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Introduction
Business Concept and the Business Model
1. How will the business raise revenues? What critical factors will cause the revenues to materialize?
Innovation and Promotion are the two main factors that can affect the business revenues of Oh
Clothing Line. Oh Clothing Line produces several products that are innovated and are not the same as
what you can see in the existing market. In this case the customers will be attracted into it and will
purchase it as it is a new thing in their eyes. Products of Oh! Clothing Line might be unique but it will
always be on point and will always be able to meet the standards of the fashionista pips.
2. What will be the costs of the enterprise products and other costs of doing business? How will
these costs be managed to ensure comfortable profits? What critical factors will drive the costs?
How can these factors be controlled?
The estimated cost of the whole starting process of the company is 10 Million PHP, including all the
charges and all the upcoming branches of the Oh! Clothing Line, outside the vicinity of Quezon Province.
The company ensured that they can promote really well in order for the customers to know about the store.
The company is comfortable on showing and displaying their products since it is a work of art and it is very
unique but is high quality and is affordable depending on the customers. Opening up other branches is
great deal and requires a lot of money in the pocket. Promoting the company is another problem. Being a
client of a Public Relations Office requires a lot of money however, being a PR client ensures that the
product and the company will be promoted all throughout through various means.
3. What will be the major investments of the enterprise? Why will these investments give the
enterprise a competitive edge?
The company requires a lot of money in order to create outstanding products. Money also provides
the machineries, the equipment needed to create the product. Money will also give them the ability to
promote excellently and to have a space for the shop in a very good environment. Since it is a huge
amount of money, the company needs to get it back as soon as possible by increasing the sales volume in
anyway the company can.
4. How will the enterprise finance the investments? How will the enterprise funds its growth?
The company has been contacting a lot of investors that can help them start the business. The
investors have been within the fashion industry for a long time, and they can surely embrace this company
because of its unique theme and products.
4. To make Oh! Clothing line a happy and 4a. Compensation and benefits of managers
rewarding place to work in and workers are above industry rates
4b. Management and employee turnover
4c. Number of job applicants compared to
other similar establishments
Key Result Areas Performance Indicators
Now 5 years 10 years
1a. Amount of Net Profits realized for PHP 2.5 million PHP 10 million PHP 30 million
the next ten years
1b. Return of Equity (ROE) 5% 20% 60%
1c. Return on Assets (ROA) or Return
on Investment (ROI) 15% 25% 40%
1d. Return on Sales (ROS)
1e. Growth of sales per outlet 15% 25% 45%
IV. Market
The demand for clothes is really high nowadays. It is not just the ordinary clothes the people are
looking for, but it is the unique and fashionable clothes that can actually represent and express the
character, attitude, and the selves of the people wearing it. The customers want to be themselves on the
clothes they’re wearing, however not all people who can’t dress up the way they want because of the price
of the clothes they want to wear. And not all people know the clothes that describe them because what
they see on clothing lines are always limited on a certain theme. Not everyone has a stylist that can lead
them to the style that suits them the best. Almost all people have difficulties on finding the clothes that
really suit them and as well buying the ones that they one because of being so expensive. Not all clothes
that are expensive are always high quality as well, not all cheap things are low quality as well. Everything
just settles at the middle. And this problem resulted on the creation of Oh! Clothing Line.
Research also indicates that people approach clothes store uniquely by evaluating them based on
product (quality, price and how it suits their taste) and company information derived from both personal
and expert sources. And studies show us again and again that excellent customer service lowers customer
attrition rates, fosters excellent word of mouth and most importantly, increases sales. It has been identified
that there are ten factors that contributes on the decision of the customers on where to buy and shop
clothes:
1. Clothes have affordable price 7. Has many clothes to offer
2. Employees treat the customers with respect 8. Carries a wide variety of items (e.g. colours,
and smiles sizes)
3. Carries high-quality merchandise 9. Has outstanding customer service
4. Doesn't pressure customers to buy anything 10. Makes it quick and easy to shop at
5. Convenient store hours 11. Uniqueness of the products
6. Handles merchandise returns fairly
On the other hand there are many competing stores within the fashion and clothing line industry. A lot
of branded clothes exported within the country have been topping ever since on the industry as it offers
what the people want. People respond to it positively despite of the expensive prices of the items. It is
because certain stores have already developed and establish a good name and image within the eyes of
the people not only by providing varying clothes but high quality ones as well. Stores like Penshoppe, Gap,
Folded & hung, Oxygen, Forever 21, Abercrombie, Beverly Hills, Jag, etc. are just few of the clothing lines
that are trusted by the Filipino customers despite of being exported from international countries. On local
means there’s Natasha, Linya linya, Bench etc. have been as well topping the fashion industry within the
Philippines.
Oh! Clothing Line, a newbie on the fashion industry has several advantages despite of being a starter.
First is that it offers unique but fashionable clothes that has never been shown within the market as they
have already innovated the clothes that are ordinary and always seen available within the community. As
most people like unique things rather than the ordinary ones, because they don’t want to see themselves
wearing the same clothes as everybody wears. Another advantage is that because not all clothing line
offers clothes for all ages, Oh! Clothing Line is one of those few stores that offer it. Oh! Clothing Line not
only offers unique and fashionable, but comfortable, high- quality and affordable clothes that can actually
attract the customers to buy on the store. However since it is just a starting fashion line it needs to promote
as much as we can to attract a lot of customers and create loyalty within them. Oh! Clothing Line also
offers freestyle analysis to help the customers find the style suited for them.
Since AAA Fabric Textile and HandyHand Arts and Craft serves as the suppliers of fabric and
designs which serves as the suppliers of the other competing brands, Oh! Clothing Line needs to innovate
clothes as much as they can to create better image on how it uses the fabric that Oh! Clothing Line buys
the same with the other competitors. Oh! Clothing Line must also gain the trust of the suppliers by being
loyal with them and trying to thank them by promoting them as well through the clothes. This can create a
good transaction between the supplier and Oh! Clothing Line thus can have lower bargains, discounts or
freebies can occur.
Not only is Oh! Clothing Line a fashion store at one place but it also offer extra services online that
can actually deliver the clothes that the customers want door-to-door as it seems very convenient to other
people. Oh! Clothing Line has already signed a partnership contract with JRS Express on delivering the
clothes where ever in the Philippines. As soon as it enter the international competition, Oh! Clothing Line
will try it best to sign a partnership contract with AAA Cargo Shipping to deliver goods online. It will also
establish its first store on the where the highest online sales occur within the online international delivery.
The impact of Oh! Clothing Line socially is that it provides clothing for all races. There will be a certain
section on every branch of Indigenous People Clothing in that case they can showcase how varied the
clothes are in Oh! Clothing Line. Discrimination is a great big factor that can affect the sales of a certain
store, that’s why one of the goal of Oh! Clothing Line is to say no to Discrimination.
Socially as well, the main trends within the society nowadays affect the customers’ perception of the
fashion items they will buy. The list of current trends that were identified within the society in terms of the
fashion industry:
People are shopping online for convenience Supremacy of the discount store chains
& value; growth of sales on the Online Category-killer superstores
Market Continuous changes in demographics,
Continued decline of the new business tastes and fashions
Build a fashion appeal within the years Easy availability of consumer credit
present in the industry Deteriorating appeal of the major mall
Repositioning of full-price/multi-line
department stores (SM)
And as an answer to the current trends, Oh! Clothing Line tries to reach and achieve the trends of the
fashion industry in the Philippines.
As for the Economic and Environmental factors and conditions present within the society, Weather,
seasonal events, holiday shopping, competitor marketing, Philippine Economy can all affect the
performance of Oh! Clothing Line. On a macro-economic level, consumer confidence, interest rates and
inflation rates all have an effect. Rising unemployment, political concerns and deflation also pose risks.
Oh! Clothing Line listed the positive and the negative factors brought by different conditions that can
affect the growing business of Oh! Clothing Line.
Economically, even though Oh! Clothing Line wants to provide affordable items as much as they can,
there are still some taxes and bills the company needs to pay and add it to the product excluding the cost
of the whole production of a certain clothes. Value Added Tax (VAT) has been always added to every
products produced that are included on the basic necessities of the human race. 12% of the total price will
be deduced to contribute on the National Budget of the Philippines.
The owner of the Oh! Clothing Line has visualized an Eco-friendly Clothing Shop that depicts a
wonderful environment to shop and work on. As well as it uses materials and processes that is not harmful
to the environment.
Technology-based a lot of equipment will be used for the processing of the clothes. Equipment such
as Sewing Machines, Printing Machines, and machineries needed to run a store.
V. The Product and Service Offerings
Description
As for the Products, Oh! Clothing Line have the list of their newly introduced fashion clothes:
Minimalistic Shirts and Polo Shirts / Hand Painted Dresses and Shirts/
MiliShirts Murals
Pop Art Shirts/ Pop-O Shirts Formal Clothes / Sophie
Black and White Clothes/ Dalmatians Toodlers / Toddlings
Extra- Large Sized Clothes/ ShoBig
Clothes
These are just some of the example products of the Oh! Clothing Line which has their own names in
that case people will be attracted on buying it, and the people who will hear those things will then be
curious about it, garnering their attention they will see to it that they will know what trends are in within the
Oh! Clothing Line. However the business focuses on the products listed:
Casual Tops Denim Wardrobe
Blouses Separates Accessories
Sweaters Jackets/Blazers Style Assessments
Knits Coats/Outerwear Special Orders
Pants Fashion Accessories Alterations
Skirts Jewelleries
Dresses Personal Care
To overcome seasonality concerns, Oh Clothing Line will be varied. Oh! Clothing Line will provide
different sets of clothes each and every month to satisfy the eyes and the wants of the customers and
by-passers. Additionally, Oh! Clothing Line will provide alterations, personal shopping services and special
ordering for our customers. Special Orders are a huge benefit as Oh Clothing Line obtains full-price
sell-through and there is no floor space needed to sell the article.
At Oh! Clothing Line, the business is committed to bringing high quality clothing to women but the
prices will reflect at the range of affordable to high price depending on the variety of clothes. The lowest
price will be from PHP 175 up to the highest price of PHP 20,000 because we are accepting orders such
as gowns and classy and sophisticated looks that are suggested by the customers. To maintain profit
margins of Oh! Clothing Line, the business will negotiate and focus on obtaining an average retail mark-up
for all merchandise classifications.
Oh! Clothing Line will build its first branch on the Province of Quezon specifically on Lucena City
because the owners of Oh! Clothing Line is actually based and is living in the vicinity of Lucena City. It will
first open its branch on SM Lucena City knowing that a lot of people visit the mall.
For the promotion of the Oh! Clothing Line, the company would invest a lot of money to advertise the
company throughout the country as it requires attention from the audience or the customers for them to be
informed that such market exists. First is that there would be personal selling and word of mouth via
networks of friends, stylists and customers. A Facebook Page will be established as well as Twitter and
Instagram accounts in order to attract people, since almost all of the target customers look online because
it’s already Digital Era and, it is a must to create those certain things to promote. Oh! Clothing Line will
invest almost PHP 15,000 for this promotion.
Another intended promotion is that the company will promote through flyers and posters to inform the
target customers about the starting information of the company, the products, and the opening of the
company. Unique visual displays in storefront on before it open and after it opened in a weekly basis.
Printing and Posting of flyers and posters needs about PHP 5,000-10,000 worth. Another promotion is that
it will pay some advertisement on the local radio stations as there are still a lot of people who are listening
to the radios nowadays.On the other hand, since it is still a small market and just a starting one, the
company will then establish its name first within the vicinity of Lucena City across the whole Quezon
Province. After the name was well established, building up few malls within the CALABARZON is the
target of the company. This time the company can invest and will invest on promoting the company and its
products through localized commercial and billboards in order for them to spread the name of the company.
They will be showing different positive feedbacks from the customers in order to as well attract them and to
increase its sales on the other stores of the Oh! Clothing Line. There will also be Sales Promotion such as
unique store events and bi-annual sales that can attract customers as it provides cheaper than the
affordable price of Oh! Clothing Line clothes and will give freebie and exciting events that can catch the
attention of the customers. Other important marketing strategies, such as developing strong customer
relationships (retention), will utilize a different mix of marketing programs.The company will invest to create
their own website whereas everybody from all over the world can access on that can receive orders from
all over the world. Then afterwards depending on the demand of product, Oh! Clothing Line will build its
first branch store outside the Philippines.
The employees of Oh! Clothing Line has been carefully filled by the CEO of the company, Angelica
Lee A. Palmero which also serves as the head of the HR Department of the company. A total of 21
employees will be employed within the company. The Company will ensure that Oh! Clothing Line is a
great place to work on. There will be a lot of benefits and insurances that will be offered to the employees
who’ll be accepted in the company. The skills are the main point of the hiring session not the experience.
The CEO will focus on the talent of the aspiring employees by making them do things that’ll show their
skills. They will also be further being developed into better employees by making them attend seminars for
free after being accepted.
As for the packaging, Oh! Clothing Line prepared a customized paper bags that are eco-friendly and
is very convenient to bring because of its medium size and a well-designed paper bag. It is super durable
as well that it can carry heavy loads of clothes.
As for the process, the customers will be guided by few clothing analysts within the company and
stores on picking the right clothes for them if they have the dilemma on what they want to wear, if whether
they are undecided or not.
Evolution
Oh! Clothing Line has always been on point on making such innovative products in order to be
different from other competitors. Oh! Clothing Line designed several unique clothes, in which the company
is comfortable to show and display in their store as they know that the customers will surely like it.
On the other hand Oh! Clothing Line will also provide services such as Style Assessments, alterations,
personal shopping, and special ordering to customers during store hours and by personal appointments.
Style Concierges who are trained within the image industry will be available to customers on a daily basis.
Oh! Clothing Line innovative Style Assessments and educational emphasis in helping the customers
develop their personal styles will enhance our reputation as a truly unique boutique.
Justification
Oh! Clothing Line offers different products that are very new within the society as a result of
overwhelming innovative ideas of the designing team of the company.
In order for the products to be known and in order for the customers to avail the products, the
company posed different tactics in order for the products to be sold and in order for the sales to increase.
Oh Clothing line offers Full and Self-Service which covers the: "What's New" Bulletin. Behind the cash
wrap area there will be a bulletin board that is frequently updated and that lists and displays the following
details:
Featured Designer - This will show a profile of one of the designers
How to Wear - This will show how to wear a particular item for work, weekend and going out
Coming Soon - This will feature items coming into the boutique soon
Services - This will list all the additional style services that Oh! Clothing Line offers
It also covers the tactic of Coterie Clothing Tags whereas clothing tag will have the corresponding
Style Personality numbers listed to help customers determine which pieces are best for them.
As well as the Style Concierges. Oh! Clothing Line believes in bringing the best service to our
customers. As such, all sales associates are called Style Concierges. Our Style Concierges will be trained
and participating members of the Association of Image Consultants International. They will be available to
assist customers with their Style Assessments, wardrobe planning, special orders and personal shopping.
If a customer is pressed for time, she simply calls Oh! Clothing Line to set up an appointment and there will
be someone there to greet and assist her beyond normal business hours.
Sales 5M 7M 10 M 12 M 15 M
Advertising 50, 000 50, 000 50, 000 50, 000 50, 000
Cash Received
Principal Repayment of 0 0 0 0 0
Current Borrowing
Assets
Long-term Assets
Current Borrowing $0 $0 $0 $0 $0