Fashion Splash Store: Business Essentials Report for New Business

This report provides a comprehensive overview of the business essentials for launching a new Fashion Splash store in Hammersmith, London. It includes a PESTLE analysis, marketing objectives, target market identification, and a detailed marketing mix. The report outlines the main objectives of the ...Read More

BUSINESS ESSENTIALS
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Table of Contents
TASK 1..............................................................................................................................................2
PART A..........................................................................................................................................2
FASHION SPLASH.........................................................................................................................2
PART B..........................................................................................................................................4
MAIN OBJECTIVES OF THE NEW BUSINESS.................................................................................4
OWNERSHIP OF FASHION SPLASH...............................................................................................5
TASK 2..............................................................................................................................................6
PESTLE ANALYSIS.........................................................................................................................6
TASK 3..............................................................................................................................................8
PART A..........................................................................................................................................8
LAUNCHING EVENT OF THE BAG STORE......................................................................................8
PART B..........................................................................................................................................9
BUDGET PLAN..............................................................................................................................9
Task 4.............................................................................................................................................10
MARKETING OBJECTIVES...........................................................................................................10
TARGET MARKETS......................................................................................................................10
MARKETING STRATEGY FOR THE TARGETED MARKET..............................................................11
MARKETING MIX........................................................................................................................11
REFERENCES...................................................................................................................................13
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TASK 1
PART A
The portfolio made below demonstrates the important factors of setting up and running a new
business on the market. This business idea chosen here is of the Fashion Splash Store with a
range of bags for the both men’s and women’s as in the current market the fashion for bags are
growing rapidly.
FASHION SPLASH
The area chosen for the new startup of the Fashion Splash Store is Sainsbury’s Supermarket
that is situated in 2-3 Kings Mall, King Street Hammersmith, London. The store will have only
physical outlet initially, there will be no online sales of the bags. The main bag style that will
attract the customer’s attention towards this new store is the Drawstring bags present in the
stores and a wide range in the similar category (Hall, et al. 2014).
The purpose of starting up business in the bag sector is that bags have been products of a need
to every people who want to carry themselves in style especially the teenage and working
people and it becomes a style necessity to carry cool bags. The idea of Drawstring Bag is a
reliable idea for starting up any business as there is a diverse collection of bags that has also
been increasing in popularity. Also, the idea of starting up the business in the bags sector is
that it has a wide scope of expansion as the business could be expanded into luggage section as
well that is also in much popularity. The use of new promotional methods and the wide
collection of Drawstring bags make the Fashion Splash business makes it unique than its
competitors.
Every customer who is interested in purchasing a bag has different needs but a majorly main
concern is that the bag must be spacious and must be feasible in carrying out to every place
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they go. The Drawstring bags are small in size it has huge space inside it as it shrinks when the
strings are pulled and ease to carry as it could be hanged on shoulders and the customers can
move freely. The main competitors of the Fashion Splash store are:
ORGANISATION COMPETITORS
FASHION SPLASH STORE
Aspinal of London
Cath Kidston
The Cambridge Satchel Company
Vera Bradley
These are few of the main competitors of the business of Fashion Splash Store operating in the
London market.
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PART B
MAIN OBJECTIVES OF THE NEW BUSINESS
Following are the major objectives of setting up the new business of Fashion Splash Store at
Hammersmith:
TO GAIN CUSTOMER SATISFACTION BY PROVIDING THEM QUALITY SERVICES
The purpose of setting up this objective is to retain more and more customers and gain
constant revenue. As the business and its growth are totally dependent on the level of
customers satisfaction so it is necessary to set the primary objective of the new business that
keeps the customers happy and satisfied with services.
TO EXPAND THE BUSINESS AT NEW LOCATIONS
This objective helps to boost the other objective planned for the new business. The more is the
branches of business at new locations the more will be an increment in revenue collection. This
objective will help the business to expand in the locations and increase the market shares of the
organization in both domestic as well as local market.
TO INCREASE PROFIT GENERATION BY EVERY PASSING YEAR
This is the key objective of any new business and for the Fashion Splash Store because the
growth in the profit percentage supports the success of the business and helps it to run a longer
race in the market.
TO INCREASE THE KNOWLEDGE OF THE BUSINESS FOR THE CUSTOMERS BY EFFECTIVE
PROMOTIONAL TOOLS
This objective is the integration of different offline and online tactics that help to achieve the
goals of the company. Promotional tools will spread awareness about the products and services
and business startup go the Fashion Splash at Hammersmith, London that will act as a boost in
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the sales by gaining the attention of the customers towards the variety of Drawstring bags and
amazing offers.
OWNERSHIP OF FASHION SPLASH
There are various types of ownership such as:
 Voluntary ownership
 Public ownership
 Private ownership
 Partnership (Hellwig, et al. 2015)
The Fashion splash store that will set up in Hammersmith, London will have Private ownership
and the benefits of this ownership for the business of Fashion Splash includes:
 In private ownership, the owners will have the full command over the business and
company and such ownership is a dilution of being a single owner that is no profit sharing
etc. (Lipski, 2015)
 The other benefit is a limited liability to exposure the details are not exposed to many
people that benefit in gaining competitive advantages (Liu, et al. 2017).
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TASK 2
PESTLE ANALYSIS
Here is the PESTLE analysis for the new business startup of Fashion Splash store, which will be
set up in Hammersmith, London:
POLITICAL FACTORS: The changes in regulation by the government of UK impacts on the
business like Fair Employment Act, Anti-discrimination Act, and Equality Act etc. (Sun, et al.
2014). The business performance is influenced by the political stability, especially for a new
business startup.
ECONOMIC FACTORS: The policies made by the government of the UK that is associated to rise
or decrease in monetary system impacts on the working of the business. The UK government
can increase the taxes of buying raw material such as leather, fibres like nylon, cotton etc. Also,
interest rates can economically influence the business of Fashion Splash Store.
SOCIAL FACTORS: Social factors that might impact the business of Fashion Splash in the UK is
the income of the people residing there as the bags like Drawstrings do not come in economic
range either it is under medium range or premium that might restrict people to buy the
products (Derbyshire and Wright, 2017.). Another impact could be based on a choice of the
people as different people have different styles related to bags in their minds and it is not
necessary that Fashion Splash could live up to all different requirements.
TECHNOLOGICAL FACTORS: Technology usually impacts the business positively as new methods
of promoting the bags and offers on them using advanced technology will gain more customer.
Also by the use of new methods company can start an online business by developing company's
website. Also, technology can negatively affect the business of Fashion splash store as if the
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competitor of the company adopts a better technological aid for their business like a delivery
system, an online website it can affect the new business of Fashion Splash.
LEGAL FACTORS: Every nation has its different policies and laws for every sector. The
management department of the Fashion Splash before setting up the business must go through
all the legal process and try to fit in all the legal aspects to avoid any sort of legal consequences
that could lead to failure of the business (Anton, 2015).
ENVIRONMENTAL FACTORS: It is the duty of every company to make sure that none of their
actions must damage the environment as it is directly related to the health of people, animals.
As Leather is not considered as a quality material for environmental but is used majorly in the
bags, the production team of the Fashion Splash must ensure use of only those materials that
suits the governmental guidelines and do not damage the environment.
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TASK 3
PART A
LAUNCHING EVENT OF THE BAG STORE
Launching of the business plays an important role while stepping up in the new world of
business. The launching of the business and the event planned for it has a major effect on the
perspective of the people as it helps in promoting the business in a likely manner (Patel and
White, 2015).
In order to launch bag store of the Fashion Splash Store in the Sainsbury's supermarket of
Hammersmith, London the time that is chosen is noontime on a weekend. The management of
Fashion Splash store has planned to set up kiosks in the supermarket in many posh locations of
Hammersmith where it could find people who visit those places majorly for shopping.
The management team of the Fashion Splash Store has planned to make the event big with the
resources available within the company. From several options, the company decided to go with
the option of ribbon cutting ceremony of the store by a known face and also approached too
many celebrities but due to lack of funds the company has to drop this plan. Later the
management team decided to go for the normal ribbon cutting ceremony followed by media
interaction where the management of the store will tell people of media about their store, the
latest trend they follow and will follow to please their customers. All this information will be
published in the newspapers about the launch event that will fulfil the objective of the
company of increasing awareness. Also, the company has planned to provide special discounts
and coupons to the customers you shop on the day of a launch of their store.
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PART B
BUDGET PLAN
The launching event for the new store of the Fashion Splash Store in the Sainsbury’s
supermarket Hammersmith, London is developed for around 400-500 people. Hence, the
budget plan will be created in accordance with the number of members who are expected to
attend the launch event that is approximately 400-500 people. The budget plan for the
launching event is as follows:
ACTIVITIES EXPENSES
PARKING SPACE £1500
ADDITIONAL STAFF £6000
DECORATION £5000
MEDIA MARKETING £10000
PROMOTIONS £18000
FOODS AND BEVERAGES £20000
TOTAL £60500
The above-demonstrated table explains the budget plan for the launch event of Fashion Splash
Store.
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Task 4
MARKETING OBJECTIVES
Marketing objectives are the aims decided by any organization at the time of advertising the
goods and services to its potential customers that must be attained in specified time duration.
The marketing team of Fashion Splash has developed several tactics in order to accomplish
effective marketing of the new business of the company by presenting their goods and services.
The main marketing objectives of the company are:
 To enhance the sales percentage by 10% every year.
 To increase the market shares
 Introduce new goods and services at timely intervals.
 To develop a strong base of buyers.
 Improve customer's relation so as to increase the number of loyal buyers.
TARGET MARKETS
The target market is to aim a specific group of customers for which the product or service best
suits. The market segmentation is conducted to segment the market by the marketing
department of Fashion Splash store depending on the elements like demographical factors,
geographical factors, behavioural factors, psychographic factors (Solomon, et al. 2014). All
these factors depend on one or other element that is associated with either the choice of
customer, their age, background, monetary status, location, sexuality, nationality etc.
(Armstrong, et al. 2015).
The targeted customers of the Fashion Splash store consist of people who love to travel, middle
or higher income group, students going schools and colleges, bag lovers, working men or
women.
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MARKETING STRATEGY FOR THE TARGETED MARKET
The marketing department of the Fashion Splash store has developed many strategies for each
of its customer from different targeted market like the one who purchases the office bags for
both men and women one each will receive special discount, for the school and college
students additional 8% discount on range of Drawstring bags, for orders above than £800 free
home delivery will be given.
MARKETING MIX
The marketing mix is an integration of several elements that are controlled by an organization
to impact the buyers to opt the company’s product. The 4P's of the marketing mix in context to
Fashion Splash store are discussed below:
ELEMENTS OF MARKETING MIX DESCRIPTION JUSTIFICATION
PRODUCT The product means the
goods and services provided
by the Fashion Splash to its
customers that arrange of
bags and bag packs like
Drawstring backpack, Men’s
Backpacks, Women’s
handbag etc. (Armstrong, et
al. 2015).
The marketing department
of the Fashion Splash
evaluated that there are
many people in
Hammersmith who are
interested in using bags that
must be different from the
normal bag trends.
PRICE The costing on the bags of
the Fashion Splash is done
according to both higher and
medium class people the
casuals bags cost in medium
range while going to some
designer taste the cost goes
The cost of the designer
products backpacks are
usually high in Fashion
Splash as there is no
compromise with the
material used and the bags
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up. last for longer use.
PLACE The Fashion Splash is located
in Sainsbury’s Supermarket
that is situated in 2-3 Kings
Mall, King Street
Hammersmith, London. The
store has only outlets the
business is not expanded
over online mediums yet.
Sainsbury's is a renowned
supermarket located in a
very posh area of
Hammersmith that where
people are usually out for
the shopping purpose makes
the placing strategy of
Fashion Splash the effective.
PROMOTION The marketing department
of Fashion Splash adopts
new technologies to
promote its business using
social media, print media like
newspapers, advertisement
on local channels, hoarding,
billboards of the offers on its
product and services etc.
(Huang and Sarigöllü, 2014.).
As the technology has highly
upgraded and also it is found
by the marketing team of
the company that people of
all the age groups are
majorly active on the social
platform so the use of social
media tool will positively
impact on the brand image
of the company and will also
help in increasing its brand
awareness.
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