By: Harkamal Singh

Neha Dupate

Sanket Joshi

Darshan Shah

Content 1. What is your business idea?

2. What was the need?

3. How these issues/needs being served now?

4. What are the issues or challenges in the

current scheme of things?

5. So how this market could be served better?

6. What is your value proposition?

7. Who is your target market?

8. What is the market size of your business?

9. What is your marketing plan?

10. Why do you think your business will succeed?

Business Idea

• India’s premier

fashion store housing

the collections of

India’s leading

designers.

• Location: Pune

Need • As there are many foreign luxury brand

coming into India, there was much need

of an India luxury brand who can feel the

need of Indian tradition and festivals and

also behavior of an Indian society.

• As there is only 1 brand and that is

Ensemble which is serving the need of it

and is located only in New Delhi and

Mumbai which makes difficult for the

people of Pune to have that.

• So it is a much needed brand in the city

where people like to spend more to look

good

The Need Being Served Now

Challenges

Supply chain Gather all the designer under one roof Face a competition from Ensemble, if they open up in Pune Many foreign luxury brands coming into Indian Market.

Value Proposition

This is to communicate that our product is desirable and lasts for a long time.

Target Market

• High income group

• Young professionals • Non-sensitive to price

• Entrepreneur

• Celebrities • Models

• Well travelled corporates

• Upper middle families (Wedding, Anniversary)

• Age 25-60 years, 25-34 esp.

Serve better We will provide our customer customized apparels The only designer store in Pune. Local Pune designer to dress according to the culture of this city.

Market Size

• Like a leaf changing its color with seasons, the once upon a time small city Pune, has now become a hotbed of cultural activity and all these fabulous assets make it the perfect destination for a 'fashion city'.

• Per capita income of Pune is the highest i.e 46,350 approx.

• India to overtake China on luxury market growth

• India’s union cabinet is standing by its local sourcing clause when it comes to foreign direct investment, making it difficult for luxury brands to enter the market on their own terms

• The luxury market has grown at 23 per cent since 2006. The luxury products market (apparel, watches, jewellery, spirits, electronics) has grown at 30 per cent, reaching a market size of $2 billion

Retail Strategy

• Target market THEY ARE UPPER MIDDLE CLASS AND RICH PEOPLE AND BETWEEN

THE AGE 25-60

• Retail format o A SPECIALITY STORE WHERE IN YOU GET DESIGNER CLOTHES

• Bases for building sustainable competitive

advantage o A PLACE WHERE IN YOU GET A CUSTOMIZED PRODUCTS

Retail Format

• A specialty store wherein you get a designer

clothing.

• Deep assortment

• Very high pricing

• Store in store

Retailing Channels

• Our retailing channel be store

only.

• There will be website to see

and go through the

merchandise.

• Why only store?

Personal service

Touch and feel the fabric

High customization

Entertainment interaction

Retailing Location Strategy

• City location on high street.

• Store will be located in

Koregaon Park.

• Viman Nagar is just 5 km.

Store Design, layout & VM

• It will be free flow layout

• Locational signage

• Lifestyle images

• Point of sale

• Straight racks

• Rounder and 4 way

• Lightening's

• Music

• Signage

Merchandise Planning

• Consignment basis

• Outright purchase.

• CPFR- relation with designer’s merchandise

manager to ensure that right merchandise is at the

right place at the right time.

Pricing

• Pricing will be very high

• Early bird special

• Odd even pricing

• Price lining

• Lehengas- 5 lakh – 8 lakh

• Saaris- 50,000 – 1 lakh

• Shoes- 50,000 – 1 lakh

• Sherwani- 3 lakh – 4 lakh

Supply chain & Information system

• Pull supply chain.

• EDI- computer to computer exchange

o merchandise sale

o Inventory on hand

o Receipt of merchandise

o Invoice for payment

customer stores Merchandise

manager vendor

Marketing & communication Mix

• Unipole hoardings- PCMC, KP, FC road, Aundh, SB

road, MG road, Viman Nagar, Pune-Mumbai

Expressway, Bandra-Worli highway, CST airport,

Andheri, Bandra, Oberoi Mall, Phoenix Mall.

• Newspaper- Times Of India, Pune Mirror, DNA.

• Banner at ABIL fashion week.

• Advertisement in fashion magazine

Store Management

• 5 sales people – help in building customer base.

• 2 merchandise managers- who will look after the

merchandise.

• 1 cashier

• 1 store manager-

Future of business • It will succeed as it is the only designer retail store in

Pune

• Clothes will be customized as per the customer’s

requirement.

• In our website, an application is there in which you

can see yourself in different apparels.

• Collaboration with local designer of Pune like

Nafisa Poonawala, Mubaraka will allow us to grab

more customers.

Balance Sheet Start-up Funding

Start-up Expenses to Fund 2,72,84,000.00

Start-up Assets to Fund 1,00,00,000.00

Total Funding Required 372,84,000.00

Assets

Inventory 2,40,00,000

Furniture and Fixtures 1,00,00,000

Total Assets 3,40,00,000

Balance sheet

Contd… Liabilities and Capital

Liabilities

Current Borrowing -

Long-term Liabilities 7284000

-

Accounts Payable (Outstanding Bills) -

Other Current Liabilities (interest-free) -

Total Liabilities -

Capital

Planned Investment

Harkamal 50,00,000.00

Sanket 50,00,000.00

Neha 50,00,000.00

Darshan 50,00,000.00

Start up expense Variable Fixed

Real estate

Land Lease

3,50,000

Remodeling and designing (Experience Pillars, Glass Walls, Racks, Shelf's, Furniture's, Fixtures, Equipments like AC, etc)

100,00,000 (- 30%

depreciation)

Main manager salary Merchandise Manager (2 person) Staff (5 person ) Cashier 1 Housekeeping Security guard (2 person) Electricity

15000 20000 10000

10000

35000 50000 10000 12000 6000

16000

Technological Expenses (RFID, magnetic sensors, Automatic Counters, Internet)

5,00,000

Inventory -2,40,00,000

Total 55000 1,07,29,000

• General Expenses for opening

Advertising Cost = 20,00,000/-

Employee Engagement(dress…) = 1,00,000/-

vat, tin, shop act license = 50,000/-

Maintenance Cost = 1,00,000/-

Total = 22,50,000

BEP Calculation:

Fixed Cost=

350000+9750000+35000+50000+10000+12000+6000+16000+

500000+ 2250000

=12979000/-

Unit Price= 1400000

Variable Cost= 1221667

BEP = Fixed Cost/(Unit Price- Variable Cost)

= 12979000/( 1400000-1221667)

= 73 units