Starting a Business and Fundamentals of Marketing

This report includes an introduction of a new business in the clothing sector, evaluation of internal and external environment, competition analysis, and target market evaluation.

Starting a Business and
Fundamentals of Marketing
BMM3013
Put your business logo here.
Assignment 1: Business Plan
Name:
Student Number:
Word Count:

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Evaluation of the current external environment..........................................................................3
A discussion of the competition..................................................................................................4
Target Market..............................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES:...............................................................................................................................7
Books and Journals.....................................................................................................................7

Executive summary
This report will include an introduction of a new business in the clothing sector. The
market gap which has arisen in this sector is briefly discussed in this report. Evaluation of
internal and external environment is done to know the factors affects business. Business
competition and its various aspects are explained with current target market for business.

INTRODUCTION
Clothing industry is at boom and the new business is to start a new clothing shop “Finer
thread”. It will provide a variety of clothes for women and kids. After completing the
management course and doing an internship for 6 months in clothing store, the idea for business
plan is derived. The business will provide trendy clothes at low cost. The old clothes can be
resold to the business and will be recycled according to the new trends and ongoing current
fasion sense (Uprety, 2020). “Finer threads” will be located at high street London, in order to
attract more customers. Due to increasing fasion sense of the customers to urge of buying clothes
in teenagers is increasing on rapid growth. The business will also provide free shipping charges
on certain amount of buying clothes to the customers. The main aim of this business will be
providing quality clothes according to taste and preferences of the consumers. In this report there
is discussion related to the current external environment so that business is able to function
effectively. In this report we will explain a overview of proposed business idea and an
explanation of the personal expertise. Furthermore, a discussion of the gap in the market aiming
to fill. Along with that, the competitiveness is also enhanced as it will help to formulate
appropriate strategies. The target market for the new business is also evaluated in the report.
MAIN BODY
 Evaluation of the current external environment
It is important to check the external factors and their impact on the business organization.
PESTLE analysis
This tool will help to check the external environment and the macroeconomic factors. Below is
discussion related to the political, legal, economic, environmental, social in relation to Finer
Threads:
Political Factors: The political factors include tariffs, taxation policy, political condition
of the nation. The political stability in UK provides good opportunities for new business
organisations to carry on the operation in effective manner (Darmawan, 2020). Government has
more power and control on a business then a business owner. If there is increase in the wages of
the consumer the demand will automatically increased. Tarrif taxes are being imposed for

importing of goods which adds high cost to that material. High cutom duties and taxation poilicy
of government to collect revenue. Due this the exporting and importing rates become expensive.
Finer Threads will take care of the policies and will abide them so that they are able to carry on
the business smoothly.
Economic Factors: It includes interest rate, inflation rate, employment rate, demand
supply etc. Economic factors are taken into consideration when an investment has to take place.
It is analysed that Finer threads will provide employment to various individuals and also
contribute to GDP of the nation. With the increase in the manpower the labour cost also
increases so proper calculation will be made to manange the labour cost. Engaging in easy
transportation activities and eco friendly natural resources leads to rapid growth. There is high
demand of clothing in the market of UK and it will support Finer Threads to carry on the
business effectively.
Social Factors: The preferences and needs of the society keep on changing. To satisfy
the needs and wants of customers, Finer Threads will provide trendy clothes so that they are able
to satisfy the customers. They will assure that latest and fashionable products are provided to the
customers. Better qualtity of clothes with reasonable rates will leads to attract more customers.
Proper advertisement and promotion is a key to success managing the budget and appropriate
investing in promotional activities will attract more customers. Before producing a product the
business have to keep in mind the age, income, employment of the customer. Finer Threads will
also provide free shipping to its regular customers and on certain amount of buying.
Technological Factors: To use of latest technology helps the business organization to
enhance the efficiency in operations (Paras and et.al., 2018). Finer Threads will use updated
technology in order to serve the needs and wants of the customers. Their online store is the
example of latest technology being used by the company. Increase use of computers and internet
connectivity has made the business activity so wide and advanced because large number of
people is doing online shopping for more variety of their choices. Finer Threads also provide
online shopping through websites for selling clothes worldwide.
Legal Factors: The laws and legislations must be followed by the business organizations
in fashion industry as well. Business that regularly tracking the laws and properly obeying them
are at good position in the market. With the help of consumer protection law consumer are aware
of their rights and business cannot charged high prices or do any malpractices. Finer Threads has

to follow taxation laws, labor laws, inflation cost, and import and export restrictions. This
company will also obey all the legal orders and rules for any kind of duties charged for exporting
and importing of goods.
Environmental Factors: There is needed to take proper actions that are not harmful for
the environment. Finer threads works on the principle of recycling so that the waste products can
fully be utilized that helps them to take care of the environment. Taking care of all the biotic and
abiotic factors and taking care of the pollution by using non pollutant machines. The use of
resources in effective manner will help the company to establish effective brand image in
market. All the techniques used by finer threads are eco friendly and abide by laws.
It is necessary to check the impact of all the external factors on the operations of new
business. If any of these factors are lacking then it becomes difficult to survive in the market. To
be in the competition the business has to follow all the necessity things and need to track time to
time its rival activities. Finer Threads will assure that all the laws related to opening of new
business are being followed by them. The business organization will use latest technology so that
they are able to attract more customers.
 A discussion of the competition
Competition is present in each and every level and the level of competitiveness is high in
fashion industry. Different companies selling same products and services with same price. It is in
the hand of the business to sell its products in some different way by gaining customers
confidence towards the products. Companies can increase their sales volume by following four
components of marketing which are price, product, place, promotion. For a marketing strategy to
be successful the business should use four components appropriately. There is need to monitor
the competition in the industry and to carry on the strategies to gain lead over them (Zebal and
Jackson, 2019).
The use of Porter Five forces model will help the business organization to gain edge over the
competitors. The forces in regard to Finer Threads are discussed below:
Threat of new entrants: There is high threat of new entrants in fashion industry with
their new brands. Finer threads is also new business and focusing on new ways and methods of
doing the activities to attract the buyers. Entering of new competitor in the market is a threat
because they have new technology with fresh blood employees who know the work more

professionally. Finer thread must focus on the quality of the product so that they are able to set
effective brand image in market.
Bargaining power of buyers: The aim of Finer Threads is to serve the needs and wants
of the customers. In current market the buyers have full knowledge of demand, price and cost of
the products. The business organization will provide quality and trendy products at affordable
price. Providing after sales services to the customer and exchanging products. This will help
them to retain the customers towards their organization.
Bargaining power of suppliers: There is moderate threat of suppliers. Suppliers with
strong brand names will have more power and control on the products. The company will use
quality raw material and maintain good relations with the suppliers. It assists them in converting
the raw materials into finished goods within right time.
Competition rivalry in the industry: There is high competition present in the fashion
industry (Heath, 2018). Due to increasing use of new technologies and social media has created a
very competitive market in the present world. Observing each and every step of rivals will make
you prepare for the competition. Finer threads have to face competition not only from small
business houses but from big clothing brands such as Zara, H&M. The company focuses on their
low cost strategy in order to gain edge over the competitors. Because low cost attracts more
customers and proving them good quality products with low cost will attract more customers.
Threat of substitutes: There are various players in the market that provide clothes.
There are lots of substitutes for every single product. Every substitute’s products and services
can reduce the demand of our companies’ products. Finer threads will work on providing quality
and trendy clothes to the customers (Aprilliano, 2021). At the same time the strategy of recycling
will help to beat the competitors in the market.
The business organization must work on setting effective image in the market. Creating
its own brand and proper advertising of the products with proper feedbacks from the customers
helps to grow fast in the market. They must give regular discounts and offers to the customers so
that they able to attract them. They must check their reviews of the products to know that the
customers are satisfied with their products or not. By building relations with customers, finer
threads will be able to attain edge over the competitors in market.
SWOT ANALYSIS

This is a tool which helps the business to identify its strength, weaknesses, threats as well
as its opportunities in current market. So with this business can easily work on its weakness and
overcome from its threats.
Strength
Provide best quality of clothes at reasonable price in the market.
Customer can also buy the clothes online from the website.
Provides trendy clothes and also provide offers to the customers.
Weakness
There is comparatively less product range.
Only sale clothes in local market.
Opportunities
With effective marketing company can enhance the demand.
By provide man clothes they can target more widely.
Threats
Clothing industry is having one of the biggest competitions.
Existing companies are having more knowledge of this industry.
Target Market
A target market is in which customers with same needs and wants are grouped together in
segments. Different segments have different kind of customers with same behaviors.
 Segmentation: It is the process of dividing the overall population in small groups that
have similar characteristics (Stojanovikj, 2022). All the customers with similar taste and
needs are grouped together. There are certain basis of segmentation such as demographic,
behavioral, psycholgraphic and geographic. Different segments have different taste and
preferences. The companies need to check the segments for production of products.
Different segments have different age group peoples and finer threads will produce the
products accordingly.
 Targeting: The process of selecting target group of customers is called targeting. The
target market is divided on the basis of age, income, lifestyle etc. Because of the different
characteristics of people with different taste and preferences targeting are done. The

target customers of Finer threads are women and kids with every age. Finer threads has
fixed target market on which they have to work and focus. The business is providing
different promotional things like discounts, offers to their target market. They will serve
the customers of London in the initial year of business.
 Positioning: Positioning is defines the one product stands against different products.
More unique is the product more good position it will get in the market. Finer thread is
providing unique packaging and promotion activities to make the product looks different
in the eyes of customers. The business wants to create image of providing trendy clothes
to customers. Building image of its brand in the eyes of customers as compared to
different brands. Because if a consumer builds an image of a product they will buy only
those products at any cost. Finer threads are providing good customer services with good
products to gain the confidence of the customers.
CONCLUSION
From the above business plan, it is concluded that the conducting research before starting
the business is important. Because without doing any research the business plans cannot be
executed correctly. The external environment scan is important part because it bring out the facts
and figures of what activity should be done and what should not to be competitive in the market.
The threats a business need to be aware of is the competitiveness of its products in the market.
The business should aware of the ongoing policies and taxes applied in the market. There is
evaluation of the competition in the industry so that suitable actions to take lead are analyzed. In
the end the target market are being analyzed so that proper segmentation, positioning, targeting
can be done.

REFERENCES:
Books and Journals
Aprilliano, Y.Y., 2021. AN ANALYSIS OF DESIGNERS’PERCEPTION OF USING
ENGLISH IN T-SHIRT DESIGN IN CLOTHING BUSINESS IN PONTIANAK.
ELSA. 2(1). pp.10-17.
Darmawan, T.A., 2020. Strategic planning of" Shibui Project" clothing line business (Doctoral
dissertation, Universitas Pelita Harapan).
Heath, J., 2018. But everyone else is doing it”: Competition and business self-regulation. Journal
of social philosophy. 49(4). pp.516-535.
Paras, M.K and et.al., 2018. An exploratory study of Swedish charities to develop a model for
the reuse-based clothing value chain. Sustainability. 10(4). p.1176.
Stojanovikj, M., 2022. Government size, inflation targeting and business cycle volatility.
Economic Analysis and Policy.
Uprety, P., 2020. Business plan: importing garment clothing from Nepal to Finland: Case study
of Himalayan Trade Fair.
Zebal, M.A. and Jackson, F.H., 2019. Cues for shaping purchase of local retail apparel clothing
brands in an emerging economy. International Journal of Retail & Distribution
Management.