Sustainable Design Brand Business - Example

Executive Summary

Sustain Company is going to stat business of garments and apparel in Bahrain. The company is aimed to facilitate the market with the sustainable products such as T-Shirts and other dresses along with reasonable prices. The company is going to start business online as well as providing the products to the distributors and retailers. The company will initially offer five products include t-shirts, jean, tops, uppers and gown at reasonable prices by reducing cost with the help of sustainability. The start-up cost of the business is BHD 115,300.00. The monthly expenses will be paid from the sales of the company. The company will start making profit from the third month of the business.

Business Description & Vision

A new business with the name “Sustain” is going to start in Muharraq, Bahrain. The company is going to launch in the fashion and clothing business sector with the aim to offer eco-friendly products. The idea is to sell the apparel such as t-shirts and other dresses that will be made up of organic material as well dyed with using natural colors rather than artificial. With designing and manufacturing the organic clothes, the company is aimed to offer reasonable prices to deliver the value to the customers.

Vision

Sustain Clothing brand is going to start a business of eco-friendly clothing and fashion. The vision of the company is to become the global brand for the environmental and social responsibility that is aimed to hold the innovation and creativeness in the designs of clothes to deliver the value to the customers as well as investors. Although, the fashion industry is strongly competitive and the growth is very high, however, the awareness of sustainability is resulting in the demand of sustainable approach in the fashion industry. Eco-friendly business is not only significant for the society and environment but it also facilitates the number of benefits to the business such as long term success and stability.

Mission

The mission of the company is to help in making the planet a healthier place with the support of excellent and skilled workplace that can deliver the green and organic values to the customers. The company will lead to its vision with the help of developing sustainable designs for the clothes and dresses along with the creations. On the whole, the mission of Sustain is to offer the quality designs and new look to the customers based on the sustainability and reasonable prices.

Goals

In line with the vision and mission of the company, the basic goals with the development of eco-friendly business are as follows:

• The first major goal of the company is to increase brand awareness
• The second goal of the company is to increase the number of customers
• The third goal is improve the expertise of the staff to provide the excellent sustainable products and styles

Objectives

To achieve the above goals, the following objectives are going to be attained:

• To create the efficient promotional techniques include digital media marketing, customer bonus and programs and discounts
• To increase the target market by market penetration and market diversification
• To earn maximum market share to become the leading apparel brand
• To have minimum more than 2000 customers at the end of first year operations
• To develop the training and development programs for the employees at the end of half of the each year

Definition of the Market

Before going to start a new business in any industry and market, it is very important to research and analyze the industry and market situation and conditions that can develop the opportunities as well as risks to the new business. As Sustain is going to operate within the apparel and clothing industry of the Bahrain, therefore, the outlook of the industry as well the market is as follows:

Business Industry and Outlook

The apparel and clothing industry of Bahrain is very fragmented, large and established. The products available within the Bahrain apparel industry are being products domestically as well as in different international locations. According to the data of 2012, the Bahrain is one of the largest markets of apparel in the global network.

The Bahrain industry of apparel is now considered as one of the major contributors in the economy of the country (Gereffi, Frederick & Bair, 2016). The industry has huge impacts on the economy with the increase in the employment and jobs, wages as well as fashion. The apparel industry of Bahrain is growing and improving in various aspects. The apparel and textile products of the industry exports in various markets of the world and the export are worth of US$ 200 million (Fibre2Fashion, 2015). The clothes market of Bahrain has been growing from last many years by 2.2.% average growth (Bahrain Economic Development Board).

Need of the Market

The competition in the apparel industry has been growing because of the internationalization and globalization practices. However, the demands in the apparel industry are changing and increasing on continuous basis for that in the competitive marketplace, it becomes important for the companies to quickly respond to the demands and needs of the customers (Sweet & Shetty, 1995).

The report has found that the textile and apparel industry has huge impacts on the environment and socio-cultural factors. Therefore, the focus and need to direct the Bahrain industry in eco-friendly direction is very important. Many large retailers and manufacturers, mainly international companies in the Bahrain have changed their practices into sustainable apparel practice such as designing green shirts. Not only in Bahrain, but in the global industry of apparel, the consumers are becoming more interested in green products with the awareness of environmental as well social impacts (Institute for Manufacturing, 2006). The example of the green product can be found as follows:

It shows that with the growth in the market competition, the needs of the market are also changing towards the sustainability in product designs and manufacturing and the concept of green in the apparel products.

Target Market

The apparel industry of Bahrain is the mixture of both men and women. Further, the fashion industry trends are also growing above all ages of the customers. Therefore, the target market of Sustain will be broader in terms of demographic segment. The company will design the products for both men and women of all ages.

However, apart from the demographic segment, the company will also target the customers based on the psyche and behavior of the customers. As the sustainability is the major approach of the customers, therefore, the company is going to target the educated consumers that are more aware about the environmental pollution and benefits of eco-friendly products. In addition to this, those customers are also going to target that are price sensitive and search for affordable apparel.

General Profile of targeted Clients

From last few years, it has been noticed that the consumers, mainly baby boomers focused more on the economy and job policies and the consumers with average income are more aligned with savings for the future after their retirements. These consumers try to spend less as possible for their living cost and expenses. Therefore, the affordable nature of the products will help these consumers to buy the fashionable products within their affordable range (Blckle, 2012).

Share of the Market to Anticipate

With the target market and high competition in the industry, the company expects to achieve 5% market share in the first year of the business, however, the market share will increase by every year with the increase in the brand awareness as well as the awareness of sustainability and environmental issues.

Description of Products and Services

Products and Services

The company with the aim to facilitate the sustainable clothing products is going to manufacturer the t-shirts and other dresses using organic material. With the organic material, Sustain means to use natural fibers that are found naturally. It includes protein and cellulose. The natural fibers are usually received from plants and animals such as Silk, Camel, Wool, Mohair and Angora etc. Further, the colors use to dye the products will also be natural dye. Other than this, the company will also use recycling of the products to reduce the waste that is the most sustainable action for the benefits of the environment and society.

Usually, it is considered that sustainable clothing is costly and expansive; however, the recycling will help the company to control the cost by reducing waste and to offer the products at reasonable prices. Apart from green products, these products will also possess new designs and loss to reflect the quality along with sustainability. Hence, on the whole, the company is going to offer the fashionable and well designed but affordable and reasonable garments at the same time that must ensure the environmental sustainability. All products will be offered within the range of BHD 100.

The major products with basic pricing include the following:

T-shirts

BHD 40

Jeans

BHD 75

Tops

BHD 45

Gowns

BHD 95

Uppers

BHD 99

How the Products and Services are Competitive

A brand name is considered as the powerful tool for the companies to achieve the competitive advantage. It is difficult to retain the effective position in the competitive market as various competitors have already attained the leading position in the market. The major competitors in the market include Hazelnut, Khaleda Rajab Couture, La Boutique 92, Marsims, Meemo Space, Yazi Boutique etc (Times of Bahrain, 2013). However, these are the leading top brands and offer high end products. Further, none of these brands is completely sustainable and eco-friendly. Therefore, the company can achieve the competitive edge with the competitive advantages:

• Completely eco-friendly designed garments
• Reasonable and affordable prices
• Quality and well designed products
• Reduced cost with the help of controlling waste

Based on these advantages, the company can compete in the market with its unique and sustainable business approach and product development. Other than these factors, the brand name (Sustain) can also be taken as the potential advantage for the company that is directly reflecting the vision and mission of the company i.e. Sustainability. This is how the company can simply target the customers better than the competitors attracting them simply with its name.

Organization & Management

For the successful and efficient operations and business activities of Sustain, it is required to design the plan for the organization, it structure and policies.

Organizational Structure and Chart

The company is going to begin as sole proprietorship for its legal structure where it will operate by only one owner. The company is going to start as family business. The owner of the company will be the manager of the organization as well, who will initially manage the day to day activities of the business.

Apart from the ownership, the management of the company will be based on four individuals. The first is the fashion designer who will manage the major business part i.e. the designing and production of the apparels. The second person in the marketing and sales manager, who will ensure that the company is successfully attracting the target market and customer and generating expected sales. The third will be the finance manager who will design and schedule budgets as well the proper management of cash flows. The last will the owner itself who will perform the role of operational manager and communicate with all the other managers for the effective operations.

The organizational chart of Sustain is as follows:

Marketing and Sales Strategy

The marketing and sales strategies are very important to decide to make the products of the company successfully outreach to the customers. Therefore, the marketing and sales strategies are going to design based on the marketing mix approach.

Who are Customers?

All those consumers who are interested in sustainable products as well as those consumers who look for affordable products will be the major customers of the company. However, no specification is placed for gender and age of the customers. Therefore, the marketing strategies will be designed according to the target customers.

Demand of the Products

The demand of the fashionable apparels is very high in the market not only in the Bahrain but also in the global market. However, many other brands are already offering the same product; this is why the sustainability, innovation and affordable nature will attract the customers towards Sustain to switch off their brands. It is easier to attract the middle and low income customers, however, the high income customers can be attracted with the awareness and knowledge of sustainability.

Channel for Distribution

The company will offer the products using online distribution channel to control the cost by reducing the expenses of rent for shop and outlets. The company will distribute the products using both direct and indirect channels. Direct selling will be done using internet store and indirect selling will be by providing the products to the distributors and retailers to make the products to outreach to the mass audience. The trend of online shopping is growing in the global market form last few years and the consumers are more engaged in shop online. It will be cost leadership strategy of Sustain.

Promotion

The promotion of the products as well the brand is very important to increase the awareness, sales and to generate the revenue of the company. The company will use digital marketing technique for the promotion in which it will mainly use the social media platform for the advertising. The products of the company will advertise on different social media platforms.

Financial Management

Initial Start-Up Cost

Initial COST AND EXPENSE

Startup Cost

TOTAL

ASSETS

Legal business Cost

BHD 800.00

BHD 800.00

Equipments & Sewing machines

BHD 10,000.00

BHD 10,000.00

Computer

BHD 500.00

BHD 500.00

Office furniture

BHD 2,000.00

BHD 2,000.00

refurbishment cash

BHD 2,000.00

BHD 2,000.00

other requirement cash

BHD 100,000.00

BHD 100,000.00

Total Asset

BHD 115,300.00

BHD 115,300.00

Half of the initial cost BHD 57,650.00 be invested by the owners and half will be received as debt from the banks.

Monthly Expenses

EXPENSE

Monthly Expanses

Annual expanse

Office premises rent

BHD 800.00

BHD 9,600.00

Staff salaries

BHD 15,000.00

BHD 180,000.00

annual license renewal

BHD 300.00

BHD 3,600.00

marketing Expense

BHD 600.00

BHD 7,200.00

Internet

BHD 100.00

BHD 1,200.00

utilities

BHD 150.00

BHD 1,800.00

transport & travelling

BHD 150.00

BHD 1,800.00

inventory

BHD 2,000.00

BHD 24,000.00

insurance

BHD 500.00

BHD 6,000.00

other expanses

BHD 5,000.00

BHD 60,000.00

Total

BHD 19,600.00

BHD 295,200.00

Profit and Loss Projection

Monthly Cash Flows

Balance Sheet