MKT Plan Final

8/8/2019 MKT Plan Final

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2010

Fashion InnMarketing Plan

Presented To:Mr. Nadeem Iqbal

Presented By: Asma Rasheed (10302)

Khurram Qayyum (10304)

Muhammad Bilal (10305)

Hafiz Salman Ahmad (10314)

Hina Siddique (10318)


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Marketing Plan

IN THE NAME OF ALLAH

Who is Beneficial and Merciful all praises are for Allah,Who is the kindest, the

merciful and feeds the whole UNIVERSEand owner of the day of Judgmentwe

bow our heads before you and request help from youguide us to the straight path

of those to whom you have favored not of those who select the wrong way to

whom Allah Annoyed.

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ACKNOWLEDGEMENT

First of all, we would like to offer our humble supplements to ALIMIGHTY ALLAH, THE

MOST MERCIFULL AND THE MOST COMPASSIONATE. We have no words to express

our deepest sense of gratitude to HIM who blessed and enabled us to complete this project. We

offer our humblest thanks from the deepest core of our hearts to the Holy Prophet Hazrat

MUHAMMAD (P.B.U.H) who is, forever a torch of guidance and knowledge for humanity as a

whole.

We also thank to our parents whose prayers are the key assets for us. We also thank to our

friends and brothers and sisters whose prayers and their moral support was with us. We say

special thanks to our teacherMr. Nadeem Iqbalwhose kind supervision is a blessing of Allah

for us, otherwise we could not be able to complete it.

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Table of Contents

Executive Summary .... 4

Our Business Plan ... 5

Industry Analysis 6

Competitors Analysis .. 7

Marketing Segmentation .... 8

Products 9

Marketing Plan ... 13

SWOT Analysis ...15

PEST Analysis .16

Product life cycle .17

Sales Strategy ..... 18

Start up Expense .... 19

Marketing Expense Detail ..20

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Executive Summary

The world of business is changing very rapidly, and companies that do not adapt to these

changes, could quite possibly find themselves marginalized by stronger competition. The

effective use of technology is an absolute necessity for any business that desires to stay

competitive.

Leather industry, including leather products, is the second largest export earning sector after

textiles in Pakistan. Currently, this sector is contributing around $700 million a year but has the

potential to multiply volume of exports with the improvement of quality and diversification in

different range of products, specially garments and footwear. Basically, it is a job-oriented sector

providing employment to a very large segment of the society besides earning foreign exchange

for the country.

During the current financial year, the shortfall in Leather and Leather products exports was

started because of the leather manufacturers were facing liquidity shortage as their funds wereblocked in stocks of leather garments production. In addition the duty drawback rates on both

finished and leather made-ups were slashed; thus, further frustrating problems for exporters

hampering the sector to reach the target. Leather and Leather garment industry of Pakistan is

confronted with various challenges to survive in international market. On top of them is the use

of Hi-tech for quality products and availability of skilled manpower to fulfill the needs of the

world market.

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OUR BUSINESS PLAN

As of now, there are many new established businesses here in Pakistan but only few really

satisfy needs and expectations of consumer. From our thorough search of a new business to

answer consumer needs we come up with a business which is a combination of merchandise and

production.

It is a leather outlet that will be situated in an aristocratic area M.M ALAM Road, Lahore.

Finished Leather and accessories outlet has never been established before in the history of

Pakistan. This outlet will be fully equipped with leather sheets, bags, shoes, and all garment

articles which are displayed in display boxes, hanger as well as we will provide the customers

our colour book and latest article. Customers who face the complexities to buy unique and fancy

leather in Pakistan will be able to choose among the latest collection at a very suitable and

economical price from our outlet that will be very low as compared to our export prices. The

name of our brand will be

Fashion Inn

(Inspire Your Life Style)

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Objectives

To maximize the profit within first year.

To provide customer service and increase the number of clients

To create product based retail store whose goal is to exceed customer`s satisfaction

To develop a start-up business and creating its own cash flow

Key to success

The key to success is to meet the demand for the fancy leather and leather accessories store with

a wide selection and focus on customer attention. Most importantly always stay on top of the

latest trends and styles in leather industry.

Mission StatementOur policy is to meet the expectations and imagination of our customers. We strive for

continuous improvement in all areas and maintain our customers. Our service will exceed the

potential of our customers.

Vision Statement

Let your eyes run over the supreme surface of the leather fashion experience the charm of a

living structure, combine the different textures and colors of the latest collections and let yourself

be inspired to new creation by the infinite richness of the variety of leather articles.

Core values

Respect

Honesty

Equality

Industry AnalysisLeather Inn is the first outlet in Pakistan that offers huge range of leather articles in sheet form

that would be convenient for the customers so that they could choose the leather articles in sheet

form as well for exporting and personal use for accessories.

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Business trend/ future need

Leather product is a fashion symbol for teenager and youth generation in the western world like

USA, Canada, Germany, France and Italy. Now in these days every business is facing decline

due to the global crisis. Leather products are treated as fashion symbol and to protect the bodies

against cold. So we have forecast that the future need/trend is bright due to the above two

reasons.

Total Market Size

95% of the leather garments manufactured in the country are targeted towards exports.

In 2008, an estimated 10 million pieces of leather garments were exported from the

country.

Local consumption of leather garments is minimal and is estimated to be less than 90,000

pieces per annum.

Target Customers

Our target will be youth, Lower-middle class to upper class and people from the Showbiz

industry.

Competitors Analysis

It is very important to analyze the competition environment of the industry in order to compete

successfully. It is good for strategy making to identify the strengths and weakness of competitors

and try to differentiate itself from them. That is our advantage for having no competitors yet,

who is offering such a wide range of fancy leather articles and accessories.

We have only international competition with

China

Italy

Spain

Turkey

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The Rexene sheet makers are also main competitors in the national market and international market.

Market segmentation

Market is divided into two major segments as

National market segmentation

International market segmentation

Both further divided into following

Individual/ single consumer

Business customers

Individual consumer are those who will purchase small amount of items for their personal use and

business customers cover all the wholesalers, retailers and others business who will sell them to their

customers.

Market/ industry forecast

Local industry is facing difficult times today. During July-November 2008-09, the leather exports of

Pakistan faced a decline of 27 percent while India, which exported 43 percent more leather garments,

witnessed 27 percent increase in its leather exports during the same period. Indian government is giving

rebate to the exporter so it decreases the cost of producers. Global recession is also another reason for

decline in exports but now government of Pakistan is also thinking about rebates and tax relaxation to the

exporters. So it can boost our economy as well as leather industry particularly exporters.

Basically demand is divided into two parts as

Seasonal demand

365 days demand

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Seasonal demand include our garment products because of the short winter season in our country but

other products such as Shoes, Bags, Wallets, Furniture upholstery and Leather Sheets.

OUTLET PURPOSE

Fashion Inn is a furnished upscale leather store in M.M. Alam Road, Lahore. The company will

start with 2 months of inventory on hand for finished leather, shoes and accessories because this

will help to generate revenue. The opening day`s cash on hand balance will be one million

(1,000,000) rupees. ABC Leather co. is exporting (15, 000, 00 ft2) as per 3$ us dollars while the

actual cost of goods sold is about 1 $ us dollar and that is a huge profit.

Outlet ownership

Fashion Inn is a sole proprietorship owned by ABC Leather Co. where our team will be

responsible for daily management, sales, marketing, and development of the business.

Suppliers

Fashion Inn will accomplish this by having one size per style in stock as a demonstration model.

Fashion Inn will then order the style in the needed size and it will arrive within two days. This

will be accomplished with the help of our own company ABC Leather Company being Fashion

Innsupplier of finished leather and products. ABC Leather Company is in the heart of the most

important centre of shoes and in contact with the best shoes designers, thats why we will always

have top articles in fashionable colors.

Products

Fashion Inn will sell latest and unique articles of finished leather in all fashion shades, shoes,

bags, belts, garments and upholstery

The products are given as under:

Finished leather

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Marketing Plan

Fancy articles

Ladies Foot wares

Sandals

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http://cdn1.ioffer.com/img/item/120/457/165/Ukyp.jpghttp://images.google.com.pk/imgres?imgurl=http://z.about.com/d/shoes/1/0/I/e/patent_leather_sandals.jpg&imgrefurl=http://shoes.about.com/od/womens_shoes/ig/Womens-Sandals.-0Rk/Patent-Leather-Sandals.-0Rz.htm&usg=__e-D6aJ6mZdC-dvlWt6Sj1BJMdjw=&h=360&w=480&sz=20&hl=en&start=31&um=1&tbnid=qi7Criba9pO5yM:&tbnh=97&tbnw=129&prev=/images%3Fq%3Dleather%2Bsandles%26ndsp%3D20%26hl%3Den%26sa%3DN%26start%3D20%26um%3D1http://images.google.com.pk/imgres?imgurl=http://www.reef-sandals-online.com/images/reef_sandals/leather_slap.jpg&imgrefurl=http://www.reef-sandals-online.com/reef-leather-slap-sandals.htm&usg=__bvkDgxKNuvirNk6GpHwDp-1Teu8=&h=350&w=350&sz=10&hl=en&start=6&um=1&tbnid=b9m-XeDxSbt5zM:&tbnh=120&tbnw=120&prev=/images%3Fq%3Dleather%2Bsandles%26hl%3Den%26sa%3DN%26um%3D1


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Bags

Men Shoes

Garments

Upholstery

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Belts and wallets

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Marketing Plan

Product

Fashion Inn is a furnished upscale leather store and provide the online purchasing facility. It

provides wide range of leather articles such as Leather Sheets, Shoes and Garments, fashion

articles, bags, wallets etc.

Pricing

We have two type of customers individual and business, so different pricing strategy for both.

We are offering customize products for individual consumer so we will charge premium price.

Value based price

According to the customization in products, customers can add new attributes and their favorite

design so we can charge value based price at every customize product.

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Cost based price:

Its another pricing option for us in which certain percentage of profit is charged at cost. We will

charge 20 percentage profits at any cost.

Distribution

We will focus on direct distribution through any courier/logistic company to provide products

delivery at given time.

Promotion

We will use different promotion tools for our customers.

Bill Boards & Newspapers

Bill Boards & Newspapers are the best channels to promote our outlet.

Showbiz magazine

Leather goods are fashion symbol for teenager. We are focusing youth/teenagers (who like

fashion) biker jacket, wallet, belts and gloves are our main products so we will promote our

products in showbiz /fashion magazine.

Online Marketing

We are dealing online shopping so it is necessary to advertise our products on different social

media sites like face book, tagged, my space and twitter so it is good promotion tool for ourproducts.

The marketing communication mix and the promotions will consist of advertisements which will

be done online and through radio shows. Sales promotions will be announced through special

SMS services. Posters will be made online and will be placed on leading websites.

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Placement

We will open our first outlet in Lahore. It will be situated at M.M Alam Road. If we succeed we

will soon be starting in other major cities.

Product forecasts

As we have dived into segments we believe there will be increasing demand in leather shoes

category but leather jacket, gloves and other leather products may not have great demand in the

local market. On the other hand there is demand of Pakistani leather products other than shoes is

huge. We have flexibility in our operation to deal with flaunting demand in both market and

their demand

SWOT Analysis

Strength

High Growth

Ready availability of highly furnished products Large finished material base

Policy initiatives taken by the Government Capability to incorporate new technologies and handle large projects

Continuous emphasis on product development and design up gradation

Weakness

Lack of warehousing support from the government

International price fluctuation

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High inflation resulting in high labor & other charges

Lack of strong presence in the global fashion market

Unawareness of international standards

Opportunities

Rising potential in the domestic market

Growing fashion consciousness globally

Use of e-commerce in direct marketing

Threats

Major part of the industry is unorganized

Limited scope for mobilizing funds through private placements and public issues (manybusinesses are not according to modern standard)

High markups in obtaining bank loans resulting in high cost of private borrowing

Strict international standards High competition from West

PEST Analysis

Political stability

The political conditions are as worse as it could get. You turn on the TV and all you see

that 100 people die in a bomb blast. The government of the country changes nearly

every two three years. There are no specific control on marketing ethics which can be

taken as a good and a bad thing for our business. Bad control on the tax regulation system

and it takes a lot of time to register a business and thus registration will be a major

problem although checks and balances on this are limited. Most people we target or

mostly the youth is not that much influenced physiologically by the political condition

but their spending power decreases for sure. So pricing our product will be an issue. It is

the Islamic republic of Pakistan but the laws are secular in nature and thus mostly the

fashion industry does not have to comply to religion or culture for that matter which is

actually good and thus different designs can be made.

Economic factors

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It is extremely difficult to get loans and the loans we get are on a pretty high interest rate

and thus there is going to be a shortfall of investment. The cost of production is growing

day by day and thus the raw material is becoming expensive although more people are

willing to work for a low price due to fewer jobs. So economically there are again good

and bad things related. Prices of petrol and transport are increasing thus delivery cost also

increases.

Socio cultural Factors

Cultural clothing and wearing is still in demand once one looks at the wedding side

although western clothing is mixed with our culture in weddings as well. Women are

more easily wearing fashionable clothes that are against the traditional culture. This again

is a good thing because one get a chance to play with designs. More people are liberal

and thus more chance for innovation. People are more status conscious and want to go for

quality as now we have more informed people. Because we have the inn crowd from

different schools and universities as our brand ambassadors we can easily attract thestatus conscious.

Technological Factors

This is the strong part as now websites like ours can be easily manageable with the

technology and fast internet services of today. There are new softwares that can make an

easy to use website for the consumers and they are going to select their own dresses as

well. Online banking and database services makes our job easy to sell online and make

consumers place orders online. Plus FACEBOOK and sms promotions strongest ways to

promote our sort of a brand. Now even in a country like Pakistan one can easily getconsumer involvement and feedback by online surveys normally this is very important.

E-marketing is still new and thus there are a lot of opportunities related to it.

Assessment of risk

Weaknesses of business

Shortage created in local market due to exports of raw and finished leather

Requirement of high working capital

High cost of electricity

Wastage due to unskilled labor

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Political Instability

Product Life Cycle

Fashion Inn product life cycle will be at the introduction stage and it will be the pioneers in

introducing such a technology. Profits are usually very low or even negative at this stage.

Fashion Inn will focus on buyers who are ready to buy the products and belong to a high

income group and middle class as well. At this point Fashion Inn will incur high costs.

Pioneers usually gain the greatest advantage. People always remember their name as the firstcompany to come up with such an innovation. The pioneer brand also establishes the quality that

specific product or service should possess. Fashion Inn will also enjoy trend leadership. But if

Fashion Inn fails to position itself properly in the market its business will be a flop plus if the

people of Pakistan do not like the new trend then again the business wont survive for long.

Fashion Inn should have a very strong management which will have a fair idea how to

introduce their product in the market and how to make the people accept it. Informative

advertisement is a great way of introducing your products.

Strategy and Implementation summary

Fashion Inn will provide a competitive frame for its sales and we would offer leather on very

economical prices. ABC Leather co. is exporting (15, 000, 00 ft 2) as per 3$/ft2 us dollars while

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Marketing Plan

the actual cost of goods sold is about 1$/ft2us dollar and that is huge profit. Fashion Inn will sale

its leather and products in Pakistani currency instead of in us dollars on very economical rates. If

the cost of our goods sold is about Rs/-80 and then we will sale it at Rs/-100 in Pakistan that will

be a great attraction for the customers and it will be helpful to generate more customers and

revenue as well.

Let suppose If we sale about (200,000 ft2/ year)at outlet by getting our profit margin as Rs.20/ft2

then we can get Rs. (400,0000) in a year easily. Thus we can be able to earn our estimated cost in

the first year of the business that has been spent on starting for this business.

Sales strategy

Fashion Inn sales strategy will be based on display and visibility. A high visible outlet with

attractive and unique products catches more attention. This is especially in the case of women`s

shoe and fashion accessories. We will provide complete range of products and prices will be

reasonable. Once a customer comes in the door, they will be greeted and assisted as much or as

little as they wish. We also plan to have software to collect customer information such as:

Names, addresses, email addresses and phone numbers

What type of the leather or products the customers prefer.

COMPETITIVE EDGE

FASHION INN will offer a sales promotion on special occasional basis like Eid, New Year

arrival, on summer and winter season such as

Buy one, get one at half price

Buy one, get one free

Half on products on the season end

Staff

when the company begins the start-up phase, I want to hire an assistant to basically be my right

hand and another person for coverage and make sure that the hired persona are trustworthy, have

great attitude and can provide excellent customer service.

Start-up requirements/budgets

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Marketing Plan

Fashion Inn will acquire the following start- up cost in Pak- rupees.

EXPENSES

Start-up Expenses (In Pak RS)

Legal 40,000

Credit Card Set-up 17,000

Cargo Account 25,000

Supplies (special made packing boxes, invoices, display boxes etc.) 300,000

Marketing Expense 1,000,000

Total Start-Up1,382,000

Start-up Assets

Cash Required 1,000,000

Start-up Inventory 1,250,000

Other Current Assets 450,000

Long-term Assets 0

Total Assets 2,700,000

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Total Requirements 4,082,000 /RS

Detail of Marketing Expenses

Website Start-up 100,000

Advertisement (Cable, Newspaper, FM etc) 500,000

Promotion 200,000

Traveling 100,000

Sampling 60,000

Stationary & business cards 40,000

Total Marketing Expenses 1,000,000

References

www.dada.com.pk

www.stefania.it

www.wikipedia.com

www.google.com

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http://www.dada.com.pk/http://www.stefania.it/http://www.wikipedia.com/http://www.dada.com.pk/http://www.stefania.it/http://www.wikipedia.com/

Documents

MKT Plan Final