REPORT

FOR

Entrepreneurship & Business Plan

Topic:- Accessories Retail store

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SUBMITTED TO: SUBMITTED BY:

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Mr. Hitesh Jhanji Tarun Tandon (A02)
Manoj Kumar Sharma (A04)
Devesh Kr Chauhan (A05)
Veenu Singhal (A62)
Jessica Verma (B53)

FNU

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 Y o u
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Fas h

Acknowledgement

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 The successful completion of any task would be incomplete without mentioning the people
who have made it possible. So it`s with the gratitude that I acknowledge the help, which crowned
my efforts with success.

Life is a process of accumulating and discharging debts, not all of those can be measured. We
cannot hope to discharge them with simple words of thanks but we can certainly acknowledge
them.

I owe my gratitude to Mr. Hitesh Jhanji, LIM for his constant guidance and support.

I would also like to thank the various department officials and staff who not only provided me
with required opportunity but also extended their valuable time and I have no words to express
my gratefulness to them.

Manoj Kumar Sharma

Tarun Tandon
Devesh Kr Chauhan
Veenu Singhal
Jessica Verma

EXECUTIVE SUMMARY

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Fashion N You (FNU) is a new accessory store that will provide high quality accessories in a
wide array of size and style with exceptional customer service. 400 sq.feet stores will be located
in a lovely mall in LPU Phagwara. Demographics are suitable and the market will be less
competitive and compatible for retail store and potential business.

Competition: The outlet in the Jalandhar and the Phagwara markets and viva collage will be
competition to our store. But there is no particular accessory store which specialized in
accessories and is providing quality merchandise with both branded and non branded products
and customer service.

Potential Market: Youth oriented market with more than 30.000 students and 1500+ staff
members of LPU.

Unique Selling Proposition: At FNU, we solve the fashion dilemma by offering a wide range of
styles that youth will not find elsewhere in Jalandhar city.

FNU’s highly trained personnel will get to know each customer individual needs and will offer
personal fitted products and other special services

USP: Highly trained personnel and up to date products as per trends

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 Table of Contents

Serial Particulars Page No.

No.
Acknowledgements 3
Executive summary 4
1. Introduction 7
1.1. Objectives 7
1.2. Mission 7
1.3. Key to Success 7
1.4. SWOT analysis 8
2 Marketing Plan 9
2.1. Marketing objective 9
2.2. Target market 10
2.3. Marketing mix 10
2.4. Sales strategy 13
3. Financial Plan 13
3.1. Initial cost analysis 14
3.2. Income statement 15
3.3. Working capital calculation 15
3.4. Break even analysis 16
4. Operational Plan 17
4.1. Store timing 17
4.2. People 17
4.3. Location 17
4.4. Product sourcing and Buying 18

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 4.5. Inventory management 19
4.6. Legal environment 19
5. HR Plan 19
5.1. Recruitment 19
5.2. Staff management 20
5.3. Role and Responsibilities of Partners 21

1. INTRODUCTION

FNU (Fashion N you) will be a Accessories Retail store which provide all types of branded and
non branded accessories for both male and female. The location of the store will be at LPU mall
and the area required will be 400 sq. feet. This section will deal with the objectives, mission, key
tasks and SWOT analysis of the business.

1.1. Objectives

1. To create a shopping environment where men and women feel comfortable, pampered and
stimulated by the wide array of choice that available to fill their needs.
2. To utilize superior customer services to create positive word of mouth, recommendations and
repeat sales.
- To give every customer one to one attention.
- To have 50% of all customers return within 6 months of their first purchase.

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3. To make FNU the number 1 destination for all accessory purchase by the end of year one.
4. To have first year gross sales of Rs 12 lakh
5. To grow the business by 15% in year 2.

1.2. Mission

To become Premier Accessory Store. This will be accomplished by offering fair prices, the best
selection and a knowledgeable staff to assist customer in any way.FNU will strive to exceed all
of their customers’ expectations.

1.3. Key To Success

1. Offer superior quality products with latest trends that are not available in other outlets in the
Jalandhar city market.
2. Understand FNU target customer to ensure that the correct product mix is available to meet
their needs.
3. Offer superior, personalized customer service to create favorable word-of-mouth
recommendations and influence a high rate of repeat business.
4. Continuously monitor inventory levels, and make adjustments as needed.
5. Educate and advise customers on proper fitting and the quality/value relationship of some of
the higher priced brands.
6. Offer a variety of price points so that customers do not feel intimidated by the higher priced
offerings.
7. Changing in store and window displays frequently to increase in pulse purchases, creating the
belief that there is always something new at FNU.

1.4. SWOT ANALYSIS

Strengths

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 • Popular Brand
• Quality and selection of Products.
• Location.
• Differentiation.
• Commitment of owner.
• Excellent customer service.

Weakness

• High Cost Products.

• Owner’s inexperience as fashion accessory retailers.
• Target audience with limited exposure to many high end, quality brands.

Opportunity

• Youth Oriented Market.

• Huge Potential Market.
• Attractive retail environment.
• Educate LPU customers on quality international brands.
• Establish relationship with complementary retailers to share customers.
• Increase customer interest in intimate products.

Threats

• Viva Collage and Other outlets of Jalandhar and Phagwara.

• Miscalculating customer needs and tastes, resulting in too many mark downs.

2. Marketing Plan

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The Marketing Plan section explains how we're going to get our customers to buy our products
and/or services.

2.1. Marketing Objective

Generate awareness through various marketing communications tactics to generate customer trial
visits in support of the business goals and objectives.

Marketing Plan includes:

 Market Potential.
 Products.
 Buyers.
 Pricing strategy.
 Promotion and Distribution ideas.

2.2. Target Market

• Students and Faculty Members of the Lovely Campus.

• Potential market- 30,000 students and 1500+ staff members of the LPU.

2.3. Marketing mix of FNU

A. Product

• Fashion Accessories.( Branded & Non Branded)

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• Sun Glasses.

• Belts.

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• Wallets

.
• Caps

B. Price

The pricing strategies used by FNU will be

• Value Pricing for Branded products and Penetration or low pricing for non Branded
Products.
• For first 06- 12 months focus will be on generating awareness and building brand.
• Special student discounts and companies special offers will be provided.
• Payment options like cards, EFT etc.

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C. Place

• LPU mall in LPU will be the location of FNU store.

• Our merchandise will be purchased from the top manufacturers in the world, through
their regional representatives or direct from the manufacturer.
• We will carefully monitory what sells and what doesn’t, listen to customer feedback.
• Keep a careful eye on ever changing fashion trends to optimize future orders.

D. Promotion

The main purpose of our promotion will be to create awareness, brand building and to make
customer visit our store for this purpose we will be using the following
• Print Media – Pamphlets, Billboards.
• Online advertisements (emails and sms) and web site.
• Ums announcements.
• We will also rely on positive word of mouth by our customers.

2.4. Sales Strategy

1. Offer personalized customer service by well trained, well compensated and appreciated
employs. Develop customer relationship and loyalty that creates a desire for return visits.
2. Utilize the quick books POS system to record customers contact and purchase
information enabling us to follow up with direct mail and a phone call to communicate
special events and the arrival of new products of interest.
3. Offering a few hours Exchange policy to give customer an option to return undesired
selection without losing revenue from the sales.

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 4. Network with other complementary stores to promote our store sales.
5. Employees will receive added incentives to help, meet/exceed customer services and
sales goal.

3. Financial Plan

A financial plan can be a budget, a plan for spending and saving future income. This plan
allocates future income to various types of expenses, such as rent or utilities, and also reserves
some income for short-term and long-term savings. A financial plan can also be an investment
plan, which allocates savings to various assets or projects expected to produce future income,
such as a new business or product line, shares in an existing business, or real estate.

Assumptions

• Sales growth is expected to be aggressive with projections of sales increases of 15% in

year two and 17% in year three. 
• Profits will be reinvested to reduce debt, expand product lines and increase personnel, as
needed. 
• FNU is a retail store, and will not be selling on credit.  FNU will accept cash, checks and
all major credit cards. 
• Marketing and advertising will be no greater than 5% of sales.
• Initial capital- Each member will put 3lacs amounting to 15lacs.
3.1. Initial Cost Analysis:

Item Cost Total Amout

Interior 1.8lacs

Merchandise 6lacs

Computer, internet connection, printer. 0.5lacs

Furniture, stationary etc. 1.2lacs

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 Registration (PAN, TAN, VAT etc) 0.2lacs

Advertisement budget 1.4lacs

1. Events
2. Sponsorships
3. Advertisement.
4. Printing

Miscellaneous expenses(cash in hand & at bank) 1.116lac

Total 12.216lac

Yearly expenses

Rent 15,000/month

Salary 5,000

Internet connection 700

Office boy 2,500

Total 23,200*12 2,78,400

Grand total 15,00,000

3.2. INCOME STATEMENT (FOR THE YEAR ENDING 2011-12)

(Forecasted)

Particulars Amount
Total Revenue 12,00,000
Direct cost of sales 6,00,000
Gross margin 6,00,000
Expenses
Written off (Reg. fees-20,000 + 80,000) 20,000
Payrolls 90,000
Marketing and Advertising 60,000

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 Rent (shop +phone +internet +electricity ) 2,00,000
Insurance 10,000
Web Design 10,000
Deprecation 50,000
Total operating expenses 4,40,000
Profit before tax 1,60,000
Tax @30% 48,000
Net profit 1,12,000

3.3. Working Capital Calculation

Working Capital = current assets - current liability

Current assets = cash + inventory
C.A. = 1,11,600 + 6,00,000 = 7,11,600
Current liability = short term debt + accounts payable + accrued liabilities
C.L. = 6,00,000
W.C. = 7,11,600- 6,00,000 =1,11,600

3.4. Break Even Analysis

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Calculation of breakeven point

Revenue = 12,00,000
Variable cost = 6,80,000
Fixed cost = 3,60,000
Av. Units = revenue /av. Price
Av. Units = 12,00,000/500= 2,400 units
Breakeven point = F.C./(Rev/u-V.C./u)
BEP= 3,60,000/(500-284)=1667
So, it will take 9 months to reach BEP

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 4. Operational Plan

FNU is a fashion influenced accessory store offering quality merchandise and personaliz
services. It is scheduled to open this august in a 400 sq. feet in the LPU shopping centre in LPU
Phagwara.

4.1. Store Timing

We plan to follow schedule similar to other retailers in the shopping centre. Additionally we will
be sensitive to holiday hours in special group opportunities to maximize over exposure in sales
potential.
• Functional from 9:00 Am to 7:00 Pm
• Timings will be flexible during peak season
• Staff timings-9:00-6:00
• Security system will be working 24x7

4.2. People

Our store will be managed by experienced and qualified staff and by the partners. Each partner
will be taking care of work and responsibility assigned to them.
Staff requirements:
• Sales person
• Office boy

4.3. Location

Location is a critical element to any retail business. The right location is paramount to the
success of accessory store since a large share of sales will likely be derived from impulse
purchases and influenced by neighboring store traffic. While it should be possible and is
definitely desirable to build FNU into a destination location for accessory purchases. Location

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with high foot traffic will contribute to strong awareness and impulse purchases. LPU mall was
chosen keeping following criteria in the mind.
1. Desirable demographic composition.
2. Strong foot traffic.
3. Complementary retailers.
4. Successful retail reputation.
5. Relatively easy access.

4.4. Product Sourcing & Buying

1. Our merchandise will be purchased from the top manufacturers in the world, through their
regional representatives or direct from the manufacturer. 

2. Seasonal designs will be ordered several months in advance.

3. We will carefully monitor what sells and what doesn't, listen to customer feedback, and keep
careful eye on ever-changing fashion trends to optimize future orders.

Suppliers Address

 Mr Davinder Singh Kalra,Mr Gurinder Singh Kalra

+(91)-(181)-2220538, 2220537+(91)-9814133103, 9855337936, 9815937335
Nr Ambedkar Chowk, Nr Nakodar Bus Stop, Nakodar Rd, Jalandhar City, Jalandhar – 144001

 Dev collections
Shop no. 3, Dugri road opp. Marry land, model town, Ludhiana-141001

 Jain and Company

SCO 12 , Sector 30-D Chandigarh 160030
01722654817.

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4.5. Inventory Management

• We will use the QuickBooks Pro Point of Sale system for cash register, inventory, and
customer information tracking. 
• The software was developed for a retail environment and has the capacity to handle up to
40,000 SKU (stock keeping unit).
• Basic designs that are kept in-stock by suppliers will be re-ordered on a continual basis,
as needed.
• We believe that QuickBooks should meet our initial inventory management needs;
however we will be continuously monitoring this system and how it serves our needs to
determine if an upgrade will be necessary in the future.

4.6. Legal Environment

• Registration of store will be done

• Permanent account number to be acquired
• It is also necessary to have Tax Account Number
• Our store will also be registered under Value Added Tax.

5.HR Plan

5.1. Recruitment

 Minimum requirements for:

Sales person ( Graduation , experienced)-1
Office boy Peons (Literate, experienced )-1

New recruitments will be done on the basis of performance of the store and as per requirement.

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  Compensation:
Pay will be same as mentioned in financial Plan, Bonuses will be performance based and medical
facility will also be provided. Increment will be according to the market and stores performance.

 Responsibilities of an Employer

• Minimum wage
• Equal pay with members of the opposite sex doing similar work of similar value
• Pay statement
• Safe and healthy working environment
• Maternity leave for female employees
• Access their own personnel records, whether these are on paper or computerised

5.2. Staff Management

• Induction: given a clear understanding of the structure of the provision and how it
operates.
• Appraisal: recognise the good work of employees and ensure that they feel valued.
• Disciplinary and Grievance: all new employees should be given a copy of the
disciplinary and grievance.

 Hierarchy

• Top level
Partners - 5
• Middle level
Sales Person
• Lower level
Office boy
Security Personnel

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5.3. Roles & Responsibilities of Partners

a. Common

 The Business partners would mutually set store for the business and would be taking care
of the hardware and furnishings for the shop.
 Contacting and transacting with the dealers of the products.
 Contract for lease agreement and terms would be agreed upon.
 Insurance documentation would be done.
 If needed banks or financial institutions would be contacted.

b. Individual

 1st partner will be responsible for all aspects of managing and operating the company.
Recruitment and employee relation will be his duties.
 2nd Partner would be managing the logistics, supply chain, other outdoor tasks and
dealing and negotiating with dealers etc.
 3rd partner would take care of all the financial transactions like taking payment, billing,
paying to dealers, and other activities like insurance and banking transactions.
 4th Partner would be serving the customers, taking orders online as well as by telephone
and also Inventory management at the shop.
 5th Business partner would manage the customer care, public relations, advertisements,
promotions etc.

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