Business Plan

RAGGZ

Created by Group #6

Hammad Haroon 36052

Areeba Tanveer 36061
Mohsin Shafi 35881
Sayyad Hooria Abbasi 37134

EXECUTIVE SUMMARY:

Ragzz is a local clothing brand specializing in high-graphics and stylish apparel

that appeals to fashion-forward individuals seeking bold and unique designs. Our
mission is to redefine casual wear by blending creativity with quality, offering
customers a distinctive style statement that sets them apart.

Although Ragzz is not currently generating sales, the brand has developed a strong
identity through innovative designs and a commitment to creating high-quality,
visually appealing clothing. This business plan outlines our strategy to establish
Ragzz as a prominent local brand by focusing on three key areas: cutting-edge
designs, effective branding, and a robust online and offline presence.

Ragzz aims to attract a loyal customer base by launching a collection that

combines striking graphics with comfort and durability. The brand’s marketing
strategy will leverage social media platforms, influencer collaborations, and pop-
up events to build awareness and drive engagement.

With a focus on originality, style, and customer satisfaction, Ragzz is positioned to

make a lasting impact in the local fashion market and expand its reach in the
future.

BUSINESS DESCRIPTION:

General Description:

Ragzz is a local clothing brand specializing

in high-graphics and stylish apparel designed
for individuals who value bold and
expressive fashion. Focused on creativity,
quality, and comfort, Ragzz combines
striking designs with premium materials to
create unique, trend-setting clothing. With a
commitment to local manufacturing and
innovative designs, Ragzz aims to redefine
modern casual wear and establish itself as a
standout brand in the fashion industry.

Business Description:

The fashion industry is a dynamic and ever-evolving sector driven by changing

consumer preferences, emerging trends, and technological advancements. In recent
years, there has been a growing demand for unique, statement-making apparel that
reflects individuality and personal style. The rise of e-commerce and social media
has further transformed the industry, enabling brands to connect with customers
directly and build strong online communities. Additionally, sustainability and
ethical practices are becoming critical considerations for both consumers and
businesses, shaping the future of fashion.

Goals and Potential:

Ragzz aims to establish itself as a leading local brand

known for high-graphics and stylish clothing that
resonates with fashion-conscious individuals. Our
short-term goals include launching a standout
collection, building brand awareness, and cultivating a
loyal customer base through innovative marketing
strategies. Long- term, Ragzz envisions expanding its
reach, leveraging e-commerce, and becoming a
prominent name in the fashion industry. With a focus
on creativity, quality, and customer satisfaction, Ragzz
has the potential to carve out a unique space in the
competitive fashion market.

Uniqueness of service:

Ragzz stands out by offering high-graphics and stylish clothing that merges bold,
artistic designs with premium quality and comfort. Unlike traditional fashion
brands, Ragzz focuses on creating statement pieces that allow customers to express
their individuality and personal style. Our commitment to innovative designs,
attention to detail, and a seamless customer experience ensures that Ragzz delivers
a unique blend of creativity and quality that sets it apart in the fashion market.

MARKETTING STRATEGY:
Research and analysis:

Ragzz has conducted thorough research to understand market trends, consumer

preferences, and the competitive landscape in the fashion industry. Insights reveal
a growing demand for unique, graphic-driven apparel that reflects individuality,
particularly among younger, style-conscious demographics. Competitor analysis
highlights a gap in the market for bold, high-quality designs at accessible prices,
presenting a significant opportunity for Ragzz. This research forms the foundation
of our business strategy, ensuring our offerings align with customer needs and
market demands.

Target Market

Ragzz targets fashion-forward individuals aged 18 to 35

who seek bold, graphic- driven clothing that reflects their
personality and style. This demographic includes students,
young professionals, and creatives who value self-
expression and are drawn to unique, high-quality designs.
With a focus on affordability and trend- driven appeal,
Ragzz aims to capture the attention of style-conscious
consumers within local and online markets.

Competitor analysis

In Pakistan’s vibrant fashion scene, several brands offer high-graphic and stylish
apparel that could be considered competitors to Ragzz. Here are some notable
ones:

Rastah
A premier South Asian contemporary label that reinterprets South
Asian heritage and artisanship, offering unique, high-quality
streetwear pieces.
HavenWear
A Pakistani streetwear brand known for oversized T-shirts featuring
popular anime, superheroes, and car-themed graphics, catering to niche
interests.

Stunner Vision
The official streetwear brand of the Pakistani rap duo Young
Stunners, offering high-end streetwear with roots in hip-hop
culture, designed and made in Karachi.

Groovy
A brand that infuses art, culture, and purpose-driven
clothing into its collections, aiming to diminish the line
between high-end fashion and streetwear.

Hanger
Established in 2020, Hanger is a homegrown streetwear label made
for the fearless and bold, dedicated to bringing art and culture into
every piece made.
Estimated Market Share

Our aim is to capture a modest yet steady market share in the local fashion
industry, targeting 2-3% of the market within the first 1-2 years. As Ragzz
establishes its unique presence through creative designs and effective marketing,
we anticipate growing this share to 5-7% within the next 5 years. This growth will
be driven by our focus on the 18-35 age group, a strong online presence, and
continued innovation in graphic apparel, setting us apart from competitors and
building a loyal customer base.
 PORTER 5 FORCES MODEL

1. Threat of New Entrants:

The fashion industry, particularly in streetwear and graphic apparel, has relatively
low barriers to entry in terms of production, but building brand recognition and
customer loyalty can be challenging. New competitors can enter the market, but
Ragzz’s focus on unique designs and local appeal can provide a competitive edge.

2. Bargaining Power of Suppliers:

Since Ragzz is focused on stylish and high-quality apparel, the choice
of suppliers is crucial. However, the fashion industry typically has a
variety of suppliers for materials, allowing some flexibility. However,
securing exclusive deals or higher-quality materials could give suppliers
moderate power in pricing.

3. Bargaining Power of Customers

Consumers in the fashion industry have a wide array of choices, and they can
easily compare prices and styles. Since Ragzz is focusing on bold graphic designs,
consumer preferences and loyalty are vital, but buyers can easily shift to
competitors if prices or quality do not meet expectations.

4. Threat of Substitutes
The fashion industry is full of substitutes, including traditional, plain clothing and
other graphic-driven apparel brands. However, Ragzz’s focus on unique and high-
quality graphic designs can help differentiate it, reducing the threat of substitutes if
the brand continues to create exclusive and trendy styles.

5. Industry Rivalry
The fashion market, especially streetwear and graphic apparel, is highly
competitive. Established local brands and international players all vie for consumer
attention. Ragzz will need to leverage its unique designs, quality, and local appeal
to stand out and create a loyal customer base to survive in a competitive market.

OPERATONS

Raw Material Sourcing

 City: Faisalabad (Textile Hub)
 Known as the “Manchester of Pakistan,” Faisalabad is the leading textile
hub.
 Availability of high-quality fabrics, including cotton, polyester, and blends.
 Competitive prices due to a large number of textile mills and suppliers.
  Strong logistics infrastructure for transportation of raw materials.

Stitching and Manufacturing:

 City: Karachi (Skilled Labor Hub)
 Availability of skilled labor, especially in stitching and finishing garments.
 Proximity to port facilities, which is advantageous if exporting in the future.
 Large-scale garment manufacturing units already established.
 Access to cutting-edge machinery for efficient production.

Identify Location:
Choosing the right location for our studio is crucial for the success of our
operations. In selecting a budget-friendly location in Islamabad, Pakistan, we
consider the following factors:

Accessibility:
Selecting a central location with good easy access to the hub of transportation adds
convenience to both the clients and staff.

Affordability:
By selecting an affordable area, we can keep our costs low, and that means more
funding into making our services better and expanding our offerings.

Visibility:
The best strategy would be to choose a place in a bustling area where their foot
traffic is very high thus increasing our visibility and increasing the chances of
attracting potential clients.
 ZONING:

1. Physical Store Location:

Ragzz will focus on establishing its physical presence in high-traffic, commercial

areas, such as shopping malls, trendy local neighborhoods, or pop-up events,
ensuring the store is situated in zones designated for retail businesses. This will
help attract the target demographic of young, fashion-forward individuals who
frequent these areas. Compliance with local zoning regulations will be crucial to
legally operate within designated commercial or mixed-use zones.

2. Online Market Reach:

In addition to physical locations, Ragzz will utilize online platforms to reach a

broader customer base beyond its geographic zoning. This ensures that customers
from various regions, even those outside Ragzz’s immediate physical reach, can
access the brand’s products, thus extending its market reach without the limitations
of physical zoning.

TAXES:

Taxation Policies:

In Pakistan, Ragzz will be subject to various taxes, including Sales Tax on goods
sold, typically at a rate of 17% under the Federal Board of Revenue (FBR). Ragzz
will also need to pay Income Tax on its profits, with rates varying based on the
business structure. If Ragzz is registered as a company, Corporate Tax applies,
with a current rate of around 29%. Additionally, if Ragzz imports goods or raw
materials, Customs Duties and taxes may be applicable, depending on the product.
The business will also need to comply with Payroll Taxes for employees, including
contributions to social security and employee provident funds.

Tax Incentives:

Ragzz may be eligible for tax incentives such as tax credits for investment in local
manufacturing, income tax exemptions for small businesses, or reduced tax rates
under the Pakistan Tax Credit for Exporters if Ragzz expands its sales
internationally. Additionally, the government often offers incentives for businesses
that adopt sustainable practices or engage in research and development (R&D),
potentially allowing Ragzz to benefit from deductions or reduced tax rates for
incorporating eco-friendly initiatives into their operations.

Access to transportation:

While deliberating on the location for Ragzz’s store in Islamabad, Pakistan, we

prioritize accessibility for both customers and staff. The chosen location will be
strategically positioned near key transportation routes, such as bus stops or metro
stations, ensuring ease of access for customers visiting for purchases or product
pickups. Additionally, this convenient location will also benefit our staff by
allowing them to commute easily, enhancing overall efficiency. By selecting an
area with strong transportation links, Ragzz can provide a seamless experience for
both clients and employees, ensuring smooth operations and better customer
satisfaction.

MANAGEMENT TEAM:

The management team at Ragzz is dedicated to driving the brand’s success with a
combination of creativity, business acumen, and industry expertise. Led by the
founder, the team includes individuals with experience in fashion design,
marketing, operations, and customer relations. Each team member brings unique
skills to the table, ensuring the smooth execution of day-to-day operations,
strategic planning, and brand development. Ragzz’s management is committed to
fostering a collaborative environment were innovation and efficiency drive growth
and customer satisfaction.

Team Structure:

This structure will be applicable once Ragzz has a full-fledged team and after the
completion of the employee hiring process.

LEGAL STRUCTURE - STOCK AGREEMENTS &

OWNERSHIP:

Legal Structure:

To ensure Ragzz operates effectively, we will determine the most appropriate legal structure—
whether sole proprietorship, partnership, or corporation. This decision
will be made with the guidance of legal professionals, ensuring that Ragzz’s
business goals are met while protecting liability and tax interests.

Stock Agreements:

Ragzz will utilize comprehensive stock agreements for licensing our designs and
intellectual property, ensuring clarity on usage rights, payment terms, and
copyright ownership. These agreements will safeguard Ragzz’s creations and
establish transparent relationships with clients.

Ownership:

Clear ownership structure is essential for effective governance. Whether as a sole

proprietorship or partnership, Ragzz will establish ownership shares, profit
distribution, and decision-making authority from the outset to ensure smooth
operations and future growth.

Board of Directors, Advisors & Consultants:

Ragzz acknowledges the importance of external guidance for strategic direction.

We will establish a board comprising advisors and
consultants who bring industry insights and expertise
to support Ragzz’s growth and ensure informed
decision- making in a competitive market.

FINANCE

Financial Forecast:
  Revenue: Ragzz anticipates generating an estimated 6 lacs per month from
clothing sales.
 Expenses: Monthly expenses include equipment, marketing, rent, utilities,
staffing, and overhead costs, estimated at 4 lacs.
 Net Profit: Estimated net profit is 2 lacs per month.

Cash Flow

 Cash Inflows: Initial investment, monthly revenue from sales.

 Cash Outflows: Equipment purchases, marketing costs, rent, staffing, and
operational expenses.
 Net Cash Flow: Estimated net cash flow of 5 lacs monthly after accounting
for all inflows and outflows.

Break-Even Analysis:

 Break-even Point = Total fixed costs / Contribution margin per unit

 Total Fixed Costs: 1,20,000 PKR annually.
 Contribution Margin: 3,000 PKR per item (after subtracting variable costs).
 Break-even Units: 1,20,000 / 3,000 = 40 units.
 Ragzz needs to sell 40 units of clothing to cover fixed costs and start
generating profit.

Cost Controls:

Ragzz will implement cost-saving measures including:

 Purchasing quality, used equipment to minimize capital expenditures.

 Utilizing low-cost marketing channels such as social media to build the
brand.
 Negotiating favorable lease terms to minimize overhead costs.
 Hiring part-time or freelance staff to optimize labor costs.
 Adopting energy-saving measures and reducing operational inefficiencies
 through regular financial reviews.
 Investing in technology and automation to reduce manual labor costs over
time.

Budgeting Plans:
 Budget: 4,75,000 PKR for purchasing clothing production tools.
 Marketing Budget: 1,00,000 PKR for promoting Ragzz’s clothing line.

 Location Budget: 75,000 PKR for rent and utilities.

 Staffing Budget: 150,000 PKR for salaries and operational staff.
 Overhead Budget: 25,000 PKR for general operational expenses.
 Contingency Fund: 25,000 PKR for unexpected costs.
 CRITICAL RISK

Potential challenges for Ragzz include:

 Competing with established clothing brands and freelancers.

 Fluctuations in demand due to seasonal
variations or economic downturns.
 Changing fashion trends and customer
preferences.
 Negative reviews affecting future sales.
 Legal issues such as copyright infringement or
contract disputes.
 Maintaining a healthy work-life balance for
staff.

Alternative Courses of Action:

 Diversify product offerings, including seasonal collections or limited

editions.
 Implement proactive marketing strategies to enhance brand visibility.
 Set up contingency plans and emergency funds for unexpected challenges.
 Build strong relationships with suppliers and industry partners to ensure
resource access.
 Focus on ongoing professional development to stay ahead of market trends.
SWOT Analysis

Strengths:
Ragzz stands out for its high-graphic, stylish clothing, appealing to fashion-
conscious individuals. The brand’s identity and unique designs differentiate it from
competitors.

Weaknesses:
Ragzz may face resource limitations, such as budget constraints for marketing,
equipment upgrades, or expanding product lines. Seasonal fluctuations in demand
could also affect revenue consistency.

Opportunities:
Ragzz can leverage social media platforms like Instagram and TikTok to grow its
following, expand into new markets, and explore collaborations with influencers or
celebrities. The increasing trend towards online shopping presents an opportunity
to reach broader audiences.

Threats:
Economic downturns, market saturation, and
competition from both established brands and
independent designers pose significant risks.
The rise of fast fashion and counterfeit goods
could also threaten market share.
 MILESTONE SCHEDULE

TIMING AND OBJECTIVES:

Timing;
Raw Material Procurement:
Purchase fabrics and accessories from Faisalabad every quarter (e.g.,
January, April, July, October) to manage inventory efficiently.
Stitching and Production:
Begin stitching in Karachi one week after fabric delivery. Average
production time for each collection: 4-6 weeks.
Product Launch:
Launch new collections every season (Spring, Summer, Fall, Winter).
Delivery and Distribution:
Ship finished products to stores and online distribution channels within 2
weeks of production completion.
Objectives:

Timely Production:
Ensure all collections are ready for sale at least 2 weeks before the launch date.
Cost Efficiency:
Reduce production costs by 10% through bulk fabric purchasing and efficient labor
allocation.
Customer Satisfaction:
Maintain a 95% on-time delivery rate for both
retail and online orders.

Quality Assurance:
Minimize product defects to less than 2% of total
production through strict quality control.

Sustainability:
Incorporate at least 30% eco-friendly materials
into the collection by the end of the first year.

DEADLINES & MILESTONES:

Deadlines:
Raw Material Sourcing:
Finalize contracts with fabric suppliers in Faisalabad by February 15, 2025.

Prototype Development:
Complete prototype designs for the first collection by March 1, 2025.

Production Launch:
Begin production for the Spring Collection by March 15, 2025.

Product Launch:
Launch the Spring Collection by April 15, 2025.

Marketing Campaign:
Start social media and local advertising campaigns
two weeks before each collection release (e.g., April
1, 2025 for Spring).
Expansion Goals:
Add two new product lines (e.g., accessories or footwear) by October 2025.

Milestones:

First Successful Collection Launch:

Launch the Spring Collection and achieve 80% sell-through within the first month.

First Profit Target:

Break even and achieve a 10% profit margin within the first six months of
operations.

Brand Awareness:
Gain 5,000 social media followers and 1,000 online store subscribers by June
2025.

Customer Base Growth:

Secure 500 repeat customers by December 2025.

Operational Efficiency:
Reduce production lead time from 6 weeks to 4 weeks by the second collection
cycle.

Sustainability Integration:
Introduce a sustainable product line by August 2025.
ADDITIONAL INFORMATION:

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