Group 11 Members: Bella, Henri, Georgie, Swetha, Alice
Sheng(Alice) Guo
21030185
Unit leader: Kelly Darcy
Enterprise Management Project (FU001703)
Word Count: 2456
I, Guo Sheng, certify that this is an original piece of work, and have acknowledged all sources and citations.
Executive Summary
- This enterprise project report aims to introduce how did Heritage Studio become a brand business. From the prospective of creative director, learning the fundamental stages and elements that made up Heritage Studio, such as company description, branding, target market, product development, marketing and sales, financial report, and viability report. To further support the data and analyze, academic and research models will be used appropriately, in addition to tables, for product line and financial reports.
- As a ceramic company, Heritage Studio is aimed to find solutions for all the defect pottery to have a new life – being re process to Kintsugi Artform. It is also a suggestion of embracing the imperfect, and mental health meditation purpose. Based on the survey research of target market UK’s Gen Z, Gen X consumers, there will also conclusion for how business operation status and profits is, and what could be improved and developed further to continue Heritage Studio’s operation in the market.
Company Description: Heritage Studio
- Heritage Studio is a Kintsugi Pottery Studio that aimed to build a bridge for Gen Z and Millennial consumers who prefer home-made, functional niches and homeware as part of their sustainable lifestyle attitude towards a comfortable environment self-expression, in addition to celebrate the beauty of traditional craft man art form of Kintsugi.
Figure
Brand Colour Story
Our Colour Story focus on natrual and earth tone, as matches to our branding of creating an sustainability and mental meditation atmosphere to the consumer.
Brand Color Book by Henri
Brand Moodboard
- Different from most the Kintsugi studio in the United Kingdom market, Heritage Studio takes a further step in appreciating the originality of the Kintsugi craft method by using the traditional material, Urushi, Tonoko powder, and wheat flour. This leads to a deeper realization in sustainability and eco-friendly approaches.
Brand moodboard by Henri
Market Analysis- PESTEL
Politic Economic Social
- The homeware industry became highly globalized due to increase number of materials availibility around the world (Momin, 2024)
- The National Audit Office claimed that leaving the EU will increase imports/exports declarations to 260 million per year which will cause England to struggle on getting necessary raw materials for many industry, like ceramics. (Cohen, 2019).
- Consumer spending is a major contribution towards the market
- Production cost is currently rasing due to the economic inflation (Momin, 2024).
- The fluctuate exchange rates cause the price of imported materials rasing , like traditional materials for Kintsugi from Japan (Momin, 2024).
- The recent gas surge pushed Europe’s ceramic industry to an economic crisis on both environmental and economical effects(Jewkes, Binnie & Pollina, 2021)
- Must acknowledge the cultural background and historical context of Kintsugi as a Japanese art form (Deng, 2024)
- Research the original inventor(s), date of origin and place of production background information on how Kintsugi became a notable form of art (Deng, 2024)
- Important to participate in cultural appreciation instead of unintentionally partaking in cultural appropriation.
Referring to Appendix 3 PESTEL analysis by Swetha
Market Analysis- PESTEL
Technological
- Online shopping and e-commerce platforms have made products more accessible to consumers (Momin. 2024)
- Green technongy can be technologically used to fire electric kilns rather than using non-renewable energy to fire kilns (specifically gas kilns) (Bloomfield. 2020)
-Rechnological advancements can be used to further ceramics production (Momin, 2024)
Enviromental
- Necessity to create more circularity within the homeware industry
- Important to repurpose unused materials instead of letting them go to waste.
- Minimizing the environmental impact of pottery and kilns (Parvez et al., 2023)
- Clays and glaze that are used for pottery are dug from the Earth and are cannot renewed (Bloomfield, 2020)
- Glazes may include pollutants such as lead and barium (Bloomfield, 2020)
Legal
- Must be transparent about ingredients used to make product
-Avoid the usage of hazardous ingredients in Kintsugi paint, glue, clay etc.
- Ensuring environmental, healthy and safety requirements amongst all employees are met during production and developmental stage (Momin, 2024)
- Keep customers informed about the potential risks and hazards involved with the purchase of the product (Momin. 2024)
Referring to Appendix 3 PESTEL analysis by Swetha
Our Brand Personality...
Vision
We will build an artistic community with a shared love for Kintsugi, passionate about creating a greener world.
USP
Heritage Studio crafts products inspired by the Japanese art of Kintsugi, repurposing pottery waste and emphasising the beauty of individuality.
Values
Mottos
Value Proposition
Our Pottery helps Zelenials who want to buy homewares to slowing their consumption habits and curate a comfortable environment of self-expression.
Education: University educated (Bachelor’s degree or higher)
Target Market
4. Behavioral Segmentation:
Lifestyle : Eco-conscious, minimalist, artistic individuals. Prefer to spend more for something they are passionate about and/or which is a more sustainable alternative. “Shoppers worldwide are willing to pay up to an average of 24 percent more for sustainably produced consumer goods” (Tighe, 2024).
2. Geographic Segmentation:
Region: Urban areas in London, United Kingdom.
Climate: Cloudy and monotonous climate
3. Psychographic Segmentation:
Occasions: Home decor, gifts, personal use, item trays.
Usage Rate: Low to medium, product is not associated with a high usage rate.
Loyalty Status: Brand loyalists who take pride in having discovered & supported a small, local business.
Benefits Sought: Unique designs, product sustainability, support of a small local business. “Seeking brands which promote work-life balance as well as supporting their personal growth” (Perci, 2024)
Appendix 4 Consumer Research Survey by Bella
Values: Sustainability, charity, uniqueness. Seeks individuality and prefers the finer things in life. Intermittent use of social media platforms - most likely found out about the brand through the use of the internet, as “this is how 55% of Gen Z and 34% of millennials and Gen X discover new brands” (Kamal, 2022)
Personality: Creative, thoughtful and socially responsible individual.
Primary Target Market:
Secondary Target Market:
Urban Professionals, Stay at Home Mothers, Gift Shoppers, Charity Supporters.
STP Analysis referring to Santi
Brand Positioning
“Our brand offers unique, sustainable Kintsugi pottery that not only adds unique elegance to your home but also supports charitable causes with every purchase.”
By using this STP analysis, Heritage Studios can effectively understand and target its market, positioning itself uniquely to attract and retain customers while making a positive social impact
12
Key Differentiators:
Sustainability: Use of eco-friendly materials and processes.
Unique Art: Handcrafted, one-of-a-kind pieces that embrace the beauty of imperfection.
Social Impact: Profits donated to charity, making each purchase meaningful.
Taglines:
“Beauty in Imperfection”
STP Analysis referring to Santi
Market Gap
Secondary Research
- The current homeware and ceramics industry are lack of sustainability solutions.
- The end of life of brick kilns are reportedly have very catastrophic effects on the environmental aspect, including soil damage. (Parvez et al., 2023)
- Clays and glaze that are used for pottery are dug from the Earth and are cannot be renewed or regenerated. In addition to difficultuty in mine and unethical mining workplace conditions worldwide. (Parvez et al., 2023)
- Glazes in the ceramis may include pollutants such as lead and barium. (Bloomfield, 2020)
- Most of the charity shops are only accepting ceramics if there are no chips or cracks, therefore, potteries has defect are rarely get to recycled or resell, usully just throw it away.
- After the pandemic, many consumer has gain awareness in appreciation for visual arts and mindful crafts. “Pottery is the perfect tactile pastime for now, say its fans, and a great antidote to the digital world” (Dominic Lutyens, 2021)
Primary Research
- From the East London, there are rarely Kintsugi Pottery shop that could be found in store.
- Kintsugi products from the market currently are mostly using epoxy resin or alternative modern Kintsugi method due to the diffculty of handling Urushi.
Market Gap report by Swetha and Alice(myself)
Consumer Jorney Map
Consumer Jorney Map by Henri
Comparison Board
Comparison Board by Henri
Team roles
16 Organizations
As the creative director of the team, I am mainly responsible for the early research & development, from Kintsugi history background research, making method research, market competitor research, health & safe guide, and product development. Across all of the roles, my duty is mostly at the beginning of the business, in addition to prototype making.
Galbraith’s Star model by Swetha
Product Develop & Management
- During the prototype making process, to further appreciate the tradition Kintsugi, I took a local modern Kintsugi pottery class to learn the method and understanding the difference between the modern Kintsugi and traditional Kintsugi. The studio host told me that the London local pottery studio has abundant the traditional Kintsugi way using urushi (modern way is to use the epoxy resin) because of its special condition requirement. However due to the culture appropriation and sustainability concerns, we decided to continue with the traditional urushi way.
- After deciding to continue with the tradition Kintsugi method, I started to source the materials through online. The Kintsugi kit we finally sourced is rated as the one of the top reputable Kintsugi studio in Japan since this will ensure the safe and quality of our materials to protect consumers, in addition with its traceability and transparency, and authenticity. However, since the Urushi is a 100% natural resource refining from the tree, it required much more time to dry than epoxy resin. So using the knowledge learn from the kintsugi studios and video tutorials, I taught all the group mates to work together through all the making stages.
- In the making stage, we planned to make 30 pieces in total at first and has also used Kintsugi to mend together. However, during the drying process, the strict humidity and temperature requirements caused some of Kintsugi products not fully dried and mended hard together, therefore, we have to give up some of the pieces for safety and health issue.
Making Process
Product Line
Products:
Decorative, pottery/ceramics
Quantity:
23 ceramic pieces and 5 collection
Product Add-Ons:
Specialized cards briefly explaining the cultural/ historical background of Kintsugi, personalized packaging, and QR code which will bring consumer to social medias or link to a Kintsugi tutorial in case of broken pottery
Manufacturing:
Mending broken pottery with Japanese Kintsugi, and reprocess unwanted or defect items into Kintsugi potteies.
Rhine is a collection that all the potteries are being broke and Kintsugi perfectly with one single line, like the River Rhine across the ceramic.
Blanc:
This Collection is inspired by the number of fractures on the surface, with all three cracks evenly distributed like a triangle.
This Collection is inspired by the White Cliffs of Dover, and pieces in the collection are characterised by their many unique fractures and chips.
Blanc is inspired by the large cracks that each one of the potteies in this collection had, referring to the French word Blanc which means White.
Triton: Amazonian:
The Amazonian is a color only collection, with all the potteries are glazed and colored with earth tone.
Dover:
Product Range Plan by Henri
According to the cleaness, uniqueness, and sizes of the products, it is divided into three different product price range, from Good, Better, to Best. In addition, referring to the purchasing power of our target market, we marked the products from 15 - 20, 20 - 25, 25 - 30 pounds.
Marketing and Sales
Campaign Title: ‘Embrace your imperfections: Heritage Studios’ Kintsugi Journey’
- For our marketing strategy it will be mainly target on Instagram since it aligns with our consumer market (Gen Z & Gen X). In additional, we will also be on TikTok, Facebook, and official Gmail account for other consumers.
Cause-Related Marketing Campaign
1:
Launch a cause-related marketing campaign tied to a relevant social or environmental cause, such as mental health awareness, environmental sustainability, or supporting artisans in underserved communities.
2:
Design special edition Kintsugi-inspired products specifically for the campaign, with a portion of proceeds earmarked for the chosen cause.
3:
Partner with nonprofit organizations aligned with the cause to amplify the campaign’s reach and impact through joint advocacy efforts and fundraising initiatives.
By integrating these campaign components, Heritage Studios aim to create a comprehensive and immersive marketing campaign that resonates deeply with their audience, fosters meaningful connections, and reinforces their brand’s commitment to celebrating the beauty of imperfection through Kintsugi-inspired craftsmanship.
The social media account will be aligned with the online store, sending posts and reels relating to the market campaign will lead consumers to make online purchases.
Social Media Marketing
stories and reels posted by Geogie
Instagram
Onsite Marketing
The onsite marketing will be generally focus on the Pop-up Store. Referring to marketing campaign one about relevant social and environmental causes, there will be informational cards on social and environmental approaches of our business to help consumer understand the purpose and leading them to make purchase. In addition, partnership with SKAPED charity will also amplify the campaign’s reach to advocacy efforts and fundraising initiative which could positively affect the business.
AIDA Model by Sheng Guo (mysekf)
- The AIDA Model further showed the process of each detailed marketing stages and how does it affect consumer to make purchase.
Financial Overview
- At the beginning of the pricing strategy, the products are ranged from 7 pounds to 25 pounds maximum. However, the final prediction of selling all the product is taking profit to nearly zero, which leading us to increase the pricing of all the products to gain more profit. After the calculation of total increased product sales, the profit has become nearly double than the expenditure and costs, which could keep the company from running.
- The Cash Flow show the company’s financial position at the end of each month. In April, Heritage Studio starts with a cash of £250.00 and no transactions, and by the end of May, Heritage Studio has made sales and owner contributions, paid out various expenses, turned out of making profit for £462.44.
Reinvestment Plan 100% of the net profits
35% Market expansion
35 % will be spending around the marketing through expanding both online shop and physical stores rather than Pop-up store.
35% Product development
35 % will be spending for the product development & management, such as sourcing more raw materials from Japan, investigate the previous products to find improvements, and developing new product align with the better new quality.
20% Branding, consumer engagement
20 % will be spending on development further on the Branding and consumer engagement through launching new membership program and introduce more advertisement campaigns.
10% website maintenance
10% will be using to maintenance and upgrade the service of brand’s official website.
Viability Report
- This report is aimed to explain all the process and stages of how the brand Heritage Studio being enterprise. From market research, branding, product development, final sales to financial report. In this report, the target marketing is supported with survey results, in addition to use of wide range research models to support the data analyze, such as Business Model Canvas, AIDA, Galbraith’s Star model, etc.
- The target market area focus is mainly focus on the United Kingdom Gen Z and Gen X market, who are interested into mental meditation, and homeware products. Heritage Studio is purposed to recycle all the unwanted or defect ceramic to reprocess into Kintsugi close the circularity lope. The business starts with initial funds of 250 pounds and 60 of self-contribution, with making final 515 pounds sales, and leading to 460 pounds profit, which proved that the entrepreneurship is successful.
- In addition, as the creative director among the Studio, I am responsible for all the product development and product management, such as health & safe guides to protect consumers from potential risks such as raw materials and poor quality.
- However, there could be potential risk behind this business such as different market risk, economy financial risk, and business operation risks, such as supply chain shortage.
- In conclusion, Heritage Studio is a successful enterprise project from its good operation, team collaborate, and decent financial statement.
Reflection
- Group project could cause various uncontrollable circumstances, however. I enjoy a lot working with my team since everyone in the team are flexible, progressive, responsible, and we team worked very well. I am a person who is procrastination, however, my team set up a weekly update document to write down the weekly meeting notes and each one’s task before next week that kept me always on track.
- One of the challenges we faced, is during the raw material choosing. After the material research reported to our mentor Serena, I was being informed that the health & safe guide in the raw urushi could make a difficulty to protect consumer’s safety. Therefore, we abandoned our initial idea on building a Kintsugi kit and support Serena to negotiated with the student law team on the safety & health side to make the pottery idea came true.
- Through all the process I believe a met a wonderful team where everyone is contributing to the project, even there are some problems happened too. I have also developed my creative skills, risk management, and mostly teamwork.
Reference List
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Appendices
BSG Teamwork Learning Agreement
BSc Fashion Management, Year 2
Enterprise Management Project
Unit Leader: Kelly Darcy
Assignment:
� Element 1 – Presenta.on (40%) Individual contribu4on to a team presenta4on (10 minutes)
� Element 2 – Report (60%) Individual Business Por=olio (2500 words)
The Teams are to assist you with achieving:
� LO 1 – The applica4on of a variety of primary and secondary research methods to iden4fy and segment your target market and key compe4tors (enquiry).
� LO 2: Knowledge and applica4on of the underlying concepts and principles of the profitable management of SME (Small Medium Enterprises) within a framework of sustainable prac4ce (knowledge).
� LO 3 – Crea4vity in developing an appropriate e-commerce solu4on to address a specific problem or iden4fied gap in the market (realisa0on).
� LO 4 – The ability to communicate effec4vely via a range of different media within the fashion market and to investors (communica0on).
� LO 5 – A cri4cal and reflec4ve approach to your personal effec4veness as a team member engaged in the planning and execu4on of a collabora4ve SME business (process).
Team members:
I have read the terms of the agreement for the comple4on of this work. As a member of the team I agree to be bound by its terms and condi4ons aXer the Unit Leader Approval.
Appendix 1 - Teamwork Agreement
(Signed by every group member except Yukuo Li, which dropped out from the school in the middle of the EMP project)
Sheng (Alice) Guo Crea4ve Director
Bella Stevens Managing Director
Georgie Bedford Marke4ng Director
Henri Jara Brand & Visual Merchandising Director
Yukuo (Richie) Li Finance Director
San. Mazza Retail Opera4ons Director
Swetha Sutharsan
Unit Leader Approval: Kelly Darcy
CSR & Customer Rela4ons Director
Teamwork Learning Agreement
1. All members will sign the agreement and submit an electronic copy to the Unit Leader by 15th March 2024
2. Teams must be of approx. 5-8 students each and comprised from your assigned Seminar Group. Final Team alloca4ons are assigned by the Unit Leader ensuring a balance of personality dynamics are achieved using psychometric assessments.
3. All team members must abend all group mee4ngs and more importantly all Tutorials with their assigned Tutor. All Tutorial abendance is compulsory and will be monitored, as will the team support progression.
4. Team work requires the scheduling of formal frequent mee4ngs with one member taking on the role of chairperson if necessary. As good prac4ce, individual team members should keep an individual reflec4ve log no4ng reflec4ons on tasks, ac4vi4es, teamwork progress, skills and aetude developments. Students should meet at least once a week. It is however suggested you try to meet more if possible.
This is to assist you on your journey through this unit and through the process of entrepreneurialism. You will receive a mix of discussion & in-group or self-directed ac4vi4es to use within your groups.
The teams are formulated for you to coach each other through the unit and your entrepreneurial journey.
Suggested ways to use your 4me together in your Teams are:
� Coach each other (peer-to-peer coaching)
� Offer a Check-in and Check-out to make sure everyone has spoken
� Honest, open and considerate discussion.
Groups will formulate a set of CommiOed Ground Rules Below the Agreement signatures.
The Team Group sessions will form part of your Forma4ve Assessments:
� FA1 W/C 4 March 2024 - Business Support Groups will work with their Team Mentor who will work with you through the dura4on of the EMP Unit. This first mee4ng will be to prepare your pitch to present your ini4al business idea using the SVV BMC pla=orm.
� FA2 W/C 6 May 2024 – Business Support Groups - with Mentor to check on the product/service & marke4ng/merchandise progress prior to the retail week selling period.
� FA3 W/C 20 May 2024 - Business Support Groups – to create discuss, analyse and reflect on the outcomes of the retail week and prepare their analy4cs data collec4on strategy and discuss the progress of your reports analyse and reflect on their peer-to-peer coaching within the BSGs.
Key Points of the Teamwork Learning Agreement
As a member of the team you must agree to the following criteria for the dura4on of the unit:
A. Abide by terms and condi4ons of enrolment, the UAL Student Charter and Ethics policy;
B. Demonstrate professional behaviour at all 4mes with par4cular emphasis on 4me management and organisa4on; MD’s are to update the Unit Leader with a weekly progress email.
C. Maintain professional and unbiased rela4onships within the team;
D. Adhere to the agreed methods of communica4on;
E. All team members agree to meet 4mescales for allocated work and complete ac4on points agreed at team mee4ngs;
F. All issues such as the alloca4on of tasks, comple4on of assigned ac4vi4es or the mee4ng of deadlines are resolved in a posi4ve and 4mely manner;
G. All members par4cipate in all team ac4vi4es associated with the BSG’s. Failure to abend team mee4ngs without prior agreement is deemed a breach of the team agreement.
Teamwork at UAL / LCF:
There is a teamwork learning agreement that operates with this unit. All students are required to sign the teamwork agreement and submit as an electronic copy to the unit leader by 15th March 2024 aXer your lectures/seminars.
Courses within the Fashion Business School at LCF use teamwork as a method to assess your learning. It is widely recognised that teamwork is an excellent means of developing both individual and group working skills.
It is acknowledged that working in teams can be challenging for a variety of reasons. This may be because the team is comprised of individuals with a variety of talents, experience and backgrounds all developing their own skills such as 4me management and learning to work alongside others.
From the outset it is important to recognise who has different strengths in key areas and how these strengths can be used. A range of tools such as those proposed by Tuckman (1965) and Belbin (1981, 2011), for example, may be used to explore the differing aspects of teamwork. For example who in the team likes to lead; who is good at consolida4ng and edi4ng all of the required wriben materials; who is stronger with numbers; who prefers to undertake the research; who is beber skilled at presen4ng visual materials and who likes to manage the mee4ngs, set the agendas and keep minutes. All members of the team will contribute in their par4cular way bringing different quali4es to the team experience.
� Teamwork skills explored in seminars/workshops as part of the prepara4on for the project/ assignment.
� Use of resources to support teamwork processes, and conflict resolu4on.
References:
Belbin, R. (2011). Management teams: Why they succeed or fail. Human Resource Management Interna1onal Digest, 19(3)
Tuckman, B. W. (1965) Developmental sequence in small groups. Psychological bulle1n, 63(6), 384399
