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Feasibility study - Essay Example

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The company wants to be the leading producer of custom made t-shirts in a society that idolizes custom made designer clothes. The company aspires to compete against other already…
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Feasibility study
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Feasibility Study al Affiliation) Introduction Y15 is a firm that produces designer and custom made t-shirts through computerized prints. The company wants to be the leading producer of custom made t-shirts in a society that idolizes custom made designer clothes. The company aspires to compete against other already established clothing companies like Fubu, Sean John and Hilfiger.
The company, located in California, aims to debut its entrance into the market with the introduction of “Cool-Tee”, custom made designer t-shirts.
The company aims:-
To gain a competitive advantage over all other clothing line firms by incorporating wearable technology into its t-shirts.
To become a trend setter in the fashion industry.
To become a leading supplier of designer t-shirts in the next 7 years.
To penetrate the European market in the next 5 years.
Production Process
This process is perfected through rigorous testing and through the use of high quality raw materials approved by the bureau of standards. Additionally, the production process adheres to the environmental standards to ensure consumers have high quality and harmless products.
Equipment and Machinery
The necessary equipment for producing the designer t-shirts include:-
2 printing machines valued at $1,000 each.
1 Dell computer system valued at $ 500.
The necessary materials for the production process include:-
1,000 t-shirts (2 bulks of t-shirt) valued at $1,500.
15 sets of paint brushes valued at $ 1750.
10 colors of paint valued at $2,000.
Production Design
The production of Cool Tee undertakes the following procedures:-
a. Developing t-shirt design
b. Computerizing the t-shirt design
c. Printing the designed t-shirt
d. Drying the t-shirt
e. Quality control
f. Packaging and Differentiation
Financial Expenses
Advertising expenses will cost $ 1,000 per annum since it is a small startup company.
License Expenses will cost $ 3,000 per annum.
Office equipment and supplies will cost $3,500 per annum.
Projected Salaries and wages expense will cost $ 45,000 per annum for the first year.
The rent expense is valued at $ 10,000 per annum.
Since the company is a start-up there is no historical source of information, but projected sales for the first fiscal year are 950 shirt sales valued at $ 100 each, amounting to $ 95,000.
Location Choice
The company adopted California as its headquarters and production site due to its easy access to the gay community and favorable tax laws for production/textile firms. These factors will reduce the cost of production and transportation.
Marketing Strategy
The company will primarily employ the use of social media to advertise the sale of its designer t-shirts coupled with club promotion at favorite hot spots.
The t-shirts are primarily produced for sale to the gay population and generally for the hip and young males in their teens and twenties and then branch out to other demographics.
Employee Training
The company aims to conduct training workshops to impart the necessary knowledge, skills and professional standards necessary for the production of quality t-shirts for mass production.
Impact of Company
The company aims to alleviate poverty by employing workers from the nearby population to ensure that the youth have jobs and dissuade them from engaging in petty crime and drugs.
Emphasis on job training will also ensure that workers have the desired skills to function in society and provide for their families in other firms.
The company, Y15 will also be engaged in social events by sponsoring local events such as marathons for gun violence awareness or clean water initiatives.
Reference List
Sandhya, R., & Girija, P.P, (2011). Tata Teas Jaago Re! Campaign: The Social-Cause Marketing Initiatives and Long-Term Branding Initiatives. IUP Journal of Brand Management, 8(2), 31-60. Read More
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