Business Perspectives for Trendy Fashionista - Essay Example

? Business Plan for Trendy Fashionista Business Plan for Trendy Fashionista Company Background Trendy Fashionista is a young company that is based in the United States. It hopes to grow both in scope and dimension and be one of the proficient players in the world of fashion. This profile is written with intention to attract potential investors. The company was established in 2005 in Washington and since then, its growth, both financially and physically, has been exceptional. When Mercy Neman and Lucy Russel founded the company, their major objective was to clinch the local retail market. However, today, it has expanded to immeasurable lengths. For a young company that is barely ten years old, the financial performance is excellent. It had opened three other branches in other states including Ohio, Michigan and Massachusetts. However, the company has also opened a branch in Australia which is thriving like its mother company. The company distinguishes itself as fast fashion trademark and offers high fashion clothing to reach the public at affordable prices. The Company’s mission statement is ‘when the customer looks good, we look good.’ In light of this, the main aim of the company is to ensure their customers look trendy and thus keep up with fashion (London Business School, 2008). Trendy Fashionista has over 500 employees in all their five branches. Additionally, it boasts of a wide range of customers from all backgrounds. The clothes sold are not the average clothes found in cloth stores. The company’s fashion designers go an extra mile to make clothes that are unique. This coupled with the fact that the company sells its clothes at fairly cheap prices makes Trendy Fashionista the perfect destination for a fashion conscious individual. Marketing Plan Introduction The fashion industry is ever changing due to contribution of companies like Topshop, H&M and Zara (Helm, 2008). Consequently, factors affecting the clothing industry will influence trends in the high fashion world. In the clothing industry, customers’ preferences vary according to their ages and body types. Furthermore, the demand for clothing is affected by population size and patterns. It is important to note that demographic trends are the driving force in the fashion. The company puts all these factors into consideration before setting up their market plan. Financial Goals The most important goal for Trendy Fashionista over the next ten years is to increase its revenues by at least 40% each year. This way, the company shall make at least 50% in profits and hence be a profitable business. Furthermore, the company intends to start online shopping. It has been realized that most shoppers would rather shop online due to their hectic schedules (London Business School, 2008). Additionally, it intends to expand its manufacturing capabilities. At the moment, once the fashion designers finish their job, the company has to outsource manufacturers. Therefore, the company needs to start making its own clothes. Furthermore, the company intends to increase its distribution and possibly open one more store in Australia. This will take care of the growing clientele base in Australia. Finally, the company intends to start taking part in community development. The founders are passionate about developing the community and thus the target is to set aside $10,000 to be donated to various Non Governmental Organizations. Non Financial goals The company intends to introduce a new product line, lightweight luggage. After a lot of research, the company has discovered that today’s traveler is tired of heavy luggage. Therefore, the company’ designers have been working on a new product that will lighten the traveler’s experience and if possible make the experience enjoyable. The luggage has been customized not only be easy to carry but also easy to improvise. For example, the product comes with an inbuilt charger which can be converted into a phone. The biggest challenge that the company has so far is that it lacks an internet site. Thus, Trendy Fashionista has decided to outsource an external web developer to create a web site. Additionally, an IT office shall be set up in order to keep updating the website. This is in line with the financial goal to tap into the online market. Target Market The target market for Trendy Fashionista is young consumers between the age of 20 and 35. This particular age group has been noted to be especially interested in fashion and always like to stay in the know. This age group consists of people who are well educated and successful (London Business School, 2008). Additionally, most consumers in this niche are single and thus are looking for a partner. This, coupled with the fact that they are working, is why they always have to look their best. This class of people has a decent income. However, regardless of this fact that they have comfortable incomes, they are price conscious and thus seek value in their purchases. Nevertheless, this age group is status oriented and will go to great lengths to maintain their status quo. SWOT Analysis Strengths Trendy Fashionista boasts of producing high quality products for their customers. The fashion designers go to great lengths to come up with only the best designs for their customers. Additionally, the company boasts of producing unique products that are customized to the needs of their customers. The company has an impressive customer base with up to 50% being loyal customers who shop at least twice a month. Additionally, the company has a sound financial management in place. The company rakes in up to $500,000 in sales revenue in all the retail centers both in the US and Australia per month. Weaknesses As already mentioned, the biggest challenge the company has at the moment is the online shop that it intends to open up. However, the company is yet to set up a website.. The company continues to lose thousands in possible revenue that could easily be made online (Kroenke, 2012). Additionally, this is also a shortcoming in the sense that it is harder to get customer feedback. Opportunities The clothing market is wide and ready for exploitation (London Business School, 2008). With enough marketing, there is a lot of untapped potential. The company is hoping to tap into the Asian market in the near future. The population of young people in the Asia is large and their incomes allow for luxurious spending. Threats There is a high level of competition in the fashion industry arising from the participation of global clothing lines such as Top shop and H&M (Helm, 2008). These companies have been in the game for long and are well aware of the tricks of the trade. It is hard for the new and small players to compete owing to the immense investments needed to venture in the fashion industry. Moreover, production, distribution and marketing costs are high. However, as the company grows the economies of scale increase and thus reducing costs. Marketing Mix Product Strategy Trendy Fashionista offers a wide range of high-quality clothing including office wear and casual wear for both men and women. The clothes are designed by the designers based in the company. All clothes bear the company’s logo ‘young and hip’. The company plays with colors and textures. As a matter of fact, the company is famous for the unique patterns in all of their clothes. The company plans to introduce a product line for light luggage for its customers. This new line will be for the young, high-powered and successful individual who is always on the move. The bags will be light and convenient but with a touch of sophistication. Distribution Strategy Currently, the company is marketed through the department stores that are scattered in some states in the US as well as Australia. Over the next ten years, the company plans to introduce online marketing. As already mentioned, the company plans to open a website to advertise and sell its products. Promotional Strategy Mostly, the company relies on personal contact with their customers. The contact, usually in person or on phone helps convey Trendy Fashionista’s message as well as build relationships. Public relations and sales promotions make up most of the company’s promotional strategy. There is a customer service desk in its headquarters in Washington to deal with customers’ problems and individual needs. Once the website is set up, there shall be an online customer service centre to take care of intricate customers’ needs (Kroenke, 2012). Pricing Strategy As already mentioned, products in Trendy Fashionista are priced with competitors in mind. However, the company prides itself with low prices. The prices are competitive especially if one considers the high quality of the goods. Target Audience for the Plan This market plan has been written with the view of attracting investors. Given the sterling performance of Trendy Fashionista so far, investors are welcome to put in their investments. With the expected increase in returns, it will take five years for return on their investments. In light of this, investing in Trendy Fashionista is a wise investment. Conclusion Conclusively, Trendy Fashionista has always been on the forefront against their customers regarding their vertical integration and their immediate response to variations in the fashion trends. It is about time the company upgraded its operations to keep up with the recent technological advancements (Kroenke, 2012). References Helm, B. (2008). Best global brands. Business Week. Kroenke, D. M. (2012). Experiencing MIS in organizational strategy, information systems, and competitive advantage. Pearson Education. London Business School. (2008). Fast fashion lessons. Retrieved from London http://bsr.london.edu/lbs--?article/168/index.html. Read More