BUSINESS PLAN

ON
FASHION BOUTIQUE
SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF
M.COM (ENTREPRENEURSHIP AND FAMILY BUSINESS)

TO

PANJAB UNIVERSITY, CHANDIGARH

MAY 2019

GOSWAMI GANESH DUTTA SANATAN DHARMA COLLEGE

SECTOR 32 C, CHANDIGARH

UNDER THE SUPERVISION OF: SUBMITTED BY:

 “REWAJ”
A FASHION BOUTIQUE

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1 INTRODUCTION 3

2 ENVIRONMENTAL ANALYSIS 3

2.1 EXTERNAL ENVIRONMENTAL ANALYSIS 3

2.1.1 POLITICAL 3
2.1.2 ECONOMIC 4
2.1.3 SOCIAL 4
2.1.4 TECHNOLOGICAL 4
2.1.5 LEGAL 4
2.1.6 ENVIRONMENTAL 4
2.2 INTERNAL ENVIRONMENTAL ANALYSIS 5
2.2.1 RESOURCES (CAPITAL) 5
2.2.2 RESOURCES (PEOPLE) 5
2.2.3 ORGANIZATIONAL STRUCTURE AND CULTURE 5
2.2.4 PRODUCT DEVELOPMENT 5
2.2.5 TRAINING 5
2.2.6 SYSTEMS & PROCESSES 5

3 CUSTOMER SEGMENTATION AND MARKET ANALYSIS 6

3.1 COMPETITOR ANALYSIS 7

3.2 SWOT ANALYSIS 8

3.3 KEY ISSUES 9

4 MARKETING OBJECTIVES 9

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5 MARKETING STRATEGY 10

5.1 STRATEGIC OVERVIEW 10

5.2 TARGETING AND POISONING STRATEGY 10
5.2.1 PRIMARY CUSTOMERS THEIR KEY INFLUENCERS, DECISION MAKER, AND
ECONOMIC BUYER 11
5.2.2 PRIMARY USERS 11
5.3 POSITIONING, VALUE PROPOSITION 11

6 PRODUCT STRATEGY 12

6.1 PRODUCT PORTFOLIO 12

6.2 PRODUCT / SERVICE ANALYSIS 12

6.4 COMPETITIVE PRODUCTS, AND ANALYSIS 13

6.4.1 DIRECT COMPETITORS 13
6.4.2 SUBSTITUTE PRODUCTS/SERVICES 13
6.4.3 POTENTIAL NEW MARKET ENTRANTS 13

7 BRAND STRATEGY 14

8 PRICING 14

9 INTEGRATED MARKETING COMMUNICATION PLAN 15

9.1.1 ADVERTISING ACTIVITY 15

9.1.2 DIRECT MARKETING ACTIVITY 15
9.1.4 ONLINE ACTIVITY 15
9.1.7 EVENTS ACTIVITY 15
9.1.9 RETAIL SUPPORT AND OTHER COLLATERAL 15
9.2 MARKETING AND PROMOTION BUDGET 15

10 Distribution Strategy 16

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 BUSINESS PLAN
1 INTRODUCTION
“REWAJ” Its Easy to be Trendy

Clothing is a beautiful visual demonstration of the social and emotional needs

of people wearing it. It also portrays in a clearly understood visual manner, what
people of different cultures and styles want socially. Fashion, through times, has
gone through many rapid changes and bizarre extremes that it has examples of
nearly every kind of clothing function.

However in a boutique business the specifications and description of the

designs and clothes are so general that they can fit more than one customer, which
actually are quite different from each other in nature and this is solely dependent
on the taste of the people.

Similarly in our boutique we are going to provide the highly trendy and
fashionable clothes first time ever in the history of Ludhiana. Right now our main
focus is on women aging 20 to 55. But in the near future we are having plans to
expand it to other segments as well. We are also having plans to open the men
boutique under the same name in near future. We are focusing businesswomen,
and housewives finding less time from their work to stick to the fashion
magazines, TV and others. We will provide them the platform where they can
come select the trendy ones and feel confident in their circles.

Mission:

“Satisfying our customers by providing them best qualitative stuff and

unique designs keeping in view their comforts and excellence”

2 ENVIRONMENTAL ANALYSIS

2.1 EXTERNAL ENVIRONMENTAL ANALYSIS

By the careful external environmental analysis w find out the following
factors important to consider in order flourishing in the industry

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2.1.1 POLITICAL
India is very instable political country. We are having laws but no enforcement at
all. This thing is devastating for any industry. Elections run through almost every
year although for none but for many reasons. Every government brings new rules
and policies. Even different political parties are against fashion industry like
MMA. Taxes, FEDs and other import duties are being imposed making hard to
survive. Despite of all these fashion industry is flourishing and renowned in the
world.

2.1.2 ECONOMIC
Inflation rate in India is rising every year. In 08-09 it was 22.3% that was 10.3%
in 07-08. This is very point of tension. Interest rates are other freaky thing. And the
recent world recession though had less impact on Indian economy yet has its
importance. These things are like hurdles in fashion or in any industry. The price
wars are also of great important. Countries with high technologies are striving with
low prices dragging developing countries towards down.

2.1.3 SOCIAL
India is the 6th largest populated country of the world. Due to the increased literacy
rate and advanced media people are aware of new trends and fashions. Due to the
entrance of foreign market tastes of people so as living styles are being changed.
People are becoming more fashion conscious and careful in their selection.
Advanced telecommunications has improved sociability of the people. At the same
time religion is on the move. These all things has a great impact on fashion
industry as people are more aware of their needs so as to satisfying them.

2.1.4 TECHNOLOGICAL
Though fashion industry is not technology driven but in ever dynamic and global
market it’s now being essential to prosper in the technology area. Now a day
without technology success seems far. It’s a great tool of competitive advantage
and a source if brand equity as well. The concept if e-business is having great
impact on fashion industry. Enhanced Internet, mobile and media activities are
gaining much importance in the fashion world.

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2.1.5 LEGAL
Certain legal acts can’t be left as unimportant. Different business laws should be
kept in mind to abstain any problem in the future. Though there is no enforcement
of laws in India but laws are of great importance. In the recent government many
new laws are made. Different trade policies with the neighboring countries are
signed. These all things according to us should be considered in the business.

2.1.6 ENVIRONMENTAL
Weather has a great influence on fashion or apparel industry. But weather in India
is not changed unexpectedly. But the electricity crisis are of great important so as
devastating.

2.2 INTERNAL ENVIRONMENTAL ANALYSIS

Following are the factors considered as internal

2.2.1 RESOURCES (CAPITAL )

*20 lakh

(* See key assumption for utilization of resources in the last page)

2.2.2 RESOURCES (PEOPLE)

14 (1 Graphic designers, 2 sales girls, 5 tailors, 1 iron man, 1 dyer, 1 office
boy, 1 guard, 2 sweepers/ peon)

2.2.3 ORGANIZATIONAL STRUCTURE AND CULTURE

Dynamic yet friendly

Top management decisions

2.2.4 PRODUCT DEVELOPMENT

 Design

 Pattern making/ cutting

 Stitching

 Finishing

 Presenting/ market

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Proposed capacity

2.2.5 TRAINING
Required in order to give familiarity with new trends and styles.

2.2.6 SYSTEMS & PROCESSES

 In-house and outsourcing stitching (buttonholes and elastic embedding will
be outsourced)

 Contracted designers

 Stitching machines 3

 Working hours 8

 Rent out outlet (as per following infrastructure components)

Market Growth Rate:

Market is growing rapidly as more and more women are being fashion conscious.

Market Micro-Segmentation:

Housewives, working women and University girl

Typical Buying Needs:

Clothing

Key Publications:

www.rewaj.com.pk, newspapers, fashion magazines e.g: “SHE”

Key Trade Events:

Conferences on fashion awareness, and shows in universities and colleges,

exhibitions in Delhi and Ludhiana.

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2.3 COMPETITOR ANALYSIS
Analyze the size and intensity of the competitors in the target market(s) and
describe the major competitors in the target market(s) and their major strengths and
weaknesses as per following format.

2.3.1 SAHIL BOUTIQUE:

Strength #1 dealing in almost all categories of women suiting

Strength #2 different shops for different category

Strength #3 Dealing also in men suiting

Weakness #1 no mission statement

Weakness #2 inside bazaar congested area

Weakness #3 Stitching problem

Weakness #4 late delivery

Weakness #5 customization problems

2.4 SWOT ANALYSIS

Strengths Weaknesses

 Good and high quality  High rates and prices

machinery
 Less supportive financial and
 Exclusive outlet govt institutions

 Highly qualified staff  Lack of idea sharing

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  Adaptability to newness

 Diverse brand portfolio

Opportunities Threats

 Expand into emerging  Lack of knowledge

economy
 Brand cannibalization
 Enter new product market
 Substitute
 Acquire more market
 New entrants

 Competitors

 Political instability

2.5 KEY ISSUES

First the company has to focus on

 Lack of knowledge

 Acquiring more markets

First time the boutique like ours is being introduced in Ludhiana . It is very much
necessary to convey about boutique, generate awareness and make people know
about the benefit of boutique.

Second increasing the length of business is crucial to every business. Entering into
the new and potential market is very much important. So finding new prospective
market is also important.

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3 MARKETING OBJECTIVES
Objectives:

Non-financial objectives:

 To be among the top ten favorite brands

 To add new designs in every season

 To drive awareness and build sales through mentions in both local print and
the nation's top fashion magazines
Financial objectives

 To maintain an inflation growth in earning per year at a rate of 12%

 To obtain a return on equity of at least 30%

 Providing stitching facilities to other boutiques in 2012 who are lacking this
facility

 To maintain profit margins at 15-20% through close attention to expenses

and cost of goods sold

4 MARKETING STRATEGY

4.1 STRATEGIC OVERVIEW

Due to the demand for up-to-date fashions, inventory turns are projected at 5

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From the above projected overview it is obvious that business is heading towards
growth.Which is a prosper sign for boutique business.

4.2 TARGETING AND POISONING STRATEGY

If you were to overhear women talking in a dressing room, you would more
than likely hear them comment on something they've tried on and question how
they should wear it or what it will go with in their closet.
Research has shown that women are stressed, have little time to shop, and
would generally like help in determining the right clothes and styles to wear. With
over 61 million U.S. women between the ages of 25-54 spending over $34 billion
in apparel each year, there are sure to be some mistakes made in clothing choices.
Television shows such as BBC's "what not to wear" and Style's "Fashion
Emergency" clearly speak to a woman's confusion about what looks best on her.
Even women who can afford a professional stylist feel helpless and often jokingly
request that their stylist come to their home every morning to help them get
dressed.
"Within a decade, the companies that do the best job of marketing to women will
dominate every significant product and service category." -Faith Popcorn
Target: Women

Position: Time; less time to find latest and trendy fashions in a single place.
Without utilizing much energy, effort etc

4.2.1 PRIMARY CUSTOMERS THEIR KEY INFLUENCERS , DECISION MAKER , AND

ECONOMIC BUYER
Both primary and secondary customers are women, key influencer is woman,
Decision maker is woman, and economic buyer is woman and man.

4.2.2 PRIMARY USERS

Both primary and secondary customers are women

4.3 POSITIONING, VALUE PROPOSITION

Describe how you will differently position your product form the competitive
products.

Positioning Statement

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 “Rewaj” Boutique provides women with upscale designer clothing and
exclusive personal services. Our main competitive advantage is the unique Style
Assessment and education emphasis in helping women develop their personal
style.

Brand Positioning

“Its Easy to be Trendy”

As the name and logo suggest that women can come to the boutique to learn
about themselves and experiment with their personal style. By these meanings,
Rewaj looks to be the leader in providing exceptional service and assistance for
women's fashion needs. The elegance of the name suggests the types of clothing
and accessories that will be featured.

Brand personality
Innovative | Stylish | Contemporary | Modern | Fresh | Approachable | Elegant
The overall brand personality of “Rewaj” aspires to be fashionable, customer-
oriented, innovative, refreshing, stylish and educational. The boutique is a place
where women can go to transform themselves with beautiful clothes and take
advantage of the Style Assessment and other services that help them determine the
right clothes for their unique selves. We are a shop that educates. We help women
learn about the designers, gather with their friends, and have fun during the
process. We not only carry items that help them look good, but we also help our
customers maintain these items. Owners will work with their top design advisors to
create the atmosphere, colors and wording that encapsulates these thoughts.

5 PRODUCT STRATEGY

5.1 PRODUCT PORTFOLIO

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Product Class: Fabric/ clothing

Product Category:

 Casual Wear

 Semi Formal Wear

 Formal Wear

Product line:

Each product line will have the following product lines

 Ethnic wear

 Contemporary Wear

 Western Wear
Product Mix

Category Percentage of total % Cost of sales

outfit

Casual Wear 34% 35%

Semi Formal Wear 33% 32%

Formal Wear 33% 30%

5.2 PRODUCT / SERVICE ANALYSIS

We are focusing on casual, formal, and semi formal in which we will be giving
contemporary, ethnic, western. Our main focus would be on latest trends. We will
try to give the best quality, colors, designs, fabric and so as the best environment
that women will find ease and would surly love to buy form our boutique again
after first buying. Our clothes will appeal image conscious, fashion aware, and
choosy type of women. Women will feel high among their social circle.

Estimated annual sales: 40lac

Estimated profitability: 25lac

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Market Growth rate: 10% as the increase in incomes and awareness in the
gentry.

Geographical scope: Ludhiana is a trade city. Nearer cities to India are

Chandigarh, Jalandhar, Bathinda. Moreover LUDHIANA is developed city as
compare to most of these cities. So this city has vast coverage. And people can
easily come to our boutique.

Consumer buying process: due to the less markets and shops people find ways to
festive. Normal trend is that women love to buy visiting the market. In our outlet
they would love to cone and buy.

5.3 COMPETITIVE PRODUCTS, AND ANALYSIS

5.3.1 DIRECT COMPETITORS

5.3.1.1 Competitor 1 – Sahil Fashion Boutique
5.3.1.1.1 Contact Details:
Address: Sahil house and boutique, Chowk bazaar, Sarabha Nagar, Ludhiana

Telephone: 07589175122

It is the only considered competitor yet it is far behind competition. But its
proposed plan can be bring it into hard competition. Right now they have captured
the highest market share. They are having boutique whereas they accept alteration
and made on order as well. Though they are not having any website, mission or
vision statement but they have prospered. They are even selling in Delhi market
but on minimal level. Their prices are moderate to high and their products are
perceived as of high quality. The perceived weakness they are having is of
congested area, lacking in quality of fabric and sometimes in stitching, whereas
perceived strengths are of dealing in men suiting, having different shops for
different categories and owning large area.

5.3.2 SUBSTITUTE PRODUCTS/SERVICES

Traditional tailors can be substitute one. Where traditionally women go and made
dresses according to their desire though not of high h quality but do.

5.3.3 POTENTIAL NEW MARKET ENTRANTS

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Possible new entrants can be those small boutiques working on small level right
now not having much investment but got experience like Fashion ghar, Huma silk
center and small home made boutiques

6 BRAND STRATEGY
 We brand our product with brand laddering: emotional brand laddering, our
product is of image conscious wich requires highly image positioning

 Our boutique focus on latest trends and less time to reach them. Woman can
get what they want without any problem and with great ease. We are
providing value, image, elegance and style of what woman are hungry.

 Brand name: Rewaj suggesting that what is in the fashion. Easy to

pronounce and easily accepted all over the India without any discrepancy.
We can even extend our boutique to men under the same name this name has
no limitations.

 Logo: needle and thread expressing the nature of business. It is memorable

generating loyalty and protectable. Adaptable to any culture. And having no
cultural problem all over the country. Similarly have no limitations.
Acceptable for both genders.

 Color: red and black. Quite neutral color easily memorable and associations
can be developed without any problem. The R written in capital font and
with red color getting attraction and attention.

 Slogan: It’s easy to be trendy positioning on time and easy to memorable.

Also it delivers that we are giving what ever is in fashion and is in. It is also
protecable and acceptable in culture.

 Symbol: girl wearing contemporary dress. Focusing on latest designs and

fashion. And it also shows that boutique is of women. Women can generate
associations with the symbol.

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7 PRICING
Pricing is set according to market indicators. Set in such a way that it covers cost
and generate revenue for the boutique. In the start it requires lower prices in order
to penetrate in the market. Than high the price for the assurance of high quality as
it is perceived.

Version Upgrade/Competitive Upgrade Matrix

Product Intro. After a 9 Proposed

Prices months competitive price
for future.
Rs Rs
Rs
Casual wear 3000 3500 2900
Semi formal 4500 5000 4200
wear
Formal wear 15000 18000 16000

8 INTEGRATED MARKETING COMMUNICATION PLAN

8.1.1 ADVERTISING ACTIVITY

Newspaper advertisement will be done, banners, posters, brochures and cable TV
ad will also be used.

8.1.2 DIRECT MARKETING ACTIVITY

Catalog marketing will be used, direct mail are also considerable

8.1.3 ONLINE ACTIVITY

www.rewajtrend.com is our website we will provide online purchase facility.

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8.1.4 EVENTS ACTIVITY
Exhibitions will be arranged, participations in fashion shows will be done. And
seminars on fashion awareness will also be arranged.

8.1.5 RETAIL SUPPORT AND OTHER COLLATERAL

Brochures, and key chains will be designed written rewaj on it.

8.2 MARKETING AND PROMOTION BUDGET

Marketing activities are important generating awareness. More the money spend
more effective the activity will result.

The total cost of all activities will be of 2 million and it will increase sale 5 times.
More and more people will be aware they will attracted towards product.

9 DISTRIBUTION STRATEGY
Manufacturer

Customer

Direct chain as we are having both backward and forward integration.

Selectivity

Shopping good so exclusive outlet and selective distribution as product is of high

image.

Waiting and delivery time

Product will be available in the outlet so customer doesn’t have to wait for the
delivery.

Variety and Assortment

We will provide this as we are dealing in three categories; casual, semiformal,

formal

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Information provision:

We will provide training to our employees so that they can facilitate the customers
as much as possible.

Following flows would be performed to produce the above services outputs. These
flows would be performing from manufacturer to consumer through whole seller
and retailer.

 Physical possession
 Ownership

 Financing

 Risking

 Negotiation

 Promotion

 Ordering

 Payment

Channel Function and Flows

A marketing channel performs the work of moving goods from producer to
consumers. It overcomes the time, place and possession gaps that separate goods
and services from those that need or want them. It perform number of functions:

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 They gathering information about potential and current customer,
competitors, and other actors and forces in the marketing environment.
 They develop and disseminate persuasive communication to stimulate
purchasing They place an order to the company They provide for the
successive storage and movement of the physical products.

Key Assumptions

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