Handbags Business plan MAJJ Handbags PDF

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Handbags Business plan MAJJ Handbags I. Executive Summary 3 a. Demand b. Meeting the Demand c. Business Model d. Profitability II. Company Overview 4 a. Mission b. History c. Objectives & Goals III. Product Description 5 a. Description of Product b. Features and Benefits c. Competitive Advantage...

Description

Handbags

Business plan

MAJJ Handbags

I.

Executive Summary a. Demand b. Meeting the Demand c. Business Model d. Profitability

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II.

Company Overview a. Mission b. History c. Objectives & Goals

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III.

Product Description a. Description of Product b. Features and Benefits c. Competitive Advantage

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IV.

Market and Competitive Analysis

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a. b. c. V.

Target Market Characteristics of Target Market Competitors

Management Team

a. b.

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Backgrounds and Roles of Management Organizational Structure

VI.

Marketing Strategies a. Product b. Price c. Place d. Promotion

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VII.

Critical Risks a. SWOT Analysis

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VIII. IX. X. XI.

Funds Required

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Income Statement

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Break-Even Analysis

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Appendix A. Photos of Product

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I. Executive Summary MAJJ is a multi-functional company meeting the need of market-demands. We provide customers up to date fashions along with bringing them the quality they deserve (without making them pay an arm and a leg for them). With this style and quality, customers will not want to look elsewhere for their handbag needs. Because MAJJ Handbags keeps up with the latest trends, it will ensure a wellmaintained and strong connection with our customers.

Demand From a student survey, our team came up with a great solution to a common problem- that if the girls DO find a similar bag, it costs much more than MAJJ bags. If we sell these bags (either at school or the mall) many people would at least stop and take a look. Many of those people would buy them because they are stylish and affordable.

Meeting the Demand To meet the demand of our customers, we have decided to make the products by hand to make the price cheaper. Using gently-used, long-sleeved t-shirts will also bring the price down considerably. In addition, our principal will be letting us sell our products during lunch at school. Our designs will include: zombies, cats, lions, and dogs.

Business Model MAJJ Handbags will work harder than others because we are new to the business field. Not knowing the roads will make us slow down, look at our mistakes, and fix the problems, which will make our products better than they already are.

Profitability MAJJ Handbags has great potential to be a very high ranked profitable organization. We estimate our organization with a year-end minimum profit of $300 after repaying our debts. Most of this will come from school and mall sale Page | 3

profits. If our business comes around, and people start buying more of them, we will start making more designs, recruiting more workers (paid labor), and possible sell them on the internet.

II. Company Overview Mission Statement As a result of providing recycled, high quality, over-the-shoulder bags to ladies ages to at lo er tha our o petitors’ pri es, we will attempt to take in $245 dollar profit after starting sales at our school and the Northwest Arkansas mall during the World Trade Expo.

History MAJJ handbags started as an idea for the World Trade Expo. After each of us realized how much of a demand there was for an inexpensive, environmentally friendly purse, we were determined to find a way to lower the cost. , , , , realized that Northwest Arkansas was the best area to start selling because our area has thousands of girls in school who need a bag that is functional for school and other activities. Right now, MAJJ is beginning to produce samples of our product. We have a method to make the bags, but after looking at the cost of materials, we have each decided to pitch in an amount of money up front to continue buying materials needed for the bags. Putting in the money will cover the first costs for material and other needs to get us ready for the World Trade Expo in November. Demand for our product will be continual because we have only the styles that are i right now and for a low cost. We will stay in the loop on new styles and trends and change our bags accordingly. Our target market will continue with us, knowing our bags have the most stylish designs.

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Objectives and Goals Non-Monetary    

Offer only high quality bags Display our product to our target market Do our best as a whole and encourage the work of our teammates Be selected to participate in the World Trade Expo

Monetary

 Take in at least $245 when the World Trade Expo is finished  Put together $55 of our own money  Continue selling bags after the Expo and make $200 in two months.

III. Product Description MAJJ handbags are stylish and trendy. They come in different sizes like small, medium, and large. MAJJ handbags come in many different designs such as animals and even zombies.

Features and Benefits Our handbags have different features and benefits such as color and type of cloth. We design our bags relating to the most popular fads and trends. MAJJ ha d ags are ade ith fu a d differe t t pes of loth that pop . We e er make any of our handbags identical, so each and every one is unique.

Competitive Advantage MAJJ handbags have an advantage over the leading stores because our prices are much more affordable than stores that sell similar bags. Also, our bags will not fall apart after only a few days. If so, then the customer will get a money back guarantee.

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IV. Market and Competitive Analysis MAJJ Handbags is targeted toward young to middle aged women (about ages 1320) li i g i the U“. Our o petitors’ pri es are i the t e ties, so seei g dollar difference customers will be pleasantly surprised. Soon after they buy the product, they will spread the word to their friends and loved ones. Our product would attract customers because they have bright and trendy colors with unique and fun designs. These bags will also attract animal lovers and trend followers.

Characteristics of Target Market    

Stylish, trendy, Aware of new fads Buying Power Young women

Competitors E e though e ha e se eral o petitors, the a ’t o pete ith our pri es. Most of these competitors are located in the Northwest Arkansas Mall or nearby. Wal-Mart and Target also provide messenger bags with lower quality. Several consumers have tried to create their own bags, to save money. Several internet sites offer bags, with higher cost because of shipping and handling.

V. Management Team CEO, the Chief Executive Officer, was born in Harrison, AR and moved to Farmington in 2008. She goes to Middle School and is in the 7th grade. “he is i ol ed i a a ti ities i s hool i ludi g Builder’s Club and GT. She enjoys reading and volunteering at life ministries. She is currently living with . CMOgoes to Page | 6

, the Chief Marketing Officer, was born in Ashdown, AR. She Middle School and is in the 7th grade. is involved in

a a ti ities su h as Builder’s Clu , soft all, a d figure skati g. “he is urre tl living with . COO, the Chief Operating Officer, was born in Missoula, Montana. She goes to Middle School and is the 7th grade. is involved in many different activities such as band, track, basketball, and GT. She is currently living with . CFO, the Chief Financial Officer, was born in Fayetteville, AR and has lived there her entire life. She is in 7th grade at and enjoys the subject of math. She is involved in school activities such as G.T. and is part of the Dance Team. is currently living with .

Organizational Structure At this time, MAJJ handbags has four employees, all of which are Co-Founders. and make all decisions as a team and respect eachothers opinions. We run this company together treating each-other equally.

Part VI. Marketing Strategies Product

MAJJ handbags are offering handbags as our product. Our target market is adolescents and young to early twenties women. They are made out of recycled tshirts with various designs.

Price Based o our o thoughts a d our peers’ opi io s, e de ided that ith the different designs we would sell our recycled handbags for $7-10. Many of the students and teachers we asked said if they were walking down the mall, they would buy them. Our produ ts are u h heaper tha our o petitor’s pri es. This is possi le e ause e use the ge tl used , lo g-sleeve shirt instead of new shirts. Page | 7

Place We plan to sell and distribute our product through four main outlets. The first place we will sell them is the internet. We feel this will help get our product to be known. We will then start selling it during our lunch at We think by having our classmates buy it, will help spread the word. We will then sell them at our individual churches. If we get in we will sell our product at the Northwest Arkansas Mall.

VII. Critical Risks Strengths MAJJ has strength that allows us to be profitable. We are selling an original product to our consumers. Very few stores have environmentally friendly bags, and if they do, the a ’t o pare to our pri es. Our tea has e perie e working for, or volunteering at other businesses. We have parents and advisors that provide us with guidance to help at every bump in the road. Our peers also let us know what they think would sell well in our community. Weaknesses Because MAJJ is just starting out, we are not very well known. To meet this challenge, we will invest money into advertising. This includes posters, flyers, and business cards. We are also at a disadvantage because there are only 4 of us. We will push ourselves to do our best. Even though big companies have hundreds of employees, we will attempt to compete and make as many bags as we can. Opportunities An opportunity that has become clear, is the big target market at our school and at the Northwest Arkansas Mall. When teenagers notice something attractive with an affordable price, they are willing to buy it. Our handbags are stylish and trendy, something they can show off to friends and family members. Currently, no one has been offering bags to students during school hours, giving our product an advantage.

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Threats Even though we have few competitors, someone could get the same idea and sell it at a well-known store. This could cause other stores to lower the prices of their style handbags in order to compete. New fads could change faster than we can keep up, making our product out of style.

VIII. Funds Required For MAJJ Handbags to begin to produce the product, each MAJJ member will put in a small amount of money. After we get going, and are making profit, we will present our business venture to potential investors (parents and grandparents.) To begin the process of making the bags, we will need certain materials such as an old long sleeve T-shirt (gently used), sewing machine, different cloth, and accessories such as buttons, jewels, and, zippers. Also, we will buy or make table decorations and flyers for advertisement. These will all sport our fun, stylish logo.

IX. Income Statement MAJJ Handbags Projected income Statement For the period ending December 21, 2012 Revenues: Net Sales Cost of Goods Sold Gross Profit

$300 $20 $280

Operating Expenses: Supplies Decorations Flyers Page | 9

$25 $5

Business Cards $5 Total Operating Expenses

$35

Net Income:

$245

Each person from our group put in $13.75 to help pay for supplies that will help us begin making our handbags. We must repay a total of $55 in loans. Cost of Goods Sold is the amount of money that we put directly into the production of our product. This amount includes items such as buttons, trim, beads, fabric, and, gently-used long-sleeved t-shirts, etc. An additional $35 will be used for decorations and advertisement.

X. Break-Even Analysis Expenses/sales Prize of MAJJ Handbags = amount of handbags needed to break-even *$55/7= 8 MAJJ Handbags needed to breakeven Explanation: The amount of $65 is the loan we need from JBU Sife, and the money we need to repay ourselves and/or the people we borrowed from. The original amount for our expenses was a total of $55, but the extra $10 added on is for any unpredictable expenses from the $100 loan from JBU. We think our $7 animal handbags will sell the most, and our $10 zombie handbags will most likely be our smallest sales amount.

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XI.

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Appendix A. Photos of Product...