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Brio Business Plan

Brio Business Plan

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Published by monuab

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Published by: monuab on Dec 04, 2009
Copyright:Attribution Non-commercial


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rio stands for happiness, vigor, vivacity and mostimportant, it stands for life. It also happens to be LG’snew retail initiative along with @home.Established in 1997, LG Electronics India Pvt. Ltd., is awholly owned subsidiary of LG Electronics, South Korea.In India for a decade now, LG is the market leader inconsumer durables and recognized as a leadingtechnology innovator in the information technology andmobile communications business. LG is theacknowledged trendsetter for the consumer durableindustry in India with the fastest ever nationwide reach,latest global technology and product innovation.@home, A Nilkamal Limited enterprise provides world-class furniture, furnishings, accessories, lights,kitchens, flooring, decorative wall finishes and more.According to ‘The Rise of The Indian Consumer Market’(A McKinsey report), the Indian consumer market ispredicted to grow four times by 2025. As of September2009, India continues to be among the most attractivecountries for global retailers. With a worth of US $ 511billion in 2008 the retail market is larger than ever andcontinues to draw both global and local retailers.Changing lifestyles, higher disposable income, greaterproduct awareness, affordable pricing and a surge inadvertising have been instrumental in changing thepattern and amount of consumer expenditure in Indiawhich has led to the robust growth of the consumerdurables industry. The Indian consumer durables sector is estimated to beRs. 41,500 cr as of November 2009.Keeping this in mind and with the results of the primaryand secondary research conducted on consumerperception of LG, there was a need felt to come up withsomething new. Apart from having its presence invarious electronic megastores, LG also has its exclusiveretail stores and which extend to loyal customers be itfor the products or services. Along with its currenttarget audience, LG wants to cater to a higher incomegroup in a different way, increasing its visibility andimproving its perception in the process.And thus, Brand Brio was born. Through this novelundertaking, Brio aspires to give its customers adistinctive shopping experience. Its offerings includethe entire LG product range as well as the classy andelegant home decors by @home, thus providing arefreshing mélange of quality technology consumerdurables along with tasteful home furnishings. Theobjective is to empower the customer throughcustomization, where they have the option to choosetheir own combinations of home electronics and
Business Plan for Brio-An LG InitiativePage 1
furnishings. They can walk into the store and either buya single LG product or order an entire livingroom/kitchen set up.After its successful shoppes and exclusive stores, LGnow proposes to set up a retail chain in association withthe high end home lifestylebrand (@home) so as to distinguish itself from itscompetition by integrating superior technology andquality home furnishings in order to provide consumerswith futuristic solutions to their living environment. Thisinnovative venture will help strengthen its hold in theretail market and better the brand perception in theminds of the consumers. Brio is committed to providingquality with affordability. The ultimate objective of Briois thus to build long-lasting relationships with itscustomers through a unique and satisfying experienceof LG’s innovative products and services.Brio aims to target various demographic,psychographic, geographic, behavioral and sequentialsegments which have been mentioned in detail as theplan progresses. It also intends to exceed itscompetition and stand apart from the other consumerdurables retail outlets. It seeks to create a niche foritself in the retail sector.Brio will go all out in its promotions pre, during and postits launch, making optimum use of the appropriatemedia platforms. It will have competitive pricing withexciting and regular combo offers and freebies.In the short term, Brio intends to have two stores, oneeach in Mumbai and New Delhi. Depending on thesuccess of these stores, itwill later venture out into the major metros making itspresence felt in all parts of the country. LG hasmanufacturing units at Ranjangaon, Pune and atGreater Noida. Thus sourcing the products will not be aproblem. @home goods will be sourced from thenearest stockist available or from their flagship stores if the need arises. It will follow the producer to customermethod of distribution.Brio will be headed by the Vice President, Retail, LGwith a team of efficient and dedicated professionals. Itwill also be equipped with an Advisory Board. Thestartup expenditure for Brio is estimated to be around20 lakh (please see financial plan for details).Please read through the entire business plan for abetter understanding and a detailed report on Brio.
Business Plan for Brio-An LG InitiativePage 2
A T Kearney’s 8
Annual Global Retail DevelopmentIndex (GRDI) of 2009 ranked the Indian market as themost promising emerging market for investment in theretail sector. The contribution of the retail trade in thecountry’s GDP which was between 8-10% in 2007 isnow around 12% and is estimated to reach 22% by2010.According to ‘The Rise of The Indian Consumer Market’(A McKinsey report), the Indian consumer market ispredicted to grow four times by 2025. As of September2009, India continues to be among the most attractivecountries for global retailers. With a worth of US $ 511billion in 2008 the retail market is larger than ever andcontinues to draw both global and local retailers.According to the Department of Industrial Policy andPromotion (DIPP), Foreign Direct Investment (FDI)inflows as of July 2009 in single brand retailing stood atapproximately US $ 46.60 million.Being a country with high growth rates consumerspending rose an impressive 75% in the last four yearsalone. One of the main reasons for this is the significantincrease of the disposable income among the youthpopulation.
Business Plan for Brio-An LG InitiativePage 3

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