FASHION BUSINESS PLAN

FARROW is a manufacturer and retailer of an upscale clothing line targeted at male and
females between the ages of 26 and 55. FARROW not only develops the clothing line,
but will support it with advertising and promotion campaigns. FARROW plans to
strengthen partnerships with retailers by hiring an independent consultant merchandise
placement specialist, thereby developing brand awareness. FARROW intends to
market its line as an alternative to existing upscale clothing lines and differentiate itself
by marketing strategies, exclusiveness, and high brand awareness.
FARROW is a Company that creates chic lines of clothing for women that love what they
choose to wear and care how they present their image in public. It’s a line made
exclusively for the fashion forward and bold – the young men and woman who are not
afraid to stand out and break outside of the norm.
The key message associated with the FARROW line is classy, upscale, versatile, and highquality clothing. The Company’s promotional plan is diverse and includes a range of
marketing communications. In the future, the company hopes to develop lines of
clothing for men, women and children.
The project cost is put at N14,515,400 with the existing amount expended on the project
put at N3.475m (24% of the total project cost) The applicant proposed to further spend
another N2.9m (20% while the loan of N10.0 m (69%) would be required from a financial
institution to ensured that the project is enhanced for growth.
From the profit and loss analysis, a loss of N1.096m was recorded in the first year, but
subsequently the profit from year 2 to year 5 is progressively increased from N3.96m to
N32.807m. From the economic analysis of the project, a net present value at a
discounted rate of 9% is N43.610 with benefit cost ratio put at 1.25 and internal rate of
return greater than 50%
The sensitivity analysis at 10% increase in the cost of material input and 10% decrease
shows a positive net cash balance showing that the project is feasible

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