Martha Designs Sharat Pundit Curtis McPhee Don Cuming Thava Rajah February 13, 2008

OVERVIEW Past performance Cottage industry since ,000 sales, 5000 net profit Coat line: $300 - $600 Sales from AB, SK, ND, North America and Europe Limited promotion

Operations; Operational Organization Martha Millwork (Owner/Manager) Wolseley Operation Grenfel Operation

Operations; Work Flow

Operations; Operational location and floor plan

Operations; Floor Plan

Human Resources One P/T staff – year 1-2 ◦converted to a full time position in year 3 Desired skill-sets: ◦Fabric cutting ◦General computer skills ◦Inventory management ◦Shipping and receiving Wages: ◦Part-time Salary:$10,000/yr ◦Full-time Salary:$26,000/yr ◦Standard pay increases based on inflation.

Human Resources P/T employees: International students to target European cities. ◦$500/per trip ◦show the product samples Manufacturing – the company would use the contracting services of the town of Wolseley.

Job descriptions Owner/Director: Martha Millwork ◦Specialty coat design and manufacturing experience: The core competency this business is based on. Cutter/Support: ◦Cuts the raw material for sewing. ◦Quality checks sewing from Wolseley facility ◦Process online orders, inventory management and shipping/receiving. Contracted Student Workers: ◦Starting from year 4- students from international students unions of different Asian and African countries at the University of Regina and University of Saskatchewan. Contracted Manufacturing Staff: ◦Utilize the sewing plant located in the town of Wolseley. Part-Time Seamstresses: ◦Retain working relationship with local seamstresses for last minute orders.

Past Performance Home based business Creative design of high end coats Currently $30,000/year revenue with $5000 net profit Sales AB,SK,ND North America + Europe Limited promotion

Current Market Structure / Trends Removals of barriers – 80s,GATT, NAFTA, FTA 5% 2.1 b / m sales manufactures, Quebec 60%, majors and independents, 298 west Canada alone Western Canada – 5.5M cities, 7.5 provinces North US - 5.9M cities, 12.5 M states Competition Chinese, US, Europe, Canadian HBC Signature, Pendleton manufacturers Competition basis – not on price – niche player

Product Line of coats High quality, unique Differentiated – updated, trims, natural Blend of fashion, function, tradition (history) Pendleton, HBC, wool, canvas, denim Value proposition o Original, authentic, all natural fibers o Exclusivity o High quality materials and construction o Made in Canada, modern, sophisticated o History

Product

Positioning high value, exclusive Premium priced Customers – research ◦already established – 30K ◦rising affluence , 14% ◦5% of disposable, trends increasing 1994 ◦AB, BC above average increase ◦25 – 65 men + women  west Canada  Northern US States  Eastern Canada  Europe

VISION OBJECTIVES Goals 40% gross profit margin ROE 20% $300k in sales in year 3 Pricing Policy market based – flexibility options Premium product – independents set price

VISION Goals of Promotion build brand awareness educate and develop interest in the line build marketing and sales networks increase direct sales establish independent store sales establish internet sales

Promotion continued Personal Attendance of fashion shows Special event displays at: ◦cultural fairs ◦exhibitions ◦stampedes Trade shows Direct selling to independent stores

Promotion continued Media Local newspapers Targeted magazines ( not limited to) Western Living, Western Fashion, Up Brochures Internet Develop B2B sales ◦Creation of Miyo Fashions web site ◦Internet Directory Listings  Canadian Fashion Federation Listing  Canadian Apparel Foundation Listing ◦Fashion Directories and web hubs links ◦Data base marketing

Expansion STRATEGY- phased 1. SK, MB - internet 2. BC, AB – internet on-line 3. US states - agents 4. East Canada, Europe

Budget and Sales Marketing Budget  17,500 yr 1  23,500 yr 5  16%–7% Gross Revenue Projected sales

SWOT

Finance; Capital Requirements:

Coats Sold

Mark-up Ratios

Finance; Projected Income Statement

Finance; Projected Balance Sheet

Finance; Ratio Analysis

Finance; Break Even Analysis

Sensitivity – Gross Margin

Sensitivity – Growth Rates

Sensitivity - % Sales

Conclusion ◦Marginally viable at first ◦Long term viability ◦Dependent upon sales volumes and mark-up ◦No positive net income till year 4 ◦Martha received a set wage of $35,000/yr