MFM Thesis: Brand Extension for Forest Essentials

FOREST ESSENTIALS BRAND EXTENSION INTO ORGANIC HOME FURNISHINGS By

Shreya Bhardwaj

PGFMG 3

RESEARCH METHODOLOGY PRIMARY RESEARCH:

! SAMPLE SIZE

Questionnaires = 50

Brand Audits = 15

! SAMPLING TECHNIQUE: Judgemental

!

SECONDARY RESEARCH:

! Journals

! Trade journals

! Magazines

! Internet

! articles

PROJECT SCOPING FORM:

Project Name: Brand extension of Forest Essentials into Organic Home Furnishings (soft goods)

!

Objectives:

!

To study the history, philosophy of the brand

!

Understand the essence of the brand; why it connects

!

Understand Home textile industry (CAGR, highest selling products, need of consumer etc);

! organic share in home textile if possible

!

Environmental scan

!

To develop business plan which will include product and promotion strategies

!

Opportunities:

!

Consumers are increasingly becoming conscious of their green choices

!

There is a small but strong and growing need for organic products

!

With rise in high fashion retailers getting into organic awareness is increasing

!

Consumers are willing to make healthy purchases

!

Consumers need to be educated more in the god or benefits of organic.

!

To cater to the growing need of organic

!

Success Criteria:

!

Will be the only brand providing 100% organic home furnishings

!

Will cater to need of the consumer who is willing to buy organic furnishings.

Risks:

!

Market still growing; nascent

!

Niche product and market

!

Only a few select set of consumers are aware

!

Willingness of purchase differs from ability to purchase

Problems:Â

!

Organic concept and market still at nascent stage.

!

Consumers are aware, but conversion of purchase in the buying decision process is low.

!

Organic products are slightly more expensive.

! Â These will come as limitations

FOREST ESSENTIALS ! ! !

! !

Started in 2000 by Mira Kulkarni

Uses age-old Ayurvedic formulations.

Works in collaboration with a team of ayurvedic physicians.

Based in the himalayn retreat of Rishikesh.

Essentials uses exclusively organically grown vegetables, plants and pure cold pressed oils.

In 2008, Estee Lauder bought 15% stake in Essentials.

! The brand Have offers Hair care, youunique heard of the brand ForestSkin care, Body Essentials? care and wellness products.

! Essentials has 21 stores and an online store.

! Products are not made in factories, in villages in Himalayas.

! Usp: uses lighter textures and pure essentials oils.

! Also, advocates the heritage of India through its products and practices. The importance of nature. !

Yes

50

No

0

13

25

38

LUXURIOUS AYURVEDA

50

SOURCE:

www.googleimages.com, www.foresessentialsindia.com

TEXTILE AND HOME INDUSTRY

CHANGING FACE OF THE INDIAN CONSUMER

WITH RISING DISPOSABLE INCOMES RISES THE ASPIRATIONS OF CONSUMERS

Strongly like Like

•Consumer’s awareness and demand for If FE laucnhes Soft Home organic fashion is slowly but surely furnishings, Will you buy? picking up.

I often use natural or organic •India’s organic export I am interested in finding howis likely to rise by products support 1500 envt. crore in 2012-13; 50% totoabout NOTS

•Consumer’s are becoming more receptive

•Acc” to Technopak, Making greener choices is a high priority for about 66% of the consumers.

•Nielson’s 2011 Global Online Environmental and Sustainability survey

•44% consumers actually purchase eco friendly products

•Not many players in the market.

31

19

Agree Compl.

Neutral Agree Compl.

30

19

Dislike Agree S/what

20

Agree S/what Strongly dislike Disagree S/what

31

Disagree S/what0

8

16

24

32

Disagree compl.

Disagree compl.

0

0

8

8

15

16

23

24

30

32

P.E.S.T. ANALYSIS ❖ ! ! ! ! !

! ❖ ! ! ! ! ! ! ! ! !

POLITICAL

GOTS standardization (Indian only country to have organic national standards, ISOT)

Various policies supporting sustainable practices at agricultural level.

Gujarat’s new textile policy, “ Farm-to-Foreign” strategy, that assures cotton grows for best price for their produce in India and overseas.

Sustainable growth of both farmers and industry.

Liberal foreign policy has encouraged foreign investment & thus resulted in a competition between multinational and domestic market.

ECONOMIC

Exports: Organic textile exports to touch Rs.1,500 cr (12-13), growing @ 50%

GDP-GDP is estimated to grow by 8.2% in 2012.

Indian economy is expected to grow at 9%.

Domestic Home Textile Industry is estimated --- Rs. 17,000 Cr. In 2010, is estimated to Rs. 26,650 in 2015 and Rs.40,000 Cr. In 2020. CAGR 9%.

Organized home & interiors Rs 14,914 cr , growing@ 15%

HNWL 62,000 household in 2010-11 by 2015-16. 219,000 household (triple)

Consumer Spending increases by 1.1% per annum.

Hospitality Sector is growing at 13%

The growth of the economy has been well supported by the growth in income

❖ ! ! ! ! ! ! ! ! !

! ❖ ! ! ! ! ! !

SOCIAL

Rise in per capita income, there is more disposable income left for expenditure on apparels and lifestyle products.

Rising urbanisation.

Changing mindset of a billion people: Indians are moving from saving and necessity driven living to a far more indulgent living., Esteem enhancing products.

Discretionary Spending

Social factors like dual house holding income has enhanced spending power (PPP).

Increasing urban population – More participants in Retail Revolution.

Shifting from low price to better convenience, high value & a better shopping experience.

Increase in overseas travels.

Proliferation of media has contributed towards enhancing customer knowledge and dedicated shows, channels, magazines and events have created an aspirational attribute for consumption.

Green conscious.

!

TECHNICAL

The GOT has a technology up-gradation fund for due textile and jute industry.

Restructuring of TUFS has been issued by GOI from 28-04-2011 to 31.03.2012. an investment cap of 0.43 billion dollars.

STP scheme to facilitate setting up of textile parks with world class infrastructure.

Project investment of 4.32 billion$.

Integrated skill development scheme, to address the trained manpower needs of textile and related segments.

E-commerce, India’s IT companies have quickly moved up the value chain and in fact become some of the biggest beneficiaries of technology outsourcing.

PORTER’S FIVE FORCE ANALYSIS

SWOT ANALYSIS: !

Strengths

Has a strong heritage/background that consumers connect to.

Great acceptability & wide market share Unique production process Caters to niche market, increasing demand Consumers have a strong bond with brand The brand fulfills its promises Estee Lauder has 15% stake in the

Threats Existing brands and high end stores catering to the need of this customer segment.

Lack of enough organic awareness.

Poor conversion rate of Purchase Home furnishing segment has huge international and domestic players Risk of wrong communication

Weaknesses Does not have a huge international presence, despite the exposure

!

Opportunities

Availability of more capital Chance to expand globally & become an international brand Growing awareness of consumer, concious consumer Home textile market growing @ 9% ; is worth Rs 17,000 crs Acc to technopak,making green choices the priority for about 60% consumers.

Global brands also eyeing this sector Organic sector is niche, still untappe

ANSOFF MATRIX

EXISTI NG MARK ET

NEW MARK ET

EXISTING PRODUCT

NEW PRODUCT

!

!

MARKET PENETRATION

PRODUCT DEVELOPMENT

!

!

MARKET DEVELOPMENT

DIVERSIFICATION

No go Area Extension Zone

Outer Core Inner Core

Ayurvedic

Cosmetics


 Kernel Line

Forest Essentials

Extension

Wellness Products

Spontaneous Association Apparel

Organic Make up

Latent Potential

ORGANIC HOME FURNISHINGS

Home Essentials

BRAND AUDIT ANALYSIS “ Tried the coffee face wash, kept smelling it even after hours of leaving the store”

“I feel pampered, taken “Someone who care of” is well groomed, takes “Subtle Personality” of themselves, appreciates quality and “Forest Essentials is “It always gives me what it nature” very fine, luxurious” promises.”

“Forest Essentials never lets me down unlike other hoax cosmetic brands”

“I feel safe in the hands nature through Forest Essentials”

PICTURE OF SENDER

Physique:

•Ayurvedic & natural

•High quality

•Tree of life (Logo) E

X

T

E

R

N

A

L

I

S

A

T

I

O

N

Relationship:

•Trusted

•Pure

•High quality

Personality:

•Down to earth

•Honest/Authentic

•Socially conscious/aware

•subtle

FOREST ESSENTIALS:

100%Natural, 100% Pure,

Luxurious

Reflection:

A person who makes conscious (natural) choices, concerned about self, appreciates quality and luxury.

PICTURE OF RECIPIENT

Culture:

•Purity

•Ayurvedic

•Natural Heritage Self-image:

•I feel natural, pure and safe.

•I feel a sense of belongingness to heritage.

•I feel luxurious and pampered.

I

N

T

E

R

N

A

L

I

S

A

T

I

O

N

BRAND POSITIONING STATEMENT: “Beautiful things make beautiful things- Pure organic from the body to your home, Wrap yourself in nature.”

PODs : Organic. Natural, Pure, Safe

POPs : High Quality, Exclusivity

BRAND VALUE PROPOSITION Functional Benefits:

Provides aesthetically appealing, Organic and Natural home furnishings.

Emotional Benefits: Natural, Pure and sustainable, Bringing nature into your home

Self-Expressive Benefits: Exclusive, unique and trusted

Branding Strategy:

Developing a NEW BRAND.

Combination of Old and New Elements

In the Brand Hierarchy, it lies at INDIVIDUAL NAME.

THE BRAND SYSTEM Brand Concept:

-�Bringing nature, into your home�

Tangible: 100% organic soft home furnishings

Intangible: Nature, Purity and Indian tradition into the next level.

Brand Name:

Home Essentials from Forest Essentials

(like the parent brand, skin essentials from nature similarly home essentials from nature.)

Product or Service

Experience:

Organic home furnishings, providing an experience of purity and nature at its best

CONSUMER PROFILING I My enjoy home showing is expression off my home ofPYSCOGRAPHICS: myto personal gueststyle •Dynamic, Outgoing, DEMOGRAPHICS: Socially active

•Age Group: 25-40attribute years suits to Forest Which •Educated, aware Agree Agree Compl.

Compl.

42 37 •Annual household Income: 0.5-1 Essentials consumer consumer

mn

•Well-informed

Agree Agree S/what S/what 8 13 Sincerity (Upper middle class)

36 •Conscious of their green •The STRIVERS & GLOBALS of the choices, want to make Disagree Disagree S/what S/what Excitement society.

small efforts towards the •compl.

Occupation: Self-employed, Disagree Disagree compl. nature

Are consumers looking to sized entrepreneurs, 14 Sophistication Medium Home •Upwardly mobile who are create lush living spaces.

0 13 25 38 50 10 20 30 makers

GEORAPHICAL: Living in metro cities, these willing to40move shoulder to Competence Jor Bagh, Golf Links, well educated, urbane, shoulder with the latest in cosmopolitan individual.

DLF Gurgaon, the world.

0 10 20 30 40 They have an innovative Maharani Bagh, Civil •Social awareness, value spirit, & keenly pursue the Lines, Greater Kailash for time, independent latest green practices.

The décor of their home is judgement

thus an imp medium to •Select brands for intrinsic express their personal style.

quality, favouring natural They are passionate about simplicity, small is beautiful. nature, beauty/design and home decor (Higher Education)

!

CONSUMER PROFILING

GADGETS: Mac Book, Bold 4 WORK: National Lead Faculty, NDTV India AGE: 40

Can Lives with husband and LEISURE: Photography, Reading, daughter at

Writing, Art curator, Likes to visit art S.J.E. gallaries, WEARS:

AUTHORS:

MUSICS & DANCE:

Anokhi

Amitav Gosh; Classical jazz, Hindustani Cottons Anaisnin

Classical, Karnatik Jaipur

Vocals, Bharatnatiyam, Fab India

Odissi DRIVES: Honda Civic, Calvin Klein

PASSION:

Fabia Contextual study F.C.U.K LOVE:

HOME Media in the History LIKES TO EAT Sancturies, Forests

STYLING:

AT:

Mountains “Speti”

Fab India, Tapi Yaki, Joy Louvre Paris

Luck Moon, Good Earth, The smell of spices

o Kainoosh, 360 , Animals, Dogs <3 Tarini, The Flavors, Shalom Shop, Ishvatam Loves GARDENING, Likes to bring nature into her home.

INSPIRATION:Andy Warwol, PrabhuDasgupta, Audrey Heburn, Henri Cartier Bresson

COMPETITORS ANALYSIS

ANOKHI

• Anokhi has been in the market for Which brand /store do you shop the past 40from years.

• USP: • Is distinguished by its prints & sense GOOD EARTH

of designs, range of colors & • USP:

product quality.

• Is based on values of sustainability.

• Company is well known as an • Sustaining tradition & the ecology is alternative role model for good a core value.

business practices, and ongoing SARITA HANDA

• Collections are based on different textile skills.

• revival Startedofintraditional 2009 as SHE Home.

traditions and culture.

• Use USP:of vegetable dyes and hand • PLACE:

• blocks.

DESIGN and TEXTILE is the u.s.p.

• Good Earth stores are present

sarita handa

3

good Earth

26

anokhi

10

8

Apartmnet 9

3

others

0

8

15

23

30

PRODUCT Which of the following are the most imp attribute in your soft PRICE furnishing product POSITIONIN Home 50 47 G:

Essential s by High End Forest 38 Cushions

Bed Essential 50% Linen

PRODUCT s40% 26 TYPE: 22 Bed 25

Decorativ Floor Basic Pillow 22 Basic Spreads

ORGANIC e

Cushions

40% Covers

Sheets KEY DESIGN 17 17 50% 15 10% 50% 13 50%12 INFLUNCES:

HOME 11 13 10 12’ x 12’

16’ x 16’

20”x30”

Twin7

8Twin

•Traditional Indian

6 FURNISHINGS 16’ x 16’

18’ x 18’ 4 4 320”x40” Full

Full

3 3 14’ x 20’

•Modern & 24’ x 24’ contemporary 0 fabric

0

texture

Queen 0

King

colour

Queen

0 00 0 King

design

MATERIALS USED:

•Organic cotton

•Hemp

•Ahimsa silk

•Organic linen

•OrganicBath duck

•OrganicLinen

Rank 1 10& canvas

Rank 2 Shower Hand •Organic Towel Rank 3 Towel

Rank 4 sheeting

(20’x30’)

(27’x64’)

Rank 5 40%•Organic 40% percale

•Organic voile

Face Towel

(12”x12”)

20%

fit/size

CRAFT TECHNIQUES:

•PRINTING

•EMBROIDERY U.S.P.:

The USP of Home Essentials product is the FABRIC. It acts a differentiating factor from its competitors.

CUSHIONS

BED LINEN

TOWELS

PRICING PRODUCT

PRICE POINTS

CUSHIONS: Decorative cushions

Rs 1000-2500

Basic Cushions

Rs 575-1100

BED LINEN: Beddings set

Rs 2400-3800

Bed Spread

Rs 9500-10500

Bath Linen

Rs 450-775

PRICING STRATEGY:

Going Rate Pricing + Mark-up Pricing

PLACE For the first year Home Essentials will have stores in:

❑ DLF Promenade, Vasant Vihar

❑G.K. N Block Market

!

In the first year only NEW DELHI is targeted.

FIVE YEAR ROLL OUT PLAN LOCATION YEAR 1 YEAR 2 Delhi Mumbai

2

YEAR 3

YEAR 4

1

YEAR 5 ONLINE

2

Bangalore

1

Pune

1

Ludhiana

1

Hyderabad

1

RETAIL STORE format:

e r o t s il a t Re TORE S Y T I L A I SPEC rrow and a N . t a m r fo uct line. d o r p d e s focu

Level of Service:

Self Selection

The customers will fin d their own goods/product s, although they can as k for assistance.

STORE ATMO SPHERE:

Walls: Earthy to nes to convey freshness and wholesomenes s.

Lightening: W arm accent lig hts .direct atte the products.

ntion to Chandelier, fee l of opulence a nd luxury.

Signage: Store exterior, top of the; in-store

Floor: Hardwo od floors, to pro vide a natural fe Sound: Natura el.

l sounds such as river flowing chirping, wind , birds in the mountain s, Indian instru Smell: In-store ments

fea like tuberose, ja ture distinctively Indian scen ts smine and san dalwood.

RE IN-STO ATION:

UNIC ge

M M O C Signa s r e t s â&#x2013;Ş Po store d e n i â&#x2013;ŞTra nel n o s r e p

PROMOTION L AT

Two way

BTL

1. Print Ads:

Magazines:

Vogue India

Elle India

Elle DĂŠcor

2. Booklets at Forest Essentials One outlets way 3. Bought Media:

Display

ne y a w

ADVERTISIN G

PUBLIC RELATIONS:

1. Write ups in Magazines

2. Editorials

3. Interviews by company owner.

O

!

INTEGRATE D MARKETIN BTL G DIRECT COMMUNI MARKETING:

1.

Websites

CATION 2. Email

BTL

BTL

INTERACTIVE MARKETING:

Two 1. Facebook

w 2.Ttwittera y 3. Mobile Application

SALES PROMTION:

1.ContestTw &o way sweeptakes

2. Loyalty programmes

3. Sales/ Discounts

ADVERTISING & PROMOTION OBJECTIVE: The Adv. objective is to create Brand Knowledge.

Create knowledge about: -Home Essentials being offered by Forest Essentials.

100% organic and herbal

Why organic!

Advertising & Promotion Objective:

1. Brand awareness & knowledge

2. Brand Attitude

3. Brand Purchase Decision

MONTH September October

ADVERTISING ACTIVITIES Social Media activities on Forest Essentials to create awareness about Home Essentials Pre-launch advertisement in Vogue Magazine Booklets at Forest Essentials outlets Direct Marketing: Emailing invites to existing customers

MONTH

ADVERTISING AND PROMTION ACTIVITIES

November (LAUNCH) December

Editorial by Mrs Mira Kulkarni in Vogue Living

January

Signage in Promenade mall+ Select City Walk Mall

February

Sale period

March

Social media activities

PRE-LAUNCH ACTIVITIES

Editorial in Elle and Elle Decor

April May

Signage in G.K. + Khan Market + Promenade Mall Write-ups in Vogue

June

Contest/ Sweep takes on Facebook page

July August

Sale period Facebook activities focussed on approaching festivities

September

Advertisements in Vogue + Elle Decor Advertisement in Vogue.in (Cash in on Fashion Night Out)

October

Advertisement in Elle magazine Advertisements in P.V.R. Gold Class

November

Social Media

December

Editorial in Elle + Elle Decor

POST-LAUNCH ACTIVITIES

! !

MEDIA BUDGET

ADVERTISEMENTS VOGUE: Pre-launch : Full Page Post-launch: Double Spread ELLE: Post-launch: Full Page ELLE DECOR: Post-Launch: Full Page

!

! !

TOTAL

245000 490000

!

200000 !

1065000

130000

SIGNAGE Promenade mall (2)

80000

G.K. N-Block

30000

Select City Walk Mall

40000

Khan Market

40000

190000

60000

60000

P.V.R. Gold Class

40000

40000

BOOKLET + PHOTOGRAPHY

25000

25000

ONLINE ADVERTISEMENT: Vogue.in: Lead board banner for 1 week MOVIE THEATRE ADVERTISEMENTS

GRAND TOTAL:

1380000

LUXRIOUS, ORGANIC, PURE

PURE, ORGANIC from YOUR BODY to YOUR HOME, WRAP YOURSELF IN NATURE

SERVICES •Gift Card/ Coupon redemption

• Direct to Payee: Cash Handling + Credit/Debit Card handling,

•basic information about the product: Prices, Reminders Warnings, Conditions of sale, etc

•Also, additional information about the brand if required

• Customized advice (on being asked my the customer)

•Training in product use (if required)

Machine billing; Display of amount due

•On-site Order fulfilment

•Email order for special services

•Applications: Loyalty programmes

•Personnel shopping service

•Gift wrapping

•Loyalty cards

•Caring for possessions customers bring with them

•Caring for goods consumers purchase

•Greeting of customer by store personnel

Interpreting their needs

•Handling complaints

STRATEGIES ADOPTED BY HOME ESSENTIALS Competitive Advantage C o m pe titi ve Sc op e

Low Cost

Product Uniqueness

Br oa d

!

!

Na rro w

!

!

Focus Strategy

F o c u s Differentiation Strategy

Cost Leadership D i f f e r e n t i a t i o n Strategy Strategy

MARKET NICHER STRATEGY: (CS)

Home Essentials is a brand of home furnishings (segment) but is a home furnishings brand which offers 100% organic home furnishings (subset).

Thus it is easy to say Home Essentials is a niche brand.

Home Essentials follows the following roles of a niche:

•Customer size Specialist

•Product feature specialist

•Quality price specialist (High quality, High Price)

PROCESS:

PEOPLE: FABRIC PROCUREMENT FROM MANUFACTURE RS

READY FABRIC SENT TO CRAFTSMEN

PERSONNEL

ROLE

Store Manager

•Head the outlets, •VM of the store •key in store activities

Sales executive

•Assist the customers on the floor •facilitate the buying process •provide information

Support Staff

SEMI-FINISHED PRODUCT AT THE STICHING UNIT

FINAL PRODUCT AT THE STORE

Head manager

The support staff will be present in the outlets to provide assistance s o u r c i n g •Logistics handling

FINANCIAL ANALYSIS Projected Balance Sheet

Source of Fund (Liabilities)

Application of Fund (Assets)

Equity

4696550

Debt Total Liabilities Fixed Assets (includes depreciation) Advertisement expenses capatalized Pre-Operative Expenses

7044825 11741375 2999500

Net W.C. = CA - CL

6181875

Total Assets

11741375

Note: 1 application of fund may also include pre-operative expenses

1380000 1180000

P R O J E C T E D 1 year I N C O M E STATEMENT R e v e n u e S x Q = TS 24727500 (net sales) Va r i a b l e C o s t V x Q = TV (Prime Cost)

11966994

Contribution

12760507

TS – TV = TC

Fixed Cost F (Over heads)

9418209

Operating Profit TC – F = EBT

3342298

Gross Profit

Operating Profit

3342298

2205917

Net Profit

0

(I)Interest is part of 0 Fixed Cost Profit (EBT)

EBIT - I = EBT

3342298

Less Tax

Tax @34% (T)

1136381

Profit (EAT)

EBT - T = EAT

2205917

add depreciation (EAT + D)

3195752

12760507

3500000

7000000

10500000

14000000

The graph represents the gross profit, operating profit and net profit of our store for the first year.

Among all, the gross profit is the highest that is Rs. 58, 99,802 and finally the net profit after deducting the taxes is Rs. 8, 14,047.

RATIOS ANALYSIS: Contribution=Sales Cost-Variable cost

1823

Break Even Quantity= Fixed Cost/Contribution

5167

ASQ=Quantity

7000

Safety Margin =(ASQ-BEQ)/ASQ*100

26.19252 %

Payback Period= INVESTMENT/ANNUAL CASH FLOW

4

Return On Investment= EBIT/INVESTMENT*100 EBIT= EBT+INTEREST

37.46598 % 4399022

Gross Profit Margin =Gross profit(EBIT)/net sales*100

14%

Net Profit Margin = EAT/Net Sales*100

9%

Debt Equity Ratio= Debt/Equity

1.5

Debt Service coverage= EBIT/Interest

3

Working Capital turnover = Net sales/Working Capital

4

Return on Fixed Assets = Net Profit/ Total Assets*100

73.50%

TIME ACTION PLAN ACTIVTITY

MONTH

OPERATIONS OF HOME ESSENTIALS

ACTIVITY

DECEMB J A N U A FEBRUA M A R C A P R I J U N J U L AUGUS SEPTEMB O C TO B NOVEMB

MAY E ER RY RY H L Y T ER ER ER

DESCRIPTION

WORK BREAKDOWN STRUCTURE TIME DESCRIPTION TIME TYPE DEPENDANT Idea generation (of 1 month Sequential To Te=(To+(4Tm)+Tp)/6)

Tp Tm 4Tm {(Tp-To)/ diversification

Variance=

of Forest Essentials) B Need gap analysis 1 month Parallel 6} C Secondary Research28 (About month 120 B A Idea Generation 35 1 30 30.50 Parallel 1.17 Need gap analysis the brand, Market size,

Growth rate, etc) 27 35 30 B Need gap analysis 120 30.33 Parallel 1.33 D Environmental Scan (PEST, 2 month B,C SWOT , Competitors, Players Research

1.17

Secondary Research C Secondary 28 35 30 120 30.50 in the market, Products being offered etc)

ACTIVITY Idea A Generation

55 D Environmental Scan 70 60 240

Environmental Scan

Primary Research E Primary Research 56 70 60 240

Place & Rentals 35 28 30 F Place & Rentals 120 Construction of the E Research (visiting 2 month Primary

store G Construction of the store 58 70 60 240 customers, competitors, acceptance rate, Brand Supply Chain & H S u p p l y audits) Chain & 28 34 30 120

Warehouse Warehouse

Merchandise Mix I Merchandise Mix 58 70 60 240

Pricing 28 34 1 30 J Pricing 120 F Place & Rentals month (Site selection(in

Marketing Plan New K

Delhi), Meeting with55 mall 70 Marketing Plan

60

240

people, Site approval, Recruiting personnel L Recruiting Negotiations, personnelLegal & 28 34 30 120 ) of the store

&GTraining Training formalities Construction 2 month (Ambience, M Financial Plan 27 35 30 120 overall look,

Financial Plan fixtures, furniture, lighting, design and layout) 8 10

N

Launch E.B.O.

Launch E.B.O.

H

12

40

550

60.83

61.00

30.50

61.33

Parallel

2.50 2.33

-1.17

2.00

61.33

30.33 Sequential

2.00

1.00

30.33

60.83 30.33

Parallel 30.33

1.00

B,C,D

2.50 1.00

1.33

F

10.00

0.67

558.50

Sum of Variance=

2 Standard1 Deviation = √∑[variance] = 7.30 Supply Chain & Warehouse month Sequential Z= Due date-Expected date/Std dev. = 1.16 (meeting vendors, deciding

F

MONTH December

Variance

December

December 1.36

1.78

1.36

6.25

5.44

1.36

December

January January

4.00

1.00

6.25

1.00

1.78

0.44

4.00

February

1.00

March

March

LAUNCH 37.03 I N WEEK2

April May

NPQ:

N (NO. OF POPULATION):

Delhi’s population= 16753235

5% of 16753235 = 837661.75 ; 30% of 837661.75 = 251298.525

∴ N = 251298.525

P (Average price of the product):

∴ Avg Price(P)= Rs1975

∴ Q = 4

NxPxQ = 251298.525 * 1975 * 4

NPQ = 1,985,258,347

CONCLUSION Forest Essentials diversification into Home Furnishings will be a successful and a profitable venture.