Strategic Planning for Silver Square Jewellery

The assignment content is about Silver Square, a company that produces high-quality silver jewelry. The sales strategy involves targeting a wide range of galleries and using two approaches: attendance at events and contacting buyers. The company's strengths include its artistic and manufacturing skills, which are unique to it. However, there are also several risks identified, including the level of competition, changes in consumer tastes and preferences, demand for silver jewelry items, fear of online products, economic crises, and counterfeiters attempting to violate the company's identity. To manage these risks, Silver Square plans to adopt an innovative approach, stay updated with consumer preferences, offer high-level transparency and flexibility, keep experts who can evaluate industry trends, and safeguard its intellectual property rights. The pricing strategy is designed to create beautiful jewelry pieces at reasonable prices, with no dominant companies in the market. The company will use both traditional marketing approaches (website, print media, broadcast media) and modern marketing strategies (online marketing, word of mouth publicity). The business will be run by a team of employees with relevant experience and skills. Finally, the assignment includes sales forecasts, break-even analysis, income statement, projected cash flow statement, and projected balance sheet.

Executive summary
Name of the business – Silver Square Ltd
Silver Square designs, manufactures and markets hand finished, stylish jewellery made from
high quality materials at a reasonable prices.
Product - silver jewellery (rings, earrings, chains and bracelets)
Target customers – Business to Customer (B2C)
The idea is to produce most innovative and unique jewellery designs which can attract the
attention of the customers.
Silver Square mission: “is to improve the lives of its customers by creating durable items of
extraordinary beauty that will be cherished for generations.”
The company’s vision is to become the most loved jewelry brand in UK.

Business details
Company name:
The name of the company:” Silver Square Ltd”
Address:
Walters Art Gallery
90 North Charles
City of Hood River – 541
Telephone number:
00900125622
Legal status:
Silver Square is a new business. The company is a designer and manufacturer of silver
jewellery products. It has over 200 design models which include rings, bracelets, chains,
earrings, and brooches etc. Silver Square has its own incomparable style which can get them
remarked.
The business will:
Silver Square is a store where customers can find silver jewellery items such as rings,
earrings, chains and bracelets. It is also a custom manufacturer of the silver jewellery.
The idea is to monitor regularly the quality of products and service, prices, customer
service, product availability, quick delivery also to produce the most innovative and unique
jewellery designs which can attract the attention of the customers.
Key Personnel
Details of owner:
Name: Peter Williams
Position/main responsibilities:
The business owner, whose main role is to maintain control over whole business, besides the fact
that he is the company’s owner; Peter also is the manager, so he will be responsible for human
resources that contains recruiting, contracting, planning and keeping track of benefits such as
insurance for the employees.
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Experience and knowledge of the industry:
 Peter has taken his undergraduate degree from CIA (Cleveland Institute of Art). At CIA,
he studied graphic designing.
 He also worked at a local design firm to learn about product design throughout his
school.
 The owner has done masters in Product Designing from the Iowa State University.
 He also completed an management degree-undergraduate level, as a BA (Bachelor of
Arts)
 While working with another designer, he felt the need of having own jewellery business.
Key skills brought to the business:
 Presenting
In order to improve his presenting abilities, Peter did a course in business presentation and public
speaking. So this helped him to build up self-confidence and good knowledge to provide
presentations for potential investors, customers or staff with some of the key skills necessary to
get the message briefly and effectively.
 Leadership
When you are an employer, leadership will be a key skill, so Peter is able to motivate and
stimulate the employee in order to get the best from them. The success of the company will
depend on the morale and productivity of the workforce, so it is his job to ensure that they are at
their best.
 Project management
Is vital for any small business owner to have the ability to efficiently manage projects, so this
involves identifying a specific goal and managing the resources in a way that guarantees this is
achieved on a confident plan.
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Business experience and academic/professional qualifications:
 Experience of working in a local design firm
 Undergraduate degree from CIA (Cleveland Institute of Art)
 Undergraduate management degree, as a BA (Bachelor of Arts)
 Master degree in Product Designing from the Iowa State University.
Sum up your business idea
Objectives of the business:
The objectives of the first three years of operations are as follows:
 To establish a jewellery producing firm whose primary aim is to exceed the customer
expectations.
 To apply Silver Square deigns in at least 40 different galleries.
 To increase the number of designs offered by 10% per year.
Business Goals
 In the first year of business, company expects to achieve a profit of £40,000.
 In 3-5 years of time, business expects to achieve expansion.
Products and services
Product/service Features Benefits
Rings Rings are crafted from sterling
silver and two tones with stunning
gemstones.
Comfortable and highly
durable. Mix and match to
your heart's desire.
Earrings Superb range sterling silver and
gemstone earrings.
Mix and match studs, hoops
and pendants to create a look
for every occasion.
Chains Necklaces and pendants crafted
from sterling silver and two tone.
Attractive design. Mix and
match to express your style.
Bracelets Famous charm bracelets in sterling Beautiful design to celebrate
your unforgettable moments
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silver and leather. in style.
Differentiation
The product and service is different compared with the competition because:
 Silver has been selected because it is a very soft and gleaming metal.
 Products are based on creative and unusual designs.
 All jewelleries are handmade finished.
 Customers will be ensured that they are investing their money in the right product.
Hence, this will help in developing trust.
 Methods such as recommendations, reviews and message board will be used to
understand the customers.
 People will be offered with great convenience as they can get the jewellery items on
website, stores and through telephone orders.
 Business has a very highly skilled manpower that is capable of producing great silver
jewellery items; they also know how to work with customer’s ideas and their preferences.
Legal Requirements
The legal and insurance requirements that are applied within the business are:
 To get registered as a sole trader
 Information the government about the new business
 Finding about the tax obligations and registering the requirements for VAT.
 Employee Liability Insurance
 Insurance of the whole in house stock
 Trademark, independent contractor agreements, employment agreements
 Website terms and conditions and privacy policy
The legal and insurance requirements will be meet by:
 Getting a hallmark in UK’s four assay offices
 Get registered under VAT
 Opening a business bank account
 Performing registration for the website.
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Marketing
Market research
The target -Is to celebrate women and men, offering them the opportunity for personal
manifestation through the creation of high quality and fashionable jewellery at reasonable prices.
Working with customer’s ideas and their preferences, the company aim is to offer distinctive
silver jewellery items.
Trends in the chosen market are:
 The jewellery industry is quite large and diverse.
 Many sales channels are available for trading such as physical stores, online website, art
galleries, event shows
 Jewellery sector registered a growth of 2% in 2015 and reached £63.3 billion (Jewellery -
Market Statistics & Industry Facts, 2015)
 Due to improved economy, consumers are willing to spend more on middle to upper tier
jewellery than lower tier jeweller.
How you know this:
 Industry analysis – Industry analysis was performed on the basis of secondary resources
such as journals, internet, books, etc.
 Market analysis – Market analysis was performed mainly on the basis of secondary
sources such as books, articles, etc.
 Competition analysis – Competition analysis was performed through performing SWOT
analysis on the competitors of Silver Square.
Profiling customers
The customer groups you will be selling to are:
 Galleries – These type of buyers purchase jewellery in wholesale quantity and then they
resale it to the public. These are private galleries, artisan jewellery shops and some are
museum stores.
 Individuals – These are regular customers who are interested in buying silver jewellery
items for them or as gifts. They could place the order for a particular product through
website.
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 Retail stores – These people buy products in bulk and sell them by opening small or big
retail stores.
In order to attract the customers, Silver square will be using approaches like coupons,
incentives, etc. Customized option is also available for the users. They can place an order and the
jewellery can be made as per their requirements.
The customer research has shown what the customer wants are:
 Jewellery which has some unique and unusual design and manufacturing.
 Customers prefer to buy products online.
 People are interested in custom made products (UK Jewellery Market, 2015)
Profiling Customers
Competitor name Strengths Weaknesses
 Pandora  Good brand image
 Global presence
 High price
 Disconnection from
domestic market
 UK silver
jewellery
 Finest quality
products
 Strong market share
 Lack of consistency
 Inability to respond
 Belle fever  Wide range of
products
 Strong presence
 Lack of
customization
 Poor quality
 Pia  High quality
products
 Efficient workforce
 Lack of brand
image
 Poor segmentation
Sales Strategy
The sales strategy of company is targeted at getting wide range of galleries for company’s
products. It will be done on the basis of two approaches.
 First is attendance and display at various events.
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 Second method is through contacting with different types of buyers.
How you can improve on their offer and price(s):
 The artistic and manufacturing skills of Silver Square are its biggest strength which no
other competitor can offer.
 The products are based on handmade, creative and unusual designs which will highly
attract the attention of the customers.
 The competitive landscape is very fragmented as no single jewellery firm represented
more than 7% share in 2014 and this sound an opportunity for Silver Square.
 There are no dominant players in the market.
Managing market risks
Following risks have been identified:
 Level of competition
 Change in the taste and preferences
 Demand of the silvery jewellery items
 Fear of online products
 Economic crisis (recession and inflation).
 Counterfeiters attempting to violate the products and the identity of Silver Square.
How will you manage these risks so that they become less of a threat?
1. Level of competition can be managed by adopting a different and innovative approach for
the business. Further competitive pricing will decrease the competition.
2. There is a need to remain updated with consumer’s taste and preferences in the jewellery
products.
3. Fear of online business can be handled by offering high level of transparency and
suppleness in the transactions.
4. It is essential to keep experts who are efficient of evaluating what is happening in the
industry.
5. Safeguarding the intellectual property rights by all available resources, including
comprehensive domestic statement, registration and device programmes, so that
customers can stay confident that Silver Square product is authentic.
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Pricing
Particulars Amount
Expected no. of items to be sold in
year 1 1500
Average price per unit 65
Total revenue 39,301
How you can calculate your prices:
• Monthly Revenue Break-even - 3,879
• Average % variable cost – 15%
• Estimated monthly fixed cost - 3,297
How your prices compare with the competition:
Product/service Your price(s) Range of competitor
prices (per unit)
Silver Jewellery £39 £ 40
Reasons for the difference between your price(s) and your competitors’ price(s):
 The purpose is to create beautiful jewellery pieces, handmade and customize them and
keep the prices reasonable so that customers can purchase the products.
 There are no dominant companies operating in the market, so a big difference has not
been kept between the prices.
Promotion and advertising
 Traditional marketing:
- Many modern ways of marketing the products have evolved but companies these days
still relies on traditional approaches.
- Silver Square will use traditional approaches such as website, print media, broadcast
media etc., for the purpose of promotion.
- On the Silver Square website will be posting news about new products and new
supply deals. Another thing which they do is to have a deal of the month with a
voucher that customers can print out.
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- Doing this is also another way of adding valuable content to Silver Square site. With
valuable content people have reasons to visit the Silver Square site or recommend it
to their friends. A good content is frequently updating the detailed information about
the company, products and services.
- Templates will be published and distributed through different channels. Cold call
will also be made to the potential clients to promote the jewellery items.
- Art gallery is the most common option available for marketing jewellery products.
The products will go on display under these events.
 Modern marketing:
- Online marketing strategies such as search engines, pay per click advertising, link
building campaign, affiliate program etc., will be used.
- Word of mouth publicity is the last defence which is used to attract the customer.
- Silver Square will depend on word of mouth publicity for advertising and promotion.
Running the business
Staff
Role Total
costs (£)
Necessary
experience
Specialist skills and/or
qualifications
 Employee 1 5,500  1 year in
accounting
industry
 Book-keeping and
Accounting
 Employee 2 5,500  1 year in
jewellery
industry
 Economics and
Business
Administration
 Employee 3 5,500  1 year in
jewellery
industry
 Customer Service
 Employee 4 5,500  1 year in
jewellery
industry
 Technological
and IT
 Employee 5 5,500  1 year in
jewellery
industry
 Sales
Finance
General Assumptions
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Sales Forecasts
The first month will be served in increasing inventory. Second month will be spent in
setting up the distribution channels. From the third month, sales will come on the statements by
which increase in sales will be noticed dramatically.
Break Even Analysis
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Income Statement
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Projected cash flow statement
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Projected Balance Sheet
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References:
Jewellery in the US. 2015. [Online]. Available through: <
http://www.euromonitor.com/jewellery-in-the-us/report/>. [Accessed on 10th Nov.
2015].
Retail Market. 2015. [Online]. Available through: <http://edahngolan.com/Docs/Edahn_Golan-
2015_US_State_of_the_Jewelry_Market.pdf>. [Accessed on 13th Nov. 2015].
UK Jewellery Market. 2015. [Online]. Available through: <http://www.diamondshades.com/usa-
jewelry-market/>. [Accessed on 22th Nov. 2015].
Jewellery - Market Statistics & Industry Facts. 2015. [Online]. Available through:
<http://www.statista.com/stats/147013/jewelry>. [Accessed on 26th Nov. 2015].
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