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Business Plan For Embroidery Thread

MARKET ENVIRONMENT ANALYSIS

Group Members

Muhammad Ghayas Yousafzai1.

Faizan Shakeel2.

BBA &Bsc –A/F

About Embroidery

BackgroundEmbroidery Thread is used for a variety of purpose around the world depending upon the customs and traditions.

In Pakistan Rayon thread is commonly used for embroidery purpose.

Rayon threads are synthetic threads that are shiny; these threads are usually sold in the form of thread wrapped in cones packaged in cartons.

•Total numbers of colors are 400.•Rayon threads are sold in the form of small cones weighting 85g while the cones that traders use to import 1.250kg which is a converted form through embroidery machines

Values

• 2.50/3

Embroidery Specifications

• 1.40/2

Types of Embroidery Threads

Threads

Coke (1953)Rayons• Golden• Silver

Culture

Culture has a tremendous effect on people’s preferences and perception.

Pakistan culture is such which encourages Embroidery work people like to wear cloths having embroidery work either Golden or Silver in weddings

Fashion and designing industry is flourishing day by day in Rawalpindi which would be healthy for our new business.

Constraints

Most of the Embroidery traders choose to import thread from China as it is cheaper

Pakistan market is mainly price driven. This is why the traders prefer importing from

china though the only constraint that is involved is a delay time.

Long lead timePower shortagesImport duties

How to Acquire

SuppliersThere are two ways to acquire Rayon thread in

Pakistan.

Buy from Faisalabad or Taxila suppliers. (OR)

Import from China (Slice company)

How To Acquire

Slice Company sells a minimum of 10-15 cartons per order

each carton containing 120 cones

It takes 60-65 days from China to Pakistan to reach (Lead time).

Marketing Mix

Product

Core product

Rayon thread

–Golden

–Silver

Place

Wide scale distribution in Rawalpindi and Islamabad.

“Think Global act local”

Available nationwide as well through WWW.

PriceEach sub-brand of Rayon Thread has different

prices according its segments, colors and quality

Pricing is almost stable no ups and downs apart from exceptional cases such as the depreciation of Rupees against dollar.

Pricing from suppliers is different for different countries

PromotionAllowing price discounts and allowances to

distributors and retailers

Push strategy and Pull strategy

Establishing contacts with Designers i.e:– JIA collections

– Nakoosh

– Nadia Hussains collection– Sana Safinas

Marketing Strategy

A website will be maintained consist of all the embroidery codes with a friendly user interface along with colors the customer will only chose what sort of specification he needs. Delivery will be made to home and payment would be on spot. Note this facility will be provided on the nature of

transaction

Contacts will be established with the some of the designers

Even a single contract would do the job

Market Demographics (Rawalpindi)

POPULATION 176,242,949 (July, 2009 estimated)

CHILDREN 37.2% (65,607,612)

ADULTS 62.8% (110,680,572)

CHILDREN EQUITY 60% (14,643,619)

ADULT EQUITY 40% (27,802,960)

TOTAL TARGET MARKET: 42,446,579

Financial Analysis

Budgeting

Embroidery business does not cost much as it need a very affordable amount of money.

Embroidery business needs an ICO (Initial cash outlays) about 5-6K $ which is used to buy some embroidery machines

Financial Figures

Sale price 72/unit cost 60/unit Freight 2500$

No. of cartons

667/orderTotal No.

ofunits 667 * 120

= 80,040 / Order Storage

cost 30,000/ month

(30 X 50 sq.ft)

Overheads 10,000 / month

Furniture and

furnishing

30,000 (once)

Each thread cone has currently ROI about 15%.

Note: All these figures are taken from a retailer (Capri) who is into this business.

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