Liseladele PowerPoint PPT Presentation

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Introduction. Women dream about the day they walk into a store and find the exact clothing they were envisioning in their head

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1. Liseladele Lisel Thompson Tammi Reeve Danielle Turner Jeff Giffin

2. Introduction Women dream about the day they walk into a store and find the exact clothing they were envisioning in their head… They dream about going into a store and finding the perfect fit of clothing with the first outfit they try on…

3. We make dreams come true…

7. Target Market Demographics: Women, ages 30-45, with a disposable income, at least a college education, lives in a metropolitan area Psychographics: thinks of themselves as fashionable, wants long-lasting clothing, wants diversity in clothing Social Status: pride in wealth, “one-of-a-kind”

8. Unmet Needs of Target Market Originality “Either trendy or old lady, not much in between” Quality “…clothing that can stand being washed without falling apart” Custom fit “Clothing…that fits women who look like women, not women that look like heroin addicts”

9. Market analysis Liseladele will be located in Cherry Creek Colorado In 1997, custom clothing sales were at 60.4 million in Colorado Direct competitors: custom tailors and clothiers Indirect competitors: stores for up scale women looking for clothes for a special occasion or where “money is not an object for them”, as well as clothing catalogs

10. Perceptual Map

11. Operation Strategy The goal of the business is to get the customer to enjoy the ability to design their own clothes Pickup within 2 weeks and free alterations up to a month after receipt Liseladele’s is involved in all aspects of the clothing industry Nick of Time Textiles can work with our low volume needs

12. Ongoing Operations Boutique in Cherry Creek Colorado, with possible expansion to Los Angeles California, Chicago Illinois, Dallas Texas, and Boston Massachusetts Forecasted operations on a per store basis: 3 Designers @ 15% Commission and 10k/yr 2 Sales Associates @ 15K/yr 3 Seamstresses @ 40K/yr Accountant @ 7K/yr Legal services @ 4K/yr

13. Development Strategy Will Need: Commercial space, furnishings, fabric wholesalers, staff, equipment Expenses include: leases, decorations, furniture, fabric swatches, machines, marketing Total expenses: $210,000

14. Marketing Plan Three Unmet Needs: Quality Originality Fit How Liseladele will meet these needs: Fabric & Stitch work Consumers Do the Designing Custom Making Each Piece

15. Benefits and Sustainability Unique Benefits Women will feel confident and sexy Consumers will be saving time Customers: Initially from Competitors Quickly Build Strong Customer Base Customer loyalty and name brand will create barriers to entry

16. Marketing Plan, cont… Price: Type & Amount of Fabric, Design Complexity $4-$80 per yard, average of 3 yards per garment $250-$10,000 per Item Advertising: Before Opening: Local Newspapers, Flyers, Direct mail, Grand Opening Party After Opening: Yellow Pages, Direct Mail, Website, Stealth Marketing Products Sold through Store only

17. Management Liseladele

18. Revenues

19. Profits

20. Cash flows

21. Funding Raise $210,000, Offer 40% of Company 60% IRR for Angel Investors 23 P/E Exit Strategy: Liseladele buyout

22. Risks Fabric delay/Problems with wholesaler - Have back-up fabric companies - Discounts for customers with late clothing Copy of business - By the time competitors copy our idea, Liseladele will already have strong customer loyalty

23. Conclusion Quality, fit, originality Wine, champagne, and chocolate Satisfied, confident, and fulfilled women

24. We make dreams come true…

25. Revenue Model Number of customers: 2 sales per day, six days per week, 52 weeks per year Fee per customer: weighted average of prices (60% at $250, 28% at $1000, 10% at 5000, 2% at 10000)

26. Sales and Marketing Costs

27. Operation Costs

28. Development Costs Leasing: -Deposit: $6,000 -First month’s rent: $6,000 Decoration: $100,000 Furniture: -Tables: $150 x4 -Couches: $600 x 4 -Counters: $800 x 2 Fabric Swatches: $360 Sewing Machines: -Surger: $3,500 x 5 -Pressing machine: $1,000 x 2 -Cutting table: $150 x 5 Marketing and Promotions: $70,000 Total: $210,000

29. Timeline

30. Barriers to Entry Our competitors will not be able to respond to this newly created place in the market very quickly. Because our idea is as unique as our clothing, competitors will have to become us to respond. Without having designers available and a system in place, it will take our competitors quite sometime to match us. Plus, contracts with existing wholesalers will make it hard for them to create a made-to-order inventory. By the time they are in our market, we will have such strong customer loyalty, that seducing our customers away will not be an issue.

31. Marketing Strategy Grand Opening Party Invite Cherry Creek Socialites, other local business people Invitations, create database Create list of potential consumers Visa/MC/etc: amount spend on clothing, demographics Area Spas Direct Mail Rewards (Bring friend, get 20% disc) “Come see your personal designer, Claudette”

34. Future House calls Computer program to draw designs Expansion to other cities

35. Investors Investors share: 40% IRR: 60% ROI: 1049% Future value: $2,202,010

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