Liseladele
Lisel Thompson
Tammi Reeve
Danielle Turner
Jeff Giffin
Introduction
• Women dream about the day they walk
into a store and find the exact clothing
they were envisioning in their head…
• They dream about going into a store and
finding the perfect fit of clothing with
the first outfit they try on…
We make dreams
come true…
Liseladele’s future store front in Cherry Creek
Knowledgeable sales staff will
be on hand to help customers
with any needs they might
have including offering them
Champaign and chocolate
Pre-made cloths with be on display
to entice our customs and help
them brainstorm ideas.
The goal of our business is to get our customers
to enjoy designing their own clothes with our help
Target Market
• Demographics: Women, ages 30-45, with
a disposable income, at least a college
education, lives in a metropolitan area
• Psychographics: thinks of themselves as
fashionable, wants long-lasting clothing,
wants diversity in clothing
• Social Status: pride in wealth, “one-of-akind”
Unmet Needs of Target
Market
• Originality “Either trendy or old lady, not
much in between”
• Quality “…clothing that can stand being
washed without falling apart”
• Custom fit “Clothing…that fits women who
look like women, not women that look like
heroin addicts”
Market analysis
• Liseladele will be located in Cherry Creek Colorado
• In 1997, custom clothing sales were at 60.4 million in
Colorado
• Direct competitors: custom tailors and clothiers
• Indirect competitors: stores for up scale women
looking for clothes for a special occasion or where
“money is not an object for them”, as well as clothing
catalogs
Perceptual Map
Originality
High
Liseladele
Designer
Labels
Tailors
Plain
Trendy
Style
Seamstress
Brand Name
Low
Operation Strategy
• The goal of the business is to get the customer
to enjoy the ability to design their own clothes
• Pickup within 2 weeks and free alterations up to
a month after receipt
• Liseladele’s is involved in all aspects of the
clothing industry
• Nick of Time Textiles can work with our low
volume needs
Ongoing Operations
• Boutique in Cherry Creek Colorado, with possible
expansion to Los Angeles California, Chicago
Illinois, Dallas Texas, and Boston Massachusetts
• Forecasted operations on a per store basis:
–
–
–
–
–
3 Designers @ 15% Commission and 10k/yr
2 Sales Associates @ 15K/yr
3 Seamstresses @ 40K/yr
Accountant @ 7K/yr
Legal services @ 4K/yr
Development Strategy
• Will Need: Commercial space,
furnishings, fabric wholesalers, staff,
equipment
• Expenses include: leases, decorations,
furniture, fabric swatches, machines,
marketing
• Total expenses: $210,000
Marketing Plan
• Three Unmet Needs:
– Quality
– Originality
– Fit
• How Liseladele will meet these needs:
– Fabric & Stitch work
– Consumers Do the Designing
– Custom Making Each Piece
Benefits and Sustainability
• Unique Benefits
– Women will feel confident and sexy
– Consumers will be saving time
• Customers:
– Initially from Competitors
– Quickly Build Strong Customer Base
– Customer loyalty and name brand will create
barriers to entry
Marketing Plan, cont…
• Price:
– Type & Amount of Fabric, Design Complexity
– $4-$80 per yard, average of 3 yards per garment
– $250-$10,000 per Item
• Advertising:
– Before Opening: Local Newspapers, Flyers, Direct
mail, Grand Opening Party
– After Opening: Yellow Pages, Direct Mail, Website,
Stealth Marketing
• Products Sold through Store only
Management
Liseladele
CEO
General Manager
Seamstresses
Salespeople
Designers
Revenues
$1,600
Revenues ($000)
$1,400
$1,200
$1,000
$800
$600
$400
$200
$0
Year 1
Year 2
25%
2
2.5
Growth
Sales/day
Year 3
25%
3.1
Year 4
4.5%
3.3
Year 5
4.5%
3.4
Profits
$250
Profits ($000)
$200
$150
$100
$50
$0
-$50
Year 1
Year 2
Year 3
Year 4
Year 5
% Gross Profit
53.8%
60.5%
62.0%
63.0%
63.5%
% Net Earnings
-4.7%
13.9%
14.6%
15.9%
15.9%
Cash flows
300
Cashflow ($000)
250
200
150
100
50
0
-50
-100
-150
Year 1
Year
Year 3
Year 4
Year 5
Funding
• Raise $210,000, Offer 40% of
Company
• 60% IRR for Angel Investors
• 23 P/E
• Exit Strategy: Liseladele
buyout
Risks
• Fabric delay/Problems with wholesaler
- Have back-up fabric companies
- Discounts for customers with late clothing
• Copy of business
- By the time competitors copy our idea,
Liseladele will already have strong customer
loyalty
Conclusion
• Quality, fit, originality
• Wine, champagne, and
chocolate
• Satisfied, confident, and
fulfilled women
We make dreams
come true…
Revenue Model
Revenue
Number of Customers
Fee per Customer
Total
Year 1
Year 2
Year 3
Year 4
Year 5
624
$1,130.00
705,120
780.00
$1,130.00
881,400
975.00
$1,130.00
1,101,750
1018.88
$1,130.00
1,151,329
1064.72
$1,130.00
1,203,139
• Number of customers: 2 sales per day, six
days per week, 52 weeks per year
• Fee per customer: weighted average of prices
(60% at $250, 28% at $1000, 10% at 5000,
2% at 10000)
Sales and Marketing Costs
Year 1
Year 2
Year 3
Year 4
Year 5
873,600 1,092,000 1,365,000 1,426,425 1,490,614
Net Revenues
Sales & Marketing
Drivers
Salaries and Benefits
Commissions % of Revenue
Newpaper/Magazine
Direct Mail
Stealth Marketing
Internet
Yellow Pages
All other expenses % of Revenue
Total Sales and Marketing
% of Revenue
34,500
34,500
46,800
46,800
48,000
15% 131,040
64
1,000
1,000
5,200
1,197
163,800
204,750
213,964
223,592
1,000
1,000
1,000
1,000
200
1,197
200
1,197
200
1,197
200
1,197
2%
21,840
222,537
20.4%
17,472
191,473
21.9%
27,300
281,247
20.6%
28,529
291,689
20.4%
29,812
303,801
20.4%
Operation Costs
Year 1
Year 2
Year 3
Year 4
Year 5
Salaries and Fringes 339,250 339,250 427,050 427,050 462,000
Facilities
79,500
79,500
79,500
79,500
79,500
Depreciation
27,220
27,220
29,970
29,970
33,270
Production Supplies
Total COGS $445,970 $445,970 $536,520 $536,520 $574,770
%of Revenue
51.0%
40.8%
39.3%
37.6%
38.6%
Development Costs
Leasing:
• -Deposit: $6,000
• -First month’s rent: $6,000
Decoration: $100,000
Furniture:
• -Tables: $150 x4
• -Couches: $600 x 4
• -Counters: $800 x 2
Fabric Swatches: $360
Sewing Machines:
• -Surger: $3,500 x 5
• -Pressing machine: $1,000 x 2
• -Cutting table: $150 x 5
Marketing and Promotions:
$70,000
Total: $210,000
Timeline
Activity
File for trademark of name
Lease or rent commercial property
Find a fabric wholesaler
Order swatch samples
Hire seamstresses
Purchase sewing equipment
Store is operational
Hire designers
Decorate and furnish boutique
Hire retail employees
Market and promote boutique
Grand Opening
Manufacturing
Marketing
Milestone
1
2
3
4
5
6
7
8
9
Week
10 11
12
13
14
15
16
17
18
19
20
Barriers to Entry
Our competitors will not be able to respond to this
newly created place in the market very quickly. Because
our idea is as unique as our clothing, competitors will
have to become us to respond. Without having
designers available and a system in place, it will take our
competitors quite sometime to match us. Plus,
contracts with existing wholesalers will make it hard for
them to create a made-to-order inventory. By the time
they are in our market, we will have such strong
customer loyalty, that seducing our customers away will
not be an issue.
Marketing Strategy
• Grand Opening Party
– Invite Cherry Creek Socialites, other local business
people
– Invitations, create database
• Create list of potential consumers
– Visa/MC/etc: amount spend on clothing,
demographics
– Area Spas
• Direct Mail
– Rewards (Bring friend, get 20% disc)
– “Come see your personal designer, Claudette”
Age / Price willing to pay
12 female individuals
$1000 +
18 years
42 years
$50-$249
66 + year
Fashionable / Ave Price willing
to pay
12 Female Individuals
Least Fashionable
$1000 +
42
$50-$249
Most fashionable
Future
• House calls
• Computer program to draw designs
• Expansion to other cities
Investors
• Investors share: 40%
• IRR: 60%
• ROI: 1049%
• Future value: $2,202,010