a value to customers, and a unique feature in the
jewelry landscape.
Agate Jewelrys inspiration is also one reason we believe we are providing superior value. From
Africa to Asia to the local inspiration, our jewelries show clearly their uniqueness, and thats
exactly what our customers look for the most.
With these skills, Anias is able to price the best value for customers since the competition cannot
match our prices for the kind of value we put in our work.

Situation Analysis
Here is our current Situation in the Jewelry marketplace: To achieve this we will do a SWOT
analysis:
The following SWOT analysis captures the key strengths and weaknesses within the company,
and describes the opportunities and threats facing Agate Jewelry.

Internal Focus
Strengths

We base our core strength on our unique designs and selection of parts.

We will be a Strong relationship with galleries, other jewelers and our suppliers.

Our customers can count on our flexibility to provide custom pieces.

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Weaknesses

Due to our small size, it might be possible that we are unable to meet an unexpected rise
in demand

Currently, we dont have enough brand recognition in the market.

Our very limited time and budget does not allow us to market the company to the target
group.

Sometimes it takes a long time to come up with new designs.

External Focus
Consumer/Social
There is a growing market for the premium custom design Jewelry. The uniqueness of our
product offering is well placed to meet the growing demand.
If we are able to grow the business and get help for Mimi Kinde so that she can completely be
immersed with just selecting the right pieces, designing and making the jewelries while
somebody else takes care of the administrative issues, website, and marketing, the company can
quickly grow
Most handmade jewelry makers in the market come up with pieces that arent fresh and feature
enough inspiration from all parts of the world, and that presents us with an opportunity to gain
market share

Competitive
There is all kind of competition in the jewelry market. Ranging from the fake plastic and regular
class based jewelry to diamond, and emerald based pieces.
And each category has so many ways the business can be structured.
But in our case, our focus is to appeal to the typical customer who can afford a unique piece of
jewelry that hasnt been made in a production facility, but has been handmade in-house by the
designer herself and is able to assist with some customization if needed.
In this category, there are very few and networking as well as strong brand awareness comes in
handy to be ahead of the competition.
One external threat from a different kind of competition is from artistic counterfeiters that try to
reproduce the companies.

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Technological
We are relying on using as much technology as possible to present ourselves professionally. That
includes being able to accept electronic payments of all kinds from our laptop at shows. That also
includes a state of the art small business Jewelry business management software and accounting
software to go with it.

Economic
Describe the current economic environment in which you will be competing. What trends can
you expect (economic tightening, expansion, etc.)? Are these trends an opportunity or a threat?
Describe the current state of the economy in which you will operate and your hopes for the
future.
We are currently going through a recession. Several small business and also big shops have
closed shop. The recession is a threat but at the same time, this presents a formidable opportunity
for start-ups. Customers are more value oriented than ever. This is exactly what we want to offer
them. And the fact that many shops have gone under leaves a niche for us to seize.

Regulatory
There are talks of changes in tax laws, but this should not impact a small business of our size for
a long time.

Industry Analysis/Trends
The market trend within the jewelry industry is a movement toward custom, unique pieces as
well as limited production items. This trend is in response to the climate of the industry in the
mid-nineties where the jewelry market was flooded with thousands of identical pieces of
jewelry. Within a few years, people were running into others who had the same piece of jewelry.
This element of commonality or "run of the mill-ness" fueled demand for artistic jewelry that
was in low production and unique, not something that you would see very often.
Customers are using similar pieces of jewelry as a way of creating distinction from the common
population, a way to stand out. This desire is part of a broader desire to be different.

Competitor Analysis
Nature of Current/Likely Competitors
The competition landscape in the jewelry market is very wide. It ranges from the fake plastic
beads and regular glass based jewelry to diamond, and emerald based pieces.
And each category has so many ways the business can be structured.

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But in our case, our focus is to appeal to the typical customer who can afford a unique piece of
jewelry that hasnt been made in a production facility, but has been handmade in-house by the
designer herself and is able to assist with some customization if needed.
In this category, there are very few and networking as well as strong brand awareness comes in
handy to be ahead of the competition.
One external threat from a different kind of competition is from artistic counterfeiters that try to
reproduce the companies.

Current Status of Prospective Competitors

Looking at our most direct competition, which is the handmade jewelry makers, I can say that
most of them are small family size shops. Although there are some that are big and focus on
doing just the design work then outsource the manufacturing. Those ones create pieces that
cannot be labeled as truly unique and present an opportunity for Agate Jewelry.

Competitive Barriers
We have a clear competitive advantage over the big retailers because of our personal touch. A
small shop is very responsive to its customers. The uniqueness of our designs also enables us to
offer our customer an implied guarantee that they will almost never see the same piece of jewelry
many times being worn by other people.
The biggest hurdle for us will be the option for our target customers to go for the very cheap
pieces with plastic beads and unauthentic stones, which big retailers love to sell.
Another one big barrier is with the counterfeiters.

SWOT Analysis Summary

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Strengths

Weaknesses

We base our core strength on our

unique designs and selection of
parts.

Due to our small size, it might be possible

that we are unable to meet an unexpected
rise in demand

We will be a Strong relationship

with galleries, other jewelers and
our suppliers.

Currently, we dont have enough brand

recognition in the market.

Our customers can count on our

flexibility to provide custom
pieces.

Our very limited time and budget does not

allow us to market the company to the
target group.

Opportunities

Agate jewelry is building brand

awareness and can increase its
market share

If we are able to grow the

business, Mimi Kinde can get help
so that she can completely be
immersed with just selecting the
right pieces, designing and making
the jewelries while somebody else
takes care of the administrative
issues, website, and marketing, the
company can quickly grow

Sometimes it takes a long time to come up

with new designs.
Threats

The rise in custom made jewelry may

increase competition for quality beads,
crystals and findings

Counterfeiters that enter

and mimic our designs.

The recession in the economy is having an

impact on the spending habit of customers.

the

Most handmade jewelry makers in

the market come up with pieces
that arent fresh and feature
enough inspiration from all parts
of the world, and that presents us
with an opportunity to gain market
share

SWOT Analysis Matrix

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market

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Market Product Focus

Marketing and Product Objectives
Our market consists of upper middle class mostly suburban women.

Target Markets
The market we will pursue will be composed mostly of women in two types of population:
-

The young and successful upper middle class with enough disposable income to afford a
$75.00 a piece necklace to wear on their business suit and show trendy uniqueness.

The older women very close to retirement, or already retired with a taste for select piece
of art and able to spend on family with gifts ranging from $40.00 to over $100.00 a set of
unique jewelry.

Our research indicates that of our bigger market for jewelry and art, this sub-segment is the most
prone to be both an impulse buyer and also the buyer that would consider our product as a gift
for family and friend. They can also be the group that can expect this product as a gift on the
various occasions that we typically offer promotions to increase sales.

Points of Difference

Good/Service Comparison
Price

Your
Product
Midpoint

Competit
or 1
Very High

Competit
or 2
Extremely

Competit
or 3
Low

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high
Perceived Quality

High

High

High

Low

Marketing/sales Advantages

Direct to
Customer

Galleries +
High end
retailers

Retailers
only

Feature 1

High Value
for
customer
Uniquenes
s or our
product is
always
unmatche
d
Valuepriced

Direct to
customer
+ few
select
outlets
Very highly
priced

Very highly
priced

Low price
due to low
quality
Very blend

Feature 2

Benefit 1

Benefit 2

Very high
quality

Maybe
Unique but
featuring
kind-like
products
only
Highly
priced

High
quality +
have
brand
recognition

Maybe
Unique but
inspired by
the same
local style
Highly
Priced

High
quality +
brand
recognition
+
dedicated
clientele in
upper end
store

Low Priced
= Bigger
market =
may have
a higher
volume of
sales
Huge
market
reach

Positioning
Agate Jewelry intends to position itself in the mind of the customer as the highest quality bead
jewelries, with the best sources of inspiration but still at a price that beats anything close to that
product. A positioning map follows:

Creative, eccentric designs. This strategy might be replicated, but not with the same
integrity. It requires too much skill.

The uniqueness of every piece that we create will make it possible for us to stand out
from the competition. We use parts from so many different places around the world that
we are confident the

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Marketing Program
Our full marketing program is detailed below.

Product and Product Strategy

Product Class
In general, we will focus on young and successful upper middle class with enough disposable
income to afford a high quality piece necklace to wear on their business suit and show trendy
uniqueness.
We will also focus on the older women very close to retirement, or already retired with a taste for
select piece of art and able to spend on family and close friends on quality gift and wouldnt dare
buy cheap items because of the price.

Current Product Life Cycle Stage

This is a start-up; therefore our product is at its introduction cycle.

Supporting Customer Services Needed

There will be in some instances the possibility to do customizations for some customers.
The company is a small family business, and does not require a high level of customer service
center. Most customers can simply email us at our web address and their concerns will be
reasonably addressed. Due to the handmade nature of our products, defaults are extremely rare.
Nevertheless, we have a pretty simple return policy, which should enable us to limit scams.

Warranty
At this time, no warranty is provided with our product. This is typical of this type of product in
the industry.

Branding
Here is an overview of our branding philosophy:

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Our branding is going to be that of a family business. Though Mimi Kinde wholly owns the
business, she gets consulting help from her husband. Thus the branding is definitely is one of
a family business, which is entirely vested in the success, and reputation of the business.

The fact that the success and reputation of the business is very important to the whole family
will be one way to show the customer that we will always go out of our way to satisfy them
over our competition. We will also always provide clear evidence of the quality of our
product. Above all, there will always be that personal touch that is a competitive advantage
and thus a plus for our customer.

In the end, the uniqueness of our product offering will make our brand stand.
And to top it all, we will back our products since we know we carefully select quality parts for
every single piece we create. Our brand will represent some sort of exquisiteness for our
customers.

Packaging
All our pieces come with a very beautiful design making them immediately ready for a gift. Our
packaging ensures the product is secure and wont sustain any damage.

Price
Our pricing strategy is detailed below:

Nature of Demand
The demand for Jewelry items can follow cycles in general. Typically, some holidays such as
Mothers day, or Valentine day and even Christmas day can see a spike in demand. However,
there is always the occasional demand that can maintain a certain volume of sales in between the
spikes for the product that has good brand recognition.

Price Levels
As stated above, Agate Jewelry is appealing to the customer who wants very good quality
product. Our designer is very skilled and can bring such a uniqueness in every piece of jewelry
she makes that we are certain a premium pricing will still command a good margin over our cost
of production.
We will use the seasonal spike in demands, however, to push in promotions to bring in additional
customers.
The pricing scheme will be based on the cost of the raw materials and the amount of time
required to construct the piece
In general, our listed prices will always revolve at the high end of medium pricing, which is still
very competitive for the quality of our products.

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Adjustments to List Price

For adjustments to List Price, we will use a percentage rebate based on customer types.
We intend to price very competitively and will not need to do any special adjustment to prices
except during promotions:
- Repeat customers who purchase often (at least 4 times in a year, or at least a certain dollar
amount)
- During shows and parties, we will push older designs with a rebate to every customer to
increase sales
- During special promotions (special holidays), we will use a referral system where
customers who bring in friends may receive a percentage discount

Promotion
The avenues of distribution will also serve as the methods for advertising and promotion:
We will be obsessed with customer attention. Agate Jewelry philosophy is complete customer
satisfaction. This will occur at whatever cost. Even if this does not make sense relative to shortterm profits it will be done, recognizing that this attitude will only bolster long-term business
health.
For this reason, we will go out of our way to do as many special pricing as possible to keep our
current customers and make them do referrals for us.

Promotion Objectives
Our website will be our number one channel to tell the customer about our commitment for
quality.
-

First, by our selection of the best and nicest beats, stones and materials.

Second, we will always use premium silver wire to connect the stones

We make our own claps, and most findings to give them even more uniqueness

But above all, we will pass the savings we make by taking every part of every artistic
jewelry in our own hands onto our customer

In the end, the customer will always be sure to get the best value with us. Every avenue and
every contact with the customer will serve that very purpose.

Promotion Blend

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As stated earlier, we will use the following to promote our brand and increase sales:
-

Direct mailings

Email marketing

Attending shows and network with other jewelers

Jewelry parties

Our website will be a great avenue to promote our special events

Children birthday parties to teach them about beading

ADVERTISING

Being a small startup, we plan on using the most costly effective advertising channels to promote
our products:
1 Our website
2 Bead and Jewelry shows
3 Written materials, which we distribute in salons, barbershops and malls
4 Social networking: using facebook, twitter, blogs and Etsy.
5 On a very reduced way, we participate in select community events by donating a piece as a
prize to put our brand out there.
PERSONAL SELLING

Personal Selling is heavily involved during our shows and our parties. Several of our customers
do ask questions about the origin of some of the stones we use in our very unique pieces. Most of
our pieces carry a personal story behind them. So, this is a very special occasion for us to
connect with our customers, who often are interested in that personal connection.
During birthday parties, teaching girls how to make the simplest bracelets and/or earrings also
helps connect with their parents and make them refer other friends. These shows and parties are
such an excellence source of referral since the personal touch makes half the sale for us.
SALES PROMOTION

We are a direct to consumer start-up, although we are exploring using galleries. Our sales
promotions will be on the form of rebates.

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PUBLICITY

By participating in community event, church events, and also heavily networking we get a lot of
publicity.
INTERACTIVE MEDIA

By using social networking, blogging and email marketing, we can increase our online visibility.
At this time, we see no need of promotional disks. We have some special online couponing that
can be tailored to specific referral from customers.

Who Will Do the Work?

Mimi Kinde, our master designer does the bulk of the work. Agate, pretty much is one-woman
shop. She shops around for the beads, does the designing and also makes the jewelry. She also
takes care of keeping the inventory.
Mimis husband is consulted for quality assurance, and suggestions on some designs. She also
helps with online presence and at times business development, especially business
communication.
Mimi Kinde does promotions on a project basis.

Place
There are several bead and jewelry shows locally in Minneapolis, and also across the country.
Agate jewelry participates in a few of them.
Our website is always updated with new products.
Agate jewelry organizes parties on a referral basis, or in-house close to holidays or for birthdays
We are exploring using galleries.

Data and Projections

Thanks to a very low expense, we expect to break even by the beginning of our second year of
operation:
Notably, we will make most sales during the month of February (Valentines day), around
Mothers day, Easter, Christmas and New Year.
We plan on participating in the many shows happening around Minneapolis at the beginning.
January 2011: $2000

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With an average monthly increase of 8.0%, we are very confident to reach $5000.00 sales by
year-end. This is an average sales forecast since we presume that there will be influx of sales
during those holidays.

Costs
Our expenses are very little. Using the Internet enables us to participate in blogs, which are free.
Facebook, twitter and most web resources come free or at the lowest cost. Etsy charges no setup
fee, but 20cents per item plus 3% of sales.
We also use print items through vista print, which has promotions running constantly. Our
business cards, mass mailings and flyers total cost us less than $600.00.
Lastly, we use Constant Contact for email marketing. As of now we have less than a 100 emails
in our database. Thus, the service comes free.

Financial Projections
Financial Projections
2011

2012

2013

Shows and Parties

2000

2600

3300

Website

1900

2900

3700

other

1100

1500

2000

5000

7000

9000

Variable

1900
2400

1900
4000

1900
5900

TOTAL EXPENSES

4300

5900

7800

700

1100

1200

Sales

TOTAL SALES
Expenses
Fixed

Projected Income:

Implementation Plan
Our implementation plan is detailed below:

People Required

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Agate Jewelry is a home-based business and has no plans on hiring at this time. The bulk of the
work will be done by the master designer and owner Mimi Kinde.

Manufacturing, Financial and Other Resources Needed

All costs have already been factored in the financial projections above. Only in the event that we
have an astronomical rise in demand for our product, will we make adjustments. Agate Jewelry
plans to keep the business family-based and small enough so every piece is truly handmade and
represents a unique product of inspiration.

Timing
Parties and Shows are all done on a project basis, and thus do not require a pre-established order
of implementation.
Naturally, we are working on the website at first while working on networking with suppliers and
other jewelers so that we are ready for shows.

Evaluation and Control

Agate Jewelrys marketing plan is to serve as a guide. Several areas will be closely monitored to
test our goals along the way. Strong adjustments and contingency plans will be implemented in
the event we are diverting too far away from our pre-established goals.

Criterion Measures with Objectives

These are some of the areas that we will closely monitor to gauge our success rate:

Our Expenses will be checked monthly and annually.

Our Revenues will also be checked monthly and annually.

We will always check to see if the same customers come back.

Word of mouth referrals

Customer satisfaction.

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