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Business Plan Dare to Differ

EXECUTIVE SUMMARY

The Project: Dare to Differ outlet is a proposed project,

located in Al- Jannat Mall, Commercial Center

Rawalpindi.

Sponsors Name: Dare to Differ group are Students and are very

much interested in fashion industry well known for

their management capabilities.

Background: This work is towards growth of the fashion industry of

Pakistan which has made quite a lot of progress in

just a few years. Ten to fifteen years from now, this

industry was still unknown to actually exist to the

masses. Later with the formation of fashion councils

and education centers under the enthusiastic few who

wanted to make a difference and propagate this very

institution of fashion, did the very fashion industry

took its concrete contour from the old tailor culture

that formerly existed. Today it is one of the most

progressing industries in the country.

Corporate Strategy: The long term strategy is to expand the proposed unit

by diversifying and enhancing the production

capacity.

Economic Contributions:Dare to Differ will offer employment opportunities

in rural area which provide them better living

standards.

Associate Degree Programme: Accounting & Finance -PGS Page | 1


Markets: Clothing is the second basic necessity after food.

There are three types of targeted users: those want a

new change in their existing redundant resources,

those who wan to become stylish and decent within

the limits of Islam and those who require best unique

designer wear.

Plant Capacity: The seven stitching machines are assumed on 60%,

65 and 70% capacity utilization in the first and

subsequent years of operations. On average, a tailor

can supply 3 dresses per day, whereas our optimal

capacity of one worker is to prepare 5 dresses per

day. Approximately, total capacity of the defined unit

with 7 stitching machines (basis on 8-10 hours shift)

will be about 525 dresses per month.

Material and Inputs: The raw material of the proposed unit is fabric that

can be purchased from the wholesale markets of

Faisalabad and Lahore. The embroidery will be taken

from local people.

Product Designing: The ultimate design would be the creation of joint

efforts of the designers and tailors. Embroidery

machine, Kansai pico machine, singer disc machine

and over lock machine are required for processing

raw material. Some of the machines are

manufactured locally apart from Indian Embroidery

machine, Kansai machine. However, this machinery

can also be imported. The local market manufacturers

are supplying all machines.



Man Power: Business operations will be continued throughout the

year. About 35 workers will be required, out of which

15 are related to workshop area, and 12 required for

administration. About 8 are related to selling and staff.

Seven skilled tailors and designers will be required for

design and cutting. Sales and receptionist will operate

sale section and dealing with customer interface.

Location: The location of the project is selected after taking into

consideration the following factors. i.e., frequently

visited location, availability of parking area and

availability of utilities.

Cost of the Project: The total capital required for project is estimated to be

Rs 3.44 mil. The fixed cost of the project is Rs. 2.9 mil

which will be financed locally. The amount of initial

permanent working capital required will be Rs. 0.45

mil.

Financial Analysis: Sixty percent (60%) of the Estimated cost of the

proposed project will be obtained through loan and

the remaining 40% will be contributed by the owners.

Financial Assistance: Rs. 2.06 mil (60%) will be obtained from Financial

Institution.

Operating Results: The proposed unit will be capable of generating

Revenues Rs. 18.26 mil, Rs. 20.53 mil, Rs. 22.11 mil,

Gross Profit of Rs. 4.8 mil, Rs.5.4 mil, Rs.6.4 mil,

Operating Profit of Rs. 1.5 mil, Rs. 1.8 mil, Rs. 2.4mil,



and Net Profit (NP) Rs. 1.06 mil Rs. 1.34 mil, Rs. 1.92

mil in the Years 2013, 2014, and 2015 respectively.

Financial Position: The total Current Assets, Current Liabilities and Net

Working Capital will be maintained as per company

production policy.

Implementation: The total time period for the installation and execution

of proposed unit is estimated to be 3 months from the

date of approval of finance.



VISION:Our vision is to enhance and enrich

the outlooks and attitudeOf women

belonging to Pakistan.

MISSION STATEMENT:

Focus is on those peoplewho dare to be different

in terms of Islamic as well as sophisticated clothing.Our emphasis will be on participative culture to reap,

innovation and creativity.

BUSINESS PROFILE:

Introduction:



Our business is in introduction stage as almost every city has boutique where cloths, handbags, shoes, traditional jewelry etc; are available. Plan is about giving new looks to people’s obsolete inventory like old bags, pouches, remote & files covers, damage dress etc; we have another competitive edge of promoting Islamic values through introducing stylish gowns, scarves, duppatas, suits etc. this idea is implementable and provide employment to cottage industry.

Company’s Goals and Objectives:

Non-financial objectives:

Our main objective is to capture the target market through market penetration using appropriate pricing and promotional strategies.

To be among the top ten preferred brands

To add new designs in every season

To drive awareness and build sales through mentions in both local print and the nation's top fashion magazines

INDUSTRY PROFILE:Introduction:

Fashion is a social phenomenon common to many fields of human activity and thinking. To some, fashion is an art form. To others, it is life. For most people it is a method of utilizing clothing, accessories and hair. Fashion is a mode to express yourself, to serve as an extension of your personality, or even to disguise your true self (Nellis, 1999). Fashion is a term commonly used to describe a style of clothing worn by most of people of a country. A fashion usually remains popular for about 1-3 years and then is replaced by yet another fashion. Even though there are a lot of changes in fashion, most people do not easily except the changes. A clothing style may be introduced as a fashion, but its use becomes a custom after being handed down from generation to generation. A fashion that comes and goes is called a Fad.

History and Decade wise Progress:

With time, however, networks of neighborhood tailors began to evolve into a retail history and the boom was followed by boutique selling. Associate Degree Programme: Accounting & Finance -PGS Page | 6


The 1930s were influenced by socialism, communism and fascism and women’s fashion became more and more feminine in keeping with these conservative ideas. However, this period also saw the emergence of the culture of clubs and hence dresses became more body-hugging and colors went more deep and dark. The establishment of Indian and Pakistani cinema has proved to be the strongest influence on the fashion in the decade. Due to western influence, the use of angarkhas, choghas and jamas had diminished considerably by this time, although the ceremonial pugdi, safa and topi were widespread as ever. They had been replaced by the sherwani, which is still a standard item of formal dress for Indian and Pakistani men today. Even though women were accepting change, they continued to wear the peshwaz, kurta, Ghaghra and odhni at religious and ceremonial festivities, which were even sometimes made of imported fabrics.

The 1950s saw the dawn of art colleges and schools and due to the freedom struggle and the adoption of khadi by Gandhi, the dying and handloom industries got more business. The 1960s was one of the most shock-filled decades of the century, as it saw sweeping fashion and lifestyle changes. Tight kurtas and churidars competed with mini-skirts abroad and at the same time, designers began to understand the need for cheaper, ready-to-wear lines.

The 1970s saw the export of traditional material with the result that export surplus was sold within the country itself and hence, international fashion came to the sub-continent. Synthetics became popular and the clothes even flashier.

In the 1980s big money ruled. In Pakistan too, silhouettes became more masculine and the shalwar kameez was made with shoulder pads. The influence of cable TV became more prominent and the teenage market boomed with youngsters who were more fashion conscious. (Baig, 2004)

Mid 1990s and the beginning of the 21st century was marked fashion designers that changed the way fashion was contemplated. Designers greatly influence what direction fashion will go. These designers design and define future fashion developments. They are the trend setters of change in a culture – through change in tastes and lifestyles of a community which is often characterized by changes in current trends and styles. And changes in fashion play one of the major roles in these transformations. The activities of these designers, collaboratively, form the fashion industry. The fashion industry of Pakistan is growing in volume with every passing day. The credit goes chiefly to the mainstream fashion people, who have been instrumental in this change. (Nisar, 2004) The industry has witnessed quite a mature spurt in the last two decades evolved from a traditional darzi (tailor) culture into a mature and cutting-edge business (Imam, 2008). However the status of fashion designers in our country greatly owes to the fashion institutions, particularly the Pakistan School of Fashion Design (PSFD) – now called the Pakistan Institute of Fashion Design which was played its role in bringing out the potential and imparting training to young designers who today enjoy a reputed name in the retail market. Some of Associate Degree Programme: Accounting & Finance -PGS Page | 7


these recognized names include Maria B, Hasan Shehryar Yasin, Deepak Parwani and Maheen Khan (Qureshi, 2008).These are some of the few names which the fashion industry identifies with. Though the industry had been operating for quite a time, it actually got its institutional shape after the formation of the Pakistan Fashion Design Council.

COMPETITOR’S ANALYSIS:

Analyze the size and intensity of the competitors in the target market(s) and describe the major competitors in the target market(s) and their major strengths and weaknesses as per following format.

Wahid Cloth house and Boutique

Strengths Weaknesses Dealing in almost all categories of

women suiting

Different shops for different category

Dealing also in men suiting

Strong public relations

Brand image and Brand Equity

No mission statement

Inside bazaar congested area

No promotional campaign

Late delivery

Customization problems

Outfitters & Allegiance ’

Strengths Weaknesses



Quality products

Strong Brand image

Strong promotional campaign

Location Advantage

Charge Premium prices

Ignores middle class

Don’t provide products on specification

ENVIRONMENTAL ANALYSIS EXTERNAL ENVIRONMENTAL ANALYSIS

a) Social

Social changes include changing attitudes, behaviors, lifestyle and taste. There is frequent adaptation and quiting of “Fashion ”. Dare to Differ is very much responsive to these changings trends.

b) Technological

Technology factors effect on organization in the fashion world, there are new innovations and new designs, developments and ideas. If we don’t adopt the global competition we can fail. We have to focus the new technology in the global world otherwise we can’t lead our competitors.Increased use of internet for the promotion and sale of the products has increased the cost of the company but it also has increased the profits. By training our employees and adopting new technologies we can enhance the sales level and popularity of our product

c) Environmental

Weather has a great influence on fashion or apparel industry. But weather in Pakistan is not changed unexpectedly. But the electricity crisis are of

great important so as devastating. Environmental factors have a big impact on organizations.



Organizations have to face some environmental factors like Suicide bomb attackers on crowds.

These things have great impact on the sale of organization. Shortage of raw material, increased

cost of raw material

INTERNAL ENVIRONMENTAL ANALYSIS:

Resources (Capital)The total capital required for project is estimated to be Rs 3.44 mil. The fixed cost of the project is Rs. 2.9 mil which will be financed locally. The amount of initial permanent working capital required will be Rs. 0.45 mil. Sixty percent (60%) of the Estimated cost of the proposed project will be obtained through loan and the remaining 40% will be contributed by the owners. Rs. 2.06 mil (60%) will be obtained from Financial Institution.

Resources (People)

Factory operations will be continued throughout the year. About 35 workers will be required, out of which 15 are related to workshop area, and 12 required for administration. About 8 are related to selling and staff. Seven skilled tailors and designers will be required for design and cutting. Sales and receptionist will operate sale section and dealing with customer interface. Managers supervise overall operations of business.

Organizational structure and culture

Dare to Differ have participative-team oriented structure. Nature of business venture demands innovation and creativity in designing and implementing new ideas. The team based model should instill in minds of employees, with the help of strong and healthy culture.

Training:

We would be providing training to our all employees regarding customer relations and



teach them how to tackle the fluctuating demand and supply.

Training will also focus on reducing the wastage, emphasizing on lead time.

SWOT ANALYSIS

Strengths

Good and high quality machinery

Frequently visited location

Opportunity for people who want to keep fashion and religious values side by side.

Diverse brand portfolio

Broad parking area

Utilization of obsolete inventory and wastage.

Weaknesses

Plaza is not fully established

High income people are less in proportion in this region. if these would have been more, we would be adopting skimming pricing strategy

Less capital is available, we need to borrow the major proportion of cost of project

Opportunities

Expand into emerging economy and can be exported as well because of highly demanded embroidery and handicrafts of Pakistan

Enter new product market

We can establish

Threats

Lack of promotion in media for Islamic fashion

Brand cannibalization

Substitute New entrants Competitors Political instability Less supportive

financial and govt. institutions

Accessorizing is started as a



distribution network as well as outlets in major cities of Pakistan.

Quick adoption toward changing fashion in wearing.

In future, there may be expansion in form of vocational institute.

niche, and people are generally resist from new trends, and to pay for older things

Business Strategy:As we are dealing with three product lines in our business which are Islamic fashion, boutique business and accessorizing so we are focusing on different strategies for each

For Islamic fashion: we are focusing on differentiation strategy

For boutique business: we are focusing on cost leadership strategy

For accessorizing: we are focusing on niche strategy.

MARKETING STRATEGY:

Demographics:

Gender: We are focusing women and girls. House wives, Professional woman, college or university girls (ages 15 and above)

Age: Our target age segment is 15 and above.

Social class: Middle and high class are targeted social classes.

Income level: Household income over Rs. 25000/month.Lives in a higher- income Bahawalpur neighborhood.

Psychographics:



Looks for bargains (seasonal fashion) but willing to spend money on quality, core items, would like more time or help in understanding what clothing is right for her and she wants to look her best because she wants to feel good about herself as well as make a good impression at her job.

Leisure Activities:

Supports the Art, believe in experimentation. Reads the news, dawn, Daily post, Fashion

magazines Watches style 360, FTv, Geo, Hum etc Internet user She enjoys eating out as well as taking time for

herself

Note:Average consumption of dresses per head per year:Purchasing in summer season= 8 dressesPurchasing in winter season = 4 dressesOccasional (Eidain, wedding ceremonies, parties) = 4 dressesSo total dresses used per head per year on the average are 16.

Market Growth Rate:Market is growing rapidly as more and more women are being fashion conscious.

Typical Buying Needs:Clothing, Designer wears, covering

COMPANY PRODUCTS AND SERVICES:

Product Development Process:

Design: Firstly we will create innovative designs, The initial process starts from the designing phase. Various patterns of clothing and the fashions in vogue, which also relate to the tastes of the concerned clientele, are designed. The contracted designer as does this he/she will provide the basic designs



of which the fabric will be converted into the designer wear garment. On average, a designer is supposed to provide 40 designs per month or 100-120 designs per season i.e. three months. From these designs, approximately 50% of the designs are selected for further development of clothes.

Pattern making/ cutting: Based on the designs selected, patterns for cutting are developed and based on these patterns, fabric is cut, embroided, block printed, and processed accordingly.

Embroidery: Embroidery will be outsourced and will become a part of per unit variable cost of product design.

Stitching: The cutting is then followed by stitching, which can either be done by the in-house stitching unit or by outsourcing it. Labels are also attached to the apparels in this process.

Finishing & Presenting: The final phase is that of finishing, in which the garment will be checked for quality control and will cleaned (if required) for final presentation at the outlet. The garments will also be tagged for identification of sizes, prices, addresses, handling instructions, etc.

Cutting, stitching and finishing processes will be performed in our workshop by our employees & tailors.. After completion of product we will make it available at our own outlet.

PRODUCT STRATEGY:

Product Category:



Casual Wear is Range 1 which represents seasonal wear. The maximum cost for this range would be Rs 1440. (see fig 1)

Semi Formal Wear is Range 2 represents party wear. For this, range of cost would be between 1440-4000 approx. (see fig 2).

Formal Wear is Range 3, representing heavy embroidered dresses, cost ranging between 4000- 6500 approx. (see fig 3).

Product MixCategory Percentage of

total outfit% profit margin per unit

Casual Wear 60% 10%Semi Formal Wear 25% 20%Formal Wear 15% 14%

Product / Service Analysis:We are focusing on casual, formal, and semi formal. Our main focus would be on latest trends. We will try to give the best quality, colors, designs, fabric and so as the best environment that women will find ease and would surly be delighted and will visit our boutique again after first buying. Our clothes will appeal image conscious, fashion aware, and choosy kind of women.

Raw Material and Key Suppliers:

The raw material of the proposed unit is fabric that can be purchased from the wholesale markets of Faisalabad and Lahore. The embroidery will be taken from local people. We will be using different kinds of fabrics depending upon the specified range like, Chiffon, Khaddi Silk, Jamawar, Khaddar, Georgette and linen etc. for embroidery we will need diamantes, sequences, laces, beads, buttons and Gotta Kinary etc.

PROMOTIONAL STRATEGY:

Integrated Marketing Communication Plan

Advertising Activity:



Newspaper advertisement will be done, banners, posters, brochures and cable TV ad and slides will also be used. Advertisement on Radio is also another appropriate way to create awareness to the target market.

Direct Marketing Activity: For the direct marketing purposes, catalog marketing will be used and direct mail marketing can also be considered.

Online Activity:www.daretodiffer.com.pk will be our website we will provide online purchase facility.

Events Activity:Exhibitions will be arranged, and seminars on fashion awareness as well as fashion shows in girls’ colleges and universities will also be organized. Promote for Seasons & Holidays Set up sales days for seasons, holidays like Eidain, valentine’s day, women’s day, mother’s day, Basant etc.

Marketing and Promotion Budget:Marketing activities are important generating awareness. As we are to establish a new brand so more the money spends, more effective the activity will result. The total cost of all activities will be of Rs. 91349 for the first year. More and more people will be aware they will be attracted towards product. Our promotional budget is 0.5 % of the sales every year.

BRAND STRATEGY: Our product is image conscious and will require

highly image positioning.

Our boutique focuses on most modern trends and less time to reach them. Woman can get what they want without any trouble and with great ease. We are providing value; image, sophistication and style for what woman are hungry.

Brand name:


http://www.daretodiffer.com.pk/


“Dare To Differ” suggesting that what is in the fashion. Easy to pronounce and easily accepted. We can even extend our boutique to men under the same name this name has no limitations.

Logo:

It is memorable generating loyalty. Adaptable to any culture. And having no cultural problem all over the country. Similarly have no limitations.

Color:

Black and white. Quite neutral color easily memorable and associations can be developed without any problem.

URL: www.daretodiffer.com.pk available URL is easy to remember and protectable.

DISTRIBUTION STRATEGYManufacturer

Customer

Selectivity:Our product is a shopping good and will be presented to the market in our own exclusive outlet so the distribution is selective as product is of high image.

Waiting and delivery time: Product will be available in the outlet so customer doesn’t have to wait for the delivery. In case of order delivery, time required is maximum 15 days.

Variety and RangeWe will provide variety and range, as we are dealing in three categories; casual, semiformal and formal.

Information provision:We will provide training to our employees so that they can assist the customers as much as possible.


http://www.daretodiffer.com.pk/


Following flows would be performed to produce the above services outputs. These flows would be performing from manufacturer to consumer through whole seller and retailer.

PRICING STRATEGY:

Description Unit Price

a Range 1 1,600

b Range 2 4,800

c Range 3 7,500

Pricing is set according to market indicators. Set in such a way that it covers cost and generate revenue for the boutique. In the start it requires lower prices in order to penetrate in the market. Than high the price for the assurance of high quality as it is perceived.

OPERATIONAL PLAN:

Management:

The overall management and control of the firm will be actively managed by Marketing Manager, Supply Chain Manager, Finance Manager and Operations manager who are the partners and will actively participate in management decisions and control the affairs of the firm.

Partners’ Names

Designation1. Miss Hijab Khan

Marketing Manager

2. Miss. Kandeel Sunana

Supply Chain Manager 3. Miss. Anita

Finance Manager



4. Miss Sandal

Operations Manager

The partners will contribute equally in the equity of the

project and will equally participate in the profit and loss

of the firm's business.

COMPENSATION AND BENEFIT PACKAGE:We have considered government policies regarding compensation and remuneration packages. We are not exploiting labor rights. We are providing bonuses and 10% increment in total salary every year to reduce the inflationary effects. We have created a separate provisional account from operating profit which is named as “Worker Fund”.

IMPLEMENTATION PLAN:

The total time period for the installation and execution of proposed unit is estimated to be 3 months from the date of approval of finance.

Facility Requirements: Our workshop and outlet building will be taken on rent. Equipment and machinery will be purchased.

Labor Requirments: Business operations will be continued throughout the year. About 35 workers will be required, out of which 15 are related to workshop area, and 12 required for administration. About 8 are related to selling and staff. Seven skilled tailors and designers will be required for design and cutting. Sales and receptionist will operate sale section and dealing with customer interface.

Capital Needs: capital is required to meet running financial needs as well as fixed cost of capital. Following is the list of assets: (for more details see annexure)

a. Machinery, b. Office Equipments,c. Vehicles,



d. Furniture and fixtures,e. Pre operating expense,f. Inventories (Raw Material)g. Supplies etc.

Finance is also required to meet the following expenses: (for more details see annexure).

a. Installation,b. Transportation,c. Insurance, d. Travelling expenses,e. Registration expenses etc.

Inventory Control: Inventory for raw material and finished goods will be held for 14 days which will be sufficient to meet demand fluctuations. Maximum lead time will be 15 days. Inventory will be stored in the stores of the workshop. It does not require any additional storage cost. The transportation activity will be performed by business owned pick-ups. Wastage in production process will be 11% of raw material, which will be utilized along with redundant resources for accessorizing.

Proposed capacity

The Boutique business capacity is greatly dependent on the market size and the number of potential clientele one can attract. Furthermore, the women fashion wear garments will be designed through a contracted designer, embroided through in-house embroidery unit, and then stitch in workshop. On average, a tailor can supply 3 dresses per day, whereas our optimal capacity of one worker is to prepare 5 dresses per day. Approximately, total capacity of the defined unit with 7 stitching machines (basis on 8-10 hours shift) will be about 525 dresses per month. The breakup of the total number of dresses per annum will be as follows:Initially, we will be working at 60% production capacity.The total number of units produced will be 6480 dresses in 1st operating year. Operating capacity will increase by 5% each subsequent year. After 3 rd year it will remain constant at 70%. We will be having three price ranges.in each price range there are three size ranges and four design ranges.total number of units of each range is shown in figure (1,2, and 3).



All designs in range 1 will cost Rs. 1440 per unit (approx.)





CONCLUSION:The idea is to provide a place where ladies can find solutions to their fashion needs in form of garments, jewelry, shoes, accessories and where they can easily get their old but transformed new products in a creative and unusual manner. This project will provide employment to women, who are able to do embroidery, stitching, have abilities to be good sales persons and have good communication skills. In today's busy age people don't get time to go to different stores and purchase their required items.
