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PROJECT REPORT OF PRINCIPLES OF MARKETING (MKT-701

)

BRAC BUSINESS SCHOOL
BRAC UNIVERSITY

PROJECT REPORT NO. 01

MKT - 701

Supervisor: Mr. Shaikh Imran Aziz

Visiting Professor

BRAC BUSINESS SCHOOL

Submitted by:

Students Name Students ID No.
Dr. Mohammad Harun Ur Rashid 15174015
Khandaker Sakib Farhad 16174009
Mohammed Lokman Hossain 11374010
Mahmudul Alam Tarafder 15274026
Mahamuda Akter 13374040
Mahfuza Akther 15174018
Muhammad Abdur Razzaque 15274009

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PROJECT REPORT OF PRINCIPLES OF MARKETING (MKT-701)

THE PROJECT TOPIC:

BUSINESS PLAN OF A BOUTIQUE SHOP BOUTIQUE GALLERY

Executive Summary: ....................................................................................................................... 3
Introduction: ................................................................................................................................... 3
Company Slogan: ............................................................................................................................ 3
Company Objectives: ..................................................................................................................... 4
Company Mission: ......................................................................................................................... 4
Company Owners: ......................................................................................................................... 5
Company Start-Up Cost: ............................................................................................................... 5
Company Location & Facilities: ..................................................................................................... 6
Company Products: ....................................................................................................................... 7
Competitive Comparison: .............................................................................................................. 7
Commercial Viability: .................................................................................................................... 8
Sales Literature: ............................................................................................................................. 8
Sourcing: ........................................................................................................................................ 8
Technology: .................................................................................................................................... 9
Future Products: ............................................................................................................................ 9
Market Analysis: ............................................................................................................................ 9
Market Segmentation: .................................................................................................................. 10
Management Summary: .............................................................................................................. 14
Financial Plan: ............................................................................................................................. 14
Risk Management: ....................................................................................................................... 16
Sonclusion: ................................................................................................................................... 16

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EXECUTIVE SUMMARY:

“Bring the best of your authentic self to every opportunity”- John Jantsch

Author of DUCT TAPE MARKETING

The Boutique shop that we are promoting is Boutique Gallery which is an unique clothing store.
We know for sure now a day’s people are very conscious about what they wear & how they
appear. So from our passion and love for the wonderful world of Fashion we have come up
with our unique Boutique store which we believe will is pleasing our customers. Our Boutique
Store focuses on the establishment of women wear including the operations of apparel
designing, manufacturing, selling and marketing. We have developed some unique ways to
attract customers and believe our customers as the hero of our small Boutique store.

INTRODUCTION:

Boutique Gallery is a new Boutique shop that has been created for the Bangladeshi people. Our
focus is to provide customized wear, apparel and accessories and position ourselves as the top
retail store servicing this particular market.

Our intentions are to obtain market share and become a central hub of shopping activity for the
local population as well as Non Resident Bangladeshis (NRBs) who enjoy wearing fashionable
apparel.

Boutique Gallery will be located at BASUNDHARA CITY SHOPPING COMPLEX, which has
centralized itself directly in position to the residential location and social activities of our target
market. We believe that this is critical to our initial success and long-term growth.

COMPANY SLOGAN:

We have made it our motto to satisfy customer needs & as we believe so we have made our
Slogan as below:

“Anything you choose, we provide to your hearts satisfaction”

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COMPANY OBJECTIVES:

Boutique Gallery is a store for the quality and style conscious consumers, providing unique,
eclectic and affordable product. We intend to win customers through the wide range of
products that we have & the unique services that we are offering. We encourage the creativity
and promotion of individualism through style and fashion at affordable prices.

 To provide people with a boutique that offers a comfortable and approachable
environment.
 To create a shopping environment that meets the apparel needs of the local people as
well as NRBs.
 To receive a 50% profit margin within the first year.
 To have a customer base of 1,000 by the end of the first operating year.
 To create employment opportunity.
 To conserve and uphold culture and values by providing domestic products to NRBs.
 To generate scope for enhancement for related industries like those who provide the raw
material.
 To provide people with a boutique that offers elegant and classy clothing designs.
 To showcase quality, well-constructed fashions from prominent and cutting-edge
designers.
 To offer uniqueness to what people wear and let them be their own brands.
 To offer a variety of beautiful and high-end fashion accessories.
 To help people learn what clothing and styles go best with their unique personalities?

COMPANY MISSION:

Boutique Gallery’s mission is to offer quality, name brand accessories and clothing in an
assortment of sizes and styles to accommodate varying styles and shapes.

1.3 Keys to Success

In order to succeed in the boutique industry Boutique Gallery must follow below rules:

 Provide customers with top notch personalized customer service in an atmosphere of
Bengali hospitality.
 Carry an assortment of sizes to fit the more ample frames of their target customer base.
 Have a wide range of products to attract people of different status.
 Advertise and promote in areas that target customer base will learn about the store.
 Continuously review sales and adjust inventory levels accordingly

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COMPANY OWNERS:

Boutique Gallery organized as a partnership among the seven partners of Dr. Mohammad
Harun Ur Rashid, Mohammed Lokman Hossain, Khandaker Sakib Farhad, Mahmudul Alam
Tarafder, Mahamuda Akter, Mahfuza Akther & Muhammad Abdur Razzaque.

We will be located at Basundhara City Shopping Complex, Dhaka.

The hours of operation will be for Saturday - Thursday 9 a.m. - 8 p.m. and for Fridays 10 a.m. - 8
p.m. There will be extended special hours designated during The Festivals like Eid-Ul-Fitr and
Eid-Ul-Azha, and New Year.

All merchandise will be purchased according to the company's mission and customer focus of
outfitting all sizes.

COMPANY START UP COST:

Boutique Gallery’s incorporation costs are listed below. The company will start with three
months inventory on hand for apparel and accessories as this are the main revenue generator.
The majority of the company's assets will reside in inventory. The opening day’s cash on hand
balance will be $384.
The financing will include an owner’s investment of $5,100.

Start-up
Start-up
Requirements
Start-up Expenses
Trade License Tk.1, 000
Grand Opening Event Tk.10,000
Telephone & Utilities (3 months) Tk.1,500
Infrastructure Development
Tk.150,000
Store Fixtures/ Decorations
Tk. 20,000
Factory
Staffing and Recruitment Tk.20,000
Advertising & Promotion Tk.15,000
Raw material collection Tk.70,000
Purchase of Machinery Tk.90,000
Installation Cost Tk.10,000
Business/Office Supplies/Stationary Tk. 1,000
Accessories (Dices, Frames) Tk.10,000
Total Start-up Expenses Tk.398,500
Note: It will take 8 weeks to prepare for and start the venture.

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Balance Sheet

Assets AMOUNT Liabilities Amount

Machinery 100,000 Capital 386,000
Less: Depreciation 19,000 Add: Net Profit 195,200
81,000 Net Worth 581,200
Cash 393,000 Creditor 150,000
Accounts
Receivable 157,200
Inventory 100,000
Total 731,200 731,200

COMPANY LOCATIONS AND FACILITIES:

Boutique Gallery will be located at Basundhara City Shopping Complex, Dhaka. This space has
2000 square feet area and has been rented for three years. We feel it is essential for our initial
and ongoing success that we locate ourselves in the heartbeat of the community. We also strive
to create an atmosphere of acceptance and community, as well as a retail environment where
individuals can identify and bond with their culture.

Business deliveries will be handled through the showroom and also through courier service on
the base of Web Page orders. The factory is nearby the showroom so no extra transportation
cost will be needed to bring the products from the Factory to showroom.

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COMPANY PRODUCTS:

Boutique Gallery will carry traditional, Trendy, Casual wear brands to create their unique
Brand Image where you can find everything that you need. The greatest percentage of
merchandise will be in apparel, followed by accessories, and gifts.
Management will rely on customer feedback, suggestions, and sales reports to introduce or
eliminate certain brands, styles and sizes.

1. T-Shirt
2. Shirts
3. Jeans
4. Skirts
5. Cardigans
6. Jackets
7. Sweaters
8. Saree
9. Salwar Kameez
10. Panzabi
11. Bed cover
12. Cushion cover
13. Curtain
14. Others

We are the above products starting from Children to Elderly persons and have fashioned our
products according to their needs.

COMPETITIVE COMPARISON:

Boutique Gallery has a number of advantages that will allow us to build our brand identity, add
value to our merchandise and build a loyal customer base while standing apart from our
competitors.

1. The Boutique Gallery Shopper Card' will entitle customers to a 15% discount after ten
purchases.
2. We are offering clothing to fit plus size for all.
3. We will create a sense of culture and bonding with the community by offering products
that combine both the culture and innovation.
4. Our location is central to our target customer base.
5. We will maintain a detailed record on each customer, logging addresses, their
purchases, size, and brand for customer follow-up and in-house promotional purposes.
6. We also have ready to order for our customers which is unique, so that they can offer
their products on what colour and design they like on our existing designs.

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COMMERCIAL VIABILITY:

1. The plan is a sound one because it will create employment opportunities as well as
providing scope for related industries.
2. There is a huge demand for clothing, as these items reflect one’s personality and status.
3. The plan is acceptable as there will be no environmental degradation.
4. The investment cost is comparatively lower.
5. The employees required for the project are few in number and available as we intent to
offer part-time job facility.
6. As we wish to select students for our project we believe this will create a direct impact
on the Target Customers with less investment.
7. As the investment is lower the risk associated with the plan is also low.

SALES LITERATURE:

Boutique Gallery will use a targeted advertising and sales program to generate publicity and
build a customer base.
2000 full-color postcard flyers with a 10% coupon will be distributed throughout Dhaka two
weeks prior to the grand opening event. We are opening our personalized Web Page for
promoting our products & have our own facebook page to inform about our products.

Moreover we have arranged for promoting our Boutique shop on the newspapers also with our
Slogan on it which will definitely attract customers.
The customer mailing list has been compiled from contacts the owners have made while in the
community.

SOURCING:

We will shop & source for our merchandise as outlined below:

 With renowned fashion houses like Aarong who have regional representative and
showroom located at the Center, we will place our weekly and monthly reorders with
them and review new materials.

Also as we have made collaboration with a Garments Industry who will ensure the
ready to order products & Innovative designs that we are offering.

 The Eid-Ul-Fitr, the largest festival for Bengali people and apparel featuring the latest
collections of all brands will be presented of which we assure that most will have an
unique appearance & also our unique attractions for our customers.

 All orders will be placed bearing Eid in mind. We will also work to solidify our
relationships with sales representatives and vendors so that we may achieve decreased
cost of goods. Our competitors, (both direct and indirect) purchase from the same
sources and we believe that through marketing programs and strategic alliances we will
begin to gain a competitive advantage.

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TECHNOLOGY:

Retail apparel establishments have a tendency to have a high number of SKU's because of the
level of inventory. It is imperative that an advanced inventory and point of sales program be
utilized to maintain stock levels and track sales.
Our business plan will be generated and reviewed to ensure all financial goals and objectives
are being reached. It will allow us to make the most of our limited marketing budget by
focusing our communications on our target markets and enhancing our marketing knowledge.

FUTURE PRODUCTS:

As we achieve and exceed our sales and profitability goals, our shop will add other products to
the existing product line and our own personal in-house label of clothing that will include New
Shoes, Bags, Belts, Moneybags and Socks for women and men. We will expand our line of
brands with those that have been repeatedly requested by our customers.

MARKET ANALYSIS:

The primary target customer of Boutique Gallery will be the local people in the Dhaka region.
As we are situated in the epic-center of the business community we believe they will make up
the largest percentage of our customer base.
The secondary target customers are the NRBS. As the Nonresident population continues to
grow rapidly in various parts of the world we expect to receive the patronage of them as they
are very loyal to Bengali apparel.
The last target customer of Boutique Gallery is listed as other. As popularity about the store
increases we expect to see an assortment of curiosity seekers as well as seasonal purchasers
during festival season.

SWOT ANALYSIS:

A. Strength:
1. Premium price charged to reflect innovation and creativity.
2. High quality raw materials are collected from renowned fashion house.
3. Have our own Garments to support the trends & to develop new innovations.
4. Timely delivery for ordered products.
5. The location of the shop is renowned & very much favorable.

B. Weakness:

1. Being a new entrant is one of the weaknesses of the boutique shop.
2. It has no brand or image.

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C. Opportunity:

1. A partially fulfilled customer need is a great opportunity for the shop.

D. Threat:

1. Increasing market price of raw materials and labor.
2. Increasing so many boutique shop.

MARKET SEGMENTATION:

The population of Dhaka is concentrated heavily therefore leading to the highest concentration
of our customer base.
The last area of potential customers is labeled as "other." Because ThisShop offers a variety of
innovative and creative apparel, along with accessories and gifts we feel that we will attract
many curious shoppers. Our ambience and customer service will make them repeat customers.

CUSTOMERS
Potential Customers Growth
Local People 10%
NRBs 15%
Other 10%
Total 35%

1. Target Market Segment:
The goal of the Boutique Shop is to serve the local community that has difficulty finding
innovative clothes. It will also serve the NRB community.
Both of these markets are underserved in the major boutique retailer outlets.

We are encouraging students to take part-time jobs at our Shop which will directly have
an impact on the Teen-Agers & students.

 We are encouraging costumers between 17 to 50 years old.
 Mostly Middle class costumers.
 The colleges, corporate houses, public events, games, etc. Expansion of business in
all over the country and to export in near future

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2. Market Needs:
There are several important needs in the boutique business that are being either
underserved or not met at all. The Boutique Shop plans to meet and service those needs.

a) It will provide a large assortment of sizes to compliment the various body shapes
and sizes of the local community.

b) Focus and attention to customer's personal preferences and customer retention will
be given high priority. Because of the high rate of employee turnover at major mass
retailers, customer service and personal detail has been lost.

3. Market Trends:
Millions of people around the world instantly recognize and identify with traditional
apparel.
Our traditional clothing has survived many eras. There will always be a future for
traditional apparel. Within the last two years the traditional look has made a comeback
in the fashion industry. this boutique intends to use its place in the community to
heighten the awareness of the Bangladeshi culture.

4. Industry Analysis:
Boutique shops fall within several kinds of stores:

 Small Specialty Stores: The majority of boutique is sold through small family-run
specialty stores that are located in or near neighborhood communities. Dhaka
boutique is an example of this type of store.

 Large Multi-Owned Retailers: These large stores mass market and sell to hardcore
enthusiasts as well as the local tourists and seasonal purchases.

5. Main Competitors:
We have many competitors as we located our shop at Basundhara City Shopping
Complex. There are many branded boutique houses in Basundhara City Shopping
Complex. Such as Yellow, Westecs, Eastasy Fashion houses etc. So these are the branded
boutique houses which the customers prefer first. We have to compete with them.

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6. Strategy and Implementation:
Our goal is to provide apparel to the underserved market of the community who desires
differentiated cloths. The major boutiques have left a hold in this market by not
providing differentiated products by focusing on customer preferences.
Our intention is to gain 60% of this market share by focusing on our niche positioning,
neighborhood location, brand that we sell, hospitality and special promotions.

Moreover, to do so we wish to excel and survive the cut throat competition is our
exceptional and infallible customer services
 No need to register to place an order
 Online shopping Facility.
 Gift certificates & Raffle Draws every year.
 Item availability as per customer desire.
 Payment through VISA, Master Card, AMEX and Paypal
 Air packages shipped within 24/48 hours
 Flexible return policy

7. Marketing Strategy:
Our marketing strategy will focus heavily on sales promotion, niche positioning in the
market and customer service with loyalty and retention in sales.
a) The marketing budget will not exceed 5% of our gross annual sales.
b) Our promotions will always stay in tune with our company objectives and mission
statement.

8. Positioning strategy:
For the more full-bodied individual seeking creatively designed apparel, Itwilloffer
brand traditional wear in a larger assortment of styles and sizes thataren't always
readily available in the mass apparel retailers.

9. Pricing Strategy:
It will maintain a premium pricing strategy. We base the product lines that wecarry on
their reputation and quality as clothing. Most of our lines come with a suggested retail
price that we will follow. We will also utilize the standard practice of key stoning as
well.

10. Promotion Strategy
The shop will follow an aggressive yet creative promotional plan. This will allow us to
focus directly on our target customer while still being conservative with our advertising
money.

a) A press release kit will be sent to all major media outlets in Dhaka highlighting the
grand opening of the shop in the city. This kit will include a press release, pictures of
the interior space, color postcard/flyer, and a business card.
b) 500 4x5 color flyers/postcards will be distributed throughout the city at local clubs,
colleges and universities.

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c) A direct mail program that will further focus on and target the top 50% customer
base with special in-house sales and promotions.

11. Distribution Strategy:
Our retail location will be the foundation of building our customer base. We will also
manage a direct mail program that will focus on our top 50% customers spotlighting any
in-house sales and promotions.
Also for District wise distribution we have made sure to send those through postal
service like S.R. Paribahan.

12. Marketing Programs:
Our Marketing program consists of 2000 full-color postcard flyers with a 10% coupon
will be distributed throughout Dhaka two weeks prior to the grand opening event. We
are opening our personalized Web Page for promoting our products & have our own
facebook page to inform about our products.

13. Sales Strategy:
We will offer a 14day return/exchange policy to build trust with our customers and
maintain retention and loyalty.

14. Budget Forecast:
It has planned for a steady growth for the first year as we build name recognition and
status in the community. In the second and third year we look to see an increase of
revenue of 20% as we gain a larger percentage of the market share and increase our
customer base beyond the southwest part of the city.

Item wise Sales by 1st Year

Item Revenue (tk)
Saree 110,000
Salwar Kameez 220,000
Kids' Item 85,000
Mens 70,000
Bed cover 60,000
Cushion cover 78,000
Curtain 62,000
Others 15,000

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MANAGEMENT SUMMARY:

Employees will be encouraged to work within their creative, physical, and intellectual
boundaries. All duties will be divided and delegated according to strengths and weaknesses.
We will expect a high degree of customer service skills and personality as this is essential to our
success.

1. Organizational Structure:
The Shop is a small business and therefore requires a simple organizational structure.
All decisions are made in-line with the company objectives. Employee tasks are
delegated based upon their level of expertise, creativity, strengths and weaknesses.

2. Personnel Plan:
The personnel plan is included in the following table below. There will be three full-time
employees and seven part-time employees working 20-30 hours per week. All
employees will benefit from a one day paid holiday on their respective birthdays and
one week of paid vacation after twelve months of employment.
At this time medical benefits will not be offered to employees. As profits increase in the
future medical benefits will be offered to all employees.

Personnel
FY 2016
Full-time position Tk. 20,000
Part-time position Tk.28,000
Total People 10
Total Payroll Tk.48,000

FINANCIAL PLAN:

The growth ofthe Boutique Shop will be moderate and the cash balance will always be positive.
Being a retail environment we will not be selling on credit. We will accept cash. Later we will
accept checks, and all major credit cards. Marketing and advertising will remain at or below 5%
of sales. We will continue to reinvest residual profits into company expansion, and personnel.

1. Important Assumptions:
It does not sell on credit nor does it offer always at this time. We accept cash. All sales
revenue will be deposited in our business checking account within 48hours. Our
business checking account will be with HSBC Bank.

2. Projected Profit and Loss:
The following chart and table will indicate projected profit and loss.

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Profit Yearly

3. Income Statement

Sales 700,000

Saree 110,000
SalwarKameez 220,000
Kids' Item 85,000
Mens' Item 70,000
Bed cover 60,000
Cushion cover 78,000
Curtain 62,000
Others 15,000

Less: Cost of Goods Sold 384,000
Direct Material 206,000
Direct Labour 144,000
Factory Overhead 10,000
Factory Rent 24,000

Gross Profit 316,000

Less: Operating Expenses 120,800
Showroom Rent 36,000
Staff Salary 48,000
Maintenance Expenses 4,000
Utilities 4,800
Stationary 3,000
Depreciation 19,000
Advertising Expenses 6,000

Net Profit 195,200

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4. Projected Balance Sheet:
The following table explains the projected balance sheet.

Assets AMOUNT Liabilities Amount

Machinery 100,000 Capital 386,000
Less:
Depreciation 19,000 Add: Net Profit 195,200
81,000 Net Worth 581,200
Cash 393,000 Creditor 150,000
Accounts
Receivable 157,200
Inventory 100,000

Total 731,200 731,200

RISK MANAGEMENT:

The risks that may occur in this project are:

1. Pure Risk: There venues and cash inflows of the project may be lower than the expected in
different years.
2. Systematic Risk: Political changes may hamper the production of the project.
3. Unsystematic Risk: Workers may go for strike, which may hinder production process.
4. Market Risk: Macroeconomic factors like inflation can have an impact on the project and
fluctuation of demand. Cost reduction and increased production may be a way out but it
will become difficult to maintain quality.
5. Instrumental Risk: The machineries may go out of order any time. So the business runs the
risk of machinery shortages.

CONCLUSION:

The plan for the boutique shop has been designed bearing the demand for innovative clothing
in mind. Such a plan is also judged financially and market projections are included.

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