Domestic and host market trends, страница 2

                The third product is ushanka. “Ushanka is a Russian fur cap with ear flaps that can be tied up to the crown of the cap, or tied at the chin to protect the ears, jaw and lower chin from the cold”. The word Ushanka comes from the word "ears" in Russian.Ushankas are often made from cheap sheepskin, muskrat fur orrabbit, though artificial fur hats are also manufactured.

                And the last two products are schal and scarf.  The schal are often named “babushka”, because of the print on it. The design of schal product looks like traditional Russian patterns. Scarf is the piece of clothes which is made of felt, the same material as walenki.

                All four products will be sold under “Walenki Filz” brand, which is supposed to be highly associated with extremely fashionable, practically useful and at the same time exclusively designed apparel and accessories.

                These characteristics together are the main source of competitive advantage for “Walenki Filz” products. Although these types of apparel take roots in traditional Russian clothes they are very up-to-date and fashionable due to imprints and materials used for production. 

4.  Market trends

As it was mentioned before since the second half of the 20th century walenki have lost their popularity. This type of product was associated with old-fashioned clothes for the grandparents. But situation has changed. Nowadays walenki are very popular among all the people. For the last 2 – 3 years one could have noticed a doubtless trend in clothing industry – Uggs. They were and still are very popular. They are very comfortable, soft and warm. Firstly, due to selective distribution it was hard to find them which created a huge demand for it. But nowadays we can find uggs in every wardrobe of every woman. However, today it’s very hard to find uggs which will be different from other pair. That’s why walenki starts gaining popularity. Today walenki do not look like a long time ago, they are not made just in grey colors. Today walenki are made in different colors, with different pictures, in different designs. Moreover galoshes for them are made not just in black color, they are made in every color you want or they can be transparent. Walenki look very pretty and they bring their owner exclusivity, because this is handmade product and the style and design can be created by the client.

And of course after hard winter frost we witnessed this year all over the world, people want to buy something really warm and water resistant (galoshes).Uggs loose they attractiveness because they are not water resistant and it is not possible to buy galoshes for them because of the form and size of uggs.

Also, there are a lot of Russian people living in Germany, which can be a source of opportunity to create the demand.

5.  Marketing Mix

5.1  Place

Walenki Filz Company will have four stores at the beginning. These stores will be situated in four big cities: Berlin, Munich, Cologne and Hamburg. These cities were chosen because they are among the biggest cities and are known as fashion centers of Germany with a high turnover of tourist who are coming constantly. The stores will be located on the fashionable streets with a big capacity. They will be small butcozy stores with beautiful design.

5.2  Price

The price for walenki will be above the average – about 150 €. Walenki is the exclusive and handmade product. Production of such product is a very hard process. Exclusivity of this product lies in the production cycle. It’s a handmade process with the big labor inputs. The time of production varies from 20 to 24 hours. Also the exclusivity of the product increases from the fact that it will be sold just in four stores. The price will be higher than price for some boots like uggs which are sold in retail chains like Zara or H&M, because Walenki Filz Company won’t be so well-known and won’t have such amount of customers. But the price of walenki will be less than price on Uggs. This will be one of the main price advantage. The price of other products will depend on the material of the products.