FOREVER 18

Feel young, Feel free.

Business Plan

28/04/2020

Contact Information

[email protected]

936-003-3033

www.techalligator.com

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 Contents
Executive summary:..................................................4
Expectations:.............................................................5
Objectives:................................................................6
Mission:.....................................................................6
Key to success:..........................................................6
Opportunity:..............................................................6
Problem & solution...................................................6
Operations:................................................................7
Company’s location & facilities...............................7
Products.....................................................................8
Product Description..................................................8
Competitive Comparison..........................................9
Sales literature.........................................................10
Sourcing..................................................................11
Technology.............................................................11
Future Products.......................................................12
Equipment’s and Tools...........................................12
Market analysis.......................................................12
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Competition.............................................................13
Implementation and strategy summary –................16
Competitive edge –.................................................17
Marketing Strategy..................................................17
Pricing strategy –....................................................17
Promotional strategy –............................................18
Marketing programs –.............................................18
Sales forecast..........................................................18
Management summary............................................19
Organizational Structure.........................................20
Management team...................................................20
Employee working terms........................................20
Financial plan..........................................................20
Forecast...................................................................21

Executive summary:
As, this world moves around the orbit, we get every new day as a present… every
day we humans has to get up and get ourselves ready to either go to job or other
purposes. Where! Going to job all 5 days a week and wearing almost same kind of

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formal dress in quite boring and difficult to do so. To change this scenario and
make every job going men’s comfortable and confident we have come up with
Forever 18.
Forever 18 is a formal apparel store that creates unique style of dresses only for
males. As our name points out, our main focus is to create and provide a unique
styling of clothes & accessories which make the customer fell like they are still in
their teens.
We are the first and only formal company to create and manufacture only formal
clothes to the customers. Our main intention is to obtain and capture as much as
60% of the market and become a market leader in this particular category.

Expectations:
Financial metrics – Year (2021-2023)

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 160

140

120

100

Revenue
80
Expences
Net Profit
60

40

20

0
FY 2021 FY 2022 FY 2023

Forecast –

We have planned to make an annual turnover of more than 60 lakhs by the first
year, and we expect the market will be stabilized and that will help us to stretch out
our hand in south India, by this we expect our annual turnover to be around 3 crore
at the FY25.

Financial needing –

The total cost to implement this business would cost 50 lakhs; we as a company are
looking out for covering at least half of the cost for launching this business, which
is 25 lakhs. The remaining 50% will be taken loan.

Objectives:
 To achieve the profit margin of at least 15% in the first year.
 To help and be an interactive member with our raw material suppliers i.e.
(cotton manufacturers).
 To have a customer base of minimum 3000 people in the first year.

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Mission:
Forever 18’s mission is to focus on the quality, various styles, and fabrics and give
an impeccable comfort to the customers.

Key to success:
In order to achieve success and capture 60% of market in this category forever 18
must –

 Keep the customers happy – provide customers a top notch customer

service with a premium clothing atmosphere.
 Market on particular areas where our targeted customers will get awareness
about us.
 Always find a new invention in our creation, which will help us to capture
the customer base and be as the trend setter.
 Build a good brand reputation and brand value.

Opportunity:

Problem & solution

Problem worth solving –

Our customers in the market are VIP’s, celebrities and top executives in companies
who go out often for meetings, shows etc… So according to survey nearly 60% of
the formal wearing people wear peach and white shades as a formal dress and in
the rest almost 10% wear black and 30% wear other colours. Even though there are
a lot of varieties in formal dresses, only few styles are created and repeated again,
and our customer as mentioned above they are noticed by publics, media etc.. So
wearing the same kind of styles will make them look even.

Our solution –

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We as a company are going to take inputs of how the customer wants their shirt,
what sort of style, colour, and for what formal occasion they want this shirt etc…
and after taking this we will create a shirt according to their preferences and give,
this will give them a unique feeling of only they have this shirt in the world. And
apart from this we will also design shirt with our designing expert and make those
shirts available in limited stock.

Operations:

Company’s location & facilities

Forever 18 will be located at Chennai, Tamilnadu, India. This space will have
more than 2000 square feet, in this space 1000 Square feet will be for showroom
and the remaining 1000 square feet for creating and stitching the dresses. We feel it
is good to locate in a metro city so that we will have access to facilities and our
customers easily. We will create an atmosphere where the customers should feel
premium and special when they come inside our showroom, at the same time we
will make sure that the customer doesn’t feel obligated.

Products
Forever 18 will carry out more than 10 different dressing styles in formal shirts
with more than 60 types of colours to go with. Our selection will vary from office
formal to party formal. We will be purchasing through fabric manufacturers and
distributer in all variety, colours and style to fit our target market base.

The management will go with customer feedback and suggestions to eliminate the
style and colour.

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Product Description
Forever 18 will provide a selection of various styles with comfort and quality that
will fall under our mission statement. Our goal is to carry a various section of
fabrics for all formal occasions and comfort level.

Some of our fabrics we carry are listed below:

Carried labels
Fine cotton Flannel
Twill Royal oxford
poplin Chambray
Linen Jacquard

Competitive Comparison
Forever 18 will offer patterns, sleeve length, weave pattern, occasion, stich,
hemline, fit, length, fabric & collar. All the customer has to do is to filter his needs
according to the above given options, and choose the apt one according to him,
after that we will measure his size and start creating the shirt. These are some of
our added advantage which will help us to build our brand value and identity, and
help us to create a strong customer base while standing unique from our
competitors.

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  We will be the first and only clothing store to provide an option for the
customer to design their own shirt.
 We will offer clothing to all fit, tall, and plus size men.
 The Forever 18 card would increase the credit point in the time of purchase
and will calculate the value and give additional bonus to the customers.
 Apart from customers designing their own product we also create our own
shirt styles with our designing expert in a limited number of stock.
 Our location is centre to our customer base, and easily accessible.
 Since we are dealing with VIP’s we will maintain a unique set of data

Sales literature
To create a brand image we will use target advertising and social media platform to
generate awareness amongst the public.

 Creating a page for forever 18 and posting posters, adverts etc…

 Advertising in TV with premium flavour will help to attract the customer.
 Providing customers with limited edition accessories matching to their
shirts.

Sourcing
We will shop our products as outlined below:

 Having manufacturers around the city, we will order our products according
to the demand and the sales, in weekly wise or monthly wise. For other
fabrics and colours in those fabrics we will order only if it is selected and
chosen by our customers.
 The accessories will be ordered from manufacturer and will be designed by
manufacturers only according to out style.

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Technology
Retail company establishments have a tendency to have a high number of
customers because of the level of inventory and creation. So, it is imperative that
an advanced inventory and point of sales program be utilized to maintain the stock
levels and track the sales day by day. The software will be of windows based,
where we if the bill is checked then automatically the stock will be revised and so
the sales.

After we achieve a minimum customer base, we are planning to go online, so that

we can be available to customer all over India. Due to this implementation our
brand value will tend to increase and we will capture the entire customer in north
India also.

Future Products
As, we achieve our sales and capture the customer base we are planning to expand
our market in overall India either by stretching our stores in all the metro cities or
by going online. Apart from this we will bring in more categories in our brand such
as suits, shoes etc… where this also can be customized by our customers.

Equipment’s and Tools.

One of the main equipment that is required for this business is tailoring machine,
because after taking the measurements we will have to stitch the shirt. And other
tools will be scissors, measuring tape, body shape holders etc... These are some of
the main tools that are required.

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Market analysis
Market size –

At first we are focusing at south India, our target market is only male Celebrities,
VIPs & Top executives, so they are our key attributes to whom we target at. Then
we’ll also focus on other potential customers. Celebrities & VIP’s are the once
who public & media target at mostly and providing them with a good flavour of
shirt according to their preference will give them an utmost unique experience.
Whereas the top executives are seen by employees and fellow mates.

Market size (south India):

Celebrities & VIP – 10,000 people average.

Top Executives – 5000 people average.

Others – 5000 (other potential buyers)

Competition
Current alternatives – Our current competitions are formal brand clothing store
such as:

 Louis Philippe
 Van heusen
 BlackBerrys
 Raymond

These are major market leaders in premium clothing sector, and my targeted
audience are buying products from these brands. Also these brands sell casual
shirts, whereas we are focusing only on formals.

Our advantage –

Our main advantage is:

 Designs product according to customer’s choice.

 Unique design.

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  Design does not come again.
 Limited stocks.
 Premium clothing.
 Affordable when compared to other formal brands.

Market Segment –

We are locating the store where VIP’s, celebrities, and executives are more
concentrated. And therefore the city itself is leading to the highest population,
which benefits us in increasing our customer base.

In this particular where our store is located; there are possibilities of more IT parks
to come, which statistically show that there is a huge opportunity for us to grow as
a brand.

Apart from this, we think there is a column called “others” where other potential
customers will tent to buy our product, because of the ambience we are creating
and the premium treatment we are giving to the customers, we think that we will
possibly attract other customers and make them turn around.

Chart: (Market analysis pie)

Targeted customers

VIP's & clelbrities

Executives
Others

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Market segment strategy –

The goal is to serve premium clothing for our targeted audience. And focus on
movie shootings and TV shows, because I think these are not really focused
properly.

Market trends & growth –

Despite the fact that the shirt segment has seen a setback with the advent of the
shirt Industry, lately formal wear is back in fashion with brands having modernized
their offerings that include new colours, fits and innovative fabrics. There is a
further sub segmentation on the basis of pricing and buyer's profile in the metros
and non-metros. The formal shirt category sector is offering high quality fabrics in
diverse designs and blends as per latest fashion trends. Shirting fabrics play an
extremely important role in readymade shirts as well as in stitched shirts.

Formal shirts are strongly differentiated with their fabrics, the formal shirt market,
which evolved around polyester cotton fabrics moved upwards to cotton and then
to premium cotton fabrics. Today there is a clear demarcation on formal shirts.
Formal shirts from the organised sector are mainly 100% cotton or 100% linen and
formal shirts from regional players are mainly blended fabrics of both polyester
and cotton.

So, thinking in the long run we think formal shirts have a large potential in the
market.

Implementation and strategy summary –

Forever 18 is going to provide an over served market with unreserved goods, the
before marketers have left a huge gap in between this category, and so this
particular category hasn’t been targeted properly.

Our main, intention is to gain 60% of market share in this formal category by
providing premium products to our customers.

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Competitive edge –
 Our location will be easily accessible to our targeted customers
 We will offer clothing to all fit, tall, and plus size men.
 The Forever 18 card would increase the credit point in the time of purchase
and will calculate the value and give additional bonus to the customers.

Marketing Strategy
Our marketing strategy will focus more on the niche positioning in market and
customer loyalty, with premium clothing advertising.

 The marketing will be cross more than 3% of the total annual sales.
 Our strategy will be of personal approaching to the customers.
 The strategies and promotions will not exceed the company’s mission
statement.

Pricing strategy –
Forever 18 is targeting on premium level of clothing sector in the formal shirts, so
our pricing strategy will vary according to the type of styles and fabrics the
customer choose. It will be mostly flexible pricing.

Promotional strategy –
We will apply an aggressive strategy of approaching our customers with our
brochure, because our customer will have limited free time. And as we all know
that if one customer likes the product, we will get a lot of reference and so this will
automatically help our company to grow.

Marketing programs –
2 weeks prior our grand opening we will promote our brand by having tie up with
celebrities and so they will promote our brand in social media.

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Sales forecast
The following chart will give you highlights of annual sales forecast. We expect to
start of gradually after customer get to know about of company.

Chart: (annual sales by year) –

100%

90%

80%

70%

60%
Accessiories (belt, tie etc..)
50% Formal shirts
40%

30%

20%

10%

0%
FY 21 FY 22 FY 23

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Management summary
The employees will be given no limitation to their creativity for creating their own
style and producing a trendy formal shirt. All the duties will be divided amongst
the needed department; hence there will be no work load. 2 positions will need
specific skills to acquire it, and that is customer service & managing the overall
store including orders, stocks, and prices.

Organizational Structure
Forever 18 is going to work on simple and flat organizational structure so that
anyone can speak to the head and there will be no misunderstanding happen when
dealing with the products and prices.

Management team
Sanjay Siva Kumar, founder& owner of forever 18, will be
responsible for all the administration, purchasing, sales, stocks,
creation team head and promotions. He will be allocating the
teams and lead them properly.

Employee working terms

The fashion designers will have to work for 50 hours a week based on the orders
received, and the tailor will be segregated according to the customers, each tailor
has to follow the same customer until the shirt is finished and delivered.

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Financial plan
Forever 18 is following flexible strategy so the cash flow will always be positive,
apart from that it’s a metro area, so customer will tend to have different methods
for payments, we are ready to accept debit card, cash, all major credit cards &
cheque.

Forecast
Revenue by month –

We have calculated our revenue by month based of the market value and the size
we are approaching at. And apart from this we are focused on our annual revenue.

Chart: (projected revenue by month)

Sales
8

5
Sales
4

0
0 2 4 6 8 10 12 14

This is our average sales per month in a year.

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Net profit or loss by year

Net profit or loss by year

5
4.5
4
3.5
3 Profit or loss
2.5
2
1.5
1
0.5
0
FY 21 FY 22 FY 23

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