Market Analysis

Table of ContentsAbout and History.......................................... pg.1Product Development.................................... pg. 3Sales, Distribution, and Employees............... pg. 4Target Market.................................................. pg. 5Kaylee............................................................... pg. 6Melissa............................................................. pg. 7Marlene............................................................ pg. 8Competition.................................................... pg. 9SWOT Analysis.............................................. pg. 10 Trade Shows..................................................... pg. 11What’s Next?................................................... pg. 13Resources and Credit.................................. ... pg. 14

Working Class Studio is a product de-velopment venture of the Savannah Col-lege of Art and Design that promotes the work of talented SCAD students, alumni, and faculty artists. Working Class Studio marinates fine art products that serve the quirky yet sophisticated customer. The company’s unique array of merchandise is truly derived from up and coming artists and designers, the SCAD students.

Working Class Studio has existed as a product development venture of the Savannah College of Art and Design for over eight years. Launching with highly praised products such as the melamine plates and magnetic frames. Since their launch, Working Class has continued to expand their product line to include more handmade, one of a kind pieces such as The Charles Collection Clocks , Cory Vases, and Tucker Lamps. Work-ing Class features items that are limited, made by their prestigious interns, in or-der to try new and complex things.

About

History

1

Product DevelopmentWorking Class is constantly seeking to improve its suc-cessful products. The products that are currently created focus on three specific areas; SCAD branded, Working Class, and home decor.

The interns who develop these products begin with thor-ough research: addressing Working Class as a company, who its target market is, its strengths and weaknesses. The interns develop their projects in relation to these findings, drawing inspiration from resources such as fash-ion and graphic design, trade shows, and the Savannah atmosphere. The interns then present their product ideas as a team and individually, to the full time staff at Working Class Studio.

The Puffy Frames, created in the winter of 2009, consist-ed of only three colors, since its creation, it has expanded to include more child friendly and brighter colors allow-ing the product to expand into a collection that features a total of seven colors. Its success is due to its unique features as a product by being tactile and versatile.

Cory Vases, are also a very successful product. Made in house at Working Class studio. The success of this prod-uct also lies in its uniqueness, custom aspects, and oppor-tunity for customer interaction.

2

SalesWorking Class has a sales force that consists of two in house representatives. There are a total of three sales representa-tives outside of the Working Class Studio. These represen-tatives cover the Midwest, Pacific North West, and Canada. They each have a showroom that displays the Working Class Studio products alongside an array of other companies with similar merchandise. These outside sales representatives have the responsibility to sell the line products offered by Working Class, as well as gain new accounts. They are also responsible for nurturing the relationships with retailers in their regional area.

EmployeesWorking class has a total of 5 full time employees and a various amount of interns. They can vary from 4 to 20 throughout the four quarters offered at SCAD. Interns represent undergraduates, graduates, and a variety of ma-jors.

DistributionWorking Class Studio seeks to distribute merchandise in a timely manner. Their deliveries are generally made within 2-5 business days of when the order is placed. It is ultimately fulfilled within 10 days. Working Class has international inquires and customers from location such as Bermuda, Panama, Puerto Rico, Venezuela, Australia, and Canada.

3

The primary target market for Working Class Studio consists of women who are in their mid 20’s to late 40’s. These women seek fun, are quirky, and desire an aesthetically pleasing home. They are technologically savvy customers who are constantly seeking interest-ing products. Some of their favorite places to shop consist of websites such as Amazon, Target, Wanelo, and small brick and mortar boutiques.

The target market consist of “Achievers” as well as “Strivers”, according to the VALS strategic business insight. “Achievers” are motivated by the desire to succeed. They are goal-oriented in their lifestyles and have a strong commitment to their career and their family. “Achievers” are active in the consumer mar-ketplace. They favor established, prestige products and services that demonstrate success to their peers. “Strivers” are trendy and fun loving. They are moti-vated by achievement. They are active consumers who shop as a social activity and opportunity to show their purchasing. They are entertainers and very sociable.

Target Market

4

The Chic Career GirlAge: 24

Status: SingleIncome: $40,500 Annually

Location: PhiladelphiaCareer: International Commercial Photographer

Transportation: Planes, Trains, and BusesLives in: Studio Apartment

Hobbies: Photography, Lounging, and Canoeing Favorite things: Her wiener dog Fiasco, Vintage Barbie dolls, and

Card gamesFavorite blog: The Cut

Favorite thing to do on a Sunday: Host Brunches Favorite clothing brands: Tommy Hilfiger, H&M, and Jason Wu

Style: Free and Trendy

No one can make you feel inferior without your consent. Eleanor Roosevelt

Kaylee aka Cookie

5

The Multiple Hat MotherAge: 37

Status: Married with two childrenIncome: $90,000 Combined

Location: East BostonCareer: Accountant at Nstar Co.

Lives in: 4 bedroom, 3 bathroom country style homeHobbies: PTA, Marathons, and Reading

Favorite things: Her Children, Caramel Apples, and Foreign FilmsFavorite blog: Good.is

Favorite thing to do on a Wednesday: Kids eat free at IhopFavorite brands: Ann Taylor Loft, Donna Karen, and New York &

Co. Style: Classic and Professional

When you are a mother you are never really alone in your thoughts. A mother always has to think twice, one for herself and one for her child. Sophia Loren

6

Melissa aka Missy

The Great Gift GiverAge: 67

Status: Has a “friend”, two children, six grand-children and eight great-grandchildren

Income: $60,000 Annually Location: Sante Fe, NM

Career: Retired RN; Owner of “Crates” furniture consignment shop

Lives in: Ranch style, 2 bedroom 1 and 1/2 bathroomHobbies: Baking, Gardening, and Singing jazzFavorite blog: The Washington Post, in print

Favorite thing to do on a Saturday: Watch the great-grandchildrenFavorite brands: Liz Claiborne, JCPenny, and Nine West

Style: Contemporary and quirky

What could be more beautiful than a dear old lady growing wise with age? Every age can be enchant-ing, provided you live within in it. Bridget Bardot

7

Marlene aka Lenni

CompetitionWorking Class has several competitors in the home de-cor and gift market. These competitors carry similar mer-chandise to that of the Working Class Studio aesthetic.

Mio Culture: Founded in 2001, Mio Culture focuses on changing the consumers purchasing decisions by creating affordable yet sustain-able products. • Price range: $15 - $250• Product selection: Narrow and Deep

West Elm: Collaborates with other designers to create modern products using natural materials and affordable design. • Price range: $4 - $500• Product range: Broad and Shallow

French Bull: Entered into the market with its melamine kitchen products. Soon after, it became a lifestyle brand that focuses on a broader selection of home decor and accessories items. This company sells it items wholesale and retail.• Price range: $8 - $250• Product selection: Narrow and Deep

Jonathan Adler: Focuses on style, craft , and joy in his upscale products for the home. The lifestyle brand has a range of products, from apparel and accessories to bedding and lighting. The designer also offers the option for his customers to customize their products.• Price range: $20 - $800• Product selection: Broad and Shallow

Others to Consider The following are other company’s that sell their own private label home decor and accessories that are competition to Working Class Studio: • Ikea • Target• Uncommon goods • Chiasso

8

SWOT AnalysisThis SWOT analysis explores the strengths, weak-ness, opportunities, and threats for Working Class Studio.

Working Class Studio can use this SWOT analysis to guide future projects and products.

Strengths• Unique products• Products created by SCAD

students, faculty, and staff• Moderately priced• Collaboration

Weakness• Outdated prints• Trade show; exposure• Marketing on social networks• Outdated color palette

Threats• Competition• Economy• Overstock of old product(s)• Customer

Opportunities• Social networking marketing• Furniture• Attend international trade

shows• Lifestyle product offering

9

Trade Shows Working Class Studio currently participates in several trades shows to promote its products to potential retailers and consumers. Working Class also has out-sourced sales representatives attend other trade shows and host showrooms to promote the merchandise.

• Seattle Market Week : Pacific Market Center/ Scarlet • Chicago Market: Living and Giving• CGTA * Toronto Gift Show• New York International Gift Fair

To reach the ever increasing global market, Working Class should consider increasing their products and brand to other trade shows. The trade shows to consider are national as well as international. Reaching out to a global audience allows Working Class Studio to gain an international presence, allowing for exposure to new trends, influences from foreign countries, manufactur-ing and sourcing opportunities, and gaining new clients.

10

Chicago International home + house-wares show:Working Class Studio already ventures to the “windy city” to show at the Chicago Market: Living and Giving trade show. However, there is an opportunity to return to the Chi-cago area for the international home and housewares show because of it’s array of buyers and competing vendors. This allows for excel-lent exposure to indoor and outdoor trends for the home.• March 2-5 , Chicago, IL• Over 2,000 exhibitors from over 35 countries• 15,000 U.S. buyers• 6,000 international buyers representing; 100 different coun-

tries• http://www.housewares.org/

United Kingdom Autumn Fair: The United Kingdom boast the title of having the seventh largest economy, and a world re-nowned international trade fair that leads up to the Christmas season. • September 2-5, NEC Birmingham, England• 32,000 buyers from 78 different countries; 82% of buyers have

direct purchasing power.• Attended by everyone from the major multiples and department

stores to the important independents. • http://www.autumnfair.com/

High Point Market: For over 100 years, this historical loca-tion has established itself as the world’s home for home furnishings. High Point continues to be the best location for trends and innovation. It is consistently featured on trend publications such as WGSN and Stylesight.• October 13-18, High Point, NC• Over 75,000 attendees in a 10 million square feet of exhibition

space• More than 2,000 exhibitors with 100+ countries represented• http://www.highpointmarket.org/

Pulse: The United Kingdom’s only summer trade event. Offers unique buying time for the home and gift market. • June 10-12, London, England• 480 exhibitors in contemporary and innovative gift,

home, and lifestyle brands• 7,000 buyers from independent, e-tailers, and depart-

ment stores• Marketing assistance through their exhibition direc-

tory online and in print• http://www.pulse-london.com/

11

What’s Next? Working Class has created a wide product assortment for their target audience, but there is always room for more. Working Class can develop a stronger product assortment to become more of a lifestyle brand. This includes creating more items that focus on different the aspects of its target markets life-style. Working Class should look towards other home decor pieces, updated prints and fabrics, and furniture.

Based on trend research and market analysis, there are several key products and ideas that were trending at shows such as the Milan furniture fair and High Point Market.

• Rugs• Kitchen accessories • Bathroom decor• Dorm• Children’s bedrooms• Customizing• Interactive• Digital • Sustainable• Wedding• Wall Art• Decals• Office supplies

12

Resources and CreditsHouse Beautiful.comMartha Stewart LivingFrench PaperWorld interior Design NetworkMegan Ave ’ Lallemant, Working Class Studio Real Simple MagazineStyle at HomeFibre to Fashion Mio Culture.comWest ElmFrench BullJonathan AdlerIkeaTarget.comUncommon GoodsChiassoCNBCMashable.comStrategic Business InsightsPew Internet

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Taylor Justin Spring 2012