Entrepreneurship Management

Business Plan for a

Kidswear Company

Presented by :
Ankita Guha
Sanghamitra Kalita
Simron Arora
 “Kids wear, with care”

The Company logo

“ Kids wear , with

care ”

Company mission and
vision
 Mission

 Bring a stylish array of changes to add a vibrancy
and glee to every kid by the eco-friendly way
 


 Vision

 To become the most sought after Apparel
Solution providing Company with Quality,
Innovation and consistency as its unique
attributes. Also, to build a strong network around
the globe, minimizing the lead time under
superior product control system
  Our Strengths
 


 We are determined to convert our vision into reality

by innovation to create a market niche for our
products and by investing in facilities, people, systems
and new technology, diversification into value addition
and improvements in productivity and service to
customers.
 


 Our Values

 We take pride in adhering to ethical business
practices and being a good corporate citizen.
We respect our people and endeavor to provide
opportunities to realize their full potential.
We recognize our responsibility to our customers and
society.

Introduction
 Retailing as a business option

 Garment retailing in India

 Business plan

Kidswear Retailing as a
Business option
 One of the important changes is the increasing
preference for branded apparel


 The other important change that is taking place in

this area is the emergence of kids as an
independent buyer group

Kidswear market in India
 The market for kids' apparel in India exceeds Rs.
13000 crore, of which around Rs. 3000 crore is
constituted by branded kids' wear. The kids' wear
market is growing at the rate of 10% per annum,
which makes it one of the fastest growing markets

http://www.retailinasia.com/article/sectors/fashion/2010/06/indias-kidswe
Business description:
 It’s a kids wear retail store offering variety of apparels
for both boys and girls within the age group of 0-12


 Aimed at the middle class group of customers



 We also offer bedroom and bathroom furnishings

specially for the kids

The Products/ Services

 The company specializes in casual garments for

both, boys and girls in the following age groups:


 New Born (0-12 months)


 Infant (12-36 months)

 Toddlers (2-8 Years)

 Youngsters (9-12 years)

 Hooded T-Shirts - We offer an exceptional range of
t-shirts with hoods that are offered in a multitude of
colors and patterns.

 Printed T-Shirts - We make an extensive range of in
print t-shirts that are offered in diverse colors and
prints.

 Children's T-Shirts - An exclusive range of full
sleeve children's t-shirts

 Half Sleeve T-Shirts - We offer a broad range of
half-sleeve t-shirts

 Cotton Knickers - Knickers are one of the trendiest
as well as the most comfortable garment for kids,
Available in eye catching prints and colors.

The Market


 The kids’ segment contributes 30% per cent of the Rs
43,000 crore readymade apparel markets

 The organized kids’ retail market is worth about Rs
3000 crore

 Growth rate of 10 per cent, current low brand
penetration rate of 8 per cent in this market, which
creates a huge potential for branding in Kidswear

Courtesy:
Scope

 Kids apparel’s estimated market of 13,000 crore, out

of which 3,000 crore is of branded products


 Children who were earlier taken to the places such as

museums and zoos are now being taken to shops
and malls

 It is easier to convince parents to shop for their
children than themselves
Competition

 Existing competitors – Weekender, Lilliput, Oyo,

Benetton Kids, Zapp!!, Gini & Jony

 Almost of all these aim at the high-end customer
providing high range merchandise

 Scope for a kidswear brand with more variety and less
cost is abundant
Market Analysis

 Indian kids wear market is highly competitive market,

especially after big retail stores and chains entered
in the market.


 The share of the Children's & infants' clothing stores

is Rs7,082 millions

Courtesy:
Pricing policy
 The products are targeted at the middle and upper
middle class segment with a price range between
Rs 395 and Rs. 795.
 


 Penetration Pricing will be the pricing strategy for our

business, as our business is new


 So we try to give good quality at low price to

penetrate in the market and try to achieve higher
sales volume to set low price and better quality
strategy.


 Once we achieve this objective then try to charge

higher price for our customized products for value
addition
Promotional strategy

 Our company Merry-go-Round advertises on the

'Cartoon Network' a channel exclusively for kids'.

 Apart from advertising, we also plan to run special
promotions like Kid Fashion shows in collaboration
with the 'Cartoon Network'.

 Advertising:
 
1. Above The Line: Internet

 Radio
 Magazines ( Parents and kids magazines only)
 Newspapers ( Only Weekends for two or three weeks)


2. Below The Line:



▪ Flyers (through hawkers)

Operational plan

 Service Execution
 Merry-go-Round will sell products by following
methods:


 Retail Store: They will open a store in New Delhi,

which will be the primary location for their supplies
storage also.


 Legal Environment
 


 Merry-go-Round has no legal obligations with

their suppliers and customers except for the
printing of animated copyright characters.
 


 The company faces no major legal constraints

Financial strategy and
forecast
 The start-up expenditures for Merry-go-Round are
summarized below:


 Sources of Capital
 Investment requirement 1,000,000


 Total Investment $1,000,000

 Startup Expenses
 Retail store development $346,000
 In-store Staff $290,000
 Capital Expenditures $150,000
 Consulting Services $90,000
 Promotion $5,000
 Total Start-up Expenses $881,000

Sales team


 We have a store manager, a cashier, and 3 sales
persons, one each for the boys’ section, the girls’
section and the furnishing section.



SWOT analysis
 Strength:
 Huge Product Line with variations.
 Business will have longer hours and better prices
as compared to competitors.
 Discounts are available for bundle buying.
 Expertise in getting new products to the market
quickly
 Expertise in providing good customer service
 Customization available for individual customers



 Weakness:
 New in business as compare to rivals
 Huge capital required to start business as credit
is not easily available from supplier in start
 Marketing expense in the start will be huge, to
establish brand name required lot of
advertising
  Opportunity:
 Seasonal business: in summer demand is
very high as new academic session starts
 This Sector is growing fast in state and in the
area our business is operating
 Girls’ wear demand is huge so adding value
in this category will be the great advantage
 High birth rate since past years is another
opportunity for kids wear section
 Animated movies increased the demands
and popularity of printed shirts for kids

  Threat :
 Competition is high and big chains like Wall-Mart,
Gap and Limited Incorporation introduced their
kid’s shops in the city and penetrating in
market
 People are more conscious for pricing due to
recession and going for discounts

Estimated Cash Forecast

                                  Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
Dec Total
 (1) Cash in Bank
   (Start of Month) ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___
___
 (2) Petty Cash
   (Start of Month) ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___
___
 (3) Total Cash
   (add (1) and (2) ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___
___
 (4) Expected Accounts
   Receivable      ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___
 (5) Other Money
Expected ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___
 (6) Total Receipts
   (add (4) and (5)) ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___
___
 (7) Total Cash and
   Receipts (add (3)
and (6) ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___
 (8) All Disbursements
   (for month) ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___
Expenses

 Payroll and other employee expenses 16.23

 Occupancy expenses 3.23
 Office supplies and postage 0.40
 Advertising 1.49
 donations 0.08
 Telephone and telegraph 0.24
 Bad Debts 0.30
 Delivery 0.47
 Insurance 0.66
 Taxes (other than real-estate and payroll) 0.46
 Interest 0.61
 Depreciation (other than real estate) 0.57
 Supplies 0.37
 Legal and accounting expenses 0.31
 Dues and subscription 0.08
 Travel, buying, and entertainment 0.19
 Unclassified expenses 0.64
 _____
 Total operating expense -26.33
 Net operating profit 8.75
 Other income 1.65
 ___________
 Net profit before income taxes 10.40

Graph showing the demand for
kidswear in India (2009-10)
 www.india
ntextilejournal.com/articles/FAdetails.asp?id=2466

Graph showing the demand for
k id sw e a r in In d ia ( 2 0 0 9 - 1 0 )

www . in d ia
n textile jo u rn a lco
. m / im a g e s/ FA d e ta ils. a sp ?id = 2 4 6 6
The anticipated
implementation schedule:

Phase 1
Idea Generation
Idea Screening

Phase 2
Market & Demand Analysis
Feasibility Analysis Phase 3
Project Report & Obtaining Loan
Appraisal Organizing Working
Infrastructure
Establishing Contacts
With Parties , Buyer , &
Market Agency