Professional Documents
Culture Documents
Short term
Our short-term objective is to make people aware about our brand through
advertising and gain their trust by providing quality materials. We plan to provide
these services within Kathmandu valley only especially targeted to youngsters.
Long term
Our long-term objective is to retain our existing customer and increasing our
customer base by providing them valuable service and being updated with new
trend and fashion. Diversify our services into baby clothes and formal clothes and
also to help our society by contributing in different social works.
Our business aims to fulfill needs and wants of consumers by providing the goods
and services i.e. clothes online all in one place for ease of access to consumers to
get their desired goods without hassle.
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Chapter II
Market Research
2.1 Customers
The main different types of customer for our product and service are described
below:
Men: For all gentlemen we will provide the clothes like pant, shirt, daura
surwal, kurtas, dhaka items and so on according to the demand and needs.
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2.2 Competitors
Online stores:
Brick and mortar stores: Different malls and shopping centers like Gossip
Queen, Sunkesri, PJ’Z Collection and various other retail shops are also
our competitors. As these businesses are established and they have brand
recognition as well as customer base we will have to focus on providing
good quality products in affordable price to compete with such stores.
We plan to undergo desk research and field research to get necessary data to find
out more about customers and competitors.
Desk Research: The desk research will be done by the partners using
internet resources to find out about the customers, competitors and also
about the products and services and trends of fashion in the market
currently. Fashion trend are rapidly changing so it is necessary to know
about the fashion trend and also predict on what might be the next trend to
forecast and sell product accordingly.
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Field Research: Along with the desk research we will also need to conduct
field research to get the required information from the market. Field
research is necessary specially to know about customers and also about
competitors. Field research will help us to know more accurately and more
precisely about customers their needs and also about their expectations
whereas few key information about competitors like their strengths,
weakness can be known more deeply with help of field research.
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Chapter III
3.1 Pricing
Pricing is one of the key factors that are necessary to maximize profit and to earn
maximum revenue. There are mainly 2 price strategies that can be followed which
are:
ii. Price Skimming: Price skimming strategy is just the opposite of price
penetration strategy where a firm sets a high price of a product initially
then it decreases the price slowly as more units are supplied in the market.
This strategy is used for exclusive products or services to give customers a
feeling of exclusiveness and a sense of pride of bearing that product or
service.
We will go with price penetration strategy as we have to compete with other firms
so we plan to provide our product at as low price as possible at start then
gradually increase price as our brand image increases.
For advertising we have planned to advertise our business on social media, online
and also with event tie-ups. As advertising on traditional media like newspaper,
TV etc are more costly and less effective these days so we have decided to go for
social media promotion which is a powerful tool of advertisement nowadays. Also
as our primary target consumer is Youths social media is the best platform to
advertise our product and services. Various online advertisements can be used like
popup ads in various popular sites that youths visit to attract them to purchase our
products and services.
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3.3 Place and Distribution
Our main focus will be to supply our product and services inside Kathmandu
Valley in starting phase then we plan to extend our products and services outside
of Kathmandu Valley also in the future when we have increasing customer base
outside of Kathmandu Valley.
As for distribution we will have delivery van to deliver the products to the
customers inside Kathmandu Valley. We will be having a collaborative
Transaction Processing System (TPS) that will connect our company with
suppliers who can then supply the products to the customers. In initial phase we
will have collaboration with suppliers where suppliers will supply us the ordered
goods and then we will supply the goods to the customers. This is done to ensure
that right good with proper quality is sold to the customers. In the long run the
supplier can directly supply the goods to the customer when there is good supplier
and customer relationship established. A simple diagram is shown below to
describe this process:
Orders online
Customer S-Cube Clothing
Supplier
In long run supplier can directly
supply goods to customers.
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Chapter IV
Operations
We are planning to sell our products directly to our customers without any
intermediary in between. Direct selling will help us to know more about our
customers; their taste and preference and also about geographic distribution about
the customers which information may not be available if we sell our product
indirectly through intermediaries. Direct selling also helps to reduce cost as we
will not have to pay commission to intermediaries. A figure is shown below to
explain this concept:
Along with suppliers who supply us goods to us we will also be working along
with a delivery person and IT specialist in our business. Delivery person is needed
to deliver the goods to customers timely and accurately. IT specialist is needed to
build our website and also design and implement the information systems
required for the business. The main administrative procedures included in
managing people are: hiring, managing and payroll which are explained briefly
below:
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Hiring: In first phase we will need to hire the required human resources. In
hiring process we must match the organization requirement with the skill
of the human resources available so that there is perfect career matching
and people remain motivated in their work.
Payroll: After hiring the necessary human resources we also need to set
the payroll i.e. their wages along with the benefit plan to be given to the
human resources working with us.
Managing: We also need to manage the human resources that are hired to
enhance their skill and to ensure that there is low turnover of human
resources within the organization to increase productivity of human
resources. Managing includes giving training, counseling, refreshment
activities etc which ensures that human resources feel motivated to work
in the organization.
The main legal and regulatory factor affecting our business will be license and
cyber law. The rule regarding license and registration of handicraft and clothing
business will affect our business and its operations. Additionally legal rules like
wages rule, company act etc will also affect our operations. We may need to pay
more wages and benefits to employees if payroll rule is changed by organization.
The cyber law directly governs the operations of our business. Any changes in
cyber law will directly affect our business as we will be operating online so cyber
law is the key governing factor.
IT specialist will design our website and we will plan and define the work to be
done by the IT specialist. We will mainly define components that should be
included in our website i.e. search, order and payment. IT specialists will have to
put the search field to simplify the searching experience. Also the IT specialists
will have to manage catalog and content management. Payment option is also
vital to customers. Easy payment is necessary so that customers can easily pay for
goods ordered. Customer will be able to pay online or also pay cash when goods
are delivered to customers.
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4.6 Communications
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Chapter V
Forecasting Results
Expenses
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Utilities 10,000 8,000 7,000
Other 60,000 0 0
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5.2 Projected Balance Sheet
Assets
Current Assets
Long-term Assets
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TOTAL LONG-TERM ASSETS 65,000 55,000 945,000
Current Liabilities
Retained Earnings 0 0 0
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TOTAL CAPITAL 535,000 605,240 619,360
Cash Received
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SUBTOTAL CASH RECEIVED 515,000 483,760 430,360
Expenditures
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Chapter VI
Business Controls
Sales and Marketing is also one of the basic business functions so managing sales and
marketing is also important. One of the key components that need to be managed is
managing customer records so that we can use the data to view and even forecast
customer behaviors. The customers can be divided into different segments according to
age, gender and even geography to know more deeply about their behaviors and patterns
so that we can easily know the class of customers and act accordingly to satisfy customer
needs and maximize profit. Sales force planning and managing marketing activities is
also necessary so that goods and services are delivered to customers timely. Managing
marketing activities will include planning and managing promotional activities like
advertisement and selling so that there is efficient distribution of our products in the
market and customers are aware of our services in the market.
In other business controls other business processes can be managed to ensure smooth
operation of business. One of the business controls that we will need is supplier control as
we are outsourcing our business activities of production to our suppliers we need to
closely monitor and guide our suppliers so we will be needing good supplier control.
Supplier control can include a simple communication and information system that can
show us how many goods are being made and the completion rate of the order so we can
track and relay that information to the customer as well ensuring smooth end-to-end
communication. Another business control that is necessary is website control. Website
control includes planning and managing the website. Website building is a collaborative
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process between manager and IT specialists where managers have to define the
components to be included in website so that IT specialists include all the necessary
components in the website to ensure that the customers can easily search, view and also
order goods form the website. Website security is also essential as our business is e-
business website should be secured from any potential threats from hackers and intruders.
A proper backup of data and servers is necessary to ensure that website will be running
smoothly and there will be no any interruption in case of any natural and manmade
disasters. Website management will include updating catalogs, price and continuously
adding or managing the components of the website like design, banner etc to make
website more new and fresh to the customers.
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References
https://www.clothesnepal.com/
http://www.a2zkapada.com/
http://www.ufonepal.com/
https://www.investopedia.com/
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