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Business Plan on a boutique shop
Prepared By:
Sayma BasharShompa 071 620 530 Nahid Akhter
071 263 030
Ananya Anindita
062 226 030
Nashita Ahmed
072 130 030
Mahfuza Akhter
071 330 030
Anindita Saha
071 785 030
Sabrina Mohammad
062 592 030
Zuhana Islam Tisha
062 255 030
Maliha Tasnim
091 0221 030
Dated: 24th MARCH, 2010
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Fashionista Address: House -14, Road -5, Dhanmondi, Dhaka-1209 Co-owners: Sayma BasharShompa Nahid Akhter Ananya Anindita Nashita Ahmed Mahfuza Akhter Anindita Saha Sabrina Mohammad Zuhana Islam Tisha Maliha Tasnim 3
Description of Business The business that we are opening is an exclusive saree and jewelry store called ‘FASHIONISTA’. It is going to furnish to the requirements of consumers who are looking for something more than run of the mill. ‘FASHIONISTA’ is going to be a store, which will promote sarees, salwar suits, sandals and silver jewelries. Sarees and salwar suits of different kinds such as cotton, muslin, Kataan, benaroshi, silk and taat will be available. The silver jewelries will mainly be colored and festooned with expensive stones and pearls. There will also be gold plated silver jewelries. The store will have fashion and jewelry designer of their own, who will be crafting the products. It is going to be an elite store. We will be providing customized products. Customers can come, see our catalog and order our products. Or in certain cases, they can even provide their own preferred designs for both the clothing and the jewelries. The business is going to be a Partnership business under the Partnership Act 1932.
Financing Our primary invested amount by the owners is TK. 180,00,000. Each partner will contribute equally TK. 20, 00,000. We cover an opportunity to take 50% of Partners’ investment as loan from the creditors which have a yearly interest rate 10%. To carry on the business this debt will cover the portion of the expenses which we might not finance with our invested amount of money. It consists of office equipment, supplies, stationary items etc. This report is confidential and is the property of the six co-owners listed above. It is intended for the persons to whom it is transmitted and any reproduction or divulgence of any of its contents without the prior written consent of the organization is strictly prohibited
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24th March, 2010 Mr. Mir Simon Haider Faculty, School of Business, North South University Course: MGT368 Subject: Submission of the business plan report. Dear Sir, We are elated to submit the Business Plan report on “Fashionista”. The plan basically focuses on the Entrepreneurial feature of setting up a new mutual business of serving with clothing, sandal and silver jewellery at a sole place. The report attempts to give an in-depth breakdown in terms of the industry, the market, management, financing, different services and products. We thank you for giving us the prospect to investigate vitally the entrepreneurial aspects of establishing our own business that has been expected to become a lucrative business in the country. We are grateful for your valuable advice and kind co-operation. Thanking you, Sincerely,
Sayma BasharShompa ………………………………….
Nahid Akhter
Ananya Anindita
Nashita Ahmed
…………………………………….
Mahfuza Akhter
…………………………………….
Anindita Saha
…………………………………….
Sabrina Mohammad
Zuhana Islam Tisha …………………………………
Maliha Tasnim
…………………………………. …………………………………..
………………………………. ………………………………….
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Acknowledgement
The completion of this business plan has been possible due to the support and assistance of a number of people, and we would like to take this opportunity to thank them for their involvement. Firstly, we would like to thank Allah for giving us the endurance to complete this business plan and for steering us through each and every tribulation. We would like to thank our honorable faculty Mr. Mir Semon Haider for giving us the opportunity to work on this business plan. His hold and leadership have helped us in every step of the way. We show him gratitude for his thoughts and for being accessible for discussion whenever we needed. We would like to thank our parents who have been a constant source of encouragement and inspiration and for providing us with all sorts of physical, mental and monetary help without any complain. We would like to thank our friend and a student in NSU, Sabrina Hasan for her facilitation and designing the project cover. Our friends have been very supportive and encouraging all throughout the course and we help them for their ideas and assistance. Last, but not the least, we would like to thank the personnel at the printing shop in Banani who patiently let us sit in their shop and print over and over again until we were completely satisfied with the result.
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Executive Summery Fashionista is located in Dhanmondi, road no.5, house no.14, Dhaka – 1209. There are plenty of specialized boutique shops around but the one we are opening is going to be quite different from others. As we know, segmentation which is a effective marketing strategy in order to serve particular group of customers, has become very important for every new business. Our main focus is also target marketing through segmentation since it helps to recognize the diversity of customers and their needs as opposed to mass marketing that only emphasizes standardization. We have done a geographic segmentation to decide who our target customers will be and find out the nature of the business environment of that segment in terms of competitiveness. We will mainly target the higher class and the urban people, as our products are mostly customized and exclusively designed to meet the needs of high income group. Our business, Fashionista is targeting girls and women aged between 18 and 60. How will the product enhance their overall lifestyle? When should a product be purchased? At Fashionista, we have different types of products for different occasions. Usage rate divides customers into light, medium and heavy users. It is a useful strategic tool for understanding market growth or decline, business position, potential and direction for operations. We have done a PEST analysis to measure the trends in social factors that affect the demand for a company's products and, show how that company operates. We know what our customers want. Fashionista‟s products are fusions of time gone by and the future to come. Our products consist of, sharees, salwar suits, accessories and sandals that are highly customized to give the highest priority to customer satisfaction and make the business completely customer-oriented,
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Our mission is about Utmost care is taken to ensure maximum customer satisfaction. Customers can also orders us for the products though phone, E-mail, Fax. Target Marketing involves breaking a market into segments and then concentrating the marketing efforts on one or a few key segments. Target marketing can be the key to a small business‟s success. Target marketing provides a focus to all of marketing activities. Therefore, the first step of our marketing plan will be to segment the overall market and identify our target market. Since our shop will be selling sharees, salwar suits,accessories and sandals which are all women‟s products and decisions about buying these are also made mainly by women, our marketing efforts will be targeted towards women. Our products are specialty products, finely designed and crafted by expert designers. As a result, our target customers should have a higher income level to avail these products.
Strengths Offering customized and specialized products: Fashionista offers a myriad of exclusive designs in sharees, accessories and sandals Comfortable shopping environment: The first and foremost objective of any customeroriented business is maximizing customer satisfaction. The shop interior is tastefully and ergonomically designed to make the shopping experience memorable for our customers. Proper branding and positioning: Through proper positioning of the business and well usage of branding strategies, we will create a unique identity of the business that our customers will relate to quickly. Through proper branding and marketing strategies, we will gain top of mind awareness of our customers, which will help our business. Opting for relationship marketing: In today‟s market, it is not enough to appease customers with satisfactory products or services. Fashionista believes in maintaining smooth relationships with customers and our strategy is to engage our customers in long term relationships with our business, so that we can build up a strong, stable and loyal customer base over time. We also have a separate contingency marketing plan which will help us in the future period if our projected promotional tools fail to attract out target customers. Most people are used to buying general products from regular stores, and mostly prefer products with lower prices. Our flexible marketing plan: Our marketing plan is very
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flexible for our target customers to understand and be motivated to purchase our provided facilities. Online marketing: Fashionista is only about to enter the market and has not yet established a strong footing. One of them is online marketing. Limited target market: Fashionista is not like any other super shop that opens up with me-too kind of products and tries to capture a mass market. There are low barriers to entry and new businesses are entering the market all the time.
Marketing Objectives Our marketing objectives are SMART; Any business which is successful in building up a loyal customer base that sticks to the business through all circumstances has high chances of success in the market. Marketing can help in attracting potential customers to the shop. A strong promotional campaign can instantly attract lots of prospective customers towards Fashionista. Positioning is no doubt the single most important aspect of marketing in the globally competitive market place. Companies are improving their products and offering them at competitive prices. Who are our customers and how our product will provide value to them? The pricing strategy that we have set in our marketing strategy is market skimming. Fashionista‟s products are exclusive and very labor intensive. The shop interior is tastefully and ergonomically designed to make the shopping experience memorable for our customers.
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Industry analysis In this part of our business plan we have talked about and specified an overview of the industry sector in which our business will be a part of, including industry trends, major players in the industry, and a summary of our business's place within the industry. Every business operates within the larger classification of an industry. We tried our best in our business plan to address the forces at work in our industry, the basic trends and growth over time and where our company fits in. understanding and anticipating the important factors of our industry builds a case for our business‟s success.
In this section of the business plan will include an overview of the industry sector that our business will be a part of, including industry trends, major players in the industry, and a summary of our business's place within the industry. Porter’s five forces analysis To analyze the industry we have chosen the porters five forces analysis. This is a very effective tool to asses and understands the present business situation of the industry. This is useful, because it helped us to understand both the strength of our current competitive position, and the strength of a position we are looking to move into. With a clear understanding of where power lies, we can take fair advantage of a situation of strength, improve a situation of weakness, and avoid taking wrong steps. This makes it an important part our planning toolkit.
The tool is used to identify whether new products, services or businesses have the potential to be profitable. However it can be very illuminating when used to understand the balance of power in other situations too. In Porters Five Forces Analysis there are five important forces that determine competitive power in a situation.
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Figure: Porter’s five forces analysis
Bargaining power of the Supplier :
We evaluated how the suppliers bargain and to force on the prices. This is driven by the number of suppliers of each key input, the uniqueness of their product or service, their strength and control over us, the cost of switching from one to another, and so on. The fewer the supplier choices we have, and the more we need suppliers' help, the more powerful our suppliers are.
Bargaining power of the Buyer :
Here we ask ourselves how easy it is for buyers to drive prices down. Again, this is driven by the number of buyers, the importance of each individual buyer to our business, the cost to them of
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switching from our products and services to those of someone else, and so on. If we deal with few, powerful buyers, they are often able to dictate terms to us.
Competitive Rivalry with in the industry:
What is important here is the number and capability of our competitors – if we have many competitors, and they offer equally attractive products and services, then we are most likely have little power in the situation. If suppliers and buyers don‟t get a good deal from us, they‟ll go elsewhere. On the other hand, if no one else can do what we do, then you can often have tremendous strength.
Threats of Substitute product:
This is affected by the ability of our customers to find a different way of doing what we do. If substitution is easy and viable, then this weakens our power.
Threats of New Entrants:
Power is also affected by the ability of people to enter our market. If it costs little in time or money to enter our market and compete effectively, if there are few economies of scale in place, or if we have little protection for our key technologies, then new competitors can quickly enter our market and weaken our position. If we have strong and durable barriers to entry, then we can preserve a favorable position and take fair advantage of it.
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Future outlook and trends Now days, the trends of people in our country are to have traditional taste and traditional look. They are becoming more concern about the culture of this country. People are now more prefer both ethnic Bangladeshi sarees and Indian georgette, crepe of chiffon. Earlier brides used to wear georgette sarees, now the trend of wearing benaroshi and kataan have emerged again. Women prefer buying heavy muslin sarees with various kinds of ornamentation along with gorgeous decorated georgette. Along with those, the demand for silver jewelry has again risen. Even 10 years back, people were crazy about gold jewelry, now the focus has shifted from gold to silver and women around the country prefer wearing silver, because of several reasons: mainly, they are prettier, more sophisticated and cheaper. In the near future, we believe this trend will definitely rise and continue further. As Bengalis around the world are on a mission to start art of jewelry making, the demands for shops like our ‘Fasionista’ is definitely going to increase.
Analysis of competitors. Below we have mentioned the product wise competitors for our own products .
Product Name
Competitor’s Name
Jewelries
Deshal Gams gallary Banglar Mela Shoppers World Chandni Chawk Aarong Jatra Mantra
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Priyo
Saree:
Jamdani
Hawkers Market Narayanganj Jamdani shops. Mirpur benaroshi polli
Benaroshi
Sopura Silk
Kataan
Aarong
Muslin
Deshal Nogordola
Taat Aarong Silk Cotton
Jatra Banglar Mela Kay Kraft OG Anjans Shoppers World Rupahali Rangoli Mantra Noborupa and various other shopping malls and fashion houses in the country
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Ladies Shoes
Aarong Rakhi Miss Bata Apex
Market Segmentation
Market segmentation is a very important factor for every new business. Market segmentation is the identification of portions of the market that are different from one another. It is the process of dividing a market info definable and measurable group for purposes of targeting marketing strategy. Segmentation allows the firm to better satisfy the needs of its potential customers. We will do the target marketing instead of mass as target marketing on the other hand recognizes the diversity of customers and does not is to identify different market segments and their needs. In this part we will focus on specific market, which will be our
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customers, business environment of that market segment, and the geographic area where our business will compete. This part is significantly important for preparing our marketing plan. We will segment our market based on the variables: geographic, demographic, psycho graphic and behavioral segmentation.
Geographic segmentation Geographic segmentation is based on variables such as region, climate, population density, and population growth rate. We will mainly target the higher class and the urban people, as our products are mostly customized and exclusively designed products. We are launching our shop in Dhanmondi in Dhaka city. So upper class people are our main target and concern.
Demographic segmentation Demographics originate from the word „demography‟ which means a „study of population‟. The population can be divided into age, gender, income, and family lifecycle amongst other variables. Age: Depending on the age the people‟s perceptions also changes. Our business, Fashionista is targeting towards girls and women from the age of 18 to 60. Gender segmentation is commonly used within the cosmetics, clothing and magazine industry.
Gender: Fashionista is related to ornamentation, clothing and shoes it is intended for females of the country. Very few customers‟ can be male who wants to buy those as gifts for their wives, friends or relatives.
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Income: Fashionista‟s customers are of the group whose income level is of Tk.50,000 or more per month. That is because our products are customized and therefore expensive.
Life style: Who leads very high standard lifestyle our products are designed for them.
Educational Background: Major customers of Fashionista will have good educational background.
Psycho graphic segmentation Psycho graphic segmentation is the division of a market into groups on the basis of their attitudes, beliefs, opinions, personalities and lifestyles. Our customers are ready to pay a high price because they believe that they want nothing but the best for themselves. Our customers have similar attitudes towards life, fashion and trends. Our customers will be ladies who are not willing to spend whatever it takes to buy a custom-made saree, salwar suits, shoes or ornaments.
Behavioral segmentation Behavioral segmentation can be broken down into the benefit a consumer seeks from purchasing a product. How will the product enhance their overall lifestyle? Occasion is another variable. When should a product be purchased? Behavioral segmentation mainly refers to why people purchase a product or a service. Usage rate divides customers into light, medium and heavy users. Heavy users obviously
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contribute more to turnover then light or medium users, the objective of an organization should be to attract heavy users who will make a greater contribution to company sales. We believe that most of our customers will be medium users, who will often shop at our place, whenever they feel like buying something exclusive.
Industry forecasts If we want to survive in this changing business world, we should do some kind of industry forecasts to know what is going to come up in the near future, as the world is now becoming more challenging and more competitive. If we can predict a bit of what is going to happen in the industry, then we can keep ourselves updated with new ideas and come up with more and more new strategies to remain one of the top businesses in our field of business. To do the industry forecasts, we are relying on an analysis called PEST analysis. Below we are going to explain how to use the tool to analyze the industry. To start a new venture it is very much important to analysis the environment in a proper way to identify the changes occurring on a national and international level, how much impact they have in our new venture. For our new venture” Fashionista”, we have gone through the Environmental analysis to assess the external uncontrollable variables that may have impact on our business plan.
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Pest analysis is the combination of “Political, Economic, Social and Technological” factors. It is used to describe a framework for the analysis of these macro environmental factors. It gives a certain overview of different macro environmental factors that a company should consider in case of taking decision. PEST analysis is an important strategic tool for understanding market situation, growth, business position, potentiality and direction for operation. It is also helpful prior to completing SWOT analysis.
Figure: Pest Analysis Model
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The factors of Pest Analysis as mentioned above are discussed below: Political Analysis Political factors include government regulations and legal issues and define both formal and informal rules under which a company must operate like tax policy, employment law, environmental regulations, trade restrictions, political stability etc. It basically shows how and to what degree a government intervenes in the economy. Moreover, it may also include good and services which government wants to provide and those they don‟t want to provide like demerit goods.
Economic Analysis Economic factors include economic growth, exchange rates, inflation rates, interest rates and others. These factors affect the purchasing power of potential customers and the firm‟s cost of capital. Each and every firm must consider these factors before starting a business. GNP and GDP are the scales to measure economic growth. Disposable income is also one of the facts which should be considered. We are targeting towards people who have a high amount of disposable income so that they can spend it on luxury items such as the products offered at “Fashionista”.
Social Analysis Social factors include demographic and cultural aspects of the external macro environment. Trends in social factors affect the demand for a company‟s product and how that company operates. We have analyzed the demographic and lifestyle analysis of target market. We are also concern of our customer needs and wants. If we look into the
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cultural aspect then we can say that “Fashionista” will certainly have high demand in the market regarding the nature and quality of our products.
Technological Analysis Technological factors include ecological and environmental aspect such as technology incentives, R&D activity, automation, rate of technological change and others. It may lower barriers to entry, reduce minimum efficient production levels and influence outsourcing decisions. Additionally, technological shifts can affect cost, quality and lead to innovation. Though technology is not directly connected to our products, but still, we want to let our customers know about our planning of technological usage in manufacturing process of the products.
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Description of Venture: Fashionista is an exclusive lifestyle based mini mart that concentrates in creating silver ornaments and fashionable saris in indigenous Bangladesh handloom fabrics and ladies shoes by using the native raw materials. It is a partnership business with nine co-owners. The positioning of Fashionista will be very distinct. We want to project Fashionsta as a greatly exclusive high-end retail shop that specializes in using authentic Bangladeshi traditional handloom saris and silver jewelry as well as stylish ladies shoes, only with a modern twist that is completely our own. We want customers to think of our products as „one-piece‟ and very exclusive, something that is not acceptable by the masses. The products should give off a feeling of uniqueness and contemporary art, blended with ageless traditions. Fashionista‟s products are fusions of time gone by and the future to come.
Mission To revive Bangladeshi ethnic handloom and craft in contemporary fashion. To bring about innovative changes in the age old designs of traditional silver jewelries. To maintain high quality in each and every product we offer and to ensure optimum level of quality maintenance To give the highest priority to customer satisfaction and make the business completely customer-oriented. To be in touch with the latest fashion trends in the market and set benchmarks in the fashion industry.
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Vision In three years Fashionista will be established in Dhaka city and the expansion plan will be developed to expand in other parts of the city to meet the growing demand for authentic Bangladeshi tradition in Sharees, salwar suits, jewelries and shoes.
Products: Fashionista sells exclusive silver jewelry in modern and contemporary designs that are created exclusively by our in-house designers who are trained and experienced in this arena. We sell readymade as well as customized saris and ornaments. Further more we also sell stylish shoes. We devide our products in three categories, these are: 1. Silver Jewelry 2. Sharees 3. Shoe 4. Salwar suits
Silver Jewelry Our silver ornaments come in pure silver, mixed with precious and semi-precious stones and as well as gold-plated. The designs are all very contemporary and trendy. We have employed specialized designers who have degrees in jewelry designing and understand the tastes and preferences of the customers.
Ear rings
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Bangles
Necklaces
Rings
Head ornaments (Tikli, Jhapta, Tayra, Crown)
Baala
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Sharees All the sharees we sell are made by our own specialized workers in different places. For example: Our jamdani Sharees are made by the handloom workers of Rupganj who are specialized in Jamdani Sharees. Jorjette
Mirpuri Katan
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Benarashi
Tangail Taat Moslin
Rajshahi Silk
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Shoes We sell three types shoes in various unique designs which attract the customers in a great deal. All of our shoes are made of country raw materials. High Pencil Hill shoes
Medium Pencil hill Shoes
Flat sandals
Our products come in their own packaging with our name and logo on it. Utmost care is taken to ensure maximum customer satisfaction. Strict quality control methods are maintained to ensure that there are no glitches in any of the products.
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Size of Business
We first start our business in a posh area because it can easily attract our target customers. We chose Dhanmondi road 5 to launch our first outlet because it is a posh neighborhood and there is no well-known boutique house in this area. For this we have rented a floor for six months advance. The rental charge for every month is Tk.50,000. The place is 3,000 square ft and we can change the style of the floor easily for decorating the shop. We hope to expand our business in other areas of Dhaka city after establishing a strong foothold in the market. .
Office Equipment and Personnel To start the venture we need to furnish the floor with proper electrical equipments and other furnitures for the customers to shop in a better environment. We will install 4 Split Air Conditioners, proper lighting, install glass showcases to display the jewelries and have shelves for sarees. We also set up a particular place to put in an appearance the shoes. We plan to install mirrors all over the shop. Along with these, we need cash counters, cash register, credit card machine, 2 computers to store data about the different transactions and comfortable seating arrangements for the customers. Besides the nine partners, we will have 50 employees for different jobs. Their designations are listed below.
Employee position
Number of Employees
Outfit and jewelry designers
5
Security guard
3
Cashier
3
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Administration
2
Sales people
12
Craftsmen
20
Logistic people
5
Production Plan Manufacturing Process
In this step we will describe how we collect our raw materials and use them for our final product. Most of our raw materials are collected from our country, sometimes we depend on import of raw materials. Our logistic department supervises this factor. After collecting the raw materials we distribute these to our production department. For example: the raw materials of Jamdani Sharees are send to Rupgonj where the specialized workers make the Jamdani sharees according to specific designs given by the designers of Dazzle. Then they craft the share which is the final product and send these to our show room.
Collection Of Outlet raw materials
Production Department
Production Place
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Physical Plant
Locations & Facilities Fashionista is located in 5, DHANMONDI, DHAKA – 1209. We have air conditioning and sufficient ambience and lighting. We are also employing proficient salespeople. Our organization has taken every step possible to optimize the satisfaction of our customers. The shop interior is tastefully and ergonomically designed to make the shopping experience memorable for our customers. The shop is spacious and the counters are well accessible. The temperature in the shopping area will be well maintained so that the atmosphere remains pleasant all year old, even on very hot as well as chilling days. Moreover we have separate counters for each of our products that will keep the shopping area free from clutter and chaos. In addition, there is a washroom, a changing room as well as a spacious parking lot.
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Names of Suppliers of raw materials Products Suppliers Products Name
Suppliers Name
Sharees and salwar suits Jamdani Palli Tangail Sharees Benarosi Palli Old Dhaka‟s Katan Sharee Our designers & makers Jewelry FusionJewels.Com Venus International Goina Ghor Chandni Chowk Our designers and makers Ladies Shoes and Sandals
Arbitrary Miss Hush puppies
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Operational Process In the operational plan we will describe the chronological steps in completing our business transaction. As we are in manufacturing or reformation business and retail and service based business we will be buying our product and raw materials from our suppliers within and outside of the country. We will store that and will display for sales to the customers. Besides we will have share,salwar suit, jewellary makers and designers to customize the product. They will be provided with proper training and instructions to handle the customers and other things. We will maintain an inventory level but it will be very low as our business products are very changing with the trends. Customers can also orders us for the products though phone, E-mail, Fax.
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MARKETING PLAN Price The pricing strategy that we have set in our marketing strategy is market skimming. Our products are very exclusive. Each and every product requires hours of dedicated labor and intense concentration .The designs of our products are very unique therefore we have to employ skilled craftsmen to create the products as well as expert designers to come up with new design which will be attractive to our customers. Our shop premise is also located in a posh area where the rent of buildings is quite high. We have air conditioning and sufficient ambience and lighting. We are also employing professional salespeople.
All these add up the operational and tactical costs of the business. To cover up the significant amount of costs that will be incurred each month, we need to charge high prices. Moreover, since the positioning of our organization is also very sophisticated and posh, we need to charge premium prices to link with the positioning. So the prices of our products will be a bit higher than those in regular shops.
The price of each product cannot be specified at this point in time, because each product is different in quality and requires different types of cloths, designs and labor hours. Therefore the price of the products will be based on these variables.
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Distribution Our shop premise is also located in a posh area where the rent of buildings is quite high. We chose Dhanmondi road 5 to launch our first outlet because it is a posh neighborhood and there is no well-known boutique house in this area. We have air conditioning and sufficient ambience and lighting. We are also employing proficient salespeople. Our organization has taken every step possible to optimize the satisfaction of our customers. The shop interior is tastefully and ergonomically designed to make the shopping experience memorable for our customers. The shop is spacious and the counters are well accessible. The temperature in the shopping area will be well maintained so that the atmosphere remains pleasant all year old, even on very hot as well as chilling days. Moreover we have separate counters for each of our products that will keep the shopping area free from clutter and chaos. In addition, there is a washroom, a changing room as well as a spacious parking lot.
Promotion Promotion means to launce our products to the targeted customers. Among the all the components of the marketing mix, we have concentrated most on the promotion aspect. Fashionista is a completely new venture in the market and is yet to make a statement among the target consumers. Therefore we will be following immense promotional strategies that will attract our target consumers and increase the brand recognition of our fashion house.
We plan to launch our promotional campaigns tow to three week before the opening of our fashion house and this campaign will continue for the first one year, after which we will design new advertisements.
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Advertisement: We will advertise in lifestyle magazines like ICE Today, Purple, Canvas, Mirror magazine and in newspaper supplements like Star Lifestyle. We have designed some print ads that have been provided along with this project.
Billboards: We will also advertise in billboards which will be set up in major areas around the city like Dhanmondi, Banani, Gulshan, and Shantinager & Uttara.
Brochures & leaflets: We have also designed brochures and leaflets that will be distributed in various organizations around the city like beauty parlors, women‟s gyms, ladies‟ clubs, etc.
Promotional campaign: we will also done some promotional campaign like we will distribute our products to Almas, Priyo, Vasavi to see our product which will benefit our customers to know about our store.
Website: we have also our own website where our customers can have all the information about our fashion house. This will create a positive attitude among the customers so that they can visit our fashion house through our website.
In addition, we plan to get reviews from various magazines and newspaper supplements that will prove to be free publicity for us and act in spreading the word about our fashion house in various social circles.
Our marketing plan will be strictly monitored and the progress of achieving the pre-set objectives will be carefully followed. If any lapses are found in the marketing strategies,
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immediate action will be taken to remedy the situation. We believe in continuous improvement and will keep working towards better and more improved aspects in every circumstance.
Product Forecast
Forecasting product is inherently more difficult than the construction of the subsequent sales budget. Although management exerts some degree of control over expenditures, it has little ability to direct the buying habits of individuals. The level of sales depends of the vagaries of the marketplace. Nonetheless, a sales forecast must attain a reasonable degree of reliability to be useful.
Fundamentally, product forecasters follow steps similar to these in developing a forecast of sales potential:
We should determine the purposes for using the forecasts.
Dividing the company's products into homogeneous groups.
We have to determine those factors affecting the sales of each product group and their relative importance.
Gather all necessary needs of our customers about their needs.
Product forecast is very important for any kind of organization. For this, we have to have the proper amount of information about the targeted customer about them really looking
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for and make them satisfied by giving them the right product at the right time.
Market segmentation For a fashion house, market segmentation is very crucial. For a new venture, we have to very much careful when we segment our customers.
Housewives: at first, we will target the housewives who can fulfill their needs and also can come over alone because we are ready to serve our customers proudly.\
Working women: as we are focusing on women only, we have a target to catch the women who are very concern about their style. Working women are one of them.
Students: now a day‟s students are getting very conscious about their look because the international culture is influencing our country to be more concern. We are also targeting the students who can have the best style carrying by our fashion house.
Brides: brides are our most important customers of all the segmentation. In our fashion house, brides can get the proper outfit under one roof. They can have the matching of all the products which are also reasonable to buy from us than any other fashion houses.
We are ready to server any type of customers with any kind of category people. We are very much reasonable and any type of women is welcome to our house.
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Organizational plan
‘Fashionista’ is based on a partnership business under the Partnership Act 1932 and our main office and showroom is at Dhanmondi. There are nine partners and together they provide Tk 18,000,000. They will take loan 50% of the total investment from bank. On the basis of partnership agreement there are nine co-owners who are equally liable for the business. The nine co-owners of ‘Fashionista’ are:
Zuhana Islam Tisha Maliha Tasnim Sayma Bashar Nahid Akhter Ananya Anindita Nashita Ahmed Mahfuza Akhter Anindita Saha Sabrina Mohammad
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The partners of ‘Fashionista’ are highly committed to each other and are determined to share equal rights in operating the business because we provide same amount of investment in this business. They are also equally liable to our creditors and debtors. Thus they will realize equal profits and loss through the year end operation of business. They all are equally the owner of the company so there is no majority or minority of partnership. If any disability is realized about the partnership business that will be treated with partnership act.
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The Organizational structure of Fashionista is shown in the flowchart:
‘Fashionista’ is a partnership business where partners will follow a line of authority depicted in the above chart where Chief Executive Officer is the top most position holder in the business and is responsible for controlling the activities of the five directors of the business who are also the partners of the business along with the expertise of three team managers in three different sections. This provides a clear understanding to the others about who controls the organization and how each member interact in performing their management function.
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Authority of principal is controlled by the CEO and there are five different functional directors who are also equal partners like CEO who work in five different departments like human resource, marketing and sales, finance, procurement and feedback and research and development departments. There are also team managers consisting three business partners for controlling the three main sections of ‘Fashionista’ like jewelry, saree and shoe sections.
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Roles and Responsibilities in Fashionista Planning: i.
Designing the strategic plan, and implement the strategic plan for their company in the most cost effective and time efficient manner.
ii.
Developing the strategic plan, and
iii.
Implementing the strategic plan for the business in the most cost. Effective and time efficient.
iv.
Developing business plans for the long term future of the organization.
v.
Oversee marketing, long-range planning, public and city relations.
Managing activities: vi.
The Managing director is responsible for both the day-to-day running of the business.
vii.
Oversee and maintain day-to-day administrative operations.
viii.
Create, develop and implement comprehensive funding program
ix.
Supervise full-time and part-time staff members.
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Roles and Responsibilities Sales Management: i.
Directing the effort of sales professionals by assigning territories, establishing goals,
ii.
Developing training programs, and supervising local sales managers and their personnel.
Advertising Management: To oversee the activities of account services, creative services, and media services.
Promotional Management: i.
Directing promotional programs
ii.
Combining advertising with purchase incentives.
iii.
Increasing the sales of the firm’s goods and services .
Public Relations Management: i.
Responsible for communicating with the firm’s various publics
ii.
conducting policy programs
iii.
Supervising the specialists who implement the programs.
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Roles & Responsibilities in Fashionista: Financial tasks: i.
Preparing Financial reports at the end of the year
ii.
Doing the ratio analysis and assess the financial condition
iii.
Extending credit to customers
iv.
Evaluating proposed large expenditures
v.
Raising money to fund the organization’s operation
Financial analyst: i.
Preparing the financial plans and budget
ii.
Monitoring and controlling the budget
iii.
Managing the cash flows, sometimes even in different currencies
iv.
Assessing all kind of risks against the organization
v.
Forecasting
and
comparing
the
future
trends
beforehand
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Cost allocations:
i.
Structure the accounts by understanding the power of the chart of accounts
ii.
Projecting the cost centers
iii.
Identifying and managing both direct & indirect costs
Monitor & Control the Cashier: i.
Monitoring and controlling the casher through taking monthly report of all transactions.
ii.
Having internal control through using common sense precautions.
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Roles & Responsibilities in Fashionista: Leads and manages the Procurement and Support Services: i.
Discusses with staff the challenging situations, bottlenecks and complex individual cases, proposes approaches and proposes solutions to problems, usually in close co-operation with the section heads;
ii.
Briefs and guides staff on proposed concepts, internal control procedures, policies and approaches;
iii.
Is responsible for the overall planning, development, management, coordination and delivery of the activities i.e. logistics
and
procurement,
inventory
and
property
management, buildings management, travel, and mail; iv.
Supervises the draft and implementation of administrative directives and working instructions;
v.
Oversees the preparation of job descriptions and vacancy notices for posts and interviews potential candidates.
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Oversees and monitors the work of Support Services: i.
Oversees and monitors travel-related activities including the issuance and certification of travel authorizations and invoices;
ii.
Transportation is efficiently provided to the organization in a cost effective manner;
iii.
Office supplies are provided to the whole organization.
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Roles & Responsibilities in Fashionista:
Lead the organization to a new & better direction: Reporting to the managing director she will be tasked with promotional activities.
Full day to day store operations management including managing Budget including sales, wages, shrinkage & expenses.
Motivation, training & leadership of a team of store sales executives.
In line with international brand standards provide effective Visual store layout &merchandise. Oversee the customer service levels in store ensuring a truly amazing customer experience. Stock management, control and verification from Head Office.
Leading VIP events and promotional activities.
Analyzing the competitors & plan flexible strategies.
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Roles & Responsibilities in Fashionista: Hiring, motivating, training and scheduling store team. Maintaining store appearance. Effectively merchandising product.
Managing profitable levels of inventor.
Creating weekly status reports for the management team.
Adhering and implementing company policies and procedures.
Communicate effectively.
Demonstrating advanced leadership skills.
Setting and achieving yearly personal and store goals.
Willingness to work 45+ hours per week.
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Roles & Responsibilities in Fashionista:
Profound foot wear experience and proven track record of meeting and exceeding goals.
Proven retail management responsibility working with budgets
Great joy meeting, interacting and serving with customers.
Exceptional dependability and flexibility with scheduled work shifts.
Strong computer experience with Excel, Word, and Outlook.
Exceptional hands-on knowledge of marketing strategy and leads generation, and sales techniques.
In-depth ability to recruit, train, motivates and retain talent.
Uncommon energy, enthusiasm and motivated demeanour.
Remarkable ability to use problem solving skills on a daily basis to achieve results.
Proven effective communication skills with all levels of store employees and management.
and sales goals.
tactics, referral
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Roles and Responsibilities in Clothing Section: Profound clothing experience and proven track record of meeting and exceeding goals. She will find out and will realize the current need and demand of the customer. She will feel great joy meeting, interacting and serving with customers.
She will have exceptional dependability and flexibility with scheduled work shifts.
She will do research on the current market and finding out the best quality clothing.
Exceptional hands-on knowledge of marketing strategy and tactics, referral leads generation, and sales techniques.
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In-depth ability to recruit, train, motivates and retains talent to carry on her job with excellency.
Uncommon energy, enthusiasm and motivated demeanour.
She will have to use problem solving skills on a daily basis to achieve results.
She should make communication with all levels of store employees of her section and report to the CEO if any problem occurs.
According to serve the customer she will have a clear understanding on clothing section.
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Assessment of Risk Assessment of risk identifies potential hazards, shortcomings and threats of the competitive environment for a new business and respective strategies to meet business plan goals and objectives. Evaluation of weaknesses of Business: Huge business capital: Fashionista is starting with a huge capital investment. As we aim to target aristocratic and posh audience we need to assure best quality of product with sophisticated ambiance in the showroom, rich decoration, trained sales personnel and technically enriched designers and craftsmen. To manage all of the above factors, a high start up cost will be incurred. In the initial year of operation when business is still to start rolling, we will be incurring a huge cost in advance. Location and space limitation: we will start Fashionista at Dhanmondi, road no. 5, house no.14, in a single floor. So it is more obvious customers from nearby area will be visiting more, from areas like elephant road, Dhanmondi, Mohammadpur, KolaBagan, Lalmatia, Jhigatola, Azimpur, etc. so there is a thin possibility that customers from posh areas like Banani, Gulshan, DOHS, Uttara,etc, are very less likely to visit. Freshers in marketing management: All of us in Fashionista are fresher‟s in business. This is our first business venture. So our marketing and management skills have to be organized, tactical and interesting to draw customer attention and continue a profitable business.
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Evaluation of Business of Threats Competitaos reaction: as we will enter the martket with a big bang and will work in synergy to achieve a greater portion of the market share means our competitors are surely going to react on that. They will again put in their best to recapture the market. So we need to be cautious and be ready to face all potential consequences. New entrants: this business sector has a very low barrier to entry, so any entrepreneur with sound capital investment can enter in this attractive market. Thus they could subsequently penetrate some of fashion fiesta‟s market share. New Advances in technology: as we are not into manufacturing equipment or any computer science related firm, advances in technology is not a prominent threat. Yet we need some help of technology for a nearly flawless and convenient management to ensure better service to our customers. So we will just need to upgrade our technical usage as necessary.
Contingency plan: Contingency plans can be described as – “if this plan grows wrong what do we do next”. The risks which were potential if becomes reality then what strategies are to be employed to minimize, respond or prevent those risk. First of all we will always have to maintain the best quality of product we offer and the service we will give to be the market challenger and hopefully later the market pioneer with our hard work. If good quality product and service is maintained all through, we can minimize threats. Secondly we will offer a line of products – clothing, accessories and sandals in the main category. So if we figure out any product is less popular and hardly profitable we could stop selling those and innovate better
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ideas for the popular products. Also, we will seek feedback from our valued customers time to time to find out our lacking and ensure a better management. So, our contingency plans assure back up and some ways to prevent threat, thus securing our investments.
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Financial Plan
PRO FORMA INCOME STATEMENT (for three years)
year 1 (in TK) Sales Revenue Total Revenue (Net) Less: Cost of goods sold Gross Profit Less: Operating Expenses: Salaries Expenses Rent Utilities Expenses Advertising Expenses Supplies Expenses Sales expense Depreciation expense Miscellaneous Expenses Total Operating Expenses Earning before Interest & Tax Less: Interest Expense (10% of LTD) Less:Tax (@10%) Net Profit After Tax
Year 2 (in TK)
Year 3 (in TK)
% of sales
10000000 10000000 -5000000 5000000
15000000 15000000 -7500000 7500000
20000000 20000000 -10000000 10000000
650000 720000 300000 1700000 120000 200000 240000 60000
975000 720000 450000 2700000 180000 300000 240000 90000
1300000 720000 600000 3200000 240000 400000 240000 120000
6.50% 3.60% 3% 16% 1.20% 2% 1.20% 0.60%
-3990000
-5655000
-6820000
34.10%
1010000 -900000 -101000 9000
1845000 -900000 -184500 760500
3180000 -900000 -318000 1962000
15.90%
100% 50%
9.81%
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CASH FLOW PROJECTIONS (for three years)
YEAR 1
YEAR 2
Add: Depreciation Expenses Less: Increase in Accounts Receivables Less: Increase in Inventories Less: Increase in Supplies Less: Decrease of Account Payable Add: Increase in Accounts Payable
9000 240000 -1280000 -4023000 -2606000 0 720000
760500 1962000 240000 240000 -180000 -70000 -260000 -837000 -94000 -504000 -337500 0 0 714500
Cash Flow from operating activities
-6940000
129000 1505500
Cash Flow from investing activities: Purchase of Assets
4460000
Cash Flows from operating activities: Net income
YEAR 3
0
0
Cash Flow from Financing activities:
Net Cash flow from financing activities
3000000 3000000 3000000 -3900000 3900000 3900000 -900000 -900000 -900000
Net changes in cash flow
12300000
Borrowed a long- term loan Pay out the long- term loan
-771000
605500
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PRO FORMA BALANCE SHEET (for three years) YEAR 1(in Tk)
Assets Current Assets: Cash Accounts Receivable Inventories Supplies Total Current Assets Fixed Assets: Personal Computers Less: Accumulated Dep. Air conditioner Less: Accumulated Dep. Vehicle Less: Accumulated Dep. Equipment Less: Accumulated Dep.
Furnitures Less: Accumulated Dep
Total Fixed Assets Total Assets
YEAR 2(in Tk)
Year 3(in Tk)
6600000 1280000 4023000 2606000
6480000 1460000 4283000 2700000
6840000 1530000 5120000 3204000
14509000
14923000
16694000
345000 -60000 520000 -60000 2400000 -60000 540000 -30000
345000 -60000 520000 -60000 2400000 -60000 540000 -30000
420000 -60000 520000 -60000 2400000 -60000 630000 -30000
655000 -30000
655000 -30000
655000 -30000
4220000 18729000
4220000 19143000
4365000 21059000
Liabilities & Capital Current Liability: Accounts Payable Owner’s Equity: Capital Retained Earning Total owner’s equity
720000
382500
1097000
18000000 9000 18009000
18000000 760500 18760500
18000000 1962000 19962000
Total Liabilities & Capital
18729000
19143000
21059000
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