LAVENDER is a new apparel store that aims to become the top apparel retailer in southern India by offering trendy, high-quality clothing for men and women. It plans to open its first store in Bangalore and seeks funding of 27.2 lakh rupees for start-up expenses and initial assets. Lavender's goals include gaining 50% market share in southern India within two years and achieving a net profit of over 1 crore rupees by the third year. It will focus on quality, design, sustainability and excellent customer service to differentiate itself from competitors.
3. ABOUT US
LAVENDER is a new apparel store that caters to new trends of fashion to the
World.
LAVENDR should always have the best customer offering in each and every
market. We offer collections that are wide-ranging and varied for women,
men
To us, design, quality and sustainability are not a question of price: we should
always offer inspiring fashion with unbeatable value for money.
Quality is a central topic, from initial idea to final product. It is our aim to
always exceed our customers’ expectations on quality.
4. OBJECTIV
ESSecuring start-up funding and subsequent funding through a combination of
investment and debt strategies.
To create a shopping environment that caters to the apparel needs of the
southern part of India (Bangalore ,Kochi ,Chennai)
To earn 50% market share and become the number one apparel store in
Southern part of India and achieve name recognition in the Southern part also.
To receive a 50% profit margin within the second year
To have a customer base of 1,000 by the end of the first operating year.
5. OBJECTIV
ES
To achieve a net profit of Rs.1,00,00,000 by year two and
Rs.1,50,00,000 by year three.
To be an active member in Charitable trust of India
6. LAVENDER recognizes that the idea of keys to success is based upon the
need for focus. To establish itself as a global leader, the company must
display extraordinary competence and intelligent foresight. By making the
company's keys to success the corporate vision, management can ensure
the success of LAVENDER.
KEYS TO
SUCCESS
7. KEYS TO
SUCCESSBecome the Industry leader in the branded urban apparel Industry.
Build a brand like Wrangler ,Levis and Zara
Offer clothing suitable for sizes from toddler to 5XL.
Establish and commit to "best practices" in all significant business processes,
including ethical production practices (no child labour), through extensive
training programs, tools, measurement, and sophisticated self-assessment
reporting systems.
8. COMPANY OWNERSHIP
LAVENDR is organized as a partnership among the six
partners of Zulfikhar, Vishnu, Vivek, Yahya, Yogitha
and Yeshwath
10. ASSETS
Non-cash Assets from Start-up Rs.10,50,000
Cash Requirements from Start-up Rs.1,00,256
Additional Cash Raised 0
Cash Balance on Starting Date Rs.1,00,256
TOTAL ASSETS RS.11,50,256
FINANCE
11. LIABILITIES AND CAPITAL
Liabilities
Current Borrowing Rs.0
Long-term Liabilities Rs.15,00,000
Accounts Payable (Outstanding Bills) Rs.0
Other Current Liabilities (interest-free) Rs.0
TOTAL LIABILITIES RS.15,00,000
FINANCE
13. START-UP
Requirements
Start-up Expenses
Rent Rs.1,00,000
Grand Opening Event Rs.2,55,750
Telephone & Utilities (3 months) Rs.41,750
Travel - Dallas Market Buying Trip Rs.70,250
Business Insurance Rs.60,929
Advertising & Promotion Rs.2,20,000
Store Fixtures/Decorations Rs.6,00,000
Computer/Cash Register Rs.80,650
Signage (Including Permits) Rs.30,619
Organizational Dues & Subscriptions Rs.25,000
Business/Office Supplies Rs.50,000
Other Rs.35,500
TOTAL START-UP EXPENSES RS.15,70,448
FINANCE
14. COMPANY LOCATIONS AND FACILITIES
LAVENDR will be located at 13-15, Windsor House, Brigade Road, Bengaluru,
Karnataka 560001. This space has 1,520 square feet and has been leased for
two years. This location is central to the Bangalore. We feel it is essential to our
initial and ongoing success that we locate ourselves in the heartbeat of the
Southern part of India. We also strive to create an atmosphere of acceptance
and community, as well as a retail environment where individuals can identify
and bond with their culture.
All business deliveries and shipments will be handled through the store. The
company office will also be housed at this location.
16. PRODUCT
DESCRIPTIONLAVENDR’s store is structured by having men’s clothing and women’s
clothing, each is subdivided in lower garment and upper garment and
complements
Women’s : LAVENDR produced a range with better fabrics and more “womanly”
cuts. LAVENDER Basic essential fashion-fix pieces and fashion for younger women
(Lightness, looser silhouettes and silky tops).
Men’s : LAVENDR has produced the range of lightweight cotton tops and print shirts
paired with cotton twill shorts (Hints of ethnic Asian touches like robes and beads which
provides hippie-bohemian detailing
Lavender mainly focuses on jeans for men and women
17. COMPETITIVE COMPARISON
The ‘Lavender Shopper Card' will entitle customers to a 15% discount after
ten purchases.
We will offer clothing to fit plus-size women and big and tall men.
We will create a sense of culture and bonding with the community by offering
products that combine all Indian Culture.
Our location is central to our target customer base.
We will maintain a detailed record on each customer, logging addresses, their
purchases, size, and brand for customer follow-up and in-house promotional
purposes.
18. FUTURE PRODUCTS
As we achieve and exceed our sales and profitability goals, LAVENDR
will add shoes, cosmetics as well as children’s clothing (LAVENDR
kids) and LAVENDR footwear’s to the product line 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
International level.
19. MARKET ANALYSIS SUMMARY
The primary target customer of LAVENDR will be the youngsters located in the
southern 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 foreigners in the area. As the
population of foreigners are continues to grow rapidly in the southern part of
India .we expect to receive the patronage of Foreigners as they are very loyal to
western apparel.
20. The last target customer of LAVENDR is listed as other. As popularity about the
store increases we expect to see an assortment of curiosity seekers, and local
residents from the community as well as seasonal purchasers during season.
MARKET ANALYSIS SUMMARY
22. 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 5% of our gross annual
sales.
Our promotions will always stay in tune with our company
objectives and mission statement.
MARKETING
STRATEGY
23. LAVENDER will maintain a flexible pricing strategy. We base the
product lines that we carry on their reputation and quality as
Indian and western wear apparel. Most of our lines come with a
suggested retail price that we will follow.
We will also utilize the standard practice of key stoning as well.
PRICING STRATEGY
24. LAVENDER 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 dollars.
•A press release kit will be sent to all major media outlets in India highlighting the
grand opening of the LAVENDER apparels . This kit will include a press release,
pictures of the interior space, colour postcard/flyer, and a business card.
•15,000 4x5 colour flyers/postcards will be distributed throughout the city of
Bangalore, Kochi, Chennai
•Spot radio advertisements on two local FM radio stations, Big FM, Radio Mango,
Sun Radio
PROMOTION STRATEGY
25. Our marketing programs will consist of the distribution of 15,000
colour flyers two weeks prior to our grand opening event.
DISTRIBUTION STRATEGY
Our retail location will be the foundation of building our customer base. We will
also manage a direct mail program that will focus on our top
50% customers spotlighting any in-house sales and promotions.
MARKETING PROGRAMS
26. •We will utilize the 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 14 day return/exchange policy to build trust
with our customers and maintain retention and loyalty.
SALES STRATEGY
27. Employees will be encouraged to work within their creative, physical,
and intellectual boundaries. All duties will be divided and delegated
according to strengths and weaknesses. At LAVENDER we will expect a
high degree of customer service skills and personality as this is
essential to our success.
We will assess the productivity and perform informal employees
evaluations of all employees every six months. These bi-annual
evaluations are conducive to the continued growth of our Business.
MANAGEMENT SUMMARY