Belle

Business Plan Outline 1. Executive summery 3 1.1 Objective 4 1.2 Mission 4 1.3 Keys to success 4 2 Company summary 4 2.1 Company ownership 5 2.2 Startup summary 5 2.3 Company location and facilities 8 3 Products 9 3.1 Product description 9 3.3 Sales literature 9 3.4 Sourcing 10 3.5 Technology 10 3.6 Future products 10 4 Market analysis summary 11 4.1 Market segmentation 12 4.2 Target market segment strategy 12 4.3 Main competitors 13 5 Strategy and implementation summary 14 5.1 Competitive edge 16 5.2 Marketing strategy 16 5.3 Sales strategy and forecast 17 6 Organizational structure 19 7 Financial plan, key indicator and breakeven

20

Executive Summary Gone are the days when Indian women were just home makers. Today she is into mul ti tasking and their expectation from themselves has gone up by leaps and bounds . The work participation rate of women in India has increased from 19.67% in 198 1 to 25.68%, with a higher rate in urban areas at 30.98%.India has the worlds lar gest number of professionally qualified women (doctors (doctors, surgeons, scien tists and professors) Women entering earlier male dominated professions fuels de mand for convenient western wear. In the software industry an estimated 30% of the workforce is woman. According to a study in Delhi as result of rising income le vels, nearly 75% couples falling in DINK (double (double income no kids) catego ry with about Rs 66 lakh-88 lakhs of per annum and are roughly spending Rs 15,0 00-20,000 on entertainment, shopping, fitness centers, eating out and branded we ar articles every month. Belle is a new apparel store that caters to the working women community in metro politans, India. As our name suggests our focus is to provide formal wears l a nd accessories, and position ourselves as the top retail store servicing this pa

rticular market. We are the first store in India which focus on especially womens formal and semi formal apparel. Our intentions are to obtain 80% market share and become a centr al hub of shopping activity for the Indian working women population. Belle Western Wear will be located initially at Ambiance mall, Vasant Kunj with further expansion plans at other malls as well. 1.1 Objective: 1. To create a shopping environment that caters to the apparel needs of the urban working women who like to experiment while dressing up daily for office. 2. To earn 80% market share and become the number one formal western wear a pparel store in Delhi and achieve name recognition in the target community. 3. To receive a 50% profit margin within the first year. 4. To have a customer base of 1,000 by the end of the first operating year. 5. To achieve a net profit of Rs 25 lakhs by year two and Rs 1 crore by yea r three. 1.2 Mission Belles mission is to offer quality, name, brand and formal wear in an assortment of sizes and styles to accommodate all varying body styles and shapes. 1.3 Keys to Success In order to succeed in the womens formal wear apparel industry Mahogany Western W ear must: Carry an assortment of sizes to fit the more ample frames of their target custom er base. Provide customers with top notch personalized customer service in an atmosphere of indian hospitality. Advertise and promote in areas that our target customer base will learn about ou r store. Continuously review our inventory and sales and adjust our inventory levels acco rdingly. Focus on the design esp semi formals and the total looks to entice as well as ed ucate the customers. Company Summary Belle is a private Ltd company owned by Pankhuri bhardwaj. We will be located at Ambience mall, Vasant Kunj, being the epi-center of the wo rking women fashion conscious community. The hours of operation will be seven days every week from 10 a.m. - 8 p.m. All merchandise will be purchased according to the company s mission and custome r focus of outfitting all sizes including women s plus sizes. 2.1 Company Ownership Belle is a private Ltd company owned by Pankhuri Bhardwaj. 2.2 Start-up Summary Belles Private Ltd costs are listed below. The company will start with three mont hs inventory on hand for apparel and accessories as this is the main revenue gen erator. The majority of the company s assets will reside in inventory. The openi ng days cash on hand balance will be Rs 19,200/The purpose of this business plan is to secure a Rs 8,35,000 loan. This suppleme ntal financing is required to work on site preparation, inventory, and operation al expenses. The loan amount appears in the long-term liability row of the start -up summary. Other financing will include an owners investment of Rs 2,55,000. and a short term revolving line of credit of Rs100,000 for inventory replenishme nt during months of high receipts. Successful operation and building a loyal customer base will allow Belle to be s elf sufficient and profitable in year two. Start-up Funding (Rs) Start-up Expenses to Fund

4,70,800

Start-up Assets to Fund 7,19,200 Total Funding Required 11,90,000 Assets Non-cash Assets from Start-up 7,00,000 Cash Requirements from Start-up 19,200 Additional Cash Raised 0.00 Cash Balance on Starting Date 19,200 Total Assets 7,19,200 Liabilities and Capital Liabilities Current Borrowing 0.00 Long-term Liabilities 8,35,000 Accounts Payable (Outstanding Bills) 0.00 Other Current Liabilities (interest-free) 10,000 Total Liabilities 9,35,000 Capital Planned Investment Owners Investment - Cash 2,55,000 Other 0 Additional Investment Requirement 0 Total Planned Investment 2,55,000 Loss at Start-up (Start-up Expenses) (4,70,800) Total Capital (2,15,800) Total Capital and Liabilities 7,19,200 Total Funding 11,90,000 Requirements Start-up Expenses Rent 80,300 Grand Opening Event 20,000 Telephone & Utilities (3 months) 25,000 Travel (sourcing) 17,500 Business Insurance 30,000 Advertising & Promotion 50,000 Store Fixtures/Decorations 75,000 Computer/Cash Register 47,500 Signage (Including Permits) 20,000 Organizational Dues & Subscriptions 6,250 Business/Office Supplies 20,000 Other 25,000 Total Start-up Expenses 4,65,800 Start-up Assets Cash Required 19,200 Start-up Inventory 7,00,000 Other Current Assets 0 Long-term Assets 0 Total Assets 7,19,200 Total Requirements 11,90,000 2.3 Company Locations and Facilities Belle will be located at Ambience mall, Vasant Kunj. This space has 1,020 square feet and has been leased for two years. 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 and shipments will be handled through the store. The com pany office will also be housed at this location initially. Products

Belle is a brand for office wear catering the need of every age group in Metropo litan cities with a creative bend in the designs. The main motto is to provide s emi casual or designer office wear catering to women who are working and loves t o dress up themselves in a different style, so that they can define their own id entity. The greatest percentage of merchandise will be in apparel, followed by a ccessories, hats, and gifts. Management will rely on customer feedback, suggestions, and sales reports to int roduce or eliminate certain design, styles and sizes. 3.1 Product Description Belle will provide a selection of styles that fall within our mission statement. Our goal is to carry a selection of styles from basic office wears to semi casu al as well as some designer office wears. 3.2 Competitive Comparison Belle 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 apa rt from our competitors. We will be the first only womens office wear with a design bend. The Mahogany Shopper Card will entitle customers to a 15% discount after ten p urchases. We will offer clothing to fit plus-size women. We will create a sense of culture and bonding with the community by offering pro ducts that combine both the Indian and western cultures. Our location is central to our target customer base. We will maintain a detailed record on each customer, logging addresses, their pu rchases, size, and styles for customer follow-up and in-house promotional purpos es. 3.3 Sales Literature Belle will use a targeted advertising and sales program to generate publicity an d build a customer base. 2,500 full-color postcard flyers with a 10% coupon will be distributed throughou t Delhi and NCR, two weeks prior to the grand opening event. 200 grand opening invites will be mailed to potential new customers two weeks be fore the grand opening . The invitation will also include a promotional 10% coup on off a customer s first purchase. The customer mailing list has been compiled from contacts the owners have made while in the community. 5,000 business cards with a Mahogany Frequent Shopper Card on the reverse side e ntitling the customer to a 15% discount on the eleventh purchase after ten purch ases. 3.4 Sourcing We will source our merchandise as outlined below: With manufacturers who have a regional representative and factory located in Del hi and NCR , we will place our weekly and monthly reorders with them and review new products. Special focus will be given with the design team who will guide the manufacturer s constantly to come up with the desired designs. . We will also work to solidify our relationships with sales representatives and v endors so that we may achieve decreased cost of goods. Our competitors, (both di rect and indirect) purchase from the same sources and we believe that through ma rketing programs and strategic alliances we will begin to gain a competitive adv antage. 3.5 Technology Retail apparel establishments have a tendency to have a high number of SKU s bec ause of the level of inventory. It is imperative that an advanced inventory and point of sales program be utilized to maintain stock levels and track sales. Bel le will utilize Peachtree Accounting software for all financial and accounting p urposes. For inventory management and point of sale transactions we will utilize Retail Navigator software. This product is a software that allows the small, s ingle store retailer to manage their inventory and point of sale functions all i

n one. Our business plan will be generated and reviewed on a bi-annual basis and review ed quarterly to ensure all financial goals and objectives are being reached. Pal o Alto s companion software, Marketing Plan Pro, will allow us to make the most of our limited marketing budget by focusing our communications on our target mar kets and enhancing our marketing knowledge. 3.6 Future Products As we achieve and exceed our sales and profitability goals, Belle will add forma l shoes and bags to the product line. We will expand our line of brands with tho se that have been repeatedly requested by our customers. An e-commerce website w ill also be created to increase our distribution channels and expand our custome r base to a national level. Market Analysis Summary The primary target customer of Belle will be the working women located in Delhi and NCR. As we are situated in the epi-center of their community we believe the y will make up the largest percentage of our customer base. The secondary target customers are the women who like to dress up in a semi casu al way. The last target customer of Belle is listed as other. As popularity about the st ore increases we expect to see an assortment of curiosity seekers, and local res idents from the community as well as seasonal purchasers. 4.1 Market Segmentation The working fashion conscious women population is concentrated heavily in the so uthern part of the city therefore leading to the highest concentration of our cu stomer base. Target Market: Working women who wants to keep themselves updated with the latest trend even at work. Independent, fashion conscious, mostly unmarried or falling in DINK (double (dou ble income no kids) category, nuclear family. With a disposable income of Rs 20,000 to 25,000 per month. The last area of potential customers is labeled as "other." Because Belle offers a variety of western and southwestern wear apparel, along with accessories and gifts we feel that we will attract many curious shoppers. Our ambience and custo mer service will make them repeat customers.

4.2 Target Market Segment Strategy The goal of Belle is to serve the women who are working and have difficulty fin ding the looks for themselves and want to dress up differently to office every d ay. And the women who like to dress up in a semi casual way. Both of these markets are underserved in the major western retailer outlets. 4.2.1 Market Needs There are several important needs in the women formal wear apparel business that are being either underserved or not met at all. Belle plans to meet and service those needs. Belle will provide a large assortment of sizes to compliment the various body sh apes and sizes of the ethnic community. This is a size segment that is missing t hroughout the larger formal wear apparel retailers in the city. Focus and attention to customer s personal preferences and customer retention wi ll be given high priority. Because of the high rate of employee turnover at majo

r mass retailers, customer service and personal detail has been lost. 4.2.2 Industry Analysis Women formal wear apparel retailers are made of several kinds of stores: Mens wear brands: The majority of womens formal wear is sold through the brands wh o are majorly in Mens wear and now introduced womens formal wear. 85% of the purch asing statistics for western apparel is derived from these stores. Large Multi-owned Western Wear Retailers: These large stores mass market and sel l to hardcore enthusiasts. 4.3 Main Competitors Belle has three competitors in the nearby mall: Van Heusen, Allen Solly, Marks & Spencers. Assessment of Competitor Marketing strategies & strengths and weaknesses: VAN HEUSEN ALLEN SOLLY MARKS & SPENCERS Product / Service strategies Very formal Shirts and then dresses. Very for mal, shirts little casual but very limited styles. Slightly semi casual des igns but very limited styles and colors. Pricing Strategies Distribution Strategies Only one corner in the entire store is dedicated to this section. One or two stores for Allen Solly women, in metro cities strict ly Fairly distributed but only in cities like Delhi, Bangalore, Mumbai and Pune. Promotion strategies Mostly print media. Print Media mostly. Print me dia Strength and weakness Strength and weaknesses: ALLEN SOLLY: STRENGTH: 1. The brand is present in more than 50 countries. 2. In-house and experienced design and product teams are available with Al len Solly. 3. Premium fashion and international fashion also available. 4. Work casuals in bold colours, innovative fabric and young fits. 5. Strong Management team also is strength to the company WEAKNESS: 1. Global penetration is limited as compared to a few other international b rands. 2. Presence of Indian and international brands offers more offering to cust omers therefore high brand switching VAN HEUSEN: Strength 1. The company is an Indian corporate wear brand hence has an Indian appeal . 2. The brand is a premium lifestyle brand for men, women and youth. 3. The brand has a wide category of clothing for both men and women in corp orate wear. 4. Many international popular celebrities have endorsed Van Heusen. 5. Van Heusen is the official clothier for Buckingham Palace. 6. Van Heusen is also the world s largest selling shirt brand. Weakness: 1. The brand has to deal with a lot of replica and pirated products which h urt its brand. 2. Strong competition means market share growth is slow.

MARKS & SPENCERS Strength 1. It is one of the most powerful retail brand with a top of the mind recal l. 2. M&Ss products are perceives as value for money due to quality, convenience and wide range of products. 3. They have their own branded labels 4. It has over 1000+ stores present across 40 countries 5. Over 80,000 employees form a part of the workforce globally Weakness: 1. Strong competition from other retail brands means limited market share. 2. Being a popular brand, they need to protect their brand from misuse of f ake imitation products. Strategy and Implementation Summary Belle s goal is to provide apparel to the underserved market of the womens formal wear. The major apparel retailers have left a hole in this market by not provid ing a larger assortment of sizes and styles and design as well as semi casual an d designer office wear. Our intention is to gain 80% of this market share by focusing on our niche posit ioning, neighborhood location, styles that we sell, hospitality and special prom otions. 5.1 Competitive Edge The Belle Shopper Card which allows the customer a 15% discount after ten purcha ses. Our location in the community will offer closer access to our target customer ba se. We will offer plus sizes for women and designer semi formals for the young worki ng 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. The marketing budget will not exceed 5% of our gross annual sales. Our promotions will always stay in tune with our company objectives and mission statement. 5.2.1 Pricing Strategy Belle will maintain a flexible pricing strategy. We base the product lines that we carry on their reputation and quality as formal wear apparel. Most of our lin es come with a suggested retail price that we will follow. We will also utilize the standard practice of keystoning as well. 5.2.2 Promotion Strategy Belle will follow an aggressive yet creative promotional plan. This will allow u s to focus directly on our target customer while still being conservative with o ur advertising budget. A press release kit will be sent to all major media outlets in Delhi highlightin g the grand opening of the first womens formal wear retailer in the city. This ki t will include a press release, pictures of the interior space, color postcard/f lyer, and a business card. 5,000 4x5 color flyers/postcards will be distributed throughout the city . Spot radio advertisements on two local FM radio stations,104.8 FM & 98.3 FM. A direct mail program that will further focus on and target the top 50% customer base with special in-house sales and promotions.

5.2.3 Distribution Strategy Our retail location will be the foundation of building our customer base. We wil l also manage a direct mail program that will focus on our top 50% customers spo tlighting any in-house sales and promotions. 5.2.4 Marketing Programs Our marketing programs will consist of the distribution of 5,000 color flyers tw o weeks prior to our grand opening event and a mail to all the offices in Delhi and NCR. 5.2.5 Positioning Statement For the women seeking designer formal wear, Belle will offer name brand formal w ear in a larger assortment of styles and sizes that aren t always readily availa ble in the mass apparel retailers. 5.3 Sales Strategy We will utilize the ERP navigator software with every sales transaction. With ea ch purchase the software will record and maintain in its database the customer s name, address and purchases. This information will be used with our direct mail ing program to focus on our top 50% of customers. We will offer a 14 day 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 sa les to start off conservatively and increase gradually. Belle has planned for a rate of growth at 15% for the first year as we build nam e recognition and status in the Delhi & NCR. In the second and third year we loo k to see an increase of revenue of 20% as we gain a larger percentage of the mar ket share and increase our customer base beyond Delhi NCR to other metro cities. Sales Forecast Year 1 Year 2 Year 3 Unit Sales Clothing 5,175 6,728 Belts & bags 285 371 Jewelry & Gifts 560 728 Total Unit Sales 6,020 Unit Prices Year 1 Year 2 Clothing 2500.00 2500.00 Belts & Bags 2500.00 2500.00 Jewelry & Gifts 1000.00 1000.00 Sales Clothing 1,29,37,500 Belts & Bags 7,12,500 Jewelry & Gifts 5, 60,000 Total Sales 1,42,10,000 Direct Unit Costs Year 1 Clothing 12500.00 Belts & Bags 12500.00 Jewelry & Gifts 500.00 .00 Direct Cost of Sales Clothing 64,68,750 Jewelry & Gifts 2,80,000 Subtotal Direct Cost of Sales

8,746 482 946 7,826 10,173 Year 3 2500.00 2500.00 1000.00 1,68,18,750 2,18,64,400 9,26,250 12,04,150 7,28,000 9,46,000 1,84,73,000 2,40,14,500 Year 2 Year 3 12500.00 12500.00 12500.00 12500.00 500.00 84,09,400 10,93990 4,73,000 9,23,6500 12,00,7250

500

3,64,000 7,10,5000

Management Summary

Employees will be encouraged to work within their creative, physical, and intell ectual boundaries. All duties will be divided and delegated according to strengt hs and weaknesses. At Belle we will expect a high degree of customer service ski lls and personality as this is essential to our success. 6.1 Organizational Structure Belle is a small business and therefore requires a simple organizational structu re. Employee tasks are delegated based upon their level of expertise, creativity , strengths and weaknesses. The organizational structure will be as follows:

Financial Plan The growth of Belle will be moderate and the cash balance will always be positiv e. Being a retail environment we will not be selling on credit. We will accept c ash, checks, and all major credit cards. Tele Check Services will be used as the check guaranty system to help reduce the percentage of loss on bad checks. Mark eting and advertising will remain at or below 5% of sales. We will continue to r einvest residual profits into company expansion, and personnel. 7.1 Important Assumptions Belle does not sell on credit nor do we offer layaways at this time. We accept c ash and checks, Visa, MasterCard, Discover and American Express. All sales paid via credit cards will be deposited in our business checking account within 48 ho urs. Our business checking account will be with Syndicate bank. 7.2 Key Financial Indicators The following chart shows the benchmark figures for Belle. General Assumptions Year 1 Year 2 Year 3 Plan Month 1 2 3 Current Interest Rate 10.00% 10.00% 10.00% Long-term Interest Rate 10.00% 10.00% 10.00% Tax Rate 30.00% 30.00% 30.00% Other 0 0 0

7.3 Break-even Analysis A break-even analysis table has been completed on the basis of average costs/pri ces. With fixed costs of Rs 2,90,000 in average sales, and Rs 1,15,000 in an av erage variable costs, we need Rs 5,18,000 per month in sales to break even. Break-even Analysis (Rs) Monthly Units Break-even 248 Monthly Revenue Break-even 5,18,000 Assumptions: Average Per-Unit Revenue 2,360 Average Per-Unit Variable Cost 1150 Estimated Monthly Fixed Cost 2,92,800