BUSINESS PROSPECTUS AND MARKET ANALYSIS FOR

LEVEL 7 GROUP, LLC
OWNERS

Mariah Bond

Amaya Blanco

PO Box 58227 PO Box 58227 New Orleans, LA, 70158 New Orleans, LA, 70158 Phone: 504-231-9098 Phone: 832-7540139 ButterflyHoneyMB@gmail.com hotgurlamaya@gmail.com

January 14, 2009

This document contains confidential and proprietary information belonging

exclusively to Level 7 Group, LLC.

Executive Summary
Company Direction In February 2009, Level 7 Boutique, a merchant of the company Level 7 Group, LLC, established itself to supply retail online services. Such services were in the form of products and services consisting of market related material addressed at women in the areas but not solely of apparel, shoes/accessories, cosmetics, and health and well being products. Essentially, it can be said that this business is marketing to the demand of young women, in the spirit of all things glamorous for a lady, that is fashionable and savvy. The site will maintain an interactive and updated approach and include additional services beyond marketing products such as blogs, tips, videos, themes, polls, pictures, newsletters, articles, surveys, advertising space, and membership areas. Overall, the company can be characterized as the modern day approach to a woman’s lifestyle, fashion, and distinctive taste. Level 7 Boutique is an essential element in the marketplace and its design is to fit the needs and wants that appeal to women today. Company Overview For many years, people have discounted the practicality of designing a site that appeals mainly to women, that is gender specific, and that women can regard as their source to turn to, not only for women’s changing demands, but for life’s fast paced shifting trends. The condition of the industry today is in such a way that women need to be kept up to date with opinions, views, and outlooks from every stance and yet keep personal sense of individual and independent impression. The legal form of Level 7 Boutique is through its entirely separate entity Level 7 Group that has been formed as an LLC. Level 7 Boutique’s business headquarters are located online but may expand in the future to a physical and permanent business address in the private sector. Objectives Based on our projected revenues for the current fiscal year and our projected annual growth, we feel that within three years the company will be in a suitable position for launching both an online and offline campaign. Our objective, at this time, is to propel the company into a prominent market position. 2

Capital Requirements According to the opportunities and requirements for Level 7 Boutique described in this business plan and based on what we feel are sound business assumptions, there may be a time when within our three years time frame or in the future beyond three years that we need capital. In just predicting expected expenses there are costs including office space leasing, wages, insurance, utilities, telephone, office supplies and equipment, shipping, online technology improvements and related expenses for an amount to be approved by a lending institution. Once moved in a physical location, there will be required cabinets, chairs, cubicles and other similarly related office furniture, equipment and supplies. Advanced payments will be needed for the rent and as well for hiring additional labor force. Increases in marketing and insurance will be necessary, there will be need for likely bulk product purchases and possible storage rental units, and for shipping to houses, retailers, distributors, wholesalers or shipping stations. To accomplish this goal we have developed a comprehensive plan to intensify and accelerate our marketing and sales activities, product development, service expansion, engineering, distribution, and customer service. Management Team Our management team consists of two women: Self Employed Owner, Mariah Bond And, Self Employed Owner, Amaya Blanco. The background of these owners consists of more than ten years of experience. Additionally, our outside management advisors provide tremendous support for helpful decisions and guidance.

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Market Analysis Market Definition The women’s culture and its market are growing at a rapid rate. The clear social trends are towards accommodating the switch to a more at home dichotomy, comfort, and convenience. Internet use and purchases have been on the increase with internet purchases, products, services, and technologies on the rise. According to market research and industry sources, particularly the US Census bureau at census.gov, the overall online market for the US is projected to reach 235 Billion in sales in 2009, up from 204 Billion in 2008 and from 174 Billion in 2007. It is estimated to reach 334 Billion by 2012. Competition Companies that compete in this market are few, compared to the overall size of the Internet and diverse range of markets, products, and services. Expected growth of the market is predicted as there are few sites designed for women in relation to all the sites, industries and classifications of material especially an exclusive site catering to just women in the spirit of style and fashion savvy glamour. In all comparisons, Level 7 Boutique provides more features and has superior power to expand than do competitors with fewer products and services. Sites do exist that have large inventories but are of less quality, more generalized and these businesses lack complete customer appreciation. In most cases, the number of differences is substantial. Risk The top business risks that Level 7 Boutique faces are unexpected alterations in the economy and market, that may diminish the government’s forecast and clear history of growth in past, present and future expected online sales. Distribution Channels Level 7 Boutique’s marketing strategy includes a plan to sell our products through several channels. Our distribution channels include primarily drop shipping, but in the near future will involve possibly direct sales and marketing, and product delivery to individuals, businesses and through bulk sales. The determining factors in choosing these channels are profits, related to drop-shipping and initial investment, and corresponding returns verses costs, expenses, time, efforts, and feasibility. 4

Advertising and Promotion The overall advertising and promotional objectives of the company are to position itself as the market leader, progressing safely and securely, as a cautious, yet strategic organization. We will develop an advertising campaign built around _______________________, beginning with a "who we are" statement and supporting it with ads that reinforce this message. Additionally, we will develop a consistent reach and frequency throughout the year. In addition to standard advertising practices, we will gain considerable recognition through search engine optimization, pay per click advertising, email marketing, banner advertisement, ad placements and leasing, and marketing for direct visitor generation. For the next year, advertising and promotion will require no more than $2,500. On an ongoing basis, we will budget our advertising investment as 25% of total sales. Public Relations During 2009, Level 7 Boutique will focus on the following publicity strategies: We will track, wherever possible the incremental revenue generated from our advertising, promotion and publicity efforts. We anticipate that at least 60% of sales will be generated directly from our publicity. Conclusion Level 7 Boutique intends to continue the progress and growth in the market with more unique and effective products, additional services, site visibility and expansion, and branching out into the marketplace.

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Mission
In order to achieve our Vision, this business commits to the following: Level 7 Boutique is to provide innovative, modern, and top-quality products that save time and improve the way women look and feel about themselves. We believe our first responsibility is to the dedicated clients who use our products and services. Our strong financial position will enable us to carry out our day-to-day business as we strive to: 1. 2. 3. Treat our clients with the utmost respect and as the highest priority. Follow the philosophy that our customers are principal and most deserving of our attention and respect. Be considered as the future and integral part of our community.

Company Overview

Level 7 Boutique
www.level7boutique.com
Legal Form of Business The legal form of Level 7 Boutique is as a separate entity formed as Level 7 Group, LLC. Business Location The company is completely online for the time being. This organization has obtained all necessary business licenses and is permitted to conduct itself as a business online.

Strategic Alliances
There are no formed strategic alliances at this time; however, some very important relationships with major companies in the industry may result in the future.

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Joint Marketing Agreements Joint marketing with established companies will produce revenues, credibility, and market presence. Level 7 Boutique is pursuing joint marketing agreements with other organizations to further the name of this company in the market. Our plans will include having them market our products with their product line through banner exchanges, link exchanges, advertisement space exchanging, and joint advertising publication methods i.e. emails that will be similar and work hand in hand to releasing direct mailing flyers, brochures, newsletters, publications, coupons, and other various direct mailers.

Service Strategy
Current Services
Proprietary information is available to investors upon receipt of a signed NonDisclosure Agreement. Level 7 Boutique currently offers online services only: Our principal service consists of meeting needs of every woman in an easy to reach and understand methodology as well as efficient and economical format. Overall, our existing service line includes product sales including apparel, shoes/accessories, cosmetics, health, and well-being, as a general advertising campaign slogan to encompass all things glamorous to the woman of today. Planned Services Level 7 Boutique plans to continually develop new services and enhance existing services. In response to the demonstrated needs of our market, new services and ones being developed in the near future include: • Blogs and news articles on the site • Tips • Interviews Site videos and tutorials Helpful emails-video/audio tutorials Newsletters {online and off} Polls Surveys

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Interactive chat sessions Real time credit card processing Mp3 downloads Coupons Discounts Newsletters Membership areas that include special features and rewards Related site advertising Classes Advertising space Directories A search engine Distributorship to future wholesaling

Service and Delivery
Service Process The process used to produce our services begins with an online product base, as well as client stability and growth. Key factors in this process are targeting the women in the market who have an interest in the site, services, and in meeting their needs and changing demands. Our key suppliers include: [________________________________] Costs We take advantage of economies of scale by providing products and services that will increase profits at an exponential rate and especially enough that, during times that are more difficult would be stabilizing the client base and allow for a plateau to gradual increase in sales. Comparative analysis shows these figures to be as a service verses cost comparison increasingly worth the time, effort, and investment. Shipping Terms Since 2008, Level 7 Boutique has managed its shipping department proficiently. Ground: UPS, FED EX, US MAIL

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Second Day: [US MAIL] Overnight: [FED EX AND UPS]

Market Analysis
Market Definition
Industry Analysis The market is growing at a stable and gradual rate with a proven rate of return. The market for these products amounted to 230 Billion Dollars in 2008. Referenced sources agree that the major trend is towards purchasing more goods and services online due to comfort, convenience, reliability, and more time spent in the home. The overall online market for the US industry is projected to be over 300 Billion a year by the end of 2012. The overall market potential for 2008 was projected by USAtoday.com to increase 17% from 2007: (www.usatoday.com/tech/techinvestor/industry/2008-04-08-online-sales-growth_N.htm) It is estimated to be just over 300 Billion in 2011. Market Segment Key points in defining the market segment are that the web is not only shared by everyone in the US, but by users worldwide. One can market throughout the entire world, there are no limits to the potential of the Internet, as far as selling, and advertising through it, like it was during the days preceding the World Wide Web. The stability of this market’s segment is expected to grow, as predicted by the census bureau and as it can be forecasted in electronics and technological progress in cheaper technology to access the Internet. The forecasts used in the assumption of this market segment’s stability are based also on the increased goods and service purchases, and on the increased number of users and surfing speeds. The major market segments are: Women’s Goods. A) Apparel Shoes Purses Jewelry Cosmetics Health and Beauty 9

The segment of the market is generally based on products with retail prices in the range of $50-$100. The vast majority of sales will be handled through the following sites: www.Level7Boutique.com, EBay, Craig’s List, auction.com, yellowpages.com, and corresponding distribution channels. The minority of sales will be through advertising inserts and mailers. Strengths In terms of product strength, Level 7 Boutique has several distinct advantages over the competition. First, it has advancements in web design, flow and features as well as real time credit card processing, not PayPal or Google checkout, which dissuades viewers with an indirect account setup and off-site payment. Speed and simplicity of purchasing products are the strengths of the company, as well as offering fast and dependable support through both email and telephone. Other product strengths include increased market demand and a host of advertising and marketing methods. Weaknesses While there are some weaknesses inherent in our product, the only notable marketplace disadvantages are competition, advertising costs, product price, site visibility, and brand recognition. Those are mainly predicated upon financial limitations now. By year-end, we should be able to position ourselves as an established and recognized leader on the market and thereby reduce this weakness considerably. Corporate weaknesses, at this time, consist only of limited sales force and team members that will be offset by increased profits and recognition in the market and online, as well as increased funding and advertising effectiveness. However, we are taking steps to obtain sales members, find more cost-effective suppliers, grow our own brand of products and services, market them to individuals and suppliers, and to find financial funding which we feel should alleviate this problem. Environmental threats include market collapse, natural disasters, and military concerns. Opportunities The upside potential for our products and services in the currently addressed markets over the next two years are as stated prior increased online users, increased online technology not limited to surfing speeds and computer technology services. We will be making and producing our own products eventually. We intend on being a distributor for retailers, distributing products to individuals and retailers. If possible, we intend to become one-day wholesalers for other distributors soon after. 10

Based on the conditions introduced in the above analysis, it is apparent that the cost versus all expected benefits outweigh the foreseeable profits versus any unforeseen sector strains.

Threats The possibility of increased pressure on the market system seems to have a stabilizing effect with the new system that will be put in place by President Elect Obama. The military concern seem to be also diminishing with the offsetting of the President to power and office as well of areas of deflation as can be seen through lower gas prices and mortgage industry bailout financing. Pricing The prices for our products are determined primarily by the amount of investment and funding available, factoring in supply and demand, cost benefit analysis and sales support through team members. Secondly, by marketing effectiveness as well as finding distribution channels to be able to sell not only to clients and customers but to other distributors and retailers as well. It is important to know that pricing is essential to our market profile and compared to the competition our prices are reflective of non-generic goods, distinctive origins such as India and Japan that may have increased value and durability with lower costs. Different seasonal aspects of our market affect our pricing because in better times of the season more people tend to have the want and ability to purchase outside the home. Upward expenses would occur as can be seen in travel costs, and product placement, marketing and retailing costs. Furthermore, at less peak seasonal times verses productivity in more temperate weather these two considerations would shift invariably due to factors such as importing products that tended to be cheaper where weather in other countries was better, increased supplies were foreseen and prices were cheaper due to less expensive material and labor costs. Direct Response Mail We will be exploring the benefits of incremental and coordinated direct mail programs in the future. We anticipate a strong profit potential as we strengthen our direct response capabilities. We will be approaching this scientifically as we improve our customer targeting ability. Telemarketing

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We will be using telemarketing services to perform the following functions: •Provide outside sales support Respond to inquiries Generate new business International Market Winter: Mexico Japan India Summer: Russia Switzerland Finland Netherlands United Kingdom Product Rollout Program For first entry into the market, the specific market area we have selected is the Internet and we are concentrating online on people within the US. We may expand gradually into other countries and provide different languages on the site then possibly look for different distributors externally. Distributors we have chosen are: [___________________] Retailers we have chosen are: [___________________] Customer Service Our experience has shown that customers emphasize that service and support is one of their major concerns. Hot-line service is currently available to all customers enrolled in a maintenance/support program. The purpose for this service is to assure customer satisfaction and loyalty allowing us to increase sales as well as maintaining a high profile within our service area.

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Another service that may be added is to provide warehousing of customer inventory. This allows us to book larger orders and provide faster order response. Returns and Adjustments Policy At this time, general trade customs for handling returns are 30-day money back guarantee with receipt. Our customary policy is this: "If for some reason the product is not right for your personal needs or business you may return it for a full refund within 30 days of receipt of product. You must call for a Return Authorization number (RA#). Refunds are made only on the price of the package plus applicable taxes and do NOT include shipping costs." "Credit card refunds are credited to your account and cash/check payments are refunded within 30 days of receipt of returned merchandise in good condition with RA #." Promotion In addition to standard advertising practices, we will gain considerable recognition through making an online and off newsletter then into a publication where a subscription would be needed. The number of trade shows attended will be increased each year. These shows will be attended independently and with companies with which we have joint marketing/sales agreements. Reports and papers will be published for trade journals and technical conferences. Direct Mail In addition to using direct mail to distribute our products, we will exercise our direct customer communications through leaflet attachments, brochures with special incentives, coupons and discounts, select/exclusive products and services, sub-mailing only for exclusive members and other respective specials only to members. The direct mail objective will never be entirely for profit and will be used as a catalyst to promote products and services both online and off. Advertising Budget For the next year, advertising and promotion will require no more than $2,500. On an ongoing basis, we will budget our advertising investment as 25% of total sales.

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Break-Even Analysis The Break-Even Analysis included in our Supporting Documents indicates that the breakeven point will be reached at the onset of the company. Sales are projected to be above break-even at company launch time.

Conclusion
Level 7 Boutique seeks to succeed in the market and continue in the sale of its expanding goods and services. This company intends on growing exponentially on and off line with more unique and effective products and services as well as based on the projected sales increases. Based on the attached financial projections we believe that this venture represents a sound business investment.

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