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New Business Idea on Clothing

Marketing Project on New Business Idea on Clothing

Mission & Vision Statement

“Our mission is to modify women’s lives by making them feel good about themselves, through their outward appearance, so that it might pervade inward, to build their self esteem, so they could reach their highest dreams in a unique style and attitude.”

The company’s vision and goal is to produce high quality products in line with international standards under the supervision of trained management team.

Company Introduction

Online shopping has become more and more popular through the years. To keep up with the world Rouge – a project of fnf_concepts is an Online Fashion Boutique based in Pakistan and operating through social networks (facebook) with the Labels created to make easy availability.  A brand that is distinguished by its stylistic originality combined with the superior sartorial content of its creations. We try to give our customers the best value for money in the market by selling high quality products at very affordable prices along with making Worldwide Shipping Available.


We believe in diversification, and that’s what causes ease for our customers to buy things they just need under one name. The product range incorporates latest fashion trends and colors from around the world and infuses them with our own rich culture. We maintain high quality standards in fabrics, embellishments and stitching.

Our product range includes the following with different labels:

  • Clothing Line (Women)
  • Pret
  • Formal/semi-formal
  • Bridal Couture
  • Designer Tees (men)
  • Home Accessories
  • Paintings
  • Accessories


Rouge’s marketing intention, is to create excitement within current markets by showing the products as fun and fashion forward, and to open up the new high end specialty online store theme to new markets with consumers who haven’t shopped purchasing online.

  • The objective is to sell more of these current products in current markets (market penetration): Prêt wear, Party wear and Bridal coture. And to sell these new products in current & new markets (Diversification): Paintings, Sleep wear, Abaya’s and Bed & Table Napkin sets.
  • Our objective is to gain a foothold in the market and generate sales of Rs.3M in the third year.
  • Before 24 December of this year 60% of the people should be aware of the Rouge
  • Gain at least 20% of the market share of our competitor Ego, and Taankey.
  • Reaching 5% rate of interest (ROI) in first year


  • Moderate growth and steady cash flow
  • 10% of the total sales will go for the marketing

Company Name:       Rouge

Tag Line:                   Refined Luxuries!


New Business Idea on Clothing

Industry Analysis

Profile of the Industry

 “People in the fashion industry have used the press a lot more than people in the film industry, because you have nothing to sell except for the image: The image is everything.”       -Elle Macpherson

Back in the 1990’s, the fashion industry of Pakistan was totally unorganized and only few fashion boutiques were operating and providing their services at that time; but this industry has made quite a lot of progress in just a few years. Ten to fifteen years from now, this industry was still unknown to actually exist to the masses. Later with the formation of fashion councils, the publicity of fashion industry in the electronic media and education centers under the enthusiastic few who wanted to make a difference and promulgate this very institution of fashion. The fashion industry through times has gone through so many rapid changes and bizarre extremes, however the range of Pakistani dresses is remarkably wide, according to the vast cultures, geographical differences, purchasing capacities, influence of the western culture, diversity among the ethnic groups. But today it is one of the most progressing industries in the country.

Besides local market, there is a huge demand of Pakistani dresses in countries like USA, UK and UAE where Pakistani’s are migrated. The past few years have experienced an incredible increase in social media marketing. Its contribution to the total GDP is 8.5. The annual volume of total world textile trade is US$18. Through social media, it has become quite easy for businesses to track their potential audience and then make their presence known to them.  Pakistani fashion boutiques are not only catering the needs of local clients but also dealing international clients and are offering their services online. Eventually the people prefer to look out and search their needs through social media instead of buying their needs by the traditional buying methods like going to shopping centres.

Today, we can see number of online Pakistani fashion boutiques that offer a wide range of fashion collection online at affordable prices. The top class designers providing services online also include HSY, Maria B, Generation, Bareeze, Khaadi, Gul Ahmed, Nilofar Shahid, Umar Saeed, Sana Safinaz, Asim Jofa and relatively smaller designer names like Rang Ja, Limelight, Ego, and Echo. These designers are using Twitter, Facebook, Google+, LinkedIn, YouTube etc.

The fashion industry too, is influenced by external forces be the social, political, economic, technological or even competitive, which serve as a main driver for this industry. Moreover, relations with stakeholders – mainly suppliers, distributors and customers, and the strength and width of its competitors also define activities in the business. However, the relative strength of impact of these external factors on the industry varies and is computed with analytical tools like PEST-C analysis and Porter’s five forces model discussed below.

PEST Analysis

  • Political Implications

As one of the fastest growing industrial sector of Pakistan, the government is paying high attention to this industry. One measure taken is the Balancing, Modernization and Replacement (BMR) program under which loans are provided to the new businesses under concessionary rates. Apart from that, the apparel industry in Pakistan faces some serious challenges from the growing political tensions and issues. The policies regarding foreign exchange, imports, exports and investments have been consistently unpredictable due to the political instability in the country. In short, the constantly changing regulations and instability in the policies of the government have greatly hampered the overall apparel industry in achieving its optimum potential.

  • Economic Factors

Economic stability of any country is a very essential part, which needs to be considered when it comes to the growth of a business firm. It is like a core ingredient around which all other factors of an organization are revolving.

In the last two decades, economic depression is witnessed all over the world. This has caused a huge sudden change in the purchasing power of the customers. Poverty level, Foreign Direct Investment and export are on high-speed decline. With frequent price fluctuations, this industry is forced to increase the prices of their products which customers are not willing to purchase.

  • Socio-Cultural Factors

The social factors which affect fashion are a result of the popularity of one style or another. When one person sees a fashion they like on another person, they might try to reapply the look on themselves. It may change slightly, and then when other people admire their clothing they repeat the cycle by doing the same thing. This is how fashion is effected socially and how it evolves as well.

  • Technological Factors

Rapid changes and developments in technology have increased the competition. People are willing to buy online instead of buying but visiting shopping centers. Power failure is another big issue which industry is facing these days. Long duration electricity load shedding without any schedule is the main problem for such an industry.

Porter 5 (Analysis)

  • Threat of substitutes

A substitute is a product that performs the same or similar function as another product. The threats of substitute products are high in online clothing industry since there is an intense competition. Consumers changing fashion trends and price conscious consumers seek substitutes which are easily available online on different social Medias. This creates difficult situations for company to produce a brand image that appeals to consumers that want to shop for cheaper apparel, but also apparel that has quality.

  • Threat of new entrant

Due to high potential in the industry and high per capita income, the country is attracting more and more players with its rapid development. Thus, the threat of new entrant is high. And as we can see a  high threat of entry means new competitors are likely to be attracted to the profits of the industry and can enter the industry with ease. New competitors entering the marketplace can threaten or decrease the market share and profitability of existing competitors and may result in changes to existing product quality or price levels. An example of the threat of new entrants porter devised exists in the fashion design industry: there are very low barriers to entry.

  • Degree of rivalry among Existing Players

When organization in an industry exhibit a high degree of rivalry, industry profits will be decreased. Such rivalry often takes the form of rivals competing aggressively on price. Since price reductions can be easily matched by rivals, they lower the profits for the industry’s incumbents. This is why actions like marketing, innovations, and enhanced customer service are used in the fashion industry since they can often expand overall customer demand for the products or services offered in the industry.

All else being equal, existing companies in an industry prefer to face lesser competitive intensity and rivalry whereas Rouge would be facing somewhat difficulties in catering customers.

  • Bargaining power of customers

Bargaining power of customers is low in social media marketing because people cannot bargain online.

  • Bargaining power of suppliers

Bargaining power of supplies in online clothing industry is relatively low but purchasing from luxury designer firms, the bargaining power tends to be higher. Rouge would be producing its own designs and buying from suppliers in bulk at a cheaper cost.

Organizational Structure

New Business Idea on Clothing

 Online Competitive Analysis

Advanced Media Productions conducts an online competitive analysis that includes a review of the customer’s major online competitors, including an evaluation of their offerings (products and services), pricing, merchandising strategy, online market position, online marketing strategy, media mix, online visibility and web site effectiveness/conversion rate.

Market Opportunity and Issues

Wealth distribution in Pakistan is highly uneven, with the top 10% of the population earning 27.6% and the bottom 10% earning only 4.1 of the income. That is how the purchasing power of the population is counter intuitive. To the casual observer, below average per capita income would mean less purchasing power for luxury and high end goods.  However a series of characteristics make this market extremely attractive. The most important characteristic is the population density moving towards the social networks or purchasing online.

The key success factor in this market is not only the provision of quality products at reasonable prices but also the fact that due to the busy life’s ones heading towards, one has no time to go waste time and shop around, this is the market that prefers to sit back relax at home while they have the purchasing power right to themselves sitting on that comfy couch; and not to forget sharing and comparing products becomes much more easier this way. We now provide them a simple access to the quality shopping right from their home delivered right to their doors.

Situation Analysis

Rouge analyzed the situation analysis by providing a breakdown of the customer’s business niche, and a market, SWOT (strengths, weaknesses, opportunities and threads) using the 4C framework and also did an online competitive analysis.

  • Customers

Our targeted customers are both men and women as we have a diversified range of products. But are mainly targeted customers are women 16 and above with clothes being their only major outlay and who place a premium on wearing the right clothes. Now days women are surfing the online websites increasingly instead of men, So I suggest to advertise more women products to enhance our business and make it more profitable. As gender is one of the determining factors in the target market, the other one is the teenage group or the mid 20’s. Apart from females and teenage group, we are also focusing on men’s wear. Online shopping has become more of a craze today when it comes to their choice; so we believe in customized clothing made for our customers just the way they like. Apart from that we not only tend to target our regional culture but even our international customers by exploring possibilities of selling to international customers based in foreign countries through their web page and website.

  • Competitors

While there are several large fashion designers who are now focusing the global market online like Maria B. and HSY, they all carry a mainstream line of clothes that are appealing to the masses. But due to their mass distribution model, it would not be prudent for them to carry small amounts of differentiated product lines. Online retailers such as EGO, also carry a wide variety of clothes, but very few carry such a vast range of products like Rouge. There is a need for a specialty web store geared for this type of apparel, which covers almost everything at a reasonable price.

  • Company

Rouge was formed under fnf_concepts to make buying easier by creating an online web store providing clothing and other goodies inspired the young and independent yet creative women; it is a partnership formed by five individuals who are experts in each one of the department they are handling. The company’s vision and goal is to produce high quality products in line with international standards under the supervision of trained management team. We provide our customers with a large variety of ready made and made-to-order clothing line along with other products such as bed sets, dinner sets etc.

  • Context

Interest in apparel remains high even though there are a number of discouraging factors.  It is the number one choice of items for which to shop, beating out groceries in second place – 34% to 32%. From the past few years there has been an increasing trend of online shopping, it has improved access to new customers and increased the competition, and however the retailers of Pakistan have also overlooked this opportunity. There is a high demand for such products online and there are a number of brands operating as B2C businesses and are quite successful.

Product Positioning

Rouge explains how uniqueness can be achieved if it is combined with benefit. Our first priority is customer satisfaction and expectations and they are the people who gain this ‘benefit’.  And as you learn more about what the buyer of your product really wants your ‘uniqueness’ may actually change to meet the needs & wants of the buyer; and this is none less than a big achievement for the brand itself.

We will enhance our product as the trend changes and we will provide value to the money of our customers by providing them high quality products so that customer feel comfortable and satisfied by using our product and buy more and more and also create positive word of mouth.

Marketing Mix

Having analyzed the market and target segment, the marketing strategy will be as follows:

Product:  Rouge is market-oriented brand; an online virtual store with updated catalogs, which provides customized and trial options to customers. We believe in diversification with high quality standards.

Our product range includes the following products which fall under different labels:

  • Clothing Line (Women)
  • Prêt (Senorita)
  • Formal/semi-formal
  • Bridal Couture (All About Eve)
  • Sleep wear (Tease Me)
  • Abayas
  • Designer Tees (men) (A Guy Thing)
  • Home Accessories (a range of bed covers and table mats)
  • Paintings (Chitrkar)
  • Accessories (Material Girl)

Kids wear and Knit wear will also be available on Rouge soon.

Promotion: The promotion strategy will be driven by the requirements of the local market and so basic promotions will include traditional advertising, including print media, word of mouth, advertisements through Facebook and Daraz.pk, sharing among numerous contacts on Facebook and also through distributing pamphlets and placing banners on the targeted locations.

Price: Using value based, cost based and competitor based pricing. Rouge will try to maintain reasonable prices. As there is a latent demand, growth will come from tapping into this market, rather than stealing it from discounting or through any sort of price competition. Our prices will be economical so that everyone can make a purchase from Rouge.

Place:  As it’s a newly established firm the brand Rouge currently has no shops located anywhere; as they are using social network (facebook) and operating their own website in order to gain customers both nationally and internationally. We would also be working collaboratively with “Labels”; Pakistan’s Premier Multi-Designer Store by simply placing our clothing line in their outlets. We will also put together fashion shows and other special events, such as exhibitions that incorporate the members of the club, providing publicity for the organization.

Marketing Strategy

Rouge’s marketing strategy is crucial to the success of our business. The first and most important factor is getting people to visit the page and website of the brand. So the marketing strategy we use here would be pull and push and profile strategy. Pull strategy helps us in aware the people so that awareness can pull the customers towards the brand. Profile strategy helps us in creating the interest in the people. Push strategy helps us attracting and visiting people in the mall.

This can be done through the number of advertising agencies working online which focus mainly on your target market such as daraz.pk. We must create awareness of our product to our primary target market, by using other marketing strategies such as along with facebook utilizing the brand-name power of eBay and its popularity to establish credibility and increase awareness of our products, and adding our products to other sites as an affiliate provider.

We have also generated an e-mail for putting our customers on lists so that we can provide them with the latest know how. In the long run we would also contact local magazines and newspapers and ask them to do a story on us; apart from that Participate in local fashion shows and fashion design contests like project runway and also contact fashion bloggers to stay in touch with the latest fashion stories.

Our facebook page will provide information about us and our products as well as order processing to purchase our products online. We will include our web address in all of our advertising to reinforce to our customers how to find us online. Our company logo and motto will also be eye catching and easy to remember so that once our customers find us, they will remember us and suggest us to their friends and family.

Marketing organization

One of the five partners will head the marketing function and will be held responsible for all the duties being obtained and goals being accomplished.

Review and Control

Rouge will be reviewing and controlling simply on daily and monthly basis by producing reports focusing on:

  • Costs and expenses
  • Time management of production and delivery of the product.
  • We will check our strategies time to time and change them according to the requirement.
  • Check our revenues according to sales (per unit cost) there shall be positive relationship in them.
  • Review about the customer feedback so that we come to know about the customer’s requirements and satisfaction.


Contingency Plan

Very important aspect of launch will be contingency planning. Oppose to usual 5% this campaign will allow 9% of the budget for contingency planning. This money will be spending to replace the activities which fail to work or on additional promotion.

Sales and revenue figures will be tracked on the daily basis. This will help us to determine the effectiveness of the campaign. In case when actual figures will differ significantly from the plan emergent measures will be employed and sponsored from the contingency budget.

Business Model

“Our mission is to modify women’s lives by making them feel good about themselves, through their outward appearance, so that it might pervade inward, to build their self esteem, so they could reach their highest dreams in a unique style and attitude.”

Core Strategy

The basis of differentiation is how we position our product in the minds of the consumers in relationship to the competition, includes a few different things. Our customers know that when they come to purchase they will receive personalized attention and sales associates (page admin) will be friendly and go above and beyond just helping them find the best. And they also know that the products they purchase will be on trend and great quality.

Strategic Resources

Convenience is our major advantage—the Internet is always open! Whether you’re hunting for a particular item or just browsing, even after looking at six stores you’d never get the overview you do online. Often it’s cheaper, too: A site is forced to be competitive because shoppers can instantly compare prices.

Partnership Network

Rouge is a B2C business, runned by a group of 5 partners; which has no intermediaries to work with, no retailers or any other market intermediaries.

Customer Interface

Rouge focuses on both male and female being the economical class or the higher class; customers are customers and we promise to provide them with exactly what they wish for in our products. We would have a separate e-mail for customer feedback handled by a head because these feedbacks are what would actually make us grow and we would then be able to achieve our fulfillments towards them.

Start-up Cost

Initial Investment: 4,000,000 PKR

Registration Cost: Physical (off-line) submission: registration fee PKR 13,000 and filing fee PKR 6,000

Promotional Cost: facebook advertisement ($10/day)

Website Design: 18,000 PKR

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