Marketing and Sales for Angels Network - Example

Table of Contents 1.0.Executive Summary 3 1.1.The Company 3 1.2.The Mission of the Company 3 1.3.Core Values 3 2.0.Products and Services 4 3.0.Marketing and Sales for Angels Network 4 4.0.The Competition 5 5.0.Target Market for Angels Network 6 6.0.Operations of the Business 6 6.1.Management of Angels Network 6 6.2.Key Market Segments 7 7.0.SWOT Analysis of the Company 9 7.1.Strengths and Opportunities 10 7.2.Strengths and Threats 10 7.3.Weaknesses and Opportunities 11 7.4.Weaknesses and Threats 11 8.0.Market Analysis 11 8.1.Direct Competition Analysis 13 8.2.Indirect Competition Analysis 13 8.3.Competitive Advantage 13 8.4.The Market Segment 14 8.5.Angels Network Position and Porter’s Five Forces 15 9.0.Business Team 16 9.1.Management Team 17 10.0.Cash Flow Required and Sources 18 10.1.Sales Forecast for Angels Network 18 List of Figures Figure 1: Monthly Per Capita Expenses for Punjab 7 Figure 2: High Demand Indices (Population) for Chandigarh 8 Figure 3: Angels Network Position and Porter’s Five Forces for the Customised Shoes and Clothes 15 Figure 4: Management Structure of Angels Network 17 1.0. Executive Summary 1.1. The Company Angels Network is located in Chandigarh, Punjab and provides customized quality male and female shoes and clothing designs for all generations and socio-economic backgrounds. The service industry includes footwear, women garments, customized shoes for male and female, trendy designs that suit different occasions. The Company intends to grow by taking advantage of its diverse creativity in designing unique products coupled by its location (Chandigarh) which offers strong economic base for its sales and marketing promotions. 1.2. The Mission of the Company The mission of Angels Network is to become the premier provider of customized quality male and female shoes and clothing designs for all generations. The Company is thus dedicated to designing unique products that will not only give it competitive advantage but places it at higher bargaining point compared to other competitors. Angels Network is further dedicated to attaining long-term relationships with suppliers and customers through customer/supplier support thus gaining recognition as the best boutique shop not only in Chandigarh but worldwide. 1.3. Core Values Commitment to quality Dedication to customers Integrity Passion for product Responsibility 2.0. Products and Services The Company offers customised shoes and different clothing for both genders, regardless of the age. The company has a simple system that it uses to input customers measurements to give clients the perfect fit with every order or purchase made. Furthermore, it offers different trendy items from sideways cross bracelets to infinity scarves that not only fit Indian taste but that which cuts across other races. The company is simply super passionate regarding what their customers wants and they certainly show that by the ‘before sales’ and ‘after sales’ customer support offered. In short, Angels Network is that place where you cannot find something customized to your specific need. 3.0. Marketing and Sales for Angels Network The society, particularly within Chandigarh, the marketplace, technology and economy are transforming at an unprecedented speed and account for the largely unpredictable and uncertain environment (Attri and Barua, 2015). The uniqueness of products to be sold means that the environment which needs to be assessed for strategic business decision making is continuously expanding. Thirdly, collaboration and technologies need to be closely examined because they inevitably affect the domestic market. As a result, marketing and sales approaches for are strongly affected by legislation, government regulations and pressure from competition and social groups in society (Lim et al. 2015). It is because of these factors that the company if focussed in delivering products and services that are superior to any male or female wear currently in the market around and beyond Chandigarh. Report published by Sreedharan (2015) indicates that customized male and female wear is a fast growing business sectors and that Chandigarh (in Punjab), Union Territory and Europe is the currently the favoured location for most products. Angels Network, while a relatively new seeks to market its products beyond these borders for explosive growth. Furthermore, the company seeks to leverage its links with its upstream business partners and customers by offering different discounts and incentives. 4.0. The Competition Angels Network is currently having a substantial chance to dominate the market around and beyond Chandigarh. However, to maintain or improve their current situation in the region, the company seeks to ratify a number of measures. First, it will seek to improve on its superior customer service and competitive pricing models so as to benefit from the economies of scales and the strong relationships with suppliers, which will in turn place it in a strong bargaining position with its upstream partners and allows leveraging the costs (Mason and Stark, 2004). Generally, to deal with the already existing competition in the region the following measures will be undertaken: Continuing support to customers and suppliers All-embracing knowledge of the Chandigarh specific needs Strong customer service Specialized training programs for staff Easy to navigate and informative website Competitive pricing models 5.0. Target Market for Angels Network From the comprehensive research t that has been conducted regarding the market suitability, it is clear that there is considerable market for the boutique (Mullins, 2012). Further reports have indicated that the company may find it difficult in obtaining authoritative and reliable advice when it comes to market niche of the products (Wentzensen and Wacholder, 2013). The reason these report indicate is that demography and market mix of clients/customers expected to purchase the products. The company aims to achieve its goals by focusing on innovation, customer affiliation and expanding its presence in the existing market. Furthermore the company intends to cater for these needs by using informative sales personnel as well as deploying a strong return-customer base. This threat will be leveraged by further customer-relationship focus and loyalty creation, as well as investment in research and technical development (R&D) to reduce the costs of services to compete with niche operators. 6.0. Operations of the Business The company seeks to operate from what Kwong et al. (2012) terms as ‘a self-contained facility’ (p. 362) that will be within the existing clothing shop with the retail’s own shop window as well as entrance being from the main street. Based on the catchment area within Chandigarh, the Boutique will likely benefit from the both its accessibility, customer base and the fact that Chandigarh is in the heart of Punjab shopping district or central business district. 6.1. Management of Angels Network The management structure of the Company will function through different major departments, managed by respective personnel. Given the size and scope of the organizational activities, this functional management structure provides an effective and valuable solution for the company’s governance (Riddle and Cleaver, 2015). This management option has been chosen based on research that has been conducted and identified key management challenges that have been affecting the sector. For instance, Silva (2015) found that one of the major limiting factors is the lack of flexibility and responsiveness in decision-making processes, which has been accompanying the companies’ setting. Based on these challenges, the clothing and shoes store will be based on a small team with extensive experience in management, sales and who will be invaluable to the new the challenges in Chandigarh. 6.2. Key Market Segments Angels Network has identified the primary target market to the specialty of current needs and trends in the market. Research currently shows that purchasing power of people around Chandigarh has improved by about 25-35 percent in the last two years. Secondly, the figure 1 below indicates that Punjab, the region where Chandigarh is located is having higher monthly per capita expenditure more than any other (Sabine, 2015). Figure 1: Monthly Per Capita Expenses for Punjab Source (Sabine, 2015). On the other hand, regions around Chandigarh seems to be one of the richest regions with reports showing that it has about 8 percent share when it comes to region’s purchasing power. Research by Chennai-based Business Intelligence Unit (BIU) has shown that the purchasing power of 500 districts, covering roughly 95 per cent of the country's population includes Chandigarh (Arora, 2013). Specifically, Punjab leads the case with the a total purchasing power of Rs 20,728 crore which leads to about 2.4 5 per cent share of the country's total purchasing power of Rs 7,63,454 crore. Figure 2 below further shows that Chandigarh is a place of high demand population. Figure 2: High Demand Indices (Population) for Chandigarh Source (Arora, 2013) 7.0. SWOT Analysis of the Company Strengths Weaknesses S1: Economies of scale and outreach S2: Strong relationships with suppliers and within the boutique network S3: Brand reputation especially the customised shoes and clothes for male and female S4: Customer loyalty deriving from one-stop-shopping solutions. W1: Strong dependence on the boutique revenues W2: Weak internal funding position W3: Asset-heavy strategy. Opportunities Threats O1: Growing economy and increasing domestic consumption in Punjab and specifically Chandigarh O2: Favourable governmental regulations in the sector T1: Increasing costs of raw materials T2: Increased competition due to market demands from the same industry and boutique shops around 7.1. Strengths and Opportunities Angels Network is basically a boutique company in the region and its current infrastructure is ready to accommodate a larger customer base. The growing internal market presents numerous opportunities in the business network and boutique segments. Following the current marketing structures, the industry will benefit from the favourable political and legal environment, and can build on innovative and creative solutions in the industry. 7.2. Strengths and Threats The economic downturn and the internal environment in Punjab and specifically Chandigarh outline the general trend in the increase of raw material and supply costs for the companies in this industry. This process is further triggered by increased competition. Angels Network, however, benefits from the economies of scales and the strong relationships with suppliers, which place it in a strong bargaining position with its upstream partners and allows leveraging the costs. Brand reputation, at the same time, will continue serving as a competitive edge in an increasingly competitive market (Bhatnagar, 2015; Chattopadhyay, 2013). 7.3. Weaknesses and Opportunities At the moment, Angels Network’s revenue stream is highly dependent on its income from its sales of the customised shoes and clothes. Given the fact that the company is likely to operate an asset-heavy strategy, it is critical that it is able to leverage the risks of economic downturns by diversifying its income channels. The growing domestic market and the boost in demand of customised shoes and clothes enable further market penetration and help to reduce the pressure of external factors. 7.4. Weaknesses and Threats The company pursues an investment heavy strategy to grow its existing network. Financial indicators, however, outline a challenging internal environment in terms of liquidity and internal funding options. In order to maintain its leadership position and satisfy the interests of its ever growing needs of its customers, the company has done little to move from a market penetration strategy to a product differentiation strategy, which can offer less capital-intensive strategic options. 8.0. Market Analysis One of the All Business analyst, William Edwards, once argued that the reason why companies adopt marketing analysis is to reduce the level of reliance on local and even national markets (Hodges et al. 2016). The point they were trying to argue out is that as there could be downturns in consumer demands, upturns in consumer demands from markets can offset the trend. To be specific, this company will have to deal with a growing concern in its local market where it will consider moving from its functional model to a product design model, which enables better cross-departmental communication and alignment alleged that its sugary beverages could be a factor in obesity (Jia et al. 2015). This will lead to increased sales. The Company is expected, in the first six to twelve months of trading to report a 10 percent increase in its sales thus increase in revenue. In their new wake of regional and international market, the Company seeks to expand the market to deal with the downturns in consumer demands at home. To expand its market even further, the Company will take a unique strategy of advertising that seeks to open markets all over the region and abroad. The service industry, specifically boutique is currently demanding greater responsiveness and concern in our products. As a result, the company will be consolidating and making decisions as to why we should market the product. Angels Network has been driven by stiff competition from rival companies. It has been driven by such competition to re-structure its platform so as to accommodate the ever dynamic demands of its customers. However, in a nutshell, the following are the analysis of competitors, specifically for boutique companies within and outside Chandigarh. Companies focusing only on customized male foot wear Companies focusing only on customized female wear Protective wear providers for customers in higher social class Mass sporting wear for male and female 8.1. Direct Competition Analysis Currently, there are close to 30 different boutiques that operate within Chandigarh (Kar, 2015). These companies directly stocks different materials and products as Angels Network however, these companies do not actively take part in the design and making of the customized products; an aspect which will enable the company to deal with different competitions. As a result of this position, Rajput et al. (2012) reports that actors and competitors on the market have been seen to be struggling with the increasing cost of operation, production, development and mature market. It has to be recognized that any management analysis of Angels Network will therefore recognize the position of direct competitors and act accordingly to areas they are currently weak in. 8.2. Indirect Competition Analysis Currently, Angels Network will be using products from other manufacturers or companies in making their customized shoes and clothes that they stock in the shop. These companies will likely present indirect competition to Angels Network especially in the scenario that they decide to design or manufacture the same products since they are the key sources of materials Angels Network depends on to run its operations. 8.3. Competitive Advantage In line with competitive advantage and environment of operation, the company defines its culture through its expectations and experiences which is expressed through shared values. Looking at its engagements such Semple (2013), it is apparent that the shared value constituting its culture is geared towards customer loyalty, strong and unique footwear products that suit different environment and weather, ‘green’ management and creativity. In respect of corporate social responsibility, Angels Network is also embedded on unidirectional ethical decision making. This has not only given the company competitive advantage but also evading financial position and funding options. Secondly, Angels Network has intimate boutique knowledge that will help in the creation of different clothes and shoes that fit different needs of people. Consumers of these products will likely be drawn to the creativity, fashion and incentives of the product lines, incomparable with other products from other companies, within and outside Chandigarh. Lastly, Angels Network ability to design unique shoes and other garments and or clothes into fashionable attire for any age and gender provides it will the benefits not currently available in Chandigarh. 8.4. The Market Segment There are many boutique companies in Chandigarh who provide the same products as our compare and even strive to provide better products and services. The market segments are as described below: They sell all sorts of customized products as it our case but they offer limited information to customers, limited advice and support services after their sales. According to our market study about 30 to 40 percent of their customers find their shoes and dresses attractive at the first sight but are unlikely to return after their purchase. These are the challenges we intend to tap and advance accordingly. Secondly, our research shows that the market, particularly with regard to boutique is almost saturated but we find that customers have been shopping around, walking through different shops without getting exactly the kind of trend, design and mix they are looking for. This is the -position we will be taking help customers have ‘one-stop shop.’ Most of boutiques around Chandigarh have websites where customers can order directly for products they are looking for however, these websites fails to offer customer-seller interactive sessions where customers are attended to on a daily basis so that they can be able assess specific pair of shoes or products that suit a given occasion. 8.5. Angels Network Position and Porter’s Five Forces On the other hand, the SWOT analysis above can best be understood from the perspective of Porter’s five forces. Currently our research indicates the following about the Company: Figure 3: Angels Network Position and Porter’s Five Forces for the Customised Shoes and Clothes The bargaining power of suppliers within Chandigarh or Punjab in general was found to be low. The reason for this was attributed to the fact that it was easy to change suppliers rather than depending on one. Additionally, the threat of new entrants was possible but the research found this to be low especially one which would offer exactly the products Angels Network stocks. However, we recognised that many are still studying to be shoes and clothing designers and there is possibility for future new entrants. Thirdly, our analysis found that threat for substitute products were medium with most stores stocking the same products spread across Punjab and a few in Chandigarh. But all these stores vary in selection and tastes in some ways. Rivalry on the other hand is found to be high especially for basic clothing and shoes as there are several companies within Punjab who produces replica of customized quality male and female shoes and clothing designs. On the other hand, when we considered product that are specially designed for a consumer, level of rivalry still remains high as it is easy for these companies and individual designers to find something like seamstress to make clothing or dress to suit specific demands of customers just like it is the case with Angels Network. Therefore we would assume that there is still a need for low priced customized quality male and female shoes and clothing designs that are designed specifically to meet the growing demands and needs of customers. 9.0. Business Team Angels Network intends to share different duties and responsibilities during the start-up and continuation of the business operations. However, other than the management team that has been outlined below, the Company, during the initial stages will outsource different personnel to manage different levels and roles geared in the attainment of its objectives and mission. Some of the business team intended to be hired for short period of time include but not limited to: Outsourcing of designers who will integrate different shoes, clothes and materials into the website for clients’ decision making Designers for the customized clothes and shoes who will be working in turns 9.1. Management Team The chart below describes management team for Angels Network. While the chart below distinctively describes that every personnel has specific role to play, the structure is flexible and duties are bound to be shared especially during the start-up phase of Angels Network. After the initial start of the business the company will mostly likely outsource other personnel including distribution team and sales team. Initial oversight of each manager will be as follows: Figure 4: Management Structure of Angels Network However, the management team above will be working within the framework of specific management philosophy where the team will aim at creating a shoe and clothing company seeking to promote innovation while maintaining an efficient, reliable and enjoyable work environment. 10.0. Cash Flow Required and Sources The financial objectives of Angels Network are to operate at or close to break-even cash flow by the end of the first year. This is to mean that we intend to be profitable from the first year and to earn a figure in the region of $200,000 and 300,000 post tax profit. We intend that the company’s profit margin on our sales by the third year to be a respectable 5-7 percent. The total amount required to finance this venture is $100,347 which will be divided into five stages of business growth development. The overall phases of the capital flow are provided in the appendix which is the cash flows from the operational activities, cash flow from investing activities and the cash flows from the different financing activities. In light to this, financing is an essential factor in this venture to start the business and ramp up the profitability. It is worth noting that since it is a capital intensive business, it will require a significant amount of capital as it is evident from the financial accounts of the already established clothing companies (Smith & Pickles, 2015). Debt, equity, personal savings and funds from friends and families will form the primary sources of the financing which also comprise of the individual economies. 10.1. Sales Forecast for Angels Network The Company anticipates a steady buildup of customers to talk to us and buy our products according to table 1 below. Based on the projection below, the company forecasts to sell between 8,000 and 10,000 items (generalized as shoes and clothes). However, the number is likely to up due to expected new inquiries and promotional activities especially on social media. To break even the company will therefore need to sell between 2 and 3 years. This approximation compares with our present sales as projected above. The company therefore feels confident that the break-even point can be achieved within a reasonable period of time. References Arora, J. (2013). Prospect of e-retailing in India. IOSR Journal of Computer engineering, 10(3), 11-15. Attri, R., & Barua, P. K. (2015). From Place to Space: The Changing Indian Retail Scenario. Attri R. and Barua P., From Place to Space: The Changing Indian Retail Scenario, Quality management Practices for Global Excellence, Prestige Institute of management and Research, Allied Publishers Pvt. Ltd. ISBN, (978-81), 8424-968. Bhatnagar, D. (2015). 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