Need Gap The customer who wants to wear western wear is looking for variety and a wide range of such apparels. Consumers today demand a traditional yet contemporary look for their ensembles. The products have in turn adopted this theory to give out fresh designs and prints to the closet. Women’s wear has undergone a drastic transformation & now people have become more experimental and want a combination of both ethnic and western wear. Popular brands like fabindia, W, Anokhi have western clothing with indian prints but lack modern prints and variety. MEZCLA is providing customers a young fashion wear in wide variety by fusing the western silhouettes & Indianising the same with the use of indian & traditional prints. http://retail.franchiseindia.com/magazine/2008/november/Ethnicity-personified_22-2-5

Market potential Currently, India is the second largest country in the world after China in terms of a population of 1.15 billion. Between 2010-2030, India will add 241 Million people in working-age population Demographic - 50% of its population is below the age of 25 and more than 65% hovers below the age of 35. The Young and working population of India is the biggest positive factor for India and its growth in coming years The Indian women apparel market has undergone a transformation over the past few years--- changing fashion trends, rising level of information and media exposure Entry of large number of foreign brands have given the industry a new dimension. In 2010, the market size of western wear is more than Rs.42,180 Crore, an increase of 14% from 2007. With the growing presence of organized retail and rapidly spreading mall culture, the industry is all set to grow further in the future, according to "Women Wear Market Forecast to 2010” Increasing at a CAGR of over 17%, the women's apparel market is expected to cross Rs. 61,000 Crore by 2010. Branded women’s apparel market is projected to rise at a rate close to 25% and surpass Rs. 18,000 Cr. by 2010. Premium segment apparel is forecasted to account for close to 20% of the total women’s apparel market by 2010. http://www.articleshub.org/article/7000/Women-Wear-Market-Forecast-to-2010.html http://en.wikipedia.org/wiki/Demographics_of_India

inventory western silhouettes female young Indian prints personification western silhouettes female young Indian prints traditional yet modern vibrant colours experimental confident lively and vibrant jugalbandi smart and trendy outgoing ambitious charismatic trendy dresser lives life to the fullest stylish innovative

Promoting Indian crafts and weavers in its products Competitor Analysis 2 categories in women wear WOMEN INDIAN – Long kurtis, short kurtis, supershort kurtis and churidars( core products) Target customer- 21 years and above WOMEN WESTERN- semiformal, skirts, dresses, tunics, trousers, short kurtis in western styles( core products) Target customer- 18 years and above Price range- Rs 560- Rs 1190 ( basic garments) Rs 1200- Rs 2490 ( fashion basic) Rs 2500- 4000 (fashion garments) USP OF FABINDIA Promoting Indian crafts and weavers in its products

supply chain of fabindia SUPPLY CHAIN- north region 100 – 200 weavers 17 SRC vendor Amritsar, Ranjit Avenue Bhopal, TT Nagar Chandigarh, Sector 9C Dehradun, Rajpur Road Indore, M.G. Road Indore, Treasure Island Mall Jalandhar, Urban Estate Karnal, Jarnali Colony Ludhiana, Mall Road New Delhi, Connaught Place New Delhi, CP2 New Delhi, DIAL New Delhi, Dwarka New Delhi, GK1 N14 New Delhi, Green Park New Delhi, Khan Market New Delhi, North Campus New Delhi, Rajouri Garden New Delhi, Select Citywalk Panchkula, Sector 9 Patiala, New Leela MRW1 End consumer SRC- SUPPLY REGION CHANNEL ( 17 ) MRW- MARKET REGION WAREHOUSE ( 9 )

brand audit of fabindia WHAT ELSE COMES TO YOUR MIND WHAT SPRINGS TO YOUR MIND OTHERS WEARING IT SELF IMAGE MEMORIES SIMILAR BRANDS HUGE VARIETY PRINTS CLASSY ETHNIC WEAR MODERN INDIAN COLOURFUL CASUAL KHADI INDIAN COLOURS MIX MATCH COTTON BLUE COLOUR KURTA RELIABLE MODERN INDIAN TOUCH BROWN PAPER BAG REASONABLE PRICES MIX MATCH THE NEW RANGE INDIAN GOOD CHOICE SENSIBLE BUYING KNOWN BRAND JEALOUS STYLISH INTELLIGENT CULTURED SIMILAR TASTES SMART INDIAN AT HEART CONFIDENT SMART MODERN CLASSY SATISFIED FEEL AT EASE DIFFERENT CLOSER TO HOME GRACEFUL POSITIVE FIRST SALARY GIFT GIFTS GOOD EXPEREINCE COLLEGE DAYS SHOPPING WITH FRIENDS BUYING SIMILAR OUTFITS REGULAR SHOPPER GOOD ATMOSPHERE SHOPPING FOR SPECIAL OCCASSIONS NONE BIBA HAS NO COMPETITOR W ALL ARE SIMILAR ANOKHI FABINDIA HAS THE MAXIMUM VARIETY FABINDIA IS ONE OF A KIND COTTONS WELL ESTABLISHED BRAND GOODTHINGS  

SWOT ANALYSIS Weakness Strength Opportunity Threats Wide variety of prints that are not available with various other competitors. Blend of two cultures under one roof. keeping the culture alive Keeping the consumer close to her roots. Weakness In some parts of India like Bihar, the acceptance for such clothes is less, so there is a possibility that this concept would not be accepted by many people in such cities. There is no prior business experience in this field Opportunity Less competitors Increasing inclination towards WESTERN look Untapped market clothing in vogue Increasing disposable income with youngsters People more fashion conscious, experimental To go global Threats Can be a fad Competition from unorganized market that provide such apparels at cheaper prices Competition from established and known brands among the customers like Anokhi and Fabindia Duplicity of prints and styles Competition from boutiques

DILO WEEKDAY Wake up 6.30-7.00 am Go to bed 11-1 am RADIO MOBILE COLGATE HT DOVE 93.5 FM LUX PANTENE NIVEA GARNIER LOTUS KELLOGES BODYSHOP NESTLE AMUL KISSAN NESCAFE TAJ TIMES MAC LAKME LOREAL REVLON COLORS MTV FACEBOOK GOOGLE ORKUT FEMINA COSMO VOGUE DELHI TIMES NEWS VH1 RADIO NEWS- PAPER MOBILE Wake up 6.30-7.00 am Go to bed 11-1 am MTV RADIO MOBILE MUSIC PLAYER IPOD INTERNET MAGAZINS GET READY PRAY TO GOD HAVE BREAKFAST PICK LUNCH REST SIT WITH FAMILY CHAT GET READY FOR NEXT DAY NESCAFE NESTLE DETTOL GARNIER PVR CCD MOCHA MUSIC MTV HBO NDTV GOOD TIMES RADIO MOBILE HOARDING MUSIC PLAYER CDs IPOD APPLE 93.5 FM SAMSUMG BLACKBERRY NOKIA ADS- LIFESTYLE PRODUCTS Leave for work 8.00-8.30 am TRAVEL- CAR AUTO OFFICE BUS CARPOOL Dinner 9-10 pm DILO WEEKDAY REST EAT HANG OUT- MOVIE HALL COFFEE JOINTS WORK TEMPLE- TUESDAY, THURSDAY TV MOBILE IPOD INTERNET Leave from work /college 4.30-7.30pm RADIO MOBILE HOARDING MUSIC PLAYER CDs IPOD FACEBOOK GOOGLE CCD BARISTA SUBWAY BISLERI KENLEY Reach at 9 -9.30 AM INTERNET MAGAZINES BOOKS MUSIC MOBILE MC DONALDS SUBWAY LAYS COKE PEPSI APPLE 93.5 FM ADS- LIFESTYLE PRODUCTS CAR AUTO OFFICE BUS CARPOOL TAKEAWAY CLASS WORK LUNCH- CANTEEN FOOD JOINTS

DILO WEEKEND Wake up 9- 10.30 am Go to BED 11.30-1.30 TV RADIO MOBILE COLGATE HT DOVE 93.5 FM LUX PANTENE NIVEA GARNIER LOTUS KELLOGES BODYSHOP NESTLE AMUL KISAN NESCAFE TAJ TIMES MAC LAKME LOREAL REVELON PARACHUTE COLORS MTV FACEBOOK GOOGLE ORKUT FEMINA COSMO VOGUE DELHI TIMES NEWS VH1 RADIO NEWS- PAPER MOBILE MAGAZINE TV Wake up 9- 10.30 am Go to BED 11.30-1.30 TV RADIO MOBILE MUSIC PLAYER IPOD INTERNET MAGAZINES HAVE BREAKFAST RELAX SIT WITH FAMILY LUNCH REST SIT WITH FAMILY CHAT WORK leave with friends- 4-5 PM RADIO MOBILE HOARDING MUSIC PLAYER CDs IPOD APPLE 93.5 FM SAMSUMG BLACKBERRY NOKIA ADS- LIFESTYLE PRODUCTS NIGHT OUT- 11 ONWARDS CLUBS DISCOs BARS LOUNGE F-BAR AGNI QBA AQUA TRAVEL- CAR AUTO CARPOOL METRO Dinner with family 9-11 pm HYATT SIDDHARTHA PUNJABI BY NATURE MAINLAND CHINA RADISSON DILO WEEKEND MOBILE IPOD RADIO AT HOME RELATIVES 5 STARS RESTURANTS TEMPLE- SATURDAY GURUDWARAS Leave For home 7- 8.30 pm RADIO MOBILE HOARDING MUSIC PLAYER CDs IPOD BIG CHILL MOCHA BARISTA PVR SELECT CITY AMBIENCE PROMENADE Reach at 5 6 PM INTERNET MAGAZINES BOOKS MUSIC MOBILE BANNERS APPLE 93.5 FM 98.3 FM ADS- LIFESTYLE PRODUCTS CAR AUTO CARPOOL FOOD JOINTS MOVIE MALLS CAFÉ s

CUSTOMER INSIGHTS EXPERIMENTAL SMART CONFIDENT TRENDY EARLY ADOPTORS LOVE TO SHOP- MALLS, HIGH STREET LIKE TO ACCESSORIZE SPEND TIME WITH FAMILY BELIEVE IN GOD LIKE CELEBRATING INDIAN FESTIVALS HANG OUT WITH FRIENDS WORSHIP AT TEMPLES & GURUDWARAS FASTING ON VARIOUS OCCASSIONS BRAND AWARENESS LIKE TO LISTEN TO ALL KINDS OF MUSIC SMART CONFIDENT WANT TO LOOK YOUNG LOVE COLOURS LIKE TO DRESS WELL EXPERIENCERS- energy, spent heavily on clothing, music EARLY MAJORITY FEEL YOUNG BRAND CONSCIOUS INDEPENDENT FOLLOW LATEST TRENDS SPENDS WEEKENDS WITH FAMILY AND FRIENDS READS MAGAZINES- VOGUE, FEMINA NIGHT PARTIES WITH FRIENDS AND COLLEAGUES CUSTOMER INSIGHTS

TARGETING TARGETING Demographics Geographics Psychographics Behavioral DELHI, MUMBAI, KOLKATA, PUNE, CHANDIGARH, HYDERABAD, BANGALORE & MANIPAL etc. INTERNATIONAL MARKET-UK- london Demographics AGE- primary target 18-24, secondary target 25-31 YEARS GENDER- FEMALE INCOME- 1 LAC & ABOVE PER MONTH OCCUPATION- STUDENTS, WORKING PROFESSIONALS Psychographics ATTITUDE- EARLY ADOPTERS, EXPERIMENTAL, TRENDY, POSITIVE OUTLOOK, EARLY MAJORITY, EXPERIENCERS INTEREST- FOND OF READING FASHION MAGAZINES, LISTENING TO MUSIC , LIKE TO ACCESSORIZE , SHOP LIFESTYLE- SOCIAL, BUSY OPINION- OPINIONATED, SPEAK THEIR MINDS. RESPECT OTHERS OPINION Behavioral USAGE- MODERATE TO HEAVY BUYER READINESS- AWARE, INFORMED, POSITIVE BENEFITS SOUGHT- CASUAL WEAR, MODERN YET INDIAN FEEL TO THE GARMENTS TARGETING

BRAND PRISM Physique Personality Western silhouettes, logo, Indian prints , Colours Personality Funky, cool, confident, Independent, experimental Culture Jugalbandi, blend Relationship bridging the gap To bridge the gap between Indian and western culture by providing a blend of both to young women in an innovative style Talking abt the physique of mezcla… Self Image Thats the way I am Reflection This jugalbandi is cool

CREATING PRODUCT DIFFRENTIATION GOOD QUALITY FABRIC, NICE FIT, POSITIONING POP GOOD QUALITY FABRIC, NICE FIT, POD ONE STOP SHOP INHOUSE STYLIST PRINTS POSITIONING STATEMENT To young and vibrant fashionistas who are attached to their culture, mezcla is an apparel brand that gives them a one stop shop for the most stylish and trendy blend of both the western and Indian cultures to achieve their aspired look.

USP OF Mezcla COLOURS & PRINTS IN-HOUSE STYLIST VAST VARIETY OF SUCH CLOTHING UNDER ONE ROOF INDIAN PRINTS ON WESTERN SILHOUETTES IN-HOUSE STYLIST USP OF Mezcla

Mezcla product mix

Brand Architecture Basics Fashion Basics Fashion Merchandise Tops Bottoms Layering Dress

Mezcla basic top-costing Basic Top (cost per unit) Direct Cost Fabric 1 40 Rs/mt Count 60s Width 42" Linear Weight 190 GSM Total consumption per unit 1.75 mt (including wastage) Fabric 2 (Fabric 2 includes laces, zip ,buttons, velcro, shoulder pads, linning, etc ) 10 Rs /Unit Brand Label 3 Rs Wash care label 2 Rs Size label 1 Rs Packaging 10 Rs Total 96 Rs CMT CMT cost per unit 50 Rs (250/8=31.25 31.25x1.6) Finishing cost 10 Rs (20% of 50 Rs) Total Direct Cost 96+50+10=156 Rs Indirect Cost 16 Rs ( 10% of 156 Rs) Manufacturing Cost 47 Rs ( 30 % of 156 Rs) cost per unit 156+16+47=219 Rs SCM & Logistics cost 16 Rs(7% of 219Rs) 235 Rs Freight Cost 16.50 Rs ( 7% of 235 Rs) Total cost 251.5 Rs Vat (20%) 50.5 Rs LDP 251.5+50.5=302 Rs Total cost of good including all expenses and overheads 302 Rs MRP 830-981 Rs Retail Margin 63.6%-69.2% Mezcla basic top-costing

Mezcla pricing

Price Range of Mezcla Basics Top Bottom Fashion Basics Layering Fashion Merchandise Dresses 830-981 Rs 2354-2990 Rs 1190-2115 Rs 1240-2217 Rs 932-1161 Rs 2490-2990 Rs 3040-3990 Rs 1440-2790 Rs 2490-3990 Rs

Strategies adopted by mezcla Client Centered- Selling Strategy Market Coverage-Intensive Distribution Channel strategy- Pull Strategy Pricing Objective-Status Quo Pricing Strategy-Competitive

Place

Production house agreement DOMESTIC SUPPLY CHAIN Company send PO to production House End Customer Fabric lot provided by the order company Production will be monitored by the order company Khan market cp ambience Production House Sent for embellishment GIP.noida MILK RUN Semi-Finished Good Carton Loaded by Production House Naraina Warehouse CITYWALK, SAKET Carton Loaded by Company Production house agreement Company agreement Packing List Production house scans the file and makes a dispatch document of semi finished Goods Proper quality & quantity checks take place before receiving the goods Quantity List Lot Size Truck Receiver Quantity Size Commercial Invoice Price list Goods receive note

Maximum lead time- 90 days Interpreting from trend forecast agencies http://www.vogue.in/Trends?utm_source=Google&utm_medium=cpc&utm_campaign=GoogleAdwords http://www.fashiontrendsetter.com/content/color_trends.html Lead time-2-5 days Data retrieved from famous agencies like http://www.market-search.com/news01.html And marketing Department done Primary & Secondary Survey research Lead time-2-5days Consumer Research Inspiration Selecting Trends and create new ideas Consumer Feedback Ideation Trend ,Ideas & research handed over to design team Gupta Traders street No-67 Karol Bagh Lyallpur Instyle Lyallpur Fabrics Rajouri Garden Minimum lot size 300-500 mt Lead time 21 days(as per requirement ) Width 63 inch Prototype Approval Prototype sampling Fabric Sourcing Designing In-house approval by other department 1-2 days In-house In-house- 21 days Sobtis Gallery Ramesh nagar/ C L Export East patel nagar/ Kiran Export Arya samaj Road Uttam nagar Lead time 10-15days Production and finishing & labeling Semi-Finished Good Keep in warehouse Printing & art work Naraina In-house Lead time 4-7 days Quality checker will monitor the production process Order dispatch as per quantity required for the store In-house lead time 1- 2 days Retailer Embellishment, finished good Final Products Packaging Packaged Finished Good Lead time 1-2 days In-house Lead time 7-10 days Maximum lead time- 90 days End customer

1 12 2 10 9 3 11 13 14 4 7 5 6 8 Retailer Finance Department Managing Director Marketing & Sales Department Merchandising R & D IT & Documentation Administration/HRD Logistics & Transportation Finishing & Embellishment Finance Department Finding need Gap Analysis the market and consumer 1 Training Programme According to the Product Inventory management Documented all the transaction While sourcing The raw material Production System Packaging System Supply Chain System Design approved and dispatch for proto type making Finished good Ready in warehouse Budgeting & forecasting the financial condition Cost management Asset management Revenue generate Research and Design the product according to the need gap 12 Warehouse 2 10 9 3 Implement marketing strategy according to the product and consumer 11 Retailer 13 14 end customer Sourcing the raw material and make prototype and send for final approval 4 7 While production quality will monitor After final approval prototype go for production While production fabric is allot by order company 5 6 8 After production product go to finishing & embellishment department Production

global Matrix 1 2 3 4 5 2,800,000 2.5 million 265904 China 417559 countries Indian Population GDP Rental Highest Shopping Destination Holiday Destination Per Capital Disposable Income Trading partner System of taxation & Regulation Inclination Towards Indian Culture USA 2,800,000 14119050 m USD 1 2 $33,697 Canada give foreign investors unparalleled operational freedom Fond of Indian culture UK 2.5 million 2178856 3 $15,630 Less taxes on business .vat paid by customer Very fond of Indian culture, fusion clothing brand-monsoon Australia 265904 994246 4 5 $ 13,296 China Goods and services Tax (GST) Latest incidents of attack on Indians Singapore 417559 182231 m USD $ 9,603 Malaysia Easiest place to do business Not much inclination towards Indian culture Dubai 1126422 223874 m $14400 India No tax jurisdiction after FZE- free zone establishment More Muslim culture, less acceptance of modern clothing

UK Female population under the age of 15-64 years is 20,246,519 Highest demand in clothing sector is for women’s wear(53%) No franchise law. Code of ethical conduct is adopted while doing any franchise business Indians in UK constitute about 6% of the GDP and 4% of population The Monsoon brand in the UK works on similar concept as Mezcla. There are 400 Monsoon and accessories store in the UK .

LONDON British Indians are London's largest ethnic minority group (7%) More than 160 Indian MNCs The Indian migrants are very nostalgic about their parent country. Keen to maintain an active cultural and spiritual link to India. There are over 10,000 Indian owned businesses in London . The Indian community in London is very active culturally. It organizes cultural and religious festivals to maintain its ties with India. London offers an enormous variety of Indian shops selling specialist food, herbs and spices, clothes, accessories and services. Now home to 1,73,000 overseas nationals from India, London accounts for over a third of the United kingdom  total.

Kensington highstreet Kensington high street is the 2nd best shopping street in London, serving a wealthy area. There is an institute of Indian culture, Bhartiya Vidya Bhavan , for Indians living there Presence of famous Indian restaurants called Zaika, Ustav, Rasoi Kitchen Total of 350 brands in approximately 18000 customer visiting the shops per weeks. High density residential areas (Brent, Ealing and Hounslow) with 10,000 Indian people are next to this high street.

MONSOON In May 1973, the first Monsoon shop opened in Beauchamp Place, Knightsbridge, London. Monsoon Accesorize’s prestigious Head Office is located in Notting Hill Village, West London. Monsoon has expanded rapidly from its London base. Today there are over 400 Monsoon and Accessorize stores in the United Kingdom and over 600 throughout the world. In-house designed collection of unique classic pieces, that range from sophisticated evening to casual day wear, and combine feminine styling with exotic colour, beautiful fabrics and detailed finishing. MONSOON PRICES Dresses- RS 3240- 14400 Coats- RS 5760- 13000 Top- RS1800-3240 Trouser -RS 2880- 7200 skirts - RS2880- 5500

Mezcla promotion

Mezcla prelaunch- may HOARDING BANNER FACE OF MEZCLA NEWSPAPER-DELHI TIMES, FRONT PAGE, 4 ADS Allotted space in the news paper- 20x12=240 sq cm Prescribed day of publishing the advertisement Sunday( 4 week)- 3654240 Rs MAZAGINE- FEMINA & VOGUE, 2 ADS, FULL PAGE ( THICK PAPER, WITH HALF LAP) FEMINA AND VOGUE magazine Page –monthly edition -875000 Rs WEBSITE ON GOOGLE SEARCH ENGINE as Top priority website Total cost –605000 Rs INTRODUCING MEZCLA BRAND ON FACEBOOK , Mezcla face hunt Charge = 200000 Rs BANNER IN MALL -3 - 720000 Rs Hording on Flyovers in Delhi -3 -1326000Rs PROMOTIONAL SCARF-20000 scarves Cost per scarf- Rs 6, total= 120000 RADIO SPONSOR(93.5) – RJ Nitin of Red FM, 800 Rs for 10 sec Total- 300 sec Total cost =24000Rs M COMMERCE-10 lakh sms 4 times repetition in a month Total cost=80000 Rs HOARDING BANNER

All year round June, July, August NEWSPAPER, DELHI TIMES, PAGE 3 – 1 AD PER MONTH MONDAYS- 8*10 CM COST PER AD=132400 132400*11=1456400 TOTAL COST= 1456400 Rs FEMINA AND VOGUE INSERSIONS- 1 insertion in every alternate issue 5 INSERSIONS each in both magazine Total cost= 22.25 lakhs RADIO SPONSOR(93.5) - RJ Nitin of Red FM, the voice of Delhi’s morning show 800 Rs for 10 seconds 200*11=2200 2200*80=176000 Total cost= 176000 Rs M COMMERCE Mobile SMS = 1000000x.02=20000 Rs (www.nimbusitsolution.com) IN A MONTH= 1 repetition 11*20000=220000 Total cost= 220000 RIBBON CUTTING BY PRIYANKA CHOPRA- launch- JUNE cost to get Priyanka Chopra- 25 lakhs+ 5 lakhs 30 lakhs total cost= 30 lakhs+1 lakhs= 31 lakhs PROMOTIONAL UMBRELLAS - JUNE will be given for a month to all those who buy from Mezcla. total cost= Rs 88000

September, October, November December, January, February   FASION MERCHANDISE BY DESIGNER- august Autumn fashions by Wendell Rodricks Total cost= 15 lakhs December, January, February EVENT SPONSOR- December College fest Sponsor South Campus – 1 reputed College- JMC Total Sponsor funds=500000 Rs Total cost= 5 lakhs WADROBE SPONSOR- February Wardrobe Sponsor for Reality Show on Television- ROADIES- Rs 400000 Cost of Sponsor per Reality Shows = for one show ( Excluding Apparel and Accessories’ ) This 3-4 L cost for showing our name as a wardrobe sponsor in every 8 Min and every time after the break and announced in every 8 min by the anchor of the show. Total cost= 4 lakhs EVENT SPONSOR - February North Campus – 1 reputed College- Hindu Mezcla tongue twister Mezcla claims miss slips, miss slips claims Mezcla

March, April, may Fashion show BY MEZCLA- March Pass allows 2 persons Fashion Show- To launch spring collection Intended Invite media – Print media- The times of India, Hindustan Times, Femina, Vogue etc Ad media- NDTV, Times Now ,MTV, NDTV goodtimes Intended invite Designer-3 Cost of Invitation of designers-10 lakhs Place – Hyatt Regency Hotel Cost of Booking-12 Lakhs( including ramp, lights, sound) Cost of Models – 7 Lakhs( including choreography ) Cost of snacks and drinks – 6 lakhs Total cost- 30 Lakhs This invitation will be given to Loyalty card holder-300 Total cost= 35 lakhs ADVERTISING BUDGET =21853000 Rs total spent =2,12,69,640

Discount on 1 special day of each month JUNE Father’s Day JULY Parents Day AUGUST Independence day SEPTEMBER Teacher’s Day OCTOBER Gandhi Jayanti NOVEMBER Diwali DECEMBER Christmas JANUARY Republic Day FEBRUARY Valentine Day MARCH Women’s Day APRIL Daughter’s Day MAY Mother’s Day

CRM of Mezcla In house Designer Gives an opportunity to customer s to make new combination and reward the best combination. Loyalty cards to the customer s who will shop for more than 6500 Rs in one bill.(10% discount) Maintain a feedback register and reward the person with the best feedback every month. This will be done to generate more genuine feedbacks. Exclusive sales of Mezcla for loyal customers. A flexible exchange policy Flowers/chocolates /cakes sent on Birthdays. Follow up calls for unavailable garments. lucky draws will be organized and passes for fusion concert , festivals & events will be given to the winner . This is a kiss and win mirror , which will be placed outside Mezcla. girls who are visiting or shopping at Mezcla are to kiss the mirror and write a word about their experience at Mezcla. 1 weekly winner will be decided by Mezcla,who gives the best word and a thank you cake will be sent to the winner’s place.

Initial Investment key assumptions: First Year sale-10-50% of competitor sale Working Capital-20-50% of First year sale Pre-operative Cost-10-15% of first year sale Marketing Cost-10-15% of first year sale VM cost-2000-2500 Rs per sq ft Product costing Finishing Cost-15-20% of CMT Indirect Cost-9-12% of Direct Cost Manufacturing Cost-20-40% SCM cost-7% Freight Cost- 7% VAT-20% Depreciation- On Computer-40% On Air Conditioner- 13.91% On Furniture & Fixture-18% On Machinery-13.91% Advertisement- 8-10% of sale SCM & Logistics- 2-5% of sale Other office overhead- 2-5% of COGS Other selling overhead-2-5% of COGS Interest of bank-15% Of Debt Taxes-33.33% Pessimistic conservative optimistic CONSERVATIVE APPROACH INITIAL INVESTMENT= FIXED ASSET+ PRE OPERATIVE EXPENSES + WORKING CAPITAL FIXED ASSET VM(EBO) 98.75 L Rs (3950 sq ftx2500 Rs) VM(Warehouse) 24.5L Rs (7000sq ft x350 Rs) VM(Head office) 32 L Rs (4000sq ftx800 Rs) Computers (hardwere+softwere) 16.26 L Rs Machinery 40 L Rs Total 2.1151 Cr Rs PRE OPERATIVE EXPENSES- WORKING CAPITAL-- INITIAL INVESTMENT- 1.27 Cr Rs(12.5% of 10.17 Cr Rs) 3.5595 Cr Rs (35% of 10.17 Cr Rs) 2.1151+ 3.5595+ 1.27 =6.9446 Cr

Income Statement- year 1 all fig in Rs PROJECTED Income STATEMENT Sales 33900000 Less Cost of Goods Sold : 9675286 Gross Profit 24224714 Less Office and Administration Overheads 49654485 Selling and Distribution Overheads 17362643 =Operating Profit (EBIT) -42792414 Less Interest on term loan ( 15% on Loan) 3238950 Less Preliminary Expenses ( Written Off) 1017000 (1/5 of Preliminary expenses) EBT -47048364 Less: Income Tax @33.33% 15681219 EAT (NET PROFIT) -62729583

all fig in Rs PROJECTED Income STATEMENT year 1 Sales 101700000 Less Cost of Goods Sold : 29138419 Gross Profit 72561581 Less Office and Administration Overheads 47002222 Selling and Distribution Overheads 28371580 =Operating Profit (EBIT) -2812211 Less Interest on term loan ( 15% on Loan) 5208450 Less Preliminary Expenses ( Written Off) 2540000 (1/5 of Preliminary expenses) EBT -10560661 Less: Income Tax @33.33% 3519868 EAT (NET PROFIT) -14080529

all fig in Rs PROJECTED Income STATEMENT Year 1 Sales 169600000 Less Cost of Goods Sold : 48571151 Gross Profit 121028849 Less   Office and Administration Overheads 45788265 Selling and Distribution Overheads 34803423 =Operating Profit (EBIT) 40437161 Less Interest on term loan ( 15% on Loan) 5400075 Less Preliminary Expenses ( Written Off) 3390000 (1/5 of Preliminary expenses) EBT 31647086 Less: Income Tax @33.33% 10547973 EAT (NET PROFIT) 21099113

Income statement- year2 PROJECTED Income Statement Year 2 (fig. in Rs.) Sales 277652000 Less Cost of Goods Sold : 79551124 Gross Profit 198100876 Less Office and Administration Overheads 89034379 Selling and Distribution Overheads 71663989 =Operating Profit (EBIT) 37402508 Less Interest on term loan ( 15% on Loan) 5208450 Less Preliminary Expenses ( Written Off) 6941300 (1/5 of Preliminary expenses) EBT 25252758 Less: Income Tax @33.33% 8416744 EAT (NET PROFIT) 16836014

BREAKEVEN ANALYSIS OF YEAR 1 Conservative Pessimistic Sales- 3.39 cr Total fixed cost =49205842 Total variable cost = 28503572 Contribution margin =3.39cr-2.85cr CM ratio = 15.92 % Break even sales = 309081922 MOS = 27.51cr(negative Optimistic Sales-16.96 cr Total fixed cost = 51578842 Total variable cost = 80973997 Contribution margin = 16.96 cr-8.09 cr CM ratio = 52.3 % Break even sales = 98621112 MOS = 7.1 cr sales= 10.17cr fixed cost= variable cost= PE written off 2540000 cogs 29138419 Rentals 31500000 Advertising (8 to 10% of sales) 9153000 Electricity 1500000 Logistics ( 2% to 5%) 3559500 Salary 7608000 Sales Promotion 10101700 Depreciation 4208842 Other SellingOverheads 2185380 Salaries 3372000 Other Office Overheads TOTAL   50728842 56323379 Contribution margin = sales – variable cost = 10.17 cr – 5.63 cr = 4.54 cr CM ratio = CM / sales * 100 = 4.54 / 10.17 * 100 = 44.64 % Breakeven point = fixed cost / CM ratio Breakeven sales = 50728842/ 44.64 *100 = 113639879 MOS = sales at selected activity – sales at BEP = 10.17 cr – 11.36 cr = 1.19 cr (negative) Brk evn 3 scr

Pessimistic Conservative Optimistic Mrgin f safty Pessimistic Conservative Optimistic

Ratio

1st year- 3 scenarios IT ratio COGS/Inventory COGS 42199 3.79 11120

References