Professional Documents
Culture Documents
Business Plan
Executive Summary
Splurging for kids is a fun thing to do-toys, chocolates, games, books, clothes…you name it. Except that one
thing that really struck us- when shopping for clothes, there is a serious dearth of good occasion wear
for kids. Finding suitable clothing for marriage functions, birthdays, festivals etc for kids- all prove to be
a task that sends one running in circles.
Our idea is to launch exclusive occasion wear for kids between 3-12 years-for both western and Indian
clothing, while also providing matching accessories that may go with the outfits. The idea for providing
occasion wear for kids has not been exploited to its full potential and since we intend to provide all the
products under one roof we will have an edge over the other players in the market. Our mission is to
provide high quality exclusive clothing for kids, in the perfect blend of fun and fashion and also
providing suitable accessories while offering world class services and convenience.
Catering to the upper middle class, our products are priced between Rs 999 to Rs 3500, market skimming
being our strategy. Outsourcing our production, the management will ensure that products are
manufactured keeping ISO 9001 certified and total quality management practices which will ensure top
quality products. Our manufacturing processes ensure six sigma ratings thereby claiming negligible
defects in our processes (less than 3.4 in every million). We propose to start with a capital of Rs. 4 lakhs,
while taking a Rs. 6 lakh loan from SBI. A property jointly owned by the founders of this business
located at Karol Bagh, now valued by the bank at Rs. 10 lakh will act as collateral for the loan.
The four partners and promoters behind the group have exceptional knowledge, expertise and experience in
the field of fashion and designing. We intend to hire a marketing team and accounts personnel. The
strength of the business lies with the design team who will create products that will break the mould of
the existing fashion scenario of kidswear. We propose to start with two stores- one in Saket and the
other in Gurgaon- both in MGF Metropolitan mall. For promoting the store, we would offer inaugural
discounts, complimentary gifts for kids; while advertising in cartoon channels and hiring child artists as
our brand ambassador.
Company Overview
Mission Statement
To provide high quality exclusive clothing for kids, in the perfect blend of
fun and fashion and also providing suitable accessories while offering
world class services and convenience.
The four partners and promoters behind the group have exceptional
knowledge, expertise and experience in the field of fashion and designing.
Following are their details regarding their achievements so far:
Kriti Mehta: Kriti started her career in fashion by completing her Masters
Degree in fashion design in Indian Wear from Pearl Academy of Fashion, New
Delhi. After graduating, she worked with the renowned brand name Satya
Paul for two years. Within a year she was promoted as the lead designer under
Contemporary print designs and managed a team of 5. She then took a break
and pursued a one year management course specializing in fashion retail and
marketing. She then got together with her friends and started this venture.
Graphics Sr.
Designer
Accounts Manager
-ensuring that funds are spent and managed according to the goals, objectives and mission
of the organization.
-allocation of expenditures is appropriate to the function identified for the account.
-allocation of expenditures is appropriate to the function identified for the account.
Marketing Manager
-Establishes marketing goals to ensure share of market and profitability of products and/or
services.
-Plans the organization's advertising and promotion activities including print, electronic,
and direct mail outlets.
-Guiding the customer service manager to maintain positive customer service relationships
with all customers. (https://www.jobdescription.com/content/complet1.asp)
Industry/Market Analysis
Children below 18 years account for more than a third of India’s
population estimated at 950 million in 1995. Today, young
children (0-6 years) account for 17.5% of India’s population, an
estimated 166 million.
Close to 27 million children are born every year – and it is
estimated that the same numbers will be born every year, as
India’s population is expected to rise
(http://wcd.nic.in/udisha/htm/catalogue/2.doc)
3-6 yrs
6-9 yrs
9-12 yrs
• Tops • Tuxedos
• T-Shirts • Shirts
• Shirts
• Trousers
• Skirts
• Jackets
• Shorts
• Jeans
• Waist Coats
• Trousers • Jackets
• Jackets • Pulllovers
• Pullovers and
Cardigans
Place – Distribution
Our distribution pattern is fairly simple. All
manufacturing takes place in house in our
factories conforming to strict quality standards
of production thereby ensuring high final
product quality
Raw materials are acquired from well known
and established suppliers
The warehouses are located inside factory
premises as we do not carry much inventory
levels due to the nature of the fashion industry
as trends and designs keep changing quickly
Currently, we have two retail outlets in the
region of Delhi NCR region. Both outlets are
located in Metropolitan mall in Saket and
Gurgaon.
Growth trends and Future Potential
The kids wear market in the country is mainly divided into two parts
organised and unorganised, with the latter having a larger part of the
market share. However, the organised sector is catching up due to their
inherent advantages in their product offerings (i.e. quality, designs and
trends) as well as increasing craze of brands amongst children
According to Global market review of children’s wear – Forecasts to 2012,
the top ten global markets (which includes India) would account for an
estimate of US $92.6 billion in children’s apparel retail sale
Indian kids apparel brands are creating a niche by themselves by changing
the face of Indian kids wear in India
Industry experts predict that the market will further grow to reach Rs.45,
000 crore by 2013, with branded apparels contributing to a major
share.(http://www.scribd.com/doc/18795157/Indian-Kids-Wear-Market)
The volume of market share of kid‟s apparels in the total apparel market is
at 24.9%, as against a 15% share in 2005.
(http://www.scribd.com/doc/18795157/Indian-Kids-Wear-Market)
Urban kid’s apparel market comprises about 60% of the total kidswear
market. A research states that more than 30% of the country‟s population is
below 15 years of age. The density of population makes kidswear to be one
of the fastest growing segments in the Indian market scenario
(http://www.scribd.com/doc/18795157/Indian-Kids-Wear-Market)
Pricing
Our pricing techniques mainly follow Market
Skimming techniques
As most of our products are made from high
quality fabric and depict latest designs and
trends in fashion, they are priced a bit on the
higher side to avail profit
The remaining product offerings which are
basic to industry standards and some
accessories are priced according to the value
they offer to the consumers, thereby targeting
the lower middle class as well as to compete
with other players in the market
Promotion Strategies
Inaugural Discount on purchases for the first month in order
to increase brand awareness
Complementary gifts for kids for the first few days of opening
of the store
Further gift vouchers for purchases exceeding a certain limit
Advertising strategies would mainly aim at promoting brand
awareness amongst the parents as well as children as both
play an equal part in purchasing decisions
Colorful television ads on cartoon channels or during special
kids events in order to attract kids
Interactive advertisement on internet (on kids websites) and
TV .
Designing advertisements in a way so as to project a cooler
image of kids wearing our brand of clothes in those
commercials
Hiring famous child actors as our brand ambassador
Financial Plan
BUDGETED PROJECTIONS - OCT 2009
Nov Projections have been increased by 5% and Dec have been increased by 15%.
QUARTERLY PURCHASE BUDGET
CLOTHES OCT NOV DEC QUATERLY ACCESSORIES OCT NOV DEC QUATERLY
Budgeted Sales 450 475 580 1505 Budgeted Sales 300 330 400 1030
Add: Desired Ending Inventory 48 58 65 171 Add: Desired Ending Inventory 33 40 45 118
Total Needs 498 533 645 1676 Total Needs 333 370 445 1148
Less: Beginning Entry 45 48 58 151 Less: Beginning Entry 30 33 40 103
Required Production 453 485 587 1525 Required Production 303 337 405 1045
Cost per Unit 800 800 1200 2800 Cost per Unit 250 250 300 800
Sales Price Per Unit 1500 1500 2000 5000 Sales Price Per Unit 450 450 500 1400
Production Cost 362400 388000 704400 1454800 Production Cost 75750 84250 121500 281500
Sales Cost 675000 712500 1160000 2547500 Sales Cost 135000 148500 200000 483500
Gross Profit 312600 324500 455600 1092700 Gross Profit 59250 64250 78500 202000