Business Plan

Shokal Boutique Shop

# Executive Summary

Boutique Shop is a new apparel store that caters to the people .Our focus is to provide
customized wear apparel and accessories, and position ourselves as the top retail store servicing
this particular market.
Our intentions are provide wear to local population who enjoy wearing fashionable apparel.
We believe that this is critical to our initial success and long-term growth. Shokal will provide
services such as Style Assessments, alterations, personal shopping, and special ordering to
customers during store hours. Style Concierges who are trained within the image industry
will be available to customers on a daily basis.Shokal innovative & traditional Style
Assessments in helping women develop their personal styles will enhance our reputation as
a truly unique boutique.

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Chapter 1 : Company description

1.1:Company Name : Shokal Boutique Shop

1.2 Background :

This is a detailed report on Boutique Houses in Bangladesh. Its main aim is to give an overview
of how fashion sector capturing Boutique Houses, how is the completion of the market between
various Boutique companies, how marketing strategies of Boutique Houses are related to the
behavior of the consumers in their target market; how consumers perceive the need satisfaction
by Boutique Houses along with related recommendations on improving their marketing
strategies with respect to their valued actual and potential customers.

1.3 Objective

1. To create a shopping environment that caters to the apparel needs of the customers.
2. To receive a 50% profit margin within the first year.
3. To have a customer base of 1,000 by the end of the first operating year.
4. To create employment opportunity.
5. To conserve and uphold culture and values by providing domestic products to customers.
6. To generate scope for enhancement for related industries like those who provide the raw
material.

1.4 Mission
Shoakl Boutique Shop’s mission is to offer quality, name brand accessories and clothing in
customize sizes and styles to accommodate varying styles and shapes

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1.5 Location and business time:
We will belocated at Gazipur Chourasta.The hours of operation will be Saturday - Thursday 9
a.m. - 8 p.m. and Friday is off day. There will be extended special hours for Festivals like Eid-
Ul-Fitr and Eid-Ul-Azha, and New Year.

Chapter 2 Company Overview

2.1 Entrepreneurs:

Shokal Boutique Shop is organized as a partnership among the four partners of Sumiya Afrin
Aney, Maruf Ahmed , MD. Hasime Rafsanjani and Shariful Islam Shonchoi.

2.2 SWOT analysis

Strength
1. Premium price charged to reflect innovation and creativity.
2. High quality raw materials are collected from renowned fashion house.
3. Timely delivery for ordered products.
4. The location of the shop is very much favorable because there is not enough boutique shop
for local customers .

Weakness

1. Being a new entrant is one of the weaknesses of the boutique shop.

Opportunity
1. A partially fulfilled local customer need is a great opportunity for the shop.

Threat

1. Increasing market price of raw materials and labor.

2.3: industry information :

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2.4: Rational reasons for attracting this business:
Now a day’s people are very much conscious about fashion and style and as a beginning
entrepreneur comparability few chance to loss .we can make enough profit with limited capital

2.5 Company Locations and Facilities

SHOKAL Boutique Shop will be located at Gazipur chourasta. This space has 1,200 square feet
and has been rented for two years. This location is central to the geographical location for the
Gazipur community. We feel it is essential to our initial and ongoing success that we locate
ourselves in the heartbeat of the community. We also strive to create an atmosphere of
acceptance and community, as well as a retail environment where individuals can identify and
bond with their culture.
All business deliveries will be handled through the showroom. The factory is near by the
showroom so no extra transportation cost will be needed to bring the products from the Factory
to showroom.

Chapter 3 Product, Market, Competition

3.1 Target customers :

Shokal target customer is mainly women in Gazipur town.

3.2 Product
Shokal Boutique Shop will carry traditional wear brands. The greatest percentage of merchandise will be
in apparel, followed by accessories, and gifts.
Management will rely on customer feedback, suggestions, and sales reports to introduce or eliminate
certain brands, styles and sizes.

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BED SHEET

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BABY ITEAM

Saree
Salwar Kameez
Kids' Item
Bed cover
Cushion cover
Curtain
Others

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3.3 Technology
Retail apparel establishments have a tendency to have a high number of customers because of the
level of inventory. It is imperative that an advanced inventory and point of sales program be
utilized to track sales.
Our business plan will be generated and reviewed on a bi-annual basis and reviewed quarterly to
ensure all financial goals and objectives are being reached. It will allow us to make the most of
our limited marketing budget by focusing our communications on our target markets and
enhancing our marketing knowledge.

3.4 Future Products

As we achieve and exceed our sales and profitability goals, Shokal Boutique Shop will add other
products to the product line and our own personal in-house label of clothing that will include
shirts for women and shirts & Punjabi for men. We will expand our line of brands with those that
have been repeatedly requested by our customers. An e-commerce website will also be created to
increase our distribution channels and expand our customer.

3.5 Market

3.5.1 Market Analysis Summary

The primary target customer of Shokal Boutique Shop will be the local women in the Gazipur
region. As we are situated in the center of the residential community we believe they will make
up the largest percentage of our customer base.

The last target customer Shokal Boutique Shop is listed as other. As popularity about the store
increases we expect to see an assortment of curiosity seekers as well as seasonal purchasers
during festival season.

3.5.2 Market Trends

Millions of people around the world instantly recognize and identify with traditional apparel.
Our traditional clothing has survived many eras. There will always be future for traditional
apparel. Within the last four years the traditional stylish look has made a huge place in the
fashion industry. Boutique intends to use its place in the community to heighten the awareness
of the Bangladeshi culture.

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3.5.3 Market Needs
There are several important needs in the boutique business that are being either underserved or
not met at all. Shokal Boutique Shop plans to meet and service those needs.
1.Shokal will provide a large assortment of sizes to compliment the various body shapes and
sizes of the local community.
2.Focus and attention to customer's personal preferences and customer retention will be given
high priority. Because of the high rate of employee turnover at major mass retailers, customer
service and personal detail has been lost.

3.5.4 Industry Analysis

Boutique shops fall within several kinds of stores:
 Small Specialty Stores: The majority of boutique is sold through small family-run
specialty stores that are located in or near neighborhood communities. Dhaka boutique is an
example of this type of store.
 Large Multi-owned Retailers: These large stores mass market and sell to hardcore
enthusiasts as well as the local tourists and seasonal purchases. Examples include She.

3.5.5 Market Growth

Market growth is in an upward motion, despite some of the latest economic downturns in our
country. Now days, Gazipur has become a commercial & residential area because of the
establishment of various educational institutions, Garments development companies & another
organizations. Moreover the numbers of working women are increasing in the city who is very
much concerned about their attire. For these reasons and more this area is more reliable place for
Shokal Boutique Shop.

3.6 Competition

3.6.1 Competitive Comparison

Shokal Boutique Shop has a number of advantages that will allow us to build our brand identity,
add value to our merchandise and build a loyal customer base while standing apart from our
competitors.
1. Shokal Shopper Card' will entitle customers to a 15% discount after ten purchases.
2. We will offer clothing to fit plus size for all.
3. We will create a sense of culture and bonding with the community by offering products that
combine both the culture and innovation.

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4. Our location is central to our target customer base.
5. We will maintain a detailed record on each customer, logging addresses, their purchases, size,
and brand for customer follow-up and in-house promotional purposes.

3.6.2 Commercial Viability

1. It will create employment opportunities as well as providing scope for related industries.

2. There is a huge demand for clothing, as these items reflect one’s personality and status.

3. The plan is acceptable as there will be no environmental degradation.

4. The investment cost is comparatively lower.

5 .The employees required for the project are few in number and available.

6. As the investment is lower the risk associated with the plan is also low.

3.6.3 Competitive Edge

1. The shokal Shopper Card which allows the customer a 15% discount after ten purchases.
2. Our location in the community will offer closer access to our target customer base.
3. We will offer plus sizes for women.

Chapter 4 Organizational Plan

4.1 Organizational Structure

Shokal Boutique Shop is a small business and therefore requires a simple organizational
structure. All decisions are made in-line with the company objectives. Employee tasks are
delegated based upon their level of expertise, creativity, strengths and weaknesses.

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4.2 Employees
I n Shokal Boutique Shop requires a few sales people and one manager. The personnel plan is
included in the following table below. There will be six full-time employee and two part-time
employees working 20-30 hours per week. All employee's will benefit from a one day paid
holiday on their respective birthdays and one week of paid vacation after twelve months of
employment.

At this time medical benefits will not be offered to employees. As profits increase in the future
medical benefits will be offered to all employees

Full time position 40000

Part-time position 8000
Total pepole 8

4.3 Management Team

There are four entrepreneur divided their work between them .They divide their work in order of
ability, experience etc.
All partners will be responsible for all administrative functions, purchasing, inventory control,
and promotions. They will also act as a part-time sales representative

4.4 Management Summary

Employees will be encouraged to work within their creative, physical, and intellectual
boundaries. All duties will be divided and delegated according to strengths and weaknesses. At
Shokal we will expect a high degree of customer service skills and personality as this is essential
to our success.

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Chapter 5 Marketing program

5.1 Strategy and Implementation Summary

Shokal boutique shop’s goal is to provide apparel to the underserved market of the community
who desires differentiated cloths. The major boutiques have left a hole in this market by not
providing differentiated products by focusing on customer preferences.
Our intention is to gain 60% of this market profit by focusing on our niche positioning,
neighborhood location, brand that we sell, hospitality and special promotions.

5.2 Sales Literature

Shokal Boutique Shop will use a targeted advertising and sales program to generate publicity and
build a customer base.
1.500 full-color postcard flyers with a 10% coupon will be distributed throughout Gazipur two
weeks prior to the grand opening event.
2.100 grand opening invites will be mailed to potential new customers two weeks before the
grand opening. The invitation will also include a promotional 10%coupon off a customer's first
purchase. The customer mailing list has been compiled from contacts the owners have made
while in the community.

5.2 Marketing Strategy

Our marketing strategy will focus heavily on sales promotion, niche positioning in the market
and customer service with loyalty and retention in sales.
1. The marketing budget will not exceed 5% of our gross annual sales.
2. Our promotions will always stay in tune with our company objectives and mission statement.

5.2.1 Positioning Statement

For the more full-bodied individual seeking creatively designed apparel, Shokal will offer brand
traditional wear in a larger assortment of styles and sizes that aren't always readily available in
the mass apparel retailers.

5.2.2 Pricing Strategy

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Shokal maintain a premium pricing strategy. We base the product lines that we carry on their
reputation and quality as clothing. Most of our lines come with a suggested retail price that we
will follow. We will also utilize the standard practice of key stoning as well.

5.2.3 Promotion Strategy

Shokal boutique shop will follow an aggressive yet creative promotional plan. This will allow us
to focus directly on our target customer while still being conservative with our advertising
money.
1. A press release kit will be sent to all major media outlets in Gazipur highlighting the grand
opening of the shop in the city. This kit will include a press release, pictures of the interior space,
color postcard/flyer, and a business card.
2.500 4x5 color flyers/postcards will be distributed throughout the city at local clubs, colleges
and universities.
3. A direct mail program that will further focus on and target the top 50% customer base with
special in-house sales and promotions.

5.2.4 Distribution Strategy

Our retail location will be the foundation of building our customer base. We will also manage a
direct mail program that will focus on our top 50% customers spotlighting any in-house sales and
promotions.

5.2.5 Marketing Programs

Our marketing programs will consist of the distribution of 500 color flyers two weeks prior to
our grand opening event.

5.3 Sales Strategy

We will offer a 14day return/exchange policy to build trust with our customers and maintain
retention and loyalty.

5.3.1 Sales Forecast

The following table and chart give a highlight on forecasted sales. We expect sales to start off
conservatively and increase extensively during the Eid holiday shopping season and during the
months of summer.
Shokal has planned for a steady growth for the first year and status in the community. In the
second and third year we look to see an increase of revenue of 20% as we gain a larger
percentage customer.

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Item wise Sales by 1st Year

Item Revenue (tk)

Saree 180,000
Salwar Kameez 220,000
Kids' Item 85,000
Bed cover 60,000
Cushion cover 78,000
Curtain 62,000
Others 15,000

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Chapter 6 : Demand Forecasting
6.1 Market potentiality:

The local population 123,531

Local per capital income yearly x75000 tk

Gross local income per year tk 9264825000

Percentage spent on cloth x .08

Total market potential 741186000

Market share =700000/741186000

=0.09%

Chapter 7 :Financial Plan

7.1 The growth of Shokal Boutique Shop will be moderate and the cash balance will always be
positive. Being a retail environment we will not be selling on credit. We will accept cash. Later
we will accept checks, and all major credit cards. Marketing and advertising will remain at or
below 5% of sales. We will continue to reinvest residual profits into company expansion, and
personnel.

7.2 Important Assumptions

Shokal does not sell on credit nor does it offer layaways at this time. We accept cash. All sales
revenue will be deposited in our business checking account within 48hours. Our business
checking account will be with HSBC Bank.

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7.2 Start-up Summary
Shokal Boutique Shop’s incorporation costs are listed below. The company will start with three
months inventory on hand for apparel and accessories as this are the main revenue generator. The
majority of the company's assets will reside in inventory. The opening days cash on hand balance
will be Tk384.
The financing will include an owners investment of Tk5100.

Start-up

Start-up Expenses
Trade License Tk.1, 000
Grand Opening Event Tk.10,000
Telephone & Utilities (3 months) Tk.1,500
Infrastructure Development
Tk.150,000
Store Fixtures/ Decorations
Tk 20,000
Factory
Staffing and Recruitment Tk.20,000
Advertising & Promotion Tk.15,000
Raw material collection Tk.70,000
Purchase of Machinery Tk.90,000
Installation Cost Tk.10,000
Business/Office Supplies/Stationary Tk. 1,000
Accessories (Dices, Frames) Tk.10,000
Total Start-up Expenses Tk.398,500
Note: It will take 8 weeks to prepare for and start the venture.

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7.3 Benchmarks
The following chart shows the benchmark figures for Rongdhonu.

7.4 Break- even point

7.4.1Fixed Expenses

Showroom 150,000
Factory 20,000
Machinery 90,000
Installation Expenses 10,000
Preliminary Expenses 10,000

Total 280,000

7.4.2 Selling price

Cost + Profit

=280000+195200

=475200

Selling unit 150,so selling price per unit Tk3168

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Variable cost per unit 60% of 3168 =Tk1900

7.4.3 Break- even point

Fixed cost/(selling price per unit- Variable cost per unit)=221

Chapter 8 : Risk Management

The risks that may occur in this project are:

8.1 Pure Risk: The revenues and cash inflows of the project may be lower than the expected
indifferent years.

8.2 Systematic Risk: Political changes may hamper the production of the project.

8.3 Market Risk: Macroeconomic factors like inflation can have an impact on the project and
fluctuation of demand. Cost reduction and increased production may be a way output it will
become difficult to maintain quality.

8.4 Instrumental Risk: The machineries may go out of order any time. So the business runs
the risk of machinery shortages.

8.5 Team Risks: Workers may go for strike, which may hinder production process. Some
Entrepreneurs may not interest in venture.

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Chapter : 9. Conclusion
The plan for the boutique shop has been designed bearing the demand for innovative
clothing in mind. Such a plan is also judged financially and market projections are
included.In boutique industry there is oppurtunity to successful in business as a new
venture.

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