BUSINESS PLAN
ecommerce platform FOR PURCHASE OF TREND BASED GRAPHIC APPARELS AND MERCHANDISE
RACHIT ARORA
EXECUTIVE SUMMARY
The Ecommerce Platform (henceforth referred to as Ecom) is a start-up manufacturer of a youth clothing and merchandise line targeted at teenagers between the ages of 15 and 25. Ecom develops its own proprietary clothing and merchandise line with custom made designs. These designs are based on topics that are currently trending and popular with the youth, such as a popular TV Show or Movie. Ecom is a platform targeted towards both Male and Female customers. Ecom intends to market its line as an alternative to existing clothing lines, and differentiate itself by unique designs, exclusiveness, and high brand awareness with a reasonable and affordable price tag. The key message associated with the Ecom line is trendy, versatile, affordable yet high quality clothing. The company’s promotional plan is diverse and includes a range of marketing techniques focused on Social Media and Online Marketing.
SALES AND PROFIT PREDICTIONS FOR NEXT THREE YEARS
Sales 9000000 Gross Profit
The Research paper on Course Syllabi- History of Graphic Design
Course Description History of Graphic Design is a critical contextual research and survey study of the intents, influences, practices, and artifacts of graphic design. The course will be structured on readings, research, and visual presentations on subjects of designer activities throughout history with an emphasis on the broader historical context of the planning, production, form, distribution, ...
6750000
4500000
2250000
0
2015
2016
2017
2015 : Per Day Sales : 20 Pieces at Rs.400/piece Per Month Sales : 600 Pieces at Rs.400/piece Full 2015 Sales : 7,200 Pieces at Rs.400/piece Total Sales in Rupees: 28,80,000 Profit Margins for 2015: 25% Total Gross Profits Expected : 7,20,000 2016 : Per Day Sales : 30 Pieces at Rs.499/piece Per Month Sales : 900 Pieces at Rs.499/piece Full 2015 Sales : 10,800 Pieces at Rs.499/piece Total Sales in Rupees: 53,89,200 Profit Margins for 2015: 30% Total Gross Profits Expected : 16,16,760 2017 : Per Day Sales : 50 Pieces at Rs.499/piece Per Month Sales : 1500 Pieces at Rs.499/piece Full 2015 Sales : 18,000 Pieces at Rs.499/piece Total Sales in Rupees: 89,82,000 Profit Margins for 2015: 40% Total Gross Profits Expected : 35,93,800
COMPANY SUMMARY
MISSION
The mission of the company is to provide an ecommerce platform to showcase a line of trendy, youth friendly apparels and merchandise for consumers, based on style, quality and price.
STRATEGY
Ecom’s strategy is to aggressively develop and market a full range collection of trend based merchandise to the consumers. The company intends to market its line as an alternative to existing clothing lines and differentiate itself through it’s marketing strategies, exclusiveness, and brand awareness. Ecom intends to build on its core portfolio of products and overcome any obstacles by using inputs from specialists from the clothing industry.
The company’s goal in the next year is to make an overwhelming impact on the ecommerce based fashion industry and create a large consumer demand for the product. The company’s goal in the next 2-5 years is to venture into not only T-shirts, but other Apparels such as Accessories, Shows, Posters, etc as well. It plans to also license its designs to ensure its uniqueness in the online market. According to a study by Accel Partners, online shopping of physical goods in India will grow to US$ 8.5 billion in 2016 and the number of online shoppers in India will be more than double to 40 million. The internet user base is predicted to increase to 300 million by 2015. This ensures exponential growth over the next few years in the ecommerce platform leading to higher sales and higher pending capability of the consumer.
The Essay on Describe how marketing techniques are used to market products in two organisations
Describe how marketing techniques are used to market products in two organisations In this task I will describe how marketing techniques are used to market products in two different organisations in this case NHS and Nike. NHS The NHS was found by Aneurin Bevan on the 5th of July 1948 when he opened the Park hospital in Manchester; his ambition was to break a high standard of healthcare to ...
PRODUCTS
Ecom products will be priced at the very reasonably to reflect the youth connected brand image and affordable price tag associated with the brand. The company will use good quality materials such as 120 GSM Cotton Shirts and Jersey and High Hauge Denim Materials to give a High Quality Product to our Customers. When a mark up is placed on Ecom products, customers are willing to pay a reasonable price because of the perceived value and quality guarantee that comes with all products. The Ecom clothing line is targeted at the youth between the ages of 15-25.
MARKET ANALYSIS SUMMARY
MARKET DESCRIPTION Compared to the more mature and far bigger online retail markets in the US and Europe, India’s ecommerce sales are relatively small. They are estimated at about $8.6 billion by market research firms such as Forrester Research Inc. and some Indian e-commerce venture capital firms. But the Indian direct-to-consumer e-commerce market is likely to double in size to reach $15 billion by 2017, says Avnish Bajaj, co-founder and director of Matrix Partners India, one of India’s most established ecommerce venture capital firms.
FUTURE MARKET PREDICTIONS
Indian e-commerce and online shopping are set to witness greater heights in the coming years, not just owing to the increasing internet population, but also due to the changing dynamics of the supporting ecosystem. The key players in the market are undertaking rigorous efforts to further enhance the areas like payment structure and logistics. Moreover, the Indian consumer’s perception of online shopping has experienced a substantial change and for the good. In view of these developments, both the investors and the aspiring e-commerce players have been granted numerous opportunities, who were thus far limiting themselves to the sidelines. Today, they are all taking a keen interest in the country’s e-commerce market.
DISTRIBUTION STRATEGY
Ecom plans to use a direct online sales force, and the Internet to reach its markets. These channels are most appropriate because of time to market, reduced capital requirements, and fast access to established distribution channels. The manufacture of the clothing line will take place in Tirupur, Tamil Nadu with reputed and well equipped Manufacturers. Upon arrival, the clothing will be placed in a consolidated warehouse in Chennai. Initially, the company plans to use a consolidated warehouse before acquiring a warehouse of its own. From thereon, Econ will have to tie up with existing fast and reliable Shipping and Courier Companies like DHL, EcomExpress, FirstFlight, etc for final deliver of the products.
The Essay on Ansoff's Product Market Grid
The Ansoff product-market matrix helps to understand and assess marketing or business development strategy. Any business, or part of a business can choose which strategy to employ, or which mix of strategic options to use. This is one simple way of looking at strategic development options: Each of these strategic options holds different opportunities and downsides for different organizations, so ...
COMPETITION & BUYING PATTERNS
Ecom faces competition from a lot of existing ecommerce based platforms such as Red Wolf, Shark Tees, etc. But Ecom plans to differentiate itself due to its uniqueness and creativity and be able to tap into and grab its share in the huge ecommerce fashion market. The purchase of our products shall be on a weekly basis and we shall receive stocks every 7 Days from our Manufacturer and the stocks shall be replenished based on the demand, popularity and scarcity of the various product variants. The products shall be branded and tagged as a Proprietary Brand of the Ecom Company.
MARKETING STRATEGY
SEARCH ENGINE OPTIMISATION
Ecom shall use Google Search Engine Optimisation to drive a huge amount of potential traffic to our site and also get our website to the top of Google Search Results. This has been an effective and proven method by many Ecommerce websites to rapidly increase sales and brand awareness.
SOCIAL MEDIA MARKETING
Ecom shall use various tools to promote it’s website and products on the various Social Media platforms. The platforms which we are going to mainly aim for are Facebook, Twitter, LinkedIn, Pinterest and Instagram. We shall be as active as possible and increase exposure through social referral programs, online contests, immediate online support and exclusive follower discounts.
CAMPUS PROMOTIONS
Ecom shall have a marketing team and volunteers who will help promote our products and website in various college and school campuses within and outside the city.
YOUTH BASED EXHIBITION PARTICIPATION
Ecom products will be marketed in various youth based exhibitions such as Comic Con Bangalore, Comic Con Hyderabad, etc. Additionally, Ecom shall also sponsor various college fests to increase the brand awareness and turnovers.
The Review on Impact of Product Price and Brand Name on Quality Perception
In ordinary usage, price is the quantity of payment or compensation given by one party to another in return for goods or services. In modern economies, prices are generally expressed in units of some form of currency (For commodities, they are expressed as currency per unit weight of the commodity, e.g. Tshs per kilogram.) Although prices could be quoted as quantities of other goods or services ...
IMPLEMENTATION STRATEGY
Creation of Designs : 2-3 Weeks Getting Samples and Sizings : 1 Month Creation of Website Including Backend Management : 1 Month Payment Gateway Authorisation : 21 Days Registration of Brand and Logo : 3 Weeks Signing of Partnership Contract : 1 Week Setting up of Distribution Network : 2 Weeks TOTAL EXPECTED TIME : 3 TO 3.5 MONTHS
INITIAL STARTUP EXPENDITURES
SETTING UP OF WEBSITE PAYMENT GATEWAY AND HOSTING CHARGES FREE* 6000 8000 FREE*
SAMPLING CHARGES (10 Designs in 3 Colours) SEO AND SOCIAL MEDIA MARKETING CHARGES
ORDERING FIRST BATCH OF T-SHIRTS (10 Designs, 100 Pieces at Rs.200/piece approx.) 50% Advance, 50% On Delivery WAREHOUSING COSTS (Per Month) PACKAGING COSTS (Per Consignment) MISC. EXPENSES
200000 3500
4000 3000 2,24,500
TOTAL SETUP COSTS
Ecom is going to sell each piece at a price of Rs.450 including Shipping. Our shipping cost come to about Rs.35 if it’s a local courier and Rs.50 if its outstation. So if we sell 950 T-shirts at Rs.450/piece, we get a GROSS PROFIT OF 4,27,500.
Our Expenses are as Follows: SHIPPING (Avg. Rs.40/piece) SALES TAX (@5.5%) 38,000 21,395 3,68,105
EFFECTIVE NET PROFIT
*The said costs are FREE because the proprietor (Rachit Arora) shall build the website, and SEO Management Systems on his own, therefore external costs of website development, management and Search Engine Optimisation is excluded)
