1.

0 Executive Summary The Year 1 season will be a great one for women looking for distinctive outdoor clothing online. Liquid Culture will eliminate the middle man and offer creative outdoor clothing that is both functional and beautiful. The savings are passed on to our customers who will be paying a fraction of what they normally do for current retreated fashion in stores. Liquid Culture's Year 1 line consists of the best fabric, designs and styling on the market. Also Liquid Culture will not maintain any clothing inventory. Liquid Culture has contracted with Magic Clothing Company, located in Mumbai, Maharashtra, to produce and ship all Liquid Culture clothing. Our design team will work closely with the Magic's Indonesian-based manufacturing facilities. The Magic Clothing Company will maintain the inventory and will produce sufficient product to meet the planned demand.

1.1 Mission Liquid Culture's mission is to present consumers with designs, styling and clothes that energizes any outdoor activity. Whether it be snowboarding, running along the beach, or drifting down a river, Liquid Culture has comfortable, durable clothing that will look and feel wonderful. 1.2 Keys to Success Accessible website that is entertaining to surf. Like a trip to your favourite store where you always find something new that you want. Establishing a strong advertising campaign in a traditional media vehicle; i.e. magazines. Excellent vendor relationship that will facilitate quality manufacturing of Liquid Culture's clothing and quick shipment of orders. Acquiring an excellent design staff.

2.0 Company Summary Liquid Cultures office will be located at Bandra, Mumbai. It will offer creative women's outdoor clothing, online, that is both functional and beautiful. Cost-effective operations will be created to eliminate the cost of inventory by having a third-party, Magic Clothing Company, handle all manufacturing and shipping of clothing to the customer. Liquid Culture will process the order and collect the payment online. The order will then be sent to Magic Clothing Company to be filled and shipped. Liquid Culture will focus on clothing design and marketing of its products. 2.1 Start-up Summary Liquid Culture's start-up costs consist mostly of design and marketing apart from employee salary, office rent, other general expenses etc.

Table: Start-up

Start-up

Requirements Start-up Expenses Legal Stationery etc. Brochures Consultants Insurance Rent Leased Office Equipment Computer Equipment/Software Website Other Total Start-up Expenses Start-up Assets Cash Required Start-up Inventory Other Current Assets Long-term Assets Total Assets Total Requirements 200000 0 0 0 200000 402500 5000 2500 0 10000 0 10000 50000 100000 25000 0 202500

3.0 Products Liquid Culture will sell women's outdoor clothing online. We will offer outdoor clothing for almost every type of active use. We will focus on the seasonal clothing demands of our customers including the following: Fleece outerwear. Rain gear, waterproof breathable, as well as coated nylon. Synthetic clothing for outdoor activities. Hats. Shorts. Pants. Shirts.

4.0 Market Analysis Summary In the past 15 years, women's outdoor wear has grown into a billion dollar niche in the clothing industry. The popularity of the Internet has launched a number of online stores for women's outdoor wear but no company is exclusively selling their products online. There are a number of reasons for this but the strongest is that the concept is new and untested. Will customers buy something that they wear that can only be seen online? We believe they will, if the process is fun and the products are great and cheap. The key is marketing our target customers in the traditional advertising medium for fashion, i.e. women fitness magazines. The ads will focus on the eliminating the middle man in your clothing budget and stepping up to the distinctive style of Liquid Culture. The company logo will also be an important marketing tool in bringing customers to our website. 4.1 Market Segmentation Liquid Culture will be focusing on two distinct groups of women that purchase outdoor clothing: Women 17-25 years of age: Youth drives the market so this is the important group to attract to the website. They have less money than the older group so we must give them what they want for less. The key is to have inexpensive selections in each clothing group that have the popular cut. The company's logo attractiveness to this group cannot be stressed strongly enough. The initial small purchases will grow larger over time. Women 26-40 years of age: They are the core group that will drive Liquid Culture's success. This target group is responsible for the growth of outdoor women's wear. They will be harder to pull into the website. Once there, the key will be promoting the quality, attractiveness and savings. In addition, we will have to assure that the purchase will fit the way the customer wants it to. It will be crucial that the return policy is hassle-free and speedy.

Table: Market Analysis

Market Analysis Year 1 Potential Customers Women Ages 16-25 Women Ages 26-40 Other Total Growth 20% 15% 0% 6,000,000 5,000,000 0 11,000,000 7,200,000 5,750,000 0 12,950,000 8,640,000 6,612,500 0 15,252,500 10,368,000 7,604,375 0 17,972,375 12,441,600 8,745,031 0 21,186,631 Year 2 Year 3 Year 4 Year 5

Chart: Market Analysis

5.0 Strategy and Implementation Summary Liquid Culture will win market share in the women's outdoor clothing niche by aggressively pursuing visibility with its target customers. 5.1 Competitive Edge Liquid Culture's competitive edge is its focus on the process than on product. The website is just the endpoint of an entire marketing program to drive customers' interest in Liquid Culture. Though we have confidence in the quality and attractiveness of our products, we know that building the road to the website is our most important job. Liquid Culture's agreement with Magic Clothing Company is another strong competitive advantage. Our design team will work closely with the Magic's Indonesian-based manufacturing facilities. The Magic Clothing Company will maintain the inventory and will produce sufficient product to meet the planned demand. This will keep production costs low for products and put a cap on Liquid Culture's overhead. 5.2 Marketing Strategy Liquid Culture's marketing strategy is a simple one. In women's fitness magazines like Self, Shape and Strive, Liquid Culture will introduce customers to their products and website. We will also advertise in CosmoGirl and Ellegirl magazines. For the first two months, Liquid Culture will offer 10% off for all purchases under Rs. 5000 and 15% off all purchases over Rs. 10000. We will offer the same discount strategy three more times during the year when new seasonal clothing is introduced. 5.2.1 Pricing Strategy Liquid Culture's pricing strategy is to pass on most of the store mark-up to the consumer in reduced price for clothing. This advantage has no negative impact on our sales profit and will also absorb some of the initial cost of offering discounts during our first three months of operation. 5.3 Sales Strategy Liquid Culture will launch a Rs. 150000 ad campaign targeted at our core customer groups. The focus of the ads will be to "keep the money you give to the middleman" and use it to get outdoors and enjoy life. Liquid Culture's attractive logo will be heavily displayed in these ads. We estimate it will take most of the year to build our sales to the point where we begin to show a profit. Liquid Culture will offer discounts at various times of the year to even out seasonality and build initial awareness of the website.

5.3.1 Sales Forecast We expect sales to increase at a steady rate for the first year. It will begin slow as we open, but will quickly pick up as our customer base increases. Liquid Culture will see a sales increase of 38% between the first and second year. We feel that we can accomplish this steady goal and maintain this amount of sales.

6.0 Management Summary

Top Management will be handled by me and investors (if there).

6.1 Personnel Plan Besides Some main persons, Liquid Culture will have a staff of eight: Three member clothing design team. Web administrator. Two member marketing team. Office manager. Accountant.

Table: Personnel

Personnel Plan Year 1 Marketing/Website Director Design Director Designers Web Administrator Office Manager Marketing Staff Accountant 50000 40000 30000 20000 15000 20000 15000

Total Payroll

190000

7.0 Financial Plan The following is the financial plan for Liquid Culture. 7.1 Break-even Analysis Our break-even analysis is based on running costs, the costs we incur to keep the business running, not on theoretical fixed costs that would be relevant only if we were closing. Fixed costs include payroll, rent, utilities, and marketing costs. Table: Break-even Analysis

Break-even Analysis

Monthly Revenue Break-even Assumptions: Average Percent Variable Cost Estimated Monthly Fixed Cost

200000

58% 116000

Chart: Break-even Analysis

Break-even Analysis
60,000 40,000 20,000 0 (20,000) (40,000) (60,000)

0 30,000

60,000 90,000

120,000 180,000 240,000 300,000 150,000 210,000 270,000 330,000

8.0 Technology Requirement We need a good number of Personal Computers/laptops apart from a high speed Internet Connection. LAN will also be used so that all the computers can be connected to each other and through the internet. We need to purchase a domain name from godaddy.com and a theme for the website from maya shop apart from developing and maintaining the website. Use of social networking sites can boost our marketing activities.