Couture Reinforcement Co.

Kasey Salter

Marketing 432 Final Strategic Plan

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 Mission Statement

The mission of Couture Reinforcement Co. is to become a top-of-the line, fashion-

forward medical apparel company. Couture Reinforcement Co. strives to provide their customers

with the highest level of satisfaction by offering the most well-constructed and ergonomic

products in the industry. Their employees work meticulously and ambitiously, and are

determined to fulfill the customers’ every need. Couture Reinforcement Co. has a focus on

giving back to the community and promotes the inclusion of local hospitals in their day-to-day

operations.

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 Organizational Objectives

Couture Reinforcement Co. strives to provide their consumers with the highest-quality

and most ergonomic products on the market for fashion-forward, medical support apparel. The

company’s employee satisfaction is of the utmost importance, therefore the employees will be

offered above-average wages and benefits and opportunities for exposure with the goal of a 90%

retention rate the first operating year. Because inclusion of the local community and giving back

to the people is such a crucial part of Couture Reinforcement Co.’s operations, they intend on

partnering with local hospitals for community service, and then electing one patient per month to

design their own medical-clothing item. Since Couture Reinforcement Co. is just opening doors,

an important financial objective of Couture Reinforcement Co. is to break even within the first

year of operating. Lastly, Couture Reinforcement Co. set a goal to penetrate the market by 17%

over the first 9 months.

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 Action Plan

To be able to reach the level of customer satisfaction that Couture Reinforcement Co.

strives for, they will need to utilize various resources to ensure that their product is truly the most

high-quality and ergonomic product around. Not only will consumers be looking for a fashion-

forward alternative to medical braces/supports/casts, but they will be looking for the comfort

factor and the ability for the products to still support healing. That being said, Couture

Reinforcement Co. will delegate 35% of their funds strictly to research and development. This

research and development will ensure that the materials being used are not only sustainable but

can support and facilitate the healing process. The research will also be utilized in calculating the

most comfortable positioning of the garments, that way the consumers are granted a pleasant

experience.

Another major component to promoting the highest level of customer satisfaction is

ensuring that the customer service is excellent on all fronts. Because of the condition that many

of these customers are going to be in when seeking out Couture Reinforcement Co. products

(either in pain following a surgery, nerves prior to a surgery, experiencing stress for a loved one)

the customer and seller interaction is going to need to be impeccable. That being said, the

employees need to be knowledgeable of the technology behind Couture Reinforcement Co.

products, and need to be able to effectively relay how the products can be put on, taken off,

washed, and worn. The employees will need to devote time to learning about healing conditions

for their clients, that way they are educated on what their customer may be going through in

terms of pain. If an employee seems to be not only personable but is able to communicate the

benefits of the product and how the product works best for a person with that specific healing

condition, there will be much more positive feedback.

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 To ensure that the employees feel satisfied and to promote the 90% employee retention

rate, Couture Reinforcement Co. offers many employee benefits, as well as competitive wages

and design opportunity. To begin, they will offer competitive starting wages, with the entry-level

or internship wage starting at $17/hr. Since entry-level positions/internships are paid more than

average, Couture Reinforcement Co. therefore is positioned as a company that cares about the

well-being of their workers. Additionally, there will be health and dental benefits for these

positions after 1 year working with the company—therefore increasing the likelihood of

individuals staying at Couture Reinforcement Co.

Since Couture Reinforcement Co. is centered around fashion but also healthcare, there

will be the opportunity for one person each month to design the newest garment for a patient

who has been recently operated on in a local hospital. The chance to be able to design a product

while working intimately with an elected patient allows for exposure within the company, as

well as the satisfaction of being able to see their ideas come to fruition. Couture Reinforcement

Co.’s ability to foster creative freedom and build a culture where employees are valued for their

visions is another way that their company will reach a 90% retention rate.

In terms of giving back to the community, Couture Reinforcement Co. is extremely

involved with the hospitals that they work with when creating their products. The company’s

employees are offered the chance to volunteer at the local hospitals and specialists’ offices in

their off-hours—and in doing so they strengthen their relationship with the community and

increase their knowledge on the different conditions that patients who they are designing for may

be facing. This helps the hospitals as well because rather than paying individuals to be doing

simple tasks, they have volunteers who they are already familiar with and are able to use that

money elsewhere in the hospital. Couture Reinforcement Co.’s workers are also then becoming

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introduced to some of the patients either already at the hospital or who may soon be at the

hospital, therefore increasing their chance of being the monthly designer for one of the chosen

patients.

The other way that Couture Reinforcement Co. gives back to the community is by

creating a personalized garment for one local hospital patient each month. The company will be

coordinating with the hospital to choose a patient recently out of surgery, who wants to have a

fashion-forward medical garment designed for their personal use. The inclusion of patients in the

design process is a way to spread brand awareness while also giving surgical patients something

to look forward to after their surgery and during their healing. Once the product is created for

them, Couture Reinforcement Co. will give away this haute product to the patient free of cost so

that they can be comfortable and cute!

Another objective of Couture Reinforcement Co. is to break even within the first year of

operating. The only way that this will be able to happen will be if there is enough awareness

surrounding their company, and the quality of the work that it produces. Testimonials from

regular consumers, as well as the individuals that have had products designed for them are going

to be a crucial way for Couture Reinforcement Co. to gain more exposure. Using PR and social

media is going to be fundamental to Couture Reinforcement Co.’s success. Additionally,

ensuring that the products are distinctively different from any other medical support products

will likely help create a powerful reputation for the company.

The second way to ensure that Couture Reinforcement Co. breaks-even is to watch their

profit-loss ratio very carefully. Making sure that there are employees staying on top of company

budgeting and spending, as well as on top of promotions for the company is crucial. Utilizing

resources that can be made readily available without having to overspend is going to be an

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important factor in determining how financially feasible operating Couture Reinforcement Co.

can be.

The last objective that Couture Reinforcement Co. seeks to reach is a 17% market

penetration in the first 9 months. Although the market penetration seems a bit high for only a 9-

month period, there is not much competition in terms of fashion- oriented post-surgical support.

To be able to hit this goal, Couture Reinforcement Co. must offer their product to the market

already existing based around medical reinforcements. Selling the products to patients, the actual

hospital, and other distributors is how the market is going to be penetrated and then later on

developed.

Penetrating the market within 9 months can be difficult, but is attainable. The reason

Couture Reinforcement Co. will be targeting a 17% penetration is because there are not many

large companies currently positioning themselves in the same market. While there are medical

support braces and bandages offered, and clothing lines also offered, the two are typically not

correlated. That being said, penetrating the market may not be as difficult as anticipated because

of the fact that it is a niche where other consumers have a gap of available products.

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 Competitive Analysis (10 Pt Analysis)

Mission Statement

“3M’s actions are guided by our corporate vision and values of uncompromising honesty and

integrity. We are proud to be recognized worldwide as an ethical and law-abiding company. As a

company, we are committed to sustainable development through environmental protection, social

responsibility and economic success.

Our guiding values include:

 Act with uncompromising honesty and integrity in everything we do.

 Satisfy our customers with innovative technology and superior quality, value, and

service.

 Provide our investors an attractive return through sustainable, global growth.

 Respect our social and physical environment around the world.

 Value and develop our employees’ diverse talents, initiative, and leadership.

 Earn the admiration of all those associated with 3M worldwide” (Who We Are, 3M

Company).

Distinctive Competencies

3M Company has many strengths within their industry, however what really sets them

apart from the competition is their ability to dedicate time, energy, and copious amounts of

money to research and development. 3M Company invests in the research that they need to

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ensure that the products they are making are not only sustainable, but ergonomically effective.

They take into account which materials and capabilities of each product will lead to the product’s

success, based upon customers’ feedback. For ACE bandage, the research and development that

3M invests in ensures that the bandage will not only be comfortable, but offer support and gentle

pressure on the injury. The success of ACE bandage and the brand is primarily due to the

consideration from research that 3M takes when creating, or readjusting their products.

Another distinctive competency that 3M Company holds is their global operational

presence. Within the company, there are manufacturing facilities in not only 29 states in the US,

but in 36 countries across the world. Within the US, there are 75 manufacturing facilities, and

spread across the 36 countries there are an additional 107 facilities (3M Company- SWOT

Analysis, D&B Hoovers). However, 3M also has various operational facilities in an additional

34+ countries, where sales are also conducted. This all being said, their strong operating

presence allows for 3M to be a leader in production of a variety of products and a prominent

seller each area, therefore slapping their label on more products and ensuring that their label

becomes more recognizable. The ability to move a company to a global scale and then continue

production and sales for such a plethora of products makes them stand out in comparison to their

competitors.

Trends/Conditions in the External Marketplace

One trend in the external marketplace that is a disadvantage right now for 3M and will

cause a threat to 3M Company in the future is the advancement of technology used to create

ethically. Ethics have been a major player in business lately, as consumers want to see

companies taking away animal testing, using recyclable materials, and incorporating the TBL.

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Since 3M is a prominent leader known for R&D and using the latest technology to construct their

products (3M Company, 2019), the rapid acceleration of the tech industry has provided a

challenge in terms of the ability to stay on top of ethical product marketing and product

development. As the US Ethical Consumer Reports from Mintel Academic notes, 3M Company

tests on animals and are not a very transparent company (2015). Furthermore, the expectation of

consumers to see 3M’s products created ethically makes it extremely difficult to then market the

older products which have clearly not been adapted to fit the current markets’ needs. Lastly, 3M

Company has found itself in many lawsuits lately for the ineffectiveness of their products due to

lack of technology, with one of the latest suits focused on the “Defective Military Earplugs”

(Barenboim, 2018). The US Government would have to investigate 3M Company for their

construction of the earplugs, and since 3M Company is not known for being an overly ethical

company, they settled for $9.1million dollars (Barenboim, 2018) to avoid the investigation.

Organizational Objectives

3M’s organizational objectives are based upon both their finances and their corporate

social responsibility. In terms of finances, 3M wants to grow between 8-11% in earnings per

share, 3-5% organic sales growth, and have a 20% ROI between FY19-FY23 (New Five-Year

Plan, 3M Company 2018 Annual Report). In terms of education, 3M strives to train at least 5

million people around the globe on patient/worker safety. Other goals instituted by 3M would be

extending the use of renewable energy to 25% of the total electricity used. Lastly, 3M Company

wants to begin to invest more in research and the potential development of more sustainable

materials—this goal is influenced by consumers’ demands being met (Making Progress, 3M

Company).

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Strategic Business Units

3M Company is a very diverse company, with a plethora of products offered to their

consumers. The four main business units that the products are segmented within are as follows:

Safety and Industrial, Transportation and Electronics, Healthcare, and Consumer 3M (3M

Company-Business Description, D& B Hoovers). The ACE brand adhesive bandage falls under

the consumer segment, as the product was developed to support bodily injuries and encourage

accelerated healing but is easily accessible for a consumer to pick up at a general drugstore for

their individual use. Some other well-adopted product brands that are offered by 3M Company

within these four segments are Post-Its, Scotch Tape, Nexcare, Scotchgard Fabric Protectors,

Scotch-Brite Scouring Pads, Command Strips, and Filtrete Home Air Filters. Medical and

surgical supplies, home and office supplies, optical film solutions, furnace filters, gas and flame

detection apparatuses, and automotive components are only a few of the products offered by 3M.

Overall, 3M Company accounts for many well-recognized brands and masses of products within

these business units.

Organizational Strategy for Growth

3M Company uses market penetration as a strategy for growth to ensure that their

position in the market is held. 3M Company’s main way that they continue to penetrate the

market and keep their existing customers is through their brand awareness and value in brand

equity within their portfolio. The consumers who have purchased from 3M Company continue to

purchase from 3M Company because of the fact that they are amongst the main brands

associated with certain industries and needs: Scotch Tape, ACE Bandage, Command Strips, and

Filtrete Filters, for example, are some of the most well-known brands that 3M Company owns.

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According to Marketline Advantage, “Strong brand portfolio increases brand recall and promotes

repeat purchases.” (Robust Portfolio of Brands).

3M Company also uses product development as a strategy for growth, that way they can

ensure that their company’s reputation will live on. Within the last 3 years, 3M has produced and

introduced many new items under their brands to the public, including the New Scotch High

Tack Box Sealing Tape 375+, 3M M*Modal CDI Engage One technology, 3M Metal Mesh

Technology, New Liquid Polymer Colorant, New 3M Expanded Beam Ferrule and Connector

System, etc. In terms of wearable adhesives from 3M company, they have produced a new

technology named the 3M Extended Wear Medical Transfer Adhesive 4075 (Press Releases, 3M

Company).

Another organizational strategy that 3M Company uses is the market development

strategy. They manufacture and distribute their products globally and are constantly expanding

their operations to new countries, therefore offering their products to a wider range of

consumers. For example, 3M manufactures and distributes ACE bandages across the globe,

therefore offering the same ACE bandages that customers in the US have to new customers in

other locations, increasing the likelihood of profitability via penetrating a new market.

Increase/Decrease Sales

In the past 3 years, 3M Company’s sales have grown quite steadily. By the end of year

2016, 3M reported $30.1 billion in annual sales. At the end of 2017, 3M Company’s sales had

increased to $31.7 billion in annual sales. Finally, the end of 2018 had a reported $32.8 billion in

sales annually (Sales, 3M Company 2018 Annual Report). That all being said, the sales increased

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by approximately 5% between 2016 and 2017, whereas between 2017 and 2018, the sales

increased, but by a lower percentage of about 3.3%.

Elements of Marketing Strategy

3M Company has numerous different demographics and psychographics that they cater

to, depending on which product line/brand the consumer seeks. Generally, since 3M has such a

wide array of product lines and services, the demographics are fairly general—the age range that

is most likely to buy 3M products are typically under 65+ and the most prominent race that uses

3M Company’s products is Asian (3M Brand, 2019). The likelihood of purchasing 3M

Company’s products increases with income and generally, higher incomes (around 60K+) are

more frequent users of 3M’s products (3M Brand, 2019). Because of the nature of many of the

products, college/additional schooling is more common for the consumers of 3M, and it is found

that the market utilizing 3M Company’s products is more likely to not have kids than to have

them. Typical shoppers of 3M may be found shopping at a club store during the afternoon, and

typically tend to be stocking their cabinets when they are out shopping rather than on urgent trips

(3M Brand & 3M Company, 2019). However, when looking into solely into 3M’s ACE Bandage

specific brand, many of the consumers are more focused on supplying first aid to their children,

therefore the demographics and psychographics vary slightly (First-Aid-US, 2017).

In terms of pricing, 3M Company prices their products competitively, or according to the

status-quo. Because of their status as a global company, 3M has to consider the transaction costs

along with any taxes for selling their products—therefore encouraging 3M to base their product

pricing upon the competitors. Additionally, the pricing also takes into account the research and

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development that has been done to create the product when pricing it. When 3M allocates

extensive funds so they can produce a new cutting-edge, innovative product, they are going to

price it according to that, as is common with competitors as well. The other products which have

been in circulation longer and haven’t been updated or recreated will tend to fall closely with

their competitions’ pricing as well for similar reasoning.

When it comes to distribution, 3M Company is known for their operational presence in

more than 70 countries around the world. Distribution is intense, as there are extensive

distribution sites both in the US and globally. Products from 3M are distributed for retail to

Home Depot, Target, Walmart, Staples, and many more major chain and club locations. There

are distributors in 200 countries worldwide, and 3M Company also maintains their distribution

via their online store.

As for promotional and advertising strategies, 3M Company uses numerous tactics to pull

in consumers. First, 3M Company strategically relies on the overabundance of their product

selection in their distribution sites, therefore enhancing their brand’s reputation. Additionally,

3M is very conscious of remaining a top contender for sustainability—always making sure that

their products are reflecting society’s demand for eco-friendly and green materials and practices.

Lastly, 3M Company utilizes ad campaigns, TV commercials, and social media accounts to

project their vast product range to the public.

Elements of Market Planning

While 3M Company started as a struggling mining and manufacturing company, they

have been able to utilize their market plan to seize opportunities, diminish threats, and become

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one of the top manufacturing companies across the globe. In order to continue growing and

become more successful, it’s important to realize the opportunities and threats that 3M Company

currently faces. To start, 3M Company has the opportunity to expand their manufacturing into

more countries—that way they are able to establish a more dominant position in their

underperforming regions globally. Another opportunity for 3M is the ability to make acquisitions

and therefore strengthen their brand and expand their customer base. The last opportunity for 3M

Company is the ability to better market their product portfolio to grow their business (3M

Company- SWOT Analysis, D&B Hoovers).

One major threat that prevents 3M Company from being more successful than they are

currently are is the fluctuation in foreign currency (3M Company-SWOT Analysis, D&B

Hoovers; Foreign Currency Fluctuations, Marketline Advantage). As Marketline Advantage

mentions, operations of the 3M Company are spread across over 70 countries (within the

Americas, EMEA, and Asia Pacific)—therefore the currency will not always be the same. Since

3M’s financial statements are in the US dollar but approximately 60% of their revenue is derived

from outside the US (Foreign Currency Fluctuations, Marketline Advantage), the company

becomes susceptible to the risk of fluctuations in exchange rates. Another risk that faces 3M is

the consideration that if the US dollar becomes relatively stronger than the other foreign

currencies, their projected growth rate of sales and earnings may potentially be affected (Foreign

Currency Fluctuations, Marketline Advantage).

In order to avoid this risk, 3M currently enters into “foreign exchange forward and option

contracts” in an attempt to mitigate the effects of the changing exchange rate on the cash flows

that are derived from other countries, although it cannot be said that it will combat all of the risks

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associated with fluctuations of the foreign currency affecting their sales. In summary, the net

investment of the foreign subsidiaries may end up ultimately causing inconsistent fluctuations in

the cash flows related to the sales and earnings of 3M Company’s foreign denominated

transactions (Foreign Currency Fluctuations, Marketline Advantage). This is a threat because if

a company is unable to analyze their data with confidence, knowing that their numbers are

correct and knowing that the capital expenditures and earnings are all spot on, it makes moving

into the future with finances much more difficult. Also, it can be difficult to prove that the

company isn’t losing money in any of these foreign countries, since tracking the cash flow

between numerous countries can be a tedious and long process to follow. If the profitability is

affected due to the foreign currency fluctuations and tracking of the foreign currency, 3M will

suffer since much of their business is conducted overseas.

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 Environmental Analysis

Introduction

In business, many external factors out of the company’s control can affect how well the

business performs. Factors such as social issues, political agendas, and the economy can all play

a major role in how well consumers may adapt to a new product or service in either a time of

crisis or a booming market economy. In this analysis of the external environment for Couture

Reinforcement Co., the social factor that will be analyzed is the increase of organic agriculture,

and the political factor that will be explored is how the upcoming election and current

Presidential healthcare reforms change the consumer base that Couture Reinforcement Co. is

able to market to. Additionally, economic factors such as the increase in personal consumption

expenditures (PECs) on healthcare, and the declining inflation rate will also be deemed

indicators on how well Couture Reinforcement Co. will perform.

Social Analysis

One social factor that affects Couture Reinforcement Co. is the extreme growth of

organic agriculture. According to Food and Agriculture Organization of the United Nations,

organic agriculture is defined as “a system that relies on ecosystem management rather than

external agricultural inputs” (2019). Essentially, organic agriculture relies on the natural

interactions of an ecosystem to farm more sustainably, rather than trying to force growth of new

crops or resources in places that they are not native to (or in a harmful manner). The demand by

consumers for goods that have been produced organically continue to show double-digit growth,

therefore incentivizing US farmers across the globe to keep producing a large array of organic

goods (United States Department of Agriculture, 2019). This affects their company because part

of the mission of Couture Reinforcement Co. is to provide consumers with the most ergonomic,

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innovative, and comfortable technology in their products, which will be created with the fibers

and crops that are harvested from the farms. With US farmers’ motivations being high for

continuing organic growth, and US consumers continuing to pay the premium for products that

have been grown in a healthy and environmentally safe way, Couture Reinforcement Co. would

benefit from being able to use their R&D to ultimately utilize and create their products from

organic goods to meet the consumer’s needs.

Political Analysis

One political factor that affects Couture Reinforcement Co. is the election. With any

election comes the voting of one person to be elected into office as the President. If the president

elected is more republican with conservative views, they tend to want to repeal the upstanding

Affordable Care Acts (ACA), Obamacare, and other publically funded health plans. However, if

the candidate running is democratic and has more liberal views, their platform is usually based

upon wanting to make healthcare more accessible to everyone by making it cheaper by public

funding, and offering more coverage to low incomes families/individuals and seniors (Lambrew,

2019). Not knowing the results of the upcoming election leaves Couture Reinforcement Co. in a

gray area, as the results of the upcoming election could change the number of consumers with

access to healthcare, therefore either increasing or decreasing the target market. As of right now,

President Trump has been attempting to repeal the ACA, which would then minimize the number

of individuals that would be able to afford surgery or spend the extra capital on Couture

Reinforcement Co.’s product.

Economic Analysis

One economic factor that affects Couture Reinforcement Co. is the increase in Personal

Consumption Expenditures (PCEs) in the past year. A Personal Consumption Expenditure (PCE)

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is defined as the measure of consumer spending nationally. To put it simply, a PCE measures

how much money is spent on goods and services in the US (Amadeo, 2019). According to the

US Bureau of Economic Analysis, expenditures on healthcare increased 4.9 percent and on

housing/utilities increased by 4.6 percent respectively, and therefore were the leading

contributors to growth across the nation (2018). Seeing as healthcare is one of the top sectors for

consumer spending, it positions Couture Reinforcement Co. more strategically in the market.

Typically, with inflation occurring over time and society finding themselves more susceptible to

steeper price points, they will spend more but somehow buy less. However, since consumers can

be seen spending more of their income on healthcare-related items over the years (4.9% increase

in the past year), it can be inferred that another product related to the healthcare sector is a

product which a consumer may not have to consider as much when purchasing, as it is seen more

as a necessity rather than a desire.

Another economic factor that affects Couture Reinforcement Co. is the inflation rate.

Inflation refers to the general increase in prices of goods and services, and fall in the purchasing

value of money (Crest Capital, 2019). Currently, according to the US Inflation Calculator, the

US inflation annual rate is l.7, which is lower than it was at 1.9 for the year-end of 2018 (2019).

That means that the prices of goods and services has started to fall again, giving consumers more

purchasing power. Since consumers have spent less on a few items, they will have more money

to spend on other items. The decrease in inflation is a benefit for Couture Reinforcement Co.

because consumers will not be as frugal with their money, because the price of goods that they

were before paying a certain amount for has suddenly decreased.

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 Market Analysis

In order for Couture Reinforcement Co. to operate successfully, it is crucial that the

location that it will operate within can support the business. Couture Reinforcement Co. is going

to be located in Boston, MA, specifically Suffolk County, as it is a post-surgical garment line

and Boston is home to Boston Children’s Hospital, Brigham and Women’s, Boston Medical

Center, as well as the Mass General hospitals. Within Suffolk County, Boston is the most

prominent city that I will want to market to, however the county also covers cities such as

Revere, Brighton, Winthrop, and Chelsea. In Suffolk County, MA there is a population of

804,448 (Easi, 2019) of which 388, 524 are males and 415, 924 are females (Easi, 2019). Boston

will be the best location for Couture Reinforcement Co. to operate, as city dwellers rely mostly

on walking or taking the MBTA as their primary form of transportation, and want to look

fashionable while being comfortable.

Innovators are individuals who not only like new products, but seek out new products,

brands, and the most advanced technology. Within Suffolk County, the total number of

innovators is 12.5% of the population—which calculates to 100, 556 innovators in the county.

This will increase the market potential for the area, as we will be introducing innovative and

ergonomic ways to heal in style.

The first segment that Couture Reinforcement Co. will market to is those aged 25- 34

with an income of $100, 000- 124, 999. Of the 68, 472 households within Suffolk County that

host 25-34 year olds, only 4, 261 households actually fall between the income bracket of $100,

000 – 124, 999 annually (Pop-Facts, 2019). This is one of the best segments for Couture

Reinforcement Co. to market to, as they have plenty of disposable income (Pop-Facts, 2019) and

according to Claritas Source, they are typically younger couples who care about how they are

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perceived by others (2019). Since they are in a stage where they are trying to plant their roots

and establish a reputation in the work world for themselves, they are not as concerned with

having children until slightly later on when they feel more stable with their work-life balance,

and will typically only have 1-2 children (Pop-Facts, 2019). Success is a top priority for this age

bracket, and they would not want anything to stand in the way of looking professional and

getting their work done—which is where Couture Reinforcement Co. would fit in.

The next segment Couture Reinforcement Co. will market to is those aged 35-44 with an

income of $100, 000 - $124, 999. According to Claritas Source, of the 58, 929 households within

Suffolk County that fall between the 35-44-year-old age range, only 3, 592 households actually

meet the income requirements for $100, 000 – 124, 999 (Pop-Facts, 2019). Although there are

less households to market to, many of these households are well-established and are much less

concerned with spending than the lower income brackets. They are known to have a family mix

at this age and income level (Claritas 360, 2019) and therefore still run the risk of activity later

leading to the need for surgery and post-surgical apparel afterwards. Furthermore, the more

children that there are growing up with an income that allows them to play sports or be involved

in more activities, the more likely that there is going to be some sort of chance of injury which

would later require surgery. According to the US National Library of Medicine & National

Institutes of Health, the US Department of Health and Human Services notes that there is a very

strong relationship between family income and the physical activity of the children, as many low

income families to not have access to funds to play or are not in safe areas to be playing on the

street (2019). If individuals are not engaging in activity, the chance of them receiving an injury is

much lower. Also, with the specific (slightly-older) age bracket, the children are likely going to

be more conscious about how they look and can function while healing. In Maslow’s Hierarchy

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of Needs, two of the pillars of the pyramid before “self-actualization” are love and belonging and

self-esteem. As many individuals are not truly “self-actualized” until their middle ages, it can be

confirmed that in their teen years, they are striving to fit in with the crowd and are more

conscious about their appearance than they would be with more time. (McIntyre, 2007). On the

offhand, this particular consumer strives to provide for their family, so if they were ever to need

a surgery themselves, they would want to be able to feel and look ready to work afterwards.

The third segment that will be focused on is the group of individuals from ages 35-44

with an income bracket from $75, 000- 99, 999. According to Claritas Source, of the 58, 929

households that fall between this age range living in Suffolk County, MA, only 6,765 households

earn between $75, 000- 99, 999 (Pop-Facts, 2019). Marketing Couture Reinforcement Co.’s

products to this segment is important because of the disposable income level, as well as the fact

that the majority of the households within this bracket have a family mix (Easi, 2019). In

comparison to the other segments, there is much more opportunity for the company to succeed

here due to the number of households that are within this bracket, with 6, 765 households rather

than 4, 261 or 3, 592 households (Pop-Facts, 2019). Although the income level starts to drop, the

market potential nearly doubles comparatively to the first segment.

The fourth segment that Couture Reinforcement Co. will cater to is individuals within the

45-54 age range with an income of $75, 000- 99, 999. Of the 45, 415 households that exist within

Suffolk County, only 5, 391 households exist within this particular income bracket (Pop-Facts,

2019). Couture Reinforcement Co. will market to this particular age range (though slightly older)

because according to Claritas Source, they typically have a very established family with older,

more grown children (2019). From viewing the statistics on Easi Reports, it can be inferred the

children are now starting to work on their own, as only 12,803 of 757,208 individuals 16+ are

22
not in the labor force (2019)—that being said, it shows that these teens are going to want to

begin to make a name for themselves. Having a surgery that complicates getting dressed,

working, and feeling confident will all be factors in the decision to purchase from Couture

Reinforcement Co. Additionally, as the married or unmarried individuals start to age it becomes

more common that they may need surgery for age-related purposes or diseases such as sensatory

changes, muscle strength and fat changes, immunosenescence, and urologic changes (Jaul &

Barron, 2017) and with the income that these individuals have and the desire to look and feel

younger while on the town, they make for a perfect consumer.

The last segment that will be focused on is individuals aging from 25-34 with an income

between $75, 000-99, 999. According to Claritas 360, within Suffolk County, there are 68, 472

total individuals aged 25-34, of which only 8, 651 households fall between the $75, 000- 99, 999

income bracket (Pop-Facts, 2019). Couture Reinforcement Co. will focus on this segment, as

they have an income to support themselves—however the company will not put as much stake

into this segment as the others. These households typically are either young unmarried or

married couples, or couples with 1-2 children (Easi, 2019). While these couples are typically

trying to begin to plan for their children to grow up, they tend to not spend as much as those with

higher incomes, as many times their parenthood has nearly just begun or they are saving to

continue to grow their family—making them likely to be interested in the products, but slightly

less likely to purchase than those with higher incomes.

In terms of other demographics, Couture Reinforcement Co. caters primarily to its

Caucasian consumers, as they are the most prominent in the county, with 429, 609 of the

individuals in Suffolk County, MA being white alone. However, Couture Reinforcement Co. also

caters to black and Asian groups, with 179, 528 individuals being black alone and 72, 697

23
individuals being of Asian descent (Easi, 2019). According to Easi Reports, the target consumer

has one of three main occupations in Suffolk County, MA—professional related occupation

(114, 622 individuals), service related occupation (95, 996 individuals) or a sales & office related

occupation (90, 415 individuals) (2019). Additionally, the education level that Couture

Reinforcement Co. recognizes in its clientele is primarily a Bachelor’s degree, with 121, 925

individuals attaining such a degree. The next two education levels the company caters to are

Master’s degrees and Professional degrees, with 62, 465 having completed a Master’s and 21,

263 having completed a Professional degree (Easi, 2019).

As for the frequency of purchase, Couture Reinforcement Co.’s product is a bit more

difficult to determine than the average product, as it is only considered when undergoing a

surgery or when a patient is sustaining a medical condition. That being said, Mass General

Hospital sees 80, 000 patients per year for surgery in their orthopedics branch alone (Mass

General Hospital, 2019), in addition to the other patients that are seen at BCH, BMC, and

Brigham and Women’s. Additionally, according to the Bureau of Labor Statistics, per year,

individuals in the 25-34-year age range spend around $1,832 on apparel per year, whereas the

35-44- year-old age range spends around $1,960. Lastly, the age range of individuals from 45-54

spent $1,826 annually on apparel (2019). Pairing that with the statistics from Data USA for

Suffolk County, MA, the total per capita spent on personal healthcare is $10, 559 (Healthcare

Spending, 2019). Individuals are purchasing surgical apparel as frequently as it is needed, but

individuals within the 35-44-year-old age bracket do purchase apparel more—making them an

inferred more frequent purchaser.

In terms of psychographics, Couture Reinforcement Co. targets a consumer which has a

respect for urban fashion with an ergonomic nature, but also needs medical support. Some of the

24
companies that Couture Reinforcement Co. will be competing with are ACE Bandage, Mueller,

and Corflex. While ACE Bandage and Mueller are both sold online via Amazon and sold in

stores such as Walmart, Walgreens, and Target, Corflex is distributed via Cardinal Health,

Medline, McKesson, SPS, Owens & Minor, and Claflin Medical Equipment (Corflex, 2019).

Corflex products are typically then sold to physical and occupational therapists to distribute,

which means that they would be direct competition for Couture Reinforcement Co. While these

products are not modified for specific surgeries or made to be stylish as a garment would be (or

wear like a garment), they provide a cheaper option and therefore have found a way to secure

most of the market. Couture Reinforcement Co. will have to try to market to the more upstanding

and upscale members of Suffolk County, MA if they want to find any success.

In terms of what the life of Couture Reinforcement Co.’s consumer looks like, they can

be defined as both 04- Young Digeratis, or 21- The Cosmopolitans. The Young Digerati’s

segment of VALS is defined as an upscale, trendy and technologically savvy group. They live in

urban communities full of condos and trendy homes. They are typically eco-friendly, and find

pleasure in dining at upscale establishments (04 The Young Digerati, 2019). The interest in eco-

friendly apparel is especially helpful in marketing to this consumer, as Couture Reinforcement

Co. is very environmentally friendly in their textile usage. They are quite wealthy, with the

median household income being $113, 995, and they typically hold management/professional

occupations. Their highest level of education is graduate plus, and they mostly have kids (04-

The Young Digerati, 2019). The age range of Young Digeratis is between 35 and 54, which is

exactly the age/income level that the company seeks to cater to. All of the characteristics of these

Young Digeratis embody a classy, sophisticated lifestyle group, which enjoys being out on the

25
town and fashionable—which is exactly what Couture Reinforcement Co. wants to provide post-

surgically.

On the other hand, The Cosmopolitans consist of highly educated, upscale couples that

are known for going to sporting events, and enjoy leisure-intensive lifestyles (21- The

Cosmopolitans, 2019). The average income of The Cosmopolitans is around $80, 518 and they

typically have a younger family mix (21- The Cosmopolitans, 2019). The age range of The

Cosmopolitans is 25-44, which is again an age range that Couture Reinforcement Co. feels is

most relatable to their product. Similar to the Young Digerati, the occupations that The

Cosmopolitans hold are management/professional jobs, and they typically have a graduate plus

degree (21- The Cosmopolitans, 2019). Some random common interests between the groups is

that both own Audis and enjoy coffee shops, are active (either enjoy attending college sports or

play leisure sports) and shop at relatively upscale stores such as Brooks Brothers or Sak’s Fifth

Ave—which makes both of these lifestyle segments marketable for Couture Reinforcement Co.

(21 The Cosmopolitan & 04 The Young Digerati, 2019).

Couture Reinforcement Co. will use a multi-segment focus within the target market in

Suffolk County, MA. Within all of the segments, the commonalities are that the consumer is

inherently more wealthy than the majority, with income levels starting at $75, 000 and capping at

$124, 999. The age range will fall from age 24-54, and the “young family” or family mix is the

most common family form. Marketing Couture Reinforcement Co.’s product line to these

consumers makes the most sense because as a young person, appearance is especially important

in the professional world. After surgery, it is crucial that the consumer feels like their same,

confident self while healing so they can continue with their work life to pursue success. The

older that the age bracket goes, the more prominent the family component is. When these

26
consumers have teenage children, it is especially important that their kids feel comfortable in

their own shoes while in school, starting a job, etc. After a surgery, it can be incredibly pressing

to feel as though day-to-day activity can be continued—which is why the high-income bracket

will allow many of these families to give their children the boost they need to continue healthy

healing in style.

The two segments that Couture Reinforcement Co. will focus on within the target market

are those aged 25- 34 with an income of $100, 000- 124, 999, and those aged 35-44 with an

income of $100, 000- $124, 499. These two segments not only have the most disposable income,

but appear within Suffolk County in the VALS to be the primary consumer of Couture

Reinforcement Co. They care about how they are perceived by others, are driven by social life

and having a happy, healthy functioning family, and are frequent shoppers of fairly expensive

brands such as Brooks Brothers and Sak’s Fifth Ave to begin with (21 The Cosmopolitan & 04

The Young Digerati, 2019). They want to be trendy and fashionable (hence why they are known

to drive Audis) and would seemingly not think twice about getting a haute post-surgical garment

created for them—as it seems they would thrive with one. The market potential between these

two groups would be 8,213 households that Couture Reinforcement Co. could market to after

their operations (Pop-Facts, 2019).

27
 Product

28
 Couture Reinforcement Co. produces an unsought product, as consumers are not actively

searching for the product until they find that they need it. Since Couture Reinforcement Co.

manufactures and designs garments for customers that all have reinforcements and support

within them for post-surgical operations, consumers will not typically be scouting out the

product unless they have to undergo some sort of surgery. Additionally, as the product is

entering a fairly niche market, it is not often sought out as a specialty product would be.

Furthermore, in a scenario similar to purchasing burial plots, individuals do not usually foresee

the need for the product until they find themselves incapacitated after an injury or surgery.

Couture Reinforcement Co.’s product mix consists of haute designed women’s post-

surgical apparel, including tanks, short sleeve shirts, jackets, sweaters, pants, skirts, shorts, and

dresses that all have surgical braces or support within them. Additionally, the product mix

consists of footwear such as trendy boots and booties, tennis sneakers, and flats that are equipped

with brace technology. As for the product lines, Couture Reinforcement Co. offers tops, bottoms,

dresses, footwear, and design services. For the specific product items under the product line

“tops,” Couture Reinforcement Co. sells tanks, short sleeve shirts, jackets, and sweaters. Under

“bottoms,” pants, skirts, skorts, and shorts can be found. For dresses, the company will only offer

long dresses, sundresses or short dresses, and rompers. As for footwear, there will be flats, tennis

sneakers, booties, and thigh-high boots that can be marketed to Couture Reinforcement Co.’s

consumers. Lastly, Couture Reinforcement Co. offers a personalized design service, where they

customize the product to the specific needs of the customer after their operation in order to create

their perfect product. Attached to the end of the Product/Service Analysis is Table 1, displaying

the product lines and items.

29
 For the breadth and depth of Couture Reinforcement Co.’s product mix, it has a wide

width and a fairly deep depth. Since Couture Reinforcement Co. offers five product lines, they

have a wide width, as the products that they sell vary to different groups of the target consumer.

In terms of the depth, while the company only sells a very shallow depth, with personalized

design being the only service, they offer a very deep depth of products in some product lines

such as tops, bottoms, and footwear.

Couture Reinforcement Co.’s position on the wheel of retailing is high-end. Couture

Reinforcement Co. would fall on the wheel someplace similar to where Celeste Malvar-Stewart’s

brand is. Although not immensely popular, Malvar-Stewart as a brand is extremely sustainable

and luxurious, and consists of custom designed pieces using wool as its main resource and

channel for inspiration. Similar to Malvar-Stewart, Couture Reinforcement Co. ‘s products will

be sought out to be produced, and will rely heavily on what exactly the consumer wants and

needs, rather than producing a product first and trying to sell it to the public. The products that

are created for the consumer by Couture Reinforcement Co. are very personalized and are

tailored and executed with very specific specs and detail. The materials used are luxurious and

expensive, and the research that goes into the textiles and their draping and support system is

extremely abundant. The quality of the product is second-to-none, and will be worthy of being

on the high-end side of the retail wheel.

Additionally, Couture Reinforcement Co. is positioned as a high-end retailer because of

the fact that they need to have impeccable customer service in order for their business to be

successful. Since customers going to Couture Reinforcement Co. are paying not only for the

highest-quality materials but a personalized design experience, it is absolutely crucial that the

customer service level maintained is above and beyond. Couture Reinforcement Co. will allow

30
their consumers to watch over the design process, choose specific color palettes and patterns that

they would like, and will be more than willing to commit numerous hours to each client, as their

admiration of the final product is of the utmost importance. Since the consumers are paying a

fairly expensive price for each item, it also is expected that excellent customer service be even

more prominent within the workplace.

The last reason that Couture Reinforcement Co. is positioned as a high-end company is

because the environment in which they offer the consumer is extremely luxurious. Rather than a

warehouse style store with poor lighting and a lack of environment, Couture Reinforcement Co.

offers a very expensive and comfortable ambiance. Since the patients are typically leaving a

hospital, it is important that Couture Reinforcement Co. offers a very contrasting experience to

the bright white lights and enclosed area, with heavy low lighting and glass chandeliers, carpet,

warm-colored walls, furniture, and a very spacious feel. The design room located at the back of

the shop that hosts the sewing machines and designers creating the garments will be a twist on

NYC haute couture mixed with a homey, Florentine design shop—so that the customer feels as

though their product is going to be crafted artisinally, yet beautifully and chic. With all of these

traits combined together, Couture Reinforcement Co. will offer a very high-end experience to

their consumers.

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Table 1- Product Lines and Mix

Tops Bottoms Dresses Footwear Services

Tank tops Pants Short dress Flats Personalized
(sundress) design
Short Sleeves Shorts Long dress Tennis sneakers

Jackets Skirts Romper Booties

Sweaters Skorts Thigh-high
boots

Table 2- Breadth and Depth Chart

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 Pricing Strategy

In order for Couture Reinforcement Co. to sell their products, they must use the best

pricing objective for their business. Since Couture Reinforcement Co. offers an exclusive and

high-end product that requires personalization and fittings, sales-based pricing would be an

unattractive option for the company seeing as they are not trying to sell extremely large volumes

of products, but rather less volume of these products with higher prices. Status-quo pricing

would not be a smart pricing objective for Couture Reinforcement Co. either, as they truly do not

have any direct competition in post-surgical, fashion-forward apparel, and therefore are not as

concerned when trying to gain market share. Status quo pricing would extremely underprice the

product and service as most of the competition is a basic bandage (such as ACE bandage or

Corflex) and would leave Couture Reinforcement Co. with a reputation of being “too cheap” or

even tacky. With all of that being said, the pricing objective that is going to be utilized is the

profit-based objective. This pricing objective allows Couture Reinforcement Co. to calculate the

cost of goods sold and their operating costs, and then encourages them to mark up the price of

their product to gain the most profit after covering those costs. This method typically evaluates

their consumers and finds the top dollar that they are willing to pay, and will mark their

product’s price right at that point. With this pricing, there is a high opportunity for return on

investment (ROI) and allows Couture Reinforcement Co. to recover their cash spending.

Since Couture Reinforcement Co. is using the profit-based pricing strategy, they are

aiming to make a 15% profit by the end of Year 1. This means that the company will reach the

breakeven point, and then earn 15% more than they’re spending in the first year of operation.

Although this number could be seen as quite a high percentage to hit in the first year of opening

operations, the target market area in Suffolk County, MA is very health-oriented and hosts some

33
of the world’s greatest hospitals, so there are plenty of reasons for individuals to seek out the

products of Couture Reinforcement Co. They are entering a niche market and will be fulfilling

the needs of those who are both concerned with their appearance and their clothing’s

functionality in terms of healing, so the likeliness that there will be success is extremely great—

therefore making a 15% profit in the first year attainable.

In order for Couture Reinforcement Co. to begin to make profit, it is first crucial that they

hit the breakeven point. The breakeven point refers to the number of units that the company

would have to sell at a specific price in order to break even. This number of units can be

calculated by dividing the fixed costs of production by the price per unit minus the variable costs

required to produce the product. Essentially, if Couture Reinforcement Co. were to sell their

product at a higher price, they would need to sell more units at a higher profit margin to

compensate for the higher costs of production.

Since Couture Reinforcement Co. is considered a high-end, luxury post-surgical apparel

company, their price floors are still going to be marked up fairly high still, so that the product is

not perceived as low quality. The price floor that Couture Reinforcement Co. will be following is

cost plus 200%. The target consumer for Couture Reinforcement Co. is one which has more

money to spend and is not as fragile when indulging on trendy items, so the floor is going to be

fairly high comparatively to competition.

As for the type and elasticity of demand, Couture Reinforcement Co. has an inelastic

demand. The Company is going to be known for their quality and product, and will have a

reputation unlike other companies such as ACE bandage or Corflex that are interchangeable.

Couture Reinforcement Co. targets a consumer with a higher budget, so price is not a deciding

34
factor in purchasing. There is a strong brand loyalty as there will be high brand equity, and

therefore the quantity demanded will not be determined by the change in price.

In terms of price ceilings, Couture Reinforcement Co. is going to have a fairly high price

ceiling. The price ceiling is going to be 600% of the cost. Since Couture Reinforcement Co. is

known to create more of a luxury product, it isn’t as crucial that their price ceiling is a lower

percent of the cost—since Couture Reinforcement Co. products exist in an environment that

require personalization and fittings, as well as substantial knowledge of conditions and healing

requirements.

As for price competitors, Couture Reinforcement Co.’s main competitor in the industry is

Corflex. Corflex is not a publicly traded company as ACE bandage is, but rather is a small

company that primarily distributes their products through physical therapists and hospitals.

Corflex is also sold in numerous locations online, making them accessible to consumers across

the globe. They hold price leadership in the medical bracing market, with prices from $20 to

nearly $200. They are extremely well-known and popular in the medical industry, and follow

status-quo pricing, as the other medical bracing brands such as BraceAbility and ACE bandages

are in the very same price range. Since Couture Reinforcement Co. is marketing their product as

a luxury one and the consumer experience is interactive, it will give them an edge over the

competition who offers a lower price with little to no experience.

35
 Distribution Strategy

In order to ensure that Couture Reinforcement Co. has the best chances of success, it is

crucial that they are located where they will get the most business. Since the company is located

in Suffolk County, MA for the mere reason that it will be in close proximity to many of the

hospitals downtown, it is very important that they remain near to their clients. With a population

of 804,448 individuals in Suffolk County, MA (Easi, 2019)— Couture Reinforcement Co. will

have the most people to market to if they remain in the city of Boston on a street close to one of

the major hospitals.

Although the city of Boston can be expensive to set up shop in and there is little to no

possibility of expansion, they will get the most business. Couture Reinforcement Co. is not a

company which relies on foot traffic passing their shop, since they are not a product marketed to

the mass market, but rather the company relies on the distance from the hospitals to pull them

clients. Since Couture Reinforcement Co. caters to consumers pre and post-surgery, they will

likely not be able to travel distances far and long to be able to get more medical apparel once

their operation is complete. Instead, having the location of the shop very close to the hospital

would make it accessible for family members while the client is in the hospital, as well as the

client post-surgery. Parking will not be a major issue, as many of the customers will be coming

from the hospital, and therefore will have their car still parked in the hospital parking.

As for what the physical store looks like, it is not going to be extremely large—as

Couture Reinforcement Co. caters to a more specific, upscale clientele and has components of

haute design to it. The outside of the store will likely be some form of brick or glass formation,

since that is what is most popular within Boston. Upon walking in, the client will be greeted with

lowlighting provided by chandeliers, and light beige walls. The floor will hold a plush grayish-

36
brownish fur rug, as Couture Reinforcement Co. wouldn’t want to risk their clients having any

sort of fall on cement floors. The front of the room will be kept at a warm temperature, with little

natural lighting. There will be industrial pipe rack on one side of the shop, and boot racks on the

other side of the shop—holding examples of their work on both sides of the shop. In the middle

of Couture Reinforcement Co.’s store will be a very large, circular cushion for the customers to

sit on. The shop will have a cash wrap in the middle of the store off to one side, that way it is not

near the door but is still a shorter walk for its clientele than the back of the store. There will be

strip mirrors hanging on the walls, backlit, and angled slightly so that the consumer is made to

look slightly taller and slimmer. The reason that Couture Reinforcement Co. sets up its shop this

way with the color scheme is to contrast the feeling of white, bright hospital rooms and provide a

more homey, elegant experience. Since Couture Reinforcement Co. is trying to sell a more

upscale experience, it is important that this feeling is portrayed in the shop.

In the back of the shop, visible to the customers, will be the workspace. This is where

some of Couture Reinforcement Co.’s best designers will be doing fittings to mannequins and

other clients in shop, and will be sewing the garments together. To see how Couture

Reinforcement Co. produces its products by hand and in an environment where their work is

valued, as well as the meticulous care put into each piece, will be part of the marketing strategy.

The floor on this side of the shop will be textured cement, and will have 3 cutting tables and

sewing machines set up in a row. Couture Reinforcement Co.’s back-of-house will more

resemble a (more relaxed) scene from Project Runway, while its front-of-house will provide the

customers with a relaxed, comfortable, and elegant ambiance.

37
 Promotional Planning

In order for Couture Reinforcement Co. to successfully promote their business, it is

crucial that they analyze the different objectives that they want to hit during their campaigns.

First off, Couture Reinforcement Co. wants to promote brand awareness, since they are just

entering the market and are quite a niche market. By investing in a promotional plan that

encourages brand awareness, they will become recognizable and memorable, and therefore will

be at the forefront of the consumer’s mind if they ever need a stylish and couture brace or

bandage. The other objective that Couture Reinforcement Co. would like to promote is

persuasive advertising. By promoting persuasive advertising, Couture Reinforcement Co. will be

able to show their consumers what they do that other companies do not. They will be able to

showcase their strengths and opportunities, and will essentially point the consumer to choosing

their services in a time of need.

Promoting these objectives is a huge task, and the first step in doing that is with a grand

opening. Couture Reinforcement Co. is going to host their grand opening in May 2020 in their

Boston, MA location. The grand opening will consist of numerous activities which include hobo-

styled bag giveaways that will be created on spot out of the textiles available (so that customers

can test the quality of the fabrics), discount cards for $50 off the first garment construction, wine

and spritzers with a small appetizer selection, and a DJ on spot. Also available will be 1:1

“creating” meetings, so that the consumers can learn about the different steps that Couture

Reinforcement Co. takes when making the garments, and why we differ from the competition.

Meanwhile, models will be wearing some of the garments around the party to display Couture

Reinforcement Co.’s merchandise. Small pastries in boxes will be provided to each customer

38
upon their departure from the grand opening—a cupcake and cannoli will be wrapped up in a

box, with a handout of the services and estimated pricing for the more popular reinforcements.

39
Couture Reinforcement Co.

Contact: Kasey Salter

Re: Grand Opening

Date: May 11, 2020

“Come for spritzers, music, giveaways!”

Couture Reinforcement Co. is a haute-couture company based out of Boston, MA that constructs

garments equipped with braces, boots, and bandages for post-surgical healing. These garments

are made of the utmost highest quality textiles, and are expertly cut, sewn, and draped to fit the

specific healing requirements of the consumer, while still looking high-class and trendy. On-

hand at Couture Reinforcement Co. are skilled designers ready to consult to create the perfect

piece for their customer to wear and maintain confidence, even right after a surgery.

Couture Reinforcement Co.’s grand opening will take place at their new boutique shop in

downtown Boston, MA on May 11, 2020. From 6:00 pm -9:00 pm, the storefront will offer many

activities to encourage locals to stop in and learn about Couture Reinforcement Co. Wine,

spritzers, and appetizers will be passed around as a mini “aperitivo,” and there will be a live DJ

playing throughout the evening. Upon arriving, customers will learn about Couture

Reinforcement Co.’s culture and will be able to see their latest designs on live models. Discounts

will be offered, and 1:1 informational creating sessions are able to be scheduled. Hobo-styled

bags will be created on spot as test-products, so remember to stop by!

40
 In order to catch the customer’s eye, it is extremely important that Couture

Reinforcement Co. has advertisements that are appealing to view, and refined enough not to be

tacky. That being said, the ad featured is going to be a short 15-30 second video that fades into a

scene of a beautiful woman getting fitted in Couture Reinforcement Co.’s very luxurious flagship

store. The woman will be in a hospital arm brace at the time, and the designer will be focusing

her measurements on that particular area. The video will then fade out and feature the back of a

woman walking down the streets of Boston in a beautiful knee length, snakeskin patterned silk

jacket that is flowing in the soft breeze. The woman will have her arms crossed, and will then

turn around towards the camera and do a reveal, releasing her free arm out to the wind to expose

the brace within the other arm of the jacket, and to display how the dress ripples in the Boston

breeze. The ad will have the song Makeba by Jain playing in the back of the ad, and will have no

words or talking featured. However, after the image of the woman in the wind fades out there

will be a black screen with block words in white that say “Heal elegantly with Couture

Reinforcement Co.” The advertisement will not only show the consumer that the product is

couture and custom designed, but it will speak for the execution of the garment construction as

the model walks it down the streets. The music will provide a sort of sensual and confident

underlying message that insinuates that wearing Couture Reinforcement Co. will attract suitors

and make the person wearing their product more desirable.

As for the media types, Couture Reinforcement Co. is going to utilize Instagram’s

sponsored advertisements and also run their advertisement on Boston Magazine’s digital site.

The reach of Boston Magazine’s digital site is 2.1 million+ monthly page views, 943, 928 unique

monthly visitors, and 54% of the viewers are female, vs the 46% of viewers that are male

(Boston Magazine, 2019), and the estimated cost of a feature of the advertisement in the

41
magazine is estimated to cost around $14,420.00 for a full-page advertisement (Gaebler, 2019).

On Instagram, a sponsored ad maximum that can be spent per day as a beginning is $50.00, so

for the first two weeks Couture Reinforcement Co. will spend $50/day on video views and

traffic, and will then upgrade to $100/day for the next 2 months to continue to generate interest.

Two weeks prior to the grand opening, Couture Reinforcement Co. will begin to spend $300/day

on advertising until the date of the opening. Instagram allows business profiles to target their

consumer by demographics and psychographics, so that will ensure that Couture Reinforcement

Co. is attracting the correct users (Instagram, 2019). The reach is dependent upon the filters and

ad set that is generated by the audience, but Couture Reinforcement Co. will also offer discounts

for any individuals who share their posts on their stories, etc. The cost of creating the video is

$75-150/hour (Direct Images, 2019) and to create a 3-minute video will take approximately 2

hours-worth of time. That being said, $300 at max for the video creation, and then $14,420.00

for a full-paged feature in Boston Magazine, then then $50/day for 2 weeks ($700), in addition to

$100/day for 2 months ($5600-5800), then $300/day for the last 2 weeks ($4200) before the

grand opening, leaves the cost of advertising around $25, 420 between the Boston Magazine full-

page image advertisement and the Instagram video advertisement.

In total, the media calendar is going to be fairly busy and the costs prior to the opening of

Couture Reinforcement Co. is going to be fairly high. In addition to the $25,420, it will cost

another $150 per hour (per model) to hire to wear the garments at the grand opening. Also, to

hire a model to be in the promotional video. If there is one model in the advertisements and it

takes 3 hours to shoot, that will cost Couture Reinforcement Co. $450. For three more models to

walk around wearing the garments at the grand opening which lasts 3 hours, they will each cost

$450 ($1,350). Moving forward towards the designers who will all be working the grand

42
opening, they will need to be paid for their time, so $100/hour for 3 designers at 3 hours is $900.

Additionally, the cost of the giveaways is going to be $65 per 12 cupcakes from Magnolia

Bakery, and there will be around 200 cupcakes (17 dozen, so $1,105). A case of wine is around

$200 for a nice case and Couture Reinforcement Co. will have 3 cases of wine available for the

night ($600). The appetizers will be brought in from Bacco, a restaurant in the North End. The

cheese plate costs $250 and serves 30, so there will be 7 of those brought in for a total of $1,750.

Lastly, the DJ will cost $75/hour for the 3 hours, and so that will end up totaling to $225. To

print all of Couture Reinforcement Co.’s handouts, that is $.50 per color print, multiplied by 300

of those, so the total will end up being $150. The grand total in terms of cost of the grand

opening and advertising ends up coming to $31,950.

For the actual media marketing calendar, there is no true “selling cycle” for Couture

Reinforcement Co. because of the fact that they sell unsought products. Holidays will be

recognized at Couture Reinforcement Co. and customers will receive discounts in the mail. The

public relations piece for Couture Reinforcement Co. will be released on April 27, and then will

be updated and re-released on May 4, just one week prior to the grand opening. The Boston

magazine advertisement will be for the month of April, that way consumers will see the ad in

time to plan for the grand opening of the company. Instagram advertisements will start at the

$50/day rate for February 13 and will continue through the 27th, and then will be increased to

$100/day for February 27th through April 27th, and then will increased to $300/day for the last

two weeks prior to the opening. The grand opening will then be held May 11, 2020 from

6:00pm-9:00pm. All of the events on the media calendar are constructed to set goals of brand

awareness, and to persuade the buyer that spending money on quality reinforcement apparel is

their best option.

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 Growth/Contingency Plan

The growth strategy that Couture Reinforcement Co. will use is market penetration. Since

Couture Reinforcement Co. is serving a niche market, there is not a high demand for a wide

breadth and depth of product variety—so product development will not be necessary. Of the five

segments that were chosen to represent Couture Reinforcement Co., only the two segments that

were chosen are truly going to offer Couture Reinforcement Co. business. That being said,

Couture Reinforcement Co. will use its resources to better advertise their current

products/services to gain more brand awareness and recognition. By creating more of the same

product and releasing more of the product to the same market, they will become the most

prominent brand in that portion of the market, therefore expanding their market share.

If Couture Reinforcement Co. had the chance to rewrite one section of the business plan,

they would redo the target market analysis. The specific segments chosen with an income of

$75,000-99,999 had too little income to invest on such an expensive product, such as those that

Couture Reinforcement Co. creates. While at the time this market seemed to be penetrable due to

the prominence of many individuals falling into this market’s income, the disposable income

truly isn’t at the level where it needs to be to invest in a haute-couture product. Instead, Couture

Reinforcement Co. would choose a consumer with an income of $125,000+, that way they would

have more disposable income, even if the number of consumers in the area dropped. In doing so,

it can be inferred that Couture Reinforcement Co. would find themselves face-to-face with

consumers more willing to spend a pretty penny on a quality garment.

45
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