Lingerie Plan

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 startup 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 RequirementsRs 98,09,500 Start-up Funding Start-up Expenses to Fund-Rs 55,59,500 Start-up Assets to FundRs 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 fullbodied 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