Economic Projects în Commerce - CS Sweet Bride JSC

Chapter 1. Company description

“Sweet Bride” is a company which activates in the field of wedding dresses trade. The company was founded in 2009 and registered in the Commercial Register in Brasov with number J21/516/2009, becoming a juridical person and also being authorized to operate on an unlimited period.

Company shareholders have chosen to invest in this area because, although the economic crisis affects all the fields, wedding dresses sale didn’t give signs and doesn’t give signs of decreasing, but contrary, is increasing because brides don’t suffer from crisis!

In this situation, the future bride and groom give up certain habits and accessories (flowers placed in the chest, floral arrangements, decorations, sophisticated invitations), but a bride will never give up the wedding dress of her dreams. This is a major advantage during the crisis in the wedding dresses field and catalogues it as a profitable one.

Company's target market consists of women aged over 18 years, who make part of the west, south, and south-east geographic areas of Romania and have medium and high incomes. Trough the nature the products the company offers the religious, national or ethnic discriminations are not allowed, so the customers will be diversified.

To quantify the business success on the market in which the company lies, it is required a knowledge of the barriers to entry and exit barriers.

The main barriers to entry in this field are:

The main barriers to enter into the market in this domain are:

- the legislative ones, which can make difficult obtaining authorizations;

- economic crisis, during which no business presents certainty;

- the necessary capital which has a high value;

- the exclusive contracts concluded by the competitive firms with some manufacturers

- the alliance of the major brands to keep the market „closed”, in order to eliminate the new competitors.

In the filed where company activates , there are no significant exit barriers, because trough the nature of the firm activity, the company could very easy reconvert his domain with other types of garments.

However, if the company winds up, liquidation of remaining stocks and selling commercial space could become a major problem in the context of current crisis which affects the Real Estate Market also.

Chapter II. Market Segmentation

To better satisfy the market demands, the company segments its clients and tackle different each category of customers. Market sale wedding dress is structured according to different criteria:

- Depending on income:

- High income brides who want an expensive dress - large, with many jewels, with various embroidered, floral items; they believe that in this way they can handle competition;

- Brides with high income, but for whom other things such as love and good understanding in the family are more important than an expensive dress; therefore, they shall choose a simple and cheaper dress;

- Brides who have low incomes and buy cheap dresses.

- Depending on age:

- Between 18 and 25 years;

- Between 26 and 35 years;

- Between 35 and 45 years;

- Over 45 years.

- Depending on the geographical criteria:

- West;

- South;

- South-East.

- Depending on the living environment:

- Rural areas;

- Urban areas.