Areeb Qureshi

Degree

Master of Business Administration Executive

Faculty / School

Faculty of Business Administration (FBA)

Year of Award

2019

Project Type

MBA Executive Research Project

Access Type

Restricted Access

Keywords

Business, Women garments -- Apparel, Women clothing

Executive Summary

The report is about launching a women apparel brand in Pakistan. The brand is based on a market research study on the behavior of women. The main assumption behind the launching of the brand is that most women prefer monochrome colors (concluded through this study) while purchasing ready to wear garments. One of the important factors in choosing monochrome colors is that it is easy to choose from. Different prints and the mixture of colors make it difficult to choose and hence women end up spending hours shopping even for a single dress. The brand targets such women; who don't have much time to spend on shopping and at the same time cannot compromise on the style and quality of garments. Monochromes colors will help them to choose faster. The brand will use solid colors in its dresses, and more importance shall be provided to the designing and cutting of the material. Hence solid colors with perfectly designed and stitched dresses will bring in the new taste in the market. It is important to understand people's choices, so before any proceeding towards the brand formulation, a market study was conducted to understand individual female's behavior. Though we could have observed the behavior through practical approaches like display of few designs and ask the customer to choose one, due to limited time and budget we focused on gathering the primary data through questionnaire, focus groups and interviews of renowned designers and entrepreneurs. Both Quantitative and Qualitative methods were used, the conclusion of both the methods was somewhat same, but we prefer to rely more on quantitative data gathered through a questionnaire. Through research, we concluded that women prefer monochrome colors over mixtures and prints. 83% of women choose black or white as their first or second priority. The data also shows that the majority of women thinks that the reasonable price for a kurta should be between 2,000 to 4,000 rupees. It gives us a good anchor to price our product competitively There are other important findings for us in the study. We observed that most females prefer blue as their first priority - about 33%. We also found that discounts and complex pricing can mold the behavior of females to buy more, even when there is no benefit for them. According to data collected, more than 50% of women consume their dresses within 10 months. One of the most important aspects of a successful launch is advertising campaign / positive publicity of the product. An eye-catching campaign will be produced to promote our clothing line through several avenues. Samples will be sent to local bloggers, models, media celebrities to create a buzz throughout the target market which will eventually place our product right. The brand will be launched through its first outlet at Tariq road or nearby area, in Karachi, followed by the second outlet in Clifton/DHA Karachi. In the first phase, total of 4 outlets will be opened, 3rd in Lahore and 4th in Islamabad. A Major portion of sales will be covered through online selling - e-commerce. Social media will be used extensively to generate sales. Our sales will be generated from both retail stores and online selling. First, three years of operations will see negative cash flows. Due to low GPand extensive marketing, we assume break even to be reached in 7-8 years of operations, i.e. phase 2. Total Investment required for the project is 100 million rupees; comprises of 75% of equity and 25% of the debt. The interest rate on debt is assumed to be 8%.

Pages

66

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