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Term Paper-Marketing Plan
Term Paper-Marketing Plan
1.A & A Kids Wear (AAKW) is a retail store for kids wear with good quality and latest trends 2.This business will cater to the needs of Kids age from 6 to 11 3.Location of the business is assume an actual location in Chittagong city. The target audiences of the business are : Age 5 to 9 years 10 to 14 years Total : ( 5 to 14 years) Population 250,000 250,000 500,000
II. Vision To be a distinguished kid-wear retailer known worldwide for the quality of products, setting new trends and life style
III. Mission To offer continuous value added products to our customers. To accomplish this, we focus on exceptional design, innovation, quality, convenience and interactive communication.
IV. Strengths and Core Competencies The foundation parameters on which we ensure the excellence of our garments are : Material Cut Design conformation Embroidery Stitching Stability Finish Color fastness
V. Challenges Increasing competition, especially from well known store like Menz Klub, Kids World , Disney etc. Good quality materials Changing demands and catering to this demand Changing fashions and changing behavior of demographics
Services Overview
I. Services
For different age groups, our variety of children wear is offered in different sizes and is tremendously comfortable to wear. Our offered clothing collections for kids are : Hooded T- Shirts We offer an exceptional range of T-shirts with hoods that are offered in a multitude of colors and patterns. Printed T-Shirts We make an extensive range of in print T-shirt that are offered in diverse colors and prints. Childrens T-Shirts An exclusive range of full sleeve childrens T-shirts. Half Sleeve T-Shirts We offer a broad range of Half-sleeve T-shirts Cotton Knickers Knickers are one of the trendiest as well as the most comfortable garment for kids, available in eye catching prints and colors.
II.
Benefits and Features Lovely designs and prints Eye-catching colors Long-lasting apparels Comfortable to wear Available in various sizes
III.
A number of the factors that have made us the ideal choice of our customers are : Various variety under a single roof Quality guaranteed goods Customization Capacity to accept mass orders Well-timed delivery Easy payment modes of Cash
C. Market Growth Total Clothing market in Bangladesh is growing fast based on population growth, Buying capacity increase day by day .Cloths shops and sales is grown near about 33% since last 3 years.
D. Market Trends : All manufacturer and importers are invested a lot in expanding their infant and children outfits brand. Both local manufacturer and importers are investing for Fashionable , eye catching and comfort wear for children & infants. Usually importers are arranging all kinds of fashionable and latest design wear from Thailand, India to attract the local consumer.
E. Market Demand Usually before EID-UL-Fitar , New year festival, Durga Puja demands of all kinds of clothing increased near about 40% from normal sales in other time. All clothing stores And chain shops invest lot of money be festivals to gather the childrens & infants wear and other wear to their shops. F. Children & Infants Cloths business Life Cycle Kids clothing market is at maturity stage although its generating good demand and sales and has good scope for business for next few years. The higher birth rate was observed in Bangladesh for which market demand is still growing also buying capacity of the people Is increasing day by day. This makes clothing business stand at maturity level in its life cycle. Cyclical trends in Industry : With record high numbers of infants, toddlers , and children attending preschool during the year, clothing purchases for this slice are becoming less cyclical This business has conventionally been highly seasonal, as with other clothing business, so during EID , Puja and other festival round the year kids has some dress for the enjoying festival New sessions of schools will be starting in the month of January which also boost the sales of kids wear. In all religious and new year festival also high sale of kids wear.
G. Market Potentials : Shifting demographics made the childrens and infants wear business attractive to new entrants and, therefore, tremendously competitive. Sales will continue grow in next few years. Expected sales growth at least 12 % per year in next few years
A huge and profitable market for Childrens & infants clothing stores in the Chittagong City which is growing rapid rate This growth due to birth growth is still high in overall Bangladesh which amplified for infants and toddlers wear. H. Market Opportunities : market is growing a rapid rate so its a great opportunity to enter in the market where demand is increasing drastically Usual birth rate is high , meaning more potential for kids & Infant purchasing. Country is going through recessionary period so parents are on tight budget, which is great opportunity for our business to offer discounts and low pricing packages to attract consumers. This business has conventionally been highly seasonal, as with other clothing business, so in EID, Puja and other festival demands become more high.
I. Barriers to Entry : Market is highly competitive, so no such barriers exist in this sector. J. Regulations Need to obtain Trade Licence from City Corporation, Vat Registration Certificate and Tax Identification Number (TIN) from the tax authority.
III.Targeted Audience
Since our business is kids wear, so our primary target audience will be: Demographics : Primary Target : Age : 6 -11 Years Secondary : Family Our target markets for kids clothing are Parents (Mother/ Father) Total population of Chittagong City is 40,000,00 and our target audience is : Age 5 to 9 years 10 to 14 years Total : ( 5 to 14 years) Population 250,000 250,000 500,000
%
100% 41% 26% 22% 11%
Sales in Crore
18 Crore 7.38 4.68 3.96 1.98
It indicate that in Kids sector girls wear sales is high of the whole kids sector. So our products line would be according to the needs of the market and purchasing trends.
IV.
Competition
Competition is very high. Some good named chain store and shops already in the market.
V.
Marketing Niche
Our niche market is kids sector or people who buy kids wear.
VI.
Marketing Strategy
Basic strategy of our business is to launch kids wear by the next two months. Initially we launch normal kis wear which will cater the needs of masses. By the end of the year , we will launch customized products to cater to the need of every individual customer.
Later on, school accessories and school wear are also in the pipe line.
a)Value Proposition A&A Kids Wear Lovely Design Color Ranges Long Lasting Various Sizes Comfort Easy Cash Modes
Our core value proposition is that we will add value to our product by providing matchless kids wear with extensive range of color and different sizes in comfortable and durable fabric with easy mode of cash transactions at comparatively low prices.
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b) Branding We position ourselves as a brand, which gives quality products at fairly low prices with extensive range vibrant colors and continuous value addition to our products with innovative ideas in design in printing. c) Marketing Objectives Image ourselves as a brand with competitive edge To offer continuous value products to our customers To achieve our financial target Set a benchmark in industry as a cost leader through minimization of waste and improve performances.
d) Strategy Meet the demands of market and supply demanded goods on time without any barrier or hurdle Offer excellent products at low price Make products according to the needs of the customer Give good hassle-free ambiance for shopping, which will help the business and give edge over rivals. Develop a kids-friendly store environment and decoration, which will attract parents to bring their kids in the store and shop with comfort.
2011 TK.10,000,00
2012 15,000,00
2013 20,000,00
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Weakness : New in business as compare to rivals Huge capital is required to start business as credit ins not easily available from supplier in start. Marketing expense in the start will be huge , to establish brand name required lot of advertising.
Opportunity : *Seasonal business : In EID & Puja demand is very high . * Sector is growing fast in our business operating area. Girls wear demand is huge so adding value in this category will be the great advantage Usual birth rate is another opportunity for kids wear section Animated movies increased the demands and popularity of printed shirts for kids.
Threat : *Competition is high and famous store Menz Klub, Kids World introduce their kids shop in the city and penetrating in market. * People are more conscious for pricing due to recession and going for discount.
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b) Price Penetration Pricing will be the pricing strategy for our business, as our business is new and at the main shopping area in the city where competition is huge, so we try to give good quality and low price to penetrate in the market and try to achieve higher sales volume to set low price and better quality strategy. Once we achieve this objectives then try to charge higher price for our customized products for value addition. c)Place At one of the high street of Chittagong City d) Promotion Advertising : 1.Above The Line 2.Below The Line -Flyers (through hawkers) - Coupons Internet Radio Magazines Newspapers ( Only weekends for two or three weeks)
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Operational Plan
I. Service Execution Model
AAKW will sell products by following methods : Retail Store : They will open a store in Chittagong GEC circle area which will be primary location for their supplies storage also. Online Selling : They will offer their main products on the website, which will provide convenience to customers in purchasing kids wear related products.
Location : GEC Circle , Nasirabad, Chittagong II. Legal Environment AAKW has no legal obligations with their suppliers and customers.
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III. Personnel Management and Organization AAKW operates with 6 people staff. It helps them controlling budget and decreasing overhead expenses as well.
Sumita Talukder
(Owner /Manager/Accountant)
Sales Person 1
Helper
Sales Person 2
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Financial Plan
I. Start-up Expenses Summary
The start-up expenditure for A&A Kids Wear (AAKW) are summarized as below: Startup Expenses Summary A&A Kids Wear Source of Capital
Investment requirement Total Investment Startup Expenses Retail store development & set up Capital Expenditures In store Staff Promotion Consulting Services Total Start-up Expenses
TK. 5,000,000 TK. 1,500,000 TK. 500,000 TK. 1,000,000 TK. 200,000 ________________ TK. 8,200,000
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II.
Revenue Forecast ( 3 Years) A&A Kids Wear Kids Clothing Range Hooded T-Shirts Printed T-Shirts Childrens T-Shirts Half Sleeve T-Shirts Cotton Knickers Sub total clothing range Accessories Total Revenue
Year 2(TK) 3,321,500 5,044,000 2,964,000 2,470,000 1,250,000 15,049,500 500,000 15,549,500
Year 3(TK) 4,318,000 6,557,000 3,853,000 3,211,000 1,562,000 19,501,000 800,000 20,301,000
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III.
Revenue (Sales) Kids clothing range Accessories Total Revenue (Sales) Operating Expenses Retail store development Capital Expenditures In Store Staff Promotion Consulting service Total Operating Expenses Profit Before Taxes Taxes ( 15% ) Net Profit
11,600,000 11,600,000
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References :
Marketing Management , A south Asian Perspective By Philip Kotler , Kevin Lane Keller, Abraham Koshy & Mithileshwar Jha Biz Plan Corner - Website Class Lecturer By Mohd. Alauddin- Lecturer UITS, Chittahong
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