Entrepreneurship Management - Project and Case Study Establishing an Apparel Brand

1. Presented By:
Abhishek Raj
Sarthak Sagar
Shriya Arora
Sunil Kumar
DFT-VI
NATIONAL INSTITUTE OF FASHION TECHNOLOGY, CHENNAI
DEPARTMENT OF FASHION TECHNOLOGY
Entrepreneurship Management
End Term Jury
Project on
Establishing An Apparel Brand
“Monk Inc.”

2. INTRODUCTION
• “Monk Inc.” is a brand that we plan to open that will cater to the present
and upcoming youth focussing on their ideas that will be imprinted on the
products to be produced.
• Our main motive is to position ourselves at the top of retail store and online
servicing for this particular market.
• We know we aren’t the first one to start such a business but we will try to be
the first ones to provide best quality at the most affordable prices.
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3. OBJECTIVES
• To create a shopping environment that is highly acceptable and liked by the
youth that we are targeting on.
• To earn maximum market shares and become number one in Men’s T-shirt
brands.
• To create such a relationship with our customers that we achieve maximum
brand loyalty.
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4. MISSION
• Our mission is to emerge as a brand that provides with a variety of clothing
for men, women and children and to provide the client with best quality at
affordable prices for every class in the society.
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5. KEY TO SUCCESS
• Carry an assortment of sizes
• Create an atmosphere of hospitality for the customers.
• Advertise and promote.
• To have a specific section of our brand in small MBOs and also in small
towns.
• Continuous review of inventory and sales.
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6. COMPANY SUMMARY
• “MONK INC.” will be organised as a partnership among the four partners:
Abhishek Raj, Sarthak Sagar, Shriya Arora and Sunil Kumar.
• All merchandise will be purchased according to the company's mission and
customer focus of outfitting all sizes.
• The Brand will run according to the MBOs and online stores collaborated
with.
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7. START- UP SUMMARY
• Firstly we will have a capital which will be a contribution of all the
partners.
• Secondly the designs will be selected keeping in mind the market and
clients to be targeted.
• Thirdly we will place the order prior enough to have our inventories
ready at least 3 months before it reaches the outlets.
• Fourthly we will distribute our products to the MBOs as well as online
stores.
• Lastly a successful operation so as to build a loyal customer base.
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8. PRODUCTS
• Our products will be such that relates to the minds of the client ranging
from basics to trendy styles.
• We will be purchasing through sales representatives and manufacturers in a
variety of sizes, colours and style to fit our target market base.
• The greatest percentage of merchandise will be in apparel, followed
by accessories.
• Management will rely on customer feedback, suggestions, and sales reports
to introduce or eliminate certain styles and sizes.
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9. PRODUCT DESCRIPTION
• “MONK INC.” will provide a selection of T-shirts from a variety of
styles and construction techniques.
• The variety in styles will include round-neck, V-neck and polo’s. The
various construction techniques will include
- Different fabric composition
- Printing
- Embroidery
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10. COMPETITIVE COMPARISON
• “MONK INC.” has a number of advantages that will allow us to build our
brand identity, add value to our merchandise and build a loyal customer
base while standing apart from our competitors:
- It will offer the best quality at completely affordable prices that will be
acceptable for people from all classes of the society.
- It will offer clothing for every size including the plus sizes and also for tall
men.
- Introducing a shopping card that will give 15% discount after 10
purchases.
- The location will be central to target customer base.
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11. SOURCING
• For this knowing the state of mind and thinking of our clients for the
graphics on the t-shirts we thought of organising design and logo making
competitions in schools and colleges like NIFT, NID so as to know what
they consider as trend and style. The best designs selected can be used for
implementation
• Then these designs along with the pattern and method of construction as a
complete tech-pack will be listed down and the order will be placed.
• The order will be placed to the manufacturer in or nearest to the city where
the products are to be sold. This will reduce the transportation costs, also
reducing the risk of loss or wastage or damage.
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12. FUTURE PRODUCTS
• As we achieve and exceed our sales and profitability goals, Monk Inc.
will add women’s and men’s accessories to the product line and also
Monk Inc. western outfits for women and men. We will expand our
line of brands with those that have been repeatedly requested by our
customers. An e-commerce website will also be created to increase our
distribution channels and expand our customer base to a national level.
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13. MARKET ANALYSIS SUMMARY
• The primary target customer of “Monk Inc.” will be the Youths. It will be
located in the small towns in northern part of India. As we are situated in
the epi-center of their residential community we believe they will make up
the largest percentage of our customer base.
• The secondary target customers are the Youths of metro cities, mainly in
Delhi. As the population of youths and students in Delhi continues to grow
rapidly we expect to receive good response as they are very loyal to casual
apparel.
• As popularity about the brand increases we expect to see an assortment of
curiosity seekers, and local residents from the community as well as
seasonal purchasers during festive season.
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14. MARKET SEGMENTATION
• The youth population is concentrated heavily in the cities we are targeting
upon therefore leading to the highest concentration of our customer base.
• The youth community, which is a growing population in the community in
which most MBOs are located, has statistically shown to be loyal to the
major western brands such as Lee, Wrangler etc.
• The last area of potential customers is labelled as "other." Because Monk
Inc. offers a variety of casual wear apparel, along with accessories we feel
that we will attract many curious shoppers. Our ambience and customer
service will make them repeat customers.
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15. TARGET MARKET SEGMENT STRATEGY
• The goal of Monk Inc. is to serve the local small town youth
community that have difficulty finding casual clothes that fit their smaller
frames. We will also serve the student community which tends to have a
slimmer yet shorter frame.
• Both of these markets are underserved in major retail outlets.
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16. MARKET NEEDS
• There are several important needs in the casual wear apparel business that
are being either underserved or not met at all. Monk Inc. plans to meet and
service those needs.
• Monk Inc. will provide a large assortment of sizes to compliment
the various body shapes and sizes of the ethnic community. This is a size
segment that is missing throughout the larger casual wear apparel retailers
in the city.
• Focus and attention to customer's personal preferences and customer
retention will be given high priority.
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17. MARKET TRENDS
• Millions of people around the world instantly recognize and identify with
casual apparel. It is synonymous with India and is a true classic.
• Casual wear has risen in modern eras. There will always be a future for
casual apparel. Within the last two years the north and east part look has
made a comeback in the fashion industry like Bihar, U.P etc. Monk Inc.
intends to use its place in the community to heighten the awareness of the
Indian youth, East India, as well as North East.
• With the increase of participation by professional Indian youth icon such as
Bollywood celebrities, sports men etc. more people are becoming aware of
brands and good quality apparel products.`
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18. MARKET GROWTH
• Market growth will be less in starting stage because it will take time to
customers to trust any new brand. Once the customers will get loyal or
addicted to the brand market growth will automatically increase year by
year.
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19. INDUSTRY ANALYSIS
• Casual wear apparel retailers are made of several kinds of stores:
- Multi Brand Outlets (MBOs): The majority of casual wear apparel is sold
through small family-run speciality stores that are located in or near
neighbourhood communities. 85% of the purchasing statistics for casual
apparel is derived from these locations.
- E-commerce Website: These are large stores mass market and sell to
hardcore enthusiasts as well as the local tourists and those who purchase
only during festive season or off season discount purchase.
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20. COMPETITORS
• There are no such specific competitors for Monk Inc., every brand who are
selling t-shirts or apparel products are the competitor for us.
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21. STRATEGY AND IMPLEMENTATION SUMMARY
• Monk Inc.’s primary goal is to provide quality apparel to the
customers of small town at reasonable price. The major apparel
retailers have left a hole in this market by not investing in small towns
because of their high priced garments and less consumers.
• Our intention is to gain 80% of this market share by focusing on our
niche positioning, neighbourhood location, brand that we
sell, hospitality, special promotions and most important customer
satisfaction.
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22. COMPETITIVE EDGE
• The Monk Inc.’s Shopper’s Database will give the customer a 15% discount
after ten purchases.
• Our location both online and in multi brand outlets will offer more access to
our target customer base.
• We will offer new print designs, hobby based t-shirts and multiple designs
in basic solid colours.
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23. MARKETING STRATEGY
• Our marketing strategy will focus heavily on sales promotion, niche
positioning in the market and customer service with loyalty and retention in
sales.
• The marketing budget will not exceed 15% of our gross annual sales.
• Our promotions will always stay in tune with our company objectives and
mission statement.
• Promotions will always take care of the customers need in order to retain
sales.
• Quality at reasonable price will be the main focus to build trust in customers
and to make them brand loyal.
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24. PRICING STRATEGY
• Monk Inc. will maintain a flexible pricing strategy. We base the product
lines that we carry on their reputation and quality. Most of our lines come
with a suggested retail price that we will follow. We will also utilize the
standard practice of odd pricing as well.
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25. PROMOTION STRATEGY
• Monk Inc. will follow an aggressive yet creative promotional plan. This will
allow us to focus directly on our target customer while still being
conservative with our advertising money.
• We will ask the small multi brand outlets to use our products in their visual
merchandising and to place our products in such a manner that it will appear
unique in crowd in order to attract the customers.
• Banners will be placed at main points of the town and places where youths
hangout most.
• Advertisement through popular Facebook pages and fashion blogs.
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26. DISTRIBUTION STRATEGY
• Our retail location and online location will be the foundation of building
our customer base. We will do a market analysis of what type of products
are sold more in which area and will distribute products accordingly.
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27. MARKETING PROGRAMS
• Our marketing programs will consist of the distribution of colour flyers at
multi brand outlets and placement of banners prior to our grand opening
event.
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28. SALES STRATEGY
• We will utilize the Retail ICE POS software with every sales transaction.
With each purchase the software will record and maintain in its database the
customer's name, address and purchases. This information will be used with
our direct mailing program to focus on our top 50% of customers.
• We will offer a 15 day return/exchange policy to build trust with our
customers and maintain retention and loyalty.
• Free basic t-shirt will be provided to customer with a purchase of three t-
shirts. (Except basic)
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29. SALES FORECAST
• The following table and chart give a highlight on forecasted sales. We
expect sales to start off conservatively and increase extensively during the
Durga puja and Diwali shopping season in northern India and during Pongal
and Onam in southern part of India. Monk Inc. has planned for a rate of
growth at 15% for the first year as we build name recognition and status in
the community. In the second and third year we look to see an increase of
revenue of 20% as we gain a larger percentage of the market share and
increase our customer base all over India.
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30. SALES FORECAST
YEAR 1 YEAR 2 YEAR 3
Unit Sales
Clothing(pcs) 1500 3000 6000
TOTAL UNIT SALES(PCS) 1500 3000 6000
Unit Prices Year 1 Year 2 Year 3
Clothing INR 350 INR 350 INR 400
Sales 1500 pcs 3000 pcs 6000 pcs
Clothing INR 5,25,000 INR 10,50,000 INR 24,00,000
TOTAL SALES INR 5,25,000 INR 10,50,000 INR 24,00,000
Direct Unit Costs Year 1 Year 2 Year 3
Clothing INR 135 INR 135 INR 135
Direct Cost of Sales INR 2,02,500 INR 4,05,000 INR 8,10,000
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31. FINANCIAL PLAN
• The growth of Monk Inc. will be moderate and the cash balance will always
be positive. Being a retail environment we will not be selling on credit. We
will accept cash, cheques, and all major credit and debit cards. Marketing
and advertising will remain at or below 15% of sales. We will continue to
reinvest residual profits into company expansion, and personnel.
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32. Manufacturing Budget
:
Jan Feb Mar April May June July Aug Sept Oct Nov Dec
Total Demand 100 100 200 100 150 150 150 150 100 100 100 100
Inventory 10 10 20 15 15 10 10 10 10 5 5 5
Average for sale 100 100 200 100 150 150 150 150 100 100 100 100
Initial Inventory 0 0 0 0 0 0 0 0 0 0 0 0
Total Sales 100 100 200 100 150 150 150 150 100 100 100 100
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33. Operational
Budget:
EXPENSE Jan Feb Mar April May June July Aug Sept Oct Nov Dec
Production 16,500 16,500 33,000 17,250 24,750 24,000 24,000 24,000 16,500 15,750 15,750 15,750
Rent For Service 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000
Utility Charges 450 450 450 450 450 450 450 450 450 450 450 450
Advertisement
Charges 10,000 10,000 5,000 2,000 5,000 2,000 2,000 5,000 5,000 5,000 5,000 5,000
Insurance 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000
Depreciation 0 0 0 0 0 0 0 0 0 0 0 0
Office Expense 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000
Total Expense 30,950 30,950 42,450 23,700 34,200 30,450 30,450 33,450 25,950 25,200 25,200 25,200
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34. Pro forma Income Statement:
DATA 1st Year 2nd year 3rd year
Sales (Packages) 5,25,000 10,50,000 24,00,000
Total Expense 3,58,150 7,16,300 14,32,600
Net Profit 1,66,850 3,33,700 9,67,400
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35. 0
500000
1000000
1500000
2000000
2500000
3000000
1 2 3 4
Break Even Analysis
DATA Sales (Packages) Total Expense Net Profit
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36. SWOT ANALYSIS FOR OUR INDUSTRY:
• Strengths :
- Affordable prices
- Best quality
- Accessible to all
- For all body types
- Catchy for youth
- Sales staff with strong knowledge of the products
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37. SWOT ANALYSIS FOR OUR INDUSTRY:
• Weaknesses:
- Few customers
- Will take more time for popularity
- High investments for advertisements
- Less varieties
-Low profits
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38. SWOT ANALYSIS FOR OUR INDUSTRY:
• Opportunities:
- Similar products on the market are not as reliable or are more expensive
- Products could be launched into the market on some special occasion or
festival
- Customer demands- have asked sales staff for such products
- Build a strong customer relationship for more loyal customers
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39. SWOT ANALYSIS FOR OUR INDUSTRY:
• Threats:
- May or may not be accepted by the clients
- Competitors come up with similar products with low prices
- Competitors launch a new advertising campaign
- Competitor planning to open shop nearby
- Low prices as compared to already existing brands might be considered as
products of inferior quality
- Loss might be incurred due to fewer sales.
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40. REFERENCES
• http://www.bplans.com/clothing_retail_business_plan/executive_summary_
fc.php
• http://en.wikipedia.org/wiki/SWOT_analysis
• http://articles.bplans.com/swot-analysis-examples/
• https://seller.flipkart.com/?utm_source=Flipkart&utm_medium=RHS&utm
_campaign=Homepage%20RHS
• http://sellon.paytm.com/
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