Garbeau
Case Study
June 2010
Executive Summary
The initial concept of Garbeau was developed as a direct response to the need of
providing a made to measure tailoring shirt service for professional sportsmen
who find it difficult to get dress and fashion shirts to fit due to body shape and
size. Although professional sportsmen make up the majority of the data base the
company has seen an emerging number of sales from other male demographics.
Garbeau has been running as a full time venture for just over two years and has
built up a targeted client base of over 400 customers including wives and
girlfriends. Turnover to date is over £50,000. The start up process has been self
funding with introduced capital from shareholders, upfront payment by customers
and favorable credit terms from suppliers in Hong Kong. The projected gross
profit margin is just under 70%.
Customers have been accessed profitably by collecting the measurements and
details of professional sports men whilst supplying sport club orders of post
match dress shirts and through word of mouth promotion and networking.
Garbeau launched its web site in May 2009, however this is currently under reconstruction. It has been proven that Garbeau customers do not order or reorder on line – as they like the personal ‘touch’ and the new website will reflect
this. Plans are already being developed to grow the business using the existing
business model of visiting clients in their own home – the web site will support
this as the main source of sales.
An exciting new marketing campaign is soon to be launched - to promote and
market the service to new and existing customers and to launch the new
woman’s range of shirts. The many new and exciting developments with
Garbeau will form the basis of the PR strategy to add to the growing number of
local and national press articles and will support the marketing strategy.
The management team which includes professional rugby player Mike McCarthy
have between them experience of business start up and expertise working in
professional sport, marketing, retail, fashion, business management and off
shore production.
The three shareholders are committed to the business and confident that they
have the ability, contacts and experience to develop the brand Garbeau and to
grow and sustain the business in the longer term.
Jessica McLean won Northumbria University’s Retail and Service Award and the
Overall Business Viability Award in March 2008 with Garbeau, and was runner
up in the Northeast Universities Business Plan Competition – Blueprint in
October 2008.
Contents Page
Page 1:
The Executive Summary
Page 2:
Garbeau
Page 3:
Contents Page
Page 4:
Overview of the Business to Date
Page 5:
Overview of Business Objectives
Page 6:
Business Details
Page 7-9
Shareholders & Key Members of Staff
Page 10-11: Future Planning
Page 12:
The Market
Page 13-14: Market Research
Page 15:
The Competition
Page 16:
The Marketing Plan & Unique Selling Point
Page 17:
SWOT Analysis
Page 18:
Marketing Strategy:
p.18 Products, Design Feature, Packaging
p.19 Delivery, Branding, The Service
p.20 Promotion
p.21 Newsletter, PR, Customer Management,
p.22 Technology
p.23 Price
Page 24:
Manufacturing, Quality & Operations
Page 25-28: Financial Information & Notes to the Finances
Page 29:
Appendices
Financial Forecasts
Overview of the Business to Date: (please note this copy of the BP does
not include an appendix – all relevant information can be seen at the
website www.garbeau.eu)
1. In 2007 researched and successfully completed a test market run with the
male demographic from the Northeast of England including Newcastle
Falcons rugby players, manufacturing the shirts in Hong Kong before
commencing on a commercial venture.
2. In 2007 visited and met several tailors in Hong Kong establishing business
relationship and arranging favorable credit terms with a repeat visit in
August 2008 to source additional products and to again meet with tailors.
3. March 2008 launched and self-funded the business start-up.
4. March 2008 won Northumbria University’s Business Plan Competition.
5. June 2008 completed and delivered the first club order to Connacht Rugby
Club in Galway, Ireland of 60 shirts and free advertising in the Connacht
Programme 08/09 season (appendix 3).
6. Generated club interest in other areas of Sport including basketball and
cricket (appendix 1).
7. Confirmed interest in the concept and idea from sport specialists
(appendix 2).
8. Achieved a turnover to the middle of June 2009 of over £15,000 with a
projected gross profit margin of nearly 70%
9. July 2008 established offices in the North East of England and Galway
Ireland.
10. Generated local and national PR (appendix 5).
11. Implemented a successful re-branding programme (appendix 6).
12. August 2008 sourced ties and cuff links in China (appendix 7).
13. Finalised Garbeau packaging (appendix 8).
14. Developed personalised products for wedding parties, birthdays,
Christmas and Valentines Day ( appendix 9).
15. Scheduled development of the Garbeau web-site for May 2009, the
marketing campaign direct to existing customers (appendix 10) for
November 2009
16. Working on concept of Garbeau Designer – shirts designed in house yet
still made to measure
17. Launched the women’s range of Garbeau made to measure July 2010
Overview of Company Objectives
Short-term objectives June 2009 – June 2010
 Achieve total sales of £62,500
 Retaining gross profits of over £41,598
 Sell over 500 shirts (eight club orders of 400 shirts and 100 shirts to
individuals) to achieve sales of £32,590
 Sell over 200 ties to achieve sales of £4000
 Sell over 200 pairs of cuff links to achieve sales of £6000
 Sell over 50 suit orders to achieve commission of £5000
 Sell over 200 Garbeau Designer shirts to achieve sales of £15,000
 Secure interest from professional sport
 Develop a data base of approximately 500 individuals
 Develop a web-site to support the business with online ordering facility
 selling accessories such as ties, cufflinks and made to measure suits
 Develop packaging
 Develop the brand Garbeau and Garbeau Designer
Medium term objectives year 3
 Achieve total sales of £139,950
 Retaining gross profits of £84,299
 Sell over 1230 shirts (repeat orders of the initial eight clubs – 400 shirts,
secure orders from an additional four clubs – 200 shirts, sell over 630
shirts to individuals) to achieve sales of £80,000
 Sell over 400 ties to achieve sales of £8000
 Sell over 400 pairs of cuff links to achieve sales of £12,000
 Sell 100 suit orders to achieve commission of £10,000
 Sell over 400 Garbeau Designer shirts to achieve sales of £30,000
 Market and manage a data base of 700 customers
 Develop the brand Garbeau and Garbeau Designer
Long term objectives year 4
 Achieve total sales of £240,000
 Retaining gross profit of £145,900
 Sell over 2000 shirts (repeat orders of the initial twelve clubs - 600 shirts,
secure orders from at least an additional eight clubs – 400 shirts sell 1000
shirts to individuals to achieve sales of £130,000
 Sell over 600 ties to achieve sales of £12,000
 Sell over 600 pairs of cuff links to achieve sales of £18,000
 Sell 200 suit orders to achieve commission of £20,000
 Sell over 800 Garbeau Designer shirts to achieve sales of £60,000
 Market and manage a data base of 2000 customers who order shirts (and
accessories) on a regular basis by year three.
 Develop the brand Garbeau and Garbeau Designer
Business Details
Name of Company: Garbeau:
Domain Name: garbeau.eu
Location: The business will operate from Galway, Ireland (appendix11)
Certificate of Registration and North East England
Address: Garbeau 11 Leac Lian, Barna, Galway, Eire
also
Garbeau NE8 New Century House, West Street, Gateshead. Tyne & Wear
NE8 1HR
Telephone number: +44 (0)191 499 8560 and +353 (0) 866 030 838
Legal status of business: Partnership
Shareholders: Jessica McLean – 49%, Michael McCarthy – 36%, Brian
McLean 15%
Shareholders and Key Members of Staff
Jessica McLean, Managing Director (CV see appendix 12)
Jessica McLean is the main share holder in the company and completed a
Fashion Marketing Degree at Northumbria University In June 2007. Apart from
her degree and experience of working in the fashion and retail industry, Jessica
has trained with nationally regarded tailor John Blades to develop her knowledge
and skills in tailoring. Jessica also works as a model in the UK and Ireland.
Business role: As Managing Director Jessica’s role in the business is to
manage the day to day operations. To meet and negotiate terms with the sports
club management teams and arrange and carry out the fitting service with the
players or arrange for teams to be measured. To promote Garbeau to individuals
and to liaise with tailors and contacts in Hong Kong. She will be responsible for
the marketing activity in the business and for maintaining and developing the
customer base.
Jessica will maintain her role as a professional model as the actual working
hours are not prohibitive to the business and contacts made provide valuable
contacts with the media and potential customers. Modelling will also provide an
additional income in the first year of establishing the business.
Michael McCarthy, Business Development Director (CV see appendix 12)
Michael McCarthy is a professional rugby player in the Premier League and is
constantly seen in the sports media. He has as a strong and well-established
contact base of both professional team players and British rugby management.
Michael has been a professional rugby player for eight years. His career has
seen him play international rugby for England – under 21’s and work with top
national and international players such as Mathew Tait, Toby Flood and Johnny
Wilkinson (appendix 13). Due to the working day structure of a professional
sportsman Michael will have twenty hours a week to devote to Garbeau.
Michael is a qualified personal trainer and is currently studying the ECDL
Computer Management Course. Michael is planning to make his role in Garbeau
a full time commitment at the end of his ruby career.
Business role: Michael’s role as Business Development Director is to make the
initial contact with the sports clubs and to introduce Jessica McLean to the sport
management team, manage the data base of customers and assist with the
ordering and delivery process. On a day to day basis Michael will promote
Garbeau as he works directly with the target market and the media.
Brian McLean, Director (CV see appendix 12)
Brian McLean is Managing Director of Meridian Marketing (which recently won
the services section of the regional North East Business Awards). Brian is based
in the Northeast of England – and has established family links through his wife
(Chinese Nationality) with Hong Kong and China. This family connection has
enabled Garbeau to establish strong links with the manufacturing base in Hong
Kong breaking down language, communication barriers and to establish
favourable credit terms. Brian travels to the Far East monthly and has an
established network of contacts in Hong Kong and China. Brian represented the
UK in three day eventing in Germany and had his own race-horse training
establishment for 17 years.
Business role: Introduction and liaison with manufacturing contacts in Hong
Kong and China, day–to-day consultancy regarding production. Support with the
marketing of the business. Knowledge and understanding of the horse-racing
industry and established contacts in this sport sector to assist with the
development of the customer base for the ‘jockey’ market for Garbeau.
Future Planning
Year 1:
 Develop sales and expand the customer data base by accessing contact
details and body measurements of professional sports men providing club
orders of post match shirts. Develop data base of non professional
sportsmen. Maintain contact with customer base.
 Develop the Garbeau web-site to support the business in terms of route to
market, and give existing customers an opportunity to purchase online
shirts and accessories. The web-site will also encourage customers not
on the data base to input body measurements and to order on line.
 Launch the marketing strategy for 09/10 including a regular news letter to
be sent to existing customers promoting Garbeau and featuring news
items, interviews with sports men, quizzes, trend and style advice
Garbeau has completed one ‘volume’ club order to date with two orders pending
and two confirmed (appendix 4) has developed the ‘wedding market’. To date
these customers have been developed through word of mouth promotion.
Several clubs including Durham Cricket Club have agreed for Garbeau to
promote and market the service within the sports clubs direct to the individual
players.
The Army potential market for Garbeau which is currently being pursued.
Wedding Market & Gift Market shirts are personalised inside the collar with the
name of the bride and groom and date of the wedding and make perfect gifts for
the male wedding party. Personalised messages in the shirts make excellent
gifts for birthdays, Christmas, Fathers Day and Valentines Day (appendix 9)
Launch Garbeau Designer a designer range of shirts – that are fashion focused
and made to measure.
Year 2
 Expand sales to an additional eight sports clubs including professional
rugby, cricket, basket ball and ice hockey using the same business model
outlined above. (Football is a desirable sport to access the individual
sports men , however football clubs particularly in the premier league are
often ‘given’ the post match dress kit by well established high profile
brands such as Hugo Boss as a means of corporate branding). Garbeau
does have access to some key professional footballers including Alan
Shearer who is now a customer and will develop this sector using existing
personal net works. Jockeys are another demographic who would benefit
from the Garbeau shirt service although it would be difficult to access the
‘jockeys’ in a group fitting due to the individual nature of the sport – future
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marketing will focus on this demographic using the contacts of Brian
McLean. Some work has been done to date with Newcastle Racecourse.
Maintain and develop the data base of customers and the product offering
using the website, newsletter and word of mouth to market, support and
develop sales.
To develop and manage a data base of a minimum of 800 customers who
will order shirts regularly.
Maintain relationships with sports clubs and others to receive repeat
annual orders of post match shirts and to enable personal contact with
customers
Promote Garbeau Designer, accessories and develop suit sales
Maintain relationship with suppliers in Hong Kong and China.
Year 3
 Maintain and develop the data base of customers and the product offering
using the website, newsletter and word of mouth to market, support and
develop sales.
 Manage a data base of over 2000 customers
 Continue working with the Far East to manufacture and negotiate longer
credit terms
 Update website, Garbeau brand and image
 Extend the range and product offering and continue updating the Garbeau
designer range to include socks, ties, scarves, jumpers
 Develop Garbeau Woman made to measure shirts and accessories for
the female market
The Market
Professional Sports Clubs/Others
Garbeau will target professional sports Clubs to access individual players and to
develop a data base of individuals in the target market. Other markets are
presenting themselves for example the recent staff order for a commercial
business.
The personal and professional network of Michael McCarthy is seen as
paramount for making the introduction to the sports management teams not only
in the rugby sector but in other sports (see appendix 1-3).
Whilst communication will be maintained and developed with sports clubs and
‘others’ to ensure repeat orders (clubs purchase at least a minimum of one new
shirt annually for their players) a marketing strategy (p.18) has been developed
aimed at individual sportsmen who can re-order using the website
www.garbeau.eu. This route to market will provide Garbeau with a significant
income stream for the future.
The (individual) Target Market (1)
Professional sportsmen, aged between 19 and 40 years of age. High income
earners, high disposable income, high profile, image conscious a demographic
who mixes socially and professionally with high profile contacts, business people
and the media.
The (individual) Target Market (2)
Professional individuals including sport management personnel aged from 25
plus (the latter having often worked as professional sportsmen). Profile as above.
The (individual gift) Target Market (3)
Individualised shirts for wedding parties, Christmas, birthdays and Valentines
Day.
Wives, Girlfriends and Family (4)
The marketing campaign will target wives, girlfriends and family to capitalise on
the personalised gift market. The women’s range of shirts was launched in July
2010 – as a direct response to customer deman.
Commercial Market (5)
Personalised shirts for staff.
Market Research
Extensive market research was carried out (appendix 14 & 15) before launching
the company and was invaluable in understanding:
1. The target market
2. The manufacturing possibilities and capabilities in Hong Kong.
3. The competition (appendix 15)
This research formed the basis of the sales proposition for Garbeau. The
research highlighted the problems associated with ‘off the peg’ shirts common to
professional sportsmen and trading to date has demonstrated that men who have
certain body shapes and size who are not professional sportsmen follow the
same rationale.
The sales pattern of Garbeau to date has reinforced the original research
findings below:
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The overriding issue for the respondents (now the target market) was fit of
the shirt and not price.
The shirt is a popular article of clothing for men in the demographic as half
the sample bought one dress or fashion shirt a month.
Sleeve length was the most problematic design feature with ‘off the peg’
shirts followed by problems with the size of the collar.
The popular price ranges for an ‘off the peg’ shirt bought by the
respondents were £40-49, £50-59, £60-69 and £70-79 depending on the
shirt, brand and occasion required for.
Thirty-nine of the fifty respondents had no experience of purchasing a
made to measure shirt and the eleven who had bought were prepared to
pay £65 or more depending on the occasion.
The majority of respondents who had never bought a made to measure
shirt would consider buying them in the future with availability and time
being the most restrictive purchasing factors. Garbeau’s key focus is to
make the purchasing process simple and straight forward.
The majority of the respondents would feel more confident buying a ‘made
to measure’ shirt from a retail outlet rather than from the internet.
However the trading period of Garbeau has established that men are
happy to buy from a source including the internet once credibility has been
established and that they are unlikely to ‘shop around’ once they are
confident of the service.
Respondents want to see sample swatches of fabric and these are now
available at point of contact (see p.2) and will be made available on the
web site.
Most of the respondents would be happy to pay over £60 for a made to
measure shirt. Shirts from Garbeau start from £65 and this pricing
strategy has not been problematic.
On-going Market Research
Feedback from the delivered Connacht order of 60 shirts was positive with a
guaranteed repeat order from the management confirmed for January 2009.
From this order several of the Connacht players have re-ordered - both casual
shirts and dress shirts (appendix 10).
Garbeau is receiving orders regularly from individuals some ordering up to five
shirts in one go demonstrating the viability of the business model and the
demand. It has been encouraging to see the number of orders from nonprofessional sportsmen – demonstrating that demand is there with other markets,
and that once these customers have made a first order repeat orders will follow.
The personalised shirts (appendix 9) have been well received and several
wedding orders have been completed.
The market has also extend to the ‘commercial’ market – and one order has
been confirmed for 24 shirts, again the concept was well received and the
individual details will be placed on the data base.
It is envisaged that once the website is available and with the launch of the
marketing and PR strategy orders will increase significantly. Interest, demand
and feedback has given the management team the confidence to source and sell
additional products and to launch Garbeau Designer in the future.
The Competition
Currently Rugby Clubs order the players post match casual and dress shirts
through a variety of sources such as:
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Leicester Tigers purchase off the peg clothes from Next
Gloucester and London Irish purchase from Rugbytech
www.rugbytech.com : Rugbytech offer a range of protective clothing for
rugby players but do not offer a made to measure service for shirts
Sale Sharks purchase from Cotton Traders www.cottontraders.com who
offer a range of casual clothing – but again not made to measure
specialising in Shirts
London Wasps & Cardiff Blues purchase from Canterbury of New Zealand
www.canterbury.com
Harlequins purchase from Dress to Kill www.dress2kill.com
Worcester Warriors, Swansea Ospreys, Newport Dragons & Edinburgh
use Kooga www.kooga-rugby.net
Munster purchase from Timberland
Ulster purchase from Douglas www.douglasprivilege.com which is a men’s
retailer in Ireland but does not specialise in made to measure shirts
Leinster Rugby Club purchase from Best Menswear
www.bestmenswear.com retail outlet based in Ireland
England international team are supplied by Marks & Spencer
Eden Park www.eden-park.fr is a French menswear brand created in 1987
initially providing upmarket fashion clothing influenced by the rugby sector.
Today it is provides women and children’s clothing, home furnishings and
cosmetics. Eden Park has forged strong links with professional rugby
clubs over the years. It does not provide made to measure shirts although
it does provide the post match dress for some major Rugby Clubs.
Research into the competition has illustrated that there are no companies linked
to professional sports clubs which offer the Garbeau service of measuring
players and providing shirts.
Canterbury of New Zealand, Rugby tech and Kooga all specialise in clothing for
training and playing, the other stores are retail outlets which offer to provide suits
and shirts for the players but these are not made to measure. The post-game
uniform they offer is basic, with little choice – due to size restrictions. None of
these retail outlets offer a ‘made to measure’ service.
Some tailors offer to make the post match shirt but this tends to be local to the
club and is not seen as a significant threat due to the price points achievable by
Garbeau.
Additional competitor research can be seen at (appendix 15).
The Marketing Plan
To achieve both the aims and objectives set out on page 5 and the future
planning targets for the next three years set out on pages 10 &11 the following
unique selling points have been summarised. A SWOT analyses has been
carried and can be seen on page 17
Unique Selling Point
 Business model which allows the company to access profitably 50-80 of
the demographic in one – two days and develop the data base quickly
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Personal contacts in professional rugby, horse racing and the sports
sector in general.
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Experience of the fashion industry.
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Profile of the management team with the demographic
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Personal measuring and style service
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Established links with production in Hong Kong and China
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Quality control and checking in Hong Kong using Cindy Kwok
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Skills and experience of the management team
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Registration of trade mark (appendix 16)
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Unique concept with Garbeau Designer
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Personalised shirt service (appendix 9)
SWOT Analysis
Strengths
o
o
o
o
o
o
o
o
o
o
Understanding of the target market
Excellent contacts, networks and
opportunities in the rugby
&
additional sports sector through
Michael McCarthy & Brian McLean
Fashion, design tailoring and
marketing knowledge
Experience of trading
Existing data base of over 260
professional sportsmen including
wives & girlfriends
Established
several
tailoring
contacts in Hong Kong – good
supply chain
Sourced accessories in China
Availability of Chinese speaking
family member
Regular contact with the Far East
for quality checking
Access
to
search
engine
optimisation advice
Weaknesses
o
o
o
o
o
o
Opportunities
o
o
o
o
o
o
o
o
o
o
o
o
Strong contacts and networks to
develop the rugby market
Established contacts to penetrate
into other sports sectors and to
develop these markets
Growth of online retail which is
expected to rise to 30-50% in next 5
years
Inexpensive online marketing
Familiarity with demographic &
internet ordering
To extend product range
Develop new markets (commercial)
Develop Garbeau Designer
Establish the brand
To develop existing PR in local and
national press
Access to high profile sportsmen to
promote Garbeau
Support from Business Link
Relative inexperience of Jessica
McLean & Michael McCarthy in
running
a
business
(although
Jessica’s immediate family members
run their own businesses)
Inexperience of managing data base
soft ware
Although have established the tailors
in Hong Kong – operations here need
careful
management to maintain
quality level
Long way to travel to visit production
Confidence in ordering on line
Maintaining individual service to
customers who have made first order
on line
Threats
o
o
o
o
Competition from Dress2Kill and
Eden Park as entrants into the
market
Quality problems from Far East
Timescale at busy times of the year
(Christmas)
Exchange rate
Marketing Strategy
The Product(s)
Made to Measure Shirts for men and now women can be offered in a wide
range of fabrics, colours and designs (see p.2). Shirts can be made distinctive
to the individual customer with names or initials embroidered onto the shirt cuff,
inside collar or pocket (appendix 10) and can include personal messages
(appendix 9)
Ties a range of 20 Garbeau branded silk ties - (appendix 7)
Cufflinks (appendix 7)
Garbeau Designer a new concept – providing a range of six designer shirts
which can be made to measure for the Customer, with Garbeau designed fabric
and styling. This concept is currently being researched and developed and fabric
sourced.
Design Features
All the shirts will carry the Garbeau label on the inside collar (appendix 9).
Packaging
To develop customer loyalty packaging needs to be exclusive - individual shirts
are wrapped in branded gold tissue paper (appendix 18) and held down with a
Garbeau sticker (appendix 6). Included in the hang tag is a label which is made
from tracing paper which is hand written with the name of the customer
(appendix 19).
Shirts are then packaged in a black bag which can be re-cycled with the Garbeau
label prominently displayed at the bottom (appendix 8). The aim is to make the
‘package’ and experience of receiving the shirt distinctive, luxurious, exclusive
and rewarding. It is important to generate future sales that the customer feels
‘special’.
The Garbeau bag(s) can be re-used for storage or travelling. Each bag includes
an order form with photograph of the female model detailing information on how
to place re-orders (appendix 20).
Ties, cufflinks and suits will come in their own Garbeau bag with branded tissue
paper and Garbeau sticker (appendix 6, 7 & 18).
Delivery
Reliable delivery is a factor that must be maintained – lead-times are 2-4 weeks
depending on size of order and this needs to be managed closely to maintain
customer loyalty.
Branding
The name Garbeau comes from Garb – meaning distinctive clothing and Beau –
a well dressed gentleman. The phonetics of Garbeau is the same as Garbo (as
in Greta Garbo) so the name is familiar sounding.
The name Garbeau has a registered trade mark (appendix 16).
Corporate branding is evident on the main fabric labels, swing tickets and all
promotional material. Branding will be reinforced on the Garbeau website
www.garbeau.eu
The Service
Jessica McLean or a representative of Garbeau individually measures the target
market at one time under the ‘club’ order building up a data base of individual
client measurements and details. This information is stored electronically and
details such as birthdays and personal information logged. Wife/girlfriend details
are also taken and utilised in the marketing strategy.
Customers are asked if they are happy for Garbeau to contact them in the future
and to sign the information record. The measuring session is also an opportunity
to sell the additional benefits of the Garbeau service and products.
Garbeau is also in a position to offer a style service which is promoted when
measuring the players and will be explained on the web site. This personal
service and the ability to meet the customers develops customer loyalty and the
sustained marketing campaign planned throughout the year will assist in further
developing the relationship between Garbeau, the client, their wives, girlfriends
and family.
Research and trading to date has demonstrated that men aged between 19–35
in the target market group buy between five to ten shirts per year for themselves
with additional shirt presents from girlfriends/wives and families (appendix 14).
At the end of the measuring session which takes approximately ten minutes,
customers are given a business card and contact details (appendix 6).
The measuring service is efficient, organised and professional supporting the
exclusive image of the company.
Promotion
The service and product(s) need to be exceptional in terms of quality (page 24)
delivery and reliability so that customers are confident in re-ordering and to aid
brand development.
The company will promote its knowledge and understanding of the market, use
public relations to reinforce the brand and where possible use celebrity
endorsement. Johnny O’Connor, Tom May, Alan Shearer and Gavin Duffy are
current customers.
Boris Johnson will also be contacted once the web site is available to negotiate
the supply of shirts for the England 2012 Olympic team.
Many of the players on the England and Irish Rugby team are personal friends of
the main shareholders and once the website is live Martin Johnson, Rob
Andrews and Eddie 0’Sullivan will be contacted.
Marketing will where possible be direct to the customer – such as the hand
written label on packaging and individual password on the website.
Phone numbers will be included on all correspondence so that there is someone
available if the customer has a problem. The newsletter will be seen as a means
of communication and features will include information on Mike McCarthy and
Jessica McLean – putting a face to the name Garbeau.
It is important that Garbeau develops an affective brand awareness campaign to
develop brand image and retain a loyal customer base. The image of the
company is clean, fresh, fun and desirable – imagery includes a blond female
model (who is featuring in Marie Claire in December and is contracted to Storm
Model Agency) and the male models are representative of the target market
demographic and include professional sportsmen.
The images have an explicit message for example the image on the front cover
is stating ‘that the shirt is so fantastic that your girl friend will want to wear it’ and
the images have clever strap lines such as ‘Don’t Lose It’ or depending on the
season ‘Three Ties Men’, ‘Feast of Stephen’ (appendix 10).
These images will be used on the website at appropriate times of the year and
will feature heavily in the news letter sent to existing customers. The marketing
will be based around seasonal and new product ranges to achieve a presence
and maximise sales.
News Letter
The news letter will be sent out regularly it will have exciting imagery (appendix
10) sports information, trend reports, interviews, quizzes, information and options
to purchase the range of products.
Testimonials will be used on promotional information, in the newsletter and on
the order form, on the web-site and in gaining meetings with the sports clubs.
Public Relations
Garbeau has been featured to date in both local and national press. Having Mike
McCarthy as a shareholder gives instant recognition with the sporting press as
can be seen with a recent article in the Irish Independent (appendix 5). This will
be expanded upon once the website has been launched and press releases sent
to the national press. An article have been arranged in the glossy magazine
‘Galway Now’ once the web site is functioning and the business will develop
additional PR stories around:
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Blue Print Competition and Women into the Network Competition
Mother and daughter connection for example The Bridge Club Event
(appendix 5)
The female model featuring the marketing campaign (Stephanie Mclean,
Jessica’s sister) is soon to be seen in the national magazine Marie Claire
(December 08) and has recently signed a contract for Storm Model
Agency in London (appendix 17).
Letter written to Boris Johnson to provide the Olympic 2012 dress and
casual shirts
Connacht Rugby Club have agreed to have a ‘team’ photo taken of the
players wearing the Garbeau shirts and their rugby shorts and to have this
on their web site www.connachtrugby. It is also hoped that this order will
make the local Irish press. In addition a free advert has been given in the
Connacht match programme and will be utilised after the launch of the
web site.
Customer Relationship Management
The emphasis of Garbeau is on individuality, exclusivity and service from the
initial measurement session to receipt of an order. Individual players are
contacted two weeks after they have received their ‘club’ shirt and encouraged to
place their own individually designed order. The additional benefits of the
ordering process is discussed such as personal styling.
Feedback from existing customers support the benefit to the players of being
able to access a shirt that ‘fits’ and repeat orders have been asked for. These
benefits include:

Easy access to a service that will provide them with a designed shirt of
their choice that ‘fits’ (identified problem from the market research).
 Uncomplicated re-ordering process.
 Knowledge of the product through club order without their own initial
outlay and the benefit of having personal contact.
 Personal contact to make the customer feel ‘special', online ordering and
additional services offered such as advice on style, fabric, design and
accessories.
 Option of Garbeau Designer
It will be important to track customer sales online to tailor product information to
the individual and maintain exclusivity and contact.
Technology
Emails will form an important part of the marketing of Garbeau and information
will be sent out regularly in the form of an electronic newsletter detailed above.
 The Garbeau website will be an intrinsic part of the business from
November 2008 and will include sections under Individual Existing
Customers/ New Customers/ Personalised Shirts/ Sports Clubs/
Commercial/ Gifts/ Style Advice
 Measurement details will be stored on the website - existing customers will
be issued with a password which will give them access to their details.
 New customers will have the option to input their own measurements
following simple instructions.
 The tactile experience of shopping is an essential ingredient in the design
of the website and strong images will used. Fabrics and style designs will
be available.
 The website is an ideal tool to illustrate the hundreds of fabrics and styles,
to market accessories and Garbeau Designer whilst simultaneously
promoting the business.
 Customers in this demographic are familiar with ordering on line however
giving the customer confidence that their credit card will not be copied is
important. Paypal will be used which is a recognised and reputable form
of payment.
 There will be significant use of pay-per-click advertising and search engine
optimisation driving traffic to the Garbeau web site. This will be managed
by Brian McLean who is familiar with this technology.
 The web site will include marketing videos, adverts and testimonials but
will not be there at the expense of personal service and contact with the
customer.
£26.5bn was spent online in the UK in the first half of 2008 (IMRG Capgemini eRetail Sales Index) which is supportive of the use of the web-site. Growth of
online spending is due to rise from the current 17% to between 30 – 50% in the
next five years.
The original website was being developed by Alan Wareham of Tricycle Media
based in the Northeast, supported by Business Link. The new website is being
developed from a Newcastle University student.
Price:
Information on pricing can be seen on page 25
Special Offers
Although Garbeau is developing an exclusive brand and does not want to
discount – margins are strong and therefore considerations have been made to
offer the following pricing strategies at certain times of the year and at the
discretion of the company:
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
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Order two shirts and get the postage and packaging free
Special offers for Valentine’s day and Christmas
Garbeau loyalty card – given out with ‘club’ order
Introductory first purchase offer to individuals
Buy five shirts in a year and receive the sixth at a discounted price
Discount voucher in newsletter
Clients who have asked for repeat individual orders have not commented on the
price point to date.
Import Duty
The Shirts are delivered to the company with a CIF price (cost, insurance, freight)
from the tailors. Currently quotas are not an issue however Brian McLean has
taken on the responsibility of regularly checking these. The cost of import duty
has been factored into the selling price of the products
Monitoring the Promotional Activity
It is important to measure the success of all promotional activity and carefully
monitor feedback. This will ensure that the promotional activity is providing the
revenue required for the sustainability and growth of the business. Customer
care and listening to the needs and requirements of the customer will also
feature heavily with a customer feedback form included with every shirt order
delivered.
Manufacturing
Garbeau have established contacts with three tailoring companies in Hong Kong
Misbah Fashions, Shaniel and Delorean.
It is important for the future development of the business that production can be
increased. The management team are confident that production can be scaled
up and factories have been sourced in China.
Lead time for the shirts is two to four weeks depending on the size of the order.
Accessories and labels have been sourced in main land China.
Quality
Shirts will be quality checked by a representative of Garbeau in Hong Kong
Cindy Kwok and again checked in- house when re-packaged. Brian McLean will
also be responsible for quality checking orders in Hong Kong as he visits once a
month.
Tailors have agreed within the price to send one sample shirt for each club order.
Operations
Club measuring sessions will take 1-2 days depending on the number of players
and staff. Clubs can have squads of between 50 and 80 individuals.
On average 90% of players stay with the club season to season – so once the
initial measurement has taken place – follow on measurement sessions would be
for only 4-5 players per season.
Jessica McLean or a representative of the company will be responsible for
measuring players. The company now has two trained representatives who can
measure – one in the north and one in the south of England.
Michael McCarthy will contact club managers to arrange initial meetings.
The shirts are then sent to the club – with individual packaging (appendix 19) to
encourage repeat orders. Players are contacted individually two weeks after
delivery.
Measurements are sent to tailors in Hong Kong by email for the shirts to be
produced and customer details are stored on Garbeau’s data base.
Individual orders follow the same process. Once the website is up and running
orders will be checked daily and the above process followed.
Book- keeping
This will be managed by Jessica McLean with a sales and purchase ledger. A
bank account has been opened with The Bank of Ireland.
The Finances
Start up costs and trading to date can be seen below. The shareholders are
prepared to invest further in the business however due to up front payments by
customers and a gross margin of between 6O% and 70% this is not anticipated
to be in excess of £4,000.
Actual to Date
Sales
Cost of Sales
Gross Profit
Capital Introduced
Loans/Grant
Total
Overheads
Equipment
Labels & Packaging
Business Stationery
Insurance
Marketing
IT
Telephone
Sundries
Drawings
Travel
Total
Net Profit
£
5,060
1,946
3,114
4,170
1,500
8,784
650
2060
255
50
1,800
175
100
100
500
2,670
8,360
424
Forecasts and Justification for sales
 The individual and club retail price of the Garbeau shirts will be set at £65£85 per shirt depending on style and fabric this will achieve a gross
margin of between 61% – 65%.
 The Garbeau Designer Range will retail at £75 giving a gross margin of
over %65
 The purchase price of the shirts are £25 per shirt
 Cuff links will retail between £19.99 and £29.00 depending on style (the
latter range being made of sterling silver) giving on average a gross
margin of 74%.
 The cost price of the cuff links is an average of £5.00
 Ties will retail at £19.99 giving a gross margin of 82%
 The cost price of the tie is £3.50
 (postage will be charged on an individual basis at £3.00 per delivery).
Garbeau have a built in option to discount the club volume order if necessary.
 The number of players and management per club order has been
calculated on an average of 50 shirts (the number of players can vary
between 45 – 80 depending on the size of the club)
 Individual orders has been based on each client ordering one additional
shirt (this is deemed to be a prudent figure as research demonstrated that
the target market purchase between 5-10 shirts a year for themselves)
 Figures include wives, girlfriends and family purchasing from Garbeau
 No consideration has been made for players ordering more than one shirt
(again this is prudent as the purchasing pattern to date of repeat orders is
one individual can order as many as 5 shirts in one go). However the
sales figures in the forecasts will take account of some players not
ordering
 There has been no account of retail price increase or cost of sales for
three years
 Garbeau anticipate running the business from domestic premises as this
is large and the Directors do not want to incur unnecessary additional cost
 The growth in sales year on year has been calculated based on the
research in this document and trading to date
 All transactions with customers will be cash with order – the company will
not give credit
 Favourable credit terms have been negotiated with the suppliers –
currently this stands at approximately 14 days credit – payment is due
once shirts are ready for shipment.
Notes to the Financial Forecasts
Start up Costs see summary above
 £4170 has been introduced to purchase equipment such as lap top, desk
top, printer, scanner and to fund travel. Jessica McLean and Michael
McCarthy have invested personally in the business.
Profit & Loss Explanatory Notes: Sales
The forecasted sales figures are broken down on page 5 and are made up of a
mixture of volume and individual orders, including accessory sales. Estimated
turnover is £62,500in the first year, £140,000 in the second year and £240,000 in
the third year.
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All transactions with customers are cash with order
Trading figures to end of September 08 can be seen on page 25
The figures have been based on both clubs and individuals paying £65 per
shirt. The figures have not taken into account club discount for bulk
orders (this will be negotiated if necessary) or more expensive shirts such
as dress shirts which sell at £85.00 per shirt.
Figures include Garbeau Designer, suit commission, ties and cufflinks
Figures include the ‘gift’ market – wives and girlfriends purchasing from
Garbeau

There has been no account of retail price increase or cost of sales
increase.
Cost of sales
 See page above based on an average CIF cost
 Credit terms with suppliers are payment is made once shirts have been
produced giving Garbeau on average 2 weeks credit. Credit terms will be
improved upon after trading for approximately one year.
Gross Profit
 This is above 60% with the shirt sales and rises to £70% with the
introduction of Garbeau Designer and accessories – year one £ £41,598,
year two £84,299 and year three £145.900
Rent & Rates
 The office in Ireland is run from domestic premises and costs are
absorbed in domestic running costs
 The office in Gateshead is run within the premises of Meridian Marketing
and costs are absorbed within this company.
Postage & Carriage
 The cost of the shirt includes postage to the UK and Ireland from Hong
Kong
 Postage in the UK has been estimated at a nominal fee – customers will
be charged postage and carriage unless negotiated as part of the sale.
Website
 Development has been accounted for in year one in October 2008.
Business Link support has been applied for and a consultant fee has been
costed at £8,000. A fee of £4,000 has been assigned to Garbeau
assuming that Business Link will pay half. Garbeau is waiting for
confirmation of the application
Search Engine Optimisation
 This is seen as a significant part of the business – however Brian McLean
has guaranteed to fund this as Meridian Marketing has a full time
employee assigned to this
VAT

Vat has been calculated from January 2010 when the business will
become VAT registered
Drawings
 These have been taken into account in year one - £7,000 and will increase
in year two to £18,500 and year three £37,500.
Wages
 Include those for measuring staff and additional administration staff.
Net Profit before Tax
 Year one – £21,035, year two - £51,723 year three £98,210.
Cash flow forecasts explanatory notes
The business is in the unique position of operating with cash up front for sales
and a negotiated credit terms from suppliers. In year 1 Garbeau is operating
with a positive cash flow apart from December 08, January 09. This is due to the
projected payment of the website. Shareholders will invest additional funds to
cover the cash deficit in these months.
Year 2 sees a negative cash position in April 2010 due to VAT liability and a
forecasted marketing payment. It is anticipated that the shareholders will fund
this deficit if required or arrange for an overdraft facility for one month.
Year 3 sees a negative cash position in October and January – again due to Vat
liability. Again shareholders will fund or a bank overdraft arranged.
Risk
The business is relatively risk free in terms of cash flow as orders are not
processed until payment by the customer has been made.
List of Appendix:
1. Letter from Durham Cricket Club and Newcastle Eagles
2. Letter from Active Media supporting Garbeau
3. Email from Connacht Rugby Club Media Officer
4. Letter of confirmation from Taylor North Shields
5. Press to Date
6. Corporate Re-branding
7. Garbeau Ties & Cufflinks
8. Garbeau Packaging
9. Wedding, Valentine and Gift Shirts
10. Marketing Strategy supporting Images
11. Certificate of Registration
12. CV’s Jessica McLean, Mike McCarthy, Brian McLean
13. Johnny Wilkinson & Mike McCarthy (press photograph in The Daily
Telegraph)
14. Market Research
15. Competitor Research
16. Registration of Trade-Mark Garbeau
17. PR shot of Jessica and Stephanie McLean
18. Tissue Paper
19. Hang Tags
20. Re-ordering image