Precious Wedding is a professional wedding favors company in Taiwan which is dedicated to bringing the best wedding favors for every bride and groom. As wedding favors originate concept of wedding favors is neither new nor well-known for Taiwanese customers. Second, given that most Taiwanese don’t realize the candies we dispatch on weddings can already be counted as a form of wedding favors, there is unrecognized demand in this market, which therefore lead to unexplored sales potential. Third, the competition is low as there are only fewer than 20 vendors running on a large scale.
In addition, we carried out a competitive analysis as well as a SWOT analysis. While the competitive analysis allows us to get a deeper understanding of our competitors, the SWOT analysis not only helps us identify strengths and weaknesses, but also pinpoints several opportunities and threats that must be addressed when formulating business strategies. Most importantly, both of these analyses have shown that Precious Wedding do possess competitive advantages and are highly likely to excel in the wedding favors market in Taiwan.
Furthermore, to examine whether the sales potential of wedding favors market in Taiwan do exist or not, an online survey was performed to local Taiwanese with 111 valid responses collected. To enhance the accuracy of survey results, we on purpose explain the definition of
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wedding favors in the beginning of the survey. Also, to test whether Taiwanese prefer edible or non-edible wedding favors, three types of questionnaires are dispatched.
Several noteworthy findings have been released from our survey and are listed as below.
1) As high as 88% of respondents claimed that they will or they are likely to purchase wedding favors (or recommend others to do so), while only 4% refuse to buy.
2) During the purchase decision process, Taiwanese consider product uniqueness and product quality as the two most important attributes, followed by the factor of brand/vendor reputation. Surprisingly, price ranked No.4 out of the five factors in our survey results.
3) 62% of survey participants are interested in both edible and non-edible wedding favors.
4) 41% of respondents are willing to spend over NT$30 per item for edible wedding favors, while 48% of respondents are willing to spend over NT$50 per item for non-edible ones.
5) 83% of respondents prefer to shop from vendors with both physical and virtual stores.
6) 70% of respondents claimed that internet is their main source of wedding favors information, while 16% seek information from wedding consultants or related professionals.
Based on our analyses and survey results, we have formulated a comprehensive marketing strategy to tackle our market. First of all, instead of offering a wide price range of products like our competitors, we will only focus on selling middle to high end wedding favors over NT$20 per item. Second, considering the market is at late introduction stage, we view branding as a critical element of our marketing strategy, allowing us to charge higher margin and to build recognition promptly. Given that none of our competitors has achieved a competitive edge in terms of company or brand awareness, our catchy brand name Precious
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competitors who mostly sell similar products without any special features, we will be offering branded, personalized, and customized wedding favors to differentiate ourselves from others.Also, we have strict control policy to ensure high qualities and customers’ satisfaction.
On top of that, the two co-founders’ working experiences also contribute to our competitive edge in terms of product. On one hand, we know a lot about gifts, as we used to attend major international gift exhibitions promoting gifts to buyers worldwide. Since wedding favors can be grouped into the gift category, we also have a better sense for wedding favors with regards to design, uniqueness, quality, and customers’ acceptance. On the other hand, as most of the wedding suppliers are located in Mainland China, our working experiences in the Chinese factories will be beneficial when it comes to merchandise purchase. For instance, we are very familiar with every process of a product development, which will facilitate our negotiation when co-developing customized products with these Chinese suppliers.
In terms of financial perspective, despite of the underestimation of sales forecast, we still obtain as high as NT$5,250,934 in our NPV calculation over the next five years with a discount rate of 11.01%. In the sensitivity analysis, our NPV remains positive in the five different scenarios, ranging from the lowest of NT$3,411,729 to the highest of NT$6,734,601.
That is to say, even in an economic downturn, our business plan is still practical and financially feasible.
In summation, there is no better timing than now to dive into this market, as it is already at the late introduction stage of a product life cycle. With proper strategies, we can ride this trend and enjoy the exponential sales growth. In contrast, if missing this good entry point, fierce
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國立 政 治 大 學
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competition might surface during the growth stage of a product life cycle and make it difficult for a startup company like us to survive.
Given the survey results, analyses, and strategies described in the business plan, we are confident that Precious Wedding will meet financial forecast, expand company scale continuously, and ultimately fulfill our goal to be the No.1 wedding favors brand in Taiwan.
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As the purpose of our market research was to investigate Taiwanese attitude towards wedding favors, the original survey was conducted in Chinese. Also, to test whether Taiwanese are inclined to purchase edible wedding favors or not, depending on the answers on question No.7, respondents were led to 3 versions of questionnaires for the rest of the survey.
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