Goals And Objectives Of The Boutique Business - Term Paper Example

Goals And Objectives Of The Boutique Business Table of Contents Business Description 4 Mission Statement 4 Vision of the Company 4 Business Goals and Objectives 4 Description of the Proposed Form of Organization 5 Rationalization 6 Industry and Market Analysis 7 Target Market and Customer 7 Uncontrollable Variable 7 Market Growth 8 Competitive Analysis 9 Primary Competitors 9 Secondary Competitors 10 Marketing Strategy 11 Human Resource Requirements 14 14 Operational Issue 14 Information Technology 15 Financial Statement 16 Estimated Cost at Starting 16 17 Balance Sheet 17 18 Cash Flow Statement 18 Works Cited 19 Executive Summary Boutique is a kind of market where customers are served with unique designs of clothing and accessories. The increasing modernized world has influenced the demand of the boutique sector which is in a positive direction because every person wants to use cultured dresses with different styles. In this specific condition, boutique helps a person in satisfying his/her demand by having an opportunity to wear uniquely designed dresses or by wearing clothing according to the design specified by the customer. In the globalised marketplace, the demand for the boutique sector is rising. With the influencing demand for the boutique sector, a boutique firm has been planned to be introduced in the United States market. The name of the firm is Boutique Outlet. Boutique Outlet wishes to satisfy the demands of the United States women customer segment with its special and distinctly designed dresses along with accessories. The business form of Boutique Outlet is sole proprietorship where the owner’s decision related to any performance will be the final one. Boutique Outlet will be initially introduced in the US market with a single outlet. The operational process of Boutique Outlet will be divided into certain departments in order to have a smooth functioning of the operations and it will also be beneficial to serve the customers’ efficiently. Business Description Boutique is a form of business in which customers are provided with exclusive type of products. Generally, boutique is a small business outlet that serves with fashionable items designed by fashion designers and also produces products according to customers’ prescribed designs as well. The ‘Boutique Outlet’ is desired to be introduced in the United States. Mission Statement The Boutique Outlet intends to serve the US women consumer segment with unique fashionable dresses and accessories which are comfortable as well as amicable in the environment. Boutique Outlet’s intension is to provide quality products by hiring prominent designers from every corner of the world. Boutique Outlet also would assist women to know about the choice of dresses that are familiar with their personality. Vision of the Company Boutique Outlet’s vision is to create a separate identity from others in the boutique industry, which will help to serve its customers through superior forms of sources. Business Goals and Objectives Boutique Outlet’s primary objective is to be the best boutique firm in the US boutique industry. It considers certain measures to achieve the objectives such as performance in the market by serving the customers with modern and innovative products. Furthermore, with regards to non-financial objectives, Boutique Outlet also has certain financial objectives such as to have a balanced annual financial report and to increase sales regularly along with maintaining balanced cash flow. Description of the Proposed Form of Organization Boutique Outlet will produce and serve its women customers of US with the unique designed dresses and accessories. Boutique Outlet also produces products according to the designs demanded by the customers. The other feature of this organization is it will produce a single piece product for a customer in the market. Products of Boutique Outlet are designed and produced by the expert professionals of fashion designing. The Boutique Outlet’s women products are based on the preference related trends of the western lifestyle because the demand for this specific product style is increasing along with growing modernization. It is also observed by Boutique Outlet that the western style has inimitable feature with a wide range of geographical and cultural, purchasing capacity and these differences influence the modern generation women of different age group to consider the western look. With this modern western style, Boutique Outlet will also include its unique nature of design which will create a vast demand for the products in the market. The Boutique Outlet will help those individuals who have certain knowledge and experience in stitching and fabric sector by providing them a floor to represent their style by which a person can build a separate personality. Boutique Outlet will start its business with thirty employees. There will be three finance officials, seven marketing executives and three members in logistic department along with three designers for designing the products. Furthermore, Boutique Outlet’s business process will be represented by six officials in serving and selling the products to women customer as well as seven employees in the manufacturing unit. With the help of such employee strength, Boutique Outlet can produce approximately one thousand units of products per month accordingly for the market. There will be five stitching machine and five fabric drawing professionals. Rationalization Every business has particular type of ownership such as sole proprietorship or partnership. With reference to the context, it is stated that Boutique Outlet will be run by a single proprietor, which signifies that it is a sole proprietorship type of business. Contextually, sole proprietorship can be defined as the business enterprise which is owned and controlled by an individual, considering all responsibility, profit and risk as well as the final decision related to any process are decided or taken by the owner. The rationalization of the form of the business can be offered from the point of view that all the judgment related to the business functioning would be regarded by the owner only. It will enable to largely eliminate a situation of conflict that might arise if there were a multiple numbers of individuals with the authority of decision making (University of Richmond, “Intellectual Property and Transactional Law Clinic”). Industry and Market Analysis Target Market and Customer Boutique Outlet intends to start its business from the US market. In this market, Boutique Outlet generally would deal with unique products such as dresses and accessories for women section of almost every age level. Although the US apparel market is flexible and competitive, there are still a prospect of considerable rise in demand for the dresses along with new styles and designs. This is the primary and suitable condition where Boutique Outlet intends to work and facilitate the US citizens to be unique in personality by wearing Boutique Outlet’s dresses. The particular market of boutique in the US is quite competitive; as a result the market at times acts as a barrier for the entry of new firms. This state of market generally has arisen due to the presence of substitutes and suppliers in large numbers in the market. Boutique Outlet wishes to target especially the women aged between twenty to forty five years though the products that would be manufactured for the consumers of the US, by providing distinctive dresses which are in keeping with the environmental climatic scenario. Uncontrollable Variable The uncontrollable variable refers to the market situation which cannot be controlled by the firm such as the consumer demand, economical fluctuation and natural disaster. Market Growth In relation to the recent market trends of boutique, it is assumed that there are certain consumers who seek to have dresses which are exceptional and only available in single piece in the entire market. The nature of the boutique sector is identical and the demands for the boutique products are increased by such kind of customers and those customers who want to wear dresses according to their crafted design. Source: (Hong Kong Exchanges and Clearing Limited, “Industry Overview”) The above two diagrams depict the clothing retail sector of the US market which highlights the fact that during 2008 the demand and the market of clothing retail that comprise boutique segment had fallen due to the recession. However, it is also assumed that the future scenario for the boutique market will rise further. Subsequently, it is also observed that after 2008’s fall the market again took a rising trend from 2009 onwards. The assumption that has been considered stresses on the fact that there is expected to be a rise in demand of such products by the year 2014. This aspect augurs well for Boutique Outlet as it would enable the firm to establish its presence in the market convincingly. Competitive Analysis Every form of business has to face with competitors in the market. From the company’s viewpoint, competitors are those who primarily serve customers with similar products. With regards to this context, it can be stated that Boutique Outlet also has certain competitors in the market. The competitors also deal with similar products such as unique designed dresses and accessories for women. Boutique Outlet has to face with two types of competitors in the market i.e. primary and secondary competitors. Primary Competitors The primary competitors can be identified as the competitors that generally have vast expansion of their business over many cities and countries’ markets. Primary competitors generally capture the overall market and act as neutral player to every market. In other words, it is also stated that primary competitors are those who run their business globally. Considering the context, it is assumed that in marketing and selling its product in the market, Boutique Outlet will face competitors because before their entry already many boutique corporations exist in the US market. Among the existing boutique firms, three firms have been selected to measure the performance of Boutique Outlet. The three primary boutique firms are McKinsey & Company, Hip’Tique and Barnes (McKinsey & Company, “Consumer & Shopper Insights”; Hip’Tique, “About Hip’tique & its Owner”; & Top Shop, “About Us”). Boutique Outlet will analyze competitive advantages from the above mentioned boutique firms. The advantages are the existing companies are largely established amid the consumer segment in the US market and have vast experiences regarding the US market trends. The firms also have much idea and information about the customers’ behavior along with the demands of the customers which influence the market. Furthermore, it can also be assumed by the Boutique Outlet firm that the existing firms are multinationals and have stronger relationship with the customers. This relationship between the company and the consumers is based upon the products, because the products produced by the company satisfy the customers’ demand by a certain extent. Secondary Competitors Secondary competitors are those companies that generally hold particular markets and satisfy the demands of the customers at a maximum level. In other words, secondary competitors can be referred as domestic companies. With reference to the context, it can be stated that Boutique Outlet will meet with secondary competitors in the US market. Wild Blue, Jolie Miss Boutique and Steve Madden among the other secondary competitors have been considered to evaluate the advantages they enjoy over Boutique Outlet. The advantages include the aspects that these boutique companies produce their products only for a particular market. This nature of production helps the companies to satisfy their customers with higher level of quality. The aspect of providing quality products to especially a niche market has largely facilitated the secondary competitors to build a good relationship with the customers. However, Boutique Outlet will be introducing the similar product in the market, for which Boutique Outlet will have to pass through a tough time in marketing and selling its product along with creating a good relationship with the consumers in the market (Wild Blue, “Boutique”; Steven Madden, “About Steve Madden” & JolieMiss Boutique, “About Us”). Marketing Strategy After understanding the markets condition and the competitors’ advantages, Boutique Outlet needs to plan a strong marketing strategy in introducing its products in the market in an attempt to compete with the competitors for existence in the market. Boutique Outlet’s marketing strategies can be considered based on marketing mix (4Ps) in launching the products in the market. The 4Ps are price, promotion, product and place (Borden, “The Concept of the Marketing Mix”). Price is the primary factor of a product because to a certain extent the demand for a product depends on the price. The price of the product also highlights the cost incurred while manufacturing the products. Moreover, it also states about the profitability of a business. With reference to the context, Boutique Outlet aims to fix a suitable price for its products so that the customers could afford to buy the products. A suitable price also influences the customer to go for different substitute products present in a market. Promotion is another form of advertising for a product. Promotion is also called as a pertinent source of advertising, selling and publicity. In this process, it will help the company to serve with likeable features and to make use of the product to attract customers sufficiently. It will also help the Boutique Outlet to design its products according to the customers’ suggested or preferred designs, by which Boutique Outlet will be able to create a niche for itself in the market conveniently. Product also plays an effective role in the market. Product roles are mostly dependent on the quality and unique nature. Boutique Outlet aims to produce distinctive and good quality products as compared to the competitors’ product so that its products could satisfy the customers with more efficiency than other substitute products. Place is another aspect which also plays an effective role for the companies because a company has to select the location of deliverance of the offered products according to the place as well as to keep hold of the market demand the company needs to maintain a smooth flow of products supply. Boutique Outlet desires to uphold a strong supply chain management. However, the selected US market will help the Boutique Outlet to flourish and expand their business in future. This is because the demand for the boutique products in the US market is comparatively high. The products of Boutique Outlet will be served in the market from the outlet which is selected to be situated in New York, US. New York is recognized as a place with a number of renowned fashion based companies. It would benefit the new firm to attract consumers about its presence. This is because of the new business introduced in the US market and owing to the fact that it does not have any other sources of distribution since there are a small number of employees. Human Resource Requirements The sole proprietor form of business structure for Boutique Outlet is specified in below diagram: Operational Issue The business outlet will be owned by the owner of Boutique Outlet and the production unit location will be taken as rented. This is because the place of outlet cannot be changed repeatedly as it will affect the business in keeping hold of the customers however small production unit can be transferred. The estimated costs which will be incurred by the owner of Boutique Outlet in setting up the business are shown in the diagram. Information Technology The primary technological features which need to be brought by the owner of Boutique Outlet while starting the boutique business are computers (with MS Office Software), stitching machineries, all kinds of fabric material and iron along with computer. Financial Statement This statement will help the owner to estimate the expenses and fund requirements in starting the business. Estimated Cost at Starting Balance Sheet . Projected Income Statement Cash Flow Statement Works Cited Borden, Neil. H. The Concept of the Marketing Mix. Harvard Business School, 1984. Web. 18 Jul. 2012. Hip’Tique. About Hip’tique & its Owner, 2012. Web. 18 Jul. 2012. Hong Kong Exchanges and Clearing Limited, Industry Overview, n.d. Web. 18 Jul. 2012 JolieMiss Boutique. About Us, n.d. Web. 18 Jul. 2012. McKinsey & Company. Consumer & Shopper Insights, 2012. Web. 18 Jul. 2012. Steven Madden. About Steve Madden, 2012. Web. 18 Jul. 2012. Top Shop. About Us, n.d. Web. 18 Jul. 2012. University of Richmond. Intellectual Property and Transactional Law Clinic, n.d. Web. 18 Jul. 2012. Wild Blue. Boutique, n.d. Web. 18 Jul. 2012. Read More