New+Business+Plan++ +Textile

8/6/2019 New+Business+Plan++ +Textile

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WWW.COLLEGEPROJECTS.INFO

TABLE OF CONTENT

INTRODUCTION:3

S. No TOPICS Page. No

1 INTRODUCTION 5

2 SITUATION ANALYSIS 8

3 SWOT ANALYSIS 9

4 4S OF MARKETING 10

5 BUILDING THE FOUNDATION 11

6 RESEARCH 12

7 CONSUMER BEHAVIOUR 14

8 PRODUCT STRATEGY 16

9 PRICE STRATEGY 18

10 FINANCIAL ANALYSIS 19

11 PROMOTIONAL STRATEGY 22

12 BIBLOGRAPHY 25
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Until the economic liberalization of Indian economy, the India TextileIndustry was predominantly unorganized industry. The opening up ofIndian economy post 1990s led to a stupendous growth of this industry.

India Textile Industry is one of the largest textile industries in the world.Today, Indian economy is largely dependent on textile manufacturingand exports. India earns around 27% of the foreign exchange fromexports of textiles. Further, India Textile Industry contributes about 14%of the total industrial production of India. Furthermore, its contributionto the gross domestic product of India is around 3% and the numbers aresteadily increasing. India Textile Industry involves around 35 millionworkers directly.

Strengths of Indian Textile Industry are as follows -

Huge textile production capacity

Efficient multi-fiber raw material manufacturing capacity

Large pool of skilled and cheap work force

Entrepreneurial skills

Huge export potential Large domestic market

Very low import content

Flexibility

Weaknesses of Indian Textile Industry are as follows -

Increased global competition in the post 2005 trade regime underWTO Imports of cheap textiles from other Asian neighbors Use of outdated manufacturing technology Poor supply chain management Huge unorganized and decentralized sector

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High production cost with respect to other Asian competitors

RETAIL SCENERIO IN INDIA:

As the corporates the Piramals, the Tatas, the Rahejas, ITC,S.Kumars, RPG Enterprises, and mega retailers- Crosswords,Shoppers Stop, and Pantaloons race to revolutionize the retailing sector,retail as an industry in India is coming alive. Retail sales in Indiaamounted to about Rs.7400 billion in 2002, expanded at an averageannual rate of 7% during 1999-2002. With the upturn in economicgrowth during 2003, retail sales are also expected to expand at a higher

pace of nearly 10%. Across the country, retail sales in real terms arepredicted to rise more rapidly than consumer expenditure during 2003-08. The forecast growth in real retail sales during 2003- 2008 is 8.3%

per year, compared with 7.1% for consumer expenditure. Modernizationof the Indian retail sector will be reflected in rapid growth in sales ofsupermarkets, departmental stores and hyper marts. Sales from theselarge-format stores are to expand at growth rates ranging from 24% to49% per year during 2003-2008, according to a latest report by Euromonitor International, a leading provider of global consumer-marketintelligence.

A. T. Kearney Inc. places India 6th on a global retail developmentindex. The country has the highest per capita outlets in the world - 5.5outlets per 1000 population. Around 7% of the population in India isengaged in retailing, as compared to 20% in the USA.

The Ministry of Textiles under the Government of India has taken somesignificant steps to arrest these problems. It has framed "The NationalTextile Policy 2000" to address the aforesaid issues. This policy aims atnegating these problems and increasing the foreign exchange earnings tothe tune of US$ 50 billion by the year 2010. It includes rational road-maps for the development and promotion of all the sectors involved

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directly or indirectly with the textile industry of India. Further, the policy also envisages to bring the unorganized decentralized textilesector (which accounts for 76% of textile production) at par with theorganized mill sector. Furthermore, the policy also aims at introducing

modern and efficient manufacturing machineries and techniques in theIndian textile sector. The Textile and Garment industry are alwaysrequired and are one of the most sought industries. We would like to usethis opportunity for creating my own Brand and stores where highquality designer Shirts will be sold. Our Survey found that Consumersare looking for Branded Garment with high quality/good design/ at anaffordable Price. Thus we come out with my own Brand named HERMES.

SITUATION ANALYSIS

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MARKET SUMMARY:

We possess good information about the market and know a great

deal about the common attributes of the most prized customer.

This information will be leveraged to better understand who is

served, who the customers are, and how we can provide the needs

and communicate with them.

MARKET DEMOGRAPHICS:

We are targeting the age group of people more than 30 which has

more than 50% of our population.

Hence our target group is sufficient for our long term objectives.

MARKET NEEDS:

By our Survey we found that the People prefer Branded shirts with

good quality at less price and we also found that young people

prefer patch work in Branded shirts. Hence we are bringing all

their needs in the form of a new retail store called the HERMES .

MARKET TRENDS:

There will be always a trend for Textile in our Global market,especially for branded Textile products because of change inhuman life style and hence market always has scope on Textile,hence we can adapt easily in the market for our long termobjectives.

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SWOT ANALYSIS:

STRENGTH:

Targeted at the young hearted, middle, manager level and the

corporate people.

The fabric of clothes is so good that it never shrinks or fades itscolour.

The stylish look of the shirts and the special designed collar for thetie wearing people.

The stylish buttons at front pocket and at cuff.

The patch work on the shirts which gives the young generation adesigner wear Look/Feel.

WEAKNESS:

The people are not aware of the retail store/ brand / quality /designof our brand HERMES.

OPPORTUNITIES:

Can capture the economic buyers who look for high quality at anaffordable price.

Can capture the market share with huge numbers.

Can create awareness in the minds of people about our brandHERMES.

In future can come up with trousers and ladies wear.

THREATS:

The non branded shirts in the market and the other brands.

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4PS:

PRODUCT:

The fabric/Trim specifications will be given to the designer so thathe could make the latest design and make use of the appropriatetrims/threads to be used for the shirts.

Our shirts are outsourced as per our Designed TechSheets which isinspected by our quality controllers and then it brought to thestores for the sales.

PRICING:

As per the Costing Sheets the Selling price of the shirts is fixed.

The Skimming of pricing on shirts is not done as we are veryconfident of our quality and making our Customer loyal towardsour Brand for a long term .

PLACE:

Opening a boutique shop of our own brand.

Our shirts will be put up in big shopping malls and big retailstores.

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PROMOTION:

Attractive Visual ads will be hoarded in and around the city to

create awareness of the brand and even ads will be published indaily newspapers.

To create awareness about our brand, the shirts will be put up inmultifaceted stores like LIFESTYLE, WESTSIDE, MEGAMARTetc at a later stages.

BUILDING THE FOUNDATION:

ENVIRON MENT:

THE ENVIRONMENT CONTEXT OF MARKETING IN INDIA:

The awareness of the brand or the product can be brought only bythe marketing people.

The marketing tool used are Advertising, personal selling, PR,Direct Marketing, On-Line promotion and sales promotion.

The INDIAS CONSUMING CLASSES are:

Economic class people

Premium class people

Corporate people

Young hearted people

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RESEARCH

Before starting a Design we do a survey to know on which class of

people will be interested in our product.

The research to be conducted by us is put up below with thegraphical representation

QUESTIONNAIRE

1, what type of materials you prefer in shirts& trousers?

o Lenin

o Cotton

o Polynosic

o Anyother

2, what type of shirt you prefer?

o Shorto Long

o Body fit

o Any other

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3, what type of collar you need in a shirt

o Eton Collar

o Chinese collar

o Normal collaro Any other

4, Do you prefer stylish buttons on your shirt?

o Yeso No

5, What type of design would you like on your shirt?

o Stripes

o Plain

o Checks

o Any other

6, What type of designs you would like to wear?

o Printed

o Embroidery

o Any Other

7, what kind of style you prefer in trousers?

o With pleats

o Without pleats

o Any other

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8, Do you want our brand to produce groom wear?

o Yes

o No

9, What should be the cost for any office wear shirt?

o 750-1000

o 1000-1500

o 1500-2000

o 2000-and above

10, what should be there in a shirt to make it a success? Give yourcomment

CONSUMER BEHAVIOR

The consumer prefers the branded product with the good qualityand exact fit.

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We target the corporate and middle income group buyers by themarket survey.

After survey we found that buyers are in need of quality brandedshirts at less price which gives a new / fresh look, when wornshould give the buyer a good feel.

SEGMENTATION

There are various segmentation in the garments made for the lowclass, economic class and premium class people.

Our shirts are for the economic class and young hearted buyers.

TARGETED CONSUMERS

Targeted at the economic class people especially at the SalesExecutive people, managers and young hearted people.

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PRODUCT STRATEGY

PROCESS OF MANUFACTURING

PRODUCTION MANAGEMENT

The fabric and Trim specification and their samples are given tothe designer for him to create something new.

The designer designs the shirts, the design are like shirts withembroidery, stripes and patch work.

The stylish buttons at front pocket/Collar/Cuff and threads used bythe designer to create a technical sheet once approved by theC.E.O forward the same to Factories and manufacturing starts.

PRODUCTION LIFE CYCLE

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The fabric and trims specified in the Technical Sheets will beordered by the factory and on the confirmation of delivery datesfrom the supplier the factory will give a production plan anddelivery dates.

The above will be followed up by our merchandisers/ designers/Quality Controllers till the 1st output of 10% of order quantity.

First output will be inspected and all specifications will be broughtto match the Approved Technical Sheet.

With major/minor comments the Production will be given a Goahead for Bulk Production.

The Garments will be packed and kept ready on the delivery datefor final inspection before the Goods taken out of the factory.

Our Quality Assurance Department will do one final inspection asper AQL 2.5(Accepted Quality Level)

Once goods cleared By our QA department the goods will bedisplayed in our stores for sales this way we assure ourself of

selling only high quality merchandise.

BRANDING AND PACKING

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The brand name of our shirts and our retail store is going to be

HERMES

our brand logo.

PRICING STRATEGY

The price determination of the product is done based on the cost,competition, orientation and the demand of the product.

The cost of the production is done in such a way that it can makethe production cost as less as possible.

The price of the product (i.e) Shirts is fixed by keeping the price ofthe competitors products.

As the demand increases the production also increases and theprice would be the same even the demand increases cause dontwant to loose the loyalty of the consumers by reducing the price.

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The price of the shirts is prized 15% above as per the productioncost.

FINANCIAL ANALYSIS

INVESTMENTS

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INITIAL INVESTMENT

NELSON (CEO) : Rs. 12,80,000/-

PROSHUNJEET (CMO)

SHOBAN (CFO)

Total : Rs. 12,80,000 /-

FIXED EXPENSES/MONTH

Advance : Rs. 7,00,000/-

Rent : Rs. 82,000/-

Manager : Rs. 15,000/-

Staff Salaries 3 x 4500 : Rs. 13,500/-

Electricity : Rs. 25,000 /-

Telephone : Rs. 3,000/-Postage/Stationery : Rs. 500/-

Transportation : Rs. 8,000/-

Adverstiment : Rs. 35000/-

Maintenance : Rs. 2,000/-

Security : Rs. 3,000/-

Raw materials : Rs. 1,25,000/-

Designer Salary : Rs. 25,000/-

Tailor : Rs. 13,000/-

TOTAL EXPENSE : Rs.10,50,000/-19


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PLANT EXPENSE

Safe : Rs. 50,000/-

Air-conditioning : Rs. 50,000/-

Office furniture : Rs. 23,000/-

Computer : Rs. 62,000/-

Sampling tools : Rs. 5,000/-

Generator : Rs. 40,000/-

TOTAL EXPENSE : Rs. 2,30,000/-

BREAK EVEN POINT

MONTH

SPECIALIZATION

OF SALES

PARTY WEAR/

(875)/QUT.

CASUAL WEAR/

(950)/QUT.

COOPERATE WEAR/

(1075)/QUT.

TOTAL

(RS)

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FIRST 23 20 24 64925

SECOND 21 22 27 68300

THIRD 27 32 38 94875

FOURTH 35 43 47 122000

FIFTH 42 57 62 157550

SIXTH 51 64 69 179600

SEVENTH 62 74 80 210550

EIGHTH 70 85 97 246275

NINTH 80 92 102 1411125

At the ninth month the showroom will take the investmentinvested and come up with profits. The ninth month sales exceed

the investment which will lead to profits so at this point we get thebreak even point. The point at which the showroom is in no lossand no profit.

PROMOTIONAL STRATEGYPOSITIONING OFFERS:

The offers are given during the festival seasons NEW YEAR.

The price and the offer price are same in all our Product SellingAreas.

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The tag used during the sales are been put up below:

SHOP MORE LESS TIME

SALES PROMOTION

Tools for the promotion used are the visual communication on theTelevision channels.

On-Line promotion of the product is done by posing the productsdesign on home pages like Yahoo, and many other popular home

pages.

The ads will be published in magazine like Bollywood star, IndiaToday and many other magazines.

The Hindu and pamphlets will be distributed in major Malls andShopping spots in the city.

PLACEMENT STRATEGIES:

Our shirts will be placed in our showroom first since we are new tothe market we can do the placement strategy according to that.

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Managing Marketing Channels used are the direct marketing ofour brand product (i.e) shirts.

Our shirts will be put up in reputed showrooms like LIFESTYLE,

in big shopping complex like SPENCERS, and our product will bekept at the first rack in all the showrooms so that it attracts thecustomers as they enter into the showroom.

We use only the retailing not the wholesaling techniques forselling our brand product.

DISTRIBUTION CHANNELS:

Two-level Distribution Channel will be used:

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From the production unit the shirt goes to the quality assurancepeople from there it comes to the showroom for the sales thenfrom the showroom the shirts are sold to the consumers.

BIBLOGRAPHY:

texmin.nic.in (Textile ministry of India)

www.google.com

www.bharattextile.com

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http://www.google.com/http://www.bharattextile.com/http://www.google.com/http://www.bharattextile.com/


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textilecommittee.nic.in

www.searchindia.com

NEWSPAPERS & MAGAZINES

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