Business Plan - finishingschool

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BLOOM
Designer Kids Wear
Business Plan
Presentation
by:
Kriti Mehta
Kritika Dawar
Miriam J T
Stuti Goel
Executive Summary
Splurging for kids is a fun thing to do-toys, chocolates, games, books, clothes…you name it. Except that one
thing that really struck us- when shopping for clothes, there is a serious dearth of good occasion wear
for kids. Finding suitable clothing for marriage functions, birthdays, festivals etc for kids- all prove to be
a task that sends one running in circles.
Our idea is to launch exclusive occasion wear for kids between 3-12 years-for both western and Indian
clothing, while also providing matching accessories that may go with the outfits. The idea for providing
occasion wear for kids has not been exploited to its full potential and since we intend to provide all the
products under one roof we will have an edge over the other players in the market. Our mission is to
provide high quality exclusive clothing for kids, in the perfect blend of fun and fashion and also
providing suitable accessories while offering world class services and convenience.
Catering to the upper middle class, our products are priced between Rs 999 to Rs 3500, market skimming
being our strategy. Outsourcing our production, the management will ensure that products are
manufactured keeping ISO 9001 certified and total quality management practices which will ensure top
quality products. Our manufacturing processes ensure six sigma ratings thereby claiming negligible
defects in our processes (less than 3.4 in every million). We propose to start with a capital of Rs. 4 lakhs,
while taking a Rs. 6 lakh loan from SBI. A property jointly owned by the founders of this business
located at Karol Bagh, now valued by the bank at Rs. 10 lakh will act as collateral for the loan.
The four partners and promoters behind the group have exceptional knowledge, expertise and experience in
the field of fashion and designing. We intend to hire a marketing team and accounts personnel. The
strength of the business lies with the design team who will create products that will break the mould of
the existing fashion scenario of kidswear. We propose to start with two stores- one in Saket and the
other in Gurgaon- both in MGF Metropolitan mall. For promoting the store, we would offer inaugural
discounts, complimentary gifts for kids; while advertising in cartoon channels and hiring child artists as
our brand ambassador.
Company Overview
Mission Statement
To provide high quality exclusive clothing for kids, in the perfect blend of
fun and fashion and also providing suitable accessories while offering
world class services and convenience.
Goals and Objectives
•To provide occasion wear for children. This has been an opportunity that
has not been exploited to its full potential. There are many brands that offer
kids wear but very few that offer designer kids wear especially for
occasions. Our brand, thereby wants to make the best use of this
opportunity, by offering a variety of designer kids wear for different
occasions
•To provide the benefit of availability of all products under one roof to the
consumers. In order to match with the outfits available, the store also
provides a range of accessories for every occasion and theme.
•To open up retail stores in all metropolitan cities of the country
Values
Bloom believes in being present at the right place, at the right time and providing
the right services to the people. The group has a dedicated and well qualified team
of experts who have taken the right step in entering into this market which upholds
huge potential
Foundational Values
Integrity and honesty
Innovation
Customer orientation
Accuracy
Commitment
Enthusiasm
Responsiveness
Resultant Values
Customer Service
Excellence
Empowerment
Achievement
Community Benefit
Competitive Edge
Market Leader
Relevant Skills and expertise
The four partners and promoters behind the group have exceptional
knowledge, expertise and experience in the field of fashion and designing.
Following are their details regarding their achievements so far:
Kriti Mehta: Kriti started her career in fashion by completing her Masters
Degree in fashion design in Indian Wear from Pearl Academy of Fashion, New
Delhi. After graduating, she worked with the renowned brand name Satya
Paul for two years. Within a year she was promoted as the lead designer under
Contemporary print designs and managed a team of 5. She then took a break
and pursued a one year management course specializing in fashion retail and
marketing. She then got together with her friends and started this venture.
Kritika Dawar: After graduating from a Delhi University with a degree in
commerce, Kritika wanted to do more with her life then to pursue an MBA and
follow the rat race. Having a flair for designing she got selected to pursue
Fashion Designing in Indian Wear from Pearl Academy of Fashion, which she
cleared with flying colors. She then worked with the famous designer Gaurav
Gupta (Akaaro) for two years. She then went on and completed a management
degree in retail and marketing.
Miriam J. Thomson: After completing an Honors Degree in Economics
from Jesus and Mary’s College, Delhi University, Miriam completed a
short term course in Adobe Illustrator from London College of Fashion.
She also completed a summer course of stitching and sewing from Central
St. Martins, London. Apart from this she also pursued a month course on
introduction to Design from IED, Milan. Having a rich exposure and a
multinational experience in this filed, she then pursued her design degree
from Pearl Academy of Fashion in Indian Wear. She then worked with
Designer Sanchita in FDCI 2008 and Designer Amber Firoz in Delhi
Fashion Week. She also underwent a one month internship in Arvind
Mills.
Stuti Goel: After having completed a Hotel Management degree from
IHM, Pusa, Stuti enrolled herself in Pearl Academy of Fashion to pursue
her Masters in Indian Wear. She worked for the famous designer Amit GT
in FDCI 2008 and Julie Scarland 2009. She also pursued a month long
internship with the company Yorks. After having gained such work
experience, she went on to pursue a management degree in fashion
merchandising and retailing from London College of Fashion.
Resources Required
•Designing will be done in house;
• The company will be employing around 6 employees
to look after the retail outlets.
• The company will be outsourcing the finished
products.
Operations and Management Plan
CEO
Director 1
Director 2
Director 3
Accounts Manager
Apparel Design Director
Director 4
Marketing Manager
Graphics Sr.
Designer
Customer Service Manger
Apparel Sr. Designer
Trend & Forecast Head
Sales
Apparel
Designer
Regional Sales Manager
Forecast
Team
Sampling
Team
Promotional Sales
Manager
Responsibilities of the Management
Apparel Design Director
 -Manage a diverse team of product designers, creating ranges for kids’s exclusive occasion
wear.
 -managing apparel and graphic designers through the design and product creation process,
providing direction and feedback.
 -Working on Seasonal design stories and creation.
 -Work closely with Sr. designers to translate seasonal concepts to product lines.
 -Attend fit and proto review sessions; make revisions to artwork & design tech packs.
 -Identify solutions and resolve costing/margin issues.
 -create a strong synergy between design, development and product
marketing.http://www.linkedin.com/jobs?viewJob=&jobId=757405
Accounts Manager
 -ensuring that funds are spent and managed according to the goals, objectives and mission
of the organization.
 -allocation of expenditures is appropriate to the function identified for the account.
 -allocation of expenditures is appropriate to the function identified for the account.
Marketing Manager
 -Establishes marketing goals to ensure share of market and profitability of products and/or
services.
 -Plans the organization's advertising and promotion activities including print, electronic,
and direct mail outlets.
 -Guiding the customer service manager to maintain positive customer service relationships
with all customers. (https://www.jobdescription.com/content/complet1.asp)
Industry/Market Analysis
Children below 18 years account for more than a third of India’s
population estimated at 950 million in 1995. Today, young
children (0-6 years) account for 17.5% of India’s population, an
estimated 166 million.
 Close to 27 million children are born every year – and it is
estimated that the same numbers will be born every year, as
India’s population is expected to rise
(http://wcd.nic.in/udisha/htm/catalogue/2.doc)
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
SIZE AND STUCTURE
According to the India Apparel Report, 2008 (Images Year Book,
Vol IV), the size of kidswear market is estimated to be at Rs. 30,
510 crore
 Although, most of it is dominated by the unorganised sector, the
organised sector (i.e.brands), however, is growing at an average
of 20 per cent against the 30-35 per cent for the overall industry.
 Clearly, there is a huge potential and space for more organised
players to come in and take a larger bite of the market

Customer Analysis
Characteristics of the Indian Kids Wear Market
Branded kids apparels is one of the most fascinating and
complex facets of retailing
 Large variety, segmented customer profile, changing tastes,
children’s buying behaviour, influence of parents and media
makes a huge difference in the purchase decision
 Apparel, by its very nature, thrives on variety and more so in
the case of kids. Besides, kids have a natural tendency to
outgrow their clothes very fast, necessitating change, which in
this case implies new offerings
 A cursory analysis of the kids buying behaviour indicates that
they are an independent customer group displaying
considerable ‘pester power’ that they have inculcated and now
seem to be exerting.
 Additionally, kids are highly self conscious and can be easily
affected by peer pressure, at a very young age, and thus can be
very demanding, often at the cost of the parent’s peace of mind
if not their pockets. It is not uncommon to hear a kid throw a
tantrum to the effect…” I don’t want to wear this….”
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Today’s kids are more fashion conscious, and are ready to
experiment with clothing.
Increase in the amount of disposable income, and retail blitz
has brought a sea change in the Indian kids apparel market.
With kidswear being considered as a part of the lifestyle
segment and a strong emphasis being placed on brands, this
segment proves to be a potential successful business
(http://www.scribd.com/doc/18795157/Indian-Kids-WearMarket)
Children's clothes in India started out as miniature versions of
popular adult wear. Internationally, children's wear has its
own trends forecasting, trade shows and a production,
marketing and publicity set-up that rivals the adult business.
(http://www.scribd.com/doc/18795157/Indian-Kids-WearMarket)
A huge volume of kids apparel in India is being dominated by
local and unorganized players. This gives an excellent
opportunity for the organized players to lay a strong
foundation in this segment. Indian market is now moving
towards an international look in terms of children’s apparel.
(http://www.scribd.com/doc/18795157/Indian-Kids-WearMarket)
Competitors

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So far, the organised market was dominated by Lakhaniowned Gini & Jony Apparels with a 30 per cent market share,
followed by Weekender Kids and Ruff Kids
Pantaloon has entered into a 50:50 JV with Gini & Jony to set
up a retail chain to market kids’ apparel.
Raymond recently introduced its maiden kidswear brand —‘Zapp!’, with it’s first outlet running in Ahmedabad.
DS Corporation, which owns 14 retail stores in India for
children, and has brands such as Ruff Kids and Ruff Baby, is
set for a major expansion plan.
What’s more, even jeans companies such as Spykar, Pepe
Jeans and Killer are trying to climb onto the bandwagon.
International kids wear brand such as Tommy Hilfiger,
Freelook Junior, Adam Kids and Walt Disney are making
efforts to foray into India
STP

Segmenting the market on the basis of demographic
characteristics i.e. age of kids,

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3-6 yrs
6-9 yrs
9-12 yrs
Our products are targeted at the middle and upper
middle class segment of the society with our products’
price range between Rs 999 and above
The positioning strategy will be based on our efforts to
make the parents as well as kids aware of our brand
offerings and creating interests as well as desire to
purchase our products
Positioning
Following methods can be followed to create
effective positioning:
 For Parents:

Awareness about our product offerings
stressing upon the “Occasion Wear”
product lines (both Indian as well as
Western)

One stop shop for designer occasion
wear solution for every kind of occasion.
Festivals, weddings, theme parties,
birthdays … the point is to take the
burden off the parents shoulders in
providing them solutions to dress up
their kids which other competitors are
not offering
 For kids:

Highlight our Brand Name in all
promotional campaigns. Kids these days
love wearing branded clothes

Associate our brand with something
they can relate to … a famous cartoon
character can be an example or a famous
child artist can be hired as a brand
ambassador

Marketing Mix
Product
 Our core product offerings are designer occasion wear for
children, for both Indian as well as Western Wear
 We also offer matching accessories with apparels like
hairclips, earrings, bangles, belts, shoes, caps and bags
 Our products depict latest trends and designs as designed
by our own designers matching industry standards and
keeping in view the needs of our target customers, thereby
making them visually appealing to the kids
 The fabrics used in our clothing are pure forms and
synthetics and nylons are not used at all
 All our products and processes are ISO 9001 certified and
total quality management practices followed by our
company ensures top quality products
 Our manufacturing processes ensure six sigma ratings
thereby claiming negligible defects in our processes (less
than 3.4 in every million)
Main Product Lines

Indian Wear
 Girls
•Lehenga Choli
•Salwar Suit
•Churidar Kurtas
•Blouses and
Sarees
•Stitched
Sarees/Lehenga
s
•Kurtis

Indian Wear
 Boys
•Kurta/Pyaja
mas
•Sherwanis
•Dhoti/Kurta
s
Product Lines

Western Wear

Girls
• Tops
• T-Shirts
• Shirts
• Skirts
• Shorts
• Jeans
• Trousers
• Jackets
• Pullovers and
Cardigans

Western Wear
 Boys
• Tuxedos
• Shirts
• Trousers
• Jackets
• Waist Coats
• Jackets
• Pulllovers
Place – Distribution
Our distribution pattern is fairly simple. All
manufacturing takes place in house in our
factories conforming to strict quality standards
of production thereby ensuring high final
product quality
 Raw materials are acquired from well known
and established suppliers
 The warehouses are located inside factory
premises as we do not carry much inventory
levels due to the nature of the fashion industry
as trends and designs keep changing quickly
 Currently, we have two retail outlets in the
region of Delhi NCR region. Both outlets are
located in Metropolitan mall in Saket and
Gurgaon.

Growth trends and Future Potential
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The kids wear market in the country is mainly divided into two parts
organised and unorganised, with the latter having a larger part of the
market share. However, the organised sector is catching up due to their
inherent advantages in their product offerings (i.e. quality, designs and
trends) as well as increasing craze of brands amongst children
According to Global market review of children’s wear – Forecasts to 2012,
the top ten global markets (which includes India) would account for an
estimate of US $92.6 billion in children’s apparel retail sale
Indian kids apparel brands are creating a niche by themselves by changing
the face of Indian kids wear in India
Industry experts predict that the market will further grow to reach Rs.45,
000 crore by 2013, with branded apparels contributing to a major
share.(http://www.scribd.com/doc/18795157/Indian-Kids-Wear-Market)
The volume of market share of kid‟s apparels in the total apparel market is
at 24.9%, as against a 15% share in 2005.
(http://www.scribd.com/doc/18795157/Indian-Kids-Wear-Market)
Urban kid’s apparel market comprises about 60% of the total kidswear
market. A research states that more than 30% of the country‟s population is
below 15 years of age. The density of population makes kidswear to be one
of the fastest growing segments in the Indian market scenario
(http://www.scribd.com/doc/18795157/Indian-Kids-Wear-Market)
Pricing
Our pricing techniques mainly follow Market
Skimming techniques
 As most of our products are made from high
quality fabric and depict latest designs and
trends in fashion, they are priced a bit on the
higher side to avail profit
 The remaining product offerings which are
basic to industry standards and some
accessories are priced according to the value
they offer to the consumers, thereby targeting
the lower middle class as well as to compete
with other players in the market

Promotion Strategies
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Inaugural Discount on purchases for the first month in order
to increase brand awareness
Complementary gifts for kids for the first few days of opening
of the store
Further gift vouchers for purchases exceeding a certain limit
Advertising strategies would mainly aim at promoting brand
awareness amongst the parents as well as children as both
play an equal part in purchasing decisions
Colorful television ads on cartoon channels or during special
kids events in order to attract kids
Interactive advertisement on internet (on kids websites) and
TV .
Designing advertisements in a way so as to project a cooler
image of kids wearing our brand of clothes in those
commercials
Hiring famous child actors as our brand ambassador
Financial Plan
BUDGETED PROJECTIONS - OCT 2009
Per Day Walkins
Conversions (30%)
* Outfit (50 %)
* Shoes (20 %)
* Accessories (30%)
Saket
40
12
6
2
4
Gurgaon Total
60
100
18
30
9
15
3
5
6
10
Monthly Sales
* Outfit
* Shoes
* Accessories
Total
Saket
180
60
120
360
Gurgaon Total
270
450
90
150
180
300
540
900
Nov Projections have been increased by 5% and Dec have been increased by 15%.
QUARTERLY PURCHASE BUDGET
CLOTHES
OCT
450
48
498
45
453
800
1500
362400
675000
312600
NOV
475
58
533
48
485
800
1500
388000
712500
324500
Budgeted Sales
Add: Desired Ending Inventory
Total Needs
OCT
150
16
166
NOV
160
18
178
DEC
180
20
200
QUATERLY
490
54
544
Less: Beginning Entry
Required Production
Cost per Unit
Sales Price Per Unit
Production Cost
Sales Cost
Gross Profit
15
151
800
1200
120800
180000
59200
16
162
800
1200
129600
192000
62400
18
182
900
1200
163800
216000
52200
49
495
2500
3600
414200
588000
173800
Budgeted Sales
Add: Desired Ending Inventory
Total Needs
Less: Beginning Entry
Required Production
Cost per Unit
Sales Price Per Unit
Production Cost
Sales Cost
Gross Profit
SHOES
DEC
QUATERLY
580
1505
65
171
645
1676
58
151
587
1525
1200
2800
2000
5000
704400
1454800
1160000 2547500
455600
1092700
ACCESSORIES
Budgeted Sales
Add: Desired Ending Inventory
Total Needs
Less: Beginning Entry
Required Production
Cost per Unit
Sales Price Per Unit
Production Cost
Sales Cost
Gross Profit
OCT
300
33
333
30
303
250
450
75750
135000
59250
NOV
330
40
370
33
337
250
450
84250
148500
64250
DEC
400
45
445
40
405
300
500
121500
200000
78500
QUATERLY
1030
118
1148
103
1045
800
1400
281500
483500
202000
Total Production Cost
Total Sale Price
OCT
558950
990000
NOV
601850
1053000
DEC
989700
1576000
QUATERLY
2150500
3619000
Total Gross Profit
431050 451150 586300 1468500
COSTING PER UNIT
Material
Fabric
Buttons
Fusing
Lining
Thread
Main label
Wash care label
Price Tag
Brand Promotional
Tag
Price sticker
Polybag
Carton (10 PC per
carton)
Consumpti
Wastage
Net
on
+shrinkage(in%) consumption
Cost Per
Mtr/Pc
Amount
1.5
9%
1.635
225
367.88
6
5%
6.3
5
31.50
0.25
5%
0.2625
20
5.25
1.25
5%
1.3125
35
45.94
1
NA
1
4
4.00
1
3%
1.03
3
3.09
1
3%
1.03
2
2.06
1
3%
1.03
2
2.06
1
3%
1.03
3
3.09
1
5%
1.05
1
1.05
1
3%
1.03
1.5
1.55
0.1
NA
TOTAL DIRECT MATERIAL
0.1
15
1.50
468.96
Direct Labor Cost
Cutting
Sewing
Embriodery
Washing
Finishing
Packing
Any Other direct Cost
Total Direct Labor Cost
Per Unit Cost
30
65
80
5
15
5
5
205
Direct Expenses
Outsorcing Cost
Total Direct Expenses
Per unit cost
120
120
Total Prime Cost
TOTAL DIRECT MATERIAL
Total Direct Labor Cost
Total Direct Expenses
468.96
205.00
120.00
Total Prime Cost
793.96
BREAK EVEN ANALYSIS
References
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http://www.apunkachoice.com/scoop/fashion/20041026-0.html
http://www.scribd.com/doc/18795157/Indian-Kids-Wear-Market
www.corbis.com
http://www.ventureintelligence.in/blog/2006/11/kids-wear-market.html
http://www.financialexpress.com/news/capturing-childrens-apparelmarket-in-india/184879/
http://www.financialexpress.com/news/capturing-childrens-apparelmarket-in-india/184879/0
http://www.scribd.com/doc/18795157/Indian-Kids-Wear-Market
Thank you!
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