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Report
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.
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.
Variety offered in western wear with Indian touch
under various brands
46%
27%
8%
2%2%
5%
2%
3%
Anokhi
Bangkok
Biba
Desigaul
Fabindia
Global desi
Janpath
Sampada
Sarojni
W
No
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.
50%
40%
30%
20%
10% 2% 3%
0%
http://retail.franchiseindia.com/magazine/2008/november/Ethnicity-personified_22-2-5
18 -24 Yrs
25-31 Yrs
Market potential
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.html
http://en.wikipedia.org/wiki/Demographics_of_India
inventory
personification
western
silhouettes
Indian
prints
vibrant colours
jugalbandi
female
young
traditional yet modern
experimental
confident
lively and vibrant
smart and trendy
outgoing
ambitious
charismatic
trendy dresser
lives life to the fullest
stylish
innovative
Competitor Analysis
2 categories in women wear
WOMEN INDIAN – Long kurtis, short kurtis, supershort
kurtis and churidars( core products)
Target customer- 21 years and above
WOMEN WESTERN- semiformal, skirts, dresses, tunics,
trousers, short kurtis in western styles( core products)
Target customer- 18 years and above
Price range- Rs 560- Rs 1190 ( basic garments)
Rs 1200- Rs 2490 ( fashion basic)
Rs 2500- 4000 (fashion garments)
USP OF FABINDIA
Promoting Indian crafts and weavers in its products
supply chain of fabindia
SUPPLY CHAIN- north region
100 – 200
weavers
17 SRC
MRW1
SRC- SUPPLY REGION CHANNEL ( 17 )
MRW- MARKET REGION WAREHOUSE ( 9 )
vendor
Amritsar, Ranjit Avenue
Bhopal, TT Nagar
Chandigarh, Sector 9C
Dehradun, Rajpur Road
Indore, M.G. Road
Indore, Treasure Island
Mall
Jalandhar, Urban Estate
Karnal, Jarnali Colony
Ludhiana, Mall Road
New Delhi, Connaught
Place
New Delhi, CP2
New Delhi, DIAL
New Delhi, Dwarka
New Delhi, GK1 N14
New Delhi, Green Park
New Delhi, Khan Market
New Delhi, North
Campus
New Delhi, Rajouri
Garden
New Delhi, Select
Citywalk
Panchkula, Sector 9
Patiala, New Leela
End
consumer
brand audit of fabindia
WHAT SPRINGS
TO YOUR MIND
HUGE VARIETY
PRINTS
CLASSY
ETHNIC WEAR
MODERN INDIAN
COLOURFUL
CASUAL
KHADI
INDIAN COLOURS
MIX MATCH
WHAT ELSE
COMES TO
YOUR MIND
COTTON
BLUE COLOUR
KURTA
RELIABLE
MODERN INDIAN
TOUCH
BROWN PAPER
BAG
REASONABLE
PRICES
MIX MATCH
THE NEW RANGE
INDIAN
OTHERS WEARING IT
GOOD CHOICE
SENSIBLE BUYING
KNOWN BRAND
JEALOUS
STYLISH
INTELLIGENT
CULTURED
SIMILAR TASTES
SMART
INDIAN AT HEART
SELF IMAGE
CONFIDENT
SMART
MODERN
CLASSY
SATISFIED
FEEL AT EASE
DIFFERENT
CLOSER TO HOME
GRACEFUL
POSITIVE
MEMORIES
SIMILAR BRANDS
FIRST SALARY GIFT BIBA
GIFTS
HAS NO
GOOD EXPEREINCE COMPETITOR
COLLEGE DAYS
W
SHOPPING WITH
ALL ARE SIMILAR
FRIENDS
ANOKHI
BUYING SIMILAR
FABINDIA HAS
OUTFITS
THE MAXIMUM
REGULAR SHOPPER VARIETY
GOOD ATMOSPHERE FABINDIA IS ONE
SHOPPING FOR
OF A KIND
SPECIAL OCCASSIONS COTTONS
NONE
WELL
ESTABLISHED
BRAND
GOODTHINGS
SWOT ANALYSIS
Strength
Weakness
Wide variety of prints that are not
available with various other
competitors.
Blend of two cultures under one roof.
keeping the culture alive
Keeping the consumer close to her
roots.
In 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.
Opportunity
Threats
Less competitors
Increasing inclination towards
WESTERN look
Untapped market
clothing in vogue
Increasing disposable income with
youngsters
People more fashion conscious,
experimental
To go global
Can be a fad
Competition from unorganized
market that provide such apparels at
cheaper prices
Competition from established and
known brands among the customers
like Anokhi and Fabindia
Duplicity of prints and styles
Competition from boutiques
There is no prior business
experience in this field
MTV
RADIO
MOBILE
MUSIC PLAYER
REST
SIT WITH FAMILY IPOD
INTERNET
CHAT
GET READY FOR MAGAZINS
NEXT DAY
Go to bed
11-1 am
Dinner
REST 9-10 pm
TV
MOBILE
IPOD
INTERNET
EAT
HANG OUTMOVIE HALL
COFFEE
JOINTS
WORK
TEMPLE- TUESDAY, THURSDAY
MC DONALDS SUBWAY
LAYS
COKE
PEPSI
APPLE
93.5 FM
ADS- LIFESTYLE
PRODUCTS
COLORS
MTV
FACEBOOK
GOOGLE
ORKUT
FEMINA
COSMO
VOGUE
DELHI TIMES
NEWS
VH1
NESCAFE
NESTLE
DETTOL
GARNIER
PVR
CCD
MOCHA
MUSIC
MTV
HBO
NDTV GOOD
TIMES
Wake up
6.30-7.00 am
GET READY
PRAY TO GOD
HAVE BREAKFAST
PICK LUNCH
DILO
WEEKDAY
Leave from work RADIO
/college
MOBILE
HOARDING
4.30-7.30pm
CAR
AUTO
OFFICE
BUS
CARPOOL
TAKEAWAY
MUSIC PLAYER
CDs
IPOD
COLGATE HT
DOVE
93.5 FM
LUX
PANTENE NIVEA
GARNIER LOTUS
KELLOGES
BODYSHOP NESTLE
AMUL
KISSAN
NESCAFE
TAJ
TIMES
MAC
LAKME
LOREAL
REVLON
RADIO
NEWSPAPER
MOBILE
APPLE
93.5 FM
SAMSUMG
BLACKBERRY
NOKIA
ADSLIFESTYLE
PRODUCTS
Reach at
9
-9.30 AM
Leave for work
8.00-8.30 am
TRAVELCAR
AUTO
OFFICE
BUS
CARPOOL
CLASS
WORK
LUNCHCANTEEN
FOOD JOINTS
INTERNET
MAGAZINES
BOOKS
MUSIC
MOBILE
RADIO
MOBILE
HOARDING
MUSIC
PLAYER
CDs
IPOD
FACEBOOK
GOOGLE
CCD
BARISTA
SUBWAY
BISLERI
KENLEY
Go to BED
11.30-1.30
TV
RADIO
MOBILE
REST
MUSIC
SIT WITH FAMILY
PLAYER
CHAT
IPOD
WORK
INTERNET
MAGAZINES
NIGHT OUT- 11 ONWARDS
CLUBS DISCOs
BARS LOUNGE
Dinner with family
9-11 pm
MOBILE
AT HOME
IPOD
RELATIVES
RADIO
5 STARS
RESTURANTS
TEMPLE- SATURDAY
GURUDWARAS
COLORS
MTV
FACEBOOK
GOOGLE
ORKUT
FEMINA
COSMO
VOGUE
DELHI TIMES
NEWS
VH1
HAVE BREAKFAST
RELAX
SIT WITH
FAMILY
LUNCH
F-BAR
AGNI
QBA
AQUA
HYATT
SIDDHARTHA
PUNJABI BY NATURE
MAINLAND CHINA
RADISSON
Leave For home
7- 8.30 pm
APPLE
93.5 FM 98.3 FM
ADS- LIFESTYLE
PRODUCTS
Wake up
9- 10.30 am
CAR
AUTO
CARPOOL
DILO
WEEKEND
RADIO
MOBILE
HOARDING
MUSIC PLAYER
CDs
IPOD
COLGATE HT
DOVE
93.5 FM
LUX
PANTENE NIVEA
GARNIER LOTUS
KELLOGES BODYSHOP
NESTLE
AMUL
KISAN
NESCAFE
TAJ
TIMES
MAC
LAKME
LOREAL
REVELON
PARACHUTE
RADIO
NEWSPAPER
MOBILE
MAGAZINE
TV
APPLE
93.5 FM
SAMSUMG
BLACKBERRY
NOKIA
ADSLIFESTYLE
PRODUCTS
leave with friends4-5 PM
Reach at 5
6 PM
FOOD JOINTS
MOVIE
MALLS
CAFÉ s
TRAVELCAR
AUTO
CARPOOL
METRO
INTERNET
MAGAZINES
BOOKS
MUSIC
MOBILE
BANNERS
RADIO
MOBILE
HOARDING
MUSIC
PLAYER
CDs
IPOD
BIG CHILL
MOCHA
BARISTA
PVR
SELECT CITY
AMBIENCE
PROMENADE
EXPERIMENTAL
TRENDY
SMART
EARLY ADOPTORS
CONFIDENT
WANT TO LOOK YOUNG
LOVE TO SHOP- MALLS, HIGH STREET
LOVE COLOURS
LIKE TO DRESS WELL
LIKE TO ACCESSORIZE
EXPERIENCERS- energy, spent heavily
on clothing, music
SPEND TIME WITHCUSTOMER INSIGHTS
EARLY MAJORITY
FAMILY
BELIEVE IN GOD
LIKE CELEBRATING
INDIAN FESTIVALS
FEEL YOUNG
BRAND CONSCIOUS
INDEPENDENT
FOLLOW LATEST TRENDS
HANG OUT WITH FRIENDS
SPENDS WEEKENDS WITH FAMILY AND FRIENDS
WORSHIP AT TEMPLES &
GURUDWARAS
FASTING ON VARIOUS OCCASSIONS READS MAGAZINES- VOGUE, FEMINA
BRAND AWARENESS
NIGHT PARTIES WITH FRIENDS AND
COLLEAGUES
LIKE TO LISTEN TO ALL KINDS OF MUSIC
TARGETING
Demographics
Geographics
DELHI,
MUMBAI, KOLKATA, PUNE,
CHANDIGARH, HYDERABAD,
BANGALORE & MANIPAL etc.
INTERNATIONAL MARKET-UKlondon
AGE- primary target 18-24, secondary target 2531 YEARS
GENDER- FEMALE
INCOME- 1 LAC & ABOVE PER MONTH
OCCUPATION- STUDENTS,
WORKING PROFESSIONALS
TARGETING
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, BUSY
OPINION- OPINIONATED, SPEAK THEIR
MINDS. RESPECT OTHERS OPINION
Behavioral
USAGE- MODERATE TO HEAVY
BUYER READINESS- AWARE,
INFORMED, POSITIVE
BENEFITS SOUGHT- CASUAL WEAR,
MODERN YET INDIAN FEEL TO THE
GARMENTS
BRAND PRISM
Physique
Western silhouettes, logo,
Indian prints , Colours
Personality
Funky, cool, confident,
Independent, experimental
Culture
Relationship
bridging the gap
Reflection
This jugalbandi
is cool
To bridge the gap between
Indian and western culture by
providing a blend of both to
young women in an
innovative style
Jugalbandi, blend
Self Image
Thats the way I am
CREATING
PRODUCT
DIFFRENTIATION
POSITIONING
POD
POP
ONE STOP SHOP
GOOD QUALITY
FABRIC, NICE FIT,
INHOUSE STYLIST
PRINTS
POSITIONING STATEMENT
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.
USP OF Mezcla
VAST VARIETY
OF SUCH
CLOTHING
UNDER ONE
ROOF
COLOURS &
PRINTS
IN-HOUSE
STYLIST
INDIAN
PRINTS ON
WESTERN
SILHOUETTES
Mezcla product mix
Brand Architecture
Basics
Fashion
Basics
Fashion
Merchand
ise
Tops
Tops
Tops
Bottoms
Bottoms
Bottoms
Layering
Layering
Dress
Mezcla basic top-costing
Basic Top (cost per unit)
Direct Cost
Fabric 1
Count
Width
Linear Weight
Total consumption per unit
Fabric 2
(Fabric 2 includes laces, zip ,buttons,
velcro, shoulder pads, linning, etc )
Brand Label
Wash care label
Size label
Packaging
Total
CMT
CMT cost per unit
40 Rs/mt
60s
42"
190 GSM
1.75 mt (including wastage)
10 Rs /Unit
3 Rs
2 Rs
1 Rs
10 Rs
96 Rs
50 Rs (250/8=31.25
31.25x1.6)
Finishing cost
10 Rs (20% of 50 Rs)
Total Direct Cost
96+50+10=156 Rs
Indirect Cost
16 Rs ( 10% of 156 Rs)
Manufacturing Cost
47 Rs ( 30 % of 156 Rs)
cost per unit
156+16+47=219 Rs
SCM & Logistics cost
16 Rs(7% of 219Rs)
Total
235 Rs
Freight Cost
16.50 Rs ( 7% of 235 Rs)
Total cost
251.5 Rs
Vat (20%)
50.5 Rs
LDP
251.5+50.5=302 Rs
Total cost of good including all expenses 302 Rs
and overheads
MRP
830-981 Rs
Mezcla pricing
Price Range of Mezcla
Basics
Top
830-981 Rs
Bottom
932-1161 Rs
Fashion
Basics
Top
1190-2115 Rs
Fashion
Merchandise
Top
2354-2990 Rs
Bottom
Bottom
1240-2217 Rs
2490-2990 Rs
Layering
1440-2790 Rs
Layering
3040-3990 Rs
Dresses
2490-3990 Rs
Strategies adopted by mezcla
Pricing ObjectiveStatus Quo
Client CenteredSelling Strategy
Pricing StrategyCompetitive
Market CoverageIntensive
Distribution
Channel strategyPull Strategy
Place
DOMESTIC SUPPLY CHAIN
Company send PO to
production House
End Customer
•Fabric lot provided by the
order company
•Production will be monitored
by the order company
Khan
mark
et
cp
ambi
ence
Production House
Sent for
embellishment
Semi-Finished
Good
MILK RUN
Carton Loaded by
Production House
Production house agreement
Production house scans the file and
makes a dispatch document of semi
finished Goods
Packing List
Quantity List
Truck Receiver
Commercial Invoice
Naraina Warehouse
Carton Loaded by
Company
GIP.n
oida
CITYW
ALK,
SAKET
Company agreement
Proper quality &
quantity checks take
place before
receiving the goods
Lot Size
Quantity Size
Price list
Goods receive note
Inspiration
Ideation
Gupta Traders street No67
Karol Bagh
Lyallpur Instyle Lyallpur
Fabrics
Rajouri Garden
Minimum lot size 300-500
mt
Lead time 21 days(as per
requirement )
Width 63 inch
Keep in
warehouse
Naraina
Interpreting from trend
forecast agencies
http://www.vogue.in/T
rends?utm_source=Go
ogle&utm_medium=cp
c&utm_campaign=Goo
gleAdwords
http://www.fashiontre
ndsetter.com/content/
color_trends.html
Lead time-2-5 days
Selecting Trends
and create new
ideas
Prototype
Approval
Fabric Sourcing
In-house approval by
other department
1-2 days
Printing & art
work
In-house
Lead time 4-7
days
Sobtis Gallery
Ramesh nagar/
C L Export
East patel nagar/
Kiran Export
Arya samaj Road
Uttam nagar
Lead time 10-15days
Prototype
sampling
In-house
Lead time 7-10
days
Final Products
Consumer
Feedback
Trend
,Ideas &
research
handed
over to
design
team
Designing
In-house
In-house- 21
days
Production and
finishing &
labeling
Semi-Finished
Good
Quality checker will monitor the production
process
In-house lead
time 1- 2 days
Embellishment
, finished good
Consumer
Research
Data retrieved from
famous agencies like
http://www.marketsearch.com/news01.
html
And marketing
Department done
Primary &
Secondary Survey
research
Lead time-2-5days
Packaging
Maximum lead time- 90 days
Packaged
Finished Good
Order dispatch as per
quantity required for
the store
Retailer
End customer
Lead
time 1-2
days
Managing Director
Marketing & Sales
Department
Finance
Department
•Budgeting &
forecasting
the financial
condition
•Cost
management
•Asset
management
•Revenue
generate
Finding
need Gap
Analysis the
market and
consumer
5
IT &
Documentation
Merchandising
1
2
Research and
Design the
product
according to
the need gap
Administration/HR
D
Documented all the
transaction
While sourcing
The raw material
Production System
Packaging System
Supply Chain System
Design
approved
and
dispatch
for proto
type
making
3
Training
Programme
According to
the Product
Inventory
management
Implement marketing
strategy according to the
product and consumer
12
Logistics &
Transportation
Warehouse
10
11
end customer 14
Sourcing the raw material and
make prototype and send for final
approval
7
6
While
While
production
production
quality will
fabric is allot
monitor
by order
company
Production
production product go to finishing &
8 After
embellishment department
Finishing &
Embellishment
Finished
good Ready
in
warehouse
Retailer 13
4
After final
approval
prototype go
for production
R&D
9
global Matrix
Highest
Shopping
Destination
Holiday
Destination
Per Capital
Disposable
Income
Trading
partner
System of
taxation &
Regulation
Inclination
Towards
Indian Culture
141190
50
m USD
1
2
1
$33,697
Canada
give foreign
investors
unparalleled
operational
freedom
Fond of
Indian
culture
2.5
million
217885
6
m USD
3
3
2
$15,630
USA
Less taxes on
business .vat
paid by
customer
Very fond of
Indian culture,
fusion clothing
brandmonsoon
265904
994246
m USD
4
5
3
$ 13,296
China
Goods and
services
Latest
incidents of
attack on
Indians
Indian
Population
GDP
USA
2,800,00
0
UK
Australia
countries
Rental
Tax (GST)
Singapore
417559
182231
m
USD
5
4
4
$ 9,603
Malays
ia
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
UK
 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 population
The Monsoon brand in the UK works on similar concept as Mezcla. There are 400
Monsoon and accessories store in the UK .
Age Structure
Clothing sector breakdown
1.60%
womenswear
20%

26%
53%
16%
17%
0-14 years
menswear
15-64 years
childrenswear
65 years &
abv.
accessories
67%
LONDON
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.
Kensington highstreet
 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.
Communities with significant Indian populations
7.50%
8.80%
0 6.50%
10.00%
22.00%
12.10%
18.30%
18.10%
14.30%
15.00%
Community
Greater London
Harrow
Hounslow
Brent
Ealing
Redbridge
Newham
Hillingdon
Barnet
Croydon
MONSOON
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 PRICES
Dresses- RS 3240- 14400
Coats- RS 5760- 13000
Top- RS1800-3240
Trouser -RS 2880- 7200
skirts - RS2880- 5500
Mezcla promotion
Mezcla prelaunch- may
FACE OF MEZCLA
HOARDING
NEWSPAPER-DELHI TIMES, FRONT PAGE, 4 ADS
Allotted space in the news paper- 20x12=240 sq cm
Prescribed day of publishing the advertisement
Sunday( 4 week)- 3654240 Rs
MAZAGINE- 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 Rs
INTRODUCING MEZCLA BRAND ON FACEBOOK , Mezcla face hunt
Charge = 200000 Rs
BANNER IN MALL -3 - 720000 Rs
Hording on Flyovers in Delhi -3 -1326000Rs
PROMOTIONAL SCARF-20000 scarves
Cost per scarf- Rs 6, total= 120000
RADIO SPONSOR(93.5) – RJ Nitin of Red FM, 800 Rs for 10 sec
Total- 300 sec
Total cost =24000Rs
M COMMERCE-10 lakh sms
4 times repetition in a month
Total cost=80000 Rs
BANNER
All year round
NEWSPAPER, DELHI TIMES, PAGE 3 – 1 AD PER
MONTH
MONDAYS- 8*10 CM
COST PER AD=132400
132400*11=1456400
TOTAL COST= 1456400 Rs
June, July, August
RIBBON CUTTING BY PRIYANKA CHOPRAlaunch- JUNE
cost to get Priyanka Chopra- 25 lakhs+ 5 lakhs
30 lakhs
total cost= 30 lakhs+1 lakhs= 31 lakhs
FEMINA AND VOGUE INSERSIONS- 1 insertion in every
alternate issue
5 INSERSIONS each in both magazine
Total cost= 22.25 lakhs
RADIO SPONSOR(93.5) - RJ Nitin of Red FM, the voice
of Delhi’s morning show
800 Rs for 10 seconds
200*11=2200
2200*80=176000
PROMOTIONAL UMBRELLAS - JUNE
will be given for a month to all those who buy
Total cost= 176000 Rs
from Mezcla.
total cost= Rs 88000
M COMMERCE
Mobile SMS = 1000000x.02=20000 Rs
(www.nimbusitsolution.com)
IN A MONTH= 1 repetition
11*20000=220000
Total cost= 220000
September, October, November
December, January, February
FASION MERCHANDISE BY DESIGNER- august EVENT SPONSOR- December
College fest Sponsor
Autumn fashions by Wendell Rodricks
South Campus – 1 reputed College- JMC
Total Sponsor funds=500000 Rs
Total cost= 15 lakhs
Total cost= 5 lakhs
WADROBE SPONSOR- February
Wardrobe Sponsor for Reality Show on Television- ROADIESRs 400000
Cost 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
Mezcla tongue twister
Mezcla claims miss slips,
miss slips claims Mezcla
EVENT SPONSOR - February
College fest Sponsor
North Campus – 1 reputed College- Hindu
Total Sponsor funds=500000 Rs
Total cost= 5 lakhs
March, April, may
Fashion show BY MEZCLA- March
Pass allows 2 persons
Fashion Show- To launch spring collection
Intended Invite media – Print media- The times of India, Hindustan Times, Femina, Vogue etc
Ad media- NDTV, Times Now ,MTV, NDTV goodtimes
Intended invite Designer-3
Cost of Invitation of designers-10 lakhs
Place – Hyatt Regency Hotel
Cost of Booking-12 Lakhs( including ramp, lights, sound)
Cost of Models – 7 Lakhs( including choreography )
Cost of snacks and drinks – 6 lakhs
Total cost- 30 Lakhs
This invitation will be given to Loyalty card holder-300
Total cost= 35 lakhs
ADVERTISING BUDGET =21853000 Rs
total spent =2,12,69,640
Discount on 1 special day of each month
JUNE
JULY
AUGUST
SEPTEMBER
OCTOBER
NOVEMBER
DECEMBER
JANUARY
FEBRUARY
MARCH
APRIL
MAY
Father’s Day
Parents Day
Independence day
Teacher’s Day
Gandhi Jayanti
Diwali
Christmas
Republic Day
Valentine Day
Women’s Day
Daughter’s Day
Mother’s Day
CRM of Mezcla
 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.
Initial Investment
8
6.9446
7.2001
6
4.3186
4
2
0
Pessimistic conservative optimistic
CONSERVATIVE APPROACH
INITIAL INVESTMENT= FIXED ASSET+ PRE OPERATIVE EXPENSES
+ WORKING CAPITAL
FIXED ASSET
VM(EBO)
VM(Warehouse)
VM(Head office)
Computers (hardwere+softwere)
Machinery
Total
98.75 L Rs (3950 sq ftx2500 Rs)
24.5L Rs (7000sq ft x350 Rs)
32 L Rs
(4000sq ftx800 Rs)
16.26 L Rs
40 L Rs
2.1151 Cr Rs
PRE OPERATIVE EXPENSES-
1.27 Cr Rs(12.5% of 10.17 Cr Rs)
WORKING CAPITAL--
3.5595 Cr Rs (35% of 10.17 Cr Rs)
INITIAL INVESTMENT-
2.1151+ 3.5595+ 1.27 =6.9446 Cr
key assumptions:
First Year sale-10-50% of competitor sale
Working Capital-20-50% of First year sale
Pre-operative Cost-10-15% of first year
sale
Marketing Cost-10-15% of first year sale
VM cost-2000-2500 Rs per sq ft
Product costing
Finishing Cost-15-20% of CMT
Indirect Cost-9-12% of Direct Cost
Manufacturing Cost-20-40%
SCM cost-7%
Freight Cost- 7%
VAT-20%
DepreciationOn Computer-40%
On Air Conditioner- 13.91%
On Furniture & Fixture-18%
On Machinery-13.91%
Advertisement- 8-10% of sale
SCM & Logistics- 2-5% of sale
Other office overhead- 2-5% of COGS
Other selling overhead-2-5% of COGS
Interest of bank-15% Of Debt
Taxes-33.33%
Income Statement- year 1
all fig in Rs
PROJECTED Income STATEMENT
Sales
Less Cost of Goods Sold :
Gross Profit
pessimistic
30000000
33900000
9675286
24224714
24224714
20000000
10000000
0
-10000000
Gross profit
EBIT
EBT
EAT
-20000000
-30000000
Less
-40000000
-42792414
-50000000
Office and Administration Overheads
49654485
Selling and Distribution Overheads
17362643
=Operating Profit (EBIT)
-60000000
3238950
Less Preliminary Expenses ( Written Off)
1017000
pessimistic cost structure
60000000
50000000
(1/5 of Preliminary expenses)
Less: Income Tax @33.33%
EAT (NET PROFIT)
-62729583
-70000000
-42792414
Less Interest on term loan ( 15% on Loan)
EBT
-47048364
49654485
40000000
-47048364
30000000
15681219
20000000
-62729583
17362643
9675286
10000000
0
Office & Administration Selling & distribution
overhead
overhead
COGS
all fig in Rs
PROJECTED Income STATEMENT
year 1
Sales
101700000
Less Cost of Goods Sold :
Gross Profit
29138419
72561581
Conservative
80000000
72561581
70000000
60000000
50000000
Less
40000000
Office and Administration Overheads
47002222
30000000
20000000
10000000
Selling and Distribution Overheads
28371580
0
-10000000
=Operating Profit (EBIT)
-2812211
Gross profit
-20000000
EBIT
EBT
-2812211
-10560661
EAT
-14080529
conservative cost structure
Less Interest on term loan ( 15% on Loan)
5208450
Less Preliminary Expenses ( Written Off)
2540000
(1/5 of Preliminary expenses)
EBT
Less: Income Tax @33.33%
EAT (NET PROFIT)
-10560661
3519868
-14080529
50000000
45000000
40000000
35000000
30000000
25000000
20000000
15000000
10000000
5000000
0
47002222
Office &
Administration
overhead
28371580
29138410
Selling & distribution
overhead
COGS
optimistic
all fig in Rs
PROJECTED Income STATEMENT
140000000
121028849
120000000
Year 1
100000000
Sales
169600000
80000000
60000000
Less Cost of Goods Sold :
40437161
48571151
40000000
121028849
20000000
31647086
21099113
Gross Profit
0
Less
Gross profit
Office and Administration Overheads
45788265
Selling and Distribution Overheads
34803423
EBIT
EBT
EAT
Optimistic cost structure
60000000
=Operating Profit (EBIT)
Less Interest on term loan ( 15% on
Loan)
Less Preliminary Expenses ( Written Off)
40437161
50000000
5400075
40000000
48571151
45788265
34803423
30000000
3390000
(1/5 of Preliminary expenses)
20000000
10000000
EBT
31647086
Less: Income Tax @33.33%
10547973
EAT (NET PROFIT)
21099113
0
Office & Administration Selling & distribution
overhead
overhead
COGS
Income statement- year2
PROJECTED Income Statement
Year 2
(fig. in Rs.)
Income Statement
250000000
Sales
Less Cost of Goods Sold :
Gross Profit
277652000
200000000
79551124
150000000
198100876
Office and Administration Overheads
89034379
Selling and Distribution Overheads
71663989
=Operating Profit (EBIT)
37402508
Less Preliminary Expenses ( Written Off)
5208450
6941300
(1/5 of Preliminary expenses)
EBT
Less: Income Tax @33.33%
EAT (NET PROFIT)
100000000
37402508
50000000
Less
Less Interest on term loan ( 15% on Loan)
198100876
25252758
8416744
16836014
25252758
16836014
0
Gross profit
EBIT
EBT
EAT
Cost Structure
100000000
90000000
80000000
70000000
60000000
50000000
40000000
30000000
20000000
10000000
0
89034379
71663989
Office &
Administration
overhead
Selling & distribution
overhead
79551124
COGS
BREAKEVEN ANALYSIS OF YEAR 1
Conservative
sales=
10.17cr
fixed cost=
PE written off
Salaries
2540000
31500000
1500000
7608000
4208842
3372000
TOTAL
50728842
Rentals
Electricity
Salary
Depreciation
variable cost=
cogs
Other Office Overheads
29138419
9153000
3559500
10101700
2185380
2185380
TOTAL
56323379
Advertising (8 to 10% of sales)
Logistics ( 2% to 5%)
Sales Promotion
Other SellingOverheads
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 ratio
Breakeven sales = 50728842/ 44.64 *100
= 113639879
MOS = sales at selected activity – sales at BEP
= 10.17 cr – 11.36 cr
= 1.19 cr (negative)
Pessimistic
Sales- 3.39 cr
Total fixed cost =49205842
Total variable cost = 28503572
Contribution margin =3.39cr2.85cr
CM ratio = 15.92 %
Break even sales = 309081922
MOS = 27.51cr(negative
Optimistic
Sales-16.96 cr
Total fixed cost = 51578842
Total variable cost = 80973997
Contribution margin = 16.96 cr8.09 cr
CM ratio = 52.3 %
Break even sales = 98621112
MOS = 7.1 cr
Margin of Safety- YEAR 1
100000000
Break even graph
50000000
0
Pessimistic
-50000000
Conservative
Optimistic
-11900000
-1E+08
x 10000000
71000000
120
100
80
60
-1.5E+08
40
-2E+08
20
-2.5E+08
0
-3E+08
Year1
-275100000
Year2
Year3
Actual sale
figure in Cr
Sales forecast for year 1
20
Year4
Break even Sale
5 years sales forecast
Series1
16.96
15
1031964743
796095465
10.17
10
5
Year5
558977528
277652000
3.39
101700000
year 1
0
Pessimistic
Conservative
Optimistic
year 2
year 3
year 4
year 5
Ratio
OPM ratio
GPM
80.00%
71.35%
71.35%
71.35%
25.00%
71.35%
71.35%
70.00%
22.29%
19.29%
20.00%
16.87%
13.47%
15.00%
60.00%
50.00%
10.00%
40.00%
5.00%
30.00%
20.00%
0.00%
10.00%
-5.00%
0.00%
year1
year2
year3
year4
year1
-2.77%
year2
year3
year5
NPM
15.00%
12.56%
8.43%
10.00%
10.39%
6.06%
5.00%
0.00%
year1
-5.00%
-10.00%
-15.00%
-20.00%
-13.85%
year2
year3
year4
year5
year4
year5
1st year- 3 scenarios
Pessimistic
Conservative Ratio
80.00%
100.00%
71.35%
71.46%
50.00%
60.00%
0.00%
40.00%
-50.00%
20.00%
-100.00%
NPM ratio
-150.00%
0.00%
-20.00%
GPM ratio
GPM ratio
NPM ratio
-13.85%
OPM ratio
-2.77%
ROA ratio
-13.30%
ROE ratio
OPM ratio
-40.55%
-60.00%
-200.00%
-185.04%
-202.31%
-300.00%
-290.51%
-350.00%
Optimistic Ratio
250.00%
191.18%
200.00%
150.00%
100.00%
71.36%
58.61%
50.00%
12.45%
23.84%
0.00%
GPM ratio
IT ratio
NPM ratio
COGS/Inventory
OPM ratio
COGS
Inventory
ROE ratio
-126.23%
-250.00%
-40.00%
ROA ratio
ROA ratio
ROE ratio
42199
11120
3.79
References

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