Diesel Business Plan

BUSINESS protrude ASSIGNMENT Creating your own reversioniate jeans We be issue to introduce a argumentation where we with the do of recognized jeans soils each over the human race entrust give ordinary peck a run into of creating their own bridge of jeans, just relieve maintaining the quality and the enclosure that the peculiar(prenominal) filth maintain for their clients. We volition rudimentary exclusivelyy be a jeans exchange barge in further with a niche that we introduce our guests to practise do jeans sort of of the regular mavins. We ordain usage the alive bran with its cut, bootleg and build but we leave alone give our nodes the hazard to choose m either of the details themselves.For wad who for modeling lack to clear a wear on jeans which turn int throw either wear from the original reseller we ecstasy the casualty that at an expert level gift a pair of jeans the wear that the custom-builter wants. besides we testament be sufficient to give the jeans an other(a)wise wash if the client is interest in a ignitor tone of the fabric but thither isnt some(prenominal) avail adapted from the guess/Brand/ obligater. If someone wants to piddle any other color or size of it on the main buttons we ar able to provide that, if one wants any other kind of back pockets we argon similarly able to provide that.Someone skill want some additional motives or fabrics on their jeans. We pass on always act to be as flexible as possible and serve our clients in any way that we best tail end. Why solve with diesel engine We endure chosen to ferment with the brand diesel motor, beca commit of many factors. We go out excogitate with an bring ined brand that has a loyal node beggarly here in Sweden. Regarding to the survey done by ISI Wissing, diesel is the account 3 universal jeans brand in Sweden, too it qualifies for the 3rd throw in when it comes to guest satisfaction.When it comes to usi ng the brand, regarding this survey, it ends on quaternary place. And that for us put downs that in that respect ar opportunities to scud this purge further. as well as in that location is a mentality among younger citizenry that they ar winsome to the Diesel brand. One of the reasons wherefore, are their out wheeling and peculiar technicals. They suppose to show the brand as very fetching and cool and besides with all their divergent harvestings they want to make a reasonable point that Diesel is something else then all the other brands. Its to a greater extent captivating and aggressive and its there for the nation who know what they want.One of their later commercial campaign are the Be wild commercial where they address their vestments and crossways to specialized hoi polloi that want to be something else. An example of their commercial is the fol junior-gradeing quotes quick may have got the brains, but stupid has the balls. , dopey great power f ail. Smart doesnt take downtide set about. , Smart may have the answers, but stupid has all the interesting questions, Smart has the plans, stupid has the stories. So these are examples that they rightfully try to have their own go on and make something amusing and attractive to their customer grip.And we weigh this is one of the things that make Diesel stand out and be an attractive and popular brand to usage with. (Willebrand, P, two hundred7), (Habitat. se, 2009) This token of harvesting we offer is poreed on a relatively young, between 18 and 35 grades as a framework style, young, dynamic, unique and with character. Our target is to focus sales in a hit produce with its own identity, a burn and a reference in the textile grocery store, underdeveloped harvest-homes for a demanding consumer sector, where each crossroad can be distinguished from the rest.This product is so expensive, its focused on one type of consumer with a risque stinting level, but that is why our helper is striking, since it is an affordable way to get what the customer as to the characteristics mentioned, insureing at the securities application. We dont think that the segment with low settleing jobs de percentage be that circumstance interested in our handicraft because we think it lead be too a great deal money for them to spend on clothes. So our business is rather directed to people who are at the come wage and untold.Preferably we find this customer base in larger urban cities where there are enough to offer for people being interested in specialized branding clothes. What we can consume a connection to might be an separate employee or an entrepreneur that already are firing their own path and future(a) their own lifestyle, non bounded to any proper(postnominal) rules or dress law at their jobs. We also think that people with a specific identity can benefit from this of business venture, if you work at some place where you have a dress code that is suits or jackets for example, you are not able to wear your average blue jeans, but you still might be a jeans guy.We then offer the first base step to change the color on your jeans to make them look as oft epochs as suit pants as possible and so they not stand out and look really different and inappropriate from what judge. An attractive base product Our dish is not unique since there are companies give care Indicustom and Somconceptshop that gives the costumer the chance to customize their own jeans. But our service offers the customer a new stimulate in the market of customizing jeans. We want to use an attractive base product and permit the customer personalize it.We looked at the other companies that were operating in the same market as us. We understood that we assumeed to revolve about on points of difference the benefits that set our product apart from the competition. Such points of differentiation are, in many cases, what consumers remember about a prod uct. No one of the existing companies that we canvass used brand/labeled jeans as the product that you could personalize. So we thought that if we use a well-known brand like Diesel as a base product that the customers could customize the way they personally want them to look but still have the quality that Diesel provides.It would unquestioningly set our product apart from the competition. just about Diesel Diesel is an outside(a) brand, record on the turn perseverance market in over 80 countries with 5500 points of sale, throughout all 5 continents. In cost of bedeviled-in the population interested in get clothes and brand accessories is to a greater extent and more important thats why the companies of the clothing attention have to offer vary products to boost their sells and their fame. The brand sells almost 3000 products from the basic pair of jeans, to the bags, belts and the house article of furniture.Diesel also owns 200 companies and having partnership with 100 topical anaesthetic anesthetic distributors, such as LOreal, cross or Adidas. The main goal is to be everywhere geographically, in different strategic areas, expanding, in that way, their international presence. Concerning the sales and profits, the companion realized a tax revenue of 1,2 one thousand millions en 2008, 80 millions in France. But even with these good results the revenue global of the assemblage doesnt really know a huge ontogeny and on the contrary decrease of 3. 5% in 2009, whereas there was a rise of 3% in 2008.Then, even if the smart set has a anicteric pecuniary position as its campaigns, its results and its growth shows there is no extra revenue since 5 years. Thats why we resolute to create this personalize service. (Pavarini, M, 2010) burned e-commerce in Sweden Tailored e-commerce is on the rise if you pray the CEO of Tailor store. He expects an yearly growth of 30 portion because the duration pot is on the rise and outgrowth faster than th e regular store trade. Tailor descent had a sales makeup of 40 million culture year and reported a profit of 5 million after net financial items.He thinks the reason of the succeeder is because consumers have benefited greatly by including the ability to analyse and compare the products of a larger throw away of products and services that can be purchased at any time and from anywhere and a greater opportunity to get more customized products to satisfy personal withdraws. And e-commerce is acquire popular in the whole of Sweden 28 billion in turnover was from distance trade, e-commerce and place order, in 2010. If you look at the total you can chaffer that it has been a two-bagger in sales in the last five years and today it represends 4. percent of the total retail sales. (Melkersson, E, 2011) Competitors When we look at the giganticgest foes its hard to differentiate who pass on be the biggest competitor for our business. Obviously every brand go forth be a compet itor since we will only when work with Diesel, also other stores who sell Jeans will also be a competitor to us and in Sweden especially Brothers & Sisters, JC and H&M are big competitors. Also companies who sell other brand that are big will be a competitor for us, such as resellers for downwind who is number one in Sweden and Levis which is number two.But if we focus specifically on our distinction from the other resellers, the custom make part, we think that companies like Tailor Store will be a big competitor for us. A fellowship that already made themselves a name on the market of custom made clothes, even though they are not only limited to specific brands. If we look in to the sector with custom made clothes a lot of them are not resellers and dealing with bigger worldwide brands. Its often some smaller brand which they import and give people the opportunity to make changes to.Here is where we have a problem identifying any specific play along that are selling luxury bran d jeans, former jeans, with the opportunity for the customer to have the jeans custom made after their wishes. If we look at the jeans market here in Sweden it has suffered from a little fallback. About 15 million pair of jeans is sold in Sweden every year. And the competition from companies like H&M, Kappahl and Lindex are getting bigger at the cost of specialized jeans resellers revenue. (Willebrand, P, 2007), (Habitat. se, 2009) External Factors shock absorber A BusinessThere are a couple of external factors we are looking into when it comes to how they can affect our business 1. GENERAL ECONOMIC AND INDUSTRY CONDITIONS both general economic, business or assiduity conditions that cause customers or potential customers to cringe or delay their investments in the jeans industry could have a negative pith on the companys strength and profitability. Currently, the world economic conditions had a bad and considerable impact on every commercial palm of the society, and the jean s industry couldnt escape from that either.Trying to launch this custom made project can be profitable for us, of course, but with that we will also try to help in a way the Diesel company. 2. COMPETITION The jeans industry is broad(prenominal)ly competitive. The intense competition inbred in the industry could result in the loss of customers or pricing pressures. 3. local anaesthetic ACTIVITIES The companys future growth rates and success are in-part dependent on go on growth and success in local market at first, as well try to hand the custom made project worldwide after studying the results in Sweden. (Essays. cc, u. d. ).The Swedish economy emerged from the financial crisis as one of the strongest in Europe. A spirited-tech local economy and a citywide system of eudaimonia benefits allow Sweden to have it off one of the highest standards of living in the world. Sweden has one of the most globalized and competitive economies today. GDP is expected to extend by 4% in 20 10 and by 3. 7% in 2011. The welfare has been able to be maintained because of the high tax levels, even if they recently have begun to decrease. Also, concerning government regulations, Swedens economic granting immunity score is 71. it appears that the overall regulatory and level-headed environment, transparent and efficient, encourages robust entrepreneurial activity. (Traveldocs. com, u. d. ). 4. amicable FACTORS The profit margins realized by the company vary somewhat among its products and its customer business units. Like we said before this custom made opportunity that we are going to submit to Diesel is a product to a narrow customers base (18-35 years), and they maybe dont have the possibility to pay this kind of services. Thats why we are trying to make an line of battle with a company like Diesel who stay affordable. . TECHNOLOGICAL CHANGES AND PRODUCT TRANSITIONS The jeans industry is characterized by continuing improvements in way of life and design which resu lt in condescend introduction of new products, short product life cycles and continual improvement in product wrong/design characteristics. 6. gillyflower MANAGEMENT/SUPPLIES The companys ability to manage its stock has been enhanced by favorable affix conditions in the industry. The companys manufacturing outgrowth requires a high volume of quality components that are procured from trey party suppliers.The six external factors high illumi adopt in this paper are identified as primary factors in this industry (Essays. cc, u. d. ) go-ahead resource planning and organization commencement exercise of all we have to have our sell to grease ones palms the jeans from, we obviously by our jeans from a supplier since its a specific brand that we will be using. We affect a workstation where we do our tweaks on the jeans, since we will do the abridgeing in-house and not outsourced. significance we will have a subdivision changing buttons, sawing on new pockets on the back of th e jeans, wearing them and washing them.We will buy the raw jeans models from Diesel and all the tailoring we do will be done in-house. This way we get a overview over the whole subroutine and we will be able to overlook it and see what works and what does not to be able to make changes and develop our working process and expand. In long term we possibly would like our tailoring to be outsourced as well but then we have to get a lot of bigger volumes and sales. Our company needs to be of a local medium proportion, after request prices we have chosen an office in the center of Linkoping, over 90m2 store 100m2.The letting price thousand per month. Costs of work / initiation of the company Machines and information processing system products manufacturing business Units Euros Sewing Machine 2 molarity Washing machine 1 1000 Mac Pro Apple 1 1200 Jet color laser multifunctional newspaperman Hp 2 750 Textil Studio 8 Macromedia 1 480 Quark Xpress 6. 1 laissez passer Diseno Quark 1 2. 200 Norton network Security 2007 Antivirus Symantec 1 60 arrive 6. 990 Furniture Product manufacturer Units Euros Computer table ERISTER IKEA 4 520 Chair STEFANO IKEA 4 320 shelf FJUS IKEA 4 four hundredChairs IKEA 4 80 filings IKEA 4 clxxx cap fluorescent bars IKEA 6 180 Total 1. 680 Total computer equipment and furniture company Computer equipment 6. 990 Furniture company 1. 680 Total 8. 670 Telephone rental and adsl local anaesthetic callsADSL Internet 10MG 40Per month Production process of our company First Phase In the first instance, we take care of developing the product design, according to the specifications and style that the customer provided to us. We need the measurements of the client to make the design design Textile Studio 8. arcminute Phase Then carry through the design by computer program, the design is sent to our textile machinery in the warehouse where the design is recreated in the pants, is embroidered, sewn and glued, additional accessories o r tweaks that you must do the product. Third Phase. In third phase, the products pass an exhaustive exam of tissue and finishes, in order to say that the product is done with the selected design and has no damage. Distribution Our field is nationwide, with an eye to expanding our international infrastructure over the medium term.As our company turnover grow grapple on the market performance will be broader. The distribution is provided by our company is an outsourced process by which we have a freight agreement with the company MRW light which provides an optimum distribution at a reasonable price, short and medium term by increasing our relationships grow if our trade with other countries. The cost of distribution affects the concluding price, so that the customer pays, revenue is put down in the product itself. Marketing (advertising)In the field of marketing, the company will open a web situation with a catalog of examples, price list, attain, and an application through whi ch you can perform orders. We have thought hiring advertising situation in newspapers to national newspapers, the expenses are high, we will follow up weekly to see the number of people responding to advertising, if it is positive we will find these services. Also we will do advertising in social networks, outset a separate of our company, our website advertising, adding to people that this pen for potential buyers to our profile social. So as included in online media websites such as www. undoanuncio. com. Regarding marketing we will also try to use SEO(Search engine optimization) as much as possible to get more hits when our possible customer base order the web and search for companies that does custom made clothes. Implementation Plan We need to contact Diesel / a Wholesale to be able to secure our purchases of the Jeans. We need to establish a workplace where we change the Jeans into the customers wishes. Since our main sales pass on will be via the internet we need to est ablish a homepage with the possibility to tailor your jeans and also a web store on the homepage so our customers can buy the jeans they want.We have to get some it-system that will be able to trace our orders and the specific changes the customer wants so we can make them and then ship them out to our customer. action mechanism COMPLETED OR UNDERTAKEN in applicable Quarter OF 2011-12 Development Finding investor interested in investing in the business. 2011 Q1 Attaining the site for thebusiness and making any needed fleshly developments 2011Q1- Q2 Proof-of-concept development. Need to develop a picture for the investors to see. 2011Q1- Q4 Marketing Choose our target market, the group of customers we want to target 2011 Q3 Plan how to go on and address your customers, with specific measures coveringproduct design, pricing, distribution and conversation 2011 Q3 Q4 Promote the service to potential investors and buyers. 2011 Q42012 Q2 management Recruit personal for th e development of the service. 2011Q1- Q4 preparation of personnel 2011Q1 Q3 Forming a team 2011 Q32012 Q2 financial plan First of all our initial cost for our company is the cost for let downing it up and register it as a incorporated company and for that cost we purpose 7000 euro.Next up is our warehouse and office with its equipment needed. For the first month we need the capital for investing in our equipment that we estimate to 8700 euro. After that we will have cost for our rent and staff, also for our purchases and a one-time(prenominal) fee to our web developer and a cost for every time we need to update our website. We estimate that the web developers onetime charge would be about 10000 euro. Our rent will be 1000 euro with a down payment for 3 months. Also we have a nonprescription(a) for the officer and warehouse for 500 euro.That would slopped that our total initial cost would be 29200 and we count with a big miscalculation so we would say 30000 as initial co st. Our periodical cost will be riptide 1000 Telecome 40 Salary 3000 for 1. 5 fulltime employee Utilities 500 Distribution 500 stark Material 50/jeans +5-15depending on what customer choos to add to the jeans Promotion 2000 Other expenses 400 That would be a total of 7500 in monthly expenses but also a additional part depending on how many jeans we manufacture sales forecast We think that we can start with selling 75 pair of jeans the first month, meaning 2,5 jeans per day.And then we count with an outgrowth of 10 % per month. Our price range on the jeans will be 120 200 and we have counted with an average price on 140 per pair of jeans We count with an increase in sales as briefly as our website is up and running and getting some regular visitors and that they spread the word. Also it will take some time for our promotion and marketing to get effectual What we would like to offer our investors are 20% of the shares in our company for the price of 15000 , the rest we w ould make up as a loan from the bank with a low mortgage and try to pay only the interest.Bibliography Melkersson, Erik (01-04-2011). Skraddarsydd e-handel pa frammarsch, www. hd. se. Avaible at http//hd. se/ekonomi/2011/04/02/skraddarsydd-e-handel-pa/ 13-10-2011 Willebrand, Peter (16-08-2007). Jeansjattarna haller greppet om svenskarna, www. resume. se. Avaible at http//www. resume. se/nyheter/2007/08/16/jeansjattarna-haller-grepp/index. xml 10-10-2011 Habit. se (17-12-2009). Jeansmarknaden tappar fart, Habit. se. Avaible at http//www. habit. se/iuware. aspx? pageid=1780&ssoid=11250412-10-2011 Pavarini, female horse (07-05-2010).DIESEL NAMES NEW CEO, RESTRUCTURES simply THE BRAVE, www. sportswearnet. com. Avaible at http//www. sportswearnet. com/businessnews/pages/protected/DIESEL-? NAMES-? NEW-? CEO-? RESTRUCTURES-? ONLY-? THE-? BRAVE_2503. html 12-10-2011 Essays. cc (u. d). External Factors Affecting A Business, www. essays. cc. Avaible at http//www. essays. cc/free_essays/b2/u tv218. shtml 09-10-2011 Traveldocs. com (u. d). The Swedish economy, www. traveldocs. com. Avaible at http//www. essays. cc/free_essays/b2/utv218. shtm 07-10-2011