CLOTHING RETAIL BUSINESS PLAN

EXECUTIVE SUMMARY

Millennial Clothing Store is a start-up retail establishment that will sell unique clothing to
every one of the millennial generation. This business will be a casual urban wear traditional
clothing store which will be run by the owners, Sena Ocansey and Fauzia Amadu, as a
Partnership. It’s a new apparel store that caters to everyone especially students. It will be
located at the forecourt of Central University’s food court. Millennial Clothing Store has
centralized itself directly in position to the residential location and social activities of our
target market. We believe that this is critical to our initial success and long-term growth.

While our initial goal is to open one 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. . Our intent is to provide the
school with unique clothing they would normally purchase outside of the state.
The business will be financed with $18,299 of the owners' money plus $35,444 from a
business loan. Starting costs are $53,743. Sales are estimated at $187, 500 per year by the
first year. A positive cash flow will be produced at the end of the first year.

OBJECTIVES

Millennia’s main objectives are to:

• Establish a unique clothing retail business on campus

• Create jobs

• Provide quality clothing and customer service at a reasonable price

MISSION

Millennial Clothing Store is a retail clothing store specializing in unique clothing and
accessories. We encourage customers to be experimental with new clothing styles. Our
mission is to understand what our customers' needs and hopes are after buying urban wear
clothing.

Millennial Clothing Store will maintain financial balance while delivering a quality product
to our customers. We will make our clothing accessible throughout campus by way of
establishing a retail location, fashion shows, and events. We will make a profit and generate
cash. We will provide a rewarding work environment and fair compensation to our
employees; ultimately provide excellent value to our customers, and a fair return to our
owners.

Keys to Success

Millennia’s keys to success include: implementing an effective cash flow plan, achieving
efficiency, running our retail store professionally, and maintaining a serious business
discipline to everything we do.

COMPANY SUMMARY

The business will be named "Millennial Clothing Store." This is to identify the store with
Central University, where most of the store's inventory will be purchased.

Millennial Clothing Store's primary goal is to find customers and keep them coming back.

Millennial is designed to help customers change their look without buying an entirely new
wardrobe. We will cater to the person wanting to build a new wardrobe by purchasing
clothing and accessory pieces to add to clothing they already have.

Customers will rely on the business they purchase pieces from to give them continuous help
and personal opinions. Theirs is a business that repeats and it will be easy to establish a
strong clientele.
Customers will save money from having to buy a complete outfit by just purchasing pieces.
They will also enjoy shopping in stores that are well inventoried and serviced-minded, such
as Millennial.

Millennial will also cater to all types of customers and for all occasions other than routine
shopping. Examples: friends buying gifts for their friends. Millennia’s clothing store will be a
source of wearable gifts.

The company is a new business aimed at providing ladies of the millennial generation stylish
clothing options to buy and wear. As the company’s founders and as Millennial ourselves, we
found that Ghana’s current millennial-wear market is missing the mark. In fact, most clothing
shops for the youth are still selling clothes that our grandmothers would have worn. As our
local population ages and more fresher’s come to school, we recognize the need for a shop
that caters to the up-beat, fashion-forward Millennial generation.

The hours of operation will be Monday – Friday 12p.m-7p.m., Saturday 10a.m-8p.m. and
Sunday 12p.m.-6p.m. There will be extended special hours designated during SRC week
programs and other social events.

At this point, the retail store will take approximately 2/3 of the forecourt’s available space.
The remainder will be utilized for stock and administrative purposes. All merchandise will be
purchased according to the company’s mission and customer focus of outfitting all sizes
including ladies plus sizes.

 Company Ownership

Millennial Boutique is organized as a partnership among the two partners of Fauzia Amadu
and Sena Ocansey. Sena has worked two years in the retail industry, including a year as the
manager of a bag and jewellery shop.

Fauzia’s experience lies in the fashion industry. She’s worked with designers, wholesalers
and retailers for roughly four year

Sena Ocansey will handle all administrative and managerial duties while Fauzia Amadu acts
as a silent partner.

 Start-up Summary

The company will start with three months inventory on hand for apparel and an accessory as
this is the main revenue generator. The majority of the company’s assets will reside in
inventory.

 Company Locations and Facilities

Presently, Millennial Clothing Store does not have a bricks-and-mortar location. However,
we have identified an ideal spot on campus, the food court. This location is central to the
geographical location for the school. The store is approximately 2500 square feet. It contains
two dressing rooms and a unisex restroom. Parking space is available in front of the store
with additional spaces in the rear for overflow.

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 shipment inventory management and administrative duties such as
financing, buying and marketing.

PRODUCTS

We will be purchasing through sales representatives and manufacturers in a variety of sizes,

colours and style to fit our target market base.

Millennial Clothing Store will sell a combination of widely recognized name brands as well
as clothing lines from select fashion designers. We will closely follow generational fashion
trends as well as our customer’s purchasing preferences. Moreover, we will tailor our
inventory to meet the needs of our millennial clientele. Solely focusing on the styles, colours
and fits to flatter the female millennial figure will be our specialty. While apparel such as
business clothing, casual wear, jeans and formal wear will be our main staple, we will also
offer some accessories such as belts, scarfs and hats.

Our goal is to implement a superior customer service system. Our primary concern will be
ensuring our consumers are happy with the fit and style of the purchase, we will provide
products tailored to all shapes and sizes of women.

MERCHANDISE ASSORTMENT

The retail store will stock a wide variety of clothes such that it can be described as a one-
stop-shop. The expansive store handles hundreds of clothes which are well arrange in
categories such that it is easy for customers to shop. Millennia’s line of clothing of more than
32 pieces, include denim, twill and linen bottoms, linen and silk shirts, silk/cashmere sweater
vests, T-shirts, and hats.

Millennial, like Mark Zap's, decided to carry a line of clothing that is a "more simple" but
still gives off "a chameleon type of feel" in which "it can fit into any type of setting—not too
bright or loud." According to Mark Zap this type of urban wear has projected sales in the
range of $15 million to $18 million depending on store size. New growth developments in the
urban wear industry have made obtaining the clothing much more simple and easy. This
clothing can also be sold at festivals and fashion shows. Beautiful slacks and trousers will be
carefully hanged on a Gondola to the side of the dressing room, alongside shelves generously
stacked with folded clothes of well-known western wear brands.

 Competitive Comparison
Millennial Clothing Store has a number of advantages that will allow us to build our brand
identity, add value to our merchandise and build a loyal customer base while standing apart
from our competitors.

One key feature that separates Millennial Clothing Store from all other local boutiques and
chain department stores in the area is our commitment to providing ladies stylish, quality
clothing options.

 We will make every effort to have petite and plus size versions of our merchandise in
stock. If they’re in stock ordering them will be easy, cheap and efficient.
 Millennial Clothing Store will not just be a store that sells clothes. Our clientele will
benefit from experience, knowledge sales staff.

• Our location is central to our target customer base.

• We will maintain a detailed record on each customer, logging addresses, their

purchases, size, and brand for customer follow-up and in-house promotional purposes.

 Sourcing

We will shop for our merchandise as outlined below:

With manufacturers who have a regional representative, we will place our weekly and
monthly reorders with them and review new products. For all other brands we will work
directly with the manufacturer and utilize product catalogues and line sheets.

We will also work to solidify our relationships with sales representatives and vendors so that
we may achieve decreased cost of goods. Our competitors, (both direct and indirect) purchase
from the same sources and we believe that through marketing programs and strategic
alliances we will begin to gain a competitive advantage.

 Future Products

As we achieve and exceed our sales and profitability goals, Millennial Boutique will add our
own personal in-house label of clothing that will include millennial shirts for women and
shirts for men. We will expand our line of brands with those that have been repeatedly
requested by our customers. An e-commerce website will also be created to increase our
distribution channels and expand our customer base to a national level.

MARKET ANALYSIS SUMMARY

Millennial Boutique is a business-to-consumer retail company. Female millennia’s are our

clear target customers. However, we do realize we will likely to attract some young men with
our peripheral products (shoes, belts, shirts etc.). Moreover, we expect a portion of our
products to catch on with the older generations. It’s important that we do not offer products
that are exclusive to the younger audience.
Having said that, there are currently about five thousand millennia’s living on campus. A
millennial is better described as the generation born between the years 1981 and 1999. About
half of the population are women.

While those born in 1981 crave for human connection and authenticity in their lives, those
born during 1990 and 1999 are technology savvy and technology dependent. Specifically,
these will be the women we target vigorously with our marketing and offerings. These
women range in age from their early 20’s to early 30’s. They value advanced communication
and internet connection serves, convenience, service and quality. As they grow and start
working, price becomes a factor in decision making.

The primary target customer of Millennial Boutique will be students located on campus. As
we are situated in the epic-centre of their residential community we believe they will make up
the largest percentage of our customer base.

The secondary target customers are students off campus, Prampram and Dawenhya district,
we expect to receive the patronage as they are very loyal to fashion-forward apparel.

The last target customer of Millennial is listed as “other.” As popularity about the store
increases we expect to see an assortment of curiosity seekers, and local residents from
campus as well as seasonal purchasers during week long programs.

The student population is concentrated heavily on campus therefore leading to the highest
concentration of our customer base.

 Target Market Segment Strategy

The goal of Millennial Boutique is to serve the local Ghanaian community that have
difficulty finding up-beat clothes that fit their larger frames. We will also serve students on
and off campus which tends to have a slimmer yet shorter frame. Both of these markets are
undeserved in the major Ghanaian retailer outlets.

 Market Needs

There are several important needs in the fashion retail apparel business that are being either
underserved or not met at all. Millennial Clothing Store plans to meet and service those
needs.

• Focus and attention to customer’s personal preferences and customer retention will be
given high priority. Because of the high rate of employee turnover at major mass retailers,
customer service and personal detail has been lost.

 Market Trends

The retail fashion industry is a solid business with ever-changing styles and ever-present
consumer demand. While supercentres and megastores ruled the past two decades, more and
more consumers are looking for change. They’re searching for a more customer-friendly
shopping experience. Clothing will always be in high demand. The fashion industry has been
in Ghana has been thriving for a while now.

 SWOT ANALYSIS

Strengths:

 Experience and understanding of the fashion industry

 Unique shopping experience with exceptional customer service
 Great campus location
 Large and growing consuming base.

Weakness:

 Untested market on campus

 While market is large, it’s a niche market (millennial)

Opportunities

 Outstanding shopping experiences will lead to repeat business

 Growing online Millennial Clothing Store
 Establish a Millennial clothing line

Threats:

 Cost and effectiveness of marketing to women ‘millennial’

 New retail shops that may or may not open in the future

STRATEGY AND IMPLEMENTATION SUMMARY

PHILOSOPHY

Our company’s core business strategy is to combine exceptional and knowledgeable

customer service with quality stylish merchandise. And in turn, we’ll provide and enjoyable
shopping experience for our customers. Millennial Boutique’s mission is to offer women of
the millennial 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.

PRODUCT 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 licenses.
Once financing is secured, we will move ahead with the façade renovation.

 Internet Strategy
As the internet has become a staple of American life and retail merchandising, Millennial
Boutique will have a viable website. We have secured the domain name Millennial
Boutique.com and will begin site development as funds become available. Further, we plan to
hire and 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.

Millennial Boutique’s goal is to provide apparel to the underserved market of the Ghanaian
community. The major western apparel retailers have left a hole in this market by not
providing a larger assortment of sizes.

Our intention is to gain 80% of this market share by focusing on our niche positioning,
neighbourhood location, brand that we sell, and special promotions.

COMPETITIVE EDGE

• The millennial shopper card which allows the customer a 15% discount after ten
purchases.

• Our location in the school will offer closer access to our target customer base.

• We will offer plus sizes for women and big and tall sizes for men.

 Marketing Strategy

We expect our strategy to draw consumers into Millennial Boutique from the very beginning.
Moreover, we will hire a local PR firm to help us develop and implement as 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 millennial generation as
revolutionaries and trend setters.

Our goal is to keep our marketing budget to no more than 5% of our gross annual sales. We
already have connections in all the necessary places. These strategies will allow us to
piggyback on publicity for local events, as long as they are within our targeted demographic.
Millennial Boutique’s initial marketing efforts will remain local as we a presence in our
community. These will be 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. We will also hold a drawing for a GHC300 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. 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 consumers grow.

 Sales Strategy

Millennial Clothing Store plans to generate sale 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 500 full-colour postcard mailers.
Each will include a 10% coupon. We will offer promotional discounts and seasonal clearance
sales throughout the year.

Millennial Clothing store 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.

 Pricing Strategy

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 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.

 Promotion Strategy

Millennial Boutique will follow and aggressive yet creative promotional plan. This will allow
us to focus directly on our target customer while still being conservative with our advertising.

• 500 4x5 colour flyers/ postcards will be distributed throughout campus and off
campus hostels.

• A direct mail program that will further focus on and target the top 50% customer base
with special in house sales and promotions.

 Distribution Strategy

Our retail location will be the foundation of building our customer base. We will also manage
a direct mail program that will focus on our top 50% customers spotlighting any in-house
sales and promotions.
SALES STRATEGY

• We will utilize the retail ICE POS software with every sales transaction. With each
purchase the software will record and maintain in its database the customer’s name, address
and purchases. This information will be used with our direct mailing program to focus on our
top 50% of customers.

• We will offer a 14 day return/exchange policy to build trust with our customers and
maintain retention and loyalty.

MANAGEMENT SUMMARY

 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.

 Leadership

Sena Ocansey and Fauzia Amadu are co-owners and will co-manage Millennial Clothing
Store. However, daily responsibilities will differ.

Sena Ocansey will manage the day-to-day operations including supervising staff, maintaining
inventory and bookkeeping.

Fauzia Amadu will oversee the merchandise buying for the store as well as maintain a keen
awareness of trends within the industry.

 Staff Members

Millennial Boutique will employ a sales staff of 3 part-time employees. These positions are
yet to be filled. However, we feel the labour pool is such that finding qualified employees
will not be an issue. Ours sales associates will be paid a weekly wage, plus commission.

FINANCIAL PLAN

Our business will collect immediate payment from customers, so our cash flow statement will
be substantially similar to our income statement.

The growth of Millennial Boutique will be moderate and the cash balance will always be
positive. Being a retail environment we will not be selling on credit. We will accept cash,
checks, and all major credit cards. Marketing and advertising will remain at or below 5% of
sales. We will continue to reinvest residual profits into company expansion, and personnel.
 RETAIL MANAGEMENT

CBMK 405

MR. JOSHUA K. DOE

GROUP MEMBERS
PRISCA MINGLE 201302009
DINAH OCANSEY SENA 201302240
FAUZIA AMADU 201300481
JOSEPH NELSON ANSAH 201300665