Business Plan
Ausgust 2018-08-15
164229
New Venture Creation and Business Planning
Table of content
Executive Structure.
Venture Overview
Description of the Venture
Mission statement
Vision Statement
History behind VogueAfrik
Marketing Analysis
Targeted Consumer
Market growth and profit
Competition in United Kingdom
Competitive Advantage
Solution
Organisational Team
Board of director quality
Financial plan
Cash flow
Breakeven
Income statement
Threats
Possible upcoming threats
Support Request
Appendices
Reference
Executive Summary
Venture Overview
Description of the venture
Vogue Afrik is an upcoming African business, which consist of different talented
vendors from both Nigeria and Ghana specializing in authentic African wear in
the Europe. It aims to promote and support cultural fashion and creativity
through a mix of traditional and western contemporary clothing and accessories .
There is a huge gap in the market, due to lack of African culture in England
procured to compliment the western fashion. Vogue Afrik is broken down into
different segment, male, female and accessories.
Vision statement
Our vision is to make African wear the most popular amongst other migrants in
the United Kingdom. We aim to be one of the biggest merchants in the United
Kingdom.
Mission Statement
In 3 years, we aim to organize a supply change structure that will facilitate the
products of African wears from the various base countries.
Nigeria, Ghana and Senegal and processes and export to the United Kingdom
within 5 days of express shipping, using our online business platform. (e-
commerce).
Objective
We aim to increase the population of the African wear from 1%. A lot of people
are losing touch with the culture and origin.
Success
We aim to identify competent and reliable workers. Also, we aim for the quality
of out product to be worth what our customers are paying for with our quick
delivery service as a selling point. Another priority is a good marketing structure
regular engagement to obtain feedback.
The history behind vogue Afrik
In the past years, the demand for African wear has been extreme. Our cultural
wear is very unique; it is used for special occasions like weddings, burials and
birthdays. Every time an African needs an outfit they go through an extensive
process to get it for one occasion. This discourages people and they lose touch
with our culture, because it is hard for find abroad, I have identified the gap,
making it easier, faster and cheaper for Africans. It then became very clear. That
the demand level was going up and there was minimum supply.
Proposed Entry Strategy?
Our business will target the niche market segment of Africans in the United
Kingdom. It’s branded as an extraordinary valued brand with high-class quality
and worth. The price is our concern, because Africans convert currencies. We aim
to targets the prime group of consumers. As they are the market influencers,
High margins is what we want to offer our consumers and make it an affordable
price as well.
Market Analysis.
Demand gap.
There is a growing demand as result of the increase number of African who are
residents of the United Kingdom. They can be here for different reasons like
Education, work, residential family, but the demand for the cultural wear is high,
due to this increase in migrants they need to maintain their social culture tie
back in their country of origin.
Marketing Strategy
After an intensive research, we have discovered ways to get our customers, we
will create social media page, (Twitter, Instagram and Facebook) posting pictures
of what we offer. Also majority of our market are in south London. We will share
flyers to make people aware. Lastly, we will encourage of customers to share the
news by posting pictures and tagging our business on different platforms in
order to get 15% off on their next order.
The 4 p’s
Price . We expect our minimum order to be £60 or
more, plus delivery fee of 30 pounds on every
order
. Upon market entry, we will focus our pricing
strategy on customers who want quality and
not quantity
Product . Vogue Afrik is a high-end business that sells
quality and unique product.
. Vogue Afric is a modem used to connect with
the African culture. It is an easier and faster
way to get traditional wears from Africa in the
united kingdom.
Place Vogue Afrik is an e-commerce business, but our
headquarters will be located in 78, Sura, Lagos,
Nigeria.
Promotion We will market our business online, using
social media platforms, like instagram,
Facebook and twitter mostly our website
online, because most of our target markets are
on there.
. Offering 15% when referred by a friend or
reviewed on customer’s social media.
. Lastly loyalty cards.
Growth Strategy
Market penetration will be our growth strategy. We wish to expand our market share
Market growth, brand recognition and loyalty. We will encourage our customers to
buy our product and review it on their social media platforms. Our strategy will
include seasonal fashion, new promotions and offers, loyalty cards and gift cards.
Looking in the future if our venture succeeds will divert to market expansion, will we
organize pop up store in south London. We will become a multinational company. We
will start delivering to America, as we know the demand is high there. Our aim, is for
our culture to be well known in the world.
Market research
We conducted both primary and secondary Research; Primary research was
conducted in south London, but interviewing 10 Africans. Asked 3 important
questions on their view of the venture although, 10% complained we were
overpriced.
Interview questions for Vogue Afrik.
1. Where did you get your traditional Cultural wear from on your last event?
2. How much did you spend altogether?
3. How often do you wear traditional wear in a month?
Porter’s 5 forces
Threats of substitute Although our cost is high, how sure are we that
the quality of our product will ensure a
continuous demand
Threats of new entry The barriers to the idea is very high, it is an
easy model to replicate. We rely on our
suppliers.
Power of suppliers Our suppliers from Nigeria are key in this line
of business, so we have to keep a good
relationship with them.
Rivalry amongst existing competitors Our key competitors are Asoebi, they are well
known but they lack fast delivery, and that is
our selling point
Target market
We provide high quality items with fast delivery; we aim to capture the elite. Our
target market is both middle and Upper class.
Objective
We aim to increase the population of the African wear from 1%. A lot of people
are losing touch with the culture and origin.
Success
We aim to identify competent and reliable workers. Also, we aim for the quality
of out product to be worth what our customers are paying for with our quick
delivery service as a selling point. Another priority is a good marketing structure
regular engagement to obtain feedback.
Proposal form
Vogue afrrik is a private limited company, which permits us to gain external
investments from venture entrepreneurs and family members to enlarge the business.
Limited liability similarly protects owners from the financial risks in case the business
fails.
Description of the workflow
Ecommerce as being developed and it is called [Link], which is
still under development. This platform showcases different styles and sizes
online. Interested buyers will be able to identify their business and place in order
website will be able to marketed probably using different channels. When people
order, our Nigerian office will receive the order and take it to production, which
will happen within a week. Vogue afrik comprises of many vendors who designs
clothes, shoes and accessories. These vendors will be given 2 days from when the
order was placed. All produced orders that are received during a particular week,
before 12 noon on Saturday are packaged and made ready for shipment to the
united kingdom on Monday morning by Air –freight, This air-line is low budget.
There will be a recurring base in London through where local distribution to
customers address will take place using the service of courier companies.
Examples; DHL, Royal mail.
The company makes a margin of 15% over and above the production cost. While
cost of shipment and distribution is some directly by customers at no extra
charge. We believe that this transparency will promote integrity to the business
and help the company achieve competitive pricing, this will enable the business
to charge
vo g u e
supplier courier consumer
Afrik
When and order is placed online. We receive the order and give an immediate
alert it to the picked specialized Tailor to start work. When the fashion designer
completes the work it is sent to the office in Nigeria for labeling, quality check
and packaging, then delivery inspection, Lastly, it is sent out to the specified
address for delivery.
Critical Risks
We have identified different risk that can affect the business, government
regulations on importing the goods from Nigeria to United Kingdom. Corporate
tax, exchange rates fluctuation, lowly inventory management and high employee
turnover. The different ways to minimize this risk has been shown WHERE?
Breakeven chart for vogueAfrik
Financial predicted plan for vogueAfrik
Years Number of Production Profit margin Packing and Total
orders. Cost at £60 15% cost of shipping Revenue
order per production disruption
£30 per order
1yr 1,040 62,400 9,360 31,200 104,000
2yrs 1,300 78,000 11,700 39,000 130,000
3yrs 1,625 97,500 14,625 48,750 162,500
Total 3,965 237,900 35,685 118,950 396,500
Funding Request
Investment required Price £
Website design 5,000
Rental office in Nigeria 1,000
Furniture 500
Equipment 500
Salary for 4 workers for the first 9000
3months
Manager 3000
Total 19,000
Withdrawal strategy
Option 1: Acquisition of Competitors
Having a possibility of a smooth run in the business with enough liquid cash to
increase in the business, and we recognize gaining market share and developing
brand new opportunities, in order to increase our market share and profit in the
long run we would think of adopting any innovative ideas they may have
executed in their business.
Option 2: Acquired by Competitors
Another option is, being acquired by a larger well known competitors that is
interested in our venture, is another possible direction, Having our competitors
acquire us rather than share the market share.
The Worst-case scenario, Option 3: Dissolve and sell assets
This would be the least desirable strategy exit, but because of the uncertainty
factor nothing should be accepted as an option. Just case we see our income does
not meet our expected outcome and running out of costs we would contemplate
on selling out current assets and earning any cash to reimburse remaining debts.
Office Layout
Suppliers Category Place
Veteran Menswear Ghana
styleport Womenwear Ghana
Asoebi Menswear Nigeria
Houseofove Womenwear Nigeria
TempleBeads Necklaces Nigeria
Yoofi Shoes Nigeria
The organizational Chart
CEO& Co-founder
TEMITAYO
Manager
FLORENCE External Advisor
FEMI
Adminstration and Marketing Manger Suppliers
logistic manger IFE Relations
TOPE NAV
Ownership structure: The owners of the business are from the board members.
Temitayo owns 53% percent of the business and Florence owns the remaining
47%.
We have only one External Advisor, Femi.
Plan for employees.
As an upcoming business, we have to reduce cost, because we have limited
resources. the mangers in each sector of vogue afrik will be active members. They
will have to manage the day-to-day activities in the business. Managers have great
confidence in the business idea and are participating actively in establishing the
business in its prime stage as each of us has financed our own money into the
business.
Tope, Angela, Ife and Nav will be working in the office as employees. Making sure all
orders are given to the right vendor for production and delivered on time to
customers. Employees will be able to experience job rotation, develop trained labour
and maintain high inspiration and motivation; therefore we aim to develop
multifunctional teams in the future as the business expands.
Tope, our Administrative and logistic manger will have develop the understanding,
knowledge and services of managing the business and deep awareness of the venture’s
culture. Then, they will have the ability to recruit and select the right and suitable
employees for our business, and take charge of any risk that may occur, human
resources, operation and marketing departments
Location of vogueAfrik
As an online company, we do not need to spend a large sum of money on our
location. Although, we have an office in Nigeria where our dad to day operation
will be going on. This is in 78, Sura shopping complex, Ikoyi Lagos. we have
picked an office that is comfortable for our employees with high security, and low
budgeted. We pay rent of £1000 monthly.
Working Hours
The office in Nigeria opens everyday of the week except Sunday. On Monday to
Friday, we open from 9am to 6pm and on Saturday we open from 10am to 3pm.
which is 61 hours a week. The law in Nigeria states that a person should not
work for more than 72 hours in a week. Additionally, it is required for employees
to have 2 breaks in between their shift. By following the Nigerian authoritarian
practises, our staff will work approximately 8 hours a day with mealtime and
breaks provided optionally.
Customer service
In an organisation like this, customer service is very essential. Just in case a
customer needs help ordering, or there is a delay with an order. We will provide a
platform were our customers can communicate with us on the website during
office hours.
Compensation
The compensation policy of our firm includes employee insurance, pension and
bonus relating to our performance and generous holiday premiums. The aim of
the package is to train employees to become loyal and hard working to the firm,
acknowledge that its success is beneficiary to them and motivate them to
increase productivity, efficiency and deliver outstanding customer service to our
clients.
customer needs help ordering, or there is a delay with an order. We will provide a
platform were our customers can communicate with us on the website during
office hours.
The competition
Recognize Risk Risk possibility Impact of risk Strategy to
prevent risk
Suppliers may be late LOW HIGH We will look for dedicated
tailors to guarantee we
have selected the best of
suppliers in Africa. We will
make sure they have
attributes of dedication and
time consciousness. With
great track records. Other
than that, we will make
sure we have back up
suppliers if any emergency
occurs. We will build
relationships with our
supplier by motivating
them with different
benefits and recognitions in
order for them to get the
work done on time.
Wrong size MEDIUM HIGH We would provide
different ways in
which people can get
their size, using (XS, S,
M, L, XL) or specifying
their measurement. If
the sizes been sent
does not fit they have
10days to send it back
with an extra charge
of £30.
Adverse MEDIUM HIGH This will diffinatly
transformations in the have a negative
government policies impact on our
business. If the taxes
increase that will
reduce the disposable
income for our
customers. The
service we provide is
not an everyday
necessity, our
customers can do
without it, we are
already pricy.
Increasing the price
more than what it is
can discourage our
market.
Competitors may MEDIUM MEDIUM If our competitors
reduce their price, we
reduce their price
will come up with
different ways to keep
our loyal customers,
loyalty cards, sending
our customers offers,
encouraging them to
buy in bulk to save
cost.
Competitor Strengths Weaknesses Opportunities
SEZANE Known worldwide. Fixed sizes Customers pick the
style and we
customize to their
perfect fit.
Jtaphrique 24 Hour service to Delivery service takes We would provide fast
help customers. a month. delivery, in order for
customers to have last
minute option
Tdare Marketing system is TDare only sells We would provide for
strong. women wear both male and female
Table to show each members Attribute and role.
Name Role Appropriate
attribute
Temitayo CEO and co-founder Solid leadership skills, very
strong extrovert.
IFE Accounting manager Able to detect the estimate
costs and revenue of the
businesses and produce
financial forecast.
ANGELLA Marketing manger Able to advertise the business
to the right customers.
NAV Suppliers relations Makes sure all the different
vendors met up with their
order
Reference
[Link]. (2018). Labour Act. [online]
Available at: [Link]
[Link]/[Link]
[Accessed 16 Aug. 2018].
[Link]
nline_shopping_womens_fashion_uk/6883
[Link]
[Link]
