This paper presents a comprehensive business plan for a new leather garment manufacturing and retailing company to be established in California with an initial capital outlay of $53 million. The plan outlines the business description, target market (male consumers aged 20–45 in upper-middle and high income brackets), and core product lines including jackets, coats, shoes, and accessories. It addresses organizational structure, environmental forces, and brand management challenges in a competitive U.S. market. Marketing strategies spanning traditional media, digital channels, and in-store displays are proposed alongside a detailed marketing budget and itemized capital expenditure breakdown.
The proposed business will be set up in California, United States, and will serve the high and upper-middle income groups of society. The business will be established with a leather garment manufacturing and processing unit and a number of retail outlets in the most commercially active areas of 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.
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. Marketing strategies across different media will be designed to attract potential customers. The company will also engage business development firms and distribution companies for its operations. The major expenditures in the initial phase include purchase of raw material stock, a processing and manufacturing plant, marketing, distribution, salaries and administrative costs, e-commerce setup, and legal requirements.
The proposed business will mainly target male consumers with top-quality and trendy leather garments. Retail outlets will be opened in the most populous areas of the city and will directly compete with major local and international garment brands operating in those areas. The target consumer age group will range between 20 and 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 than for other clothing products, prices will be significantly higher. The company will also invest heavily in quality management and marketing campaigns. Therefore, it will charge a premium price — presenting itself as a high-end brand made for upper-middle and high-income male consumers. The target market will consist of trend-conscious, fashion-forward consumers. 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, and others.
The major products of the company will include casual and biker leather jackets, leather coats, shoes, wallets, bags, and gloves. The company will purchase top-quality leather and other materials to manufacture the highest-quality 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 need to maintain quality standards and meet the expectations of its target consumers by manufacturing durable, comfortable, and trendy leather garments.
Being a private limited company, the majority of shares will be held by the owners and their associates. They will enjoy complete control and decision-making authority over all corporate, business, and functional-level operations. The company will have a centralized organizational structure in which all retail outlets, offices, and business units will report directly to headquarters. Each operational segment will operate under the supervision of a director and a team of managers. These teams will be responsible for achieving organizational objectives through middle- and lower-level employees, including sales staff, customer relationship executives, retail outlet officers, and production laborers.
In the initial phase of its operations, the company will face a number of environmental forces that will directly impact its performance in the industry (Kurtz, MacKenzie & Snow, 2010). These forces include social, cultural, and demographic forces, legal forces, technological forces, and economic forces (Kotler, 2010). In order to operate in the most effective, competitive, and profitable manner, the company will need to address environmental threats while capitalizing on attractive market opportunities.
Its strengths — including product quality, distribution capability, extensive advertising, and a strong financial position — will help management overcome competitive forces and grow at a rapid pace. Additionally, the company will need to establish an efficient internal control and Total Quality Management system at its offices to ensure transparent functioning across all departments and maintain top-quality products and customer service (Kurtz, MacKenzie & Snow, 2010).
Management will also need to design effective branding strategies to make this new leather garment brand successful in the U.S. market. Established multinational and local brands such as Giorgio Armani, Diesel, Gucci, Ralph Lauren, and Harley Davidson already have strong brand recognition and loyal customer bases. Management will need to formulate effective strategies and tactics to attract customers by making compelling brand promises (Kotler, 2010). Given the stiff competition, it is expected to take more than two years for the brand to become fully established in the market.
The company will need to promote its new leather garment brand throughout the California market in order to attract potential consumers. The optimal time to launch the promotion will be at the start of the severe winter season. The major marketing channels the company can use include traditional electronic media (television and radio) and print media (newspapers, fashion magazines, and company brochures). To capture consumers' attention, the company will need to design attractive advertisements and promotional campaigns. In the initial phase, it will set a competitive price and may use price-skimming strategies or offer attractive discounts across all leather garment lines to stimulate consumer interest.
In addition to advertising on television, newspapers, and social media, the company can also use in-store displays, banners, and billboard communication for the brand. It can engage reputable business development firms and a well-trained sales force to boost sales during the initial phase (Blythe & Megicks, 2010). For delivering finished products to retail outlets throughout the city, the company can use the services of local distribution companies.
The proposed marketing budget for the new garment brand is allocated as follows:
"Structure, environmental forces, and branding"
"Promotional channels, media mix, and pricing"
"Marketing budget and $53M capital expenditure table"
You’re 86% through this paper. Sign up to read the remaining 3 sections.
Sign Up Now — Instant Access Already a member? Log inAlways verify citation format against your institution’s current style guide requirements.