Business Plan
- Abstract
This is a business plan for Dalnim, a firm that sells ladies business suits at downtown Manchester City. The business plan gives a brief background of the firm, its target market, competitive advantages, how the firm will conduct customer needs analysis, the firm’s competitors, pricing policies and other marketing strategies the firm will adopt to achieve sustainable profits and growth.
- Background Information
Dalnim, a sole proprietorship firm, was established ten years ago in the year 2003. The firm is located at down town Manchester City where it sells ladies business suits. With a staff establishment of three support staff and one director, the firm is set to meet its customer’s needs and continue growing.
- Target Market
The fashion industry is very dynamic but Dalnim has maintained its specialization in selling ladies business suits over the years. The target market has always been middle income professional ladies aged between 21- 52 years in formal employment. Majority of these customers give a keen interest to their dress code and appearance. The firm’s location and business name has potential to access over 120,000 market customers under the target category at estimated revenue of USD 200,000.
- Competitive Advantages
A recent competitive analysis conducted last year identified gaps in the market that can be used as a basis for the firm’s source of competitive advantage. Currently, dressing appropriately to work for ladies is considered a good attribute. It is anticipated that Dalnim’s competitive pricing and tailor made suits for various customers will encourage both the existing and potential customers to make Dalnim a frequent stop in their search for women business suits. Further, the Dalnim will achieve competitive advantage through providing quality suits through careful selection of materials and investing in modern machines that have minimal rework rates and top notch finishes. The firm will make deliberate efforts to achieve rapid delivery of its customer’s orders better than its competitors. In the day to day management of Dalnim, given that the proprietor is a graduate from fashion school and has a broad experience in designing and tailoring shall be a competitive advantage because of her unique designs that have continued to attract new customer during annual exhibitions. The firm will not need to hire a designer.
- Customer Needs analysis
The fashion industry is very dynamic and Dalnim appreciates this fact too. To ensure that new suits are designed to meet the changing trends in fashion, the firm will invest in a structured customer needs survey to be undertaken quarterly. The firm will achieve this through use its customer data base by sending questionnaires through email on how best its suits can be improved. The feedback obtained will then be used as a basis during design. The firm shall then organize for quarterly exhibitions where newly designed suits will be displayed for sampling and sale at a discounted price. During these exhibitions, more feedback will again be sought from the customers on the new designs and improvements to be made. Further, Dalnim, will make deliberate efforts to attend fashion exhibitions with a view to gather more information on the fashion trends. This approach will indeed provide a reliable customer needs analysis.
- Competitors
Dalnim does not exist in isolation. It has been experiencing competition from other several established firms in the fashion industry located in Manchester City. The total fashion industry market is estimated at USD 2,000,000 annually and Delnim commands 10% of this market share. The strength of the existing competitors has been their wide product ranges, broad financial base, large exhibition rooms, wide promotional approaches and investment in research to develop new products. Their weaknesses have however been lack of specialization, hiring of designers at a very high costs and delays in decision making due to the bureaucracy in their structure. Given its ownership structure, tailor made suits and a dedicated staff with minimal operational costs, Dalnim has potential to grow its market share at an average growth rate of 1% per annum so as to reach the targeted 20% in the next ten years.
- Pricing Policy
Dalnim has in the past maintained a high quality, high price strategy which has proven successful for quite some time now. However, the expansion of the market size has been slow because of the high prices. The target middle income earners who could wish to try Dalnim’s products find them a bit expensive. This scenario requires change of pricing policy by cutting down the prices so as to meet the needs of the growing potential customer base and maintain a competitive position in the market. Dalnim therefore faces the task of building up a favorable price image while sustaining its average margin profitable.
- Other Strategies to be adopted
Any firm that intends to succeed in its marketing efforts must adopt and invest in some specific strategies that give their firm a competitive edge over their competitors. Dalnim intends to adopt the following three strategies to achieve their marketing goals.
- Promotion Strategy
In advertising its products, Dalnim has been advertising its products through print and electronic media. This two means have indeed been effective and less costly in the past. There is need however to diversify its promotion strategy so as to reach out to the expanded market share. The firm will therefore diversify its promotion strategies so as to include instore displays targeting the potential customers who stop by when walking the streets. Use of internet application like opening a web page and face book page for Dalnim so as to advertise widely.
- Distribution Strategy
Distribution offers a feasible solution in striking an optimum balance between physical distribution costs and the customer service level. Since the customer is satisfied when they receive the products, Dalnim adopt a centralized distribution strategy whereby customer orders are consolidated, packed and dispatched through door to door delivery within 24 hours of receiving an order for customers within the suburb of Manchester City. This is achievable through partnership with the current courier service provider and dedicated support staff.
- Service Strategy
Service is the most delicate part of Dalinim’s marketing strategy because unlike tangible products, customer satisfaction largely depends on the customer perception. The service strategy to be adopted shall be anchored on efficiency in delivering customer orders as promised in the firm’s marketing motto, addressing customer complaints adequately and promoting honesty among its staff in dealing with customers. The firm will also offer training to its staff on customer care so as to have the best customer care when compared to competitors.
References
Bose, C. D. (2002). Principles of Management and Administration. New Delhi: Prentice Hall of India.
Mc Carthy, J. & Pervaleut, W. (1994). Applications in Basic Marketing: Clipping from the Popular Business Place. Massachusetts: Irwin Inc
Kotler, P. (1984). Principles of Marketing. New York: Prentice Hall
