WEAR

True Style Never Dies

ONLINE DESIGNER SHIRTS PROJECT

 1. Executive Summary
WEAR is a concept of True Style Never Dies. We believe in a concept of style is a way to say who you are
without having to speak. WEAR makes its own consumer aware about the current dressing trend and delivers
what style suits you and how to adopt it.

Our core objective is to capture online market of clothing. At the initial stage WEAR started with Men’s
shirts of various sizes. Our upcoming strategy is to enter in Men’s accessories (ties, cufflinks and belts) and
Women clothing market

WEAR goal is to be the leading producer and marketer of personalized, formal, semi-formal and casual shirts
for online consumers.

WEAR inspires people to be looked good while wearing WEAR shirts. WEAR initiative is to stitch designer
shirts with best quality in best economical price.

Project Assumptions

 WEAR is building its reputation over its product quality and maintain trust of our valuable customers
so we will not compromise in our fabrics and stitching.
 Under the guidance of professional sartorial genius, WEAR offers the premium quality in men’s
wear. In which, we bring the best world’s most prominent fabrics that are 100% cotton like Egyptian
cotton, Malay cotton, Thai cotton and Albini Cottonifico. In all shirts, we are matching all lines of
check to gather with state-of-the-art handmade.
 Initially it would be online clothing business, WEAR offers best online services to our valuable
customers on cash on delivery
 Second phase we will be a retailer plus online environment, we will be selling on all credit cards &
cash on delivery.
 Marketing and advertisement budget will be 3% of total sales.
 WEAR will continue to re-invest residual profits into company expansion.
 Also, we have return policy in which consumer can replace their desired products within 7 days of
delivery.

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3. BACKGROUND

3.1 Business Overview

WEAR is mainly focused in men’s shirts. We are offering shirts in formal, semi-formal and casual
categories.

 We provide shirts
to our customer in
regular-fit, trim-fit
and extra trim-fit.

 To satisfy the customers WEAR also stitch customizes shirts according to customer size. WEAR
stitch shirts according to the below size chart.

 Being online environment, there is no geographical boundaries in online business. We receive orders
throughout the Pakistan. To maintain long term relationship with our
customers, WEAR offers Free Home Delivery in all over the Pakistan.

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3.2 WEAR’s Vision & Mission Statements

Vision
Setting trends in online business in clothing
industry. Responsibly delivering
products and services to our Customers.

Mission
To deliver value to our customers through innovative
online techniques and teamwork. To enhance the
awareness about dressing. Fulfilling our social and
environmental responsibilities.

3.3 WEAR’s Goals

WEAR goal is to be the leading producer and marketer of personalized, formal, semi-formal and casual shirts
for online consumers. WEAR inspires people who love to be looked good while wearing WEAR’s shirts.
WEAR initiative is to stitch shirts with best quality and provide to customer with the best economical price.

In addition, WEAR seeks to achieve the following financial and nonfinancial goals:

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  Financial Goals

 Obtain financing to expand manufacturing capabilities, increase distribution, and introduce two new
product lines.
 Increase revenues by at least 25 percent each year.

 Non-financial Goals

 Introduce two new product lines, dress pants and shirt accessories.
 Develop a successful Internet site, while maintaining strong relationships with customers.
 Enter a new geographical market and to open a WEAR’s outlet within a country.
 Maintaining long-term relationships with customers and suppliers.

3.4 WEAR’s Strategies

WEAR is a partnership firm, starts with Rs.300,000/-

4. Environment Analysis

4.1 PEST Analysis

Political Factors
Political situation is yet to be fully mature
Security concerns

Economic Factors
Change in discount rates impacts financial cost
Currency fluctuations

Social Factors

• The customers are very much fashion oriented and the companies are keen to develop and introduce new
products setting new fashion trends
• Growth in population is out-spacing the annual growth, resulting in unfavorable impact on the economy
Technological Factors

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• Technology change defines how fast technology advances. The WEAR is continuously monitoring
technological advancement in production and is willing to adopt changes. It has state-of-the-art production
facilities
• Low research and development efforts in the industry and absence of industry specific think tanks

4.2 SWOT Analysis

Strengths

• Image and branding

• Pioneers in apparel fabric for gents
• Competent, vastly experienced and loyal staff and workers
• Edge in technology – state-of-the-art plant and machinery
• In-house power generation
• Cordial relationship with the workforce

Weaknesses
• A limited number of consumers around the country are aware of the
WEAR brand
• The firm has limited cash flow
• Weak distribution structure
• Sales force is smaller as compare to competitors

Opportunities
• Growing online market including expansion men’s apparel
• Expand web-based sales
• E-marketing

Threats
• Irrational taxation policies
• Continuous increase in energy prices and gas shortage affecting production and its cost
• Key employees lured by competitors

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 • Large competitors such as Chester Bernard, The Alpha male, Shahzaib Saeed and Sabric may soak up
consumers by launching similar product line

5. Marketing Goals and Objective

Our marketing objective is to make WEAR as a Brand. The consumer easily recognize the logo and the first
thought come to the consumer mind that it is the product that’s give value and satisfy the needs. WEAR are
passionate to achieve 28% of online market. To achieve this objective we will launch online campaign with full
throttle including Facebook ads, discount deals etc. and BTL activity in mega store to promote WEAR with full
acceleration.

6. Value Proposition

Under the guidance of professional sartorial geniuses, WEAR offers you the best quality in men's wear in
which we bring the best world's most prominent Fabrics which are 100% cotton like Egyptian cotton, Malay
cotton, Thai cotton, Poplin, Royal oxford, Denim, Chambray, Twill and Albini cottonifico.
In all shirts we are matching all lines or check to geter with state - of-the art handmade..

7. Target markets

Exclusive customers, who are belong to white collar job

Demographic

• Age : 16+ onwards

• Gender : Male

Segmentation

Major cities of Pakistan

 Karachi

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  Lahore
 Islamabad
 Rawalpinidi
 Faisalabad

8. Detail Marketing Tactics

 Publish ads in print media

 Online marketing by using Facebook, Google , Daraz.pk, Amazon.com
 Aware customers to our new arrivals by direct SMS and e-mailing
 BTL events in different malls and university

9. Financial Projections

Year-by-year profit and loss assumptions

2016 2017 2018 2019 2020
Annual cumulative price (revenue) increase 2.00% 4.00% 6.00% 8.00% 10.00%
Annual cumulative inflation (expense)
increase 2.00% 4.00% 6.00% 8.00% 10.00%

2016 2017 2018 2019 2020

Revenue

Sales in Units 1500 2000 2500 3500 4000

Per Unit Cost 1,950 2,028 2,150 2,322 2,554
Gross Revenue 2,925,000 4,056,000 5,374,200 8,125,790 10,215,279
Cost of goods sold 2,386,800 2,482,272 2,631,208 2,841,705 3,125,875

Gross margin 538,200 1,573,728 2,742,992 5,284,085 7,089,404

Operating expenses 150,000 156,000 165,360 178,589 196,448

Marketing Expense 37,500 39,000 41,340 44,647 49,112

Total operating and marketing expenses 187,500 195,000 206,700 223,236 245,560

Net income (loss) 350,700 1,378,728 2,536,292 5,060,849 6,843,844

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10. Breakeven Analysis

Fixed Costs Variable Costs per Unit

Shirt 515 Shirt 1,200

Fixed Costs: 515 Var. Costs/Unit: 1,200

Pricing and Contribution

Unit Price: 1,950

Unit Contribution Margin: 750