1
T-MAJiK
Established September 2011
1950 Third Street
La Verne, CA 91750
Presented to:
October 18, 2011
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Table of Contents
I. Executive Summary
a. Mission Statement
b. Competition
c. Market Potential
d. Management
e. Organizational Structure
f. Job Description
g. Strategic Planning
h. Goals
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3
3
3
4-5
6-7
7-8
8
8-9
II. Products and Services
a. Operations and Production
b. Production Method
c. Technology
d. Inventory Management and Shipping
e. Backup
f. Future Expansion of Operations
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9
10
10
10-11
11
11
III. Situational Analysis
11-13
IV. Marketing: Target Profile
a. Competitive Edge
b. Benefits to Customers
c. Marketing Strategy
d. Position Statement
e. Product Strategy
f. Pricing Strategy
g. Placement Strategy
h. Promotion Strategy
i. Action Plan After Receiving Funding
j. Sales Forecast
14-15
15-16
16
16-17
17
17
17-18
18
18-19
19-20
20-26
V. Capital Budget
a. Financial Projections
(See attachments)
26-27
28-29
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I.
Executive Summary
T-MAJiK is a start-up company whose main focus is to create t-shirts that display unique
designs, made by independent artists, for a target market consisting primarily of students and
supporters of local universities. The company is seeking $2,000 in debt financing to fund the
initial inventory and begin marketing efforts.
a. Mission Statement
The mission of the company is to create unique and innovative t-shirts for college
students. By empowering local artists within the community, T-MAJiK is able to produce t-shirts
that are truly able to differentiate themselves from that of the competition.
b. Competition
One of the greatest strengths that T-MAJiK has when compared to other start-up
companies, that are creating similar products, is the lack of competition. As of today, the only
competition that is allowed to use the University of La Verne logo is the University Bookstore.
Due to T-MAJiK’s relationship with the Bookstore and the University of La Verne, both
organizations have allowed T-MAJiK to use the University’s logo and name.
c.
Market Potential
There are two major steps that will define T-MAJiK’s market potential as the company
changes from one target market into a much more diverse one. Initially, at the time of the
company’s origin, the target market consists of:
1. Female University students: 18 – 24 years old
2. Male University students: 18 – 24 years old
3. University faculty and staff
As the company grows, it will eventually add to its target market and expand to also include:
1.
2.
3.
4.
5.
Female University students: 18 – 24 years old
Male University students: 18 – 24 years old
University faculty and staff
University friends and family members
University alumni
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d. Management
President: Michael Helmich
Michael Helmich is an undergraduate student at the University of La Verne, College of
Business and Public Management. In the past, Michael has worked for a variety of companies.
From his knowledgeable sales experience, due to holding a sales position for over two years
within the computer industry, to his technical level of merit seen through his current position as a
technician with Best Buy’s Geek Squad, Michael has been able to show that he is not only a
valuable worker for an organization, but also a great leader when it comes to management and
organization. While working in these positions, Michael has had the opportunity to take
ownership of many tasks that are presented before him and is able to manage his fellow coworkers and organize them so that they are able to successfully and skillfully complete the given
tasks at hand. Always keeping in mind what he has and continues to learn through his education,
Michael is able to effectively lead those with whom he works so that their goals and objectives
are meet and surpassed.
Currently, Michael is working on his Bachelor’s Degree in Business Administration with
an emphasis in Information Technology and will reach this goal by the end of 2012. Michael’s
goal is to broaden his knowledge primarily in the fields of management, marketing, finance,
economics, speech and communications, and computer science. He is constantly seeking out
new information as it becomes available in the areas of information technology, management,
and others. By constantly learning and growing, he is able to apply what he knows to further
motivate and move forward towards the overall benefit of T-MAJiK.
Vice President of Finance: Jimmy Fan
Jimmy Fan is currently a junior at the University of La Verne. Prior to attending the
University of La Verne, he completed course work at Citrus College. Moreover, Jimmy is now
working towards obtaining his Bachelor’s Degree in Business Administration. He has the
fundamental and theoretical knowledge and capability to perform the essential tasks that are
required to be Vice President of Finance.
Jimmy Fan worked as a sales person for Dish Network, a satellite television company.
His duties included enrolling new customers for satellite television service. His sales and
financial skills are excellent. Jimmy’s skills are huge assets that can be of great value to TMAJiK.
Vice President of Marketing: Kevin Dowell
Kevin Dowell is a junior at the University of La Verne where he is currently working on
his Bachelor’s Degree in Business Administration with a concentration in Management. Kevin
Dowell is currently involved in the school’s Campus Activities Board and housing department as
a Resident Assistant. Kevin is also the president for the University of La Verne tennis club and
works as Events Manager at the University’s Campus Center.
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Kevin’s work experience has allowed him to network and build relationships with several
organizations and prominent people on campus. This is a huge asset for T-MAJiK because it will
definitely help with the marketing campaign and strategy to attract the target audience.
Vice President of Sales: Annette Covarrubias
Annette Covarrubias is an undergraduate student at the University of La Verne, College
of Business and Public Management. Annette has worked in a variety of business and public
settings, ranging from being an assistant manager at G-Stage clothing store, to interning at
United Farm Workers of America. Her work experience at G-Stage has provided her with a high
level of skill in sales, communication, and in providing quality customer service. Moreover,
through her work experience she has acquired exemplary time management skills and gained
knowledge of retail terminology and how to count for inventory and process merchandise
transfers.
In addition, Annette’s internship experience at United Farm Workers of America offered
her the opportunity to interact with a variety of people all while cultivating a trusting relationship
with them. She also assisted in the preparation of the United Farm Workers’ 18th Constitutional
Convention, from which excellent teamwork, problem solving, and research skills were
developed. Annette’s work and interpersonal experiences have helped her thrive in sales and
communication tasks, but most importantly provided her with the ability to adjust to new work
environments and take on new challenges.
Being that she is currently a student, Annette has applied what she has learned in each
course to her work, which as a result, has allowed her to strengthen her skills and allow for better
performance in achieving organizational goals. Her drive for success, optimism, integrity,
dedication, and responsibility are key attributes that will contribute to the growth of T-MAJiK.
Vice President of Operations: Tappan Patel
Tappan Patel is responsible for all aspects of daily operations in the company which
include inventory management, shipping, supplier locations, finding alternative suppliers and
keeping track of employees, etc. Tappan oversees production to ensure it is of great quality and
will always make T-MAJiK customers happy. He makes sure that the product is also
manufactured on time so that there is no delay in the delivery schedule. He is also in charge of
the development within the field of operations.
Tappan completed two years of his coursework at Mount San Antonio College in Walnut,
California. He transferred to the University of La Verne in the Fall, 2011, and is pursuing his
Bachelor’s Degree in Business Administration with a concentration in management. He wants to
see T-MAJiK succeed and strive towards its goals without any barriers. Tappan strongly believes
that T-MAJiK will expand its production and manufacturing nationally and eventually globally.
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e.
Organizational Structure
The following information will detail the structure of T-MAJiK’s leadership and
employment as it grows from the initial start-up period and into its advancements in year 5.
Company Start-Up
Initially, during the company’s start-up period, only essential personnel are needed.
Year 3
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Year 5
f.
Job Description
President
The president of T-MAJiK is in charge of the leadership and organization of the
company. It is essential that the president implements the company’s long and short term
objectives and makes final decisions. Through his leadership, the president is able to achieve
organizational goals and motivate employees and fellow management to perform in an
appropriate manner.
Vice President of Finance
The vice president of finance has the responsibility to keep the balance sheet, income
statement, and statement of cash flows for T-MAJiK. He must also prepare financial reports and
prepare budgets for the company. In addition, the vice president of finance is responsible for all
monetary transactions within the company.
Vice President of Marketing
The vice president of marketing is to conduct and analyze market research, look for
creative ways to advertise T-MAJiK and its product’s, and manage any other activities relating to
marketing and advertising. The vice president of marketing must find different ways to
communicate with the target audience and inform them of the product, thus drive consumer
awareness. This position also requires the ability to define the company’s target market.
Moreover, being vice president of marketing entails implementation of strategies to increase
sales and demand for the product.
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Vice President of Sales
Holding a key position within the organization, the vice president of sales holds the role
of representing, branding, and positioning the product in the current market to increase the
demand. The prime directive of the vice president of sales is to increase sales and maximize
profit as well as forecast sales for the near future.
Vice President of Operations
The vice president of operations will be in charge of overseeing the production of TMAJiK t-shirts. The main responsibilities will be to check the products for defects, to make sure
they are produced on time, and to pick up the completed order. The vice president of operations
must keep in touch with MCM Silk Screening, the supplier, on a regular basis and will regularly
report the status of production during weekly company meetings.
g. Strategic Planning
Company Name
T-MAJiK
Type of Business
Objectives
1. Increase sales /
profit
2. Create a variety of
Creatively Designed designs
T-shirt Company
3. Create and build
company reputation
4. Establish target
market
Strategy
1
Advertising
/
Marketing
2.
Contract
with
community artists
3. On and off campus
promotions
4.
Establish
connection with a
reliable vendor
h. Goals
Within the organization, there are several goals and objectives that the company must
prioritize and assess, considering that T-MAJiK is a start-up company. T-MAJiK has created a
list of short-term, as well as mid and long-term goals. The short-term goals are those which the
organization needs to address within the first year of its existence, while the mid/long-term goals
are those which T-MAJiK must address within a period of one to five years.
Within the short-term goals, T-MAJiK must address the roadblocks that most start-up
companies must overcome. The first and primary goal that needs to be considered is the creation
of unique and individual designs that appeal to the target audience. The way that the organization
will address this objective is by contacting local artists within the community and empowering
them to create exceptional and innovative art. Eventually, the organization will have an
agreement in written form with these artists so that both parties can benefit. T-MAJiK must also
focus on the short-term objective of building up a positive reputation within the target market. It
is important to build and establish a reliable customer base; therefore, T-MAJiK must be
reputable. T-MAJiK will establish a relationship with the target market by offering products and
designs that are unlike any that are currently available. Moreover, the initial launch, as well as
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special events set up in the marketing campaign, will build up hype about the new t-shirts. TMAJiK’s short-term goals also include selling 725 t-shirts for the 10 week period in 2011. This
is a likely forecast, as T-MAJiK will be selling to 25% of the target population, which consists of
2,900 students. The sales price will be $14.00, producing total revenue of $10,150.
In the long run, it is important for T-MAJiK to address the concerns of creating sales and
increasing overall profit. Initially, the organization plans on outsourcing production to local
manufacturers. In regards to producing the finished goods, it is a long-term goal to be able to
afford the machinery necessary to self-manufacture the completed product. With respect to
creating additional sales, the organization will rely on a combination of marketing through both
traditional and non-traditional methods: website, social media, local media (print, audio, and
visual), and word of mouth. Two years from now, T-MAJiK forecasts to sell about 6,309 t-shirts
at a price of $14.00, producing total revenue of $88,326. The sales price may also increase due to
offering new designs and different types of t-shirts.
One of the final goals that must be considered is an expansion on the first short-term goal
of creating unique and innovative designs that appeal to the target market. By consistently
producing appealing designs for the target market, T-MAJiK is able to both satisfy a want and
create a need. The way that the organization is going to do this is by using marketing tools such
as the website to contact artists who are not within a close proximity of the company and have
them produce new art on a continuing basis.
II. Products and Services
T- MAJiK is a t-shirt manufacturing company that specializes in customized art printing
on t-shirts with unique designs that will be available to potential customers at affordable and
competitive prices. T-MAJiK designs are created by artists who have been hired by the company
or by artists who were willing to provide their art for use and replication by the company. Some
of the artwork will be provided by students in the Art Department at the University of La Verne.
a. Operations and Production
T-MAJiK’s primary silk-screener, MCM Silk Screening, is a family owned business that
specializes in screen-printing. It has recently installed state-of-the-art equipment in its facility.
The company was also the recipient of the 2010 “Best of Walnut” award awarded by the US
Commerce Association.1 Their facility is of a substantial size and their equipment includes the
negative maker or the transparency maker, the t-shirt iron imprinter, a high pressure wash basin,
and a turbo jet dryer.
MCM Silk Screening is located at 3820 Valley Blvd Suite G, Walnut, CA 91789. MCM
is a reliable source because many other universities and colleges, that have also had similar
projects in the business field, have been successful using MCM. One such university affiliation is
California Polytechnic Institute, Pomona.
1
MCM Silk Screening. (2011). Press release. Retrieved October 3, 2011, from
http://mcmsilkscreening.com/PressRelease.html
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b. Production Method
The process begins with a customer submitting a picture of a design to print on a t-shirt.
MCM Silk Screening then uses professional programs, one of which is Adobe Illustrator CS2, to
edit the image so that it can be transformed into vector art. The finalized art image is placed onto
a transparency, which is then placed onto a screen that varies in size on a scale from 80, the
smallest, to 200, the largest. The screen with the transparency goes through a process of
emulsion, where the screen receives a coat of a gel-like substance. The art transparency is then
put onto an exposing machine that emits light to expose the image, or design, and creates it into a
negative.
After the exposing process, the negative transparency is ready for use. Whatever is not
exposed by the exposing machine is then carefully washed off in the washbasin to perfect the
design. This is crucial because the next step is where the screen with the negative is used to
silkscreen the image onto a t-shirt of the customer’s choice. This transparency is then put onto
one of the available slots on the iron press and a blank t-shirt is inserted. The press is pushed
down and the design imprints, due to high heat, on the t-shirt. This creates a unique product with
a vast area of possible customizations depending on what design is created using a particular
transparency. The final step involves the newly silk-screened t-shirt placed into a turbo jet dryer
that dries the color at a temperature of 300 degrees Fahrenheit. The high heat cures the ink so
that it does not come off easily. The t-shirt is now ready for delivery and sale. MCM does not
outsource their work at the moment. They are capable of performing and meeting all customers’
expectations within their facility.
Typically after an order is placed, the turnaround time is usually between seven to ten
business days. However, since business is typically slow during the beginning of the fall season,
the turnaround time is approximately three to five business days. The size of the order is not a
limiting factor for the turnaround time unless the order is extremely large, for instance over 500
t-shirts. In addition, MCM Silk Screening will replace any damaged products during the silk
screening process at no cost.
c.
Technology
Overall, the technology used in the silk screening business today is universal. MCM uses
a method that combines both sublimation and traditional hand silk screening. More
technologically advanced companies prefer to use the sublimation method, since it is a cost
saver. This method allows printers to use extreme amounts of heat to transfer any color dye onto
clothing, mainly t-shirts manufactured of 50/50 material: half cotton and half polyester. Most
companies prefer to use the sublimation method because the quality of the product is much
better. However, well-established companies still tend to use the silk screening process, as MCM
does.
d. Inventory Management and Shipping
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Since MCM Silk Screening is a small company, its inventory management system is
fairly simple. MCM only orders merchandise and raw materials once it has received an order and
payment in full. Any mass production order is only processed when the customer pays the total
cost up front. This is a significant factor because MCM keeps its inventory extremely low and, at
times, keeps no inventory at all.
Once products are completed and finalized, the finished goods will be picked up by TMAJiK’s operations manager for further distribution. Thus, no shipping and handling from an
outside source will be necessary for T-MAJiK.
e.
Backup
T-MAJiK has a second contact on standby in the event that the primary supplier cannot
come through: Martin Rodriguez runs a screen printing business of his own. Rodriguez has done
work for the Rancho Cucamonga Police department, local high schools and other private firms.
His turnaround time is two weeks for an order of less than 300 t-shirts and three weeks for orders
of over 300. He asks for 50% payment up front and the rest upon delivery of the order.
f. Future Expansion of Operations
T-MAJiK expects to see the company grow. It would like to purchase its own equipment
and have its own building space. T-MAJiK will start locally and eventually expand to locations
across Southern California, where it will continue to offer the same quality service that is being
offered to the University of La Verne and its surroundings.
T-MAJiK applies its philosophy that the “sky is the limit” in all of its entrepreneurial
endeavors. T-MAJiK expects to succeed in its goals and ambitions within the La Verne
community; therefore, it plans to see its company expand locally, statewide, and possibly
regionally, across the United States.
III. Situational Analysis
After the establishment of T-MAJiK’s objectives, one of the first and most important
steps the company has taken in developing a marketing plan is creating a situational analysis
(SWOT).
Strengths
One of the components in a company’s organizational analysis is the assessment if its
strengths. T-MAJiK’s strengths include the unique and creative designs of its t-shirts, community
involvement (as the t-shirt designs will be created by local artists), and University pride. Direct
resources, diverse skill sets within management, and interest in social responsibility are also
strengths within the company. As far as the designs of T- MAJiK t-shirts, they will be evaluated
on an on-going basis and new designs will be added to ensure authenticity and keep the company
viable and unique. T-MAJiK makes it a priority to have designs created by students themselves
or other artists within the target market. It is very important to uphold the company’s image by
having innovative, hand created designs placed onto the t-shirts through a silk screening process.
Having the images on the t-shirts come from students or artists gives the t-shirts a greater
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significance and value. Consumers appreciate authenticity and the fact that local artists or
students were involved in the creation of the product. In addition, college students are prone to
support their institution; they enjoy taking part in school activities. At the University of La Verne
alone, there are over 40 clubs on campus, all organized and operated by students.
An additional strength of the company is the knowledge and advice that the instructors
and consultants within the University provide to the management team; these are T-MAJiK’s
direct resources. T-MAJiK is taking advantage of all its resources at hand. The resources that are
available to management allow for extensive progress in a shorter amount of time. Having
experienced instructors makes a significant difference in the establishment of the company. The
knowledge and experience provided by the instructors and consultants also adds to the
management team’s experience thus far from taking courses at the University of La Verne, as
well as their extensive work experience. Their work experience and coursework makes them
more than qualified to run T-MAJiK.
Furthermore, T-MAJiK plans to donate its profits to two local non-profit organizations:
LeRoy Haynes Center and David and Margaret Youth and Family Services. This is a strength
because non-profit aid is an important value especially to college students. They feel a great
sense of social responsibility. In an article entitled “More College Freshmen Committed to Social
and Civic Responsibility, UCLA Survey Reveals,” author Shaena Engle writes:
An all-time high of 83.2 percent [college students] volunteered at least occasionally
during their high school senior year and 70.6 percent typically volunteered on a weekly
basis. Additionally, the survey revealed an all-time high in the percentage of students
who believe there is a good or some chance that they will continue to volunteer in
college, at 67.3 percent.2
Also stated in this article was a statement by John Pryor, director of the CIRP Freshman Survey.
He claimed that the “rise in student attitudes reflecting social concerns and civic responsibility
could be a reaction to the worst global and national disasters witnessed in their lifetime."3
Students are becoming more globally aware and growing more concerned with finding ways in
which they can help and make an impact on the world.
Weaknesses
One of T-MAJiK’s weaknesses is that it is a start-up company, so there are many
unknowns. In this time of economic trouble, it is difficult for any company to immediately
succeed, so the risks for a start-up company are much greater. However, T-MAJiK is conscious
of this in its strategic planning. For this reason, it has chosen a target market that is supportive of
new ideas and thus will price and produce the t-shirts according to what the surveys of the target
market have shown. Moreover, in the analysis, other weaknesses assessed were the time
Engle, Shaena. “More College Freshmen Committed to Social and Civic Responsibility, UCLA Survey
Reveals.” UCLA Newsroom. January 25, 2006. <http://newsroom.ucla.edu/portal/ucla/More-CollegeFreshmen-Committed-6754.aspx?RelNum=6754>
2
Engle, Shaena. “More College Freshmen Committed to Social and Civic Responsibility, UCLA Survey
Reveals.” UCLA Newsroom. January 25, 2006. <http://newsroom.ucla.edu/portal/ucla/More-CollegeFreshmen-Committed-6754.aspx?RelNum=6754>.
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constraints because T-MAJiK is being developed within one semester of college and with little
funding. It requires much time to develop a fresh concept; however, T-MAJiK has done this in
just six weeks, which puts the company at a great advantage.
Opportunities
The opportunities that have been assessed are the reliable vendors that have been
contacted and the lack of variety that local competition (i.e. University Bookstore) offers. Thus,
T-MAJiK will emphasize the unique designs that it will offer. Another opportunity is T-MAJiK’s
trading area, which is the University of La Verne campus, as well as its target market. Although
students do watch what they spend, research proves that they still have great spending power. In
an article entitled “A Look at the Spending Habits of college Students,” writer Gayla Martindale
states that “data reveals college students to be savvy, capable and influential consumers,
balancing the rising cost of tuition with a hardy work ethic, […] and holding considerable sway
over the purchasing decisions of their peers.”4 This statement suggests that students do like to
keep up with the latest trends and are willing to spend money for something they like. In
addition, Martindale claims: “students also spend a lot of money clothing themselves. Nationally,
students spend more than $5 billion a year on clothes and shoes.”5 Therefore, it is highly feasible
that T-MAJiK’s target market will be interested in purchasing a T-MAJiK t-shirt. Moreover, the
company also has the opportunity to expand to other locations and universities because of the
promising data regarding college student spending.
Threats
T-MAJiK has also assessed its threats. One of its greatest threats is the University
Bookstore. EFollet, which is the company that runs the University Bookstore, offers a variety of
ULV accessories and apparel. However, their t-shirts are not as creative and trendy. Lack of
consumer spending is also a present threat. In California alone, the unemployment rate has risen
to 12.1%.6 Because this is a time of economic hardship, consumers are less willing to spend.
College students also find themselves looking for the best deals because they too have financial
constraints. So, T-MAJiK plans to sell its t-shirts at a reasonable price.
Another threat is finding a vendor that does not already have other jobs in its pipeline
previous to T-MAJiK, especially when time is of the essence. In addition, many tend to import
from overseas which consumes more time and increases turnaround time. The t-shirt industry is
large, and the demand for t-shirt suppliers increases during some seasons. However, because TMAJiK will be operating during a season that is typically slow, this should not be an issue.
Martindale, Gayla. “A Look at the Spending Habits of College Students.” College and University Blog.
<http://www.stateuniversity.com/blog/permalink/The-Spending-Habits-of-CollegeStudents.html#ixzz1ZMKG0I2u>
5
Martindale, Gayla. “A Look at the Spending Habits of College Students.” College and University Blog.
<http://www.stateuniversity.com/blog/permalink/The-Spending-Habits-of-CollegeStudents.html#ixzz1ZMKG0I2u>
6
Employment Development Department. State of California. <www.edd.ca.gov>.
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IV. Marketing: Target Profile
T-MAJiK’s target market is primarily composed of college students. This is the perfect
target market for T-MAJiK t-shirts because college students are trendy and like innovative and
affordable products. T-MAJiK t-shirts consist of these characteristics, and that is why college
students are the target market.


Demographics
o Age
18-24 years old
o Gender
60% Female: 40% Male (University of La Verne)
o Income
$14,400 (National Center for Educational Statistics)7
o Spending
$5 billion per year on clothes and shoes 8
Psychographics
o Motives
 University spirit/involvement
o Lifestyle
 Trendy
 Involvement in organizations
 40 clubs/organizations in the University of La Verne
 Cost conscious
 “93 percent cite low prices as important when shopping,
and 80 percent shop at general purpose retailers like WalMart and K-Mart”9
 Non-profit/volunteerism (67.3 % will volunteer in college)10

Technographics
o Facebook
7
As of 2005, 85% of College Students use Face book11
National Center for Education Statistics. February 2010. <http://nces.ed.gov/das/new/index.asp>
Martindale, Gayla. “A Look at the Spending Habits of College Students.” College and University Blog.
<http://www.stateuniversity.com/blog/permalink/The-Spending-Habits-of-CollegeStudents.html#ixzz1ZMKG0I2u>.
9 Greenspan, Robyn. “College Students Surf, Spend”. ClickZ. February 13, 2003.
<http://www.clickz.com/clickz/stats/1700764/college-students-surf-spend>
10 Engle, Shaena. “More College Freshmen Committed to Social and Civic Responsibility, UCLA Survey
Reveals.” UCLA Newsroom. January 25, 2006. <http://newsroom.ucla.edu/portal/ucla/More-CollegeFreshmen-Committed-6754.aspx?RelNum=6754>.
11 Schulz, Matthew. “85% of College Students Use Facebook.” TechCrunch.com. September 7, 2005. <
http://techcrunch.com/2005/09/07/85-of-college-students-use-facebook>.
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As of 2009 there are over 10 million Facebook users
amongst college students and alumni; they read 2851
Facebook profiles a year12
o Email
93 % of college students access the Internet in a given
month: they spend three and half hours a day online: read
2300 web pages a year: read 500 pages of email per
semester.13
o Music
Students listen to 2.5 hours of music a day14
o
Twitter College students spend 11.4 hours a week on
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Twitter
Furthermore, the college market is the perfect population for T-MAJiK, since the
company has the resources to strategically target college students and advertise the product
effectively to them. The primary target market T-MAJiK has chosen has proven to have the
potential to buy and contribute to the economy, as shown in the references above. The target
market is also technologically advanced and internet savvy, so reaching them through social
media should prove to be successful. T-MAJiK also conducted a survey through Survey
Monkey, a website, where it received over 700 responses from the University, and out of those
responses, over 70% said that they would purchase a T-MAJiK t-shirt. Nonetheless, the company
has chosen a very specific target audience that it can relate to since the management team
belongs to this audience and can understand the habits of undergraduate students.
a. Competitive Edge
T-MAJiK has three competitive edges that it will use during its marketing campaign. TMAJiK will distinguish itself from its competitors because of the t-shirts’ innovative designs and
authenticity and because it is located in a prime area for the target market. T-MAJiK will also be
donating its proceeds to two non-profit organizations.

Innovative designs—T-MAJiK t-shirts have designs created by students and
artists. The t-shirts will represent the University in a more stylish and unique way,
unlike any that are already out in the market.

Trading Area—T-MAJiK has the advantage of trading/selling on campus. This
makes it convenient for students to purchase a t-shirt while they are making their
“College Students Today: Lifestyle Study”. <http://everybodysagenius.com/2008/06/20/collegestudents-today-lifestyle-study>.
13
“College Students Today: Lifestyle Study”. <http://everybodysagenius.com/2008/06/20/collegestudents-today-lifestyle-study>.
14
“College Students Today: Lifestyle Study”. <http://everybodysagenius.com/2008/06/20/collegestudents-today-lifestyle-study>.
15
Meredith. “Ypulse Research Status Update: Facebook Fatigue”. July 7, 2010.
<http://www.ypulse.com/ypulse-research-status-update-facebook-fatigue>.
12
16
way around campus. There are many areas on campus where there is more traffic
than others. This is an important factor to analyze when deciding where to set up
areas to sell T-MAJiK t-shirts.

Social Responsibility—T-MAJiK will emphasize that it will be donating its
proceeds to LeRoy Haynes Center and David and Margaret Youth and Family
Services, both located in the city of La Verne.
b. Benefits to Customers

T-MAJiK t-shirts are of high quality cotton and/or an assorted mixture of cotton and
polyester.

The t-shirts are lightweight so that they do not feel too heavy on the body. The cotton
material, along with the lightweight composition of the t-shirt, makes it easily breathable
for the body during temperature changes.

T-MAJiK can also offer personalization on its t-shirts such as, choice of color and
various designs. T-MAJiK offers t-shirts in black, white, and gray for the men and a hot
pink V-neck for the women.

Students, staff, faculty, and parents can show University pride and support by wearing tshirts designed for the University.

Profits will be donated to two local non-profit organizations: LeRoy Haynes Center and
David and Margaret Youth and Family Services.
c.
Marketing Strategy
The goal of T-MAJiK’s marketing plan is to drive consumer awareness of the product,
raise the demand for it (increase sales), and build up a reputation. T-MAJiK’s marketing strategy
is specifically tailored to reach the target market’s interest in a new way by allowing them to
express themselves, as well as represent school pride. T-MAJiK’s primary target market is
college students between the age of 18-24, as well as the University as a whole.
T-MAJiK intends to reach its target market through traditional and non-traditional
methods. It will use on campus outlets, such as Leo FM (the campus radio), Campus Times
newspaper, internet, Leo TV, and magazines. Being that the target market is made up of
primarily college students, the most effective way to reach them is by word of mouth referrals
and through promotional events held on campus.
Another large target audience that the company will sell to is faculty and staff within the
University. The faculty and staff that populate the University have more discretionary income
than the individual college student and will be much more apt to buy T-MAJiK t-shirts, since
they might have some sentimental motivation behind the product. There are 600 faculty and staff
members at the University of La Verne. In research, findings have shown the average salary of
17
postsecondary faculty is over $73,000, which is a discretionary income that will contribute to the
company’s sales greatly.16
Before T-MAJiK moves on to expanding outside the University of La Verne population,
it will expand its target audience to also include family of La Verne students. The addition of this
population is a strategic move because holidays will be approaching during the autumn and
winter seasons, therefore, t-shirts will serve as great gifts for the entire family to support the
university and demonstrate pride.
Furthermore, with 2,900 traditional undergraduate students, 2,200 graduate students, and
over 600 faculty and staff, T-MAJiK has 5,700 potential buyers in addition to alumni of the
University of La Verne.
d. Position Statement
T-MAJiK t-shirts are tailored for college students because they are of great value,
artistic, authentic, and exude school spirit in comparison to other more expensive and
unimaginative collegiate apparel.
e.
Product Strategy
T-MAJiK’s line of quality shirts will be made with artwork created by young artists who
understand the target market because they themselves are a part of the University of La Verne.
The artwork will be visually captivating and provide a new look that students will not be able to
resist. With further market research, T-MAJiK will incorporate the suggested designs by students
to give them exactly what they demand.
To further entice the students, T-MAJiK will sell the t-shirts for a price that fits into any
college student’s budget. The product will cater to the fashion needs of the students as well. TMAJiK will differentiate between male and female style and sizes of t-shirts to ensure that
students feel trendy and stylish. Moreover, T-MAJiK will emphasize on the fact that all of its
proceeds will go to local non-profit organizations. This is a huge advantage for T-MAJiK in the
market because college students are more prone to support a company that has an interest in
social responsibility, as previously stated under the strengths of T-MAJiK.
f.
Pricing Strategy
College students do not have a lot of discretionary income; however, they do have great
buying power amounting to over $5 billion per year in the United States alone.17 T-MAJiK will
price its t-shirts appropriately to adhere to the income levels of college students and what they
are willing to pay. After surveying students at the University of La Verne and receiving
16
Digest of Education Statistics. <http://nces.ed.gov/programs/digest/d10/tables/dt10_270.asp>.
Martindale, Gayla. “A Look at the Spending Habits of College Students.” College and University Blog.
<http://www.stateuniversity.com/blog/permalink/The-Spending-Habits-of-CollegeStudents.html#ixzz1ZMKG0I2u>
17
18
responses from over 700 students, T-MAJiK has set its sales price at $14.00. Moreover,
according to an article by Media Daily News, students had $69 billion in discretionary income.18
The article also goes on to mention that women will be more likely to spend on clothes, shoes,
cosmetics and cell phones, while men will spend more on general technology. With 60% of the
target population being made up of women, T-MAJiK will be looking to make most of sales to
women at a price of $14.00.
g. Placement Strategy
When selling the product, T-MAJiK will sell directly on campus. As an on-campus
organization, T-MAJiK is able to reserve space where it can sell t-shirts in high-traffic locations
within the University grounds. While selling, T-MAJiK will incorporate high energy selling
with music to attract attention, as well as have the company t-shirts on display during the selling
hours. T-MAJiK will adjust the selling hours in order to reach as many students as possible.
Selling on campus is going to be the best point of sales, since it is where students will wear the tshirts and where students will experience the most sentiment for the product when making a
buying decision. The most populated areas on campus are near the cafeteria (Davenport),
Campus Center, and the landmark building known as Founder’s Hall. These are all centrally
located places and are heavily populated throughout the day. T-MAJiK will be able to reserve
space in each area for as long as it requests and with set up provided by the University. With
multiple locations, T-MAJiK will be able to sell to the majority of campus in person.
h. Promotion Strategy
Targeting a young market has led T-MAJiK to choose various forms of social media such
as Facebook, Twitter, and Tumblr to create buzz for the product. T-MAJiK will emphasize the
ability of students to spread the word about the product. Furthermore, according to a report done
by TechCrunch, 85% of college students are on Facebook as of 200519, which will be a great
way to advertise the t-shirts and create the buzz T-MAJiK is looking for, especially since it can
accurately assume that Facebook has grown substantially since 2005. Another strategy to
implement is giving t-shirts to students and other prominent figures within the University. This
will allow T-MAJiK to advertise the product by having others wear it around campus, thus give
those who see the t-shirts on others motivation to buy them. Once T-MAJiK has spread the word
about its product, it will have t-shirts all around campus in different departments so that almost
no one can go without seeing the new t-shirts. The promotional events will also lead students to
the company website or social media sites. T-MAJiK will be relentlessly advertising all across
the University because this is where the consumers will be most of the time and it is where the
company will have the most resources available. Most traffic on campus will come between the
hours of 9 AM and 6 PM. During this time, T-MAJiK will be able to gain a considerable amount
of sales.
As far as reaching the other target markets, T-MAJiK will adjust its selling hours to sell
to graduate students, because the majority of them are part-time students and attend classes at
18
< http://www.mediapost.com/publications/article/74419/ad-network-targets-college-students.html >.
Schulz, Matthew. “85% of College Students Use Facebook.” TechCrunch.com. September 7, 2005.
< http://techcrunch.com/2005/09/07/85-of-college-students-use-facebook>.
19
19
night. A more effective way of reaching them would also be by leading them to T-MAJiK’s
website, Facebook, and other social media outlets, where they can place an order for a t-shirt or
learn information regarding the product. T-MAJiK will also have displays and information
around campus to not only attract undergraduate students, but graduate students as well.
Marketing to faculty, staff, and alumni will be done via e-mail and word of mouth. TMAJiK will contact the various departments around campus and generate a direct interest in the
t-shirts; it will use as many student resources around campus as well. If a department sees that
its own students have participated in designing or advertising the product, then it will be
motivated to buy. Alumni will have the opportunity to support a student organization, as well as
their own alma mater, which will be their primary motivation for purchasing T-MAJiK t-shirts
once they receive the email directing them to the online pages.
Examples of student involvement that T-MAJiK will use to create word of mouth include
holding design competitions within the art department to create the next T-MAJiK design, or
having student photographers take photos to help position the product. The more student
involvement T-MAJiK allows to create this product, the more buzz it will receive. T-MAJiK is
using this strategy to its advantage by creating a product made by students that the entire campus
will want. The University of La Verne is a very personal university, which will help with
marketing, since friends of the students who participate, by purchasing a t-shirt, will also be
encouraged to buy.
i.
Action Plan after receiving funding
First Week (October 24): Establish social media sites with information linking consumers to
the website. Set up displays of the product and advertise design competitions within the art
department as well as the graphic design department. Other opportunities to get involved with
the product will also be advertised with the photography department, the campus newspaper,
and the campus radio station. Begin selling at key campus locations (expand trading area).
Second Week (October 31): Create more buzz by sending out emails to students and faculty
about the new t-shirts being bought and worn on campus. Continue receiving media coverage
through campus resources/outlets.
Third Week (November 7): Begin advertising for the approaching holidays by changing
flyers and displays to match the relevant theme for the month. Increase numbers for all social
media outlets by linking every poster, flyer, display and business card to T-MAJiK websites.
T-MAJiK will also sell to visiting high schools on Preview Day.
Fourth Week (November 14): By the fourth week, T-MAJiK will have increasing sales and
possibly release a new design.
Fifth Week (November 21): T-MAJiK should have had various events to market the product.
With continuous advertising from University resources and word of mouth, T-MAJiK’s social
media page traffic will increase. It will also hold a sales event themed for the upcoming
holidays.
20
Sixth Week (November 28): Continue to sell throughout campus. Marketing will hold an
event where students can show case their artistic talents.
Seventh Week (December 5): Organize a promotional event to attract more buyers as the
semester comes to an end.
Eighth Week (December 12): By the end of the semester, T-MAJiK will have its entire
inventory sold and have reached its sales goals.
j.
Sales Forecast
The sales forecast for the company is reasonably conservative so that the goals will be
achievable. Initially, sales will be slow because T-MAJiK is a startup company and it will take
time to build a sufficient foundation and reputation.
Year 2011 (Project Period)
The company has concluded that 40% of its units will be sold to men, and 60% of its
units will be sold to women. These percentages were provided by the University of La Verne’s
public relations director, Charles Bentley. The University of La Verne consists of approximately
40 % male students and 60% female students.
The cost to produce a men’s t-shirt is $4.98. The cost to produce a women’s t-shirt is
$6.28. T-MAJiK will be selling the t-shirts for $14.00, five days a week, with an exception in
week 5, because there will be a campus event on Saturday, November 12.
Operating Period
Week 1: October 10-14
*No sales (placing order for first batch of t-shirts)
Week 2: October 17-21
*No sales
Week 3: October 24-28
*First week of sales
Week 4: October 31-November 4
Week 5: November 7-12
*Selling on Saturday because it is Preview Day
Week 6: November 14-18
Week 7: November 21-25
Week 8: November 28- December 2
Week 9: December 5-9
Week 10: December 12-16
21
Likely Forecast
In the likely forecast, T-MAJiK plans to sell to 25% of the initial target population. The
initial target population consists of 2,900 undergraduate students (2,900 x .25= 725). Therefore,
T-MAJiK plans to sell 725 units between the months of October through December, which
consist of 10 weeks. However, in week 1 and 2 there will be no sales because T-MAJiK will be
placing its order of t-shirts to its supplier.
Units per week
The forecast is broken down into men’s and women’s units that are expected to be sold.
Units Per Week
Men
Women
Total
Week 1 Week 2 Week 3
0
0
30
0
0
45
0
0
75
Week 4
36
54
90
Week 5
44
66
110
Week 6
40
60
100
Week 7
40
60
100
Week 8
36
54
90
Week 9 Week 10
32
32
48
48
80
80
Total
290
435
725
There is an increase in units sold in week 5 because of a University event, Preview Day, where
high schools will be visiting.
Sales per week
The sales forecast is broken down into men’s and women’s sales. It also shows sales
starting from week 1 through week 10; however, as mentioned before, there will be no sales
activity in week 1 and 2. Sales will start in week 3, which is October 24. Week 3 and 4 are both
in the month of October, week 5-8 are in November, and week 9 and 10 are in the month of
December. The total amount of sales is expected to be $10,150 (not including expenses).
Sales Per Week
Men
Women
Total
Week 1
0
0
0
Week 2
0
0
Week 3
420
630
1,050
Week 4
504
756
1,260
Week 5
616
924
1,540
Week 6
560
840
1,400
Week 7
560
840
1,400
Week 8
504
756
1,260
Week 9 Week 10
448
448
672
672
1,120
1,120
Total
4,060
6,090
10,150
22
Total Sales for Project Period
Total COGS for Men’s T-shirts
Total COGS for Women’s T-shirts
Gross Profit
$10,150
$1,444
$2,732
$5,974
Best Forecast
In the best situation, T-MAJiK plans to sell to 35% of the total population; therefore it
will be selling 1,015 units (2,900 x .35= 1,015). Below are the charts showing the units sold per
week and the sales per week.
Units per week
Men
Women
Total
Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9 Week 10 Total
0
0
40
48
64
60
54
52
48
40
406
0
0
60
72
96
90
81
78
72
60
609
0
0
100
120
160
150
135
130
120
100 1,015
23
Sales per week
Men
Women
Total
Week 1 Week 2
0
0
0
0
0
0
Week 3
560
840
1,400
Total Sales for Project Period
Total COGS for Men’s T-shirts
Total COGS for Women’s T-shirts
Gross Profit
Week 4
672
1,008
1,680
Week 5
896
1,344
2,240
Week 6
840
1,260
2,100
Week 7
756
1,134
1,890
Week 8
728
1,092
1,820
Week 9 Week 10
672
560
1,008
840
1,680
1,400
Total
5,684
8,526
14,210
$14,210
$2,022
$3,825
$8,363
Worst Forecast
In the worst situation, T-MAJiK will be selling to 20% of the total population, which
would total to be 580 units (2,900 x .20= 580).
Units per week
Men
Women
Total
Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9 Week 10
0
0
20
24
36
32
32
32
28
28
0
0
30
36
54
48
48
48
42
42
0
0
50
60
90
80
80
80
70
70
Total
232
348
580
24
Sales per week
Men
Women
Total
Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9 Week 10
0
0
280
336
504
448
448
448
392
392
0
0
420
504
756
672
672
672
588
588
0
0
700
840
1,260
1,120
1,120
1,120
980
980
Total Sales for Project Period
Total COGS for Men’s T-shirts
Total COGS for Women’s T-shirts
Gross Profit
$8,120
$1,155
$2,185
$4,780
Total
3,248
4,872
8,120
25
Year 2012 and 2013
The average units sold per week in 2011 were 91, so to calculate the units sold for 2012,
T-MAJiK multiplied 91 x 52 weeks= 4,732 units. The selling price will remain to be $14.00.
2012
Units per month
Men
Women
Total
2012
Sales
Men
Women
Total
COGS
Men
Women
Total
Profit
January February March April May June July August September October November December
129
193
322
152
228
380
168 168
252 252
420 420
168
252
420
168 128
252 192
420 320
152
228
380
160
240
400
172
258
430
168
252
420
160
240
400
Total
1,893
2,839
4,732
$ 26,499
$ 39,749
$ 66,248
$
$
$
$
9,426
17,830
27,256
38,992
To calculate the units for 2013, T-MAJiK increased the units sold in 2012 by 1/3: (4,732 x 1/3=
1,577 units) 1,577 + 4,732= 6,309 units.
2013
Units per month
Men
Women
Total
2013
Sales
Men
Women
Total
COGS
Men
Women
Total
Profit
January
February March April May June
160
239
399
$ 35,330
$ 52,996
$ 88,326
$ 12,568
$ 23,772
$ 36,342
$ 51,984
180
270
450
July August September October November December
196 212 236 200 196
294 318 354 300 294
490 530 590 500 490
232
348
580
240
360
600
232
348
580
220
330
550
Total
220 2,524
330 3,785
550 6,309
26
V. Capital Budget
The following table outlines T-MAJiK’s likely capital budget for the project period in 2011,
which consists of 10 weeks.
T-Majik Capital Budget
October 06, 2011 - December 18, 2011
Weeks
Business Cards
Web Development
Transportation
Packaging
Men's T-shirt
Women's T-shirt
Printing Fees
Screen Manfacturing
Artist Fees
Interest Expenses
Marketing Expenses
Total Start-up
1
$ 75
$ 18
$ 20
$ 100
$ 88
$ 210
$ 278
$ 30
$ 300
$ $ 154
$ 1,273
2
$$$$$ 57
$ 137
$ 181
$$$$$ 374
3
$
$
$
$
$
$
$
$
$
$
$
$
88
210
278
4
580
Total Financing Required
2,000
Note:
Men's T-shirt per unit
$ 2.20
Women's T-shirt per unit
$ 3.50
Printing Fee per unit
$ 2.78
Orders are based on 40% for Men and 60% for Women
4
$$ 10
$$ 97
$ 231
$ 306
$$$ 4
$ 20
$ 668
5
$$ 6
$$$ 88
$ 210
$ 278
$ 30
$$ 4
$ 20
$ 636
6
$$$ 20
$$ 79
$ 189
$ 250
$$$ 4
$ 25
$ 567
7
$$$ 20
$$ 70
$ 168
$ 222
$$$ 4
$ 30
$ 515
8
$$$ 10
$$ 70
$ 168
$ 222
$$$ 4
$ 20
$ 495
9
$
$
$
$
$
$
$
$
$
$
$
$
-
$
6 $
20 $
$
$
$
$
$
$
4 $
$
30 $
10
4
4
Weekly
Total
$ 75
$ 30
$ 100
$ 100
$ 638
$ 1,523
$ 2,016
$ 60
$ 300
$ 32
$ 269
$ 5,142
27
Expenses
1. Business Cards: In order to promote the t-shirts, T-MAJiK decided to order some
business cards. The initial cost is $50; however, T-MAJiK added an additional $25 in
case the company runs out of cards faster than expected and needs to order more.
2. Web Development: This expense is composed of two parts: the domain name and the
hosting service. The domain name is a one-time fee of $12. The hosting service is $6
each month. For the project period, which consists of 10 weeks, T-MAJiK will initially
pay $12 for the domain name and $6 for the hosting service. Then, T-MAJiK will pay the
$6 hosting fee twice, once every four weeks. The total cost for web development is $30.
3. Transportation Costs: The transportation costs refer to the costs incurred for picking up
the finished goods from MCM, the company’s supplier. This cost may not occur every
week, so T-MAJiK has spread the cost throughout the 10 weeks of the project period.
The total cost will be $100.
4. Packaging: T-MAJiK will be packaging its product and the cost for the supplies will be
$100.
5. Cost of Goods Sold: The cost for a men’s t-shirt will be $2.20 and it is made by a
standard of 50% cotton and 50% polyester. However, the women’s V-neck t-shirt is
$3.50. It is more expensive than the men’s t-shirt because it will be 100% cotton. The
printing cost for men’s t-shirts and women’s t-shirts are the same: $2.78. So, the total cost
for a men’s t-shirt is $4.98 and for a women’s t-shirt is $6.28
6. Screen Manufacturing: This cost is for the production of T-MAJiK t-shirts. It is a onetime set up fee; it requires making the transparency for the design of the t-shirt, which is
$10 per color for each design. The first design includes 3 colors, so the total will be $30.
In week 5, a second design will be launched, also consisting of 3 colors, thus the cost will
also be $30. The total cost for screen manufacturing for the project period will be $60.
7. Artist Fees: T-MAJiK has contracted a professional artist named Brandon Spiegel. The
cost for one of his designs will be $300.
8. Interest Expenses: The total interest expense for the project period is $32.
9. Marketing Expenses: Marketing expenses for the project period will consist of
advertising in the campus newspaper, which is $75 and advertising through Leo FM,
which is $60 for a 30 second commercial, aired 10 times a week. Promotional giveaways
will cost $60 and flyers and posters will also cost $50. The data, or marketing research,
provided by Survey Monkey cost $24. Therefore, marketing costs will total out to be
$269.
Revenues
The revenues are based on the cash sales from T-MAJiK t-shirts. Because T-MAJiK will
carry low inventory of finished goods, the cash inflow will be faster compared to other
businesses. The total amount of units expected to be sold within the project period is 725.
Therefore, the total amount of sales will be $10,150 (725 x $14= 10,150).
28
a. Financial Projections
The financial projections in the table below are for T-MAJiK’s likely situation.
Weeks
Revenues
Units sold for Men
Units sold for Women
Price per unit for Men
Price per unit for Women
Sales for Men
Sales for Women
Total Revenue
T-Majik Financial Projections
October 06, 2011 - December 18, 2011
2
3
4
5
6
1
30
45
$ 14
$ 14
$ 420
$ 630
$ 1,050
44
66
$ 14
$ 14
$ 616
$ 924
$ 1,540
9
10
Total
40
60
$ 14
$ 14
$ 560
$ 840
$ 1,400
36
54
$ 14
$ 14
$ 504
$ 756
$ 1,260
32
48
$ 14
$ 14
$ 448
$ 672
$ 1,120
32
48
$ 14
$ 14
$ 448
$ 672
$1,120
290
435
$
14
$
14
$ 4,060
$ 6,090
$ 10,150
$
$
$
$
$ 638
$ 1,523
$ 2,016
$ 4,176
$
$
$
$
$
Cost of Goods Sold
Men's T-shirt
Women;s T- shirt
Printing
Total COGS
$
$
$
$
88
210
278
576
Gross Profit
$
Operating Expenses
Web Development
Business Cards
Transportation
Packaging
Artist Fees
Screen Manufacturing
Marketing Expenses
Subtotal Operating Expenses
Total Expenses
$
$
$
$
$
$
$
$
$
EBIT
Interest Expenses
$
$
Pre-tax Earnings
Net Profit Margin
$ (1,273) $ (374) $ 470 $ 592 $ 904 $ 833 $ 885 $ 765 $ 1,090 $1,116 $ 5,008
N/A
N/A
45%
47%
59%
59%
63%
61%
97% 100%
49%
$ 97 $ 88
$ 231 $ 210
$ 306 $ 278
$ 634 $ 576
40
60
$ 14
$ 14
$ 560
$ 840
$ 1,400
8
0
0
0
0
14 $ 14
14 $ 14
$ $ $ -
$ 57 $ 88
$ 137 $ 210
$ 181 $ 278
$ 374 $ 576
36
54
$ 14
$ 14
$ 504
$ 756
$ 1,260
7
$ 79 $ 70
$ 189 $ 168
$ 250 $ 222
$ 518 $ 461
$ 70 $ $ 168 $ $ 222 $ $ 461 $ -
-
(576) $ (374) $ 474 $ 626 $ 964 $ 882 $ 939 $ 799 $ 1,120 $1,120 $ 5,974
18
75
20
100
300
30
154
697
1,273
$
$
$
$
$
$
$
$
$
374
$
$
$
$
$
$
$
$
$
576
$
$
$
$
$
$
$
$
$
10
20
30
664
$
$
$
$
$
$
$
$
$
6 $
$
$
$
$
30 $
20 $
56 $
632 $
-
20
25
45
563
$
$
$
$
$
$
$
$
$
20
30
50
511
$
$
$
$
$
$
$
$
$
10
20
30
491
$
$
$
$
$
$
$
$
$
6 $
$
20 $
$
$
$
$
26 $
26 $
-
-
$
30
$
75
$ 100
$ 100
$ 300
$
60
$ 269
$ 934
$ 5,110
(1,273) $ (374) $ 474 $ 596 $ 908 $ 837 $ 889 $ 769 $ 1,094 $1,120 $ 5,040
$ $
4 $
4 $
4 $
4 $
4 $
4 $
4 $
4 $
32
29
In week 6, the company’s cash inflows will cover the loan amount requested. From the
beginning of week 7 to the end of week 10, T-MAJiK will not have many costs: material or SGA
costs. Thus, the cash inflow during this period is very fast and high.
Likely Situation (10 week project period)
Weeks
Cash received
Cash sales
T- Majik Statement of Cash flow
October 06, 2011- December 18, 2011
2
3
4
5
1
$
Subtotal cash from Operations $
-
6
7
8
9
10 Total
$
$
-
$ 1,050 $ 1,260 $ 1,540 $ 1,400 $ 1,400 $ 1,260 $ 1,120 $ 1,120 $ 10,150
$ 1,050 $ 1,260 $ 1,540 $ 1,400 $ 1,400 $ 1,260 $ 1,120 $ 1,120 $ 10,150
$
$
$
$
374
374
$
$
$
$
Expenditures
Finished Goods Inventory
S.G.A Expenses
Interest Payments
Subtotal Spent on Operations
$ 576
$ 697
$ $ 1,273
576
4
580
$ 634 $ 576
$ 30 $ 56
$
4 $
4
$ 668 $ 636
$ 518 $ 461
$ 45 $ 50
$
4 $
4
$ 567 $ 515
$
$
$
$
461
30
4
495
$
$
$
$
Net Cash flow
Cumulative Cash Flow
$ (1,273) $ (374) $ 470 $ 592 $ 904 $ 833 $ 885 $ 765 $ 1,090 $ 1,116 $ 5,008
$ (1,273) $ (1,647) $ (1,177) $ (585) $ 319 $ 1,152 $ 2,037 $ 2,802 $ 3,892 $ 5,008
Below is a chart that shows the cash flows for 2011 (10 week period), 2012, and 2013.
* SEPARATELY ATTACHED ARE THE FINANCIAL STATEMENTS IN DETAIL.
-
$
26 $
4 $
30 $
-
$ 4,176
$
934
4 $
32
4 $ 5,142