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Belle

Business Plan Outline 1. 1.1 1.2 1.3 2 2.1 2.2 2.3 3 3.1 3.3 3.4 3.5 3.6 4 4.1 4.2 4.3 5 5.1 5.2 5.3 6 7 Executive summery Objective Mission Keys to success Company summary Company ownership Startup summary Company location and facilities Products Product description Sales literature Sourcing Technology Future products Market analysis summary Market segmentation Target market segment strategy Main competitors Strategy and implementation summary Competitive edge Marketing strategy Sales strategy and forecast Organizational structure Financial plan, key indicator and breakeven 3 4 4 4 4 5 5 8 9 9 9 10 10 10 11 12 12 13 14 16 16 17 19 20

Executive Summary
Gone are the days when Indian women were just home makers. Today she is into multi 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 1981 to 25.68%, with a higher rate in urban areas at 30.98%.India has the worlds largest number of professionally qualified women (doctors (doctors, surgeons, scientists and professors) Women entering earlier male dominated professions fuels demand 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 levels, nearly 75% couples falling in DINK (double (double income no kids) category with about Rs 66 lakh-88 lakhs of per annum and are roughly spending Rs 15,000-20,000 on entertainment, shopping, fitness centers, eating out and branded wear articles every month. Belle is a new apparel store that caters to the working women community in metropolitans, India. As our name suggests our focus is to provide formal wears l and accessories, and position ourselves as the top retail store servicing this particular 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 central 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 apparel 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 year 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 Wear must:

Carry an assortment of sizes to fit the more ample frames of their target customer 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 our store. Continuously review our inventory and sales and adjust our inventory levels accordingly. Focus on the design esp semi formals and the total looks to entice as well as educate 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 working 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 customer 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 months inventory on hand for apparel and accessories as this is the main revenue generator. The majority of the company's assets will reside in inventory. The opening 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 supplemental financing is required to work on site preparation, inventory, and operational 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 replenishment during months of high receipts. Successful operation and building a loyal customer base will allow Belle to be self sufficient and profitable in year two.

Start-up Funding (Rs) Start-up Expenses to Fund Start-up Assets to Fund Total Funding Required Assets Non-cash Assets from Start-up Cash Requirements from Start-up Additional Cash Raised Cash Balance on Starting Date 7,00,000 19,200 0.00 19,200 4,70,800 7,19,200 11,90,000

7,19,200 Total Assets Liabilities and Capital Liabilities Current Borrowing Long-term Liabilities Accounts Payable (Outstanding Bills) Other Current Liabilities (interest-free) Total Liabilities Capital Planned Investment Owners Investment - Cash Other Additional Investment Requirement Total Planned Investment Loss at Start-up (Start-up Expenses) Total Capital Total Capital and Liabilities Total Funding 2,55,000 0 0 2,55,000 (4,70,800) (2,15,800) 7,19,200 11,90,000 0.00 8,35,000 0.00 10,000 9,35,000

Requirements Start-up Expenses Rent Grand Opening Event Telephone & Utilities (3 months) Travel (sourcing) Business Insurance Advertising & Promotion Store Fixtures/Decorations Computer/Cash Register Signage (Including Permits) Organizational Dues & Subscriptions Business/Office Supplies Other Total Start-up Expenses Start-up Assets Cash Required Start-up Inventory Other Current Assets Long-term Assets Total Assets Total Requirements 19,200 7,00,000 0 0 7,19,200 11,90,000
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80,300 20,000 25,000 17,500 30,000 50,000 75,000 47,500 20,000 6,250 20,000 25,000 4,65,800

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 company 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 Metropolitan cities with a creative bend in the designs. The main motto is to provide semi casual or designer office wear catering to women who are working and loves to dress up themselves in a different style, so that they can define their own identity. The greatest percentage of merchandise will be in apparel, followed by accessories, hats, and gifts. Management will rely on customer feedback, suggestions, to introduce 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 casual 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 apart from our competitors.

and

sales

reports

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 purchases. We will offer clothing to fit plus-size women. We will create a sense of culture and bonding with the community by offering products 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 purchases, size, and styles for customer follow-up and in-house promotional purposes.

3.3 Sales Literature Belle will use a targeted advertising and sales program to generate publicity and build a customer base.

2,500 full-color postcard flyers with a 10% coupon will be distributed throughout Delhi and NCR, two weeks prior to the grand opening event.

200 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. 5,000 business cards with a Mahogany Frequent Shopper Card on the reverse side entitling the customer to a 15% discount on the eleventh purchase after ten purchases.

3.4 Sourcing We will source our merchandise as outlined below:

With manufacturers who have a regional representative and factory located in Delhi 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 manufacturers constantly to come up with the desired designs. .

We will also work to solidify our relationships with sales representatives and vendors so that we may achieve decreased cost of goods. Our competitors, (both direct and indirect) purchase from the same sources and we believe that through marketing programs and strategic alliances we will begin to gain a competitive advantage. 3.5 Technology Retail apparel establishments have a tendency to have a high number of SKU's because 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. Belle will utilize Peachtree Accounting software for all financial and accounting purposes. For inventory management and point of sale transactions we will utilize Retail Navigator software. This product is a software that allows the small, single store retailer to manage their inventory and point of sale functions all in one. 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. Palo 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 markets and enhancing our marketing knowledge. 3.6 Future Products As we achieve and exceed our sales and profitability goals, Belle will add formal shoes and bags to the product line. We will expand our line of brands with those that have
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been repeatedly requested by our customers. An e-commerce website will also be created to increase our distribution channels and expand our customer 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 they 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 casual way. The last target customer of Belle is listed as other. As popularity about the store increases we expect to see an assortment of curiosity seekers, and local residents from the community as well as seasonal purchasers.

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4.1 Market Segmentation The working fashion conscious women population is concentrated heavily in the southern part of the city therefore leading to the highest concentration of our customer 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 (double 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 customer 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 finding the looks for themselves and want to dress up differently to office every day. 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 shapes and sizes of the ethnic community. This is a size segment that is missing throughout the larger formal wear apparel retailers in the city. 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.

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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 who are majorly in Mens wear and now introduced womens formal wear. 85% of the purchasing statistics for western apparel is derived from these stores. Large Multi-owned Western Wear Retailers: These large stores mass market and sell 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 / strategies

Service Very formal Shirts Very formal, shirts Slightly semi casual and then dresses. little casual but very designs but very limited styles. limited styles and colors.

Pricing Strategies

Distribution Strategies

Only one corner in the entire store is dedicated to this section. Promotion strategies Mostly print media.

One or two stores for Allen Solly women, in metro cities strictly Print Media mostly.

Fairly distributed but only in cities like Delhi, Bangalore, Mumbai and Pune. Print media

Strength weakness

and

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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 Allen 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 brands. 2. Presence of Indian and international brands offers more offering to customers 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 corporate 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 hurt its brand. 2. Strong competition means market share growth is slow.

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MARKS & SPENCERS Strength 1. It is one of the most powerful retail brand with a top of the mind recall. 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 fake imitation products.

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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 providing a larger assortment of sizes and styles and design as well as semi casual and designer office wear. Our intention is to gain 80% of this market share by focusing on our niche positioning, neighborhood location, styles that we sell, hospitality and special promotions. 5.1 Competitive Edge

The Belle Shopper Card which allows the customer a 15% discount after ten purchases. Our location in the community will offer closer access to our target customer base. We will offer plus sizes for women and designer semi formals for the young working 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 lines 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 us to focus directly on our target customer while still being conservative with our advertising budget.

A press release kit will be sent to all major media outlets in Delhi highlighting the grand opening of the first womens formal wear retailer in the city. This kit will include a press release, pictures of the interior space, color postcard/flyer, and a business card.
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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 will also manage a direct mail program that will focus on our top 50% customers spotlighting any in-house sales and promotions. 5.2.4 Marketing Programs Our marketing programs will consist of the distribution of 5,000 color flyers two 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 wear in a larger assortment of styles and sizes that aren't always readily available in the mass apparel retailers. 5.3 Sales Strategy

We will utilize the ERP navigator software with every sales transaction. With each 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 mailing 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 sales to start off conservatively and increase gradually. Belle has planned for a rate of growth at 15% for the first year as we build name recognition and status in the Delhi & NCR. In the second and third year we look to see an increase of revenue of 20% as we gain a larger percentage of the market share and increase our customer base beyond Delhi NCR to other metro cities.

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Sales Forecast Year 1 Unit Sales Clothing Belts & bags Jewelry & Gifts Total Unit Sales Unit Prices Clothing Belts & Bags Jewelry & Gifts Sales 5,175 285 560 6,020 Year 1 2500.00 2500.00 1000.00 6,728 371 728 7,826 Year 2 2500.00 2500.00 1000.00 8,746 482 946 10,173 Year 3 2500.00 2500.00 1000.00 Year 2 Year 3

Clothing Belts & Bags Jewelry & Gifts Total Sales Direct Unit Costs Clothing Belts & Bags

1,29,37,500 1,68,18,750 2,18,64,400 7,12,500 5, 60,000 9,26,250 7,28,000 12,04,150 9,46,000

1,42,10,000 1,84,73,000 2,40,14,500 Year 1 12500.00 12500.00 Year 2 12500.00 12500.00 Year 3 12500.00 12500.00

Jewelry & Gifts

500.00

500.00

500.00

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Direct Cost of Sales

Clothing Jewelry & Gifts Subtotal Direct Cost of Sales

64,68,750 2,80,000 7,10,5000

84,09,400 3,64,000 9,23,6500

10,93990 4,73,000 12,00,7250

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 Belle we will expect a high degree of customer service skills and personality as this is essential to our success. 6.1 Organizational Structure Belle is a small business and therefore requires a simple organizational structure. Employee tasks are delegated based upon their level of expertise, creativity, strengths and weaknesses. The organizational structure will be as follows:

CEO

Design head

Retail Head

Assistant designer

Store Manager

Accounts head

Assistant store manager

sales Associate

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Financial Plan The growth of Belle 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, 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. Marketing and advertising will remain at or below 5% of sales. We will continue to reinvest 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 cash and checks, Visa, MasterCard, Discover and American Express. All sales paid via credit cards will be deposited in our business checking account within 48 hours. 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 Plan Month Current Interest Rate Long-term Interest Rate Tax Rate Other 1 10.00% 10.00% 30.00% 0 Year 2 2 10.00% 10.00% 30.00% 0 Year 3 3 10.00% 10.00% 30.00% 0

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

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