Out of Uniform Business Plan
Kelly Marie Blake 4/13/2010
313 Out of Uniform Drive State College, Pennsylvania 16801 Email:
[email protected]
Transmittal Document
April 13, 2010 Jeanette Novakovich The Pennsylvania State University University Park, PA 16802 Dear Ms. Novakovich: I am submitting this report to you that you requested, which is due April 13, 2010. The report is entitled Out of Uniform Business Plan. The purpose of the report is to explain my business plan for making Out of Uniform a national brand through its online presence as well as increasing stores nationwide, specifically in State College. This report goes into detail in terms of Out of Uniform’s company ideals, product offerings, management structure, competition, and strategic approach. If you have any questions concerning the business plan, please feel free to contact Kelly Blake by email at
[email protected]. Sincerely, Kelly Blake CEO, Out of Uniform
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Table of Contents 1.0 Executive Summary……………………………………………........................…….3 2.0 Company Summary…………………………………………………….....................3 3.0 Product Development………………………………………………….......................4 4.0 Management Summary………………………………………………........................5 4.1 Team of Advisors..............................................................................................5 4.2 Personnel Structure...........................................................................................6 5.0 Market Analysis Summary…........……………………………………......................6 6.0 Strategy and Implementation Summary………………………………......................8 6.1 Marketing Approach.………………………………………………………...8 6.2 Sales Strategy...............……………………………………………………....8 7.0 Conclusion....................................................................................................................9
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Out of Uniform 1.0 Executive Summary Out of Uniform is a company that enjoys adding style to plain school uniforms. We create accessories that are custom made for any school uniform and provide that extra sparkle young girls are looking for. Many times, private schools impose rules against wearing colored nail polish, makeup, or even jewelry. Out of Uniform provides a way for girls to add fashion and creativity to their school uniforms, while following the rules that their school may impose. Each member of Out of Uniform’s management has graduated from private schools, so they have a relevant point of view and can relate to the consumer that Out of Uniform is targeting. We provide accessories ranging from backpacks to pencil cases. Out of Uniform’s products are one of a kind, affordable, practical, and most importantly add that extra something that every girl wants. Utilizing our product development, marketing strategy, and sales strategy, Out of Uniform plans to expand its presence in the national market. We hope to bring our products into the homes of young, private school students across the nation to add individuality and personality to their uniforms. “Out of Uniform Inc. is a business dedicated to meeting the unique needs of each of our customers. Our goal is to bring creativity and practicality to our customers' every day style. Out of Uniform continually strives to achieve innovation and superior design in each of our custom made accessories. We can bring style to any school uniform!”
2.0 Company Summary Out of Uniform is a company that offers accessories for girls in private school aged from 5 years to 18 years. We specifically tailor our accessories to young girls so they can feel independent of their school uniforms. Our products provide an outlet for creativity and style. Out of Uniform is a business that began in the home of a mother with 5 children in private school. She wanted to give her children ways to enhance their everyday look to
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Out of Uniform feel pretty and unique. Since those early days, Out of Uniform has become a national player in the accessories market and hopes to expand its horizons even further. Currently, Out of Uniform operates online and provides a website for buyers to make orders on the internet. We hope to expand our physical presence throughout the country to be more accessible and for buyers to have better awareness of our brand.
3.0 Product Development Out of Uniform offers a wide variety of products. Our products include: •
Wristlets & Change Purses
•
Headbands & Hair Accessories
•
Eye Glasses Cases
•
Water Bottle Holders
•
Backpacks
•
Watch Bands & Bracelets
•
Pencil Cases
•
Lunch Boxes
These products are provided online and are available to order at any time. Once we receive an order from a specific school, we archive their uniform fabric so we have it on hand for future orders. If an order comes in and we do not have that specific pattern, it may take slightly longer to process that order. However, all of our online orders are executed and delivered in 3 to 6 weeks. For our State College store, we plan to have the school uniform patterns for private schools in the area on hand so that we can have inventory in store of all of our current product offerings. The private schools that we will currently have in stock for our State College store are State College Friends School, Nittany Christian School, and Our Lady of Victory Catholic School. Furthermore, Out of Uniform plans for future offerings will be dictated by the market demand. Currently handbags dominate the market demand in the accessories sector. Therefore, Out of Uniform offerings will be more heavily weighted towards wristlets, change purses, and handbags (Segmentation).
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Out of Uniform
Products
Market Share
Handbags/Wallets
39.5%
Costume Jewelry
22.8%
Neckwear/Scarves
11.4%
Gloves
8.9%
Hats
6.4%
Hairpieces
4.7%
Belts
3.7%
Hair Accessories
2.6%
Source: Segmentation
4.0 Management Summary Kelly Blake, the CEO of Out of Uniform, is graduating from The Pennsylvania State University Smeal College of Business May 16, 2010, which is one of the most highly regarded business programs in the country. Miss Blake is graduating with a Finance degree and a minor in International Business. She has a fresh outlook on the market and a relevant point of view. Furthermore, Miss Blake is dedicated to establishing Out of Uniform as a top competitor in the accessories industry and incorporates her devotion to Out of Uniform’s success throughout the company culture.
4.1 Team of Advisors Maureen Debicki, Creative Director Mrs. Debicki is an extremely talented designer and brings her expertise to all of Out of Uniform’s products. Utilizing her years of experience combined with her MIT degree; Mrs. Debicki possesses business savvy and a modern sense of design. Courtney Blake, Chief Financial Officer Miss Blake, who is a graduate of The Pennsylvania State University, brings her financial
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Out of Uniform expertise to Out of Uniform. Having 3 years of auditing experience with Chartis Insurance, Miss Blake provides sound advice and critique of all of Out of Uniform’s financials. Miss Blake is currently preparing to earn her CPA Certification, which will increase her value to our firm even more.
4.2 Personnel Structure Out of Uniform will require more employees as it begins to expand in the future. Currently, under the management of the CEO, CFO, and Creative Director we employ personnel in the following departments: online support, marketing, finance, in-store staff, product development workforce, and sales professionals. As we expand our physical presence in the future, Out of Uniform will need to hire more in-store employees and onsite managers for these establishments. Kelly Blake, CEO
Courtney Blake, CFO
Finance
Online Support
Maureen Debicki, Creative Director
In-store Management
Marketing
Sales
Product Development
5.0 Market Analysis Summary Out of Uniform’s target market consists of Private Schools and individuals. Currently, there are 29,301 private schools in the United States. These include kindergarten, elementary, and secondary schools that require their students to wear school uniforms. In total, there are 5,872,000 students enrolled in these private schools (Key Statistics).
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Out of Uniform
Thousands of
Thousands of
Persons Public
% Change
Persons Private
% Change
Year
Enrollment
Growth
Enrollment
Growth
2003-04
48540
0.7
6099
N/C
2004-05
48795
0.5
6133
0.6
2005-06
49028
0.5
6111
-0.4
2006-07
49370
0.7
6155
0.7
2007-08
49610
0.5
6152
0
2008-09
49812
0.4
6022
-2.1
2009-10
50028
0.4
5872
-2.5
Source: National Center for Education Statistics
As shown in the table above, enrollment in private schools has been declining in recent years (Industry Performance). However, it is predicted that enrollment will grow in the future as the recession lifts.
Year 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
Thousands of Persons Public Enrollment 50028 50303 50653 51093 51579 52135
% Change Growth 0.4 0.5 0.7 0.9 1 1.1
Thousands of Persons Private Enrollment 5872 5919 5946 5990 6038 6092
% Change Growth 0.1 0.8 0.5 0.7 0.8 0.9
Source: National Center for Education Statistics
As enrollment in private school increases, the market for accessories for school uniforms will also increase. This will allow Out of Uniform to expand its business in the future. Out of Uniform’s primary target consumer is the average private school enrollee, who is hoping to add a sense of style to her everyday school uniform. In addition, Out of Uniform will target Private Schools as conglomerate consumers and supply the schools with an array of products to sell in their school stores on campus (Outlook 61111b).
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Out of Uniform
6.0 Strategy and Implementation Summary Out of Uniform’s strategic approach is to be accessible to our customers and provide them with products that they want. We plan to keep pace with consumer demand by having a “What YOU Want” tab on our company website in order for our customers to dictate Out of Uniform’s product offerings. It is our goal to provide our consumers with stylish products that they enjoy wearing. Out of Uniform also plans to expand its stores nationwide to increase our reputation and brand awareness on a national level.
6.1 Marketing Approach Our sales strategy is to market particularly to the 13-19 age group, as research shows that they have considerable spending power, which is largely used for fashion retail. In 2009, girls in this age group spent 42% of their budget on clothing and accessories alone (Market Characteristics). The revenues generated in the accessories sector are predicted in increase in coming years, which would provide an even larger market for Out of Uniform to offer its products. Year
Revenues Generated ($ Million)
Growth (%)
2011
7412.9
5.5
2012
7908.9
6.7
2013
8560.3
8.2
2014
9267
8.3
2015
9868.5
6.5
2016
10563.1
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Source: Outlook 44815
6.2 Sales Strategy Out of Uniform plans to take advantage of this huge market by maintaining affordable prices, increasing promotion through social networks and YouTube, offering
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Out of Uniform modern products, and being an accessible company through an online presence as well as through physical locations nationwide.
8.0 Conclusion Out of Uniform has huge potential in the accessories industry and is extremely enthusiastic about opening a new location in the State College area. We will continue to expand in the future and hope to become a leader in our industry in the years to follow. With your help, Out of Uniform can achieve new heights and unite our love of style, innovation, and originality to become a successful business and profitable investment for you.
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Works Cited “Key Statistics.” 61111b - Private Schools in the US - Industry Report. 5 Mar. 2010. IBISWorld. Web. 10 Apr. 2010.
“Market Characteristics.” 44815 - Clothing Accessories Stores in the US - Industry Report. 18 Feb. 2010. IBISWorld. Web. 10 Apr. 2010. “Outlook.” 44815 - Clothing Accessories Stores in the US - Industry Report. 18 Feb. 2010. IBISWorld. Web. 10 Apr. 2010. “Outlook.” 61111b - Private Schools in the US - Industry Report. 5 Mar. 2010. IBISWorld. Web. 10 Apr. 2010. “Performance.” 61111b - Private Schools in the US - Industry Report. 5 Mar. 2010. IBISWorld. Web. 10 Apr. 2010. “Segmentation.” 44815 - Clothing Accessories Stores in the US - Industry Report. 18 Feb. 2010. IBISWorld. Web. 10 Apr. 2010.
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