Entrepreneurship Case Study Report: Business Plan Comparison Analysis

This report analyzes a business plan for a clothing company, New Looks Clothings manufacturing Limited, comparing it with a sample business plan from Blueprints Business Planning Pty Ltd. The report covers various aspects, including the company's mission, products offered, market analysis (industry and competition), target market segmentation, marketing plan (products, distribution, pricing, and promotion), financial plan, critical risks, and recommendations. The analysis delves into the company's strategies for product differentiation, distribution channels, pricing, and promotional activities. The report also compares the competitive landscape, financial planning, and promotional strategies of both companies. The report concludes with recommendations for the company's future development.

Running Head: ENTREPRENEURSHIP
Entrepreneurship
Student’s Name
University Name
Author’s Note

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Table of Contents
1.0 Company background...........................................................................................................3
1.1 Mission..............................................................................................................................3
1.2 Products offered................................................................................................................3
2.0 Analysis of market................................................................................................................4
2.1 Industry analysis...............................................................................................................4
2.2 Competition.......................................................................................................................5
3.0 Target market segmentation strategy....................................................................................6
3.1 Marketing plan..................................................................................................................6
3.1.1 Products.....................................................................................................................6
3.2 Distribution strategy..........................................................................................................7
3.3 Pricing Strategy.................................................................................................................8
3.4 Promotional Strategy.........................................................................................................8
4.0 Financial plan........................................................................................................................9
5.0 Critical risks........................................................................................................................10
6.0 Recommendations...............................................................................................................10
7.0 Conclusion..........................................................................................................................11
8.0 Reference List.....................................................................................................................12

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1.0 Company background
1.1 Mission
The primary business mission of New Looks Clothings manufacturing Limited is to develop
alternative line of clothing products for the specific target customers. The company aims to bring
about variation in product lines based on the two parameters of soil and quality. The
Organisation was founded as a Tennessee C Corporation. The office of New Looks clothing
manufacturing Limited is mainly located in Memphis. All major operations of the organisation
starting from administration up to marketing strategy planning takes place in this location of the
company. The facility is a leased property.
Comparing the mission statement of New Looks clothing manufacturing Limited with blueprint
business planning Private Limited, it can be established that operations of both the organisations
are limited to a single locality. Blueprints want to establish their brand fame in the Marketplace
of Sydney, initially. In fact Abrams (2013), states that small businesses initially set up a single
target market where they can develop maximum brand reputation. Blueprint as well as New
looks counting on this particular business strategy.
1.2 Products offered
In spite of being small clothing brand new look is attempting for premium pricing. This reflects
the high quality and exclusiveness attached with the products offered by the brand. Utilisation of
high end raw materials like cashmere, denim of high gauge as well as wool blend gives the
product there exclusiveness and high quality. The company business strategies are focused at
making the customers understand the basic parameters of quality that is maintained in their
products. When the mark up is placed upon the products of new look from customers will be

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willing to pay premium price for high quality product. The product offerings are focused at male
customers who are aged between 20 and 40.
2.0 Analysis of market
2.1 Industry analysis
The industry where the company operates is a large, highly mature as well as highly fragmented
business domain. April produce both domestic as well as imported from foreign countries are
sold in USA. as estimated by the American apparel manufacturers Association the valuation of
apparel production in America is 39 billion dollars. However, evaluation of the amount of
apparel which is imported into the country from foreign locations is much more. However, most
of the national brands like the new looks Private Limited are limited to producing their Apparels
in local conditions of USA. The product retail outlets are similar for all big and small brands of
USA. Based on the availability off data from the NPD group, it can be reflected that the discount
stores, factory outlets as well as off price retailers’ accounts for about 30% of the apparel sales.
New looks Private Limited is however looking for more customer attraction and that is why the
data get the speciality stores as well as the departmental stores which account generally for 20%
and 18% of customer attraction, respectively. At present only 7% of apparel is distributed over
E-Commerce websites in USA.
Direct comparison between the industries of blueprints and new look is not possible because that
belong to different genre of industries. Unlike New Looks, Blueprints operates in an industrial
sector which is an regulated as well as highly ill-defined. Nevertheless, there is generic demand
for management consulting in Australia and especially in Sydney (Blueprintcs.wpengine.com,

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2019). Compared to that, the market demand is much regulated and streamlined in the clothing
sector of USA.
So far as the apparel market of USA is concerned, most New Designers as well as most
innovative product are generally launched by the big product brands of the country. Innovative
products developed by the small and medium enterprises are generally overlooked.
However, the companies dealing in small and medium sized product lines in USA apparel
industry have their own customer bases. The industry analysis of Blueprints also makes a
thorough differentiation between the sizes, context and market valuation of the corporations
operating in the industry. The differentiation between the opportunity and business viabilities
available to the big brands and the SMEs are significant components of all major business plans.
That is why, all these components for industry analysis are essential components of both these
business plans (Baker, Addams and Davis 2013).
2.2 Competition
Since the beginning, the company is planning to project them as a premium to the brand of male
fashion. In this industrial sector, growth is assured through to increase in household income of
people earning more than $60,000 every year (Blackburn, Hart and Wainwright 2013). Love
scenes the company is projected as a premium brand, they will definitely attempt to expand
overseas. However, at this moment real focused on domestic sales only. That is why the small
and medium clothing brands are the main competitors of the organisation. After successful
business sustenance in the American apparel industry, they will come in range of business
competition with major US based clothing brands who have great marketaccess in the Global
markets like Polo Ralph Lauren, Tommy Hilfiger and other similar brands.

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The business plan for Blueprints also highlights Nagin competition as it is faced by New
looks in USA. This shows that there is generality between the nature of competition that
SMEs face in every business sector. The business plan of blueprints Consulting Services
highlights other similar management consulting firms, specially which emphasizes on
SME training like them, accountancy practicing company for individuals who are also
appointed as Advisors in many smaller companies as well as the public funded Agencies
for business support are identified as the biggest market components of the organisation
(Blueprintcs.wpengine.com, 2019). In terms of business competition, business plans
detailed analysis of computers at two important levels. Hi in the first level organisation
snap the Business expansion rate of the organisations which have similar resources and
acids compared to the company which is concerned here. At the second level the
competition with the major market players in respective business sectors have been
considered.
3.0 Target market segmentation strategy
3.1 Marketing plan
3.1.1 Products
The company focuses on manufacturing premium products on the two parameters of quality and
exclusiveness of fashion. This strategy of the organisation can be highlighted define that they are
following a product differentiation strategy for establishing them as a premium brand. In order to
develop premium products comma cashmere wool blends as well as high gauge denim raw
materials for product development. Quality guarantee is complementary for the products of all
price ranges of the new look. The product development the company party into the ranges of

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casual wear as well as formal wear for men. Along with high quality fabrics, that also include
functional as well as a good morning designs. As an outcome along with casual wear, for the
customers of new look, experience of comfort in the formal costumes also matters. The latest
inclusions in the product lines of the new look are the hoodies and jogger pants.
3.2 Distribution strategy
In order to reach out to customers who favour premium products, the organisation uses direct
sales, E-Commerce as well as market retail as the tools of distribution. These channels are
strategic because of their short time to market, small Capital requirement, as well as fast access
to bigger target markets.
Along with distribution of finished products, the company has also plan the distribution of Air
Supply line. In the initial period of business, the distribution is constricted within the country.
However, in the future, the production of Denim clothes is expected to take place in Mexico and
the woollen production will take place in Italy.
In the business plan of Blueprints Consultants, it is evident that the organisation is planning to
use several medium for distribution rather than only focusing upon website content development
or e-commerce strategy (Wynne 2016).
Distribution channels will improve social media to engage in a two-way conversation with the
principal clients so that they can generate maximum business referral as well as reinforce the
existing business relationships.
Comparing the two business plans it can be advocated that the organisations wants to create
maximum value for the customers and that is why in the customer approach strategy is kept

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flexible. Application of largest number of distribution channels in helping creation of brand
awareness which will help in fulfilment of the future business strategies of both the organisation.
3.3 Pricing Strategy
It is evident that the product of the new look clothing manufacturing company belongs to a
premium range. Black top wear of formal and casual range are priced between 15 to 19 US
dollars. The price of any product ranges between 50 to 75 US dollars. The hoodies are priced at
25 to 60US dollars and sweatshirt is priced between 50 to 70 US dollars. Evidently there is no
comparison between the price ranges of both the companies whose business plans plans are
compared. The price range for casual consulting for training is charged at 120 Australian dollars
and the standard price demanded for any 10 pages business plan for any small and medium sized
company is 2002 Australian dollars (Newlook.com, 2019). However, it is evident that none of
the new growing companies wants to keep their prices low out of the fear of losing customers.
Comparing the two business plans, it can be advocated that the new product pricing strategy is to
keep the prices edgy so that the customers assume that the products are standardized. There is no
doubt that in recent times, irrespective of the business sector, price is indeed the index for
quality.
3.4 Promotional Strategy
The New Looks Clothings manufacturing company wants to promote their brand against a
theme. That is why almost all the product line is based on specific themes and there are various
music concerts or theme videos promoting the brand. Along with physical promotion, the
company uses strategies of customer sales calling and col calling. They send direct email or
direct messages to the potential customers for delivering product discounts or offers. This helps

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in word of mouth publicity (Newlook.com, 2019). The company also follows the social media
marketing strategies. However, all these Strategies are mainly focused at attracting the customers
of USA only.
The promotional Strategies of the blueprints Consulting Limited Company are discussed more
detail in their business plan. The organisation is using the three main channels like social media,
software and specific hardware for the promotion of their business (Blueprintcs.wpengine.com,
2019). How the organisation is implementing is promotional media for advocating their business
has been described in detail in the business plan. In fact comparison of the two business Trends
shows that guys large differences between the promotional strategies of the two organisations.
4.0 Financial plan
The financial planning of New Looks, considering that we are a new entrant into the industry has
been wonderfully explained in the business plan. The organisation targets male members of the
community aged between 20 to 40. The disposable income of the target customers of the
company is supposed to be high and they are supposed to have rich taste for high priced clothing.
In the 1990, disposable income of the customer range for this company grew at an annual 7%
hike. is allowed and increase in spending on footwear and apparel by 0.2% annually
(Newlook.com, 2019). Since 2000,the income parity of the customers of this company increased
from 40000 US dollars to 59000 US dollars. This is why the organisation started to open More
retail outlets and factory outlets so that the customers who favour spending on shopping can be
attracted to buy the products. Details of profit and financial management are not included in the
business plan for the new looks clothing manufacturing Limited.

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The financial plan for Blueprints indicates the rates for the services of the organisation in detail.
The Raid starts with the company against the same for other emerging and medium sized
enterprises in Sydney the business plan attempts to analyse the future steps of pricing for the
organisation (Blueprintcs.wpengine.com, 2019).
None ofthe business plans includes a detailed Asset Management or resource pricing catalogue.
This is because they knew the business and the eighth to implement in specific Asset
Management plan. On the contrary, more important for them is to develop proper pricing policy
so as to ensure sustained profit and financial gain.
5.0 Critical risks
Major reasons for the business are the changing trend of the customers. Products of new and
upcoming brands are favoured by them. However, trend analysis by Newlook.com, (2019),
shows that at the new companies are under the threat of changing tastes of the customers who
demand new product lines within every one or two months. Again, in the cotton market, the rate
of infiltration of new business entrance is very high. As analysed in the business plan of
Blueprint business planning Private Limited, the reliability issues in the company in because of
which the mind Lose customers. The excessive workload on the Limited work force is another
major risk of the organisation.
6.0 Recommendations
It is recommended that New Looks should initiate creativity as well as ingenuity for meeting the
requirements of customers. Economic fluctuations in the market might effect economy of the
company, demography trends as well as behaviour of the customers. This is why the organisation
should conduct a detailed analysis of the target customer base before implementing their pricing

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policies. Attaining leadership of the local market is another business objectives of the
organisation. Any new business has to establish a secure set of customers in the local
demography. With this target the organisation have to secure initial market capital so that they
can launch greater business initiatives and employ appropriate CSO and CFO so that they can
enhance their profit.
7.0 Conclusion
In conclusion it can be stated that the market competition is high for both the start up
organisations. However, with a more aggressive business planning strategy, New Looks is
going to get great advantage of business planning in the upcoming years. The aggressive
sales forecast already shows chances of Greater revenue generation in the upcoming financial
years. The market price determination of both the organisations are appropriate and their
growth strategies are absolutely aligned with their trend analysis. Both organisations are
giving Great Value to the local asset as well as resources. However, the foreign expansion
plan of The New Looks is much more esteemed than Blueprints. However, detailed business
planning of both organisations has the required potential to deliver satisfactory turns against
investments to both organisations and after analysing the two business plans it can be
forecast at that operational success is awaiting both the organisations in the upcoming
financial years.

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8.0 Reference List
Abrams, R.M., 2013. The successful business plan: secrets & strategies. The Planning Shop.
Baker, W.H., Addams, H.L. and Davis, B., 2013. Business planning in successful small
firms. Long range planning, 26(6), pp.82-88.
Blackburn, R.A., Hart, M. and Wainwright, T., 2013. Small business performance: business,
strategy and owner-manager characteristics. Journal of small business and enterprise
development, 20(1), pp.8-27.
Blueprintcs.wpengine.com, 2019. About the Organisation. Available at:
https://blueprintcs.wpengine.com/ [Accessed on 19th April 2019]
Newlook.com, 2019. About the Company. Available at: https://www.newlook.com/uk?
selectCountry=true [Accessed on 19th April 2019]
Wynne, H.S., 2016. 4 Wynnes Boating Manufacturing Company: A Market Analysis and
Business Plan for Northwest Arkansas.