Innovation and Entrepreneurship: Kids Creation Business Plan

This report presents a comprehensive business plan for Kids Creation, a startup enterprise focused on providing sustainable and trendy clothing and fashion items for children. The plan covers various aspects of the business, including the startup idea, industry profile, and business model, highlighting the company's differentiating features, such as its commitment to sustainable and organic materials. The report also addresses key challenges, such as attracting loyal customers and managing the supply chain, and outlines strategies for marketing, funding, and protecting intellectual property. Competitor analysis is conducted to identify opportunities and threats in the market, and the overall conclusion emphasizes the potential for Kids Creation to succeed in the growing market for environmentally conscious children's apparel. Desklib provides access to this and other solved assignments for students.

Innovation and
entrepreneurship

Executive summary
Business plan to open an enterprise which offers sustainable clothing and fashion items
for children includes information about start-up idea, industry profile and business model. The
name of the enterprise is Kids creation Differentiating features of the clothing brand include
sustainable fashion products for children. The main challenge to the business idea is attracting
loyal consumers. Marketing plan, sources of funding, competitor analysis and ways to protect
intellectual property of the company is given in this report.

Table of Contents
Executive summary..........................................................................................................................2
INTRODUCTION ..........................................................................................................................4
TASK ..............................................................................................................................................4
Start-up business idea..................................................................................................................4
Industry Profile ...........................................................................................................................4
Business model ...........................................................................................................................5
Point of differentiation................................................................................................................5
Challenges to the business idea...................................................................................................6
Prospective customers.................................................................................................................6
Marketing plan............................................................................................................................7
Competitor analysis.....................................................................................................................8
Sources of funding....................................................................................................................10
Intellectual property..................................................................................................................10
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Innovation is the practical application of unique business ideas by which company can
launch innovative products and services. Innovation is the essential topic that help company in
maintaining log term sustainability. The entrepreneur introduce new and creative business plan
that support economy of the country (Boysen, 2020). Entrepreneur identify new business
opportunity and develop business plan as per the requirements of market. Innovation and
entrepreneurship work in a synchronised manner to contributes unique idea creation to satisfy
market demand. The chosen organisation for this report is Kids Creation that deals in retail
segment of kids clothing and accessories. The report includes start-up business idea, business
model, industry profile, point of differentiation, marketing plan, competitor analysis. Intellectual
property, source of funding.
TASK
Start-up business idea
The start-up busyness idea is to create an children's clothing company which offers
sustainable and trendy clothing and fashion products. The products will be sold through online as
well as offline retail channel including own brand website, exclusive stores and e-commerce
websites. This is profitable business idea as consumers are becoming environmental conscious
and favour environment friendly products over fast fashion. In addition to this sustainable
clothing also helps stand out from competition and develop loyal consumer base on the basis of
environment friendly products.
Industry Profile
The market value for children's apparel marker consisting of clothing items for children
under the age of 15 is £10.12 billion. The expenditure on children ware has increased in the past
year showcasing positive growth for the industry. The children and infant wear market size will
post a CAGR of nearly 6% in the period of 2019-2023 (Global Children's and Infant Wear
Market 2019-2023 | 6% CAGR Projection Over the Next Five Years | Technavio, 2019). Product
premiumization and extension of product line are the main factors influencing this growth along
with growing penetration of organized retail. 38% of the growth will originate from Asia Pacific
because of high and demand for children products. Small business firms have the opportunity to
gain profitability by creating online delivery channels for Asia pacific consumers. The children

wear market is fragmented with different rival firms occupying market share. The major retail
chains such as TESCO and Asda have strong control over this market in booth offline and online
retail landscape.
Business model
The primary sources of profit generation will be from online and offline retail chains.
Discount sales on online sites and lucrative offers on offline stores will attract large amount of
consumers and bring high profitability. The business cycle for clothing products depended on the
demand of the clothing products (Cheng, 2017). The first stage for the business cycle in case of
children clothing items is introduction. This involves introducing trendy sustainable fashions
products for children on e-commerce websites and stores. The next stage is the peak or saturation
stage in which sustainable fashion trends will be adopted by large number of consumers and will
be considered a must have product. In the decline stage as new trends are introduced the products
offered at introduction stage will see decline in sale. In this stage Kids creation will focus on
identifying next trends in children's fashion market to offer sustainable alternatives for that trend
as quickly as possible. This will start a new business cycle attracting new consumers from fast
fashion stores to purchase trendy and sustainably fashion.
Point of differentiation
The kids creation is the start up company of UK in retail sector which focus to operates
its business activities in kids clothing and accessories. There are many competitors who are
providing same category of products and services (Cunningham and et.al., 2019). The company
faces huge competition in the retail segment that is why they develop its own unique selling
proposition from other brands. Company need to enhance brand image of company in eyes of
customers in order to win competition. Several substitute are providing similar kinds of products
in kids wears and accessories. Kids creation need to develop its unique point of differentiation to
maintain strong sustainability in competitive environment. They provide sustainable organic
(recycle cotton), environment friendly at affordable clothing and accessories of children. They
utilise organic clothing materials (organic, recycled cotton) which provide comfort and equally
fashionable as compare to others brands. Apart from this company utilise Fiber cellulose in order
to promote eco friendly fashion and comfort for kinds. These are very soft and flowy which
maintain environment and comfort altogether. The combination of sustainable fashion,
affordable and environment friendly materials develop USP and promote brand name of

company. This point of differentiation will increase sales and profitability of the company. By
implementation of point of difference company will develop its loyal customers that retain with
company profitability.
Challenges to the business idea
There are many challenges which are faced by Kids creation that is mention bellow-
Assembling business team-While starting new business of Kids creation, company faces
difficulties in assembling business team (Ding, 2020). They need to recognise diversity value in
each employees and transform individual goal into company objectives. Company need to
analyse individual strengths and weakness and train them to improve its skills and knowledge.
By proper training and motivation, company can enhance employees productivities.
Finding good customers- Kids creation finds some difficulties in attracting potential
customers due to lack of awareness in the competitive market. The launching new products and
services required effective plan of marketing campaign so that they can generate interest in
minds of children and parents (Dino, 2017). By the help of social media they can target their
potential customers and increase sales revenue.
Supply chain management- The supply chain of management plays important role in
ensuring availability of products to the potential customers. Proper arrangement and management
of supply chain management brings effectiveness in the company operations. Kids creation is the
start up business of kids accessories and clothing so they need some time to set up or established
effective supply chain management. The logistic chain or supply chain management ensure
availability of products at the suitable place and time so that kids can deliver appropriate
products to the right place at right time.
Changing trends- In kids clothing, industry demand changing trends on the regular basis
and fluctuate price and sales of the industry. The potential customers will prefer to purchase
those products which keep on changing as per new markets trends. Kids creation have to provide
lots of varieties in its product range by keeping in mind of fashion trends with comfort at
affordable price. Through this they can enhance scope of sale and revenue level of the company
to sustain in competitive environment.

Prospective customers
The successful business development, customers plays key role to increase sales and
revenue of company. For long term sustainability of business, company require loyal prospective
customers who will purchase company products at regular basis. It is essential for Kids creation
company to build loyal prospective customers with the help of valuable services at affordable
price (Escobar and et.al., 2021). The company create its own prospective customers so that they
can develop its business plan accordingly. Company focus on children from the age group of
seven to fourteen. The company try to maintain USP by delivering sustainable and affordable
clothes and accessory which is rarely provided by other brands. This will help company in
building trust and create loyal base of customers from age group of seven to fourteen. Company
provided kids clothings to both girls and boys and generate interest by involving fashionable and
sustainable use of materials. Kids creation create its prospective customers from both online
(social media) and offline channels (physical store). From effective promotional campaign of
social media company generate interest in minds of online users. By improving customers
services, company can enhance customer experience of stores. By focusing on both offline and
online prospective customers, company can increase scope of sales and revenue.
Marketing plan
Marketing plan: Marketing plan is defined as the effective operational document that
contains advertisement strategies of business that are adopted by the business to reach its
potential target market (Farinha, 2018). Kids creation organisation produces effective marketing
plan for conducting marketing activities in defined manner for the purpose of attaining
determined goals and objectives. Organisational STP and Marketing mix are mentioned below:
Segmentation: Segmentation is defined as the process of dividing whole market into
various small groups and segments on the bases of customers similar characteristics and traits.
Kids creation organisation segmented its target customers such as kids on the bases of their
demographic and behavioural characteristics.
Targeting: Targeting is the process that facilitates business to select effective market
segment to attain the objective of growth and development. Kids creation organisation evaluate
potentiality as well as commercial attractiveness of each marketing segment and select
appropriate one to provide its products and services. Respective organisation deals in kids wear
so it target children age between 7 to 14.

Positioning: Positioning is defined as the process of creating differentiate image of
organisation in the mind of customers through providing quality products. Kids creation
organisation offers sustainable kids cloths at affordable price. Respective organisation adopts
promotional activities to maintain its positioning in specific market than other competitors.
Marketing mix: Marketing mix is defined as the set various actions as well as tactics that
are used by the respective organisation for the purpose of promoting business products and
services in targeted market (Gao, 2019). Proper marketing mix facilitates business to take
effective decision that help to attain determined objectives in defined period of time. Factors of
marketing mix are mentioned below:
Product: Product is defined as the physical entity that have value for customers.
Organisations produce products and services for the purpose of selling it in market to satisfy
needs and demands of customers. Kids creation involved in producing cloths for kids of different
age group. Respective organisation uses various sustainable and organic material that do not
effect environment and kids as well. Kids creation conducts proper market research than take
decisions of producing products according to demand of customers.
Price: Price is defined as the value on which customers are ready to purchase products
and services. As Kids creation uses effective pricing policies for establishing price of cloths.
Price depends on various factors such as production cost, diPromotionPlacePricerect and indirect
expenses and organisational profitability objectives. Organisation set low prices than other
competitors that attracts range of customers.
Place: Place is referred as the point of selling through which organisation provides its
products and services to customers (Goller, 2017). Kids creation organisation provides products
targeted through opening stores in target market areas as well as through online sites.
Promotion: Promotion is defined as the activities that are adopted by the organisation for
promoting business products and services in market place. Kids creation organisation uses
various social media channels and online marketing through which business provides
information and data to customers that attract customers towards business. Respective business
creates effective content to attract customers and enhance business sales as well as profitability.
Competitor analysis
Porter's five force model is the effective tool in order to understand competitiveness of
the business environment. This model helps in identifying company potential and profitability

strategies. By adopting this model Kids creation can analyse its industry or competitors analysis
and also enhance potential potential strategy. It will help kids creation to gain maximum
advantages and build strong position by removing its weakness.
Threat of new entrants- New entrants contributes innovative and creative concept in
order to gain market share. The kids creation faces little threat from the new entrants because
company is also starting new business with innovative and creative concept of sustainability
fashion at affordable price (Patricio, 2017). This type of industry is very high risk taking and
deliver high rewards, so Kids creation need to introduce more unique concept in order to reduce
impact of new entrants.
Bargaining power of suppliers-In kids fashion retail segment, the power of suppliers is
small and insignificant because Kids creation source their materials and clothing products from
the biggest manufactures which already gaining profits in their segments. That is suppliers of the
Kids creation have little control over company. There are plenty of manufactures are ready to
supply their products materials so suppliers can be easily swapped up. This is the reason, why
input prices of Kids creation are very low and help them to develop its market expansion at
global level.
Bargaining power of buyers-The buyers have enough ability to raise or decrease price
of the products, they create demand of the respective products by which actual price of the goods
and services gets fluctuated. In case of Kids creation, it is the kids wear fashion retail brands
which face power of buyer (Ratten, 2017). Potential buyers of the company has enough ability
to fluctuate demand and price of the company products. This will create lots of pressure to the
company because if company fails to fulfil demand of customers then they will switch to other
brands. Before purchasing decision making, customers compare price of the products by
acquiring knowledge about various brands from online review sites. In order to reduce pressure
of buyers power , Kids creation can introduce loyalty programmes as well as differentiation in its
products and services.
Threat of substitute products- Most of the competitors of Kids creation are producing
same kind of products and services that create more pressure of substitute products. In kids wear
fashion retail, company faces threat of substitute because others competitors also providing
common products. The buyers can easily switch to the company substitute products, this will
make hard for the company to maintain sustainability. To reduce threat of substitute products,

company can provide more unique value from others substitute products by developing own
unique selling proposition.
Rivalry among existing competitors-The industry of kids fashion retailing are very
competitive and intensive because large of competitors are available who are providing same
kind of products (Robbins, 2017). But kids creation introduce innovative concept of
sustainability, affordability and environment friendly products. This innovative concept help
them to sustain its business operation in competitive environment.
Sources of funding
Kids creation is the new start up business, so it require appropriate source of funding
which help business to grow its market share (Zhao, 2018). Proper source of funding help
company to accomplish its short and log term goal There are some sources of funding that can be
used by the Kids creations for operating its business.
Banks-The banks have their loan department which provides loans to the start up
business like Kids creations. For getting loans from banks, kids creation need to qualify
minimum criteria as per banking norms because each bank has established own criteria of
earning potential, annual turnover, credit scores etc. Kids creation can take working capital, term
loans as well as loan against property as per its requirements.
Crowdfunding-The crowdfunding is one of the new method of finance sources in order
to raise funds from large group of people (Saji, 2018). The crowdfunding contributes only small
amount of funds to the Kids creation. The ultimate benefits which kids creation can acquire
from this source of funding that is fund raise from not that much large group which hesitate to
provide large amount of finance. This is helpful source of fund because company can make
arrangements of finance on urgent basis and company can executes is daily operations.
Intellectual property
The intellectual property is a kind of property which consist intangible, creations as well
as human intellect. The intellectual property rights are provided to the particular person who
create unique business idea. The Creator has full rights to use its business idea for specific time
period, it will provide safety and protection to the business who develop unique idea. As the
business market is very competitive so there is chance that idea can be copied by the
competitors. In that case Kids creation can utilise intellectual property in order to protect its
unique business idea.

Patent- Patent is the intellectual property right that is given to the idea creator for
protecting its unique business idea which can be used by third party. Patents are common and
effective intellectual property which is used to protect unique business idea. The owner of the
patent can commercialise its patent rights by selling through license agreement. This
recompensation is the mutual agreement among both both the parties. The kids creation can use
patent rights to protect its unique idea of sustainable, eco- friendly fashion which is used by them
in its operation process.
Trademarks- The Trademarks kind of intellectual property rights for protection of
business idea. It refers to the distinctive sign that allows customers to recognise particular
products and services of company. Trademarks refers sign and symbol that is utilise by the
brands for different identification (Sawyer, 2017). The varieties of products are available in the
competitive environment so, trademarks build unique identification from others brands. Kids
creation need to design its own unique trademarks which build creative differentiation from other
competitors.
Copyright-The copyright is the legal form of protection which protect original piece of
work. The copyright is the one of the exclusive right granted by the law in order to protect owner
original work (Sudrajat and et.al., 2018). These rights combines of distribute copies, right to sell,
display work publicity, records, publish and so on.
CONCLUSION
From the above report, it has been concluded that entrepreneur develop unique business
idea to accomplish market demand. Before introducing new business idea in the market,
company need to evaluate business idea, business model, industry profile, point of
differentiation, marketing plan, competitor analysis. Intellectual property, source of funding so
that they can operate their business in successfully. Company must create point of differentiation
to maintain long term sustainability in the competitive market because prospective customer will
prefer to purchase unique quality of products at affordable price. Company can secure its unique
business idea with the help of intellectual property.

REFERENCES
Books and Journals
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Entrepreneurship Education in Colleges and Universities Based on Key Competencies
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Ding, W., Hu, W. and Ye, J., 2020, July. Research and Construction of the Innovation and
Entrepreneurship Collaborative Education Pattern of Design Discipline. In International
Conference on Applied Human Factors and Ergonomics (pp. 136-142). Springer, Cham.
Dino, R.N., 2017. Hot topic 1. Connected but different: Comparing and contrasting creativity.
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Patricio, R., 2017. A gamified approach for engaging teams in corporate innovation and
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Zhao, S., Zhang, H. and Wang, J., 2018. Cognition and system construction of civil engineering
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Online
Global Children's and Infant Wear Market 2019-2023 | 6% CAGR Projection Over the Next Five
Years | Technavio, 2019. [Online] Available through
<https://www.businesswire.com/news/home/20191024006119/en/Global-Childrens-
and-Infant-Wear-Market-2019-2023-6-CAGR-Projection-Over-the-Next-Five-Years-
Technavio>