Sales and distribution strategy - Thesis business- 123docz.net

F-Joy Couture intends to build a sales team that will be tasked with generating sales leads on a regional and national basis. They will also be responsible for establishing connec- tions with other retail outlets. A key factor in the success of F-Joy Couture will be by its distribution. The company plans to use the following retail distribution channels:

 Departmental stores

 Apparel specialty stores

 Internet stores

Catalogs are another important method of shipping. Consumers have lesser time to shop, and for some, catalog shopping offers a more convenient and pleasant alternative.

The distribution channel that has received the most attention recently is the Internet. Con- sumers like the convenience of being able to shop from anywhere and at any time they wish. Manufacturers with internet sites use them for marketing and awareness purposes.

With further technological advances in hardware, software and data pipelines, shopping for fashions continues to gain popularity.

6 Operations and organization

The initial run of operation will be provided by the owner herself, Omolara Kemi Odediran.

Her experience has been drawn from her involvement and passion in design and in retail;

starting from when she was a Fashion trainee in Nigeria for 2 years and later an intern at

‘Kuosit patterns’ in Espoo Finland for 2016 summer.

There she learnt the ropes of business, including pattern making, and sewing. She will handle outsourcing manufacturing, accounting, trade show assistance, couriers and sales.

The appropriate personnel will be hired accordingly as the demand for the product and service grows.

F’Joy Couture as a sole proprietorship offers the following advantages: a low entry cost;

and complete control over how the business is been run.

6.1 Business location

The primary way customers can find F’Joy Ventures (Couture) is through our office at Maitama and website. All the production will be done in the shop at Maitama. To expand the business, low-cost commercial silk-screening and embroidery equipment for garments will later be purchased. This is a good time to buy this equipment because the inventory is high and vendors are cutting prices to move their products quickly. The vendors also supply free training for all the equipment. The company will later buy a commercial-grade screen printing equipment package, a digital garment printer, and one embroidery machine. This new equipment will initially fit in the company’s basement for production.

In year three, the company plan to expand the shop to an 800 to 1,000 square foot.

Maitama is the perfect location for many reasons. It is close to our primary individual, school, and business target markets. It is also a well-known shopping and dining destination for our target customers. The area has a good look, which is good for our brand. Parking is free and foot traffic is high.

The office space will have room for a dedicated private production area in the back and increased inventory storage. The new storefront will also give F’Joy Couture a physical image and a place to hold Advisory Council meetings and social events. We will be looking for a location in one of the older buildings or bungalows to support the F’Joy Couture brand.

6.2 Management team

The proprietor’s experience as logistics management in tailoring and decoration firm for two years gives her needed management experience. The CEO currently assume all functions within the business and make all decisions. Fashion college mentors will be sought after and utilized for advice.

In addition, the company will also be taking advantage of the Abuja Incubators Program, which gives new companies advice, mentoring, and management training during the start- up phase to reduce the risk of failure.

The company is in the process of forming F’Joy Couture Advisory Council, to be composed of 10 to 15 area high school and college students and recent graduates representing the student target market. The Advisory Council will meet quarterly. The function of the Advisory Council is to provide product input and help promote F’Joy Couture and our special events through their own social media activities. They will also help us expand the brand directly into the schools and advise us on appropriate socially consciousness activities for the company to support.

The company anticipate hiring its next key employee in year two at the latest. He or she will have a degree in Graphic Design or the equivalent of that in graphic design work experience. This person will serve as the company’s graphic designer and production assistant. The graphic designer will create our own unique, designs. The designer will also help expand the business into also offering customer-created designs through our website. The graphic designer will work closely with the CEO and the Advisory Council members to determine the best designs to appeal to F’Joy target markets. After year three, the company will hire more production and sales staff as needed.

The company’s philosophy is based on mutual respect, responsibility and excellence. F- Joy Couture will have an environment and structure that encourages productivity and respect for customers and fellow employees.

6.3 Personnel plan

The personnel plan chronicles the growth of the organization to approximately 3 employees in the 2nd year. Each year may require a few additional people besides those indicat- ed, based on the growth of the company in accordance with the business plan.

Year 1 Year 2

Omolara Odediran #0 #150,000

Administration #0 #80,000

Total people 1 4

Total payroll #0 #230,000

7 Financial plan and capitalization

F-Joy Couture is seeking a substantial long-term business investment for the purpose of developing and marketing the clothing line. This funding will cover operating expenses and product development that will lead to the formal launching in 2018.

F’Joy Couture will have a quarterly fiscal period, and the fiscal year is the calendar year.

To manage cash flow, the company plan to create a quarterly budget that is compared to actual income and expenses for that fiscal period as F’Joy Couture financial statements and other financial documents.

7.1 Start-up expenses

Our personal initial investment was #200,000. The initial target market includes the schools, church choirs, corporate firms, teams/organization and individuals. We will distinguish ourselves as a socially conscious company that gives back to the community through our empowerment programmes for less-privileged in the society.

The company predict the first full year of sales to approach #2,000,000,000. In year two, it plan for a 20% sales growth and the need to add a full-time graphic designer/production assistant to begin producing our full line of custom clothing. In year three, the company will have a storefront in the high-traffic neighborhood of Maitama.

F'Joy Couture’s initial expanded inventory will be purchased through our supplier.

Inventory storage is minimal but will increase when the storefront opens and we have expanded our product lines. Several apparel agents will be hired on a commission basis in order to promote the line at high-profile events; establishing and maintaining good working relationships and lower-pricing contractual agreements with local vendors in order to reduce materials and shipping costs, saves interest charges, and helps manage cash flow; and taking advantage of free social media.

Based on the initial budget, the company plan to keep enough money in interest-bearing accounts to cover any economic swings. F'Joy Couture will create an Internet based brand that clothing and decoration industries that will be recognize as a leader in the promotion, marketing and sale of its product in the online retail marketplace.

Company’s revenue will be generated from three specific sources: (1) ecommerce commission fees paid by product sponsors (2) integrated content and banner advertising

on the web site (3) personal savings. The Company will develop and market its own branded storefront service.

7.2 Break-even analysis

With a high gross margin, and estimated fixed monthly expenses, the required monthly break-even sales volume is revealed in the table below. Also, the table also contains important assumptions which the company will use to ensure its success, and the primary assumption is that the economy will develop much better than its current state.

BREAK EVEN ANALYSIS

Monthly Revenue Break-even

#801.725

Assumptions:

Average percent variable cost 65%

Estimated monthly fixed cost

#284,393

7.3 Projected profit & loss

F-Joy Couture is in the early stage of development, thus initial projections have only been made on accounts that are believed to most drive the income statement.

7.4 Sales forecast

The company expects that sales will start off a bit conservatively and will steadily increase over the course of the first year. Sales are forecasted to increase rapidly, with an average annual growth rate of approximately 5%.

N.B. the company’s financial statement is currently still vague. The cash-flow projection;

balance sheet projection projected; profit and loss and sales forecast will be further planned and developed. Hence, a template from

8 Discussion

Entrepreneurship as defined by Stevenson, is the pursuit of opportunity beyond resources controlled; hence, it is seen as a lifestyle and one of its major principle is risk-taking. So as a good entrepreneur, accepting the risky journey and working strictly towards achieving the business goals (both short and long-term) becomes priority.

The aim of this research was to create a business manual for F-Joy couture. The main goals and objectives which are company’s description, value creation, product description and operational planning has been well-sorted out, using the entrepreneurial approach and information gathered from secondary sources. The author of this thesis (who is also the founder of the proposed Fashion company) now has a clear understanding of what is involved in setting up a fashion company in Nigeria- the opportunities and strengths. This has subsequently helped the author in structuring the necessary details needed in the business plan of the company which serves as a good starting point for F-Joy couture.

This business plan is meant to serve as a template to other fashion start-ups and or related establishments, which can be amended or altered to suit the business set-up.

Even though some of the financial projections of the company might be unclear, the right template and source has been found to fixthe projections. On the other hand, the author if this thesis assumes that the project-based research work has been successfully completed and the goals and objectives achieved.

Furthermore, the author have some recommendations that will help create a sustainable atmosphere in the Nigeria fashion industry. These include:

 Adoption of indigenous fabrics; for both corporate and cultural wears would be innovative and economical. “It will be a welcome development for the country at large, hence cheaper, modest and affordable.

 Provision of critical infrastructure; For the sector to be internationally competitive, government must, encourage local patronage, reduce smuggling, provide access to low funds and capacity building.

 Provision of textile machinery/equipment; for smooth and efficient production

 Putting up trade barriers to some extent against the foreign importers so our locals can prosper; More organizations must work with African countries’ respective law centers and organizations like the African Cotton and Textile Industries Federation to build more institutional capacity in the region, identify key trade policy

issues that limit exports of textiles and apparel, and to advocate for reforms that liberalize trade within and outside the region

 Establishment of fashion courses/ program in the universities; if the government sees a need for the fashion industry locally, fashion industry becomes easy and marketable to convince the international market of our existence

 Supply chains and distribution networks; fashion industry needs to have various promotional efforts — traditional as well as digital, strategic initiatives of mutual benefit to stakeholders, and supply chains and distribution networks that connect and inspire creativity and innovation in order to develop

Startups in the Nigeria fashion industry need to understand these challenges and tackle them because if the gains are properly harnessed, the industry can become a major sector in the nation’s economy; as GDP figures for Nigeria showed that the Fashion, Garment and Footwear industry contributed 0.47% (about N380bl), which is certainly a viable sub-sector that needs to be fully harnessed.

Nigerian government needs to collaborate more with the private sector in investments in the industry, e.g. provide financial incentives that encourage institutions to give credit for the purchase of new machineries, specialised fashion training, etc. Besides, the government needs to help by providing a proper technical and marketing infrastructure, and taking effective measures to enforce the ban on the importation of certain textile products, which is already in place. Finally, the government needs to create an enabling environment for the branding of Nigerian cotton and other textiles like multinational companies are doing for their own products.

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Appendices

Appendix 1. Memorandum of Association

Appendix 2. Survey Questions used for gathering customer’s insight

Appendix 3. Curriculum Vitae of the CEO: Omolara Odediran

Curriculum Vitae

Personal information

Name ODEDIRAN, Omolara Kemi

Address Maininkitie 1 A 8

Postal Address Telephone

02320, Espoo. Finland.

+358456******

Email omolarakemio@gmail.com

Nationality Nigeria

Date of birth 23 June

Gender Marital status

Female Single

Work experience

Date

Position held

Main activities and responsibilities

Name and address of employer

………

Date

Position held

Main activities and responsibilities

May 2016 – July 2016

Fashion Trainee- Digital marketer

- pattern making production for the Helsinki Pride week Collections

- creatively designed some marketing materials suitable for social media post to pull traffic on social media platforms

AB Barevitch Oy

Elosalamantie 4A 11, 02100 Espoo, Finland.

358 (0) 407692344

………

November 2014 – February 2015.

Awareness Personnel

-Carry out promotional voluntary work as part of work experience in marketing

-Take active part in the English language and drama classes

Name and address of employer

……….

Date

Position held

Main activities and responsibilities

Name and address of employer

………

Date

Position held

Main activities and responsibilities

Name and address of employer ………..

Date

Position held

Main activities and responsibilities

Name and address of employer

DRAMAWORKS Theatre Company 1133, Hegedus Gyula Utca 50. 3/5 Budapest, Hungary.

Tel: (1) 339-4404, +36 (20) 316-7268

………

March- October 2014 Stylist

- Dress making

- Sewing and Confectionery

Divine Rose Fashion Designs Ile-ife, Osun State

Nigeria

+2348063090930

………

January 2013- June 2013 Production Assistant

- Making of Adire (African Fabrics) - Production of Tie and Dye My African Fabrics

National Youth Service Corps Ogun State, Nigeria

………..

December 2009- April 2012 Receptionist

- prepares financial spreadsheet of the hostel - perform light bookkeeping tasks

- verifying the hostel`s occupants and observing (reporting) any unusual activities

Fine Touch Hostel

Obafemi Awolowo University, Ile-ife Off Ede Road, Osun State

Nigeria.

Education and training

Degree awarded Principal subjects/skills