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Neodress Boutique Shop.

1.0 Executive Summary
Neodress Boutique Shop is a new apparelstore that caters to the Bangladeshi people. Asour
name suggests our focus is to provide customized wear apparel andaccessories, and position
ourselves as the top retail store servicing thisparticular market.
Ourintentions are to obtain market share and become a central hub of shoppingactivity for the
local population as well as Non resident Bangladeshis (NRBs)who enjoy wearing fashionable
apparel.
Neodress Boutique Shop will be located atSubid Bazar. Neodress Boutique Shop has centralized
itself directly inposition to the residential location and social activities of our targetmarket. We
believe that this is critical to our initial success and long-termgrowth.
Highlights

1.1 Objectives
1.To create a shopping environment that caters to theapparel needs of the local people as well as NRBs.
2.To receive a 50% profit margin within the first year.
3.Tohave a customer base of 1,000 by the end of the first operating year.
4.To create employment opportunity.
5.To conserve and uphold culture and valuesby providing domestic products to NRBs.
6.To generatescope for enhancement for related industries like those who provide the
rawmaterial.
1.2 Mission
NeodressBoutique Shopsmission is to offer quality, name brand accessories and clothing in
anassortment of sizes and styles to accommodate varying styles and shapes.
1.3 Keys to Success
In orderto succeed in the boutique industry Neodress Boutique Shop must:
Provide customers with top notch personalized customer service in an atmosphere of
Bengali hospitality.

Carry an assortment of sizes to fit the more ample frames of their target customer base.

Advertise and promote in areas that target customer base will learn about the store.

Continuously review sales and adjust inventory levels accordingly.

2.0 Company Summary
NeodressBoutique Shopis organized as a partnership among the seven partners of Deepankar
Lal Das,Abdullah Al Monsur, Shahin Miah, Marzia Moni, Maksuda Bagum, Munim Ahmed
andTahsina Haque Simu.

We will belocated at Subid Bazar, Sylhet being the epi-center of the Sylheti community.
The hoursof operation will be Saturday - Thursday 9 a.m. - 9 p.m. and Friday 10 a.m. - 12
p.m. There will be extended special hours designatedduring The Festivals like Eid-Ul-Fitr and
Eid-Ul-Azha, and New Year.
Allmerchandise will be purchased according to the company's mission and customerfocus of
outfitting all sizes.
2.1 Company Ownership
Neodress Boutique Shop is organized as apartnership among the seven partners of Tahsina
Haque Simu, Deepankar Lal Das,Abdullah Al Monsur, Shahin Miah, Marzia Moni, Maksuda
Bagum, and Munim Ahmed.Everyone will handle the administrative and managerial duties on
rotation.

2.2 Start-up Summary

Neodress Boutique Shops incorporationcosts are listed below. The company will start with three
months inventory onhand for apparel and accessories as this is the main revenue generator.
Themajority of the company's assets will reside in inventory. The opening dayscash on hand
balance will be $384.
The financing will include an ownersinvestment of $5,100.
Start-up
Start-up
Requirements
Start-up Expenses
Trade License
Grand Opening Event
Telephone & Utilities (3 months)
Infrastructure Development
Store Fixtures/ Decorations
Factory
Staffing and Recruitment
Advertising & Promotion
Raw material collection
Purchase of Machinery
Installation Cost
Business/Office Supplies/Stationary

Tk.1, 000
Tk.10,000
Tk.1,500
Tk.150,000
Tk 20,000
Tk.20,000
Tk.15,000
Tk.70,000
Tk.90,000
Tk.10,000
Tk. 1,000

Accessories (Dices, Frames)

Tk.10,000

Tk.398,500

Total Start-up Expenses

Note: It will take 8 weeks to prepare for and start the venture.
Balance Sheet

AMOUNT
Assets
Machinery
Less: Depreciation
Cash
Accounts Receivable
Inventory
Total

Liabilities
100,000
19,000
81,000
393,000
157,200
100,000
731,200

Capital
Add: Net Profit
Net Worth
Creditor

Amount
386,000
195,200
581,200
150,000

731,200

2.3 Company Locations and Facilities

Neodress Boutique Shop will be located atSubid Bazar in Sylhet. This space has 1,200 square
feet and has been rented fortwo years. This location is central to the geographical location for
thesylheti community. We feel it is essential to our initial and ongoing successthat we locate
ourselves in the heartbeat of the community. We also strive tocreate an atmosphere of
acceptance and community, as well as a retailenvironment where individuals can identify and
bond with their culture.
Allbusiness deliveries will be handled through the showroom. The factory is nearbythe
showroom so no extra transportation cost will be needed to bring theproducts from the Factory
to showroom.
3.0 Products
Neodress Boutique Shop will carrytraditional wear brands. The greatest percentage of
merchandise will be inapparel, followed by accessories, and gifts.
Managementwill rely on customer feedback, suggestions, and sales reports to introduce
oreliminate certain brands, styles and sizes.

Saree
Salwar Kameez
Kids' Item
Bed cover
Cushion cover
Curtain
Others
3.1 Competitive Comparison
NeodressBoutique Shophas a number of advantages that will allow us to build our brand
identity, addvalue to our merchandise and build a loyal customer base while standing apartfrom
our competitors.
1.The'Neodress Shopper Card' will entitle customers to a 15% discount after tenpurchases.
2.Wewill offer clothing to fit plus size for all.
3.Wewill create a sense of culture and bonding with the community by offeringproducts that
combine both the culture and innovation.
4.Ourlocation is central to our target customer base.
5.Wewill maintain a detailed record on each customer, logging addresses, theirpurchases, size,
and brand for customer follow-up and in-house promotionalpurposes.
3.2 CommercialViability
1.The plan is asound one because it will create employment opportunities as well as
providingscope for related industries.

2.There is a hugedemand for clothing, as these items reflect ones personality and status.
3.The plan isacceptable as there will be no environmental degradation.
4.The investment cost is comparatively lower.
5.The employeesrequired for the project are few in number and available.
6.As theinvestment is lower the risk associated with the plan is also low.
3.3 Sales Literature
NeodressBoutique Shopwill use a targeted advertising and sales program to generate publicity
andbuild a customer base.
1.500 full-colorpostcard flyers with a 10% coupon will be distributed throughout Sylhet
twoweeks prior to the grand opening event.
2.100 grand openinginvites will be mailed to potential new customers two weeks before the
grandopening in June, 2008. The invitation will also include a promotional 10%coupon off a
customer's first purchase. The customer mailing list has beencompiled from contacts the owners
have made while in the community.
3.4 Sourcing
We willshop for our merchandise as outlined below:
1.Withrenowned fashion houses like Aarong who have regional representative andshowroom
located at the Center, we will place our weekly and monthly reorderswith them and review new
materials.
2.September 2008 is the Eid-Ul-Fitr, thelargest festival for Bengali people and apparel featuring
the latestcollections of all brands will be presented. All orders will be placed bearingEid in mind.
Wewill also work to solidify our relationships with sales representatives andvendors so that we
may achieve decreased cost of goods. Our competitors, (bothdirect and indirect) purchase from
the same sources and we believe that throughmarketing programs and strategic alliances we
will begin to gain a competitiveadvantage.
3.5 Technology
Retailapparel establishments have a tendency to have a high number of
level of inventory. It is imperative that an advanced inventory andpoint
utilized to maintain stock levels and track sales.
Ourbusiness plan will be generated and reviewed on a bi-annual basis and
ensure all financial goals and objectives are being reached. Itwill allow us
our limited marketing budget by focusing ourcommunications on our
enhancing our marketing knowledge.

SKU's becauseof the

of sales program be
reviewedquarterly to
to make the most of
target markets and

3.6 Future Products

As weachieve and exceed our sales and profitability goals, Neodress Boutique Shopwill add
other products to the product line and our own personal in-house labelof clothing that will
include Neodresst-shirts for women and shirts for men. Wewill expand our line of brands with
those that have been repeatedly requestedby our customers. An e-commerce website will also
be created to increase ourdistribution channels and expand our customer base to a national
level.
4.0 Market Analysis Summary
Theprimary target customer of Neodress Boutique Shop will be the localpeople in the Sylhet
region. As we are situated in the epi-center of theresidential community we believe they will
make up the largest percentage ofour customer base.
Thesecondary target customers are the NRBS. As the Nonresident populationcontinues to grow
rapidly in various parts of the world we expect to receivethe patronage of them as they are very
loyal to Bengali apparel.
Thelast target customer of Neodress Boutique Shop is listed as other. Aspopularity about the
store increases we expect to see an assortment ofcuriosity seekers as well as seasonal
purchasers during festival season.

SWOT analysis

Strength
1. Premium pricecharged to reflect innovation and creativity.
2. High quality rawmaterials are collected from renowned fashion house.
3. Timely delivery forordered products.
4. The location of theshop is very much favorable.

Weakness
1. Being a new entrant is one of theweaknesses of the boutique shop.
Opportunity
1. A partiallyfulfilled customer need is a great opportunity for the shop.

Threat
1. Increasing market price of rawmaterials and labor.
4.1 Market Segmentation
Thepopulation of Sylhet is concentrated heavily in the southwestern part of thecity therefore
leading to the highest concentration of our customer base.
Thelast area of potential customers is labeled as "other." Because NeodressBoutique Shopoffers
a variety of innovative and creative apparel, alongwith accessories and gifts we feel that we will
attract many curious shoppers.Our ambience and customer service will make them repeat
customers.
Market Analysis
2008
Potential Customers

Growth

Local People
NRBs

10%
15%

Other

10%

Total

35%

4.2 Target Market Segment Strategy

Thegoal of Neodress Boutique Shop is to serve the local community that hasdifficulty finding
innovative clothes. It will also serve the NRB community.
Bothof these markets are underserved in the major boutique retailer outlets.
4.2.1 Market Needs
Thereare several important needs in the boutique business that are being eitherunderserved or
not met at all. Neodress Boutique Shop plans to meet and servicethose needs.
1.Neodresswillprovide a large assortment of sizes to compliment the various body shapes
andsizes of the local community.
2.Focusand attention to customer's personal preferences and customer retention will begiven
high priority. Because of the high rate of employee turnover at majormass retailers, customer
service and personal detail has been lost.
4.2.2 Market Trends
Millionsof people around the world instantly recognize and identify with traditionalapparel.
Ourtraditional clothing has survived many eras. There will always be a future fortraditional
apparel. Within the last two years the traditional look has made acomeback in the fashion
industry. Neodress Boutique intends to use its place inthe community to heighten the awareness
of the Bangladeshi culture in SubidBazar, Sylhet.
With theincrease of participation by NRBS in the international affairs more people arebecoming
aware of our products all over the world.

4.2.3 Market Growth

Marketgrowth is in an upward motion, despite some of the latest economic downturns inour
country. Now a days, Sylhet has become a center of economic and culturalactivities because of
the establishment of various educational institutions andother organizations. People from other
areas are coming to Sylhet for study orjob purposes. Moreover the number of working women
are increasing in the citywho are very much concerned about their attire. Sylhet has also been
designatedas the city of natural beauty in the country. Every year So many tourists arecoming
to Sylhet for trade and tour purposes.
Forthese reasons and more, Sylhet is considered an economic leader in Bangladesh.The number
of NRBs from Sylhet region are more than half of the total from Bangladesh.

4.2.4 Industry Analysis

Boutiqueshops fall within several kinds of stores:
Small Speciality Stores: The majority of boutique is sold through small family-run
specialty stores that are located in or near neighborhood communities. Dhakaboutique is an
example of this type of store.
Large Multi-owned Retailers: These large stores mass market and sell to hardcore
enthusiasts as well as the local tourists and seasonal purchases. Examples include She.
4.3Main Competitors
Neodress Boutiqueshop has competitors within a 15 miles radius of its location.
She, which is located approximately 2.1 milesfrom our location is our closest competitor. It is
one of the largest apparelstores in the city of Sylhet.They sell basic wear apparel and jewellery,
gift item and cosmetics to the massmarket. Because of Shes size they have a large percentage
of the market share.Locating plus size clothing for women can be extremely difficult. They
alsotend to be a bit behind the market in offering more contemporary innovativestyles. Because
of its size they have also lost some of their customer serviceskills as employee turnover is high.
DhakaBoutique,located approximately 3.3 miles from our store. It combines the atmosphere
ofTaradin restaurant with shopping. They offer an eclectic mix of apparel,grills, cookware, and
gift items. They don't do any advertising or promotionsof their retail outlet so if a customer
doesn't visit Taradin restaurant hewouldn't know about the retail establishment.
Manorom, is approximately 12.1 miles from Neodress andis the farthest of the three
competitors. It is a family-owned apparel with twostores. Their customer base tends to be more
upscale as they carry more of thehigh end labels like Gucci and Armani. They also carry
housewares and beddingitems of which She and Dhaka boutique does notcarry.
5.0 Strategy and Implementation Summary
Neodressboutique shops goal is to provide apparel to the under served market of thecommunity
who desires differentiated cloths. The major boutiques have left ahole in this market by not
providing differentiated products by focusing oncustomer preferences.
Ourintention is to gain 60% of this market share by focusing on our nichepositioning,
neighborhood location, brand that we sell, hospitality and specialpromotions.
5.1 Competitive Edge
1.
The Neodress Shopper Card which allows the customer a 15% discount after ten
purchases.
2.

Our location in the community will offer closer access to our target customer base.

3.

We will offer plus sizes for women.

5.2 Marketing Strategy

Ourmarketing strategy will focus heavily on sales promotion, niche positioning inthe market and
customer service with loyalty and retention in sales.
1.The marketingbudget will not exceed 5% of our gross annual sales.
2.Our promotionswill always stay in tune with our company objectives and mission statement.
5.2.1 Positioning Statement
Forthe more full-bodied individual seeking creatively designed apparel, Neodresswilloffer brand
traditional wear in a larger assortment of styles and sizes thataren't always readily available in
the mass apparel retailers.

5.2.2 Pricing Strategy

Neodresswill maintain a premium pricing strategy. We base the product lines that wecarry on
their reputation and quality as clothing. Most of our lines come witha suggested retail price that
we will follow. We will also utilize the standardpractice of keystoning as well.
5.2.3 Promotion Strategy
Neodressboutique shop will follow an aggressive yet creative promotional plan. Thiswill allow us
to focus directly on our target customer while still beingconservative with our advertising
money.
1.A press releasekit will be sent to all major media outlets in Sylhet highlighting the
grandopening of the shop in the city. This kit will include a press release,pictures of the interior
space, color postcard/flyer, and a business card.
2.500 4x5 colorflyers/postcards will be distributed throughout the city at local clubs,colleges
and universities.
3.A direct mailprogram that will further focus on and target the top 50% customer base
withspecial in-house sales and promotions.
5.2.4 Distribution Strategy
Our retail location will be the foundation of building our customer base. Wewill also manage a direct mail
program that will focus on our top 50% customersspotlighting any in-house sales and promotions.
5.2.5 Marketing Programs
Ourmarketing programs will consist of the distribution of 500 color flyers twoweeks prior to our
grand opening event.
5.3 Sales Strategy
We will offer a 14day return/exchange policy to build trust with our customers and
maintainretention and loyalty.
5.3.1 Sales Forecast
Thefollowing table and chart give a highlight on forecasted sales. We expect salesto start off
conservatively and increase extensively during the Eid holidayshopping season and during the
months of summer.
Neodress hasplanned for a steady growth for the first year as we build name recognition
andstatus in the community. In the second and third year we look to see anincrease of revenue
of 20% as we gain a larger percentage of the market shareand increase our customer base
beyond the southwest part of the city.
Itemwise Sales by 1st Year

Item
Saree
Salwar Kameez
Kids' Item
Bed cover
Cushion cover
Curtain
Others

Revenue (tk)
180,000
220,000
85,000
60,000
78,000
62,000
15,000

6.0 Management Summary

Employeeswill be encouraged to work within their creative, physical, and intellectualboundaries.
All duties will be divided and delegated according to strengths andweaknesses. At Neodress we
will expect a high degree of customer service skillsand personality as this is essential to our
success.
6.1 Organizational Structure
Neodress BoutiqueShop is a small business and therefore requires a simple
organizationalstructure. All decisions are made in-line with the company objectives.
Employeetasks are delegated based upon their level of expertise, creativity, strengthsand
weaknesses.
6.2 Management Team
Allpartners will be responsible for all administrative functions, purchasing,inventory control, and
promotions. They will also act as a part-time sales representative.
6.3 Personnel Plan
Thepersonnel plan is included in the following table below. There will be sixfull-time employee
and two part-time employees working 20-30 hours per week.All employee's will benefit from a
one day paid holiday on their respectivebirthdays and one week of paid vacation after twelve
months of employment.
At thistime medical benefits will not be offered to employees. As profits increase inthe future
medical benefits will be offered to all employees.
Personnel
FY 2008
Full-time position

Tk. 40,000

Part-time position

Tk.8,000

Total People

Total Payroll

Tk.48,000

7.0 Financial Plan

The growthof Neodress Boutique Shop will be moderate and the cash balance will always
bepositive. Being a retail environment we will not be selling on credit. We willaccept cash. Later
we will accept checks, and all major credit cards. Marketingand advertising will remain at or
below 5% of sales. We will continue toreinvest residual profits into company expansion, and
personnel.
7.1 Important Assumptions
Neodress doesnot sell on credit nor do it offer layaways at this time. We accept cash. Allsales
revenue will be deposited in our business checking account within 48hours. Our business
checking account will be with HSBC Bank.
7.2 Key Financial Indicators

Thefollowing chart shows the benchmark figures for Rongdhonu.

Benchmarks

7.3 Break-even Analysis

A break-even analysis table has been completed on the basis of averagecosts/prices. With fixed costs of Tk.
280000, and sales of Tk. 700000 we needtk. 576488 in the first year in sales to break even.

Fixed Expenses
Showroom
Factory
Machinery
Installation Expenses
Preliminary Expenses

150,000
20,000
90,000
10,000
10,000

Total

280,000

Calculation ofBreak Even Point

Sales
Variable Cost
Fixed Cost
Contribution Margin
Contribution Margin Ratio

700,000
360,000
280,000
340,000
0.4857

Break Even Sales

576,488

Break-even Chart

7.4 Projected Profit and Loss

Thefollowing chart and table will indicate projected profit and loss.
Profit Yearly

Income Statement
Sales
Saree
Salwar Kameez
Kids' Item
Bed cover
Cushion cover
Curtain
Others

180,000
220,000
85,000
60,000
78,000
62,000
15,000

700,000

Less: Cost of Goods Sold

Direct Material
Direct Labour
Factory Overhead
Factory Rent

206,000
144,000
10,000
24,000

384,000

Gross Profit
Less: Operating Expenses
Showroom Rent
Staff Salary
Maintenance Expenses
Utilities
Stationary
Depreciation
Advertising Expenses

316,000
120,800
36,000
48,000
4,000
4,800
3,000
19,000
6,000

Net Profit

195,200

7.6 Projected Balance Sheet

Thefollowing table explains the projected balance sheet.

AMOUNT
Assets
Machinery
Less: Depreciation

Liabilities
100,000
19,000

Cash
Accounts Receivable
Inventory

81,000
393,000
157,200
100,000

Total

731,200

Capital
Add: Net Profit
Net Worth
Creditor

Amount
386,000
195,200

7.7 Business Ratios

Businessratios for the year of this plan are shown below.
Current Ratio
4.33
Liquid Ratio
3.00
Inventory Turnover
3.84
Total Asset or Capital Turnover
0.96
Net Profit Margin
0.28
Return on Investment
0.26
Return on Equity
0.51

8.Risk Management
The risks thatmay occur in this project are:
1. Pure Risk: Therevenues and cash inflows of the project may be lower than the expected
indifferent years.
2. Systematic Risk:Political changes may hamper the production of the project.
3. Unsystematic Risk:Workers may go for strike, which may hinder production process.
4. Market Risk: Macroeconomic factors like inflation can have an impact on the project
andfluctuation of demand. Cost reduction and increased production may be a way outbut it will
become difficult to maintain quality.
5. Instrumental Risk:The machineries may go out of order any time. So the business runs the risk
ofmachinery shortages.

9. Conclusion
The plan for the boutiqueshop has been designed bearing the demand for innovative
clothing in mind. Sucha plan is also judged financially and market projections are included.

581,200
150,000

731,200