Sai Gajjala, Tim Huffman, Sarah Meadows, Bruce Wayne Pepperfry Sai Gajjala, Tim Huffman, Sarah Meadows, Bruce Wayne

Overview Overview Recommendations Implementation Analysis Alternatives

Key Issues Combating local skepticism about online ordering. Competing with Ikea, Amazon, Flipkart. Developing new revenue channels. Implementing new and innovative strategies. Retaining a hold on the Indian home goods market. Take Pepperfry public. Overview Recommendations Implementation Analysis Alternatives

SWOT Analysis Strengths Weaknesses Opportunities Threats Efficiency in distribution Annual growth of business Delivery success rate & timelines Established online retail market Logistics & distribution channels Market knowledge Not profitable Relies on funding for growth Standardized rating system Personalized shopping experience Opportunities Threats Growth in e-commerce Distribution services for local vendors Achieve economies of scale Established market leaders Vast market promotions by Ikea Vastly internet illiterate market Overview Recommendations Implementation Analysis Alternatives

PESTEL Analysis Political Economic Social Technology Ethics Legal Good international relationships. Open to globalization Economic Growing market Social Individualized western influences Digital marketing growth through social media (social currency) Technology Growing technology market Smart devices E-commerce Ethics Local artisans Losing jobs to large companies Legal Following local regulations regarding expansion Establishing warehouses, fulfillment centers, distribution centers Overview Recommendations Implementation Analysis Alternatives

Recommendations Recommended Plan: Innovate & Compete Increase market share Ramp up to launch IPO Alternative 1: Partnerships Partner with Ikea & Amazon Increase finances through external distribution Alternative 2: Niche Marketplace Rental subscription plans Refurbished market place Overview Recommendations Implementation Analysis Alternatives

Recommended Plan: Innovate & Compete Key development areas: Studios Online market place Product lines Marketing Operations Research & development Overview Recommendations Implementation Analysis Alternatives

Implementation Timeline: Year 1 Studio development Leverage premium partnerships for in-studio showcase (curated). Start selling small décor and utilities in studios. Online development Develop in-home augmented reality modeling (integrated with existing 3D modeling technology). Standardized rating system (5 stars) Marketing Web Tutorials on interior design. Feature local carpenters on products & market; emphasis quality Increase TV ads to increase franchisee interest. Ramp-up social media marketing: contests for students Research & Development Begin geographic research for better franchise locations & distribution centers. Overview Recommendations Implementation Analysis Alternatives

Implementation Timeline: Year 2 Studio development Begin franchising 20 studios annually (goal). Set up computers to facilitate in-studio purchases with on-site representatives. Operations Create distribution centers near developing areas (near Delhi & Hyderabad) Raise $40 million in funding (series G) Overview Recommendations Implementation Analysis Alternatives

Implementation Timeline: Year 3 Research & development: Leverage rentals to get lifelong customers (data collection) Collect data to create curated furniture & décor collections. New product line development Start designing Small Space Living line for metro areas (Mumbai, Dehli, Kolkata) Expand market Operations Establish fulfillment center near high metro areas (near outskirts of Dehli) Overview Recommendations Implementation Analysis Alternatives

Implementation Timeline: Year 4 Operations Work towards purchasing small furniture stores, after geographic analysis. Encourage original owners to be franchisees (20 franchises /year goal) Stores are automatically curated. Overview Recommendations Implementation Analysis Alternatives

Implementation Timeline: Year 5 Launch Initial Public Offering (IPO) Overview Recommendations Implementation Analysis Alternatives

Historical Funding and Projection Overview Recommendations Implementation Analysis Alternatives

Profit Margin & CAGR Overview Recommendations Implementation Analysis Alternatives

Profit Margin Analysis Overview Recommendations Implementation Analysis Alternatives

Profit Margin Overview Recommendations Implementation Analysis Alternatives

Projections revenue profit GMV Overview Recommendations Implementation 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 revenue $ 341.00 $ 439.00 $ 992.00 $ 2,001.00 $ 2,580.00 $ 3,000.00 $ 4,000.00 $ 5,000.00 $ 7,000.00 $ 10,000.00 profit $ (542.00) $ (362.00) $ (1,255.00) $ (2,992.00) $ (2,486.00) $ (2,800.00) $ 500.00 $ 1,100.00 $ 2,000.00 $ 2,250.00 GMV $ 582.00 $ 642.00 $ 2,202.00 $ 5,122.00 $ 6,500.00 $ 10,500.00 $ 17,500.00 $ 32,500.00 $ 50,000.00 $ 60,000.00 Overview Recommendations Implementation Analysis Alternatives

Alternative 1: Partnerships Amazon & Ikea’s market Capital for marketing International growth potential Potential to lose foothold in India Losing brand value Ikea & Amazon have mass-markets & capital However, they do not curate. Partner with Ikea & Amazon to be their Premium Partner to provide them with curated product lines. Overview Recommendations Implementation Analysis Alternatives

Alternative 2: Niche Market Collect data to create more curated design spaces Target future customers with rental subscriptions Expand into business layouts Limited market scope Limited clientele for expensive interior design services New market research ($) Focus on the future generation: Rental subscriptions Studio design collections Interior designer consulting Estimated annual salary: RS 100,000 ($1,666) Overview Recommendations Implementation Analysis Alternatives

Conclusion Overview Recommendations Implementation Studios Online market place Product lines Marketing Operations Research & development Analysis Alternatives Partnerships Niche Market Overview Recommendations Implementation Analysis Alternatives