HUW Thomas Entrepreneurship Business Plan Sample

Introduction Of HUW Thomas Entrepreneurship

Sustainability has become one of the major concerns for business in the present times. New entrants and start-ups are focusing more on sustainable clothing and products in the retail industry. In the present task, a business plan for a start-up business in the retail industry has been demonstrated. The concept of the business, the structuring of the team, and the market of the business have been discussed in the task. On the other hand, 4p's of marketing, internal environment analysis, and finance for start-ups have also been illustrated in the task. Segmentation, target, and position framework have also been illustrated in the present task. This allows the business to identify the target customers along with their behaviour in purchasing the product. The financial part of the business focuses on the payroll, sales and marketing expenses, tools and equipment, technological software, and many more.

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Mission Statement

The business's mission statement is one of the most essential factors that require attention. It is a strategic tool that helps organisations to be unique in the industry (Toh, 2021).

The business aims to provide sustainably sourced and produced cotton tops, kidswear and jeans, focusing on revolutionising the fashion industry. The company provides a unique in-store experience by allowing their customers to get AI-visual fitting. The company focuses on being sustainable by empowering customers to make environment-friendly choices. The business believes that sustainable fashion is the force of the future that will enable the development and safety of this planet.

The concept

The production and sale of clothing that places a premium on sustainability, ethical procurement, and social conscience are what is meant by the term "sustainable apparel (Gong et al., 2019)." The concept of the start-up business is based on the production of ethical apparel in the industry. The apparels selected by the start-up business consist of tops, jeans, and kidswear. In producing the products the business is focusing on ethical sourcing of the materials (CAAD Retail Design, 2022). This is the initial stage of the development of the products. The business is also focusing on waste management techniques which prove to be sustainable and available for the business. On the other hand, the packaging of the products will consist of reusable packaging. With the sustainable process in place, the business also focuses on Unique Selling Proposition (USP). Creating a unique store experience is one of the USPs of the business (Jocevski et al., 2019).

Developing a one-of-a-kind and unforgettable shopping environment to entice visitors to visit the retail establishment is a USP of the business (‌Comin et al., 2020). This entails building an engaging store layout, including interactive displays, conducting events or seminars, or providing extra services such as product customization with the use of AI or personal shopping experiences.

The Team

The business team is a conglomerate of individuals which includes the stakeholders of the business, likely CEOs, founders, entrepreneurs and other management team members who divide the work and manage the system (Indeed Editorial Team, 2022). Here, the team of this startup business includes an entrepreneur, named A. A follows up and manufactures the system of the business and its major functions. The product idealisation and materialisation are initiated by the Entrepreneur or the CEO of the startup. Then the startup has a COO or the Chief Operating Officer and B takes up that role. Their main function is to notice that the production and management of the daily activities in the organisation go according to the strategies. The role of the COO is essential as they implement organisational strategies with the daily functions of the company (Linkedin.com. (2023). Then, in this startup, there is a presence of the Chief Marketing Officer or the CMO who mainly focuses on promoting the brand value and name in the market of sustainable fashion. CMOs are the “value creators” who build and foster brand value in the market (Silva et al., 2023). The startup has a separate finance unit headed by the Chief Finance Officer, looking after and managing the revenue, ROI and investment activities. Then the business has Product Development Managers who supervise and look after the sustainable development of jeans, kidswear and tops of cotton. Then, the HR managers are also appointed to manage benefits and the employment issues of the startup. Lastly, the startup has separated logistics and delivery units.

The Market

For understanding the market the startup business will take up the model of STP that delivers the divided conceptualising of segmentation, target, and positioning of the brand.

Market segmentation of the startup business will include the classic practice of dividing the market into four sections. The market segmentation denotes four themes, including geographic, demographic, psychographic and behavioural (commence.com, 2020). According to the product, which includes cotton tops, jeans and kidswear, the demographic segmentation is a varied one which includes kids of toddlers age to 5 years old. Teenagers, seniors and middle-aged customers are also targeted in the market. The income range is also varied, encompassing non-income-generating toddlers to income-generating seniors. However, these fashion apparel are focused mainly on the price-friendly side. Geographic segmentation will be hot to-temperate customers will prefer sustainable cotton wear. The psychographic segmentation ensures that this startup will appeal majorly to the aware and environment-friendly customers who are aware of the waste management issues and enhanced carbon production. People who prefer casual wear and light wear apparel must also be included for consideration. Lastly, behavioural segmentation includes customers who prefer comfort and style at the same time.

Target means a company which wants to sell a specific amount of products and items to a specific or selected section of the market (‌economictimes.indiatimes.com, 2023). This process has helped the startup company to segment the market, divide it into pieces and strategize the development of the company accordingly. The target here, that is, for the startup business includes a varied population, starting from kids, ages ranging between toddlers to five years. Teenagers including the age of thirteen to nineteen and seniors including the age of early twenties to late forties. The target here also includes the income section that encompasses all with no income to high to moderate income groups. The target also includes fashion trends and customers' inclination towards such trends. The sustainable cotton wear of this startup business that ranges different customer ages and income groups appeals to all environmentally friendly customers and parents, who will not only buy these products for themselves but also for their children.

The positioning of this startup includes the uniqueness of this brand in the market. The startup here positions itself as a brand that emphasises the sale of jeans, kidswear, and tops that are sourced from sustainable and ethical cotton. The brand also engages in providing a unique customer experience in its stores by implementing AI-induced virtual fitting techniques.

The Marketing Plan

The basis of this plan will be based on the issues of the 4Ps marketing mix analysis, including product, pricing, promotional and place policies (‌Pepels, 2021).

In marketing there are three levels of product here includes three layers, core, actual, and augmented (‌ONPASSIVE, 2022). The core product here of this startup includes basic cotton-made tops, kidswear and jeans, benefiting the customers with comfortable wear. The actual product here is cotton that is sustainably sourced, breathable materials used and the exclusion of latex and resin printing items, which increases non-degradable wastes. The augmented division of the product here includes the company's aim of utilising the labour of artisanal communities who will provide more meaning to the production of these items.

The pricing strategy of the marketing plan includes the range of the products that this startup will provide. As the items range from kidswear to seniors, then the startup aims to range the products to a reasonable pricing strategy which allows all to buy and enjoy high-level comfort and fashion. However, as the items are ethically sourced keeping in mind sustainability, it often increases the cost price. However, the pricing strategy that this startup uses here is product skimming. In this case, product skimming means that the startup will set the price at a higher rate in the initial phase and then with time the price will be lowered (O'Brien, 2021).

Promotional activities that this startup entices are majorly focused on te\wo aspects. One of them is the usage of social media and another is the enhanced experience of customers in physical stores. The promotional activities of the business in the store and online platforms include the advertisement of vouchers, coupons and discounts. These are aimed at increasing sales. These are followed mainly over social media to increase brand recognition (‌Adobe Communications Team, 2022). And lastly, the place of this startup business includes the physical store and the experience there. With Ai-induced fitting customers are extremely attracted to try this new virtual reality experience. This aims to attract not only elders but especially to boost the sale of kidswear.

SWOT analysis

• Strength: The company has a high level of efficiency and productivity due to expert employees and machinery. This is one of the strengths of the business (‌How, 2023). The company can attract customers through the use of different marketing methods. The USP of the business is considered to be another strength of the business. The USP of the business consists of offering virtual platforms to analyze and monitor the relevance of the products as per the individual (Shopify, 2023). With the use of USP, the business can create an omnichannel marketing experience for the clients and customers.
• Weakness: lack of brand recognition is a weakness for the business. As the company is a start-up it did not gain any competitive advantage in the market. Additional funding sources are another area of weakness for the business. This has resulted in minimal improvements in the organizational structure of the company. The absence of adequate funding has also resulted in the absence of training and development processes for the employees (Pay Advantage, 2019). This leads to inefficiencies and failures in certain areas of the business. The business is also facing challenges in collaborating with other business organizations in the retail industry.
• Opportunity: The company is using AI tools and techniques to provide a seamless shopping experience to clients and customers. This helps the business to gather an extensive customer base for the business (Nibusinessinfo.co.uk, 2023). The operational efficiencies of the business process are increased with the use of AI in the company. The company has multiple distribution channels which makes it easier for the business to deliver products to the customers on estimated delivery dates. Furthermore, the company has experienced employees which enables the business to handle and manage tasks and activities efficiently and effectively in the fast-paced retail industry.
• Threats: Breaching of data and digital theft is one of the areas that may result in threats to the business (Staff, 2019). There are several entry points for cybercriminals to exploit to rob online shops. Unwary staff or consumers can be duped into handing over their credit card information via an elaborate phishing scam. Pricing pressures and changes in regulatory norms and standards set by the administration may result in a threat to the business (Mahougnon Martial Amoussou, 2022). This may lead to a decline in sales and profitability of the business in the retail industry.

Finance for start-up

The present section demonstrates the funding and the expanse in different areas of the business.

The above table demonstrates different sections and their expenses for the company. According to the above table, it can be analyzed that the company has a high expense in the payroll section. Implementing technological software also results in high expenses for the business.

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Conclusion

It can be concluded that the business needs to focus on the finance and expenses section. This is one of the areas which will allow the business to manage and handle the implementation of innovative practices and the learning and development of the employees in the business. The findings of the task illustrate that teenagers, seniors, and middle-aged individuals are the targeted segments of the business. The company has implemented AI technology in the business which allows the company to offer a positive shopping experience to the users. Through the use of AI, the business can offer customizable testing platforms for users. Furthermore, the company may face threats in the industry due to changes in regulatory policies and price pressures. This may lead to challenges for the business operating in the retail industry and gaining a competitive advantage. On the other hand, the company has an experienced employee which is one of the strengths of the business.

References

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