Business Proposal

Business ProposalBusiness Proposal

Business ProposalBusiness Proposal for for

partnerspartners

Design Reasearch-StudioDesign Reasearch-Studio

ContentContentss

1. Company Introduction

2. Management Ideology

3.Awards Particular (1)

4. Awards Particular (2)

5. Formation Chart

6. Products (1), (2)

7. Key Products (1), (2), (3)

8. Store Value Flow-chart

9. Industry Analysis

10. Market Research and Evaluation

11. Marketing Strategy

12. Internal and External Facto (SWOT Analysis)

13. Financial Statements

14. Step-by-step Growth

15. Business Expansion

16. Henceforth Vision

17. Business Proposal

Company IntroductionCompany Introduction

• Name:KACHI CRAFT - Korean Traditional Pattern-art Designer Jehee Kim’s Studio

• Found-Year:1983

• Dealing Products:

-Patchwork wrapping cloth, Pattern-art, scarf, necktie, muffler, purse, table mat, table runner, coaster, tablecloth, umbrella, etc.

• Office:A-23 trade mart, coex trade center, Kangnam-gu, Seou,l korea

• Shop: C-32 Arcade, coex Intercontinental hotel, Seoul, Korea

Company that prepares the future with trust and sincerity

Popularization of Traditional and Cultural Goods

TechnologyDevelopment

Transparent Management

Personnel Development

Forming Customer Value

Management IdeologyManagement Ideology

Awards Particular Awards Particular (1)(1)

1989.10.22 The 31989.10.22 The 3rdrd International Art Contest, Craft, 3 International Art Contest, Craft, 3rdrd place place

1989.12.16 The International Art Embassy Award1989.12.16 The International Art Embassy Award

1990.07.22 The 51990.07.22 The 5thth Korea Culture and Art Contest, Traditional Embroidery, 1 Korea Culture and Art Contest, Traditional Embroidery, 1stst place place

1991.09.02 International Association of Promoting Synthetic Art. The Invited Artist 1991.09.02 International Association of Promoting Synthetic Art. The Invited Artist

1992.08.14 Accepted for The 221992.08.14 Accepted for The 22ndnd Seoul Craft Contest Seoul Craft Contest

1992.09.18 Accepted for The 221992.09.18 Accepted for The 22ndnd National Craft Contest held by Small Business Corporation National Craft Contest held by Small Business Corporation

1993.04.11 The 81993.04.11 The 8thth Korea Culture and Art Contest, Superior Artist Korea Culture and Art Contest, Superior Artist

1993.04.11 The 81993.04.11 The 8thth Korea Culture and Art Contest, Embroidery, The Recommended Artist Korea Culture and Art Contest, Embroidery, The Recommended Artist

1993.05.31 The 81993.05.31 The 8thth Gyeonggi-Do housewife’s Day Craft, 1 Gyeonggi-Do housewife’s Day Craft, 1stst Place(Gyeonggi Provincial Governor) Place(Gyeonggi Provincial Governor)

1993.06.30 Accepted for The 231993.06.30 Accepted for The 23rdrd Soul Craft Contest Soul Craft Contest

1993.07.30 The 231993.07.30 The 23rdrd National Craft Contest held by Small Business Corporation Choice Goods National Craft Contest held by Small Business Corporation Choice Goods

1993.11.28 The 71993.11.28 The 7thth International Art Contest, the Invited Artist International Art Contest, the Invited Artist

1994.04.17 The 91994.04.17 The 9thth Korea Art Contest, Craft, Superior Artist Award Korea Art Contest, Craft, Superior Artist Award

1994.05.20 Accepted for The 241994.05.20 Accepted for The 24thth Seoul Craft Contest Seoul Craft Contest

Awards Particular Awards Particular (2)(2)

1994.08.09 Specially accepted for the 94 Korea Craft Contest(Small Business Corporation)1994.08.09 Specially accepted for the 94 Korea Craft Contest(Small Business Corporation)

1994.08.10 A committee member of the 94 Korea Craft Contest(The Association of Korea Craft Artist)1994.08.10 A committee member of the 94 Korea Craft Contest(The Association of Korea Craft Artist)

1995.06.21 The Exhibition for Globalization of Korean Craft, Culture and Art Award 1995.06.21 The Exhibition for Globalization of Korean Craft, Culture and Art Award

1999.08.27 Ministry of Culture and Tourism, A member of the 99 Cultural Foods Development Committee1999.08.27 Ministry of Culture and Tourism, A member of the 99 Cultural Foods Development Committee

2000.07.03 Seoul Tour Souvenir Contest, 32000.07.03 Seoul Tour Souvenir Contest, 3rdrd place(Scarf) place(Scarf)

2000.09.09 Korea Millennium Foods(Scarf, Handkerchief), Ministry of Commerce, Industry and Energy2000.09.09 Korea Millennium Foods(Scarf, Handkerchief), Ministry of Commerce, Industry and Energy

2000.10.19 Special Exhibition of ASEM2000.10.19 Special Exhibition of ASEM

2001.07.19 Korea Millennium Goods(Ten Longevity Symbols Clock), Ministry of Commerce,2001.07.19 Korea Millennium Goods(Ten Longevity Symbols Clock), Ministry of Commerce,

Industry and EnergyIndustry and Energy

2002.04.25 Seoul Industry Promotion Foundation, Textile and Craft Design, The invited Artist2002.04.25 Seoul Industry Promotion Foundation, Textile and Craft Design, The invited Artist

2002.07.24 Good Design Goods, Crane Symbols Scarf, Ministry of Commerce, Industry and Energy2002.07.24 Good Design Goods, Crane Symbols Scarf, Ministry of Commerce, Industry and Energy

2002.07.22002.07.242002.07.22002.07.24 Superior Award(Culture and Tour Goods and Craft)Superior Award(Culture and Tour Goods and Craft)

2002 Good Design Goods, Korea Institute of Design Promotion2002 Good Design Goods, Korea Institute of Design Promotion

2002.09.06 Accepted for The 52002.09.06 Accepted for The 5thth National Tour Souvenir Contest, Korea National Tourism organization National Tour Souvenir Contest, Korea National Tourism organization

2002.09.13 2002 Accepted for The 02 Seoul Culture and Tour Goods Contest, Seoul Municipality2002.09.13 2002 Accepted for The 02 Seoul Culture and Tour Goods Contest, Seoul Municipality

2003.09.17 Accepted of the Seoul Tour Souvenir Contest2003.09.17 Accepted of the Seoul Tour Souvenir Contest

2004.07.05 Good Design Goods(Necktie), Korea Institute of Design Promotion2004.07.05 Good Design Goods(Necktie), Korea Institute of Design Promotion

Kachi Craft consists of 2 main offices, 8 departments and a research institute where free and innovative researching is guaranteed under the direct supervision of the managing director.

Business Department

Management Supplying

Department

Design Research

Team

(Goods) Planning

Team

Overseas Business

Team

Local Business

team

Business Management Team

President Jehee Kim

Research Institute

Representative Director

Personnel / General Affairs

Accounting /

Administration

Management

Planning

Formation ChartFormation Chart

Products (1)Products (1)

Products Products (2)(2)

Key Products (1)Key Products (1)

Value Subject Value Embodiment Value Aim Value Core

• Cleanliness of the store

• Shows the beauty of Korean tradition

• Efficient price

• Attractive features

Customers

Frequent

Potential

Possible

Kim Je Hee

Design

Reasearch-Studio

• Distinction from the others

• Fulfilling customer’s Expectation • Uplift the brand value

Store Value Flow-chartStore Value Flow-chart

• Overcoming 1998’s economic crisis, the company is showing a gradual growth.

• With the increasing number of customers, the Korean traditional pattern-art market seems to be growing constantly.

• By contrasting the Market risk with the cost, the future prospect in terms of company ’s revenue and opportunities, is very positive.

• By the year 2007, the worked profit estimate is 2,000,000,000 Won.

• Throughout a sufficient market research a fulfilling marketing strategy and field network can be formed.

• Requesting importer's right of monopolization.

Industry Analysis Industry Analysis

Main Plan Main Plan

• Advertising brand concept

• Active usage of main office's marketing resource Outline

• Stating advertisement in the international fashion magazines and its' cover page : Vogue, Elle, Cosmopolitan etc.

• Stating advertisement in the local fashion magazines and its' cover page

: Nobless, Style, etc.

• Advertisement publications such as brand news and articles

Advertising through

magazines

• Advertise through Japanese fashion magazines (nonno, more, JJ, etc.)

• Advertise through local duty free shops

Advertising in Japan

• inviting fashion magazines, MD and famous celebrities

• Organizing events with fashion leaders' participation

Store opening

ceremony

Marketing StrategyMarketing Strategy

1.1. Market Research and EvaluationMarket Research and Evaluation

The Korean traditional pattern-art business is growing every year with the annual growth rate of 15%.Female between 25 to 35 years of age are the most spending customer group in import luxurious

goods.Nowadays, along with the middle class carrier women, college students are too a significant client

group.

05

1015

202530

354045

50

Luxurious goods’ female customer group in terms

of occupation

0

5

10

15

20

25

College students (8.0%)

Housewives (27.3%)

Carrier women

(Below $50) (18.2%)

Carrier women (Above $200) (45.5%)

20 –24

(8.1%)

25 –29

(13.7%)

30 –34

(24.0%)

35 –39

(8.0%)

40 –44

(14.9%)

45 –49

(13.7%)

50 –

(6.2%)

Luxurious goods’ female customer group in terms

of age

• Korean customers' preference

• the diversity of designs, colors and materials

• price competition

• fresh brand image

• international recognition

• Low local brand recognition

• limited customers

• competitive European brands

• Customers‘ total brand preference

Strength Weakness

• The dullness of current high-class brands

• increasing expenditure on luxurious goods

• local success

• Korea's increasing expenditure after the year 2005

• Competition with the new imported brands

• more competitive distribution line

Opportunities Threat

Internal Internal FactorsFactors

External External FactorsFactors

Internal and External Factors(SWOTInternal and External Factors(SWOTAnalysisAnalysis ) )

Classification 2003 2004 2005 2006 2007

Total Sales 525,000 652,000 965,000 1,470,000

2,000,000

Profit 150,000 220,000 450,000 862,000 1,370,000

(Unit:1,000 Won)(Unit:1,000 Won)Financial Statement Financial Statement

0200,000400,000600,000800,000

1,000,0001,200,0001,400,0001,600,0001,800,0002,000,000

2003 2004 2005 2006 2007

Total SalesProfit

Advertising Advertising stagestage

Market-entry stage

Earning stage

2002 ~ 2003 2004 ~ 2005 2006 ~

• offensively upbringing the brand

• building a network with the local MD

• building a brand image

• raising sincerity to customers

• building a stable distribution network

• building up an offensive business ability

• internationally upbringing the brand image

• raising sincerity to customers

• building a stable distribution network

Marketing

• 2002 Worldcup's Japanese tourists marketing

• opening a road-shop in Sam-Sung-Dong

• building an offensive marketing and business network

• opening the second road-shop

Remarks

1.1. Step-by-step Step-by-step GrowthGrowth

Stage 1building a main office and its system

Stage 2building a regional office(seoul) and connec

ting DB

Stage 3franchising

and products selling

Stage 4building a regional office(seoul) and connec

ting DB ,franchising and products selling

Stage 5improvemen

t and feedback

Business ExpansionBusiness Expansion

Henceforth Henceforth VisionVision

• Leading the changing traditional fashion and the pattern-art market • leading the local and overseas market

• Leading the changing traditional fashion and the pattern-art market • leading the local and overseas market

Summary Summary

2004 2005 2006

Focusing on Korean Focusing on Korean traditional brand imagetraditional brand image

opening metropolitan opening metropolitan area shopsarea shops

enhancing Seoul and the enhancing Seoul and the metropolitan area's metropolitan area's market controlmarket control

Capturing district Capturing district marketsmarkets

opening stores opening stores throughout the 5 throughout the 5 megalopolis areasmegalopolis areas overseas marketoverseas market

Completion of a Korean Completion of a Korean luxury-class brandluxury-class brand

build overseas build overseas branches(USA, Japan)branches(USA, Japan)

Foundation stage in vision terms

Development stage in vision terms

Vision realized stage

business diversification with centralized core business

building a nationwide sales-network

build overseas branches

monopolized local copyright

initial 4 year contract and 2 years of extension

main office's marketing support and usage of the existing advertisement data

apart of those above, additional proposals or suggestions can be discussed mutually

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