1 Lingerie Shop Business-Plan-La-Perla PDF

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BUSINESS PLAN - LA PERLA Swinburne University of Technology Sarawak Campus MUHAMMAD BABUR FARRUKH & SAAD ZAFAR IQBAL

BUSINESS PLAN - LA PERLA La Perla is an Italian influenced lingerie boutique that will provide high quality lingerie in a wide array of sizes and styles with exceptional customer service. The store is expected to be located in a proven retail center called Suria KLCC Shopping Mall in Kuala Lumpur, Malaysia where the demographics are suitably upscale, traffic counts are high, and compatible retailers offer qualified traffic and potential referral business.

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MUHAMMAD BABUR FARRUKH AND SHEIKH SAAD ZAFAR

BUSINESS PLAN - LA PERLA

Contents Executive Summary...............................................................................................................................3 Company Background............................................................................................................................6 Company Summary...............................................................................................................................7 Hours of Operation............................................................................................................................7 Company Ownership.........................................................................................................................7 Location.............................................................................................................................................7 Start-up Summary..............................................................................................................................8 Merchandise Assortment..................................................................................................................8 BRA’S.................................................................................................................................................8 BRIEFs................................................................................................................................................ 8 Product Sourcing & Buying................................................................................................................9 Inventory Management & Technology...............................................................................................9 Market Analysis Summary.................................................................................................................9 Market Segmentation..........................................................................................................................10 Women 25-59 with household income of RM 70K per annum.......................................................10 Women 18-24..................................................................................................................................10 Brides............................................................................................................................................... 10 Target Market Segment Strategy.........................................................................................................10 Industry Analysis..................................................................................................................................11 Competition and Buying Patterns........................................................................................................11 Trends.................................................................................................................................................. 12 Strategy and Implementation Summary..............................................................................................13 Marketing Strategy.............................................................................................................................. 13 Marketing Objective........................................................................................................................13 Tactics..................................................................................................................................................13 Print advertising...............................................................................................................................13 On-going use of direct marketing....................................................................................................14 Low or no-cost "guerrilla" marketing...............................................................................................14 Employ strategic placement among key websites on the Internet..................................................15 Parties for promotion......................................................................................................................15 Brand Ambassador..........................................................................................................................16 Sales Strategy......................................................................................................................................16

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MUHAMMAD BABUR FARRUKH AND SHEIKH SAAD ZAFAR

BUSINESS PLAN - LA PERLA Sales Forecast......................................................................................................................................16 Competitive Edge.................................................................................................................................17 Location...........................................................................................................................................17 Product Quality................................................................................................................................17 Customer Loyalty.............................................................................................................................17 Personnel Plan.....................................................................................................................................17 Financial Plan....................................................................................................................................... 17 Important Assumptions.......................................................................................................................18 Financials.............................................................................................................................................18 Break Even Point for the business........................................................................................................20 Exit Plan............................................................................................................................................... 21 References........................................................................................................................................... 22 Appendix............................................................................................................................................. 23 Chart: Highlights..............................................................................................................................23 Chart: Start-up.................................................................................................................................24 Chart: Partnership Breakdown.........................................................................................................24 Table: Expenditures by Household Income of Lingerie Purchasers..................................................26 Table: Expenditures by Age of Lingerie Purchasers..........................................................................26 Table: Start-up.................................................................................................................................27 Table: Start-up Funding....................................................................................................................28 Chart: Market Analysis.....................................................................................................................29 Table: Market Analysis.....................................................................................................................29 Table: Sales Forecast........................................................................................................................29 Table: Sales......................................................................................................................................30 Table: Cost of Sales..........................................................................................................................30 Table: Personnel Plan.......................................................................................................................30 Chart: Break Even Point...................................................................................................................31

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MUHAMMAD BABUR FARRUKH AND SHEIKH SAAD ZAFAR

BUSINESS PLAN - LA PERLA Executive Summary La Perla is an Italian influenced lingerie boutique that will provide high quality lingerie in a wide array of sizes and styles with exceptional customer service. The store is expected to be located in a proven retail center called Suria KLCC Shopping Mall in Kuala Lumpur, Malaysia where the demographics are suitably upscale, traffic counts are high, and compatible retailers offer qualified traffic and potential referral business. Our budget is close to $800,000, which we are financing ourselves, along with a silent partner who will provide interest free loan. We hope to break even in the third year of business with good numbers on profits as early as the second year. Competition and Challenges The outlets for intimate apparel purchases in Malaysia are extremely limited than markets of similar size in neighboring countries. One of the major reasons is that Malaysians, in general, do not feel comfortable being seen shopping for lingerie due to the fact that, it is something intimate that you buy for you or your partner's personal indulgence. They see no reason for anyone else to know where or what they are buying for themselves or their partner. As such, they feel that the most appropriate place to buy intimate apparel such as lingerie is via online boutiques. Another reason for preferring to buy online is the privacy and comfort of their home. Also, lingerie stores are also mainly found in shopping centers in major cities. As such, for residents living in smaller towns, shopping for sexy lingerie via online boutiques is their best option. Through online boutiques, residents in smaller towns have access to as much as choices as residents in bigger cities. Then, there are mass merchandisers and discount stores that offer mass produced and lesser quality brands; department stores that offer mediocre quality merchandise, but in limited sizes and with varying degrees of customer service. However, in recent years, introduction of some international brands like Lace Petals, Romance Culture, La Senza and Blush Lingerie have brought the locals out of their shell and have captured the market from online stores. These are the only firms to cater for the upper class, who need more variety and are much more brand conscious. Market Potential Three key target groups are identified in Market Segmentation part of this business plan, based on lingerie spending patterns. The three target groups are: 1. 2. 3.

Women 25-59 with a household income of RM 75,000 (Approx. $ 25,000) per annum Women 18-24 Brides A common psychographic component that we are planning to target amongst all three groups is the Intimate Apparel Enthusiast ( IAE). An IAE is a woman who cares enough about her lingerie to want to shop at a specialty store, and is not purchasing her lingerie at department stores. There are large numbers of potential customers who fit these target descriptions within a five mile radius of our store location, which captures Hawthorne Plaza shoppers for impulse purchases, and within a fifteen mile radius for destination traffic (Market Segmentation).

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MUHAMMAD BABUR FARRUKH AND SHEIKH SAAD ZAFAR

BUSINESS PLAN - LA PERLA Unique Selling Propositions Italy is known as one of the most romantic countries in the places to visit, with Venice being a mustsee place for travel enthusiasts. Anything exotic or sexy is synonymous to countries like France and Italy. La Perla offers, a direct connection to Italy, with the material being produced in the EmiliaRomagna region. La Perla has achieved worldwide recognition as an undisputed leader in the upscale lingerie fashion industry. Beautiful designs, exceptional fabrics and trims, and the creative use of sheer and opaque in certain intimate apparel, set this company's products apart. The fame of La Perla's fit has won the loyalty of customers throughout the world. Their secret? La Perla fits each pattern to a body, not a mannequin. Through this process, La Perla designers can see how the materials stretch and give support to a woman's curves, producing garments that are both exquisite and truly form fitting. The La Perla line is as varied as it is renowned. Bra styles include lace confections with soft cups, in a triangle style and underwires, as well as silky smooth tee shirt bras and bandeaus. For a company known for high style, La Perla tee shirt bras are surprisingly popular. Customers say, they are the best bras they've ever owned, soft and easy to wear. For those times when one is going for a more Euro-design look, there are exquisitely delicate lace bras, some of which are unlined and sheer. Other styles are adorned with scalloped embroidery or eyelet lace. Panties are offered in many styles, including G-strings, thongs, tanga pants, hipsters and briefs. Customers love the exceptional style, perfect fit and elegance and say these garments are worth every penny. As such a high-end brand, La Perla is often thought of as special occasion lingerie, but the superb fit, comfort and enduring quality of their bras, panties, chemises and other lingerie make La Perla a go-to brand for many shoppers. Women who appreciate the unique combination of perfect fit and comfort along with a beautiful design sensibility choose La Perla lingerie for themselves again and again. A full description of La Perla's product offerings can be found in Sections (Merchandise Assortment and Market Strategy). Furthermore, the highly trained personnel will get to know each customer's individual needs, and will offer personal bra fitting and other special services, as described in more detail in Section (Market Strategy). Leadership and Vision Akmal Khan, a Post Graduate in Marketing and Sales, who already has a business, at a lower level, which will be a tremendous asset in analyzing the customer and market potential, as well as in implementing a strong marketing plan which will be outlined by all three stake holders, Akmal Khan, Muhammad Babur Farrukh, Engineering Graduate, currently pursuing Masters of Management and Sheikh Saad Zafar Iqbal, graduate in Accounting and Finance, currently pursuing Masters of Management, as outlined in Sales Strategy; Section 5.2. As a seasoned strategist, he has a great grasp of numbers, and will utilize his negotiating and strong network skills with vendors and clients. Running a similar business he has extensive experience in controlling costs for businesses, with a natural penchant for watching the bottom line.

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MUHAMMAD BABUR FARRUKH AND SHEIKH SAAD ZAFAR

BUSINESS PLAN - LA PERLA Financial Projections With La Perla, we expect to produce $439,500 in the first year of operation, with aggressive growth projections of 12% in year three and 19% in year four, fueled by expanded product lines and aggressive marketing. The store is projected to become profitable during the second year of operation. Objectives 1. To create a shopping environment where women (and men) feel comfortable, pampered and stimulated by the wide array of choices that are available to fill their needs. 2. To utilize superior customer service to create positive word-of-mouth recommendations and repeat sales. 3. To give every customer one-to-one attention. 4. To have 50% of all customers return within six (6) months of their first purchase. 5. To be in the consideration set for all planned Intimate Apparel Enthusiast (IAE) purchases in Malaysia, country wide, by end of year two. 6. To make La Perla the number one destination for bridal lingerie purchases by the end of year one. 7. To have first year gross sales of $425,000. 8. To grow the business by 15% in year two. Mission La Perla is a specialty lingerie boutique offering classy styles, labels and sizes that are currently unavailable in Malaysia; something the population of Malaysia crave since the inception of Victoria Secret’s Fashion shows. Our mission is to give the discriminating lingerie shopper what she or he is looking for, whether it is fit, comfort or style, in an atmosphere that is comfortable, exciting and satisfying. We want to create a connection with the Intimate Apparel Enthusiast (IAE) that evokes the feeling that La Perla is "my lingerie store". Keys to Success 1. Offer superior quality products with cutting edge designs that are not available in other outlets in the Kuala Lumpur. 2. Secure a great store location that offers high customer traffic for impulse purchases caters to desirable demographics includes compatible stores (e.g. Bridal, women's apparel), and is in an easily accessible, known destination. 3. Understand La Perla’s target customer to ensure that the correct product mix is available to meet their needs. 4. Offer superior, personalized customer service to create favorable word-of-mouth recommendations and influence a high rate of repeat business. 5. Continuously monitor inventory levels, and make adjustments as needed. 6. Educate and advise customers on proper fitting and the quality/value relationship of some of the higher priced (likely European) brands. 7. Offer a variety of price points so that customers do not feel intimidated by the higher priced offerings. 8. Change in-store and window displays frequently to increase impulse purchases, creating the belief that there is always something new at La Perla.

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MUHAMMAD BABUR FARRUKH AND SHEIKH SAAD ZAFAR

BUSINESS PLAN - LA PERLA Company Background The company was founded in 1954 by Ada Masotti in a small confection lab named L’Ape. The name is inspired in the jewellery that came with the garment and the box. In 1960’s the company started a revolution in the underwear tradition with the introduction of coloured pieces and leaving behind the “white” style. By the 1970’s La Perla started to used technology in its production and the elastic strap, tulle, pleated polyester or silk-like microfibers were some of the most important breakthroughs; also at this decade the firm launched its swimwear line, expanding their business into different segments. With the arrival of Alberto Masotti (son of Ada) as the new President, the companies started its global expansion and enlarge its brand into different business such as perfumes. At the arrival of the last decade of the century La Perla opened its first boutique store in Milano, the capital of fashion in Italy, and launched its Pret-a-Porter division. This was a result of the global trend amongst fashion houses in the world through a democratization of fashion and luxury that boost revenues across industries. By this time, the company also started to have liaison with art, in this decade the famous photographer Mario Parizotto. In the 21st century La Perla decided to change its looks to a more minimalistic approach by relying on Sigurd Steinunn designs. In 2004 was a special year for the company as it celebrated its 50th anniversary with the debut of the Pret-a-Porter catwalk in Milano. In 2008, La Perla was acquired by JH Partners, a private equity firm from San ...