NEW VENTURE GROWTH STRATEGIES

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 Table of Contents
1.0 Introduction....................................................................................................................... 3

2.0 Environmental Analysis....................................................................................................3

3.0 Ventures functional Areas................................................................................................3

4.0 STP and marketing mix....................................................................................................4

4.1 Segmentation................................................................................................................ 4

4.2 Targeting....................................................................................................................... 4

4.3 Positioning.................................................................................................................... 5

4.4 Marketing mix............................................................................................................... 5

4.5 Strategic Positioning map.............................................................................................6

5.0 Funding Strategy.............................................................................................................. 6

6.0 Profile and structure of team members.............................................................................7

7.0 Growth and Partnership strategy......................................................................................7

8.0 Conclusion and Recommendation....................................................................................7

9.0 Reference......................................................................................................................... 8

Appendices............................................................................................................................ 9

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1.0 Introduction
The phrase start-up refers to a business in its early stages of development. In which Start-
ups are established by at least one business visionaries who need to foster an item or
administration for which they accept there is an intrinsic demand in the society that this
business can capitalise on (Slávik, 2019). To understand this concept this report aims to
create an online fashion retail business in the E-commerce sector named: Stylin Fashion
Store. Moreover, it aims to provide Environmental analysis, STP along with marketing mix
as well as all the strategies to be used to make a successful online business; upon which
conclusions and recommendations are drawn.

2.0 Environmental Analysis

Opportunity Threats

● Higher rates of accessibility are ● There is always a possibility of

provided to the potential customers online cyber-hacking, leakage of
with the help of a digital platform, confidential information such as
providing higher targeted market credit card details or customer
reach (Slávik, 2019). identity.
● The online fashion retail industry is ● The market has low barriers of entry
booming with demand for services that culminates in a highly saturated
provided by Stylin Fashion are on market place with many players.
the rise. ● Technologically savvy people if not
● Without a physical retail outlet the present in the society may diminish
brand has the opportunity to charge the expected revenue generation
low prices to attract people. (Slávik, 2019).
● Strategic Partnerships can be made ● There are big brands who run a
with logistics companies as well as monopoly in the online retail
warehousing facilities to establish a segment such as Amazon or Noon
robust supply chain management. in the UAE who may cause
hindrance in the company's
sustainable growth.

3.0 Ventures functional Areas

Marketing: The department is responsible for promotions sales as well as involved in
product designing by providing key information of the market and trends. It will provide key
information on future demand and supply so the market acceptance rate of Stylin Fashion
can be made higher.

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Finance: The department's job involves dealing with a company's cash and assisting with
self-direction. It thus allows firms to stay on top of things in today's society (Wulandari &
Subriadi, 2021).
SCM: “Supply chain management” is the system that controls the movement of
commodities, communications, and cash involved with a product or service, starting with the
sourcing raw materials and ending with the shipment of the item to the customer's final
destination.

4.0 STP and marketing mix

4.1 Segmentation
Geographic: Stylin Fashion is an online Fashion store that can be accessible from anyplace
through the use of the brands online shopping website or mobile application (Wulandari &
Subriadi, 2021). Though the brand is targeting the UAE in the initial stages; retail sales can
also be done worldwide as the brand expands to new overseas markets.
Psychographic: People who are inclined to fashion articles especially clothing are the
targeting audience of the brand. Individuals who are looking for reasonable pricing in
clothing items are the focus of the firm.
Behavioural: Individuals who are fashion forward as well as provide interest in acceptance
of new fashion trends are the primary concern for the online fashion retail store (Slávik et al,
2021).
Demographics: Stylin Fashion is targeting the lower to the mid classes of the society as the
bulk of the population can be catered to by this approach. People within the ages of 18- 40
are the targeted demographics of the company.

4.2 Targeting
This refers to the process of identifying the most desirable parts from the division stage
(segmentation), primarily those that would be most useful to the company. An ideal market
segment is a group of possible customers to whom you want to sell goods or services
(Slávik et al, 2021). Any collection can be subdivided into smaller chunks. Age, location,
wage, as well as manner of life are usually used to group fragments together. The different
methods for selecting target business sectors are: pursuing comprehensive economic
sectors with a single marketing blend, limited to a single segment, as well as pursuing
various market segments using a wide range of marketing promotions with the help of
conventional and traditional promotion approaches.

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4.3 Positioning
This is an approach to marketing strategy, which highlights the benefits of Stylin Fashion
products to a certain target audience (Moriset, 2018). Advertising agencies can find out
which population to target based on positive attitudes to the goods utilising analysing the
data gathered as well as centre gatherings. Targeting a marketplace is a more
comprehensive approach to selling to a specific buyer that includes combined market
segmentation research as well as brand positioning (Moriset, 2018). This also refers to the
many approaches or projects that a company uses to introduce a brand to its market
segment. In its most basic form, positioning refers to how a product compares to certain
other similar products and services in the existing marketplace, including in the minds of
potential customers as preconceived notions about the brand's reputation.

4.4 Marketing mix

Product: Stylin Fashion aims to provide a diverse portfolio of fashion products that includes
clothing, footwear, fashion accessories, beauty products and daily health care products. The
products are aimed to cater to all the targeted segments mentioned in the segmentation.
Moreover, the company aims to provide articles that are unique to the brand and are not sold
by any other rivals through in-house designing aided by local and international designers.
Place: As the company is solely based on the internet its place of operations can be as big
as the company wants it to. The digital retail platform of the brand can be accessed
nationally and internationally as well. This can be in the full control of the company as this
approach is highly flexible and requires less financial resources to alter later on.
Price: In the design/ fashion industry, pricing is frequently a marketing decision that takes
into account a multitude of elements. Usually the majority of the price of any item is
determined by the material costs as well as labour required to complete the merchandise. A
further consideration in design is that the value must reflect the impression which the
company must provide. To appear moderate as well as attractive, it may gain additional
reasonable resources and effort to be able to give that alternative (Svatošová, 2021). options
to pricing. Thus, Stylin Fashion aims to provide competitive and market penetration pricing.
Promotion: As the brand is an online entity its promotions must be focused on the online
more compared to any other advertising technique. Social media/ social networking
platforms are to be used to promote company products and services (Moriset, 2018). To
attract the people who are not technologically savvy, traditional modes of advertising through
flyers, TV advertisements, in person events as well as bulk mailing can be used to increase
the target of potential clients.

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4.5 Strategic Positioning map
The map shows the main rivals of Stylin Fashion that are ZARA, H&M and OUNASS. All
delve into online retail sales. The grouping is done on the basis of quality and price aspects
off all business and show Stylin Fashions stregic positioning in the UAE market.

Quality: HIGH

Stylin
Fashion

ZARA OUNASS

Price: HIGH Price: LOW

H&M

Quality: LOW

5.0 Funding Strategy

Investments can inject cash to the business to make it grow at different stages (Vulkan,
2020) [Referred to Appendix 1]. As Stylin fashion is a start-up 2 funding strategies are
chosen and they are:
Business Grants: These are small loans given by the government to small brands that help
them grow. This is given by the government with a string attached and requires the brand to
delve into social work. Ethical sourcing of products and social welfare events may be used
by Stylin Fashion to be eligible for the same (Vulkan, 2020).
Accelerators/ Incubators: Each business receives financial assistance from the
sponsorship as well as opportunity to collaborate with other entrepreneurs. In compensation,
the incubator or accelerator may acquire an interest in the company, especially if finance is
provided.

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6.0 Profile and structure of team members
The start-up includes 10 members in the initial team and the designations are made
according to the division of business functions. The 10 people can be put into place
according to their ability to fill up key job roles with their associated responsibility
(Svatošová, 2021). They are:
1. “Chief executive officer (CEO)
2. Chief financial officer (CFO)
3. Chief operating officer (COO)
4. chief information officer (CIO)
5. Human resource
6. Production/ Manufacturing
7. Information technology
8. Marketing
9. Sales
10. Social media handler”

7.0 Growth and Partnership strategy

In the initial stages as Stylin Fashion is still not a known brand in the industry strategic
partnerships and joint ventures with physical fashion retails is recommended to enter the
UAE market (Wang et al, 2018). It would help the company gain a part of the existing
clientele of the existing brand. This will also give Stylin Fashion an opportunity to attract new
clientele by bolstering the awareness of other brands in the UAE fashion Sector.

8.0 Conclusion and Recommendation

The online fashion industry is booming within the UAE and may provide substantial growth
opportunities to Stylin Fashion. Marketing, SCM and Finance are seen as the most important
functions of the online company as its work is totally E-commerce base. The STP analysis
and marketing mix provides key aspects and strategies Stylin fashion is trying to implement
in its start up. To establish it within UAE joint ventures and strategic partnerships are
recommended (Wang et al, 2018). For initial funding using angel investors, Incubators/
accelerators as well as the use of small business grants is recommended as it would provide
the best influx of funds in the company’s cash flow without taking the burden of high interest
loan debts.

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9.0 References

Moriset, B. (2018). e-Business and e-Commerce. Retrieved from: https://halshs.archives-

ouvertes.fr/halshs-01764594/file/Moriset-B_E-Business_12-04-2018_HAL-SHS.pdf

Slávik, Š. (2019). The Business model of start-up—Structure and consequences.

Administrative Sciences, 9(3), 69. Retrieved from: https://www.mdpi.com/2076-
3387/9/3/69/pdf

Slávik, Š., Bednár, R., Hudáková, I. M., & Moravcíková, K. (2021). THE STRUCTURE OF
THE START-UP BUSINESS MODEL, ACCOMPANYING CIRCUMSTANCES AND
CONSEQUENCES. International Journal of Entrepreneurship, 25, 1-21. Retrieved
from:
https://www.researchgate.net/profile/Stefan-Slavik-2/publication/357568887_Slavik_
S_Bednar_R_Misunova_Hudakova_I_and_Moravcikova_K_2021_The_Structure_of_
the_Start-
Up_Business_Model_Accompanying_Circumstances_and_Consequences_Registere
d_Scopus_International_Journal_of_Entrepr/links/61d45e13b8305f7c4b209f18/
Slavik-S-Bednar-R-Misunova-Hudakova-I-and-Moravcikova-K-2021-The-Structure-
of-the-Start-Up-Business-Model-Accompanying-Circumstances-and-Consequences-
Registered-Scopus-International-Journal-of.pdf

Svatošová, V. (2021). Proposal and Simulation of a Business Process Model of Strategic

Management in E-commerce. Ekonomický časopis, 69(07), 726-749. Retrieved from:
https://www.sav.sk/journals/uploads/0922144307%2021%20Svato%C5%A1ov
%C3%A1%20+%20SR.pdf

Vulkan, N. (2020). The Economics of E-commerce. In The Economics of E-Commerce.

Princeton University Press. Retrieved from:
https://www.degruyter.com/document/doi/10.1515/9780691214542/pdf

Wang, Y., Jia, F., Schoenherr, T., & Gong, Y. (2018). Supply chain-based business model
innovation: the case of a cross-border E-commerce company. Sustainability, 10(12),
4362. Retrieved from: https://www.mdpi.com/2071-1050/10/12/4362/pdf

Wulandari, A. D., & Subriadi, A. P. (2021). Preparing the Startup Ecosystem for Building a
New Startup Business During Pandemic: A Systematic Literature Review.
International Journal of Electronic Commerce Studies, 13(1), 137-160. Retrieved
from: https://www.academic-pub.org/ojs/index.php/ijecs/article/download/1996/438

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Appendices
Appendix 1: Start-up funding stages

(source: https://tms-outsource.com/blog/wp-content/uploads/2019/11/funding-stages.jpg)

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