Mirror Mirrow

Boutique Shop

Executive Summary

Mirror Mirrow

Boutique Shop is

designed to become market leader in the Dhaka and busy area. All facilities of this
company located in Dhaka, Uttara, Nikunja, Tungi, Banani, etc. and the biggest tourist
and visitors attraction location in the capital city.
Our mission is to provide our customers luxury and rest with best customer service.
Dhaka city market hospitality business situation is on its competitive edge with variety of
luxury 5 star facilities to 3 star hotels, motels and restaurants, shopping mall, and
marketing area with price range BDT 100 - 5000.
We possesses good information about the market and knows a great deal about the
common attributes of the most prized and loyal customers. We benefit from this
information in preparing extensive marketing plan for the purpose to extend our market
share and profit ratio in the market. During market research we use different method
specially focus groups and primary data available for the same purpose for maintaining
positive steady growth, attracting new customers and increase in occupancy.
We raise our market segmentation from three types of customers to five categories which
we did not consider in the last years. On the base data and information gathered in the
market we also predict sale forecast of the company and estimated growth of 10 to 12%
percent per year.

We use SWOT analysis as a tool of our strengths, weaknesses, opportunities and threats
in the market for our business. We tried our best to be realistic throughout this marketing
plan focus on customer satisfaction which is our best asset and back bone of our business.
We also use geographic and demographic parameters as our mile stone. In marketing mix
we looked back strictly in our Product (hospitality service sector) and competitive prices.
We also suggest a promotional strategy and entirely new look place (our facilities) and
suggestions to make it better and attractive for our customers. We also suggest an action
plan for the group properties to cope with repositioning of our service and its quality.

Acknowledgement

We wish to acknowledge our regards and indebtedness to our guide and benevolent Prof:
MR. Ghulam Ahmad Rana teaching Introduction to Business in University Of
Management and Technology (UMT) Lahore. Whose kind and precious suggestions
enriched our thoughts and helped us to accomplish this Business plan. We also want to
thank our families who supported us. Thanks to Almighty ALLAH for giving us such will
and power to complete this business plan on time

Preface:
We have chosen this Boutique to make our project on it. We had a good time while doing
the survey and gathering the information about the topics, and then developing a fictitious
company into a project.
The project is basically about the Business plan of the day care centre. We also used the
source of internet for gathering information. We think that we have done our job in
making the business plan we hope that we have given all the complete information
required by our teacher, and hope that our hard work pays off.

Introduction
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 Business Idea:

We want to open a new ladies boutique in Uttara and we will deal ladies casual wear,
formal wear and semi formal wear.

The Name of the Business:

The name of our boutique is mirror mirrrowBoutique Shop

Business type:
The business type is partnership business .we are four friends to decide that we will start
a new boutique.

Co-owners:

Ishrat Jahan
Sri Zolekha Zuli
Nasrin Zahan
Faquir Sanoar Sany
Md. Sumon Miah

Our Objectives:
Non-financial objective:
.

To be among the top ten favorite brands.

To add new design in every season.

Financial objective:

To maintain an inflation growth in earning per year at a rate of 12%.

To obtain a return on equity of at least 30%.
Providing stitching facilities to other boutiques in 2010 which are lacking this
facility.

Problems:
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.
There are also some major problem in partnership business. Such as 1) Liability
2) Rising Capital
3) Sharing responsibility

Mission:
Satisfying our costumers by providing them best qualitative stuff and unique designs
keeping in view their comforts and excellence

Vision:
To change our customers overview and motivate them or encourage them to wear local
and fashionable attire .

Proposed Capacity
The Boutique business capacity is greatly dependent on the market size and the number
of potential clientele one can attract. Furthermore, the women fashion wear 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 750 dresses. The breakup of
the total number of dresses will be as follows:
Total designs selected by designer
Number of dresses in each design
Number of dresses in each size

20
50
50
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Total Number of dresses

1000

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 BDT 1.5 million. This includes a
capital investment of BDT 950000 and a sum of BDT 550000 as working capital.
Fund collection fromIshrat Zahan-600000
B-400000
C-300000
D-200000

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.
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.

Management Team:
The mirror mirrow Boutique Shop will be a partnership firm. The partnership will lie
between the founders of the company. Partnership will be according to their share of
capital invested in the firm. Profit will be distributed between them as per their
percentage share in the firm. The every decision will be taken with the consensus and
majority of votes will be required to take the decision. On every important document the
signature of the at least 3 members should be there. This will also imply on the financial
side of the firm. Partners and their contribution to capital is as follow

Name of Partners
Ishrat Zahan
Haseeb Razzaq
Rizwan Safder
Saadat Meeran
Shayan Nadeem

Contribution
40%
15%
16%
19%
18%
7

Tayyaba Kanwal

13%

Hierarchal Structure:
The hierarchal structure of the Power Trip company is as follow:
Board of Directors------------------------------------------Partners of Firm
Chief Executive Officer----------------------------------- Saadat Meeran
Chief Financial Officer------------------------------------ Sara Bano
Marketing Manager---------------------------------------- Shams Ali Anjum
HR Manager------------------------------------------------- Salman Dar
Production Manager--------------------------------------- Shayan Nadeem
Operational Manager-------------------------------------- Aftab Siddiqui

The Organizational Chart:

Board of

Directors

CEO

Finance

Manager

Finance
Finance

Finance
Finance

Marketing
Manager

Marketing
Marketing
Officer
Officer

Marketing
Marketing
Officer
Officer

Human Resource
Manager

HR
HR
Officer
Officer

HR
HR
Officer
Officer
Marketing plan:
Officer
Officer
The marketing of boutique follows the conventional marketing pattern which is
dependent onOfficer
selection of venue of the outlet/s and the product mix (designs and sizes),
Officer
Officer
Officer
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.
Word-of-Mouth: Let your friends and family do the raving for you and the word
will get out and you will start gaining a business reputation for offering this that
or the other thing. Cost: FREE
Radio: Call the advertising department for an appointment. They show you what
they offer. You get to hear your business name advertised on the radio or. You can
make a choice or not. Costs: Yes

Membership cards

Exhibitions

Business Cards Business cards identify your business. Hand one out every time
you meet somebody new or speaking with somebody who has a similar business.
It is a simple marketing strategy, Costs: Some

Promote for Seasons & Holidays Set up sales days for seasons, holidays, Be
sensitive to faith and ethnic related holidays.

Special Sales Hold special sales on specific items during specific hours (down
time hours) of your business. This will draw customers in search of these items.

Cross Promote with Other Stores Exchange store items and label with each
others store name and hours. This will help generate traffic and recognition for
customers for both stores

Store Draw Offer a Draw to customers at the store. Select a popular item and get
customers to leave their name in a ballot box. The more they frequent the store the
more submissions are made therefore higher chance of winning. We promote a
month in advance.

Moreover, in order to keep abreast with the emerging trends and client tastes, surveys
regarding customer satisfaction/needs should be a regular feature of this project. 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.

Note:
This production also includes additional suits that will be prepared on
orders/outsourcing/CMT (Cutting, Manufacturing] and Trimming) per month in order to
utilize the maximum capacity of the stitching unit.

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

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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.
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 it. 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.

Note:
In case of over-lock stitching, it will be done in-house. The stitching of buttonholes as
well as elastic embedding will be outsourced.

The Product Life Cycle:

A new product progresses through a sequence of stages from introduction to growth,
maturity, and decline. This sequence is known as the product life cycle and is associated
with changes in the marketing situation, thus impacting the marketing strategy and the
marketing mix.
The product revenue and profits can be plotted as a function of the life-cycle stages as
shown in the graph below:

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Products:
This boutique will offer following product categories of men 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.

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The combination of outfits for the proposed outlet will be as follows

Product Mix:
Category
Casual Wear
Semi Formal Wear
Formal Wear

% Of Total Outfits
34%
33%
33%

Average Sale Price:

Category
Casual Wear
Semi Formal Wear
Formal Wear

Ave. Price per outfit

1000-2,200
1500-6,000
3000-5,500

Costs of Goods Sold and other Expenses:

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:
Category
Casual Wear
Semi Formal Wear
Formal Wear

Cost (percentage of sales)

35%
32%
30%

Human resource requirements:

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

Staff Salaries
Positions
Production Staff
Designer
Tailor
Press/iron man/finishing
Dyer
Total
Administrative Salaries
Sales girl

Required

Salary per Month

Salary per Annum

1
5
1
1

15,000
7,000
4,000
5,000

180,000
420,000
48,000
60,000
708,000

6,000

144,000

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Office boy
Guard
Peon/sweeper
Total

1
1
2
14

3,500
5,000
2,500

42,000
60,000
60,000
306,000

Machinery/equipment details:
The boutique will require a small in-house stitching unit. The cost of the stitching
machinery will be as follows:

Machinery Detail:
Stitching Machinery
Single needle lock stitching machine
Over lock Machine
Embroidery
Total

No.
8
1
1

BDT/Unit
19,900
56,800
29,900

BDT
159,200
56,800
29,900
245,900

Note:
Prices have been quoted by SINGER sewing company, Pakistan. Though the prices here
are given of the new machines but second hand machines are also widely available which
can function properly and can reduce the project cost too.

Furthermore, the following will also be required to setup a Boutique:

Office Equipment:
Other Equipment
Computers
Computer printer
Telephones
Fax machines
Software
Total

No.
1
1
2
1
1

BDT/Unit
25,000
12,000
3,500
12,000
30,000
86,000

BDT
25,000
12,000
7,000
12,000
30,000

Rent Cost Detail:

BDT
Security for renting shop/outlet (Rent @ Rs.56,000 per month. 168,000
3 months rent as security)
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Interior decoration (installing lighting, mannequins, hanging 437,884

racks, mirrors, glass panes, cash counter, and other dcor, etc.)
Security for renting a house for installing the
45,000
stitching unit (Rent @ Rs15,000 per month)

Infrastructure requirements:
The project will have the following infrastructure components:
Description
Main shop
Try Room
Small Store
Kitchen
Building for Stitching Unit

Sq.ft
600
36
100
64
10 Marla House

Project economics:
Project Cost:
Description
Machinery & equipment
Furniture & Fixture (Interior Decoration)
Office equipment
Security Deposits for Premises
Pre-operating expenses
Salaries
Promotional Expenses
Total Capital Cost
Working Capital
Raw material (Fabric & Accessories)
Prepaid Rent (Boutique and Stitching Unit)
Total Working capital
Project Cost

Cost (BDT)
166,300
437,884
86,000
213,000
31,000
67,246
1,299,430
104,680
426,000
530,680
1,830,110

Project Returns:
Internal Rate of Return (IRR)
Payback Period (Years)
Net Present Value (NPV)

67%
1.50
3,684,374

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Financing Plan:
Financing
Equity
Debt

60%
40%

BDT
1,098,066
732,044

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.

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. . Do not partner with a
competing store.

Pilferage in the designs

The designs which a designer produces 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

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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.

Key assumptions:
Production Assumptions:
Number of Stitching Machines
Production Capacity (No. of dresses per month)
Capacity Utilization for the first year
Self Production (% of total production)
Dresses manufactured on CMT basis (% of total production)

5
750
55%
60%
40%

Operating Assumptions:
Hours operational per day
Days operational per month (Production)
Days operational per month (Boutique)

8
25
25

Cash flow Assumptions:

Account Payable Cycle (Days)
Account Receivable Cycle (Days)

10
15(of 30%
of sales)

Expense Assumptions:
Promotion Expenses after Year 1 (% of expected sales)
Machine Maintenance
Raw Material Price Growth rate
Payroll growth rate
Machine Maintenance growth rate
Rent growth rate

2%
1%of
machinery
cost
1%
5%
5%
10%

Financial Assumptions:
Project Life
Debt: Equity
Interest Rate on Long Term Debt
Debt Tenure

10 Years
40:60
14%
5Years
17

Debt Payment per year

Conclusion:

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