elegancia final

7/31/2019 Elegancia Final

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AJMAN UNIVERSITY OF SCIENCE AND TECHNOLOGY

Feasibility Studies & Project Evaluation

2nd

semester 2011 - 2012

Prepared by:

Tamim Mohammed Salem Altamimi - 200810169

Mahmoud Ali Hamze - 200911126

Ahmad Awad - 200810155


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Our plan is to hire the best professional employees to serve our valuable customers.

we intend to hire highly efficient employees. We will need two receptionist that

have good communication skills and can handle customers well. Also we will need

two professional tailors to repair damaged dresses.

There are three main competitors in our market, one is located in Sharjah and two

in Dubai.

To start such business, we will need two sewing machine and sewing threads also we

will need a special cabinet as a storage to keep them safe. we need specific lights

which would be powerful spot lights preferable white so it enhances the brightness

of the dresses, and we will need a special ironing and cleaning machines so dresses

won't be damaged.


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The customers we are targeting they are 18+, Females with a good income level and

living in the United Arab Emirates, mostly living in Dubai.

The difference between us and our competitors that our competitors charge a really

high prices as for us we are charging relatively low prices. One of the most important

questions that we should answer, why customers would choose our products?

Well it is simple question to answer because while we were asking the customers

what do u want for us and how we should run our business?, we found out that the

customers are looking for the perfect dress for their special day with a low price.

And that is our philosophy in running our business to get as much customers as we

can, and that is accomplished in charging lower prices than our competitors while

providing a better service and the latest designs.

The population in Jumierah area is about 26,499

Sub communities:

Jumierah 1 332

Jumierah 2 342

Jumierah 3 352

We are not expecting any sales for the first month for we will be only taking orders

for the following month due to our policies stating that a dress has to be ordered

one month before due date of the ceremony, Our sales for the next 11 months

varies according to the seasonality of our business and it differs from renting 3

dresses to 6 maximum per month


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We already identified our competitors and with our competitive prices we can

handle it easily as long as our competitors are not close to where we are going to

start our business at.

SWOT Analysis

The following SWOT analysis captures the key strengths and weaknesses within the

company, and describes the opportunities and threats facing Cranium Filament

Reductions.

STRENGTHS

Our prices are lower than our competitors. Our relationships with customers and our employees are well trained and have a

very good communication skills.

Our location is excellent. We are offering the latest designs from the best two designers in Dubai ( Michael

, Azra ).

WEAKNESSES We will be new in the market and it will take time to attract new customers.OPPORTUNITIES High and growing demand of wedding dresses and new styles and lower price. Large amount of population in Jumeirah. Old customers will attract new customers to our businessTHREATS

Competitors might offer lower prices than before. New investor might open in our area and affect our business and take our

customers if they offered lower prices than ours.


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Our business in very profitable business if we knew how to control it and keep our

customers as long as the weddings are increasing in U.A.E and people are willing to

rent instead of buying new one for a very high price and our business offer low price

and latest fashions which customers seeks for.

We will have a big board so the people will know that this type of business is running

in Jumierah and we have a parking lot enough for 10 cars

We will use the mobile SMS to reach our customers and we will have a shop display

outside also.

Attract new customers and keep existing ones Satisfying the customers is very important objectives Keep offering new designs for new customers and lower prices

From 9 am to 1 pm and from 4 to 10 pm


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This depends of our customers satisfaction and our reputation in the market and we

will intend to keep our customers satisfied before and after the renting process and

it will also generate for us new customers.

we will make sure that our customer service employees be kind to our customers

because it's important for our reputation, as well our tailors will be high experienced

to make our customers satisfied and be loyal to us.


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We are dealing with two fashion designers and we are going to purchase each dress

for the half of the price which is AED 25,000. We will offer dresses for rent with

lower prices than our competitors because they are charging AED 17,000 up to AED

25,000 for each dress for one day. The price will be AED 15,000 which (FIXED). and

we will charge extra AED 1,000 for any damages from the customers side.

For the first month we have no sales due to our policies which states that the dress

has to be reserved one month earlier

For the 2nd month we are expecting to rent 5 dresses for AED 15,000 each = 75,000

AED

3rd month we are expecting to rent 10 dresses for AED 15,000 = 150,000 AED

4th month we are expecting to rent 5 dresses for AED 15,000 = 75,000 AED








Total expected sales = 1,215,000

And for the last month of the year we are not going to rent any dress on that month

because we are going to make some maintenance, renewing for the shop, bringing

new designs for the next year, changing the price of the old dresses or sell them for

20,000 AED - 30,000 AED

and taking orders for the new year so we can have sales for January of the next year.

On April we are going to purchase two new dresses for 25,000 AED each.

On September we are going to purchase three more new dresses for 25,000 AED

each.


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At the begging our start-up cost will be AED 184,162

We will get two tailoring machines for AED 400 each and one cleaning machine for

AED 600 that a total of = 1,400

For the furniture we will need sofas, carpets and curtains, it will cost us AED 9,650

We will get a special cabinet for storing the dresses for AED 7,800

The outside sign will cost us AED 600

For the decoration, room decoration will cost us AED 1,500Spotlights for AED 500

Chandeliers for AED 1,000, a total of AED 3,000

Tools that will be used for our kind of business is:

Strings Needles Buttons Fabrics Scissors

with a total of AED 2,000

Starting inventory will cost us AED 150,000 and we are getting 6 dresses. the dresses will

cost AED 25,000 each.

Inventory supply will be a AED 100 for the delivery of the dresses for the retailer to our

gallery.

We will deposit a AED 1,000 for the electricity, gas and water.

The advertising will cost us AED 162 for messaging 900 contacts 0.18Fils per message.

The licenses will cost us AED 7,500.


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Total Estimated Start-up cost

=

Price Of The Dress ( Renting Price )

184,162

= 12.27 ~ 12 dresses

15,000

We should rent 12 dresses yearly

( IF WE CONSIDERED THE WHOLE COST AND EXPENSES )

Total Cost And Expenses = 22.63 ~

Price Of The Dress ( Renting Price )

339,586

= 22.63 ~ 23 dresses

15,000

We should rent 23 dresses yearly so we cover all our cost and expenses and

also it means that monthly we should rent 1.9 dresses which means 2

dresses minimum should be rented monthly


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We got (+30) it means that we are under the Yellow light and we should take care

because some things might be not taken into consideration.

We got (+45) it Also means Yellow light and we should take care but on both ways

we still have the choice to start the business because we are sure of its feasibility

and its profitability.

We got (+80) which is Green light and our business is feasible from money side and

our revenue side.

elegancia final

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