ASSISNMENT ON RETAIL BUSINESS PLAN FOR A NEW RETAIL BRAND

EMMA & WILLIAMS IN INDIA

SUBMITTED BY
L.A.ASHOK
ROLL NO.32
FF3, FW 09-11
Company Description:

Emma & WIllams

“JUDGED BY COLOR”
BEING COLORFUL MAKES YOUR LIFE COLORFUL

Introduction

The entire concept of the launching a New Retail Brand Emma & Willams is all about the
gap that satisfy the customers, In the world of fashion Retail Store like stopper stop,
life style, Westside etc has a growth over 20 percent per annum over the last 5
years of Retailing in India. But these retail stores are providing garments color which
does not have a right combination and lacking in many color combination. A survey

done by me ,I use to buy my dress and jeans in stopper stop ,life style, west side, so
according to my knowledge as a designer I couldn’t find any dress in a right
combination of color but in the GOTA trip to Europe I went to many retail store and
found out the, retail store in the streets of Europe provides dress in the right color
combination and also I found many new color combination as the result I will

be launching a Retail store in the name of EMMA & WILLIAM which provides
apparel , accessories and footwear with the right combination of color and the tag
line of E&W is “JUDGED BY COLOR” Brand logo is “BUTTER FLY”.

THE THEME

Color has been investigated and used for more than 2000 years. Throughout history,
different civilizations have experimented and learned more about color. We are still
learning today about how color affects us and its importance in our lives. So as we know
the importance of color any right combination of color always reflects pulchritudinous as
it reflects in the Butterfly in this design which is drawn my me in my iPod touch. I
Choose butterfly as the brand logo becausebutterfly are day-flying colorful insects which

ii
says that every individual in this world has right to wear any good color combination like
a colorful Butterflies.

JUDGED BY COLOR
All of us in this world are judged by our color of dress we wear. If we wear any right
combination of bright color it reflects most positive like courage, strength and

pioneering spirit. Wearing black dress is often said unlucky mostly in south India
and some part in north India, it is believe of our elders, but wearing Black with
another color can enhance that other color's energy. Black can also give the space
sometimes needed for reflection and inner searching. It can indicate inner strength
and the possibility for change as you can see in the home page design the
background reflects the energy of color of butterfly more brightly.
Still there are people in India discriminating many people about the color of dress they
wear but always we have to keep in our mind that right combination of color always
suits all kind of people.
According to my finding if a person loves to be colorful by wearing colorful dress,
accessories etc., his or her life will be colorful and I am one kind of a colorful
person.

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Indian Retail Industry: Strategies, Trends and Opportunities

Retail is India’s largest industry, accounting for over 10 per cent of the country’s GDP
and around eight per cent of the employment. Retail industry in India is at the crossroads.
It has emerged as one of the most dynamic and fast paced industries with several players
entering the market. But because of the heavy initial investments required, break even is
difficult to achieve and many of these players have not tasted success so far. However,
the future is promising; the market is growing, government policies are becoming more
favorable and emerging technologies are facilitating operations.
Retailing in India is gradually inching its way toward becoming the next boom industry.
The whole concept of shopping has altered in terms of format and consumer buying
behavior, ushering in a revolution in shopping in India. Modern retail has entered
India as seen in sprawling shopping centers, multi-storeyed malls and huge
complexes offer shopping, entertainment and food all under one roof. The Indian
retailing sector is at an inflexion point where the growth of organized retailing and
growth in the consumption by the Indian population is going to take a higher growth
trajectory. The Indian population is witnessing a significant change in its
demographics. A large young working population with median age of 24 years,
nuclear families in urban areas, along with increasing workingwomen population and
emerging opportunities in the services sector are going to be the key growth drivers
of the organized retail sector in India.
Some Key Facts
- Retail is India’s largest industry, accounting for over 10 per cent of the country’s
GDP and around eight per cent of the employment.
- The market size of Indian retail industry is about US $312 billion
- Organized retailing comprises only 4.5 per cent of the total retailing market and is
estimated at around US$ 8.7 billion
- The organized retail sector is expected to grow to US $ 70 billion by 2010
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International retailers

India's vast middle class with its expanding purchasing power and its almost untapped
retail industry are key attractions for global retail giants wanting to enter newer markets.

• The Australian government's National Food Industry Strategy and Astride

initiated a test marketing food retail in India wherein 12 major Australian food
producers have tied up with India-based distributor AB Mauri to sell their
products directly at retail outlets.
• US-based home delivery and logistics company, Specialized Transportation Inc,
will enter the Indian market through a strategic alliance with Patel Retail, a
subsidiary of Patel Integrated Logistics.
• Wal-Mart has announced its plans for India in partnership with Bharti,
• US coffee chain Starbucks’ is well on its way to set up its first store in India this
year.
• US based Tommy Hilfiger has tied up with Creative Portico, a Mumbai based
home textiles company, to sell its home textiles and furnishings in India.
• Alfred Dunhill, a UK-based luxury men’s brand, has tied up with Brand house
Retail Ltd. for its India venture and will be opening four stores in the country.
• The world’s largest furniture retailer, Ikea, has established an office in Gurgaon
for market research and is holding talks with domestic companies to open stores
in India.

Some of the international players that have already entered India include McDonald's,
Pizza Hut, Dominos, Levis, Lee, Nike, Adidas, TGIF, Benetton, Swarovski, Sony, Sharp,
Kodak, and Medicine Shoppe among others.

Retail Omnibus: Four Reports on the Retail Scene in India

The Omnibus edition of Emma & Willam retail papers spans this very happening sector,
which not only brings so much joy to the inveterate shoppers in terms of retail therapy,
but also employment and livelihood to tens of thousands of Indians.
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India’s GDP growth rate is a healthy 9% for 2005-06 – and this has had its ripple effect
on all industries – more so the Retail sector, of which only 3% organized until now.

• The Indian retail industry accounts for 10% of GDP and 8% of employment.
• India is being touted as the next big retail destination with an average three year
compounded annual growth rate of 46.64%.
• The Indian economy is poised to take the third position in the world in terms of
Purchasing Power Parity by the year 2010.
• The Indian Retail Market is a Rs. 1,200,000 million market as per the Images
India Retail Report 2007.
• Organized Retail market is zooming ahead with an annual growth rate of 30%.

The Retail sector is vibrant with growth happening in all related areas – be they malls,
hypermarkets or single brand luxury stores, they have dotted the commercial landscape of
the metros, and have even percolated to the Tier II and Tier III cities.

Malls are fast becoming sought-after entertainment hotspots. From a situation where
there were no malls about a decade ago, the country will have over 300 malls translating
to over 100 million sq.ft. in available mall space by the end of 2007.

Food and Grocery retail holds the most potential, as almost 99% of it is unorganized. A
number of big players are entering the field of organized food retail like Reliance, Aditya
Birla Group and the Bharti Group, which has tied up with the world’s largest retailer –
Wal-Mart. All these major players are expected to show an annual growth rate of 25 –
30%.

The Retail boom has also led to the opening of a large number of single brand outlets
across the country. With big brands and bigger outlets across all segments, from Apparel
and Footwear, Watches, Books and Stationary to Jewelry and Consumer Durables, the
sweep is indeed broad.
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The Retail Sector is definitely witnessing a growth phase and everyone wants to make
their presence felt in order to take their share of this huge pie. Take a gourmet trip – dig
in to sample the depth and breadth of this amazing sector.

Types of Retail verticals operating in India

• Food and Beverage
• Health and Beauty
• Clothing and Footwear
• Home Furniture and Household Goods
• Consumer Durable Goods
• Leisure and Personal Goods

Management of the Company

Emma & Willam Retail over a period of time will built a strong management team to
drive the company for its high growth phase. the company is not a one man show and has
built a strong second and third line of management, to fulfill its massive expansion and
growth plans. Though there have been concerns regarding lack of talent in the growing
retail sector, the company has the best talent in place to drive each business category.

Expansion Plans

The concept of discount store resembles the Wal-Mart strategy. In India and especially in
metro cities like Mumbai, Bangalore, Calcutta and Hyderabad, where the population is
dense and consists of a high middle-class population, the concept of discount stores is
graining a lot of acceptance. The company plans to expand rapidly
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Emma & Willam Competitive Strengths

1. Strong understanding of the ‘value retail’ segment: Emma & Willam

business plan involves implementation of the concept of the ‘value retailing’,
targeting the middle and lower middle income groups, which constitute majority
of the population in India. Group/Company intends to provide quality products at
competitive prices. Group/Company sells a vast range of merchandise across
apparels and accessories,.

2. Strong and efficient supply chain management: Emma & Willam supply
chain management involves planning, merchandizing sourcing, standardization,
vendor management, production, logistics, quality control, ‘pilferage’ control
replacement and replenishment. Emma & Willam supply chain management
provides us flexibility to adapt to changing patterns in consumer behavior and
Emma & Willam ability to add value at various steps/levels. In particular, Emma
& Willam supply chain management gains strength from Emma & Willam
ability to undertake in-house manufacture, design and development of apparels.

3. Group/Company effectively use information technology systems:

Group/Company believe that efficient information technology systems, processes
and business applications are essential to handle retail chain of Emma & Willam
magnitude. Emma & Willam office processes are computerized which support
procurement, supply chain logistics, distribution centers management and store
operations including inventory management and billing. Group/Company is in
the process of implementing SAP. All Emma & Willam stores and distribution
centers are connected through a company-wide virtual network connection which
helps to efficiently manage Emma & Willam network of outlets throughout the
country.
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4. Group/Company have a highly experienced and competent management

team: Group/Company have an experienced management team which is
complemented by a committed workforce. Emma & Willam management team
comprises of talented professionals who are highly experience in the retail sector.
This has assisted us in effective management of Emma & Willam stores.
Group/Company believe Group/Company have created the right balance of
performance bonuses and other incentives for Emma & Willam employees.

5. Color selection for the customer: this is the main advanyage Emma and
William has where we provide a right combination of color for the target audience
where other s like lifestyle globus are lacking

Emma & Willam strategy:

1 Increasing Emma & Willam penetration in the country by leveraging Emma

& Willam supply chain, distribution and logistics network.
2 Emphasis on backward integration.
3 Procurement from low-cost production centers outside India.
4 Increasing customer satisfaction and Emma & Willam base of loyal
customers.
5 Continue to upgrade information technology systems and processes.
6 Continue to train employees and seek entrepreneurship from employees.

Characteristics of Select Retail Formats

Format Description Size (Sq. ft.) Examples

(India)

Category Offer a narrow 50,000+ 15,000+ Circuit City, RUs,

Specialist variety with a Home Depot,
right very deep Nalli’s Kumaran
combination assortment of the (Chennai),
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of colors merchandise. Toykemp

Merchandise (Bangalore), The
may be sold at Loft (Mumbai,
price lower than Vijay Sales
that. (Mumbai)
Convenience Usually located 3,00-8,000 500-1,000 7-Eleven, Speed
near residential mart, In & Out
areas & open
long hours.
Offers an
assorted mix of
products
including milk,
break and eggs.
Department Large store 75,000+ 500,1-000 Marks & Spencer,
Store selling several Harrods,
product lines, Selfridges,
with each Macy’s
operating as a Bloomingdale’s,
department. Shopper’s Stop,
Product mix is Emma & Willam
largely non-food, , Globus, Ebony
like apparel,
accessories,
books, music,
footwear etc.
level of service is
very high.
Hypermarket Large self 80,000- 40,000- Wal-Mart, Big
service stores 220,000 75,000 Bazaar, Giant,
selling a mix of Sabka Bazaar
products, these
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stores offer large

depth in the
product mix
which includes
Food non-food
items like
apparel, CD’s,
DVD’s footwear,
etc. The low
price for the
products is a key
attraction for the
customer.
Single Price Offer an assorted 5,000-20,000 500+ Family Dollar,
Stores mix of branded Dollar General, 9
and unbranded to 9, 49 to 999
merchandise, to
appeal to the
budget conscious
customer.
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Emma & Willam Retail Layout

Racetrack Layout:

This kind of layout has a center point that directs towards various sections of the store.

CRM PROGRAM FOR EMMA & WILLAM

1. Emma & Willam Program For Loyalty of sales and marketing

Due to limited space, first of all I will briefly discuss the core processes of managing
loyalty of sales and marketing in the retail sector. To begin with, we need to attract
customers to apply for membership willingly (enquiries, application and relevant service
can be done through shop counters, call centre and company website). Next, we can
collect relevant customer information, including family, work and personal information.
Then we can encourage members to use their membership cards when they are
purchasing through POS. After a certain period of time, POS sales data can be uploaded
to CRM's business intelligence for data modeling and relevant analysis. After different
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categories of customer groups are created, we can study their behaviour patterns and
devise corresponding product strategies, as well as design different sales and marketing
activities according to the characteristics of different customer groups. After the
implementation of sales and marketing activities, we can assess the results and learn from
customers' reaction through CRM's business intelligence.

We can realise that the membership scheme is crucial in these processes. Through the
membership card system we can observe a more accurate relationship between customers
and products. Before the establishment of this relationship, it was difficult to quickly
keep track of the change of customers' purchasing characteristics from the huge amount
of information, or to understand potential customer demands and the products'
consumption cycle. Even when we had the purchasing information of high-value
customers, we still couldn't know which type of customers would buy which rank of
products, or whether they would continue to purchase other relevant products in this
shopping mall or supermarket. In the original circumstance, that kind of analysis, which
has a strong strategic and sales orientation, was just unavailable.

To have effective sales and marketing activities, more experiments are needed. After
obtaining valuable experience we can focus on promoting marketing activities that are
proved effective. According to the core processes mentioned previously, we will discover
more quickly that which kind of product display has the greatest effect on which type of
customers, and whether they are the customers whom we are concerned. For the surge of
sales of a new product in the past month, we may also know which kind of customers
made the purchase, whether their purchasing behaviours will be long lasting, how would
this affect other similar products, and whether the overall profits of the target customer
group are decreasing.

A discussion of profits will be followed by product costs. We will suddenly find that to
carry out a complete customer and product analysis, we need to handle information of our
POS system and financial system as well as those of suppliers' management systems
collectively. This is because the best selling product may not be the most profitable one.
A product with high gross profit may also come with high warehouse cost, transportation
cost and display cost and therefore, its net profit may be little. Thus, a high-level analysis
of the retail sector demands high quality of basic information supply.

Certainly, a relevant team organisation is essential to execute such kind of loyalty of sales
and marketing processes. After all, this is about the creation of a customer-centered
organization that includes customer group management personnel, promotion of business
that closely related to customers, as well as inter-departmental co-operation. In turn, this
will enhance the overall sales. Below are some advices:
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2.E & M will have Precise Objective and Plan about How Could Loyalty of Sales
and Marketing Management Save Costs and Increase Revenue

It's the retail sector's common knowledge that customer relationship management plan is
a relatively large investment. Most people will expect a few million dollars for the
information technology budge, but few people know that to manage a profitable customer
loyalty solution will incur more investment. It is advised that before investment, the focus
should be placed on the issue of where the financial benefits will come from. With such a
focus, the objective of a customer relationship management plan will be amended to
gaining the maximum value for the retailer and its suppliers. Thus, to create better
financial revenue will become the focus of all processes, from plan design, analysis, data
collection to customer benefits and operation, etc.
Meanwhile, it will become possible to invest appropriate costs in achievable financial
return. By doing so, the original unit of a cost centre can become a profit centre. (For
details please refer to the special topic of CRM ROI in this year's Greater China CRM
annual conference)

3.Emma & Willam Concentrate and Allow Consumer Product Suppliers to

Participate at the Very Beginning

Valuable information of the retail sector can be utilized by consumer product suppliers
for a better understanding of customers, so as to ensure that products supplied can satisfy
customer demands. Certainly, suppliers may be requested to pay for information supply
or to share the cost of the solution mutually. Since consumer product suppliers are eager
to access solution information in order to transform from traditional supply to customer-
oriented supply, usually they are willing to cover the cost.

4.Turn Customer Relationship Management into Customers' Two-way Channel

After providing their information to the enterprises, gradually customers will participate
in and use the solution. What can they gain from the membership scheme? Perhaps a
lower price. What if they get involved in the development of a new product? Perhaps the
product will become more desirable as an extension of a current product. For example,
the T-shirt may have a new favourable colour, or a certain kind of vitamin will be added
into a favourable juice. To success is more than obtaining more customer information and
launching more products; the establishment of a firm customer relationship is more
important. Provide customers with the products that they wish, they will then become
loyal to you.
Now, I wonder if you are fond of the retail sector as much as I am, or would like to apply
for the membership of a large-scale supermarket immediately so as to experience their
customer relationship management?
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Business Analysis of Emma & Willam Model

Business Strategy

Targeting the market segment & the product

Understanding the market requirements

Arranging the sourcing and the logistics

Final point of sale through different formats

Strategy to touch all price points to diversify business & improve profitability
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BDI AND CDI OF EMMA & WILLIAM

BDI is calculated by: Category Development (A% / X%) * 100
where A is the percentage of a brand's total sales in a specific market area, and X is the
percentage of the total population in that market area.
To calculate the CDI:
A% / X% * 100
Simply divide product "A"'s total sales in the specific market, then divide it by the
population in that specific market. Finally you multiply the result by one hundred to
get an index number.

Challenges

 Fund raising – The Company acknowledges that expansion plans of the company
cannot be met from internal resources. This means that the company has to tap external
sources to fund expansion. The company has recently allotted shares to promoters at
SEBI formula price. It plans to borrow heavily to fund its expansion plans. As a
consequence of increased interest payment and depreciation expense, the net profit
margins would remain flat.

 Competition – Although there are a few stores operating in this segment such as
Giant in Hyderabad, it is mostly international chains such as Wal-Mart and Carrefour that
are the better known names as discount stores worldwide. Meanwhile, the general
retailers in Mumbai are not too pleased about the concept of discount stores.
“Group/Company can’t figure out from where such stores get their margins. It must have
a feasible revenue model to sustain the venture”.

The company is facing limited competition from the organized retailers but strong
competition exists from the downtown center’s unorganized.

APPENDICIES
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Questionnaire

1. Please rank the following parameters in the order of their importance

Parameter (for pantaloon,globus Ranking (1-6)
and big bazzar)
Personal Attention
Facility of home delivery
Facility of credit purchase
Ambience / Touch and feel
Long term discount/ free gift
Parking facility

2. Please tick the appropriate option based on your choice of retail store you buy
your cloths and apparel from…?

Neighborhood / Big Bazaar Other retail Purchase

General Store Store/super amount
bazaar (monthly)
a) Daily Supplies
b) Monthly Ration

3. Please tick the relevant option regarding milk purchase.

Loose milk Packaged milk From dairy (freshly Daily purchase

(delivered at home) milked) (quantity)

4. Please tick the appropriate option (choose only one option for place of
purchase)

Place of purchase Frequency of Purchase

Kirana Super Daily Twice Once Once Once Rupees
Store/sabzi Market/Big a a in 2 a spend
Mandi Bazaar week week week month per
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or month
more
Personal Care
a) Cosmetics,
deodorant,
beauty soaps,
face wash,
shampoo &
oil
b) Toiletries-
tooth paste &
brush shaving
products
c) Sanitary
napkin, baby
product
HOME ESSENTIALS
a) Washing
Soap &
detergent
b) Mosquito
repellent,
broom, toilet
cleaner

Personal Details:

Family size: 1 2 3 4 5 6 & above

Occupation (earning member)

i. Working Professional
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ii. Self-employed
iii. Housewife
iv. Student
v. Senior Citizen

Monthly Expenditure:

i. Less than 5000

ii. 5000-10,000
iii. 10,000-15,000
iv. 15,000-20,000
v. 20,000 and above

Name:
………………………………………………………………………………………..

Address:

a) House no……………………………………………………………………..
b) Sector / sub area / Locality…………………………………………………..
c) Colony / Mohalla……………………………………………………………..
d) City…………………………………………………………………………..

Contact no. with STD code:

……………………………………………………………………………………….

Optional:

Name of family Date of birth Marriage anniversary

member
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Thank You