Kashish boutique 97


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Kashish boutique 97

  4. 4. I have a great pleasure in presenting this MY BUSINESS PLAN OFKASHISH TRADITIONAL BOUTIQUES. I am grateful to the DR. RAJESH PATEL , without whom this plan wouldhave been a dream. He support in providing me all the necessary information, datahas a lion’s share in the success of this project.. Thanks are due to all those who have directly or indirectly or contributedtowards this project, which I may have missed. Signature: _____________________ (DENISHA M. GARDHARIYA) INDEX PARTICULAR INDEX 4
  6. 6. EXECUTIVE SUMMARYIn My Business Plan kashish traditional boutique, I and my Partners run a businessof clothing store. In current era everybody is conscious about their clothes becausethey know that firstly they will recognize by their wearings and outer look becauseof this, in this century no one business is such flexible and rapidly grow. So, Idecided to start this establishment in the market because it will flexible as permarket trend and also essential and one of viable business in the market. InKASHISH BOUTIQES we provide sarees, dresses also. My Business plan represents 6
  7. 7. information about products & services, financial arrangement, competitors,suppliers etc.MissionCompany MissionKASHISH BOUTIQUE is a store for the quality- and style-conscious consumer.Providing unique, eclectic and affordable product, we intend to generate a fair return tofinance continued growth and expanded community involvement.• To provide women with a boutique that offers a comfortable and approachable environment• To showcase quality, well-constructed fashions from prominent and cutting-edge designers• To offer a variety of beautiful and high-end fashion accessories• To help women learn what clothing and styles go best with their unique personalities 7
  8. 8. Keys to Success1. Having a good location in a high-shopping area2. Quality product and good relationships with vendors3. Outstanding customer serviceObjectives To maintain profit margins at 15-20% through close attention toexpenses and cost of goods sold • To drive awareness and build sales through mentions in both local print and the nations top fashion magazines • To earn 80% market share and become the number one ethnic Traditional wear apparel store • To receive a 50% profit margin within the first year. 8
  9. 9. • To have a customer base of 1,000 by the end of the first operating year.• To be an active and vocal member in the community supporting agricultural events, and equestrian organizations working with children. 9
  11. 11. OWNERS BIODATSR Name & Address Age Academic Experi Nature of CapitalNO. (Years) Qualificati ence responsi Contribu on bility tion 1. Miss. 22 MBA Fresh Personn 25% DENISHA M. el GARDHARIYA Junagadh 2. Miss. 22 M.B.A. Fresh Personn 25% RADHIKA el RAJPARA Junagadh 3. Mr. HEMAL 20 BBA Fresh Finance 25% GARDHARIYA Junagadh 4. Mr. VIPUL 25 M.B.A. 5year Marketi 25% NAR &Markt. ng Junagadh department 11
  13. 13. FEATURES & BENEFITSOne key feature that separates SUBHAM DRESSES from all other local boutiques andchain department stores in the area is our commitment to providing women of the stylish,quality clothing options. Because our primary concern will be ensuring our consumers arehappy with the fit and style of their purchase, we will provide products tailored to allshapes and sizes of women.Further, SUBHAM DRESSES will not just be a store that sells clothes. Our clientele willbenefit from an experienced, knowledgeable sales staff. Out of the gate, our goal is toimplement a superior customer service system. Beyond our friendly reception and aninviting atmosphere, It will also offer customers fashion information and advice. Ourtrained personnel will provide counsel that women simply cannot find at other clothingstores. Our qualified fashion-industry expertise will ensure our customers walk away withthe perfect outfit.Clothing for stylish womenTRADITIONAL BOUTIQUE will carry Ready-to-Wear (RTW) designerand casual/contemporary apparel & accessories for women, and will be theexclusive JUNAGADH. home of the German line,. In addition to the 13
  14. 14. fabulous SAREES line, TRADITIONAL BOUTIQUE will feature otherchoice selections by TRADITIONAL designers. The TRADITIONALBOUTIQUE customer is a busy professional woman who lives inJUNAGADH with a household income over 10000. She enjoys the boutiquefashions and wants a place where she can go to get services that meet herbusy lifestyle.ManagementWith over 5 years experience in marketing and retail, owner VIPUL NARhas gathered the expertise to complement and grow the business. Ouradvisory team holds expertise in retail accounting, retail merchandising,legal contracts, fashion and design. A detailed project plan has been createdand all tasks are on schedule. 14
  16. 16. • COTTEN SILKDRESSES • READY MADE • MATERIALSCHANIYA CHOLI • BANDHNI • NET • COTTON • HAND WORKCOMPETITIVE ASSESSMENTIn , Kashish traditional boutique there are no direct competitors offering ourunique services or products. In the market, the shops most closely competingwith Kashish Boutique are as follows: • Poshak dresses, which targets a younger demographic and specializes in natural fiber clothing. They also carry local art and jewelry. 16
  17. 17. • UTASAV, which targets younger women, specializes in offering trendy clothes.• Shital dresses targets older women within our target demographic, but specializes in the more homemade, old-fashioned style clothing.• Patel Place Boutique targets women within our target demographic as well, but they specialize in an affordable, folksy style of clothing with handmade sarees and embroidered dresses.• Second Time Around targets women and may overlap our target demographic slightly. However, they specialize in consignment clothing. 17
  18. 18. TARGET CUSTOMEKASHISH BOUTIQES is a business-to-consumer retail company. In target marketmarket focus on special group of people which will cover major or overall market.Young age girl are our clear target customers. However, we do realize that we will likelyattract some house wife and working women with our products. 18
  19. 19. MARKET DIVISION • Market Needs If you were to overhear women talking in a dressing room, you would more than likely hear them comment on something theyve tried on and question how they should wear it or what it will go with in their closet. Research has shown that women are stressed, have little time to shop, and would generally like help in determining the right clothes and styles to wear. With over 3 lacs JUNAGADH. women between the ages of 25-54 spending over 34 lacs in apparel each year, there are sure to be some mistakes made in clothing choices. Television shows such as Star Newss "What Not to Wear" and Styles "Fashion Emergency" clearly speak to a womans confusion about what looks best on her. Even women who can afford a professional stylist feel helpless and often jokingly request that their stylist come to their home every morning to help them get dressed."Within a decade, the companies that do the best job of marketing to womenwill dominate every significant product and service category." -FaithPopcorn One gender in particular influences the majority of the retailmarketplace: women. 19
  20. 20. [1] Women comprise 51% of the JUNAGADH populationand control or influence 81% of all household purchase decisions.[2] Women are now earning more college and masters degrees than men,which translates into more senior positions & higher pay. [3] Overall, women represent 47% of the total JUNAGADH.civilianworkforce and as that continues to grow, demands for their time alsoincrease.[4] Balancing work and family are the #1 concerns for women and almosthalf "hardly ever" take care of their personal needs; one out of five womenwould like to have time to do a little shopping![5]Research indicates that women approach retail shopping uniquely byevaluating purchases based on product and company information derivedfrom both personal and expert sources. Additionally, surveys consistentlyreveal that women buy based on the relationship they forge with a brand.[6] Statistics, studies, and our own personal experiences show us again andagain that excellent customer service lowers customer attrition rates, fostersexcellent word of mouth and most importantly, increases sales. The tablebelow shows that out of the ten characteristics consumers find important indeciding where to shop, four were attributed to customer service. 20
  21. 21. Clothes Shopping Behaviors• Spends over 25000 for clothes each year• Buys mostly SAREE and DRESSES• Looks for classic, basic items each season, with 1-2 trendy items• She cares about how she presents herself, enjoys fashion, and looks for quality over quantityCustomer needs, expectations and buying patternsThe TRADITIONALBOUTIQUE customer loves to shop and enjoys goingto boutiques. She is knowledgeable about designer fashions and tends toshop for seasonal wardrobes twice a year plus picks up various fashion andbasic pieces throughout the year. By offering fashionable accessories andwardrobe organization items, TRADITIONALBOUTIQUE will be able tograb a larger share of her wardrobe budget. She is used to coming into thestore and browsing through the clothing items and trying on what interestsher. She expects a warm and comfortable environment and nice dressingrooms. She enjoys being left alone but also enjoys the special touches ofpersonal shopping assistance and having the ability to special order items.Market expandingAs our company grows and our boutique earns a positive reputation, several opportunitieswill open to us. And we are considering some options already. Should we choose toremain a small local boutique, we will develop and grow our company by increasingexisting clothing lines and expanding our selection to include additional products such as 21
  22. 22. Men and children wares. Within five years, we will assess the potential for franchisingour stores in select locations.Additionally, as we build our business, we plan to develop our business all over Gujarat.we plan to develop one quickly and efficiently. We also see the potential for regional and/or national expansion at some point. 22
  23. 23. Direct Competition:• UTASAV Boutique• POSAK dresses• ROSHNI WARE• JYOTI BOTIQUEIndirect Competition:• All other Boutique Retailers 23
  24. 24. ALLOCATION OUTLINESIn our shop we sell our products by direct selling and purching fromwholesellers. We are not using market channel distributions. Our suppliersfrom ahemadabad, baroda, surat Mumbai, etc. 24
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  26. 26. PricingValue received is the key to pricing. The only way a store can have lowprices is to sell low-priced merchandise. Thus, what you do about the pricesyou charge depends on the lines of merchandise you buy and sell. It dependsalso on what your competition charges for these lines of merchandise. Youranswers to the following questions should help you to decide what to doabout pricing.Kashish boutique decide its price range medium to product and sometimesit charges high price . In our business we sell our product by credit cardsystem also. 26
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  28. 28. Customer Service PoliciesThe service you provide your customers may be free to them, but you payfor it. For example, if you provide free parking, you pay for your ownparking lot or pick up your part of the cost of a lot you share with otherretailers.Some competitor provide extra facilities like buy one get one free tocompete that strategy we provide them free fitting facilities to our customer.Sometimes we provide voucher facility and discount facility on huge or bulkbuying. 28
  29. 29. AdvertisingAdvertising was saved until the last because you have to have something tosay before advertising can be effective. When you have an image, pricerange, and customer services, you are ready to tell prospective customerswhy they should shop in your store.We use the local media like newspapers, television, and printers of directmail pieces for information about the services. 29
  30. 30. In-store Sales PromotionTo complete your work on marketing, you need to think about what youwant to happen after prospects get inside your store. Your goal is to movestock off your shelves and displays at a profit and satisfy your customers.You want repeat customers and money in your cash register.Customers will have more buying confidence and be more comfortable inyour store if they know they can afford to buy. Credit makes this possible.To encourage people to buy, self-service stores rely on layout, attractivedisplays, signs and clearly marked prices on the items offered for sale. Otherstores combine these techniques with personal selling.Personal attention to customers is one strong point that a store can use as acompetitive tool. they are interested in being served promptly andcourteously. Nothing is more frustrating to a customer than being ignored byan employee. how to greet customers, show merchandise, suggest otheritems, and handle customer needs and complaints. 30
  31. 31. PromotionThe following promotional tactics for generating buzz and awareness aboutDe Kliek will be implemented:• Personal selling and word of mouth via networks of friends, stylists and customers• Unique visual displays in storefront on a weekly basis• PR (local) of Boutique by email and letters• Direct mail such as postcard notices that are targeted specifically to the customer• Sales Promotion such as store events and bi-annual sales• Web Site• Advertising will be at a minimum with regular ad placements 31
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  33. 33. SALES STRATEGYKashish Boutique plans to generate sales via strategic marketing efforts.These concentrated efforts will be targeting new and returning customers aswell as single-visit tourist consumers. We will also implement a referralprogram rewarding customers who refer new customers with discountcoupons. Following our grand opening, we will conduct a direct-mailcampaign to targeted consumers that we have signed up through our in-storemailing program. The direct mailers will be comprised of 5,000 full-colorpostcard mailers. Each will include at 10% coupon. We will offerpromotional discounts and seasonal and clearance sales throughout the year.Kashish Boutique will accept cash and payment via major credit and debitcards. Cash layaway plans will also be permitted. Returns and exchangesmust take place within 30 days of purchase and receipts are mandatory.Our sales staff will include both co-owners and 2-3 part-times salesassociates. Our sales team will earn an hourly rate, plus a generouspercentage of commission from each sale. 33
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  35. 35. Website Marketing StrategyResearch shows that the number one reason people log on to the Internet isfor information. Kashishs strategy is to provide as much information aspossible on their current designers, fashions and style tips, as well as toutilize the appropriate search terms to deliver the most relevant click-throughs. Awareness of the website will be provided in local advertising,public relations efforts, customer emails, in-store signage & receipts as wellas direct mail and word-of-mouth.INTERNET STRATEGYAs the Internet has become a staple of American life and retailmerchandising, Kashish will have a viable Web site. We have secured thedomain name Kashish Boutique.com and will begin site development asfunds become available. Further, we plan to hire an established Webdesigner that will accept modest pay in exchange for future profit-sharing. 35
  36. 36. Foremost, we intend to showcase our brand, our clothing and providecustomers with the ability to purchase items online. As the site progresses,we will include features such as fashion advice, designer interviews,newsletters, and Internet-only specials. Eventually, we hope to establish andnurture an online social community where women can gather and discusstopics of the day, network and share clothing secrets. 36
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  38. 38. ORGANIZATIONAL STRUCTUREAs a small business, we will have a small staff. Both co-owners will assumeleadership roles within the company and will be responsible for dailyoperations, overseeing marketing efforts, buying merchandise and managinginventory and all other administrative duties. A small sales staff will assistco-owners with securing sales, assisting customers and general maintenanceof stock on the floor.LEADERSHIPME and MY PARTNER are co-owners and will co-manage KashishBoutique. However, daily responsibilities will differ. 38
  39. 39. One will manage the day-to-day operations including supervising staff,maintaining inventory and bookkeeping. VIPUL worked 5 year in the retailindustry including four years as a manager of an antique furniture shop.I will oversee the merchandise buying for the store as well as maintain akeen awareness of trends within the industry. I will also work with ourpublic relations firm to ensure superior marketing plans are in place andimplemented. HEMAL worked in the fashion industry in various capacitiesworking with designers, wholesalers and retailers for 2 years.STAFF MEMBERSKASHISH Boutique will employ a sales staff of 2 part-time employees.These positions are yet to be filled. However, we feel the labor pool is suchthat finding qualified employees will not be an issue. Our sales associateswill be paid an hourly wage, plus commission. Bonuses will be providedwith each year of service following an annual review to encourage employeeretention. 39
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  41. 41. TOTAL COST OF PROJECT Sr. No. Particular Amount 1. Total fixed Capital 1150000 2. Net working capital 360000 Total cost of project 1510000 41
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  43. 43. FINANCIAL ARRANGEMENT[i.] MEANS OF FINANCE Sr. No. Particular Amount 1. Loan from BOB 1100000 2. Own contribution 410000 43
  44. 44. PROFITABILITY & PRDUCTION[i.] SALES & PRODUCTION Sr. No. Details Qty. Amount 1. TRADITIONAL - 2250000 WARESALARY & WAGES Sr. No. Details Monthly amt. Yearly amt. 24000 1. Personnel department 2000 21600 2. I. Employees 1800 21600 II. Skilled workers 1800 28800 III. Unskilled workers 2400 48000 3. Marketing department 4000 54000 4. Finance department 4500 9000 5. Other staff 750 Total 207000 44
  45. 45. [iv.] ELECTRICITY CONSUMPTION Sr. No. Details Yearly amt. 1. Electricity 69600 Total 69600[v.] INTEREST Sr. No. Details Yearly amt. 1. INTEREST 134750 45
  46. 46. [vi.] REPAIR & MAINTENANCE Sr. No. Details Yearly amt. 1. Repair 1800 Total 1800[viii.] DEPRECIATION Sr. No. Particular Rate Amount 1. Building 10% 29000 2. Machinery 20% 53200 Total 82200 46
  47. 47. [ix] ADMINISTRATIVE EXPENSES Sr. No. Details Yearly amt. 1. TRANSPORTATION 2100 2. Telephone & Postage 1650 Total 3750[X.] SALES EXPENSES Sr. No. Particular Yearly amt. 1. Advertising expenses 1650 47
  48. 48. PROJECT SUMMARYSr. No. Particular Amount 1. Raw material 108000 2. Salary & wages 207000 4. Repairs & maintenance 69600 5. Rent & insurance 86400 6. Depreciation 82200 7. Interest on capital 134750 Estimated profit 1562050 Income tax 546718 Net profit 1015332 48
  49. 49. 10. Cash flow statement Sources Amount Application Amount Opening balance - Tax paid 546718 Cash on hand 360000 Interest 134750 Profit before tax 1562050 Depreciation 55600 Contingency 71150 Closing balance 12100 Total 1922050 Total 1922050 49
  50. 50. 11. Fund flow StatementSource Amount Application AmountOwn capital 410000 Land 500000Bank loan 1100000 Building 290000 Plant & Mach. 266000 Other assets 94000 Working capital 360000Total 1510000 Total 1510000 50
  51. 51. 12. Break Even point statementNo Particular 1st 2nd 3rd 4th 5th Total sales 2250000 2700000 3150000 3600000 4050000 Less: 367500 441000 514500 588000 661500 Vari. Cost: Contribution 1882500 2259000 2635500 3012000 3388500 Fixed cost: 320450 320450 320450 320450 320450 PBT 1562050 1938550 2315050 2691550 3068050 TEX 546718 678493 810268 942043 1073818 51
  52. 52. PAT 1015332 1260057 1504782 1749507 1994232Profit volume ratio = contribution × 100 Sales = 1882500 × 100 2250000 = 83.67%Break even point = Fixed cost × 100 52
  53. 53. P/V RATIO= 320450 × 100 83.67= 382993 53