Hi Fashion Co

Group 11

Pranav Gopal Jha (FT 12238)

Harshavardhan Chinchore (FT 12279)

Rajiv Garg (FT 12245

Siddharth Sureka (FT 12258)

Smruti Rekha Padhy (FT 12261)

2

RECOMMENDED PRODUCT MIX & PRODUCT LINE

Production of T-shirts and briefs is recommended as

1million units of T-shirts and 4.22 million units of briefs

It lies well within the production capacity(12.96) Recommendation:

Production of 2 million units of T-shirt(12.96)

Increase in production capacity in order to achieve target market share.

Product Mix Units (in millions)

Market share intended (in millions)sep-mar (11-12)

Market share intended (in millions)apr-mar(12-13)

Tshirts 20 1(5%) 2.(10%)

vests 112

4.22 13.66Briefs(Gents) 88.1

Briefs(L) 41

Total 261.1 5.222(2%) 15.661(6%)

Production Dozen/month Per year(millions)  only T-shirts & vests 50000 7.2  

only briefs 40000 5.76  

3

PRODUCT LINE

T-shirt

Teens

Sizes –XL,L,M,S

Colour-B,G,R,Y,Bl,W

Vests

Comfi

Size-80,85,90,95,1

00,110

Colour-W,G,Y,B

Briefs

Macho

Naughty

Colour-macho- W,C,BL,BR

Naughty- P,BL,R,GY,C

Size- XL,L,M,S

4

RECOMMENDED CHANNEL OF DISTRIBUTION (Selective- T-shirts)

Company positions t-shirts as premium through advertising.

Unisex factor in focus.Resellers provide enough support to

brand

Hi Fashion Co- T-shirts

Showrooms/Malls presence Consumer

5

RECOMMENDED CHANNEL OF DISTRIBUTION (Intensive Briefs& vests)

Assumption : Company selects wholesalers in each of the region.

(Limited to geographical areas) Exisiting outlets agree to promote Hi fashion products Retailers are bound to specific wholesalers Under company policies wholesaler caters to fixed

retailers, Respects geographical limits.

Hi Fashion

Co- Briefs/Ves

ts

Wholesaler Retailer Consume

r

6

Do you envisage any Channel Conflict ?

YesConflicts : Wholesalers not respecting geographical

limits(Promotion plans sometimes regional)

Wholesalers selling to retailers bound to other wholesaler.

Large wholesalers(getting extra volume discounts ) predating smaller wholesalers by offering lower prices to retailers.

Retailers promoting competition Selling of higher margin products.

7

If so how would you handle it ?

Strict rules for geographic limits,wholesalers penalised for crossing boundaries.

Exhaustive list of retailers specified for respective wholesaler to be maintained.

Secondary sales register to be verified.Incentives to wholesaler for maintaining

even product portfolio.(prevents sales of only higher margin products to retailers consumers in effect).

Confidence in retailer about quality of product,and consumer perception.

8

REDISTRIBUTION SET UPAssumptions

1. Supply can directly be sent to Delhi in Truck Loads (TL)

2. Distributors in other states are buying in Less than Truck load (LTL) quantity.

3. Since Delhi is national capital and is equally distant from the other three states, logistics are convenient, efficient and better.

4. Redistribution center is therefore setup in Delhi.

9

REDISTRIBUTION SET UP

Hi Fashion Co Supplies

Redistribution center in Delhi

Distribution center in

Delhi

Retailer

Retailer

Distribution center in

Haryana

Retailer

Retailer

Distribution center in Punjab

Retailer

Retailer

Distribution center in Rajasthan

Retailer

Retailer