PlusLifeBuZPlan_13Apr2011_Alexx - ntutrump

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Dec 13, 2013 (3 years and 5 months ago)

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H6697



I
NFORMATION
E
NTREPRENEURSHIP

2011

Business Plan

PLUS LiFE

By Group Trump:

Alexander Bernard Halim


G1001168K

Ho Lee Wen




G1001181E

Lee Ping Verena



G0901687K

So Jami Florence



G1001157D

Zhang Liming



G1002507C






2


1

Executive Summary

PLUS LiFe is a new company that aims to provide a one
-
stop online store for
plus
-
sizers from clothing to a lifestyle. PLUS LiFe website enables plus
-
sizers

to shop and buy quality and trendy apparels with matching accessories
anytime, anywhere, while receiving fashion and health tips. We will also be a
platform for local designers to showcase their designs under PLUS LiFe. The
company will be a partnership a
nd managed by the five business owners
-

Alexander Bernard Halim, Ho Lee Wen, Lee Ping Verena, So Jami Florence
and Zhang Liming.


Some 1.2 million Singaporeans made online purchases worth S$1.1 billion in
year 2010 and the number is expected to hit S$4.4
billion in 2015 according to
a survey by Paypal. Fashion remains the one of top products purchased
online accounting S$143 million (13%) of the total online purchases.
Similar
to other
developed countries, Singaporeans have grown bigger and fatter as

comp
ared to two decades ago. 10% of Singaporeans are obese However,
plus
-
size apparels remain uncommon in Singapore and there are not many
physical and online shops that focus on plus
-
size apparels. There is only one
main competitor


Big AND Beautiful (BAB).

Based on the current market
situation as well as the growing number of plus
-
sizers, there is definitely an
opportunity in the plus
-
size market.


PLUS LiFe website will be a one
-
stop retail platform for plus
-
sizers from
casual clothing, formal wear to a l
ifestyle. Our apparels will be from two
different sources


overseas suppliers and self
-
manufacture. Our main
apparels supply will be from China and we will also be working with a China
manufacturer to produce our own designs.


PLUS LiFe will be the fashi
on platform for local design students to showcase
their creative works and receive feedback and build up their design portfolio.
PLUS LiFe will market their designs under our designer collections. The
website will also provide our customers with the latest

fashion news, tips on
how to dress, what type of clothes will best complement body shape, health
tips, etc.


The primary target market of PLUS LiFe will be plus
-
sizers who are conscious
with their image and want to look good. PLUS LiFe will translate the

latest
trends from the catwalk, celebrities and streets into affordable quality stylish
3


plus
-
size apparels. In the first two years, our concentration will be home
-
based (Singapore) and on the Malaysia market. PLUS LiFe wishes to expand
its marketing effor
ts to enter the ASEAN market from year three onwards
starting from Indonesia and eventually moving towards the Asian market. We
will also be launching our plus
-
size men’s collection in the fourth year.
However, because of the low barrier to the market, we

will expedite its
anticipation to enter the ASEAN market if competition increases.


To achieve the expansion plan and fully exploit the market, PLUS LiFe is
seeking SGD $

400,000 as growth capital. Over the next 3 to 5 years,
PLUS LiFe would be able to g
enerate significant earnings for its investors.

According to our estimate, PLUS LiFe is projecting a sales of SGD $

171637.28 in its first year and forecasting a yearly average growth of 35% for
the next five years. The average return of owners’ equity ye
arly is expected to
be 3.5.
Overview figures are shown as below:



Figure
1
-

Total Revenue

$0.00
$200,000.00
$400,000.00
$600,000.00
$800,000.00
$1,000,000.00
$1,200,000.00
$1,400,000.00
$1,600,000.00
YE00
YE01
YE02
YE03
YE04
$216,125.00

$431,329.69

$755,987.44

$1,080,292.50

$1,557,071.85

Total Revenue

4



Figure
2
-

Profit after Tax


2

Company Summary


PLUS LiFe is an upmarket

online store that will open for business in May.
PLUS LiFe aims to provide a one
-
stop online store for plus
-
sizers from
clothing to a lifestyle. The PLUS LiFe website enables plus
-
sizers to shop and
buy quality and trendy apparels with matching accessorie
s anytime,
anywhere, while receiving fashion and health tips. PLUS LiFe will also be a
platform for local designers to showcase their designs under PLUS LiFe


2.1

Company ownership

Plus LiFe is organized as a partnership among five persons, namely,
Alexan
der Bernard Halim, Ho Lee Wen, Lee Ping Verena, So Jami Florence
and Zhang Liming
. Alexander will manage the website, Lee Wen takes care of
finances, Jami will handle all administrative and managerial duties while
Liming will focus on our suppliers and man
ufacturers in China. Verena acts as
a silent partner.


2.2

Start
-
up Summary

Plus LiFe start
-
up costs are as follows: The five partners will come up with an
initial capital of
$x.

Plus LiFe

will start business with three months’ stock of
clothes and accessories. As Plus LiFe is an online business, the majority of
the assets will be in inventory.

$0.00
$200,000.00
$400,000.00
$600,000.00
$800,000.00
$1,000,000.00
$1,200,000.00
$1,400,000.00
YE00
YE01
YE02
YE03
YE04
$171,637.28

$358,445.50

$640,998.50

$937,997.04

$1,378,879.75

5



Insert Start Up costs OR
Balance Sheet at start
-
up point


The purpose of this business plan is
to raise SGD$400,000 as growth capital.
The funds are needed for the plans to expand the market to ASEAN
countries, followed by other Asian countries within the next 5 years. Plus LIFE
also has plans to launch plus
-
size men’s apparel by the fourth year.

Th
e funds
will primarily be used in engaging local consultancy firms to conduct market
research and on marketing efforts. The usage breakdown of the growth
capital is as follows:


Insert a table of expenditures for $400
,000



2.3

Company Locations and
Facilities

Plus LiFe’s office will be located at Blk 306A Punggol Drive #12
-
001
Singapore 560306.
This
is currently under Verena’s
personal
ownership.
Approved by the Housing Development Board’s Home Office Scheme, the
90m
2

flat will be used as an office, as well as storage for PLUS LiFe’s
inventory.


3

Products

PLUS LiFe
will
mainly operate

on women’s clothing selling, and the products
are planned to include formal wear and casual clothes
(see list below).
We

will
strive
to provide apparel with a good combine of classical design and fashion
character
.
The source providers will be from mainland China, and w
e will be
purchasing
clothes directly from local
manufacturers

and

wholesalers, and

in
a varie
ty

style
s

and
colors.
Apa
rt from
apparel

which will account the

greatest
percentage of
our business, we

will
also manage clothing
accessories
,
including

hats
, scarf and waistband.



Product regular adjustment
will
base

on

customer

feedback,

suggestions, and
sales reports
, in orde
r to build a constantly popular selection.

6



3.1


Product Description

PLUS LiFe

will provide
clients with wide types

of
clothes

that fall within our
mission statement. Our
goal

is to
establish

a selection
which caters for plus
-
sizers
’ demand, and most importantly, delivering specialised fashionable
design to our clients.

Some of the
products

we will carry are listed below:

Products

Description

Dress

Evening dress/Casual

Shorts

Knee Length/Short/Denim

Shirts

Mini/Pencil/Mid Calf/Knee
Length/Long

Long Pants/ Jeans

Skinny/ Straight

Tops

Blouses/Casual/Tee Long
Sleeve/Tee Short
Sleeve/Cardigans

Hats

A variety of styles and colors

Scarf

A variety of styles and colors

Waistband

A variety of styles and
colors


3.2

Competitive Comparison

Plus Li
F
e

has a number of advantages that will allow

us to build our brand
identity

and a loyal customer base
.




We will be
among the list of the
first

few

online shopping providers for
plus
-
sizers in Singapore
.



The
PLUS LiFe membership

scheme which includes flexible discount,
incentive gift, etc.,
will
be built to cultivate customer loyalty.

7




We will
function as
a platform for local designers to showcase their
designs
.



We will also release the latest fashion information and dressing tips to our
clients.



We will maintain a detailed record on each customer
, logging addresses,
their purchases, size

for customer follow
-
up and in
-
house promotional
purposes.

3.3

Sales Lite
rature

PLUS LiFe

will
employ

a
series of

advertising and sales program
to enhance
Web traffic,

t
hus

increasing brand identity.



2,0
00
to 3,000 delicate hand fan
with

PLUS LiFe

logo and brief
introduction
will be distributed througho
ut major MRT and bus exchange in
Singapore.



Exhibition boards in 3 to 5 main MRT stations will be rent to advertise our
Plus LiFe business.



PLUS LiFe design competition will be promoted around

Cavalry Italian
Design School, Raffles Design Institute and
other renowned design
schools in Singapore, to attract attention from these future fashion
designers
.



Membership scheme will entitle

the customer to a
certain amount of
discount on the
sixth

purchase after
five

purchases.

3.4

Sourcing

Our clothing source

will mainly be acquired from South China, considering the
relatively low production cost and the diversified product types there.



We will hire a local based in Guang Dong province in China, as Guang
Dong is regarded as “the world factory” and has the lowe
st price
comparing with other parts of China. This person will be in charge of
routine contacts issues with the local manufacturers and other suppliers
for us.

8




Most of our products will be purchased directly from the
manufacturers

to
make sure a competiti
ve price. And for some products which may be
difficult to buy from the factory, we will contact with

regional
wholesalers

and
try to build a long partnership. W
e will place our monthly orders with
them and review

new products

regularly
.



For
the purchased
products,

we will work directly with the manufacturer
and sales representatives to
utilize product catalogs and
tag PLUS LiFe
brand
.




We will also work to solidify our relationships with
the

vendors so that we
may achieve decreased cost of goods.




To promote the original works from Singapore local designers, some well
design standing out from the PLUS LiFe design competition will be put into
production line, to gradually form our unique collection.

Some of the major wholesale clothing centres in Gua
ng Dong Province are
listed below:

The
Baima Clothing

Center is
one of
the largest
clothing
wholesale
rs in
Guang Dong Province, which was founded in 1991.

It began the apparel
business in 1993. Baima
ha
s

unite
d

regional wholesalers under one roof
,
more than 2,000 manufactures from Pearl river delta region and Yangtze river
delta are located here. Currently, its market has crossed five continents
including North Europe, Middle East, Southeast Asia, North Africa and South
America, and the average an
nual deal values CNY3 billon
(
http://www.baima.com/).


The
Guang Dong clothing Wholesale Network is one of the earliest entrants in
this industry. It mainly operates women apparel with Japanese and South
Korean Design. From 2003, it focused its business o
n online wholesale. The
product update frequency of it is high, and for each week, new design will
coming into its sale collection. This will benefit our selection variety

(
http://www.cicicam.com/
).


W
e believe
we can

gain

a
n

edge through these
marketing
programs and
strategic alliances purchase
.

9


3.
5


Future Products

We are planning to launch men’s collection in the fourth year, which will
I
nclude tops, pants, suits etc., to
achieve and exceed our sales and
profitability goals
.

Besides, we will gradually
add local student designers’ work

to

the product line
to create

our

own
personal

in
-
house label
.

And products
will

also be
expand
ed according to customers’ suggestions and feedback.



4

Market Analysis Summar
y

The primary target customer of Plus Li
F
e

will be
plus
-
size women in
Singapore, and then in the following years, as male’s collection be added, our
target will incorporate men. Meanwhile, the market region will expand into
Malaysia, Indonesia and even other ASEAN countries, to increase our

custome
r base

if the prospect will be good
.

4.1


Market Segmentation

Plus
-
Size Women (age 18
-
25): This group is the youngest part in our
customer pool. It will be constituted mainly by college students. The latest
trends from the fashion industry will regularly be practising into this stylish
plus
-
size line, considering the
ir strong desire to follow the fashion.

Plus
-
Size Women (age 26
-
35): This

community

of women probably have
entered into the career for several years, so this product line will concentrate
on office dress, since plus size formal wear could hardly be found
in the
current market.

Plus
-
Size Women (age 36
-
45): As women in this age group are very likely to
gain weight and become a plus
-
sizer, this group will be our primary market
focus. Also considering their relatively larger purchasing power, comparing to
th
e former two groups, this collection line will carry a combination of smart
casual and formal office dress.

Because Plus Li
F
e

offers a variety of
well
-
designed
apparel

and

clothing
accessories
, along with plus size lifestyle information in our website,

we

think
that we will
be able to create a

recognized brand in the near future.

10





4.2

Target Market Segment Strategy

The goal of Plus Li
F
e

is to serve the
plus
-
size

community

that have difficulty
finding clothes
suitable for them
.
Currently, plus
-
size apparel is not the main
concern for most designers and manufacturers, which lead to this is still an
under
-
tapped market area.

4.2.1

Market Needs

T

T
here are several important needs in the
plus
-
size

wear business that are
being either underserved or not met at all. Plus Li
F
e

plans to meet and
service those needs.



Generally, t
h
ere

is a size segment miss
ing in most brands, most of them are
seldom to
provide a large assortment of sizes to
accommodate

t
he

various
body shapes
. Consequently, it is rather difficult for plus
-
sizers to shop their
clothes. And many plus
-
sizers have to approach to tailors for fitted clothes.



Even being provided, most p
lus
size products in the market are lacking of
fashion desig
n.



Plus
-
size customer profile has been rarely concerned, and little amount of
specialised deign for this group of people.

Our f
ocus and attention will be
concentrated to address all these needs, and
explore this potential market.



A
ge 36
-
45


A
ge

26
-
35


A
ge 18
-
25

Market

Segmentation

11


4.2.2

Market Trends

Today, many people like shopping online for its convenience, according to a
survey (Paypal), Singaporean had spent S$1.1 billion for online shopping, of
this a large proportion goes to fashion. And woman is the majority of fashion
buyers
,

“w
ithin a decade,

the companies that do the best job of marketing to
women will dominate every significant product and service category"
(
Faith
Popcorn
), which has well reflect the bloom trend of this business sector.

Apart from providing our clients with clothing,
Plus L
ife

also
intends to use its
website

to heighten the awareness of the
healthy living to the clients and
promote the beauty of plus life.




4.2.
3

I
ndustry Analysis

Economic, Cultural and Environmental Conditions

H
oliday shopping, competitor marketing,
the

economy and the strength of the
dollar can all affect the performance of
PLUS LiFe
. On a macro
-
economic
level, consumer confidence, interest rates and inflation rates all have an
effect. Rising unemployment, political concerns and deflation also pose risk
s.

Positive Factors:

Clothing Industry

Impact on
PLUS
LiFe

Very low interest rates

Cost of financing
low

Easy availability of consumer credit

Higher ticket sizes
on credit card
purchases

Relatively low unemployment, and very
low inflation

Stable
employees
& businesses

The appreciation of Singapore Dollar
against RMB

Encourage import

12



Negative Factors:

Clothing Industry

Impact on
PLUS
LiFe

Weakening consumer confidence (
still
influenced

by global
recession

&
uncertainty)

Decreased sales

Slowly increasing unemployment

Value and sale
shopping

The appreciation of RMB


Discourage export


4.3

Main Competitors

Plus Life

has
one main

on
-
line
competitor

in Singapore
.

Big And Beautiful

(B.A.B.) is a
renowned
retailer specialised

in operating
plus
-
size women dress, which started in 2008

in Singapore
.
I
ts physical shop
located in New
B
ridge Road
,

and to meet its increasing customer demand, it
has launched online access. Its products comprise clothes, shoes and
accessories which ran
ge from a variety of types.

And a
part from selling
clothes,
B.A.B

also feature and share interesting articles,
like
where to shop,
where to have fun, and how to, etc.
to make the site

informative.


In 2010, B.A.B

held the campaign “Celebrating Curves”
whic
h
is a 6 months
march, filled with events, workshops, fashion shows, photo exhibitions to
promote the beauty of plus
-
size life.
And i
n 2011, it has created a calendar
which features curvaceous ladies artistically nude
also
to declare beauty

of
plus size st
yle
.
Its marketing strategy also includes funding
Singapore’s
inaugural plus size beauty pageant
which called
“Miss & Ms Amazing Beauty
Pageant”
.




13


5

Strategy and Implementation Summary

For
an on
-
line business, having a good strategy and implementation is crucial
to its success. Plus Life’s business
is
to be the on
-
line store for plus sizers
which is a relatively unserved and undertapped market. Our vision is to
steadily increase our mark
et share and expand overseas with a focus on local
designer wear.

5.1

Competitive Edge



Our on
-
line store will

be the on
-
line plus size store that
offer
s

the
convenience of hassle
-
free shopping in the latest fashion styles from our
local designers



The Plus

Life membership scheme will entit
le members to a loyalty of 15%
on the sixth purchase



Plus size will keep a personal record of your purchase and will be able to
make recommendations on your next visit

5.2

Marketing Strategy

Plus

Life
’s will be marketed as the
one
-
stop website for plus
-
sizers for trendy
designer clothing. It will focus on the uniqueness of its collection, which is
based on local
designers.
For plus sizers,

the convenience of shopping
on
-
line for something that fits

them

easily
, in latest trends, is no longer a dream, it
is a reality.

5.2.1

Pricing Strategy


The pricing strategy in Plus Size is



(Can’t really articulate what is our pricing strategy??)







14


5.2.2

Promotion Strategy

There will be an initial soft launch of the website in May,
followed

by a major
launch a month later in
-
conjunction with the Great Singapore Sale.



A fashion show showcasing the “launch series” for plus sizes on the
catwalk at the Singapore Fashion Week.



Ms Haryani, a famous Singapore Celebrity will don on

our

classic
collection. She has also agreed to be our spokesperson and model for our
line of plus
s
ize apparel.

5.2.3

Distribution Strategy

The on
-
line web
-
site will be the “shop front” for our on
-
line
customers. The
catalogue of the latest designs will be easily availab
le through the on
-
line
store for ordering at customer’s convenience. Customer’s order will be
delivered within 3 working days. We have also spoke
n to the chain of
seven
-
eleven

sto
res in Singapore, who has agreed to be our point of
distribution, thus customers can also have the option of picking up their
products at these convenient pick
-
up points in the neighbourhood
.

5.2.4

Marketing Programmes


Our marketing programmes
include
hav
ing:



Sponsorship of Ms Haryani’s cloths for her TV show series, thus creating
awareness of our unique collection



Quarterly fashion shows at the Art’s house, showing casing our local
designers works using plus size models.



Participating in the annual
“Singapore Fashion Week”



Reaching out t
o our customers through social media platforms

such as
Facebook, Forums



Offering one
-
time discount coupons to generate traffic to website



Local fashion competitions to promote ourselves as a platform for local
designe
rs to showcase their products

5.2.5

Position
ing

Statement

Plus Life apparels showcase
s

the beauty of the full
-
bodied women in the
latest fashion

styles
, enhancing a woman’s femininity.


15


5.3

Sales Strategy

A simple
in
-
house CRM system
has been designed
to
track each purchase of
our customer. Based on this
,

a profile of the customer’s interest and
style is
captured

and maintained as our database. The merchandiser is then able to
retrieve and
analyse the information and focus on the customer’s
requirements
and the popular buys.

For our first
-
time customers, they will be offered a 7
-
day return/exchange
policy just like that of a physical store, allowing them to try our products with
ease of mind. For our loyal customers who already are familiar with our
qua
lity and design, they are offered the membership programme on their sixth
purchase. This sixth purchase policy can be shortened to only three
purchases if they introduce another customer who buys from our on
-
line store.

5.3.1

Sales Forecast

The forecasted sales for Plus Life is highlighted in the chart below. We

expect sales to take off ___ after launching our on
-
line store in May.

Growth is expected to increase by __________


(Anlaysis from Chart)


6

Web Plan Summary

As a start up in the e
-
commerce market, Plus Life wants to maximize the
investment on technology. We don’t want to spend too much on technology to
sell our product, and the important thing is it
needs

to be
scalable
, so not only
doesn’t need a big initial
investment, but also
align with the growth projection
of Plus Life.

To achieve the web technology objective, we decided to go with an open
source solution, and finding a web hosting partner to host it outside. We
choose Magento as our web site solution, an
d we host in on Magento Go.

Magento is an open source ecommerce web application launched on March
31, 2008. It was created by Varien, building on components of the Zend
Framework.

16


Magento
G
o is a turnkey service for building and running an online store. No

hardware, software or coding required.

Magento Go offers several different
hosting plans, so it will suit our needs from a start up until our projected
growth for the next 5 years.

Using this technology & hosting services, there will be no initial investm
ent in
hardware, software, and no need to hire a programmer.


7

Management Summary

As Plus Size is a start
-
up com
pany, the initial composition of the company will
be small. With the limited resources, all works will be delegated amongst the
five partners according to their experiences and expertise.


7.1

The profile of each of the partners is indicated below:

(
have put some profile in for you guys... you can take a look and improve or
amend)

Alexander Bernard Halim

Mr Halim

is
a
we
b
-
designer for the past 7 years. He has extensive training in
computer graphic packages and is well versed in programming and web
de
velopment languages and technologies.


He has helped created websites
for on
-
line retailing for the past 3 y
ears.

Ho
L
ee Wen

Ms Ho i
s a successful financial controller

who has served on several planning
and policy
-
making committees. Her experience is in
directing and co
-
ordinating financial planning and budget management. Her

past portfolio also
includes
preparation of financial outlooks and forecasts, establishing lo
ng and
short
-
term budget policies and procedures.


Lee Ping Verena

Ms Lee has been directing and managing her own business for the last five
years.
Her ability to strategise effectively to chart business growth is the
driving force behind her successful business.


So Jami Florence

17


Ms So was the regional manager of a award
-
winning retail clothes chain in
Singapore. She brings with her
experience in
corporate and retail marketing
in the local context. She was involved in developing and maintaining highly
successful marketing campaigns that translated to steep increases in sale.


Zhang Liming

Ms Zhang
is a knowledgeable top notch designer with a local

boutique for the
last three years. She also has vast experience in merchandising and stock
management. Her
experience and knowledge in China’s clothing
manufacturing and production industry proves to be a vital asset for Plus Life.


7
.
2

Organisation
structure

and Management Team

With only a start
-
up of five personnel, the organisation structure will be simple.
Verena L
ee will act as General Manager and will be responsible for the overall
operational aspect of the company. Lee Wen will manage and m
ake
decisions on financial matters at PLUS Life.
Jami will be responsible for all
administrative, marketing and promotional functions. Liming will handle the
inventory and supplies, ensuring sufficient stocks and taking care of our
suppliers and manufacturers in China. Alexander, our web expert wil
l take
care or the day
-
to
-
day management
and design
of the website.


7
.
3

Personnel Plan


Year 1

Year 2

Year 3

Alexander Bernard Halim




Ho Lee Wen




Verena Lee Ping




So Jami Florence




Zhang Liming




Total Payroll





18



How much will we be paid

??


8

Financial Plan