EBP- DATA

1. Executive summary –
New Look is a recent start-up manufacturer of an upscale clothing line targeted at men and
women. New Look not only develops the clothing line, but supports it with advertising and
promotion campaigns. The company plans to strengthen its partnership with retailers by
developing brand awareness. New Look intends to market its line as an alternative to existing
clothing lines, and differentiate itself by marketing strategies, exclusiveness, and high brand
awareness.
In the past, consumers purchased clothing for the upcoming season when retail stores decided it was best
to carry the merchandise, usually months in advance. Times are changing, however, consumers are
buying clothing closer to or during the season. At the moment, new look will be using domestic plants to
fulfill small orders for fresh products. Although indications now are that most merchandise will continue
to be sources offshore, some seasonal/special items may need to be produced domestically. If such
demand increases, there may be some benefit to the rapidly shrinking domestic production industry.
The key message associated with the New Look line is classy, upscale, versatile, and expensive
clothing. The company's promotional plan is diverse and includes a range of marketing
communications. In the future, the company hopes to develop lines of accessories for men,
women, and children. These accessories will include cologne/perfume, jewelry, eyewear,
watches, etc.

2. Business overview –

Mission- The mission of the company is to provide a new look for consumers, based on style and
quality.
Location- New Look was founded with principal offices located in some in city complex pune,
from administration to marketing strategies, take place at this leased office location of
approximately 500 square feet.
Strategy- The New Look strategy is to aggressively develop and market a full range collection to
consumers. The company intends to market its line as an alternative to existing clothing lines and
differentiate itself through its marketing strategies, exclusiveness, and brand awareness. New
Look intends to build on its core portfolio of products and overcome any obstacles by using the
company's expertise in the clothing industry.
The company's goal in the next year is to make an overwhelming impact on the fashion industry
and create a large consumer demand for the product. The company's goal in the next 2-5 years is
to venture into and children's clothing. It plans to also license a line of cologne and perfume,
bedding, underwear, small leather goods, jewelry, and eyewear. According to Standard & Poor's
(S&P's).
Strategic Relationships- The Company will behaving strategic alliances with Music Records and
the Entertainment Group. These alliances are valuable to New Look because they provide the
needed exposure for its line and the association of its products with celebrities. Celebrities are
valuable assets because they receive free clothing for interviews, concerts, and music video.

Products-New Look products will be priced at the high end to reflect the quality and
exclusiveness associated with the brand. The company will use high-end materials such as
cashmere, a wool blend, and high gauge denim. When a mark-up is placed on New Look
products, customers are willing to pay the premium because of the perceived value and quality
guarantee that comes with all products. The New Look line is targeted at men and women.
Management- In the case of multi-brands, there is the figure of the key account manager who
manages big clients, department stores or strategic stores. Under his area of influence is the
wholesale director, who is directly responsible for managing the points of sale, and the
showroom manager, who is in charge of managing the supply for those stores.

Finally, the marketing director is responsible for managing the company’s communication
strategy with the purpose of sales and also in regards to the media and public relations.

3. Market analysis –

Market Description- Clothing sales are driven by economic conditions, demographic trends, and
pricing. Fashion, while important for an individual company, plays a limited role in overall
market demand. Sales of clothing at the retail level rose approximately 4.7% in 2021, according
a market research firm In 2021, Indians purchased approximately $215 billion of clothing and
footwear. The clothing and footwear industries are highly competitive, and both have attempted
to lower manufacturing costs.

The market industry- The Indian clothing market can be divided into two tiers: national brands
and other clothing. National brands are produced by approximately 20 sizable companies and
currently account for some 30% of all Indian wholesale clothing sales. The second tier,
accounting for 70% of all clothing distributed, comprises small brands and store (or private-
label) goods.
Clothing is sold at a variety of retail outlets, discount stores, off-price retailers, and factory
outlets accounted for 30% clothing sales, while specialty stores and department stores accounted
for 22% and 18%, respectively. Another 17% were sold at major chains, and direct mail/catalogs
accounted for 6%. The remaining 7% of clothing sales occurred through other means of
distribution.
Market Segmentation
The company plans to target men and women with a combined household income of more than
40,000. Within this group, there are no color barriers, and customers have diverse backgrounds.
The New Look customer is a versatile man who can fit into any environment and is willing to
pay a good price for quality clothing.
The company's target group is seen as having enough disposable income to spend on quality
clothing.  From 2010 to 2020, for example, disposable personal income grew at a healthy
average annual of 7.0%. Clothing and footwear expenditures increased at a strong .2% annual
rate during the same period. In the 2010, however, growth in personal income slowed somewhat
and so did clothing expenditures2000 to 2010, disposable personal income rose at an average
annual rate of 4.7%, while clothing and footwear expenditures grew 4.5% per year.
, in the men's clothing segment, much of the growth in spending is being driven by consumers
with annual household incomes of more than 60,000. Spending in this segment increased by
approximately 13% in 2020. Clothing purchases by men from households with incomes between
40,000 and 59,999 grew by 7% in 2020. Men's clothing sales at department stores and off-price
retailers grew at double-digit rates in 2020
As growth slows in the mature Indian clothing and footwear markets, companies are increasingly
looking overseas for growth opportunities. Many expanding economies overseas are interested in
buying Indian products. International business has therefore become a focus of some Indian
companies.
4. The competition-
Your clothing company has many competitors. That’s unavoidable. It’s the nature of the
business. You may have direct competitors (targeting the same audience with a similar product)
and/or indirect competitors (targeting the same audience but with a different product).

H&M

H&M is known for providing the latest in fashion at an affordable price globally. Founded in
Stockholm, Sweden in 1947, H&M continues to dominate the affordable fashion industry in
global markets. As of November 2019, H&M operates in 74 countries with over 5,000 stores.
H&M’s suppliers are able to source the material at competitive costs allowing them to offer their
clothing for a fraction of other retail outlets. While H&M dominates in price and fashion, they
tend to suffer and receive criticism for the quality of the fabric and stitching. With their strengths
in technology, personnel, and global sourcing, H&M is able to revamp their inventory bi-
monthly and offer the sophisticated technology component of an app and website for marketing.

Zara

A vital part of market research is listening to consumers and paying attention to what they can’t
find. This applies both during the early stages of building your brand and when you run an active
presence.

For example, the fashion brand Zara is renowned for its direct approach to research.

One famous case involves multiple customers in Tokyo, Toronto, San Francisco, and Frankfurt
entering Zara stores to purchase a pink scarf, only to find none available. At the same time, many
other customers started to experience the same issue around the world.

It’s not that these branches had sold out: Zara didn’t have any in its collection. But more than
2,000 stores received stock of pink scarves, and 500,000 units sold out within three days. 

Similarly, Zara trains its in-store managers and sales assistants to be aware of customer shopping
habits. Workers are encouraged to research behaviors and trends right in their stores. They do
this by listening to customers’ comments on clothing options, suggestions for improving
products, and studying what shoppers are wearing to inspire Zara’s new products.

Competitive Advantage
New look Clothing will be able to offer the following advantages over their competition:
  New look will pride itself in using high quality material at affordable prices. They have
been able to negotiate with indian based suppliers that are able to manufacture their
design concepts at an affordable price.
 We offer several technology advantages, such as a customer profile assessment kept in a
database so that their loyal customers will be notified the minute one of their favorite
items is available in their size. We believe that by offering this level of customer service,
they will be able to retain and recruit a steady customer base.
 Unique and modern designs crafted from the minds of new look clothing. Most apparel
sold in the store will have the unique features as it is from the notebook of new look
clothing They will carry very few items that can be purchased from other warehouses. By
offering fresh and unique designs that are on the cutting edge of trendy, young people
will be flocking to obtain a piece of clothing that can’t be found on 1,000’s of other
people around the country

5. Sales and marketing plan-

Sales and Events - Special events are opportunities to attract more traffic. Consumers are always
interested in something new and different. Events will be promoted by regular mailings, emails to
existing customers and ads in local newspapers and magazines. Coupons will be used occasionally, but
not so often that they cheapen the image.

Products and Pricing Strategy -The clothes will be different from those of the competition.
Looking at the products of our competitors and their pricing strategies. We will have a unique
clothing style that stands out from the crowd and that brands our store as the place to go to for its
particular designs.

Advertising and Website- The brands advertising will highlight the uniqueness of the store's
merchandise. Our company will have a consistent design for its logo and color scheme. This theme will
be consistently used on mailings, signage and other marketing materials.
We will have website. Every business needs to have a website. This has become the norm for potential
customers obtaining information on a business. Having a website is an excellent way to present a
unique image for your boutique. It's useful as a product showcase and to demonstrate how they differ
from the competition.
Social Media- our company will hire social media managers will manage their social media business
accounts themselves. They will be creating inviting posts and will post their merchandise regularly.
Brand Ambassadors - company will partner with young people who have a social media following of
more than 1,00000. As brand ambassadors, company will provide these young people a few items of
merchandise to wear. They’ll then post themselves wearing these items and tag the Clothing company
account so that they gain exposure through all of their followers.
Location- companies retail store will be located in an upscale and trendy locations, that garners a lot of
retail traffic. The areas which are known as a popular hangout and shopping destination for consumers of
all ages. The stores will be positioned between other popular retail shops and the trendiest restaurants.

Exemplary Customer Service- Sales staff in retail store should be knowledgeable about the
products in the store and understand how each piece of clothing is unique. Each item can have
a story about its quality, construction, type of material and where it came from. Our Sales
people in a retail store are more customer-friendly.
Small Street campaign- Set Campaign Budget, our budget is 2% of gross
Identify Target Audience according to type of cloths and decide area
Choose Channels like pamphlets and what to communicate..
Launch and Monitor, Analyse the Results and response

6. Ownership and management plan –

New Look was founded with principal offices located in Anupam complex Kothrud pune, from
administration to marketing strategies, take place at this leased office location of approximately
500 square feet.
Employees will be encouraged to work within their creative, physical, and intellectual
boundaries. All duties will be divided and delegated according to strengths and weaknesses. At
New look we will expect a high degree of customer service skills and personality as this is
essential to our success. Shyam Songire will assess the productivity and perform informal
employees evaluations of all employees every six months. These bi-annual evaluations are
conducive to the continued growth of our small business.
Organizational Structure
New look Western Wear is a small business and therefore requires a simple organizational
structure. Shyam Songire will act as a general manager. All decisions are made in-line with the
company objectives. Employee tasks are delegated based upon their level of expertise, creativity,
strengths and weaknesses.
Management Team
Shyam Songire, co-owner and general manager will be responsible for all administrative
functions, purchasing, inventory control, and promotions. She will also act as a part-time sales
representative. he has spent over 10 years in accounting, finance and operations management.
He has extensive background in purchasing, inventory control, and marketing. The personnel
plan is included in the following table below. There will be one full-time
employee and two part-time employees working 20-30 hours per week. The full-time employee
will be paid at a rate of ₹10.00 per hour and the two part-time employees will be paid at a rate of
₹8.00 per hour. All employee's will benefit from a one day paid holiday on their respective
birthdays and one week of paid vacation after twelve months of employment.
At this time medical benefits will not be offered to employees. As profits increase in the future
medical benefits will be offered to all employees.
7. Operating plan –

Description of manufacturing process:

we already mentioned our business physical location. We located at pune and our main
branch in Kothrud region.
Our clothing production had organized activity consisting of sequential processes such as
laying, marking, cutting, stitching, checking, finishing, pressing, and packaging. This is a
process of converting raw materials into finished products. It is little difficult to maintain the
industry if production is not, up to the mark if the preproduction phase of preparation of
material is not properly carried out. So, we follow some certain steps and methods to deal
with this type of issues.
Facilities and equipment’s we have:
Ready to wear apparel or cloths manufacturing involves many processing steps, beginning
with the idea or design concept and ending with a finished product. Apparel manufacturing
process involves Product Design, Fabric Selection and Inspection, Patternmaking, Grading,
Marking, Spreading, Cutting, Bundling, Sewing, Pressing or Folding, Finishing and
Detailing, Dyeing and Washing, QC etc.
Fabric spreading machines
For small-scale garment manufacturing, manual spreading is viable. But to scale up our
business and improve cutting room productivity and reduce cutting room manpower, we used
automatic spreading machines.
Cutting table
We have cutting tables for fabric layering. Our service come up with a wide and long table
depending on the marker length and maximum fabric width to be used. Several fabric layers
are spread over on the flat table and whole plies are cut together as per marker.
Cutting room machines and equipment
For the garment making fabric sheets need to cut as per patterns. Various types of cutting
machines are available in our firm for fabric cutting. for cutting the fabric we use a straight
knife cutting machine. For cutting few numbers of plies we use round knife cutting machine
instead of the straight knife cutting machine.
Sewing machines
Sewing machines are the heart of the garment manufacturing factories. We always select the
right mix of sewing machines for our products or product groups. For the selection of sewing
machines and the number of sewing machines need to be purchased for setting up our
factory, and for that even we take advice from an expert.

Employees we have, Inventory requirements and suppliers:

 Employees are the most important aspect of a startup's growth. Fabric checking, material
quality, and other tasks were mostly handled by our superior head and co-founder. Our
manager oversaw everything from design to promotion. We recruit freelancers to design and
execute mock-ups, and we use an internet platform where design and fitting information is
available for free.
It would be wise to hire a professional digital marketer, but we recognize that hiring one will
be difficult for a startup. Instead, we will focus on offline sales and hire one salesman / local
delivery guy to begin with. We need a fashion designer at the beginning since, as the
entrepreneur, it is better to stop and work on something else if we don't have a strong notion
about our clothesline. We along with 35 other employees are working in 2 shifts and used to
work on sewing, cutting, and stitching machines.
8. Financial plan –
9. Use of Funds
10. The New Look strategy is to aggressively develop and market a full range collection to
consumers. The company intends to market its line as an alternative to existing clothing
lines and differentiate itself through its marketing strategies, exclusiveness, and brand
awareness. New Look intends to build on its core portfolio of products and overcome any
obstacles by using the company’s expertise in the clothing industry.
11. Sources of Funds
12. We believe we will be able to finance our growth through careful management of existing
streams of income and working capital generated by the business. 
Statements

Projected Profit & Loss

  2020 2021 2022

Revenue 40,16,900 53,00,000 65,00,000
       
Direct Costs 19,48,870 24,50,000 29,50,000
       
Gross Margin 20,68,030 28,50,000 35,50,000

Gross Margin % 51% 54% 55%

Operating Expenses      

Salaries & Wages 4,71,800 6,06,528 7,37,217

Employee Related Expenses 94,360 1,21,306 1,47,443

Marketing Expense 8,03,380 10,60,000 13,00,000

Communications 26,400 26,400 26,400
Client Relations 24,000 24,000 24,000
Rent 12,000 12,000 12,000
Utilities 8,400 8,400 8,400
Other G&A expense 1,20,507 1,59,000 $195,000
       
Total Operating
15,60,847 20,17,634 24,50,460
Expenses
       
Operating Income 5,07,183 8,32,366 10,99,540
       
Interest Incurred 52,076 36,078 32,602
Depreciation and
81,095 1,00,040 1,05,852
Amortization
       
Income Taxes 93,503 1,74,062 2,40,271
Total Expenses 37,36,391 47,77,813 57,79,186
Net Profit 2,80,509 5,22,187 7,20,814

Net Profit/Sales 7% 10% 11%

Projected Balance Sheet

  Starting Balances 2020 2021 2022

Cash 4,45,000 2,23,231 6,91,135 14,14,701

Accounts Receivable 69,031 1,92,521 2,14,650 2,63,250

Inventory 5,45,000 6,12,500 7,37,500 7,37,501

Other Current Assets 1,05,000 1,05,000 1,05,000 1,05,000

Total Current
11,64,031 11,33,252 17,48,285 25,20,451
Assets

         

Long-Term Assets 5,25,000 8,62,600 9,12,600 9,77,600

Accumulated
-80,000 -1,61,095 -2,61,135 -3,66,987
Depreciation

Total Long-Term
4,45,000 7,01,505 6,51,465 6,10,613
Assets

         

Total Assets 16,09,031 18,34,757 23,99,751 31,31,064

         

Accounts Payable 3,12,023 5,45,687 6,35,970 6,77,370

Income Taxes
5,045 33,944 43,478 59,991
Payable

Sales Taxes Payable 9,835 95,072 1,06,000 1,30,000

Short-Term Debt 8,88,271 5,78,475 6,08,070 6,13,065

Prepaid Revenue        

Total Current
12,15,174 12,53,177 13,93,518 14,80,427
Liabilities

Long-Term Debt 2,66,729 1,73,943 76,409  

Long-Term
2,66,729 1,73,943 76,409 $0
Liabilities

         

Total Liabilities 14,81,903 14,27,120 14,69,927 14,80,427

         

Paid-In Capital 70,000 70,000 70,000 70,000

Retained Earnings 57,128 57,128 3,37,637 8,59,824

Earnings   2,80,509 5,22,187 7,20,814

Total Owner’s
1,27,128 4,07,637 9,29,824 16,50,638
Equity

         

Total Liabilities &

16,09,031 18,34,757 23,99,751 31,31,064
Equity
13.

Projected Cash Flow Statement

  2020 2021 2022

Net Cash Flow from

     
Operations
Net Profit 2,80,509 5,22,187 7,20,814

Depreciation & Amortization 81,095 1,00,040 1,05,852

Change in Accounts
-1,23,490 -22,129 -48,600
Receivable
Change in Inventory -67,500 -1,25,000 -1

Change in Accounts Payable 2,33,664 90,283 41,400

Change in Income Tax

28,899 9,534 16,513
Payable
Change in Sales Tax
85,237 10,928 24,000
Payable
Change in Prepaid Revenue      

Net Cash Flow from

5,18,414 5,85,842 8,59,979
Operations

Investing & Financing      

Assets Purchased or Sold -3,37,600 -50,000 -65,000

Net Cash from Investing -3,37,600 -50,000 -65,000

Investments Received      
Dividends & Distributions      

Change in Short-Term Debt -3,09,796 29,596 4,995

Change in Long-Term Debt -92,787 -97,534 -76,409

Net Cash from

-4,02,583 -67,938 -71,414
Financing

Cash at Beginning of Period 4,45,000 2,23,231 6,91,135

Net Change in Cash -2,21,769 4,67,904 7,23,565

Cash at End of Period 2,23,231 6,91,135 14,14,701

14.

15. Appendices and exhibits-