The document recommends that Hi Fashion Co produce t-shirts and briefs. It proposes producing 2 million units of t-shirts and increasing production capacity to achieve a target market share. A product line of t-shirts, vests, and briefs in various sizes and colors is outlined. The recommended distribution channel is selective for t-shirts through advertising and resellers, and intensive for vests and briefs through wholesalers in different regions. Potential channel conflicts are identified between wholesalers and addressed with strict rules and incentives. A redistribution center in Delhi is proposed to supply distributors in Haryana, Punjab, and Rajasthan due to its central location.

1. 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
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 112
Briefs(Gents) 88.1
Briefs(L) 41 4.22 13.66
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
 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

3. PRODUCT LINE
T-shirt Vests Briefs
Macho
Teens Comfi
Naughty
Size-
Sizes –XL,L,M,S
80,85,90,95,100,110
Colour-macho-
W,C,BL,BR
Naughty- P,BL,R,GY,C
Colour-B,G,R,Y,Bl,W Colour-W,G,Y,B
Size- XL,L,M,S
3

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
4

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. 5

6. 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

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. 7

8. 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.
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9. 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
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