Case 2006 Sew Sew Sweets RQ How to increase production Founders Annie Kieffer, mother graphic designer Casey LeMere Seamstress and graphic designer Starting capital $150,000 Initial reach 200 km radius from the garage Location Barrie, Ontario neighbors garage Type of sales Direct online Products and price Onesie 50 Cotton 50 polyester Blue, pink, yellow or white Full chest, small upper left chest 12$ tax Blankets Blue, pink, yellow or white $15 tax Target audience Females ages 20 to 60 Online shoppers and participated in social media platforms Facebook, Twitter, Instagram and Pinterest Delivery 4 to 6 weeks Class How to increase production How to minimize the amount of workers How to outsource more stuff More machines to sergers bottleneck effect Questions for the group What takes the longest to produce time breakdowns Risks of breakdown Space Based on space and technical skills Think about the bottlenecks and what are they in this case Space solution Limitations she has (are there alternative ways that she can do) Current state The industry and the market In 2006, Barrie, Ontario had a high percentage (56 ) of households with at least one child under 25, presenting a lucrative market for Annie Kieffer The apparel industry for Canadian made products was not very competitive at the time, providing Annie with an opportunity to exploit In Barrie alone, 21 3 of the population consisted of children aged 0 14, creating a demand for baby apparel Although the Canadian apparel industry had around 2000 companies, starting a small business in a city with a population of 120,000 could still be challenging However, Annie had some marketing experience and an idea and design to help promote her business within the local community In 2006, people were becoming more environmentally conscious Approximately 12 actively purchased eco friendly products, and 47 would choose an eco friendly option when given a choice Due to this trend, the Canadian apparel industry began producing more eco friendly options The baby apparel industry was growing as well, with 29 5 of mothers shopping for baby products every two weeks, ensuring a steady demand for baby clothing brands Although online shopping was still relatively new in 2006, less than 10 of people were shopping online occasionally People were also mindful of their purchases due to environmental concerns The import of baby apparel was increasing, particularly products from China The removal of import quotas had a significant impact on the market by enabling international companies to enter the Canadian market This made it difficult for small and medium sized businesses to compete with large retailers like Walmart Sew Sew Sweets The company was founded in Barrie, Ontario by Annie Kieffer, a self taught seamstress with the background in computer and graphic design She had a partner, her cousin, Casey LeMere, an accomplished seamstress and graphic designer Their goal was to enter the market as a good quality product made in Canada at a lower price than the average in the market They were able to raise CAD$150,000 They reached out to stores in the radius of 200km from their location, to put their product on the shelf However, all the stores required to provide them with their sales data Annie and Casey decided to do direct sales through various internet websites such as Facebook, Ebay, Groupon, and Etsy in order to test the demand and consumer perception of their product Sew Sew Sweet planned to sell two products, onesies, and blankets, both made of 50 cotton and 50 polyester blend in order to provide durability and comfort The onesies were made by them in the home production operated in the garage, and the blanket was purchased from the manufacturer The company is still new and didn't have any sales, apart from the supporting friends and family surrounding the founders The company has some strategic decisions to make in order to optimize their production and elevate their profits The company provides with fresh design ideas, since both founders have backgrounds in graphic design They can create unique apparel in order to maximize their audience Annie Kieffer was also profound in computer skills which will help to create a website and lead e commerce section for the company However, they lack experience in apparel market which can be very specific and strict with requirements There are many areas of the business that founders have very little experience in, such as financial, knowledge of the materials, techniques and other skills in apparel industry 3Problem Definition Identifying Market Gaps and Addressing Needs The entrepreneur discerns gaps or unmet needs within the market In this case, the company focuses on catering to two main segments mothers seeking Canadian baby clothes and individuals aged 20 to 60 who consider them as gifts Nevertheless, it's crucial to recognize that due to the broad target audience, several unaddressed needs persist, especially considering that the online assortment of baby clothes was considerably more limited in 2006 compared to today Quality Concerns One significant challenge arises from the inability of buyers to physically inspect the garments before making a purchase, leading to apprehensions regarding the quality and durability of the materials employed Limited Variety Shoppers may encounter difficulties when attempting to locate their desired style or color, given the limited variety available Competitive Advantage and Market Viability Clarify how your solution will confer a competitive edge in the market, be it through innovation, cost efficiency, exceptional quality, or other distinctive factors Quality Assurance Due to the inability of customers to physically inspect clothing prior to purchase, concerns regarding material quality and durability often arise Consequently, the process of returning or exchanging items bought online tends to be laborious and time consuming, potentially incurring additional costs It's imperative to incorporate this into the operational budget and factor in associated risks Moreover, e commerce logistics and shipping were less streamlined back then, leading to potential issues such as delivery delays and increased shipping expenses Mitigating these risks involves establishing clear return policies Convenience Considerations In an era where mobile shopping apps and mobile friendly websites weren't as prevalent, the convenience of shopping on smartphones and tablets was limited Relying solely on online shopping and pop up events may not suffice to stimulate sales, necessitating further deliberation Online Security In 2006, the establishment of trust in online transactions was less prevalent, leading to potential buyers being hesitant to make online purchases due to worries regarding the security of their personal and financial data These concerns were exacerbated by the limited safeguards against online fraud and identity theft at the time Enhancing Profitability and Ensuring Sustainable Growth When addressing the problem at hand, it is imperative to give due consideration to financial facets such as revenue potential, cost structures, and overall profitability This highlights the significance of formulating a well defined long term vision for the company Sustainable Growth Strategy While they meticulously evaluate each operational process, it is evident that there is a notable gap in our preparations for future expansion This deficiency in long term foresight prompts important questions about how the company will evolve and how it will accommodate our employees as technology advances and our online customer base expands They must ponder whether work will be outsourced, mirroring the practices of larger corporations, or if They will uphold our 'Made in Canada' identity In the event of outsourcing, They must also navigate international affairs, including import and export considerations These challenges not only impact our current profitability but also emphasize the need to contemplate our long term financial sustainability Enhancing Profit Margins To boost profitability, the initial step involves market expansion The pivotal question is whether relying solely on the online market is sufficient for achieving this expansion Beyond expansion planning, it is crucial to develop a post expansion workforce strategy Where will our new hires come from Whether the expansion involves outsourcing or local production for local consumption, they must also address the type of employment strategy that will be required Recommendation R1 She could make a deal with Georgian College for decal printings She needs to explain benefits to college First benefit of the college is employment opportunities for students There was not enough part time employment at the Georgian College in 2006, so if she did her decal printing in the college, she could extend her designs and offer more custom options to her customers In addition to that, the college could make some money and use part of the money for costs and pay salaries for part time student employees It could be a win win situation for both parties R2 She could make another deal with Georgian College about sewing By this way she would have two deals with the college, and it would give her a bargain opportunity on prices Second deal is working with students who study fashion, or something related to sewing at Georgian College It could benefit students who sew blankets onesies and earn income She doesn't have to buy blankets from any other company, and she could have control on products during production, because college is in the same city where she lived R3 She could hire employees who have multifunctional talents to be done multiple tasks instead of one In this case, if there is a decline in business, the small number of employees working with her can be used for other tasks If necessary, it can provide the extra workforce it needs during seasonal peaks by receiving additional support from places such as Georgian College, or housewives who want to work at home Thus, additional obligations such as insurance and taxes for extra employees will be avoided R4 She can make a deal with a diaper company According to this agreement, while the company sells affordable onesies in large quantities, the company can use these products as promotions for new mothers who purchase diapers She may have to reduce her profit per unit of product a little, but since the number of products she will sell will increase, she will have a more profitable year on an annual basis In addition, she will be able to advertise her products thanks to this diaper company The brand will have the chance to increase its recognition R5 In addition to onesies and baby blankets, she may purchase or produce complementary products herself It can add some of the many complementary products to its products, such as baby mouth wipes, baby diapers changing blankets, baby sleeping diapers, baby pillowcases, etc If it produces itself, it will be able to use its brand much more easily and will not be stuck with the minimum production quota if it needs to buy from another company R6 She can cooperate with local companies that produce complementary products such as baby bottles, pacifiers and food containers and sell their brands in a single opportunity package They can best achieve this in retail because their products will need to be collected and packaged in one place Whichever is the most suitable location, the other company can send the products to the company in the appropriate location R7 She can make some agreements with hospitals and sell her products to hospitals as a package which is called newborn baby package Many hospitals give new mothers who are not financially well off the necessary products for their babies as a start She can sell its own products to hospitals in affordable and high quantities and increase its annual sales volume R8 She can have work done by housewives at affordable prices that does not require any electrical energy or a special machine There are many unemployed housewives in the town where she lives, and this opportunity will provide them with additional income For example, she can have work done such as cutting fabrics by them According to the weekly order, she can drop off the fabrics to the relevant location(s) one day a week and pick them up after giving a few days for the cutting process She can save on travel expenses by choosing locations close to her workplace Write a conclusion

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Case 2006 Sew Sew Sweets RQ: How to increase production Founders: Annie Kieffer, mother/graphic designer / Casey LeMere Seamstress and graphic designer Starting capital: $150,000

Case 2006

Sew Sew Sweets

RQ:How to increase production

Founders: Annie Kieffer, mother/graphic designer / Casey LeMere Seamstress and graphic designer

Starting capital: $150,000

Initial reach: 200 km radius from the garage

Location: Barrie, Ontario / neighbors garage

Type of sales: Direct / online

Products and price:

Onesie

50% Cotton / 50% polyester

Blue, pink, yellow or white

Full chest, small upper left chest

12$. + tax

Blankets

Blue, pink, yellow or white $15 + tax

Target audience

Females ages 20 to 60

Online shoppers and participated in social media platforms Facebook, Twitter, Instagram and Pinterest

Delivery: 4 to 6 weeks

Class

How to increase production

How to minimize the amount of workers

How to outsource more stuff

More machines to sergers - bottleneck effect

Questions for the group

- What takes the longest to produce / time breakdowns?

- Risks of breakdown

- Space

- Based on space and technical skills

Think about the bottlenecks and what are they in this case

Space solution

Limitations she has (are there alternative ways that she can do)

Current state:

The industry and the market:

In 2006, Barrie, Ontario had a high percentage (56%) of households with at least one child under 25, presenting a lucrative market for Annie Kieffer. The apparel industry for Canadian-made products was not very competitive at the time, providing Annie with an opportunity to exploit. In Barrie alone, 21.3% of the population consisted of children aged 0-14, creating a demand for baby apparel. Although the Canadian apparel industry had around 2000 companies, starting a small business in a city with a population of 120,000 could still be challenging. However, Annie had some marketing experience and an idea and design to help promote her business within the local community.

In 2006, people were becoming more environmentally conscious. Approximately 12% actively purchased eco-friendly products, and 47% would choose an eco-friendly option when given a choice. Due to this trend, the Canadian apparel industry began producing more eco-friendly options. The baby apparel industry was growing as well, with 29.5% of mothers shopping for baby products every two weeks, ensuring a steady demand for baby clothing brands.

Although online shopping was still relatively new in 2006, less than 10% of people were shopping online occasionally. People were also mindful of their purchases due to environmental concerns. The import of baby apparel was increasing, particularly products from China. The removal of import quotas had a significant impact on the market by enabling international companies to enter the Canadian market. This made it difficult for small and medium-sized businesses to compete with large retailers like Walmart.

Sew Sew Sweets:

The company was founded in Barrie, Ontario by Annie Kieffer, a self-taught seamstress with the background in computer and graphic design. She had a partner, her cousin, Casey LeMere, an accomplished seamstress and graphic designer. Their goal was to enter the market as a good quality product made in Canada at a lower price than the average in the market. They were able to raise CAD$150,000. They reached out to stores in the radius of 200km from their location, to put their product on the shelf. However, all the stores required to provide them with their sales data. Annie and Casey decided to do direct sales through various internet websites such as Facebook, Ebay, Groupon, and Etsy in order to test the demand and consumer perception of their product. Sew Sew Sweet planned to sell two products, onesies, and blankets, both made of 50% cotton and 50% polyester blend in order to provide durability and comfort. The onesies were made by them in the home-production operated in the garage, and the blanket was purchased from the manufacturer.

The company is still new and didn't have any sales, apart from the supporting friends and family surrounding the founders. The company has some strategic decisions to make in order to optimize their production and elevate their profits.

The company provides with fresh design ideas, since both founders have backgrounds in graphic design. They can create unique apparel in order to maximize their audience. Annie Kieffer was also profound in computer skills which will help to create a website and lead e-commerce section for the company. However, they lack experience in apparel market which can be very specific and strict with requirements. There are many areas of the business that founders have very little experience in, such as financial, knowledge of the materials, techniques and other skills in apparel industry.

3Problem Definition:

Identifying Market Gaps and Addressing Needs: The entrepreneur discerns gaps or unmet needs within the market. In this case, the company focuses on catering to two main segments: mothers seeking Canadian baby clothes and individuals aged 20 to 60 who consider them as gifts. Nevertheless, it's crucial to recognize that due to the broad target audience, several unaddressed needs persist, especially considering that the online assortment of baby clothes was considerably more limited in 2006 compared to today.
1. Quality Concerns: One significant challenge arises from the inability of buyers to physically inspect the garments before making a purchase, leading to apprehensions regarding the quality and durability of the materials employed.
2. Limited Variety: Shoppers may encounter difficulties when attempting to locate their desired style or color, given the limited variety available.

Competitive Advantage and Market Viability: Clarify how your solution will confer a competitive edge in the market, be it through innovation, cost-efficiency, exceptional quality, or other distinctive factors.
1. Quality Assurance: Due to the inability of customers to physically inspect clothing prior to purchase, concerns regarding material quality and durability often arise. Consequently, the process of returning or exchanging items bought online tends to be laborious and time-consuming, potentially incurring additional costs. It's imperative to incorporate this into the operational budget and factor in associated risks. Moreover, e-commerce logistics and shipping were less streamlined back then, leading to potential issues such as delivery delays and increased shipping expenses. Mitigating these risks involves establishing clear return policies.
2. Convenience Considerations: In an era where mobile shopping apps and mobile-friendly websites weren't as prevalent, the convenience of shopping on smartphones and tablets was limited. Relying solely on online shopping and pop-up events may not suffice to stimulate sales, necessitating further deliberation.
3. Online Security: In 2006, the establishment of trust in online transactions was less prevalent, leading to potential buyers being hesitant to make online purchases due to worries regarding the security of their personal and financial data. These concerns were exacerbated by the limited safeguards against online fraud and identity theft at the time.

Enhancing Profitability and Ensuring Sustainable Growth: When addressing the problem at hand, it is imperative to give due consideration to financial facets such as revenue potential, cost structures, and overall profitability. This highlights the significance of formulating a well-defined long-term vision for the company.
1. Sustainable Growth Strategy: While they meticulously evaluate each operational process, it is evident that there is a notable gap in our preparations for future expansion. This deficiency in long-term foresight prompts important questions about how the company will evolve and how it will accommodate our employees as technology advances and our online customer base expands. They must ponder whether work will be outsourced, mirroring the practices of larger corporations, or if They will uphold our 'Made in Canada' identity. In the event of outsourcing, They must also navigate international affairs, including import and export considerations. These challenges not only impact our current profitability but also emphasize the need to contemplate our long-term financial sustainability.
2. Enhancing Profit Margins: To boost profitability, the initial step involves market expansion. The pivotal question is whether relying solely on the online market is sufficient for achieving this expansion. Beyond expansion planning, it is crucial to develop a post-expansion workforce strategy. Where will our new hires come from? Whether the expansion involves outsourcing or local production for local consumption, they must also address the type of employment strategy that will be required.

Recommendation

R1: She could make a deal with Georgian College for decal printings. She needs to explain benefits to college. First benefit of the college is employment opportunities for students. There was not enough part-time employment at the Georgian College in 2006, so if she did her decal printing in the college, she could extend her designs and offer more custom options to her customers. In addition to that, the college could make some money and use part of the money for costs and pay salaries for part-time student employees. It could be a win-win situation for both parties.

R2: She could make another deal with Georgian College about sewing. By this way she would have two deals with the college, and it would give her a bargain opportunity on prices. Second deal is working with students who study fashion, or something related to sewing at Georgian College. It could benefit students who sew blankets/onesies and earn income. She doesn't have to buy blankets from any other company, and she could have control on products during production, because college is in the same city where she lived.

R3: She could hire employees who have multifunctional talents to be done multiple tasks instead of one. In this case, if there is a decline in business, the small number of employees working with her can be used for other tasks. If necessary, it can provide the extra workforce it needs during seasonal peaks by receiving additional support from places such as Georgian College, or housewives who want to work at home. Thus, additional obligations such as insurance and taxes for extra employees will be avoided.

R4: She can make a deal with a diaper company. According to this agreement, while the company sells affordable onesies in large quantities, the company can use these products as promotions for new mothers who purchase diapers. She may have to reduce her profit per unit of product a little, but since the number of products she will sell will increase, she will have a more profitable year on an annual basis. In addition, she will be able to advertise her products thanks to this diaper company. The brand will have the chance to increase its recognition.

R5: In addition to onesies and baby blankets, she may purchase or produce complementary products herself. It can add some of the many complementary products to its products, such as baby mouth wipes, baby diapers changing blankets, baby sleeping diapers, baby pillowcases, etc. If it produces itself, it will be able to use its brand much more easily and will not be stuck with the minimum production quota if it needs to buy from another company.

R6: She can cooperate with local companies that produce complementary products such as baby bottles, pacifiers and food containers and sell their brands in a single "opportunity package". They can best achieve this in retail because their products will need to be collected and packaged in one place. Whichever is the most suitable location, the other company can send the products to the company in the appropriate location.

R7: She can make some agreements with hospitals and sell her products to hospitals as a package which is called "newborn baby package". Many hospitals give new mothers who are not financially well off the necessary products for their babies as a start. She can sell its own products to hospitals in affordable and high quantities and increase its annual sales volume.

R8: She can have work done by housewives at affordable prices that does not require any electrical energy or a special machine. There are many unemployed housewives in the town where she lives, and this opportunity will provide them with additional income. For example, she can have work done such as cutting fabrics by them. According to the weekly order, she can drop off the fabrics to the relevant location(s) one day a week and pick them up after giving a few days for the cutting process. She can save on travel expenses by choosing locations close to her workplace.

Write a conclusion