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The Factory NG
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BUSINESS PLAN

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CEO: Olatoun Jolaso

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 The Factory NG

TABLE OF CONTENT

EXECUTIVE SUMMARY

COMPANY DESCRIPTION

OBJECTIVES

KEY TO SUCCESS

MARKET RESEARCH & INDUSTRY ANALYSIS

COMPETITOR ANALYSIS

SWOT ANALYSIS

TAILORED MARKETING PLAN

STRATEGY IMPLEMENTATION SUMMARY

SALES & MARKETING STRATEGY

OPERATION STRATEGY

PRODUCT SERVICES DEVELOPMENT STARTEGY

ADMISNISTRATION/MANGEMENT STRATEGY

FIANACIAL FORECAST
 The Factory NG

EXECUTIVE SUMMARY:
THE FACTORY NG will be a wearable art company. OlatounJolaso is the CEO of the company. He
has more than 10 years of experience in this field. Everyone wants ready to made things with
new creative designs & innovation. Our objective that we will become that type of company who
make designs & also produces outfits.

The Factory NG intends to market its line as an alternative to existing clothing lines, and
differentiate itself by marketing strategies, exclusiveness, and high brand awareness.

The Factory NG will begin conservatively by offering T-shirts, casual wear, polo shirts, uniforms,
house wear, household items, security wear, T-shirts, polo shirts, sportswear, Hotel wear,
badges, graduation wear, medical robes and hospital wear, prison wear, Branded wear,
promotional wear, robes and academic gowns as in-store inventory from which the customer can
choose. This will tap into the market of those who like the clothing but are more spontaneous
buyers. Any customer will be allowed to bring in pieces from their own wardrobe to paint.

The target areas are the following

✓ Lagos
✓ Abuja
✓ Port Harcourt

We will target the B2B market through ready-to-wear & formal dresses (Like independent
designers & established brands). The Factory NG's products have target markets. The first being
female, 21 to 35 years of age& the second target market is 50% male, 50% female, 5 to 16 years
of age..

The Factory NGs edge will be its price. Of the existing indirect competition, there are few
companies that will be able to compete with The Factory NG's price. We will have two revenue
streams

✓ Revenue earn from B2B

✓ Design Services

Here are the financial performance

 The Factory NG

COMPANY DESCRIPTION
The Factory NG is a clothing manufacturing company which will produce a variety of high quality
distinctive clothing & apparel at exceptional value. It is located in Lagos, Nigeria. OlatounJolaso
is the CEO of the company. We will looking to fulfill the need of manufacturing ready-to-wear
clothing for fashion brands as well as make uniforms and other work apparel for companies. So
we are looking to manufacture for B2B clients& also for B2C (like Independent designers &
established brands). We will have to target the following market

✓ Lagos
✓ Abuja
✓ Port Harcourt

In the above areas we have more potential to earn high profits.

OBJECTIVE
Our business had two fold objectives

✓ To take away the stress of the creative design process from fashion startups, emerging
designers and established brands. Most of these businesses do not understand the
creative process or have the capacity for it and so they need a company that has the
capacity to delivery on the creative process (illustration, sourcing, sketches, patterns,
design, styles, sizing, collections) as well as producing the outfits - which includes cutting
and bundling as well as cut and sew production.
✓ manufacturing (tailoring and finishing) of apparel for companies who already have their
creative process done
 The Factory NG

✓ doing both

KEY TO SUCCESS FACTORS

✓ We will have to find companies who have completed their designs but they are not
enabling to produce their outfit. So we will be the company who will produce their outfits
✓ We will have to make the creative design studios that will provide the services of designs
✓ Trained & Experienced designers

MARKET RESEARCH &INDUSTRY ANALYSIS

Within a decade, Nigeria’s fashion industry has grown in size and sophistication, attracting global
attention. Going by GDP data from the National Bureau of Statistics (NBS), the “textile, apparel”
sector has averaged growth of 17% since 2010. This rise has been fuelled by an increase in
demand but also partly by unprecedented initiatives that continue to edge Nigeria into the global
fashion consciousness. Events such as Lagos Fashion Week have championed this movement
through their anticipated annual runway shows and incubator-style techniques used to grow
brands.

The Nigerian economy has been experiencing growth for the past 10 years which has brought
light to Nigerian (GMID 2005). The Nigerian consumers are becoming fashion conscious due to
the new fashion trends and development in the society today. A majority of adult and middle-
aged consumers have developed tastes which are comparable to those of their counterparts in
developed countries, as a result of the advent of satellite communication and internet which has
further made the diffusion of information and knowledge easy to reach out to the Nigerian
population. This reason partly accounts for the elevated spending on clothing as indicated in a
study that was carried out by (GMID 2005).

Again, GMID’s study in 2005 about the Nigerian consumers spending pattern revealed that a
greater proportion of their total income is spent on clothing, which is ranked third, (5.36%) after
food and shelter with 56.42% and 8.89% respectively.

According to the market survey the following analysis has been made

➢ Revenue in the Apparel segment is projected to reach US$1,202m in 2020.

➢ Revenue is expected to show an annual growth rate (CAGR 2020-2024) of 16.6%, resulting
in a projected market volume of US$2,226m by 2024.
➢ User penetration will be 21.2% in 2020 and is expected to hit 34.0% by 2024.
➢ The average revenue per user (ARPU) is expected to amount to US$27.49.
➢ In global comparison, most revenue will be generated in China (US$169,404m in 2020).
 The Factory NG

COMPETITOR ANALYSIS
The clothing Industries in Nigerian faced with lot of competition. There are a lot of locally made
fabrics that are popular in the market and also other retail sellers travel outside Nigeria to other
countries to like china to shop. This is because they can get cheaper goods and other option when
they come back they make their products cheap, affordable and enlighten in order to satisfy
customer needs and wants. Thus, Nigeria likes fashion and there are lots of boutiques in the
country meaning competition is quite high, though the quality of these goods does not match
that of Collectibles the best fashion industry in Nigeria.

Abe is huge market in Nigeria which is known for fashionable clothes outfits and accessories their
product are usually called “Made in Nigeria goods”. In Nigeria, the community of Abe everyone
has a sewing machine which the used in sewing clothing and consumer patronize them. A lot of
shops in Nigeria get their clothing items from Abe, which is a local fashion market in Nigeria and
they resell them in the other shops, these are Nigerian made clothes.

There are also a large range of bigger Fashion outlets which has various branches across Nigeria
such as Collectibles, Marbella culture, Charlotte Andrew’s collection, Bibis couture, De javu
essence, Dee top choice, Wranglers and yeside fashion store. This means the level of competition
in the fashion industry in Nigeria is very high.

The intensity of the rivalry in the clothing sector in Nigeria market is really fierce. As there’s free
movement of goods to Nigeria from the African union, and also with the influx of Asian clothing
shops, the competition for market share is intense (GMID2008). Collectibles has a number of
rivals in clothing sector like Yeside fashion, Marbella culture, Charlotte Andrew’s collection, and
De javu essence. Wranglers seem to be in serious competition with collectibles fashion
industry. A wrangler has been able to attract consumers by creating its own brand clothing
labels and stylish shoes which collectible has taken the lead in it. Through this median
companies are obeying the laws passed on them by the government. This has increased the
 The Factory NG

intensity of rivalry in the industry because most of the company are working towards common
goals to become a market leader.

The target areas are the following

✓ Lagos
✓ Abuja
✓ Port Harcourt

In order to facilitate better links and connection between our community of fashion designers
and local apparel manufactures, we’ve created a resource of some production factories that you
might want to check out if you are in Lagos, Ogun, Abuja, Enugu or Ghana.

Style House Files (Human Capital Development Centre)

Style House Files is a Fashion Business Development Agency in Lagos with conducive production
hubs and has primarily focused on the advancement of the Nigerian and African Fashion Industry.

Aimee & Annabel

Located in the Ifako-Ijaye Local Government area of Lagos State, Aimee & Annabel is a privately
owned organization that sews uniforms in large quantities throughout Nigeria. Their brand has
progressed since its establishment in 2006 and are a reputable name when it comes to bulk
apparel sewing.

Lekki Garment Factory

 The Factory NG

Lekki Garment Factory is a Nigerian manufacturer of branded clothing including blank or

undecorated active wears like T-shirts, sport, loungewear, which are subsequently decorated by
screen printing/sublimation companies with designs and logos. They are located in Lekki, Lagos.

SWOT ANALYSIS

STRENGTH
✓ Futuristic design,
✓ Good image,
✓ Reaction to a new fashion trend,
✓ Quality of textile fabric and
production,
✓ New ergonomic form of model ,
✓ Short period of development of a
model and short period of duration,
✓ Automation of production processes,
✓ Industrial training conducted by
specialist,
✓ Ecological requirements.
WEAKNESS
✓ Very high price because of fast
changes,
✓ Small series with a large number of
models (three to five articles in work
order),
✓ Manufacturing of only three sizes,
✓ Bad covering of foreign market,
✓ High price of energy,
✓ Condition and price rise of raw
material because of introducing VAT,
✓ Short time for optimization of
products.
 The Factory NG

OPPOTRUINTIES
✓ Consumers’ wish for new designs,
✓ Marketing of products into a new
market,
✓ Market – Establishing “show room”
objects,
✓ Making e-mail catalogue – Value of
labor
✓ Production of garments Made-to
Measure.
THREATS
✓ Import of similar articles of clothing at
low prices,
✓ Competitors have lower price,
✓ Competitors have better distribution
net with more sales places,
✓ Quick obsolesce of technology.

TAILORED MARKETING PLAN

It’s essential to open EFFECTIVE lines of communication with your target market. If you don’t
ensure that your messages reach them, how can you possibly expect that your efforts for
expanding your sales will be noticed? In reality, it’s impossible. When talking about these
methods of communication, it’s important to keep several tools in mind:

Offline: We have a B2B customers so we will create links to every business executive of fashion
Brand Company. Create signs to ensure that offers reach customers. We will also introduce our
self as creative designers through catalogues of designs, brochures & different discount deals.
This advertises promotions and adds value to your products in your own establishments.
 The Factory NG

Online: Having an online presence is essential in such a competitive sector as the textile industry.
It’s true that not all businesses can or should be online, but if it’s within the abilities of the
business to open themselves up to the internet, they shouldn’t pass up the opportunity to
explore this outlet.

If we will use different type of social media

✓ INSTAGRAM,
✓ FACEBOOK
✓ BLOGS

INSTAGRAMS
The following are the basic steps to create profile on instagram

✓ Switch to a business profile on instagram

✓ Use free Instagram tools.
✓ Post product teasers that will (gently) urge people to buy.
✓ Create sponsored ads.
✓ Use Instagram Stories to promote their products
 The Factory NG

✓ Partner with influencers for a wider reach.

✓ Collect user-submitted photos. ..
✓ Come up with an interactive branded hashtag.

We will have to post the designs catalogues on Instagram to attract the companies.

FACEBOOK
The following are the steps to create our facebook page to promote our product & services

✓ Don't use Facebook for the 'hard sell' ...

✓ Have a clear goal and strategy. ...
✓ Create a human voice for your business. ...
✓ Post regularly. ...
✓ Encourage comments and reply quickly. ...
✓ Use pictures and videos. ...
✓ Nurture your relationships. ...
✓ Promote your Facebook page.
 The Factory NG

BLOG
Blog marketing is the process of reaching your home business' target market through the use of
a blog. Initially, business owners had a blog separate from their websites, but today, you can
easily integrate the two to make it easier for you to manage, as well as easier for visitors to access.

STRATEGY IMPLEMENTATION SUMMARY

PHILISOPHY

Our company’s core business strategy is to combine exceptional & knowledgeable customer
service with quality stylish merchandise. The FACTORY NG’S mission is to fulfill the need of
manufacturing ready-to-wear clothing for fashion brands as well as make uniforms and other
work apparel for companies. So we are looking to manufacture for B2B clients. Our aim is to
establish our company as pioneer in this youth-obsessed industry & build a brand name that will
be synonymous with fashion industry revolution.
 The Factory NG

PRODUCT DEVELOPMENT

Product development will be defined as the process of conceptualizing, designing, creating,

producing, introducing and delivering new products and design services to the companies. It is
the very first stage of introduction of new style. Product development is the process where that
sketch or design is converted in to a 3D form garment, with all technical and aesthetic approach
keeping in mind. The purpose of the product development process is to certify that the supplier
understands and adheres to the specifications established for a specific product.

We will have two types

✓ Products
✓ Design Services

PRODUCTS:

In the category of product, firstly we will make designs of ready-to-wear clothes of fashion
brands. The design team will firstly sketch all the designs then these designs will be converted
into 3D form garment with all technicalities. So designs will be final by Head of Department. Then
the process of product will start & goes into production, stitching & finishing department.

DESIGN SERVICES:

Every company feels hassle for making of designs. So we will provide the services of designs to
the companies. Most of these businesses do not understand the creative process or have the
capacity for it and so they need a company that has the capacity to delivery on the creative
process (illustration, sourcing, sketches, patterns, design, styles, sizing, and collections) as well
as producing the outfits

INTERNET STRATEGY

We will have a plan to introduce our website & site development work has been started. Further
we will hire web designer who will fulfill our requirements. Foremost we will intend to showcase
our brands, our clothing and provide customers with the ability to purchase items online. As the
site will progress, we will include features such as fashion advice, designers interview, newsletter
& internet-only specials.

Our intention is to gain 80% of this market share by focusing on our niche positioning,
neighborhood location, and brand that we will give some special promotions.

MARKETING STRATEGY
 The Factory NG

We will use attractive marketing techniques that attract the customers. Moreover we will hire
PR firm to help us develop & implement as strategic marketing plan & guide our publicity efforts
in cost-effective manner. Our marketing message, logo & slogans will revolve around the idea.

Our goal is to keep our marketing budget to no more than 5% of our gross annual sales. These
strategies will allow us to piggyback on publicity for local events, as long as they are within our
targeted demographic. Our initial marketing efforts will remain local as we a presence in our
community. These will be heavily on local prints broadcast media coverage, traditional
advertising, signage, direct mail marketing campaign networking. A significant portion of our
advertising budget will be allocated to print & broadcast media.

SALES STRATEGY

Our company plans to generate sale via strategic marketing efforts. We will have to take orders
from established fashion brands, produce outfit & sell it to these companies. In the sales strategy
we will have two types of sales

➢ B2B
➢ DESIGN SERVICES

B2B REVENUE:

In B2B revenue, we will have two type of streams

✓ Revenue from ready-to wear

✓ Revenue from formal dresses

Revenue from ready-to-wear

In this stream we will have to take orders from established fashion brands, produce outfit & sell
it to these companies. Because these companies has no enough resources to produce it.

In the first year the company will earn $200000 from ready-to-wear

Revenue from formal dresses

Formal dresses contain the uniform of the companies. The private firm will place us the orders of
formal wear (like uniforms) & we will produce it & sell it to these companies.

In the first year we will earn $100,000 from formal dresses.

DESIGN SERVICES

In the design services, mostly companies feel hassle to makes the designs of the dresses so we
will provide the design services.
 The Factory NG

In the first year we will have to make revenue $150,000 & it will increase in subsequent years.

PRICING STRATEGY

Profits will be earned via the sale of our merchandise. Our pricing structure will remain flexible
as we will implement suggested retail pricing on common brands as well as the standard practice
of key stoning prices. Additionally, we will utilize a value-based pricing structure which measures
the value of product to our customers such as easy access, quality, customer service & styles
flattering to our target customer.

B2B MARKETUNG STRATEGY

The factory NG will use different B2B marketing techniques to enhance their sales.

Digital Marketing for B2B

Digital marketing is a scalable way to get your products or services in front of the right people. A
digital marketing campaign makes it easy to track ROI, and you can use granular targeting to
reach decision-makers. The companies require low cost product to increase their ROI. So we will
offer reasonable prices through emails & other social media.
 The Factory NG

Traditional Marketing for B2B

Traditional marketing strategies for the business to business market casts a wide net and tends
to be expensive, but it helps build brand equity. We can use radio, television, or print ads to grab
the attention of your potential customers and remain top of mind. You’ll be in the running when
those companies are looking for a new vendor.

Personal Selling for B2B

Personal selling is one of the oldest and most effective B2B marketing methods. Personal selling
leverages face-to-face networking and relationships to get deals inked. This is the least scalable
way to market your business to other companies, but it has the highest conversion rate.

SALES & MARKETING STARTEGY

The FACTORY NG has the following marketing strategy to enter into the market

Broad Portfolio: The FACTORY NG will focus on its sub-brands to derive the sales through
different channels. Product line extension, geographic and demographic expansion is helping the
company unleash its potential.

Visibility of the brand: Availability of the brand in the different form of channels is what helps
the company in increasing its visibility and therefore have high shelf space.

Multichannel Approach: To penetrate the market it uses multi-channel approach i.e.

supermarkets/ multi-brand outlets, a company owned outlets and franchised outlets.

Our company will make its offerings available to the customers through a variety of channels
such as multi-brand outlets, Exclusive brand outlets, e-commerce sites, company-owned outlets
and franchised outlets. Availability of product in a wide variety of point of distributions results in
high visibility of the brand.

OPERATIONS STRATEGY
Operations department is one of the names given to the department that has the overall
responsibility for planning, controlling and coordinating all activities concerned with the logistics
of raw material supply and the production of garments.

The functions of operations department are as follows:-

Pre-production planning and control:-

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Another function of the operations department is the pre-production planning and control, which
plans and controls all the activities leading up to the actual production or garments. In effect, it
is pre-production planning and control which organizes and manages the route from the
customer to the cutting room. The overall objective is to ensure that the logistics of supply and
production are planned in such a manner that:

o The sales program is achieved on time

o Labor, machinery and other sources are utilized to the best
o The pre-production phase for an order is ended when the production order,
graded patterns and all the raw material are issued to the factory.

Production planning and control (PP & C):-

Cutting room: - Here all the processes required to trim piece goods into cut garments are
performed.

Sewing room: - Apart from actual sewing this include operations such as fusing, under-pressing,
and in-process inspection. Sometimes the sewing room use outside contractors for operations
which the factory is not equipped to carry out, such as pleating, embroidery and quilting.
 The Factory NG

Pressing room: - This department gives the garment its final finish by a process called top-
pressing.

Final inspection:- Although this is not strictly a production function, it is tied in with production
because the inspection department gives the 'go' or 'no-go' for every garment produced.

The most important function of the operations department is the production planning and
control because without it, the department is like a bus driving along the road without a fixed
route, destination or timetable. Production planning includes marker planning (manual or
computerized technique) and cut planning and cutting room production planning.

As soon as the production plans are issued, the operations department begins the control
procedure necessary to maintain up-to-date picture of the progress of each production order.
Generally, the department requires information on the three stages of production- a) When the
cutting of a production order has to be started; b) When a production order has to start being
issued to the sewing room; c) the styles and qualities of the finished garments which have
entered the warehouse. The department would receive information from the sections concerned
on a daily or more frequent basis. Where system such as CIM (computerized integrated
manufacturing) is employed, then the information is available in real time (relating to computer
system that updates information at the same rate as they received data).

➢ For the operations department, the principle of their global control system is two
questions: Have the garments been started and finished on time?
➢ What goes in between is the responsibility of production management.
 The Factory NG

PRODUCT/SERVICES DEVELOPMENT STRATEGY

SERVICES

We will have to provide the services of designing to the companies because companies feels
bother for whole deigning process.

PRODUCTS

Our core areas of production will include

✓ Corporate shirts,
✓ Causal wear
✓ School uniforms,
✓ House wear,
✓ Household items,
✓ Security wear,
✓ T-shirts,
✓ Polo shirts,
✓ Sportswear,
✓ Hotel wear,
✓ Badges,
✓ Graduation wear,
✓ Medical robes and hospital wear,
✓ Prison wear,
✓ Branded wear,
✓ Promotional wear,
✓ Robes and academic gowns.
The Factory NG
 The Factory NG

Other accessories include but are not limited to Branded Ties, Scarfs and Lanyards.

ADMINISTRATION/MANAGEMENT SUMMARY
CHIEF EXECUTICE OFFICER/CHAIRMEN

Any clothing company needs a main leader or head who not only takes the major decisions but
also delegates duties and holds the main power. In a clothing company, this position is given to
a CEO named as”OlatounJolaso”. The CEO basically owns the company and is the one who
establishes the firm from scratch. He is also referred to as the president of the board.

Managing Director

Right after the position of the chairman is a position which is associated with directly handling
the operations of the firm. This is the position of the managing director or MD. The MD is
appointed by the chairman himself and is one who is the head of the managerial aspects of the
business. He works closely through all the operations and functions of the clothing company
Organization and is the main supervisory position.

Executive Director

At the next position of the hierarchical order is the position of the executive director. The
Executive director directly works under the MD and reports him. He is the one who basically
heads all the departments including finance, accountancy, sales, manufacturing and marketing.
 The Factory NG

He works to ensure proper coordination between these departments and sees to it that all major
tasks are being done in proper order.

General Manager

The general manager position is that of utmost importance in any clothing company and is one
which is associated with the production and quality of the apparel company. The general
manager wears many hats and should possess exceptional managerial skills. He sees to it that the
day to day tasks are going on smoothly and that the problems are resolved on time and in a fair
way.

Departmental Manager

A clothing company has several departments and to head each, there is a departmental manager
assigned. The main task of a departmental manager is to makes sure that the tasks in his/her
department are going on smoothly and are well coordinated both internally and externally.

Assistant Manager

Assistant managers are those administrators who work under general or departmental
managers. They may perform tasks on behalf of the managers working above them and may still
be new to management. They must help the managers reach goals on time and within budget.

Operators and Workers

Every department in a clothing company consists of several individuals or employees who

perform important tasks like finances, handling accounts, running sales, handling marketing,
manufacturing clothes, designing and others. They form the backbone of the company and their
jobs are usually skill based.

FINANCIAL FORECAST
START UP
 The Factory NG

REVENUE & SALES

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INCOME STATEMENT
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BALANCESHEET
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CASHFLOW STATEMENT
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VALUATION

NPV ANALYSIS:

PAYBACK PERIOD

PROJECT IRR
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RATIO ANALYSIS

CONCLUSION:
 The Factory NG

This project looks attractive because competition will increase & markets are saturated so
everyone wants something new. Creativity will help our business exapnision.