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Transcript of R&G Leather Co
R&G LEATHER COMPANY
2
Table of Contents
4..........................................................Company Profile
5..........................................................Mission Statement/Vision
6..........................................................Social Responsibility
7...........................................................Contact R&G
8.-11..................................................... Industry Research
12.-13...................................................Market Trends
14. - 17.................................................Competitors
18.-19.................................................. Perceptual Map
20.-21.................................................. Costumer Profile
22........................................................Mood/Inspiration Board
R&G LEATHER COMPANY
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Table of Contents
23.........................................................Concept Board
24.-31...................................................Location Information
32.-35..................................................Product Line
36.-37..................................................Sourcing
38.-41..................................................Finances
42.-45..................................................Advertising
46.-47..................................................Promotion
48.-51..................................................Branding
52.-53..................................................Documents
R&G LEATHER COMPANY
4
Company Profile Created in Savannah in 2012, three fashionable ladies dreamed of sharing their love and passion for
custom-made leather handbags with the world.
Inspired by giving back to the community and helping local farmers and ranchers, R&G Leather Company
became reality and proudly uses 95% Made in the U.S.A. each season. Skilled designers make every customized
handbag in house, you can watch your bag be made from start to finish!
The mission of R&G Leather Co. is to provide stylish, yet classic handbags that can be customized to
satisfy the wants and needs of busy women all over the U.S.A.
Need a last minute bag? Stop in for our chic readymade handbags, we’ve got a style for every occasion.
R&G Leather Company recycles and reuses while giving back through the “Scraps for Cash” line - scraps from
other pieces are made into small accessories and benefits local charities each month.
COME BACK AND SEE US!
The girls from R&G,
Malorie, Chelsea, & Zita
R&G LEATHER COMPANY
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Vision The R&G Leather Company brands itself on our vision of quality
products, customer loyalty, craftsmanship, and innovative design, all
while adhering to our traditional roots.
At R&G Leather Company we vow to encompass skilled craftsmanship
and knowledge of the industry while incorporating fashionable high-end
leather goods at supreme quality. We pride ourselves on our unique out-
look on the future of the leather industry, as well as what our company
can contribute to the benefit of the planet. Our Leather Line will remain
100% in-house made, and 100% United States products.
Mission
R&G LEATHER COMPANY
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Social Responsibility
To create a well-rounded image, R&G Leather Company has decided to add a
philanthropic aspect to our business structure. We have chosen to reuse our byprod-
ucts to recreate items that will be sold in-store to benefit local charities. Each month,
the charities we donate to will be altered due to current events and social happen-
ings. This project will be called “scraps for cash” and 75% of the profit made from the
scrap leather will be advertised and donated to the charity of the month.
R&G LEATHER COMPANY
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Contact R&GBY EMAIL:
BY TELEPHONE:
704-778-8670
BY WEBSITE:
rgleatherco.wix.com/randg
BY MAIL:
346 1/2 Price StreetSavannah, GA 31401
R&G LEATHER COMPANY
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Western Wear Industry The origin of Western wear dates back to the 19th century
American West when men and women spent their daily lives on open
ranges, wagons, and along cattle drives, adhering to a functional, yet
comfortable style that would suit those basic needs. These attributes
found in fundamental Western apparel would lay foundations for
the style that would carry on well into the 1900s and inspires fash-
ion we know and love. Ranchers, cowboys, Native Americans, and
country musicians were some of the original characters to wear this
style of clothing, but today, many designers have translated these
elements of style to looks on the runway. Most recently, collections
by Isabel Marant, Opening Ceremony, and D&G are just a few who
have reenergized the Western wear industry. Western wear has re-
mained a staple that represents comfort, tradition, and authenticity
in American culture.
Industry Research
R&G LEATHER COMPANY
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Leather IndustryIndustry Research
Taking advantage of the skins of animals for clothing and necessi-
ties is one of the oldest activities in the history of human civilization.
Ancient Egyptians and Greeks alike utilized the characteristics of leather
for countless purposes. Traditional processes of how leathers were man-
ufactured vary among groups of people around the world. Over time, these
methods have gradually become more refined an efficient, allowing skins
to continue to be apart of daily life, even in the modern era. Maintaining
quality and craftsmanship through tradition has made leather one of the
most valuable and irreplaceable materials on the planet.
Until the late 19th century, over 200 years since primitive practices, very
few changes were made regarding the process of producing leather. The
Industrial Revolution increased efficiency in the manufacturing of leather
through advanced machinery and knowledge. Today, traditional practices
are still used along with innovative synthetic agents to aid in the process
of tanning.
R&G LEATHER COMPANY
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American Industry According to the Gale Group in 2011, the overall economic standing of leather
goods industry, valued at $482 million, is “tied to the status of the domestic leather
production industry.” The industry employs over 6,000 workers across the country.
California, New York, and Texas are the top U.S. state manufacturers. Due to the
handiwork and knowledge that is required by individuals in the leather industry,
workers require high wages. Foreign producers, usually located in developing coun-
tries, uphold wage rates far below wages in the U.S.; a trend expected to continue for
at least another decade. Top foreign manufacturers include Italy, China, and India.
Although the United States does not fall far behind, many small producers could
not survive the competitive challenge introduced by foreign imports. The General
Agreement of Tariffs and Trade (GATT) and the North American Free Trade Agree-
ment (NAFTA) have significantly cut down cost of trade between Mexico and the U.S.
making importing leather goods more affordable.
Industry Research
R&G LEATHER COMPANY
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Women’s Handbags and Purses During the 1980s, consumers began to think more and more aesthetically. Pur-
chases of handbags and accessories nearly doubled with an annual growth rate of 7
percent, subsequently leading designer brands’ sales soared. According to the Gale
Group’s analysis of the American Women’s Handbag and Purse industry, nearly 66%
of domestic handbags shipped in the U.S. in 2005 were made of leather. R&G Leath-
er Company sees this gap in the market as an opportunity to encourage domestic pro-
duction, hoping to create enthusiasm within the domestic leather industry. Leather
buying habits shifted to necessities of form, function, and quality, rather than de-
signer name obsessions. Savvy shoppers are now turning to high-quality items priced
at the $200-$300 price point (Gale Group states).
Seeing this major shift in the market for handbags, shoppers are looking for a
more durable bag that goes with many out fits and has a long life span. Today shop-
pers are willing pay for this special handbag if it meets the needs no matter the cost.
This need for durable hand bags is shown in the market share of women’s handbags
accounting 47.4% of the fashion inudstry.
Industry Research
R&G LEATHER COMPANY
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Market Trends
Market Research Within the recent street style, western-inspired looks and leather handbags
are on the arm of nearly every fashionista, creating a trickle across sensation of this
western inspired look. According to data collected by WGSN, perforated, woven, fur,
studs, and embossment details are some of the current and forecasted trends within
the accessories industry, making knowledge of craftsmanship a must for designers
and manufacturers. Magnetic closures are also a forecasted trend to create the most
seamless bag possible. Materials such as cork, leather, patent leather, and animal
skins are also projected to make impacts on designers. Silhouettes on trend include
clutches, backpacks, hobos, satchels, and oversized tote bags. Distressed leather is
also on point with this season’s trends. In the Las Vegas trade shows shows, the idea
of merging heritage and craftsmanship with modern design was a hot button. The
Native American western-inspired print trend “shows no sign of slowing down” ac-
cording to WGSN.
R&G LEATHER COMPANY
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The newest technology includes innovations to the multipurpose machine
known as a “drum,” which was updated by incorporating a microprocessor, making
it possible to enhance chemical treatments to hides and skins. In the early 2000s,
enhancements in the tanning process made it possible to change low-quality skins
to use them in high-quality garments (Global Industry Overview pg8). Advanced
shaving machines provide a higher degree of accuracy and greater control over the
appearance of the leather itself. These are just a few of the innovations discovered to
increase production and efficiency in the leather industry.
Technology
Sales Trends Material TrendsPopular StylesConsistent Sales for leather
handbags. Western wear a staple item in
fashion designs.
Clutch Back pack
HoboSatchels
Oversized tote bags
Magnetic closuresBras buckles
CorkPatient leather
LeatherAnimal skins
Tanning and dying process
Market Trends
R&G LEATHER COMPANY
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Competitors
Lucky Brand
FOUNDED:
OWNERS:
MERCHANDISE ASSORTMENT:
PRICE POINT:
TARGET COSTUMER:
COMPETITORS:
1990, Los Angeles
The Fifth & Pacific Companies, Inc.
Women’s and men’s denim, casual sportswear, accessories and jewelry
$129 - $299
18 to 30 Year Old Female
Diesel, Guess, True Religion
Lucky offers a slightly less trendy variety of leather made handbags.
Lucky’s aesthetic is very similar to R&G, especially within the customizable
line. Although Lucky is a substantial competitor, they are not as strong as the
Frye brand.
R&G LEATHER COMPANY
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Competitors
Frye
FOUNDED:
OWNERS:
MERCHANDISE ASSORTMENT:
PRICE POINT:
TARGET COSTUMER:
COMPETITORS:
1863, Marlbaro
The Frye Company
Shoes and bags
$178 - $578
Wide Age Range
Laredo, Ariat, Carhartt
Frye is a competitor of the R&G Leather Co. due to their attention to detail
and craftsmanship in leather. They offer a wide variety of styles in durable, qual-
ity hand bags at competitive prices, and therefore, would be attractive to the R&G
customer.
R&G LEATHER COMPANY
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Urban Outfitters
FOUNDED:
OWNERS:
MERCHANDISE ASSORTMENT:
PRICE POINT:
TARGET COSTUMER:
COMPETITORS:
1970, Philadelphia
URBN Inc.
Women’s and men’s fashion apparel, footwear, accessories, apartment wares, and gifts
$12- $475
18 to 28 Year Old Female
The Gap, Bebe, H&M and Guess
Urban Outfitters constantly produces products reflecting current
trends and popular styles. Urban Outfitters offers a variety of products
in a wide range of prices, styles, and materials, making their brand a
great place to look for handbags. Most likely, Urban Outfitters func-
tions as an alternative brand for our younger customer.
Competitors
R&G LEATHER COMPANY
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Aldo
FOUNDED:
OWNERS:
MERCHANDISE ASSORTMENT:
PRICE POINT:
TARGET COSTUMER:
COMPETITORS:
1978, Montreal
The Aldo Group
Shoes, handbags, and other accessories
$25- $150
20 to 40 Year Old Female
Nine West, Steve Madden
Aldo is a strong competitor to R&G because of their attention
to accessories. This brand sells leather shoes, handbags, and jewelry.
Aldo also offers lower prices in their bags that are directly competitive
to the ready-made line at R&G. Our younger customer would also most
likely shop at Aldo.
Competitors
R&G LEATHER COMPANY
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TRENDY
BASIC
INEXPENSIVE EXPENSIVE
R&G LEATHER
FRYE
LUCKY BRAND
Main LinePerceptual Map
R&G LEATHER COMPANY
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Difussion LineTRENDY
BASIC
INEXPENSIVE EXPENSIVE
ALDO
R&G LEATHER
URBAN OUTFITTERS
Perceptual Map
R&G LEATHER COMPANY
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Customer Profile
Custom Made Line
Age: 35-45
Late generation x
Lives in suburb of large city
Rocking the Ages
Money contentious
Earns $75,000
Values experience when shopping, and researches
before purchase
Prefers customized products
VALS - Inovatorv
R&G LEATHER COMPANY
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Age 25-35
Generation Y
Early career
Media savvy
Socially aware, eco-contentious
Culturally exposed, but grounded in tradition
Views American roots as “home”
Aware of marketing, thus peruses individuality
and trendiness
Looks for products that are available and
convenient
VALS - Inovator
Ready Made LineCustomer Profile
R&G LEATHER COMPANY
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Los Angeles, California
Store Location The Arts District
Population, 2011 3,819,702
Population, 2010 3,792,621
Female % 50.2%
Household income $49,138
Retail sales $36,672,803
Location Profile
R&G LEATHER COMPANY
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Lauryn Age: 29
Occupation: Graphic Designer
Marital Status: Married
Education: Bachelor's degree
Household Income: $80,000
Life Plans: Recently married,
Her own firm,
10 year plan
Shopping Hab its: $200 to $500
The Artistic District
Quality, design
Location Profile
R&G LEATHER COMPANY
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Austin, Texas
Store Location The Renaissance Market
Population, 2011 820,611
Population, 2010 790,390
Female % 49.4%
Household income $50,520
Retail sales $13,493,511
Location Profile
R&G LEATHER COMPANY
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Anna Age: 26
Occupation: Journalist
Marital Status: Single
Education: Bachelor's degree
In Grad school
Household income: $60,000
Life Plans: The Rolling Stones
Free spirit
Permanent job
Shopping Habits: $100 to $350
Anthropologie and Frye
Location Profile
R&G LEATHER COMPANY
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Nashville, Tennessee
Store Location Five Points
Population, 2011 609,644
Population, 2010 601,222
Female % 50.5%
Household income $43,314
Retail sales $10,272,149
Location Profile
R&G LEATHER COMPANY
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Tammy Age: 40
Occupation: Event Planner
Marital Status: Married
Education: Bachelor's degree
Household income: $92,000
Life Plans: Husband, country singer
Plans music events,
Bonnaroo Music Festival Shopping Habits: $200 to $700
Favors crafty things
Design comes first
Location Profile
R&G LEATHER COMPANY
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Location Profile
Brick and Mortar
Downtown Congress Commons
323 Congress St. Austin TX 78701
800 sq ft ($4000)
creative loft/ utilities included
Flagship StoreAustin, Texas
R&G LEATHER COMPANY
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Location Profile
Five Points Collaborative
1108 Woodland Street Nashville TN
37206
320 sq ft ($800)
business incubator/ utilities included
Arts District: Bay Street Arts2038 Bay Street LA, CA 90021
artistic loftsZita will be living in 2 of the 4 rooms (split rent
$1200, R&G will pay $600)interior parking/storage room/utilities included
Nashville,Tennessee Los Angeles, California
R&G LEATHER COMPANY
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Custom
Leather color/type
Color of thread
Type of trimmings
Monogram
Embossment
The feature that sets the R&G Leather Co apart from its competitors is the aspect
that all leather products are made in-house and right in front of the customers’ eyes.
The leather products offered at R&G Leather Co will be 95% United States made. This
means that from every stitch to the fasteners, the product will be from and made in the
United States. Each R&G store will have a design studio in back where the customers
can see our expert leather designers creating the specialty products ranging in price
from $200-400. This unique service will include choice of:
Product Line
R&G LEATHER COMPANY
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Ready Made In understanding that our consumer will not always have the opportunity or re-
sources to customize their own leather bags, we at the R&G Leather Co have decided to
offer a diffusion line of products catering to the more impulsive side of our consumer.
This line will have a significantly less expensive price point to meet the younger and
more conservative customers needs. Our expert design team will decide which of the
most fashion forward silhouettes will be appropriate to offer in a synthetic material
which still holds quality to our brand. These products will range in price from $40-75.
Product Line
R&G LEATHER COMPANY
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Philatropy Due to the expected popularity of our handcrafted, American-made leather
goods, we expect to have a lot of left over leather. Out of the saved leather scraps,
our intelligent designers will create smaller products such as belts, bracelets, jewelry,
wallets, coin purses, key chains, etc. These products will be showcased in our store to
draw attention to our philanthropy work called “Scraps for Cash”. For each product
that is created and sold for our “Scraps for Cash” 75% of the purchase will be donated
to the charity of the month. Each month R&G will choose one charity to donate our
“Scraps for Cash” profit to. For example, October will be donated to Breast Cancer
awareness, November to Operation Christmas, and so on. Products price will range
from $15-30.
Product Line
R&G LEATHER COMPANY
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346 1/2 Price StreetSavannah, GA 31401
STYLE#1-2054
STYLE#1-2056
STYLE#2-3065
STYLE#1-2050
STYLE#2-3069
STYLE#3-4023
Custom
Ready Made
Scraps for Cash
NAME: Martin PRICE: $170 MATERIAL: 100% Cowhie Aniline
NAME: Silvia PRICE: $450
NAME: Signiture PRICE: $200
NAME: Tulpe PRICE: $50 MATERIAL: 100% Polyurethane
NAME: Narcise PRICE: $35 MATERIAL: 100% Vinyl
NAME: Maigs PRICE: $25 MATERIAL: Miscellaneous
MATERIAL: 100% Cowhie Aniline
MATERIAL: 100% Cowhie Aniline
Product Line
R&G LEATHER COMPANY
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Sourcing
Custom Made Since one line of our products contains 95% U.S. made items, we have referenced
Boston Hides and Furs as our wholesaler and supplier. We have chosen this company
because they offer a wide range of leather products and services such as tanning and
vegetable dyes. This supplier also offers a variety of specialty leathers and sheepskins
as well; therefore, this is a great source to add a unique touch to the look and feel of our
handbags. The cost of the hides from Boston Hides and Furs range from $89-150 per
hide.
For our smaller embellishments, including trimmings and findings that will be add-
ed to our accessories, we have chosen to source from Tandy Leather Factory which is
located in each state we have store locations in. Their large variety of trimmings helps
R&G expand our design possibilities. These items will be used in our customized
leather bags (Leather Craft and Leather Craft Supplies). The prices from this whole-
saler are extremely affordable with zippers costing $.99, buckles at $2.00, and rings at
$1.00.
R&G LEATHER COMPANY
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Ready Made Since our ready made line is priced at an inexpensive price point compared to our
customized leather line, R&G has decided to manufacture our goods in Mexico. By do-
ing so, our designers will have more time to spend on our in-house customized orders;
therefore, increasing the quality and craftsmanship within each product. This decision
was based on the availability and easy access to shipping goods to and from our stores
to Mexico. NAFTA makes sourcing our handbags across the border much easier than
trying to track them from Asia. Lead times, shipping times, and the arrival of our prod-
ucts can be predicted at a much easier rate due to the close proximity of our stores and
Mexico. Since our stores are located in Los Angeles, Austin, and Nashville, sourcing
to Mexico seemed the most logical. The manufacturer we have started to build a rela-
tionship with is Botas Caborca, a company that sources many leather products such as
shoes, boxes, and handbags (Caborca Boots). Depending on the size and materials of
the bags, they will charge $10-20 per bag.
Sourcing
R&G LEATHER COMPANY
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Finances
STYLE # JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL11% 4% 3% 7% 5% 15% 7% 4% 5% 8% 14% 17% 100%92,020$ 33,462$ 25,096$ 58,558$ 41,827$ 125,482$ 58,558$ 33,462$ 41,827$ 66,924$ 117,116$ 142,213$ 836,546$
Quantities Quantities Quantities Quantities Quantities Quantities Quantities Quantities Quantities Quantities Quantities Quantities
Style #1-2050 70 26 19 45 32 96 45 26 32 51 90 109 640Style #1-2054 25 9 7 16 11 33 16 9 11 18 31 38 223Style #1-2056 50 18 14 32 23 68 32 18 23 37 64 78 456
Style #2-3065 368 134 100 234 167 502 234 134 167 268 468 569 3346Style #2-3069 789 287 215 502 359 1076 502 287 359 574 1004 1219 7170
Style #3-4023 368 134 100 234 167 502 234 134 167 268 468 569 33461670 607 455 1063 759 2277 1063 607 759 1215 2125 2581 15182
Monthly %Planed Sales
TOTAL
MartinSilvia
Signiture
NAME
CUSTOM MADE
Maigs
TupleNarcise
READY MADE
SCRAPS FOR CASH
STYLE# NAME Wholesale Wholesale Cost Cost Margin MU%
Per Unit Total Per Unit Total Per Unit
Style #1-2050 Martin 170$ 108,751$ 50.00$ 31,986$ 120.00$ 70.59Style #1-2054 Silvia 450$ 100,386$ 95.32$ 21,264$ 354.68$ 78.82Style #1-2056 Signiture 275$ 125,482$ 86.52$ 39,479$ 188.48$ 68.54
Style #2-3065 Tulpe 50$ 167,309$ 9.50$ 31,789$ 40.50$ 81.00Style #2-3069 Narcise 35$ 250,964$ 8.75$ 62,741$ 26.25$ 75.00
Style #3-4023 Maigs 25$ 83,655$ 3.00$ 10,039$ 22.00$ 88.001,005$ 836,547$ 253.09$ 197,298$ 751.91$ TOTAL
CUSTOM MADE
READY MADE
SCRAPS FOR CASH
Unite Breakdown
Sales
R&G LEATHER COMPANY
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Finances
After thorough target market research, R&G Leather Co. concluded that June,
October, Novemeber, and December will be the highest selling months of the year.
Graduation in June is a big event that will increase sales, in the customized line espe-
cially. Consumers will find placing orders will be easiest in May, recommended by R&G,
but they will pay in June. The months leading up to the holiday season will also spark
sales, both in the customized and readymade lines. Months like March and February
will bring the slowest sales due to after-holidays saving, therefore, we will run promo-
tions and take advantage of this time by planning and designing new looks.
R&G LEATHER COMPANY
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Five-Year Plan R&G is going to open the flagship store at 323 Congress Street in Austin,
Texas 78701. At this time all three owners Chelsea Leigh, Zita Freidenfelde and Maloie
Earles will begin to start building a networking system. After a through search for knowl-
edgeable leather craftsmen, we will set up shop and begin designing our first handbags.
After we have our first stock of materials for our customized line, and our first shipment
of our ready-made bags are in store we will open shop. Our grand opening party will be
held on April 25 2013.
After two strong years of business, we will have secured our second team of knowledge-
able designers and sales associates for our second location. Our second location is 2038
Bay Street Los Angeles, California 90021. We will be ready to have our grand opening
August 23, 2015. At this time Zita Freidenfelde will be manager in charge of this loca-
tion.
Finances
R&G LEATHER COMPANY
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After two more years of successful business, R&G will open its third and final
location at 1108 Woodland St Nashville, Tennessee 37206. At this time the other two
locations will have a strong customer base that is brining in strong revenue. Malorie
Earles will be in charge of this location. The leather craftsmen and the sales staff and
product selections will all be ready for our grand opening of this location by October 1,
2017.
Finances
R&G LEATHER COMPANY
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Advertising
R&G will begin marketing in the Austin Area by joining the
Lone Star Leather Crafters newsletter. By doing so, R&G will be able
to participate in local events that support the leather industry in the
United States. R&G will also pair up with Texas’ popular blogger,
Jane Aldridge, from Sea of Shoes. Jane has been featured in many
fashion magazines such as Elle and has collaborated to design shoes
for Urban Outfitters. In having such a young influential blogger col-
laborate with R&G, we hope to be featured on her blog and perhaps,
in the future, collaborate to design a handbag together. R&G also
plans to reach out to Austin Fusion, a website that brings together
local art, fashion, music, & film. By being a feature of the site, we at
R&G feel we will reach our ultimate target market and start to build
a strong consumer base.
Marketing
R&G LEATHER COMPANY
43
Advertising
For our LA location we plan to pair with famous blogger Meagan,
from ‘… love Meagan’. Having a feature on her blog will help us reach a
wide variety of women who will shop at our store. Her blog is one of the
top five blogs in L.A., therefore, she has enough web traffic to hopefully
help us gain a great collaborative partnership. The second avenue for mar-
keting in the L.A.area would be the Los Angeles Fashion Magazine. This
website would bring the right attention to our brand and let women in our
target market know who R&G is and how we have a the perfect product for
them.
In Nashville we plan to pair up with blogger Laruen from Blooming Leo-
pold. In collaborating with Lauren to make the women of Nashville aware
of R&G leather Co., we will bring a higher traffic into our store, and create
support for our brand.
R&G LEATHER COMPANY
45
Advertising
R&G Leather Co. chose to film the promotional
video and advertisements on Skidaway Island in Savannah,
Georgia. The shoot took place in a garden surrounded by
the local ranch, Besthesda Farms, a small cattle farms filled
with goats and chickens. Filming at sunrise for the fall shoot
captured R&G’s aesthetic and portrayed the brand’s mes-
sage effectively.
Ad Production
R&G LEATHER COMPANY
47
Launch Party R&G’s launch party will reflect the aesthetic of each store
location. The grand opening launch party for our flagship store,
located in Austin, Texas, will have a rustic feel our new customers
will be sure to enjoy. R&G will provide guests with tasty drinks and
tex-mex style food to celebrate the culture of Austin. Raffles and
giveaways will be presented at the end of the night. The store owners
and in-house designers will be socializing and making new connec-
tions with customers, forming strong relationships from the start.
The ticket to get in? Wear leather!
Promotion