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    International Globalization Marketing Plan of Batik Essay

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    [pic][pic][pic][pic][pic][pic] Beautiful Colors of Malaysia……. [pic][pic][pic][pic][pic][pic] INTERNATIONAL GLOBALIZATION MARKETING PLAN Of BATIK EMPAT KAWAN SDN BHD ( 804520-X ) C-7-06, 2ND Floor, Block C, SME Technopreneur Centre Cyberjaya 22700 Jalan Usahawan 2, 63000 Cyberjaya Selangor Darul Ehsan Malaysia Tel: 603-88888888 Fax: 603-81000000 Email: [email protected] com Contents ? Executive Summary ? Mission ,Vision and Objectives ? 1. 0 Company Background 1. Company Abroad 2. Organisational Chart 3. Features and Benefit 2. Product and Services 3. 0 Market Analysis 3. 1 Competitive Advantage and Barriers to Entry 3. 2 Ownership 3. 3 Legal Entity 3. 4 Competition 3. 5 Market Size 3. 6 Target Customer 3. 7 Trends 3. 8 Communications 4. 0 Financial Viability 4. 1 Sources and Use of Funds Expansion 4. 2 Financial Plan 4. 3 Financial Plant 4. 4 Use of Fund 4. 5 Income statement Projection 4. 6 Cash Flow Projection 4. 7 Balance Sheet 5. 0 Sales and Marketing Strategy 6. 0 SWOT Analysis 7. 0 Goals 8. 0 Conclusion “ To be a World Class Provider of BATIK Garment Industry ”

    Our mission is to establish a Global Batik Boutique industry with world-class quality in fashion design to support corporate clients and stylist society of upper market. We would like to be known as an industry driven by social values. We strive to be a “Choice of Retailer” in developing long-term Batik business relationships with our customers, which are founded on our ability to help identify the style-fashion and recommend the best wares and look’s for our customers. We strive for continuous improvement in providing “New Design” and “Good Quality” materials selection through a “Right-on-Time ” fashion delivery.

    Batek Empat Kawan Sdn Bhd need to grow their revenue by exporting Batik products and expanding into new markets segmentation. With faster communication, transportation and financial flows, the company is planning penetrate into United Kingdom Consumer market on establishment of Batik made garment products . 1. 0 Company Background Batek Empat Kawan Sdn Bhd (BEK Sdn Bhd ) is a Malaysian owned company, a batik fashion and boutique consulting firm head quarters in Cyberjaya, Malaysia, specializing in all kind of batik design garment products. BEK Sdn Bhd incorporated in 2001, has an Sales Office and Manufacturing plant at Kajang.

    Then in 2007 we have moved into SME Technopreneur Centre, Cyberjaya. In end of 2007 our employees nearly reaching 200 peoples. BEK Sdn Bhd Employees Work Force Table |Employees Growth |2001 |2002 |2003 |2004 |2005 |2006 |2007 | |No. Years | | | | | | | | |Direct Laborers |6 |10 |40 |40 |100 |150 |198 |

    BEK Sdn Bhd has domain expertise in batik design. Our team consists of multi-skilled professionals, with high creative talents and inspirations from various platforms. BEK’s management is drawn from various garment industries and their presence to the company creates wealth of experience and an unceasing flow of ideas to help us identify client needs and new areas of business and industry growth. BEK’s employees provide the experience and tactical excellence that are needed to achieve our aggressive goals of satisfying clients requirements both today and in the future.

    The batik manufacturing division of BEK with our alliances to Indonesian batik, possesses world-class expertise in the batik garment industries domain, covering design & development and manufacturing supports of Batik Products for men and women clothing merchandiser for local and international market. 1. 1 The Management Team Mr. Shivabalan, Mr. Sanjay, Mr. Md. Yusni and Mr. Goby are the company’s Board of Directors. They spell out the vision and strategic direction of BEK and oversee the company expansion. The fours Directors are co-owners and person’s who are responsible for the growth of BEK Sdn.

    Bhd as today. Mr. Sivabalan and Mr. Md. Yusni has worked more ten years in the retail industry, including four years as the manager of an antique furniture shop. The earned a MBA degree in Marketing from College of Business, UUM. Mr. Sanjay experience lies in the fashion industry. He’s worked with designers, wholesalers and retailers for roughly 10 years. Sanjay holds a MBA in fashion merchandising from College of Design, UPM Mr. Goby is had an experience in managing a garment factory as an Senior Operation Manager for 15 years. 1. 2. Batik’s History Batik, pronounced ‘Bah-Teak’ is a technique used on textile.

    The fabrics are hand-dyed using wax as a dye repellent. Melted wax is first applied to the fabric to outline the areas that are to be free of dye. There are many methods that can be used to apply the liquid wax. The most common way is to brush it or directly pouring the wax onto the fabric. The molten wax is left to cool, it hardens and penetrates into the fabric. The fabric is then soaked in dye. The wax prevents dye from penetrating onto the fabric and therefore keeps those areas of fabric in their original colour. In Malaysia, there are two major batik types: – a) Hand Drawn Batik designs are drawn on fabric with hot liquid wax, using a metal object called “canting”, then with a brush to paint the dyes within the outlines. With the brush, shades and multi-hued designs are created. b) Block Printed Batik – instead of using the “canting”, a copper block or a wooden stamp with artistically patterned bottom is used. The block is dipped into wax and printed onto the fabric, which will then be dip-dyed. The wax will then be removed and batik with a single colour is produced. For multi colours and more complex block-printed batik, different blocks are used and de-waxing has to be done many times.

    Many types of fabrics can be used including cotton, rayon, voile and silk. The patterns are usually floral and geometrical motifs, arranged in an assortment of layouts, depending on the current trends. 1. 2 Our line of Products The Batik clothing fashion and retail industry tends to be overly youth focused. However, by closely following generational fashion trends as well as our own customers’ purchasing preferences, we will tailor our inventory to meet the specific needs of our clientele. We will solely focus on the styles, colors and cheer-up batik fits to our customers.

    Some of our Products in the Market [pic] [pic] [pic] Women & Men Cloths [pic] [pic] Batik Garment [pic] [pic] [pic] [pic] Women Wares [pic] 2. The Spin of Plans Our confidence and excellent team backup drove us to where we are now and finally we have an excellent business model and good credentials to stake claim to establish ourselves as a global Batik garment merchandiser. We have firm plans to set up a Batik made of Product Boutique shop and business offices in United Kingdom . As for this purpose BEK Batik Boutique Ltd. company was established in 2008.

    A join venture company between United Kingdom local partner and BEK Sdn Bhd. BEK Sdn Bhd holds a majority shares of 85 percent and the local JV partner hold shares of 15 percent. We have extend our services to supplier of Batik products, such as men and women ware clothing into United Kingdom merchandisers outlets and stores. The Batik made products is cater for upper market and stylist living group of peoples. We have a firm plans in setting up the company to penetrate Batik made of Products market in United Kingdom . [pic] UK Based Organisation Shares Structure 2. 1UK Based Company Establishment

    BEK Batik Boutique Ltd established in 2008 which focus on sales fashionable clothing for men and women of younger generation. BEK Boutique was located in downtown of Sunderland, which is a popular retirement and tourist destination. While our initial goal is to open Batik made of Products boutique, expansion plans include potentially franchising our retail store and/or building a well-recognized brand name. In turn, we would hope to penetrate a sizable portion of the online retail market. 1. Demographics South East Asia dominance the Batik manufacturing market industries. There no much Batik merchandiser in Europe and other part of the

    World. Related to this, the Batik market was monopoly by Malaysian and Indonesian. The quality of the Batik make us better be off compared with the Indonesian. The summer season in UK will our market focus especially along the beach sites. 2. Socioeconomic of UK The peoples of UK’s has a high purchase power, capacity for the kind of unique products such as Batik, etc. The upper-end living society prefer to be stylist and assertive at newer design of cloths. They are looking at the “latest design cloth in town”. Its has influence the majority of younger generations of UK. Company Location in UK [pic] 3. 0 The Strategic Positioning Plans

    BEK Batik Boutique will be located in downtown Sunderland, United Kingdom. Our company is a retail establishment selling fashionable men’s and women’s clothing. Our business operates within the retail industry and is classified under NAICS code 448120 – men’s & women’s clothing stores. The Company is aimed at providing summer time wares and beach site wares of batik products or cloths. As the company’s founders and Foreign partner , found that UK’s current clothing -wear market is missing the mark. In fact, most clothing shops for the 55+ set are still selling clothes that our grandmothers would have worn.

    As our younger generation population likes modern cloths with unique design. We recognize the need for UK’s peoples that’s BEK Batik Boutique caters to the up-beat, fashion and design. 3. 1 UK Market Acceptance Our key assets are our co-owners, BEK and Joanna Jensen, who bring tremendous experience and relationships to this business. Once BEK Batik Boutique is launched, our primary asset will be our brand, which will convey style, quality and a great shopping experience. In the long term, it is this brand that will separate BEK Batik Boutique from other retailers both locally and nationally.

    BE Batik Boutique will sell a combination of widely recognized name brands as well as batik clothing lines from select fashion designers. We will closely follow generational fashion trends as well as our own customers’ purchasing preferences. Moreover, we will tailor our inventory to meet the needs of our “batik” clientele. Solely focusing on the styles, colors and fits to cheer up the female figure will be our specialty. While apparel, such as batik business clothing, casual wear, tie and formal wear will be our main staple, we will also offer some accessories such as scarves, and hats.

    Profits will be earned via the sale of our merchandise. Our pricing structure will remain flexible, as we will implement suggested retail pricing on common brands as well as the standard practice of key stoning prices. Additionally, we will utilize a value-based pricing structure, which measures the value of our products to our customers such as easy access, quality, customer service and styles flattering to our target consumer. End of season sales, holiday and overstock sales, multi-buy savings and promotional coupons will be implemented at strategic intervals. 3. Global Commercial Policy and Legal Compliances We govern by WTO requirements and we comply to all its rules and regulations. UK government does not see us as a new merchandiser exploiting host county to the exclusive benefits of their capitalist-imperialist home countries. We have gone to UK as an JV with the local panther down there. Although we hold the majority share in the company but we share our core value and by employing the local to manage over day to day business activities. We adhere to the local government policy and contribute as an business tax of 45% from our yearly net profits. 3. . 1 Strategic Implementations Plan BEK Batik Boutique recognizes the importance of marketing. And to that end, we plan to promote our retail business with an ambitious, targeted marketing campaign, which will include a grand opening event, local media coverage, print advertising and a direct-mail campaign. Our goal is to keep our marketing budget to no more than 5% of our gross annual sales, and we will collaborating with local organizations such as the Chamber of Commerce and Downtown Merchants Association. 1. Facilities Presently, BEK Batik Boutique does not have a bricks-and-mortar location.

    However, we have identified an ideal spot in the downtown district of Edinburd . The gorgeous area includes numerous restaurants, an art gallery, coffee shop, candy store and a picturesque park in the town square. We have signed letter of intend, a three-year lease for a 1,700 square foot building at $13 per square foot. Comparable properties are renting for $20,000 pound/Year. Working with the property owner and the City of Edinburd downtown Redevelopment Committee, we have secured a $70,000 pounds grant to beautify the facade of the building to include painting, signage and a new awning.

    Only slight internal renovations will be required – such as the installation of dressing rooms and decorative items. This grant will given upon we sign the a contract to lease the building. When considering the addition of wall mounts for merchandise, multi-level clothing displays as well as creative floor planning, this facility is large enough to support future growth. Additionally, we will be able to conduct all aspects of our business from this location. This includes deliveries and shipments, inventory management and administrative duties such as finance, buying and marketing. 4. 0 Market Competition

    In Sunderland, there are no direct competitors offering our unique Batik garments specifically. In the Downtown District, the shops most closely competing with BEK Batik Boutique are as follows: • Robita Boutique, which targets a younger demographic and specializes in natural fiber clothing. They also carry local art and jewelry. • Caddy Corner Kids, which targets parents shopping for children, specializes in children’s clothing, accessories and toys. • Kati Kouture, which targets younger women, specializes in offering industrial chic clothing with “classic lines and a punk gothic edge. • Marjorie Joe’s Fashion & Gifts targets older women within our target demographic, but specializes in the more homemade, old-fashioned style clothing. • Petal Place Boutique targets women within our target demographic as well, but they specialize in an affordable, folksy style of clothing with handmade shawls and embroidered shirt sets. • Second Time Around targets women and may overlap our target demographic slightly. However, they specialize in consignment clothing.

    There is one Asian-store within a 60-mile radius of Sunderland. The store is similar to Wal-Mart in that it sells lesser quality items at lower price. But there are two chain department stores. They sell men’s, women’s and children’s clothing along with home accents, electronics and appliances. While familiarity is comforting, industry research indicates increasing frustration with the inferior quality, sub par customer service and vastness of Asian-stores. Not to mention, the inept sales staff and lack of selection often found at department stores. . 1Features & Benefits One key feature that separates BEK Batik Boutique from all other local boutiques and chain department stores in the area is our commitments to providing men and women of the cheer-up Batik generation stylish, quality clothing options. Because our primary concern will be ensuring our consumers are happy with the fit and style of their purchase, we will provide products tailored to all shapes and sizes of women. In addition, we will make every effort to have petite and plus size versions of our merchandise in stock.

    If they are not in stock, ordering them will be easy, cheap and efficient. Further, BEK Batik Boutique will not just be a store that sells clothes. Our clientele will benefit from an experienced, knowledgeable sales staff. Out of the gate, our goal is to implement a superior customer service system. Beyond our friendly reception and an inviting atmosphere, BEK Batik Boutique will also offer customers fashion information and advice. Our trained personnel will provide counsel that women simply cannot find at other clothing stores.

    The service will be likened to a beautician who offers advice on what hair styles best complement his/her client’s face. Our hip and qualified fashion-industry expertise will ensure our customers walk away with the perfect outfit. 2. Competitive advantage / barriers to entry To date, our primary competitive advantage is the absence of any store like ours in the Sunderland areas. In addition, company co-owner, Joanna Jensen, has worked in the fashion industry for more than 20 years. Her experience includes working with apparel retailers, clothing wholesalers, garment manufacturers, and fashion designers.

    She understands the fashion industry and knows how to spot the latest trends. While there is no guarantee a competitor will locate within our area, we have no doubt in our fashion sense, outstanding customer service and quality products. In turn we will quickly establish BEK Batik Boutique as the place for lady fits batik shop. Also, we would be the only niche fashion retail-store for hip and older women. While other stores offer some style equivalents, they are not focused solely on the original wool cloth generation. We are, and therefore, have a istinct competitive advantage in our niche. Our supplier relationships and exclusive product offerings will prevent future competitors from entering the market as a competitor. Also, it takes time to build a retail store, and by the time a competitor attempts to compete with us directly, we will have already established a strong customer base. 5. 0Product and Batik Market Development We are currently working with several apparel wholesalers, garment manufacturers and two freelance fashion designers to assemble our inventory.

    We are also working with city economic-development officials to secure all required permits and occupational licensees. Once financing is secured, we will move ahead with the facade renovation, as well as purchasing inventory, retail displays, and office supplies. Prior to the grand opening of BEK Batik Boutique, we will schedule an event with the Chamber of Commerce and commence with pre-publicity flyers, advertising and additional marketing activities. 5. 1Developments As our company grows and our Batik boutique shop earns a positive reputation, several opportunities will open to us.

    And we are considering some options already. Should we choose to remain a small local boutique, we will develop and grow our company by increasing existing clothing lines and expanding our selection to include additional products such as swim wear, lingerie, or sportswear. Within five years, we will assess the potential for franchising our stores in select locations. Additionally, as we build our business, we plan to simultaneously develop an online BEK Batik Boutique. The power and ease of an online storefront is obvious to us, and we plan to develop one quickly and efficiently.

    We also see the potential for regional and/or national expansion at some point. 2. Target Customer BEK Batik Boutique is a business-to-consumer retail company. Men and Female Batik lover are our clear target customers. However, we do realize that we will likely attract some younger women with our peripheral products (handbags, scarves, etc. ). Moreover, we expect a portion of our products to catch on with the younger generations. It’s important that we do not offer products that are exclusive to the older audience. Having said that, there are currently about 75 million people living in the Sunderland .

    A Batik lover is better described as the generation born between the years 1970 and 2000. About half of this population is women. While those born in the 1960’s are still slightly more conservative, those born during the 1940’s and 50’s were trailblazers and trendsetters. Specifically, these will be the women we target vigorously with our marketing and offerings. These women range in age from their mid 40’s to late 50’s. They value uniqueness, convenience, service and quality. As they retire, price does become a factor in decision-making.

    At the same time, they were always a generation of the “buy now and pay later” philosophy. 3. Market Size Sunderland accommodates a robust retail market. While car dealerships, grocers and home improvement retailers account for a sizable portion of the retail market, the main local shopping district is downtown. With tree-lined streets and quaint shops and restaurants, the downtown retail district is the social and shopping hub of the community. The current population of Sunderland is just fewer than 40,000. 54 percent are women who have a median age of 48. Their median income is above the national average at $48,600.

    Moreover, according to National News, Sunderland is one of the 2008 Top 6 Towns in consumer purchase growth rate in UK. In addition to local consumers, we will also benefit from tourist traffic. Sunderland is located a mere 15 miles from the sandy white beaches of United Kingdom and Clearwater. It’s also within close proximity to many Edinburh and Carlisle area of attractions. Our town boasts a healthy and recession-proof tourism industry. In addition, Sunderland hosts several annual craft and golf events, which bring several thousand of our target consumers into the area each year. 5. The up going Trends The retail fashion industry is a solid business with ever-changing styles and ever-present consumer demand. While many local host outlets and mega stores ruled the past two decades, more and more consumers are looking for change. They’re searching for a more serene and customer-friendly shopping experience. This is true especially for those nearing retirement age. However, this market decrease will not occur for at least twenty years. Even then, clothing will always be in high demand. The fashion industry in Europe has been thriving since the advent of moving pictures. 6. 0 S. O. W.

    T Analysis on Batik Business Strengths • Experience and understanding of the fashion industry • Unique shopping experience with exceptional customer service • Great downtown location • Large and growing consumer base Weaknesses • Untested market in Sunderland • While market is large, it is a niche market (Batik) Opportunities • Outstanding shopping experience will lead to repeat business • Growing online Batik Boutique • Establish a Batik Boutique clothing line Threats • Cost and effectiveness of marketing to women “Cheer-up style” • New retail shops that may or may not open in the future 5. 1 PHILOSOPHY

    Our company’s core business strategy is to combine exceptional and knowledgeable customer service with quality stylish merchandise. And n turn, we’ll provide an enjoyable shopping experience for our customers. BEK Batik Boutique’s mission is to offer women of the Batik Cheer-up generation a wide selection of fashionable, figure-flattering clothing. Our aim is to establish our company as a pioneer in this youth-obsessed industry and build a boutique brand name that will be synonymous with the fashion industry revolution. 5. 4 MARKETING STRATEGY We both have strong marketing backgrounds and recognize the significance of effective marketing.

    We expect our strategy to draw consumers into BEK Batik Boutique from the very beginning. Moreover we will hire a local PR firm to help us develop and implement a strategic marketing plan and guide our publicity efforts in a cost-effective manner. Our marketing message, logo and slogans will revolve around the idea of the Cheer-up Batik generation as revolutionaries and trend setters. Batik’s lover women are in their prime and at their best, meaning these women deserve to be recognized as a force within the fashion industry. Our goal is to keep our marketing budget to no more than 5% of our gross annual sales.

    We will partner with local organizations such as the Chamber of Commerce and Downtown Merchants Association as often as possible. We already have connections in all the necessary places. These strategic partnerships will allow us to piggyback on publicity for local events, as long as they are within our targeted demographic. BEK Batik Boutique’s initial marketing efforts will remain local as we establish a presence in our community. These will rely heavily on local print and broadcast media coverage, traditional advertising, signage, a direct mail marketing campaign and networking.

    A significant portion of our advertising budget will be allocated to print and broadcast media. Of course, we will build anticipation and excitement about the new boutique prior to its grand opening. Working in conjunction with the Chamber of Commerce, we are already talking about a grand opening soiree. This will include advertisements donated by the bistro across the street and a silent auction of a local artist’s painting collection. The collection is currently on display in the Downtown Art League Gallery. We will also hold a drawing for a $100 shopping spree and fashion consultation.

    Entry collection will start at the grand opening and continue throughout the week. Names and contact information will be utilized for follow up marketing initiatives. The Chamber of Commerce and the Downtown Merchants Association will promote the event in local newspapers and radio advertising. Comprehensive advertising and semi-annual direct mail marketing campaigns will follow the grand opening. Low cost publicity activities will also be taken advantage of such as posting sale flyers on community bulletin boards and online. Finally, marketing opportunities will be continually utilized as we expand our business and our consumer numbers grow. . 5 SALES STRATEGY BEK Batik Boutique plans to generate sales via strategic marketing efforts. These concentrated efforts will be targeting new and returning customers as well as single-visit tourist consumers. We will also implement a referral program rewarding customers who refer new customers with discount coupons. Following our grand opening, we will conduct a direct-mail campaign to targeted consumers that we have signed up through our in-store mailing program. The direct mailers will be comprised of 5,000 full-color postcard mailers. Each will include at 10% coupon.

    We will offer promotional discounts and seasonal and clearance sales throughout the year. BEK Batik Boutique will accept cash and payment via major credit and debit cards. Cash layaway plans will also be permitted. Returns and exchanges must take place within 30 days of purchase and receipts are mandatory. Our sales staff will include both co-owners and 2-3 part-times sales associates. Combined, Sivabalan and Sanjay have nearly 30 years experience in the fashion and retail industries. Comprehensive training will be provided to each sales associate – to include selling merchandise as well as how to provide fashion advice to customers.

    Our sales team will earn an hourly rate, plus a generous percentage of commission from each sale. 5. 6 STRATEGIC ALLIANCES BEK Batik Boutique plans to join the Leads Chamber of Commerce as well as the Leads Downtown Merchants Association. These organizations are dedicated to promoting local businesses within our community and sponsor several events downtown each year. As a member of these organizations, BEK Batik Boutique will gain exposure, make business contacts, and will benefit from Chamber and Association advertising, Web site promotions and events. 5. 7 OPERATIONS

    As a retail establishment, BEK Batik Boutique will conduct business seven days a week from 10 a. m. to 6 p. m. Monday through Thursday, from 10 a. m. to 8 p. m. Friday and Saturday, and 12 p. m. to 6 p. m. on Sunday. During the holiday seasons and during special events, store hours will be extended. At this point, the retail store will take require approximately 2/3 of the building’s available space. The remainder will be utilized for stock and administrative purposes. In addition to the two full-time co-owners, three part-time employees will be hired to serve customers.

    Our company will secure merchandise from local manufacturers with showrooms in Manchester . We’ll also have access to the Leads Apparel Market, which is the largest wholesale merchandise warehouse in the state. Purchasing from FAM, buyers receive product displays and promotional materials with purchase. Additionally, we will work closely with our regional sales representative. We will also attend relevant pre-season fashion trade shows. To control costs, track inventory and manage stock levels, an inventory control system will be set in place. This will include the standard bar code with its related equipment and software.

    Staff will conduct annual inventory audits and hire outside auditors when necessary. All accounting and finances will be maintained using Peachtree software. 5. 8 GOALS The following is a list of business goals and milestones we wish to accomplish our first year of operations. • Complete renovating, stocking, hiring and initial marketing. • Host a successful grand-opening event. • Penetrate and raise awareness in 60 percent our targeted consumer market. • Achieve a profit margin of 50 percent. • Build a solid customer base and mailing list. • Generate repeat and referral sales. Become a profitable business with expansion potential. • Establish a solid reputation as quality retail establishment. Our first major milestones will be securing funds and setting up our business. This is our major focus right now. In five years, we hope to have established our retail business within the community and within our industry. Furthermore, as co-owners, we would like to see the growth of our store with an increase in product lines, further penetration of the national market with online sales and, under the right set of circumstances, the opening of franchise BEK Batik Boutiques in strategic locations. . 9 EXIT STRATEGY The co-owners intend to launch and grow BEK Batik Boutique for many years into the future. In the event that our investors require repayment of their initial investments, plus a large return on their investments, we will seek a partner to buyout the investors’ shares. Another alternative is a management buyout, which will be agreed upon in advance. In the long term, we will position Booming Boutique as a profitable business that will be an appealing acquisition for any number of retail chains. 6. 1 ORGANIZATIONAL STRUCTURE As a small business, we will have a small staff.

    Both co-owners will assume leadership roles within the company and will be responsible for daily operations, overseeing marketing efforts, buying merchandise and managing inventory and all other administrative duties. A small sales staff will assist co-owners with securing sales, assisting customers and general maintenance of stock on the floor. [pic] 6. 2 LEADERSHIP BEK Sdn Bhd and Joanna Jensen are co-owners and will co-manage BEK Batik Boutique. However, daily responsibilities will differ. BEK will manage the day-to-day operations including supervising staff, maintaining inventory and bookkeeping.

    Joanna Jensen will oversee the merchandise buying for the store as well as maintain a keen awareness of trends within the industry. She will also work with our public relations firm to ensure superior marketing plans are in place and implemented. Jensen worked in the fashion industry in various capacities working with designers, wholesalers and retailers for 20 years. She earned a BA in fashion merchandising from Colliers Fashion Institute in Miami, Florida. 6. 3 STAFF MEMBERS Booming Boutique will employ a sales staff of 3 part-time employees. These positions are yet to be filled.

    However, we feel the labor pool is such that finding qualified employees will not be an issue. Our sales associates will be paid an hourly wage, plus commission. Bonuses will be provided with each year of service following an annual review to encourage employee retention. 7. 0 FINANCIAL PLAN 7. 1 REQUIREMENTS Booming Boutique will need $282,000 to get our business off the ground. We are currently seeking funding from outside investors and business loans. 3. 0 MARKET ANALYSIS The total sales reported in the BEK Sdn Bhd retail industry in 2008 (including men and women ware exceeded $4 million.

    There are roughly 0. 5 million merchandized, half of which are women. In Malaysia, the current population is just fewer than 40,000. 54 percent of the total population is women who have a median age of 48. The median income is $48,600. We will initially seek customers locally, but will increase our reach as we build our brand and secure our image. 1. 6 FINANCIAL PLAN Our company will earn revenue from our customers’ purchases of our products. BEK batik Boutique’s first-year income statement illustrates a profit margin of at least fifty-two percent, with a net income of $44,075 per month – after taxes.

    Finally, we have determined our break-even point will equal no less than $15,500 in total monthly sales. We project our annual profits to reach $380,000 by year three. Our company will generate revenue from the retail sale of clothing and other merchandise. First year sales are projected at $285,000, and we expect sales to surpass $525,000 by the end of year three. We will achieve month-to-month profitability within the first year. 1. 7 SOURCES & USE OF FUNDS EXPANSION BEK Batik Boutique requires $282,000 to launch successfully. We’ve already raised $62,000 through personal investments and a small community grant.

    We are currently seeking additional funding from outside investors and business loans. Start-up funds will be used for renovations, inventory and operating expenses such as rent, utilities and payroll. Further, our initial investment will also be used to purchase retail equipment and inventory software – all of which will produce future benefits for the company. . 5. 3 INTERNET STRATEGY As the Internet has become a staple of United Kingdom life and retail merchandising, BEK Batik Boutique will have a viable Web site. We have secured the domain name BEKBoutique. com. k and will begin site development as funds become available. Further, we plan to hire an established Web designer that will accept modest pay in exchange for future profit-sharing. Foremost, we intend to showcase our brand, our clothing and provide customers with the ability to purchase items online. As the site progresses, we will include features such as fashion advice, designer interviews, newsletters, and Internet-only specials. Eventually, we hope to establish and nurture an online social community where women can gather and discuss topics of the day, network and share clothing secrets.

    At this time we have raised $50,000 in equity capital and an additional $12,000 for a specific-use grant. Both co-owners, Robin Mathews and Joanna Jensen, have invested $25,000 each into Booming Boutique. We are seeking investors for an additional $170,000 in equity investment and $50,000 in loans. 7. 2 USE OF FUNDS Funds will be used to pay for renovations, including the outside facade (to be paid for via PDRC grant), construction of fitting rooms, sales counter, painting, carpeting, lighting, decor and display fixtures.

    We will also purchase inventory, a cash register, computer equipment and an inventory management system. The remainder of the start-up funds will be utilized to cover operating expenses, such as rent, utilities, marketing costs and wages. 7. 3 INCOME STATEMENT PROJECTIONS Based on our marketing plans, location, store size and product offerings, we expect to collect annual sales of $285,000 in year one, $375,000 in year two and $525,000 in year three. Our average cost of goods sold will be 40%, which leaves us with a gross margin of 60%.

    Our minimum monthly fixed costs are $15,500 per month, so we will need to generate sales of $25,833 per month to break even. We will become profitable on a monthly basis before the end of our first year. In our third year, we will earn net income of $105,000. The accompanying income statement demonstrates our company’s profitability. 7. 4 CASH FLOW PROJECTIONS Our business will collect immediate payment from customers, so our cash flow statement will be substantially similar to our income statement. Our cash flow statement clearly demonstrates our ability to cover all bills. . 5 BALANCE SHEET BEK Batik Boutique will launch with $220,000 in equity capital and $50,000 in loans. Credit amounts and supplier terms for inventory will appear in our balance sheet as short-term liabilities. Jewelry consignments from vendors will not be documented in our balance sheet and will be expensed as these items are sold. Details are shown in our enclosed balance sheet. 7. 6 ASSUMPTIONS Our projections are based on the assumption that the economy, consumer spending habits and population growth in Leads will continue for the foreseeable future.

    We must also assume that our present and future suppliers will continue to sell inventory to us at prices that allow us to maintain our present margins. It is also important that we are able to hire reliable employees at reasonable wages ———————– BEK Sdn Bhd, Malaysia 85 % shares UK Local Panther Ms. Joanna . J 25% shares BEK Batik Boutique Ltd, UK Vision BEK Batik Boutique Company Secretary and Legal. Mr. Sivabalan Mission Retailer Supervisor Ms. Monica Operation Manager Mr. MdYusni Objectives Design & Develop. Manager Mr. Sanjay Marketing Strategy Manager Mr. Goby BEK Sdn Bhd And Jensen

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