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Award of degree of Master of Business Administration
2009 – 2011
Submitted by Esha Sharma
Guided by Lokinder Kumar Tyagi (Internal Guide)
BHARATI VIDYAPEETH DEEMED UNIVERSITY INSTITUTE OF MANAGEMENT & RESEARCH, NEW DELHI
An ISO 9001:2008 Certified Institute NAAC Accredited Grade “A” University
CRISIL Grading – MBA Programme
A * - National Level A ** - State Level
Certificate of Originality
This is to certify that the Business Plan entitled “Readymade garment shop” Submitted to Bharati Vidyapeeth Deemed University Institute of Management & Research, New Delhi in partial fulfillment of the requirement for the award of the degree of MBA is an original work carried out by Ms. Esha Sharma under the guidance of Mr. Lokinder Kumar Tyagi. The matter embodied in this project is a genuine work done by Esha Sharma to the best of my knowledge and belief and has been submitted neither to this University nor to any other University for the fulfillment of the requirement of the course of study.
Signature of the Student Esha Sharma
Signature of the Guide Designation
This is to certify that the Business Plan titled “Readymade garment shop” is an academic work done by “Esha Sharma” under the guidance of Mr. Lokinder Kumar Tyagi submitted in the partial fulfillment of the requirement for the award of the Degree of MBA from “Bharati Vidyapeeth Deemed University, Pune”. The authenticity of the Business plan will be verified by the viva examiner which includes the verification of data the contents therein and may be rejected due to non-fulfillment of quality standards.
Prof (Dr.) Sachin S. Vernekar (Director)
An Ambitious work of this kind. Lokinder Kumar Tyagi (internal guide) in my college for showing the right path and encouraging me for the preparation of this report. I am very much thankful to all those people who gave me their valuable time and related information about the project. Name & signature of the student Esha Sharma .Verneker who has enriched my knowledge and gave me a moral support to do this report.Acknowledgement Every piece of hard work requires the combined efforts and talents of many people.Sachin. providing analytical review to the subject would have remained a concept rather than the finished product without co-operation of those who respondent to our request to contribute. I am also highly thankful to Mr. I extremely thankful for his involvement and interest and providing necessary guidance regarding concept clarity of the project and support during all the stages of this project.S. I am very much graceful to our respected Director sir Dr.
Similarly it is possible that theoretical knowledge acquired in the classroom may differ from the practical knowledge. It is a business which runs on a small scale so not a deep research is done but a personal interview method is followed to collect the information from different retail garment shops and only few shops are surveyed by me.Preface A student without practical Knowledge is just like a rough student. I have made my business plan on the topic retail garment business and I have described about the business “READYMADE GARMENT SHOP”. the owner of the shop & workers in the shop. It is quite true that world outside: your cosy home is many times quite different from what you have perceived. To polish and shape the student one must have the practical knowledge of what he has learnt. Name & signature of the student Esha Sharma . the expenses & the various taxes. The description in the project is about how to launch a garment shop on a small scale business and what are steps taken to launch a shop in a particular market. The further description is about the products offered. For the management students. theoretical knowledge is just like lock without key. so practical knowledge is of utmost importance.
1 Description of management team Chapter-3 Environmental Scanning of Business 3.Contents Chapters Executive Summary of Business Plan Chapter-1 Introduction 1.2 Competitors Analysis (SWOT of Competitors) 3.1 Introduction of the retail industry 1.2 Description of Business and target markets 1.2 Plans for expansion 4.5 Strategies framed to overcome environmental Challenges Chapter-4 Manufacturing and Operations 4.1 Personnel needed to manage Business Page no 1 2 3 10 14 15 16 22 23 30 32 33 34 35 36 37 38 40 41 .4 Limitations of Business 3.1 Location of Production facilities 4.3 Objectives of Business Plan Chapter-2 People (Management Team) 2.3 Opportunities and Reasons of Entry of Business 3.1 Industry Analysis 3.3 Product modification necessary to adapt to local environment Chapter-5 Personnel Strategies 5.
3 Current sources of funding – Private and Bank funding 8.4 Strengths and weaknesses of the Industry – Barrier to entry Chapter-7 Marketing Plan 7.2 Identification of key assumptions 8.1 Market Conditions 6.4 Products Strategy 7.5 STP (Segmentation.1 Distribution Strategies 7.3 Training needs of existing personnel Chapter-6 Market Research 6.6 Potential risk and sources of protection Risk in Business Implementation Schedule 42 44 46 47 47 48 49 52 53 54 55 56 57 59 60 64 65 65 66 67 68 69 .5 Tax Consequences of Business 8. Targeting and Positioning) Chapter-8 Financial Decisions 8.1 Performa financial statements and projected cash flows 8.4 Financial needs and future needs of funding 8.3 Competition 6.3 Promotion Strategy 7.2 Experience and expertise of existing personnel 5.5.2 Pricing Strategy 7.2 Existing Demand of target Market 6.
Appendices Bibliography 70 71 .
The owner of the shop is me and I have engaged three workers in the shop who will contribute to the sales and profits in the business and the capital is also invested by me and my father in the business. My shop also provides the facility for the repair such as stitching of the clothes and altering of the clothes. Especially ladies. The other clothes which are available in my store are for the daily wear. kids. . tops and other accessories. I have decided to open a readymade garment shop to introduce new category of clothes in the market which may be something different from the clothes already available in the market. track suits. leather garments. workout gear. the women especially working or homemaker want to look gorgeous without being too traditional.Executive summary of the business plan With the change in the trend in fashion market Readymade Garment have become very popular. Most of the people used to wear readymade garments have become very popular. My shop basically has jeans & trousers. So. Today. shirts & tops. headgear and baseball jackets. women. kids. Most of the people used to wear Readymade Garment in case of time saving activity. man and college going girls. skirts. party wear and for the ceremonies. boys. It covers almost all types of customers. my shop has the products which are related to active wear. This tagline briefly means the shop completes every type of customer either girls. The shop basically targets teenage girls and college going girls as my shop has the availability of wide variety of kurtis. kids. night wear and bath wear. teenage girls and college going girls have taken very much interest in new designs and fashionable garments. I have named my garment shop “TRENDZZ” and gave the punch line to the shop “completing the family” as I have gave this tagline to influence the customers and the people in the mar that they attract towards my shop and took visits in my shop.
Chapter-1 Introduction 1.1Introduction of the retail industry .
Readymade Garment Shop provides better design dresses to customers. Lack of trained manpower. In recent years many people are interested in wearing Readymade cloths and specially ladies have most interest in that type of cloths so when the researcher is a lady it takes too much interest for the topic. Especially ladies have taken very much interest in new designs and fashionable garments. Retail is India's largest industry. Readymade Garment Shops are opened. Fashion is growing up day to day. Most of the people used to wear Readymade Garment in case of time saving activity. But it takes too much time. The organized retail industry in India had not evolved till the early 1990s. In movies actor and actresses are wearing different types of dresses. tax . Most of the people used to wear Readymade Garment Shop have become very popular. There are various other companies are also work to give better quality product. Ashika Sarees and Dresses. the industry was dominated by the un-organized sector. Until then. Indian retail is expected to grow 25 per cent annually. Some people purchase cloth material and visit at the tailor shop for stitching the dresses they like. So that researcher selected the subject Readymade Garment Shop as the study of the project. There work of various types of stitches like “Kashmiri Buta. With the change in the trend in fashion market Readymade Garment have become very popular. Driven by changing lifestyles. It accounts for over 10 per cent of the India's GDP and around eight per cent of the employment. Saujnya Dresses. Each and every person wants to look like a hero and heroine. India's huge middle class base and its untapped retail industry are key attractions for global retail giants planning to enter newer markets. they want to wear more fashionable clothes. Readymade Garment Company like as Nain See Private Ltd. strong income growth and favorable demographic patterns. with a limited number of brands. Garden Dresses makes garment very attractive and it gives it special effect to that garment or dresses to be very attractive. Kunadan Work or Jardari Work is become very famous in new trend.The technology advances each and every sector has been rapidly developed like a Government Sector. People are satisfied from Readymade Garment Shop and people also save their valuable time. It is expected that retail in India could be worth US$ 175-200 billion by 2016. It was a sellers market. Retail sector is one of India's fastest growing sectors with a 5 per cent compounded annual growth rate. With the increase in fashion every person want to wear that type of cloths. and little choice available to customers. Every person wants to look like them. As the fashion takes place. Engineering Sector and many more then how can the “READYMADE GARMENT SHOP” become backward.
A perfect business model for retail is still in evolutionary stage. Following Pantaloon's successful venture a host of Indian business giants such as Reliance. unsorted food provisions and daily fluctuating prices as against consumer expectations of round-the-year steady prices. unpredictable availability. With the intrinsic complexities of retailing such as rapid price changes. Procurement is very vital cog in the retail wheel. . Birla and others are now entering into retail sector. sorted and cleaned food and fresh stock at all times. and low share of organized retailing. entertainment and food all under one roof.laws and government regulations all discouraged the growth of organized retailing in India during that period. It is feared that the entry of global business giants into organized retail would make redundant the neighbourhood kiryana stores resulting in dislocation in traditional economic structure. The taxation system still favours small retail business. But retail offers tremendous for the growth of Indian economy. The retailer has to fight issues like fragmented sourcing. A number of factors are driving India's retail market. nuclear families in urban areas. Lack of consumer awareness and restrictions over entry of foreign players into the sector also contributed to the delay in the growth of organized retailing. Trained human resource for retail is another big challenge. hefty pay-packets. If all the above challenges are tackled prudently there is a great potential that retail may offer employment opportunities to millions living in small town and cities and in the process distributing the benefits of economic boom and resulting in equitable growth.malls and huge complexes that offer shopping. All the companies have laid out ambitious expansion plans for themselves and they may be hampered due lack of requisite skilled manpower. Also. constant threat of product obsolescence and low margins there is always a threat that the venture may turn out to be a loss making one. These include: increase in the young working population. The talent base is limited and with the entry of big giants there is a cat fight among them to retain this talent. But there is a flip side to the boom in the retail sector. India's retail boom is manifested in sprawling shopping centers. Foundation for organized retail in India was laid by Kishore Biyani of Pantaloon Retails India Limited (PRIL). the growth path for organized retail in India is not hurdle free. increasing working-women population. increase in expenditure for luxury items. increase in disposable income and customer aspiration. multiplex. Bharti. This has resulted in big salary hikes at the level of upper and middle management and thereby eroding the profit margin of the business.
had to build their own network.1 Growing retail space The growth of the readymade garment industry is inextricably linked to that of retailing. A boost to the industry would come from allowing foreign direct investment in retailing. . however. In commerce. Retail establishments are often called shops or stores. such as departmental stores and malls. are forms of non-shop retailing. Purchasers may be individuals or businesses. boutique or kiosk. This may also encourage newer entrants. Shopping streets may be for pedestrians only. Sometimes this is done to obtain necessities such as food and clothing. While KSA Technopak. either directly or through a wholesaler. Recreational shopping often involves window shopping (just looking. For long.1. a "retailer" buys goods or products in large quantities from manufacturers or importers. and then sells smaller quantities to the end-user. better placed to understand the dynamics of the business. like electric power. The rapid growth in recent years of various retail formats. sometimes it is done as a recreational activity. or by mail. The term "retailer" is also applied where a service provider services the needs of a large number of individuals. Online retailing. 1. not buying) and browsing and does not always result in a purchase. with little retail expertise. Retailers are at the end of the supply chain. expects some 200 malls to come up over the next two years. such as delivery. a textiles and retailing consultant. Apparel retailers. The latter are. in small or individual lots for direct consumption by the purchaser. shopping streets with few or no houses or in a shopping mall. which would increase space considerably and also bring international practices to India. the growth in retailing is still seen with skepticism by apparel companies. at considerable expense.Retail consists of the sale of goods or merchandise from a fixed location. once the distribution costs decline. such as a department store. the bane of the domestic readymade garment industry was the inadequacy of the distribution system. Shopping generally refers to the act of buying products. Players still believe that the retail industry is in its infancy. such as a public utility. Manufacturing marketers see the process of retailing as a necessary part of their overall distribution strategy. Shops may be on residential streets. Most of these projects are executed by real-estate developers rather than retailers. Retailing may include subordinated services. Sometimes a shopping street has a partial or full roof to protect customers from precipitation. has given a fillip to the industry. a type of electronic commerce used for business-to-consumer (B2C) transactions and mail order.
1. which have the ability to drive volumes.3 Towards lower price points The brands may not even be as expensive as they are today. they believe would help showcase their entire range of products. There has been a market for such products.1. in the past. Few retail formats in India operate on a truly large scale. The increasing share of retailers' private labels is squeezing the space available for their . till now. their entry is unlikely till such time FDI is permitted in retailing. are what the industry would need. Louis Philippe shirts have sold for Rs 4.000 and more. Brands have grown to depend upon such sales to drive up their volumes. the promise of high quality has held value for customers. branded players now have a good incentive to introduce products at lower price points for the mass market. which.1. They would have to move towards a low-margin. however.1. Indian Rayon and Zodiac Clothing have built an extensive retail network over the years. But players may still find it tough to cater to this market. This would also need a far larger distribution network than what exists today. has shown that the branded apparel segment cannot afford to miss out on the opportunity in mass markets for long.1. Raymond. has been the preserve of smaller and relatively unknown players. With the exemption of excise duty on cotton garments and the creation of a level-playing field. But the strong response to a flurry of price cuts across sectors. been predominantly positioned in the premium segment. volume-driven business. as well as build their brand image.2 Expanding the retail network Apparel manufacturers were among the first to foray into organized retailing. The leading ones have. One has to only see the huge response to a Color plus sale to get an idea of the growing demand for branded clothing at lower price points. they also continue to set up their own outlets. ranging from airlines to telecom. Having their own outlets. Clearly.4 Tussle with private labels Manufacturers have found it is advantageous to have their own outlets for another reason. 1. Even as they retail through other multi-brand outlets and departmental stores. Giants such as Walmart and Carrefour.
For instance. believe that once women try out private labels and get more accustomed to Western wear. In some parts of the world. Soft goods . however. private labels can help build markets for brands. often bear a resemblance to a collection of specialty stores. This kind of market is very old. but this market is increasingly being taken over by large retail chains. Retailers enjoy better margins on their own labels. Discount stores – It tends to offer a wide array of products and services. which have a presence in the segment through Allen Solly. 1.1. Private labels. but they compete mainly on price offers extensive assortment of merchandise at affordable and cut-rate prices. and other fabrics. . The likelihood of private labels emerging as a major threat to brands has been debated endlessly. but private labels have managed to do well in this segment.clothing. There are the following types of retailers by marketing strategy: • • Department stores – It is a very large stores offering a huge assortment of "soft" and "hard goods. plateau in the boom periods. and countless such markets are still in operation around the whole world. sporting goods. they are likely to upgrade to a more expensive brand. when brands stand to gain. furniture. Private labels tend to do well during recessions. apparel. Going one step further. the women's apparel segment is yet to take off in a big way. The players such as Madura Garments. etc. Retail is usually classified by type of products as follows: • • • Food products Hard goods ("hardline retailers") . electronics. the retail business is still dominated by small family-run stores. Players in the branded segment also contend that customers are eventually won over to brands by familiarity and quality assurance.5 Types of retail outlets A marketplace is a location where goods and services are exchanged.appliances. and are also able to price them lower.own brands. The traditional market square is a city square where traders set up stalls and buyers browse the merchandise.
The operating cost is comparatively less than other retail formats. stocking everyday or roadside items. Convenience Stores. These stores are seen in local community often are family-run businesses. robotic kiosks located in airports. Specialty Stores.By supplying wide assortment in a single category for lower prices a retailer can "kill" that category for other retailers. Supermarkets . Malls-They have a range of retail shops at a single outlet.It is a retail outlet that is owned and operated by individuals. A pet store that specializes in selling dog food would be regarded as a specialty store. They provide limited amount of merchandise at more than average prices with a speedy checkout. malls and grocery stores.• • • • • • • • • • • • General merchandise store – It is a hybrid between a department store and discount store. Some stores take a no frills approach.provide variety and huge volumes of exclusive merchandise at low margins. Hypermarkets. Variety stores – The variety stores offer extremely low-cost goods. They endow with products. Big-box stores encompass larger department.sell mostly food products. The range of products are very selective and few in numbers.It is a self service store consisting mainly of grocery and limited products on non food items. . For few categories. while others are "mid-range" or "high end". the products are displayed at the centre of the store and sales person will be available to address customer queries and give suggestions when required. Other types of retail store include the following:• • • Automated Retail stores are self service.A typical specialty store gives attention to a particular category and provides high level of service to the customers. food and entertainment under a roof. Demographic – The retailers that aim at one particular segment. This store is ideal for emergency and immediate purchases. Warehouse stores -The warehouses that offer low-cost.These stores are essentially found in residential areas. depending on what income level they target. such as electronics. Convenience store is a small store often with extended hours. discount and general merchandise and warehouse stores. often high-quantity goods piled on pallets or steel shelves. with limited selection. Category Killers or Category Specialist. Supermarkets. Mom-And-Pop or Kirana Stores.
kitchen accessories and more. typically in a rural area. fabrics for shorts and trousers. multi-benefited governmental. with massive visibility and consideration margins. 1. hosiery. Raw material It can be cotton. and you name it produces. polyester. technical fabrics and so on. integrating whole range of raw material to finished product that includes fiber manufacturing. Branded readymade garments account over 21 percent of the readymade garment industry. Accounting nearly Rs.000 crores.1. . In recent years. polypropylene and acrylic. The industry provides almost every single aspect which is as follows:1. active sportswear. under garments. and garment manufacture.• General store is a store which sells most goods needed. kids wear. to aid above all there are well established infrastructure. denim. knitting and weaving. 2. dress material. silk and manmade fibers like viscose.6 Prevailing trends in Indian readymade garment industry Textile industry in India is widely comprehensive. Additionally. towels. table mats/linens. 20. political and regulatory system that would lure foreign investors. linen. casual wear. the readymade garment segment has seen vertical growth. The largest segment for the readymade garment segment includes the age-group of 16-35 that is very brand conscious and gives priority to high quality. outerwear. 4. this industry is growing at the rate of 20 percent. bath. fleece flats and woolen knits. Fabric production It includes suiting-shirting. Indian companies have marked presence in even nontraditional segments. 3. and wool. spinning. traditional wear. Made-ups production A wide range of bedding. Apparel production It specifies formalwear.
The clothing line that is unique. special. Sector-7. My shop has brought the store look to the masses.D-12 block. All of their tops. Rohini. 5. gents and boys.Shop no-12. 4.2 Description of business and target markets 1. 2.10/10 square feet Qualification: . However. Desk lamps= 10. Office desks & chairs= 10. Rohini Shop area: . kids. My store targets the people which belong to middle class and upper middle class.2.1. Sector-7. Shelves and cabinets for storage=10.2. 3. . Punch line: . threading. Store name: . pitch work and designing & cutting of the clothes. infants. Threads & stitching accessories.2 Essential requirements 1. 6. Clothing stands= 15. my store has no collection of the raw materials but works for readymade garments and made-to-order preparation of clothes.2 years Number of sales persons=3 1. women. making it easy for anyone to put together a well coordinated and princess worthy outfit. basics and accessories from each individual line coordinate with one another. bottoms. and fun.Completing the family Location of the shop: . D-12 block. comfortable.Minimum qualification is 10+2/Graduate Experience: .Trendzz Shop address: .1 Shop history The shop “Trendzz” is a type of discount store or a readymade garment shop for children. teenage girls. stitching. Machines & equipments=2(for stitching and repairing of clothes). and made it simple and affordable for anyone to get the readymade garment store look.
12. 4. Stationary items. Many expecting women like to reward or pamper themselves with nice gifts when they're pregnant. Draperies. kids. Dressing rooms and mirrors. Lights & 10 table fans. Warehouse and godown. 8. 5. 6. The women are used to having fashionable clothes and accessories and it is totally consistent with their purchasing patterns that this preference would remain unchanged once they get pregnant.3 Target markets My shop has chosen girls.7. The output is meant to be something nice and luxurious. . Family are looking for something that will stand out. The restroom. 2. This segment recognizes their friend's appreciation for nice things and are looking for something that they know they will enjoy. Family is interested in buying nice gifts for their expecting friends. 1. they are not the most engaging gift. 9. 10. Much of the current maternity wear and accessories are utility based and while they serve their purpose. 3. women and gents as these most attractive segments to target. that the new mothers will truly enjoy. floor coverings. Clothes hangers= 20. Billing machine and credit card machine=1. 11.2. Seating (small couches. Additional display furnishings. These segments are the most desirable because they have desirable levels of disposable income and they spend it. chairs). Polybags= 40. Equipment or helpful products that you can acquire to once your business is off and running:1. Stools= 10.
Pitampura. New clothes.2. 4. 3. women and kids. 7. 6. To meet immediate requirements of the people. 6. 9. teenage girls. New pattern of clothes. To create demand for different pattern of clothes. 1. To give something new innovation.e.4 Market need 1.2. Avantika market. To have the best quality in minimum price. Sector-8 market. 2. 5. Sector-1. Pitampura. 7. 1. Sector-9 market. 5. Meeting each type of requirements of customers regarding clothes. 3. 4. 4. Sector-7 market. Market in Kohat Enclave. 2. Sector-5 market. 2. Market in S-D block. Sector-3 market. Rohini. . 3. 8. Provide in bulk.2. To increase the sales by 10%. New attractive designing and good fitting of the clothes. To satisfy different types of consumers i. Have an increase in new customer base yearly.6 Mission 1. 8.5 Target markets 1. Sector-2 market.1.
1. It is clear from discussions with stakeholders in the fashion industry that the tension between creativity and economic reality is a stumbling block for the future of the industry. 3. To introduce new creative things in the market. This development underpins multi-brand stores. 5.5. To survive this global restructuring. Creativity is also becoming increasingly evident at retail level. 2.8 Scope 1. 6. 5. but has now developed into a creative element in its own right. 4. To obtain a return on equity of at least 30%. Evaluates the current business model for boutiques and looks at future possibilities for development. single-brand stores and flagship stores. To develop relationships with customers. 4. New trends in the fashion industry. The fashion retail trade once served merely as a support channel. the Flemish fashion industry is increasingly focusing on its creativity to set itself apart from the competition. Explores current trends in the wealth management sector including technology trends and merger and acquisition activity. 1. Discusses key issues relating to the challenges and opportunities facing boutique private banks in today's environment.2. Anyone offering craftsmanship skills in the fashion industry will easily be able to find a well-paid job. 2. . Relationship selling.7 Key to success 1. helping to enhance the symbolic added value of fashion items. 3.2.
Strong fashion and color sense with the ability to create and adapt designs to changing market conditions. creative skills and experience to develop a unique product. 3. To get a position as a fashion designer and gain reputable work assignments to enhance reputation and skills in this field. To get a position of a fashion designer within a fashion industry where I can use my best design. 9. To introduce new creativity in the market. To obtain a position in the fashion design industry. 5. 4. 6. where seamless integration of creativity can be experienced. depending on the nature of the project at hand. 11. 7. 8. Significant ability to interpret people requirements and create designs that pinpoint their target market. 10. Good knowledge of fabrics. 2. Equally adept at performing as a project team member or working independently.3 Objectives of the business plan 1. and the ability to choose the best match between garment design and fabric.1. Proven ability to translate client garment design requirements into design illustrations using leading design software such as Adobe Illustrator and Photoshop. To work in a dynamic and challenging environment. To create demand in different markets. .
Chapter-2 Management team .
Requirement of part-time workers:-2. we will have a small staff of 6 members and me. I will expect a high degree of customer service skills and personality as this is essential to our success. 3. Number of salespersons:-3. inventory control. Number of machines: . All duties will be divided and delegated according to strengths and weaknesses. finance and operations management. A small sales staff will assist co-owners with securing sales. 6. 4. Both co-workers and I will assume leadership roles within the shop and I will be responsible for daily operations. and marketing. The necessities for the start-up for the business:1. giving service and managing inventory and all other administrative duties. I have extensive background in purchasing. creativity. Lamps and table fans:-10. I will assess the productivity and perform informal employee’s evaluations of all employees every six months.1 Shop structure and description of management team The employees will be motivated to work within their creative. assisting customers and general maintenance of stock on the floor.2. Stationary products. . I have spent over 2 years in accounting. and promotions. I will act a general manager. purchasing. Western Wear is a small business and therefore requires a simple organizational structure. As a small business. inventory control. Chairs & tables:-10. strengths and weaknesses. physical and intellectual boundaries. 5. All sales persons and I will be responsible for all administrative functions. I am also the owner of this store an e-commerce store for the years. overseeing marketing efforts.2. At my store. Employee tasks are delegated based upon their level of expertise. These bi-annual evaluations are conducive to the continued growth of our small business. All decisions are made in-line with the company objectives. I will also act as a part-time sales representative. 2.
. Business ownership. 2. 11. Decorated statues. 3. Customer service. we feel the labor pool is such that finding qualified employees will not be an issue. However.2 Staff members Booming a readymade garment store will employ a sales staff of 2 part-time employees. 13. 10. The 2 workers work like stitching. Billing machines and credit card machines. Fashion knowledge. 8. I train them to sell the clothes according to the requirements of customers and pay attention to their requirements and they try to follow my instructions to sell the clothes efficiently. 15. 2. Our sales associates will be paid an hourly wage. Cleaning staff. These positions are yet to be filled. Retail sales and marketing. Clothing import. Storage cabinets. Advertising. patchwork. marketing and promotion. The merchandising. Clothes hangers. Some of the skills necessary to run this type of business other than the necessary business skills:1. and final touch. 12. I don’t have any team of seniors but I and all 3 workers work together as a team. The workers who stitch the clothes and gives final touch and measurement are 2. The workers who involve in selling process are 3. 5. plus commission. Ordering of stock. Bonuses will be provided with each year of sales and service following an annual review to encourage employee retention. 4.7. ironing. 9.
3 Product Description 2. refined casual wear (acceptable provided that you understand what it is) and perhaps most appropriately casual confusion. and travel that is suitable for the street. Small to 5XL: Rs. Small to 5XL: Rs.00 o Men's/Women's Pullover. climbing.00 o Women's.700. and practical for the gym.200. clearly casual.2 Active wear/Sportswear At leisure lifestyle apparel. Short Sleeve. Some of the company's products includes:Men's Pullover. trekking. Other terms include business casual (usually means the Dockerskhakis-polo shirt look). Long Sleeve.1. Small to 5XL: Rs.00 • T-Shirts (100% Cotton) o Men's.600. 2.00 o 2. Long Sleeve. Long Sleeve. Short Sleeve. corporate casual. business appropriate (a step-up from casual). Casual Wear The "casual wear" is only one of the phrases used to describe the trend away from pin stripes and high heels.00 (100% Ladies Cotton) • Denim Jackets (100% Cotton Denim) o Men's.300. high-tech fabrics and functional. is on the rise.200.00 o Men's. Small to 5XL: Rs. 400.00 (100% Ladies Cotton) o Women's. Small to 5XL: Rs. and I offer a range of high-performance clothing for active sport. Small to 5XL: Rs. ergonomic designs. whether they are dressing for success or for an afternoon of leisure. Small to 5XL: Rs. business ready (meaning that a traditional suit must be ready to wear at all times). Stock display. The active wear product includes the following:• Sweatshirts (100% Cotton) . 500. comfortable.00 o Women's.3. from yoga pants to terry track suits.6. I have a variety of products to suit the needs of every individual.250. resort casual"(definitely not allowed in the office). The collection is characterized by modern.00 • Denim Pants (100% Cotton Denim) o Men's/Women's: Rs.3. Small to 5XL: Rs. Short Sleeve.700.
. high-tech.Men's/Women's. Long Sleeve. Fits Up to Shoe Size 15: Rs. more durability.150. I offer a line of workout gear that brings together a combination of high-end. appeal are developing techniques that manage moisture better.00 o Men's/Women's.3 Workout Gear The colorful fashion trainers.125. Small to 5XL: Rs. Small to 3XL: Rs.150. yet. Sportswear and sports styling will continue to grip consumers who desire comfort in everyday wear. although natural looks where the fabric makes the statement will also be important.150.00 o Sports styling will continue to dictate many casual designs throughout 2004.00 • Jacket (Cotton/Polyester Blend) o Women's.3. which in turn will make their lives easier.00 • Smart consumers are driving the performance fabrics of today. Small to 3XL: Rs.00 • Socks (100% Cotton) o Women's. as couch potatoes.00 • Workout Bottoms (Coordinating) (100% Spandex) o Women's. Small to 3XL: Rs. The store workout gear includes:Workout Tops (100% Spandex) o Women's.200. and more fashion.100.00 • Sweat suits (Velour) o Men's/Women's. Short Sleeve. In answer to the consumers' needs companies such as follow-me. Small to 5XL: Rs. will accommodate the massive shift in shoe buying habits. and satin contrast strips and bindings will continue to feature in mass casual wear emphasizing the sporty feel. so it dries faster improving dyetechniques to enhance color-fastness and designing garments that keep people warm without weighing them down. hardly ever indulge in the activities for which the clothes were originally designed. zip inserts. rather than traditional running trainers. Small to 5XL: Rs. They want products with more comfort. Keyholes.150. 2. and unique fabrics with today’s hot fashion trends.
350. and taste. Retail stores' shop windows of showcase styles that. Consumers can find leather jackets in various shapes and sizes or different lengths (such as trench coat. leather. and motorcycles redefined freedom. automobiles. idealized speed.00 The affair with the retired logo is merely another trend in hip hop's long evolution. airplanes. three quarter. From the early twentieth century. by today's standards.3.it's a mentality. following fashion trends from year to year. and hip). satin baseball jackets that mimic those worn by teams of the past. lined satin with attention to the finest details. I carry on this American-made tradition of the classic. They are made of thick. Motorcycle Jackets (100% Black Leather) o Men's/Women's. style. depending upon the consumer's body type. or with shades of gray and black. Vibrant colors and rainbow designs that were once the norm in the seventies and eighties has been replaced with more conservative color schemes.00 • Leather Pants (100% Black Leather) o Men's/Women's. A sports symbol can symbolize far more than one might expect. knee. Since then. Even square-shaped. and captured the hearts of men and women alike. Small to 5XL: Rs. 2. Small to 4XL: Rs. All leather jackets are stylish. The leather jackets developed to protect pilots. height. motorcycle jackets maintained this ideal for decades to come.250. • Baseball Jackets (Satin and 100% Cotton) o Men's/Women's. but the truth is that they are never out of style. In particular. Small to 4XL: Rs400. and motorists from the elements came to symbolize a romantic sense of rugged adventure.3.5 Baseball Jackets Ever since hip-hop innovators and style aviators Outkast appeared on MTV sporting old school Houston Astros jerseys with rainbow colors and 70s flavor. motorcycle jacket.2. the rap world has seen a trend toward old school/vintage sports apparel. I have in my store a line of new. others have been seen in videos "discovering" forgotten logos and athletes. racers. would be considered out of place for men playing on the field.00 • Leather jackets are the most versatile and classic article of clothing the consumer can own. leather bomber jackets have made their return and continue to be popular.4 Leather Garments The leather motorcycle jacket is much more than a coat . While wearing the . They may be extremely stylish and popular.
Even a person dressed in a simple outfit like pants and a T-shirt can instantly express his or her personal style just by putting on a hat. Right now.traditional. Hats are becoming as much an integral part of young people's wardrobes as other fashion items. One-Size-Fits-All Fitted Baseball Cap (Cotton) o Men's/Women's.6 Headgear During the summer. hats are experiencing a boom in popularity that has made them an essential item regardless of the season. including woolen caps with designs knitted in and hats made of furry materials like angora. Another common sight was unlikely combinations of feminine clothes and baseball caps. . fedoras and mesh caps made of natural grasses found favor among both men and women. More and more people are wearing hats of distinctive designs that. and I have a variety of hats to suit everyone's taste. One-Size-Fits-All Beanie (Polyester/Cotton) o Men's/Women's. we believe that headwear offers the easiest means of self-expression in the context of a general trend for casual fashion. These include the following:• • • • • Ski Hat (Wool) Men's/Women's. as an extension of the layered look. and shapes. This fall has witnessed the renewed popularity of the rounded. signifying pure fashion for fashion's sake in an ever-changing culture. recent styles of sporting wear attest to more than locality. One-Size-Fits-All Sun Visor o Men's/Women's. 2. Hats and caps are coming out in a variety of materials.3. while. One-Size-Fits-All Hats have always combined fashion with practicality. colors. offering protection from both the summer sun and the winter cold. current logo of a local team can still symbolize an artist's claims of his/her roots. visored berets known as "caskets" that have been a conspicuous presence since last year. unlike the past hat booms are not constrained by fashion trends. turbans were also a hit. As to why hats have become entrenched as a fashion accessory over the past few years.
Chapter-3 Environmental scanning of business .
respectively. Individuals under the age of 20 wear about 43% of sports apparel. the women's consumer segment. apparel sales market. Women tend to buy at a constant rate. but individuals aged 45 and older accounted for 25% of the market in 1999. . The Market Analysis table and chart. whereas men's apparel growth was 4. and children in the Tri-State Area who require competitively priced. Within all groups. there are no color barriers and customers have diverse backgrounds. below.S.3. women. whereas men's apparel sales have been growing. as well as potential Internet sales. During 1999. and 60% of those spent for men's sports apparel. According to the NPD. 93% of those spent on children's.1.1 Market segmentation My store intends to target men.5% and 3.1% and accounted for 31% of total apparel sales. women spend about 80% of all money that goes for sportswear. Girl's and boy's apparel rose 0.7% and represented 52% of all apparel sales. dominated the U.8%. They control 96% of the dollars spent on their own clothes. branded clothing. Women's apparel sales growth was 3.1 Industry analysis 3. show potential customers in the Tri-State Area by gender and age groups. The consumers range between one year and 60 years of age. a constant consumer group.
Teenage girls: . resort. maximum 30. many firms produce highly styled clothes for department store boutiques and small specialty shops which cater to the fashion-conscious man. and sportswear.The age between 40 to 60 Middle class & upper class Income groups i. lines and style acceptance parallel those of women's wear producers.1. Traditionally. early spring.3.e.000.The age between 1 to 10 Middle class & upper class School going kids 4. maximum 25. coats. Their problems with seasons.The age between 11 to 19 Middle class & upper middle class Income groups i. may and early fall fashions in March and April. spring and summer clothes in January.e.e.000 workers were employed to produce an almost infinite variety of dresses. Women: . holiday collections in June. manufacturers presented two new lines of classic clothing each year. In 1990. particularly women's clothing.1. In the past. and cruise wear in October. Today.3. the women's apparel business has operated on a five-season basis i. suits. Boys and gents: -The age between 1to 59 Middle class & upper middle class 3.1 Adult Apparel The production of adult apparel. fall line merchandise is usually offered to retail store buyers in April. Kids: . changing fabrics for seasons.000 Expected mothers 3. occupies the largest sector of the apparel industry. Men's clothing design and sales are in a state of upheaval.1.000 2. .2 Categorization of the customers 1.3 The category of clothes is explained is as follows:3. over 1.
Competition in the junior market segment has shot up in recent years. The "cheap chic" trend is also spurring consumers to expect more at a lower cost. but individuals aged 45 and older accounted for 25% of the market in 1999.2 Sportswear Individuals under the age of 20 wear about 43% of sports apparel. they represent a target clientele for this industry. Retailers are now much more open to adding new product lines. but the acceptance of casual fashion in men's wear.Other than children's wear. this reduces the maneuverability of small manufacturers who want . the market for men's clothing has grown faster than any other sales category in the industry. which more closely reflect the consumer's identity. provides an opening for small and lesser-known collections. but heavy competition in the market makes retailers very conscious of fluctuations in demand. competing with the "sport-fashion" factor in the final buying decision. The junior market segment is also of primary important in this industry. and branding for sportswear manufacturers. A product's technical characteristics are also very important in this industry. The growth of the sportswear industry is particularly marked among female consumers.3. Popularity and brand visibility are very important factors in buying decisions made by this market segment. as sportswear is often tied in to fashion. Although the larger firms are continuing to gain ground compared to smaller firms.3 Junior Clothing The strong growth in demand in the junior clothing industry has. 3. seeing little difference in style from one brand to another. The current interest in personalized trends. been able to minimize the unfortunate effects of the economic slowdown. marketing. who now see themselves as more athletic and have begin to wear these collections as street clothes. Since women are more "outfit-oriented" than men when it comes to exercise clothing. so far. The introduction of state of the art permanent-press fabrics probably initiated this sales increase. the preference for major brands is not longer unanimous. The widening age gap between youthful and not-so-youthful wearers represents a multitude of challenges in designing. Technical consumers are much more consistent in their buying habits and provide stability during economic slow downs. and brand-name merchandise already has a large share of the market.3. spurred by the growing youth market. 3. has been the main factor.1. with a twofold increase in the number of junior clothing chains.1.
1. children's collections must not only please children.3. manufacturers have adopted the production and sales techniques used in women's apparel. Major firms that market adult collections at the same time as children's copies have a head start in this regard. Since children's wear trends increasingly mirror those of adult apparel. This calls for constant monitoring of the market and a high degree of flexibility and quick adaptation. This segment recognizes their friend's appreciation for nice things and are looking for something that they know they will enjoy. Manufacturers who are competitive in this regard and have the flexibility to adapt their products to fashion trends can find worthwhile niches. kids and women as the three most attractive segments to target. To keep pace with this trend. nonetheless. remains a decisive factor in making purchases. Many expecting women like to reward or pamper themselves with nice gifts when they're pregnant. Family is interested in buying nice gifts for their expecting friends. but also be very similar to current trends in the adult market. given the speed at which children outgrow their clothes. Although children's apparel is a basic family requirement.4 Target Market Segment Strategy My shop has chosen girls. but still remains a small market segment and can be difficult for small manufacturers to enter. 3.to position themselves in the market. Price. It is crucial to follow trends because this segment follows fashion cycles closely. The women are used to having fashionable clothes and accessories and it is totally consistent with their purchasing patterns that this preference would remain unchanged once they get pregnant. It is possible to position one's self with very up-to-date collections at lower prices than well-known collections. These segments are the most desirable because they have desirable levels of disposable income and they spend it." Children's wear manufacturers are becoming highly skilled at producing high fashion apparel. The output is meant to be something nice and luxurious. Kid's fashions have been one of the fastest growing categories of apparel. Mothers (controlling 93% of all apparel dollars spent on children's wear) want their children to have the latest "look. Much of the current maternity wear and accessories are utility based and while they serve . the fashion revolution is affecting even these styles. however. this means following the market closely and providing the resources necessary for product visibility. 3. This has led to enormous numbers of children's wear departments and specialty stores throughout the nation. The children's wear industry has grown considerably in recent years. back-to-school and holidays.1.4 Children's Wear Manufacturers of children's clothing produce large lines from which the store buyer makes purchases three times a year to cover the main selling seasons of spring and summer.
New designs.Shop no-24.1. 3. Dhoom: -Shop no-12. Rohini. 4. Rohini.1. 2. Distribution patterns= no patterns followed. Rohini. If required= no requirement or requirement of raw material after 3 years. sector-7. Family are looking for something that will stand out. Rewa: . sector-7. To give something new innovation. New pattern of clothes.1. A-4 block. Shona wears: -Shop no-14. Pentaloons: . Number of competitors= 30. Rohini.Shop no-18. . B-4 block. 6. 5. 6.7 Basic need of the existing customers 1. 5. Provide in bulk. 3. 3. 5. To have the best quality in minimum price.Shop no-16. Incense: . 3. 2.Shop no-7. they are not the most engaging gift. Kashish: . Competition= medium competition and low competition. 3. 2. D-12 block. 3. sector-7. Main competitors= 6. sector-7.their purpose. that the new mothers will truly enjoy. Suppliers= 4 suppliers.6 List of main competitors 1. Rohini. 4. Rohini.5 Shop participants 1. B-6 block. D-12 block. sector-7. D-10 block. sector-7. 4.
want much more out of their clothes. and the sportswear world provides this through high-tech fabrics. and they don't want them on their clothes either. Sportswear . 3. often carries enormous logos. 8. Little analysis of body shapes and sizes has been conducted since the 1940s for women and since the Civil War for men. style. we believe that all men." From woman’s viewpoint:1. New attractive designing and good fitting of the clothes. Comfort and easy-care Men want comfort and easy-care apparel. "Performance fabrics have been a niche for the athlete. Comfort and easy-care Women avoid wrinkles on their skin. for example.S. president of global marketing for DuPont Textiles & Interiors (DTI). 100% cotton garments that deliver on comfort. particularly smart men. Men's sportswear. Basic needs are as follows:From man’s viewpoint:1. and wear. while women are more subtle. based on our research. but.6. while the logo on the expensive lipstick worn by many a woman remains at the bottom of the handbag. to be flashed only discreetly. women (and men) are winning the battle. New fashion clothes/latest trends of clothes. Branded products Men are more up front about their desire for branded goods. Technological advances have ushered in a new generation of wrinkle-resistant. while retaining a crisp appearance throughout the day. While the Fountain of Youth may be elusive. 2. in the powder room. Ethnic wear. 2. 7.claim to wear the "same" size is one of the many fit anomalies that are a reality today for the U. According to Bill Ghitis. clothing industry. in the ongoing quest for comfortable cotton clothing that won't wrinkle.accurately . Apparel sizing The discrepancy in the actual size of women who may all .
and vacation destinations are among them. such as feminine looking garments rather than unisex. 2. Greater availability of quality retail space.2. Tops with spaghetti straps and multicolored shimmering or sequined borders are gaining ground with girls. From children’s viewpoint:1. Boys are gravitating toward athletic silhouettes: brightly colored. Style is important to these young adults. 3. In addition. printed camp shirts worn over muscle T-shirts. Plastic card revolution.W. Easy to wear clothes 4. cars.2 Competitor analysis S. even if you got women into the stores looking for sporting goods and apparel. There is a definite void in the market for women's related merchandise. analysis of the competitors 3. the teen and tween segments appear to find individuality appealing. 2.1 Strengths 1. but style comes in many different packages cellular phones. Branded products 3. Fashion With fashion continuing to drive the children's apparel market. zip-off pants and shorts that extend several inches beyond the knee. young men's. . without waiting to see how the latter fares with customers.Until very recently.T. and even adult clothing is also inducing retailers to commit to pint-sized incarnations of older styles. industry players are attempting to work more quickly and efficiently to make sure they have the right looks on the floor at the right time. Changing consumer habits and lifestyles. Children's and parents' ever-louder cries for kids' apparel with looks that mirror juniors. Comfortable clothes 3. there was nothing for them to buy.O.
Competent to other competitors. 5. 5. Limited consumer insight a) Lack of detailed region specific customer data. Taxation hurdle a) Inconsistent taxes like octori & freight and entry tax structure. 7. Home delivery. c) Farmer and retailer unfriendly APMC act. Underdeveloped supply chain a) Underdeveloped logistics infrastructure. Inadequate human resources a) Lack of trained personnel at all level. 9 4. Policy related issues a) Lack of industry status for retail. 3.2. 8.2 Weakness 1. b) Numerous license. Having the large number of outlets covering the whole country. b) Absence of national cold chain networks. 3. Lack of adequate utilities . b) Stringent employment and industry laws. Huge profits. c) Lack of national distribution networks and hubs. 6. c) Large grey market presence. 6. 2. permits and registration requirement. b) Vat (value added tax) and multiple taxation issues.4. c) Fragment approach to human resources. Having large inventory. b) Less data on spending pattern.
Political issues. 6. For many the perception of retailing does not go beyond being a customer at a store or at the most from a summer sales job in a mall outlet. 4. creates difficulty in sustaining retail operations across the large geographical spread of the country. Rural retail.a) Lack of basic infrastructure like power. Sectors with high growth potential. 3. 5. The nostalgia.3 Opportunities and reasons of entering business Retail is big business driven by the ever-growing consumer need for an array of products and services.4 Threats 1. automobile and food retailers. factory outlets. 3.2. Fastest growing formats. specialty stores.3 Opportunities 1. Social issues. 3. The inflation. 2. b) Transport facility c) Communication problem 3.2. Lack of differentiation among the malls that are coming. Potential for investment. 3. But there are many behind-the-counter tasks involved in getting the products into the stores and onto the shelves ready for . This creates a marketplace of job opportunities that spans department stores. Poor inventory turns and stock availability measures. 2. Locational advantage. 5. 4. discount merchandisers.
The manufacturing. 6. A Department manager establishes and implements policies. 10. 11. Abundant availability of skilled labor. 7. reviews inventory and sales records as well as coordinates activities with other departments. 5. finance and distribution and information systems. A Planner effectively plans and controls inventories at the location level to maximize sales and profit. Rapid economic growth. 3. A Store Manager oversees employees at a given retail location and steers his or her unit toward corporate sales and profit goals. Career in retailing and retail management. 12. goals. plans sales promotions and maintains sales and inventory records. 2. supervises employees. The franchising. Following are the opportunities are as follows:1.4 Limitations of the business . The distribution. Potential untapped market. More growth opportunities. Strategic license agreements.customers to buy. Joint ventures. The following are examples of positions in retail to give you an idea of the opportunities that waits are:• • • • A Buyer selects and orders merchandise. This lends itself into a breadth of career paths in merchandising. 8. and store management. also directs the distribution of goods. 3. 9. marketing. 4. and procedures for the specific department. Low cost of operations. Cash-and-carry wholesale trading.
more likely to exude joy and as a result will result in happier customers. 2. which triggers huge demand and if there is a demand there also be enough competition for that particular product. A happy employee is less likely to steal. Consumer decides the demand and supply for each product. Less pay structure of the workers. 4. check it daily and see if you are swearing from it and if so make course corrections. Less profit maximization. Teaching them to shut up and listen. Huge expenses on the maintenance of the outlet like cleaning. Hiring people by self and train them self . 4. 8. Business owners are planning strategies to cut through this competition and make more sales and retain customers. Keeping employees happy. 5. 6. Changing customer’s preferences constantly.1.Setting-up a written plan as a road map and follow it. updating of the items etc. Incurring losses. High absenteeism of the staff at the outlets. Changing market conditions constantly. 3. High staff turnover. Outdated technology like machines of billing etc. 3.no one knows what is wanted better than us. Strategies are as follows:1. 10. 2. Analysing the market conditions by surveying method like personal interview.5 Strategies to overcome environmental challenges Consumers are the kings in today’s market. 7. . 3. 9. Some products are there. Huge expenditure on the inventory and salary of the salespersons.
the ones that bought will tell what they likes. Talking to the customers as they leave the store. Offering huge discounts. the ones that didn't buy will tell why they didn't buy. .5. listen and take notes. 6.
Since it is a small garment store I don’t prepare clothes and also small amount of capital is invested in the business. .Chapter-4 Manufacturing and operations My store does not provide the facility of the making and production of the clothes but I have few suppliers who supply clothes in bulk ever quarter of the month.
5. 4. Location of my store and production facility The store currently operates out of a warehouse and office building located in Rohini.1 Location of production facilities The production activity should be located where a firm can be most productive and yield the highest revenues per unit of investment. The further materials have to travel the lower the productivity of the plant will be. Near to skilled labor source. Have good communication links. 3. A highly productive business outlet:• Is one that is near to the market. One that locates close to high value raw materials. The closeness to point of sale. the higher the productivity will be. it is a trial business and analyse if the business will make profit in coming few years or not. 6. Have room for expansion. The 20 square foot facility provides enough room for storage of the stock which is . so that the demand for units of output is high relative to costs of making that input? Is one that is close to a skilled labor force? The easier it is for the firm to attract labor with appropriate skills the more likely it is to produce high value outputs and low costs per unit of output.But my future plan is to introduce hand-made clothes in the market where my store is located and also targets other markets and make my store a big showroom. Away from centers of population . • • The effective location for production will include some or all of the following factors:1. 4. Closeness to raw materials.for noisy. environmentally unfriendly industry. The higher the sales revenue. Currently. 2.
Population and population trends in the trading area. 4. To engage the fashion designers to make hand-made creative and more beautiful clothes. 3. Our retail locations build brand awareness and contribute to market penetration and growth of the brand in concert with our wholesale operations. 000 per square foot with options to extend the lease. Total retail trade potential for different lines of trade.2. 4. 4. The small warehouse is bought on rent. To invest the capital more in the future to expand the business. Factors to be Considered in Choosing Retail Locations:1. 2.2 Plans for expansion Our retail growth strategy is to increase retail sales and profitability by expanding our network of retail store and improving the performance of existing store. and quality of competition. 2. Progressiveness of competition. The store will also consider opening stores in the different states in the next years. The amount of the rent is nearly Rs. 3. Once when the business will earn supernormal profits the there is a plan to hire own ware house which is much bigger in size as compared the current rented warehouse so that more and more stock can be stored and kept safe in the warehouse. To keep my own inventory of different stuff of clothes.000 per month which is paid every month even if the store earns profit or not. A two year lease has been signed at Rs. 5.received from the suppliers and storing in bulk as well as administrative office space. Total purchasing power and the distribution of the purchasing power. Size of the city's trading area. Number. . The facility can be expanded an additional 30 square feet at any time to accommodate growth of the store.2. 4. 6. size.1 My long-term plan for the business 1.
Availability of the big brand clothes. My store already has the collection of clothes which are not expensive can be easily sold anywhere in small area. Procedure of payment of bill through credit card may not be available. 5. To keep more accessories like jewellery. To arrange latest equipments for stitching clothes. Quality of a textile material. Quality of a product. track suits and hats. To advertise my shop through online advertising. upper middle class income group people and low class income group people. 10. 5. 4. 7. 6. 8. 8. To built a big showroom from the small store. make-up accessories. 6. 10. To arrange workers up to 20. 3. No availability of the rest corners and rest rooms in the shop.3 Product modification necessary to adapt to local environment However. 2. Quality of a process of production. 4.4. 9. Non-availability of other accessories. 9. it is beginning of the shop so modification is not much required at the first stage of the business. The modifications if required can be followed are as follows:1. To expand the business in the whole country and opening of the stores in different states. Knitting and embroidery. Clothes repairing facility may not be available like stitching. Less availability of the stock of other clothes like sportswear. This shop is also suitable for middle class income group people. . 7. To earn the profits 5 times of the today’s profits. Less availability of the whole inventory if warehouse facility will not be there.
For the Holiday season we will extend our hours to two .1 Personnel needed to manage business The shop will be open seven days a week during the summer when people are shopping the downtown the whole area.Chapter-5 Personnel strategies 5. Through the winter season we will close on Monday as do most of the downtown retailers.
the overtime will not be counted. Salespersons (girls):. I have only 5 full-time workers and 2 part-time workers and I also sometimes engaged in the process of selling and field work if the workers take leave and on the half-day. throughout the summer customers line up to wait for new stock. Salespersons (boys):. We will be located next to a well known upscale other grocery shops and germent shops in the area. Sick leave= 2 . The salary of the workers is also negotiable and it is based on the working hours and skills of the employees.3 2. Full-time workers= 2.1 4. Part-time workers= 1.000 per month 2. For 2 hours overtime a day= Rs. Salary of the employees:1.nights a week to accommodate those after work shoppers.150 for full-time workers 2.100 for part-time workers The overtime is counted only for the workers if the workers will in the field for more than 2 hours and less than 2 hours of work. Casual leave= 3 2. Number of salespersons: . As long as there is a customer in the store we will stay open and serve them.000 per month For extra working hours:1. Holidays/leaves given to employees:1.2 3. We will be able to capture that traffic. For 2 hours overtime a day= Rs. The personnel information of my shop is as follows:1. Salespersons (part-time workers):-2 As it is small shop.
newly hired workers usually are trained by an experienced employee. Due to . Topics often include customer service. having a college degree or a great deal of experience may help retail salespersons move into management positions. which usually lasts anywhere from a few days to a few months. 5.The leaves are also negotiable with the type of the worker in the shop. For full-time workers:1. This may be especially important for those who sell technical products or “big-ticket” items. especially in larger retail establishments. Most retail salespersons receive on-the-job training. Depending on the type of product they are selling. Minimum graduate with 45% percent marks from recognized university. Casual leave= 3 2. Casual leave= 5 2. such as electronics or automobiles.1 Education and training There usually are no formal education requirements for retail sales positions. Sick leave= 3 For part-time workers:1. Minimum 10+2 with 50% percent with HSC and CBSC for part-time workers.2 Experience and expertise of the existing personnel Retail salespersons typically learn their skills through on-the-job training. Sick leave= 2 5. and cash register operation. but employers often prefer applicants with a high school diploma or its equivalent. training programs are more formal and generally are conducted over several days. A college degree may be required for management trainee positions. In large stores. employees may be given additional specialized training. The candidates who have experience of 6 months in other discount and departmental stores will be highly preferred. Qualification of the workers:1. 2. the store's policies and procedures.2. 3. security. Although advancement opportunities are limited. In small stores.
they often move into positions with greater responsibility and may be given their choice of field in which to work. some employers conduct a background check.2 Other qualifications The employers look for people who enjoy working with others and who possess good communication skills. advancement is limited because one person is often the owner and does most of the managerial work. In some small establishments. However. 5. making a college education increasingly important. In others.2. The employers also value workers who have the tact and patience to deal with difficult customers. The ability to speak more than one language may be helpful for employment in communities where people from various cultures live and shop. some salespersons can be promoted to assistant manager. The highest earnings potential usually lies in selling big items such as jewelry and other items although doing so often requires extensive knowledge of the product and an excellent talent for persuasion. Among other desirable characteristics are an interest in sales work. especially for a job selling high-priced items.providing the best possible service to customers is a high priority for many employers. Before hiring a salesperson. Large retail businesses usually prefer to hire college graduates as management trainees. This opportunity often means moving to areas with higher potential earnings and commissions. a neat appearance and a courteous demeanor. such as financial services. wholesale trade or manufacturing. employees often are given periodic training to update and refine their skills. 5.3 Advancement The opportunities for advancement vary. As salespersons gain experience. 5. motivated and capable employees without college degrees still may advance to administrative or supervisory positions in large establishments.2. The previous sales experience may be an asset as when one is applying for positions with larger retailers or in nonretail industries.3 Training needs of existing personnel staff Training and development continues throughout an employee’s career and is supported by an annual performance review that identifies possibilities for further progression and .
customer service focused training and pre-campaign training. such as for store managers. In addition to the global induction training modules that every employee needs to complete. the career develops.associated training and development needs. When the employees develop. The security. The training consists of different subjects:1. Our training structure is based around non-mandatory training that is relevant to all human resource operations globally. six days a week throughout the month. The yearly performance reviews for all employees are a common practice. The training consists of two parts and is integrated into daily morning meetings in store. . garment presentation and controlling. It also offers training courses at every level that are tailored to each workers specific need. 4. 2. there are individual induction training modules for certain tasks tailored to the role. Managers in stores or other internal trainers carry out most of our training. The textiles. In some stores we have already seen positive results. Allied to these. Customer service. there are a number of non-mandatory global training modules. The three key methods of delivering training successfully which follow a set format like in group’s in-store and individual in-store training. These are: . floor managers and visual merchandisers. This initiative will continue and will also cover challenging customer situations. The customer service-focused training is provided during the 15-minute morning meeting for all employees in every store. 3. staff development. The CSR (Corporate Social Responsibility). Every other week the morning meetings also cover pre-campaign product information. These training modules cover knowledge such as: what it means to be good retailers. Garment handling and care. 5.
the cash desk and fitting rooms through to visual display and the follow-up of advertising.3. . counting.2 Cross store When new stores are opened either in existing sales in new markets. during and after opening.3. 5. This can take the form of colleagues from established human resource procedures for supporting a new store for a period before.5. for instance unloading. labeling and loading garments. the new employees are supported by more experienced co-workers. The employees also alternate between different tasks.1 Stores and warehouses In-store job rotation may mean that a person's duties vary from customer service.
Chapter-6 Market research 6.1 Market conditions .
it can set goals to reach the market. For example. 6. The people who have high demand are girls.2 Existing demand of target market 1. 3. Benchmark and evaluate your success By knowing the size of your market. It might also discover future development plans that could include big-box retailers in the target market location. where little or no competition exists for your product or service. 3. grow customer base and track the relation to the competition. it may uncover direct or indirect competitors that had not considered before who may inhibit ability to gain a competitive advantage in the market. . Hundreds of people consider starting new businesses each year and each of them will ask themselves the same questions:Does my product or service fill a need? Who will buy my product or service? What will my price point be? What are the trends in my industry? Who are my competitors? Market research helps in the following factors:1. women and school going kids. Moderate availability of the branded stock in most of the shops. Mostly the daily wear clothes and household items are highly demanded. Identify and understand opportunities That exists in the marketplace. Pinpoint potential obstacles or problems Through research.A successful new venture sells customers goods and services they want or need and continually grows a base of satisfied customers. how the competitors are doing and who their customers are. 4. it can create marketing campaigns to meet their specific interests and needs. 5. 2. Medium demand in the market where my shop is located. Communicate effectively The targeting can be done through advertising and promotions. By researching your customers and their spending and buying habits. you might find an opportunity to start your business in a geographic location you had not considered before. through primary research. 4. The buyers are generally belong to low and middle income group levels. 2.
3 Competition It is located on a strip that includes a variety of businesses. The other competitive edge we have developed is the atmosphere and reputation.000 every hour Men's and Boys' Clothing:• • • • Rs. Minimum percent of consumer bought the majority of their casual wear at department stores and 21 percent of their dress wears in the area where my shop is located. We are there. 7.53.150 every hour The Consumer Spending Patterns Report states that the average amount spent on clothing per household in Rohini area is:- . The nearest competitor is at least 5 miles away. especially near the lunch and dinner hours. right at the point of entering or exiting the market.200 hundred every week Rs. Women's and Girls' Clothing:• • • • Rs 22. Traffic is moderate to heavy.750 hundred each day Rs.16.75.550 hundred each day Rs. but none of which create any competition.500 hundred per month Rs 5. The specialty stores have grown in popularity with the 13-to 25-year-old segment and department stores have declined in popularity with the same age group.000 hundred per month Rs. Our location of the shop is a very important competitive edge. The closest competing urban wear store is at least 10 miles away.6.3. located in Rohini area.750 hundred every week Rs. 6. There are no other urban wear stores in the direct vicinity of my shop location. We will also offer more personal attention to our customers than the larger mall retail stores.
Successful relationship marketing.2 Weaknesses of my shop 1. Easy to attract people in the market. 9. 6. Unique brands protected by sole supply agreements.4. The stock is the same as our competitors.I have specified the amount in U. in an area with several other shops targeting the same market which draws people to the area. dollars as basically in most of the areas it is calculated in dollars so that easy comparison can be done. 7. 6.4 Strengths and weakness of the industry. 4. 6. 8.4. Shop size is restrictive.1 Strengths of my shop 1. 5. Branded and local clothes are available in my shop. high margin and low volume in comparison.barrier to entry 6. Our product is effective quality despite low level brands. Our innovation is in our sales technique and point of sale displays.S. 3. Current location in the center has high traffic. 2. . One can pick and choose what styles to stock. We only sell a few of brands of clothes.
6. and raw materials and we have not invested much in the beginning. In the extreme case. 5. 4. creating an effective barrier to entry. 4. There is not a lot of competitive advertising in the market where my shop is located and price is not so much of an issue to our customers. store size is an issue. The government regulations may make entry more difficult or impossible. 2. Yet there are no contractual restrictions to us adding products to the store. When a good or service has a value that depends on the number of existing customers. then other retail shop owners are unable to compete in the market. If a single retail shop owner has control of a resource essential for a certain industry. The sunk costs and lost money cannot be recovered if a retailer decides to leave a market. 3. Limited industry experience and industry knowledge.3 Barriers and obstacles faced while entering in the market 1. Shop name is not well known. 7. 5. . The large and experienced retail owners can generally produce goods at lower costs than small and inexperienced retailers. 6.4. then competing players may have difficulties in entering a market where an established retail shop and a showroom has already captured a significant user base.2. a government may make competition illegal and establish a statutory monopoly. 6. building. 3. resulting in stocking a limited product range.The need of the huge capital to start up such as equipment. The incumbent retailers can seek to make it difficult for new competitors and entrants by spending heavily on advertising that new retailers would find more difficult to afford. Small store size and inability to find an expansion. Requirements for licenses and permits may raise the investment needed to enter a market.
but it now includes both inbound and outbound.Chapter-7 Marketing plan 7. At one time the term distribution applied only to the outbound side of supply chain management.1 Distribution strategy The distribution involves a number of activities centered on a physical flow of goods and information. .
4. A distribution strategy defines how you are going to move products from point of creation to points of consumption. The transportation. 3. reduced complexity and specialization. Finished goods management. Distribution channels are formed to solve three critical distribution problems: functional performance. Management of the outbound flow involves these elements:1. Material planning and control. they start serve the customers by showing clothes to them. in a cost-effective manner. Then. Physical management of materials via warehousing and storage. Materials handling or handling of the stock. 2. The purchasing. 3. 2. No particular procedure for distribution is followed but the salespersons in my store communicate to the people who came to my shop and ask their requirements. Warehousing and storage. The distribution strategy defines how you are going to create and satisfy demand for your products. For my shop:The suppliers supply the stock to my shop every 15 days and sometimes also asked if there is an urgent requirement of clothes in my shop. The receiving. 6. . 5. The shipping. Material handling and packaging. It must also define how to manage the brand. 5. Order processing. 4.Management of the inbound flow involves these elements:1.
Small to 5XL: Rs. market place. the rest being cost centers. Short Sleeve.700. Pricing factors are manufacturing cost. Small to 5XL: Rs. shipment or invoice date. Small to 5XL: Rs. market condition and quality of product. promotion or sales campaign.200.00 Men's. In my shop. Pricing is a fundamental aspect of financial modeling and is one of the four Ps of the marketing mix.00 Women's. Short Sleeve.00 Women's.2 Pricing strategy Pricing is the process of determining what a company will receive in exchange for its products. quantity break. so that it attracts different customers in the market.200. and many others. Pricing is also a key variable in microeconomic price allocation theory. promotion.600.00 Denim Jackets Men's. Small to 5XL: Rs. Pricing is the manual or automatic process of applying prices to purchase and sales orders.700. Long Sleeve.00 Women's. The needs of the consumer can be converted into demand only if the consumer has the willingness and capacity to buy the product.00 7. combination of multiple orders or lines. I have fixed the reasonable prices along with the discount and with free gifts. Long Sleeve. price prevailing on entry.250. Automated systems require more setup and maintenance but may prevent pricing errors. Price is the only revenue generating element amongst the four Ps. Small to 5XL: Rs.3 Promotion strategy . competition. and place. based on factors such as: a fixed amount. Small to 5XL: Rs.7.300. specific vendor quote. The other three aspects are product. Some of the shop products and their prices includes:o o o o o o o o o o T-Shirts Men's.00 Denim Pants Men's/Women's: Rs.
promotion. To increase demand. SECTOR-7. ROHINI. NEW DELHI-110085 7. Shop no-12. The questions arise in the promotion are:Where and when can you get across your marketing messages to your target market? 2. However. informing or persuading a potential buyer's purchasing decision. To present information to consumers as well as others. D-12 block. price. How do your competitors do their promotions? And how does that influence your choice of promotional activity? 1. These are as follows:1.Promotion is one of the four elements of marketing mix (product. To differentiate a product. distribution). 3. It is the communication link between sellers and buyers for the purpose of influencing. My shop banner is designed as:- “Trendzz” (Completing the family) All categories of clothes offeredJeans Kurtis Tops Shirts Contact -Esha Sharma. For my shop:I have promoted my shop by giving advertisement in the newspapers not on daily basis but only once in a month to control over my expenses and displayed a banner outside my shop. When is the best time to promote? Is there seasonality in the market? Are there any wider environmental issues that suggest or dictate the timing of your market launch or the timing of subsequent promotions? 3. 2. there are three basic objectives of promotion.4 Products strategy .
distribution and promotion.300. jackets and many more items. competitiveness and success. Category of the pricing set in my shop:1.The product is the catalyst for the start of a business and the development of product strategy one of the most important decisions a marketer will make since product plays a crucial role in demand. Short Sleeve: Rs.00 2. Short Sleeve: Rs. Short Sleeve. For my shop:In my shop there is no special set of the prices but my basic objective to set prices reasonable which can be easily purchased by everyone.200. design. Small to 5XL: Rs.600. sweat suits. Small to 5XL: Rs.00 Women's. The managers analyze the ramifications of the product strategy on other areas of marketing like price.150.200.00 Men's. e.00 5.00 Women's.250. Long Sleeve: Rs.00 Women's. The product strategy involves the various elements which a company has to take into account when developing a product. socks. price. Denim Pants Men's/Women's: Rs.00 4.g. Sweatshirts o o Men's/Women's. Small to 5XL: Rs. denim jackets.00 4. T-Shirts o o o o Men's. gym tops & bottoms. and availability.700. denim pants.00 Men's/Women's. Long Sleeve: Rs.200. Long Sleeve.700. Types of products available in my shop:The products available in shop are t-shirts. Small to 5XL: Rs. sweat shirts. Sweat suits . Denim Jackets o o Men's.
Aged between 11 to 19.00 6.5.2 Targeting .00 9. Seventy-six percent of the 315.Aged 40 to 60. 4.000 females in the area where my shop is located. Women: .5. upper middle class people and low income class people. Small to 3XL: Rs. Kids: . there are approximately 150.000 people. Middle class & upper class people.150.000. 40. totaling 315.1 Segmentation Categorization of the customers:1.100. Jackets o Women's. Fits Up to Shoe Size 15: Rs. Of those 315. Middle class & upper middle class people. Workout Bottoms o Women's. 3.000 males and 165. According to our information. 2.150. Middle class & upper middle class people. Targeting and Positioning) 7. Small to 3XL: Rs.Aged 1to 59.000 are between the ages of 18 and 54 years of age.Aged 1 to 10. Teenage girls: .5 STP (Segmentation. Workout Tops o Women's. Boys and gents: . Socks o Women's.00 7.125.00 7. Small to 5XL: Rs. Small to 3XL: Rs. 000 people have a household income of more than Rs.000 people.o Men's/Women's. 7. 186. Middle class & upper class people.00 8.150. My shop basically targets market is men and women between the ages of 18 and 54 of middle class people.
5. Introducing a seating arrangement for aged people. . 2. 7. Offering the coming customers in the shop the snacks and other refreshments. Providing discount offers on jeans and shirts. Designing an attractive shop banner. 3. Offering other services like repairing of the clothes. 4. Offering minimum price of clothes to the customers. I target the market and the customers by the following ways:1. 6. Introducing offers of exchange of the clothes.For my shop.
1Financial statements and cash flows .Chapter-8 Financial decisions 8.
equipment and materials that are needed to achieve these objectives. as well as the timeframes involved. resources. 3.000 Hangers and stands= 2. 8. Salaries (staff salaries). patchwork & final touch= 700 b) Discount on final product= 10% Salary of the employees:- . The promotion of the shop and stock. The storage of the inventory. The utilities. 6. Usually.Financial planning is the task of determining how a business will afford to achieve its strategic goals and objectives.000 Stationary materials= 1. a company creates a Financial Plan immediately after the vision and objectives have been set.000 Furniture= 10.000 2. Office supplies. 7. Basically. 2. Salary & incentives a) Cost of stitching. the cash flow projection and the balance sheet and a brief explanation/analysis of these three statements.000 Storage cabinets & stools= 20. The maintenance. The inventory. 5. It describes about the activities. the income statement. The expenses which I incurred before opening of the shop are:1. Initial investment a) b) c) d) e) Machines & equipments= 10. 4. the financial plan section of the business plan consists of three financial statements. The telecommunications. The list of operating expenses may include:1.
Income per month 20 26. Monthly sales per month Jan 0.000 8.260 8. Payable 8.000 8.000 10.21 25 29. Part-time workers=1.150 for full-time workers 2.000 8.000 Mar 0.000 per month For extra working hours:1.640 6.000 15.100 for part-time workers Estimated income earned on monthly basis:1.260 Cash outflows Accts. For 2 hours overtime a day= Rs.000 6.000 May 0.000 Apr 0.22 22 22.280 8.000 8.000 . Average sales per unit 3.000 per month 2. For 2 hours overtime a day= Rs.1.000 11.000 8.1Cash flow statement The amount of the cash inflow and cash outflows is estimated on the basis of the product sales.000 8.000 Feb 0.000 15.1.280 7.23 26 28.22 23 27. the inventory sold to the customers and the availability of the inventory in the shop.640 5.260 7. Basis Jan Feb Mar Apr May Cash inflows Collection of A/R 2.22 2. Full-time workers= 2.260 OtherIncome/Sales Total Cash Inflow 8.
204.2.196 13.200 Rs.10.396 6.619 11.820 Rs.000 RS.800 Rs.000 - Total Cash Outflow Cash Position Ending Cash 13.889 Rs.208 11.400 Rs.4.9.600 Rs.8 Profit and Loss analysis I have assumes the profits and losses which will be incurred by me in the running course of business.208 13.361.520 Rs. Baisis Sales Direct Cost of Sales Total Cost of Sales Gross Margin Year 1 Year 2 Year 3 Rs.308.599.708 1 188.8.131.520 Rs.500 Rs.952 10.204 Rs.6.896 Rs.889 Rs.764 1.5.500 Rs.500 Education & training Workman's compensation Insurance .402 Rs.683 Rs.889 Rs.048 11.3. Payable Operating Expenses Taxes Other Expenses 5.6.800 Rs.520 Rs.2.820 Rs.513.300 Rs.919 9. I have estimated the profits and losses for 3 years.3.500 Rs.600 Rs.3.500 Rs.10.600 Rs.204.4.5.000 - 5.248 7.6.503 Rs.239.372 Rs.508 7.900 13.800 Rs.property License & permits Maintenance .000 Rs.100 184.108.40.206.200 Rs.000 - 4.000 - 4.Accts.3.110 Rs.000 220.127.116.11.964 18.104.22.168.3.507 Expenses Advertising Depreciation Start-up costs Rs.403 Rs.208 8.609.896 Rs.237.752 14.600 .119 8.3.883 Rs.619 4.400 Rs.369.000 Rs.5.319 10.600 Rs.shop Marketing Miscellaneous Rs.
Growth drives to the market.1.916 Rs. 3.20% 11.600 Rs.101 Rs.963 Rs.4.500 Rs.1.1.440 Rs.4.393 Rs.1.600 Rs.1.37.500 Rs.137 Rs.200 Rs.200 Rs.9.696 Rs.110. Barriers to entry to those segments targeted.accounting Prof fees .15.440 Rs.100 Rs.400 Rs.412 7. 5.282 Rs.000 Rs.1.5.440 Rs.73.2.100 Rs.000 Rs.100 Rs.200 Rs.138 Rs.Postage & Delivery Prof fees .2.248.329 Rs.268.2 Identification of key assumptions For shop:1. 4. For market:- .100 Rs.9.251. Competitors identified for the target market. 22.214.171.1240 Rs.115.2.065 Rs.891 Rs.2.23% 12.400 Rs.31.442 Taxes EBITDA Interest Expense Taxes Incurred Net Profit Net Profit/Sales Rs.600 Rs.4.500 Rs.600 Rs.6. Competitive advantages in different markets.06% 8.101.shop Telephone Utilities Employee benefits Other Total operating expenses Profit Before Interest and Rs. Future growth forecasts.806 Rs.490 Rs.59.9.876 Rs.500 Rs.600 Rs.legal Repairs Supplies .2.331 Rs.28.600 Rs.100 Rs.106.400 Rs.753 Rs.1.67.2.
. 5. Forecasting income. 4. Products offered to the customers. no appropriate source of funding followed but the capital is invested from my side only. 2.1. The workers and requirement of the skills. 3. Banks and government lending institutions such as the Small Business Administration (SBA) typically require a personal investment by the business owner showing a willingness to share the burden of risk with the lender.3 Current source of funding Unless a potential small retail business owner is independently wealthy and looking for a hobby. Promotion techniques. Distribution of the products. profits and losses. Requirement of the assets. Pricing relative to the competition. Growth in the market and market share. Financing a small retail business can take make forms and may include a variety of funding sources to cover the initial costs of opening and operating the business. 5. For my shop:For my shop. 4. The savings and personal lines of credit from previous employers often are tapped to cover the personal investment. 3. 8. For operations:1. 2. Even franchises that offer in-house financing for new franchise operators require a percentage of the initial investment to come from the business owner. Salary of the workers. Other operations. he or she will need to find financing for the new business.
I have also taken loan from my father as the capital to invest in the business. If there are losses incurred ispite of the profits then we can’t able to pay back the amount of lended loan to the bank. With a little research it will find a number of places or individuals that are willing to put money into new businesses.If there is needed for funds in future then loan can be apply by me through the banks. the question of tax effects on the business case is non-issue.5 Tax consequences of the business When the business case refers to a non taxpaying government or non-profit organization. If funding is not possible. Here are some ways that taxes can impact the business:1. it is an important question. Asking for mutual schemes. Borrrowing funds from other small scale businesses. then inventory of the shop may be decrease to cut costs. The loan is not applied in the beginning of the business as the field of the business is new to me and somewhat to the workers. taxes operate to lower overall gains because operating income and capital gains are normally taxed. The results of "before tax" and "after tax" business cases can look quite different. Taxes also reduce overall cost and expense impacts . 4. 2. Loans from the banks. Taxes lower overall gains Where the business case shows gains or net cash inflows. It may have family that is interested in helping out. however. For my shop if future needs are required then the following strategies if followed:1. 5. Asking through bank the best source of funding. 8. 2. Trying to stay away from high interest loan situations and look for grants and smaller donations that will be straight forward to pay back. For tax-paying companies.4 Future needs of funding Most people cannot afford to open a new business on their own. 3. 8.
Where the business case shows losses or net cash outflows, tax effects operate to reduce the overall loss. 3. When the business case includes capital assets, tax savings from depreciation improve the bottom line Where the business includes the acquisition of capital assets, tax savings from depreciation can operate to increase overall cash flow. Depreciation expenses themselves do not contribute to cash flow, they are an accounting convention that impacts reported income, but not a real cash outflow. However, the depreciation expenses lower reported income, they also lower the tax liability, which does impact real cash flow.
8.6 Potential risk and source of protection
The process of identification, analysis and either acceptance or mitigation of uncertainty in investment decision-making. Essentially, risk the occurs anytime an investor or fund manager analyzes and attempts to quantify the potential for losses in an investment and then takes the appropriate action (or inaction) given their investment objectives and risk tolerance. Inadequate risk management can result in severe consequences for companies as well as individuals.
The potential risks involved in my business of the shop:1. Not having sales. 2. Loss of the capital employed in the business. 3. Not earning profits. 4. Demand of the workers regarding salary and wages. 5. Inability to create demand for the products in the market. 6. Damage due to fire, theft and loss. 7. Does not able to create image of the shop in the market. 8. Debts like loss of stock and damage of the stock. Source of protection for my business:1. Reduce the cost in salespersons and secure guards;
2. Improve the shopping atmosphere and avoid watching customers directly by workers and let the salespersons pay more attention to introduce the commodities and increase their shopping desire. That can create a better psychological circumstance to increase your profit 3. Installing a camera in the shop for observing the movement of the employees. 4. Borrowing funds from the banks.
Risk in business
The following are the risks involved are as follows:1. If the inventory in the store will create effective demand in the market. 2. If the people in the market will come to the shop or not. 3. If the business will earn the profits which is the main target or not. 4. Fear of incurring loss despite of gains. 5. If the business will run smoothly. 6. If the workers will work with their full efforts and contribute to the profits. 7. If the inventory of the shop is liked by the people. 8. As the owner of the clothing retail store, it will encounter different sorts of customers, employees and vendors & cannot complain and say that not your job because by the time you open that door, all of it will be yours.
9. If the way of advertising will catch attention of the people. 10. Do the people encourage the categories of clothes offered to them?
The schedule of the main activities supporting this marketing plan is presented in the table. This includes the promotion schedule and evaluation and control activities. An evaluation of the ongoing business will be conducted on a quarterly basis as well as a more detailed evaluation at the end of the year. A risk assessment will be conducted as part of the performance reviews of the business. Activities Develop a garment business 1 month 2 Month 3 month 4 month 5 month -
Yes in the month of Jan Yes in the month of Jan 3 (full-time) 2 ( parttime) -
Develop floor plan and retail store Hire key staff for the business
Liaise with the local
000 medium 2. I have surveyed the shops in the market where the store is located. What is the pay scale of the salespersons? Q5.000 medium 2. The survey is done through personal interview method.000 1. The questions which are asked in the interview are:Q1.000 1. How many employees/salespersons are engaged in the shop? Q4.What is the daily expenses of the shop? . Who is the owner of the shop? Q3.000 - Medium and medium low Appendices I have conducted a small survey in only few shops which are located in the market itself.000 1. What is the name of the shop? Q2.000 1.000 2.government Local press advertisement and press releases Yes through fliers in newspapers on monthly basis - - - - Website development Launch of retail store Salary of full-time workers Salary of pat-time workers Quality assessment of products Yes 2.000 medium 2. Do they have part-time employees also? Q7.What is the timings for the opening and closing of the shop in the day? Q8. What type of inventory is available in the shop? Q6.
4. The Times of India. 2. 3.B. . 2. Business today.Q9. Planning Implementations & Control.Is relationship selling is followed or not? Q10. Marketing Management.Gupta. 5.What type of people does the shop target? Bibliography Books 1. The Hindustan times. Kotler Philip. Edition-1998. Marketing book by Lovelock’s. Magazines Journals & Newspaper 1. New Delhi. Prentice Hall of India Ltd. 3. Human resource management by C.
Websites 1.com. WWW. WWW. WWW.com.rediff. 2.google.s 3. .com.yahoo.
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