Le Ensemble, Inc'

1
Le Ensemble, Inc.

• Project Proposal
• Betty Galindo
• Tyra Inman
• Sue Lee
• Sharon Waldrop

March 27, 2002
2
Agenda

• Business Need
• Purpose
• Constraints Assumptions
• Development environment
• Financial
• Marketing Plan
• Distribution Strategy
• Customer Service Tracking
• Inventory Tracking System
• Software Recommendations
• Hardware Recommendations
• Cost Timeline Estimates
• Summary

3
Business Need

• To take the hassle out of deciding what to wear
  each morning to work and school.
• To facilitate the apparel purchasing process
  based on an individuals personal profile.
• The core markets are business professionals and
  teens.

4
Purpose

• The software program coordinates wardrobe through
  the use of digital imaging.
• Customers are able to choose from a database of
  preset clothing templates or input their own
  clothing by scanning images into the database and
  completing a short form describing the details of
  the garment.
• Once the customer inputs specific details and
  keywords into the database, the software searches
  and returns the results according to the criteria
  set by the user.
• Each result contains a digital image, detailed
  clothing specs, and a price list of online and
  offline retail sources where the garment(s) can
  be purchased, if needed.
• This system is advantageous because it allows the
  consumer to save valuable time, effort, and money.

5
Constraints

• Insufficient resources (employee turnover)
• Burn-out, lack of team morale
• The inability on the part of senior management to
  make timely decisions
• Lack of proper facilities
• Lack of budget resources
• Loss of sponsorship
• Plan or scope too aggressive
• Lack of skills for project team
• Wrong project participation choices
• Software problems (functionality)
• Lack of team cohesion and commitment

6
Assumptions

• The software program will be the only product of
  its kind in existence by the time it reaches the
  market.
• The designers will be able to keep up with the
  latest fashion trends, implement them into the
  software program, and make them available before
  the trend dies out.
• Customers will have access to prices from both
  online and offline retail sources.

7
Development Environment

• Development Process
• Process Control
• The focus is on the process itself, the
  production plan are schedules being met, what
  is the production count (quantity), etc.
• Product Control
• The focus is on the end product does it work
  properly, has it been built correctly, etc.
• Total Quality Management
• All functions and processes are brought together
  and aimed at quality products and satisfying the
  customer while continually improving.

8
Development Environment

• Development Strategies
• Importance of new products
• We must be continuously aware of consumer
  interests, wants, and needs, along with the onset
  of competition and changes in product and
  service, which affect them.
• Developing and Refining the Product
• To ensure that our business does not fail due to
  a concept that is not executed correctly for the
  intended buyer, our focus will follow this
  product development path
• Our mission statement
• Our development strategy
• New products must be generated
• Ideas must be screened for potential
  profitability and be in alignment with company
  goals
• New product prototypes must be developed and
  refined
• Packaging, pricing, and advertising strategy
• Success of new products must be measured after
  introduction

9
Development Environment

• Management Process
• Planning
• Objectives have been established in order for us
  to accomplish our mission.
• The executive staff will meet with department
  managers to discuss the firms corporate,
  competitive, and functional strategies.
• Each manager will be responsible for developing
  their departments goals, procedures, and action
  plans that will support the firms strategies.
• Departmental budgets are to be submitted to the
  executive staff for approval.
• Organizational structure
• We will implement a horizontal organizational
  structure in order to accommodate a
  multi-functional, team-based system.
• This structure allows for the ability to make
  quick decisions without the slow-down that
  traditional decision-making/approval processes
  tend to create.
• This approach will result in reduced costs,
  shorter time cycles, and increased company
  response to customers.

10
Development Environment

• Management Methods
• Personnel Management
• Managers must ensure that each job function is
  being performed to optimum capability in order
  for the firms goals to be met or exceeded.
• Any conflicts within the teams should be handled
  appropriately and immediately, with both the
  employees interests and the firms interests in
  mind.
• Employees should be encouraged and motivated by
  training and appropriate pay in order to create a
  highly committed and customer-oriented workforce.
• Functional Strategy
• Our functional strategy is our course of action
  in departments achieving our strategic goals.
• Product departmentalization will be necessary in
  order to organize all of the activities needed to
  develop, manufacture, and sell our product both
  to professionals and teens.
• All activities should be geared towards achieving
  our corporate and competitive strategies, however
  not to the point of limiting growth and
  creativity.
• Therefore, within the departmentalization, the
  firm and the organization will support a
  team-based structure overall will be permeable.

11
Financial

• Operating Exp. 2002 2003 2004 2005 2006 Total
• HW maintenance (15) (10) (10) (10) (10) (55)
• Op sys maintenance (5) (11) (12) (12) (12) (52)
• Salaries of staff (350) (400) (450) (500) (550) (
  2250)
• Customer Service training (8) (10) (9) (9) (9) (45
  )
• Sales rep training (6) (4) 0 0 0 (10)
• Occupancy (45) (45) (45) (89) (89) (313)
• Utilities (11) (11) (11) (11) (11) (55)
• Supplies (15) (23) (21) (21) (21) (101)
• Total Operating (455) (514) (558) (652) (702) (28
  81)

12
Financial

• Assets 2002 2003 2004 2005 2006 Total
• Software Licenses (20) (8) (8) (8) (8) (52)
• Desktop PCs (25) (7) (7) (7) (7) (53)
• Network equipment (9) (9) (9) (4) (2) (33)
• Hardware LAN servers (35) (4) (2) (2) (1) (44)
• Desktops (5) (5) (5) (2) (1) (18)
• Peripherals (5) (0) (5) (0) (0) (10)
• Total Assets (99) (33) (36) (23) (19) (210)

13
Financial

• Cash Inflow
• 2002 2003 2004 2005 2006 Total
• Inflow from sales 400 550 650 750 900 3250
• Cash Flow Summary
• 2002 2003 2004 2005 2006 Total
• Expenses (455) (514) (558) (652) (702) (2881)
• Assets (99) (33) (36) (23) (19) (210)
• Cash Inflow 400 550 650 750 900 3250
• Net Cash Flow (154) 3 56 75 179 159

14
Marketing Plan

• Qualitative Research
• Our qualitative research will entail in-depth
  individual interviews and focus groups of target
  buyers.
• We will demo the prototype of our product in
  several retail stores in the clothing industry
  for examination, and ask for their customers
  opinions.
• Quantitative Research
• We will also conduct quantitative research for
  questioning a larger number of people along with
  a greater amount of questions.
• Generally, when 100 people are interviewed with
  simple yes/no questions, the results are 95
  percent reliable as a reflection of the target
  market of buyers.
• Market Niche
• We will use a focus competitive strategy by
  serving a market niche and at an affordable price
  while using exclusivity as a way to control our
  product and revenue.
• Our competitive advantage and differentiator will
  come from the fact that our products advice to
  the customer will be based on some of the most
  popular names in the fashion industry.

15
Distribution Strategy

• Strategic alliances will be formed with the major
  designer labels by Le Ensemble advertising their
  new fall and spring lines in our database
• Designers will offer our software to the consumer
  at a discount when they make a purchase of their
  clothing.
• In addition to retail outlets, our product will
  be available for purchase through our web site,
  and phone orders on its toll free ordering
  system.
• Television radio advertisements, Internet
  advertising, and magazine ads will be the primary
  methods of advertisement for the software.

16
Customer Service Tracking

• Responsible for facilitating orders received via
  the phone and on-line systems.
• When new customers place an order, all vital
  information pertaining to the customer is entered
  into our central customer database.
• The results are reduced order-processing time,
  direct access to order tracking, alerts of
  duplicate orders, access to client history, and
  tracking progress once the order is received.
• This system also helps to cut back on shipping
  and handling charges, and provides the inventory
  tracking system with the order totals to keep an
  accurate inventory.

17
Inventory Tracking System

• Oversees inventory management and maintains the
  database which tracks each product sold and/or
  sent to the marketplace.
• Oversees and facilitates the transportation/delive
  ry process and facilitates alliances with
  distributors.
• Reduces the chances of having too much inventory
  that will necessitate markdowns, and ultimately
  reduce profitability.
• Maintains perpetual inventory, and able to make
  adjustments to inventories for shortages or
  overages.
• Update online and POS data to their central
  computers and online servers once a day, and
  monitor customer and sales data in an effort to
  prevent physical inventory errors, overlaps, and
  selling errors.

18
Software Recommendations
System Network Operating System Desktop Operating
System Web Server Operating System Network/Desktop
Software Suite Desktop Publishing Web
Browser Customer Service System Inventory
Tracking System E-mail and Collaboration Accountin
g Software
Software Windows 2000 Server Windows 2000
Professional Microsoft IIS MS Office 2000 Adobe
PageMaker 7.0 Internet Explorer Developed
in-house Developed in-house Lotus Notes
R5 Peachtree Complete Accounting 2000
19
Software Cost Estimates
Cost Incl. w/ hardware Incl. w/ hardware Incl. w/
hardware Incl. w/ hardware 1,998 Incl. w/
hardware Incl. in salary Incl. in salary
1,164 320
Software Windows 2000 Server Windows 2000
Professional Microsoft IIS MS Office 2000 Adobe
PageMaker 7.0 Internet Explorer Developed
in-house Developed in-house Lotus Notes Peachtree
Complete Accounting 2000 Total Software Cost
Cost Per Unit Incl. w/ hardware Incl. w/
hardware Incl. w/ hardware Incl. w/ hardware
999 Incl. w/ hardware Incl. in developers salary
Incl. in developers salary 97 160
of Units 2 12 2
3,482
20
Hardware Recommendations
System Servers Desktops Notebooks Scanner Laser
Printer Fax Machines Telephone
Voicemail Copier Postage Machine Cellphone/PDA
Vendor Model Compaqs ProLiant ML330
DellTM DimensionTM  8200 DellTM InspironTM 
8100 HP Scanjet 7490 HP Network, Color LaserJet
4550 Panasonic KX-FL501 Norstar Compact
Integrated Communications System Mita KM-5230
Digital Copier Pitney-Bowes 8500 Series Postage
Meter Casio Cassiopeia E-200
21
Hardware Cost Estimates
System Servers Desktops Notebooks Scanner Laser
Printer Fax Machines Telephone/Voicemail/Data Copi
er Postage Machine Cellphone/PDA (incl.
service) Total Hardware Cost
Total Cost 8,675 5,596 5,937 258
10,380 600 40,000 2,799 9,999 2,396
Cost Per Unit 1,735 1,399 1,979 258
10,380 300 40,000 2,799 9,999 599
of Units 5 4 3 1 1 2 1 2 1 4
86,640
22
Timeline Estimates
Task Develop Process Control System Develop
Product Control System Develop TQM
Strategy Development of Product Establish
Departmental Goals Assemble Organizational
Structure Train Complete Qualitative Marketing
Research Complete Quantitative Marketing
Research Establish Alliances with
Designers Development of Le Ensemble
Website Development of Service Tracking
System Development of Inventory Tracking
System Purchase Hardware and Software
Responsibility S. Lee S. Lee S. Lee S. Waldrop T.
Inman S. Lee B. Galindo B. Galindo B. Galindo T.
Inman S. Waldrop S. Waldrop T. Inman
Target Date April 19 May 3 May 10 March 27 May
24 May 17 April 19 March 29 April 5 March 27
April 12 April 26 May 24
23
Summary

• Le Ensemble, Inc. will exclusively market
  software with a target market of professional
  adults and teens through a variety of avenues
  while staying exclusive.
• Through alliances with top fashion designers, and
  expansion into global markets with our website,
  the customer base will be expanded while
  increasing revenue by serving a market niche and
  by introducing new products.
• We will make sure that the distributors deliver
  the product to the customer in a timely method,
  and that our service departments and systems
  focus on total quality management in servicing
  our customers to the best of our abilities.
• The software and hardware systems were chosen
  only after detailed research was conducted.
  Drawing upon information collected from criteria
  lists, we were able to choose the products and
  services that sufficiently meets our needs.
• Le Ensemble, Inc. should be ready to conduct
  business on Monday, June 3. To preview our site,
  click the following http//www.quicksitemaker.co
  m/members/tseller1/Le_Ensemble.html