project report on boutique shop

PROJECT REPORT OF PRINCIPLES OF MARKETING (MKT-701)

Business Plan of a Boutique Shop Boutique Gallery

BRAC BUSINESS SCHOOL

BRAC UNIVERSITY

PROJECT REPORT NO. 01

MKT - 701

Supervisor: Mr. Shaikh Imran Aziz

Visiting Professor

BRAC BUSINESS SCHOOL

Submitted by:

Students Name Students ID No.

Dr. Mohammad Harun Ur Rashid 15174015

Khandaker Sakib Farhad 16174009

Mohammed Lokman Hossain 11374010

Mahmudul Alam Tarafder 15274026

Mahamuda Akter 13374040

Mahfuza Akther 15174018

Muhammad Abdur Razzaque 15274009



THE PROJECT TOPIC:

BUSINESS PLAN OF A BOUTIQUE SHOP BOUTIQUE GALLERY

Executive Summary: ....................................................................................................................... 3

Introduction: ................................................................................................................................... 3

Company Slogan: ............................................................................................................................ 3

Company Objectives: ..................................................................................................................... 4

Company Mission: ......................................................................................................................... 4

Company Owners: ......................................................................................................................... 5

Company Start-Up Cost: ............................................................................................................... 5

Company Location & Facilities: ..................................................................................................... 6

Company Products: ....................................................................................................................... 7

Competitive Comparison: .............................................................................................................. 7

Commercial Viability: .................................................................................................................... 8

Sales Literature: ............................................................................................................................. 8

Sourcing: ........................................................................................................................................ 8

Technology: .................................................................................................................................... 9

Future Products: ............................................................................................................................ 9

Market Analysis: ............................................................................................................................ 9

Market Segmentation: .................................................................................................................. 10

Management Summary: .............................................................................................................. 14

Financial Plan: ............................................................................................................................. 14

Risk Management: ....................................................................................................................... 16

Sonclusion: ................................................................................................................................... 16



EXECUTIVE SUMMARY:

“Bring the best of your authentic self to every opportunity”- John Jantsch

Author of DUCT TAPE MARKETING

The Boutique shop that we are promoting is Boutique Gallery which is an unique clothing store.

We know for sure now a day’s people are very conscious about what they wear & how they

appear. So from our passion and love for the wonderful world of Fashion we have come up

with our unique Boutique store which we believe will is pleasing our customers. Our Boutique

Store focuses on the establishment of women wear including the operations of apparel

designing, manufacturing, selling and marketing. We have developed some unique ways to

attract customers and believe our customers as the hero of our small Boutique store.

INTRODUCTION:

Boutique Gallery is a new Boutique shop that has been created for the Bangladeshi people. Our

focus is to provide customized wear, apparel and accessories and position ourselves as the top

retail store servicing this particular market.

Our intentions are to obtain market share and become a central hub of shopping activity for the

local population as well as Non Resident Bangladeshis (NRBs) who enjoy wearing fashionable

apparel.

Boutique Gallery will be located at BASUNDHARA CITY SHOPPING COMPLEX, which has

centralized itself directly in position to the residential location and social activities of our target

market. We believe that this is critical to our initial success and long-term growth.

COMPANY SLOGAN:

We have made it our motto to satisfy customer needs & as we believe so we have made our

Slogan as below:

“Anything you choose, we provide to your hearts satisfaction”



COMPANY OBJECTIVES:

Boutique Gallery is a store for the quality and style conscious consumers, providing unique,

eclectic and affordable product. We intend to win customers through the wide range of

products that we have & the unique services that we are offering. We encourage the creativity

and promotion of individualism through style and fashion at affordable prices.

To provide people with a boutique that offers a comfortable and approachable

environment.

To create a shopping environment that meets the apparel needs of the local people as

well as NRBs.

To receive a 50% profit margin within the first year.

To have a customer base of 1,000 by the end of the first operating year.

To create employment opportunity.

To conserve and uphold culture and values by providing domestic products to NRBs.

To generate scope for enhancement for related industries like those who provide the raw

material.

To provide people with a boutique that offers elegant and classy clothing designs.

To showcase quality, well-constructed fashions from prominent and cutting-edge

designers.

To offer uniqueness to what people wear and let them be their own brands.

To offer a variety of beautiful and high-end fashion accessories.

To help people learn what clothing and styles go best with their unique personalities?

COMPANY MISSION:

Boutique Gallery’s mission is to offer quality, name brand accessories and clothing in an

assortment of sizes and styles to accommodate varying styles and shapes.

1.3 Keys to Success

In order to succeed in the boutique industry Boutique Gallery must follow below rules:

Provide customers with top notch personalized customer service in an atmosphere of

Bengali hospitality.

Carry an assortment of sizes to fit the more ample frames of their target customer base.

Have a wide range of products to attract people of different status.

Advertise and promote in areas that target customer base will learn about the store.

Continuously review sales and adjust inventory levels accordingly



COMPANY OWNERS:

Boutique Gallery organized as a partnership among the seven partners of Dr. Mohammad

Harun Ur Rashid, Mohammed Lokman Hossain, Khandaker Sakib Farhad, Mahmudul Alam

Tarafder, Mahamuda Akter, Mahfuza Akther & Muhammad Abdur Razzaque.

We will be located at Basundhara City Shopping Complex, Dhaka.

The hours of operation will be for Saturday - Thursday 9 a.m. - 8 p.m. and for Fridays 10 a.m. - 8

p.m. There will be extended special hours designated during The Festivals like Eid-Ul-Fitr and

Eid-Ul-Azha, and New Year.

All merchandise will be purchased according to the company's mission and customer focus of

outfitting all sizes.

COMPANY START UP COST:

Boutique Gallery’s incorporation costs are listed below. The company will start with three months inventory on hand for apparel and accessories as this are the main revenue generator.

The majority of the company's assets will reside in inventory. The opening day’s cash on hand balance will be $384. The financing will include an owner’s investment of $5,100.

Start-up

Start-up

Requirements

Start-up Expenses

Trade License Tk.1, 000

Grand Opening Event Tk.10,000

Telephone & Utilities (3 months) Tk.1,500

Infrastructure Development Store Fixtures/ Decorations Factory

Tk.150,000 Tk. 20,000

Staffing and Recruitment Tk.20,000

Advertising & Promotion Tk.15,000

Raw material collection Tk.70,000

Purchase of Machinery Tk.90,000

Installation Cost Tk.10,000

Business/Office Supplies/Stationary Tk. 1,000

Accessories (Dices, Frames) Tk.10,000

Total Start-up Expenses Tk.398,500

Note: It will take 8 weeks to prepare for and start the venture.



Balance Sheet

Assets

AMOUNT Liabilities

Amount

Machinery 100,000

Capital 386,000

Less: Depreciation 19,000

Add: Net Profit 195,200

81,000 Net Worth

581,200

Cash

393,000 Creditor

150,000

Accounts

Receivable

157,200 Inventory

100,000

Total

731,200

731,200

COMPANY LOCATIONS AND FACILITIES: Boutique Gallery will be located at Basundhara City Shopping Complex, Dhaka. This space has

2000 square feet area and has been rented for three years. We feel it is essential for our initial and ongoing success that we locate ourselves in the heartbeat of the community. We also strive to create an atmosphere of acceptance and community, as well as a retail environment where individuals can identify and bond with their culture.

Business deliveries will be handled through the showroom and also through courier service on the base of Web Page orders. The factory is nearby the showroom so no extra transportation cost will be needed to bring the products from the Factory to showroom.

http://3.bp.blogspot.com/-56NWMTV2Flk/Tn3jU6VTMBI/AAAAAAAAAGo/Vorcg18LFeE/s1600/balance.jpg



COMPANY PRODUCTS:

Boutique Gallery will carry traditional, Trendy, Casual wear brands to create their unique Brand Image where you can find everything that you need. The greatest percentage of merchandise will be in apparel, followed by accessories, and gifts. Management will rely on customer feedback, suggestions, and sales reports to introduce or

eliminate certain brands, styles and sizes.

1. T-Shirt 2. Shirts

3. Jeans 4. Skirts 5. Cardigans 6. Jackets

7. Sweaters 8. Saree 9. Salwar Kameez 10. Panzabi

11. Bed cover 12. Cushion cover 13. Curtain 14. Others

We are the above products starting from Children to Elderly persons and have fashioned our products according to their needs.

COMPETITIVE COMPARISON: Boutique Gallery has a number of advantages that will allow us to build our brand identity, add value to our merchandise and build a loyal customer base while standing apart from our

competitors.

1. The Boutique Gallery Shopper Card' will entitle customers to a 15% discount after ten purchases.

2. We are offering clothing to fit plus size for all. 3. We will create a sense of culture and bonding with the community by offering products

that combine both the culture and innovation. 4. Our location is central to our target customer base.

5. We will maintain a detailed record on each customer, logging addresses, their purchases, size, and brand for customer follow-up and in-house promotional purposes.

6. We also have ready to order for our customers which is unique, so that they can offer their products on what colour and design they like on our existing designs.



COMMERCIAL VIABILITY:

1. The plan is a sound one because it will create employment opportunities as well as providing scope for related industries.

2. There is a huge demand for clothing, as these items reflect one’s personality and status. 3. The plan is acceptable as there will be no environmental degradation.

4. The investment cost is comparatively lower. 5. The employees required for the project are few in number and available as we intent to

offer part-time job facility. 6. As we wish to select students for our project we believe this will create a direct impact

on the Target Customers with less investment. 7. As the investment is lower the risk associated with the plan is also low.

SALES LITERATURE: Boutique Gallery will use a targeted advertising and sales program to generate publicity and build a customer base.

2000 full-color postcard flyers with a 10% coupon will be distributed throughout Dhaka two weeks prior to the grand opening event. We are opening our personalized Web Page for promoting our products & have our own facebook page to inform about our products.

Moreover we have arranged for promoting our Boutique shop on the newspapers also with our Slogan on it which will definitely attract customers. The customer mailing list has been compiled from contacts the owners have made while in the

community.

SOURCING:

We will shop & source for our merchandise as outlined below:

With renowned fashion houses like Aarong who have regional representative and

showroom located at the Center, we will place our weekly and monthly reorders with them and review new materials.

Also as we have made collaboration with a Garments Industry who will ensure the ready to order products & Innovative designs that we are offering.

The Eid-Ul-Fitr, the largest festival for Bengali people and apparel featuring the latest

collections of all brands will be presented of which we assure that most will have an unique appearance & also our unique attractions for our customers.

All orders will be placed bearing Eid in mind. We will also work to solidify our

relationships with sales representatives and vendors so that we may achieve decreased cost of goods. Our competitors, (both direct and indirect) purchase from the same sources and we believe that through marketing programs and strategic alliances we will begin to gain a competitive advantage.



TECHNOLOGY:

Retail apparel establishments have a tendency to have a high number of SKU's because of the level of inventory. It is imperative that an advanced inventory and point of sales program be utilized to maintain stock levels and track sales. Our business plan will be generated and reviewed to ensure all financial goals and objectives

are being reached. It will allow us to make the most of our limited marketing budget by focusing our communications on our target markets and enhancing our marketing knowledge. FUTURE PRODUCTS:

As we achieve and exceed our sales and profitability goals, our shop will add other products to the existing product line and our own personal in-house label of clothing that will include New Shoes, Bags, Belts, Moneybags and Socks for women and men. We will expand our line of

brands with those that have been repeatedly requested by our customers.

MARKET ANALYSIS:

The primary target customer of Boutique Gallery will be the local people in the Dhaka region. As we are situated in the epic-center of the business community we believe they will make up the largest percentage of our customer base. The secondary target customers are the NRBS. As the Nonresident population continues to

grow rapidly in various parts of the world we expect to receive the patronage of them as they are very loyal to Bengali apparel. The last target customer of Boutique Gallery is listed as other. As popularity about the store increases we expect to see an assortment of curiosity seekers as well as seasonal purchasers

during festival season. SWOT ANALYSIS:

A. Strength:

1. Premium price charged to reflect innovation and creativity.

2. High quality raw materials are collected from renowned fashion house.

3. Have our own Garments to support the trends & to develop new innovations.

4. Timely delivery for ordered products.

5. The location of the shop is renowned & very much favorable.

B. Weakness:

1. Being a new entrant is one of the weaknesses of the boutique shop. 2. It has no brand or image.



C. Opportunity:

1. A partially fulfilled customer need is a great opportunity for the shop.

D. Threat:

1. Increasing market price of raw materials and labor.

2. Increasing so many boutique shop.

MARKET SEGMENTATION:

The population of Dhaka is concentrated heavily therefore leading to the highest concentration of our customer base. The last area of potential customers is labeled as "other." Because ThisShop offers a variety of

innovative and creative apparel, along with accessories and gifts we feel that we will attract many curious shoppers. Our ambience and customer service will make them repeat customers.

CUSTOMERS

Potential Customers Growth

Local People 10%

NRBs 15%

Other 10%

Total 35%

1. Target Market Segment:

The goal of the Boutique Shop is to serve the local community that has difficulty finding innovative clothes. It will also serve the NRB community. Both of these markets are underserved in the major boutique retailer outlets.

We are encouraging students to take part-time jobs at our Shop which will directly have an impact on the Teen-Agers & students.

We are encouraging costumers between 17 to 50 years old.

Mostly Middle class costumers.

The colleges, corporate houses, public events, games, etc. Expansion of business in

all over the country and to export in near future



2. Market Needs: There are several important needs in the boutique business that are being either

underserved or not met at all. The Boutique Shop plans to meet and service those needs.

a) It will provide a large assortment of sizes to compliment the various body shapes and sizes of the local community.

b) Focus and attention to customer's personal preferences and customer retention will

be given high priority. Because of the high rate of employee turnover at major mass retailers, customer service and personal detail has been lost.

3. Market Trends:

Millions of people around the world instantly recognize and identify with traditional apparel.

Our traditional clothing has survived many eras. There will always be a future for traditional apparel. Within the last two years the traditional look has made a comeback in the fashion industry. this boutique intends to use its place in the community to heighten the awareness of the Bangladeshi culture.

4. Industry Analysis: Boutique shops fall within several kinds of stores:

Small Specialty Stores: The majority of boutique is sold through small family-run specialty stores that are located in or near neighborhood communities. Dhaka

boutique is an example of this type of store.

Large Multi-Owned Retailers: These large stores mass market and sell to hardcore

enthusiasts as well as the local tourists and seasonal purchases.

5. Main Competitors: We have many competitors as we located our shop at Basundhara City Shopping Complex. There are many branded boutique houses in Basundhara City Shopping Complex. Such as Yellow, Westecs, Eastasy Fashion houses etc. So these are the branded

boutique houses which the customers prefer first. We have to compete with them.



6. Strategy and Implementation:

Our goal is to provide apparel to the underserved market of the community who desires differentiated cloths. The major boutiques have left a hold in this market by not providing differentiated products by focusing on customer preferences. Our intention is to gain 60% of this market share by focusing on our niche positioning,

neighborhood location, brand that we sell, hospitality and special promotions.

Moreover, to do so we wish to excel and survive the cut throat competition is our exceptional and infallible customer services

No need to register to place an order

Online shopping Facility.

Gift certificates & Raffle Draws every year.

Item availability as per customer desire.

Payment through VISA, Master Card, AMEX and Paypal

Air packages shipped within 24/48 hours

Flexible return policy

7. Marketing Strategy: Our marketing strategy will focus heavily on sales promotion, niche positioning in the market and customer service with loyalty and retention in sales. a) The marketing budget will not exceed 5% of our gross annual sales. b) Our promotions will always stay in tune with our company objectives and mission

statement.

8. Positioning strategy: For the more full-bodied individual seeking creatively designed apparel, Itwilloffer brand traditional wear in a larger assortment of styles and sizes thataren't always readily available in the mass apparel retailers.

9. Pricing Strategy:

It will maintain a premium pricing strategy. We base the product lines that wecarry on their reputation and quality as clothing. Most of our lines come with a suggested retail

price that we will follow. We will also utilize the standard practice of key stoning as well.

10. Promotion Strategy

The shop will follow an aggressive yet creative promotional plan. This will allow us to focus directly on our target customer while still being conservative with our advertising money.

a) A press release kit will be sent to all major media outlets in Dhaka highlighting the

grand opening of the shop in the city. This kit will include a press release, pictures of

the interior space, color postcard/flyer, and a business card. b) 500 4x5 color flyers/postcards will be distributed throughout the city at local clubs,

colleges and universities.



c) A direct mail program that will further focus on and target the top 50% customer base with special in-house sales and promotions.

11. Distribution Strategy:

Our retail location will be the foundation of building our customer base. We will also manage a direct mail program that will focus on our top 50% customers spotlighting any

in-house sales and promotions. Also for District wise distribution we have made sure to send those through postal service like S.R. Paribahan.

12. Marketing Programs: Our Marketing program consists of 2000 full-color postcard flyers with a 10% coupon will be distributed throughout Dhaka two weeks prior to the grand opening event. We are opening our personalized Web Page for promoting our products & have our own

facebook page to inform about our products.

13. Sales Strategy: We will offer a 14day return/exchange policy to build trust with our customers and

maintain retention and loyalty.

14. Budget Forecast:

It has planned for a steady growth for the first year as we build name recognition and status in the community. In the second and third year we look to see an increase of revenue of 20% as we gain a larger percentage of the market share and increase our customer base beyond the southwest part of the city.

Item wise Sales by 1st Year

Item Revenue (tk)

Saree 110,000

Salwar Kameez 220,000

Kids' Item 85,000

Mens 70,000

Bed cover 60,000

Cushion cover 78,000

Curtain 62,000

Others 15,000



MANAGEMENT SUMMARY:

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. We will expect a high degree of customer service skills and personality as this is essential to our success.

1. Organizational Structure: The Shop is a small business and therefore requires a simple organizational structure. All decisions are made in-line with the company objectives. Employee tasks are

delegated based upon their level of expertise, creativity, strengths and weaknesses.

2. Personnel Plan: The personnel plan is included in the following table below. There will be three full-time

employees and seven part-time employees working 20-30 hours per week. All employees 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.

Personnel

FINANCIAL PLAN: The growth ofthe Boutique Shop will be moderate and the cash balance will always be positive. Being a retail environment we will not be selling on credit. We will accept cash. Later we will accept checks, and all major credit cards. Marketing and advertising will remain at or below 5%

of sales. We will continue to reinvest residual profits into company expansion, and personnel.

1. Important Assumptions: It does not sell on credit nor does it offer always at this time. We accept cash. All sales

revenue will be deposited in our business checking account within 48hours. Our business checking account will be with HSBC Bank.

2. Projected Profit and Loss:

The following chart and table will indicate projected profit and loss.

FY 2016

Full-time position Tk. 20,000

Part-time position Tk.28,000

Total People 10

Total Payroll Tk.48,000



Profit Yearly

3. Income Statement

Sales

700,000

Saree 110,000 SalwarKameez 220,000 Kids' Item 85,000 Mens' Item 70,000 Bed cover 60,000 Cushion cover 78,000 Curtain 62,000 Others 15,000

Less: Cost of Goods Sold

384,000

Direct Material 206,000 Direct Labour 144,000 Factory Overhead 10,000 Factory Rent 24,000

Gross Profit

316,000

Less: Operating Expenses

120,800

Showroom Rent 36,000 Staff Salary 48,000 Maintenance Expenses 4,000 Utilities 4,800 Stationary 3,000 Depreciation 19,000 Advertising Expenses 6,000

Net Profit

195,200

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4. Projected Balance Sheet: The following table explains the projected balance sheet.

Assets

AMOUNT Liabilities

Amount

Machinery 100,000

Capital 386,000 Less:

Depreciation 19,000

Add: Net Profit 195,200

81,000 Net Worth

581,200

Cash

393,000 Creditor

150,000

Accounts

Receivable

157,200 Inventory

100,000

Total

731,200

731,200

RISK MANAGEMENT: The risks that may occur in this project are:

1. Pure Risk: There venues and cash inflows of the project may be lower than the expected in

different years.

2. Systematic Risk: Political changes may hamper the production of the project.

3. Unsystematic Risk: Workers may go for strike, which may hinder production process.

4. Market Risk: Macroeconomic factors like inflation can have an impact on the project and

fluctuation of demand. Cost reduction and increased production may be a way out but it

will become difficult to maintain quality.

5. Instrumental Risk: The machineries may go out of order any time. So the business runs the

risk of machinery shortages. CONCLUSION: The plan for the boutique shop has been designed bearing the demand for innovative clothing in mind. Such a plan is also judged financially and market projections are included.

project report on boutique shop

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