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the little charmer

TABLE OF CONTENTS

CHAPTER 1: COMPANYS OVERVIEW CHAPTER 2: ORGANIZATIONAL STRUCTURE: CHAPTER 3: MARKETING PLANS: CHAPTER 4: FINANCIAL PLAN: CHAPTER 5: CONCLUSION

Chapter 1: Companys overview

Executive summary:
Popular culture is no longer regional. The advent of cable television, syndicated radio programs, and the Internet has created a world where a fashion statement in Pakistan. The speed of our telecommunication system has increased young customers' expectations and demands for products that represent their own cultural statement. This kids clothing store business plan details how elfin will offer young mothers customers the trendy pus traditional products and clothing that are desired but not available locally. The target customer are mothers with girls from age 2-8years (initially), who wants stylish girlie goods for their princess. Elfin will provide the distinctive clothing, and planning to offer shoes and products that are just ahead of the fashion curve. Elfin plans to achieve a 60% product awareness among the target audience within the first year of operation and establish a 20% market share within the first six months. Sales target of Rs.100, 000 before the end of the financial year. To attain constant annual growth of 10% revenue in each year of operation. Elfin will offer fashion-oriented products and clothing that are popular in the large urban areas but not currently available locally. Partners, of Elfin, will create a cost-effective operation that will quickly bring new alternative clothing and products to the customer. Elfin is all about exclusive and off-beat casual, semi-formal, formal and traditional wear for the young fashionistas.
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Description For your sprightly little and mischievous one, Elfin provides a magical range of vibrant clothing that will make your little one stand out. At Elfin, We believe in blending numerous colours into a cohesive palette, using the perfection of intricate attention to detail; making clothing experience both fun and classy for kids.

ELFIN; The Philosophy: Elfin is a small ,cheerful, agile and mischievous one having an over-worldly and magical quality to charm. We know that your little one is your little Elfin and when it comes to dressing them up, we are as particular as you are. This is why Elfin has come up with perky yet classy clothing for kids that will make them protrude from the crowd.

Mission
The mission of elfin is to offer distinctive quality products, and designs that are not readily available for girls in Pakistan to our target customers.

Keys to Success

Accessible store where you always find something new that you want. Excellent online (Facebook/mobile) relationship that will facilitate quick of orders. Establish an effective strategy for advertising to our target customers. Create a brand image that our target customer sees as both attractive and trendy.

Company logo:

"

the little charmer"

CHAPTER 2: ORGANIZATIONAL STRUCTURE: Company Ownership:


Its a partnership based of three equal partners.

Management Summary:
Zunaira Azhar will manage the production (buying, stitching, designs and inventory) of the brand with consultation of other partners. On the other hand Anam Hashmi with her marketing skills will deal with the branding and advertising and sales of the products. Madiha Hassan will be working as a silent partner and also as a major investor to the brand. The combination of these two business students Anam and Zunaira with their deep understanding of business and market make elfin uniquely qualified to understand the demands of his target customers.

Personnel Plan:
Elfins management philosophy is based upon responsibility, mutual respect, and profitability and the partners believes that the company's present and future growth are based upon: Exceptional People Social Responsibility Uncompromising Commitment to Customer Service Excellence Commitment to Core Values Elfin will have a staff of three: production manager (Zunaira Azhar) marketing manager (Anam Hashmi) finance manager (Madiha Hassan) along with business consultant Talha Aziz We expect only three full-time employees for the first year. Subcontractors might be used to help with sales and marketing. As we expand, we expect to hire on more full-time staff to aid in marketplace research, web design and analytics, and business development.

Personnel Plan Manager1 Manager 2 Manager 3 Total People Total Payroll

Profit Division 100/3

3 33%

Current Employees:
Initially the only employees will the managers As the company grows, more personnel will be added as needed.

Organizational chart:
As it is a partnership based company there is no such unbending level of structure and formal relationship but in times of final decision making and conflict resolution Madiha Hassan the finance manager is made CEO of the company.

CEO

Production Manager

Marketing Manager

CHAPTER 3: MARKETING PLANS: Elfin objectives:


To achieve a 60% product awareness among the target audience within the first year of operation. To establish a 20% market share within the first six months. To achieve a sales target of Rs.100, 000 before the end of the financial year. To attain constant annual growth of 10% revenue in each year of operation.

Market Segmentation:
Each market has its own different segments. Understanding the relevant segments for your product(s) in your market is important, for they allow you to adjust your marketing mix to better adapt to the different needs of each segment. For elfin, the market segment that is targeted is children (girls in particular) from the age of 2-8 years whose parents want them to get dressed in an elegant yet fashionable manner.

What is the ratio of the targeted customer in overall market demographics?

(Source: http://www.indexmundi.com/pakistan/age_structure.html ) As per recent demographics, 34.7% (male 33,941,828/female 32,130,001) range from 0-14 years of age. Whereas it can be evidently seen from the above figure that the population from 0-4 and then 5-9 years accounts for good majority of the population.
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What, exactly, this segment wants and needs.


Children of this age now a days themselves are very conscious about what they wear and hoe they look but parents specially mothers are particular decision making authorities for children of this age group. Mothers are now a days looking for good designing and classy, edgy plus elegant touch in the frocks or other girls wear. This need was extracted after interviewing many mothers plus personal shopping experience was the main reason that provoked the idea of Elfin.

The best ways to advertise to and communicate with this segment.


Best way to reach this market segment is by promoting it on web, physical advertisement like billboards etc plus children magazines. But due to budget constraints, elfin is not able to invest much in marketing for the starters, but soon will be using some of these tactic.

Elfin SWOT Analysis


Strengths Customer need (Elfin) there is a huge customer need for cutting edge clothing for children. Cost Advantages (Elfin) Lower costs lead to higher profits for Elfin. A low cost leader can undercut rivals on price. Unique Products (Elfin) Unique products help distinguish Elfin from competitors. Elfin can charge higher prices for their products, because consumers cant get those products elsewhere. Weaknesses Lack of Scale (Elfin) A lack of scale means Elfins cost per unit of output is very high. Increasing volume, while maintain quality, would help reduce those costs. Budget constraints (Elfin) As for the beginning, Elfin is facing budget constraints to compete in the market of well established child wear brands.

Opportunities Online Market (Elfin) The online market offers Elfin the ability to greatly expand their business. Elfin can market to a much wider audience for relatively little expense Innovation (Elfin) Greater

Threats Intl Competition (Elfin) International competitors are numerous and difficult to combat, because they can have many competitive advantages that give them an advantage over Elfin Mature Markets (Elfin) Mature

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innovation can help Elfin to produce unique products and services that meet customers needs. New Services (Elfin) New services help Elfin to better meet their customers needs. New Products (Elfin) New products can help Elfin to expand their business and diversity their customer base. International Expansion (Elfin) International markets offer Elfin new opportunities to expand the business and increase sales.

markets are competitive. In order for Elfin to grow in a mature market, it has to increase market share, which is difficult and expensive. Volatile Costs (Elfin) Volatile costs mean Elfin has to plan for scenarios where costs are skyrocket. Cautious planning will lead to avoid this situation.

The Marketing Mix


The marketing mix is a business tool used in marketing and by marketing professionals. The marketing mix is often crucial when determining a product or brand's offering, and is often synonymous with the four Ps: price, product, promotion, and place; in service marketing, however, the four Ps have been expanded to the Seven Ps or eight Ps to address the different nature of services. In recent times, the concept of four Cs has been introduced as a more customer-driven replacement of four Ps. And there are two four Cs theories today. One is Lauterborn's four Cs (consumer, cost, communication, convenience), another is Shimizu's four Cs (commodity, cost, communication, channel). Product The main product of Elfin is children wear, girls wear in particular. It includes a whole range of Casual, Semi-formal and Formal range of children wear that includes: -Frocks -Tops -Shalwar kameez -Shirts and Trousers -Dresses Here are some pictures from the shoot of the current Eid collection that is in stock.

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These are high quality premium products that are neither over nor under priced. He packaging of the product includes proper tagging and labelling on the garment and then packing them in shoppers.

(Elfin hangtags)

Price Prices are in consistent with market competition. The first lot that is Eid collection includes 5 vibrant classy and formal designs which are differently priced. Place (Distribution) This collection would be distributed though shelfing at Shoppe at Gulberg and Mall Lahore and through online networking.

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Supply chain:

Production manager

Raw material purchase

Production

Packing

Shelfing/ Online orders

Delievry

Payment process

Promotion A promotional plan can have a wide range of objectives, including: sales increases, new product acceptance, creation of brand equity, positioning, and competitive retaliations. The main objectives of promoting Elfins products are: To present information to consumers as well as others. To increase demand. To differentiate a product. The promotion strategy is to use web, social networking physical advertisement like children magazines.

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CHAPTER 5: FINANCIAL PLAN:


Cash flow statement shows the available cash calculate from projected cash accumulations minus projected cash disbursements. CASH FLOW STATEMENT ELFIN Rs. STARTING CASH BALANCE SOURCES OF CASH Owners' Cash Capital Injections TOTAL CASH INFLOWS Raw material Labor salary Hangtags/Woven labels Accessories TOTAL CASH OUTFLOWS CHANGE IN CASH ENDING CASH BALANCE 0

60,000 60,000 30,000 20,300 7000 2000 59,300 700 700

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INCOME STATEMENT Revenue Sales Net sales Cost of Sales

Amount 5000 5000

Amount Beginning inventory Plus goods purchased/manufactured Total goods available Less ending inventory Gross profit (loss) Operating Expenses Labor salary Hangtags/Woven labels Accessories Total operating expenses Net income before taxes Taxes on income Net income after taxes Net Income (Loss) Amount 20,300 7000 2000 29300 (24300) 0 (24300) (24300) 0 59300 59300 54300 5000

Shows the net profit calculated from projected revenues minus projected costs and expenses

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BALANCE SHEET
Summarizes the projected assets, liabilities and net worth of new venture Assets Current assets: 2013 Cash 0 Investments Inventories Accounts receivable Pre-paid expenses Total current assets Fixed assets: Property and equipment Leasehold improvements Equity and other investments Less accumulated depreciation Total fixed assets Total assets Liabilities and owner's equity Current liabilities: Accounts payable Accrued wages Accrued compensation Income taxes payable Unearned revenue Total current liabilities Owner's equity: Investment capital Total owner's equity Total liabilities and owner's equity 60000 0 0 0 60000 2013 0 0 0 0 0 60,000

2013 0 0 0 0 0 0 2013 60,000 60000 60,000

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CHAPTER 5: CONCLUSION
This report introduces the basic model of the newly made firm Elfin that is looking or its unique place in the market. We presented information about the marketing, financial and organizational plans of Elfin. The future of this business is dependent on the vision plus the practicality of the efforts put. Elfins competitors with apparel industry which is widely varied. Direct competitors are other established brand manufacturers, such as outfitters, Minnie minors, breakout and pepper land, the closest competitor in terms of popularity, growth and product line is outfitters. The companys management is confident that Elfin can achieve its sales objective at the end of the first financial year. Due to the company's aggressive marketing strategy, establishment of the company as a "unique" entity in its industry, careful development of its products coupled with strategic partnerships with some of the industry's retail clothing outlets, and the company's profitable revenue model, Elfin has the potential to provide lucrative returns to potential investors. , Elfin should be able to achieve operational success for many years to come.

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