1

kalaa

INDEX
3

kalaa

Company history & executive summary

Company summary
Product summary Market analysis summary Strategy & implementation summary Web plan summary

Management summary
Financial plan Conclusion

EXECUTIVE SUMMARY
4

kalaa

Company History

Clothing and apparel business. Incorporated in 1994 with head office in Mumbai, India.

Dealing in high-end exclusive ethnic wear for men, women

and kids.

Stand alone company owned retail outlets across Mumbai, Delhi, Bangalore & Hyderabad.

Founders : Ms. Sandhi Lodha & Mr. Muzammil Memon.

EXECUTIVE SUMMARY
5

kalaa

MISSION:
To introduce and establish our business in England (UK), thus providing end users with exclusive high end Indian ethnic wear that will be tailor made as per their requirements and to

the highest level of satisfaction.

Executive summary:
6

kalaa

Objectives: Securing start-up funds. Establishing marketing and sales initiative. Generating healthy revenues. Positioning Kalaa globally. Keys to success: Become an industry leader of exclusive high end Indian ethnic wear. Clothing sizes : 1 - 50 years. Ethical practices in business processes.

Company summary:
7

kalaa

Company ownership:

Privately owned partnership firm Joint owners in India: Ms. Sandhi Lodha & Mr.

Muzammil Memon.

UK partner : Mr. Dominic Rodriguez

Company summary
8

kalaa

Start up summary:

Inventory - 50000 Current assets: 24950

Long term assets: 34485

Total start up expenses: 24698 Total assets: 498218 Total funding required: 523916 Total liabilities: 500000

Product:
9

kalaa

Material

Sourcing

Rate(approx-Rs)

Khadi Georgette Net Cotton

Ahmedabad, Rajasthan Surat Surat Surat

480/100/60/48/-

Raw silk
Linen

Banaras
Surat

200/400/-

Velvet ,chiffon and brocade are occasionally sourced from Sura

Product:
10

kalaa

Womens wear:
WOMEN KIDS/GIRL S
-----

Mens wear:
MEN
SHERWAN IS DHOTIS
RAW SILK, GEORGETTE

KIDS/BOY S
RAW SILK, GEORGETTE

FORMAL KURTIS
SAREES

COTTON,SILK , KHADI
RAW SILK, GEORGETTE, NET BROCADE, CHIFFON, GEORGETTE, VELVET COTTON,SILK , CHIFFON SILK,CHIFFO N, GEORGETTE, VELVET

RAW SILK, GEORGETTE,N ET BROCADE, CHIFFON, GEORGETTE, VELVET COTTON,SILK, CHIFFON -----

RAW SILK, COTTON, LINEN KHADI, COTTON, LINEN, SILK

RAW SILK, COTTON, LINEN KHADI, COTTON, LINEN, SILK

LEHENGA S

FORMAL KURTIS

SALWAR KAMEEZ BRIDAL WEAR CHANYA

PATHANIS

RAW SILK, LINEN, KHADI

RAW SILK, LINEN, KHADI

-----

SILK,CHIFFON, GEORGETTE,

Market analysis summary

11

kalaa

Economic slow down (2001) - declining sales in overall apparel industry.

Contrast Economic shoot up after 2009 - increasing

customer experimentation and confidence.

o

Present situation - positive market. Target market strategy:

o o

Target- men, women, children. Age group-1-50 years.

Market analysis
12

SWOT
Strength * Exclusive & differentiated high end ethnic wear * In depth Competitive Research based purely on financial mathematics * Track Record * All the strategies have been tried and tested Opportunities * Lack of specialist high end brand * Niche market * No competition from other brands * Increasing customer base. Weakness * Start up * Absence of recognizition globally * Lack of experienced team for institutional business

Threats * New entrants * Decrease in product popularity. * Shift in consumer behavior.

Market analysis summary

13

kalaa

Market analysis(2010)
Sales
men(20-49yrs)-25%

women(20-49yrs)-30%
boys(5-9yrs)-10% girls(5-19yrs)-18% infants(0-4 yrs)-9% internet-8%

Market analysis summary

14

kalaa

Market needs

Comfort/Easy-Care
Apparel Sizing

Customized clothing
Fashion for kids Ethnic designs and colours

Market analysis summary

15

kalaa

1.
2. 3. 1. 2. 3. 4.

Industry participants Made up of small firms. Average no of employees-38 Apparel sold at variety of retail outlets Major players in uk: Raj manufacturers, headquartered in UK. Bombay look, Green street. Bombay sari house, White street Rangoli fashion, Western Road, Southall. More of local retailers.

Competitive Edge
16

kalaa

Our tagline Redefining the Art of Indian Clothing expresses our purpose of creating an art in exclusive ethnic wear.

Provision of customised clothing with tailor made fits. An edge over competitors. Strong brand recognition in India helping us gain competitive advantage.

Pricing Strategy
17

kalaa

Competitive- By monitoring its cost and minimizing it wherever required.

Premium Pricing- High price point to create niche in the

market.

Price Skimming- charge a high price because of substantial competitive advantage.

Psychological Pricing- playing on consumer perceptions of positioning ourself.

Marketing Strategy
18 1. 2. 3. 4.

kalaa

Product differentiation based upon "your design -our art." Building a Relationship-Oriented Business. Fostering corporate social responsibility. Focusing on the diversified "communities" as the company's target markets.

5. o 1. 2. 3.

Clearly defining goals on the website. Corporate objectives for its website: Having profitable public relations Provide customers efficient, user friendly automated processes.

Managing corporate activities relating to different marketing

WEB MARKETING STRATEGY

19

kalaa

Building a website is not enough by itself. The company therefore will rely upon a combination of offline and online methods to promote its website. Online marketing strategy: Official website. Affiliate partnership Advertising on social networking sites. Search engines Web directories Reciprocal links Email marketing Banner advertising

MARKETING STRATEGY
20

kalaa

Offline marketing strategy:

o o o o o o o

Business cards Printed company materials

Local newspapers
Media. presentations Conferences/events/seminars Internet/web journals

Promotion Strategy
21

kalaa

Advertising

Magazines/Newsletters: Advertising in industrial magazines

local newspapers

E-Mail- By sending new products to targeted customers

Radio- Its ability to deliver a marketing message to a selective

audience

Trade Shows/Trade Fairs- Trade Shows/Fairs are a marketing tool for communication promoting dialogue between retailers and manufacturers and will allow the company to exploit its unique clothing line to a concentrated group of buyers.

Distribution Strategy
22

kalaa

o o

Exclusive Stores The primary distribution channel Accompanied by catalogues and direct selling (Retailing).

Internet Store Online selling with colour and texture perception The Future : M-Commerce

Positioning Strategy
23

kalaa

o
o o o o o o o o

For women and men seeking clothing with: Style Substance Differentiation Selection Meant for luxury lovers Trendy Exclusive Fashionable Meeting both physical and emotional needs

Sales Strategy
24

kalaa

On the basis of Geographical area

Sales team tasked with generating sales leads on a local, regional, national and international basis.
1. 2. 3.

The Company also plans to use channels like:Supermarkets like Selfridges, Tesco etc Apparel Specialty Stores Internet Store Distribution Mix-Differences in the distribution mix for men's, women's, and children's items. Catalogues- Consumers have less time to shop, and for some, catalogue shopping offers a more convenient and pleasant alternative.

kalaa

25

MANAGEMENT SUMMARY
26

kalaa

Management philosophy based upon:

1.
2. 3. o 1. 2. 3. 4. 5.

Responsibility
Mutual respect Profitability. Companys present and future growth depends upon: Exceptional people Social responsibility Uncompromising commitment on customer service Excellence

Commitment to core values.

MANAGEMENT SUMMARY
27

kalaa

CEOMr.Muzammil Memon

President BDMs.Sandhi Lodha

CFOMs.Sonam Fatnani

President PM Ms .Tina jain

Vice President BDMs.Saba Khan

VP SalesMs.Roopa Udeshi

VP MarketingMr.Shamil Vazir

MANAGEMENT SUMMARY
28

kalaa

PERSONNEL PLAN
Year 1 Year 2 Year 3

PERSONNEL PLAN

President/CEO

94,090

108,802
84,000 40,569 48,526 50,170 28,800 55,697 57,000

115,330
90,000 43,003 51,438 53,181 29,664 59,039 58,710

Chief Financial Officer 71,500 VP of Product Development VP of Business Development VP of Supply Chain Management Executive Assistant VP of Sales and Marketing Senior Fashion Designer 38,273 38,150 39,442 28,800 43,787 57,000

Seamstress Design Assistant Assistant Seamstress Pattern Cutter 1 Pattern Cutter 2 Warehouse manager Heavy Truck Driver/Warehouse Assistant Packer/Shipping & Receiving Clerk 1 Packer/Shipping & Receiving Clerk 2 Packer/Shipping & Receiving Clerk 3 Packer/Shipping & Receiving Clerk 4 Total People Total Payroll

21,120 26,400 19,360 17,600 17,600

23,040 28,800 21,120 19,200 19,200

23,731 29,664 21,754 19,776 19,776

48,636
17,280

50,750
23,040

52,272
23,731

16,720

18,240

18,787

15,200

18,240

18,787

13,680

18,240

18,787

13,680

18,240

18,787

19 638,317

19 731,674

19 766,217

29

Financial plan
30

kalaa

Financial objectives:

To reinvest profits for market share growth. to generate healthy sales revenues. Basic Assumptions: Average Percent Variable Cost-20% Estimated Monthly Fixed Cost-103,619

Current Interest Rate-4.00% Long-term Interest Rate-3.50% Tax Rate-50.00%

Financial plan Pro forma cash flow

31

kalaa

Cash received
Subtotal Cash from Operations Subtotal Cash Received

Year 1 4,962,095 4,962,095 Year 1

Year 2 9,567,628 9,567,628 Year 2

Year 3 10,570,881 10,570,881 Year 3

Expenditures
Subtotal Spent on Operations Subtotal Cash Spent Net Cash Flow Cash Balance

3,188,370
3,230,963 1,731,131 2,119,915

5,600,817
5,692,725 3,874,902 5,994,817

4,835,288
4,944,288 5,626,593 11,621,410

Financial plan - Pro Forma Profit and Loss

32

kalaa

Year 1 Sales 5,562,162

Year 2 9,955,933 2,240,085

Year 3 10,638,658 2,393,698

Total cost of sales 1,251,487

Gross margin Expenses Total operating expenses

4,310,676

7,715,848

8,244,960

Year 1

Year 2

Year 3

1,243,432

1,618,623

2,233,343

Net profit
Net profit / Sales

2,135,377 38.39%

4,257,464 42.76%

5,998,107 56.38%

Financial plan - Pro Forma Balance kalaa Sheet

33

Assets Total current assets Total long term assets Total assets Liabilities

Year 1 2,880,753 30,174 2,910,927 Year 1

Year 2 7,233,632 25,864 7,259,496 Year 2

Year 3 12,943,466 21,554 12,965,020 Year 3

Subtotal Current Liabilities

Total liabilities

319,926
777,332 2,133,596

502,938
913,436 6,346,060 7,259,496 6,346,060

319,355
680,853 12,284,167 12,965,020 12,284,167

Total capital

Total Liabilities and 2,910,927 Capital Net Worth 2,133,596

Conclusion
34

kalaa

Competition in the apparel industry is widely varied.

Achieve status as an industry leader, it must secure initial capital.

Direct competitors are brand manufacturers like Biba, Rangmanch &in-house designers.

Industry has moved from a "buy now, wear later"

consumer to a "buy now, wear now" consumer.

Conclusion
35

kalaa

ability to capture 10% of the luxurious ethnic apparel industry. the potential to provide lucrative returns to potential investors. be able to achieve operational success for many years to come.

Bibliography
36

kalaa

Marketing management by Philip Cotler. Prices and facts - Season N Style. International market- Micheal Vaz www.answers.com

Presented by:
37

Srno Name. . 1 Sandhi Lodha 2 Roopa Udeshi

Roll No. 8 9

3
4

5 6 7

Muzammil Memon Saba khan Sonam Fatnani Tina Jain Shamil Vazir

11
12

13 17 24

Thank You