MOS- BUSINESS PLAN

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BUSINESS PLAN OF MOS, THOSE LOOKING FOR NEW BUSINESS IN SERVICES








NYK Clothing Line
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MOS Business Plan



















NYK CLOTHING LINE

Business Plan

1. Introduction to Plan
NYK Clothing will be a startup venture with the following USP’s giving it a unique positioning in the market:
1) It has a ready market of over 15 Million people in India for its products.

2) Monopoly in the products it will sell. No other player in India can sell the products being sold by NYK Clothing.


3) Products will be sold at a price point of between Rs. 400 and Rs. 750 making it a mass market product.

4) The company does not intend to spend money and time to build a brand since a huge brand pull already exists for the products it plans to sell in the Indian markets.

5) There is already a great demand for huge products with branded merchandise logos on the garment.

6) For example –Tantra and other mass market players sell exclusively to particular segment of the target market.

About NYK Clothing

NYK Clothing will offer a fashionable range of Licensed Character based Apparel and nightwear for men, women and children.

The company will be taking the licensed route for the foray and the collection will primarily include licensed merchandise.

The company has already planned of securing licensing rights for the following World Famous Characters:

















Barbie Disney’s Winnie the Pooh
With more than US$ 3 Billion Forbes Magazine ranks Winnie the
at retail, Barbie is the #1 Girls Pooh as the second most valuable
Brand Worldwide. Character with US$ 5.6 Billion in
Global Retail Sales.






Fido Dido
Popularly known as the “King of Cool”, Fido Dido is probably the only character in the World to have gained worldwide popularity even though he has no TV Show or Feature Film on him.




The collection will include the following:













The following licenses are planned to be secured by the organisation:
Barbie --- Nightwear
Winnie the Pooh Apparel and Nightwear for Teens and Adults
Garfield Apparel and Nightwear for all ages 2 years up
Fido Dido Nightwear





2. Mission & Strategies

Leveraging the Power of Licensing to market products…

In today’s climate of increasingly sophisticated marketing methods, many companies look to licensing to reinforce brand image, generate recognition and build brand equity. Licensing allows companies to tie their products to already hot properties and that can mean a built-in audience for a product that’s new to the market.

Why License?

Being granted a popular, sought after license can help a new company establish itself within its industry sector and it can help it acquire expanded distribution. New apparel companies normally face difficulty in getting shelf space at already crowded Retail stores but find a welcome mat at a retailer’s door after receiving the rights to a popular licensed property.
Characters for younger kids tend to work a lot like celebrities do for older people, The appeal of characters is very strong among children and always has been. Aligning a product with the most desirable and sought after characters can boost sales substantially.
2.1. Vision
To be a leader in production and distribution of licensed visual merchandise garments & night wear.
2.2. Mission
To create a likeable & readily acceptable mass market product across all segments.
2.3. Values
High Quality Branded Products at acceptable cost to the customers through “Retainment-Retail and Entertainment”
2.4. Objectives
To develop a market for the licensed visual merchandise in Indian sub continent by creating high value quality garments for various types of customers.
2.5. SWOTs

Internal External
Strengths:
• Innovative Product
• High Demand Already existing in western countries for such products.
Opportunities:
• First Mover Advantage in such category
• Low Cost Manufacturing Facility
Weaknesses:
• Dependence on Licensing Parent Company for New Patterns
• Lack of Theme Parks in Country to associate the characters with
Threats:
• Mass production of similar products at low price
• Slow Growth Rate


2.6. Goals/Targets

To achieve a profit margin of Rs 150 Crores at the end of first five years for the organization with 100 stores across the country and to achieve a long term goal of being the pioneers in the such a category of garments.
3. Present Status
3.1. Background

The Retail Industry in India

Retail is India’s largest industry, accounting for over 10 per cent of the country’s GDP and around eight per cent of the employment. Retail industry in India is at the crossroads. It has emerged as one of the most dynamic and fast paced industries with several players entering the market. The future is promising; the market is growing, government policies are becoming more favourable and emerging technologies are facilitating operations.

Retailing in India is gradually inching its way toward becoming the next boom industry. The whole concept of shopping has altered in terms of format and consumer buying behavior, ushering in a revolution in shopping in India. Modern retail has entered India as seen in sprawling shopping centres, multi-storeyed malls and huge complexes offer shopping, entertainment and food all under one roof. The Indian retailing sector is at an inflexion point where the growth of organized retailing and growth in the consumption by the Indian population is going to take a higher growth trajectory. The Indian population is witnessing a significant change in its demographics. A large young working population with median age of 24 years, nuclear families in urban areas, along with increasing working-women population and emerging opportunities in the services sector are going to be the key growth drivers of the organized retail sector in India.

India's vast middle class and its almost untapped retail industry are key attractions for players wanting to enter this market. Driven by changing lifestyles, strong income growth and favourable demographic patterns, Indian retail is expected to grow 25 per cent annually. Modern retail in India could be worth US$ 175-200 billion by 2016.
According to a report by AT Kearney and the Confederation of Indian Industry, retail is one of India's fastest growing industries with a 3.75 per cent compounded annual growth rate and expected revenues of US$ 425 billion in 2008. Rising incomes, increasing consumerism in urban areas and an upswing in rural consumption will fuel this growth to around 7-8 per cent.
KSA-Technopak, a retail consulting and research agency, predicts that by 2010, organized retailing in India will cross the US$ 21.5-billion mark from the current size of US$ 7.5 billion.
Deutsche Bank's research report on 'Building up India' says India's burgeoning middle class will drive up nominal retail sales through 2010 by 10 per cent per annum. The country may have 600 new shopping centres by 2010.


Kids Retail
When it comes to Indian children, retailers are busy bonding and branding.
Leading the kids' retail revolution is the apparel business, which accounts for almost 80 per cent of the revenue, with kids' clothing in India following international fashion trends. According to research firm KSA Technopak, the branded segment comprises US$ 701.7 million of the total kids' apparel market-size of over US$ 3 billion. Industry experts say kids' retailing will touch annual growth of 30-35 per cent.

4. Product/Service Descriptions
4.1. General Descriptions
The product will be basically garments with key focus on garments and night wear with licensed visual merchandise on the same by use of Transfer on Heat Technology.
4.2. Key Features
Key Features of the product include:-
• High Quality Product
• Easy Care & Less Maintenance Required ( No Ironing & Dry-cleaning)
• High Usability
• 100 % Mercerized Cotton & Lycra Based Product.
4.3. Main Benefits
The products (both garments and night wear) will have a high brand value as the kids would easily related to popular characters shown on television and advertised on other media channels.
4.4. Pricing Plans
Different Pricing strategies would be followed to cut down the manufacturing cost over a period of time and to thereby increase profit margin levels.
Cost Based & Competitor Based Pricing Plans for the product.
4.5. Competitors’ Offerings
Only High End Products for Niche segment by Sony Motion Pictures & PVR Cinemas along with Archies & Hallmark available for outright purchase during the film promotion schemes.
5. Profiles of Target Markets/Distribution Plan
5.1. General Background

5.1.1. Market 1
Northern Region – New Delhi & NCR Region (Gurgaon, Noida, Faridabad).
5.1.2. Market 2
Southern Region – Bangalore
5.2. Customers/Users
Potential Market

Remember when children wore what their parents bought them? Neither do we.
A retail industry survey conducted by MarketResearch.com for the US market reports 71 per cent of mothers purchase items specifically requested by their children.

Trade sources estimate worldwide licensing at US$160 billion in 2003. Entertainment / Character licensing continues to be the largest revenue category in the industry at 43%. In the year 2006, licensed products generated nearly $12 billion in retail apparel sales in the US, according to the "Licensing Letter," an industry periodical. Virtually any mass market apparel merchandiser in the US can attest to the fact that character licensed apparel, in men's, women's and children's sizes, continues to be a primary vehicle for sales.
Presently, character-licensed merchandising accounts for only about Rs. 400 crores of overall retail sales in India. With the concept of licensed Apparel fairly new in India, we have a huge advantage as one of the first few entrants in this arena with some of the best brands in our stable. Barbie, Winnie the Pooh, Garfield and Fido Dido come under the category of “Classic” brands since they have all been around for over 25 years and will be around for a long time to come. All of them have a huge growing fan following who are waiting to buy products of these brands.

Below are some basic calculations on the Potential market for our products:

 Barbie Nightwear

Target Market 5 – 14 year old Girls
Total Population in the Age Group 5 – 14 in India: 225 Million
Approximate Female Population: 110 Million
Considering only 5% of Female Population in this Age Group are Barbie Fans we have a large market of over 5 Million Fans of Barbie who will definitely buy Barbie Nightwear.

 Winnie the Pooh Apparel and Nightwear

Target Market: 15 – 24 year old Boys and Girls
Total Population in the Age Group 15 – 24 in India: 215 Million
Considering only 2% of Boys and Girls in this Age Group are Winnie the Pooh Fans we have a large market of over 4 Million Fans of Winnie the Pooh who will definitely buy Winnie the Pooh Apparel and Nightwear.

 Garfield

Target Market: 5 – 24 year old Boys and Girls
Total Population in the Age Group 5 – 24 in India: 440 Million
Considering only 0.5% of Boys and Girls in this Age Group are Garfield Fans we have a large market of over 2 Million Fans of Garfield who will definitely buy Garfield Apparel and Nightwear.

 Fido Dido

Target Market: 15 – 24 year old Boys and Girls
Total Population in the Age Group 15 – 24 in India: 215 Million
Considering only 2% of Boys and Girls in this Age Group are Fido Dido Fans we have a large market of over 4 Million Fans of Garfield who will definitely buy Garfield Apparel and Nightwear.

As we can see from the calculations above we have a ready market of over 15 Million people in India waiting to buy Apparel and Nightwear of their favorite character. Thus a huge market demand is already available for the products we will be selling. Apart from the characters we already have a license for; we will be regularly adding new characters in our lineup. Apart from classic characters which will form the base of our business, we will also be constantly looking for characters which have a low popularity period but very high fan following during this period. For example, characters like Pokemon, Beyblade etc. were worldwide phenomenon during their peak. The Pokemon franchise has done over US$ 30 Billion in Retail sales Worldwide.

We will also be regularly adding Classic characters to our line-up. Some of the other Classic characters we can possibly add to our line-up include:

Pink Panther, TinTin, Asterix, Superman, Spiderman, Batman, Casper, Richie Rich, Snoopy, Popeye, Scooby-Doo, The Powerpuff Girls, Tom & Jerry, Bugs Bunny, Mickey Mouse and Donald Duck.






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omkarst

Omkar Toshniwal
Re: MP welcomes you gagandsaluja

Its good work dude. It as a good work with lot of of indepth analysis
 
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