BABY ONESIES
Jerry Gong
Business Concept BABY ONESIES Every year have millions of babies are born, it also mean their parents have to purchase their baby products. There are lots of things they will be consider about, for example toys, clothes, and milk powder. However, they cannot avoid one thing is about clothes for baby and customer will consider how to make their baby more adorable. We will try to create a profitable side business, and we will make online store onesies for babies.
Mission Our mission is we tired to use the good quality fabric with good design, and make our client to become care about their children. We are going to give them some unique and new elements into baby onesies.
SWOT STRENGTH
WEAKNESS
• Products are 100% cotton and organic material. • Products are unique – They include printing that commemorates the babies’ state/city origin, and are customizable • Emphasis on high quality product • heat tech technology
• Don't have retail store to shop (parents cannot try our clothes on baby before they purchase) • Lack of inventory- during some festival customer order huge amount, may have order issue.
OPPORTUNITIES
THREATS
• Fast growing demand for baby products • parents high demand for organic product( chemical free)
• Have lots of competitors online if customer type baby clothes on amazon it shows 91,009 results
• Nowadays online shopping is grow and grow- easy to make customer see our baby products. (facebook,twitter,instagram,ebay,and amazon)
• Hard to bring into retail store • May lose profits • Deliver issue
Product Plan 1. The Product Plan outlines the benefits and features of the product. This section of the plan should cover the following points: Purpose of the product. We provide babies with high-quality and high-tech onesies containing attractive, fun designs. We use the fabric of baby onesies organic 100% cotton, to make sure our customer buy the most safety merchandise in our online store.
Unique features of the product. The size range of our online store we offer from new babies from one month to 12 months. We also provide from one year to three years. In the winter season we also we provide heattech collection to babies to keep their body warm. Heatech technology is to keep babies baby warm. The heattech basically absorbs body moisture, tiny droplets generate heat. Basically this unique technology other baby onesies store don't provide, and we for the heattech collection we also use 100% cotton.
Licenses or Royalty Agreements associated with the product. • There will have Licenses or Royalty agreements associated with my product. Before we collaborations with another store we need do research and also check their brand image see if is similar with our store. Our brand also will consider the corporate store’s reputation. • In addition, our online store will come out customer buy one-baby onesies clothes from our store, and our online will donate one baby onesies to babies who in need.
Product limitations that could be pose a threat to profitability‌.such as seasonal merchandise with a short lifespan (e.g., rainwear), and the plan to offset that threat. The lifecycle of the trend will be a pose a threat to profitability and I agree with this point. However our online store will develop more variety merchandise for different season after our online store on the right path. Related products that will be offered to enhance the core product offering. For our online store membership one year they reach certain point and they can get special gift from our store ( the gift don’t sell in the store).
How the company plans to meet the changes in product trends. Collaborated with babies fashion company, or Collaborated with fashion designers to make our product trends have more unique design and good marketing strategies. Suppliers who will provide the product, and then plans to expand the supplier list. Europe: www.childrensplace.com Asia: http://www.cafepress.com Australia: http://www.bonds.com.au
REFERENCE Europe: www.childrensplace.com Asia: http://www.cafepress.com Australia: http://www.bonds.com.au
Market Feasibility Plan A.Industry size of your business.
B. Growth potential of the industry.
The Industry size of the online business “Baby Onesies” online has been listed as 1.3 billion dollar a year industry. According to the cost of raising a Child report families income over$105.000 end up, and they spend on baby’s average about $1100 per child in a year from baby newborn to two years old, and parents usually spend more than three time on baby’s clothes.
Growth potential for online baby internet shopping for websites such as EBay, amazon, and Facebook are allow for easier selling, and also using facebook and instagram to caught clients attention is an easy and effective way to gain exposure. The most advantage of online shopping is we bring the convenience of online shopping and we will help the industry keep growth. The newborn baby to two years old people actually is hard to bring the baby to the retail store to try the size, and our online store also offer 15days free return or exchange the size. We provide the best service for our customer.
C. Customer profile. My target customer would be for the parents and age around 25-40. The customer has stable income and good education they know what is for give babies the best. He or she is middle class and earn $3000-$20000 a month and they can afford the good quality and organic 100% cotton for their babies. They also can make their babies look fashion and adorable, and show their friends or post on the social media (Instagram, Facebook, twitter) Psychographics are value quality, love safe product, neo conservative spender. The lifestyle for our clients they love shopping online, love fashion trend for themselves and also for them babies, and spend time with family.
D. Competition profile. Name three major, and do a who, what, why, where, and how. Wal-Mart • Wal-Mart offer organic baby clothes and extremely cheap price, and there are baby clothes are lesser quality than more expensive brands. Price range: $5-$20
EBay • EBay search for “baby onesie” results are over 115630 items. There provide lots of individual seller online on their website. Price rang are variety on the EBay.
AMAZON • Amazon is also offer cheaper and good quality baby clothes. However they don’t offer good design clothes for baby.
REFERENCE http://www.ibisworld.com/industry/online-baby-productsales.html http://www.inc.com/kimberly-weisul/looking-for-growthpotential-baby-products-baby.html
Develop the Entry and Exit Strategy for inclusion in the growth plan section of your Final Business Plan Method of Entry: For baby onesies our entry strategy is have a brick and mortar store located in Broadway St Oakland, CA. Location will be one of the important elements to determinate success. Our store pick this spot because of rent are less experience than San Francisco, also during the vocation and holiday will have lots of people and tourists come to there shopping. Beside our retail store have a Starbucks and other clothes boutique and accessories store near by our store. Another important reason is in there don’t have lots of competitor store, and our store is the only one sale the baby onesies. We will encourage customers to bring baby clothes they are not wear anymore, and our store will help donate their baby clothes to the family need help. We also offer 15% off discount to shop in our store for, who donate their babies’ clothes to us.Giving 15% discount It will effect our store gross margin, but our store will keeping doing this thing to encourage people to support other people and babies in need. For the beginning of the store we will promote our store on social media(Instagram,twitter,facebook) and also with flyers and advertisements.
Method of exit For our store we have to face the reality if our store business may be not successful than our expect. We have to make a exit plan for our store, and we will have an exit strategy for our baby oneises of closing the doors. One way is to sell to another business, and another way if our store don’t see any increase hope we have to make discount and try to sell as much as possible before close the store.
REFERENCE http://www.fao.org/docrep/w5973e/w5973e0b.htm#entry %20strategies
Location Plan Where? As an e-commerce store base in United States, and as I mentioned last week our online store pick a great spot to increase our brand awareness as well as to text out the market. Baby Onesies will open a pop up shop store locate in Piedmont Avenue in Oakland, CA. Our pop-up shop will be open fro one month long and we also decided choice open on December 1th. Why we choice this location and specific month is because of during December has lots of festival and events. The second reason is because the location is less expensive than San Francisco.
Brief outline of the statistics and lifestyle of the customer in that location. • Population density: • Piedmont Avenue: 16,357 people per square mile • Oakland: 7061 people per square mile • Average income in piedmont • Piedmont Avenue: $65,696 • Oakland: $50500 • Average rent in Piedmont • Piedmont Avenue: $1133 • Oakland: $986 • Percentage of married-couple families with children (among all households) • Piedmont Avenue: 45.6% • Oakland: 23.4%
Competition in that location. Piedmont in Oakland is a great district to shop, and around there business district between Macarthur Boulevard and Pleasant Valley Avenue in Oakland. There are lots of wonderful shops (handmade jewelry store and fashion boutique). Piedmont Avenue also has lots of good restaurant and coffee stores.
Description of the physical site itself (Inside and Outside please). For the store looks I would like to keep it simply, but looks warm for the customer. For the inside store display I don’t wants put lots of merchandise and make my customer feel confuse. I want keep our store looks simply but unique. For the store window display we are going to put our most sell merchandise on it.
Estimated cost of the lease and the renovations. Rent: $2360 for a month Space: 500 square feet Material and flyer: $800 Internet: $80 Total estimation cost: $3740 A brief description of the layout for the store including front and back office functions. For our vendor are allowed to design for babies, but we are more focus on the lighting and make use the warm lighting for our store.
Reference http://www.city-data.com/neighborhood/Piedmont-AvenueOakland-CA.html http://www.sfgate.com/neighborhoods/eb/piedmont/
E-Commerce/Online Presence
1. Would your business model lend itself to the e-commerce model? Why or why not? I definitely will start up an e-commerce model to my baby onesies product line. E-commerce has a huge potential in the future market, and increase speed of brand identity. Ecommerce also can bring more dimension and values to the fashion industry. Jack Ma he is a really successful e-commerce entrepreneur in China, and he made $ 18 billion last year from ecommerce. He started to do E-commerce 15 years ago and at that time nobody thought he would be succeed. However, he knew e-commerce would be a big market in the global world. E-commerce still have lots of potential, and I think it also reduce my store operational expenses and more flexible. The Value of e-commerce bring to our customer not only just convenient, but also narrow down the price between different countries. In addition, some customer love to shop in the retail store and try the products on and see if it fit or not. However, not all the customer are available or easy to go to the brick and mortar store. Some people may know what they want and they want it quick. E-commerce is all about customer, and bring the benefit to the clients it’s the great way to do business.
Doing business on e-commerce it can help my brand have more customer to aware. It’s also can help reduce my cost of operational expenses, because company don’t need to pay the huge amount of rent and security fee etc. 2.How can your business concept benefit from social networking? For the social net working of our store, I would like prefer to use Instagram, twitter and Facebook. In addition, I would like to add customer review page in our website, and give us opinion and feedback of client’s shopping experience. On the social media our store are going to show our new collection, and when are have special event we are going to announce on the social media and let our customer know about it. Social media is help our store to increase speed of people to know our store, and we also will send our customer email when our store have events. Our store post twice a week on Instragram, facebook, and twitter. In additional, we would write a concept about our product on the social media and make our clients easy to aware our brand.
Reference http://www.entrepreneur.com/article/243345 https://www.youtube.com/watch?v=F7EyJqDj3js
A Market Penetration
Develop the Marketing Plan section of your Final Business Plan based upon the following topics: Product: Define your products each and every one. Baby onesies and baby clothes. Price: Please define your mark up. Mark up would be about 3x the amount. All of our merchandise are design by local designer, and that’s can make our cost going down. For quantity of 51-100 pieces the cost will be $10, and sell to our customer would be $30.
3. Promotion: A. Advertising..show one example for business. Include the cost please. Our store will send to our customer email when our store has events or clothes on sale. In addition, during the customer birthday we will send gift to our customer. B. Social Media‌show 2 examples for your business. Include the cost please. Social Media we would like to use Instagram, twitter, facebook, and Pinterest. On the social our store are focus on post our new collection and customer can check it out. In addition, we also will post the concept of our design for the products. All the purpose are make easy to our clients to know more about our store. On these social media we do post our events and information on these social media on our homepage. C. Any other promotion many of you spoke about flyers. Include the cost please. Salespeople and influencers: sales people are providing their best service and explain customer’s question and persuasive efforts to sell the products. On the sales floor we send $500 per month for part time job, and $50 per month for store supplies. Total cost is will be $4782
Reference http://www.quirks.com/advertise/online/web _ads.aspx
8.1A Management Plan Since Baby onesies goal and Philosophy we provide the best customer service to our clients. Since we are launch a small business, and we are going to hire one full time sales associate and one full time buyer to help our store manage succeed. We do want to make every clients coming to our store and make them fell they are special. Storeowner: As a storeowner my job is doing almost everything in the store. My job includes key holder, open and close store everyday, buying, assortment plan, marketing and adverting, manage sales and customer payment, and social media . Payroll for three employees and also include myself. Assistant manager: Help the store manage the inventory and buying merchandise from the wholesale vendor. If I am not available in the store, the buy will be in charge of manage the store. The duties are include clients payment, store open and close, social media,help manage the cash register and responding email and phone call from clients. Sales associate: The most important position is to provide great customer service to our customer, and use social media to make our store more people know about it. Help clients to find their right size of clothes and introduce the fabric and story behind the merchandise. Assisting client and also keep clean in the store. If myself and my assistant manager take a time off, sale people also should learn how to deal with clients payment.
Merchandising Plan 1. Proposed Vendors For our e-commerce site. we will sell our merchandise on our own website (http://www.babyonesie.com/) At the beginning of our business we only provide one physical pop up shop store to sell our merchandise and can make our customer to feel and try it on. Our source are from local vendor around California with the finest raw. Donation from our loyal customer. 2.Assortment plan
A. List the categories you will be merchandising and their price range Baby onesies: with 100% organic cotton, and available sizes are from newborn baby to 3 years old. Price rage from $15-$30 Baby onesies: with the new technology heattech are perfect keep baby’s body warm. The size we available from newborn baby to 3 years old. Price range: $20-$45 Baby t-shirt: with 100% organic cotton, and available sizes are from new born baby to 3 years old. Price rage: $15-$35 Baby socks: with 100% organic cotton, and available sizes are from new born baby to 3 years old. Price rage: $5-$10 B.List the % of your total assortment of on hand inventory that will be represented by each of those categories
20% Baby onesies with 100% organic cotton, 40% new technology heattech for baby onesies, 20% baby t-shirt, and 20% baby socks.
3. Market trips For our store will be buying trips once a month depending on season and festivals. People donate their children’s clothes will get 10% off from our store, and we also will donate to the baby in need. For trips for our employers termly, such as the Walmart and Hm they are our competitor and it’s also a great way to learn from your competitor.
A Forms of Ownership First‌..Please define all below. 1. Sole proprietorship: A business owned and operated by a single individual. (usually only have one owner. 2. Partnership: it’s mean two or above two people share the ownership, and have the right and the liberality. A. General Partnership: A general partnership must have two or more persons engaged in a business for profit. The business is not a separately taxed entity; rather, it is a conduit where the profit or loss flows through to the partners. B. Limited Partnerships: Two or more partners united to conduct a business jointly, and in which one or more of the partners is liable only to the extent of the amount of money that partner has invested. Limited partners do not receive dividends, but enjoy direct access to the flow of income and expenses.
3. Corporation: A. Limited Liability Corporation (LLC) offers another legal entity under which the business owner can operate. The LLC offer. A limited liability company is a hybrid type of legal structure that provides the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership. B. S-Corporation: is a term used by the IRS to refer to the federal tax status of a certain type of corporation. S-corporation is easy of ownership transfer and limited liability for its own. Please explain your Choice of Ownership and why it is appropriate for your business model. For my business model, I prefer to use sole proprietorship. The reason why I choose this business model, because of this is business model I can decide everything on my own with my store. At the beginning of the business, I think Sole proprietorship can make my plan process quickly and I don’t need waste my time to with my partner about the different opinion. However, if the store financial going down, and I have to take the full responsibility for it. The better way to avoid loss huge amount of money is at the beginning operate pop-up shop store and carry less inventory (test the fashion market and target customer).
Reference: http://www.business.ca.gov/StartaBusiness/DefiningaBusiness/GeneralPartnership. aspx http://www.investopedia.com/terms/l/limitedpartnership.asp https://www.sba.gov/content/sole-proprietorship-0
A Financial Plan Project your Daily Sales for your first year in business by considering very carefully: Average retail price point based upon product and merchandise plan: $30 Hours and days of operation: 8 hours How may units do you project you will sell per day based on the following: Hours of operation days of the week you are open: 6 days per week, 48 hours per week. B. How may sales people on the floor to sell per day and per hour: 3 Now…..Break your numbers down to how may units you can realistically sell per hour per sales person and multiply that number by the number of hours you are open per day. units/hour/person×8hrs/day=48 units/day Units each day multiply by number of business days you are open, and then multiply that number by the average retail selling price. 48 units/day × 312 days/year=14,976 units/year 14976 units/year × $30 = $449280/year
Total operating expenses: $281,472/year Rent $4500 per month x 12 =$54000/year Payroll 8hrs/person x312 days/year x 3 person x $13/hr =$97344 Cost of Good 14976 units x $30 x 50% =$224,640 Profits $449,280-$224,640= $224640
A Operating & Control Plan Please Develop the Operating & Control Plan section for inclusion in your Final Business Plan. Address the following topics in your plan: How will you manage your inventory? What are the advantages of using a software program vs a manual counting system? Or both? Manage inventory it’s the key element to success launch a fashion boutique or popshop store. Take the inventory carefully and don’t take too much in case merchandise don’t sale quickly and also will cost financial issue during one month have to pay to vendor after get the inventory. If merchandise doesn’t sell fast or season issue cause sales going down may have huge problem with the financial issue. It's also very important to customize price tag, receipts,and style code. Use software program it’s easy way and more accurate show numbers. When new products arrival we make sure to type down their name and make specially code for each different categories. Update all the inventory sell, and put inventory code on the spreadsheet.
How will you secure your property against external and internal theft? Put camera in the store and make sure the store security and we can able to see the people who work or shopping in the store. Take full responsibility for whatever they made, and if they break the rule will have punish by the owner or store manager. Establish policy for the store even thought we are running for a small business, but employ still have to follow the rules and policy. For instance steal money, sell business information to the competitors etc. Hire people carefully and before hired them do an interview and see their resume. It’s also very important whether they have experience for this job and why they quit they previous job. Check criminal history for everyone who work with us. Double check the inventory spreadsheet and receipt. How will you train your employees for All? Provide direct employee training and bring in experts to help train employees at the beginning. Unless they have enough work experience and work ability. Look to optimize employees' strengths, training my employees into more specialized roles quickly. In a small business every employee must can do many things and builds a strong foundation.
As a store owner should show the passion for the employees and make sure they have the same goal with you. Training their sells ability and during they on the sale floor also keep learn from each other. Reference: http://www.entrepreneur.com/article/220631 http://yfsmagazine.com/2013/06/25/10-effective-ways-to-train-and-educate-newemployees/
Expansion strategies Target other markets: Even thought currently market serving business well, but also think about are there any other products we can offer to our customer. For instance, our store target customer based on married woman who have a baby (housewife). Think about what your customer doing during their most time or free time, and also think about their habit. Go Global: Our store purpose is finally launching our product in global. The first thing we should do is your target country’s economic development, and analysis the country’s culture it’s also very important part.Going global can rising speed of people knowing of our brand, and increase our brand awareness. Reference: http://www.cf-sn.ca/business/business_expansion/expansion.php http://www.entrepreneur.com/article/70660