Diesel Business Plan

BUSINESS PLAN ASSIGNMENT Creating your own brand jeans We be going to hive away a subscriber line whither we with the help of recognized jeans brands all all over the world leave behind give ordinary people a chance of creating their own yoke of jeans, but still primary(prenominal)taining the quality and the status that the specific brand maintain for their customers. We leave basically be a jeans selling store but with a niche that we introduce our customers to custom cultivate jeans instead of the regular aces. We will use the existing bran with its cut, bootleg and design but we will give our customers the chance to choose some of the details themselves.For people who for example unavoid fittingness to deliver a let tabu on jeans which dont have each wear from the original reseller we offer the possibility that at an expert level giving a pair of jeans the wear that the customer wants. Also we will be commensurate to give the jeans another wash if the customer is interested in a light tone of the fabric but in that respect isnt any for sale from the Label/Brand/maker. If someone wants to have any other color or size on the main buttons we atomic number 18 able to provide that, if one wants any other kind of back pockets we are also able to provide that.Someone might want some additional motives or fabrics on their jeans. We will always try to be as flexible as possible and serve our clients in any way that we best tail assembly. Why acidify with Diesel We have chosen to pee-pee with the brand Diesel, because of many factors. We will work with an established brand that has a solid customer brute here in Sweden. Regarding to the survey done by ISI Wissing, Diesel is the anatomy 3 popular jeans brand in Sweden, also it qualifies for the 3rd place when it comes to customer satisfaction.When it comes to development the brand, regarding this survey, it ends on 4th place. And that for us shows that there are opportunities to take this eve n further. Also there is a mentality among younger people that they are loving to the Diesel brand. One of the reasons why, are their outstanding and peculiar commercials. They try to show the brand as very attractive and cool and also with all their variant yields they want to make a valid point that Diesel is something else then all the other brands. Its more attractive and aggressive and its there for the people who know what they want.One of their later commercial campaign are the Be Stupid commercial where they extension their c dole outhes and products to specific people that want to be something else. An example of their commercial is the following quotes refreshed may have the brains, but stupid has the balls. , Stupid might fail. Smart doesnt even try. , Smart may have the answers, but stupid has all the interesting questions, Smart has the plans, stupid has the stories. So these are examples that they really try to have their own onslaught and make something amusing a nd attractive to their customer base.And we think this is one of the things that make Diesel stand out and be an attractive and popular brand to work with. (Willebrand, P, 2007), (Habitat. se, 2009) This type of product we offer is focused on a relatively young, between 18 and 35 years as a textile style, young, dynamic, fantastic and with character. Our tar score is to focus sales in a single product with its own identity, a trend and a reference in the textile market, develop products for a demanding consumer sector, where each product can be distinguished from the rest.This product is so expensive, its focused on one type of consumer with a senior high economic level, but that is why our service is striking, since it is an affordable way to get what the customer as to the characteristics mentioned, lifeing at the market. We dont think that the ingredient with low paying jobs will be that particular interested in our business because we think it will be too a lot money for them to drop on clothes. So our business is rather directed to people who are at the average salary and more.Preferably we contract this customer base in bigger urban cities where there are enough to offer for people being interested in specific branding clothes. What we can see a connection to might be an independent employee or an entrepreneur that already are going their own path and following their own lifestyle, not jump to any specific rules or dress code at their jobs. We also think that people with a specific identity can benefit from this of business venture, if you work at some place where you have a dress code that is suits or jackets for example, you are not able to wear your average muddied jeans, but you still might be a jeans guy.We then offer the possibility to change the color on your jeans to make them look as much as suit pants as possible and so they not stand out and look really different and inappropriate from what expected. An attractive base product Our s ervice is not unique since there are companies like Indicustom and Somconceptshop that gives the followumer the chance to customize their own jeans. But our service offers the customer a new feature in the market of customizing jeans. We want to use an attractive base product and let the customer ad hominemize it.We looked at the other companies that were operating(a) in the same market as us. We understood that we requiremented to concentrate on points of difference the benefits that set our product apart from the competition. Such points of differentiation are, in many cases, what consumers remember about a product. No one of the existing companies that we studied used brand/labeled jeans as the product that you could personalize. So we survey that if we use a well-known brand like Diesel as a base product that the customers could customize the way they personally want them to look but still have the quality that Diesel provides.It would unquestioningly set our product apart f rom the competition. About Diesel Diesel is an international brand, pre move on the clothing perseverance market in over 80 seeries with 5500 points of sale, throughout all 5 continents. In full terms of projected-in the population interested in get clothes and brand accessories is more and more important thats why the companies of the clothing industry have to offer varied products to boost their sells and their fame. The brand sells close to 3000 products from the basic pair of jeans, to the bags, belts and the house furniture.Diesel also owns 200 companies and having partnership with 100 local anesthetic distributors, such as LOreal, Ford or Adidas. The main goal is to be everywhere geographically, in different strategic areas, expanding, in that way, their international presence. Concerning the sales and profits, the company realized a revenue of 1,2 billions en 2008, 80 millions in France. But even with these good results the revenue global of the group doesnt really know a huge growth and on the reverse decrease of 3. 5% in 2009, whereas there was a rise of 3% in 2008.Then, even if the company has a healthy monetary position as its campaigns, its results and its growth shows there is no extra revenue since 5 years. Thats why we decided to create this personalize service. (Pavarini, M, 2010) Tailored e-commerce in Sweden Tailored e-commerce is on the rise if you ask the CEO of Tailor store. He expects an annual growth of 30 percent because the distance trade is on the rise and growing blistering than the regular store trade. Tailor livestock had a sales report of 40 million last year and reported a profit of 5 million after net financial items.He thinks the reason of the success is because consumers have benefited greatly by including the ability to investigate and compare the products of a larger roam of products and services that can be purchased at any time and from anywhere and a greater opportunity to get more customized products to satisfy personal needs. And e-commerce is getting popular in the hale of Sweden 28 billion in turnover was from distance trade, e-commerce and mail order, in 2010. If you look at the numbers you can see that it has been a doubling in sales in the last five years and today it represents 4. percent of the total retail sales. (Melkersson, E, 2011) Competitors When we look at the biggest competitors its hard to say who will be the biggest competitor for our business. Obviously every brand will be a competitor since we will precisely work with Diesel, also other stores who sell Jeans will also be a competitor to us and in Sweden especially Brothers & Sisters, JC and H&M are big competitors. Also companies who sell other brand that are big will be a competitor for us, such as resellers for Lee who is number one in Sweden and Levis which is number two.But if we focus specifically on our distinction from the other resellers, the custom made part, we think that companies like Tailor Store will be a big competitor for us. A company that already made themselves a name on the market of custom made clothes, even though they are not only limited to specific brands. If we look in to the sector with custom made clothes a lot of them are not resellers and dealing with bigger worldwide brands. Its often some smaller brand which they import and give people the opportunity to make changes to.Here is where we have a problem identifying any specific company that are selling luxury brand jeans, designer jeans, with the opportunity for the customer to have the jeans custom made after their wishes. If we look at the jeans market here in Sweden it has suffered from a little fallback. About 15 million pair of jeans is sell in Sweden every year. And the competition from companies like H&M, Kappahl and Lindex are getting bigger at the cost of specialized jeans resellers revenue. (Willebrand, P, 2007), (Habitat. se, 2009) External Factors modify A noteThere are a couple of external factors we are looking into when it comes to how they can affect our business 1. GENERAL ECONOMIC AND INDUSTRY CONDITIONS Any general economic, business or industry conditions that cause customers or potential customers to reduce or delay their investments in the jeans industry could have a negative import on the companys strength and profitability. Currently, the world economic conditions had a bad and considerable impact on every commercial fields of the society, and the jeans industry couldnt escape from that either.Trying to launch this custom made project can be profitable for us, of course, but with that we will also try to help in a way the Diesel company. 2. COMPETITION The jeans industry is highly competitive. The intense competition inherent in the industry could result in the divergence of customers or pricing pressures. 3. LOCAL ACTIVITIES The companys future growth rates and success are in-part dependent on continued growth and success in local market at first, as well try to o pen the custom made project worldwide after studying the results in Sweden. (Essays. cc, u. d. ).The Swedish economy emerged from the financial crisis as one of the strongest in Europe. A high-tech local economy and a comprehensive system of welfare benefits allow Sweden to enjoy one of the highest standards of sustainment in the world. Sweden has one of the most globalized and competitive economies today. GDP is expected to increase by 4% in 2010 and by 3. 7% in 2011. The welfare has been able to be maintained because of the high tax levels, even if they recently have begun to decrease. Also, concerning government regulations, Swedens economic freedom score is 71. it appears that the overall regulatory and levelheaded environment, transparent and efficient, encourages robust entrepreneurial activity. (Traveldocs. com, u. d. ). 4. SOCIAL FACTORS The profit margins realized by the company vary somewhat among its products and its customer business units. Like we said earlier this custom made opportunity that we are going to submit to Diesel is a product to a narrow customers base (18-35 years), and they maybe dont have the possibility to pay this kind of services. Thats why we are trying to make an arrangement with a company like Diesel who stick around affordable. . TECHNOLOGICAL CHANGES AND PRODUCT TRANSITIONS The jeans industry is characterized by continuing improvements in fashion and design which result in frequent introduction of new products, short product life cycles and continual improvement in product price/design characteristics. 6. INVENTORY MANAGEMENT/SUPPLIES The companys ability to manage its inventory has been enhanced by approbatory supply conditions in the industry. The companys manufacturing mold requires a high volume of quality components that are procured from third party suppliers.The six external factors highlighted in this paper are identified as primary factors in this industry (Essays. cc, u. d. ) Enterprise resource planning an d organization First of all we have to have our wholesale to taint the jeans from, we obviously by our jeans from a supplier since its a specific brand that we will be using. We need a workstation where we do our tweaks on the jeans, since we will do the tailoring in-house and not outsourced. Meaning we will have a department changing buttons, sawing on new pockets on the back of the jeans, wearing them and lavation them.We will buy the raw jeans models from Diesel and all the tailoring we do will be done in-house. This way we get a overview over the whole process and we will be able to overlook it and see what works and what does not to be able to make changes and develop our working process and expand. In long term we possibly would like our tailoring to be outsourced as well but then we have to get a lot of bigger volumes and sales. Our company needs to be of a local medium proportion, after asking prices we have chosen an office in the center of Linkoping, over 90m2 storage warehouse 100m2.The rental price 1000 per month. Costs of production / initiation of the company Machines and information processing system products Manufacturer Units Euros Sewing Machine 2 1000 Washing motorcar 1 1000 Mac Pro Apple 1 1200 Jet color laser multifunctional printer Hp 2 750 Textil Studio 8 Macromedia 1 480 Quark Xpress 6. 1 Passport Diseno Quark 1 2. 200 Norton Internet Security 2007 Antivirus Symantec 1 60 Total 6. 990 Furniture Product manufacturer Units Euros Computer table ERISTER IKEA 4 520 Chair STEFANO IKEA 4 320 shelf FJUS IKEA 4 400Chairs IKEA 4 80 filings IKEA 4 180 Ceiling fluorescent bars IKEA 6 180 Total 1. 680 Total computer equipment and furniture company Computer equipment 6. 990 Furniture company 1. 680 Total 8. 670 Telephone rental and adsl Local callsADSL Internet 10MG 40Per month Production process of our company First Phase In the first instance, we take care of developing the product design, according to the specifications and style t hat the customer provided to us. We need the measurements of the client to make the program design Textile Studio 8.Second Phase Then perform the design by computer program, the design is sent to our textile machinery in the warehouse where the design is recreated in the pants, is embroidered, sewn and glued, additional accessories or tweaks that you must do the product. Third Phase. In third phase, the products pass an exhaustive examination of tissue and finishes, in order to verify that the product is done with the selected design and has no damage. Distribution Our field is nationwide, with an eye to expanding our international infrastructure over the medium term.As our company turnover grow fence on the market performance will be broader. The distribution is provided by our company is an outsourced process by which we have a freight agreement with the company MRW light which provides an optimum distribution at a reasonable price, short and medium term by increasing our relatio nships grow if our trade with other countries. The cost of distribution affects the final price, so that the customer pays, revenue is recorded in the product itself. selling (advertising)In the field of marketing, the company will open a website with a catalog of examples, price list, contact, and an application through which you can perform orders. We have approximation hiring advertising space in newspapers to national newspapers, the expenses are high, we will follow up weekly to see the number of people responding to advertising, if it is positive we will find these services. Also we will do advertising in social networks, starting a group of our company, our website advertising, adding to people that this profile for potential buyers to our profile social. So as included in online media websites such as www. undoanuncio. com. Regarding marketing we will also try to use SEO(Search engine optimization) as much as possible to get more hits when our possible customer base browse the web and search for companies that does custom made clothes. Implementation Plan We need to contact Diesel / a Wholesale to be able to secure our purchases of the Jeans. We need to establish a workplace where we change the Jeans into the customers wishes. Since our main sales channel will be via the internet we need to establish a homepage with the possibility to tailor your jeans and also a web store on the homepage so our customers can buy the jeans they want.We have to get some it-system that will be able to trace our orders and the specific changes the customer wants so we can make them and then ship them out to our customer. Activity COMPLETED OR UNDERTAKEN in RELEVANT Quarter OF 2011-12 Development Finding investor interested in investing in the business. 2011 Q1 Attaining the site for thebusiness and making any needed physical developments 2011Q1- Q2 Proof-of-concept development. Need to develop a prototype for the investors to see. 2011Q1- Q4 Marketing Choose our tar get market, the group of customers we want to target 2011 Q3 Plan how to reach and address your customers, with specific measures coveringproduct design, pricing, distribution and communication 2011 Q3 Q4 Promote the service to potential investors and buyers. 2011 Q42012 Q2 Management Recruit personal for the development of the service. 2011Q1- Q4 Training of personnel 2011Q1 Q3 Forming a team 2011 Q32012 Q2 fiscal plan First of all our initial cost for our company is the cost for starting it up and register it as a incorporated company and for that cost we calculate 7000 euro.Next up is our warehouse and office with its equipment needed. For the first month we need the capital for investing in our equipment that we estimate to 8700 euro. aft(prenominal) that we will have cost for our rent and staff, also for our purchases and a onetime fee to our web developer and a cost for every time we need to modify our website. We estimate that the web developers onetime charge wou ld be about 10000 euro. Our rent will be 1000 euro with a down payment for 3 months. Also we have a OTC for the officer and warehouse for 500 euro.That would mean that our total initial cost would be 29200 and we count with a big miscalculation so we would say 30000 as initial cost. Our monthly cost will be Rent 1000 Telecome 40 Salary 3000 for 1. 5 fulltime employee Utilities 500 Distribution 500 Raw Material 50/jeans +5-15depending on what customer choos to add to the jeans Promotion 2000 Other expenses 400 That would be a total of 7500 in monthly expenses but also a additional part depending on how many jeans we manufacture gross sales forecast We think that we can start with selling 75 pair of jeans the first month, meaning 2,5 jeans per day.And then we count with an increase of 10 % per month. Our price range on the jeans will be 120 200 and we have counted with an average price on 140 per pair of jeans We count with an increase in sales as soon as our website is up a nd running and getting some regular visitors and that they spread the word. Also it will take some time for our promotional material and marketing to get effective What we would like to offer our investors are 20% of the shares in our company for the price of 15000 , the rest we would make up as a loan from the bank with a low mortgage and try to pay only the interest.Bibliography Melkersson, Erik (01-04-2011). Skraddarsydd e-handel pa frammarsch, www. hd. se. Avaible at http//hd. se/ekonomi/2011/04/02/skraddarsydd-e-handel-pa/ 13-10-2011 Willebrand, Peter (16-08-2007). Jeansjattarna haller greppet om svenskarna, www. resume. se. Avaible at http//www. resume. se/nyheter/2007/08/16/jeansjattarna-haller-grepp/index. xml 10-10-2011 Habit. se (17-12-2009). Jeansmarknaden tappar fart, Habit. se. Avaible at http//www. habit. se/iuware. aspx? pageid=1780&ssoid=11250412-10-2011 Pavarini, Maria (07-05-2010).DIESEL NAMES NEW CEO, RESTRUCTURES ONLY THE BRAVE, www. sportswearnet. com. Avaible at http//www. sportswearnet. com/businessnews/pages/protected/DIESEL-? NAMES-? NEW-? CEO-? RESTRUCTURES-? ONLY-? THE-? BRAVE_2503. html 12-10-2011 Essays. cc (u. d). External Factors Affecting A Business, www. essays. cc. Avaible at http//www. essays. cc/free_essays/b2/utv218. shtml 09-10-2011 Traveldocs. com (u. d). The Swedish economy, www. traveldocs. com. Avaible at http//www. essays. cc/free_essays/b2/utv218. shtm 07-10-2011