The Viability of Liverpool Retail India Ltd Presentation

The Viability of Liverpool Retail India Ltd. In Large Format Stores

Presented By:

Nikita SanghviRoll No: 27

IIP PRESENTATION

CONTENT OUTLINE

• INTRODUCTION

• APPAREL RETAIL INDUSTRY

• COMPANY PROFILE

• RESEARCH METHODOLOGY

• CONSUMER SURVEY ANALYSIS

• NEW INVESTMENT PROPOSAL

• LEARNING

• CONCLUSION

• REFERENCES

STEVENS BUSINESS SCHOOLBATCH 2009-2011

INTRODUCTION

• RETAIL CONCEPT

word ‘retail’ derived from the French word retailer, meaning ‘to cut a piece off’ or ‘to break bulk’

retailer links the producers and the

ultimate consumers

• DEFINITION:

Retailing is defined as a conclusive set of

activities or steps used to sell a product or a

service to consumers for their personal or family

use.

BATCH 2009-2011 STEVENS BUSINESS SCHOOL

DIVISION OF RETAIL SECTOR IN INDIA


ORGANISED RETAIL SECTOR


MARKET STATISTICS


• Indian retail market - 5th largest retail

destination globally

• Share of retail to the country’s GDP - 22%

(US$ 380 billion) & estimated to grow to $679

billion in 2014

• Organized retail sector - expected to grow

from 5% in 2010 to 14%-18% in 2015

GROWTH OF APPAREL RETAIL SECTOR Higher disposable incomes New occasion Growth in the women’s segment Fashion increasingly a form of self-

expression Urbanization Comparative youth of India’s population Easy availability of credit cards High exposure of brands through media Increasing number of malls Branded outlets


KEY PLAYERS

• K Raheja Group

• Future Group

• Tata Trent

• Aditya Birla Group

• Reliance

• Bharti Walmart


COMPANY PROFILE

LIVERPOOL RETAIL INDIA LTD.• Established in 2001 - launched fashion retail

chain • In 2006 -Ventured into readymade garments

sector • Product portfolio: Men and Women: Shirts, Trousers, T-shirts,

Jeans, Accessories Kids Garments Footwear

• Retail Format: Discount Format Stores


BRANDS


COMPANY PROFILE

• Type of Retail Store: Exclusive Brand Outlet

- Franchising

• 554 stores in India & 2 stores in Dubai

• Planning to expand in international market

• Launched 151 retail stores across 15

states for “BARCELONA” on 15th June 2008

at 11am & entered “Limca Book of Records”


IIP PROJECT

• TOPIC: “The Viability of Liverpool Retail India Ltd. In Large Format Stores”

• AREA OF RESEARCH:

Marketing - Retail Management

• RESEARCH OBJECTIVES:

To propose Liverpool Retail India Ltd. a business plan about investment in Multi-brand outlets (MBOs) & Large Format Stores (LFS)

• RESEARCH TYPE

Quantitative and Suggestive research


IIP PROJECT

• DATA REQUIREMENT Entrepreneurs who are already functioning in EBOs,

MBOs & LFS Store Managers & Staff of the various brands present in

the store Customers who are actually purchasing from various

types of apparel retail stores

• DATA COLLECTION TOOLS Questionnaire Books, newspapers, trade journals, and white papers,

industry portals, government agencies & monitoring industry news and developments


IIP PROJECT

• SAMPLING DESIGN

Sampling Techniques: Probability Sampling

Method

Sample Size: 100 people

Survey area: Ahemdabad city


CONSUMER SURVEY ANALYSIS












NEW INVESTMENT PROPOSAL• Focus on three decisive factors:

Shape the category Focus on inventory and markdown

management Take a segmented view of the market


PRDUCT INFORMATION

• Retail Format: Large Format Store• Brand: Liverpool ’Youth• Category: Semi-Premium Brand• Style: Casuals

• Merchandise: Denims & T-shirts

Accessories - Wallets, Belts, Handkerchiefs

• Price Range: T-Shirts = Rs. 699/- to Rs. 999/- Denims = Rs. 899/- to Rs. 1599/-


TARGET MARKET

• Demographic Age - Between 18yrs - 30yrs Disposable Income - >INR 15,000 p.m. Generation - Generation Y

• Psychographic Personality – Competent, Strivers, Achiever,

Experimenters Life Style – Brand Conscious, Pleasure & comfort

seeker

• Behavioral Loyalty Status – Shifting loyal Readiness Stage for buying – Interested


SOURCES OF FINANCE

• Own reserves: Rs. 5 Lac • Bank Over Draft: Upto Rs. 50000

• Investment Breakup:

= Rent amount*

+ merchandise cost

+ salary

+ margin given to store authority ( 25% on net sale)

+ miscellaneous

(branding, snacks expense, incentives, etc.)


COST PRICE

• RENT AMOUNT: Store Space Reqd: 250 sq. ft. Cost Price per sq. ft. : Rs. 150/- to Rs.250/- p.m. Rent per month: Rs. 220 * 250 = Rs. 55000/-

• MERCHANDISE COST


FY 2011 FY 2012 FY 2013

Avg. Cost price of Jeans (in

Rs.)350 400 400

Avg. Cost price of T-shirt (in

Rs.)150 200 200

No. of pieces bought per

year2800 1600 1200

INCOME STATEMENT (Projected)

First year '11 Second year '12 Third year '13

Sales 1388600.00 2290000.00 2410000.00

Less : Cost of Production

(417150.00) (465050.00) (384000.00)

Gross Profit 971450.00 1824950.00 1589473.00

Less : Administrative & Selling Expense

(1170457.00) (1587300.00) (1368142.00)

EBDIT (199007.00) 237650.00 954861.00

Less : Depreciation

0.00 0.00 0.00

EBIT (199007.00) 237650.00 954861.00

Less : Interest (500.00) (500.00) (50.00)

EBT (199507.00) 237150.00 954811.00

Tax @ 30% 59852.10 (71145.00) (286443.30)

EAT (139654.90) 166005.00 668367.70


LEARNING

• Understanding the operations and working at

the company based on franchisee format

• Online as well as telephonic co-ordination

among departments - integral part of job

• Correctness and clarity of information

• Absolute knowledge of the industry, clarity of

job description & aptitude of learning.

• Multi-tasking is the ‘Word’


CONCLUSION

• Consumer’s preferences: changing rapidly

and highly diversified

• Wants best quality, variety, exclusive benefits

and privileges

• “Who you are selling to and how” going to

trump “what you are selling”

• Improvements in infrastructure, lower real

estate costs will affect future


REFERENCES• Marketing: An Introduction (7th Edition) by Armstrong and

Philip Kotler (2005), Dorling Kindersley (India) Pvt. Ltd., New Delhi

• Marketing Research: An Applied Orientation (5th Edition) by Naresh K.Malhotra & Satyabhushan Dash (2009), Dorling Kindersley (India) Pvt. Ltd., New Delhi

• Research Methods for Business Students (3rd Edition) by Mark Saunders, Philip Lewis and Adrian Thornhill (2007), Dorling Kindersley (India) Pvt. Ltd., New Delhi

• Retailing: Environments & Operations (Indian Edition) by Andrew J Newman & Peter Cullen (2009), Cengage Learning India Pvt. Ltd., New Delhi.

• ‘Retail Hotspot’ The Hindu Business Line, 22 August 2002


REFERENCES

• http://economictimes.indiatimes.com/articleshow/

6078501.cms

• http://investing.businessweek.com/research/stocks/private/

snapshot.asp?privcapId=45981969

• http://www.primaryinfo.com/apparel_retailers.htm

• http://www.bespokecreations.net/Resources/Brands%20of

%20India_Part_1.pdf

• http://www.business-standard.com/india/storypage.php?aut

ono=326168

• http://www.clickindia.com/detail.php?id=2485181

• http://www.financialexpress.com/news/apparel-retailers-

move-to-small-towns-for-growth/494604/0


REFERENCES

• http://www.franchiseindia.com/magazineArticlesView.php?

magzid=49&artid=49-1-1&title=May+2009+Vol.+10+No.

+3&p1=2&p2=&year=2009

• http://www.indiaretailing.com/news.aspx?topic=1&Id=4155

• http://www.referenceforbusiness.com/business-plans/

Business-Plans-Volume-09/Retail-Clothing-Store.html

• http://info.shine.com/Article/Retail/Retailers-think-big-shift-

focus-to-large-format-stores/4000/cid139.aspx

• http://www.thebusinessplanstore.com/

business_plan_financial_projections.htm#BalanceSheets

• http://thirdeyesight.in/articles/all_about_format.html


THANK YOU

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The Viability of Liverpool Retail India Ltd Presentation