Business Plan for Organo Clothing: Market Analysis & Strategies

This business plan details the strategy for Organo Clothing, a company entering the competitive fashion industry with a focus on sustainable, organic clothing. The plan includes an executive summary, company overview with mission and vision statements, and a macro-environment analysis using PEST analysis. It analyzes the UK market and industry trends, identifies the target market (university students, office-goers, and middle-high income groups), and segments the market using STP analysis. The plan also includes a competitor analysis, sales and marketing strategies (including a marketing mix), an operations plan, a SWOT analysis, and financial requirements with start-up costs, projected income statements, balance sheets, and cash flow projections. The plan also includes a break-even analysis and an elevator pitch, providing a comprehensive overview of the business. The plan emphasizes ethical practices and environmental awareness as key differentiators.

-BUSINESS PLAN-
ORGANO CLOTHING
Module name: Enterprise & Business Development

Business Plan- Organo Clothing
TABLE OF CONTENTS
EXECUTIVE SUMMARY .......................................................................................................4
Overview ..............................................................................................................................4
INTRODUCTION .....................................................................................................................5
COMPANY OVERVIEW .........................................................................................................5
Business Idea.........................................................................................................................5
Mission and Vision Statement ..............................................................................................5
MACRO ENVIRONMENT OVERVIEW.................................................................................6
PEST Analysis.......................................................................................................................6
MARKET & INDUSTRY ANALYSIS ....................................................................................6
Target Market........................................................................................................................6
Industry Trends .....................................................................................................................6
Market Segmentation ............................................................................................................7
COMPETITOR’S ANALYSIS .................................................................................................7
Competition Landscape ........................................................................................................7
SALES & MARKETING STRATEGIES..................................................................................9
Sales Plan...............................................................................................................................9
Key Performance Indicators..................................................................................................9
Marketing Mix for Organo Clothing ..................................................................................10
OPERATION PLAN ...............................................................................................................11
Primary Activities................................................................................................................11
Support Activities ...............................................................................................................11
SWOT ANALYSIS..................................................................................................................11
FINANCIAL REQUIREMENTS ...........................................................................................12
Start-Up Cost ......................................................................................................................12
2

Business Plan- Organo Clothing
Expected Selling price ........................................................................................................13
Projected Income Statement ...............................................................................................13
Projected Statement of Financial Position ..........................................................................14
Cash Flow for the first nine months ...................................................................................15
Break – Even Point and Desired Profit Sales .....................................................................17
THE ELEVATOR’S PITCH ...................................................................................................18
REFERENCES ........................................................................................................................24
3

Business Plan- Organo Clothing
EXECUTIVE SUMMARY
Overview
Organo Cotton is an idea propagating idea of organic clothing business. The agenda
of sustainable clothing became viral in the recent days. Hence, this company is focusing to
get the opportunity and enter the competitive fashion industry. Around 2 million students and
32 million office-goers are staying in the United Kingdom. This shows that Organo cotton
has a great opportunity to expand their business in the market. This business plan helps in
getting all the details about the company. This has also helped in analysing the market and
industry trends where the company is conducting their business. The operation plans, sales
and marketing plan and the financial plans are also prepared in this paper.
Keywords: Organo Clothing, Organic
4

Business Plan- Organo Clothing
INTRODUCTION
Entrepreneurial ventures is all about the risk, ambiguity, failures and the success and
learning as well as embracing it. There are many contexts through which entrepreneurs
manifests which includes start ups, social, corporate and the public sector. Business have to
take all the risk associated with starting the business or of bringing new products and services
in the market. It has to carry out various analysis to promote the products and business to
target customers. Present report is focused over Organo clothing which is focused over
clothing that is made from environmental friendly products and services. The business plan
will include industry analysis, competitor analysis, analysis of external forces, segmentation,
marketing mix, operational plan and financial plan.
COMPANY OVERVIEW
Business Idea
Organo Clothing is about a new idea, which is entering the fashion industry. This
organisation is focused upon conducting the business on ethical terms. With the increasing
global warming because of the pollution, the environmental media went to its root cause. It
was found that industrial wastage has been one of the major reason for environmental
degradation and fashion industry is one of them, who is contributing in pollution (Deng et al.,
2020). Organo Clothing will be dealing in organic clothing products without compromising
in fashion. The main USP of the company will be to spread environmental awareness among
their customers.
Mission and Vision Statement
Company Mission Statement – The motto is to adapt sustainable fashion by innovating the
manufacturing of the fabrics.
Company Vision and Philosophy Statement – To be the market leader by providing
sustainable means of fashion clothing.
5

Business Plan- Organo Clothing
MACRO ENVIRONMENT OVERVIEW
PEST Analysis
Political- In UK, the fashion industry has been largely exploited by the political laws upon
the worker’s right and the child labour laws and so on (Phillips, 2017). However, as Organo
clothing is into ethical practices, they will not get affected by such laws.
Economic- UK is one of the largest economies of the world, however as it is going through
recession n during the COVID-19, it has also affected the fashion industry (Fernandes, 2020).
Hence, from the economic point of view Organo Clothing will be getting the negative
impacts.
Social- The consumers from the UK are greatly concerned about the environmental
awareness. From the primary researches conducted upon the consumers it was found that
around 55% of the people are willing to pay more for organic products in order to save the
environment (Namkung and Jang, 2017).
Technological- Technology is one of the fastest growing subject in the UK. The people of
UK are now more into online shopping rather doing physical shopping in the market. They
follow various celebrities and influencers online for getting their fashion tips. Hence,
technology is also playing a significant role in the business of the company.
MARKET & INDUSTRY ANALYSIS
Target Market
The major target of Oragano Clothing, will be the university students, who are
concerned about the trending fashion. The second category to target is the office-goers who
are much into comfortable clothing along with maintaining their basic fashion sense and the
third category to target the customers will be the middle-high income class group having
more dispense of income. Organo Cotton will be focusing upon the larger section of the
market, however these three categories will be in the main area of focus.
Industry Trends
While analysing about the fashion industry in the UK, it was found that there has been
a consistent growth in the clothing and apparel industry as the people are getting more
concerned about their fashion sense. The fashion industry had made a profit size of 38 billion
6

Business Plan- Organo Clothing
GBP in one year. Hence, it can be assumed by analysing the previous records that this is
going to be stable in the long run (Jehanno, 2020). However, the fashion industry consists of
a huge number of companies and Organo Cotton has to face fierce competition in this
industry for a longer term. Still as the company follows various ethical consideration, it can
be assumed that the demand for the products from this company will also be there in the
market.
Market Segmentation
The market segmentation can be done with the help of STP analysis, which is
provided as below:
Segmentation
The market for Organo clothing has been segregated by various factors in order to get
the exact target market. There are various factors that determines a market. Firstly, the
segments are divided into six parts such as demographic, geographic, psychological, and
behavioural and so on. (Bolon et al., 2018) Hence, while doing the analysis for this company
the demographic segment has been focused, where it was found that the students of
university, office goers and the middle-high income class group will be taken under
consideration.
Targeting
After analysing the market of UK it was found that the main target market for the
company should be upon the university students, who are always attracted towards the new
fashion. The next batch for the target customers are on the office-goers. Office-goers
generally follow the comfortable fashion. Hence, Organo clothing is also providing the
comfort with the various cotton, silk and other organic clothing products. The third category
to this is the middle-high income group who are concerned about the environment awareness.
This is because these people are educated and have dedication towards environmental
protection.
Positioning-
Positioning Map
7

Business Plan- Organo Clothing
COMPETITOR’S ANALYSIS
Competition Landscape
While analysing the fashion market of UK it was found that there are other companies
who are also conducting business in this field. It is also because this organic clothing industry
is becoming viral and the growing craze is creating a great demand in the market for the
organic products.
Henri is conducting their business in
London, it is found that the company has
their online as well as offline presence
(Henri London, 2020). They have also
managed to launch their pop-up stores
which are attracting a lot of customers.
They
deal in
women organic clothing, and they follow a
premium pricing strategy.
The keep boutique is also one such
company, who follows the ethical fashion
traits. This company is a hub for all the
brands, where all the organic clothing
products from different brand is kept in
one place (thekeepboutique, 2020). They
offer humongous discounts and offers to
their potential customers in order to attract
them.
Reformation is a London-based company
who are having an attractive product line
in organic fabric. The company follows
very strong ethics and thus invest upon
their green infrastructure (Thereformation,
2020). They follow the premium pricing
strategy that helps them to attract the high-
income class groups.
8

Business Plan- Organo Clothing
COMPETITOR’S DIFFERENCES
Factors Me Henri The Keep
boutique
Reformation
Product Organic
Cotton tees,
pants,
leggings
Organic Cotton T-
shirts for Women
Organic products
that include
products like
bamboo tooth
brushes
Vegan organic
cotton clothing
Price Less Price,
Great Quality
High Price, Not
good quality
Medium Price,
Good quality
High Price,
High Quality
Quality Good fabric
quality
Not good Good Very Good
Service Customer-
Centric
services
Value-Based Customer Centric Value-Based
Reliability YES YES YES YES
Table 1: Competition Analysis
SALES & MARKETING STRATEGIES
Sales Plan
The sales plan helps in laying out the objectives of the business and strategizing ways
to achieve the main goal of the company. As the fashion industry is going to get an expected
growth, the company can expect a rise in their sales volume. By the year, 2021 the company
is expected to launch various new product lines. Hence, there is a SMART objective of the
company, which will help in determining the sales plan.
Specific- The goal is to expand the product lines and increase the revenue by 10X.
Measurable- The budget forecast and analysis will be helpful in measuring the growth and
success of the company.
9

Business Plan- Organo Clothing
Achievable- The goal of the company is justified and achievable as the reports has analysed
that the fashion industry is going to get an exponential growth in the recent years.
Time-Based- The revenue that is expected by the company has to be achieved within 5 years
i.e. 2025.
Key Performance Indicators
 To increase the sales revenue by 10% by next year
 Increasing the profits of company by 10% in next 2 years.
 Expanding the market share by 20% in coming five years. To become the trusted and recognised brand in clothing by 2024.
Marketing Mix for Organo Clothing
People- The people who are related with the business are having an impact over the
marketing and sale related activities of the company. The suppliers of this organisation play a
crucial role as they are responsible for getting the organic raw materials. The company is also
conducting their business with the customer-centric approach. Hence, the value of the
customers in the company is generally high.
Process- The process that is followed by the company will be comparatively simple, they
will produce the organic clothing products in their production units and with the help of their
efficient supply chain management the will deliver the products in their pop-up stores and
also in the customer’s door step.
Place- Organo Cotton will be having their presence both in the online as well as offline
mode. They will be establishing their first popup store in one of the major subdivision of
London in the hub of university students and the office goers. The company will also build
their website for creating an availability for online marketing.
Price- Organo Cotton after doing a market analysis found that the company should keep
competitive pricing for their products, in order to attract the customers initially. As the target
customers of the company are students who are studying in universities, they cannot keep the
premium pricing for their products.
10

Business Plan- Organo Clothing
Product- Organo Clothing is all about selling a list of organic clothing range. The company
has initially launched cotton and silk clothing, however the company is also trying to
innovate various sustainable clothing fabrics, which they will bring simultaneously.
Promotion- Company will be using the help of digital media for doing their promotion.
Being a start-up company social media promotion is the most reasonable way to reach to their
direct customers. Generally the main media that will be under focus by the company will be
social media ads, Influencer marketing, digital marketing, and sponsorships and so on.
Physical Evidence- Company is planning to create the pop-up stores in London, in order to
directly attract the customers in their shop. This will be helping the company to provide
physical evidence to their customers.
OPERATION PLAN
Primary Activities
 Inbound Logistics- There are buyers in the company who are kept for sourcing the
raw materials. This helps the company for manufacturing the finished products.
 Operations- Company will be operated in various other countries through their online
existence. The website of the organisation will be accessible to the customers across
the globe.
 Outbound Logistics- The organisation also have to tie-up with various outbound
logistic companies in order to deliver the products to their end-customers. Marketing and Sales- The marketing and sales team of the company is meant to keep
the company updated about the customer’s demand and supply in the market. This is
the crucial department, lacking in which can lead the company to losses.
Support Activities
 Firm Infrastructure – The manufacturing of clothes require huge infrastructural
facilities. Hence, Organo clothing has to be prepared to install proper manufacturing
facilities.
 Technology- The companies are nowadays forced to use technological advancement
in their business. Organo Clothing will be utilising the technology to expand their
11

Business Plan- Organo Clothing
business in the market. They will also use the e-commerce technology to grow their
customer base.
SWOT ANALYSIS
SWOT ANALYSIS
Strength
 Eco Friendly Brand
 Brand Values
 Customer-centric Approach
Weakness
 Brand Recognition in the market
 Need of more investment and
technology
 Limited product range in the
beginning
Opportunities
 Collaboration
 Celebrity Endorsements
 Campaigns about environmental
awareness
Threat
 Huge competition in the market
 Changing Trends in the market
 Changing factors affecting the
company
Table 2: SWOT Analysis (Created by me)
FINANCIAL REQUIREMENTS
Start-Up Cost
Start-Up Planning Amount (GBP)
Equipment
Software required
Computer/Laptop For managing the order
online
1, 00,000.00
Office Set-up Cost 25,000.00
Machinery Cost For packaging 50,000.00
Vehicles For delivering products 10,000.00
Total start-up Equipment
Cost
1,85,000
Start-Up Supplies Use of Funds
Raw Materials
Inventory Inventory that is for the first
3 months
45,000.00
Paper For creating invoices for the
customers
5000.00
Carton Boxes For packaging and
parcelling
20,000.00
Total Start-up supplies 70,000.00
Start-Up Services Use of Funds
Deposit of the rent 5000.00
12