Developing a Retail Store for a Clothing Company - Coursework Example

New Venture Creation Table of Contents Table of Contents 2 The Formation of New Business and Management Concept for the Company 3 The Objectives of the Company 4 Analysing the Industry 5 Target Customers for the Proposed Company 5 Competitive Landscape 6 Assumptions for the New Venture 7 Differentiation of the Various Product Categories 8 Marketing Plan 9 Financial plan 10 Operations Plan 11 References 12 14 The Formation of New Business and Management Concept for the Company United Kingdom is recognised to be an economically strong country for establishing new business venture. In this regard, the company has initiated to develop a new venture relating to clothing business in the UK for a sustainable growth. The business plan in this context is being made for developing a retail stores for a clothing company in the core market of Wales, the UK. The company ‘Fashion Fabrics’ intends to establish its business operations in the UK by understanding the needs of customers. The company has decided to make collaboration with the government of the UK for the expansion of its business and position its company in the competitive market. Another objective of the proposed company for making collaboration with government is to provide quality products as well as services to its customers for profitability and sustainability (Queen’s Printer and Controller, 2010). In order to create itself as one of the most favourite choices of shopping for every customers the proposed company Fashion Fabric wants to establish a Mixed Style Segmented clothing market to meet the changing demand of customers. Besides, the prime ideology of the company would be to develop it business profile as “Broad Street for Shopper”, which is expected to fulfil the requirements as well as choice of majority customers of the UK (Piercy, 2009). The vision and mission of the company is to expand its business by eliminating numerous barriers vital for the proposed company to create association with the textiles departments as well as government of Wales, the UK (Piercy, 2009). The proposed company wants to establish its business in the Cardiff city, which is popular as it is the capital city of Wales. Cardiff has a strong economy and the standard of living is high so the proposed business initiated in this city will provide a wider prospect. Location and service provided will help the business to succeed in future, as it is the largest city of Wales as well as tenth largest city of the UK with commercial viability. The Objectives of the Company The principle objective of the company is to establish a quality products as well as services providing business entity for satisfying the needs of customers of Wales. More specifically The proposed company intends to create a shopping environment that influences the requirements of the all European females as well as males from the urban as well as rural region The proposed company has also intended to provide quality apparel with a minimum range of price The proposed company wanted to become a popular hub of ethnic- western wear apparel stores that can create its innovative identity The proposed company intends to garb the majority portion of market shares of the textiles markets of the UK The proposed company is expected to earn the at least 40% to 55% of profit margin in its initial years of business. The proposed company will also try to raise its demand for the business by providing positive responses as per customers feedback The proposed company will try to expand its market in the following years Analysing the Industry Before establishing the business, the proposed company needs to study and understand the market of the industry as it is necessary for the business purpose. It has been stated that by doing proper industry analysis the proposed company can come to learn about the recent market condition of the respective industry and strategies its policies. Knowledge gained by the industry analysis will provide the proposed company with the opportunities of growth as well as competitive advantages for its future prospects. With the industry analysis, the proposed company will also need to evaluate about its internal strength as well as weakness that can be a vital influencers for the business (Fisher & et. al., 2011). It is vital for the business to study the market so that the strategies are implemented effectively depending upon the industry analysis and existing competitors. Target Customers for the Proposed Company As per the initiatives of the proposed company, the target customers have been decided for the venture to be profitable. Targeting a customer segment as mentioned young females and males helps in determining the prospective of company depending upon the present customers who have huge prospect to become the future customers for the ‘Fashion Fabric’. ‘Fashion Fabric’ needs to target a group by influencing them to become its loyal customers. The proposed company has initiated strategies to make a distinction among a large number of customers as per their life style segments, demographic, psychographic as well as by evaluating geographical location. By targeting a group of customers, a proposed company will be able to prepare its strategies as per the changing needs and trends (Cahill, 1997). Segmentation is regarded to be a significant feature for developing business process by attracting customers. This feature will also increase the market share of the proposed company to a considerable extent. After segmentation process with the customers, the ‘Fashion Fabric’ will need to apply an effective strategy for targeting broader markets. The strategy of the future entity is to launch large numbers of exclusive apparel collections for different groups of customers belonging from different segments. It can be expected that the groups will be divided into five categories that has been created by the proposed company in order to serve customers with quality products as well as services (Fisher & et. al., 2011). As per the segmentation, company has decided to develop five different types of categories of clothing segments, which can be determinants for attracting a broad group of customers. The first category will target customers belonging to middle class background who do not have excessive income level. Second category will target the premium class people who are having fascination over expensive clothes. The third segmented category will target those customers who are having fascination over the fashionable clothing style. The forth-segmented category that the proposed company will focus upon is serving customers as per their ethnic groups. It will more specifically, focus upon the cultural or traditional segments of the clothing style. The fifth category of clothing style is highly dependent upon creating new segments for those people who loves wearing clothes, which fits according to their lifestyle (Fisher & et. al., 2011). Competitive Landscape It is necessary for the future entity to evaluate about its competitors as well as companies providing substitutes for preparing strategies for future prospects. It has been evaluated that Cardiff city is highly rich as per the economic perspective is concerned. The retail industry has been recognised to be a major market player in the domestic economy of Wales, the UK. It has been predictable that there are large numbers of competitors who already exist in the market of Wales. Another fact is that Fashion Fabric the new venture company will face severe competition during its business process from its rival companies. In order to get a market share and profitability company have to overcome competitions during business tenure. The proposed company will need to be careful regarding the expansion of its business depending upon various aspects. It can be depicted that major proposed company would face competition, in the Cardiff city, as it is the main hub of retail business. Moreover, the proposed company has decided to segregates its customers in to three different segments one is local competitors, second is regional competitors as well as third is national level of competitors. It can be predictable that after getting huge success in national level the proposed company will expand its business towards international level to attract more customers. Additionally, the proposed company is expecting to face competition with the top level brands of the UK such as ASDA, Avenue 32, Blue Inc, Dandie Fashions, Dents, Fat Face, Freemans, Grattan plc, Greenwoods, Hackett London, Primark, Peacock clothing, Tesco as well as Zara are the major names of the competitors of the company. The major concern for the Fashion Fabric are its rival companies as they are older and have a strong goodwill, which can be major threats for the new venture. Assumptions for the New Venture The proposed venture is indented to establish in the core market of Cardiff for better profitability. The clotting company will open a retail outlet in the main market of Cardiff. The proposed entity will provide quality fabrics with innovative as well as attractive offers and prices to customers to gain market. In this regards, the business decides to launch some unique strategies for keeping a strong hold over the market from the initial stage so that it has a strong customer base. In order to increase its popularity the proposed business has decided to prepare good quality fabric clothing’s, which will be designed by top designers belonging from the Heriot-Watt University of the UK. Moreover, the company has decided to launch an innovative segment of clothing, which will forecast a unique combination of ethnic wear and casual wear for both men as well as women. This innovative segment of clothing is recognised to be the USP (Unique Selling Product) for the business in the long run (Valkjärvi & You, 2012). Differentiation of the Various Product Categories It can be expected that the newly ventured company will take innovative measures in order to meet the demands of customers living in the region of the UK. In this regard, the proposed company is eager to launch more new as well as innovative products in the market. Initially the company will need to make segregation between several product lines into five major categories. Under these five major divisions, a small numbers of varieties in fashions lines that has been also treated as a product category of the company. The first categories will be named as‘Casual Cats’, which will tend to focus on customers wearing casual clothes in a very frequent manner. This segment includes a large number of varieties in clothing’s with a lower price range. The proposed company has decided to provide those casual wears with proper fashions that can be affordable as well as liked by customers. The first categories are for both male as well as female customers (IDG Ventures, 2002). The second category will be based upon the price rate, which can be suitable for people of premium class. The major concern with this category is that it is only preferable by people belonging to a higher class as well as people who love wearing expensive clothes. This segment mainly includes the party wear clothing, which provide a sophisticated looks to the customers. As per the third category of clothing’s the proposed company will launch a new trend line, which includes fashionable clothes. The name of this category is ‘fashion fiesta’. In this category, the proposed company will display those clothes, which are trendy and follow new phenomenon. It has been observed that people who love to wear fashionable clothes can prefer those segments and help the company to become profitable. More specifically stated that both men as well as women are regarded to be major targeted customers for these fashion categories (Rhodes, 2014). The forth category clothing is based upon the formals clothes of style, which entirely indicates towards the business apparel. Specifically, stated that the formal categories of clothing are also knowledgeable as work suits. The name of that clothing category will be ‘Business Attire’. This can be helpful for the women as well as for men also, who loves wearing new clothes even in the workplace. The fifth categories of clothes are the ethnic or traditional apparel, which includes the wedding dress for the people. The main USP of the proposed company is the newly innovated segments the assimilation of ethnic as well as casual wears, which depicts innovative fashion lines for the people who love recent trends wear with elegance (Bruce & Daly, 2004). Marketing Plan In order to establish goodwill of the proposed company in the market the company needs to apply few strategies through its effective marketing activities. The marketing strategy of the planned company named Fashion Fabric is regarded as more innovative in nature. At the initial stage, the planned company needs to identify the condition of the market and then prepare a market plan. The market plan of the new venture should be developed in an initial stage of establishing business. By evaluating the aim of the proposed company, the marketing plan has been made up. It is expected that initially the planned company has intended to capture the local market of Cardiff for better profitability. After conquering the local market, the company will also move towards capturing the regional as well as national market of clothing retail industry of Wales as well as the UK (Crown, 2011). In order to establish its wide market range Fashion Fabric promote its brand. In order to promote its brand the company has decided to promote its products though advertisements in the local Television channels as well as in local newspaper. The advertisements in fashion magazine will be used as a wide strategy to attract more people for a better sustainable future. These particular promotional strategies will be successful in attracting majority local customers of Wales. The celebrity endorsements will be used to as it recognised to be a most effective marketing strategies for collecting customers trust towards the company’s products (Teige, 2008). The Fashion Fabric is initiated to make collaboration with the several fashion designers as well brand endorsements in several fashion shows of the respective fashion designers for commercial viability. On the other hand, the company will open its own online stores for the reaching towards the more customers very effectively. The online retail store will be helpful in capturing the regional as well as national market of the UK. Apart from this online purchase, option includes the free home delivery as well as cash on delivery option (Hussain & et. al., 2012). Financial plan Fashion Fabric Retail Company has a future prospect of earning maximum amount of revenues from this new business venture. It has been observed during the business process the proposed company needs to do huge investments. In this regard the proposed company should develop an effective financial planning, which can be proficient to attain the actual objectives of the company. The proposed company also intends to establish a new financial strategy for maximizing profits with reducing excessive amount of expenses. Apart from this, it will be expected that by ensuring the huge amount of investments the proposed company will earn more revenues in its tenures. Apart from this company has decided to open another segment, which includes dress material that can be helpful for generating additional revenues for the proposed company (Scholar Library, n.d.). Operations Plan The proposed company is planning to appoint few candidates for the official as well as selling purpose. Hiring more people for large number of operations will be helpful for the proposed company to maintain the operations in more strategic way. The proposed company is planning to divide its structure into four departments (British Columbia, n.d.). One department will sales services that will provide quality assistances. The team will provide friendly assistance to customers during the selling process. On the other hand, another team will be appointed for building stronger customer relationship management. One team will look after the online services as well as online selling strategies, which can be a vital point for company’s futures prospect. Rest of the two teams will be appointed for the promotional activities as well as for handling all the financial related jobs within the stores (Shapiro, n.d.). References British Columbia, No Date. Business Planning and Financial Forecasting a Start-up Guide. Small Business British Columbia, pp. 1-42. Bruce, M. & Daly, L., 2004. Lean or agile A solution for supply chain management in the textiles and clothing industry? International Journal of Operations & Production Management, Vol. 24 No. 2, pp. 151-170. Crown, 2011. Sustainable Clothing Roadmap. Progress Report, pp. 1-20. Cahill, D. J., 1997. Target Marketing and Segmentation: Valid and Useful Tools for Marketing. Management Decision, Vol.35, No.1, pp. 10-13. Fisher, K. & et. al., 2011. Benefits of Reuse Case Study: Clothing. Final Report, pp. 1-34. Hussain, D. & et.al., 2012. Strategic Planning for the Textile and Clothing Supply Chain. Proceedings of the World Congress on Engineering, Vol III, pp.1-6. IDG Ventures, 2002. A Business Plan for Inner City Apparel Retail Providing the Latest in Hip Hop and Urban Fashions. Image Fashions, pp. 1-45. Kang, S. & Raghunandan, A., 2010. E-Marketing Plan. Marketing Strategy, pp. 1-58. Mancini, M., 2009. Segmentation and Customer Loyalty Using Segmentation to Strengthen Customer Loyalty. The Nielsen Company, pp. 1-8. Moodley, S., 2002. E-Business in the South African Apparel Sector: A Utopian Vision of Efficiency? The Developing Economies, pp. 67-100. Owen, N. & Jones, A. C., 2003. A Comparative Study of the British and Italian Textile and Clothing Industries. DTI Economics Paper No. 2, pp. 1-72. ORourke, C. M., 2009. Flourish Boutique. University of Tennessee Honors Thesis Projects, pp.1-25. Pearson Education, 2014. The Fashion Consumer: Identification and Analysis. Divisions, pp. 71-96. Piercy, N. F., 2009. Market-Led Strategic Change: Transforming the Process of Going to Market. The University of Warwick, pp. 1-115. Queen’s Printer and Controller, 2010. Sustainable Clothing Action Plan. Sustainable Products and Materials, pp.1-24. Rhodes, C., 2014. The Retail Industry: Statistics and Policy. Economic Policy and Statistics, pp. 1-11. Scholar Library, No Date. Development of an Assortment-Planning Model for Fashion-Sensitive Products. Problem Justification of Study, pp. 1-44. Shapiro, J., No Date. Strategic Planning. Strategic Planning Toolkit. [Online] Available at: http://www.civicus.org/new/media/Strategic%20Planning.pdf [Accessed on April 7, 2015]. Teige, T., 2008. A Report on a Strategic Marketing Plan for Lane Bryant. Marketing Principles, pp. 1-14. Valkjärvi, M. & You, W., 2012. Business Plan for a Fashion Brand. Lahti University of Applied Sciences, pp. 1-72. Read More