Innovation and Entrepreneurship: Business Plan for Kids Creation Organisation

This report covers the start-up business idea, industry profile, challenges, marketing plan, source of funding, and competitive analysis for Kids Creation Organisation, which offers sustainable clothing and fashionable products for children.

Innovation and
entrepreneurship

Executive summary
Business plan is defined as the written document that includes various information such
as organisational objectives and strategies to achieve them. It is the roadmap of business
marketing, financial as well as operational activities. In this report Kids creation organisation us
taken that offers sustainable clothing and fashionable products for children. In this report
information about business idea, industry profile and challenges that are faced by the start-up are
covered. Furthermore, business marketing plan, source of funding and competitive analysis is
discussed in this project report.

Table of Contents
Executive summary..........................................................................................................................2
INTRODUCTION...........................................................................................................................4
Main Body ......................................................................................................................................4
Start-up business idea .................................................................................................................4
Industry profile............................................................................................................................5
The business model.....................................................................................................................5
Point of differentiation................................................................................................................6
Challenges to business idea.........................................................................................................7
Prospective customers.................................................................................................................7
Marketing plan............................................................................................................................8
Competitor analysis.....................................................................................................................9
Source of findings.....................................................................................................................10
Intellectual property..................................................................................................................11
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Innovation is defined as the practical implementation of unique features in existing
products and services to improve their quality and attracts customers towards it. Basically, it is
the creation, execution as well as development of new product, services and product for the
purpose of improving its effectiveness and efficiency to gain competitive advantages then other
competitors. Entrepreneurship is considered as the process of establishing new business and take
financial risk to gain the objectives of profitability. Entrepreneur brigs regular innovation in
business products, activities and process to differentiate it from other competitor (Acs, Szerb
and Autio, 2017). First of all entrepreneur identifies market opportunities and develop effective
business plan explore enterprise in various market segments. In this report chosen organisation is
Kids creation that conducts its operations under retailing industry and offers kids cloths and
accessories. The report covers start up business idea, retail industry profile, business model and
point of differentiation. Further more challenges faced by the organisation in business idea,
marketing plan, prospective customers, competitive analysis and source of funding is being
mentioned in this project report.
Main Body
Start-up business idea
The start up business idea is to establish the enterprise that offers range of products for children
such as clothing, furniture, food, accessories and toys. Organisation conducts its activities under
the brand name of Kids creation offers affordable kids items to its targeted customers with
unique features and higher purchase price. Respective organisation provides range of 100%
sustainable clothes for fashionable-savvy mothers. Kids creation is the organisation that
promotes the idea of growing up green and teaches the importance of being environment-friendly
through publishing imaginative minds for little ones.
Organisation uses both online and offline platforms to reach potential customers such as
creating own website, e-commerce and inclusive stores. This business idea is quite sustainable in
competitive business environment because organisation offers organic and environment-friendly
products for babies (Bu, and Cuervo‐Cazurra, 2020). It facilitates business to stand out than other
competitors who only focus on the fashionable clothing, accessories and other related products of

children. The unique ides enhances loyalty level of environment conscious patents and help
business to gain competitive advantages.
Industry profile
The market value in sector of children's clothing, food, accessories and other product
under the age of 9 is £10.12 billion. In past few years expenditure children has increased that
signifies positive growth for the industry. In the period of 2019-2023 children and infant wear
market size and CAGR of nearly 6% (Global Children's and Infant Wear Market 2019-2023 |
6% CAGR Projection Over the Next Five Years | Technavio, 2019). As per the demand of
customers and improvement in lifestyle enhance growth and facilitates organisation to earn high
profits. In Asia Pacific children products are highly demanded that is the cause of 38% growth of
business. Organisation gain market opportunities through adopting social media marketing and
online delivery option that attracts customers (Cieślik, 2017). There various organisational are
exist in the industry that provides similar products and affects market share of organisations.
Marks & Spencer, Next Plc and various other organisations that deals in same product line.
The business model
Business Canvas Model:
Key Partners:
 Governme
nt
 Suppliers
 supermark
ets
Key Activities:
 Promotion
 production
of
products
 Recycling
Value
Proposition:
 Providing
sustainabl
e and
organic
products
of
children
such as
clothing,
toys,
accessorie
s and
Customer
Relationships:
 Offer
quality
products
to
customer.
 Communi
cate
regularly
through
various
social
media
Customer
Segments:
 Kids aged
between
four to
eight
 environme
nt friendly
customers

various
others that
make kids
comfortab
le.
channel.
Key Resources:
 Human
resources
 Machinery
 Managem
ent
Channels:
 Supermar
kets
 Social
media
Cost Structure:
 Cost of buying and renting material
 Warehousing products in Supermarket
Revenue Streams:
 Get reasonable revenue through
providing quality and sustainable
products to customer that inspire them
to retain with business for longer period
of time.
Point of differentiation
Kids creation need to develop its unique point of differentiation to maintain strong sustainability
in competitive environment. Kids creation is newly started venture in retailing sector established
in London, UK. The organisation deals in providing organic and sustainable toys, clothing,
accessories and other items. In retailing industry various other competitors that provides similar
products in specific market segment. As there are high competition in clothing industry so, Kids
creation establishes business with new idea of offering sustainable product in market. It helps
business to differentiate from other business and provides competitive advantages through
maintaining effective positioning. Respective organisation conducts various advertisements to
bring attention of customers by explaining about uniqueness of their products (Davari and
Farokhmanesh, 2017). There is close substitutes are provides by the various organisations. Kids
creation organisation launches products that have unique and sustainable feature that
differentiate organisation from other competitors.
To produce clothing for babies, organisation uses organic material like recycled cotton
and Fiber cellulose which is suitable for babies soft skin and provides comfort. Respective
organisation also concentrates on current trends and fashion to remain in competition. As the

organisation provides baby products that are fashionable and sustainable at affordable prices
maintains effective brand image in the minds of customers that enhances organisational sales and
profitability ratio (Dey, 2017). Through maintaining differentiation and adding extra feature in
products, business can enhance customer base and retain them with business for longer period of
time.
Challenges to business idea
There are various challenges are faced by the organisation to convert business idea into
actual actions. Some problems and challenges that are faced by the Kids creation are mentioned
below:
Assembling organisational team: There are various challenges regarding organising and
assembling teams by the Kids creation. Respective organisation recognises diversify values of
employees as well as inspire them to attain organisational goals and objectives in efficient
manner. Respective organisation identifies employees strengths and weakness then provide them
training to enhance skills and competencies that improves their productivity.
Finding good customers: Kids creation organisation faced difficulties regarding finding
potential customers because of less knowledge of competitive market. It impacts on sales and
profitability of organisation. As organisation provides unique and innovative products related to
children that requires effective marketing plan to create interest of customers (Eckhardt, Ciuchta
and Carpenter, 2018). Respective organisation uses social media channels to attract potential
customers.
Raising capital for business: Raising capital for business is the biggest challenge that is
faced by the Kids creation organisation. Because of insufficient finance, organisation is not able
to gain growth and development opportunities. As there are various sources of finance are
available that provides funds to business but they also include risk. Respective organisation
analyse risk associate with all sources that adopts most suitable one to run business operations
efficiently.
Prospective customers
Customers plays important role in the growth and development of business through
enhances sales and profitability. Loyal and potential customers are required to gain long term
sustainability objective. Kids creation organisation targets children as a prospective customers
and enhance their loyalty by providing quality services at affordable prices. As organisation

concentrates on customers aged between four to eight years. Respective organisation develops
plans accordingly to attract customers.
Kids creation organisation deliver sustainable as well as affordable clothes and other
accessories that are not provided by other business. It facilitates business to enhance customer
base. As business provides cloths, accessories and products to both girls and boys that are made
by organic and sustainable material. Kids creation organisation covers both medium such as
online and offline to attract customers (Hilson, and Maconachie, 2020). Respective organisation
provides quality experience to customers form business products and services. Through
attracting potential customers, organisation can enhance sales and revenue.
Marketing plan
Marketing plan: Marketing plan is considered as the report that includes organisational
marketing strategies, overview of organisational marketing and advertisement objectives, current
positioning, target market and time line within all strategies to be completed to achieve defined
business goals and objectives. Kids creation organisation develops marketing plan that guide
business to implement marketing strategies efficient to gain determined objectives.
Organisational STP process and marketing mix are discussed below:
Segmentation: Segmentation is considered as the procedure of segregating whole market
in different smaller segments as per their similar traits and characteristics. Kids creation
organisation divides market in smaller segments on the bases of customers demographic,
behavioural and other characteristics to target them efficiently.
Targeting: Targeting is related to selecting suitable market segment where growth and
development opportunities are exist. Respective organisation evaluates each market segment on
the bases of their potentiality and proficiency (Ribeiro-Soriano and Kraus, 2018). As Kids
creation organisation target the segment of children aged between 7 to 14 to provide them
sustainable clothes and other products.
Positioning: Positioning is referred as the activity of maintaining effective and
differentiating image in the minds of customers related to brand. As Kids creation provides high
quality and sustainable kids clothing and other accessories a affordable prices. There are various
promotional activities are adopted by the organisation that enhances awareness of customers
regarding organisational products and create differentiates positioning then other competitors.

Marketing mix: Marketing mix is the combination of various activities as well as tactics
implement by the business to promote products and services, formulating strategies and taking
effective decisions. Aspects of marketing mic are mentioned below:
Product: Products are physical things that have value for customers. Business are
involved in the activities of producing products according to demand of customer to satisfy their
demands. As Kids creation organisation offers products related to children such as clothing, toys
and accessories that are made from organic material (Samila and Sorenson, 2017). These
products do not affect kids as well as environment. Respective organisation develops products
after conducting proper market research.
Price: Price is the monetary value of product and service on which customers are ready to
purchase them. There is effective pricing policies and strategies are adopted by Kids creation
organisation to set appropriate price of products. Respective organisation set product prices after
determining various factors like cost of production, profitability objectives, direct and indirect
expenses. Organisation establishes low cost as compared to other competitors to gain
competitive advantages.
Place: Kids creation organisation offers its products and services to customers through
various online and offline stores. Respective organisation provides efficient services to
customers that retain them with business for longer period of time.
Promotion: Promotions are undertake by organisation to promote products and services
to customer and persuade them purchase them. Respective organisation conducts social media
advertisements and conducts campaigns to attract customers towards brand. It facilitates business
to enhance sales and profitability objectives.
Competitor analysis
There are various competitors are exist in market that impacts on overall revenue of
business of Kids creation. Respective organisation analyses its competitors than create strategies
and policies accordingly to gain competitive advantages (Shang, 2017). Competitors of Kids
creation are mentioned below:
Marks & Spencer: Marks & Spencer is multinational retailing organisation that is
founded in 1884 by Michael marks Thomas Spencer and headquarter of organisation situated in
London, England, UK. Respective organisation provides clothing, food and various other

products for all customers but not specialised in kids section. 78,031 employees are work in
organisation and its revenue is 14 Billion dollar.
Next Plc: Next plc is also multinational organisation that deals in clothing, footwear and
various other products. Respective organisation founded in the year of 1864 headquarter situated
in United Kingdom. 44,193 employees are working with organisation and its revenue is approx 5
Billion dollar.
AllSaints: AllSaints organisation founded in 1994 and headquarter situated in London,
United Kingdom. Respective organisation deals in fashion retailing and provides clothing,
accessories and other products. 3200 employees are working with organisation and its revenue id
675 Million Dollar.
All organisations create competition for Kids creation organisation through providing
range of products and services for men, women and children.
Source of findings
As Kids creation organisation is established with new innovative idea of providing organic and
sustainable clothes and other products. There are various source of funding that provide finance
for establishment and expansion purpose. These sources provides funds for short and long term
period of time. Some sources that are used by the Kids creation organisation are mentioned
below:
Banks: Banks provides loans for start-up business on which it charge fix rate of interest.
To get loan from bank, organisation must to quality criteria that is set by bank such as potential
earning, credit score and annual turnover (Spinuzzi, 2017). Kids creation organisation takes loan
from bank to fulfil the requirement of working capital and launching new product in market.
Crowdfunding: Crowdfunding is defined as the effective method of raising finance form
large group of people. To adopt this source of funding, Kids creation get small amount of fund
from large investors. It facilitates business to gain required funds for running business
operations.
Small business loan: As some institutions are providing loans only to the small business
such as SBA in USA. Main objective of these institution is lend money to small business to
reasonable terms (Surie and Groen, , 2017). Kids creation organisation gains finance from these
institutes to run business and expand it various other marketing segments.

Intellectual property
Intellectual property is defined as the category of properly that is related to the feature of
intangible creation of human intellect. It provides various rights to the person who create new
and unique business idea and concept. Intellectual properties facilitates creator to use their ideas
and concepts for particular period of time and provide protection their idea from others. In the
competitive business environment, there is high possibility that ideas and concepts are being
copied by the competitors for their personal use (Volkmann and Audretsch, 2017). Kids creation
organisation creates various intellectual property to protect unique business idea from any
external effects. Some intellectual properties are mentioned below:
Patent: Patent is defined as the intellectual property that gives right to an individual to
protect its unique business idea and concept from being copied by the third party. The owner of
patent can commercialise its patent right by selling it through license agreement. Patent are used
for a limited duration to protect inventions that are unique, useful and non-obvious. Kids creation
use patent to protect their business idea of providing unique, sustainable and eco friendly clothes
and other products related to babies.
Trademarks: Trademark is defined as any recognisable phrase, word and symbol that
demoted to the specific products as well as differentiate it in legal manner from other products. It
is the distinctive sign that facilitates customers to recognise specific brand and its customers. As
there are number of competitive firms are operating in the market, trademark creates unique
identity of brand from others. Kids creation creates its own unique trademark that enable its
customers to identify brand and its products.
Copyright: Copyright is defined as the intellectual property protection that facilitates to
protect original work of authorship such as art, music and literacy work (ZHU, DENG and HU,
2018). There are various rights are provides to the author like distinction of work copies,
publicity and right to sell.
CONCLUSION
From the above report, it can be concluded that there are various innovations are bring by the
entrepreneur to make business different from others competitors and to accomplish market
demand. There re various factors are considered by the organisation before launching new
product or idea in market such as feasibility of idea, industry profile, point of differentiation and
marketing plan and competitors. To run business funds are required so organisation take funds

from various sources after evaluating their effectiveness. Business identifies potential customers
and provide them quality products and services at affordable prices that attracts them towards
business and provides sustainable competitive advantages. Organisation protects their property
through creating different intellectual property such as patent, trademark and copyright.

REFERENCES
Books and Journals
Acs, Z., Szerb, L. and Autio, E., 2017. The global entrepreneurship index. In Global
Entrepreneurship and Development Index 2016 (pp. 19-38). Springer, Cham.
Bu, J. and Cuervo‐Cazurra, A., 2020. Informality costs: Informal entrepreneurship and
innovation in emerging economies. Strategic Entrepreneurship Journal, 14(3), pp.329-
368.
Cieślik, J., 2017. Entrepreneurship and Innovation. In Entrepreneurship in Emerging Economies
(pp. 157-193). Palgrave Macmillan, Cham.
Davari, A. and Farokhmanesh, T., 2017. Impact of entrepreneurship policies on opportunity to
startup. Management Science Letters, 7(9), pp.431-438.
Dey, A. K., 2017. Change management drivers: Entrepreneurship and knowledge management.
Eckhardt, J. T., Ciuchta, M. P. and Carpenter, M., 2018. Open innovation, information, and
entrepreneurship within platform ecosystems. Strategic entrepreneurship journal, 12(3),
pp.369-391.
Hilson, G. and Maconachie, R., 2020. Entrepreneurship and innovation in Africa's artisanal and
small-scale mining sector: Developments and trajectories. Journal of Rural Studies, 78,
pp.149-162.
Ribeiro-Soriano, D. and Kraus, S., 2018. An overview of entrepreneurship, innovation and
sensemaking for improving decisions. Group Decision and Negotiation, 27(3), pp.313-
320.
Samila, S. and Sorenson, O., 2017. Community and capital in entrepreneurship and economic
growth. American Sociological Review, 82(4), pp.770-795.
Shang, F., 2017, November. Research about the Talent Cultivation Mode Integrating Innovation
and Entrepreneurship under" Internet+" Environment. In International Conference on
Education Innovation and Social Science (ICEISS 2017) (pp. 109-112). Atlantis Press.
Spinuzzi, C., 2017. Introduction to special issue on the rhetoric of entrepreneurship: Theories,
methodologies, and practices.
Surie, G. and Groen, A., 2017. The importance of social entrepreneurship in national systems of
innovation—An introduction.
Volkmann, C. and Audretsch, D., 2017. Entrepreneurship education at universities. Cham:
Springer International Publishing.
ZHU, J., DENG, Q. and HU, F.G., 2018. The Evaluation of the Practical Teaching under the
Perspective of the Innovation and Entrepreneurship. Yinshan Academic Journal
(Natural Science Edition), p.01.
Online:
Global Children's and Infant Wear Market 2019-2023 | 6% CAGR Projection Over the Next Five
Years | Technavio, 2019. [Online] Available through
<https://www.businesswire.com/news/home/20191024006119/en/Global-Childrens-
and-Infant-Wear-Market-2019-2023-6-CAGR-Projection-Over-the-Next-Five-Years-
Technavio>