This business plan will feature a fashion designer company by the name Best Looks. The paper examines some of the strategies that the company does to ensure the success of the business.
Company description
Our company has realized the need to come up with a sound business plan which will guide the operations of our organization towards realizing high levels of economic growth and development. Our company will be manufacturing ladies casual wear ranging from blouses and trousers. This is an area which we are fully prepared to tap in the large market based on the fact that the world has become very sensitive when it comes to fashion.
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Apparently, this is one of the sectors which are witnessing a lot of growth in terms of moving large volume of sales due to the fact that people are spending more on clothing especially in the developed countries. Our target market for our clothing line will be young ladies between the age of 18 and 35. This is because this is the age which is very adventurous when it comes to fashion and highly treasures fashion designs. The mechanism that our company will put in place will be to ensure that the needs of our customers are fully met and thus we will shift our previous approach to production to give more attention to production of fancy ladies wear.
This will be a very new venture for our organization because previously we have been dealing with manufacturing of official wears for both men and women of all age brackets. Therefore the location of our previous company did not matter a lot as long as it is in a strategic place in terms of total population. However, for the case of our new clothing line, a number of factors will have to be considered before settling on the best location. One of such factors is proximity to the target population which in this case is the fashion conscious youth. Therefore, this rules out any possibility of situating our business in the rural areas.
Another factor that we have to consider is the spending capacity of the people in the location of our business. One thing to take note of is the fact of our products will be relatively expensive due to involvement of expertise in the production process and that the materials used for production are relatively expensive. This therefore means that the consumer will have to bear the extra cost by paying high costs for the garments. Therefore taking on these factors, we have settled on Texas City as the best place to situate our business. This is an area which is characterized by a lot of young working class populations not to mention the fact that there are many colleges and universities there which still form a ready market for our products.
After such various deliberations we have settled on forming “Best Looks” as a start-up manufacturer of a clothing line targeted for females between 18 and 35. The role of Best Looks ranges from developing the clothing line to supporting it with promotions and advertisement to command a big market share in a highly competitive market set up. In the bid to ensure that, the company plans to strengthen its partnership with the retailers who are very important to the business development through a process of developing brand awareness. Best Looks therefore intends to market its new line as an alternative to the existing ones through differentiating itself from the others. This will be achieved through among other things applying the appropriate marketing strategies, high brand awareness and exclusiveness.
The key message that is carried by the Best Looks includes upscale, classy, expensive and versatile. As a result, the promotional plan of the company will be very diverse and will include quite a big range of marketing communication.
Vision
One of the visions of Best Looks is to become the leading fashion designer company in United States and the rest of the world. The company also intends to see itself controlling about 95% of the total market share of United States and finally venture fully to other regions of the world.
Mission
The main mission of the company is to bring a new revolution to the world of fashion industry but moving in line with the changing trends in tastes and preferences of the people. Therefore the company will invest heavily in the research and development of new designs which match with the needs and demand.
Objectives of the company
The company has the following objectives
To be the leading clothing line in America in terms of production of quality products.
To open the market for upcoming similar markets in terms of sensitizing the public on various fashions and dress codes.
To meet the existing demands for fashion and create new markets within and outside America.
To create employment opportunities in the company in the country and outside.
To establish a sound networks between the company and its clients through the use of appropriate marketing strategies.
To be a leading exporter of ladies designer clothes to the rest of the world.
The company’s development will be effected in terms of stages. We recognize the fact that all the processes cannot take place overnight and therefore there is a need to implement the development of the company in stages. The first stage will involve production of the garments such as blouses and trousers. After ensuring that those products are already in the market, we will come up with Best Look perfumes to complement our design clothing line. Again the whole process of initiating production process will take effect on a moderate pace to avoid scenarios where business ends up with compromised qualities of products as a result of not taking time in proper product development. Things such as research and development come in handy in this area.
This company intends to trade its shares in the stock exchange market. This move among other things will help in building a very strong capital base through getting the public resources from sale of shares. Other than that, the company will gain popularity by virtue of trading its shares in the stock exchange market. This means that in future, advertisements and other sales promotional strategies will be directed to a population which is already aware of the company and what it does. It therefore becomes very easy for such population to be convinced into buying and this will definitely translate into very high volume of sales for the company.
One of the achievements of the company is that it has managed to collect a lot of information concerning the target market and their tastes and preferences. This is of great significance as far as understanding how to approach the whole process of manufacturing, the material to use as well as design.
Product plan
As earlier stated, the products being offered by our company will range from ladies fancy blouses and trousers for young ladies aged between 18 and 35. By considering that the garments are for young ladies, the trousers will be designed to be very fitting, which is one of the tastes of the young people. Other than that the designs of the trousers will range from high waist to low waist to cater for specific tastes of the clients. The materials will also range from silk to linen. When it comes it comes to the designing the blouses, most of them will be low-necked as it is preferred by many young people. The blouses in particular will come in wide variety of colors since the young people seem to be extremely adventures when it comes to the use of colors.
Our products have unique characteristics which make them stand out from the rest of competitor’s products. One of such unique characteristics emanates from the fact that the material which makes the garments is easy to manage considering the fact that it does not crease easily. This attribute makes our garments preferable for those people do lot like spending time ironing out their cloths.
It is important to patent our products to block our competitors from using anything exclusive to our brand for their own competitive advantage. The name Best Looks will be patented so that there will be no other clothing line which will be legally allowed to use the name. This name will serve as our brand name and thus every piece of clothing will bear the name.
For us to operate within the country smoothly, it will be imperative for our company to ensure that it fully complies with the government requirement as far as registration of the company and other basic operation requirement is concerned. Registration of the company will come first. Due to the bureaucratic nature of the process, it will be important for our company to embark on this process early enough to avoid any unnecessary delays on the stipulated day of commencement of our business operations.
Our product is very relevant to the state of art in the sense that it is features in some of the most recent designs as far as fashion is concerned. However, our products may be rendered obsolete by the fact that the dressing tastes of people seem to be changing day in day out and the worst fear will be for the ladies fashion taste to shift from trousers to something like dresses. This will mean that there will be minimal sales generated by the external factors.
However, this is just but an isolated market scenario. Some of the liabilities that may be involved in the rung of the company will be the bad debts. In some cases, it is very normal for businesses to supply products at an agreement for future payment. This normally works on the basis of mutual trust which in some cases can prove to be inadequate. Under such circumstances, the person or the business being supplied with the products can default to make the payment as stipulated and upon numerous fruitless follow-ups; this finally ends up being counted as a bad debt. Under such circumstances, the company will be forced to bear this liability and devise a means of compensating such losses so as not to compromise with the normal running of the business.
One of the things which make our company very unique is that is goes far beyond the provision of products to establish a personal relationship with the customers. For instance having an elaborate customer care is one of the qualities that Best Looks will borrow from its affiliate company. This attribute has been reported to work for the organization in maintaining the customer loyalty. It is through customer care services that the firm has been able to establish various issues and concerns of the customers and hence design appropriate ways of addressing them for the good of both the customer and the organization.
Another aspect which makes the organization unique is that it puts issues such as social responsibility in the forefront as opposed to many other organizations within the industry. The products of the company are also very unique compared to that of the competitors in terms of versatility of designs, color and the material used. This makes the customer to base her decision on of buying on a very wide variety of products.
Marketing plan
Understanding the target market and its dynamics is very crucial in any business development. As earlier stated, our target market includes the young people who account for the greatest percentage in the total population of the country. However, the market is segmented into two units. To start with, there is that population consisting of college students mostly aged between 18 and 25. Other than that, the market is segmented into the age group between 25 and 35 years who majority fall in the working class category. These different segments of the population have varying spending power and so do their tastes of fashion vary to some extend. With such knowledge in mind, it becomes very easy for the company to adjust towards meeting the needs of each market segment because it matters a lot to see that the customers’ needs are well taken care of.
The profile of our target customer includes classy, elegant, and expensive outfit. As it is the case with many people who are fashion-conscious, these are attributes which add glamour to their wardrobes and this is exactly what our company will take care of. Our company expects to take command of at least 75% of the market at its initial stages and move towards about 95% as it advanced to high levels of growth and development. With such a market share, it means that the total profitability of the company is well taken care of.
Competition
One factor worth noting is that the level of competition in the fashion industry has been growing daily. People have recognized the potential that this industry has and every one is trying every means possible to remain highly competitive. In Texas City where our business will be located, there are quite a number of similar businesses, some which have been in operation for an extended period of time. However, locating our business there will be an advantage in the sense that customers are already aware of the fact that they can get high quality designs in Texas. Therefore, the tasks that will lie a head o f us is to make our products as distinguished as possible from that of our competitors and hence make them stand out.
One of the ways through which we will be able to ensure that our products are highly distinguished is by making sure that quality remains uncompromised for all our products. For any rational consumer especially aged between 18 and 35, quality comes first. In order to ensure quality production, our company will not take chances when it comes to high qualified personnel in both production and management. On top of that, job training will be given a lot of priority to ensure that workers are equipped with the necessary skills and expertise to enable to them perform their duties to the best of their abilities.
Apart from that, out company will make use a pricing strategy which will put out prices relatively lower that that of our competitors. Price in any market scenario plays a very critical role in influencing people’s decision to purchase. Again, holding the quality constant, a rational consumer will go for a product which saves him or her an extra coin opposed to the reverse. This is one of those strategies which need to be approached with a lot of care because over-effecting it can compromise with the overall profitability of the company hence render our business unable to sustain itself.
Therefore one of the ways through which the company will ensure that the company’s products are priced lower that those of the competitors is to utilize economies of scale. This simply means mass producing the products and hence sourcing for raw material in large quantities. By so doing, the overall production cost will reduce by a significant margin and therefore it will be safe for the company to price its products low while still operating profitably. Other that enjoying the economies of scale, our company plans to cut down on the costs of production by minimizing the costs of labor. Most of production will be capital intensive as opposed to labor intensive.
Our market research that we contacted in the area revealed that most of our competitors rely on walk in customers. This means that they do not make use of various sales awareness and promotional strategies to recruit more clients. Our company will take advantage of this and make proper use of the sales promotional tools to our advantage.
One of our strongest competitors includes some Chinese manufacturing industries in Texas which have been in the business for the last ten years. They are a threat to our business because for one, for them to have stayed in the market for such a long time, they must be fully equipped with the necessary information concerning the market and that can be to our disadvantage. Other than that, it may take time for our products to penetrate due to the market dominance of these companies hence compromise with our overall success.
However, our competition will not be based on how long a company has been in the market but will rather be a question of how well we can meet the needs of the customers while at the same time saving them an extra coin. Those are some of the attributes which will make our company stand out from the competitors.
With the effecting of such approaches, I see the competitors loosing out in two to three years to come since our market share will be too high to allow the thriving of any other business within the region. Distribution channels matter a lot in any business because it determines how well or otherwise the products are availed to the consumer. Our customers are our biggest treasures and thus we will make use of distribution channels which ensure fast delivery of the products to their proximity.
Marketing strategy
Our marketing plan will include a process creating awareness whole at the same time persuading customers to purchase our products. With more and more people using the internet, this will be a perfect place for us to carry out our marketing. Social networks such as face book and the twitter will be in on the frontline to tap in the market there since statistics have that the highest population there is the young people who are our target group. Using internet as one of our marketing tool will render the whole process less costly as compared to other channels of advertisement wile reaching a very large volume of customers in every part of the globe (Ford, 2007).
Other than internet, our company will make use of the social media such as television. The timing in which the advertisements appear in the television is very critical and our company fully takes note of that. For instance, when the advertisement is aired in between the news broadcasting, it is likely that a very large number of people will be watching and thus meaning that it will reach a very large number of people.
Therefore, it will matter a lot for us to settle on the best time to place our adverts on the television. The marketing of our products will use the most appealing photos as possible. It is important to note that the kind of material used in any advertisements plays a big role in creating the image of the product in the eyes of the consumer. Therefore our company will not take chances with this fact when designing the adverts.
Our company will own many outlets throughout the Texas City and other major cities in the country. Those outlets will be fully stocked with the products. Distribution of the outlets in all major cities will save the customers the time and resources they could use in terms of traveling costs involved when the product is accessed from a centralized place. Proper display of those products in the outlets will matter a lot and is something which will be given a lot of priority in our marketing plan to ensure that the customers are presented with a good view of the products stocked in those outlets.
Our marketing strategies will stretch further in the world of beauty pageants where we will be sponsoring various modeling events. Among the things which we will do is to let the beauty pageants model various clothes from our clothing line. This will not only be a perfect opportunity for us to popularize our various designs but will also be a good opportunity for our customers to sample each individual design based on how it comes out when worn by the models. The many institutions of learning around Texas City form a very good avenue for marketing our products through the beauty pageants since such activities are quite prevalent there.
Being Part of the social responsibility is an avenue for marketing our products. Social responsibility simply means taking part in the community activities that directly touch on the life of people. For instance, sponsoring a walk to raise money to aid some people who are starving in some countries in the world is just but an example of being a part and parcel of social responsibility. Through being part of the social responsibility, our company will get in touch with the customers at the grassroots not to mention the fact that it will build its image and brand personality. The social responsibility on our organization will be not be limited only to taking part in the events that touch on our target population but will be rather focus on all social realms and focus on circumstances faced by the society at large.
Our marketing plan will work beyond geographic boundaries to serve customers in almost every part of the world. According to a research that we previously conducted, it is quite evident that there is a ready market for our products in other parts of the globe which is untapped. It is one of our objectives to go international and expand our client base. So far our company has identified a market in some African countries such as South Africa and Kenya. It therefore means that the supplies of our products will extent further to meet the international demand.
In order to ensure that we remain profitable, we will be exporting in bulk and use cheapest options of transport such as ships. This will cut down our operating costs significantly hence make our products fairly affordable to the consumer. When it comes to selling, special skills will be needed. First and foremost, it would be important to equip those who are dealing directly with the customers with crucial knowledge on how best to handle them. This will include listening to their concerns and assisting them where possible in the move towards building a good relationship with them which is very crucial in our business success.
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Our company fully appreciates the input of our sales force since they are the back bone of our business. It is for this reason that our company will come up with sound remuneration scales as a way of motivating them towards realization of the goals and objectives of the organization. The significance of motivating employees in any institution cannot be overemphasized since its direct relationship with job performance is very evident. Apart from the remuneration package, our company will provide a supporting environment to nurture and grow the potential each individual employee in which capacity he or she serves. Therefore, it will be duty of the people in the top management positions to help effect this aspect.
As I had earlier stated, our business just as many other in various industries cannot avoid advancing credit facilities to its clients from time to time. However, this should be done in a lot of moderation and skepticism as well. Our company will first and foremost carry out a thorough evaluation of credit worthiness of our clients to avoid landing our self in bad bets. The financial position in case of corporate client will also be of great significance in settling on the decision on where to advance credit facilities or not. This information can be obtained from analyzing the accounting records of the client. On top of that, our company will ensure that it avoids long term debts since most of them end up being bad ones (Thomas, 2001).
Too many debts can pull down our company and that is why it would be imperative for the business to take this issue seriously and make rational decisions. To follow up our debts, we will engage debt collectors to do it on our behalf. This will help in protecting our relationship with customers since the debt collectors will literally do everything as far as ensuring that our debtors pay. Dealing with the customers directly in this case would make our relationship to be compromised and it can in turn affect our business.
Today, almost every organization appreciates the importance of employing marketing strategies in the effort to boost sales. This is a factor that my competitors are taking seriously. This is therefore a shared approach to business between our company and our competitors. However, what varies is the application of varying marketing strategies.
It is the nature of many businesses to experience seasonal peaks. This is the time when the business is highly booming and it’s during that time an organization can maximize on its profits. Therefore, the business should strategize itself into tapping in the increased business and translating it into high profit margins. For the case of our business, seasonal peaks are experienced during the summer. At this period, people can feel free to adventure with fashions w since the weather conditions permit so. Considering the material making our clothes, it is obvious that such clothing is only suitable for a relatively warm weather conditions.
Management Plan
The management team will be mandated to run the organization. It is this team that has greatest role to play in the success of the business. In the organization, team work will be highly emphasized because this will result into working towards realizing a common goal. The hierarchy of management consists of the managing director to unit managers. It will be the duty and responsibility of each manager to ensure that the people working under him or her embrace the policies of hard work towards the organizational devolvement. The manager will also be responsible for motivating the workers from time to time to boost their productivity. Therefore one of the basic qualities of the managers will be their ability to exhibit high levels of leadership skills
Other than that, education background will matter since a lot of emphasis will be placed on people with adequate training in management related courses because we believe that such people will be well equipped with the necessary knowledge to enable them to take up the roles of managers within the company. At the moment there are quite a number of vacant positions which need to be filled as soon as possible for the business operations to kick start. Below is a table showing the vacant position and the respective annual packages
Vacant position
Annual package in USD
Operations manager
120,000
Branch manager
170,000
Production manager
120,000
Marketing manager
140,000
Quality control manager
160,000
Though the supervisors may not fall under managers, their roles cannot be overlooked. Our company will recruit about five supervisors to help oversee various processes within the organization. Their annual package will range from 50000 to 70,000 US depending on their scope of duties.
Employee motivation will be one of our key values to embrace. This will be done through carrying out performance appraisals to rank each individual employee accordingly depending on how they perform their duties. The employees ranked highest will be rewarded as a way of motivating them. This will also be a challenge for others to emulate the ones who are awarded hence bringing competition within the organization. This will work to the advantage of the company since every employee will be striving towards improved performance. The personnel will not be left out either when it comes to motivation. It is obvious that personnel who are not motivated cannot afford to motivate his or her subordinates. They should therefore be motivated from time to time to enable them perform their duties well. Training of employees remains very central in any organization. Our company values employee training a lot and as a result, the company has allocated a considerable portion of its budge towards training the employees.
Through this, the employees will be equipped with the necessary knowledge as pertaing to their duties within the organization. The Company will outsource training managers from some of the most highly reputable organizations in the country to impart the appropriate knowledge to the employees. The issue of employee training will be made from time to time; that is, there should be at least a training session once after every two weeks. The management team will be responsible for organizing these training.
It is the duty of the human resource manager in collaboration with the other relevant managers to assess the performance f the employees for the purposes of appraisal. For instance, a marketing manager will be better placed to rank a person in the sales team. Subcontracting will help our organization save on the costs of recruiting and training personnel to fill in various positions. Our company will therefore make use of this in various production activities. For instance during the peak season when the business is booming, we will sub-contract people to form our workforce.
This will supply the extra labor required to cater for the production towards meeting the extra demand. It will be the duty of the quality control manager to ensure that substandard products do not find their way not the market since this would compromise with the standard we want to set in the market.
Operating Plan
As we have earlier stated, we will make use of subcontracting in the production process. This will cut down on operating costs by some margin and also ensure high production since we will see to subcontract people with a good record of performance. The production process will require the use of various machines and equipment. It means that the company will have to invest a lot in the state of the art equipment to guarantee better quality. Some of the equipment will be source from abroad. It will therefore call for specialized people to operate these equipments and this is where the significance of training comes out clearly.
Inventory control is very important because a situation where the rate at which the products are made is far much higher than the rate at which they are distributed can result into pilling a lot of stock for such a long time, something which can compromise with the quality with time. The environment in which our business is situated has both positive and negative impacts. First, most people in the area are every fashion conscious and therefore it will not take much time for people to start appreciating our new fancy designs. Another advantage is that people have very high purchasing power and this translates into moving high volume of sales. As for the disadvantages, the weather conditions here get so chilly sometimes thus discouraging people from wearing our designs (Berry, 2008).
Financial Plan
In our financial projections, we will assume that all factors will work in favor of our business and that we will be able to operate profitably. The projected revenues for the first three months will be estimated at 5000,000 dollars per month. However, we plan to keep our expenses at minimal levels as possible to be in a position to maximize out profits , for instance this is a breakdown of some of the consist that we will incur in the first month of production.
Cost of raw materials
500,000
Wages and salaries
1,000,000
Cost of marketing
500,000
Fuel costs
500,000
Total
2,500,000
Therefore the profits fro the first month will stand at 2,500,000 dollars.
i.e. profit = total revenue -total cost
=5,000, 000-2,500,000
= 2, 500,000 dollars
Our business will try as much as possible to stay away from funding its operations from debts. This is because debts come with a very high cost in terms of interest rates. Therefore most of the operations will be funded from equity.
Legal Plan
The business will operate like a limited company. This will mean that the liabilities of the company will be limited. This form of business has a number of advantages. With limited companies, we can decide to list our shares in the stock market to boost our equity. Other than that, each shareholder is entitled to particular shares of the organization depending on his or her contribution. Our company works in collabora
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