2. Problem Statement
Initial hypothesis
Liven Foods
Online
Sales
E-
commerce
Website
Offline
Sales
Pharmacies
Multi-brand
Stores
Exclusive
Brand
Stores
Tablets & Capsules Gummies
Focus was mostly on
Online sales and
minimal offline
presence
Third party offline
stores didn’t reward
gains as expected and
the need to open
exclusive brand
stores is felt
Objectives
1 Product range expansion
2 Improving brand presence
3 Focusing on personal selling
Increased
sales
• Lack of personal selling
• Lack of trust in product
authenticity
• No brand focus or
brand identity
• Increased brand
equity
• More sales through
personal touch
• Cross selling and up-
selling opportunity
To develop a compelling business plan to take the next
steps in business expansion by opening brand
exclusive stores in addition to third party online and
offline sales. The focus would now be on gummies and
aim is to expand into other product segments and
develop a go-to-market strategy for combining these
aspects into a successful pitch for investors
Approach
Industry & Market Research
Gaps identified in current sales model
Steps undertaken to bridge these gaps through
exclusive brand stores
Bringing together online and offline selling to increase
overall revenue
About Liven Foods: A nutritional supplements company started by IIT Bombay alumni
selling through online model (D2C and E-commerce) and 3rd party offline stores
Hypothesis: Exclusive Brand stores are needed to increase the sales of
gummies and complement the existing distribution channels
3. Proteins and
others Examples:
Protein Powders,
Chyanvanprash
Category
FY18-FY20
CAGR
FY20-21
growth rate
Vitamins &
minerals
9% 20%
Proteins 14% 14%
Herbal
supplement
7% 20%
Others 18% 25%
Mass
Market
Niche
Pathology Prevention Human needs Aspiration product
Pharmaceutical
Wide consumption /
nutrition
Target/product
Market
Nutraceutical
Novartis
GlaxoSmithKline
Boehringer
Ingelheim
Pfizer
Bayer
Sanofi
Amway
Herbalife
The Nature’s
Bounty Co.
Unilever
Procter &
Gamble
Liven
Foods
Competitor Analysis – From General to Specialists
Health &
wellness
foods $11b*
(12-14%)**
Dietary
supplements
$5b*
(13-15%)**
Consumer
health &
wellness
$16b*
(14%)**
Examples:
Malt food drinks, Digestive
biscuits Probiotic drinks,
Healthy heart oils Breakfast
cereals
Vitamins and minerals
Examples: Multivitamins;
Mineral Supplements
Herbal supplements
Examples: Powders,
Tonics, Juices
*Market size FY21 | **(CAGR FY18-21)
Nutrition Supplement Market Size - India
1.2 1.4 1.8 2.1
0.9
1.1
1.1
1.3
0.7
0.9
1.1
1.3
0.1
0.2
0.3
0.4
FY18 FY19 FY20 FY21
Vitamins & Minerals Herbal Supplements
Proteins Others
In Nutraceutical, there are different kinds of players, from Generalists to
Specialists. Liven foods can target a mix of Niche and Mass market based on its
product offerings
Source: Euromonitor International
$2.1b*
(13%)**
$1.3b*
(11%)**
$1.7b*
(15%)**
All components of the nutritional supplements market in India has high growth potential
Industry Analysis (1/2)
3
Dietary supplements markets ($ billion) Segment-wise growth (%)
19%
10%
4. Supplement Uses Possible customers
Intake
frequency
Proteins
Increase muscle mass, improve exercise
recovery, improve performance
Athletes
Regular
Recreationally active adults
Military
Essential vitamins
Folic acid - reduce birth defects Pregnant women Regular
(mostly
prescribed)
Vit D, Vit K - strengthen bones Elderly - disabled/chronically ill
Vit B - release & produce energy People with deficiencies
Vit C - aid blood clotting Vegans Occasional
Biotene Treat dry mouth and throat
Regular retail product available as
toothpaste, mouthwash & gums
Regular
Zinc
Treat zinc deficiency, immunity, blood sugar
mgt, fights acne, good for heart
People with zinc deficiency Regular
Omega
Reduce incidence of cardiovascular disease,
stroke, arthritis
People with CVD
Regular
Arthritis
Collagen
Tissue repair, immune response, treats signs
of aging like wrinkles
Beauty supplement
Regular &
occasional
Melatonin Relief from insomnia, improve sleep
Regular travellers
Occasional
Anyone with sleep trouble
Carnitine Weight loss, improve exercise performance Older adults Not clear
Ashwagandha Improved blood sugar, stress, muscle strength All age groups
Regular or
occasional
Attention to health New Lifestyle Aging Population High healthcare costs Nutrition sport
Consumers' awareness of the
importance of wellbeing and
prevention is growing, thanks to the
possibility of consulting online
medicine portals and websites of
international organizations in the
health sector
The adoption of a sedentary lifestyle
is one of the main drivers of the
demand for food supplements. The
supplements are in fact able to
mitigate any problems related to the
sedentary lifestyle and the adoption
of non-optimal eating habits
Over a fifth of consumers globally
belong to the older segment of the
population, increasing the need for
products that supplement the intake
of vitamins, calcium and other
supplements, in order to delay the
effects and disorders related to aging
The increase in the cost of
healthcare is inducing more attention
to prevention through the use of food
supplements, in order to reduce long-
term costs
The growing popularity of fitness,
bodybuilding and specialized sports
(“from health to fit”) in the age group
between 20 and 40 years is increasing
the demand for food supplements
useful for achieving aesthetic goals or
increasing performance
Dbn. Channels Competitor Products/Brands Product Category Product Type
Target
segment
Online - D2C, E-
commerce
&
Offline - Partner
retail stores,
Exclusive brand
stores
Bright
Lifecare
(HealthKart)
MuscleBlaze Whey Protein Powder
Adults
HK Vitals
Multivitamins, collagen,
Omega 3, Ashwagandha
Tablets
Amway
Nutrilite
Ashwagandha, Vitamins Tablets Adults (leaning
more towards
women)
Protein Powder
N* Collagen, Melatonin Gummies
OZiva#
Oziva#
Protein, Vitamins, Biotin Powder Adults
Superfood Zinc, vitamins Gummies Toddlers
Online only -
D2C, E-commerce
The Health
Company
THC
Collagen, Biotin
Powder
satchets
Adults
Fertility enhancers Tablets Young adults
Danone
Protinex Mama Protein
Powder
Pregnant
Women
Aptamil, Dexolac,
Farex
Milk substitutes,
hypoallergenics
Infants
Protinex Protein Adults
Power
Gummies
Power Gummies Biotin, Collagens, Vitamins Gummies Adults
Hexagon
Nutrition
Pediagold Balanced nutrition
Powder
Toddlers
Pentasure
Protein supplement
Adults
Eva Care
Pregnant
Women
Geria Gold Balanced nutrition Elderly
The Indian dietary supplement market is fragmented but an extensive offline brand presence is a key differentiator
Industry Analysis (2/2)
Customer Profiling
Key Growth Drivers
Competitor Benchmarking
Existing supplement range New supplement range under expansion #OZiva does not have exclusive brand stores in the offline distribution channel
5. Primary Research @ HealthKart exclusive brand store, P&M Mall, Jamshedpur (1/2)
Transparent glass wall
• Driving mall traffic towards store by making
complete product portfolio visible from outside
• Attractive stacking to pique customer interest &
ease purchasing decision
Brand Ambassador display
• Topical marketing strategy – choice of
Neeraj Chopra as brand ambassador
• Prominent in-store display with brand
campaigns for customer attraction
Effective brand education
• Large, well-lit brand logo visible from afar
• Consistent branding & colour themes throughout
• Structured stacking basis product objective
(Performance/Wellness)
Store visit
Pre-visit: Online search
Ample store info
• Precise address, timings
• Responsive contact info
40+ photos detailing
every aspect of store
Detailed amenity &
service info. available
6. Store visit (Cont’d.) Key insights
Continuous product & HK
ad display on HD TV
Colourful packaging adds to in-store attraction
New flavours/brands stacked separately
• Drive sales by capturing consumer attention
• Eliminates full portifolio scanning – time saving
Omnichannel marketing
• Promotion of in-app weight management
program – scan QR code for “#PHIR SE ZIDD
KAR” campaign
Parameter Findings
Ownership
model
• This brand store was setup in 2016
• HK owns 180+ exclusive stores nationally
• All employees on HealthKart payroll
• They tried a franchisee model initially, however failed
due to brand dilution, authenticity issues
Employees • 1 store manager, 1 accountant, 1 delivery staff
Key customers
• Regular gym enthusiasts & health-focused individuals
• Very popular among students (Eg: XLRI) & white-collar
employees (Eg: Tata Steel execs.)
• Impulse buying for smaller SKUs from mall-goers common
Operational
model
• Store manager places order for inventory based on
demand via internal application
• 8-9 large warehouses at strategic locations to ship units
& reaches store in 1-2 business days
• For app-based purchases, free local delivery available
via HK-owned vehicles
Promotional
campaigns
• Very focused promotions via pamphlets & campaigns in
2016 (upon setting up)
• Regular camps in campus festivals & fares
Customer
feedback system
• Via scannable QR code at the counter
• Regularly monitored by HQ employees & implemented
Other products
sold
• Recently started selling non-competitors’ premium
products (Eg: Deodorants, facewash from Bombay
Shaving Company, etc.)
• Consistent with strategy in mobile app as well
Primary Research @ HealthKart exclusive brand store, P&M Mall, Jamshedpur (2/2)
7. Consumer survey: Purchasing behaviour towards nutritional supplements
Purchasing decision
Regular buyers
• Weight management
• Medical reasons
• Beauty supplements
• General wellness
• Instant consumption
Impulse buyers
62%
38%
Promotion channels: source of brand education
Expert suggestions
Word of mouth
Offline ads
Social media
Other online ads
25%
12%
19%
17%
27%
Preferred choice of purchase channel
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
Offline Online
Kirana stores
Pharmacies
Exclusive brand stores
MBOs
Hospitals
E-commerce platforms
Brand websites
Hyperlocal
delivery services
0% 20% 40% 60% 80% 100%
Product Authenticity
Review & feedback system
Customer experience
Ease of access
Motivations for channel preference Pain points experienced in channels
0% 20% 40% 60% 80% 100%
Lack of brand education
Lack of monetary incentives
Stockouts
Product Authenticity
Poor customer experience
Rank Factor GTM Target attribute
1 Monetary incentives Product strategy
2 Ease of access Location strategy
3
Sufficient brand & Product
education
Customer experience
4 Ease of in-store shopping
5
Involvement of tech. in
shopping experience
6 Staff professionalism
7 In-house consultation Additional services
8 Efficient feedback system Feedback loop
Motivators for switching purchase to brand stores
Key insights
• Extensive brand presence to create awareness
among trusted sources of info. for consumers
• Heavy focus on online promotions & in-store
experience – drive impulse sales
• Accessible offline presence to service the sizeable
regular buyers segment through repeat purchases
Key insights
• Need to shift online sales from e-
commerce to self-owned channels
• Notable sales via exclusive brand
stores – an indication of consumer
trust & huge penetration scope
• Partner stores driving offline sales –
need to prevent disillusionment in
presence of brand stores
Purchasing decision Promotion channels: source of brand education
There is a clear need for exclusive brand stores with consumers having credible pain-points in current channels
8. Online D2C & E-
commerce
Offline pharmacies &
Multi-Brand Stores
Exclusive Brand Stores
• Lack of personalized
customer education
opportunity to push our
products
• Lack of opportunity to cross
sell other products
• No sales expertise
available for our brand
specifically
• No added sales for other
varieties or types leading to
competitive influence
• No brand focus available
on the E-commerce website
• Difficult to attract leads to
personal website to create
brand awareness
• Not possible to create
brand identity through
third-party stores
• No specific marketing to
develop brand image
• Exclusive physical stores
creates a level of trust
automatically
• Brand positioning
activities like having a
nutritionist in store possible
• Large delivery time in
online ordering
• Possibility of stock-out and
large delivery fees while
ordering through instant
delivery apps
• Limited shelf-space
available for each brand
limiting the variety of
products
• Inconvenience of visiting
the offline stores
• Personal assistance for the
right supplement available
• Loyalty programs, try and
buy option for gummies,
experienced staff will
enhance the customer
experience
• A lot of product
information gets
overwhelming and
confusing
• Difficult decision-making
for new products
• Limited customer
education, personal advice
to ease decision-making
• No customized discounts
or services like try and buy
option available
Parameters/
Channels
• Well-trained sales staff
could provide right
customer education
• Extra Sales from pitching in
additional products
Brand
Building
Logistics
Customer
Experience
Personal
selling
• Large shelf-space leading to
more variety and
possibility of cross-selling
products
Exclusive Brand Stores will help improve sales by complementing gaps in current distribution channels
Gaps identified in current channels
8
Introducing Gummies
1
Authenticity
2
Pricing Flexibility
3
Minimized
Competitive Influence
4
Cross-Selling
5
More value-added
through brand exclusive
stores
9. Go-To-Market Strategy : The Approach
Introducing monetary incentives
to motivate consumers
Regular tracking of the two-tier
loyalty scheme
Product
Affordability
05
1
2
06
Identification of value chain
focus areas for optimization
Phase-wise implementation
strategy for operations
Operational
strategy
A supreme shopping experience at
every touchpoint
Store architecture that promotes
interaction at minimal customer effort
Customer
Experience
04
Digital marketing initiatives
Offline promotional techniques
Customer
Awareness
01
Developing a robust location
strategy
Phase-wise geographical expansion
plan across India by 2030
Store Accessibility
02
1
2
1
2
1
2
1
2
Identification of the optimal
product-store mix
Exploration of alternate products as
revenue sources
Product Strategy
05
1
2
10. Creating customer awareness
Survey finding: Partner stores drive offline sales, but lack of brand
education & awareness is a key pain point for consumers
1 Customer Awareness
1 Customer Awareness
Penetration through mass media
TV shows & web series
• Short, powerful ads at
strategically relevant times
• Product placement in series
Newspapers, Lifestyle Magazines
• Festive promotions, nutrition
focused ads with QR code to
redirect to store locations
Fostering customer trust
B2B partnerships
• With local service
providers like gyms,
hospitals, doctors, salons
• Product education for
end-user
Word-of-mouth marketing
• Referral programs &
feedback stalls in stores
to write reviews and
share their experience
Offline events
Temporary stalls
• For promotion at heavy
footfall events in nearby
locs. (Eg: college fests)
Trade shows & seminars
• Promote interaction of CXOs
with target segment groups
Leveraging partner stores
In-store promotions
• Tie-ups with current partner
stores & retail outlets for
specific in-store promotions
(flyers, etc.)
Alternate sales strategies
• Targeted shelf placement to
enable bundling & cross-selling
Salesforce incentivization
• Rewards for personnel for
customer education & push
sales
An optimal mix of offline & digital promotion techniques to drive brand awareness among target segment
Survey finding: Online promotional tools show high resonance
with the target segment
Improving brand reach: Social media marketing
Customer targeting
Using data analytics for
identifying traits and for
personalized ads
Engagement
Newsletters, quizzes,
customer testimonials
promoted via social media
Improving website traffic via SEO
Focus on Website Ranking
• Optimizing loading &
server response time
• Regular updation of site
content
Personalized campaigns
Using geo-analytics to run
personalized promos based
on user location
Search engine marketing via online ads
Performance tracking
Using engagement metrics
like click-through rate,
conversion rate
Enabling our existing ecosystem to attract new customers towards brand stores and fostering their experience further
Website accessibility
• Keyword optimization
• Focus on backlinks from
credible sources
vitamin protein weight
11. Ensuring brand accessibility: Store locations & Store types (1/2)
• Location: Mumbai (leverage synergy with founders’ background, educational
institutions & data sourced from partner stores)
Need for geographical expansion strategy to cover the last mile
Age: 18-25 (1o)
& 35-50 (2o)
Income:
SEC A, B
Partner stores @ Top 10
metro & Tier-1 cities
Current offline presence Market segmentation Need for expansion
Need for Expansion
• Current presence gives
access to <5% of TG
• Survey finding: Ease of
access as a key motivation
behind choice of purchase
channel
Competitive benchmarking : Exclusive brand stores
Firm First store in Offline presence Target presence
Amway 2015 110 stores in 36 cities (2018) 500 stores (2025)
HealthKart 2014 160 stores in 40 cities (2022) 540 stores (2025)
Location/
Parameters
Near
Hospital
Nearby Fitness
centres
Real Estate
Costs
Competitor
Presence
Target
segment
Population
Weighted
Scores
Powai 3 5 3 3 5 3.7
Andheri 4 1 4 5 4 3.65
Bandra 5 3 1 2 2 2.6
Thane 2 4 5 4 1 3.35
Prabhadevi 1 2 2 1 3 1.7
Weights 0.2 0.2 0.2 0.25 0.15
Powai chosen as pilot location for launching brand store. Similar method to be used for future locations
1. Pilot store (Q1, 2023)
Customer Awareness
2 Accessibility
2. Choosing the right store type & operational model
Comparison of store types (complete product portfolio in both types)
Criteria Mall-based High Street / Standalone
Target segment
Age: 18-25
Income: SEC A
Gym enthusiasts, regular
consumers
Age: All age groups
Income: SEC B
Individuals interested in
general wellness
Traffic expected Hourly variations Medium, stable traffic
Operational expense Expected to be high Expected to be low
Customer experience More brand-immersive More transactional
• An optimal mix of both store types needed to achieve market penetration
• Basis target segment access & expected footfall, the store-location mix to be
mall-based stores in focus for Tier-1 & standalone stores for Tier-2
Comparison of operational models
Criteria Self-operated Franchisee-operated
Brand building
Control on pricing
Investment required
Customer Experience
Risk sharing
• Sufficient brand-building needed to incentivize franchisor partnerships
• Franchising infeasible in short-term. Self-operated model to be in focus
• Possibility of franchising to be explored in the longer term
Optimal location & operational model of retail stores are crucial to drive brand presence at lower costs
12. Ensuring brand accessibility: Store locations & Store types (2/2)
Year Number of stores Number of cities Type of cities
Q1 2023 1 1 (Mumbai) Metro (Pilot store)
By 2023 End 11 8 All Tier-1* cities
2024 15 10 Multiply in major Tier-1 +
entering Tier-2
2025 30 15
2026 50 20 Established in Tier-1 & Tier-
2; entering Tier-3
2027 75 25
2028 110 30
Strengthen presence across
all cities
2029 160 35
2030 220 50
3. Geographical expansion
4. Incentivizing partner stores
• Incorporate learnings from pilot brand store & expand within Mumbai
• Phase 1 objective: Focus on Tier-1 cities, with partner tie-ups in Tier-2 cities
• Phase 2 objective: Strengthen presence via brand stores in Tier-2A cities
• Phase 3 objective: Expand across all Tier-1 & 2 cities & establish brand presence
• Tentative expansion plan basis expected category growth & expected returns:
Phase 1 activities Phase 2 activities Phase 3 activities
2 Accessibility
A year-wise geographical expansion plan for exclusive retail outlets
Nagpur
Jamshedpur
Raipur
Thiruvananthapuram
Surat
Guwahati
Cochin
Amritsar
Bhubhaneshwar
Phase 3 expansion
Srinagar
Delhi
Mumbai
Phase 1 expansion
Pune
Gurugram
Kolkata
Hyderabad
Chennai
Bangalore
Ahmedabad
Phase 2 expansion
Indore
Bhopal
Jaipur
Kanpur
Lucknow
Chandigarh
Vishakhapatnam
Coimbatore
In the wake of expansion of brand stores, we need to ensure that the partners are
not disillusioned by the new channel.
• Strategic choice of partner stores based on location & target segment density
• Product mix shared with partners to have minimal overlap with brand stores
• Preventing physical proximity of brand stores with partners
• Nearest brand stores can act as short-term warehouses for partners to manage
inventory & prevent stockout situations
13. Fulfilling consumer needs: A robust product strategy
0 5 10 15 20 25 30 35 40
Sports Nutrition
Protein Supplement
Daily Nutrition
Herbs & Superfoods
Women Nutrition
Men's Nutrition
Beauty & Wellness
Weight Management
Fashion & Accessories
Offline D2C & Ecommerce D2C Only
Purely online sales
Online + Offline
presence (via
partner stores)
Key insights
• Products are first introduced in D2C channel, subsequently e-
commerce & offline distribution
• Fastest growing categories among new products = Weight
Management, Beauty & Wellness
• Slowest growing category among new products = Herbs & Superfoods
• Very low current presence in offline channel – indicator of huge
scope for offline distribution growth via brand stores
• Currently, < 20% SKU sales occur via partner stores. Since offline
margins < online margins, this corresponds to a much lower share in
total revenues from offline channels
Ensuring the presence of the right products in the right channels would result in massive revenue growth & market penetration
New products
Promotion among channels Product portfolio @ brand stores Complementary products & accessory sales
Weight management products: Introduce for
offline distribution as well
Beauty & wellness products: Introduce in e-
commerce space; test in offline space
All current offline SKUs: Increase supply via
offline distribution channels
Adult Nutrition, Fashion Accessories:
Maintain status quo & monitor sales growth
Herbs & Superfoods: Restrict to D2C &
monitor sales before further action
• Must-haves: Sports Nutrition, Protein supplements, daily
nutrition, weight management SKUs
• Beauty & Wellness SKUs in lesser quantities
• Each product launch to be supplemented with local
promotional activities to raise awareness
• Rigorous monitoring of sales & inventory for dynamic
variations needed in display product portfolio
• Attractive product packaging to pique consumer
interest while surfing shelves
• Regular consumer feedback via in-store mechanisms &
customer surveys to update portfolio
• To be considered as a long-term strategy
• Enable cross-selling through development of
products & accessories that adds value
alongside mainstream supplements
• Examples:
1. Compact gym & sports equipment
2. Menstrual accessories, pregnancy kits
for Women’s Nutrition consumers
• Investment into development & customized
supply of these products basis the demand
for corresponding mainstream product
Liven Foods: Current Product SKU sales across channels
3 Product Strategy
Ensuring the right products at the right channels to satisfy customer requirements
ant points can be added with operations
14. Focus on operational activities for efficient resource utilization 6 Operational Strategy
Survey finding: Stockout situations & delivery times are prominent consumer pain points
Distribution strategy
Warehousing
Current operations
• Online sales - from central warehouse to individual
customers via 3PL players (point-to-point)
• Offline sales – order fulfilment via small regional
warehouses (possibly shared)
Proposed
strategy
Phase 1
(2022-25)
• Rent out atleast 1 warehouse per city, close to market. Focus on cost minimization
• Direct stock management of exclusive brand stores & partner stores in local areas.
• Utilize tie-ups with 3PL players for store in-bound logistics
Phase 2
(2026-27)
• Need to move towards more asset-heavy model with select investment in infrastructure
• Expansion in locations & product portfolio drives the requirement for larger warehouses
• Each warehouse to support requirements at more than one nearby location
Phase 3
(2028-30)
• North, West, Central & South zones (Easter locations to be covered via Central)
• Established hub-and-spoke model with one large fulfillment center/zone, supplying
smaller warehouses in individual cities from where offline stores orders are fulfilled
In-bound logistics
Manufacturing
centers
In-store operations
Customer operations
Inventory
management
Product display Employee training
Current strategy
• Low bargaining power with partner
stores – negotiations on shelf space
• Brand & product education
controlled entirely by partner stores
• Centralized employee training at HQ
& inventory mgt. at central
warehouse
Proposed
strategy
Phase 1
(2022-25)
• Exclusive brand stores – increase in bargaining power
• Install s/w for inventory tracking & comm. in each store
• Online sales data to be used to forecast offline demand
• Superior customer-focused employee hiring & training
Phase 2, 3
(2026-30)
• Real time tracking of units in inventory & demand
forecasting based on customer preference data
• Standalone stores as local emergency supply points
Out-bound logistics Customer
feedback system
Current strategy Proposed strategy
• Partnerships with 3PL players for
order delivery
• Contractual delivery personnel
• Basic online feedback loop
Phase 1 (2022-25)
• Real-time delivery tracking
• Employees for delivery
• Omnichannel feedback loop
Phase 2, 3 (2026-30)
• Delivery route optimization
for cost control
• Feedback-based actions
• Reverse supply chain dev.
for sustainability (Eg:
refills for packaging)
A phase-wise implementation of tech-enabled operational activities to ensure product supply at minimal costs
15. Ensuring a seamless, tech-enabled shopping experience for customer regularly across all key touchpoints
Leveraging the Omni Channel Revolution
Drivers for omni channel strategy
Omni Channel Features
Use apps to track usage, fill
wish lists
Push Notifications
In-store discounts marketed
via apps and websites
Scheduling consultations for
loyalty customers
Integrated consumer experience
In-store payment via app
Uniform Brand Identity
across app, brand stores
Buy Online-Pick Up Instore Model (BOPIS)
Order Liven food
products online
at discounted
prices & offers
Order made
ready for pick
up based on
consumer arrival
date and time
Customer
Liven foods
store Locator
directs customer
to nearest store
for pick up
Customer
selects the pick-
up date and
time as per
convenience
Store associates
prepares the
product prior to
the customer's
arrival to the
offline store
Quick pickup and
cross selling
other products
through exclusive
instore
experience
Store
Back-end
Order created
in OMS system,
routed to store
post inventory
level checks
Post selection of
pick-up date,
store receives
notification –
updates order
status
Order
picking/packing
process initiated
from store end
Discount prices
and offers
updated on app
based on
availability and
sales
KPIs to measure success of BOPIS model
Second purchase trigger Order fulfilment Journey conversion rate AOV in Omnichannel
% of customers accessing
website (or adding items to
cart) post successful
experience
Number of orders fulfilled/
Number of orders received
Consideration for cancelled
orders
% of customers made
purchase via a unique
journey (BOPIS Model)
Total value of sales via
omni-channel/ Number of
orders – To obtain shopping
basket value
Immediate need for the
product by the consumer
Need for an immersive
buying experience
Increase the customer
interaction across channels
4 Customer Experience
16. Enhancing the in-store customer experience
Survey finding: Ease of product browsing & personal selling as a key motivation for consumers to prefer exclusive brand stores
An optimized retail layout to increase productivity of store space,
control customer traffic & retain consumers in store longer
Exposure to merchandise Probability of buying it
Sports Nutrition
4 Customer Experience
CENTRAL ZONE
Protein
Supplements
Daily Nutrition
Weight
management
Beauty &
Wellness
Fashion &
Accessories
Adult
Nutrition
&
Superfoods
Checkout
Fast-
moving
SKUs
Loop/Racetrack retail layout
• Central Zone
• Houses fastest-moving SKUs/units with promotional offers
• Maximum exposure for consumers to SKUs of maximum demand
• Streamlines foot traffic & allows for ample browsing opportunities for customer
• Customer traverses entire length of store before exiting
• Presence of all major SKU’s assortment near checkout
• All products assembled in order and amount of categories of highest demand
Encourages impulse-buying
Entry Exit
Using technology to improve customer in-store experience-
Implementing Beacon technology for personal selling
Consultation stalls
QR Code scanners
Exit
App Experience
Use the Liven Foods app to sync
with all products offerings on
display & get the full benefit of
the features as he walks around
the store, driving purchase
decisions
Scan any product in the store to
avail complete details of each
product on his phone. He can
compare with other products in a
segment, know reviews,
discounts and promotional offers
Interact with consultants
where they can get
personalized input regarding
their nutrition requirements
and suggestions for products
Faster Checkout
Enable faster checkout for
the customer through self
checkout methods like allowing
payment through apps
or through kiosks
• Send personalized offers & discounts to customers within the store
• More precise Location data :Better engagement than push notifications
• More effective in influencing purchases
Implementing Beacon technology for personal selling
17. Creating lifetime relationship value with loyalty programs
Objective – Why loyalty program?
Create deeper relationship with
customers by converting buyers into
brand ambassadors
Increase the profitability and lifetime
value of the customer
Get existing customers to try and
ultimately buy new products
A tier-based system
with incremental benefits
to maximize engagement
360-degree rewards program
which rewards customers for
purchases, referrals, email etc.
Ability to use reward points
for trying out new
products for free
Specific marketing campaigns
based on loyalty
customer segmentation
1 4
3
2
Strategy to achieve loyalty program objectives KPIs to monitor success of program
Customer Retention rate: Increase in
retention rate is indicator of customers
shifting from low value to high value
Net Promoter Score: Increase of NPS
indicates positive feedback and
positive word of mouth
Negative Churn: Increase in negative
churn rate indicates decrease in
number of lost customer
Loyalty Programs
Premium Member Select Member
✓ Extra 3% off
✓ 2% Liven Cash
✓ Extra 3% off on
offline purchase
✓ Exclusive launch
offers
✓ Extra 5% off
✓ 3% Liven Cash
✓ Extra 5% off on
offline purchase
✓ Exclusive launch
offers
Introducing 2-tier loyalty scheme
Purchase Basic Premium Select
Minimum
purchase
₹1,000 ₹1,000 ₹1,000
Extra
Discount %
0 3% 5%
Extra Saving - ₹30 ₹50
Liven Cash* ₹50 ₹70 ₹100
Net Savings ₹50 ₹100 ₹150
Additional savings for brand store purchase
*Liven cash can be used for future purchases at Liven
food and will have validity of 12 months
1 Liven cash = ₹1
Loyalty program benefits
Unlock Extra discounts
& Low prices
Free consultation
with experts
Additional benefits at
offline stores
Additional savings on
launch offers
Earn extra cashback as
Liven cash
Priority access to
special edition products
Priority delivery &
customer service
Additional benefits
on referral
Customized nutrition
& health plans
We suggest to upgrade the loyalty program, to provide additional benefits above the existing benefits of nutritional consultant, priority delivery etc, as well as further incentivizing purchase
through offline brand store
Liven Foods Loyalty Program 2.0
Survey finding: Lack of monetary incentives as a key consumer pain point in offline purchase channels
5 Affordability
18. Financials: Choosing store types based on potential profitability
IRR Computation
Shop Type
Tier – 1 City Tier – 2 City
Mall-based High street Mall-based High street
Rented 15.38% 9.09% 12.15% 7.83%
Owned - 13.29% - 15.23%
Expansion strategy
• Primary focus: mall-based stores (Tier-1) & standalone stores (Tier-2)
• Secondary focus (longer run): standalone stores (Tier -1) & mall-based stores (Tier-2)
INVESTMENT REQUIRED (INR Lakhs)
Type
Tier - 1 Tier - 2
Mall-based High street Mall-based High street
CAPEX (Y1) 39.99 347.79 41.85 298.37
Avg. CAPEX (post Y1) 10.38 9.56 9.8 9.23
Avg. yearly OPEX 83.56 57.26 93.82 59.34
Key headers
• CAPEX (Y1) – PPE, store infrastructure, licensing fees
• Post Y1 CAPEX – Product launch costs, annual maintenance
• OPEX – Rent, employee costs, overheads, marketing, IT, insurance, etc.
PHASE-WISE INVESTMENT PLAN
PHASE - 1 PHASE - 2 PHASE - 3
2023 2024 2025 2026 2027 2028 2029 2030
Total number of stores # 8 15 30 50 75 120 180 250
Store split-up
Tier-1 # 8 12 20 30 40 55 85 120
Mall-based store # 8 12 16 20 24 24 30 30
High Street store # 0 0 4 10 16 31 55 90
Tier-2 # 0 3 10 20 35 65 95 130
Mall-based store # 0 0 2 5 10 25 35 50
High Street store # 0 3 8 15 25 40 60 80
Investment needed
INR Cr. ₹ 9.88 ₹ 23.19 ₹ 55.07 ₹ 55.31 ₹ 69.11 ₹ 124.96 ₹ 178.68 ₹ 223.67
$
$1.24 $2.90 $6.88 $6.91 $8.64 $15.62 $22.34 $27.96
$11.02 mn $15.55 mn $65.91 mn
Store operational strategy
More focus on brand-building. Hence, all stores
will be owned completely by Liven Foods. No
franchising to control customer experience.
Entire CAPEX & OPEX will be incurred by LF.
With brand established, franchising to start with geographical expansion.
• Mall-based stores: entire Y1 CAPEX and half of OPEX to be invested by LF.
• Standalone stores: only Y1 CAPEX will be invested by LF.
These incentives are expected to provide a tighter control on brand
communication & customer experience in franchisee stores
19. Workplan
Particular
Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23
Wk 1 Wk 2 Wk 3 Wk 4 Wk 5 Wk 6 Wk 7 Wk 8 Wk 9 Wk 10 Wk 11 Wk 12 Wk 13 Wk 14 Wk 15 Wk 16 Wk 17 Wk 18 Wk 19 Wk 20 Wk 21 Wk 22 Wk23 Wk 24
Phase 1: Planning
a. Team formation
b. Hypothesis dev. & target ID, revision
c. Target profile identification
d. Data type & source identification
e. Primary Research
Experts & third party identification
Onboarding
Target group interviews
Results analysis
f. Secondary Research
Vignette ID from database
Data collection & analysis
g. In-depth financial analysis
Accurate data collection
Identification of key headers
Business plan development/revision
h. Go-ahead from client team
Phase 2: Implementation
a. Promotional strategy
Establishment of communication theme
Selection of promotional channels
Partner identification (as needed)
Go-ahead from client team
Kickoff offline promotional events
AD network onboarding (online promo)
Go-ahead from client team
Kickoff online promotional events
b. App development
Identification of modifications needed
Onboarding development team
Implementation of steps
c. Operations & inventory management
Warehouse location identification
Rent negotiations/agreement
Contractual agreements w/ 3PL players
Layout planning & kickoff
d. Pilot store
Location identification
Rent negotiations/agreement
Interior designing & tech. installation
Employee onboarding & training
Inauguration
e. Expansion plans
Location identification for Phase 1
Regulatory fulfillments (as needed)
Rent negotiations/agreement
20. 20
Product & Customer
Experience
Accessibility
Awareness Accessibility
Product & Customer
Experience
Affordability Operational Strategy
Financial requirement: Phase 1 (2023–25): 25 stores, $11 Mn inv. | Phase 2 (2026-27): 75 stores, $15 Mn inv. | Phase 3 ( Till 2030): 250 stores, $66 Mn inv.
at an overall expected IRR of ~14% considering exit by 2030
• Improve website visibility
via Search Engine
Optimization techniques
• Enhance brand reach &
penetration via Search
Engine Marketing
• Create authenticity &
enhance digital presence
via social media
marketing
• Leveraging partner stores,
increasing customer
touch-points and mass
media to be the focus for
offline promotion
• Mall-based stores to be
the focus in Tier-1 and
standalone stores for
Tier-2
• Self-operated stores will
be the go-to-method for
now and franchise model
to be explored later
• Using geo-spatial
mapping and location
analytics of online data
to decide the micro level
store locations
• Incentivizing partner
stores as well
• Product portfolio for
every channel of
distribution to be decided
in phases
• Letting the customers
reap our model in full by
creating an omni-channel
model with BOPIS model
• Using a race-track layout
for maximum engagement
of customers
• Implementing beacon
technology in stores for
improved personal selling
better experience
Taking an exhaustive approach to enter the next phase of business growth
Distribution Strategy
• Focus on cost minimization
and tie ups with third party.
• In future phases,
investments will be made
for owned infrastructure.
Instore Operations
• Using online sales to predict
offline sales initially,
demand forecasting from
customer preferences
Customer Operations
• Real time delivery tracking
• Employ reverse supply
chain
Gaps: Current model led to meagre customer experience, lack of brand identity and no possibility of customer education through personal selling
• Lack of monetary
incentives in offline
channel, key pain point for
customers
• Implementing a tier - based
loyalty program to
maximize the engagements
• Providing additional
features like 360o rewards
system
• Running specific marketing
campaign based on loyalty
segmentation
• Additional benefits for in-
store purchases initially.
Liven Foods
A nutritional supplement player that sells through
online channels & 3rd party offline partners
21. Key-Takeaway from the slide
Title
THANK YOU
TEAM DETAILS
Soorajkrishna S
Email – bj21115@astra.xlri.ac.in
Ph No. – +91-9447748749
Khushali Saraf
Email – bj21087@astra.xlri.ac.in
Ph No. – +91-76618 37530
Rahul Choudhary
Email – bj21102@astra.xlri.ac.in
Ph No. – +91-9994130988
01
02
03
22. Focus on highly targeted online promotions aimed at faster brand education
Creating customer awareness: Digital marketing initiatives
Survey finding: Own websites as focus
centers for brand education & purchase
0
200000
400000
600000
800000
1000000
0
10000
20000
30000
40000
50000
60000
70000
80000
healthxp.in nutrabay.com muscleblaze.com pricee.com healthkart.com
Website Traffic relates to keyword optimization
Keywords Traffic
Browsing
experience
Boosting website loading speed &
server response time
Ensuring website is mobile-friendly
Website
accessibility
Keyword optimization via top-
searched & long-tail terms
Customer
trust
Increasing the number of backlinks
from authority websites
Performance
tracking
Focus on engagement metrics like
page visits, dwell time, bounce rate
Improve website visibility via Search
Engine Optimization techniques
Survey finding: Online ads & social media to be leveraged as powerful promotional tools
Enhance brand reach & penetration via
Search Engine Marketing
Create authenticity & enhance digital
presence via social media marketing
Decide locations to run promotional
campaigns by searching through
geography-wise keyword traffic on ad
platforms (Eg: Google Ads)
Competitor benchmarking - analysis of
pay-per-click & bidding strategies
through data analytics & ML techniques
Personalizing promotions for all major
target segments to make maximum
and crucial impressions
Regular tracking of key engagement
metrics like Click through rate, cost
per click, cost per lead and
conversion rate to take appropriate
actions regarding a particular campaign
Develop branding strategy for each
campaign and ensure internal capability
to deploy the strategy effectively
Running campaigns on all social
media platforms linked to the
website blogs to improve digital
presence and organic traffic
Taking a holistic approach
Using data analytics to identify
target segment traits and place
personalized ads
Releasing newsletters, emailers of
latest blogs, holding quizzes on
social media to attract audience.
Targeting networks on online
communities & focusing on shares,
links, comments to create an
authentic brand image
Targeting the right audience
Improving engagement
Customer Awareness
1
Creating customer awareness: Digital marketing initiatives Customer Awareness
Focusing on modern content
consumption
Partnering with sports series over
OTT, creating trust through regular
podcasts releases
23. Creating customer awareness: Offline Promotions
More customer touchpoints: Store-within-a-store
model in modern trade stores
• Areas of retail floor space earmarked exclusively for sales
of one brand & manned by well-trained sales personnel
• Objective: Drive brand awareness (primary) & sales
• Business model: Revenue-sharing with the retail player in
return for exclusivity & a pre-decided chunk of store
space. Permanence of setup basis response received.
• Characteristics: Knowledgeable staff for clarifications,
awareness regarding exclusive stores & incentivization
schemes for purchase (loyalty programs, etc.)
• Offerings: Free, limited samples for try-and-buy, full
product portfolio on display
• Advantages:
– Utilize increased propensity for impulse buys
– Access to large, diverse customer pool at low cost by
driving expansion across the retail chain
Survey finding: Partner stores (pharmacies, MBOs, etc.) drive offline sales, but
lack of brand education & awareness is a key pain point for consumers
1 Customer Awareness
1 Customer Awareness
Penetration through mass media
TV shows & web series
• Short, powerful ads at
strategically relevant time periods
• Product placement in series
Newspapers
• Awareness of promotions in festive
seasons or new launches in nearest
exclusive brand stores
Lifestyle magazines
• Ads with focus on nutritional info.
• QR code within ads to redirect to
nearest brand store locations &
associated promotions
Fostering customer trust at touchpoints
Transformational stories
• Focus on customer testimonials on
benefits of product usage
• Broadcast across platforms
(online, offline) with permission
B2B partnerships
• With local service providers like
gyms, hospitals, doctors, salons
• Product education for end-user
Word-of-mouth marketing
• Referral programs & in-store visual
triggers like photobooths for user-
generated content on social media
Offline events
Temporary stalls at activity centres
• For sales and awareness at heavy
footfall events in nearby locations
(Eg: cultural fests at colleges)
Promotional events
• Health-focused fun promo events
at malls & shopping centers
Trade shows & seminars
• Promote interaction of CXOs with
target segment groups
Leveraging partner stores
In-store promotions
• Tie-ups with current partner stores
& retail outlets for specific in-
store promotions (flyers, etc.)
Alternate sales strategies
• Targeted shelf placement to
enable bundling & cross-selling
Salesforce incentivization
• Rewards for personnel for
customer education & push sales
Traditional marketing activities to complement digital promotions to drive brand awareness
24. 50%
25%
20%
20%
Gross margin
Website
Online pharmacies
Online market places for fitness
Ecommerce
24
With steady growth since inception, Liven Foods needs to realize its potential by increasing channel presence
Liven’s Current Business Overview
• Nutrition supplements business which started with catering to
Sports and Daily nutrition and is now looking to expand more into
other areas like Fashion, herbs & Superfoods and Beauty & Wellness
• Been in the business for 5 years now with growing revenues for
each subsequent year
• Product Types- Originally Capsule & Tablet, now focusing on
Gummies
• Channels of Distribution- Sells through D2C (Website), E-
commerce/online, offline pharmacies and multi-brand outlets
Liven has successfully
captured the online
market space with
maximum revenues
coming in through E-
commerce websites
followed by its own
website (D2C)
2
6
18
40
0
5
10
15
20
25
30
35
40
45
2018 2019 2020 2021
Yearly
Revenue
(Cr)
Constantly increasing
revenue
Revenue
50%
30%
15%
5%
Revenue breakup
E-comm/Online
D2C
Multi-Brand outlets
Offline pharmacies
Highest gross
margin is
through its
own
website,
focus must
now be to
drive up
traffic to the
website
Category
Revenue
Contribution
D2C Online Offline
Sports Nutrition 35%
Protein Supplement 30%
Daily Nutrition 25%
Women Nutrition 3%
Men's Nutrition 3%
Beauty & Wellness 3%
Weight Management 5%
Fashion & Accessories 1%
Herbs & Superfoods 1%
Online Presence
Distribution for different categories
Focus should
now be on
increasing the
offline
presence for
other segments
as well to
increase their
revenue
contribution
25. Category
Revenue
Contribution
D2C Online Offline
Sports Nutrition 35%
Protein Supplement 30%
Daily Nutrition 25%
Women Nutrition 3%
Men's Nutrition 3%
Beauty & Wellness 3%
Weight Management 5%
Fashion & Accessories 1%
Herbs & Superfoods 1%
Exclusive brand stores would fill up the location gaps of offline outlets and contribute to revenue enhancement
Liven’s Current Business Overview (2/2)
Offline Presence
Mumbai
Ahmedabad
Bangalore
New Delhi
Hyderabad
Kolkata
Pune
Chennai
Bhopal
Partner stores
in Tier-1 cities
18-25 years (Primary) &
35-50 years (Secondary)
Section A & B
Metro, Tier-1 & Tier-2
Income Group
Age Group
Geography
Target Segment
Next Steps should be to
increase the offline
presence for other
segments as well to
increase their revenue
contribution
Current offline presence is restricted to Top 10
Tier-1 cities & metros
Targeting gym enthusiasts, serious sportsmen and
people for daily nutrition
Most sales occurring via multi-brand outlets and
partner pharmacies
26. Consumer survey: Purchasing behaviour towards nutritional supplements (1/2)
Purchasing decision
Key insights
• Clear existence of strong regular consumption market
• An accessible offline presence would be preferred by
regular consumers & drive repeat purchases
• Focus on in-store experience to drive impulse sales
Regular buyers
• Weight management
• Medical reasons
• Beauty supplements
• General wellness
• Instant consumption
Impulse buyers
62%
38%
Impact of key promotional channels
Expert suggestions
Word of mouth
Offline ads
Social media
Other online ads
Key insights
• Extensive brand presence needed to create awareness
among trusted sources of info. for consumers & drive
sales via expert suggestions & word-of-mouth promotion
• High focus on online promotions – more effective in
driving impulse sales
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
Offline Online
Kirana stores Pharmacies Exclusive brand stores
Multi-brand outlets Hospitals E-commerce platforms
Brand websites Hyperlocal delivery sites
Preferred choice of purchase channel
Key insights
• Majority offline sales via partners
(kirana stores, pharmacies & MBOs)
• Need to shift online sales from e-
commerce to self-owned channels
• Notable sales via exclusive brand
stores (few in number compared to
partners) – indication of consumer
trust & huge penetration scope
• Effective omnichannel promotion
& sales strategies needed for
combined growth of brand
websites & exclusive brand stores
Motivations for channel preference Pain points experienced in channels
0% 50% 100%
Product Authenticity
Review & feedback system
Customer experience
Ease of access
Offline Online
0% 50% 100%
Lack of brand education
Lack of monetary
incentives
Stockouts
Product Authenticity
Poor customer experience
Offline Online
27. Consumer survey: Purchasing behavior towards nutritional supplements (2/2)
What factors will make consumers switch purchasing channel to exclusive brand stores?
Rank Factor Target attribute in GTM
1 Monetary incentives (discounts, loyalty programs, etc.) Product pricing & affordability
2 Ease of access Location strategy
3 Sufficient brand & Product education
Customer experience
4 Ease of shopping within the store
5 Involvement of technology in shopping
6 Courteous, knowledgeable staff
7 In-house consultation services Additional services offered
8 An efficient customer feedback system Feedback loop
More consumer testimonials on other factors for preferring exclusive brand stores
Key insights
• In line with product pricing being a consumer pain point,
need to offer monetary incentives in exclusive brand
stores to drive acceptability
• Multiple facets of brand promotion & customer
experience are vital to consumer purchasing decisions:
– Dissemination of knowledge for customized
suggestions according to consumer needs
– Product placement on shelves & aisle design
– Immersive omnichannel experience for consumer
– Additional services offered along with sales
(preferably free of additional cost) as consumer
delighters driving purchase
– Proof of product authenticity
• Need to focus on operational parameters:
– Prevention of stockout situations
– Location strategy driving store accessibility
Access the survey link at this
location:
https://c9choupzbou.typeform.co
m/to/Am5CdCGq
Scan Me
“Consistent availability matters to me. A lot of times
local pharmacies run out of supplements which means
turning to online platforms that charge delivery fee
sometimes. A subscription system would help!”
“Any experiential element in the store- like Decathlon
has courts/ Hamley’s lets you play games/ may be if
tasting samples were being given out”
“Branding and peer compulsion - I may buy whey from
an exclusive whey store if i come to know all body
builders in my gym buy from there and its trustable”
“Authenticity proof: The store or products should have
the certificate of authorization/bar code (over
products) of international distributor of the brand.
Same can be checked on website.”
“Genuine customer reviews and success stories do
influence purchasing decisions”
28. Cross-Selling
• With more shelf-space,
trained sales staff and
personal service in our
own brand store,
possibility of selling other
varieties and product
types increases much
more
Pricing Flexibility
• Having our own stores will
provide a pricing flexibility
in accordance with
discount programs,
loyalty programs
• With a brand store,
premium products can be
introduced building an
image of exclusive
products
Authenticity
• A survey conducted by
TOI showed 1 out of 5
products sold online are
fake, which could be
dealt with exclusive
brand stores
• Holding in-store
nutritionists,
certifications will help
develop customer trust
Introducing Gummies
• Easier introduction of
gummies by holding try
and buy options in
exclusive brand stores
• With taste and flavour
becoming important,
showcasing and holding
more varieties in stores
would help increase sales
Minimized
Competitive Influence
• Easy replacement with
a similar competitor
product in E-commerce
& offline third-party
stores could be avoided
in exclusive brand stores
1
2
3
4
5
Exclusive brand stores will unlock many more avenues for us to expand
More value added through Exclusive Brand stores
28
29. Financials: Choosing store types based on potential profitability
Financial analysis - Methodology
Key considerations
Tier-2 city
Tier-1 city
Standalone/
High street
Mall-based
(rented)
Standalone/
High street
Mall-based
(rented)
Rented Owned Rented Owned
Location-based
split
Store type-based
split
Operational
model-based split
Starting point: One store of each type at each
location (Eg: Mall-based store in Tier-1 city)
Computation of key headers basis assumptions:
1. CAPEX – property, infrastructure, product
launch costs, maintenance, etc.
2. OPEX – rent, employee costs, overheads,
marketing costs, etc.
3. Revenue, basis category contributions
IRR computation of each store type to develop
profitable investment strategy
1
2
3
Key assumptions
• Store size: 400 sq. ft. (malls) & 800 sq. ft. (standalone shops)
• Land, construction, infrastructure costs & monthly rent assumed as per
store location (Tier-1/Tier-2)
• Employee costs assumed higher in mall-based stores & Tier-1 cities
• All operational expenses assumed to increase Y-o-Y as per CPI
• 8% market share for Liven Foods by 2030, with 60% Y-o-Y growth
(benchmark: HealthKart)
• Contribution from each product category to total revenue remains
constant from 2023-2030
• Maintenance cost & working capital assumed as 10% of annual revenue
• Terminal growth rate of the firm assumed to be 1.5%
• No debt assumed to be raised to finance the geographical expansion
• Minimum returns expected by shareholders assumed to be 10%
Results
IRR Computation
Shop Type
Tier – 1 City Tier – 2 City
Mall-based High street Mall-based High street
Rented 15.38% 9.09% 12.15% 7.83%
Owned - 13.29% - 15.23%
Expansion strategy
• Primary focus: mall-based stores in Tier-1 cities & high street/standalone self-
owned stores in Tier-2 cities
• Secondary focus (further penetration in longer run): high street self-owned stores in
Tier -1 cities & mall-based stores in Tier-2 cities
30. Financials: Phase-wise investment strategy
INVESTMENT REQUIRED (INR Lakhs)
Type
Tier - 1 Tier - 2
Cost headers
Mall-based
High street
(owned)
Mall-based
High street
(owned)
CAPEX (Y1) 39.99 347.79 41.85 298.37 Land & building, infra. (tech. elements, interior designing, etc.), licensing
Avg. CAPEX (post Y1) 10.38 9.56 9.8 9.23 Product launch costs, maintenance, miscellaneous expenses
Avg. yearly OPEX 83.56 57.26 93.82 59.34 Rent, employee costs, overheads, marketing, IT, insurance
PHASE-WISE INVESTMENT PLAN
PHASE - 1 PHASE - 2 PHASE - 3
2023 2024 2025 2026 2027 2028 2029 2030
Total number of stores # 8 15 30 50 75 120 180 250
Store split-up
Tier-1 # 8 12 20 30 40 55 85 120
Mall-based store # 8 12 16 20 24 24 30 30
High Street store # 0 0 4 10 16 31 55 90
Tier-2 # 0 3 10 20 35 65 95 130
Mall-based store # 0 0 2 5 10 25 35 50
High Street store # 0 3 8 15 25 40 60 80
Investment needed
INR Cr. ₹ 9.88 ₹ 23.19 ₹ 55.07 ₹ 55.31 ₹ 69.11 ₹ 124.96 ₹ 178.68 ₹ 223.67
$
$1.24 $2.90 $6.88 $6.91 $8.64 $15.62 $22.34 $27.96
$11.02 mn $15.55 mn $65.91 mn
Store operational strategy
More focus on brand-building. Hence, all stores
will be owned completely by Liven Foods. No
franchising to control customer experience.
Entire CAPEX & OPEX will be incurred by LF.
With brand established, franchising to start with geographical expansion.
• Mall-based stores: entire Y1 CAPEX and half of OPEX to be invested by LF.
• Standalone stores: only Y1 CAPEX will be invested by LF.
These incentives are expected to provide a tighter control on brand
communication & customer experience in franchisee stores
31. A fool-proof mitigation plan to cover for the potential risks
Challenges & Mitigation plan
31
Cannibalization of sales in current offline distribution channels &
subsequent dis-incentivization of partners to assign shelf space
• Ensuring that location of exclusive brand stores are such that
sales in local partner stores are not affected
• Long term partner contracts with sales-based incentivization
schemes to drive product promotion
• Educating partner stores about expected sales growth via brand
presence brought in by exclusive brand stores
Ensuring brand awareness through visibility & presence of
exclusive brand stores among target segments
• Regular pulse-check with target segment via customer surveys,
feedback & offline engagement
• Omnichannel strategies incentivizing offline sales through
promotions, enhanced in-store customer experience
• Revenue-sharing models with major retail chains to develop a
store-within-a-store model in malls, especially in Tier-1 cities.
This would ensure regular footfall at minimal cost compared to a
self-operated store in a mall.
Industry threats:
1. Competition & pricing
2. Low barriers to entry
3. Nature of the product – long time required to build customer
trust
• Patenting all innovative product developments (gummy flavours,
supplement, etc.) for exclusivity
• Developing product-based private brands to establish brand
presence and building customer trust
• Pan-India expansion (both online & offline) with a focus on
customer satisfaction & product quality
Key Challenges Mitigation Plan
1
2
3
