Introduction
This plan describes the financial and promotional strategies of Bravo intimates, which will be located downtown Royal Oak, Michigan. This exciting venture will bring an intimate apparel shop for women to the metro area. The second year will include products for mastectomy. No major mastectomy store is available in the metro to serve this customer. Bravo Intimates can be expected to gain the highest market share by supporting local women’s clubs and organizations. This will allow Bravo Intimates to link events with in-store promotions. Our ultimate goal to be Michigan’s best swimwear and intimate apparel shop is to fit every customer in the most flattering bra or swimsuit.
A portion of our profits will go to a fund that we use to purchase our own building. This is tentatively planned for year four.
The Company
Bra~vo has a very strong, experienced and professional management team, with over 35 years of combined experience. Every member is a specialist in their field, and we can cover all aspects of the company.
Rebecca Autumn will become: Owner/Operator, with 55% ownership. They will be responsible to buy, customer sales and fit-outs.
Lucille winters (Co-owner) will be: Part-owner with 26% equity and will act merchandising consulting, employee training, sales and part-time.
Deborah Summers will be: Co-owner with 19% ownership and will act as Operation Manager responsible for payable and receivables, inventory control, in store promotions, billing and sales.
The store is located in Royal Oak, Michigan’s downtown Shopping District. South Washington street is the most upscale street in town. The space is 2,000 (10 x 200) square feet.
The Products
Only brands we believe meet our quality and fit requirements will be sold in our shop. We will be introducing new brands to our customers.
Bravo will stock quality American and European products such as Rigby & Peller and Prima Donna. Our specialty is bra fitting for full-figured women. Bras and intimate apparel will comprise the bulk of our merchandise. Next, swimwear, nightwear/At home-wear, and accessories will be included.
As Bra~vo achieves its sales and profitability goals, upon our first year anniversary, we will expand in the following categories; bra/intimate apparel, swimwear and accessories, nightwear and at home-wear, and hosiery.
The Market
During the last three years the total women’s intimate apparel, or innerwear, market grew by 10%, to $11.8 billion. All product categories saw strong growth during this time, with the most notable growth being Bras (17%) or Bottoms (12%) For the past eight years, consumer awareness has increased about the importance of bra fitting. Over the last five-years, there have been double-digit sales growth in many independent stores. This is due to two reasons. The clothing industry has featured more skin-exposing fashions that need speciality foundation garments. Fashion column writers have also stressed the importance bra fitting and referred to the speciality shops in the area.
Bravo Intimates was able to capture $304 million from the $10,702m market. This is in addition to $341 million of $11,797 millions that Bravo Intimates had accumulated over the past two years. Direct mail merchants have dominated the market with a 914 million share last year. Internet sales were the main reason for this rise.
We have estimated that the Royal Oak area has 94,201 potential customers. Knowing the missed opportunities of competitors, this strongly suggests that there is still a market for prospective customers. This is why we believe there is a market niche for an intimate apparel shop that can cater to the needs and wants of all Tri-county ladies.
Projections Financial
Bra~vo Intimates’ financial goals are the following:
- To achieve a net margin of 15% or more in the third year.
- To earn a net profit over $100,000 the second year, and $41,000 the third.
These figures are possible because we have start-up needs of approximately $196,000. This includes $80,000 in initial stock.
We will work with National City Bank Royal Oak to obtain a five year loan. This will allow us to make the first-year’s payments as flexible as we can.
1.1 Objectives
- To create a point of destination shop for premier lingerie, swimwear and personalized fitting service.
- To attain the largest market share possible in the region for speciality garments foundation clothes.
- To be active in supporting women’s and community organizations, connecting events to in-store promotions.
- To achieve a net profit margin of over 7% the second year of operation and 15% the third.
- For the second and third years, to achieve a net profit exceeding $41,000 and over $100,000 respectively.
1.2 Mission
To be Michigan’s best intimate apparel and swimwear shop, fitting every customer in a trendy bra or swimsuit, giving her exceptional support and shaping, thus enhancing her entire figure!
1.3 Keys of Success
To succeed in the intimate apparel business we know we must:
- We carry a wide range of foundations in quality brands, in different sizes, styles, colors and colors.
- Carry fashion and basic brands that are a point of difference from our competitors.
- Assist customers in fitting and building a wardrobe for all fashion needs.
- Continuously monitor our sales and adjust inventories accordingly.
- Customer service excellence in a positive environment for body image.
- Advertise in areas where our potential customers are likely to learn about us.
- Keep updated about the latest technology and brand news.
- Consider a variety price points because women come from all walks of life.
No comment yet, add your voice below!