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Closet
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MGT368. SEC: 04
BUSINESS PLAN
WEDDING CLOSET
Prepared For:
ABU SAAD SHENZANUL HUQ
LECTURER
SCHOOL OF BUSINESS & ECONOMICS
NORTH SOUTH UNIVERSITY
Prepared By:
Name
ID
1210538030
G.M.AZHARUL HOQUE
1230158630
FAHMID AHMED
1231250030
1230126030
MD.TANJIL HOSSAIN
1221075030
Acknowledgement
Our first thank goes to the almighty Allah for bestowing us the patience and courage to finish
this huge task within its deadline. And then we would like to gratefully and sincerely thanks to
Abu Saad Shenzanul Huq (ABU) Sir for his guidance, understanding, patience, and most
importantly, his lots of help during the whole semester. He encouraged us to grow as an
independent thinker because he lets us to choose our own business ideas. Without his support
and confidence in us, it would not have been possible to complete and submit this business
report. We would also like to remember the smiling face of all the people who give us their
valuable time. All in all it was a wonderful experience to work as a team in doing the study and
preparing this report on such an important issue. Last but not the least we are also grateful to
some of our friends and well-wishers who inspired us to give an information of this report.
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Executive Summary
This project was undertaken to understand the market of wedding arrangements and its market.
Our companys name is Wedding Closet and we will be stared our activities from 2016 with a
vision of helping Bride and Bridegroom feel special and giving them the confidence that they
need to wear in most important dress of their life, is what makes us happy and our goal is to
provide exceptional customer service, high quality and affordable prices.
We come up with the idea of manufacturing and service business which is Wedding dress where
our customers will inform and tell us about their own design of wedding dresses according to
their taste and fashion. Moreover, Wedding Closet designers will act as a consultants in helping
bride and bridegroom to find their dream wedding dress based on location of the wedding, color,
fabric preference and their desires for future wedding dress. To bring this newness and be
differentiated from competitors, this company will take help from fashion designers and
expertise from other countries and be unique in wedding closet market.
So to provide a unique service and exclusive design Wedding Closet started their journey along
with so many competitors like Wedding Bee, Canvas etc. But providing a high quality service
and uniqueness with an affordable price and in an organized activities. Wedding Closet company
will be profitable and hopefully in the future it will be expand its business also in globally.
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Table of Contents
Introduction ................................................................................................................................................. 7
Name and address of the business ......................................................................................................... 7
Name(s) and address(s) of the principal(s) ........................................................................................... 8
Nature of the business ............................................................................................................................. 8
Statement of the financing needed ......................................................................................................... 8
Statement of confidentiality off report .................................................................................................. 9
Business Model:......................................................................................................................................... 10
Business Model CANVAS: ................................................................................................................... 10
Pricing Model: ....................................................................................................................................... 13
Social Goal ............................................................................................................................................. 14
Financial sustainability ......................................................................................................................... 14
Sustainability ......................................................................................................................................... 14
Eco-friendly: .......................................................................................................................................... 14
Ethical: ................................................................................................................................................... 15
Business Environment Analysis:.............................................................................................................. 16
PESTEL Analysis: ................................................................................................................................ 16
Porter's five forces: ............................................................................................................................... 19
SWOT .................................................................................................................................................... 21
Stakeholders Analysis ........................................................................................................................... 24
Description of ventures ............................................................................................................................. 25
Product(s)............................................................................................................................................... 26
Service(s) ................................................................................................................................................ 26
Size of business ...................................................................................................................................... 26
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b.
c.
Technology utilization................................................................................................................... 31
Product: ......................................................................................................................................... 31
b.
Price: .............................................................................................................................................. 32
c.
Promotion: ..................................................................................................................................... 32
d.
Place: .............................................................................................................................................. 33
e.
Packaging: ..................................................................................................................................... 33
f.
g.
People: ............................................................................................................................................ 34
b.
c.
d.
e.
A.
B.
C.
Contingency plans:........................................................................................................................ 38
Financial plan:........................................................................................................................................... 38
A.
Assumptions: ................................................................................................................................. 38
B.
C.
D.
E.
F.
References .................................................................................................................................................. 52
Appendix .................................................................................................................................................... 54
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Introduction
We come up with the idea of manufacturing and service business which is wedding dress in
Bangladesh. A country like Bangladesh has emerging demand of wedding dress because now a
days people are getting more conscious about their style statement during one of the most
important event of their life and that is marriage ceremony. And thats where we come in.
Wedding Closet is our company where our customers will inform and tell us about their own
design of wedding dresses according to their taste and fashion. Here we will employ famous
wedding dress designer of our country who will listen to the customer design and our service will
be to manufacture the product according to their own specification. Moreover, our designers will
act as a consultants in helping bride and bridegroom to find their dream wedding dress based on
location of the wedding, color, fabric preference and their desires for future wedding dress.
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Partners
Address
Fahmid Ahmed
MD.Tanjil Hossain
Our nature of the business is more service oriented as we are taking orders from the customers
for the wedding dresses and then producing it according to the needs and wants of our valuable
customer all over Bangladesh. As the trend of stylish and elegant wedding dress has already
emerged in Bangladesh, people are finding it difficult to obtain their desired wedding dresses for
marriage ceremony. In such situation, Wedding Closet will appear to provide the consumers with
reliable, trustworthy and professional services and provides goods for Bride and Bridegroom
wedding dress like for Female Sharee, Gown and for Male Sherwani, Suit.
The initial investment for the Wedding Closet will be BDT 10,000,000 and each partner will be
providing BDT 1,000,000 and our company is seeking a loan/credit line in the amount of
BDT 5, 000,000 for the purpose of expanding the business. Expansion plans include the purchase
of manufacturing plant and taking rental office, purchase of delivery truck, and the hiring of
additional personnel including fashion designers and other staff.
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A non-disclosure agreement (NDA) is a legal contract between at least two parties that outlines
confidential material, knowledge, or information that the parties wish to share with one another
for certain purposes, but wish to restrict access to or by third parties. It is a contract through
which the parties agree not to disclose information covered by the agreement. An NDA creates a
confidential relationship between the parties to protect any type of confidential and proprietary
information or trade secrets. As such, an NDA protects nonpublic business information.
Wedding Closet will sign a non-disclosure agreement with our employees to protect our business
secrets.
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Business Model:
Business Model CANVAS:
We have planned a brief business model on our wedding dress business which consists of the
various major components which runs our business structure. We have created our very own
platform and hence we believe we would be able to provide a strong value to our customers
especially who are recently planning their wedding ceremony and prefer to make the event
memorable. There here are some of the core elements which would make our enterprise work:
i. Customer Segments: Since wedding dress has a huge demand within the trend of
Bangladesh and especially within the young generations so we have divided our
customer groups into specific customer segments. There are basically various
segments including the nice market, diversified market and also mass market. So we
have actually targeted the mass market of Bangladesh since wedding is a common
phenomenon in our country especially within the middle aged and youths. We would
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also segment our customers based on the multi platforms of newspaper readers and
also the people who watch advertisements. Since we would be advertising our
products into the newspaper and other commercial outlets so a multi-platform of
channels can help us to target a distinct group of customers.
ii. Value Proposition: This building block of our business canvas model solely would
describe the bundle of products and services that creates a strong value or benefit for
our customers. This grid would specify the core customer needs in the wedding dress
market and also its core proposition. Our products would have multiple values which
could be distributed to the customers for satisfaction. Firstly, we would have the
value of convenience to the customers, since we would have a variety of choice for
the customers in terms of the wedding dress type, appearance, color and also the
number. The design of our products is another key value of satisfaction triggering the
needs of the customers. We would have a number of designs on display for the
wedding costumes and also a variety of creative, posh designs from which the
customers would be able to choose from. Therefore, the value of newness would also
be raised here since we are providing a variety design which the wedding customers
might like. Lastly, cost reduction would play another huge role since we would be
reducing our dress price as the business period proceeds.
iii. Channels: Another very important grid of our business plan, since the delivery or
distribution is a vital part for the success of the business. Therefore we would have a
number of delivery system for the customers including the online websites, partner
stores and also direct stores. For the online website delivery we would be offering a
most effective delivery system where we would guarantee an efficient delivery
system within a short period of time. Our employees would be trained that way with
which they would be able to deliver the products to customers fast. We would also
have our own stores around the city as the business progresses. Therefore we would
be directly delivering the products to customers through our customers. As the
business would progress, we would also try to make agreements with the other cloth
manufacturers and retailers as partner stores.
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iv. Customer Relationships: Maintaining a proper relationship with our key customers is
another very important motive for the business in the short and long run, to keep a
sustainable sales growth. Therefore in our business model this grid explains the types
of relationship we would try to maintain with our key customers. Our relationship
would be mostly personal and also automated. As the personal relationship would
progress, we would also try to maintain our automated relationships through various
online social media pages like Face book fan page. Our main motive to keep such
relationship is to retain our old customers, and acquiring some new customers who
would purchase the wedding dress. Lastly by means of such relationships we plan to
exceed our sales of the new types of wedding gowns offered by us.
v. Revenue Stream: Under this grid we would show our core revenue structures, or the
value of the sales. Basically, under this grid we would normally include the type of
revenue which we plan to achieve from our business. Our revenues would be mainly
the kind of transactional revenues which we have achieved by directly selling our
clothing items to the customers. The revenue would also be earned through various
advertisement techniques mentioned in the marketing plan.
vi. Key resources: Under this grid we describe the core resources which help us for the
value propositions of our products. Within our wedding dress business, we include
four types of resources including the physical resources, financial resources,
Intellectual resources and finally the human resources. The physical resources would
be the manufacturing facilities and machines used in the production of wedding
clothes, the financial resources would be our market share, lines of credit, and the
various credit terms into the business, the intellectual resources would be our brand
identity, customer databases etc. and lastly the human resources would be our human
efforts into the business. All these resources would make up the core value
proposition of our products.
vii. Key activities: Our key activity would be the type of problem solving in various wedding
occasions in terms of supplying the type of dress they desire. We would try to solve
the problems customers face during a wedding session by the help of our goods and
services offering.
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viii.
Key Partners: Under this grid we show our core partners of the business and those
partners who make the business model work in the long run. Our core partners would
be the suppliers from whom we would collect the core raw materials, the various
banks from which we take loans, our landowners and also we five owners are partners
of each other who would make the business model sustainable.
ix. Cost Structure: Under this grid we show the total cost of operating the business in the
short run and also within the long run. The total cost of operating the expenses, the
total cost of producing the wedding dress and all kinds of costs related to the business
are shown here.
Pricing Model:
Pricing is an important decision for any kinds of business to sustain into the long run and
maintain steady profits and growths. The prices of the products we offer tend to affect various
factors affecting the decisions of the customers. Therefore we made a decision related to the
pricing of the goods and services which would actually serve the best to the customers especially
in the long run. In order to balance the growth of the production, distribution and sales of the
products we have decided to select a skimming price for the wedding dress when they are
offered. The skimming pricing is a policy by the producer to sell his product with initially higher
price and then decreasing it at specific rate overtime. We would be using a strategy similar to
this. In the begging of the market entry, we would be charging a price of Tk.50000 to 60000 for
our wedding clothes when offered which might be a high price in the beginning but slowly as we
understand the market more, we would be reducing the price significantly. Following this
strategy would help us to increase the return on investment and hence survive with the
competition. This strategy might be a problem for us in the beginning especially when the
demand starts to decrease for the price. This would not be a problem for us if we offer the
consumers with a very unique product and also increase the awareness of the brand. Such value
of the product will automatically provide a reasonable value for the consumers at a reasonable
price. Therefore we would be using the skimming pricing strategy in the beginning.
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Social Goal
We dont only aim to achieve sales growth through the revenue from wedding dresses or solely
sell the dress to our customers. We also want a retaining relationship with our customers and
provide them with any kinds of wedding props solutions in the long run. We believe that
weddings are long term occasions to exchange lifetime commitments in I DO vow. Therefore
we tend to fulfill this long term commitment by providing an effective long term memorable
event of wedding for our customers. From the flowers, a decoration, wedding gowns, cars and
everything has its own way to set the environment for a wedding to be successful and blessed
with various good times. We tend to keep these offers for the consumers in the long run and help
them to design their wedding program in a way that would forever help us be in their hearts and
minds. We tend to maintain a relationship with our customers in a way that can socially increase
our name and also our brand value.
Financial sustainability
Sustainability
Our dress is made in a way that ensures its financial sustainability and also the environmental
eco friendliness in which it is produced. We try to make the best possible dress which is actually
an added factor to the environmental phenomena of Bangladesh. Bangladesh is prone to a humid
weather mostly and also it is located within the tropical region. Therefore the Wedding dresses
are prepared in a way that ensures the suitability of the weather conditions. The designs of the
clothes are also with variety of colors including white, red, light purple etc. all suitable to the
ongoing environmental and climatic conditions of Bangladesh. The sustainable design
philosophy that has permeated the mainstream world of luxury fashion has also entered the realm
of bridal wear and there are now an increasing number of designers determined to make
gorgeous gowns that are financially reasonable. So by following this market trend we tend to
produce our wedding clothes which is better for the environment as a whole and also financially
sound.
Eco-friendly:
The eco friendliness is seen as the most competing factors especially in countries around the
Middle East. One pioneer example of a sustainable wedding dress producer who produces a
competing product within the UAE in terms of sustainability is Lebanese-born designer Sohad
Acouri. His clothes are designed with unique fabricated cotton, along with elaborate embroidery
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and embellishment. Acouri also manages to recycle some of his own fabrics, remolding and
reshaping them into new designs with respect to the theme of his next collection. Therefore we
are to some what inspired by such environmentally friendly and economically sustainable
productions of Acouri. Our wedding dress is although produced in a different type of
environment and also within a climatic condition distinct from the UAE, so we might have to
face some barriers adjusting to such changes. We would be using the same type of fabricated
cotton within our clothes and also an efficient recycling system similar to that of Acouri. This is
because the clothes we produce in our manufacturing facility must play a great role into the
sustainability of the environment and the reduction of costs.
Ethical:
Wedding closet will follow the given ethical standards.
Business should support and respect the protection of internationally proclaimed human rights
within their sphere of influence;
i.
Make sure that they are not complicit in human rights abuses
ii.
iii.
iv.
v.
vi.
vii.
viii.
ix.
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PESTEL Analysis:
i. Political Factors:
Business in Bangladesh becomes a challenge when there are periods of political turmoil into the
country. In various different events of political disasters we discover various business outlets
losing their sales and also closing the outlets temporarily. This is a problem for the entrepreneurs
as a whole in various aspects. Our wedding dress business might have the same types of
problems in an economy like Bangladesh during such political disasters. In various different
conflicts from the opposing political party we might be entitled to unexpected closers of our
direct stores and outlets. Even with the partner stores of different parts of the country, they might
even close which might be also a problem for us. Such political turmoil might also cause an
irregular movement of demand for wedding dresses into the country. This is mainly because due
to such political hazards various wedding occasions might get cancelled and this might result in
our sales to reduce and we might have to keep a large amount of Inventory in our ware house,
which might be obsolete if it lasts for a long time. There are various other reasons which might
be a problem for our business to sustain in the long run. Various business outlets are vandalized
due to the political turmoil, and as a result some extra expenditure can be a burden for us. If our
outlet is destroyed then we might also lose our valuable inventories and resources which could
increase the value for wedding costumes.
ii. Economic Factors:
Bangladesh is considered to be a developing country and hence the economic development is
gradually rising unlike the other developed countries. According to a recent opinion poll,
Bangladesh has the second most pro capitalist population in the developing world. Between 2004
and 2014 the aggregate real GDP growth rate for Bangladesh was 6%. The economy is
significantly increasing and is led by export oriented industrialization. For our wedding dress and
wedding planning business, in order to provide for the GDP of Bangladesh, we must be export
oriented in the long run. We will be recently starting as a small business but as our business
grows we would be producing more and contributing more to the GDP of Bangladesh. Within
the long run we must be export oriented and led to the export oriented industrialization in order
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bride might be happy wearing a pink gown. We will be designing the Bangladeshi dress
currently according to this above mentioned trend. But, as we increase our business size and go
global we will be thinking of the foreign countries type of wedding dress.
iv. Technological Factors:
Nowadays Bangladesh is experiencing the growth in the various types of modern technologies.
Almost all the citizens of Bangladesh are entitled to using at least some of the modern
technologies which we use every day. For example, the growths of social network users are
increasing day by day as most people are users of face book or at least email. Therefore we
would be conducting business by following such technological growths in Bangladesh. Almost
everyday people log into their face book accounts and receive various invitations through face
book. So we would have variety of fan pages of our product in order to increase the awareness of
our product. We would also conduct direct marketing techniques by personally emailing our
consumers and increasing the awareness. Rather than using the hard printed copy of newspaper
nowadays we experience people reading online blogs, websites and even twits. Therefore, our
marketing strategy would be designed according to this technological growth. We would be
having various blogs and fan pages as mentioned earlier. We would also encourage orders within
our business website. Customers can easily order their choice of wedding dress through our
website. So, we would heavily rely on the technological advancement of Bangladesh.
v. Legal Factors
Bangladesh government has various regulations related to the labor employment, wage rate and
other economic factors. The constitution prohibits forced and child labor. There are inspection
mechanisms to guard against forced and child labor, but resources for enforcement are scarce.
Regulations regarding minimum wages, hours of work and occupational safety and health are not
strictly enforced. Therefore all these factors would affect the type of work we would do in our
business outlets in the work hours.
Bangladesh's Constitution guarantees the right to join unions, and, with government approval,
to form a union. But some people are harassed and fired for trying to organize. With the
exception of workers in the railway, postal, telegraph, and telephone sectors, government civil
servants, military, and police are forbidden to join unions. Instead they have joined associations
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which perform functions similar to labor unions. Workers in the EPZs are also prohibited
forming unions, despite a government promise to relax this restriction in 1997.
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The bargaining power of customers is also described as the ability of customers to put the firm
under pressure, which also affects the customer's sensitivity to price changes.
The bargaining power of buyers or customers is high in Infant clothing industry because:
Customers are very price sensitive, Quality and Availability of existing substitute products.
The bargaining power of suppliers is also described as the market of inputs. Suppliers of raw
materials, components, labor, and services (such as expertise) to the firm can be a source of
power over the firm when there are few substitutes. Bargaining power of suppliers is fairly low
in the Infant clothing industry of Bangladesh as there are a lot of suppliers. We will always have
the option to switch though as there are many more suppliers in the market.
There is not that much substitute product for wedding dress. So here, the threats of substitute are
very low.
There are different competitors available in Bangladeshi market for the Wedding dress and they
are like Wedding Bee, Zaara, Manyaver, Infinity, Richman, Aarong, Kay Kraft, Ron, Nagordola,
Deshi Dosh etc.
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SWOT
Strength:
-
Preferential Tariffs and government support in cash because its new in the
market.
Best Quality
Interpersonal Relationship
Creativity
Customer Service
Initiative
Teamwork skills
Time Management
Willingness to learn
Weakness:
-
Customer disinterest
Relatively Expensive
Price Sensitive
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Shipping problems
Opportunity:
-
Wholesaling with key local market and stores including high brand markets
Diversification
Threats:
-
Economic recession
Takeover bids
Political instability
Global Inflation
Rising Competition
Changing technology
Stakeholders Analysis
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Description of ventures
The mission, vision, goals and objective of the wedding closet are described below:
Mission
Our mission is to help the customer to develop the wedding dress of their dreams, and to make
the entire wedding attire experience amazing. With the experience of our designer we will help
our customer in selecting the finest wedding dresses in different styles, sizes & price points
which will provide simply the best service.
Vision
Helping Bride and Bridegroom feel special and giving them the confidence that they need to
wear in most important dress of their life, is what makes us happy and our goal is to provide
exceptional customer service, high quality and affordable prices.
In simple terms our business philosophy is to design and develop elegant solutions for wedding
clothes with premium quality .
Our goal is to Establish Wedding Closet as the number 1 Wedding dress brand of Bangladesh
and provide the nation with most optimum quality product.
Our objective is that we have to understand the demand of wedding products in our target
market. We have to ensure the customers that our clothing products are optimum quality. We
will train our employees to develop their skills. We have to develop our plant technologies day
by day to provide our customers with good products. We have to maintain a good relationship
with our customers. Moreover, there will be Zero-Tolerance policy toward violation of the rules.
Wedding closet objectives are to conduct transparent business operation based on market
mechanism within the legal & social frame work with aims to attain the mission reflected by our
vision.
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The reason for choosing this business and probability of our success lies in the heart of todays
people of Bangladesh. Now a days people are more aware about the situation to be stylish
during the marriage ceremony. Thus the demand for more stylish and high quality wedding
dresses are raising day by day. But there are not many providers who can only provide
specialized wedding dresses. Thus we want to tap the unexploited market and we can also be the
first mover in the wedding dresses product who is only specialized in delivering high quality
premium wedding dresses in Bangladesh.
Product(s)
The products of Wedding Closet are:
Bride and Bridegroom wedding dress like: We will be engaged in producing specialized
individual specific wedding dresses. For brides we will make Sharee, Lehenga and Gown. And
for bridegroom we will be making Sherwani, Pagri and Suit.
Service(s)
Wedding Closet will provide the service of taking the orders of the valued customers and make
tailored made wedding dresses according to their taste, preference, looks, size and specifications.
Moreover we will also deliver our products to their requested addresses and it will provide a
pleasing experience to their marriage ceremony.
Size of business
Initially our business will be medium size as we will only locating our head office in Gulshan.
Here we will taking orders of the customers. Our production plant will be located in Gazipur
where we will set our production machinery and equipment for producing the wedding dresses.
In future we have plans to expand the business and locate our office in various areas of Dhaka
City.
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Background of entrepreneurs
There are five founders/entrepreneurs who came up with the idea of the business. Tanveer Rahim
Arman, G.M. Azharul Hoque, Fahmid Ahmed, Mir Araf Hossain Rivin, MD.Tanjil Hossain are
all North South University, 4th year B.B.A student. The experience of these entrepreneurs are the
knowledge of gathered from North South University and little experience associated with
clothing industries.
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Manufacturing process
The production of Wedding dress is completed in several basic processes including cutting,
sewing, assembling, decorating, and finishing the garments.
1. Fabric for a garment is stacked one length on top of another in reaches or lays that may be
over 100 ft. (30.5 m) long and hundreds of plies (fabric pieces) thick. These stacks of fabric are
constructed by spreading machines. A pattern, called a marker or cutting lay, is fastened to the
fabric with adhesive stripping or staples; the pattern includes all the pieces of the garment
carefully arranged so a minimal amount of fabric.
The fabric is cut by an industrial saw into pattern pieces. Many pieces are cut at once. Any one
of several types of machines may be used to cut out the garment components. The machine is
selected depending on the type of fabric and other considerations. These machines include band
cutters that work much like band saws, cutters with rotary blades, machines with reciprocal
blades that saw up and down, die clickers that are a form of die or punch press, and computerized
machines that use either blades or laser beams to cut.
2. The cut pieces are taken to sewing stations where operators typically perform only one
operation on one piece or set of pieces being sewn. The industrial sewing machines vary in the
type of stitch they make and the configuration of the frame. Both are factors in the manner in
which the machine sews and, therefore, in the part of the garment that can be sewn at that station.
Operator A may make only straight seams, Operator B may make sleeve insets, Operator C sews
the waist seams, and Operator D only makes buttonholes. Some machines work in sequence and
feed their finished step directly to the next machine, while others (called "gang machines") have
multiple machines performing the same operation under the oversight of a single operator.
3. The final sewing step is assembly when all the pieces put together in segments (like sleeves or
pant legs) are assembled into the final product. Either finishing or decorating is performed next
depending on the configuration of the garment. Finishing may include a variety of steps that
manufacturers call "molding"; molding changes the finished surface of the garment by applying
pressure, heat, moisture, or some combination. Pressing is a basic molding process, as are
pleating and creasing. Creasing may be done before other finishing if the finishing involves
stitching a cuff; creasing is also done before a decoration, like a pocket, is stitched in place.
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Other decorations that may be damaged by molding processes, like silk flowers or raised
embroidery may be added after the product has been finished. Completed garments are collected
by size and type and are bagged or otherwise packed.
Physical plant
The physical plant will be designed in a way that we will be to produce our wedding dresses in a
very organized manner and the infrastructure will be set up in a way that the production will be
very efficient and less time consuming. At first we will place all our machinery in the most
appropriate places so that the flow of production is in a continuous manner and it will ensure that
there is no disruption of the production of our wedding dress. Our physical plant will have
efficient supply chain management starting from receiving the raw materials of the wedding
dress and delivering the finished product to the final consumers. The whole set of machinery will
be placed in a manner so that the wedding dresses are made with so much care and love. At first
we will receive the raw materials of the wedding dresses and then they will be cut and processed
according to the customer requirement by using efficient machinery. After that it will go through
the sewing machine and other additional items will added in the accessory machine. Lastly it will
go through the cleaning and ironing machine for giving the finishing touches and it will packed
exclusively so that it can delivered to our valued customers.
Manufacture of wedding clothes calls for a wide variety of textiles, including specially treated
material, thread, zippers and other fasteners, and decorations. Most manufacturers do not make
their own textiles although they may have established relationships with textile manufacturers
who produce fabrics treated with fire-retardant, ecologically-friendly fabrics and chemically safe
dyes, soft or brushed materials for wedding clothes, and other specialty items. Patterns are also
required and may be designed and printed in house or provided by suppliers. Body shapes for
Bride and Bridegroom are standardized depending on age and weight, so manufacturers rely on
other design aspects to catch the attention of the purchaser. We will be using the following
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machines either by buying them, leasing or renting the: lockstitch machine (oil free), lockstitch
needle fit machine, 5 & 4 thread overlock, Button attach, eye let hole, button hole, steam iron
with table, single head embroidery machine, eye let punch machine, button looping machine,
fusing machine.
Operational plan
c. Technology utilization
We will be using specialized bought software for taking very specific order of the customers.
And we will be buy highly advanced equipment for the swing and cutting purpose of our clothes.
Moreover, we will also be using advanced technology for promoting our brand and products, like
social medias, TV commercials etc. There will also be an online website where the customers
can preorder their dress.
Market plan (7 ps)
Our marketing activities are related to not only the production of the wedding dress but also the
service which we cater to our customers. Therefore we have created a brief marketing plan of the
7ps of services. Here is a description of all the marketing Ps:
a. Product:
We have a variety of products in our business which includes the core product, the clothing. The
cloth would be manufactured in the production facility with our various enriched machinery. We
would be manufacturing various wedding merchandise including the bridal grown and also the
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gown of the groom. All these costumes would be manufactured with extra care and unique
designs. So our core product would be the dress which we sell to our consumers and this can
help us create value within the customers who choose to make their wedding events memorable.
b. Price:
Our pricing mechanism would be somewhat lower as the time would proceed but it would be
higher in the beginning. Our Wedding product package would be priced at a range of Tk.50000
to Tk. 60000 approximately. Like we have mentioned earlier, the type of pricing would be the
skimming pricing which is used in the electronics market. Similar to the electronics we would be
reducing the price of our products in the long run so the demand is neutralized, and we achieve
greater sales. But in the beginning of the business period we must charge comparatively higher
price but not so higher which might exceed the value. The price would be reasonably high
according to the products quality. We would try our best to provide the most efficient quality to
our consumers so we would charge a price according to that. In order to survive and understand
the competitive market we must charge this price.
c. Promotion:
There are various ways in which we would inform our customers about the market offering we
have to offer. Our promotional activities would be done to inform, persuade and aware the
consumers about the recent wedding dress offering. We would conduct our promotional
activities through online advertisements in face book fan page, websites and also within other
blogs or online portals. We would also distribute leaflets, stick posters and labels around various
places to aware about the products and services we offer. In various newspaper brands like Daily
Star, Prothom Alo etc. which the regular people prefer to read, there would be large colorful
advertisements of our product and some of our contact details with which people would be able
to reach us. If we experience growth in the long run and if we can promote a good brand name of
our product, then we would do various TVCs by hiring popular models to demonstrate our
products.
32 | P a g e
d. Place:
We have mentioned earlier in our Business canvas model about our most effective ways of
delivery. We would be delivering the product efficiently to the consumers and also swiftly. Our
channel of distribution would be online websites, own personal direct stores and some partner
stores. The products would be available in various outlets around the city. The outlets would be
nearby business areas and also within the urban areas where most of our consumers reside. Also,
our product would be directly sold to the customers as we would be the core producers of the
dress. So the delivery chain would be direct.
e. Packaging:
The product itself has a unique value proposition when they are used. But the value of the
product reduces during delivery when it is not packaged properly with protective covers or
attractive packages. So we would be strongly emphasizing on the various packages and we
would try to create our own brand name through the package we would be providing. The
package would be made in such a way that the product would be covered and protected during
long distance delivery and also it would include the name of our brand in bold colored letters
with some attractive wedding like decorations. Such package would be designed in a way that
easily catches the eye of the receiver and increase the demand for our product.
f. Positioning Strategy:
For a business to be profitable, it must have various positioning techniques which might help the
producer or the distributor to reach into the psychological minds of the consumers. The
positioning might have various aspects including the name, the color, the logo or even a specific
phrase. Positioning strategy plays a huge role for the business. For our business to be successful
we would basically position or reach to the consumers mind by the help of a short colorful image
and the name written in bold letters. We would also position our consumers by means of a
33 | P a g e
tagline named, A VALUE YOU CAN TRUST. Such tagline can help the consumer trust our
wedding merchandise and build a long term memorable relationship with our business.
g. People:
All the marketing efforts are solely done by the people and to satisfy the consumers who are our
people. Various people processing techniques can be used in satisfying consumers but we would
mainly distribute our various work to various employees we hire. The employees would be
specialized in different activities like machinery, distribution, selling, branding etc. The effort
from various different people and satisfaction of people is the core P of the marketing mix.
Organizational plan:
a. Form of partnership:
We will start our venture with five partners. We contributed cash and share profits or losses. All
partners are getting return equally as ownership percentage of each partner is equal. As it was
our one day business every partner was involved in the management and operations of the
venture. Every major and minor decisions were taken with having each partners opinion.
b. Identification of partners or principal shareholders:
We knew each of us from earlier and that is why we genuinely enjoyed our work. Our partners
are trustful as our trust build over time. Each partner generally agrees on standards regarding
what is desirable, undesirable, good, and bad. These values guide his actions, judgments, and
choices. Our partners have skills that are complement from each other which will be very useful
in the progress of our business. We have diverse talents and a range of experienced business
partners. Having different strengths and weaknesses made a better partnership .Every member
was aware of his contribution to work and believes his rewards will be equal or exceeds his
expectation. Their dedication to make a good business day was fair.
34 | P a g e
c. Authority of principals:
As all of our partners are investing an equal share of money, they will have the same command
and authority over the principals.
d. Management team background:
Our management team has no direct experience in this field. They will be able to apply their
academic knowledge and experience as a business graduate to run the business.
e. Roles and responsibilities:
Our CEO has responsibilities as a director, decision maker, leader, manager and executor. CFO
is also responsible for financial planning and record- keeping, as well as financial reporting to
higher management. CMO is a corporate executive responsible for marketing activities in an
organization such as sales management, product development, distribution channel management,
marketing communications (including advertising and promotions), pricing, market research, and
customer service. Two of our COOs are responsible for the daily operation of the company and
routinely reports to the highest ranking executive.
35 | P a g e
CEO
Head of HR
Head of
Marketing
Head of
Finance
General
Manager
Senior
Assistant
Manager
Senior sales
Person
Assistant
Manager
Executive sales
Person
Bill Pay
Counter
Technician
Sales
Person
Cleaners
Guards
36 | P a g e
Assessment of risk:
A. Evaluate weaknesses of business:
Unpredictable political situation of the country is another threat to our business. Political
instability has always happened business of all types in Bangladesh. Sudden strike, street
agitation or high way blockage by political parties will be great barriers for our clothing
business. A sudden change in government policy about clothing industry can hamper the process.
The natural calamities may suddenly take place and will hinder our business and might cause
damage to our property like furnitures etc. Sudden fire hazards can damage the property of our
company. Economic downturn can hamper our overall income level. Economic instability can be
a big unforeseeable barrier of our business. Business has no control over these situations. If the
whole country is struggling in economic sectors then automatically the business will get affected.
Sales will go down and the company will make less profit. Business can also get affected by bad
political situation. Political activities like strike can harm the business. Sale goes down because
of strike and bad political situations. Natural disaster can be another unforeseeable barrier.
People never have control over natural hazard. Risk associated with every business and clothing
business is no different. The potential risk of this venture would be the start up goodwill that has
to be achieved from creating a potential customer base. Moreover, although the business model
suggests a clothing business will be of a premium quality, risks remain on finding the proper
growth and expansion. Thus, within the first year, will be a focus on increasing the brand. The
company will need an extra push into the marketplace which currently contains similar
businesses. This will be accomplished using a sprinkler approach to marketing. Many different
mediums will be implemented. After the initial year, a reassessment of the brand equity will be
evaluated and at that time, we will choose to either:
37 | P a g e
B. New technologies:
The new technologies of producing wedding dresses may be the biggest threat for us as we do
not have access to these advance technologies because of financial constraints. As a new
business it will be very difficult for us to produce wedding dresses without the technologies like
clothes simulation software and other advanced machinery we have to use the manual process in
these case. In addition to this, our competitors might capitalize on this and give us tough time in
the market and will also be able to take away our market share.
C. Contingency plans:
Contingency plan is very much essential for the starting of a business. Every new business
should start with a contingency plan. For a business like ours which has no similar business in
the industry is very hard to assume the profitability. The business can take negative turn at any
moment. To avoid this type of situation we have also considered some contingency plan which
will help us in the long run. Our major contingency plans are named below:
-
We can merge our business with other businesses that are working in the same industry,
such as, wedding planners, destination wedding, etc.
We can also turn our business into a readymade wedding dress selling store.
Financial plan:
A. Assumptions:
-
Interest Rate: Bangladesh has seen the emergence of a good number of Banks ready to
support businesses with loans. Previously interest rates of 18% used to be charged on
loan but due to increased number of banks it has come down to 15% per annum currently
and is expected to fluctuate around 15%. Interest will be paid on Long-term loan. There
will be no interest payable as interests will be paid on cash and the year it is incurred.
38 | P a g e
Tax rate: Right now, the corporate tax rate is 37.5%. We dont know what will happen in
the near future. So we are assuming that in the next 5 years, it will remain same.
Long-Term Loan A long-term loan of TK 25, 00,000 will be taken for 10 years from
the bank.
Dividend From second year, a 10% dividend will be given. Dividends will be paid on
cash and there will be no dividend payable as it will be paid in the year it is declared.
Sales - We do not expect to make huge sale at the start of the business. For the first year,
we have instituted a reduced sales plan while our marketing plan is taking effect. In the
second year, we will hire two additional sales manager which will help dramatically
increase our capacity and utilize a wider scale of the market.
2017
2018
Gross sales
5250000
5512500
5788125
260000
267800
275834
4990000
5244700
5512291
Beginning inventory
2400000
2472000
2546160
(+)Purchase
80000
82400
84872
(+)Direct labor
50000
51500
53045
(+)Indirect expenses
75000
77250
79567
allowances
Net sales
39 | P a g e
(-)Ending Inventory
600000
657700
685931
2005000
2025450
2077713
Gross profit
2985000
3219250
3434578
Advertising
1000000
800000
600000
Amortization
180000
180000
180000
Bad debts
50000
44500
59135
Bank charges
150000
154500
159135
Contract labor
45000
46350
47740
Depreciation
75000
75000
75000
Insurance
130000
136900
154007
Maintenance
75000
77250
79567
Miscellaneous
85000
87550
90176
Office expenses
150000
154500
159135
Professional fees
150000
166300
182789
Rent
220000
220000
220000
Repairs
95000
97850
100785
Utilities
130000
133900
137917
Expenses
40 | P a g e
Vehicle Expenses
120000
123600
110308
Wages
250000
257500
265225
Total Expenses
2905000
2755700
2620919
EBIT
80000
463550
813659
Interest
80000
82820
84724
EBT
380730
728935
Tax (37.5%)
142773.75
273351
Net Income
237956.25
455584
Jan
Feb
Mar
Apr
May
Gross sales
157500
210000
262500
315000
367500
7800
10400
13000
15600
18200
149700
199600
249500
299400
349300
2400000
2400000
2402000
2404500
2408000
allowances
Net sales
41 | P a g e
(+)Purchase
95000
115000
155000
165050
155500
(+)Direct labor
1500
2000
2500
3000
3500
(+)Indirect expenses
2250
3000
3750
4500
5250
(-)Ending Inventory
2400000
2402000
2404500
2408000
2412500
98750
118000
158750
169050
159750
Gross profit
50950
81600
90750
130350
189550
Advertising
83333.33
83333.33
83333.33
83333.33
83333.33
Amortization
15000.00
15000.00
15000.00
15000.00
15000.00
Bad debts
4166.67
4166.67
4166.67
4166.67
4166.67
Bank charges
12500.00
12500.00
12500.00
12500.00
12500.00
Contract labor
3750.00
3750.00
3750.00
3750.00
3750.00
Depreciation
6250.00
6250.00
6250.00
6250.00
6250.00
Insurance
10833.33
10833.33
10833.33
10833.33
10833.33
Maintenance
6250.00
6250.00
6250.00
6250.00
6250.00
Miscellaneous
7083.33
7083.33
7083.33
7083.33
7083.33
Office expenses
12500.00
12500.00
12500.00
12500.00
12500.00
Professional fees
12500.00
12500.00
12500.00
12500.00
12500.00
Expenses
42 | P a g e
Rent
18333.33
18333.33
18333.33
18333.33
18333.33
Repairs
7916.67
7916.67
7916.67
7916.67
7916.67
Utilities
10833.33
10833.33
10833.33
10833.33
10833.33
Vehicle Expenses
10000.00
10000.00
10000.00
10000.00
10000.00
Wages
20833.33
20833.33
20833.33
20833.33
20833.33
Total Expenses
EBIT
-52533.33
6666.67
6666.67
6666.67
6666.67
6666.67
EBT
-59200.00
-74175.00
-62681.25
-59250.00
-44400.00
-22200.00
Net Income
-98750.00
-74000.00
-37000.00
123625.00 104468.75
Jun
July
Aug
Sep
Oct
Nov
Dec
420000
472500
525000
577500
630000
630000
682500
20800
23400
26000
28600
31200
31200
33800
399200
449100
499000
548900
598800
598800
648700
43 | P a g e
2412500
2418000
2424500
2432000
2440500
2450000
2460500
145500
135050
115050
150050
175500
200000
345298
4000
4500
5000
5500
6000
6000
6500
6000
6750
7500
8250
9000
9000
9750
2418000
2424500
2432000
2440500
2450000
2460500
2472000
150000
139800
120050
155300
181000
204500
350048
249200
309300
378950
393600
417800
394300
298652
83333.33
83333.33
83333.33
83333.33
83333.33
83333.33
83333.33
15000.00
15000.00
15000.00
15000.00
15000.00
15000.00
15000.00
4166.67
4166.67
4166.67
4166.67
4166.67
4166.67
4166.67
12500.00
12500.00
12500.00
12500.00
12500.00
12500.00
12500.00
3750.00
3750.00
3750.00
3750.00
3750.00
3750.00
3750.00
6250.00
6250.00
6250.00
6250.00
6250.00
6250.00
6250.00
10833.33
10833.33
10833.33
10833.33
10833.33
10833.33
10833.33
6250.00
6250.00
6250.00
6250.00
6250.00
6250.00
6250.00
7083.33
7083.33
7083.33
7083.33
7083.33
7083.33
7083.33
44 | P a g e
12500.00
12500.00
12500.00
12500.00
12500.00
12500.00
12500.00
12500.00
12500.00
12500.00
12500.00
12500.00
12500.00
12500.00
18333.33
18333.33
18333.33
18333.33
18333.33
18333.33
18333.33
7916.67
7916.67
7916.67
7916.67
7916.67
7916.67
7916.67
10833.33
10833.33
10833.33
10833.33
10833.33
10833.33
10833.33
10000.00
10000.00
10000.00
10000.00
10000.00
10000.00
10000.00
20833.33
20833.33
20833.33
20833.33
20833.33
20833.33
20833.33
7116.67
67216.67
6666.67
6666.67
6666.67
450.00
60550.00
168.75
22706.25
48825.00
54318.75
63393.75
54581.25
18713.25
281.25
37843.75
81375.00
90531.25
105656.25 90968.75
31188.75
6666.67
6666.67
6666.67
6666.67
45 | P a g e
2017
2018
500,000
515,000
530,450
Income tax
400,000
412,000
424,360
Financial expenses
750,000
772,500
795,675
OPERATING ACTIVITIES
100,000
110,000
135,000
950,000
950,000
960000
854,000
874,000
900,500
46 | P a g e
-623,500
-695,735
1,114,000
2017
2018
Asset
Non-Current Assets
Property and equipment
10000000 9500000
9000000
Investments
1000000
1069900
530000
Current Assets
Inventories
300000
309000
318270
230500
236900
244007
80000
82400
84872
900000
927000
954810
deposits
Cash and cash equivalents
47 | P a g e
Total assets
2016
2017
2018
Deferred tax
500000
515000
530450
Other liabilities
Liabilities
Non-current liabilities
Current liabilities
Payables
7000000
7210000
7426300
8000000
8240000
8487200
Cash credits
5500000
5615000
5783450
950000
987500
1017125
6000000
6130000
6210370
560500
667800
688364
portion
Total current liabilities
48 | P a g e
Equity
Capital
Retained earnings
Total equity
100000
103000
E. Breakeven analysis:
Breakeven:
Breakeven Sales Units
49000
20050
2905000
x=number of units:
2905000/ (49000-20050)
100.35
4,917,150
We are forecasting that at the end of the first year we will reach our breakeven point.
49 | P a g e
FC
VC
TC
sales in BDT
2905000
2905000
20
2905000
401000
3306000
980000
40
2905000
802000
3707000
1960000
60
2905000
1203000
4108000
2940000
80
2905000
1604000
4509000
3920000
100
2905000
2005000
4910000
4900000
120
2905000
2406000
5311000
5880000
140
2905000
2807000
5712000
6860000
160
2905000
3208000
6113000
7840000
180
2905000
3609000
6514000
8820000
200
2905000
4010000
6915000
9800000
50 | P a g e
51 | P a g e
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53 | P a g e
Appendix
54 | P a g e