Business Plan for an Independent Retailer for Designer Clothes - Essay Example

A Business Plan for Prints & Plains Retail Inc. April 22, 2008 Business Plan for Prints & Plains (An Independent Retailer for Designer Clothes) I. The Business Idea 1. Type Of Business Proposed And Trading Status Prints & Plains is an Independent Retailer of British Designer Clothes. Its Head Office and Main Branch shall be located at the Covent Garden, where it would compete with various designer shops such as Adolfo Dominguez, Esprit and Mango. Prints & Plains carries five designer brands and several fresh clothing lines from new and upcoming London Fashion Designers. Its focus is to constantly provide a wide array of fresh and sophisticated designs to its target market, which is London’s working women whose ages range from early 20s to late 40s. Prints & Plains targets to open two more branches at nearby cities within the first month of operations. One would be in Marlowe Arcade in Canterbury and in Westgate Shopping Centre at Oxford. Both stores shall carry the same products. Prints & Plains management shall also utilize the Internet as secondary Sales and Marketing channel, aiming to tap the rest of England as potential market for distribution of its products. The business will be financed with £ 100,000 by a sole proprietor and £ 200,000 through a business loan from a bank. Sales are estimated to reach about £ 52,000 average for the first and second year. A positive cash flow is projected at the end of the first year. 2. Range Of Products To Be Offered Prints & Plains shall offer products of various British Designers, from casual wear to formal wear, and to special attires depending on the season. As it caters mainly to women in their 20s and 30s who are already busy with their careers, it would present to this target market a wide array of choices in terms of clothing. It would offer practical get ups for the overly busy working women, and would carry stylish and fashionable ensembles as well. In particular, Prints & Plains shall carry the following items: a. Clothes – includes blouses, t-shirts, dresses, knits, pants (denims and slacks), jackets and skirts among others b. Intimate Apparel – includes underwear, negligees, night dresses and dressing gowns among others c. Shoes – includes boots, sandals, slippers, loafers among others d. Accessories – includes belts, jewelries, sunglasses, wallets, hats, gloves and scarves among others e. Jewelries – includes watches, gems and other trinkets f. Bags – includes shoulder bags, evening bags, travel bags and totes g. Scents 3. Geographical Location Covent Garden in London is popular for its shops, street performers, bars, restaurants, theatres and the Royal Opera House. It is an Italian style piazza holding restaurants, bars and fashionable boutiques and is known for being the capital’s premier entertainment and leisure destination. (Covent Garden Life.Com. 2007). In it are stores selling the country’s leading designer brands, and it has already a steady host of clients having been in operations for several years now. Marlowe Arcade in Canterbury and Westgate Shopping Centre at Oxford are both popular destinations for both local residents and tourists. They are also the best places to put up Prints & Plains branches as they are situated along busy districts where the hustle and bustle happens. 4. Anticipated Customers, Target Market and their Distribution Prints & Plains’s Target Market would primarily be working women in their early 20s to their late 40s, whose monthly salary range is from £ 10,000 to £ 50,000. They are the ones who appreciate trend and styles and would spend a considerable amount for nice clothing that would fit their lifestyle and their needs. They are the ones who would choose carefully the clothes they wear for work, for fun and for other daily activities. They are the ones who would watch for the latest trends in TVs and fashion magazines, and would have a know-how in terms of fashion. They have discriminating taste for fabrics and designs, and would not sacrifice quality for cost. Near Covent Garden are other commercial establishments and corporations where our target market is found. It is very proximal to the places where the target market frequents. Moreover, the nearby food establishments are magnet for the very same target market. Those who dine in the area would definitely take their time to visit the other stores within the garden, With its profile, Covent Garden is the perfect venue to catch the attention of the target market. Target Market Analysis 5. Statement Of Viability/ Keys to Success Prints & Plains shall rely on the following Internal and External Factors as its Keys to Success: a. Market Knowledge – As a Retail Outlet, it is crucial for Prints & Plains to be able to identify in particular the trends in the fashion industry to come up with a good mix in terms of its products. Being a retail store, its sole control over its products is the system by which each choice is made regarding the product lines. b. Service Quality - Prints & Plains shall sell its brand through the service that it offers. It will aim at giving 100% satisfaction to its market, with definite policies regarding after-sales product care and correct handling of customer complaints. c. Inventory Management – By identifying the right products to push, Prints & Plains would be able to manage its Inventory by acquiring only those that are sellable and keeping in stock only those that may be disposed for a short period. As fashion is very dynamic, Prints & Plains shall be careful in its inventory management, ensuring that all products are sold at a given time. d. Targeted Marketing Campaigns – Prints & Plains will prepare and implement promotional campaigns that will create noise in the market. It will utilize its Internet Marketing Channel to ensure that it would be positioned in the right market. e. Right Marketing Mix – Prints & Plains’s position as a mid to high end Retail Clothing Shop should enable it to penetrate the target market. London, Oxford and Canterbury and the rest of England through its Internet Marketing. Its primary location in London assures the company of a solid footing, as this placed is recognized to be Europe’s Best City for Business by the European Cities Monitor 2004. (Visit London. 2007) f. A systematic cash flow – 90% of the items to be sold would be on a consignment basis. Items shall be consigned within the period of 72 days, after which Inventory shall be studied and the excess items to be returned or immediately bargained to be able to move on to the next collections. If there would be items that need to be bought, the terms should be 30 days, with Prints & Plains paying the corresponding fees a month after the purchase to be able to maximize the potential sales. After which, the items shall likewise be sold at a lower price. II. Finance 1. First Year Budgetary Plan And Cash Flow Forecast CHART I CHART II CHART III III. Marketing 1. Marketing Plan Roughly about 35% of Prints & Plains’s monthly operational budget shall be allocated to Advertising and Promotional strategies alone. This includes expenses to be incurred in utilizing mainstream media particularly print advertising; other alternative media; and design and production of merchandising and promotional materials. Mainstream-wise, Prints & Plains shall utilize print advertising particularly through tie-ups with different magazines. Although this would not be the company’s primary vehicle in promoting its products, it would just aim to maximize its relationship with these magazines whose websites Prints & Plains shall be utilizing in its online campaigns. By alternative media, it means that Prints & Plains shall utilize media channels other than print, radio and TV and online marketing. Merchandising and promotional materials include posters, flyers and mini billboards for display in strategic areas in London and in neighboring cities. Specifically, Prints & Plains shall undertake the following strategies: Internet Marketing Internet Marketing has become popular because Internet access is becoming more widely available and used. Well over one-third of consumers who have Internet access at home report to using the Internet to make purchases (What is Internet marketing 2004). Moreover, statistics show that Internet users increase at a rapid rate that in five years’ time, it is predicted that 80% of United Kingdom’s population will have a computer with Internet access at home (Advertising 2007). Since Prints & Plains’s target market are working women who, most likely have internet access either at the office or at home, it chooses to primarily utilize internet marketing to promote its products. First and foremost, Prints & Plains shall create a website that contains pertinent details regarding the company’s profile and its products. It would contain the company’s mission-vision and a statement of what the company wishes to achieve market-wise. It would also present the profiles of the designers creating its product line. More importantly, it would contain an updated catalogue of the products being offered. Each designer shall be represented through his own sub web page. Products shall be sorted and categorized to make it easier for browsers to look at the collections and make their decisions on which to purchase. Online shopping would be available through tie-ups with affiliate credit card companies. Tie ups with shipment companies shall also be made to ensure that Prints & Plains would reach various places in UK and in other countries. The website shall be launched simultaneously with the main branch’s opening. Advertising in the listings on the Internet can provide a website with a number of viewers. As such, Prints & Plains shall do Search Engine Optimization (SEO) by subscribing to the most popular search engines such as Google and Yahoo, among others. Prints & Plains shall subscribe to advertising services such as Google AdWords, in which Prints & Plains’s website would appear immediately following key word searches from Internet browsers. This would prove to be cost-effective since Search Engines charge a company only whenever a person actually accesses its website. Further, this would guarantee that the advertising effort would reach the targeted market because one can limit its ad to appear only to people searching in a particular city, state or region. Prints & Plains would also do Online Banner Advertising, as this is an effective way to promote brand awareness. Online Banner Advertising allows a company to flash its brand name and other details to browsers upon prompting through specified keywords. Although this does not guarantee sales leads, it nonetheless promotes the Prints & Plains brand through its repeated appearance on the screen, consequently leading to brand awareness and recall. To save on cost, Prints & Plains would employ a “cost per lead” or “cost per acquisition” strategy to ensure that it only pays for quality viewers or for browsers who actually expresses interest by logging in Prints & Plains’s website. Prints & Plains would secure numerous key words to maximize the opportunity to flash its banners to Internet browsers. Prints & Plains will also initiate a tie up with affiliate magazines, particularly Elle Magazine’s web site; to reach this publication’s already captured audience. Since Elle targets the same market, it would be easier to create a client base among those already subscribed to Elle Magazine. Prints & Plains shall arrange to create a sub page or hyperlink in Elle Magazine’s web page, create a link therein which automatically directs browsers to Prints & Plains’s official website upon clicking. Word-of-Web/ Online Promos Word-of-Web is actually a modified version of Word of Mouth Marketing, in which information is passed through verbal means. Word of mouth is typically considered a face-to-face spoken communication, although phone conversations, text messages and web dialogue, such as online profile pages, blog posts, message board threads, instant messages, chat exchanges and emails are also considered word of mouth. This might be informal, and non-quantifiable, but it is also a personal means by which information can be endorsed from one satisfied customer to a potential customer. Prints & Plains would seek to further modify this means of communication by coming up with rewards for every referral made through its official website. Prints & Plains shall launch the “Prints & Plains Exclusive Circle’, a club exclusive to registered members who have provided their email addresses and other contact details for regular updates on Prints & Plains’s products. Club members may be considered satisfied clients, who may have, at one point or the other, purchased Prints & Plains products, or at the very least, repeatedly browsed through Prints & Plains’s official website. Prints & Plains would capitalize on the fact that these people who have actually seen, experienced and enjoyed the company website would have great influence when spreading the company’s products and offers through word-of-mouth. Registered members shall be given rewards or downloadable promo coupons for every 10 persons referred. Referral would mean that the club member has provided contact information regarding their referrals. Contact information such as email addresses shall be used to invite the referred customers to browse through Prints & Plains’s website or visit the branch. The registered member who provided referrals, meanwhile, may enjoy discounts for every purchase of products either at the Prints & Plains branch or if they purchase online through the use of the downloadable promo coupons. In addition to this, part of the efforts involved in word-of-web advertising is the use of direct mailers to be sent to club members and their referrals. Exclusive invitations to fashion shows and galleries, invitations to special promotions shall be given to these referrals to further ignite their interest in Prints & Plains’s products. Merchandising and Promotional Materials Prints & Plains shall further convey its message to its target market through using posters, leaflets and mini billboards as its media. These materials shall carry the company’s brand message “Prints & Plains Brings You British Lifestyle” and shall feature teasers of the clothing line that Prints & Plains carries. Particular attention shall be given to photo shoots that would feature the latest designs so that these materials would definitely catch the attention of onlookers. Further, the ads should adhere to Prints & Plains’s key message, which is classy, sophisticated, yet trendy and youthful looking. The layout should represent class and elegance, and should be an embodiment of the Prints & Plains Lifestyle. Mini billboards shall be displayed at areas where high foot traffic is present. And since Prints & Plains’s target market includes working women, these mini billboards and posters shall be displayed at bus stops in main avenues like in Oxford Street, where a lot of working women pass by on their way to work and on their way home. Promotional materials would also be displayed in highly crowded places waterloos, subway stations among others. Design and production of these materials would constitute the remaining 30% of the overall advertising and promotional budget. A bigger portion of this allocation shall be used for the services of a good layout artist and photography team to ensure that the company’s key message is delivered right through Prints & Plains’s target market. These strategies were made in close reference to Prints & Plains’s marketing mix. Pricing-wise, subscribing to relatively low-cost advertising consequently leads to competitive pricing of Prints & Plains’s product line up. Promotions-wise, utilizing Internet marketing provides Prints & Plains with the opportunity to touch base with its target market and interact with them on a more personal level. Interacting with customers online, particularly through interactive activities such as online surveys and the like through the Prints & Plains Exclusive Circle gives Prints & Plains the chance to collect valuable feedback regarding its product line up. This enables management to be in constant check whether the products being carried continue to be competitive. This way, the management would be able to keep track of the needed improvements and move on to achieve an distinct advantage compared to competitors so that the target market may prefer patronizing its products over other retailer stores. As a whole, Internet Marketing would definitely play a big role in showcasing Prints & Plains’s product line up in the market since Prints & Plains has only one branch to physically carry and showcase its merchandise. IV. Summary Prints & Plains wishes to position itself as the preferred retail outlet for London’s working women. As such, it will utilize every opportunity available to be able to penetrate the target market and gain revenues to continue its operations. To meet its corporate objectives, Prints & Plains shall maximize the capital investments and ensure a positive cash flow through meeting targets and creating a workable profit and loss chart to monitor the transactions. Budget is tight for the first year and as such, management shall be more than careful in its decision making for the business. Employees shall carefully be chosen and the owner shall make sure that each personnel are oriented towards achieving its corporate goal which is to start gaining profit by the end of the first year. Competition would be very stiff with the presence of various stores that have already established their presence in the three shopping malls/ arcades mentioned. However, London, Oxford and Canterbury are places that are very viable for establishing this type of business, and Prints & Plains is very positive that it can tap the target market to be able to take a share of the pie so to speak. Prints & Plains is also confident in being able to make gains through its Internet Business since this type of sales channel is very popular among the target market. Its Marketing efforts shall be intensified to ensure that the corporate message is brought across the target market. To cap this off, Prints & Plains wants to achieve two things with the business: to share style, lifestyle and fashion through its quality products and to gain profits to ensure presence in the market for a long period of time. Works Cited Covent Garden Life.Com.. January 1, 2008, http://www.coventgardenlife.com/info/covent_garden.htm Visit London. December 28, 2007. http://business.visitlondon.com/why_london/business_p2.html Hawes and Curtis. January 3, 2008. http://www.hawesandcurtis.com/ The Building Regulations 2000. January 9, 2008. http://www.opsi.gov.uk/si/si2000/20002531.htm The UK’s E-Commerce Regulations. January 10, 2008. http://www.out-law.com/page-431 Read More