Everyday Life Store Business Proposal: A Retail Venture in the UK

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BUSINESS PROPOSAL
Name of the Student:
Name of the University:
Author’s Note:

BUSINESS PROPOSAL
Business Name
Everyday life store is the name of the proposed business that is based on the idea of a retail chain
and the product line is mainly focused on Garments and fashion accessories
Owners
Two partners are present one is Mr. Pavel Rodriguez and another is Ms. Johana Smith.
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BUSINESS PROPOSAL
Executive Summary
The study mainly comprised of the detail business proposal of the Everyday live store which is a
retail venture focused on selling clothes and fashion accessories. The market research has been
conducted and it is seen that demands in the middle population are maximum. Furthermore, the
main financial requirements are the tangible and intangible resource of the organisation it
includes the land, machinery to customize clothes, inventory management, employee and
furniture costs roughly about 5 lack pounds. The main USP of the organisation is to give
attention to individual consumers to develop an effective relationship.
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BUSINESS PROPOSAL
Table of Contents
Task 1...............................................................................................................................................6
Owners Background........................................................................................................................6
The focus of the new venture...........................................................................................................6
Market research...............................................................................................................................7
Market place................................................................................................................................7
Market segmentation...................................................................................................................7
Market strategies..........................................................................................................................8
Competitors..................................................................................................................................8
USP..............................................................................................................................................9
Operational requirement..................................................................................................................9
Explanation Tangible and Intangible requirements.....................................................................9
Legal policies.............................................................................................................................10
Cost and pricing strategy...........................................................................................................11
Financial forecasting......................................................................................................................11
Product sales forecast................................................................................................................11
The product sales forecast for Everyday life for the first 6 months are as below:....................11
Contingency Plan...........................................................................................................................15
Short Term.................................................................................................................................15
Long Term.................................................................................................................................15
Task 2.............................................................................................................................................16
Pitch Presentation......................................................................................................................16
References......................................................................................................................................18
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BUSINESS PROPOSAL
Task 1
Owners Background
Mr. Pavel Rodriguez is an MBA professional who has done his Master in Business
administration with special paper as Finance. He has experience in working with Aldi as
business operations and financial manager for almost 2 years. He is well versed in handling the
financial ventures and complying with the business operations of the organisation. The second
partner is Miss Johana Smith who has done Masters in human resource management. She has 3
years of experience of working as Human resource manager in the Tesco Plc limited. Moreover,
she has managed a global team and has competencies in managing the workforce in the retail
sector in an efficient way.
The focus of the new venture
The new ventures name is Everyday life store and it is mainly a product based venture in which
clothes and fashion accessories are focused. There will be two types of stores both online and
offline stores. There will be the presence of physical store and there will also be online services
of product delivery according to the requirement of the consumers. At first mainly the middle
class and the higher middle-class population will be the main focus due to their high propensity
to consume. There will be both forms of stores online and offline and online selling platform
like Amazon may be used to enhance the quality of delivery of products to the end users. It is
seen by using online platform 10 % more profit may be required (Hood, Clarke, and Clarke,
2016).
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BUSINESS PROPOSAL
Market research
Market place
The market place is one of the most important components. According to currents survey, it is
seen that the retail market is growing by almost15% every year. Moreover, the demand among
the middle-class population has increased after implementing e-commerce by almost20 %
(Baker, and Saren, 2016). The main requirements of the middle class are a good quality of
clothes and accessories in the affordable price range. Furthermore, the market place including
suburban areas is also increasing by almost 14.5 %. The rural consumers of UK are getting aware
of the fashion trends and demands among them are increasing.
Market segmentation
The market segmentation is one of the most important components that include the geographical
segmentation, psychographic segmentation, behavioral segmentation, and demographic
segments. It is observed that Physiographic segmentation and behavioral segmentation includes
the buying trends of the consumers and the demands of the consumers. In the case of the UK,
the upper class and the middle-class population are the 80 % consumer base of the retail. For
Everyday life, one middle-class population who has requirements to buy trendy fashionable
clothes are targeted. According to the Volk, and Pudelko, (2016), middle-class population shows
almost 40 % more consumerism then other classes. Moreover, the rural and suburban segments
should also be considered as they make almost 20 %of the market share. If sustainable consumer
base is enhanced among the suburban population then sustainable growth of Everyday life store
may be insured. It is also witnessed that demographic profiling is an important separate
marketing and sales strategies have to be developed for the different demographic segments in an
essential manner. In the case of Everyday life store, the middle class urban and suburban
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BUSINESS PROPOSAL
consumers will be the prime target. The young population with an age range of 15- 30 will be the
prime target as it is seen that almost 30 % of the buyers of trendy clothes and accessories are in
the range for middle class.
Market strategies
The marketing strategies are very important it is seen that in this present trend of globalisation
almost 50 %of the business development is dependent on the marketing strategies. According to
the research work of Fernie, and Sparks, (2018), in UK digital marketing is the present trend.
Almost 70% of young consumers are present in the digital platforms. The most significant
strategy should be to develop digital marketing for Everyday life store my formulating eye-
catching content for the new generations. Furthermore, to enhance the business promotional
works like sponsoring in some college fest and sports events may be very effective impacts on
the consumers. According to research endorsement are also important as market research suggest
almost 30% of sales dependant on the endorsement (Ratcliffe, 2018). Free samples are an
important ideas preparation of free samples of clothes and endorsement by local known face
should prove to be effective. Additionally, collaboration with some digital agencies should be
done to perform search engine optimization in a proper. The SEO process helps in developing
the web footprint of the organisation
Competitors
There is the presence of massive retail organisation like Marks and Spencer's and Tesco PLC
who has almost 30 %of markets each in the UK. According to the market research, it is observed
that the entry of new organisation in the UK retail market is favorable. However, the competitive
analysis should be done and the strengthening of competitors is to be studied and weakness is too
be specified. From the weakness of the competitors, lesson are to be learned and strategies
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BUSINESS PROPOSAL
should be identified to establish a competitive advantage. According to the statistics, almost 20
%of consumers feel neglected in big retail organisation because individual attention are not
given and affordable rates for the middle class are less.
USP
The unique selling proposition of Everyday life store is its affordable price range of trendy
clothes and the technologically advanced shopping service. There will be one store card by
which the consumers may buy in both online and offline mode with one-stop payment gateway
protected with firewall system. One of the major propositions is that in the physical store there
will be a special service for consumers. In those customized clothes according to the vital
statistics and the exact requirement of the consumers will be prepared by the executive of the
store to achieve sustainable consumer base.
Operational requirement
Explanation Tangible and Intangible requirements
Tangible Assets
It is essential to that tangible assets and intangible resource will be required for performing
proper business operations. The tangible assets include the physical assets like land which will
be required to develop the physical store of Everyday life (Ryan, 2016). Moreover, the
machinery for customization of the clothes and accessories are needed to customize the dresses
of consumers according to the special requirements. Modern stylish set of furniture's will be
required to display the clothes in the shop. Moreover, a desk for the managers and executives
will be required in the store. The supply chain is an important asset that should help in
performing inventory management in the new venture. There should be Informatics
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BUSINESS PROPOSAL
infrastructure and computer system to develop the central payment system in both online and
offline mode. Customer relationship software may be adapted to perform relationship
management with consumers. The software is to be installed with the main payment portal so
that according to the buying pattern and trends discounts and offers may be developed for
individual consumers. Furthermore, securities like bonds, mutual investments are tangible assets.
The main system volt is required for maintaining the cash. Vehicles will be needed in case of an
emergency requiring the supply and online delivery should be done by the store. Otherwise,
collaboration with Amazon may be done.
Intangible assets
The intangible assets include the intellectual property rights and patents of the company.
Copyright of the designs is needed as it is observed that some of the giant organisation takes
away the design and innovative ideas of the small and medium ventures (Skilton, 2016). It is
very important to buy the copyright and patenting new customized design of different products.
The brand image of the venture is one of the most important assets that should be preserved to
have a competitive edge over the rivals.
Legal policies
The legal policies are very important for new ventures. According to the employment act UK
2019, the employee rights should be preserved in Everyday life store. Here will be an affair and
transparent recruitment policy conducted by the human resource department. The financial bonds
and stocks of the company should be documented and the Annual general meeting will be
conducted and the investors will be updated with every new business proposition of the
company. Moreover, legal agreements will be done with employees to enhance the goodwill of
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BUSINESS PROPOSAL
the company. According to statistics 15.2% of the private sector employees in the UK do not
have proper agreements that affect the company's image. Effective medical facilities and
transparent investment and asset register of the company should be developed.
Cost and pricing strategy
The cost strategy is important as the holistic business process is totally dependent on the
operational cost of the company. One of the most effective strategies is to lean six sigma
management that should help in controlling the operational cost of Everyday life store
(Navimipour, and Soltani, 2016), the pricing strategy should be done after extensive consumer
analysis and comprehending the consumer perception and value of the product. The brand value
and the product costs should be considered at first the product cost should be kept affordable for
the middle-class target market.
Financial forecasting
Product sales forecast
The product sales forecast for Everyday life for the first 6 months are as below:
Product Sales forecast in Pounds
Causal wears 60,000
Formal wears 70,000
Jeans 90,000
Customized wears 50,000
Inner wears 40,000
Accessories 45,000
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BUSINESS PROPOSAL
Table 1: Product sales forecast
(Source: Created by the Learner)
May (Pounds) June (Pounds) July (Pounds) August (Pounds)
CASH INFLOW
Investment 30,000 25,000 13,000 35,000
Cash Sales 100,000 75,000 120,000 95,000
Total Inflows 130,000 100,000 133,000 130,000
CASH OUTFLOW
Labor 7,000 8,000 6,000 7,500
Purchase of Stock 4,000 3,000 6,000 3,000
Interest Premium 3,000 3,000 3,000 3,000
Taxes 6,000 8,000 7,000 6,000
Rent 2,000 2,000 2,000 2,000
Salaries 6,000 6,000 6,000 8,000
Total Outflows 28,000 30,000 30,000 29,500
NET CASH FLOW 102,000 70,000 103,000 100,500
Table 2: Cash Flow Forecast
(Source: Created by the Learner)
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BUSINESS PROPOSAL
The cash flow suggests that the month of July can be beneficial for the organization as it will
bring a cash flow worth 103,000 pounds. The months of May, June and August also will bring
nearly similar amount of cash inwards and thus it can be said that there is opportunity for growth
in terms of this new business. However, the operations must be managed expertly.
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