Report on establishing a clothing line

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Report On Establishing a Clothing Line

Table of Contents

1.1 Industry Analysis and Trends..............................................................................................3

1.2 Competition and Buying Patterns........................................................................................3

1.3 Guide to start a clothing line................................................................................................4

1.3.1 Define Your Customer................................................................................................4

1.3.2 Competition.................................................................................................................5

1.3.3 Marketing Plan............................................................................................................7

1.3.4 Start-up Cost...............................................................................................................7

1.3.5 Financing.....................................................................................................................8

1.3.6 Know Your Launch Date............................................................................................8

1.3.7 Write Business Plan....................................................................................................8

1.4 Success Story of Zara Clothing Brand.................................................................................9

1.5 Success Story of VAN SCHAACK...................................................................................10

1.6 A sample business plan for starting a clothing line...........................................................11

1.6.1 Introduction of the Clothing line...............................................................................11

1.6.2 Objectives of J&Z Clothing Line..............................................................................12

1.6.3 Mission of the J&S Clothing Store...........................................................................12

1.6.4  Keys to Success........................................................................................................13

1.6.5 Company Ownership................................................................................................15

1.6.6 Start-up Summary.....................................................................................................15

1.6.7 Company Location and Facilities.............................................................................15

1.6.8 Business Operations..................................................................................................15

1.6.9 Products.....................................................................................................................16

1.6.10 Market Segmentation................................................................................................16

1.6.11 Target Market and Program Strategies.....................................................................16

1.6.12 Advertising and Promotional Strategy......................................................................17

1.6.13 Strategic Alliances....................................................................................................18

1.6.14 Risks..........................................................................................................................19

1.6.15 Important Assumptions.............................................................................................19

References:......................................................................................................................................19

How To Start A Clothing Line?

1.1 Industry Analysis and Trends

It is very important to analyze the market conditions in order to start a business. Out of total retail

stores, 64 % of the stores represent the non durable product stores. The revenues of the industry

are approximately 1.3 trillion in dollars. The sales of the durable products are summed up as 757

billion dollars.

The Guide to Retail Business Planning quotes that there are sales of about $2.34 trillion which are

1.5 million more than establishment in the year 1995. The sector of non durable retailers had

grown in the year 1995. It became the second largest sector in the economy. In the recent era the

retail industry has faced a lot of changes. Retail industry is the domain industry of the small

businesses in the economy. Small businesses represent the 75 % of retail stores. The discount

stores have grown to a great extent in the recent past. Some industry analysts say that the discount

stores have 3 times. The retail store like Wal-Mart is responsible for generating 1 job out of 16

new vacancies in the U.S. The retail customers of this era are much changed than the retail

customers of the last decade. The perceptions, behaviors and attitudes of customers are much

changed. It is need of the day to make new strategies for the businesses to deal with the new

changes of he customers’ behaviors.

1.2 Competition and Buying Patterns

Boston Rags is located in a market where a number of top businesses are operating. The traffic in

the market varies the whole day. At the times of lunch and dinners the traffic at the site becomes

high. 20moles away is the competitor’s store which is present in the Hartford Valley Mall. The

Arbitron, Spring 2000s provides the details of customer spending which is given below:

Spending on the Women's and Girls' Clothing:

$449.4 Thousand each Month

$103.7 Thousand each Week

$14.8 Thousand each Day

$1,477 each Hour (ten-hour business day)

Spending on the Men's and Boys' Clothing

$323.4 Thousand each Month

$74.6 Thousand each Week

$10.6 Thousand each Day

$1063 each Hour (ten-hour business day)

1.3 Guide to start a clothing line

1.3.1 Define Your Customer

It is very important for marketers to know about the needs and wants of their customers.

Companies design products for the customers so they should know what their customers need.

Needs of the customers should be the main concern of a business. Businesses are prioritizing the

preferences of customers. It is also very important that companies should not just rely on the

present needs of the customer but they should continuously monitor the changes in the needs of

customers. T cater the changes in customers behavior companies should design new products

targeting the new needs of customers. It is also important that businesses must predict the future

needs of customers so that they can design products on timely basis.

Following are some characteristic that define the customers of a specific business:

1. Geography of the customers

It is very important to know that where do customers live. People living in different

places have different needs according to the temperatures, climate and economic

conditions of their towns.

2. Demographics of customers

It is very important to know about the customers. Age, gender, profession, and social

class of customers must be known. Demographics are very important in segmenting

the market. Needs of people of different ages, gender and of different social classes

are different.

3. Shopping Behavior

It is also important to know that from where customers do shopping. People living in

backward areas and people living in urban areas have different shopping behaviors. It

is important to know about the economic conditions of customers. What type of

products are more appealing to customer, what is preference of customer, in which

specific condition how do customers behave, all these questions are important

defining dimensions of customers.

1.3.2 Competition

To start a new business it is very important to analyze the market competitiveness. To start an

apparel line competitiveness of market must be checked. It is important to know that kind of

prints are already available in the market. What types of lines are successful and what type of

lines have failed and why they have failed in the market. To analyze the market conditions

different tools are adopted. Present and future market conditions both are equally important. To

get a reasonable market share it is very important to analyze the competitiveness of the market.

Some criteria of the analysis of market are given below:

Defining Competitors

The first step is to define the competitors of business. Competitors must be defined in the

appropriate scenario. It he competitors are defined in a broad term or if they are defined in a

narrow tern, both definitions can cause the damage to the effectiveness of the business. In the

market some businesses offer products that focus on a large audience and some businesses focus

on small audience. For a new business some of the already present businesses have much larger

image and some already existing businesses have direct competition with them. After defining the

competitors in terms of size of business the next step is to analyze the potential threats in that

sector of market. For small scale businesses it is essential to analyze the present competition as

well as future competition in the market.

Oren Harari has said that the capital flows in the businesses on 24 hours basis and competitors’

bravery both determine that in which direction the competition will turn. This factor also drops

the barriers of entry in a business.

Analysis of Competitor Strengths and Weaknesses

After defining the customers of the company the next step of competitive analysis is to determine

the strengths and weaknesses of the business competitors. It has been observed in many cases that

small businesses focus on the quality of the product or services. It is important to determine the

quality standards of competitors but merely determining the quality of products or services is not

necessary. For a competitive analysis of the market the quality of product or service is a small

section of the whole process. It has been said that the preferences of the customers, prices and

quality of products or services are the half part of the whole story of analyzing the competition.

The other half part of the story of competitive analysis is to determine the strengths and

weaknesses of the competitors. The companies that are financially strong and have strong and

competitive human resources and other assets will be the strong competitors of the future.

In analyzing the strengths and weaknesses of the competitors it is important to consider the

marketing efforts, customer services, production management and operations of the competitors.

The areas which are not fulfilled by the competitors effectively are of important considerations.

Along with strengths of the competitors, weaknesses of the competitors must be considered.

It is also important to consider that what strengths and weaknesses of the business are more

important and what strengths and weaknesses of the businesses are less important. David Aaker

has said that businesses must focus on the following areas in order to conduct a successful

competitive analysis:

1. Study about the factors that contribute towards the success or failure of competitors

2. Analyze the major factors that can motivate the customers of firm

3. Determine the major cost of the business

4. Study the major barriers that hinder the movement of a business with in an industry

Analysis Of Internal Strengths And Weaknesses

It is also very important to analyze the internal strengths and weaknesses of a business in order to

conduct the competitive analysis of the market. In what areas company can achieve more success

and in which sector company will face some problems are important considerations of

competitive analysis. Following are some considerations for analyzing the internal strengths and

weaknesses of business:

1. Is the human resource of business competitive and talented?

2. Are sales persons of the company equipped with competitive skills?

3. Does the company have efficient inventory management?

4. Are the operations of the company efficient?

After determining the strengths and weaknesses of the business company can focus on improving

its position in the market. Company can focus on the ways that can use the strengths of the

company effectively and it can also focus on the ways of improving its weaknesses.

1.3.3 Marketing Plan

After defining the customers of business company should focus on determining the price of

products or services that will be charged on the customers. Where will be the advertisement of

products of company done? What will be budget of the whole business? Where will be the

products sold? What will be the margin on products? What will be the cost? Al these questions

are answered in the marketing plan of a business. It is very important to consider that high quality

of products is not the guarantee of success of the business but it is the marketing of products that

makes products successful in the market.

1.3.4 Start-up Cost

To start a business cost must be estimated. It is very costly to introduce new apparel lines in the

market so the cost should be estimated very carefully. Following points must be considered in

estimating the cost of the new apparel lines:

What will be the traveling expenses involved in promoting the new apparel lines?

What kind of sales force will be hired? What will be the cost of hiring them?

What will be the cost in the production possesses of introducing new apparel lines?

What will be the cost of making prototypes of the business?

Small scale apparel lines having customized strategy are very expensive to start. To reduce the

costs of the production alternatives of the fabrics must be considered. It is important to consider

that where will be the lines introduced in an expensive market like Italy or in a less expensive

market like China.

1.3.5 Financing

At this stage of introducing the apparel lines competitors have been analyzed in terms of their

strengths and weaknesses, costs have been estimated and marketing plan has been analyzed. The

next step is to determine the ways of financing the project. Following rae some sources of

financing a new business:

Savings of the entrepreneurs

Loans from relatives and friends

Taking loans by mortgaging the personal assets

Searching investors from the market

Taking loams from banks

1.3.6 Know Your Launch Date

To introduce new products or businesses it is very important to consider the timings of the

introduction of businesses. In case of clothing business seasons play very crucial role. Buyers buy

specific types of clothes on specific times. To start a new business it is important to observe the

past events on which some business lunches proved to be successful and the events on which

business launches have proved to failure. Special events and seasons are very important in the

launch of new apparel lines.

1.3.7 Write Business Plan

This is the stage where all the important considerations have been made. At this stage business

plan should be written down. Writing a business plan increases the probability of success of a

business. Business plan must be focused. It should provide all the details of the business. For

every business writing of business plan is very important but if the business owner wants to

secure the financial position of the business then writing the business plan becomes highly

important.

It is very important to deliver the business idea in an effective way. It must be written in

persuasive language and it must present a clear picture of the business. Business idea must be

researched and it should be made feasible.

1.4 Success Story of Zara Clothing Brand

Zara is the retail unit which is based in Spain. Inditex SA is the parent company of Zara. It is very

successful retailer in the Spain and all over the world. It operates in 81 countries of the world and

has 1500 stores. The company operates in clothing industry. It offers women clothing and

accessories with unique styles and at competitive prices. Zara had started in 1975. It is very

astonishing to quote that Zara does not uses advertisement for the promotion of products. It

focuses on the locations of the stores to attract customers.

Zara has vertically integrated itself. The success of Zara owes a great deal to the vertical

integration and its art of designing the products in a very short time. Company uses the sales staff

in order to analyze the needs, trends and wants of the customers. After analyzing the needs and

trends of the customers company produces products for the customers and introduces larger

quantities in the market. It dispatches the new products in the market two times in one week.

The success of the company depends on the following three factors:

Short delivery times in delivering the stylish clothes

Limited supply

Large quantity of designs

It is on the credit of Zara that it launches more than 12000 designs every year. Like other

companies in the clothing business company does not use the low cost labor but it uses 80 % of

its labor from Spain and other countries in the Europe that are high labor cost countries. Zara

stores are designed in very stylish way. When customers walk in the stores they feel happy.

Fashion products of Zara are unique that cannot be found on the other stores of market. The

styles of Zara are not seen in the other stress of the market.

Very significant resource of the Zara is its staff. All the staff members and management team of

Zara is engaged in sending orders and in facilitating the company by providing insights about

styles. Staff of Zara uses technological means to identify the trends of customers. To track the

information staff uses modern computers customized with hand held operations. The goods of

Zara move across 2000 kilometers by some underground tracks. It is ensured that the orders of

the company are delivered to the specified destinations. 60000 clothing items of the company are

distributed in one hour by optical scanners.

The fashion products are delivered to the customers when the season of fashion is very hot. The

products are delivered to the customers at very low prices as compared to the prices of other

stores in the market. Along with women clothing Zara sell men clothing and accessories. It offers

products with distinguishing features. It has also started “Home Store”. There are now 284 home

stores of the company across the world. Its stores are present in the major markets of the

world.The parent company of the Zara is engaged in the production of other clothing brands like

Massimo, Oysho, and Berska.

1.5 Success Story of VAN SCHAACK

Van Schaack is a store that focuses on the males. It focuses on the males of urban areas with age

ranging from 25 tears to 50 years. The target market of Van Schaack consists of the males that

are conscious of fashion and have youthful masculine image. The customers of the Van Schaack

work out in gyms to keep them fit. This attribute of customer is also included in the products of

Van Schaack. The core customers of the company remain fit, have youthful image, keep

themselves active, have casual lifestyles and like sports. The customers of company love to go to

parties with friends. To carry on all these activities customers of the company want fashionable

clothes. The need of the customers is fulfilled by Van Schaack.

Van Schaack focuses on fulfilling the needs of its customers. Prompts of the company are taken

from other successful men stores like Men Tour and Mike Kaplan. The company takes cues from

these big stores. From these two big stores the best thins are borrowed. From Men Tour lifestyle

of customers is borrowed. From Mike Kaplan marketing is borrowed. The strength of Men Tour

lies in its operations of catalogue.

The success of Van Schaack depends on its five years business plan. The core customers of the

company live in the urban areas and business plan considers it. The company is focusing on

expansion of its stores in urban areas. The company is foreseeing to expand its business to better

lines of sports wear, active wear and cosmetics in the environment which is quite stylish.

Van Schaack works in an environment that is very open. Main competitor of the company is Man

Tour. The other competitors of the company are the stores that offer sports wears at moderate

prices like Runway.s Runway is a specialty store. Other competition of the company comes from

departmental stores like Crystal, Wolfgang, and Bachman.

Van Schaack is thinking to mold its approach. It is focusing on providing stylish merchandise of

sports wear. The colors, styles and outlook of the products will be more fashionable. The outlook

of the sportswear of company will resemble to the products of Mike Kaplan. The company

believes that more masculine products appeal to the males. It is also focusing on the better quality

of products. The company is trying to incorporate the features in products that are missing in the

competitor’s products.

1.6 A sample business plan for starting a clothing line

1.6.1 Introduction of the Clothing line

 The name selected for a new business line is J&Z. The line will serve the customers of all ages

by providing clothes. The line will consider the needs, tastes, trends and ideas of the customers.

The stores of company will have the clothes pf customers of all ages. Te stores will be the one

stop stores from where customers of all ages can shop their clothes. The aim of the store is to

provide clothes to the customers of all ages and also to provide accessories like bags, glasses,

jewelry and other fashion accessories. Along with products company also focuses on providing

services to the customers that can satisfy them. The distribution of products will not be done only

be means of physical distributions but also through e-commerce. By doing business via e-

Commerce the company can reach customers at large distances. Company can have access to the

mass market without affecting the advertisement cost. By doing e- commerce business company

can focus on delivering products to larger number of customers without opening new stores.

To start the business financial plan of the business has been designed that composes of allocation

of resources and capital budgeting. It is very important to manage the finances of the company

when the business has been started. It is hoped that the J&Z will satisfy the needs of the

customers. J&Z is planning to target customers by providing them high quality products and

quality customer services. Company aims at providing new trends to the customers by delivering

products through e- Commerce.

1.6.2 Objectives of J&Z Clothing Line

To start a business the aims and objectives are designed. It is very important to design the

objectives of the company that are clear and achievable. Objectives of the company are made to

achieve the long term goals of the company. Following are the objectives of the company J&Z:

Providing customer satisfaction to all customers of all ages by providing them stylish

clothes of new trends and ideas.

Launching stores in the main market of the city so that company can reah a large number

of customers

Providing jobs to the people in fashion industry

Attaining profits in the first year of opening stores that would lead to the success of stores

Achieving high customer loyalty by providing them high quality products. Cost of

creating new customers is quite high. so company will focus of retaining present

customers

Creating high image of store in the market by providing high quality. J&Z focuses on all

age groups so company aims at establishing one stop stores.

Company aims at providing products with distinguishing features.

To become a trend setter in the market by launching new cloth lines with new styles

To establish a strong relations with the customers in order to create loyalty

Company aims at raising its voice for saving animals. It also aims to raise charities

To develop a strategy that focuses on the growth of business across the world

Clothes will be sold at different prices ranging from low to high

1.6.3 Mission of the J&S Clothing Store

Mission of the business is very important to design. The mission of J&Z is to make customers

experimenting on new styles. The mission of the company is to serve its customer by providing

them convenient shopping experience and by providing them new trends of clothes. Many modes

are used for selling products of the company so it makes convenience for the customers to shop

from any location.

Customers will experience the new ideas of the company at competitive prices. The company

targets customers of all ages with differentiating offers. Company wants that customer will

recognize it when they go in the market for shopping. All these things must be provided with high

quality. There must be financial soundness in the business as well. Company should make profits

for the investors. The products of the company should reflect the lifestyles and high quality.

The company also aims at raising it voice for the different communities. In magazines,

newspapers and Journals Company will raise its voice. Company will also establish relations with

the different communities so that the company can grow faster.

The company has mission to be an environment friendly company. It assures its customers that it

will obey all laws regarding safety of environment and animals. Company will not violate the

animals or other environmental factors while extracting raw materials for the products.

The clothing industry is very saturated at this time. The mission of the company is to create jobs

for the people in the fashion industry and help the economy.

 1.6.4  Keys to Success

 The aim of the company is to create a mark in the industry. Company has recognized some

successful factors for itself. Company has to manage its operations and resources effectively so

that it can lead to success. The company has to manage the operations so that the investors can

get higher rates of returns.

There must be reasonable financial resources for the company so that it can succeed in the

market. There must be enough financial resources that can fulfill the needs of the company in the

long run. There must be some back resources of the company that can help the company in

difficult times.

There would be an appropriate business policy of the company that targets at a managing the

stores of the company. There must be a proper planning about the schedules of introducing new

products. There must also be a proper policy designed for offering the discounts on different

products.

In order to become efficient and to manage the liquidity of the company no credit shopping will

be offered to the customers. The company is a manufacturing and retail firm and it will not grant

credit to its customers so that credit efficiency can be achieved.  

 There must be contingency planning about critical situations. Company should respond to the

needs of the customers in real time. There must be up to data planning of the company regarding

different issues. Customers of the company will be given different discounts and promotions.

 The company will conduct different researches in order to analyze the trends of the market and to

analyze the new needs of customers. There will be questionnaire survey in order to find the

perceptions of customers about the company’s products. The survey will b conducted physically

and through online. Suggestions from the customers will be appreciated and will be considered

for improving the business. By analyzing the needs of customers company can design products

for the customers on timely basis and this can provide a competitive edge for the company.

Company will have a clear picture of understanding of the market trends. The company should

respond to the environmental changes in real time. The success of companies depends on how the

company achieves the objectives in a changing environment. This can be achieved if company

adapts to the changing environment.

The success of the company also depends on the pricing strategies. The company will offer

products to the customers of different ages at reasonable prices. There will be range of prices

available to the customers.

 Company focuses on providing satisfaction to the customers. The products and stores are

designed in such a way that customers feel a sense of satisfaction after purchasing from the

company. There are number of choices offered to the customers. A range of products at different

prices are available. The company has to create an atmosphere in the market that has long lasting

impact on the customers and when customers come back at stores they get satisfied.

 To achieve the objectives of the company it is very important to make the employees motivated.

Motivated employees work for the company with more efforts. Employees of the company are

motivated by providing them higher salaries, flexible working conditions, flexible timings and

freedom of work. Employees will be encouraged to work hard for the company. Trust will be

established between the company and its employees.

 1.6.5 Company Ownership

The will be a retail clothing store having focus on the urban areas. The ownership of the company

will be between two partners. 50% of the shares of company will be in the hands of Nancy

Seymour and 50 % shares will be owned by Joanne Arbor. The business will be a

partnership business between these two partners. At the start it will be partnership and

afterwards it will become a Liability Corporation.

1.6.6 Start-up Summary

Total start up cost of the business is expected to be $53,743. In this cost fixtures, and

equipments are included. In this cost there is inventory of $19000. The investment of owner

is $18,299. The additional funds of the business include $35,444.

The business will be started in the month of December because at that time the event of

Christmas attracts a number of customers towards stores fro shopping of clothes. After

establishment of the business it must be made cyclical because of cyclical demand of clothes.

1.6.7 Company Location and Facilities

The location of the store will be 423 West Oaks Boulevard, Hartford, Connecticut. The area

of the store will approximately be 2500 square feet. The store will contain two dressing

rooms and one common room. There is a large parking place available outside the store. In

the market a number of businesses are operating. Amongst the hot businesses of the market

the store has been established. It facilitates the store to generate a constant inflow of

customers in the stores.

1.6.8 Business Operations

There are a number of clothing stores available in the market. To make them differentiated there

must be some different products in the stores along with clothes that can attract the attention of

customers. The products available to the customers include Sweaters, jackets, Suits, jogging suits,

jogging tracks, children’s products, dress shirts, sports wear. The timings of the store will be form

10A.M to 10P.M. The store will be opened 7 days in week. On Sundays the timings of the store

will be 11:00 A.M. to 8:00 P.M. There will be two employees in the stores who will be

present in the store for the whole day. They will be awarded with hourly wages. The wage

rate of workers is decided to be $6 per hour. In the firs year of business the employees will

not be awarded with the benefits.

The items will be purchased from a number of suppliers. The suppliers of the company include

BRG Sportswear, ABX and Mark Zap Clothing. The inventory turnover of the company is

estimated to be 8 times in one year. The starting inventory of the company is decided to be

$19000 having mark up of 100 percent.

Following is the detail of operations of the company:

There will be a layaway of 30 days having 50 % non refundable portion

The policy of exchange will be of 30 days. There will be no refunding of cash.

For return of cheque, $25 will be charged.

There will be permission of taking 2 items in the dressing room in one time.

Credit cards will be accepted.

There will be no dealing in granting credit to the customers.

1.6.9 Products

There has been increase of the urban dressing just after the increase of the pop trends in the music

industry.

Boston Rags will focus on selling the products related to hip hop trends of the market. Boston

Rags decides to carry the products that are simple in designs. With even simple designs their

products offer chameleon touch. The products can fit into any kind of arrangement. Mark Zap

says that this type of product has expected sales of about $15 million to $18 million. The sales of

product depend on the type of stores. There are new trends in the market that are very simple and

easy to wear. The clothing can be available in the fashion shows and at different festivals.

1.6.10 Market Segmentation

Hartford Chamber of Commerce describes that there are almost 150000 males and about 165000

females living in the Hartford County. The total number of people in the country is 315000.

There are about 186000 people whose ages range from 18 tears to 54 years. There are

approximately 76 % people in the country whose household income exceeds $15000. The target

market of Boston Rags is the customers of age ranging from 18 years to 54 years. The target of

the company will be the customers having household income more than $15000 or more than

this.

1.6.11 Target Market and Program Strategies

Near the stores of the business a new residential development has been done. The prices of

houses in the development housing plan are about $100000. There is also campus of Central

Connecticut State University along the store site. All this area has potential customers of the

company. The customers of the company are employed women and men. To promote the

products of the company flyers and other documents are used. Some of the marketing

strategies of the company are given below:

Design attractive advertisements to attract customers

Select appropriate publication for promotion

Define a specific goal of advertisement

Involve the customers

Provide information to the buyer

Five appropriate headings on the advertisement to attract customers

Be specific in message

Provide good offers to the customers

Be a creative player in selecting media for the advertisement

1.6.12 Advertising and Promotional Strategy

Boston Rags will select the promotions on a very limited scale before targeting a large audience.

On a small scale the products will be tested. The tests of products include variations in the offers,

changes in the message of the advertisement and promotions. The message will be tested by

providing variations in the text, image and presentation. The testing of the promotions provides

early reaction of the audience. The response of the audience can be checked by the messages

before the actual launch of the offer. This can assist the company in making breakeven strategies.

The testing of promotions helps in the carrying of successful ideas and it eradicates the

unsuccessful ideas of the business. Testing of the business ideas provides help to analyze the cost,

profit and response of the market to the offering of the company.

The advertisement budget of the company will be decided about 2 to 3 percent of the total sales of

the company that are averaged to be $5,627 in one month after the start of the business. The

advertisement budget of the company is based on the cost method. The cost method says

that a company on advertisement more than it has. Boston Rags decides to increase the

amount n its opening.

Following steps are considered in order to analyze that the amount spent on the advertisement is

effectively used:

Establish the target markets of the company by defining the customers in appropriate

way. Define the customer who will be given the reach of advertisement.

Set a budget on rough basis for the advertisement

Contact the T.V stations and radio stations for the advertisement of products of the

company

Speak to the business people and take views of them about broadcasting advertisement

Ask about delivering the products to the audience

Make investigation about the design of commercials

After making a design of the advertisement the cost is estimated. Cost is estimated on the basis of

targeting customers. In the next step the cost is negotiated with the other party. After negotiation

most attractive deal is made through which company can reach a large audience in cost effective

way. The direct mail campaigns are also launched. The reactions on the mails are also noted. The

mails that have effective communication are saved and the reaction is taken on them. In the order

form some stickers having marks of Yes or No are also pasted so that reader may also get

involved in the campaign. The direct mailing program is maintained by associating it with Direct

Marketing Association (DMA).

The advertisement is focused on a narrow audience. In the advertisement campaign age of

customers, income, social status, location and interests are considered as main concerns of the

advertisement campaign.

1.6.13 Strategic Alliances

Ms. Seymour and Ms. Arbor who are the partners of J&Z have built some strategic associations

in order to get help in the business. These associations are:

SBA Business Information Center

Community Capital Development Corporation

Hartford Area Investment Fund

BRG Sportswear, Inc.

White Sail

USA 66

Wonder, Inc.

ABX

Mark Zap Clothing, Inc.

1.6.14 Risks

There s a dual risk in to retailers of clothing industry. First the market growth is very slow.

Second the demographics and trends of the market change very quickly. There have been some

structural changes in the market. Boston Rags will adjust the strategies of the company with the

new trends. The new marketing techniques will be adopted such as catalogue marketing,

electronic mailing, small store and quality customer services. By doing this company can get a

good market position. The owners are contributing equal capital. There is a risk of 34 % in the

investment of the owners’ money.

1.6.15 Important Assumptions

Financial plan of the company is based on some important assumptions that are listed below:

String economic conditions are assumed in the market rather than recession

It is assumed that there are no changes in the future about clothing styles.

References:

Retail Clothing Store Business Plan - Executive summary, Company summary, Products, Market

analysis summary Online Available at:

http://www.referenceforbusiness.com/business-plans/Business-Plans-Volume-09/Retail-Clothing-

Store.html#b#ixzz1kQpqOE5t Accessed on 27 Jan, 2012

Retail Clothing Store Business Plan - Executive summary, Company summary, Products, Market

analysis summary Online Available at:

http://www.referenceforbusiness.com/business-plans/Business-Plans-Volume-09/Retail-Clothing-

Store.html#b#ixzz1kQpeXAes Accessed on 27 Jan, 2012

Retail Clothing Store Business Plan - Executive summary, Company summary, Products, Market

analysis summary Online Available at:

http://www.referenceforbusiness.com/business-plans/Business-Plans-Volume-09/Retail-Clothing-

Store.html#b#ixzz1kQp67bGx Accessed on 27 Jan, 2012

Retail Clothing Store Business Plan - Executive summary, Company summary, Products, Market

analysis summary Online Available at:

http://www.referenceforbusiness.com/business-plans/Business-Plans-Volume-09/Retail-Clothing-

Store.html#b#ixzz1kQosKdTs Accessed on 27 Jan, 2012

Retail Clothing Store Business Plan - Executive summary, Company summary, Products, Market

analysis summary Online Available at:

http://www.referenceforbusiness.com/business-plans/Business-Plans-Volume-09/Retail-Clothing-

Store.html#b#ixzz1kQoLVUbY Accessed on 27 Jan, 2012

Retail Clothing Store Business Plan - Executive summary, Company summary, Products, Market

analysis summary Online Available at:

http://www.referenceforbusiness.com/business-plans/Business-Plans-Volume-09/Retail-Clothing-

Store.html#b#ixzz1kQo3md7F Accessed on 27 Jan, 2012

Retail Clothing Store Business Plan - Executive summary, Company summary, Products, Market

analysis summary Online Available at:

http://www.referenceforbusiness.com/business-plans/Business-Plans-Volume-09/Retail-Clothing-

Store.html#b#ixzz1kQpJkqLX Accessed on 27 Jan, 2012

Competitive Analysis - advantage, disadvantages, cost, Elements of competitive analysis Online

Available at: http://www.referenceforbusiness.com/small/Bo-Co/Competitive-

Analysis.html#ixzz1kQlRd3Qd Accessed on 27 Jan, 2012

Competitive Analysis - advantage, disadvantages, cost, Elements of competitive analysis Online

Available at: http://www.referenceforbusiness.com/small/Bo-Co/Competitive-

Analysis.html#ixzz1kQlHjDQg Accessed on 27 Jan, 2012

Men's Clothing Retailer Business Plan - Van schaack principle, the customer, the store,

Competitionstrategy Online Available at:

http://www.referenceforbusiness.com/business-plans/Business-Plans-Volume-04/Men-s-

Clothing-Retailer.html#ixzz1kQmeFj4d Accessed on 27 Jan, 2012

Men's Clothing Retailer Business Plan - Van schaack principle, The customer, The store,

Competitionstrategy Online Available at:

http://www.referenceforbusiness.com/business-plans/Business-Plans-Volume-04/Men-s-

Clothing-Retailer.html#ixzz1kQmXXh00 Accessed on 27 Jan, 2012

Retail Clothing Store Business Plan - Executive summary, Company summary, Products, Market

analysis summary Online Available at:

http://www.referenceforbusiness.com/business-plans/Business-Plans-Volume-09/Retail-Clothing-

Store.html#b#ixzz1kQoWVCOC Accessed on 27 Jan, 2012

Retail Clothing Store Business Plan - Executive summary, Company summary, Products, Market

analysis summary Online Available at:

http://www.referenceforbusiness.com/business-plans/Business-Plans-Volume-09/Retail-Clothing-

Store.html#b#ixzz1kQody8PJ Accessed on 27 Jan, 2012