40723980 retail business plan project

8/8/2019 40723980 Retail Business Plan Project

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Overview

Core Value Proposition

Eco friendly bags that make a statement

Target customer definition

± Age between 18-45

± SEC B & C

± Female



Format & Location Strategy

Format

± Mixed format

± Display area of 300 sq. ft, storage area of 200 sq. ft.

± Store layout/ Fit out (Basis some online research)

± Well lit, aesthetically designed and clutter free interiors provide a

great ambience for customers

Location

± Ideal Location KK Nagar

± Rentals Rs. 30/sq. Ft. and total per month

Rs 15,000 ± Residential area

± Located near PSBB School

± Not many shops that cater to the need of customers in that area.

PSBB School

Get Bagged

KK Nagar



Assortment Strategy

Objective

± Major product groups

BackpacksHandbags (leather)

Canvas Bags

Clutches

String Pouches

± Estimated sales mix

± Estimated margin mix



Strategy/ Plan for

± Inventory levels

Total stock worth Rs.1,35,000/-

Clutches Rs.30,000/-

Bag packs- Rs.16,000/-

» Mark downs/ Clearances and impact on overall margins.

» Hold for1st two years, put for sale on 30% off.



Small leather products are sold in a variety of different types of shops. Department stores arestill quite important outlets, but for many items specialist shops are the most important.Most ladies handbags and travel goods are sold in shops specialised in these products andsports bags and rucksacks are sold in sports goods shops.

Department store chains and chains of specialist shops do some of their purchases directly

from abroad, but in general most of the goods are distributed throughimporters/wholesalers. A few of the importers are manufacturers who supplement theirproduct range with imports.

Commercial agents are not common in this trade. It is possible to sell directly to theimporting retailers who visit exporters on their purchasing trips, but to develop a sustainedexport business requires frequent visits to Sweden, probably resulting in rather small orderseach time. For the new entrant to the Swedish market it would be advisable to find animporter with whom to work.

An exporter should not forget the advertising and promotional gift market. There arespecialised importer/wholesalers in this market the exporter could contact. Many smallleather items are popular give-aways as advertising gifts.

The necessity of getting feedback about styling and quality preferences from the Swedishmarket also requires a steady contact in Sweden. Many importers make their own designswhich they ask exporters to produce on contract, thus making certain that the styling,accessories, linings etc. are right for Sweden.

A group of Swedish leather goods importers arrange a trade fair twice a year , spring and

autumn, which is called Bag Fair. Usually there are about 40 exhibitors at this fair to whichSwedish retailers are invited.Only the members of the Bag Fair Economic Association canexhibit at the Bag Fair and there is a waiting list to become a member, so in practice it is notopen to new foreign exporters.

Swedish importers and big retailers go to the important international trade fairs in Milan,Offenbach and Paris in Europe, and to trade fairs in the Far East.



Landed cost to importer/wholesaler100

Price to retailer200 (100% mark-up)

Price to consumer530 (165% mark-up incl. VAT) Of whichvalue added tax 20% of 530106

Retailer's margin or gross profit 330 less 106 =224 Products not kept in stock, single purchase seasonal items,

fashion products:

Landed cost to importer/wholesaler100

Price to retailer190 (90% mark-up)

Price to consumer522 (175% mark-up incl. VAT)

Of which value added tax of 522104 Retailers margin or grossprofit 322 less 104 =218



Pricing & Promotion

Pricing Strategy

± Reason???

±Ranges from Rs.500 2500/-

Promotion strategy

± Flyers distribution

± Stalls in Colleges and CorporateOffices

± Sales exhibition

McKinsey



SCM and Logistics

SCM Strategy

± Sourcing plan (Delhi, Jaipur, Mumbai and Bangkok)

± Distribution plan

Costs ± approx Rs. 6,000/- for domestic travel

± Approx Rs. 45,000/- for international travel

± Logistics details By Air..

± Alternative options For standardized bags, have contact with a supplier

For customized/ creative fancy bags an individual has to

travel.



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References classifieds.sulekha.com/.../k-k-nagar / rental s/.../adlistings.aspx www .pathcity.in/realestate-properties-Chennai-in-KK -N agar .htm

chennai.locanto.in/For-Rent/W/

www .99acres.com Brow se Property in Chennai South

http://www.bagsonline.in/cotton_draw_string_bags__pouch

www.yatra.com

40723980 retail business plan project

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