Export Watch Manufacturer Business Plan Leave a comment

Grutzen Watches, a start-up distributor and producer of watches, is Grutzen Watches. Its goal is to reach the niche market segments of the watch industry. It will benefit from the German engineering and manufacturing that went into the production of the watches. There are many potential markets in this industry that want stylish, high quality goods, but they don’t think they can afford them.

It is the intention of the firm to export its products to America and make Grutzen Watches number one selling European watch in the Western U.S. The company’s long-term goals include a 20% market share in the U.S., brand equity and marketing, a sustainable 55% profit margin, as well as luxury watches.

The Company

Grutzen Watches International is a privately held international company. Production takes place in Germany and sales and marketing are focused on the United States – California – for the short-term future.

The initial investment makes up three of the owners. These include Franz Grutzen’s head of production, Henry Winster’s head of American and sales and market divisions, and Walter Young’s vice president for American division.

German factory located at 210 Autoroute 17 Frankfurt, Germany. The factory measures 1,000m2 and is large enough to support the company’s growth for the first three year. The watches will be shipped to and distributed from Henry Winster’s house at 343 Palm Avenue in Los Angeles, California. The watches will first be sold at upscale watch shops in Los Angeles or San Francisco.

Grutzen&#8217’s sales team will consist of Henry Winster as well as two freelancing sales representatives. Henry Winster in America and Franz Grutzen Germany will communicate to facilitate order processing.

The Products

The company’s first product line will include elegant analog watches with sporting features that can be used up to 100 meters below the water level. The company intends to release two versions of its first product line, the “sport” and “night” watches.

The pricing strategy for our main competitors will be to first undercut them by 10%. We will then use a market penetration strategy. The pricing will then be adjusted to make it directly competitive against the major competitors. It is anticipated that the watch will retail for between $100 and $200.

The Market

Entry into the high-end watch industry comes at a propitious time. Over the past two years, the purchase of mid-level and high-level European watches has increased by 50 percent in the U.S. and this trend is expected to continue.

A recent trend that is important is the fact that potential watch buyers will spend more on watches due to their enhanced image appeal. Companies that are able to build a solid brand image within this market gain a significant competitive edge. It is the aim of Grutzen to capitalize on its high quality and reasonable price while pursuing the innovative styles necessary for brand building.

Financial Considerations

The startup costs of the company will amount to $226,000. Owners’ equity will provide $171,000. An additional $30,000 of funding will be made up of short-term borrowing and long-term loans. Rent, research and development, inventory and strong cash accounts will make up the majority of start-up expenses. Grutzen Watches can expect to make a steady income in the second-year, according to their Break-even analysis.

1.1 Objectives

1. Grutzen Watches will be the number-one selling European watch.
2. To eventually produce luxury watches in addition to the moderately priced line.
3. To achieve a 55% profit margin.
4. To capture a 20% market in the U.S.

1.2 Mission

Grutzen Watches, a watch manufacturer, makes wrist watches that can be purchased in the United States. Its first production was in California. First, the company will establish its reputation as a high-quality watchmaker, then it will start selling luxury watches with higher profits.

Success Keys 1.3

To succeed Grutzen Watches must:

• Sell and build high-quality products.
• Achieve 100% customer satisfaction.
• Marketing can help build brand equity and image.