KIDOLOGY
B U S I N E S S
P L A N
Executive Summary Recent years have seen younger children develop an increasing awareness of fashion trends and, as such, mainstream clothing styles are now quicker to filter down to the childrenswear sector. This particular trend, along with steady economic recovery, has served to boost spending on children’s clothing including premium-end children’s clothing, which has, in turn, helped to drive the market value in present times. Parallel to the growth of spending in the childrenswear industry, the appeal of subscription commerce has also become a rapidly growing market with confidence in the economies stability slowly growing. Allowing consumers to subscribe to products or services is not a new business model, but with a new wave of companies emerging with the business model it suggests that consumer’s appreciate the convenience of receiving items directly to their home regularly. There are economical and social trends that are currently impacting the Children’swear market within the United Kingdom. The industry isfacing a vast polarisation of the market between the Luxury sector ofthe market and the Value End of the market. This divide in the market is causing a saturation of clothing styles and lack of interest in independent children’s clothing designer within the United Kingdom. Theeconomical factor of 800.000 more mother’s in the workforce since 1996. The issue of time poverty with a gain in disposable income has caused a gap in the children’s clothing market. This gap in market is where Kidology Clothing believes there should be a solution to offer convenience yet not compromise on style for their children.
What is Kidology? Concept Kidology is a childrenswear subscription clothing service that primarily offers parent’s the opportunity to receive a stylist selected outfit delivered to their door for their child or children. The service has the option to be on a monthly or a on a request basis. There are two price tariff’s available to the customer. This was to ensure Kidology was able to meet the needs and wants of a wider range of parent’s in turn increase a larger subscribership. Kidology is a unique service with convenience of fashion being the ethos of the company.
USP Stylist selection of clothing from a variety of designer’s and brands and is ideal for parents that dislike High Street shopping trips with young children. The diversity in the clothing we source ensures parents will be able to gurantee another child will not wear the same outfit as your child, as with the current saturation of the childrenswear market. Offer a value range, so Kid:Ology does not price out potential parent’s that may one day progress to purchase luxury clothing for their children. We offer personalised shopping experience as we understand children are aware of their own personal clothing styles, colours like like as well as characters. We offer styled outfits for all aspects of children’s life, including occasionwear simply email us with the event specifics and your preferences and we will do the rest. There is no obligation to buy, as there is no contractual agreement in place customers can simply opt out if they decide to. You cand send the outfit back with 10 days if you are not completely satified with outfit we chose for your kids.
PRICING STRATEGY
£35
£139
STANDARD BOX
VIP BOX
Kidology offers the consumer two pricing points making the Kidology box accesible to a wider range of consumers. P&P is included within the pricing to offer a standard price point.
Customer Relations Management Company Objectives. The highest priority of Kidology is to offer the target consumer convenience ans a personalised service. - Fulfil each customer’s personal needs - Retain customers through better customer experience - Attract new customer - New clients and contracts increase proitably - Decrease customer management costs
VIP Customers Will be offered regular personal phone calls about exclusive stock items we received - this is a strategy to build a quality rlationship with this lucrative group and also offers the opportunity for up-selling proucts. VIP Customers will receive personalised emails from Kidology and receive discount codes on anniversary milestones with the company.
Kidology Box Customers Will receive regular updated trend newsletters. Will receive discount codes on each anniversary with the company.
Brand and Sponsorship Clients - Regular meetings with potential clients to highlight growth of company and to liase and build partnership for exclusive pieces for the company. - To attend brand events and meetings to maintain working relationship.
Direct Competitors -Key facts Fabkids founded in 2010. Similar business model - subscription offering parents a monthly membership. Childrenswear designed in-house. No offer of luxury wear. Based in the United States. Possibility to expand into United Kingdom market. Celebrity endorsement by American Actress.
Why is Kidology subscription-commerce? - Utilising the subscription commerce business model allows kid: ology to develop a relationship with their target consumer. -By providing regular services to a ‘member’ this consumer can begin to develop a brand loyalty as their confidence in the company in strengthened with the quality product and service that is received. -Using subscription payment software offers a simple non-action approach to purchase in comparison to one-time purchases. -The company potentially can expect to receive a constant stream of predictable revenue from members of the company on a monthly basis. -Allows Kid: ology using analysis of data collection to identify and tailor towards their consumer and identify the number of currently active members through the number of subscription packages active. -Subscription commerce offers kid: ology the opportunity to provide personalized marketing towards members as and the use of database marketing, to offer an experiential customer service capability. -With this increase of opportunity to understand personal customer need increases the potential of upselling by offering the customer further products directed towards their preferences.
Why is subscription commerce beneficial to the Customer? -The highest priority of Kid: ology is to provide convenience to the lifestyle of households by providing the commodity of saving time, a value appreciated by working families where that do not want to compromise on fashion for their offspring. -By purchasing clothing via a subscription commerce company the ability to maintain a budget and still receive value and quality clothing for children. There is no contractual agreement with Kid:Ology therefore the service ensures the customer experiences and the value and quality of service expected.
SUPPLIERS Kidology is a multi-brand trading styling service for children’s clothing, therefore in order for the company to be able to offer their target consumer the best quality and diversity in clothing Kidology will source pieces from a wide range of British designer’s and heritage brands as well as the global fashion industry. These clothing items will be sources seasonally to decrease the opportunity for lose of revenue by not selling all the stock bought. Seasonal purchases allows Kidology to use the data analysis to forecast styles that have the potential to be more popular than other’s in the upcoming season. Independent labels and designers will be sourced on the basis of availablity of stock. Kidology will be initially trade using 5 notable brands Ralph lauren Disney Pixar Burberry Missoni Kenzo
MAILING BOXES Kidology will be dispatching the selected items out in customised mailing boxes with the company logo printed onto the box with a children’s activity printed on the inside. Customised boxes will be printed monthly, will a different activity printed on the inside each month to increase the surprise value of the service. The mailing boxes cost £0.39p at bulk price and are manufactured within the United Kingdom to ensure re-stock of the product is as soon as possible.
FOUNDER/ HEAD STYLIST
ELISHIA WILLIAMS
IN- HOUSE STAFF STYLIST/ASSISTANT
ADMINISTRATION ASSISTANT
FREELANCE STAFF IT SUPPORT/ WEBSITE DEVELOPER
PR / ACCOUNT MANAGER
ACCOUNTANT
Elishia Williams Founder/Head Stylist Responsibilities: Is responsible for overall company efficiency and decision-making. Head stylist will be responsible for sourcing all the children’s clothing seasonally. Will curate boxes. Responsible for recruitment of all staff. Responsible for VIP Customer Relations, such as regular contact for up-selling opportunities. Responsible for maintaining B2B relations with independent designer’s, luxury brands and potential sponsors of the company. Responsible for managing outgoings such payment’s to supplier’s, bill payments excluding wages.
Stylist/Assistant Responsibilities Will curate boxes with Head Stylist. Will be responsible for ensuring secure mailing of boxes. Will assist with communication of all customer’s. Will assist with Social Media updates. Administration Assistant Will be the first point of contact for the company. Will be answering general phone calls and email queries. Will be responsible for written communication that will be approved by Head Stylist.
Administration Assistant Will be the first point of contact for the company. Will be answering general phone calls and email queries. Will be responsible for written communication that will be approved by Head Stylist. Will be responsible for the back-up of digital data and filing/book-keeping. Will be responsible for maintaining a clean office space. Responsible for PAYE to ensure wages are paid correctly.
IT Support/Web Developer Consultant Magicwebsolutions.co.uk.
Responsible for building website. Regular updates to the aesthetics of the website. 24 hour technical support to ensure in the event of an issue, to ensure effective resolve. Bi-Weekly updates to Head Stylist of the results from SEO, in order for the company to respond to trends of purchasing behaviour that may begin to emerge.
Account/PR Manager Responsible for establishing relationships with marketing avenues; such as contacting appropriate Youtube Blogger’s/partner’s with children to collaborate with the company. Responsible for product placement in publications. Responsible for organizing online advertising. Responsible for contacting a variety of new potential independent designers and luxury brands.
Accountant Responsible overlooking the book-keeping and accurate revenue generated by company. Responsible for preparing and submitting appropriate income tax and national insurance contributions regarding the staff and company to the Department of work and pension’s. Responsible for providing a wealth management strategy to offer company advise on relevant financial and opportunities for investment and expansion.
SUPPLY AND OPERATIONS
DISTRUBUTION PROCESS
MONTHLY EMAILS SENT TO SUBSCRIBERS WITH SELECTION OF THREE OUTFITS.
INTERACTIVE EMAIL NOTIFYS KIDOLOGY OF SELECTED OUTFIT.
PAYMENT COLLECTED REPEAT PURCHASE SYSTEM ON THE WEBSITE
OUTFIT IS PACKAGED AN COURIER COLLECTS FOR DISPATCH
CUSTOMER RECEIVES PACKAGE WITHIN 24 HOURS.
COURIER CONFIRMS DELIVERY DIGITALLY, AND INFORMATION IS STORED. This process will be a monthly re-occurring process on the basis of continued subscription to the service. The distrubution system will be utilised for the one-off payment option on the Kidology website, once payment has been processed the same distrubution model will be used for these purchases.
OPERATIONS Specification Of Space. Rent: ÂŁ450 per month.
Includes utilility bills and unlimited internet and phone access.
Close transport links
to city train station and bus station. Within 100 yards. Operational to 6 members of staff, with two computers.
LOCATION AND ENVIRONMENT HEAD OFFICE, Berry Street Kidology is entering the children’s clothing market as a small business, therefore the Head Office space will be occupied in a This location is ideal due to the size of the small size of the in-house staff, with transport links of the Wolverhampton City train station and bus station less than 100 yards away, meetings with potential suppliers or sponsors can be taken in this professional space. Cost Efficient With the head office being situated in Wolverhampton the rate of office space is low in comparison to neighbouring city Birmingham, the nature of the company is a online based there are no neccessary needs of a key city location for an office space. This keeps outgoing costs low, therefore beneficial to the financial cash flow and profit for the company.
Online Trading/Offline Trading Kidology is an e-commerce based children clothing service therefore trading is conducted via the company website. Due to the company initially trading online it is a priority to ensure the company has 24 hour technical support. The loss of connectivity to the internet will cause an interruption or loss to revenue for the company. Kidology will pay web developer/technical support company magicwebsolutions.co.uk a monthly fee to maintain the website and make software updates where necessary. STORAGE Storage of the clothing stock and the stock o f mailing boxes will be stored within the company office as there are storage facilities for ensure easy access.
Delivery Service Once a subscription conformation or a one-off purchase has been confirmed via the website, Kidology will dispatch packages via courier serve Yodel Direct. Yodel Direct offer a 24 hour delivery service, for a discounted rate of £4.31 per parcel if the company is estimated to send over 1000 parcels a year. Advantages of using Yodel Direct • 24 hour service for alll customers, plus easy returns system with this company. • Company allows our customers to elect a preferred time slot for delivery offering convenience to our customers. • Courier service will collect packages on a daily basis from Kidology office, therefore is time-saving so employees are not permitted to post individual using the Royal Mail system.
TARGET CONSUMER GROUP
GROUP A VIP CLIENT GROUP B SUBSCRIPTION CLIENT GROUP C B2B SPONSORSHIP AND TRADING WITH DESIGNERS AND LUXURY BRANDS
CONSUMER PROFILE
GROUP A
Affluent Mother VIP BOX
This package is targeted at the parents with less financial responsiblities due to postponing conception until complete financial stability was gained. - Aged between 30 years old-42 years old. - Work between 10- 30 hours per week. Spend between £70- £170 per outfit per child.
GROUP B Mothers in Employment STANDARD PACKAGE This package is targeted at the parents who are facing-time poverty but are earning more monthly income. They are interested in fashion. - Aged between 24 years old-42 years old. - Work between 16-30 hours per week. - Spend between £30-£45 per outfit on children.
GROUP C Designers and Brands With marketing and the growth of the company, Kidology is focused on gaining brand affliation programs and sponsorship. brands wil pay a 15% of the box sales per month containing their products. Kidology will do editorial style feaures and send newsletters to the consumers to make them aware of the latest products from sponsors. - Independent brands -luxury brands - baby product franchises.
Online Marketing In order to create a cohesive brand identity within the children’s clothing industry as a new concept it is important for Kidology to market online via a variety of outlets in order for the company to gain the relevant exposure to the target consumer whether it is B2B or B2C. The Kidology website will be designed to a family friendly standard, to primarily target parents and make the process of joining the subscription service simple and efficient. The ability to fill in a survey about their children’s and their own preferences, while ensuring the signing up and payment process is a hassle-free experience is the key to the convenience quality that Kidology is created around. Kidology will also have access points and contact details that enable potential suppliers or sponsors to get in contact with ease for the B2B element of the company.
Marketing Approach 1: WEBSITE The website will offer information about: Instructional information on how to navigate the website. Brands that are in partnership Kid:Ology. What the company offers in regards to styling choices. Process • The web developer and maintenance of 24 hour technical support will be the responsibility of company Magicwebsolutions.co.uk. • Magicwebsolutions.co.uk. will ensure all elements of the site is operational at all times. Included in the service is Registration of Domain. The designing of a professional yet sophisticated website interface appropriate for Business 2 Business traffic as well as Business to Customers traffic. Weekly relaying of SEO information so that Kid:Ology can interpret the analytical information to seek areas of improvement and resolve issues that may develop.
Offline promotion is also an important marketing direction for Kidology, will be applying to the marketing strategy. Printed media such as brochures leaflets, ads in magazines and word of mouth in increase the exposure of the companies values and offers potential customers to look Kidology up online or recommend to an ideal consumer.
MARKETING APPROACH: 3 The Baby Show The Baby Show is an event held at the Birmingham NEC annual targeted at parent;s with young babies or who are expecting children. This is an environment where many of the target consumer may visit, this is a prime location for Kidology to market directly to the target consumer. The advantages of visiting The Baby Show is to increase exposure of the company and the brands we carry but also to offer promotional codes as an incentive for these potential customer’s to visit our compnay website. By targeting a consumer with babies this it has the capacity to build a long customer loyalty relationship until their child is 12 years old.
STAFF: PR Manager/Founder
Sign Up for Exhibition and purchase a stall space. Purchase printed marketing material such as banner’s, business cards and brochures reinforcing the company ethos. Offer promotional codes for website to encourage the target consumer to visit the website. Managing Director and Stylist to attend in order to offer target consumer insight into company and trends and to become familiar with potential clients. Gain feedback at feedback to identify the needs of the target consumers. Have a fully functioning website, with the capacity for the customer to join easily.
Marketing Approach: 4 Bubble London Bubble London is a children’s fashion event that showcases the latest in independent designer’s ranges to increase promotion of collections. Bubble is also an opportunity for a variety children’s clothing professionals to network and sell their product on a business to business basis. In order for Kidology to expand their diversity of product it is essential to interact with industry professional as well as being introduced to potential new sponsors for the company. Within the Bubble London event there is an exhibition space for marketing and awareness of all brands involved, Kid:Ology will attend the show and set up an exhibition stall in order to introduce the concept to industry professionals and begin to build a network of useful contact’s for the further development of the company. Enforcement Strategy.
Staff: Founder/Head Stylist Pr/Account Manager
Sign Up for Exhibition and purchase a stall space. Purchase printed marketing material such as banner’s, business cards and brochures reinforcing the company ethos. Managing Director and PR Manager to attend for networking purposes and focus on encouraging brand awareness. Have a fully functioning website, with the capacity for individuals to contact the company.
Contingency Plan Managing Risks to Kidoogy The Contingency Plan in regards to Kidology is a set structure of guidance in order to provide an alternative solution to respond to issues that may arise or in emergency circumstances. These alternative solutions to the operation of Kidology is to prevent the result of loss of finances or the operational functions of the company.
DATA PROTECTION
In the event of an issue with the online element of the company as the business model is highly dependent on the online software, the company will create back-up ad-hoc databases of all digital company information including customer information in the event of software or hardware malfunction. Back-Up of data on a monthly basis. Only administration staff have access to customer’s personal data. I-cloud data backup in addition to off-site storage. This is in order to maintain communication with the customer and the possibility of continuing with trading via telephone and mail.
Health and Safety. All members of staff will be receive regular health and safety training as well as one elected member of the staff to be trained in first aid to ensure Kidology is able to provide staff with safety in the workplace.
Hardware and Software Regular maintenance by technical specialist.
Delivery Utilize the Royal Mail delivery in the event of issue to delivery of issues with In the case of issues with location of office, due to Kid:Ology trading as an e-commerce business trading can commence from a wide range of facilities.
Insurance Insurance to cover the loss of stock and essential equipment.
Future Growth Strategy TEENWEAR MARKET Kidology using a subscription business model has the capacity to expand into further niche area’s. The next priority of Kidology is to expand into Teenswear and creating a sister company ‘Teenology’. Teenology will use a similar business model to Kidology but with teenagers increasing knowledge of the internet retail environment this company will incorporate this fact. Parent’s will continue to pay a subscription fee each month for their children, Teenology will offer the teen their own log in details and enable them to select their own outfit choices. Any automated email will be sent to the parent for a confirmation of the teenagers selected outfir and it will be deliveried using the same system of distrubution as Kidology. Over the next decade the Teenswear appears to be a highly profitable market to enter, with the children of the year 20082012 baby boom increasing the child population by 19.7% as these children continue to grow into adolescents he teenswear market will experience an increase in population therefore would suggest a gap market in the market.
CASH FLOW
5 YEAR FINANCIAL FORECAST
According to the forecast for the companies next five financial years, profit is estimated to increase 10% year due to effect’s of company expansion as well as the increase to the child population casuses a need for children’s clothing therefore increasing potential consumer groups. £40,000.00 £35,000.00 £30,000.00 £25,000.00 Series1
£20,000.00 £15,000.00 £10,000.00 £5,000.00 £-‐
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PER YEAR FORECASTED GROWTH
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