1. Presented to
Mr. Soumen Mukerji
By
Amit Kumar
Nishant Jain
Samik Gupta
Siddharth Dixit
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2. Feedback
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3. Enterprise Performance Management Cycle
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4. Overview
 Indian retail apparel industry is $33 bn in 2011 and poised to grow
to $100 bn in next 10 years
 Apparel exports $23.5 bn
 The apparel division of ITC consists of Wills Lifestyle’s Wills
Classic work wear, Wills sport relaxed wear, Wills club life evening
wear
 It has also established John player and Miss player as brands which
has 225 stores across the country
 The lifestyle retailing division of ITC is fortifying its brands and
expanding its retail reach
 During 2010-11 the brand reach was expanded to 73 exclusive
stores in 40 cities and more than 150 shop-in-shops in leading
departmental stores
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5. Business Model-Retail
Supplier Planning Sales/Point of Sales
Sales planning
Vendor management
Pricing management Point-of-sales management
Cost and deal management
Promotion management E-payment
Purchase order management
Customer profiling Content management
Collaborative management
Assortment management Online retailing
Category management
Purchase Process
Customer
Supply chain visibility Customer loyalty management
Warehouse management Voucher gift management
Transportation management Customer ordering
management
Track and Analyse
Store/Shelf Management Efficiency Management
General ledger and account
Store planning management
Process improvement
Inventory management Sales audit and invoice
matching Six sigma implementation
Replenishment management Radio Frequency
Workforce management
Fresh item management Identification (RFID)
Payroll processing implementation
Item publishing
Sales analysis and loss Enterprise security
Order management
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6. Strategy
Distribution
Stepping in
Low Cost Cost • Through shop-in-
shop the kid’s
apparels leadership • Through discount
stores
garments
• Exports
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7. 4 P’s
 Products
 Menswear,female wear and kids wear
 Usage of 80s ply non giza cotton and carded cotton
 Price
 We’ll multiply our base wholesale cost by a factor of 2.5, a
general industry cost rule
 This will represent all unexpected cost escalations and includes
profit
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8. Continued…..
 Promotion
 Print media advertisement , digital media advertisement,
billboards
 Brand endorsement through existing campaigns
 Promotion in existing stores
 Place
 5 pilot discount stores to start with, in Tier-II cities
 Consideration of easy raw material and finished goods
availability
 Through shop-in-shops
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9. Manufacturing to Distribution Process
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10. Profit share distribution
 With outsourcing we forgo 13%
 With discount stores distribution
cost saved gets passed on to the
end consumers
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11. Operations Of Pilot
Stores and a
Amritsar Warehouse
Chandigarh
Jaipur Delhi
Agra
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12. Product Specialisation Cluster Location
Stitching/RMG/Hosiery Delhi, Noida
Powerloom Amritsar
Woolen Knitwear Ludhiana
RMG/ Hand processing Jaipur
Handloom Amritsar
Avg. household
City Population
income (Rs.)
Chandigarh 960,787 99,262
Amritsar 1,132,761 33,043
Ludhiana 1,613,878 36,868
Delhi 11,007,835 135,820
Noida 293,908 38,860
Jaipur 3,073,350 35,754
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13. Alignment of programmatic objectives
with budgeting
Flow of • Top Down
information • Bottom Up
• Make Vs Buy
Measurable
• Distributions
Metrics
• Promotions
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14. Continued……….
Sales • Product lines
Information • Regions and specific locations
• Customer profiling
• Direct cost- Raw material , labor &
inventory, supplier expenses
• Indirect cost- Selling & distribution,
Expense designing, administrative expenses
Information
• Fixed cost- Establishments, rent, depreciation
• Variable cost- Includes many of the direct costs
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15. Continued……….
• Overall economic health
Projections • Inflation
on
• Interest rates
economic
climate • Consumer confidence
• Political stability
The final step would be to determine break-even on
own discount stores
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16. Thank You
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