Magazin Deborah Style

1. Introduction

It is known the fact that women are the most wonderful beings, but , same time, they are hard to please. For providing them the dreamed environment, we thought to open a special clothing store that offers them something above their expectations, a relaxing background that gives them a release from the daily worries and stress.

Deborah Style appeared to satisfy the women needs, to have something unique and with attitude on the clothing market, offering the possibility to achieve products with a high level of quality at accessible prices.

Deborah Style, situated in Iasi, Al.Lapusneanu street, no. 7, took existence at 20 October 2010, like a Limited Liability Company. The main developed activity is commercialization of women clothing products.

The organization’s joint stock is 585.000 RON, 360 RON/month for the rent of the spaces for the 3 stores and 1000 RON/month for the distribution.

The firm has three business quarters situated on Lapusneanu st., Carrefour Felicia and Julius Mall. Also, besides these stores, the activity is developed on the internet too, trough e-commerce.

2. Target market. Women will always be shop addicted, even if they do not admit it, although it is scientifically proven that 80% of them relax by doing shopping. In these conditions we have chosen as our target market women, just because we think of their needs and desires in continue changing witch are becoming more and more difficult to please.

Our clothes will be sold at different prices, depending on the material, design, complexity, and preferences, just to attend all demands of the female sex, regardless of age or income, in order to corner a high number of clients.

3. Entry and exit barriers. Some categories of entry barriers on market could be: costs barriers, differentiation, access to distribution networks, regulations and government policies, etc..

In terms of cost, our company wants to enter in the clothing market, a very crowded market with a high level of competitiveness, which leads to higher costs, given that we have to differentiate through product, pricing policy, and promotion.

The customer loyalty for certain products sold under the trademarks is a disadvantage for new entrants, whose installation requires significant market efforts. To change a specific brand product to another by a costumer can be achieved through price difference, promotion and quality level.

An enterprise that has a fresh enter on the market will face problems in distribution channels, because it requires time to gain confidence and distributors.

Regulations and government policies may compel the entrant to commit high costs for responding to different criteria. Often, these criteria are aimed to protect the domestic market trade by the counterfeit products, or without license and paying any taxes.

Scale economies are a significant entry barrier, because the existing competitors on the market have a certain experience and reputation, with their distributions, loyal customers, large stocks and adapted prices to customer’s tastes and possibilities.

Exit barriers

Alike the entrance on the market, the exit is not exempted by a series of taxes and costs, known as the exit barriers.

The first category is fixed costs of exit. Output can stop honoring long-term contractual commitments. All this may lead to compensatory payment of penalties, more or less expensive.

Another barrier is the fixed assets, therefore, the output can not be done without meaningful price losses. This is why some businesses continue to remain on the market in decline, even with losses, because they are lower than those which would occur if they leave the sector.

Leaving a sector can also cause a negative chain effect on other sectors, if the enterprise is integrated vertically or horizontally. Associated with damaging the public image, with consequences for future access to financial resources, these effects are strategic obstacles to market exit.

Because of problems encountered during the withdrawal from the market business of the shop, should be carried out a series of barriers to exit, such as those loyal customers, orders already made to be closed, feelings made during the business and investments made that should be recovered.

4.General “Deborah Style” goals

a) Sales should increase with 20% in the next 12 moths

b) Widening products range with at least 2 new assortments

c) The extension of the store in Al.Lapusneanu in te next 16 months

Goals on proposed segments:

a) Stores opening on 22 november 2010;

b) Website opening 7 days after the store’s opening;

c) After two months from the opening, the stores should be known by 15% of the women in Iasi;

d) Untill 10 january 2011, the website should reach around 10 000 views;

e) Attract the competition customers in the 6 first months from opening;

f) Building-up loyal customers in the next year;

g) Accomplishment of more than 3000 orders in the first 3 months.