BUSINESS PLAN

LINGERIE STORE

O’men Intimates
SUBMITTED BY
PRITHWIRAJ DEB
ROLL NO: 38
HRM
SS08-10
Executive Summary
 
Introduction
This plan outlines the financial and promotional
plans of O’men Intimates, to be located in
Commercial Street, Bangalore
This exciting endeavor will bring a needed women's
intimate apparel store with special attention to
college students and working women in the metro
area
ultimate goal is to be the premier intimate apparel
and swimwear store in Bangalore
The store will be located in the shopping up-market
of Commercial Street, Bangalore. The space is 2,000
(10 x 200) square feet.
Executive Summary(Contd…)
 O’men has a very strong, dedicated and professional
The Company

management team. With each member working in their

area of specialization we have every aspect of the
business covered
Ritika Choudhury will be: Owner/Operator with 19%
ownership and will be responsible for buying, customer
sales and fittings.
Reni Sebastian will be: Co-owner with 26% ownership
and will act as Operation Manager responsible for
payable and receivables, inventory control, in store
promotions, billing and sales.
Prithwiraj Deb will be: Co-owner with 55% ownership
and will act as merchandising consultant, employee
training and part-time sales
The Products
quality European and American products, such
as Triumph, Prima Donna, Wacoal,
OnGossomer, Jockey women, and Feline
fancy and trendy Chinese and Korean
innerwears that most of the students go in for
swimwear, nightwear/At Home-wear and
hosiery.
The Market
lingerie as a product category has a wide
product base to offer
Indian women are coming of age; financial
freedom is one of the top priorities of Indian
women and they are not shy of their wants.
Rs. 1645 crores (US$370.3 million) and still
growing…mostly untapped
Figure 1: Value of lingerie market in India:
2003-2007
Financial Projections
O’men Intimates' financial goals are the
following:
To achieve a net profit margin of over 7% the
second year of operation and 15% the third.
To achieve a net profit of Rs.20 lacs the second
year and over Rs 50 lacs the third year

In order to achieve such figures, we have start-

up requirements of approximately Rs 5 crores
approx, including Rs 70 lacs in initial inventory.
We will seek a five year loan, working with Bank
of Baroda in Bangalore, to make the first year's
payments as flexible as possible.
 Objectives
To create a point of destination shop for
premier lingerie, swimwear and personalized
fitting service.
To achieve the greatest portion of market share
in the region for speciality foundation
garments.
To be active in supporting women's and
community organizations, connecting events to
in-store promotions.
To achieve a net profit margin of over 7% the
second year of operation and 15% the third.
To achieve a net profit of Rs 20 lacs the second
Mission
To be the premier intimate apparel and
swimwear store in Bangalore, fitting every
customer in a fashionable bra or swimsuit,
giving her incredible support and shape,
therefore enhancing her entire silhouette!
Company Summary
will be doing business as O’men Intimates
located in the shopping hub of Commercial
Street, Bangalore
The product lines will be selected on the
following criteria: reputation, quality and
extensive size range offered.
Start-up Summary
Start-up costs will be financed as follows:
Owners' investment Rs 19.5 lacs
Five-year bank loan Rs 80 lacs
Short-term revolving line of credit Rs 17 lacs,
for inventory replenishment and new
purchases, during months of high receipts.
Start-up Requirements
 Total Start-up Expenses-Rs 55,59,500
Total Assets- Rs 42,50,000
………………………………………………………………..
Total Requirements- Rs 98,09,500

Start-up Funding
Start-up Expenses to Fund-Rs 55,59,500
Start-up Assets to Fund- Rs 42,50,000
………………………………………………………………
………
Total Funding Required - Rs 98,09,500
Product Description
Bra/intimate apparel (coordinate
bottoms)
Shapewear
Swimwear and swim accessories
Nightwear/At Home-wear
Hosiery
Others-accessories, such as lingerie wash,
swim wash, and comfy straps (bra accessories)
Competitive Edge
 
Our location is central to our target market.
The business will use the Retail Pro software
system
detailed record on each customer, logging her
purchases, size, brand preference, etc., for
customer follow-up and promotional purposes.
Sourcing

The International Lingerie Show (January in

Paris)
The Intimate Apparel Salon (March in New York
Wills Lifestyle Fashion Week
The International Intimate Apparel & Swimwear
Show (September in Lyon, France)
Market Analysis Summary

 Many independent stores across the country have been

experiencing double digit sales increases for the last five
years
 bra fitting, proved to be a motivator for the metro customers
to seek out a local store to get fitted.

Market
Needs
othere is a large void in the market regarding sexy, comfortable
lingerie
oAlso there’s a good need for bras, inners and lingerie for full-
bodied women.
oA store that tracks her purchases, preferences and size
information and will contact her when an item arrives that may
interest her
oA store that will do minor alterations, to ensure the fit
Market growth/trends:
Market trends are favorable .Growing an
average of 10.25% each year, this trend shows
there is a definite need for an intimate apparel
store.
RECENT TRENDS:
according to Indian Retail Index Survey, the
lingerie industry is least affected by the recent
market conditions.
Main Competitors

Impressions, Commercial Street

UnderWear World, Commercial Street
Straps, Eva Mall
Industry Analysis

Information on the industry was supplied by

the Intimate Apparel Advertising Manager
at Women's Wear Daily. WWD conducts the
largest portion of fashion industry (retail and
wholesale) statistics and investigative reports.
The paper has recently reported that the
innerwear or intimate apparel industry from
1997 to 1999 grew by 10% or $11.8 billion
"Women tend to purchase intimate apparel
(meaning foundations), from specialists."
Non-Chain Speciality stores in 1997 captured
$304 million of the total $10,702 million market
and in 1999, $341 million of $11,797
million intimate apparel market. Direct mail
merchants gained the largest portion of market
share in the past two years, at $914 million in
1999. Most of the increase was due to Internet
sales.
Distribution Patterns
According to the WWD India, From 1997 to 1999
the total women's intimate apparel, or innerwear,
market grew by 10%, to $11.8 billion. All product
categories saw robust growth during this period,
with the highest growth occurring in Bras (17%)
and Bottoms (12%).
Bras/Intimate Apparel represents the largest
percent of total women's intimate apparel sales at
39%, followed by sleepwear at 24%.
Bottoms also had substantial growth at 12%
Loungewear/At Home-wear over 10%
Shapewear will grow by 20%
Strategy and Implementation Summary

 O’men strategy to gain the largest portion of market share.

 Policies geared toward total customer service and retention.
 Create a warm and natural shopping environment for women
of all shapes and sizes to feel comfortable, serving
refreshments, making her feel welcome.
 Employees that are well trained, compensated and
appreciated, taking part in fashion merchandising and
window decor. We will hold monthly meetings recognizing
their contributions and creativity in an applauded way.
 
Sales Strategy
 

sell a minimum of two units per transaction, an

average item being $72, we aim for a total sale
of $144.
customer purchase will include care
instructions. While being fitted the salesperson
will explain product care
Taking part and sponsoring community needs
such as breast cancer awareness
Utilizing the Retail Pro system enable us to
create a contact list for promotions, special
events and the arrival of new products.
Promotional Plan
 Opening Party for the press, friends and family.
 Press Release kit sent to all major media and organizations 2-
3 weeks prior to opening.
 Give a short presentation to various Plastic Surgeons to
explain how we can care and fit their patients.(aimed toward
enhancement and reduction surgeries.)
 The start of our campaign "Have a fit during lunch"
Management Summary

Management Team
 Ritika Choudhury will be: Owner/Operator with 19%
ownership and will be responsible for buying, customer sales
and fittings.
 Reni Sebastian will be: Co-owner with 26% ownership and
will act as Operation Manager responsible for payable and
receivables, inventory control, in store promotions, billing and
sales.
 Prithwiraj Deb will be: Co-owner with 55% ownership and
will act as merchandising consultant, employee training and
part-time sales
 We will employ part-time help of college girls to be cost
effective.
Personnel Plan

store will be open seven days a week

For the Holiday season we will extend our
hours
As long as there is a customer in the store we
will stay open and serve her.
Financial Plan
Being a retail store we will not be selling on
credit, nor will we have lay-aways.
The first year we will keep the part-time help to
a minimum.
Due to the soft economy we plan on a better
interest rate than offered in the past five years.
Important Assumptions

Our business checking account will be with

Axis Bank, in M.G.Road.
Break-even Analysis
Monthly Revenue Break-even Rs 16,18,350
Assumptions:
Average Percent Variable Cost42%
Estimated Monthly Fixed Cost Rs 9,36,350