Business Description Definition of the Market Description Business Plan

Excerpt from Business Plan :

Business Description

Definition of the Market

Description of the Products

Organization and Management Descriptions

Marketing Strategies

Financial Management

This paper presents business plan for a new leather garment manufacturing and retailing business. The business is being set up with an initial capital outlay of $53 million. The paper starts with a brief description of the business; its target market and product offerings, and then proceeds by proposing organizational and management strategies, marketing strategies, and financial management strategies.

According to the proposed business plan, the company will have a centralized organizational structure and will primarily focus on developing its brand image in the market. The marketing strategies on different mediums will be designed in order to attract potential customers. The company will also take the services of business development firms and distribution companies for its operations. The major expenditures which the company will have to incur in the initial phase include; purchase of heavy raw material stock, processing and manufacturing plant, marketing, distribution, salaries and administrative, e-commerce setup, and legal requirements.

1. Business Description: Leather Garments Manufacturing and Retailing

The proposed business will be set up in California, United States and will serve the high and upper middle income groups of the society. The business will be established with a leather garment manufacturing and processing unit and a number of retail outlets in the most potential areas in the city. The projected initial capital outlay for this business is $53 million. The new company will employ more than 200 people at its manufacturing and production units and 50-75 persons at its retail outlets. The company will offer sports, formal, casual, and occasional leather garments.

2. Definition of the Market

The proposed business will mainly target the male consumers with its top quality and trendy leather garments. The retail outlets will be opened in the most populous areas of the city and will direct compete with the major local and international garment brands operating in those areas. The age group of target consumers will range between 20-45 years. In addition to the main product lines, the company will also target kids and teens with a limited range of leather products.

Since the costs of manufacturing and processing are higher for leather garments as compared to other clothing products, the prices of these products will be significantly higher. The company will also expend a huge amount on the quality management and marketing campaigns for its products. Therefore, it will charge a high price for its leather garment products -- presenting itself as a premium brand made for the upper middle and high income male consumers only. Moreover, the target market will constitute trendy and fashion conscious consumers only. In the United States, the new business will face direct competition from Diesel, Giorgio Armani, Gucci, Ralph Lauren, Harley Davidson, Calvin Klein, Burberry Group, SARAR, True Religion, Abercrombie & Fitch, etc.

3. Description of the Products

The major products of the company will include casual and biker leather jackets, leather coats, shoes, wallets, bags, and gloves. The company will purchase the top quality leather and other material to manufacture the highest quality of leather products for its consumers. The top quality leather will be imported from Australia and processed at the company's own processing plants. In order to build a strong brand image, the company will have to maintain the quality standards as well as meet the expectations of its target consumers by manufacturing durable, comfortable, and trendy leather garments.

4. Organization and Management Descriptions

Organizational Structure and Operations:

Being a private limited company, the majority of the stocks will be possessed by the owners and their relatives. They will enjoy complete control and decisional powers for all types of corporate, business, and functional level operations. The company will have a centralized organizational structure in which all the retail outlets,…

Sources Used in Document:

References

Blythe, J., & Megicks, P. (2010). Marketing Planning: Strategy, Environment and Context, 3rd Edition. U.K: Prentice Hall.

Kotler, P. (2010). Principles of Marketing: A South Asian Perspective, 13th Edition. India: Pearson Education.

Kurtz, D.L., MacKenzie, H.F., & Snow, K. (2010). Contemporary Marketing, 2nd Edition. Toronto: Nelson Education.

Cite This Business Plan:

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