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A B H I S H E K G A R G
A N I R U D H M I T T A L J A G A D E E S A N P
M A N D E E P S I N G H N AYA N T A R A G H O S H
N U P U R S A H N I S W A T I G A R G
Green Ghar
TABLE OF CONTENT
• Concept and Characteristics • Value Proposition • Development Strategy • Segmentation • Product Portfolio • Competition • Store Layout • Financial Analysis • Branding and Positioning
CONCEPT AND CHARACTERISTICS Aim: sell Energy saving and Eco friendly appliances in India through Retail outlets
The Concept Store • Store that is solely
f o c u s e d o n providing green a p p l i a n c e s t o retail customers
• Cost of products provided will be more affordable to affluent section of customers
• The Store will aim at providing a complete green experience to the customers
Product characteristics
• Green and Eco- Friendly products- E a c h p r o d u c t more eco-friendly than i t s d i rect competitors
• S ty l i sh – Bas ic styles to meet the aspirations of the new generations
• D u r a b l e – T h e products will be s o l d w i t h a warranty period
VALUE PROPOSITION
Energy Saving Products
Cost Savings for Customers
2% Eco-CSR Expense
• Good for the environment • India is unable to meet its
energy Demand
• Lowering electricity bill by upto 50%
• Shop all products from one particular retail format
• Companies are required to meet this as per new law
• Companies can purchase products from us
MACROECONOMIC PICTURE 2 Retail outlets in Largest Metropolitan Cities
Mumbai Delhi
Footfall: Colaba Causeway
1,12,343/day Connaught Place
1,72,400/day
DEVELOPMENT STRATEGY
• Year 1, operations in Delhi and Mumbai
• Year 2, Cover Metro Cities in India (2 more store openings)
• Year 3, Expand into Tier 1 cities
• Year 4 onwards, move to Rural market
SEGMENTING: CUSTOMER CHARACTERISTICS
v Upper Middle Income segments of India v Age: 25-55, people below 30 years of age
in India don’t have their own house, thus the utility of these products will not be much for them
v Social aspect: Association with the concept of GREEN!
• B2C Clientele would be targeted through retail stores opened in Delhi and Mumbai initially
• Also through Green Ghar’s website (to obtain discounts)
• Characteristics mentioned above
B2C B2B • Architects+ Builders+
Contractors • They undertake projects
of Retail Customers • Offering through
catchment area • Corporate clientele like
Reliance, Tata- Mobilize 2% CSR on green products
B2C Customer Segment
This segment may further be categorized as : 1. Customers looking for eco-friendly products to light their homes 2. Those who look for the long term efficiency from the devices(cost wise) 3. Those who focus on just the look and feel of the products and want to buy products for aesthetics reason
Green Ghar would take care of the needs of all three segment. Based on survey, below is a graph explaining what people look from lighting systems:
Aesthetics
Price
PRODUCT PORTFOLIO
• Products sold will be of three categories: • Branded electronics of big
brands which have the highest energy efficiency rating in their category
• Products assembled by us at our workshops located in industrial clusters close to our retail locations
• Completely green products such as solar geysers, wind energy based bulbs, solar lights, etc.
PRODUCT PORTFOLIO
• Offerings would include exclusively designed products that would add to the aesthetics of the home and office space. • Also for bulk orders esp. from B2B segment, we may
offer customization to suit their design needs
COMPETITION
DIRECT COMPETITION
v Our offering focuses on energy efficient products
v Market for such products is huge
v But, no company has ventured this space in the Indian territory
v Don’t see efficiency as a USP
v One niche player- Shakti Electronics exist
INDIRECT COMPETITION
STORE ENTRANCE AND INTERIORS
Exterior of the building will symbolise Eco Friendliness Basic interiors that aesthetically appeal to the target market: upper middle class
Cues in the building that reemphasize the green-aspect of the store
Use Ipads to provide detailed information and a user-friendly experience to each consumer
TECHNOLOGY ENABLED STORE
• The store would be designed to make the entire shopping experience easy, convenient and hassle free. • Scanner devices to enable purchases • Software to help suggest what lighting systems suits
your home/office space the most.
STORE LAYOUT
Particlars 2015 2016 2017 2018 2019
Market Size 50,000,000,000 57,000,000,000 64,410,000,000 72,139,200,000 80,074,512,000 Market Share 500,000,000 1026000000 1610250000 2236315200 2802607920
Revenue 500,000,000 1,026,000,000 1,610,250,000 2,236,315,200 2,802,607,920
ExpensesCOGS 300,000,000 595,080,000 885,637,500 1,162,883,904 1,401,303,960 Rent 48,000,000 70,560,000 95,040,000 154,560,000 184,320,000 Electricity 2,400,000 3,528,000 4,752,000 7,728,000 9,216,000 Salary 35,000,000 71,820,000 112,717,500 156,542,064 196,182,554 Advertising 75,000,000 143,640,000 209,332,500 268,357,824 308,286,871 Customer Loyalty Expenses 3,750,000 7,695,000 12,076,875 16,772,364 21,019,559 Expenses 464,150,000 892,323,000 1,319,556,375 1,766,844,156 2,120,328,945
Net Profit 35,850,000 133,677,000 290,693,625 469,471,044 682,278,975
FINANCIAL FEASIBILITY PROFORMA INCOME STATEMENT
BREAKEVEN ANALYSIS 2015 2016 2017 2018 2019
Fixed CostsRent 48,000,000 70,560,000 95,040,000 154,560,000 184,320,000 Electricity 2,400,000 3,528,000 4,752,000 7,728,000 9,216,000 Salary 35,000,000 71,820,000 112,717,500 156,542,064 196,182,554 Advertisement 75,000,000 143,640,000 209,332,500 268,357,824 308,286,871 Fixed Costs 160,400,000 289,548,000 421,842,000 587,187,888 698,005,426
Contribution Margin 40% 42% 45% 48% 50%
Breakeven Sales 401,000,000 689,400,000 937,426,667 1,223,308,100 1,396,010,851
Material Cost 40%
Shipping Cost 6%
Warehouse 14%
Contribution 40%
VARIABLE COST ANALYSIS
BRANDING AND POSITIONING We position are products to: • Classes of customers who have an emotional attachment with the cause
of going green! • Even for business houses our product usage tend to be a selling point that
‘our buildings are green’
COMPANY LOGO Company website: Plan A: Retail Customers can collect online discount voucher from Physical stores and on subsequent purchase online get a 10% off on purchase. Plan B: B2B Clients have a customization option on website. Get discount on such deals as bulk sale of products. Loyalty Program: Loyalty cards to customers: Bronze, Silver, Gold, Platinum. Points added for every purchase made Redemption in form of gifts or cash deduction CRM Strategy: Birthday/Anniversary gifts Feedback mechanism through website
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