Wizard Collection

Boutique

PROJECT REPORT ON A BOUTIQUE

Subject:
MARKETING MANAGEMENT

Presented To:
MR. ABDUL RAZZAQ

Presented By:
SIDRA SAJJAD SUMAIRA ANSARI TAUQEER FATIMA FARIHA TABASUM MUHAMMAD KASHIF KALEEM ABBAS SADIA KANWAL MB-11-01 MB-11-05 MB-11-19 MB-11-33 MB-11-38 MB-11-48 MB-11-51

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(AL-ALAQ)

READ! AND THY LORD IS THE MOST BOUNTENOUS, WHO TEACHETH BY THE PEN, TEACHETH MAN THAT WHICH HE KNEW NOT.

ALLAH DOES NOT LOOK AT YOUR FORMS AND POSSESSIONS BUT HE LOOKS AT YOUR HERTS AND DEEDS.
(MUSLIM)

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I dedicate this report to Almighty Allah, The Creator of worlds And Hazrat Muhammad (P.B.U.P), the cause of The creation of the Universe And To my parents, To the persons who loved me, persons whom I loved and for all those who prayed for me.

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WIZARD COLLECTION

ACKNOWLEDGEMENT

Thanks to Almighty ALLAH for giving us such will and power to complete this new business plan on time. We wish to acknowledge our regards and indebtedness to our guide and benevolent Prof: MR. Abdul Razzes Sb teaching Marketing Management in Bahadur Sub Campus Layyah.W hose ki nd and precious suggestions enri ched our thought s and helped us to accomplish this New Business plan in area of Layyah which is

WIZARD COLLECTION.
We also want to thank our families who supported us.

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PREFACE
We have this idea of Boutique to make our project on it. We had a good time gathering the information about the topics, and then developing a fictitious company into a project. The project is basically about the Business plan of the boutique in Layyah City. We also used the source of internet for gathering information. We think that we have done our job in making the business plan we hope that we have given all the complete information required by our teacher, and hope that our hard work pays off.

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Course name:
Marketing Management

Course Instructor:
Sir Abdul Razzaq

Project on:
Start Boutique Business in Layyah

Group No:
2

Group Name:
24/7 (24 hours in a day and 7 days in week, it basically relate with way of success. Those who want to achieve their aim they must work as 24/7)

Group Members Name:

Sidra Sajjad Sumaira Ansari Tauqeer Fatima Fariha Tabasum Muhammad Kashif Kaleem Abbas Sadia Kawal (MB-11-01) (MB-11-05) (MB-11-19) (MB-11-33) (MB-11-38) (MB-11-48) (MB-11-51)

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HOW WE GENERATE THIS IDEA?

When we thing about a new product or business then thought that there is hardly need of a Ladies Boutique in Layyah city. There are some garments shops not provide good and quality dresses with new styles and branded material. So we have this idea. We work on it and this report will provide complete information to anyone who wants to start. It start only if you love clothing and have always dreamed about opening up your own little clothing shop, the only thing that is standing between you and your dream is the effort that is necessary to make it come true. Currently, the boutique industry is relatively unorganized and is scattered in and around the posh areas of the metropolitan cities of Pakistan i.e. Lahore, Islamabad, Karachi, Peshawar, and Quetta. However, one can name a few major players in the business such as Maria Bs Beeges Ninas Nilofar Shahid Amir Adnan Shayan Malik etc

INTRODUCTION:
Boutique Name:
WIZARD COLLECTION

Location of Business:
It must on Chobara Road, not in main market but a peaceful place because it deals in ladies dresses casual wear, formal and informal wears.

Our Slogan:
Always Wizard look

Mission:
Satisfying our customers by providing the best qualitative stuff and unique designs keeping in view their comforts and excellence.

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Our Objectives: Non Financial Objectives:

To be among the top favorite brand. To add new design in every season.

Financial Objectives:
To obtain a return on equity of at least 30%. Providing stitching facilities to other boutiques in 2010 which are lacking this facility.

Marketing Mix: (4 ps)

Production:
Our efforts about product will be are Never ever compromise with quality, image, brand name and features. We make best designs, size, packaging and warranties. Customers will come again and again.

Price:
List price is reasonable as compare with quality and product. Allowances and discounts allowed are some situations.
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Wizard Collection Payment period is quick or at the time of purchase.

Boutique

Place:
Channels of availibity are known by mostly customers. Location and environment is peaceful as for women as well as families.

Promotion:
Sales promotion activities like new designs on special events e.g Eid, New year etc Advertising is main thing for promotions include print and electronic both medias. Direct relation with customers and sales forces activities.

Boutique Business:
Clothing is a beautiful visual demonstration of the social and emotional needs of people wearing it. It also portrays in a clearly under stood vi sual m anner, what peopl e of di fferent cult ures and st yl es want social l y. Fashi on, t hrough t i m es, has gone t hrough so m any rapi d changes and bizarre extremes that it has examples of nearly every kind of clothing function. However, in a boutique business, the specifications and descriptions of the designs and clothes are so general that they can fit more than one costume, which actually are quite different in nature from each other and this is solely dependent on the taste of the people. The range of Pakistani dresses is remarkably wide, according to the v a s t c u l t u r e s , g e o g r a p h i c a l d i f f e r e n c e s , p u r c h a s i n g c a p a c i t i e s , influence of the western culture, and bewildering diversities of the ethnic groups. One has, therefore, to sift and isolate, and then relate and bring together, the ideas for creating various designs, which can fit in the context of the fashion in vogue and the culture in practice. In reference to Pakistan, the Boutique business is quite in vogue but h a s y e t t o b e f o r m a l i z e d . T h e m a r k e t o f t h i s e n t e r p r i s e i s q u i t e scattered and unorganized. There are a few major players in Boutique business and these entrepreneurs have also taken an initiative based on their caprice and experience in the field of fashion design. However, there is a massive potential in this field, if one has the ability to design and market his/her products through introducing innovative designs both in stitching as well as the fabric sector. Furthermore, there is massive export potential in this sector, as the demand of Pakistani dresses, especially in countries like UAE, USA, and UK, is massive due to a high number of Pakistani expatriates who have settled in these countries.

Proposed Capacity:
The Boutique business capacity is greatly dependent on the market size and the number of clients one can attract. Furt herm ore, the wom en fashi on wear garm ents will be desi gned t hrough a cont ract ed desi gner and then sti t ched through in -house stitching unit.
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On average, a designer can supply forty designs per m onth from whi ch nearl y t hi rt y desi gns are sel ect ed on average. Approxim at el y, t ot al capacit y of t he defined uni t wi th 5 sti t ching machines (basis on 8-10 hours shift) will be about 750 dresses. The breakup of total number of dresses is as follows, Number of designs in each size No of dresses in each design Total designs selected by designer Total number of dresses 15 50 10 500

This production and sales capacity is estimated to be economically vi abl e and j us ti fi e s the capi t al as wel l as opera ti onal cost s of the project.

Total Project Cost:

The Boutique shop needs a total investment of about Rs. 1.83 million. Thi s includes a capit a l investm ent of Rs.1 , 299,430 and a sum of Rs. 530, 680 as working capital.

MARKETING PLAN:
The marketing of boutique follows the conventional marketing pattern which is dependent on selection of venue of the outlets and the product mix (designs and sizes), as well as the promotional strategy. Furthermore, the boutique owner has to marketing techniques like: The use of print media: i.e. printing of posters and pamphlets as well as displaying it and distributing it at proper places. Advertisement: i.e. newspapers Usage of electronic media: i.e. advertisement on television Usage of e-commerce: i.e. launching of website and advertising on web. Word-of-Mouth: Let your friends and family do the raving for you and the word will get out and you will start gaining a business reputation for offering this that or the other thing. Cost: Free
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Wizard Collection Radio:

Boutique

Call the advertising department for an appointment. They show you what they offer. You get to hear your business name advertised on the radio or. You can make a choice or not. Cost: Yes Direct Mail : Send out a post card about your business to mailing list, friends and family and maybe former co-workers. Costs: Yes Membership cards Exhibitions in universities Fliers & Brochures: These can be easily done on your computer. If necessary you can download free software programs online. Costs: Yes Business Cards: Business cards identify your business. Hand one out every time you meet somebody new or speaking with somebody who has a similar business. It is a simple marketing strategy, Costs: Some Promote for Seasons & Holidays: Set up sales days for seasons, holidays. Be sensitive to faith and ethnic related holidays. Special Sales: Hold special sales on specific items during specific hours (down time hours) of your business. This will draw customers in search of these items.

Moreover, in order to keep abreast with the emerging trends and client tastes, surveys regarding customer satisfaction/needs should be a regular feature of this project. As this project of Boutique deals in designer women wear, therefore the product mix will comprise of different styles of the female dresses in different sizes. Whereas, the styles will be Shalwar Kameez, Qlots, Pajama Kameez, Frocks, Kurta, Peeshwaz, Party dresses, Casual Dresses and other prevalent dresses based on the market Trends. Note: This production also includes additional suits that will be prepared on orders/outsourcing/CMT (Cutting, Manufacturing and Trimming) per month in order to utilize the maximum capacity of the stitching unit.

RAW MATERIAL:
The raw-material required for such sort of projects, would be as follows: Fabric:

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The fabric, which is the basic raw material requirement for a boutique and a major component of the cost, can be obtained from wholesale markets or from markets specializing in designer cloth at Faisalabad, Karachi, and Lahore. Accessories: Accessori es such as buttons, l aces, zi ppers, elastics, threads, needles, embroidery threads, glasses, etc. will be procured from the local market at competitive rates. L ab el s, tags and p ack agin g: Labels, tags and packaging are also required.

PRODUCTION PROCESS FLOW:

The process for converting fabric in designer wear garments follows the below mentioned sequence: Design: The initial process starts from the designing phase . Various patterns of clothing and the fashions in vogue, which also relate to the tastes of the concerned clientele, are designed. This is done by the contracted designer as he/she will provide the b a s i c d e s i g n s o f w h i c h t h e f a b r i c w i l l b e c o n v e r t e d i n t o t h e designer wear garment. On average, a designer is supposed to provide 40 designs per month or 100-120 designs per season. i.e. three months. From these designs, approximately 50% of the designs are selected for further development of clothes.

Pattern Making/Cutting: Based on the designs selected and patterns for cutting are developed on patterns. Stitching: The cutting is then followed by stitching, which can either be done by the in-house stitching unit or by outsourcing it. Labels are also attached to the apparels in this process. Finishing: The final phase is that of finishing, in which the garment will be checked for quality control and will cleaned (if required) for final presentation at the outlet. The garments will also be tagged for identification of sizes, prices, addresses, handling instructions, etc. Presentation/Market: Once the designer wear garment is ready after going through the above-mentioned process, it is presented at the outlet/shop for sale to the clientele.

PRODUCTS:
Product Mix:
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Products will be priced at the high end to reflect the quality and exclusiveness associated with the brand. High-end materials such as Crinkle Chiffon, Georjot Chiffon, Chinese Raw Silk, Medium Silk, Leafy Print Jamawar, Chamose Silk etc will be used. This boutique will offer following product categories of wears: Casual wears Sami formal wears Formal wears Each product category will include the following product lines: Ethnic Wear Formal Wear Party dresses and special occasion dresses. Contemporary Wear Fusion Wear Combination of eastern and western wear. Casual wear Daily use dresses.

The combination of outfits for the proposed outlet will be as follows category % of total outfits Casual wear 35% Semi formal wear 35% Formal wear 30%

Product Mix: Average Sale Price:

Category Casual wear Semi formal wear Formal wear Avg. price per outfit 2,200 to 2,500 4,500 to 7,000 15,500 to 30,000

Costs of Goods Sold and other Expenses:

Cost of goods sold has been taken as a percentage of the sale price. The percentage of cost for each product category is as below:

Percentage of cost:

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Category Casual wear Sami formal wear Formal wear

Cost (percentage of cost) 35% 32% 30%

HUMAN RESOURCE REQUIREMENTS:

The project of Boutique requires the following Human Resources/Staff:

Staff and Salaries

Positions

required 1 5 1 1

Salary per month 15000 7000 4000 5000

Salary per anum 180000 420000 48000 60000 708,000 144000 42000 60000 60000 307000

Production staff Designer Tailor Press\iron man\finishing Dyer Total Administrative salaries Sales girl Office boy Guard Sweeper Total

2 1 1 2

6000 3500 5000 2500

MACHINERY/EQUIPMENT DETAILS: The boutique will require a small in-house stitching unit. The cost of the stitching machinery will be as follows:

Stitching machinery Single needle lock machine Over lock machine Embroidery Total
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No. 8 1 1

Rs/unit 19,900 56,800 29,900

Rs 159,200 56,800 29,900 245,900

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Note:
Prices have been quoted by SINGER sewing company, Pakistan. Though the prices here are given of the new machines but second hand machines are also widely available which can function properly and can reduce the project cost too.

Office Equipment Office equipments Computers Computer printer Telephones Software Total No. 1 1 2 1 Rs/Unit 25,000 12,000 3,500 30,000 Rs 25,000 12,000 7,000 30,000 74,000

PREMISES FOR SHOP AND STITCHING UNIT: Recommended Mode for Renting a Shop:
It is recommended that the proposed location for the said enterprise bee posh area, where people have the buying capacity for women fashion wear. The size of the shop should be at least 800 Sq.ft i.e. 20 feet frontend 40 feet depth. Furthermore, a small building will be required to establishing the stitching unit. One viable option is to rent a small house for this purpose. The shop will be obtained on rental basis, and the rent estimation for such a shop is Rs 56,000/month. According to the prevailing practice, 6months rent as advance and three months rent as security would be required for renting the shop. It is assumed that security is a one-time expenditure, whereas pre-paid rent will only be given at the beginning, while establishing the boutique. After first six months, rent will be paid on monthly basis.

Rent Cost Detail: Rs

Security for renting shop/outlet (Rent @ Rs.56,000per month. 3 months rent as security) Interior decoration (installing lighting, mannequins, hanging racks, mirrors, glass panes, cash counter, and other dcor, etc.) Security for renting a house for installing the stitching unit (Rent @ Rs15,000 per month) 168,000 437,884 45,000

Infrastructure Requirements: Description

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Main shop Try room Small store Kitchen Building for stitching unit

600 36 100 64 10 Marla house

PROJECT ECONOMICS: Project Cost: Description

Machinery and equipments Furniture and fixtures (Interior decoration) Office equipments Security deposited for premises Pre-operating expenses Salaries Promotional expenses Total capital cost Working capital Raw material (fabric and accessories) Prepaid rent (Boutique and stitching unit) Total working capital Project cost
Project Returns:

Cost (RS) 166,300 437,884 86,000 213,000 31,000 67,246 1,299,430 104,680 426,000 530,680 1,830,110

Internal rate of return (IRR) Payback period (years) Net present value Financing Plan
Financing Equity Debt 60% 40%

67% 1.50 3,684,374

Rs 1,098,066 732,044

KEY ASSUMPTIONS
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Production Assumptions
Number of stitching machines Production capacity (No. of dresses per month) Capacity utilization for the first year Self production (% of total production) Dresses manufactured on contract basis (% of total production) Operating Assumptions: Hours operational per day Days operational per month (Production) Days operational per month (Boutique) Cash flow Assumptions: Accounts payable cycle Accounts receivable cycle Financial Assumptions: 8 25 25 10 days Cash 5 750 55% 60% 40%

Project life Debt : Equity Debt tenure Expected interest rate

10 years 40:60 5 years 14%

KEY SUCCESS FACTORS:

There are a number of factors, which contribute towards the success of a project. In case of the project of Boutique, some of the Key Success Factors are as follows: Proper care while producing dresses should be adopted Proper Inventory management i.e. keeping minimum inventory as per past sales trends. The dress designs should be according to the emerging trends and fashions. Designing of dresses according to the consumer tastes/preferences gathered through consumer surveys. The location of the outlet should be properly selected and attractively decorated so as to target the clientele effectively.

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The customer satisfaction should be given due importance, because it is the customer satisfaction, which can increase the sales. Hence, excellent customer service should be provided.

Threats for the Business:

Competitive Structure of the market: The market of the boutiques is highly competitive; therefore if the entrepreneur is not well responsive to the tastes and response of the clientele as well as the fashions in vogue he/she may not be able to capitalize the opportunity properly. Do not partner with a competing store. Pilferage in the designs: The designs which a designer produces can be sold by the staff even before that design is launched and that can pose serious threat to the business because in the fashion industry it is the uniqueness of the design which matters. Selection of the wrong venue: Selection of the wrong venue can be a major hurdle in achieving the desired business objectives. Selection of the wrong design: If the designs are not selected according to the tastes of the clientele then it can be detrimental for the business, so the clientele taste should be properly tracked. Tax: Improper documentation of the sales receipt record may lead to problems with Tax department.

Future plan:
After one or two years we will launch another branch for men with name Wizard prince

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