Professional Documents
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Business Plan
Executive Summary
Our mission is to provide high quality exclusive clothing for kids, in the perfect blend of fun and fashion and also providing suitable accessories while offering world class services and convenience. Our idea is to launch exclusive occasion wear for kids between 3-12 years-for both western and Indian clothing, while also providing matching accessories that may go with the outfits. The idea for providing occasion wear for kids has not been exploited to its full potential and since we will be providing all the products under one roof we will have an edge over the other players in the market. Catering to the upper middle class, our products are priced between Rs 999 to Rs 3500. Outsourcing our production, the management will ensure that products are manufactured keeping ISO 9001 certified and total quality management practices which will ensure top quality products. Our manufacturing processes ensure six sigma ratings thereby claiming negligible defects in our processes (less than 3.4 in every million) The four partners and promoters behind the group have exceptional knowledge, expertise and experience in the field of fashion and designing.
Company Overview
Mission Statement To provide high quality exclusive clothing for kids, in the perfect blend of fun and fashion and also providing suitable accessories while offering world class services and convenience. Goals and Objectives To provide occasion wear for children. This has been an opportunity that has not been exploited to its full potential. There are many brands that offer kids wear but very few that offer designer kids wear especially for occasions. Our brand, thereby wants to make the best use of this opportunity, by offering a variety of designer kids wear for different occasions To provide the benefit of availability of all products under one roof to the consumers. In order to match with the outfits available, the store also provides a range of accessories for every occasion and theme. To open up retail stores in all metropolitan cities of the country
Values Bloom believes in being present at the right place, at the right time and providing the right services to the people. The group has a dedicated and well qualified team of experts who have taken the right step in entering into this market which upholds huge potential Foundational Values Resultant Values Integrity and honesty Customer Service Innovation Excellence Customer orientation Empowerment Accuracy Achievement Commitment Community Benefit Enthusiasm Competitive Edge Responsiveness Market Leader
Relevant Skills and expertise The four partners and promoters behind the group have exceptional knowledge, expertise and experience in the field of fashion and designing. Following are their details regarding their achievements so far: Kriti Mehta: Kriti started her career in fashion by completing her Masters Degree in fashion design in Indian Wear from Pearl Academy of Fashion, New Delhi. After graduating, she worked with the renowned brand name Satya Paul for two years. Within a year she was promoted as the lead designer under Contemporary print designs and managed a team of 5. She then took a break and pursued a one year management course specializing in fashion retail and marketing. She then got together with her friends and started this venture. Kritika Dawar: After graduating from a Delhi University with a degree in commerce, Kritika wanted to do more with her life then to pursue an MBA and follow the rat race. Having a flair for designing she got selected to pursue Fashion Designing in Indian Wear from Pearl Academy of Fashion, which she cleared with flying colors. She then worked with the famous designer Gaurav Gupta (Akaaro) for two years. She then went on and completed a management degree in retail and marketing.
Miriam J. Thomson: After completing an Honors Degree in Economics from Jesus and Marys College, Delhi University, Miriam completed a short term course in Adobe Illustrator from London College of Fashion. She also completed a summer course of stitching and sewing from Central St. Martins, London. Apart from this she also pursued a month course on introduction to Design from IED, Milan. Having a rich exposure and a multinational experience in this filed, she then pursued her design degree from Pearl Academy of Fashion in Indian Wear. She then worked with Designer Sanchita in FDCI 2008 and Designer Amber Firoz in Delhi Fashion Week. She also underwent a one month internship in Arvind Mills. Stuti Goel: After having completed a Hotel Management degree from IHM, Pusa, Stuti enrolled herself in Pearl Academy of Fashion to pursue her Masters in Indian Wear. She worked for the famous designer Amit GT in FDCI 2008 and Julie Scarland 2009. She also pursued a month long internship with the company Yorks. After having gained such work experience, she went on to pursue a management degree in fashion merchandising and retailing from London College of Fashion.
Resources Required Designing will be done in house; The company will be employing around 6 employees to look after the retail outlets. The company will be outsourcing the finished products.
CEO
Director 1
Director 2
Director 3
Director 4
Apparel Design Director Graphics Sr. Designer Apparel Sr. Designer Graphics Designer Apparel Designer
Accounts Manager
Sales
Forecast Team
Marketing Manager -Establishes marketing goals to ensure share of market and profitability of products and/or services. -Plans the organization's advertising and promotion activities including print, electronic, and direct mail outlets. -Guiding the customer service manager to maintain positive customer service relationships with all customers. (https://www.jobdescription.com/content/complet1.asp)
Industry/Market Analysis
Children below 18 years account for more than a third of Indias population estimated at 950 million in 1995. Today, young children (0-6 years) account for 17.5% of Indias population, an estimated 166 million. Close to 27 million children are born every year and it is estimated that the same numbers will be born every year, as Indias population is expected to rise (http://wcd.nic.in/udisha/htm/catalogue/2.doc)
According to the India Apparel Report, 2008 (Images Year Book, Vol IV), the size of kidswear market is estimated to be at Rs. 30, 510 crore Although, most of it is dominated by the unorganised sector, the organised sector (i.e.brands), however, is growing at an average of 20 per cent against the 30-35 per cent for the overall industry. Clearly, there is a huge potential and space for more organised players to come in and take a larger bite of the market
Todays kids are more fashion conscious, and are ready to experiment with clothing. Increase in the amount of disposable income, and retail blitz has brought a sea change in the Indian kids apparel market. With kidswear being considered as a part of the lifestyle segment and a strong emphasis being placed on brands, this segment proves to be a potential successful business (http://www.scribd.com/doc/18795157/Indian-Kids-WearMarket) Children's clothes in India started out as miniature versions of popular adult wear. Internationally, children's wear has its own trends forecasting, trade shows and a production, marketing and publicity set-up that rivals the adult business. (http://www.scribd.com/doc/18795157/Indian-Kids-WearMarket) A huge volume of kids apparel in India is being dominated by local and unorganized players. This gives an excellent opportunity for the organized players to lay a strong foundation in this segment. Indian market is now moving towards an international look in terms of childrens apparel. (http://www.scribd.com/doc/18795157/Indian-Kids-WearMarket)
Competitors
So far, the organised market was dominated by Lakhaniowned Gini & Jony Apparels with a 30 per cent market share, followed by Weekender Kids and Ruff Kids Pantaloon has entered into a 50:50 JV with Gini & Jony to set up a retail chain to market kids apparel. Raymond recently introduced its maiden kidswear brand Zapp!, with its first outlet running in Ahmedabad. DS Corporation, which owns 14 retail stores in India for children, and has brands such as Ruff Kids and Ruff Baby, is set for a major expansion plan. Whats more, even jeans companies such as Spykar, Pepe Jeans and Killer are trying to climb onto the bandwagon. International kids wear brand such as Tommy Hilfiger, Freelook Junior, Adam Kids and Walt Disney are making efforts to foray into India
STP
Segmenting the market on the basis of demographic characteristics i.e. age of kids,
Our products are targeted at the middle and upper middle class segment of the society with our products price range between Rs 999 and above The positioning strategy will be based on our efforts to make the parents as well as kids aware of our brand offerings and creating interests as well as desire to purchase our products
Positioning
Following methods can be followed to create effective positioning: For Parents: Awareness about our product offerings stressing upon the Occasion Wear product lines (both Indian as well as Western) One stop shop for designer occasion wear solution for every kind of occasion. Festivals, weddings, theme parties, birthdays the point is to take the burden off the parents shoulders in providing them solutions to dress up their kids which other competitors are not offering For kids: Highlight our Brand Name in all promotional campaigns. Kids these days love wearing branded clothes Associate our brand with something they can relate to a famous cartoon character can be an example or a famous child artist can be hired as a brand ambassador
Marketing Mix
Product Our core product offerings are designer occasion wear for children, for both Indian as well as Western Wear We also offer matching accessories with apparels like hairclips, earrings, bangles, belts, shoes, caps and bags Our products depict latest trends and designs as designed by our own designers matching industry standards and keeping in view the needs of our target customers, thereby making them visually appealing to the kids The fabrics used in our clothing are pure forms and synthetics and nylons are not used at all All our products and processes are ISO 9001 certified and total quality management practices followed by our company ensures top quality products Our manufacturing processes ensure six sigma ratings thereby claiming negligible defects in our processes (less than 3.4 in every million)
Indian Wear Girls Lehenga Choli Salwar Suit Churidar Kurtas Blouses and Sarees Stitched Sarees/Lehengas Kurtis
Product Lines
Western Wear Girls Tops T-Shirts Shirts Skirts Shorts Jeans Trousers Jackets Pullovers and Cardigans
Western Wear Boys Tuxedos Shirts Trousers Jackets Waist Coats Jackets Pulllovers
Place Distribution
Our distribution pattern is fairly simple. All manufacturing takes place in house in our factories conforming to strict quality standards of production thereby ensuring high final product quality Raw materials are acquired from well known and established suppliers The warehouses are located inside factory premises as we do not carry much inventory levels due to the nature of the fashion industry as trends and designs keep changing quickly Currently, we have two retail outlets in the region of Delhi NCR region. Both outlets are located in Metropolitan mall in Saket and Gurgaon.
The kids wear market in the country is mainly divided into two parts organised and unorganised, with the latter having a larger part of the market share. However, the organised sector is catching up due to their inherent advantages in their product offerings (i.e. quality, designs and trends) as well as increasing craze of brands amongst children According to Global market review of childrens wear Forecasts to 2012, the top ten global markets (which includes India) would account for an estimate of US $92.6 billion in childrens apparel retail sale Indian kids apparel brands are creating a niche by themselves by changing the face of Indian kids wear in India Industry experts predict that the market will further grow to reach Rs.45, 000 crore by 2013, with branded apparels contributing to a major share.(http://www.scribd.com/doc/18795157/Indian-Kids-Wear-Market) The volume of market share of kids apparels in the total apparel market is at 24.9%, as against a 15% share in 2005. (http://www.scribd.com/doc/18795157/Indian-Kids-Wear-Market) Urban kids apparel market comprises about 60% of the total kidswear market. A research states that more than 30% of the countrys population is below 15 years of age. The density of population makes kidswear to be one of the fastest growing segments in the Indian market scenario (http://www.scribd.com/doc/18795157/Indian-Kids-Wear-Market)
Pricing
Our pricing techniques mainly follow Market Skimming techniques As most of our products are made from high quality fabric and depict latest designs and trends in fashion, they are priced a bit on the higher side to avail profit The remaining product offerings which are basic to industry standards and some accessories are priced according to the value they offer to the consumers, thereby targeting the lower middle class as well as to compete with other players in the market
Promotion Strategies
Inaugural Discount on purchases for the first month in order to increase brand awareness Complementary gifts for kids for the first few days of opening of the store Further gift vouchers for purchases exceeding a certain limit Advertising strategies would mainly aim at promoting brand awareness amongst the parents as well as children as both play an equal part in purchasing decisions Colorful television ads on cartoon channels or during special kids events in order to attract kids Interactive advertisement on internet (on kids websites) and TV . Designing advertisements in a way so as to project a cooler image of kids wearing our brand of clothes in those commercials Hiring famous child actors as our brand ambassador
Financial Plan
Per Day Walkins Conversions (30%) * Outfit (50 %) * Shoes (20 %) * Accessories (30%) Monthly Sales * Outfit * Shoes * Accessories Total
Nov Projections have been increased by 5% and Dec have been increased by 15%.
ACCESSORIES
Budgeted Sales Add: Desired Ending Inventory Total Needs Less: Beginning Entry Required Production Cost per Unit Sales Price Per Unit Production Cost Sales Cost Gross Profit
QUATERLY 1030 118 1148 103 1045 800 1400 281500 483500 202000
SHOES
Budgeted Sales Add: Desired Ending Inventory Total Needs Less: Beginning Entry Required Production Cost per Unit Sales Price Per Unit Production Cost Sales Cost Gross Profit
16 18 162 182 800 900 1200 1200 129600 163800 192000 216000 62400 52200
3619000 2150500 1468500 50000 58000 324000 645000 90000 409500 51188 358313
Other Expenses and losses (15000 * 2) Income before income taxes Income taxes Income after taxes (Net Income)
References
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