BUSINESS PLAN “Fratelli Rossetti Handbags” viale Stelvio n°173 – 21052 Busto A. (VA) Index 1. Historical analysis of the territory and of the sector ? 2. Current situation and future outlook ? 3. Business mission (Handbags sector) ? 4.
Business Area ? 5. Marketing strategies ? 6. Location ? 7. Technical and human resources ? 8. Juridical structure ? 9. Economic and financial goals ? Historical analysis of the territory and of the sector ? Busto Arsizio is located in an industrial and commercial area.
In the past it was known as the “Italian Manchester” because the town was full of textile industries . In the recent years Busto has lost its importance because of the shutdown of lots of businesses due to the economic crisis, related to the growth of the production in the Far East. In 1892 the first shoe factory was set up by Giuseppe Borri ? leather tradition In 1990 the owners had to close down the business because of the international competition. ? ? ? ? Current situation and future outlook ?
According to the “AIMPES REPORT” of the Leather Sector, in the last decade, the European Fashion System has been protagonist of the economic globalization process. The results are: ? the changes of the productive and commercial shapes.
? the reduction of the number of businesses and employees, also due to the decentralization of the production in the Asiatic Area. ? ? ? This particular situation caused a consistent decline in production. In the first half of 2010, the increasing international demand and consumption have had positive effects on production: a 3% growth has been registered.
The increase of export levels can be related to the strong presence of luxury articles that characterize the “made in Italy” leather goods ? Business mission (Handbags sector) ? The business mission is to satisfy our customers’ desires, by offering a high quality product made by a qualified team and with an inimitable but easily distinguishable design; The offer of our products consists of two options: ? Medium-high quality handbags will be proposed in duty free shops, so the brand can spread quickly; ? High quality handbags will be offered in our one brand shops and in every multibrand showroom.
The success of our business will depend on the ability to create a trend, to forestall the competitors and to maintain the interest of the customers who count on the quality of our handbags and of materials used in manufacturing; It’s necessary to attract more and more buyers and gain their confidence by satisfying their quality requirements and their wants; To be successful our business will invest its money constantly in the styles and technical research and this will allow us to have a fair price-quality ratio.
? ? ? ? Business Area Product description We want to design two different collections: one that meets our customers needs, with different prices, whose bags will be sold at about € 500 in shops and duty free shops. Another one of higher quality will be able to compete with some famous brands (Prada, Bottega Veneta, Chloe… ) Our brand will remind of the features of our products (quality, elegance, creativity, exclusivity and Italian design, craftmanship) It’s very important to work on the brand to emphasize the social and individual identity, to transmit emotions, impressions and meanings.
We want to create a handbag for smart, fancy, well-off women. The price is high because our bag is designed by professional people and it is realized with high quality material, the manufacturing process is long and expensive. ? ? ? ? Current market: ? Our business has several competitors such as Bottega Veneta, Chloe and Prada. ? We have chosen a market niche that is not affected by Asian competitors, as they can’t feature our skill and experience. NAME Chloe STRENGTHS WEAKNESSES ? Home made ? High prices from manufacturing 1150 € ? One brand shops in the main capital cities in the world ?
E-commerce Advertising media: internet site, fashion magazines and billboards Bottega Vicenza ? Luxury goods ? High quality hand-made ? High prices up to Veneta ? Leather products products 2000 € Belonging to (shoes, small leather ? Subtle glamour: noGucci group goods, leather logo luggage, gifts items) ? Distribution on a world ? Expensive jewellery wide scale ? Glasses ? One brand shop ? Home scents and ? Unique technique: furnishing items “interlaced” Advertising media: internet site, fashion magazines, collaborates with several famous artists.
Prada Milan ? Luxury products ? Stores and outlets in ? Does not always ? Bags strategic points in the use very fine ? Glasses most important cities in materials ? Perfumes the world ? A lot of fakes ? Clothing ? On time deliveries everyone can ? Continuous research have and innovations ? Not always handy ? Eccentric and aggressive BASE Paris PRODUCTS ? Leather shoes ? Leather bags ? Clothing ? Perfumes Advantages for customers ? Handmade personalized products; Recognizable, original and innovative brand; ? ?
Very good quality/price ratio; Distribution all over Italy (main cities and towns), in the European capital cities and in main cities outside Europe.
? Customers and users ? ? ? ? ? ? Women between 35 and 55+; Upper middle class people; Active people who follow fashion, but are not fashion victims; Smart people who take care of their image and have their own style; Mature, self-confident and independent women; They love travelling and doing it comfortably, usually by plane, so it is important to advertise the products in airports, too.
These women stay in luxury hotels and go to expensive restaurants; Big cities are the most common place for this target to buy clothes and accessories, so the presence of our one brand shops, high fashion stores (Harrods, Rinascente) guarantees the customers easy access to our products. ? Markets to take into account: ? National; International. ? Market analysis : ? The researches have highlighted a potentiality on the Asian and international markets, as those countries are undergoing a quick economic development, increasing the wealth of some people who are attracted by the Made in Italy.
How the product is realized ? First several prototypes are produced; after a selection, the designs in line with the Fratelli Rossetti standards are sent to production; The products are manufactured by reliable craftsmen that work with passion, care and experience; When manufacturing is finished, the product is inspected for quality control and then it’s wrapped in the distinctive luxury packaging.
The packaging is environmentally friendly, in fact it is made of FSC, 100% recyclable. ? ? Licencing ?
After 5 years from the setting up we want to maximize the profits and minimize the costs by giving licence for the production of high quality accessories, though maintaining our standards. The offer of our products consists of two options: ? ? Production of handbags made of high quality leather and valuable accessories, sold in one brand shops and fashion stores, After 5 years from the setting up, concession of licence for the production of accessories such as belts an wallets. Marketing Strategies Price Policy Our handbags will be sold: ? at a price of about 500 €, in some duty free shops located in the biggest airports ? n our monobrand shops or in boutiques located in the biggest cities and fashion capital cities at a price of about 1000 €. Our prices guarantee: ? the quality of the product, ? a brand which is synonymous of elegance and style, which represents a lifestyle ? our customers’ feelings of self-confident women who want to stand out by means of a creative, made-in-Italy product. Promotion We will promote our product: ? On our website ? Using the media, in particular through advertisements in the most important fashion magazines and by posting billboards in some very busy venues; ?
During events such as fundraising in support of humanitarian initiatives or monuments restoration; ? In leather goods and handbags trade fairs; ? Creating an online story whose main character is the handbag.
Distribution • We will sell our products in: • Elegant monobrand shops located in selected cities all over the world; • Show rooms and boutiques in the most important cities; • Fashion stores in the biggest cities (e. g. “La Rinascente” in Milan and “Harrods” in London). • Our website will be a showcase of all our products where we will enable our customers to customize their bag with different colors and engraving.
Location ? The legal, administrative and commercial headquarters of IFS Fratelli Rossetti handbags is situated in Busto Arsizio, Viale Stelvio 173. It is located in a strategic position near: ? The motorway to Milan ? “Statale del Sempione” road that takes you to the city centre ? Train stations.
? Milano Malpensa Airport Busto Arsizio is close to different universities in Milan, Varese, Castellanza and to the Fashion and Design School “Istituto Marangoni” and this enables us to find skilled young people for our activity.
The manufacturing plant is in Parabiago because it’s an area rich in excellent leather craftsmen that may collaborate with us. The town is the base of “Associazione calzaturieri di Parabiago” which groups shoes and accessories’ producers of 38 businesses from six towns in the area of Milan. The Association promotes projects in the leather sector. ? ? ? ? Human resources • Product planning and design Qualified and motivated workers to make high-quality handbags. The manager of the department is Erica Delle Curti, who creates designs that will be made by her staff.
? • Commercial Staff for our monobrand shops trained in specific courses. Managers who have to deal with our multibrand boutiques. Manager: Sergio Lo Piccolo. ? ? ? • ? Administration and finance The Administrative office is responsible for the accounting and fiscal issues The Financial office optimizes the financial resources by negotiating with Banks and other agencies. Managers: Martina Gianfreda, Cristina Alba. ? ? • ? Purchase/Production/Research and development: Responsible of searching new materials, technologies and colors to make us competitive and unique.
Manager: Marsid Torba. ? Technical resources ? Our products will be made at partner factories, we will provide them with material and accessories. They have to cut, assemble and sew the leather and finish off the product. We will buy furniture for our offices and shops, computer and software for our work and equipment to manage our stock. Fixed assets will be acquired with leasing contracts in order to easily manage any issues, such as maintenance costs.
Buildings will be rented. ? Juridical structure ? The juridical structure chosen is a S. r. (Private Limited Company). ? Advantages: ? Guarantees an adequate social structure for our human resources organization; ? Ensures participation of members to the management of the property; ? Guarantees the flexibility of rules that can be personalized by partners.
Economic and financial goals • ? ? GOALS: An adequate amount of sales in order to reach 1. 870. 000 of turnover. A large market abroad expanding ourself also in China. • ? ? HOW TO REACH GOALS: Identify specific niches to beat competition Maintain the traditional “made in Italy” leather goods