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Grutzen Watches is a start-up watch producer and distribution company. Its mission is to service the high-end niche markets of watchmaking. It will benefit from the German engineering and manufacturing that went into the production of the watches. This industry has many untapped markets that want stylish, high-quality goods but don’t have the means to 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, an international privately-owned corporation, is located in Germany. 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 include Franz Grutzen &#8211, head production department, Henry Winster and Walter Young &#8211, heads of American divisions and sales and Marketing divisions.

German factory is located at Frankfurt’s 210 Autoroute 17. The factory measures 1,000m2 and is large enough to support the company’s growth for the first three year. Henry Winster’s home at 343 Palm Avenue, Los Angeles, California will receive the watches and distribute them. The watches will initially go on sale in San Francisco and Los Angeles upscale watch stores.

Grutzen&#8217’s sales team will include Henry Winster, two freelancing sales reps, and Henry Winster. Henry Winster in America and Franz Grutzen Germany will communicate to facilitate order processing.

The Products

The watches will have elegant, sporty features and be able to go to depths up to 100 metres. The company plans on releasing two versions: the “sport” and “night” watches.

Our pricing strategy will initially be to undercut our main competitors by 10% using 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

The timing is perfect to get into the high-end watches 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. This is why a company who can establish a solid brand image in the industry has a significant competitive advantage. Grutzen aims to maximize its high quality and affordable price, while also pursuing innovative designs that will help build brand value.

Financial Considerations

The startup cost of the company is $226,000 Owners’ 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 majority will come from rent, research and developing, initial inventory, and a strong bank account. The Break-even Analysis shows Grutzen Watches will be able to make a steady profit by the second year.

1.1 Objectives

1. Grutzen Watches was the top-selling European watch.
2. In the future, to produce luxury watches as well as the moderately priced line.
3. To achieve a 55% profit margin.
4. To reach a 20% market share within the U.S.

1.2 Mission

Grutzen Watches is an American watch company that makes wrist watches. The first batch was made 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 to Success

To succeed Grutzen Watches must:

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

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