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Luxe

Luxe. Design Mobile phones. Business idea. We sell high quality design mobile phones. Our target group is wealthy people in all over Europe including Russia. We sell these phones because rich people want differentiate with unique and special style.

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Luxe

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  1. Luxe Design Mobile phones

  2. Business idea • We sell high quality design mobile phones. • Our target group is wealthy people in all over Europe including Russia. • We sell these phones because rich people want differentiate with unique and special style. • They can choose different characteristics to their phones; for example color, size etc. • We produce our products in Europe and we don`t use labor force from developing country.

  3. Organization • We have main office in Finland in Helsinki and also offices in Europe. In Paris, Bryssels, Stockholm, München and in Moscow • Our factories are in Finland and in Italy • We have 2 shops. One in Paris and one in Moscow. • We have 360 workers. • We don`t have shops because the phones are made by commissioned work. And our phones costs 5000 to 20 000 euros.

  4. SWOT- analyses • Strengths: pragmatic team working on with new innovations and high-tech equipments. • Weaknesses: factories only in Finland and Italy – causes a lot of costs, because labour force and raw materials are expensive, compared factories in Asia. • Fewness of competitors – just few can provide product with same quality than we do.

  5. …SWOT- analyses • One of our opportunities is enrichment all over the world, which makes possible to escalate clientele and sales market. • Threats: possible increase of competitors, and world’s economical situation can vary.

  6. How we create value satisfaction • Benefits: private service, insurance, free opportunities to choose features to their mobile phones. • Keeping high-quality – following trends and fashion and creating luxurious models. • Creating customer loyalty: by bonus points- system customers can get possible discounts future purchases.

  7. Analysing customer market • Our product is not a first necessity. So with our mobile phones customers can satisfy higher levels, like social- and esteem needs. • Our customers are mostly young adults from bigger cities and higher group of society. They appreciate high quality tecnology and luxurious appearance.

  8. Segmentation • Three demographic segments: • Young people (age 16-25) • People in working life (25-40) • Older people (age 40-55) • Geographical segmentation: • Most of our customers are from west European countries and also from America especially United States • Russian is a new important district in our business

  9. Positioning and brands • In our brand positioning product stand in high and expensive category. • Points of parity doesn’t differentiate much from other competitors • Points of difference: we provide much more unique accessories and special features than others. • Our name of the brand is Luxe and our slogan is ”Luxe – enjoy the difference!”

  10. Product strategies • Long guarantee • We provide other supporting equipment, which are needed in telephone: • Battery, hands-free, headphones, mp3-player, internet, camera etc.) • Customers get also private phoneservice, where professionals help them in all kinds of problems. • We have licenses with big fashion houses.

  11. Pricing • Our company determines demand mainly via Internet surveys. • Manufacturing process cost us around 600 euro per mobile phone. Extra costs comes from different accessories and features. • We strive to get 20% profit per mobile phone and we sell our phones to our customers for 2000-5000 euros.

  12. Distribution channels • On Internet : easiest and fastest channel • From everywhere, when customers want • Partnership with fast transport company • 2 shops (Paris and Moscow) to give a unique image

  13. Marketing communication • We target wealthy population • So our message is to make them feel luxurious and fashionable • Consequently it’s better for us to reach them with advertisements in fashion magazines (whole pages or two pages) • We use emotional appeals and we use sexual attractiveness

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