1. BUILDING A ONE-OF-A-KIND LOYALTY PROGRAM
BUILD ● BRAND ● LOVE
BUILDING A ONE-OF-A-KIND LOYALTY PROGRAM
10TH MAY 2018
BRAND AND MARKETING

2. QUALIFYING SPEND OVER 36 MONTHS >=5 Lac Lifetime Spends
BASIC STRUCTURE: Five Tiers, assigned basis Spend & Recency
Tier assignment at launch will be basis 36 month historical data available at Fabindia POS.
Tiers are retained as long as you have transacted at least ONCE in the last 12 months. Retention spend slabs are currently under discussion.
Tiers are upgraded basis spend criteria only. A frequency criteria is under discussion.
QUALIFYING SPEND OVER 36 MONTHS
RETENTION SPEND
PER ANNUM
TIER UPGRADE SPEND
PER ANNUM
% AUDIENCE
IN EACH TIER
% SALES
CONTRIBUTION
EARN RATE
PROGRAM TIERS
86%
33%
BRONZE
< 15K Lifetime Spends
n/a
20k 1%
13%
43%
SILVER
15K – 1 Lac Lifetime Spends
20k
60k 2%
10%
GOLD
1-2 Lac Lifetime Spends
60k
1.25L 4% 1% 6%
PLATINUM
2-5 Lac Lifetime Spends
1.25L
2.5L 5% 8%
7.5%
NOIR
>=5 Lac Lifetime Spends
2.5L
n/a

3. HOW THEY EARN: Spending, Engagement & Advocacy
Encourage Fabindia Citizens to with the Brand at a deeper level
Make them feel like they belong.
Earn points on shopping
Earn 100 points on profile completion
Earn 20 points for feedback,
20 points for survey
Earn 100 points for Referring a Friend + 25% of Referee’s Earn
Earn 10 points for Social Campaigns response
Rationale:
Encourage members to spend within the brand, getting us a benefit via GP & keeping them within our brand fray
Rationale:
Encourage members to complete profile, enable more personalized and targeted offering
Rationale:
Token of appreciation and an incentive for participation
Rationale:
To drive acquisition and leverage loyalists associations
Rationale:
Word of Mouth has grown exponential with advent of social media. Brand Advocacy can be measured and rewarded.
Mechanics:
Referrer to receive points when the Referee transacts. Referee receives welcome bonus points
Mechanics:
Every time customer gives a feedback, points could be issued. For participating in surveys, customers could be awarded bonus points
Mechanics:
Contribution or Association with any of the causes that Fabindia is associated with, customer would be awarded bonus points
Mechanics:
Loyalty points to be awarded basis action triggered through CEMS
Mechanics:
Every Rupee spent, earns you points at a tier-defined rate (see slide 4) which is then used to redeem discounts at store

4. TIER REWARDS: Program benefits across tiers
PROGRAM TIERS
EARN RATE
OTHER BENEFITS
WHAT THAT MEANS
PHYSICAL CARD
+ 500 Bonus Points on 10K Annual Spend Milestone
+ Special offers
+ Experiences
INR 600 worth Reward on Spend of 10,000
< 15K Lifetime Spends
1% Earn
Bonus Points on 25K Annual Spend Milestone
+ Special offers
+ Experiences
INR 1500 worth Reward on Spend of 25,000
15K – 1 Lac Lifetime Spends
2% Earn
INR 2000 worth Reward on Spend of 50,000
+ Special offers
+ Experiences
1-2 Lac Lifetime Spends
Fabindia Club:
Potential Base for Upgrade
~30% of Base Y
4% Earn
INR 3750 worth Reward on Spend of 75,000
+ Special offers
+ Experiences
2-5 Lac Lifetime Spends
5% Earn Y
Base:
Entry Level internal slab
~50%-55% of Base
(Almost a) Concierge Service
+ Personalised attention
>=5 Lac Lifetime Spends
7.5% Earn Y

5. TIER REWARDS: Exclusive rewards & experiences
Visible to all tiers. Privilege % discounts at select vendors across the country.
ECO STAYS
HERITAGE
Umaid Bhawan Palace, Jodhpur
Taj Lake Palace, Udaipur
Orange County, Kabini
Vythiri Village, Wayanad
Coconut Lagoon, Kumarakom
Nahargarh, Ranthambore
Sham-e-Sarhad Village Resort, Bhuj
Samode Palace, Jaipur
Nadesar Palace, Varanasi
Fotune The Savoy, Mussoorie
Ananda, Himalayas
Surjivan, Gurgaon

6. PROGRAM FINANCIALS (OLD)
Particulars
Q4 Year1 (Jan'19-Mar'19)
Year2 (Apr'19-Mar'20)
Year 3 (Apr'20 - Mar'21)
Year4 (Apr'21 - Mar'22)
Year 5 (Apr'22 - Mar'23)
Member Acquisition
1,85,271
8,15,194
7,11,442
7,58,871
8,30,015
Total Members
35,50,145
43,65,338
50,76,780
58,35,651
66,65,666
Total Loyalty Sales
2,86,83,29,536
14,68,93,82,497
17,17,78,54,210
19,95,36,72,146
20,17,14,58,754
Incremental Sales (from ABV & repeat multipliers)
35,17,48,897
75,79,56,357
89,25,72,795
89,10,18,509
BALANCE SHEET COSTS
Total Points Issued (incl. 20% tactical bonus)
8,32,13,510
42,61,55,733
55,24,39,791
69,91,76,672
70,68,07,915
Rate of Redemption
24%
35%
47%
48%
50%
Points Redeemed
1,96,85,511
17,16,45,111
42,28,31,599
54,51,13,079
61,07,94,683
Opening Balance
6,35,27,999
31,80,38,621
44,76,46,814
59,05,39,169
Points Expired
1,11,71,238
7,57,57,717
Closing Balance
Cost of Redeemed Points (Points Redeemed * CPP)
78,74,204
6,86,58,045
16,91,32,640
21,80,45,231
24,43,17,873
Cost of Unredeemed Points (Points Redeemed * CPP)
2,54,11,200
12,72,15,449
17,90,58,725
23,62,15,667
Total cost of points (incl Provision)
3,32,85,404
19,58,73,493
34,81,91,365
45,42,60,899
48,86,35,746
MARKETING COSTS
Customers to get a card (Gold & above)
34,588
1,74,614
3,17,299
3,64,728
4,16,604
Cost of Plastic Card (incl logistics)
12,10,585
49,00,889
49,93,983
16,60,030
18,15,658
Communication Cost
58,88,529
1,21,60,395
1,44,37,379
1,66,48,777
1,90,40,999
Web portal & App development fee
20,00,000
3,00,000
Agency fee
36,00,000
39,60,000
43,56,000
47,91,600
52,70,760
RESOURCING COSTS
Team cost (recurring HR cost)
1,32,60,000
1,45,86,000
1,60,44,600
1,76,49,060
1,94,13,966
Infrastructure + fittings + printer cost (one-time)
24,33,500
Rent & CAM & other consumables (recurring costs)
26,76,880
Total Cost (incl. redeemed points only)
3,69,43,698
10,69,42,209
21,16,41,481
26,14,71,579
29,25,36,137
Total Cost (incl. cost of points provision)
6,23,54,898
23,41,57,658
39,07,00,207
49,76,87,246
53,68,54,010
Top Line Revenue (planned)
13,50,00,00,000
15,52,50,00,000
17,85,37,50,000
20,53,18,12,500
23,61,15,84,375
Total cost (redeemed Points only) as % Top Line
0.27%
0.69%
1.19%
1.27%
1.24%
Total cost (incl. Point Provision) as % Top Line
0.25%
1.26%
1.95%
2.21%
2.07%

7. PROGRAM FINANCIALS (NEW)
Particulars
Q4 Year1 (Jan'19-Mar'19)
Year2 (Apr'19-Mar'20)
Year 3 (Apr'20 - Mar'21)
Year4 (Apr'21 - Mar'22)
Year 5 (Apr'22 - Mar'23)
Member Acquisition
2,03,798
8,96,713
7,82,586
Total Members
35,74,848
44,71,561
52,54,146
60,36,732
68,19,318
Total Loyalty Sales
2,94,64,96,168
15,02,66,24,898
17,77,53,44,877
20,55,21,81,199
20,43,18,00,513
Lift due to Program (A)
34,88,95,241
56,74,26,018
67,21,33,270
66,75,94,028
Shift due to Program (new customers) (B)
7,04,13,664
28,40,84,051
24,79,27,899
Shift due to Program (incr. repeat customers) ©
8,53,57,906
20,85,56,122
24,70,41,031
24,53,72,643
Retention Revenue (D)
3,25,01,442
5,07,75,895
5,88,31,925
6,68,87,955
Total Incremental Sales (A+B+C+D)
75,08,38,641
1,07,46,85,934
1,22,59,34,124
1,22,77,82,525
BALANCE SHEET COSTS
Total Points Issued (incl. 20% tactical bonus)
8,54,81,213
43,59,39,520
57,16,55,091
72,01,48,429
71,59,30,290
Rate of Redemption
24%
35%
47%
48%
50%
Points Redeemed
2,02,21,973
17,56,81,386
43,57,62,124
56,16,39,887
62,34,38,260
Opening Balance
6,52,59,240
32,55,17,374
46,14,10,341
60,84,43,211
Points Expired
1,14,75,673
7,74,96,981
Closing Balance
Cost of Redeemed Points (Points Redeemed * CPP)
80,88,789
7,02,72,555
17,43,04,850
22,46,55,955
24,93,75,304
Cost of Unredeemed Points (Points Redeemed * CPP)
2,61,03,696
10,41,03,253
5,43,57,187
6,34,03,417
3,69,96,812
Total cost of points (incl Provision)
3,41,92,485
17,43,75,808
22,86,62,036
28,80,59,372
28,63,72,116
MARKETING COSTS
Customers to get a card (Gold & above)
34,829
1,78,862
3,28,384
3,77,296
4,26,207
Cost of Plastic Card (incl logistics)
12,19,008
50,41,177
52,33,260
17,11,906
Communication Cost
59,15,548
1,22,92,864
1,47,97,547
1,71,45,304
1,94,93,061
Web portal & App development fee
20,00,000
3,00,000
Agency fee
36,00,000
39,60,000
43,56,000
47,91,600
52,70,760
RESOURCING COSTS
Team cost (recurring HR cost)
1,32,60,000
1,45,86,000
1,60,44,600
1,76,49,060
1,94,13,966
Infrastructure + fittings + printer cost (one-time)
24,33,500
Rent & CAM & other consumables (recurring costs)
26,76,880
Total Cost (incl. redeemed points only)
3,91,93,725
10,91,29,476
21,77,13,136
26,89,30,705
29,82,41,877
Total Cost (incl. cost of points provision)
6,52,97,421
21,32,32,729
27,20,70,323
33,23,34,122
33,52,38,689
Top Line Revenue (planned)
13,50,00,00,000
15,52,50,00,000
17,85,37,50,000
20,53,18,12,500
23,61,15,84,375
Total cost (redeemed Points only) as % Top Line
0.3%
0.7%
1.2%
1.3%
Total cost (incl. Point Provision) as % Top Line
0.48%
1.37%
1.52%
1.62%
1.42%
Incremental Sales to Total Topline Revenue
0.52%
4.84%
6.02%
5.97%
5.20%

8. THANK YOU!
10TH MAY 2018
BRAND AND MARKETING