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Martha Designs Sharat Pundit Curtis McPhee Don Cuming Thava Rajah February 13, 2008
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OVERVIEW Past performance Cottage industry since 1972 30,000 sales, 5000 net profit Coat line: $300 - $600 Sales from AB, SK, ND, North America and Europe Limited promotion
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Operations; Operational Organization Martha Millwork (Owner/Manager) Wolseley Operation Grenfel Operation
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Operations; Work Flow
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Operations; Operational location and floor plan
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Operations; Floor Plan
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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.
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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.
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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.
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Past Performance Home based business Creative design of high end coats 300 -600 Currently $30,000/year revenue with $5000 net profit Sales AB,SK,ND North America + Europe Limited promotion
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Current Market Structure / Trends Removals of barriers – 80s,GATT, NAFTA, FTA 5% 2.1 b / m sales 2007 2000 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
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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
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Product
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Positioning high value, exclusive Premium priced Customers – research ◦already established – 30K ◦rising affluence 1994- 2007, 14% ◦5% of disposable, trends increasing 1994 ◦AB, BC above average increase ◦25 – 65 men + women west Canada Northern US States Eastern Canada Europe
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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
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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
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Promotion continued Personal Attendance of fashion shows Special event displays at: ◦cultural fairs ◦exhibitions ◦stampedes Trade shows Direct selling to independent stores
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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
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Expansion STRATEGY- phased 1. SK, MB - internet 2. BC, AB – internet on-line 3. US states - agents 4. East Canada, Europe
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Budget and Sales Marketing Budget 17,500 yr 1 23,500 yr 5 16%–7% Gross Revenue Projected sales
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SWOT
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Finance; Capital Requirements:
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Coats Sold
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Mark-up Ratios
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Finance; Projected Income Statement
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Finance; Projected Balance Sheet
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Finance; Ratio Analysis
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Finance; Break Even Analysis
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Sensitivity – Gross Margin
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Sensitivity – Growth Rates
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Sensitivity - % Sales
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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
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