Final PPT

1 I Godrej I Title of presentation I Date

Summer Internship Project Rashmi Ranjan Nath | XIMB


Project Description Identification of New Accessories for Godrej Interio Service Division


To improve profitability of Interio Service vertical

To identify new accessories, synergize to our existing products & create new revenue stream for service dept.

Mr. Irshad, Mr. Joshi , Mr. Anil Kumar

• Prepare exhaustive list of all probable accessories for all products available (B2B & B2C)

• Check the feasibility of supplying the accessories (manufacturing &trading potential) with consideration from all stake holders . Reduce the list to fewer probable

• Data acquisition for above probable accessories through customer survey . Subsequent statistical analysis to come at concrete recommendations

• Concept familiarization to Design team

• estimate the revenue potential of recommended products. Attributes development

Mr. F Khapoliwala

Time Lines

15.4-21.4 (1 Week)

22.4-29.5(8 Days)

30.5-15.5 (16 Days)

16.5-22.5(1 week)

23.5-29.5 (7 days)

Generate a net sales of 10 cr in 1 yr time frame .

Initiative

Description

Stage

Other involvement required

Activity Plan

Crack team leader Crack team sponsor

Estimate of Bottom Line Impact

Rationale

The scope of this PMO is to identify furniture accessories which can be sold as an independent item as well as complementary to our primary products/solutions.

Initial

Mr. Irshad


Accessory Market in

India

Drilling down from 30 to 15 Analysis Attributes

Demand Estimation &

Revenue Projections

Way forward

Furniture Market in India expected at USD 15 Billion by 2017@CAGR of 20%90% unorganized sectorGodrej Interio currently occupies 56% of organized market

Rough Estimate of 10% of total

furniture market

Accessory Market Potential : Rs 900

Crore

Method 2

Total Population 1250 Million

Urban India(33%) 410 MillionAbove 15 Yrs(64%) 252 MillionWorking class(90%) 227 Million

organized furniture Market(10%) 22.7 MillionPenetration Rate 30%

Accessory Market Size 6.8 MillionWeighted Average price of Acc Rs 2400

Accessory Market Potential Rs 1632 cr

Method 1

Target Segment Urban Indian

Working class (B1 category &

above)

Accessory Market in India


Accessory Market in

India


Demand Estimation &

Revenue Projections

Way forward

Ideation from visits to local markets & Internet search

Exhaustive list of 30 Accessories

Finalizing final 15 Accessories ( 10 B2C &

5 B2B)

Preparing Questionnaire for

survey

Rationale

Identification of accessories that fit within Godrej Interio Product portfolio

Focus more towards subcontracting & reducing traded items

Orientation more towards utilitarian value than aesthetic value

Drilling down from 30 to 15


Accessory Market in India


Demand Estimation &

Revenue Projections

Way forward

PLS MGH DAT TL BSM

MBT Mirrors SCT Soap Dispenser Multipurpose Rack

B2B Accessories 1. Partition Plates 2. Dustbin Ranges 3. Leather Desk Accessories 4. Green Boards 5. Monitor Arm

B2C Accessories


Accessory Market in

India


Demand Estimation &

Revenue Projections

Way forward

Survey Statistics

Questionnaire captured demography, accessory preference , price points of customers.

Participation of 97 B2C customers from Showroom

Mean Age of Customer : 39.45 Yrs , Std Dev : 9.2 Yrs

Mean Time spent at work : 10. 06 Hrs , Std Dev : 3.09 Hrs

9%

21%

70%

Customer Break up

Bachelor M MWK

Analysis


Accessory Market in

India


Demand Estimation &

Revenue Projections

Way forward

Accessory Frequency Map

Acc Name

P1 Freq P2 Freq P3 Freq P4 Freq P5 Freq P6 Freq Total % of Sample

PLS 49 11 5 2 0 0 67 69%

MBT 27 32 14 3 0 0 76 78%

MR 2 11 15 15 0 0 43 44%

TL 7 24 22 2 2 0 57 59%

DAT 0 2 9 2 1 0 14 14%

SCT 1 3 7 6 4 1 22 23%

SD 0 2 3 14 2 1 22 23%

MGH 8 7 4 6 2 1 28 29%

BSM 2 2 4 5 1 1 15 15%

M 0 2 2 5 4 0 13 13%

Total 96 96 85 60 16 4


Accessory Market in

India


Demand Estimation &

Revenue Projections

Way forward

1000-1999

2000-2999

3000-3999

4000-5000

0

5

10

15

20

25

30

35

40

45

13

41

11

2

PLS Price

Frequency

Cost Price : Rs 2000

400-999

1000-

1999

2000-

2999

3000-

3999

4000-

5000

05

101520253035404550

8

50

15

2 1

MBT Price

Frequency

Cost Price : Rs 600


Accessory Market in

India


Demand Estimation &

Revenue Projections

Way forward

400-999

1000-

1999

2000-

2999

3000-

3999

4000-

5000

0

5

10

15

20

25

30

35

7

33

02 1

MR Price

Frequency

New Prod-uct

400-999

1000-

1999

2000-

2999

3000-

3999

4000-

5000

0

5

10

15

20

25

30

4

14

30

90

TL Price

Frequency

TL

Cost Price : Rs 2000


Accessory Market in

India


Demand Estimation &

Revenue Projections

Way forward

Accessory Categorization

Living Room Bed Room Study/Dining

Padded Leg Rest Stool Multipurpose Bed Trays Task Lights

Multipurpose Gadget Holder

Padded Leg Rest Stool Multipurpose Racks

Multipurpose Rack Bed Side Décor Mats Stationary Trays

Task Lights Mirror Sets Dining Accessory Tray

Multipurpose Bed Trays Soap Dispenser

Type of Accessory = ƒ( Hrs spent at Work, Marital Status , Willingness to spend time at favorite room )• Hrs spent at work : Actual Need• Marital Status : Latent Need• Willingness for fav room : Perceptual need


Accessory Market in

India


Demand Estimation &

Revenue Projections

Way forward

Recommendations

MBT @ Rs 2000

MR @ Rs 2000

TL @ Rs 3000

PLS @ Rs 3000


Accessory Market in

India


Demand Estimation &

Revenue Projections

Way forward

B2C(Home) B2B(Office) Complementary to

• Working men• Working

women• House wives• Teenagers• Older citizens

• Executives• Doctors• Govt

Officials

• Sofa Sets• Premium

Suites(B2B)• Desking

Solns • Bed Sets

Padded Leg Rest Stool

Utility Tentative Features Place of utility

• Leg rest• Temporary

sitting

• Short compact structure• Strong enough to support

70 Kg wt• Good upholstery • Foldable & Light weight

• Living room • Bedroom• Study/Auxiliary room• Office Suites• Office cubicles• Corporate waiting rooms

Attributes


Accessory Market in

India


Demand Estimation &

Revenue Projections

Way forward


• Working men• Working women• Children• Older citizens• Teenagers

• Executives• Hospitals• Schools• Private

Tutors

• Green Board (B2B)

• Hospital Beds(B2B)

• Desking Solns (B2B)

• Bed Sets• Sofacum beds

Utility Tentative Features

Place of utility

• laptop stand • Tray for

eating in beds • Board for

writing • Angle stand

for Tabs/I-Pads/Laptops to watch movies

• Short compact structure

• Upholstery on edges

• Foldable & Light weight

• Slot for Coffee holder

• Living Room• Bedroom• Study/

Auxiliary room• Office Suites• Office cubicles• Hospital Beds

Multi Purpose Bed Tray


Accessory Market in

India


Demand Estimation &

Revenue Projections

Way forward

B2C(Home) Complementary to

• Working men• Working women• House Wives • Older citizens• Teenagers• Frequent Travelers• Children

• Sofa Sets• Bed Sets• Sofacum beds


Place of utility

• News paper/Magazine Rack

• Portable Short Study table

• Accompanied to trips

• Consumes very less space

• Short compact structure


• Slot for Coffee holder

• Adjustable heights

• Living room • Bedroom• Study/Auxiliary

room• Picnics/

Beaches

Multi Purpose Rack


Accessory Market in

India


Demand Estimation &

Revenue Projections

Way forward


• Working men• Working women• Older citizens• Teenagers

• Executives• Doctors• Govt Officials

• Premium Suites(B2B)

• Desking Solns (B2B)

• Bed Sets• Sofacum beds• Study Tables• Workstations


Place of utility

• Reading accessory

• Portable • Consumes

very less space

• Standard dimensions


• Can be rotated in any angle

• Intensity of light can be varied

• Battery operated

• Bedroom• Study/

Auxiliary room• Office Suites• Office Desks

Task Lights


Accessory Market in

India


Demand Estimation &

Revenue Projections

Way forward

Assumptions : 1. Products to be launched on 3rd quarter this year

2. Accessories are sold as complementary products

3. Accessory conversion rate is 30%

4 month Moving Average method used to Forecast demand

8 Quarter sales data used to estimate demand for 3rd & 4th quarter of FY 2014-2015

Parent primary products for PLS,MBT,MR are same.

0.3*0.25*D) (

(

Acc Name

P1 Freq

PLS 49

MBT 27

MR 2

TL 7

DAT 0

SCT 1

SD 0

MGH 8

BSM 2

M 0

Total 96

Demand Estimation &

Revenue Projections


Accessory Market in

India


Demand Estimation &

Revenue Projections

Way forward

0 1 2 3 4 5 6 7 8 9 10 11 12 130

2000

4000

6000

8000

10000

12000

14000

16000

Series1; 11135

9473

1320413416

91099865

12853

11300

Trend Analysis of Parent Products of PLS,MBT.MR=Sofa sets, Bed sets

4M MV AV Sales Data

Quarters

Sale

s V

olum

e


Accessory Market in

India

Drilling down from 30 to 15

Analysis Attributes

Demand Estimation &

Revenue Projections

Way forward

0 1 2 3 4 5 6 7 8 9 1010200

10400

10600

10800

11000

11200

11400

11600

11800

12000

11807

11301

11399

11311

10782

11200

f(x) = 11911.5134641635 exp( − 0.0117909525105895 x )R² = 0.567980504608338

4M MV AV Q11 Forecast 10822

Q12 Forecast 10693

AccQ11

DemandQ12

Demand Total

PLS 560 553 1113

MBT 633 626 1259

MR 357 353 710

Total 1550 1532 3082


Accessory Market in

India


Demand Estimation &

Revenue Projections

Way forward

0 1 2 3 4 5 6 7 8 9 10 11 12 130

2000400060008000

10000120001400016000180002000022000

Series1; 16318

13509

15858

13051

1258415356

12130

Trend Analysis for Parent primary products to TL=Bed sets, Study Tables, Work stations

4M MV AV Sales Volume

Q11 Forcast 12672

Q12 Forcast 12042

Q11

Demand Q12 Demand

TL 561 533

Total 1094


Accessory Market in

India


Demand Estimation &

Revenue Projections

Way forward

0 1 2 3 4 5 6 7 8 90

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

22000

Series1; 16934

16117

15886

15761

13280

13338

f(x) = 18108.8895052396 exp( − 0.0509222215298365 x )R² = 0.846351593131538

4M MV AVAccessory Price(Rs)

Revenue Projection(Rs)

PLS 3000 3,340,203.75

MBT 2000 2,517,255.00

MR 2000 1,419,990.00

TL 3000 3,280,783.50

Total

10,558,232.25

Annual Projected Revenues : Rs 1.7- 2 Cr


Accessory Market in

India


Demand Estimation &

Revenue Projections

Way forwardWay forward

Detailed Survey capturing customer preferences on attributes, color , material, size of new products

Conduct a conjoint Analysis ( 4X4 matrix)

Sample Designs of 5-6 variants & Brain storming with suppliers

Prototype Development & Test Marketing

Go To Market Strategy/ Marketing & Sales Plan

Modifications & full scale launch

Final PPT

Documents

Transcript of Final PPT