Export Watch Manufacturer Business Plan

Export Watch Manufacturer Business Plan

Export Watch Manufacturer Business Plan

Grutzen Watches a new watch production and distribution company. Its mission is to service the high-end niche markets of watchmaking. It will make use of the German engineering, manufacturing, and design that was used in the manufacture 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.

The company intends to grow and export its products in the United States. They also want to make GrutzenWatches, the top selling European watch in Western U.S.A., the number one seller of European watches. Their long-term goals are: a 20% market share, brand image and brand equity through advertising, sustainable 55% profit margin and luxury watches.

The Company

Grutzen Watches International is a privately held international company. Production takes place primarily in Germany. For the short term, sales and marketing focus on the United States &#8211 California.

The three main investors are the ones who make the initial investment. These are: Franz Grutzen (head of production), Henry Winster (head of American sales and marketing division) and Walter Young (vice president of American section).

German factory is located in Frankfurt, Germany at 210 Autoroute 17. The factory is 1000 square meters in size and should provide enough space for the company to grow over the next three years. Henry Winster's home at 343 Palm Avenue, Los Angeles, California will receive the watches and distribute them. 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. The communication between Henry Winster (USA) and Franz Grutzen (Germany) will enable order processing.

The products

The first product line will consist of elegant analog watches that have sporting characteristics and can be worn to 100m below water depths. The company intends to release two versions of its first product line, the “sport” and “night” watches.

The pricing strategy will be to initially undercut our main competitors by 10%, using a market penetration strategy. After that, the pricing will be adjusted so that it is directly competitive with major competitors. The price per watch will be approximately $100-$200


A favorable time is right for entry into the high end watch industry. The U.S. has seen an increase of 50 percent in the purchase of European watches, both high-end and mid-level, over the past two-years. This trend is expected not to slow down.

Recent trends show that potential watch buyers are more willing to spend more money on watches because they have a better image. Companies that are able to build a solid brand image within this market gain a significant competitive edge. Grutzen strives to be a brand builder by leveraging its high quality products and low prices.

Financial Considerations

The start-up costs for the company will be approximately $226,000 Owners&#8217′ equity will provide $171,000. Another $30,000 in funding will consist of short-term borrowing, and the rest will be long-term loans. The start-up costs include rent, research and design, initial inventory, and a cash reserve. Grutzen Watches is expected to turn a steady profit in the second year of its Break-even Analysis.

1.1 Objectives

  1. Grutzen Watches is the most popular European watch.
  2. In the future, to produce luxury watches as well as the moderately priced line.
  3. To achieve a 5-5% profit margin.
  4. To attain a 20% marketshare 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. The company will first build its image as an excellent watch manufacturer, before it starts selling more luxury watches at a higher profit.

1.3 Keys for Success

To succeed Grutzen Watches must:

  • You can build and sell high quality products.
  • Achieve 100% customer satisfaction.
  • Build brand image and brand equity through marketing.

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