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LETTER OF AUTHORIZATION
Dear Reader, I have been authorized by Mr. Rana Yasir to write a term report on the marketing plan of the virtual launch of a new Boutiqe. This report deals with the launch of the product, while discussing the core concepts of marketing and applying them to the real world .This project report has given us the knowledge of the concepts, which were discussed during the lectures by my respected teacher. The report has been supported with valid information, consisting of data being gathered through the ideal process of interviewing designers and potential customers. Sincerely, Arslan

CONTENTS
1. INTRODUCTION ..............................................................................4 2. CURRENT INDUSTRY STRUCTURE ...........................................6 3. MARKETING......................................................................................7 4. RAW MATERIAL...............................................................................8 5. PRODUCTION PROCESS FLOW ...................................................9 6. PRODUCTS........................................................................................11 7. HUMAN RESOURCE REQUIREMENTS...................................13 8. MACHINERY/EQUIPMENT DETAILS......................................16 9. PREMISES FOR SHOP AND STITCHING UNIT ....................18 10. PROJECT ECONOMICS..............................................................19 11. KEY SUCCESS FACTORS...........................................................20 12. THREATS FOR THE BUSINESS.................................................21 13. FINANCIAL ANALYSIS.................................................................22 14. KEY ASSUMPTIONS...................................................................25

INTRODUCTION
Project Brief The pre-feasibility study focuses on the establishment of women designer wear Boutique including the operations of apparel designing, manufacturing, selling and marketing. The study has been designed to capture the dynamics of the Boutique industry, with its many components and possible strategic opportunities. Opportunity Rationale Clothing is a beautiful visual demonstration of the social and emotional needs of people wearing it. It also portrays in a clearly understood visual manner, what people of different cultures and styles want socially. Fashion, through times, has gone through so many rapid changes and bizarre extremes that it has examples of nearly every kind of clothing function. However, in a boutique business, the specifications and descriptions of the designs and clothes are so general that they can fit more than one costume, which actually are quite different in nature from each other and this is solely dependent on the taste of the people. The range of Pakistani dresses is remarkably wide, according to the vast cultures, geographical differences, purchasing capacities, influence of the western culture, and bewildering diversities of the ethnic groups. One has, therefore, to sift and isolate, and then relate and bring together, the ideas for creating various designs, which can fit in the context of the fashion in vogue and the culture in practice. In reference to Pakistan, the Boutique business is quite in vogue but has yet to be formalized. The market of this enterprise is quite scattered and unorganized. There are a few major players in Boutique business and these entrepreneurs have also taken an initiative based on their caprice and experience in the field of fashion design. However, there is a massive potential in this field, if one has the ability to design and market his/her products through introducing innovative designs both in stitching as well as the fabric sector. Furthermore, there is massive export potential in this sector, as the demand of Pakistani dresses, especially in countries like UAE, USA, and UK, is massive due to a high number of Pakistani expatriates who have settled in these countries. The Boutique business can also be expanded into a more profitable venture by providing stitching facilities to other boutiques, which do not own a stitching unit or are lacking this facility. Proposed Capacity

The Boutique business capacity is greatly dependent on the market size and the garments will be designed through a contracted designer and then stitched through in-house stitching unit. On average, a designer can supply forty designs per month from which nearly thirty designs are selected on average. Approximately, total capacity of the defined unit with 5 stitching machines (basis on 8-10 hours shift) will be about 7501 dresses. The breakup of the total number of dresses will be as follows:

This production and sales capacity is estimated to be economically viable and justifies the capital as well as operational costs of the project. Total Project Cost The Boutique shop needs a total investment of about Rs. 1.83 million. This includes a capital investment of Rs.1, 299,430 and a sum of Rs.530, 680 as working capital.

CURRENT INDUSTRY STRUCTURE

Currently, the boutique industry is relatively unorganized and is scattered in and around the posh areas of the metropolitan cities of Pakistan i.e. Lahore, Islamabad, Karachi, Peshawar, and Quetta. The boutiques in Peshawar and Quetta, mostly sell the traditional dresses having indigenous/local designs, whereas the ones in Lahore, Islamabad, and Karachi deal in fashion wear greatly influenced by the west and the local trends in vogue. As such, there is no exact detail available of the number of boutiques, especially in women wear, because there is no association or link between these enterprises. The reason being the business rivalries and the competitive structure of this industry. However, one can name a few major players in the business such as Indifference, Generation, Parahan, Nee Punhal, Bossini, Kapre Waghera, Maria B, Ninas, and some individual designer players like Beegees, Nilofar Shahid, Nadia Mistri, Amir Adnan, Shayan Malik, and Sahar Saigol.

MARKETING
The marketing of boutique follows the conventional marketing pattern which is dependent on selection of venue of the outlet/s and the product mix (designs and sizes), as well as the promotional strategy. Furthermore, the boutique owner has to marketing techniques like: Usage of print media i.e. printing of posters and pamphlets as well as displaying it and distributing it at proper places Advertisement in print media i.e. newspapers and fashion magazines, etc. Usage of electronic media i.e. projection of the boutique in fashion programs, advertisement on television, and provision of dresses to various television plays and films. Event arrangement like fashion shows and photo-shoots. Usage of e-commerce i.e. launching of website and advertising on web.

As this project of Boutique deals in designer women wear, therefore the product mix will comprise of different styles of the female dresses in different sizes. Whereas, the styles will be Shalwar Kameez, Q-lots, Pajama Kameez, Frocks, Kurta, Peeshwaz, Party dresses, Casual Dresses and other prevalent dresses based on the market trends.

Even these figures represent the formal export patterns of women dresses from Pakistan and are not representative of the export of these dresses taking place on informal level. Most of the women dresses prepared in Pakistan are 7

exported to USA, UK, Germany, UAE, Saudi Arabia, France, Belgium, Netherlands, and South Africa.

RAW MATERIAL Raw Material

The raw-material required for such sort of projects, would be as follows: Fabric: The fabric, which is the basic raw material requirement for a boutique and a major component of the cost, can be obtained from wholesale markets or from markets specializing in designer cloth at Faisalabad, Karachi, and Lahore. Accessories: Accessories such as buttons, laces, zippers, elastics, threads, needles, embroidery threads, glasses, etc. will be procured from the local market at competitive rates. Labels, tags and packaging: Labels and tags can be obtained on order, as these serve as an identity for the boutique and are useful for promotion.

Advertising
The marketing of boutique follows the conventional marketing pattern which is dependent on selection of venue of the outlet/s and the product mix (designs and sizes), as well as the promotional strategy. Furthermore, the boutique owner has to marketing techniques like: Usage of print media i.e. printing of posters and pamphlets as well as displaying it and distributing it at proper places Advertisement in print media i.e. newspapers and fashion magazines, etc. Usage of electronic media i.e. projection of the boutique in fashion programs, advertisement on television, and provision of dresses to various television plays and films. Event arrangement like fashion shows and photo-shoots. Usage of e-commerce i.e. launching of website and advertising on web.

As this project of Boutique deals in designer women wear, therefore the product mix will comprise of different styles of the female dresses in different sizes. Whereas, the styles will be Shalwar Kameez, Q-lots, Pajama Kameez, Frocks, Kurta, Peeshwaz, Party dresses, Casual Dresses and other prevalent dresses based on the market trends.

Even these figures represent the formal export patterns of women dresses from Pakistan and are not representative of the export of these dresses taking place on informal level. Most of the women dresses prepared in Pakistan are 9

exported to USA, UK, Germany, UAE, Saudi Arabia, France, Belgium, Netherlands, and South Africa.

PRODUCTION PROCESS FLOW

Production Process Flow The process for converting fabric in designer wear garments follows the below mentioned sequence: Design: The initial process starts from the designing phase. Various patterns of clothing and the fashions in vogue, which also relate to the tastes of the concerned clientele, are designed. This is done by the contracted designer as he/she will provide the basic designs of which the fabric will be converted into the designer wear garment. On average, a designer is supposed to provide 40 designs per month or 100-120 designs per season i.e. three months. From these designs, approximately 50% of the designs are selected for further development of clothes. Pattern Making/Cutting: Based on the designs selected, patterns for cutting are developed and based on these patterns, fabric is cut, embroided, block printed, and processed accordingly. Stitching: The cutting is then followed by stitching, which can either be done by the in-house stitching unit or by outsourcing it3. Labels are also attached to the apparels in this process. Finishing: The final phase is that of finishing, in which the garment will be checked for quality control and will cleaned (if required) for final presentation at the outlet. The garments will also be tagged for identification of sizes, prices, addresses, handling instructions, etc. Presentation/Market: Once the designer wear garment is ready after going through the above mentioned process, it is presented at the outlet/shop for sale to the clientele.

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PRODUCTS
Product Mix Products will be priced at the high end to reflect the quality and exclusiveness associated with the brand. High-end materials such as Crinkle Chiffon, Georjot Chiffon, Chinese Raw Silk, Medium Silk, Leafy Print Jamawar, Chamose Silk etc will be used. This boutique will offer following product categories of women wears: Casual Wear Semi Formal Wear Formal Wear

Each product category will include the following product lines: Ethnic Wear Formal Wear Party dresses and special occasion dresses Contemporary Wear Fusion Wear Combination of eastern and western wear, suitable for the international market as well. Western Wear Tops, Pants and various other styles The combination of outfits for the proposed outlet will be as follows Product mix

Costs of Goods Sold and other Expenses 12

Cost of goods sold has been taken as a percentage of the sale price. The percentage of cost for each product category is as below: Percentage of cost

Product mix

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HUMAN RESOURCE REQUIREMENTS

The project of Boutique requires the following Human Resources/Staff: Staff Salaries

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MACHINERY/EQUIPMENT DETAILS
The boutique will require a small in-house stitching unit. The cost of the stitching machinery will be as follows: Machinary detail

Office equipment

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Goods
Product Mix Products will be priced at the high end to reflect the quality and exclusiveness associated with the brand. High-end materials such as Crinkle Chiffon, Georjot Chiffon, Chinese Raw Silk, Medium Silk, Leafy Print Jamawar, Chamose Silk etc will be used. This boutique will offer following product categories of women wears: Casual Wear Semi Formal Wear Formal Wear

Each product category will include the following product lines: Ethnic Wear Formal Wear Party dresses and special occasion dresses Contemporary Wear Fusion Wear Combination of eastern and western wear, suitable for the international market as well. Western Wear Tops, Pants and various other styles The combination of outfits for the proposed outlet will be as follows Product mix

Costs of Goods Sold and other Expenses

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Cost of goods sold has been taken as a percentage of the sale price. The percentage of cost for each product category is as below: Percentage of cost

PREMISES FOR SHOP AND STITCHING UNIT

Recommended Mode for Renting a Shop It is recommended that the proposed location for the said enterprise be a posh area, where people have the buying capacity for women fashion wear. The size of the shop should be at least 800 Sq.ft i.e. 20 feet front and 40 feet depth. Furthermore, a small building will be required to establishing the stitching unit. One viable option is to rent a small house for this purpose. The shop will be obtained on rental basis, and the rent estimation for such a shop is Rs 56,000/month. According to the prevailing practice, 6 months rent as advance and three months rent as security would be required for renting the shop. It is assumed that security is a one-time expenditure, whereas pre-paid rent will only be given at the beginning, while establishing the boutique. After first six months, rent will be paid on monthly basis. The cost estimates for setting up the Boutique are as follows: Rent cost detail

Infrastructure requirements The project will have the following infrastructure components: Infrastructure requirements

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Rent cost detail

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PROJECT ECONOMICS
Project cost

Project returns

Financing plan

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KEY SUCCESS FACTORS

There are a number of factors, which contribute towards the success of a project. In case of the project of Boutique, some of the Key Success Factors are as follows: Proper care while producing dresses should be adopted Proper Inventory management i.e. keeping minimum inventory as per past sales trends. The dress designs should be according to the emerging trends and fashions. Designing of dresses according to the consumer tastes/preferences gathered through consumer surveys. The location of the outlet should be properly selected and attractively decorated so as to target the clientele effectively. The customer satisfaction should be given due importance, because it is the customer satisfaction, which can increase the sales. Hence, excellent customer service should be provided.

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THREATS FOR THE BUSINESS

Competitive Structure of the market The market of the boutiques is highly competitive; therefore if the entrepreneur is not well responsive to the tastes and response of the clientele as well as the fashions in vogue he/she may not be able to capitalize the opportunity properly. Pilferage in the designs The designs which a designer produce can be sold by the staff even before that design is launched and that can pose serious threat to the business because in the fashion industry it is the uniqueness of the design which matters. Selection of the wrong venue Selection of the wrong venue can be a major hurdle in achieving the desired business objectives. Selection of the wrong design If the designs are not selected according to the tastes of the clientele then it can be detrimental for the business, so the clientele taste should be properly tracked. Tax Improper documentation of the sales receipt record may lead to problems with Tax department.

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FINANCIAL ANALYSIS
Projected Income Statement

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Projected Cash Flow Statement

Projected Balance Sheet

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KEY ASSUMPTIONS
Production Assumptions

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Operating Assumptions

Cash flow Assumptions

Expense Assumptions

Financial Assumptions

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