Need Gap

Need Gap

Anokhi

Biba

Fabindia

Janpath

Saro

jniNo

0%

10%

20%

30%

40%

50%

0.0200000000000001

0.0200000000000001

0.0500000000000001

0.0300000000000002

0.46

3%8%

2%2%

27%

Variety offered in western wear with Indian touch under various brands

18 -24 Yrs25-31 Yrs

The customer who wants to wear western wear is looking for variety and a wide range of such apparels.Consumers today demand a traditional yet contemporary look for their ensembles. The products have in turn adopted this theory to give out fresh designs and prints to the closet.Women’s wear has undergone a drastic transformation & now people have become more experimental and want a combination of both ethnic and western wear. Popular brands like fabindia, W, Anokhi have western clothing with indian prints but lack modern prints and variety.

MEZCLA is providing customers a young fashion wear in wide variety by fusing the western silhouettes & Indianising the same with the use of indian & traditional prints.http://retail.franchiseindia.com/magazine/2008/november/Ethnicity-personified_22-2-5

Currently, India is the second largest country in the world after China in terms of a population of 1.15 billion.

Between 2010-2030, India will add 241 Million people in working-age population

Demographic - 50% of its population is below the age of 25 and more than 65% hovers below the age of 35.

The Young and working population of India is the biggest positive factor for India and its growth in coming years

The Indian women apparel market has undergone a transformation over the past few years--- changing fashion trends, rising level of information and media exposure

Entry of large number of foreign brands have given the industry a new dimension.

In 2010, the market size of western wear is more than Rs.42,180 Crore, an increase of 14% from 2007.

With the growing presence of organized retail and rapidly spreading mall culture, the industry is all set to grow further in the future, according to "Women Wear Market Forecast to 2010”

Increasing at a CAGR of over 17%, the women's apparel market is expected to cross Rs. 61,000 Crore by 2010.

Branded women’s apparel market is projected to rise at a rate close to 25% and surpass Rs. 18,000 Cr. by 2010.

Premium segment apparel is forecasted to account for close to 20% of the total women’s apparel market by 2010.

http://www.articleshub.org/article/7000/Women-Wear-Market-Forecast-to-2010.htmlhttp://en.wikipedia.org/wiki/Demographics_of_India

Market potential

http://www.articleshub.org/article/7000/Women-Wear-Market-Forecast-to-2010.html

http://en.wikipedia.org/wiki/Demographics_of_India

inventory

western silhouettes

Indian prints

vibrant colours

jugalbandi

stylish

young

innovative

personification

female

traditional yet modern

experimentalconfident

lively and vibrant

smart and trendy

outgoingambitious

charismatic

trendy dresser

lives life to the fullest

Competitor Analysis

2 categories in women wearWOMEN INDIAN – Long kurtis, short kurtis,

supershort kurtis and churidars( core products)Target customer- 21 years and aboveWOMEN WESTERN- semiformal, skirts, dresses, tunics, trousers, short kurtis in western styles( core products)Target customer- 18 years and abovePrice range- Rs 560- Rs 1190 ( basic garments) Rs 1200- Rs 2490 ( fashion basic) Rs 2500- 4000 (fashion garments)

USP OF FABINDIAPromoting Indian crafts and

weavers in its products

supply chain of fabindia SUPPLY CHAIN- north region

100 – 200weavers 17 SRC

MRW1

Amritsar, Ranjit AvenueBhopal, TT NagarChandigarh, Sector 9CDehradun, Rajpur RoadIndore, M.G. RoadIndore, Treasure Island MallJalandhar, Urban EstateKarnal, Jarnali ColonyLudhiana, Mall RoadNew Delhi, Connaught PlaceNew Delhi, CP2New Delhi, DIALNew Delhi, DwarkaNew Delhi, GK1 N14New Delhi, Green ParkNew Delhi, Khan MarketNew Delhi, North CampusNew Delhi, Rajouri GardenNew Delhi, Select CitywalkPanchkula, Sector 9Patiala, New Leela

SRC- SUPPLY REGION CHANNEL ( 17 )MRW- MARKET REGION WAREHOUSE ( 9 )

End consumer

vendor

brand audit of fabindia

WHAT SPRINGSTO YOUR MIND

WHAT ELSE COMES TO YOUR MIND

OTHERS WEARING IT SELF IMAGE MEMORIES SIMILAR BRANDS

HUGE VARIETYPRINTSCLASSYETHNIC WEARMODERN INDIAN COLOURFULCASUALKHADIINDIAN COLOURSMIX MATCH

COTTONBLUE COLOURKURTARELIABLEMODERN INDIANTOUCHBROWN PAPER BAGREASONABLE PRICESMIX MATCHTHE NEW RANGEINDIAN

GOOD CHOICESENSIBLE BUYINGKNOWN BRANDJEALOUSSTYLISHINTELLIGENTCULTUREDSIMILAR TASTESSMARTINDIAN AT HEART

CONFIDENTSMARTMODERNCLASSYSATISFIEDFEEL AT EASEDIFFERENTCLOSER TO HOMEGRACEFULPOSITIVE

FIRST SALARY GIFTGIFTSGOOD EXPEREINCECOLLEGE DAYSSHOPPING WITH FRIENDSBUYING SIMILAR OUTFITSREGULAR SHOPPERGOOD ATMOSPHERESHOPPING FOR SPECIAL OCCASSIONSNONE

BIBAHAS NOCOMPETITORWALL ARE SIMILARANOKHIFABINDIA HAS THE MAXIMUM VARIETYFABINDIA IS ONE OF A KINDCOTTONSWELL ESTABLISHED BRANDGOODTHINGS

StrengthWide variety of prints that

are not available with various other competitors.

Blend of two cultures under one roof.

keeping the culture aliveKeeping the consumer

close to her roots.

WeaknessIn some parts of India

like Bihar, the acceptance for such clothes is less, so there is a possibility that this concept would

not be accepted by many people in such cities.

There is no prior business experience in

this field

OpportunityLess competitors

Increasing inclination towards WESTERN look

Untapped market clothing in vogue

Increasing disposable income with youngsters

People more fashion conscious, experimental

To go global

ThreatsCan be a fad

Competition from unorganized market that provide such apparels at

cheaper pricesCompetition from

established and known brands among the

customers like Anokhi and Fabindia

Duplicity of prints and styles

Competition from boutiques

SWOT ANALYSIS

RADIONEWS-PAPER

MOBILE

Wake up6.30-7.00 am

DILOWEEKDAY

Leave for work8.00-8.30 am

Go to bed11-1 am

Leave from work/college4.30-7.30pm

Dinner9-10 pm

GET READYPRAY TO GODHAVE BREAKFASTPICK LUNCH

RADIO

MOBILE

HOARDING

MUSIC PLAYER

CDs IPOD

INTERNETMAGAZINESBOOKSMUSICMOBILE

RADIOMOBILEHOARDINGMUSIC PLAYERCDsIPOD

TVMOBILEIPODINTERNET

MTVRADIOMOBILEMUSIC PLAYERIPODINTERNETMAGAZINS

COLGATE HTDOVE 93.5 FMLUX PANTENE NIVEAGARNIER LOTUSKELLOGES BODYSHOP NESTLE AMULKISSAN NESCAFETAJ TIMESMAC LAKMELOREAL REVLON

APPLE93.5 FMSAMSUMGBLACKBERRYNOKIAADS- LIFESTYLEPRODUCTS

FACEBOOKGOOGLECCDBARISTASUBWAYBISLERIKENLEY

NESCAFENESTLEDETTOLGARNIERPVRCCD MOCHAMUSICMTVHBONDTV GOOD TIMES

COLORSMTVFACEBOOKGOOGLEORKUTFEMINACOSMOVOGUEDELHI TIMESNEWSVH1

TRAVEL-CARAUTOOFFICEBUSCARPOOL

CLASSWORKLUNCH-CANTEENFOOD JOINTS

Reach at 9-9.30 AM

CARAUTOOFFICEBUSCARPOOLTAKEAWAY

RESTEATHANG OUT-MOVIE HALLCOFFEE JOINTSWORKTEMPLE- TUESDAY, THURSDAY

RESTSIT WITH FAMILYCHATGET READY FORNEXT DAY

MC DONALDS SUBWAYLAYS COKEPEPSI APPLE93.5 FM ADS- LIFESTYLEPRODUCTS

RADIONEWS-PAPER

MOBILEMAGAZINE

TV

Wake up9- 10.30 am

DILOWEEKEND

leave with friends- 4-5 PM

Go to BED11.30-1.30

Leave For home 7- 8.30 pm

Dinner with family9-11 pm

HAVE BREAKFASTRELAXSIT WITHFAMILYLUNCH

RADIO

MOBILE

HOARDING

MUSIC PLAYER

CDs IPOD

INTERNETMAGAZINESBOOKSMUSICMOBILEBANNERS

RADIOMOBILEHOARDINGMUSIC PLAYERCDsIPOD

MOBILEIPODRADIO

TVRADIOMOBILEMUSIC PLAYERIPODINTERNETMAGAZINES

COLGATE HTDOVE 93.5 FMLUX PANTENE NIVEAGARNIER LOTUSKELLOGES BODYSHOP NESTLE AMULKISAN NESCAFETAJ TIMESMAC LAKMELOREAL REVELONPARACHUTE

APPLE93.5 FMSAMSUMGBLACKBERRYNOKIAADS- LIFESTYLEPRODUCTS

BIG CHILLMOCHABARISTAPVRSELECT CITYAMBIENCEPROMENADE

HYATTSIDDHARTHAPUNJABI BY NATUREMAINLAND CHINARADISSON

COLORSMTVFACEBOOKGOOGLEORKUTFEMINACOSMOVOGUEDELHI TIMESNEWSVH1

TRAVEL-CARAUTOCARPOOLMETRO

FOOD JOINTSMOVIEMALLSCAFÉ s

Reach at 56 PM

CARAUTOCARPOOL

AT HOMERELATIVES5 STARSRESTURANTSTEMPLE- SATURDAYGURUDWARAS

RESTSIT WITH FAMILYCHATWORK

APPLE93.5 FM 98.3 FM ADS- LIFESTYLEPRODUCTS

NIGHT OUT- 11 ONWARDSCLUBS DISCOsBARS LOUNGE

F-BARAGNIQBAAQUA

CUSTOMER INSIGHTS

EXPERIMENTAL

TRENDY EARLY ADOPTORS LOVE TO SHOP- MALLS, HIGH STREET

LIKE TO ACCESSORIZE SPEND TIME WITH FAMILYBELIEVE IN GOD LIKE CELEBRATING INDIAN FESTIVALS

HANG OUT WITH FRIENDS

WORSHIP AT TEMPLES & GURUDWARAS FASTING ON VARIOUS OCCASSIONS

BRAND AWARENESS LIKE TO LISTEN TO ALL KINDS OF MUSIC

SMART CONFIDENT

WANT TO LOOK YOUNG

LOVE COLOURS LIKE TO DRESS WELL

EXPERIENCERS- energy, spent heavily on clothing, music EARLY MAJORITY FEEL YOUNG BRAND CONSCIOUS

INDEPENDENT FOLLOW LATEST TRENDS

SPENDS WEEKENDS WITH FAMILY AND FRIENDS

READS MAGAZINES- VOGUE, FEMINA

NIGHT PARTIES WITH FRIENDS AND COLLEAGUES

TARGETING

Geographics DELHI,

MUMBAI, KOLKATA, PUNE, CHANDIGARH, HYDERABAD, BANGALORE & MANIPAL etc.

INTERNATIONAL MARKET-UK- london

DemographicsAGE- primary target 18-24,

secondary target 25-31 YEARSGENDER- FEMALE

INCOME- 1 LAC & ABOVE PER MONTH

OCCUPATION- STUDENTS, WORKING PROFESSIONALS

Psychographics ATTITUDE- EARLY ADOPTERS,

EXPERIMENTAL, TRENDY, POSITIVE OUTLOOK, EARLY MAJORITY, EXPERIENCERS

INTEREST- FOND OF READING FASHION MAGAZINES,

LISTENING TO MUSIC , LIKE TO ACCESSORIZE , SHOP

LIFESTYLE- SOCIAL, BUSYOPINION- OPINIONATED,

SPEAK THEIR MINDS. RESPECT OTHERS OPINION

Behavioral USAGE- MODERATE TO

HEAVYBUYER READINESS- AWARE,

INFORMED, POSITIVEBENEFITS SOUGHT- CASUAL WEAR, MODERN YET INDIAN

FEEL TO THE GARMENTS

TARGETING

BRAND PRISM

Personality

Funky, cool, confident,

Independent, experimental

Culture

Jugalbandi, blend

Self Image

Thats the way I am

Physique

Western silhouettes, logo, Indian prints , Colours

Reflection

This jugalbandi is cool

Relationship

bridging the gap

To bridge the gap between Indian and western culture by providing a blend of both to young women in an innovative style

POSITIONING

CREATING PRODUCT

DIFFRENTIATION

PODONE STOP

SHOPINHOUSE STYLISTPRINTS

POPGOOD QUALITY FABRIC, NICE

FIT,

To young and vibrant fashionistas who are attached to their culture, mezcla is an apparel brand that gives them a one stop shop for the most stylish and trendy blend of both the western and Indian cultures to achieve their aspired look.

POSITIONING STATEMENT

COLOURS & PRINTS

VAST VARIETY OF SUCH CLOTHING

UNDER ONE ROOF

INDIAN PRINTS ON WESTERN SILHOUETTES

IN-HOUSE STYLIST

USP OF Mezcla

Mezcla product mix

Basics Fashion Basics

Fashion Merchandise

Tops Tops Tops

Bottoms

Bottoms

Bottoms

Layering

Layering

Dress

Brand Architecture

Basic Top (cost per unit)Direct CostFabric 1 40 Rs/mtCount 60sWidth 42"Linear Weight 190 GSMTotal consumption per unit 1.75 mt (including wastage)Fabric 2(Fabric 2 includes laces, zip ,buttons, velcro, shoulder pads, linning, etc )

10 Rs /Unit

Brand Label 3 RsWash care label 2 RsSize label 1 RsPackaging 10 RsTotal 96 RsCMTCMT cost per unit 50 Rs (250/8=31.25

31.25x1.6)Finishing cost 10 Rs (20% of 50 Rs)Total Direct Cost 96+50+10=156 RsIndirect Cost 16 Rs ( 10% of 156 Rs)Manufacturing Cost 47 Rs ( 30 % of 156 Rs)cost per unit 156+16+47=219 RsSCM & Logistics cost 16 Rs(7% of 219Rs)Total 235 RsFreight Cost 16.50 Rs ( 7% of 235 Rs)Total cost 251.5 RsVat (20%) 50.5 RsLDP 251.5+50.5=302 RsTotal cost of good including all expenses and overheads

302 Rs

MRP 830-981 Rs

Retail Margin 63.6%-69.2%

Mezcla basic top-costing

Mezcla pricing

Basics

Top

Bottom

Fashion Basics

Top

Bottom

Layering

Fashion Merchandise

Top

Bottom

Layering

Dresses

830-981 Rs

932-1161 Rs

1440-2790 Rs

1240-2217 Rs

1190-2115 Rs 2354-2990 Rs

2490-2990 Rs

3040-3990 Rs

2490-3990 Rs

Price Range of Mezcla

Client Centered- Selling Strategy

Market Coverage-Intensive

Distribution

Channel strategy- Pull Strategy

Pricing Objective-Status Quo

Pricing Strategy-Competitive

Strategies adopted by mezcla

Place

Company send PO to production House

Production House

Carton Loaded by Production House

Naraina Warehouse Carton Loaded by Company

End Customer

Production house agreementCompany agreement

Production house scans the file and makes a dispatch document of semi finished Goods

Packing List

Quantity List

Truck Receiver

Commercial Invoice

Proper quality & quantity checks take place before receiving the goods

Lot Size

Quantity Size

Price list

Goods receive note

•Fabric lot provided by the order company•Production will be monitored by the order company

Sent for embellishment

Semi-Finished Good

DOMESTIC SUPPLY CHAIN

CITYWALK,

SAKET

cp

Khan mark

et

GIP.noida

ambience

MILK RUN

Inspiration

Ideation

Consumer Research

Consumer Feedback

Selecting Trends and create new

ideas

Interpreting from trend forecast agencies http://www.vogue.in/Trends?utm_source=Google&utm_medium=cpc&utm_campaign=GoogleAdwordshttp://www.fashiontrendsetter.com/content/color_trends.htmlLead time-2-5 days

Data retrieved from famous agencies likehttp://www.market-search.com/news01.htmlAnd marketing Department done Primary & Secondary Survey researchLead time-2-5days

Designing

Trend ,Ideas & research handed over to design team

In-house- 21 days

Prototype sampling

In-house

Prototype Approval

In-house approval by other department1-2 days

Fabric Sourcing

Gupta Traders street No-67Karol BaghLyallpur Instyle Lyallpur FabricsRajouri GardenMinimum lot size 300-500 mtLead time 21 days(as per requirement )Width 63 inch

Keep in warehouse

Naraina

Printing & art work

In-houseLead time 4-7 days

Production and finishing &

labeling

Sobtis GalleryRamesh nagar/ C L ExportEast patel nagar/Kiran ExportArya samaj RoadUttam nagar Lead time 10-15days

Packaging

In-house lead time 1- 2 days

Semi-Finished Good

Packaged Finished Good

Retailer

End customer

Order dispatch as per quantity required for the store

Quality checker will monitor the production process

Embellishment, finished good

Final Products

In-houseLead time 7-10 days

Lead time 1-2 days

Maximum lead time- 90 days

http://www.vogue.in/Trends?utm_source=Google&utm_medium=cpc&utm_campaign=GoogleAdwords





http://www.fashiontrendsetter.com/content/color_trends.html



http://www.market-search.com/news01.html



Managing Director

Marketing & Sales Department

Merchandising R & D IT & Documentation

Administration/HRD

Logistics & Transportation

Finishing & Embellishment

Finding need GapAnalysis the market and consumer

Research and Design the product according to the need gap

Design approved and dispatch for proto type making

Sourcing the raw material and make prototype and send for final approval

After final approval prototype go for production

Production

After production product go to finishing & embellishment department

While production quality will monitor

Finished good Ready in warehouse

Retailer

end customer

1

4

32

56

8

109

Documented all the transactionWhile sourcingThe raw materialProduction SystemPackaging SystemSupply Chain System

Warehouse

13

Implement marketing strategy according to the product and consumer

11

14

Training ProgrammeAccording to the ProductInventory management

12

Finance Department

• Budgeting & forecasting the

financial condition

• Cost management• Asset management

• Revenue generate

While production fabric is allot by order company

7

countries Indian Population

GDP RentalHighest

Shopping Destination

Holiday Destination

Per Capital Disposable Income

Trading partner

System of taxation & Regulation

Inclination Towards Indian Culture

USA 2,800,000

14119050 m USD

1 2 1 $33,697 Canada give foreign investors unparalleled operational freedom

Fond of Indian culture

UK 2.5 million

2178856 m USD

3 3 2 $15,630 USA Less taxes on business .vat paid by customer

Very fond of Indian culture, fusion clothing brand-monsoon

Australia 265904 994246 m USD 4 5 3 $ 13,296 China Goods and

services Tax (GST)

Latest incidents of attack on Indians

Singapore 417559 182231 m USD

5 4 4 $ 9,603 Malaysia

Easiest place to do business

Not much inclination towards Indian culture

Dubai 1126422 223874 m USD

2 1 5 $14400 India No tax jurisdiction after FZE- free zone establishment

More Muslim culture, less acceptance of modern clothing

global Matrix

Female population under the age of 15-64 years is 20,246,519 Highest demand in clothing sector is for women’s wear(53%) No franchise law. Code of ethical conduct is adopted while doing any franchise business Indians in UK constitute about 6% of the GDP and 4% of populationThe Monsoon brand in the UK works on similar concept as Mezcla. There are 400 Monsoon and accessories store in the UK .

53%

26%

20%

2%

Chart Title

womenswear

menswear

childrenswear

accessories

Clothing sector breakdown

17%

67%

16%

Chart Title

0-14 years

15-64 years

65 years & abv.

Age Structure

UK

British Indians are London's largest ethnic minority group (7%) More than 160 Indian MNCs The Indian migrants are very nostalgic about their parent country. Keen to maintain an active cultural and spiritual link to India. There are over 10,000 Indian owned businesses in London. The Indian community in London is very active culturally. It organizes cultural and religious festivals to maintain its ties with India.London offers an enormous variety of Indian shops selling specialist food, herbs and spices, clothes, accessories and services.Now home to 1,73,000 overseas nationals from India, London accounts for over a third of the United kingdom total.

LONDON

Kensington high street is the 2nd best shopping street in London, serving a wealthy area. There is an institute of Indian culture, Bhartiya Vidya Bhavan , for Indians living there Presence of famous Indian restaurants called Zaika, Ustav, Rasoi Kitchen Total of 350 brands in approximately 18000 customer visiting the shops per weeks. High density residential areas (Brent, Ealing and Hounslow) with 10,000 Indian people are next to this high street.

6.50%

22.00%

18.30%

18.10%15.00%

14.30%

12.10%

10.00%

8.80%7.50%

Chart TitleCommunityGreater LondonHarrowHounslowBrentEalingRedbridgeNewhamHillingdonBarnetCroydon

Communities with significant Indian populations

Kensington highstreet

In May 1973, the first Monsoon shop opened in Beauchamp Place, Knightsbridge, London.

Monsoon Accesorize’s prestigious Head Office is located in Notting Hill Village, West London. Monsoon has expanded rapidly from its London base. Today there are over 400 Monsoon and Accessorize stores in the United Kingdom and over 600 throughout the world.

In-house designed collection of unique classic pieces, that range from sophisticated evening to casual day wear, and combine feminine styling with exotic colour, beautiful fabrics and detailed finishing.

MONSOON PRICESDresses- RS 3240- 14400Coats- RS 5760- 13000Top- RS1800-3240Trouser -RS 2880- 7200skirts - RS2880- 5500

MONSOON

Mezcla promotion

HOARDING

BANNER

Mezcla prelaunch- may FACE OF MEZCLA

NEWSPAPER-DELHI TIMES, FRONT PAGE, 4 ADSAllotted space in the news paper- 20x12=240 sq cmPrescribed day of publishing the advertisementSunday( 4 week)- 3654240 RsMAZAGINE- FEMINA & VOGUE, 2 ADS, FULL PAGE( THICK PAPER, WITH HALF LAP)FEMINA AND VOGUE magazine Page –monthly edition -875000 Rs

WEBSITE ON GOOGLE SEARCH ENGINE as Top priority website Total cost –605000 RsINTRODUCING MEZCLA BRAND ON FACEBOOK , Mezcla face hunt Charge = 200000 Rs

BANNER IN MALL -3 - 720000 RsHording on Flyovers in Delhi -3 -1326000Rs

PROMOTIONAL SCARF-20000 scarvesCost per scarf- Rs 6, total= 120000RADIO SPONSOR(93.5) – RJ Nitin of Red FM, 800 Rs for 10 secTotal- 300 secTotal cost =24000RsM COMMERCE-10 lakh sms4 times repetition in a monthTotal cost=80000 Rs

NEWSPAPER, DELHI TIMES, PAGE 3 – 1 AD PER MONTHMONDAYS- 8*10 CMCOST PER AD=132400132400*11=1456400TOTAL COST= 1456400 Rs

FEMINA AND VOGUE INSERSIONS- 1 insertion in every alternate issue5 INSERSIONS each in both magazineTotal cost= 22.25 lakhs

RADIO SPONSOR(93.5) - RJ Nitin of Red FM, the voice of Delhi’s morning show800 Rs for 10 seconds 200*11=2200 2200*80=176000Total cost= 176000 Rs

M COMMERCE Mobile SMS = 1000000x.02=20000 Rs (www.nimbusitsolution.com) IN A MONTH= 1 repetition11*20000=220000 Total cost= 220000

RIBBON CUTTING BY PRIYANKA CHOPRA- launch- JUNEcost to get Priyanka Chopra- 25 lakhs+ 5 lakhs 30 lakhstotal cost= 30 lakhs+1 lakhs= 31 lakhs

All year round June, July, August

PROMOTIONAL UMBRELLAS - JUNEwill be given for a month to all those who buy from Mezcla.total cost= Rs 88000

http://www.nimbusitsolution.com/

September, October, November FASION MERCHANDISE BY DESIGNER- augustAutumn fashions by Wendell Rodricks Total cost= 15 lakhs

December, January, February

EVENT SPONSOR- December College fest SponsorSouth Campus – 1 reputed College- JMCTotal Sponsor funds=500000 Rs Total cost= 5 lakhs

WADROBE SPONSOR- FebruaryWardrobe Sponsor for Reality Show on Television- ROADIES- Rs 400000Cost of Sponsor per Reality Shows = for one show ( Excluding Apparel and Accessories’ )This 3-4 L cost for showing our name as a wardrobe sponsor in every 8 Min and every time after the break and announced in every 8 min by the anchor of the show.Total cost= 4 lakhs

EVENT SPONSOR - FebruaryCollege fest SponsorNorth Campus – 1 reputed College- HinduTotal Sponsor funds=500000 Rs Total cost= 5 lakhs

Mezcla tongue twisterMezcla claims miss slips,miss slips claims Mezcla

March, April, may

Fashion show BY MEZCLA- MarchPass allows 2 personsFashion Show- To launch spring collectionIntended Invite media – Print media- The times of India, Hindustan Times, Femina, Vogue etcAd media- NDTV, Times Now ,MTV, NDTV goodtimesIntended invite Designer-3Cost of Invitation of designers-10 lakhsPlace – Hyatt Regency HotelCost of Booking-12 Lakhs( including ramp, lights, sound)Cost of Models – 7 Lakhs( including choreography )Cost of snacks and drinks – 6 lakhsTotal cost- 30 LakhsThis invitation will be given to Loyalty card holder-300Total cost= 35 lakhs ADVERTISING BUDGET =21853000 Rs total spent =2,12,69,640

Discount on 1 special day of each month

JUNE Father’s Day JULY Parents DayAUGUST Independence daySEPTEMBER Teacher’s Day OCTOBER Gandhi JayantiNOVEMBER DiwaliDECEMBER ChristmasJANUARY Republic DayFEBRUARY Valentine DayMARCH Women’s DayAPRIL Daughter’s DayMAY Mother’s Day

In house Designer

Gives an opportunity to customer s to make new combination and reward the best combination.

Loyalty cards to the customer s who will shop for more than 6500 Rs in one bill.(10% discount)

Maintain a feedback register and reward the person with the best feedback every month. This will be done to generate more genuine feedbacks.

Exclusive sales of Mezcla for loyal customers.

A flexible exchange policy

Flowers/chocolates /cakes sent on Birthdays.

Follow up calls for unavailable garments.

lucky draws will be organized and passes for fusion concert , festivals & events will be given to the winner .

This is a kiss and win mirror , which will be placed outside Mezcla. girls who are visiting or shopping at Mezcla are to kiss the mirror and write a word about their experience at Mezcla.1 weekly winner will be decided by Mezcla,who gives the best word and a thank you cake will be sent to the winner’s place.

CRM of Mezcla

Initial Investmentkey assumptions:First Year sale-10-50% of competitor saleWorking Capital-20-50% of First year salePre-operative Cost-10-15% of first year saleMarketing Cost-10-15% of first year saleVM cost-2000-2500 Rs per sq ftProduct costingFinishing Cost-15-20% of CMTIndirect Cost-9-12% of Direct CostManufacturing Cost-20-40%SCM cost-7%Freight Cost- 7%VAT-20%Depreciation-On Computer-40%On Air Conditioner- 13.91%On Furniture & Fixture-18%On Machinery-13.91%Advertisement- 8-10% of saleSCM & Logistics- 2-5% of saleOther office overhead- 2-5% of COGSOther selling overhead-2-5% of COGSInterest of bank-15% Of DebtTaxes-33.33%

Pessimistic conservative optimistic CONSERVATIVE APPROACH

0

1

2

3

4

5

6

7

8

4.3186

6.9446 7.2001

INITIAL INVESTMENT= FIXED ASSET+ PRE OPERATIVE EXPENSES+ WORKING CAPITAL

FIXED ASSET VM(EBO) 98.75 L Rs (3950 sq ftx2500 Rs)VM(Warehouse) 24.5L Rs (7000sq ft x350 Rs)VM(Head office) 32 L Rs (4000sq ftx800 Rs)Computers (hardwere+softwere) 16.26 L RsMachinery 40 L RsTotal 2.1151 Cr Rs

1.27 Cr Rs(12.5% of 10.17 Cr Rs)

3.5595 Cr Rs (35% of 10.17 Cr Rs)

2.1151+ 3.5595+ 1.27 =6.9446 Cr

PRE OPERATIVE EXPENSES-

WORKING CAPITAL--

INITIAL INVESTMENT-

Income Statement- year 1

Gross profit EBIT EBT EAT

-70000000

-60000000

-50000000

-40000000

-30000000

-20000000

-10000000

0

10000000

20000000

30000000 24224714

-42792414-47048364

-62729583

pessimistic

Office & Administration overhead

Selling & distribution overhead

COGS0

10000000

20000000

30000000

40000000

50000000

60000000

49654485

17362643

9675286

pessimistic cost structure

all fig in Rs

PROJECTED Income STATEMENT

Sales 33900000

Less Cost of Goods Sold : 9675286

Gross Profit 24224714

Less

Office and Administration Overheads 49654485

Selling and Distribution Overheads 17362643

=Operating Profit (EBIT) -42792414

Less Interest on term loan ( 15% on Loan) 3238950

Less Preliminary Expenses ( Written Off) 1017000

(1/5 of Preliminary expenses)

EBT -47048364

Less: Income Tax @33.33% 15681219

EAT (NET PROFIT) -62729583

Gross profit EBIT EBT EAT

-20000000

-10000000

0

10000000

20000000

30000000

40000000

50000000

60000000

70000000

80000000 72561581

-2812211

-10560661 -14080529

Conservative

Office & Administra-tion overhead


COGS0

5000000100000001500000020000000250000003000000035000000400000004500000050000000 47002222

28371580 29138410

conservative cost structure

all fig in Rs

PROJECTED Income STATEMENT year 1

Sales 101700000



Less



=Operating Profit (EBIT) -2812211




EBT -10560661

Less: Income Tax @33.33% 3519868

EAT (NET PROFIT) -14080529

Gross profit EBIT EBT EAT0

20000000

40000000

60000000

80000000

100000000

120000000

140000000121028849

4043716131647086

21099113

optimistic



COGS0

10000000

20000000

30000000

40000000

50000000

60000000

45788265

34803423

48571151

Optimistic cost structure

all fig in Rs

PROJECTED Income STATEMENT Year 1

Sales 169600000



Less



=Operating Profit (EBIT) 40437161

Less Interest on term loan ( 15% on Loan)

5400075



EBT 31647086

Less: Income Tax @33.33% 10547973

EAT (NET PROFIT) 21099113

Income statement- year2

Gross profit EBIT EBT EAT0

50000000

100000000

150000000

200000000

250000000

198100876

3740250825252758 16836014

Income Statement



COGS0

100000002000000030000000400000005000000060000000700000008000000090000000

10000000089034379

7166398979551124

Cost Structure

PROJECTED Income StatementYear 2(fig. in Rs.)

Sales 277652000



Less



=Operating Profit (EBIT) 37402508




EBT 25252758

Less: Income Tax @33.33% 8416744

EAT (NET PROFIT) 16836014

sales= 10.17cr

fixed cost= variable cost=PE written off 2540000 cogs 29138419Rentals 31500000 Advertising (8 to 10% of sales) 9153000Electricity 1500000 Logistics ( 2% to 5%) 3559500Salary 7608000 Sales Promotion 10101700Depreciation 4208842 Other SellingOverheads 2185380 Salaries 3372000 Other Office Overheads 2185380

TOTAL 50728842 TOTAL 56323379

ConservativePessimisticSales- 3.39 crTotal fixed cost =49205842Total variable cost = 28503572Contribution margin =3.39cr-2.85crCM ratio = 15.92 %Break even sales = 309081922MOS = 27.51cr(negative

OptimisticSales-16.96 crTotal fixed cost = 51578842Total variable cost = 80973997Contribution margin = 16.96 cr-8.09 crCM ratio = 52.3 %Break even sales = 98621112MOS = 7.1 cr

BREAKEVEN ANALYSIS OF YEAR 1

Contribution margin = sales – variable cost = 10.17 cr – 5.63 cr = 4.54 cr CM ratio = CM / sales * 100 = 4.54 / 10.17 * 100 = 44.64 %Breakeven point = fixed cost / CM ratioBreakeven sales = 50728842/ 44.64 *100 = 113639879MOS = sales at selected activity – sales at BEP = 10.17 cr – 11.36 cr = 1.19 cr (negative)

Year1 Year2 Year3 Year4 Year50

200000000

400000000

600000000

800000000

1000000000

1200000000

Break even graph

Actual sale Break even Sale

year 1 year 2 year 3 year 4 year 5

101700000

277652000

558977528

796095465

1031964743

5 years sales forecastSeries1

Pessimistic Conservative Optimistic

-300000000

-250000000

-200000000

-150000000

-100000000

-50000000

0

50000000

100000000

-275100000

-11900000

71000000

Margin of Safety- YEAR 1

0

5

10

15

20

3.39

10.17

16.96

Sales forecast for year 1figure in Cr Rs

Pessimistic Conservative Optimistic

year1 year2 year3 year4 year5-5.00%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

-2.77%

13.47%

16.87%19.29%

22.29%

OPM ratio

year1 year2 year3 year4 year50.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%71.35% 71.35% 71.35% 71.35% 71.35%

GPM

year1 year2 year3 year4 year5

-20.00%

-15.00%

-10.00%

-5.00%

0.00%

5.00%

10.00%

15.00%

-13.85%

6.06%8.43%

10.39%12.56%

NPM

Ratio

GPM ratio NPM ratio OPM ratio ROA ratio ROE ratio

-60.00%

-40.00%

-20.00%

0.00%

20.00%

40.00%

60.00%

80.00% 71.35%

-13.85%

-2.77%

-13.30%

-40.55%

Conservative Ratio

GPM ratio NPM ratio OPM ratio ROA ratio ROE ratio

-350.00%

-300.00%

-250.00%

-200.00%

-150.00%

-100.00%

-50.00%

0.00%

50.00%

100.00% 71.46%

-185.04%

-126.23%

-202.31%

-290.51%

Pessimistic

GPM ratio NPM ratio OPM ratio ROA ratio ROE ratio0.00%

50.00%

100.00%

150.00%

200.00%

250.00%

71.36%

12.45%23.84%

191.18%

58.61%

Optimistic Ratio

1st year- 3 scenarios

IT ratio COGS/Inventory COGS 42199 3.79Inventory 11120

References

Documents

Need Gap