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_Group10_HiFashions

_Group10_HiFashions

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Published by Puneet Rastogi

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Published by: Puneet Rastogi on Sep 04, 2012
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05/13/2014

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Hi Fashions Case Analysis

Haryana and Rajasthan. Punjab.OBJECTIVES 1) To capture 2% of the total market and 5% of the T-shirt market in 6 months ranging from Sep 2011 – Mar 2012. 3) To target market in Delhi. 2) To capture 6% of the total market and 10% of the T-shirt market in 12 months ranging from Apr 2012 – Mar 2013. .

58 (55%) S&M 0.15 (30%) L & XL 0.2106 (20%) 100 & 110 2) VESTS (1.055) .5265 (50%) 80 & 85 0.35 (70%) S&M 0.053) 3) BRIEFS (1.5) 0. ITEM (MILLION UNITS) 1) T-SHIRTS (0.RECOMMENDED PRODUCT MIX ASSUMPTIONS 1) Product Mix has been designed based on the contribution margins of the items.316 (30%) 90 & 95 0.475 (45%) L & XL 0.

retailer and customer. 3) Can explore the option of e-commerce. B) DURING PERIOD APR 2012 – MARCH 2013 1) Traditional channel of distributor. 2) Aggressive selling through branded retail stores. 2) Through some branded retail outlets.RECOMMENDED CHANNELS OF DISTRIBUTION ASSUMPTIONS : 1) Volume of units is derived from growth rate of individual units 2) No. . retailer and customer. A) DURING PERIOD SEP 2011 – MARCH 2012 1) Traditional channel of distributor. of outlets to be opened is based on average sale from those outlets.

2) Other option is to offer some share of profits company is fetching from its modern distribution channels to its old distributors. situation can create further conflicts between company and branded retail outlets. 2) If company decides to go for e-commerce considering high levels of demand for branded apparel among the young savvy urban youth. .CHANNEL CONFLICT POSSIBILITIES 1) One set of conflict can arise when the company decides to explore the option of selling through branded retail outlets along with the conventional distribution systems. SOLUTIONS 1) One way to handle conflict situation is to allow your old distributors and retailers to fetch more margins by lowering your ex-factory price.

000 50.000 0 50.000 0 40.EXISTING PRODUCTION CAPACITY Targeted T-shirts & Vests Produced Lag Total 50.000 40.000 Briefs 40.000 .

EXISTING ORGANIZATIONAL STRUCTURE CHART Managing Director VP Manufacturing VP Marketing VP Finance Department Head Production Manager Maintenance Manager Quality Control Manager Supervisor(3) Supervisor(1) Supervisor(1) Workmen(15) Workmen(5) Workmen(3) .

12 million units. .  Existing capacity of Briefs has to be increased by 8402 dozens per month to match demand of 6.CAPACITY EXPANSION  Company need to increase its present production capacity to 63334 dozens per month of T-shirts and Vests to match demand of 9.97 million units.

. of Briefs is being produced by 15 workers under production.000Dozs. 5 workers under maintenance and 3 workers under quality control. • The increase in capacity will be used to produce T-shirts & Vests as projected by the new figures calculated along with the increased requirement of Briefs. . • The existing capacity is being used for production of Briefs only.000Dozs of T-shirts & Vests „or‟ 40.ASSUMPTIONS • The given production capacity of 50.

completing the production requirement. • Another 2 workmen have been added for Maintenance of the extended production. . • We have increased the Quality Control Workforce by 2 workmen to fulfill the increased production requirement.REVISED MANPOWER PLANNING • The new calculated production capacity for T-shirts & Vests as projected needs 63334 more dozen units. Of Briefs as well. we have employed 20 additional workers under production . • These 20 additional workmen will produce the required 8402 Dozs. For this.

REVISED ORGANIZATIONAL STRUCTURE CHART Managing Director VP Manufacturing VP Marketing VP Finance Department Head Production Manager Maintenance Manager Quality Control Manager Supervisor(7) Supervisor(1) Supervisor(1) Workmen(35) Workmen(7) Workme(5) .

PERMANENT JOURNEY PLAN • Costing • Production Planning • Stock • Distributor profile .

ASSUMPTION .

DISTRIBUTOR PROFILE • Producer-Distributor-Retailer-Customer: This can be explored as it is suitable for the producers with limited finance. right where the shopping takes place and most shopping decisions are made . This is mostly used for the products with widely scattered market. narrow product line and who needs expert services and promotional support of distributors. highlighting the importance of exploring opportunities “downstream”. Retailers meet and communicate with final customers personally at their stores. E-commerce explores the use of economies of scale and offers lower prices. • • . closer to the customer. This consumer interaction means that retailers can have a great influence in manufacturer brand equity.

Thank you .

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