Pinky Department Store - Essay Example

Running Head: Business Plan Proposal Business Plan Proposal for Pinky Department Store I. The Business Idea A. Type Of Business Proposed And Trading Status Pinky Department Store is an Independent Retailer of British Designer Clothes. Its Head Office and Main Branch shall be located at the Covent Garden in London, where it would compete with various designer shops such as Adolfo Dominguez, Esprit and Mango. Pinky Department Store 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. 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. B. Range Of Products To Be Offered Pinky Department Store 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, Pinky Department Store shall carry the following items: Clothes – includes blouses, t-shirts, dresses, knits, pants (denims and slacks), jackets and skirts among others Intimate Apparel – includes underwear, negligees, night dresses and dressing gowns among others Shoes – includes boots, sandals, slippers, loafers among others Accessories – includes belts, jewelries, sunglasses, wallets, hats, gloves and scarves among others Jewelries – includes watches, gems and other trinkets Bags – includes shoulder bags, evening bags, travel bags and totes Scents Smaller departments shall carry household items but this will comprise a small ratio of the store’s total product offerings C. Anticipated Customers, Target Market and their Distribution Pinky Department Store’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. Target Market Analysis 1. Statement Of Viability/ Keys to Success Pinky Department Store shall rely on the following Internal and External Factors as its Keys to Success: 2. Market Knowledge – As a Retail Outlet, it is crucial for Pinky Department Store 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. 3. Inventory Management – By identifying the right products to push, Pinky Department Store 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, Pinky Department Store shall be careful in its inventory management, ensuring that all products are sold at a given time. 4. 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 Pinky Department Store 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. 1. Finance D. First Year Budgetary Plan And Cash Flow Forecast 1. Marketing E. Marketing Plan Roughly about 35% of Pinky Department Store’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. Specifically, Pinky Department Store 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). Since Pinky Department Store’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. Pinky Department Store 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. Pinky Department Store shall arrange to create a sub page or hyperlink in Elle Magazine’s web page, create a link therein which automatically directs browsers to Pinky Department Store’s official website upon clicking. Merchandising and Promotional Materials Pinky Department Store 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 “Pinky Department Store Brings You British Lifestyle” and shall feature teasers of the clothing line that Pinky Department Store 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 Pinky Department Store’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 Pinky Department Store Lifestyle. Mini billboards shall be displayed at areas where high foot traffic is present. And since Pinky Department Store’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. 1. Summary Pinky Department Store 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, Pinky Department Store 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. Reference List Visit London. April 29, 2008. http://business.visitlondon.com/why_london/business_p2.html Hawes and Curtis. April 29, 2008. http://www.hawesandcurtis.com/ What is Internet Marketing 2004. Retrieved April 29, 2008 from http://www.what-is-net.info/what-is-internet-marketing.html?gclid=COCs9JiE5YoCFQQeTAod5w7UyA Read More