BUSSINESS PLANNING

Theme:

“GRON”
THRIFT CLOTH COMPANY

COMPILED BY:
( GROUP 3 )

1. M. FAHRAYZA RIDZY KUSUMA

2. MUHAMMAD FARHAN AZHARY

3. FILLBERTO MAIYANI

4. CINDY ANGELA

BUSSINESS PLANNING COURSE

FACULTY OF ECONOMICS & BUSINESS

SYIAH KUALA UNIVERSITY

2021

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 FOREWORD

Thank God Almighty for his blessing we were able to complete the business plan task
given by Dr. Dr. juanda S.E.,M.M as a lecturer in our business plan courses. Business Plan
is one of the measuring factors for students in fulfilling business plan courses, where from
the business plan made can be a bridge for someone to start a business.

I realized that this paper was far from perfect, both from writing techniques and
material given the capabilities we had. Therefore criticism and advice from all parties of a
constructive nature I always hope for the perfection of this paper.

Previously, I apologize if there were any words that were not pleasing. Hopefully with
the preparation of this paper provides benefits for readers so that they can increase
knowledge and self-understanding. Finally, I would like to thank all those who participated in
the preparation of this paper. May Allah bless all our efforts. Aamiin.

Aceh , 28 November 2021

Fahrayza Ridzky & Partners

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Abstract

One's interest in lifestyle is also inseparable from the growing fashion trend. Fashion is a
style of dress and make-up that is popular and following the times. Fashion are objects and
attributes that are used by humans to identify a person in particular and his social group as
a unit of himself or a statement of one's self-image and personality. People in general have
different purchasing power - different from one another in terms of fulfilling the fashion
attributes they need. Indeed, everyone's needs are different from one another. Thrift Store
is one of the choices that many people choose. The market segmentation they market so
that the quality of the goods they offer is not inferior to new goods in general. Used clothing
today is not only a commodity that is underestimated, but has its own value for the
audience.

Executive Summary

“GRON” is a clothing company that reconstructs the old clothes to be something unique, full of
art values and worth wearing. “GRON” is not simply just a usual product. It also care about
environmental sustainability since the other purpose of the brand is to reused or reconstruct the
clothing waste that was produced by the factory and fast fashion industry. We are also going to
campaign about this issue with our customers. The other purpose of this company is to provide the
unique-limited-hand made and full of art values to the customers we also trying to reach our target in
order to gain more profit.

The changing of trends and lifestyles especially among the youth, where they have a big
concern in environmental issue and also climate change but in other hand they still want to look unique,
different, and cool at the same time, by looking at this situation, “GRON” are there to provide these
needs.

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Description of venture/business

Company’s Mission

• Providing good quality products that come from the factory fashion waste and fast fashion
industry.
• Giving the best that the company can do in order to reach environmental sustainability in order
to make no more problems with fashion waste that can harm nature.
• Always doing product innovation that based on different aesthetic and styles.
• Creating a super rare and limited type of fashion in order to make it collectible.
• Increasing the human resource ability, and technological aspect of the company.
• Increasing prosperity for all employees, and maximized the company profit.

➢ Product
“GRON” Products are the rework or reconstruction of old clothes to be something new that
have a bigger values than before. Today we believe that it is essential to consume in a way that
preserves the planet. Our collections are 100% recycled and hand-made, from the purchase of
the initial garment, assembly, coloring, to the finish product. So it’s very sustained for the
environment. Not only that, our products are also very limited and rare so that it’s not just a
usual product, people will see it as an artwork and can be collectible.

➢ Location and Size of Business

Since, we are going to promote and do everything online, so we don’t need to have a specific
location to market our products. Because we are market it through the online way, it has a
possibility for us to reach a wider customers from around the world. In terms of production, we
are doing everything at home in order to make it more efficient.

➢ Personnel and Office Equipment Needed

In terms of personnel, since we produce the limited products, so we don’t need too much
personnel to involve in the production process. We can do everything on our own except the
sewing process because we don’t have any basic in sewing so for this process we are
collaborating with local tailors to this process. In terms of equipment that we need, we have a
mini sewing machine in order to do a small and simple sewing process. We also have complete
fabric painting equipment.

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 ➢ Background of the Entrepreneur
Since some of the personnel have background in painting, drawing, making art, and also have
a big network with the art world, we are sure that we can develop our business better and we
also sure that we will running out of innovation because our personnel have big creativity
potential.

PRODUCTS

This is some of product that “GRON” offered

Business Analysis

Used goods can be found anywhere, during the buying cycle. In developed countries where the cycle
of buying is spinning fast can produce a lot of used goods. These used goods are then exported to
developing and underdeveloped countries. The used goods referred to here are unused goods and can
still be used. Gregson and Beale (2004) stated that these used goods can be in the form of donated
clothes, clothes that are stretched, worn, outdated, or no longer needed. In the last few decades,
imported used clothes have been widely sold. The rise of the used clothing business is caused by the
small amount of capital needed and the fast returns. This is as stated in www.kompas.com, the profits
in the used clothing business are countless, the average income reaches one million per day or twenty
to thirty million per month. Considering that Indonesia, which is still a developing country, is a suitable
market for used clothes, according to what was reported on www.kompas.com that many people like
foreign clothes and clothes at low prices. The countries of origin of these used clothes vary, from Japan
to Japan. Korea (www.kompas.com). Used clothes from Korea to Japan have the advantage that they
are still almost the same size as Indonesians. Style in fashion is also a factor in the selection of clothes

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to be sold. Japan and Korea are two countries whose culture has entered Indonesia. Culture in
Japanese (Harajuku) and Korean (Hwalyu) fashion is a style that is currently popular in Indonesia,
especially in recent decades.

According to Porter (1980) industrial environmental analysis can be done with the Porter Five Forces
Model. This model has five factors that must be analyzed to see the industry environment of a particular
business. The five factors in the Porter Five Forces Model are rivalry among existing competitors,
bargaining power of buyers, bargaining power of suppliers, threat of new entrants, and threat of
substitute products or services. To see the results of the analysis of the cheese industry in Indonesia,
a per-factor analysis will be carried out in the Porter Five Forces Model.

1. Rivalry among existing competitors

Rivalry among existing competitors can be seen through several criteria including industry
concentration, industry growth, and switching costs. For the industry concentration in the thrift remake
industry at this time is not too high, because there are only a few companies that dominate the thrift
remake market in Indonesia. For some variants such as the original thrift shirt without the remake,
there will be stiff competition, this is because the big companies are concentrating on that product.
Industry growth in the thrift industry is quite high, this is what causes competition between thrift
companies to increase due to the greater market expansion.

2. Bargaining power of buyers

Buyer volume in the thrift industry is quite large, this causes consumers to have high bargaining power.

3. Bargaining power of suppliers

The supplier concentration in the thrift industry has a relative level, where the number of thrift suppliers
is quite low in Banda Aceh, but for other raw materials, the number of suppliers is limited. This will
make it easier for new players to enter this business to be able to have bargaining power against
suppliers. Overall, the bargaining power of companies in this industry is low.

4. Threat of new entrants

Threat of new entrants can be seen through several criteria, including capital requirements,
government barriers and learning curves. Capital requirements in this industry are relative because the
capital required is quite large for large-scale companies but for small-scale companies it will require
small capital. Learning curves In the thrift industry, this is relatively easy, because it only takes simple
training and perseverance in making it. It can be concluded that this factor has a negative impact on
this industry, because the threat of new competitors that can enter is relatively high.

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5. Threat of substitute products or services

Threat of substitute products or services can be seen through several criteria, including price elasticity
and substitute products from other industries. Price elasticity has an important role, because a change
in the price of a lower substitute product will cause consumers to switch to substitute products.
However, in this industry only original thrift companies are the most feared in the substitute field.

Marketing Plan

McCarthy (1996) in Kotler et al. (2009) classified the tools for planning activities and marketing
programs that are fully integrated into 4 major groups referred to as the 4 P's of marketing, namely
product, price, place, promotion.

❖ Product
The type of product that ‘GRON’ offer is the rework or the reconstruction of old fashion supply
or even fashion waste from fabric and fast-fashion industries. The picture below is the font
logo that used by ‘GRON’.

❖ Price
In determining price, we used the markup pricing method in setting prices is to get product
quality leadership, namely by favoring several aspects of the product and other competitive
advantages so that it can provide added value for consumers. The method used by “GRON” in
pricing is to use mark-up pricing. The set profit margin is 25%. Pricing should also be taking
into account other factors such as risk and company policies. Here are the calculations of it:

Selling Price = 120.000 + (120.000 x 25%)

= 120.000 + 30.000
= Rp150.000
❖ Place
Since the owner’s place is in Banda Aceh, so we‘re also focusing to market our products around
Banda Aceh. Not only that, because we’re using the online marketing process, so we also reach
the global market all over the world through social media. For the shipping around Banda Aceh,

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 it will be done by the company itself. But when there are orders from outside out Banda Aceh
we are also partnering with the shipping agency such as J&T, and Ninja Express.

❖ Promotion
In this section, we will describe the marketing strategy that will be used by “GRON” to achieve
the stated goals prearranged. “GRON” will use several ways as a means of promotion,
including:

a. Advertising
“GRON” will do promotions with online brochures. Online Brochure will be distributed
during the promotion via group chat and discord server, this tool used to reach existing
consumers. The purpose of the Group chat is to introduce the "GRON" product to
consumers. In addition, promotions are also carried out through the website. The website
will contain current promotions, product details and company information. Consumers can
also place orders directly through the website.

b. Social Media Marketing

This method is done by take advantage of social media that is currently developing.
The social media used are Instagram, Facebook and Twitter. The purpose of the use of
social media is to increase brand awareness in among consumers. We will also take
advantage of all features that provided by those platform to sell our products such as
Facebook Marketplace, Instagram Ads, Google Ads, and etc.

PRODUCTION PLAN

• Collecting the raw materials from garment industry, thrift shop, or old clothes from personal
collection.

• Brainstorming to generate idea on how to design and execute the products.

• Executing the products, whether to cut it or sew it.

• After sewing process done, then the products will be painted or bleached.

• Once the production process is done, then comes the packaging process.

• We also give some other merchandise inside the packaging, such as sticker packs, greeting
cards, and certificate of the authenticity

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SWOT ANALYSIS
SWOT Matrix is a tool used to develop alternative strategies from four parts, namely SO
(strengths-opportunities), WO (weaknesses-opportunities), ST (strengths-threats), and WT
(weaknesses-threats). SO strategy utilizes the strengths they have to take advantage of
existing opportunities.

a. STRENGTH
In Banda Aceh no one has made a remake of thrift clothes like us. Of course, with a unique and
limited design too. With the thrift, making it environmentally friendly because it recycles clothes
that you don't want to use anymore, but of course with number one quality. Of course, for art
lovers, because behind our custom, there is a very beautiful art to enjoy.

b. WEAKNESSES
This business is still difficult to do because it is still very new. Of course, the market is not very
broad. And we also haven't found the right tailor to sew our custom. Production prices also
tend to be expensive, because we remake goods with high quality of course using materials
from abroad.

c. OPPORTUNITIES
Of course, in Banda Aceh there are still very few suppliers who remake thrift clothes like us, so
there is still very little competition, with more creativity and innovation, our business will be
more successful.

d. THREATS
The greatest form of threat comes from competition. Of course, with other thrift shops that
make thrift clothes without being customized

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OPERATIONAL PLAN

The location that will be used "GRON" is in banda aceh, NANGGROE ACEH DARUSSALAM. This
location was chosen because the owner already has a location in aceh area that can be used as a
production site for THRIFT "GRON". The selection of BANDA ACEH city is also based on the target
consumers to be achieved, namely students, employees, and models with medium and large scale in
the city of BANDA ACEH.

This business is still done online. By doing it online, it is easier for customers to make purchases, wider
market reach, flexible manufacturing times, fewer employees needed than offline stores and less
capital needed. This business is done via the web or social media that many people use today to carry
out the buying and selling process. Payments are also made online.

Organizational Planning and Human Resources

In overcoming increasingly fierce competition in the future, a management team consisting of:

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1. Muhammad Farhan Azhary (CEO)
CEO has main tasks including making major decisions related to the company, managing all
operations and resources of the company, and acting as a major role in managing
communication between the board of directors, company operations, as well as being the
face of the company.

2. FILLBERTO (MARKETING MANAGER)

He has the task to play an important role and task in promoting the business and
organizational mission Marketinfunction duties as the face of your company, coordinating and
producing all the materials that represent the business.

3. M. FAHRAYZA RIDZKY KUSUMA (PRODUCTION MANAGER)

o Planning and organizing production schedules.

o Assess project and resource requirements.
o Estimating, negotiating and agreeing budgets and timescales with clients and managers.
o Determine quality control standards.
o Supervise the production process.

4. CINDY ANGELA ( OPERATIONAL MANAGER )

it is obliged to supervise and manage operational processes. Starting from the process of
converting raw material resources, energy, and labor into forms of goods and services. Or in
other words must be able to manage the process of converting inputs into outputs.

FINANCIAL PLAN

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