Rent attire the project

STUDENTS OF IU
Rent Attire
Lets Agree To Be Convenient
7/13/2013

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Table of Contents
Executive Summary ............................................................................................................................................... 4
Company Description........................................................................................................................................................ 7
Products and Services ................................................................................................................. 9
Marketing Analysis..................................................................................................................... 9
Strategy & Plans ................................................................................................................................................................13
Operational Plan Summary....................................................................................................... 15
Management Team.................................................................................................................... 17
Risks and Mitigation Plan......................................................................................................... 17
Financial Plan Summary........................................................................................................... 18

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Group contributions:
Adeel Hafeez as a CEO of company has done the following contribution in the report:
 Company description
 Industry description
 Product
 Executive summary
Ali Ahmed as a CFO of company has contributed the following parts in report:
 Financial statement
 Balance sheet
 Net present value
 Strategies
 Risk and mitigation plans
M.Owais Khalid as a CMO of company contributed following parts in report:
 Market analysis
 Customer need
 Marketing research
Syed Muneeb Ali as COO of company has contributed the following parts in report:
 Operational summary
Mursaleen iqbal as an IT manager and public relations manager has completed the following
parts of report:
 Long term goals
 Strategies

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Executive Summary:
Market Need:
Basically with our business we are going to solve one of the major problems of the people which
they are facing during their weddings time, and that is we are giving weddings dresses on rental
basis, so that people can be able to get good clothes on reasonable rent. The cost of such type of
attires is a major problem for the people and also a major concern in this increasing inflation, and
on this point we will try to capitalize.
Opportunity Size:
The opportunity of this business is quite big because we are bringing a new way in the clothing
industry, so as a first mover, it will creates some opportunities for us which helps us to become
the market leader and also it will create opportunity for the new firms as well.
Competition:
As mentioned above that it is a new way in the industry, so it will definitely attract many new
firms to enter in the industry and become our direct competitors. Apart from those, the people
who are currently selling their wedding attires to middle and lower classes are our indirect
competitors. So we will try to attract that audience to ourselves by giving them more value in
lesser amount of money.
Our Solution:
Our main competitive advantage will be that we will gain first mover advantage in the market.
Being the first mover we will become the market leader. Our product is entirely different from

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the existing products in the market in the sense that we are giving good and valuable wedding
attires which are also relatively expensive for the middle and lower class people on reasonable
rents.
Go to market strategies:
To market this idea we have decided to offer some discount to our potential customer. And in
next 2 years we also have to open our stalls in different universities and expo center. As we are
new in this field and it is coming first time in Pakistani market so initially we purchase some
clothes and display on our stores. On each clothe we take 30% of profit on 100% cost of that
clothe, as we are giving the opportunity of clicks and bricks to our customers so it’s up to them
they can order us through website or take from our stores.
Business Model:
Our main sources of income will be:
 There will be physical stores, where people can come and place their orders and in after
the completion of the order, we will charge the rents accordingly.
 The second source will be the online source, we will create a website an e-commerce
website where people can make orders and give the rent in return on the choice of their
attire.
Our Team:
The key people behind this entrepreneurial venture are:
Adeel Hafeez (CEO)

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Ali Ahmed (CFO)
Muhammad Owais Khalid (CMO)
Syed Muneeb Ali (COO)
Mursaleen Iqbal (IT & Public Relation Manager)
Because the idea is generated among the above mentioned members, so they are the first and
for most choice to make this idea work, if other members will required, so we will hire
according to the situation.
Risks:
There will be many factors, which will create hurdles in executing in our business. The biggest
among them will be the increasing inflation and also the increasing rate of crimes in Pakistan,
because for the safe delivery of our product, the law and order situation plays a very vital role,
also the fuel price will be another factor, but these are the external factors, which are beyond our
controls.
Financials:
Initially the requirement of our project would be small as we see that our project is low
investment project. We need approximately 1,500,000. As this is a new venture so it will
definitely have some amount of loss in the beginning, but as soon as we proceed further, the loss
will be minimized and the profits will be started to come.

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Company Description
Introduction
The business or the idea was founded by one of our team member and it is a gap which we are
filling and most suitably a problem which we are solving by our solution. We are targeting lower
class and also the middle class as our target audience and it is the solution for those people. As
we know that marriages are very costly and important occasions for a family and they want to
fulfill each and every task related to it perfectly. But in this situation of high inflation, lower and
middle classes mostly find it difficult to purchase the dresses of the brides or grooms on a
reasonable prices, because mostly they thought that this dress will be used for a couple of times,
so why spend so much money on it. So here we are proposing a solution for that problem, we
call it “Rent Attire”, and it is basically a rental store on which people can have their brides and
grooms dresses for their weddings on rents, they don’t need to buy those expensive dresses but
only pay rent and can wear the best dresses for which they were always dreaming, and make
their important day happy and also memorable.
We are planning to open a physical as well as an online store form where we will operate. We
didn’t target the upper class as our target audience but we are planning for them that they could
sell their clothes to us on reasonable prices related to such occasion, so we are targeting the
upper class as our suppliers. Not only for the upper class, if anyone else who wants to sell their
clothes to us, they are most welcome. We are also planning to give our target customers as much
benefits as we can, we can provide the dresses at the door steps of our customers and also we
will pick up the dress from their doorsteps, they don’t need to worry about that, and don’t need to
pay extra charges for that. They only need to do is that they come to our store and place their

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orders (at least 10 days before the occasion) and after fulfilling all the requirements, they don’t
need to worry about anything regarding clothes.
Strength and Core Competencies:
Our biggest and major factor of success will be our first move advantage. Being a first mover we
will be able to set standards and can be able to become the leader in the market. We have a team
having experience and skills related to technical, financial, marketing which brings strength and
experience in our business.
Industry Description
The people who are our target audience are currently buying from the big markets located in
various parts of our city, like Tariq Road, Bahadrabad, and Clifton. The shops in those markets
from where our target people buy their wedding dresses will be our main competitors, and we
will enter in their industry. The size of the industry is quite big in terms of revenues but as we are
bringing a new way in the industry so a number of firms will enter in the industry gradually. One
of the major reasons to enter into this industry is the growth rate or the increasing trend/number
of wedding in the country. The number of weddings for the past several years increases
tremendously, and due to that the buying decisions and the patterns of buying of the lower and
middle class people are also changed. This is the reason we are targeting those people and this
industry. Also this increment is the major factor for the success of many firms operating in this
industry. As this a new thing which we are trying, so we are expecting a large number of firms to
be enter in the business similar to us in times to come.

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Product
As we are giving people the solution of their problem, which they are facing in this era of high
inflation. We are giving them a new way of thinking about their decision regarding their wedding
clothes. As we are doing it physically for the first time in Pakistan so ultimately we are gaining a
first mover advantage. Also we are planning to provide as much benefits to our customers as we
can. We will pick from their doorsteps and also we will provide the product on their doorsteps,
so they don’t need to come to our store very frequently, they just need to place their order first
and after that all the responsibilities will be ours. Because fulfilling the customer requirements
will be our first priority. Because here our duty is not just to make our customers but our real
duty will be to fulfill the customer’s spectators and try to retain them for a longer time from our
product and services.
Market analysis:
A good marketer is one who always has complete information about their customer and it is also
important how to get them and start providing what they want from you to satisfy their wants. As
we all know the major trend of marriage in Pakistan in which people are so fond of spending
enough on each and single variable, we can expect that this market can give enough profit to
retain our business. As an entrepreneurs we need to have complete analysis that how our market
strategies would be profitable. We are going to capture the wedding dresses market in which we
would focus on middle upper and lower middle class. There would be some challenges can
overcome to our way, as we all know designer dresses and other big names like AL-karam,
Classic has already done their glorious job but that is what an entrepreneurs is required to
perform to create loyalty in the market.

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Customers need:
The present situation of Pakistan in which inflation is on boom and economy is already facing
hard time. A lot of people are spending a big amount on wedding dresses which is use for just 2
or 3 hours so our main slogan would be why spending for couple of hours take from us for short
period of time. It is a major need of all those people who take loans from banks, friends and from
other relatives, although it is an important task to reach there where we can promote our brand
successfully, so we have design some major strategies to promote our brand to provide
convenience dresses to our customer. If we can present the facts and figures so inflation rate of
Pakistan is 5.7% and unemployment rate is 6.57% which can be our a good point to be
considered because people will not buy expensive dresses in this situation and that’s how they
will come to us by saving their precious money to spend somewhere else.
Target market
We have completely analyzed about our target market where our customer belong to different
life style, demographic and psychographic. Our main customer would belong from lower to
middle, and our suppliers would upper class from which we will buy our dresses. Our main and
potential customer would be those who belong to age from 20 to 30. Our price of renting dresses
would be 30% of actual cost per dress. To promote this idea and generate perception in the
market we have decided to conduct a cat walk in expo center in which we call our media partner
as well.
Marketing research:
Research helps the marketers to make a decision about our product. This study is important to
conduct because as an efficient marketer it is required to know the perception of people and to

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analyze how profitable your product can be in future and also to survive in competitive era. It
also identifies and understands effective opportunity for the business. This study tells us about
the need and want of our customer also including target market. Our idea is quite innovative but
the reason of conducting this research is to prove whether our product is problem solving as well
or not. Our main purpose for conducting this research is to find out that, how much people are
not able to spend on big expense of wedding like bridal dresses and groom’s sharwanis, so then
we will come to analyze that would it be good decision to make this idea in practice or not.
Data collection method:
Data Collection is an important aspect of any type of research study. Inaccurate data collection
can impact the results of a study and ultimately lead to invalid results. There are two main
methods of collecting the data.
1. Qualitative
2. Quantitative
Qualitative method has been selected for this research in which data had been collected through
some two main instruments.
Focus group:
There were 8 professionals and experienced people from whom we asked several question about
their lifestyle, age group and most importantly regarded their wedding expenses that how they
managed all those expenses. Following question was asked in focus group.

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Questions % agree % not agree
1: Do you think people should spend an
extraordinary amount on wedding
dresses?
65 35
2: Middle class people would most likely
to spend lesser on wedding dresses? 85 15
3: Sometimes it’s become very difficult
task to manage wedding expenses. 55 45
4: Do you think current inflation and
unemployment rate become reason to
delay wedding?
76 24
5: Peoples should take loans from friends
and relative for weddings. 35 65
Findings:
on first question 65% people think they agree that they should spend extraordinary amount when
they go to buy wedding dresses, and 35% think they should save their money to spend on other
expenses. On second question, 85% people don’t agree to spend more on wedding dresses while
55% of people find it difficult to manage the wedding processes. 76% peoples are the victim of
inflation while the 35% of these peoples manage their expenses of weddings through loans from
different resources.

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In-depth Interviews:
This was quite easy method as compare with focus group. We closely learn the behavior of our
target customer people for interview; they also share their experience as well that what critical
situation mostly happens in wedding. They help us a lot by knowing the behavior of our
customer which is quit import to understand.
Strategy:
Long Term Goals
Our business long term goal is to be the leader in renting different style cloths for different
occasions. After getting customer satisfaction we will further move to organize and arrange
weddings in which we give our best in venues, cooking and different requirements of our
customers.
Our Markets
Our market is for all (lower, middle and upper) classes but we separate them for the benefits of
our customers. Our aim is to target 50% of lower class, 30% of middle class and 20% of upper
class. We divide on the basis of the most important factor i.e. price.
Our Advantage
Rent Attire is the first who analyze the market-gap and there is no competitor exists in the
market so we have ‘the first mover advantage’. As competitors are the threats to business
which can make your profit down but so far we are the only one by which customers can avail
this facility first time in Pakistan.

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Our Resources
Our resources include skills, assets, finance, relationships, technical competence and facilities.
Skills: In our team we have specialists in Finance, Marketing and information technology
persons because it is critical to handle the finance of the company which is just start and also we
want to have good marketing strategies that help us to penetrate in the market. We also have IT
specialist because controlling a e commerce website will be include in our project some should
have enough expertise to handle some these kinds of problems. Who are contributing their
experiences to make our business more successful?
Assets: At the initial stage we start with approximately 7 attires (including both bride and groom
collection) which is consider our assets.
Finance: We are seeking for some financers for our project and we expect that we will get them
in few days. Initially the requirement of our project would be small as we see that our project is
low investment project. We need approximately 1,500,000 and we will try to manage the
investments. We try to payback all the investments in the 3- 4 years.
Relationships: We have to use our personal relationship with all the necessary requirements in
arranging venue for store and other administrative issues.
Technical Competence: In our team we also have specialists in the field of information
technology for facing the challenges that usually organizations faced such as websites problems,
sales software problems etc.

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Operational Summary:
E-commerce website:
In our business we offer both online plus physical stores to our customers it up to them what
option they choose. We make a website after making it we put some pictures of our clothes to
attract the customers and they can select it and pay us through online as well as they can give us
cash at the time of delivery. We mention all kind of clothes which we offer at the websites each
and everything so that it is easy to access our website, and one of our officer see the website and
take the orders of the customers.
Sales:
As we are new in this field and it is coming first time at the Pakistani market so at start we
purchase some clothes and display on our stores. On each clothe we take 30% of profit on 100%
cost of that clothe, as we are giving the opportunity of clicks and bricks to our customers so it’s
up to them they can order us through website or take from our stores. The delivery charges cost
include in 30%.
Suppliers:
We did not manufacture any clothes we buy from different markets and we choose the clothes
which were in trend and according to our customers we buy different clothes and we buy the
clothes from those who give the clothes on discount in case any thing happen so the suppliers
will be responsible. We have two or three suppliers because we need variety in our business so
that’s why we make win/win relations with our suppliers.

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Delivery Process:
The delivery process is depend on the location where the customers exist, we have the delivery
boy within the city to deliver the clothes but for out of the city we will use the facility of courier
company TCS and we make some kind of adjustment with them on delivery process. The
charges include in our rent. Within city we take one day time, and for out of city we take 2 day
time so the customers will order us before the one day within city or 2 day for out of city.
Physical store:
Our store will be located at Bahadurabad and the shop will be on rent, we choose the location
bahadurabad because it is one of the best areas in Karachi and famous too so the customers will
attract, initially at store we have one guard, two delivery boy, and one tea boy and we five
partners. At store we have one telephone, Air conditioner, two fans, one table and five chairs.
We put some best clothes on display and we keep all kinds of clothes in our store.
Marketing Strategies:
Rent Attire marketing strategy is a simple one. In Men’s and Women’s magazines like
marriages suits and some designers marriages suits will introduce and offer to our customers. We
will also advertise in magazines, on social media and television. For the first two months, we
will offer 30% rent including delivery charges. We will offer some discount to our loyal
customers.
Customer management:
Our rule is to make customers happy and satisfy because for every person marriage is one of the
memorable days for them. Managing customers is not easy but we have the advantage of first

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mover so we have the edge but we have the threat of new entrants, we make customer database
so from this we can know the customers with detail and from this we can easily differentiate our
main customers and others. We will listen all complains through online and at stores as well and
we will make sure the customers about the suits. If anything wrong went with our clothes from
the customers so customers will be responsible and before giving any clothe we would have the
agreement with our customers.
Management Team:
The key people behind this entrepreneurial venture are:
Adeel Hafeez (CEO)
Ali Ahmed (CFO)
Muhammad Owais Khalid (CMO)
Syed Muneeb Ali (COO)
Mursaleen Iqbal (IT & Public Relation Manager)
Because the idea is generated among the above mentioned members, so they are the first and
for most choice to make this idea work, if other members will required, so we will hire
according to the situation.
Risk and mitigation plan:
There is some risk associated with our business that might be affecting our profitability. First of
all we think that if there will be any issue that will be social and cultural values of Pakistani
people. There is a culture in Pakistani weddings to spend more even if someone has no

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capability to spend they have to manage it from somewhere. People might think that our
business model may attack their social and cultural values and they might not buy our product.
For that purpose we decided to conduct some work shops that create awareness in our target
market. We decide to conduct workshops in some areas of Pakistan where our target population
is located. We hope that these workshops will create enough awareness in our target market that
will grab our customers and bring them to us. Secondly, we might face the law and orders
problems in Pakistan and also the increasing inflation rate in Pakistan that might increase our
purchases that might be results in higher the prices of our product but we will try our best to
sustain our product price so that our product will be accessible tour target market.
Financial Summary:
As we look into our finances, the average cost which will incurred per unit in the first year will
be 15,000 and we planned to maintain 7 dresses in the first year so our variable cost will be
105,000. Other than variable cost, as we look for our expenses we found that it will cost us
around 900,000 in the very first year. Our expected loss will be in the first year will be 240,000.
From the very next year we will start making profit because of the discount promotion that will
be announced on the completion of first year and we expect that that discount promotion will
help us to increase our revenues. Our 2nd
year projected revenues will be estimated around
1,000,000 that will help us in making profit of 14,000 in the end of the year.
From the third year we will planned to invest our profit in our business so that we will be able to
increase our inventory level/ variable cost. We will also plan to show off our business in the
exhibition in Expo Centre Karachi so that it will help us further in growing our profits. We will
expect that the promotion strategy in expo centre will help us in grabbing the attention of our

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target market that will bring more revenues in our business in the third year and make us more
profitable. That expo promotion will also help us in building the good will of company that will
increase the assets of company in our balance sheet.
Because of our promotional strategies we will be able to grow our profits to 50% and according
to our estimation; our 5th
year profit will be about 1,700,000.
Our projected income statements of the 5 years are:

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We designed our revenues by setting realistic sales of our attire. At the very first year we
estimated that our 7 attires will be rented by our customers 2 times a month so that our 7 attires
We rented total 24 times in very first year so that they create our revenue of 300,000 approx. At
the 2nd
year we estimated that in the wedding seasons of May, June and July our attires will be
rented 5 times a month that will result in the total 33 times rented in the year that will increase
our revenue to 1,000,000. At the third year we will increase our attires that will result in the attire
rented on month and we will also expect the sales boom on June and July. Rest of the years our
goodwill will help us in the increasing our sales per attire. Our bases of the sales table are given
below.

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Our balance sheets for the five years are given below:

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Our payback period is:
Our payback period is 3 years 8 months.
The NPV of our project that we have calculated are shown below:
Year 1 Year 2 Year 3 Year 4 Year 5
($1,703,389.83) ($1,689,320.98) ($1,269,561.04) ($516,348.41) $290,490.38

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