final em report

8/7/2019 Final EM Report

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Contents

1. THE BUSINESS 32. THE BUSINESS OPPORTUNITY 43. STRATEGY 54. COMPETITORS AND SUBSTITUTES 75. COMPETITIVE ADVANTAGE 86. EXIT STRATEGY 97. TARGET MARKETS 108. THE PRODUCT PORTFOLIO 11 RANGE 11 SUPPLIER 11 COMPONENTS OF SHIRT 11 MATERIAL 11 STYLES AND DESIGNS 119. RESEARCH 1210. MARKETING PLAN 13 1ST3MONTHS 13 THEN 9 MONTHS 13 STRATEGY 13 THE PRICING STRATEGY 13 BRAND NAME 1311. TAILORING PROCESS 1412. UNIQUE SELLING POINT 1513. ORDERING PROCESS AND POLICY 1614. QUALITY ASSURANCE 1715. LOGISTICS 1816. DELIVERY PROCESS & POLICY 1917. CUSTOMER RELATIONSHIP MANAGEMENT 2018. GROWTH FACTORS & STRATEGY 2119. IT DIVISION 2220. BREAKEVEN ANALYSIS 2321. PROFITABILITY ANALYSIS 2422. CASH MANAGEMENT 25


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23. RISKS 2624. SUCCESSION PLANNING 27

Executive Summary


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1.THE BUSINESS


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2.THE BUSINESS OPPORTUNITYFollowing are the opportunities for which we are willing to enter into this

business:

y Middle class office going men are interested in quality garments withconvenience.

y The home delivery and custom tailored clothing is the gap that we willcater to

y Long hours at jobs have made convenience the need of the customer .y The customer is willing to pay a higher price for the product which is

proven because many retailing chains are expanding in the ever

growing market.

y Our value proposition will take the convenience of the retail outletsand combining that with the custom tailored garment.

y Our initial pilot test run done on this shows us, sizable demand tostart and further expand the business.

y Our research revealed that customer is willing to pay a higher pricewhen given quality, convenience and the personal customization

experience.

y Working people do not have time trying out different tailors.y Taking stress away from customers.y Garments are light weight, non breakable and repeatable item and

easy to handle for the delivery personnel.


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3.STRATEGYTariq Road, Shahra-e-Faisal, I.I. Chundrigar and Defence will be our initiallocations of operation are an ever growing market.The total population of

Karachi as per year 2010 census is 13,052,000 out of which 30% live andwork in these locations. Karachi is the financial and commercial capital ofPakistan. In line with its status as a major port and the country's largestmetropolis, it accounts for a lion's share of Pakistan's revenue.This showsthe ever increasing office going, middle class sector as an emerging marketfor current and new players.

As a team we have talked to suppliers and the relevant tailorsregarding the pricing and the terms of the deal creation. As a group weapproached suppliers that we will be opening an outlet of shirts in a posh

locality of Karachi and using this we get discounts and preferential treatmentfrom the supplier.

For start we have kept a tailor with us who will do all work regardingthe tailoring. The customer handling, raw material purchase and deliverywill be done on our part. Initially we will start with marketing sociallythrough giving discounted prices to our network of professionals and to getthem aware of the quality and the differentiation that we provide.

Secondly, we will do highly targeted marketing on a limited budget.Being a new company we have paucity of funds and will have to use the

money more wisely.The following will be our marketing strategies to directlyattract the working professionals market.

y Distribution of Pamphlets in Offices on Areas like Chundrigar Rd andShahra-e-facial.

y Advertisements in company newsletters.y Distributions of Pamphlets on business road signals in key timings.y Creation of Cataloguesy SelfMarketing from Cataloguesy Referral Marketingy Online Marketing and Order placementy Marketing through Facebook and other social networks sites.y In future we will do advertisement in Home Express magazine which

is also delivered in these areas mostly.


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These steps would give us the initial market, and would bring some rolling ofmoney and many operational issues/processes would be refined in this stage.


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4.COMPETITORS AND SUBSTITUTESThe competition includes all the retail chain that exists in the market which

is branded or unbranded.T

he branded ones includeG

ull Ahmed Ideas,Chinbone, Cambridge Shop, Califord and miscellaneous other unbrandedshops that are into the business of mens wear retail.

Currently no other retail chain caters to individual customers byproviding custom stitched clothing and then delivering it to the customer.The major players deal in high volumes and have high profit margins . Ourpricing will be lower than our competitors. A shirt item which is being soldfor Rs.2500 in a typical branded outlet will be sold for Rs.1500 and will bedelivered at the customers preferred location.

This will create a niche for the product because we will be the first oneto move into such kind of market.The customer does not have this level ofconvenience offered in this market and will explore the option once andbecome brand loyal to our line of shirting and in future other clothing.

The competitors that are bigger in volume would not easily be lured tocompete with us because they already enjoy a higher profit margin andamount which is easily obtained from mass manufacturing and notcustomized tailoring.


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5.COMPETITIVEADVANTAGEOur Initial test marketing and the market research reveals that there are

high margins in the clothing industry.M

any companies have entered theretail industry because of reasons of diversification in the local market andalso due to high profit margins.

The margins range from fifty to one fifty percent.The current marketoffering is limited to average quality mens wear which is in standard sizes .Despite of good quality the overall customer experience is not that high iscompared to that of well tailored, customized apparel.The customer buying isto due to convenience and readily observable quality of the finished product.

The first competitive edge that our product has is the overall customer

experience of fitting and as well as customizability.The current offerings atthe major retail outlets, even the major ones cater to specific types of shirts .We at Grandeur Abito will provide the customer with many options tochoose from. It can be the type of the collars, the stitches and many otheroptions such as moveable collar shirts and zero stitching.

The second competitive edge is our convenience. The customer justonce has to come to the location to give the measurements.This is the case ofa new customer. After the initial purchase the customer can place the orderon the website, telephone or physically visiting the site.The delivery will bedone in the defined deadlines.

The third advantage will be our pricing strategy; the quality which isavailable in the market for average of PKR 2500 will be available for deliveryat one third less of the prevailing price.This will be our value creation pointto attract customers who are already accustomed to shopping fromprominent outlets.


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6.EXIT STRATEGY


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7.TARGETMARKETS


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8.THE PRODUCTPORTFOLIORANGESUPPLIERCOMPONENTS OF SHIRTMATERIALSTYLES AND DESIGNS


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9.RESEARCH


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10. MARKETINGPLAN1ST3MONTHSTHEN 9MONTHSSTRATEGYTHE PRICINGSTRATEGYBRAND NAME


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11. TAILORINGPROCESS


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12. UNIQUE SELLINGPOINTThe product which is mens wear and initially starting out from the concept ofshirts. Since shirts are worn by most of the office going middle and upper

middle class men. Therefore, a substantial market exists which can betrained for using our convenience as a means of being more free to do othertasks.

The shirts are worn everyday by office going people and people havemore shirts than the pants. As mentioned in the previous headings, theproduct combines the aspects of convenience, quality and pricing all threeblended together in the right mix to form an offering.

The home delivery aspect is something which is not catered in the

market.

Our society has been trained now to accept the convenience and savetime for their productive and fulfilling activities.The society have acceptedfast food deliveries, news paper deliveries and even shopping are being

Delivered by one of the prominent general stores in Karachi.Therefore, it is the time and the consumers are ready to embrace and takeadvantage of the convenience and the personalized delivery.

Once the order is ready to be shipped, a customer can choose a specifictime on which the delivery needs to be made. This would strengthen ourcustomer/business relationship.The payment and the ordering process which

seems a lot conventional are altered in the second delivery.

One of the major USP (Unique Selling Point) which will makeeveryone of the possible customer to try the shirt. If a customer proves thathe shirt is not according to the specification as ordered then we will offer areplacement shirt which will be free of cost to the customer .The customercan choose any of the fabrics which will be present in the catalogue and are ofthe same value as the last order shirt.

The home deliveries will be guaranteed by the company.This would beone of the benchmark for our success. Our operational efficiency and theoperations will ensure timely delivery which will not be violated in any time.Even if such does occurs, a customer can choose to return the shirt and giveanother order or get a discount coupon on the purchase of the next shirt.


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13. ORDERINGPROCESS AND POLICY


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14. QUALITYASSURANCE


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15. LOGISTICS


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16. DELIVERYPROCESS &POLICY


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17. CUSTOMER RELATIONSHIPMANAGEMENT


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18. GROWTHFACTORS &STRATEGYOur initial days we will print visiting cards and have partnered with one ofour known and tried tailor. Initially samples and around material for fifty

different kinds of shirts will be prepared with different types of designs andfabrics. It will serve as an advertisement for our perspective customersbecause a customer will only believe in the quality, once he is able to see thefinished garment.Touch, look and feel of the fabric is very important to thecustomer.We will make print pamphlets of our shirting and over product features.These brochures and pamphlets will be circulated within friends, friends offriends and prominent business locations such as II Chundrigar Rd andshahrae-e-faisal. Catalogues with sample of clothing and the images of shirtswill be made to be kept with every of the team member and at the location. A

basic inventory of the cloth will be kept which are advertised in thecatalogues. There will be two kinds of catalogues, one will be a primarycatalogue which will cover few designs of cloth and those will be in ourinventory.The secondary catalogue will be a detailed catalogue which will be shown tothe customer when a probable customer is no satisfied with the range or hasalready made few shirts with us.Once orders start coming and deliveries start being done, the profits will bereinvested in the business. After a certain number of orders and a continuedcustomer base, the team members will leave their jobs and work on thebusiness on a full time basis. Our initial target would be after a certain

number of customers and recurring orders we would take shop on rental.The increase in orders would mean segregation of duties and a system wouldbe developed by Farhan and Adnan that would manage the overall aspect ofrecord keeping and the efficiency of business.The system will issue slips andinvoices to the customer, supplier and tailors.The system would also performorder tracking and know what is wrong.

After increase in sales, we would open an outlet in the Zamzama location thelocation is chosen attract the chosen market and to fetch a higher price forthe shirts and get our initial investment out as soon as possible. Somecompetitors after seeing the opportunity will also try to get into offeringsimilar kinds of services. We have saved some of our tactics for thecompetitors.The first tactics is that of offering ZERO stitch which is veryexpensive and difficult to offer.This would give our competitors a tough timecompeting us. Once the sales increase, we will integrate and increase thenumber of tailors, suppliers and delivery boys. So that deadlines do not getdelayed and having many options means mitigating risks.


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19. IT DIVISION


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20. BREAKEVEN ANALYSIS


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21. PROFITABILITYANALYSIS


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22. CASHMANAGEMENT


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23. RISKS


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24. SUCCESSION PLANNING

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