Planning & Budgeting for ITC retails


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Planning & Budgeting for ITC retails

  1. 1. Presented to Mr. Soumen Mukerji By Amit Kumar Nishant Jain Samik Gupta Siddharth Dixit1 Praxis Business School 1/16/2013
  2. 2. Feedback2 Praxis Business School 1/16/2013
  3. 3. Enterprise Performance Management Cycle3 Praxis Business School 1/16/2013
  4. 4. Overview  Indian retail apparel industry is $33 bn in 2011 and poised to grow to $100 bn in next 10 years  Apparel exports $23.5 bn  The apparel division of ITC consists of Wills Lifestyle’s Wills Classic work wear, Wills sport relaxed wear, Wills club life evening wear  It has also established John player and Miss player as brands which has 225 stores across the country  The lifestyle retailing division of ITC is fortifying its brands and expanding its retail reach  During 2010-11 the brand reach was expanded to 73 exclusive stores in 40 cities and more than 150 shop-in-shops in leading departmental stores4 Praxis Business School 1/16/2013
  5. 5. Business Model-Retail Supplier Planning Sales/Point of Sales Sales planningVendor management Pricing management Point-of-sales managementCost and deal management Promotion management E-paymentPurchase order management Customer profiling Content managementCollaborative management Assortment management Online retailing Category management Purchase Process CustomerSupply chain visibility Customer loyalty managementWarehouse management Voucher gift managementTransportation management Customer ordering management Track and Analyse Store/Shelf Management Efficiency Management General ledger and accountStore planning management Process improvementInventory management Sales audit and invoice matching Six sigma implementationReplenishment management Radio Frequency Workforce managementFresh item management Identification (RFID) Payroll processing implementationItem publishing Sales analysis and loss Enterprise securityOrder management Praxis Business School prevention 1/16/20135
  6. 6. Strategy Distribution Stepping in Low Cost Cost • Through shop-in- shop the kid’s apparels leadership • Through discount stores garments • Exports6 Praxis Business School 1/16/2013
  7. 7. 4 P’s  Products  Menswear,female wear and kids wear  Usage of 80s ply non giza cotton and carded cotton  Price  We’ll multiply our base wholesale cost by a factor of 2.5, a general industry cost rule  This will represent all unexpected cost escalations and includes profit7 Praxis Business School 1/16/2013
  8. 8. Continued…..  Promotion  Print media advertisement , digital media advertisement, billboards  Brand endorsement through existing campaigns  Promotion in existing stores  Place  5 pilot discount stores to start with, in Tier-II cities  Consideration of easy raw material and finished goods availability  Through shop-in-shops8 Praxis Business School 1/16/2013
  9. 9. Manufacturing to Distribution Process9 Praxis Business School 1/16/2013
  10. 10. Profit share distribution With outsourcing we forgo 13% With discount stores distribution cost saved gets passed on to the end consumers10 Praxis Business School 1/16/2013
  11. 11. Operations Of Pilot Stores and a Amritsar Warehouse Chandigarh Jaipur Delhi Agra11 Praxis Business School 1/16/2013
  12. 12. Product Specialisation Cluster Location Stitching/RMG/Hosiery Delhi, Noida Powerloom Amritsar Woolen Knitwear Ludhiana RMG/ Hand processing Jaipur Handloom Amritsar Avg. household City Population income (Rs.) Chandigarh 960,787 99,262 Amritsar 1,132,761 33,043 Ludhiana 1,613,878 36,868 Delhi 11,007,835 135,820 Noida 293,908 38,860 Jaipur 3,073,350 35,75412 Praxis Business School 1/16/2013
  13. 13. Alignment of programmatic objectives with budgeting Flow of • Top Down information • Bottom Up • Make Vs Buy Measurable • Distributions Metrics • Promotions13 Praxis Business School 1/16/2013
  14. 14. Continued………. Sales • Product lines Information • Regions and specific locations • Customer profiling • Direct cost- Raw material , labor & inventory, supplier expenses • Indirect cost- Selling & distribution, Expense designing, administrative expenses Information • Fixed cost- Establishments, rent, depreciation • Variable cost- Includes many of the direct costs14 Praxis Business School 1/16/2013
  15. 15. Continued………. • Overall economic health Projections • Inflation on • Interest rates economic climate • Consumer confidence • Political stability The final step would be to determine break-even on own discount stores15 Praxis Business School 1/16/2013
  16. 16. Thank You16 Praxis Business School 1/16/2013