Detailed Business Plan for Red Queen Studio of Alteration & Tailoring

This report presents a comprehensive business plan for Red Queen Studio of Alteration & Tailoring, located in Greenford, UK. The plan outlines the company's operations, including designer clothing and alteration services. It delves into market analysis, segmenting the UK market by demographics and targeting high-income groups. The report employs the SWOT analysis, Porter's Five Forces, and PESTLE analysis to assess the business environment. It also details the 7Ps of marketing and a financial plan, including funding sources and income projections. Furthermore, the plan addresses effective decision-making, including clear objectives and team formation. The business aims to expand its customer base and increase profits through an online ordering system and home services, offering convenience and customization to attract customers. This plan provides a detailed framework for Red Queen Studio's strategic growth and operational success.

Business Plan for Red Queen
Studio of Alteration & Tailoring

Contents
INTRODUCTION...........................................................................................................................3
Business plan..........................................................................................................................3
Market Plan............................................................................................................................6
Financial plan.........................................................................................................................7
Effective decisions..................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business plan can be defined as a written document that describes all details related with
operations and functions of business. The main purpose of business plan is to formulate strategy
and policies that leads a new organisation to accomplish their goals and objectives by
undertaking all aspects of business such as marketing, financial, operational and human resource
management (Arrondel, Debbich and Savignac, 2014). This report is composed for a tailoring
business named Red Queen limited situated in Greenford, UK. The company provide unique
designer clothes to attract more number of individuals. This report highlights on all perspective
that are related with business such as marketing, operations, finance and models.
Business plan
Business overview
Red Queen Business provides designer clothes to its customers along with alternations
facilities so that the clothes can fit to customers perfectly. The company is now aiming at starting
an online app wherein customers can place their orders and the workers of Red Queen can go to
the place of customers to collect their materials and get their measurements so that the cloth can
be tailored into designer clothes.
Product and service
 Apparel- The clothing lines for men, women and children all are developed by the
organisation to perform there work in effective manner. It is leading management to sale
there items with all range of customers.
 Sportswear- This refers to all those clothes which are formulated for performing physical
activities. Sportswear are also provided by Red Queened limited as it leads to provide large
variety of products including tracksuit, helmets, wet suits and many more.
 Formal wear- Professional and employees of all organisation prefer to wear formal dresses
such as business suit, full sleeve dress and traditional style suit.
 Costumes- This is used by organisation to attracts the specific target of the society such as a
particular culture, society and people that generates more incomer for company. Along with
this the major motive of Red Queened Limited is to make better results by providing design
products to its customers.

Market analysis
 Segmentation- Demographic segmentation is implemented by management through
which they offer all types of products to its customers as designer clothes are expensive
so it is complex for all to buy the products. Segmentation of complete UK market is done
based on age, sex and high income groups so that the market can be grouped into smaller
and simpler segments (Bocken and et. al., 2017).
 Targeting- The age group of 20-45 are targeted and specifically women belonging to
high class societies are targeted.
 Positioning-Positioning will be done through advertisement, online advertisement and
promotions.
SWOT
Strength-
 Red Queen limited is operating there business from the central London.
 Employees are high in skill to produce best designs.
Weakness-
 High cost of operations
 Recruitment of skilled employees.
Opportunities-
 Use of technology and convenience has increased.
 People’s demsnd for designer clothes.
Threats- High competition Changing customer tastes
Business canvas model
Key partners
 Suppliers
 Retailers
and
 Designers
Key activities
 Supply
chain
manageme
nt,
Value
proposition
 Life-style
clothing,
 Trending
clothes,
Customer
relationships
 Good
environme
nt of
coffee
Customer
segment
 Social
media
 Print
media

 Marketin
 Selling
 Designing
 Fashion
icon,
 Celebritiy
&
followers
shop
 Innovative
concept of
cup
 Newslettr
 Email
Key resources
 Raw-
materials,
 Skilled
workforce
 Machines
 The
Designer
Channels
 E-
commerce
channel
 Boutiques
 Fashion
bloggers
Cost structure
 Salaries
 Production
 Warehouse
 Raw-material Cost
Revenue stream
 Sales through retail tailoring shops
 Revenues from sales studios
 Income from E-business model
Stakeholder analysis
It help in analysing the level of interest, participation and influence of various
stakeholders on a business project. .
 High power, low interest: These are the people who have high power on the
continuation of the project but are not really interested in the results of the project like
suppliers.
 High power, high interest: These people have high power and also are highly interested
in the results of the project like shareholders, company board of directors (Burnes and
Towers, 2016).
 Low power, high interest: These stakeholders have low power or influence on the
actovities of project but have high interestr in the products of company like customers.

 Low power, high interest: These stakeholders neither have influence on the activities of
project nor are they interested in the results of the project like competitors.
Market Plan
Porter Five Forces
Threats of New entrants:. In context of Red Queen Limited, they have high risk of new
entrants within the market as investments within this sector are not high.
Bargaining Power of Suppliers: As there are number of suppliers who can easily provide
the product at low price which will enable Red Queen Limited to purchase the product at
reasonable price (Clark, Lusardi and Mitchell, 2017).
Bargaining Power of Buyer: In case of Red Queen Limited, they are among that company
where they are trying to introduce the new concept within the market of tailoring so here
customers will have low bargaining power at the time of purchasing the product.
Threat of Substitute Products: In case of Red Queen Limited, there is very limited option
available for the customers.
Rivalries among existing Competitors:. In context of Red Queen Limited, they are among
one of those sector industry where new plans and ideas plays the crucial. So, it can be easily said
that there is higher percentage of rivalry among the existing competitors.
PESTLE Analysis
Political: UK government support new businesses along with the use of technology that
can help in expansion of Red Queen.
Economic: People in UK have high purchasing power so that they can buy designer
clothes and bear the prices charged by company.
Social: People in UK are attracted towards designer clothes and the convenience of home
delivery will increase their attraction towards company.
Technological: Highly advanced technology can be easily available to company in UK at
cheaper rates (Fernández-Segovia and et. al., 2014).
7P’s of Marketing
 Price: Price will be decided based on the amount of designs asked for by customers and
the quality of cloth they need.
 Product: Designer clothes which are high on quality and fit to the size of customers.
 Promotion: Social media advertising, promotions in exhibitions and seminars.

 Place: Home delivery will be given to customers of UK and their orders will be taken
online.
Financial plan
In order to successfully expand its business in market by launching designer and
handicraft cloths in market it is important that a financial plan is made by Red Queen Studio so
that it can arrange for finances which will be required to conduct all the activities and allocate
them efficiently so that best results can be achieved (Garci, 2014).
Arrange for finances:
Following are the sources which can help in arranging the funds that are required by the
business:
 Banks: Red Queen Studio can arrange funds from banks which are financial institutions
that give loans to businesses in return of certain security deposit.
 Angel investors: Red Queen Studio can arrange some amount of funds from people who
have a large amount of spare funds present and they donate certain amount of funds to the
businesses.
 Shareholders: By raising amount of money required from the company’s shareholders in
return to certain amount of equity interest (Henninger, Bürklin and Niinimäki, 2019).
Income statement:
This statement help in knowing about the total losses and income which the business will
be able to make after the expansion of business at the end of a certain time period: Income
statement for Red Queen:

Thus from the above projections of finances it can be seen that the expansion of Red
Queen Studio will be profitable for the company.
Planning for contingencies:
Red Queen Studio must ascertain risks which are associated with starting a project so that the
contingencies can be determined and appropriate steps can be taken to avoid or minimise the
negative impact of these risks on business plan.
Monitoring and controlling:
After the formation of a business plan and during the execution of plan it is important that
the managers and leaders of company continually monitor and control all the business activities
by the way of surveillance so that the plan can continue to progress in the manner which is
desired (Klontz and Horwitz, 2017).
Growth strategy of product Market penetration: Company can grow in market by offering existing product in existing
market through advertising, offers and discounts.
 Marketing development: Company can grow by offering existing products in new markets
by the way of expansion in new markets.
 Product development: New product can be offered by company in existing market so as to
grow.
 Diversification: Company can grow by offering new products in new markets

Red Queen can use product development strategy through which online application is built
so that company’ designer products can be reached to customers when they place online orders.
Effective decisions
It is important that after the formulation of business plan effective decisions are taken by
the mangers and leaders of Red Queen Ltd so that the business plan can be effectively executed
and help in achieving desired results. These decisions can be taken by the management
effectively by determining all the alternatives and analysing their consequences so that the pros
and cons of decisions on business can be calculated. This can help in evaluating all the options
available for making decisions and selecting the best one possible which can help the company
in increasing its profits over a long period of time. A systematic process is to be followed while
making decisions by clearly defining the elements that can affect the decisions ultimately
affecting the company.
Red Queen is starting a new business project wherein it will provide online service of
booking orders for the designer handmade clothes to its customers. The customers can place their
orders online and the company can then send their workers to their place so as to collect the
clothing material from customers, take their measurements and also discuss about the deigns they
will select for their dresses. This will increase the convenience of customers as they can get high
quality tailoring service at their homes (Kristjanpoller and Olson, 2015). Some objectives that
Red Queen intend on achieving through this new business idea is to increase customer base by
30% and increase company profits by 20% in the next 3 months. Following are the effective
decisions that can be taken by company so that it can achieve its objectives within time:
 Clear objectives: It is essential that clear objectives are set by the mangers of company
so that employees can be motivated to accept the change that is to be implemented in
company. Clear goals will help employees in determining the direction in which they
have to work so that they can help the company in achieving its goals and objectives on
time. It will also help the managers in deciding the effective strategies that can be helpful
in achieving company objectives through the business plan (Lewis, 2015). Red Queen is
a tailor company which provides its customers with tailored clothes which are uniquely
designed, fashionable are can be highly customised by the customers as per their choices.
With the help of new business plan the company aims at achieving the attention of large
number of customers by giving them online facilities where the customers can book their
orders and the employees can go at their places to collect the material and measurements
to make designer clothes as per customer demands.

 Effective team: The next decision is on forming an effective team within the company
who can help in executing the business plan in desired manner so that each and every
activity can be completed efficiently. A team of technicians also needs to be built in the
company so that an online application can be created that can help in increasing the
convenience of customer by placing their orders online. Effective teams can help in using
their skills and talents and directing their efforts in achieving company goals in an
efficient manner (Liu, Xu and Zhang, 2019).
 Funds: Decisions regarding the arrangement of funds is very crucial for any project as it
will determine the rate of interest and the time within which funds are to be given back to
the borrower. It also puts pressure on business to increase its sales so that it can earn
more profits that can help it in repaying back its borrowed amount. The source thus needs
to be determined efficiently so that the amount that can be arranged from them can be
analysed along with their safety and security so that the interests of stakeholders of
company are not compromised.
 Promotion: It is important that the promotion of company’s services is effectively done
so as to reach to the customers and make them aware about their services so that more
number of customers can avail its services. Use of advertisement like social media
advertising, e-mails, messages, exhibitions and seminars etc. are the other ways to reach
to the customers so that sales of company can increase (Macchion and et. al., 2015).
CONCLUSION
From the all above report it is analysed that plans plays an important role for the
organisation that is leading company to gain long term results by performing all task according
to objectives. Various tools like Porter’s Five forces, STP, stakeholder analysis can be used in
making successful plan. It can help the company in effectively expanding its business in the
market. Moreover, with right business plan it is easy for management to achieve desired position
in the market as management is aware about market conditions which help to make an accurate
strategy for launch of new product in competitive market.

REFERENCES
Books and Journals
Arrondel, L., Debbich, M. and Savignac, F., 2014. Financial literacy and financial planning in
France.
Bocken, N.M and et. al., 2017. Business model experimentation for circularity: Driving
sustainability in a large international clothing retailer. Economics and Policy of Energy
and the Environment.
Burnes, B. and Towers, N., 2016. Consumers, clothing retailers and production planning and
control in the smart city. Production Planning & Control, 27(6), pp.490-499.
Clark, R., Lusardi, A. and Mitchell, O.S., 2017. Employee financial literacy and retirement plan
behavior: a case study. Economic Inquiry, 55(1), pp.248-259.
Fernández-Segovia, I and et. al., 2014. Implementation of a food safety management system
according to ISO 22000 in the food supplement industry: A case study. Food
control, 43, pp.28-34.
Garcia, R., United Services Automobile Association (USAA), 2014. Financial assessment
systems and methods. U.S. Patent 8,751,356.
Henninger, C.E., Bürklin, N. and Niinimäki, K., 2019. The clothes swapping phenomenon–when
consumers become suppliers. Journal of Fashion Marketing and Management: An
International Journal.
Klontz, B.T. and Horwitz, E.J., 2017. Behavioral finance 2.0: Financial psychology. Journal of
Financial Planning, 30(5), pp.28-29.
Kristjanpoller, W.D. and Olson, J.E., 2015. The effect of financial knowledge and demographic
variables on passive and active investment in Chile's pension plan. Journal of Pension
Economics & Finance, 14(3), pp.293-314.
Lewis, T., 2015. Apparel disposal and reuse. In Sustainable apparel (pp. 233-250). Woodhead
Publishing.
Liu, M., Xu, X. and Zhang, D., 2019. Integrated optimization model for distribution network
design: a case study of the clothing industry. International Transactions in Operational
Research, 26(4), pp.1269-1292.
Macchion, L and et. al., 2015. Production and supply network strategies within the fashion
industry. International Journal of Production Economics, 163, pp.173-188.