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)
RECOMMENDED PRODUCTMIX & PRODUCT LINE Market share intended Market share intended (in millions)sep-mar (in millions)apr-mar(12-Product Mix Units (in millions) (11-12) 13)Tshirts 20 1(5%) 2.(10%)vests 112Briefs(Gents) 88.1Briefs(L) 41 4.22 13.66Total 261.1 5.222(2%) 15.661(6%)Production Dozen/month Per year(millions)only T-shirts & vests 50000 7.2only briefs 40000 5.76 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. 2
RECOMMENDED CHANNEL OFDISTRIBUTION (Selective- T-shirts) Company positions t-shirts as premium through advertising. Unisex factor in focus. Resellers provide enough support to 4
RECOMMENDED CHANNEL OFDISTRIBUTION (IntensiveBriefs& 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. 5
Do you envisage any Channel Conflict ? Yes Conflicts : 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 6
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. 7
REDISTRIBUTION SET UP Assumptions 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. 8
REDISTRIBUTION SET UP Retailer Distribution center in Delhi Retailer Retailer Distribution center in Haryana Retailer Hi Fashion Co Redistribution Supplies center in Delhi Retailer Distribution center in Punjab Retailer Retailer Distribution center in Rajasthan Retailer 9
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