need gap
DESCRIPTION
Need Gap. The customer who wants to wear western wear is looking for variety and a wide range of such apparels. Consumers today demand a traditional yet contemporary look for their ensembles. The products have in turn adopted this theory to give out fresh designs and prints to the closet. - PowerPoint PPT PresentationTRANSCRIPT
Need Gap
Anokhi
Biba
Fabindia
Janpath
Saro
jniNo
0%
10%
20%
30%
40%
50%
0.0200000000000001
0.0200000000000001
0.0500000000000001
0.0300000000000002
0.46
3%8%
2%2%
27%
Variety offered in western wear with Indian touch under various brands
18 -24 Yrs25-31 Yrs
The customer who wants to wear western wear is looking for variety and a wide range of such apparels.Consumers today demand a traditional yet contemporary look for their ensembles. The products have in turn adopted this theory to give out fresh designs and prints to the closet.Women’s wear has undergone a drastic transformation & now people have become more experimental and want a combination of both ethnic and western wear. Popular brands like fabindia, W, Anokhi have western clothing with indian prints but lack modern prints and variety.
MEZCLA is providing customers a young fashion wear in wide variety by fusing the western silhouettes & Indianising the same with the use of indian & traditional prints.http://retail.franchiseindia.com/magazine/2008/november/Ethnicity-personified_22-2-5
Currently, India is the second largest country in the world after China in terms of a population of 1.15 billion.
Between 2010-2030, India will add 241 Million people in working-age population
Demographic - 50% of its population is below the age of 25 and more than 65% hovers below the age of 35.
The Young and working population of India is the biggest positive factor for India and its growth in coming years
The Indian women apparel market has undergone a transformation over the past few years--- changing fashion trends, rising level of information and media exposure
Entry of large number of foreign brands have given the industry a new dimension.
In 2010, the market size of western wear is more than Rs.42,180 Crore, an increase of 14% from 2007.
With the growing presence of organized retail and rapidly spreading mall culture, the industry is all set to grow further in the future, according to "Women Wear Market Forecast to 2010”
Increasing at a CAGR of over 17%, the women's apparel market is expected to cross Rs. 61,000 Crore by 2010.
Branded women’s apparel market is projected to rise at a rate close to 25% and surpass Rs. 18,000 Cr. by 2010.
Premium segment apparel is forecasted to account for close to 20% of the total women’s apparel market by 2010.
http://www.articleshub.org/article/7000/Women-Wear-Market-Forecast-to-2010.htmlhttp://en.wikipedia.org/wiki/Demographics_of_India
Market potential
inventory
western silhouettes
Indian prints
vibrant colours
jugalbandi
stylish
young
innovative
personification
female
traditional yet modern
experimentalconfident
lively and vibrant
smart and trendy
outgoingambitious
charismatic
trendy dresser
lives life to the fullest
Competitor Analysis
2 categories in women wearWOMEN INDIAN – Long kurtis, short kurtis,
supershort kurtis and churidars( core products)Target customer- 21 years and aboveWOMEN WESTERN- semiformal, skirts, dresses, tunics, trousers, short kurtis in western styles( core products)Target customer- 18 years and abovePrice range- Rs 560- Rs 1190 ( basic garments) Rs 1200- Rs 2490 ( fashion basic) Rs 2500- 4000 (fashion garments)
USP OF FABINDIAPromoting Indian crafts and
weavers in its products
supply chain of fabindia SUPPLY CHAIN- north region
100 – 200weavers 17 SRC
MRW1
Amritsar, Ranjit AvenueBhopal, TT NagarChandigarh, Sector 9CDehradun, Rajpur RoadIndore, M.G. RoadIndore, Treasure Island MallJalandhar, Urban EstateKarnal, Jarnali ColonyLudhiana, Mall RoadNew Delhi, Connaught PlaceNew Delhi, CP2New Delhi, DIALNew Delhi, DwarkaNew Delhi, GK1 N14New Delhi, Green ParkNew Delhi, Khan MarketNew Delhi, North CampusNew Delhi, Rajouri GardenNew Delhi, Select CitywalkPanchkula, Sector 9Patiala, New Leela
SRC- SUPPLY REGION CHANNEL ( 17 )MRW- MARKET REGION WAREHOUSE ( 9 )
End consumer
vendor
brand audit of fabindia
WHAT SPRINGSTO YOUR MIND
WHAT ELSE COMES TO YOUR MIND
OTHERS WEARING IT SELF IMAGE MEMORIES SIMILAR BRANDS
HUGE VARIETYPRINTSCLASSYETHNIC WEARMODERN INDIAN COLOURFULCASUALKHADIINDIAN COLOURSMIX MATCH
COTTONBLUE COLOURKURTARELIABLEMODERN INDIANTOUCHBROWN PAPER BAGREASONABLE PRICESMIX MATCHTHE NEW RANGEINDIAN
GOOD CHOICESENSIBLE BUYINGKNOWN BRANDJEALOUSSTYLISHINTELLIGENTCULTUREDSIMILAR TASTESSMARTINDIAN AT HEART
CONFIDENTSMARTMODERNCLASSYSATISFIEDFEEL AT EASEDIFFERENTCLOSER TO HOMEGRACEFULPOSITIVE
FIRST SALARY GIFTGIFTSGOOD EXPEREINCECOLLEGE DAYSSHOPPING WITH FRIENDSBUYING SIMILAR OUTFITSREGULAR SHOPPERGOOD ATMOSPHERESHOPPING FOR SPECIAL OCCASSIONSNONE
BIBAHAS NOCOMPETITORWALL ARE SIMILARANOKHIFABINDIA HAS THE MAXIMUM VARIETYFABINDIA IS ONE OF A KINDCOTTONSWELL ESTABLISHED BRANDGOODTHINGS
StrengthWide variety of prints that
are not available with various other competitors.
Blend of two cultures under one roof.
keeping the culture aliveKeeping the consumer
close to her roots.
WeaknessIn some parts of India
like Bihar, the acceptance for such clothes is less, so there is a possibility that this concept would
not be accepted by many people in such cities.
There is no prior business experience in
this field
OpportunityLess competitors
Increasing inclination towards WESTERN look
Untapped market clothing in vogue
Increasing disposable income with youngsters
People more fashion conscious, experimental
To go global
ThreatsCan be a fad
Competition from unorganized market that provide such apparels at
cheaper pricesCompetition from
established and known brands among the
customers like Anokhi and Fabindia
Duplicity of prints and styles
Competition from boutiques
SWOT ANALYSIS
RADIONEWS-PAPER
MOBILE
Wake up6.30-7.00 am
DILOWEEKDAY
Leave for work8.00-8.30 am
Go to bed11-1 am
Leave from work/college4.30-7.30pm
Dinner9-10 pm
GET READYPRAY TO GODHAVE BREAKFASTPICK LUNCH
RADIO
MOBILE
HOARDING
MUSIC PLAYER
CDs IPOD
INTERNETMAGAZINESBOOKSMUSICMOBILE
RADIOMOBILEHOARDINGMUSIC PLAYERCDsIPOD
TVMOBILEIPODINTERNET
MTVRADIOMOBILEMUSIC PLAYERIPODINTERNETMAGAZINS
COLGATE HTDOVE 93.5 FMLUX PANTENE NIVEAGARNIER LOTUSKELLOGES BODYSHOP NESTLE AMULKISSAN NESCAFETAJ TIMESMAC LAKMELOREAL REVLON
APPLE93.5 FMSAMSUMGBLACKBERRYNOKIAADS- LIFESTYLEPRODUCTS
FACEBOOKGOOGLECCDBARISTASUBWAYBISLERIKENLEY
NESCAFENESTLEDETTOLGARNIERPVRCCD MOCHAMUSICMTVHBONDTV GOOD TIMES
COLORSMTVFACEBOOKGOOGLEORKUTFEMINACOSMOVOGUEDELHI TIMESNEWSVH1
TRAVEL-CARAUTOOFFICEBUSCARPOOL
CLASSWORKLUNCH-CANTEENFOOD JOINTS
Reach at 9-9.30 AM
CARAUTOOFFICEBUSCARPOOLTAKEAWAY
RESTEATHANG OUT-MOVIE HALLCOFFEE JOINTSWORKTEMPLE- TUESDAY, THURSDAY
RESTSIT WITH FAMILYCHATGET READY FORNEXT DAY
MC DONALDS SUBWAYLAYS COKEPEPSI APPLE93.5 FM ADS- LIFESTYLEPRODUCTS
RADIONEWS-PAPER
MOBILEMAGAZINE
TV
Wake up9- 10.30 am
DILOWEEKEND
leave with friends- 4-5 PM
Go to BED11.30-1.30
Leave For home 7- 8.30 pm
Dinner with family9-11 pm
HAVE BREAKFASTRELAXSIT WITHFAMILYLUNCH
RADIO
MOBILE
HOARDING
MUSIC PLAYER
CDs IPOD
INTERNETMAGAZINESBOOKSMUSICMOBILEBANNERS
RADIOMOBILEHOARDINGMUSIC PLAYERCDsIPOD
MOBILEIPODRADIO
TVRADIOMOBILEMUSIC PLAYERIPODINTERNETMAGAZINES
COLGATE HTDOVE 93.5 FMLUX PANTENE NIVEAGARNIER LOTUSKELLOGES BODYSHOP NESTLE AMULKISAN NESCAFETAJ TIMESMAC LAKMELOREAL REVELONPARACHUTE
APPLE93.5 FMSAMSUMGBLACKBERRYNOKIAADS- LIFESTYLEPRODUCTS
BIG CHILLMOCHABARISTAPVRSELECT CITYAMBIENCEPROMENADE
HYATTSIDDHARTHAPUNJABI BY NATUREMAINLAND CHINARADISSON
COLORSMTVFACEBOOKGOOGLEORKUTFEMINACOSMOVOGUEDELHI TIMESNEWSVH1
TRAVEL-CARAUTOCARPOOLMETRO
FOOD JOINTSMOVIEMALLSCAFÉ s
Reach at 56 PM
CARAUTOCARPOOL
AT HOMERELATIVES5 STARSRESTURANTSTEMPLE- SATURDAYGURUDWARAS
RESTSIT WITH FAMILYCHATWORK
APPLE93.5 FM 98.3 FM ADS- LIFESTYLEPRODUCTS
NIGHT OUT- 11 ONWARDSCLUBS DISCOsBARS LOUNGE
F-BARAGNIQBAAQUA
CUSTOMER INSIGHTS
EXPERIMENTAL
TRENDY EARLY ADOPTORS LOVE TO SHOP- MALLS, HIGH STREET
LIKE TO ACCESSORIZE SPEND TIME WITH FAMILYBELIEVE IN GOD LIKE CELEBRATING INDIAN FESTIVALS
HANG OUT WITH FRIENDS
WORSHIP AT TEMPLES & GURUDWARAS FASTING ON VARIOUS OCCASSIONS
BRAND AWARENESS LIKE TO LISTEN TO ALL KINDS OF MUSIC
SMART CONFIDENT
WANT TO LOOK YOUNG
LOVE COLOURS LIKE TO DRESS WELL
EXPERIENCERS- energy, spent heavily on clothing, music EARLY MAJORITY FEEL YOUNG BRAND CONSCIOUS
INDEPENDENT FOLLOW LATEST TRENDS
SPENDS WEEKENDS WITH FAMILY AND FRIENDS
READS MAGAZINES- VOGUE, FEMINA
NIGHT PARTIES WITH FRIENDS AND COLLEAGUES
TARGETING
Geographics DELHI,
MUMBAI, KOLKATA, PUNE, CHANDIGARH, HYDERABAD, BANGALORE & MANIPAL etc.
INTERNATIONAL MARKET-UK- london
DemographicsAGE- primary target 18-24,
secondary target 25-31 YEARSGENDER- FEMALE
INCOME- 1 LAC & ABOVE PER MONTH
OCCUPATION- STUDENTS, WORKING PROFESSIONALS
Psychographics ATTITUDE- EARLY ADOPTERS,
EXPERIMENTAL, TRENDY, POSITIVE OUTLOOK, EARLY MAJORITY, EXPERIENCERS
INTEREST- FOND OF READING FASHION MAGAZINES,
LISTENING TO MUSIC , LIKE TO ACCESSORIZE , SHOP
LIFESTYLE- SOCIAL, BUSYOPINION- OPINIONATED,
SPEAK THEIR MINDS. RESPECT OTHERS OPINION
Behavioral USAGE- MODERATE TO
HEAVYBUYER READINESS- AWARE,
INFORMED, POSITIVEBENEFITS SOUGHT- CASUAL WEAR, MODERN YET INDIAN
FEEL TO THE GARMENTS
TARGETING
BRAND PRISM
Personality
Funky, cool, confident,
Independent, experimental
Culture
Jugalbandi, blend
Self Image
Thats the way I am
Physique
Western silhouettes, logo, Indian prints , Colours
Reflection
This jugalbandi is cool
Relationship
bridging the gap
To bridge the gap between Indian and western culture by providing a blend of both to young women in an innovative style
POSITIONING
CREATING PRODUCT
DIFFRENTIATION
PODONE STOP
SHOPINHOUSE STYLISTPRINTS
POPGOOD QUALITY FABRIC, NICE
FIT,
To young and vibrant fashionistas who are attached to their culture, mezcla is an apparel brand that gives them a one stop shop for the most stylish and trendy blend of both the western and Indian cultures to achieve their aspired look.
POSITIONING STATEMENT
COLOURS & PRINTS
VAST VARIETY OF SUCH CLOTHING
UNDER ONE ROOF
INDIAN PRINTS ON WESTERN SILHOUETTES
IN-HOUSE STYLIST
USP OF Mezcla
Mezcla product mix
Basics Fashion Basics
Fashion Merchandise
Tops Tops Tops
Bottoms
Bottoms
Bottoms
Layering
Layering
Dress
Brand Architecture
Basic Top (cost per unit)Direct CostFabric 1 40 Rs/mtCount 60sWidth 42"Linear Weight 190 GSMTotal consumption per unit 1.75 mt (including wastage)Fabric 2(Fabric 2 includes laces, zip ,buttons, velcro, shoulder pads, linning, etc )
10 Rs /Unit
Brand Label 3 RsWash care label 2 RsSize label 1 RsPackaging 10 RsTotal 96 RsCMTCMT cost per unit 50 Rs (250/8=31.25
31.25x1.6)Finishing cost 10 Rs (20% of 50 Rs)Total Direct Cost 96+50+10=156 RsIndirect Cost 16 Rs ( 10% of 156 Rs)Manufacturing Cost 47 Rs ( 30 % of 156 Rs)cost per unit 156+16+47=219 RsSCM & Logistics cost 16 Rs(7% of 219Rs)Total 235 RsFreight Cost 16.50 Rs ( 7% of 235 Rs)Total cost 251.5 RsVat (20%) 50.5 RsLDP 251.5+50.5=302 RsTotal cost of good including all expenses and overheads
302 Rs
MRP 830-981 Rs
Retail Margin 63.6%-69.2%
Mezcla basic top-costing
Mezcla pricing
Basics
Top
Bottom
Fashion Basics
Top
Bottom
Layering
Fashion Merchandise
Top
Bottom
Layering
Dresses
830-981 Rs
932-1161 Rs
1440-2790 Rs
1240-2217 Rs
1190-2115 Rs 2354-2990 Rs
2490-2990 Rs
3040-3990 Rs
2490-3990 Rs
Price Range of Mezcla
Client Centered- Selling Strategy
Market Coverage-Intensive
Distribution
Channel strategy- Pull Strategy
Pricing Objective-Status Quo
Pricing Strategy-Competitive
Strategies adopted by mezcla
Place
Company send PO to production House
Production House
Carton Loaded by Production House
Naraina Warehouse Carton Loaded by Company
End Customer
Production house agreementCompany agreement
Production house scans the file and makes a dispatch document of semi finished Goods
Packing List
Quantity List
Truck Receiver
Commercial Invoice
Proper quality & quantity checks take place before receiving the goods
Lot Size
Quantity Size
Price list
Goods receive note
•Fabric lot provided by the order company•Production will be monitored by the order company
Sent for embellishment
Semi-Finished Good
DOMESTIC SUPPLY CHAIN
CITYWALK,
SAKET
cp
Khan mark
et
GIP.noida
ambience
MILK RUN
Inspiration
Ideation
Consumer Research
Consumer Feedback
Selecting Trends and create new
ideas
Interpreting from trend forecast agencies http://www.vogue.in/Trends?utm_source=Google&utm_medium=cpc&utm_campaign=GoogleAdwordshttp://www.fashiontrendsetter.com/content/color_trends.htmlLead time-2-5 days
Data retrieved from famous agencies likehttp://www.market-search.com/news01.htmlAnd marketing Department done Primary & Secondary Survey researchLead time-2-5days
Designing
Trend ,Ideas & research handed over to design team
In-house- 21 days
Prototype sampling
In-house
Prototype Approval
In-house approval by other department1-2 days
Fabric Sourcing
Gupta Traders street No-67Karol BaghLyallpur Instyle Lyallpur FabricsRajouri GardenMinimum lot size 300-500 mtLead time 21 days(as per requirement )Width 63 inch
Keep in warehouse
Naraina
Printing & art work
In-houseLead time 4-7 days
Production and finishing &
labeling
Sobtis GalleryRamesh nagar/ C L ExportEast patel nagar/Kiran ExportArya samaj RoadUttam nagar Lead time 10-15days
Packaging
In-house lead time 1- 2 days
Semi-Finished Good
Packaged Finished Good
Retailer
End customer
Order dispatch as per quantity required for the store
Quality checker will monitor the production process
Embellishment, finished good
Final Products
In-houseLead time 7-10 days
Lead time 1-2 days
Maximum lead time- 90 days
Managing Director
Marketing & Sales Department
Merchandising R & D IT & Documentation
Administration/HRD
Logistics & Transportation
Finishing & Embellishment
Finding need GapAnalysis the market and consumer
Research and Design the product according to the need gap
Design approved and dispatch for proto type making
Sourcing the raw material and make prototype and send for final approval
After final approval prototype go for production
Production
After production product go to finishing & embellishment department
While production quality will monitor
Finished good Ready in warehouse
Retailer
end customer
1
4
32
56
8
109
Documented all the transactionWhile sourcingThe raw materialProduction SystemPackaging SystemSupply Chain System
Warehouse
13
Implement marketing strategy according to the product and consumer
11
14
Training ProgrammeAccording to the ProductInventory management
12
Finance Department
• Budgeting & forecasting the
financial condition
• Cost management• Asset management
• Revenue generate
While production fabric is allot by order company
7
countries Indian Population
GDP RentalHighest
Shopping Destination
Holiday Destination
Per Capital Disposable Income
Trading partner
System of taxation & Regulation
Inclination Towards Indian Culture
USA 2,800,000
14119050 m USD
1 2 1 $33,697 Canada give foreign investors unparalleled operational freedom
Fond of Indian culture
UK 2.5 million
2178856 m USD
3 3 2 $15,630 USA Less taxes on business .vat paid by customer
Very fond of Indian culture, fusion clothing brand-monsoon
Australia 265904 994246 m USD 4 5 3 $ 13,296 China Goods and
services Tax (GST)
Latest incidents of attack on Indians
Singapore 417559 182231 m USD
5 4 4 $ 9,603 Malaysia
Easiest place to do business
Not much inclination towards Indian culture
Dubai 1126422 223874 m USD
2 1 5 $14400 India No tax jurisdiction after FZE- free zone establishment
More Muslim culture, less acceptance of modern clothing
global Matrix
Female population under the age of 15-64 years is 20,246,519 Highest demand in clothing sector is for women’s wear(53%) No franchise law. Code of ethical conduct is adopted while doing any franchise business Indians in UK constitute about 6% of the GDP and 4% of populationThe Monsoon brand in the UK works on similar concept as Mezcla. There are 400 Monsoon and accessories store in the UK .
53%
26%
20%
2%
Chart Title
womenswear
menswear
childrenswear
accessories
Clothing sector breakdown
17%
67%
16%
Chart Title
0-14 years
15-64 years
65 years & abv.
Age Structure
UK
British Indians are London's largest ethnic minority group (7%) More than 160 Indian MNCs The Indian migrants are very nostalgic about their parent country. Keen to maintain an active cultural and spiritual link to India. There are over 10,000 Indian owned businesses in London. The Indian community in London is very active culturally. It organizes cultural and religious festivals to maintain its ties with India.London offers an enormous variety of Indian shops selling specialist food, herbs and spices, clothes, accessories and services.Now home to 1,73,000 overseas nationals from India, London accounts for over a third of the United kingdom total.
LONDON
Kensington high street is the 2nd best shopping street in London, serving a wealthy area. There is an institute of Indian culture, Bhartiya Vidya Bhavan , for Indians living there Presence of famous Indian restaurants called Zaika, Ustav, Rasoi Kitchen Total of 350 brands in approximately 18000 customer visiting the shops per weeks. High density residential areas (Brent, Ealing and Hounslow) with 10,000 Indian people are next to this high street.
6.50%
22.00%
18.30%
18.10%15.00%
14.30%
12.10%
10.00%
8.80%7.50%
Chart TitleCommunityGreater LondonHarrowHounslowBrentEalingRedbridgeNewhamHillingdonBarnetCroydon
Communities with significant Indian populations
Kensington highstreet
In May 1973, the first Monsoon shop opened in Beauchamp Place, Knightsbridge, London.
Monsoon Accesorize’s prestigious Head Office is located in Notting Hill Village, West London. Monsoon has expanded rapidly from its London base. Today there are over 400 Monsoon and Accessorize stores in the United Kingdom and over 600 throughout the world.
In-house designed collection of unique classic pieces, that range from sophisticated evening to casual day wear, and combine feminine styling with exotic colour, beautiful fabrics and detailed finishing.
MONSOON PRICESDresses- RS 3240- 14400Coats- RS 5760- 13000Top- RS1800-3240Trouser -RS 2880- 7200skirts - RS2880- 5500
MONSOON
Mezcla promotion
HOARDING
BANNER
Mezcla prelaunch- may FACE OF MEZCLA
NEWSPAPER-DELHI TIMES, FRONT PAGE, 4 ADSAllotted space in the news paper- 20x12=240 sq cmPrescribed day of publishing the advertisementSunday( 4 week)- 3654240 RsMAZAGINE- FEMINA & VOGUE, 2 ADS, FULL PAGE( THICK PAPER, WITH HALF LAP)FEMINA AND VOGUE magazine Page –monthly edition -875000 Rs
WEBSITE ON GOOGLE SEARCH ENGINE as Top priority website Total cost –605000 RsINTRODUCING MEZCLA BRAND ON FACEBOOK , Mezcla face hunt Charge = 200000 Rs
BANNER IN MALL -3 - 720000 RsHording on Flyovers in Delhi -3 -1326000Rs
PROMOTIONAL SCARF-20000 scarvesCost per scarf- Rs 6, total= 120000RADIO SPONSOR(93.5) – RJ Nitin of Red FM, 800 Rs for 10 secTotal- 300 secTotal cost =24000RsM COMMERCE-10 lakh sms4 times repetition in a monthTotal cost=80000 Rs
NEWSPAPER, DELHI TIMES, PAGE 3 – 1 AD PER MONTHMONDAYS- 8*10 CMCOST PER AD=132400132400*11=1456400TOTAL COST= 1456400 Rs
FEMINA AND VOGUE INSERSIONS- 1 insertion in every alternate issue5 INSERSIONS each in both magazineTotal cost= 22.25 lakhs
RADIO SPONSOR(93.5) - RJ Nitin of Red FM, the voice of Delhi’s morning show800 Rs for 10 seconds 200*11=2200 2200*80=176000Total cost= 176000 Rs
M COMMERCE Mobile SMS = 1000000x.02=20000 Rs (www.nimbusitsolution.com) IN A MONTH= 1 repetition11*20000=220000 Total cost= 220000
RIBBON CUTTING BY PRIYANKA CHOPRA- launch- JUNEcost to get Priyanka Chopra- 25 lakhs+ 5 lakhs 30 lakhstotal cost= 30 lakhs+1 lakhs= 31 lakhs
All year round June, July, August
PROMOTIONAL UMBRELLAS - JUNEwill be given for a month to all those who buy from Mezcla.total cost= Rs 88000
September, October, November FASION MERCHANDISE BY DESIGNER- augustAutumn fashions by Wendell Rodricks Total cost= 15 lakhs
December, January, February
EVENT SPONSOR- December College fest SponsorSouth Campus – 1 reputed College- JMCTotal Sponsor funds=500000 Rs Total cost= 5 lakhs
WADROBE SPONSOR- FebruaryWardrobe Sponsor for Reality Show on Television- ROADIES- Rs 400000Cost of Sponsor per Reality Shows = for one show ( Excluding Apparel and Accessories’ )This 3-4 L cost for showing our name as a wardrobe sponsor in every 8 Min and every time after the break and announced in every 8 min by the anchor of the show.Total cost= 4 lakhs
EVENT SPONSOR - FebruaryCollege fest SponsorNorth Campus – 1 reputed College- HinduTotal Sponsor funds=500000 Rs Total cost= 5 lakhs
Mezcla tongue twisterMezcla claims miss slips,miss slips claims Mezcla
March, April, may
Fashion show BY MEZCLA- MarchPass allows 2 personsFashion Show- To launch spring collectionIntended Invite media – Print media- The times of India, Hindustan Times, Femina, Vogue etcAd media- NDTV, Times Now ,MTV, NDTV goodtimesIntended invite Designer-3Cost of Invitation of designers-10 lakhsPlace – Hyatt Regency HotelCost of Booking-12 Lakhs( including ramp, lights, sound)Cost of Models – 7 Lakhs( including choreography )Cost of snacks and drinks – 6 lakhsTotal cost- 30 LakhsThis invitation will be given to Loyalty card holder-300Total cost= 35 lakhs ADVERTISING BUDGET =21853000 Rs total spent =2,12,69,640
Discount on 1 special day of each month
JUNE Father’s Day JULY Parents DayAUGUST Independence daySEPTEMBER Teacher’s Day OCTOBER Gandhi JayantiNOVEMBER DiwaliDECEMBER ChristmasJANUARY Republic DayFEBRUARY Valentine DayMARCH Women’s DayAPRIL Daughter’s DayMAY Mother’s Day
In house Designer
Gives an opportunity to customer s to make new combination and reward the best combination.
Loyalty cards to the customer s who will shop for more than 6500 Rs in one bill.(10% discount)
Maintain a feedback register and reward the person with the best feedback every month. This will be done to generate more genuine feedbacks.
Exclusive sales of Mezcla for loyal customers.
A flexible exchange policy
Flowers/chocolates /cakes sent on Birthdays.
Follow up calls for unavailable garments.
lucky draws will be organized and passes for fusion concert , festivals & events will be given to the winner .
This is a kiss and win mirror , which will be placed outside Mezcla. girls who are visiting or shopping at Mezcla are to kiss the mirror and write a word about their experience at Mezcla.1 weekly winner will be decided by Mezcla,who gives the best word and a thank you cake will be sent to the winner’s place.
CRM of Mezcla
Initial Investmentkey assumptions:First Year sale-10-50% of competitor saleWorking Capital-20-50% of First year salePre-operative Cost-10-15% of first year saleMarketing Cost-10-15% of first year saleVM cost-2000-2500 Rs per sq ftProduct costingFinishing Cost-15-20% of CMTIndirect Cost-9-12% of Direct CostManufacturing Cost-20-40%SCM cost-7%Freight Cost- 7%VAT-20%Depreciation-On Computer-40%On Air Conditioner- 13.91%On Furniture & Fixture-18%On Machinery-13.91%Advertisement- 8-10% of saleSCM & Logistics- 2-5% of saleOther office overhead- 2-5% of COGSOther selling overhead-2-5% of COGSInterest of bank-15% Of DebtTaxes-33.33%
Pessimistic conservative optimistic CONSERVATIVE APPROACH
0
1
2
3
4
5
6
7
8
4.3186
6.9446 7.2001
INITIAL INVESTMENT= FIXED ASSET+ PRE OPERATIVE EXPENSES+ WORKING CAPITAL
FIXED ASSET VM(EBO) 98.75 L Rs (3950 sq ftx2500 Rs)VM(Warehouse) 24.5L Rs (7000sq ft x350 Rs)VM(Head office) 32 L Rs (4000sq ftx800 Rs)Computers (hardwere+softwere) 16.26 L RsMachinery 40 L RsTotal 2.1151 Cr Rs
1.27 Cr Rs(12.5% of 10.17 Cr Rs)
3.5595 Cr Rs (35% of 10.17 Cr Rs)
2.1151+ 3.5595+ 1.27 =6.9446 Cr
PRE OPERATIVE EXPENSES-
WORKING CAPITAL--
INITIAL INVESTMENT-
Income Statement- year 1
Gross profit EBIT EBT EAT
-70000000
-60000000
-50000000
-40000000
-30000000
-20000000
-10000000
0
10000000
20000000
30000000 24224714
-42792414-47048364
-62729583
pessimistic
Office & Administration overhead
Selling & distribution overhead
COGS0
10000000
20000000
30000000
40000000
50000000
60000000
49654485
17362643
9675286
pessimistic cost structure
all fig in Rs
PROJECTED Income STATEMENT
Sales 33900000
Less Cost of Goods Sold : 9675286
Gross Profit 24224714
Less
Office and Administration Overheads 49654485
Selling and Distribution Overheads 17362643
=Operating Profit (EBIT) -42792414
Less Interest on term loan ( 15% on Loan) 3238950
Less Preliminary Expenses ( Written Off) 1017000
(1/5 of Preliminary expenses)
EBT -47048364
Less: Income Tax @33.33% 15681219
EAT (NET PROFIT) -62729583
Gross profit EBIT EBT EAT
-20000000
-10000000
0
10000000
20000000
30000000
40000000
50000000
60000000
70000000
80000000 72561581
-2812211
-10560661 -14080529
Conservative
Office & Administra-tion overhead
Selling & distribution overhead
COGS0
5000000100000001500000020000000250000003000000035000000400000004500000050000000 47002222
28371580 29138410
conservative cost structure
all fig in Rs
PROJECTED Income STATEMENT year 1
Sales 101700000
Less Cost of Goods Sold : 29138419
Gross Profit 72561581
Less
Office and Administration Overheads 47002222
Selling and Distribution Overheads 28371580
=Operating Profit (EBIT) -2812211
Less Interest on term loan ( 15% on Loan) 5208450
Less Preliminary Expenses ( Written Off) 2540000
(1/5 of Preliminary expenses)
EBT -10560661
Less: Income Tax @33.33% 3519868
EAT (NET PROFIT) -14080529
Gross profit EBIT EBT EAT0
20000000
40000000
60000000
80000000
100000000
120000000
140000000121028849
4043716131647086
21099113
optimistic
Office & Administration overhead
Selling & distribution overhead
COGS0
10000000
20000000
30000000
40000000
50000000
60000000
45788265
34803423
48571151
Optimistic cost structure
all fig in Rs
PROJECTED Income STATEMENT Year 1
Sales 169600000
Less Cost of Goods Sold : 48571151
Gross Profit 121028849
Less
Office and Administration Overheads 45788265
Selling and Distribution Overheads 34803423
=Operating Profit (EBIT) 40437161
Less Interest on term loan ( 15% on Loan)
5400075
Less Preliminary Expenses ( Written Off) 3390000
(1/5 of Preliminary expenses)
EBT 31647086
Less: Income Tax @33.33% 10547973
EAT (NET PROFIT) 21099113
Income statement- year2
Gross profit EBIT EBT EAT0
50000000
100000000
150000000
200000000
250000000
198100876
3740250825252758 16836014
Income Statement
Office & Administration overhead
Selling & distribution overhead
COGS0
100000002000000030000000400000005000000060000000700000008000000090000000
10000000089034379
7166398979551124
Cost Structure
PROJECTED Income StatementYear 2(fig. in Rs.)
Sales 277652000
Less Cost of Goods Sold : 79551124
Gross Profit 198100876
Less
Office and Administration Overheads 89034379
Selling and Distribution Overheads 71663989
=Operating Profit (EBIT) 37402508
Less Interest on term loan ( 15% on Loan) 5208450
Less Preliminary Expenses ( Written Off) 6941300
(1/5 of Preliminary expenses)
EBT 25252758
Less: Income Tax @33.33% 8416744
EAT (NET PROFIT) 16836014
sales= 10.17cr
fixed cost= variable cost=PE written off 2540000 cogs 29138419Rentals 31500000 Advertising (8 to 10% of sales) 9153000Electricity 1500000 Logistics ( 2% to 5%) 3559500Salary 7608000 Sales Promotion 10101700Depreciation 4208842 Other SellingOverheads 2185380 Salaries 3372000 Other Office Overheads 2185380
TOTAL 50728842 TOTAL 56323379
ConservativePessimisticSales- 3.39 crTotal fixed cost =49205842Total variable cost = 28503572Contribution margin =3.39cr-2.85crCM ratio = 15.92 %Break even sales = 309081922MOS = 27.51cr(negative
OptimisticSales-16.96 crTotal fixed cost = 51578842Total variable cost = 80973997Contribution margin = 16.96 cr-8.09 crCM ratio = 52.3 %Break even sales = 98621112MOS = 7.1 cr
BREAKEVEN ANALYSIS OF YEAR 1
Contribution margin = sales – variable cost = 10.17 cr – 5.63 cr = 4.54 cr CM ratio = CM / sales * 100 = 4.54 / 10.17 * 100 = 44.64 %Breakeven point = fixed cost / CM ratioBreakeven sales = 50728842/ 44.64 *100 = 113639879MOS = sales at selected activity – sales at BEP = 10.17 cr – 11.36 cr = 1.19 cr (negative)
Year1 Year2 Year3 Year4 Year50
200000000
400000000
600000000
800000000
1000000000
1200000000
Break even graph
Actual sale Break even Sale
year 1 year 2 year 3 year 4 year 5
101700000
277652000
558977528
796095465
1031964743
5 years sales forecastSeries1
Pessimistic Conservative Optimistic
-300000000
-250000000
-200000000
-150000000
-100000000
-50000000
0
50000000
100000000
-275100000
-11900000
71000000
Margin of Safety- YEAR 1
0
5
10
15
20
3.39
10.17
16.96
Sales forecast for year 1figure in Cr Rs
Pessimistic Conservative Optimistic
year1 year2 year3 year4 year5-5.00%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
-2.77%
13.47%
16.87%19.29%
22.29%
OPM ratio
year1 year2 year3 year4 year50.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%71.35% 71.35% 71.35% 71.35% 71.35%
GPM
year1 year2 year3 year4 year5
-20.00%
-15.00%
-10.00%
-5.00%
0.00%
5.00%
10.00%
15.00%
-13.85%
6.06%8.43%
10.39%12.56%
NPM
Ratio
GPM ratio NPM ratio OPM ratio ROA ratio ROE ratio
-60.00%
-40.00%
-20.00%
0.00%
20.00%
40.00%
60.00%
80.00% 71.35%
-13.85%
-2.77%
-13.30%
-40.55%
Conservative Ratio
GPM ratio NPM ratio OPM ratio ROA ratio ROE ratio
-350.00%
-300.00%
-250.00%
-200.00%
-150.00%
-100.00%
-50.00%
0.00%
50.00%
100.00% 71.46%
-185.04%
-126.23%
-202.31%
-290.51%
Pessimistic
GPM ratio NPM ratio OPM ratio ROA ratio ROE ratio0.00%
50.00%
100.00%
150.00%
200.00%
250.00%
71.36%
12.45%23.84%
191.18%
58.61%
Optimistic Ratio
1st year- 3 scenarios
IT ratio COGS/Inventory COGS 42199 3.79Inventory 11120
References