IIP PRESENTATION

The Viability of
Liverpool Retail
India Ltd. In
Large Format
Stores
Presented By:
Nikita Sanghvi
Roll No: 27
 CONTENT OUTLINE
• INTRODUCTION
• APPAREL RETAIL INDUSTRY
• COMPANY PROFILE
• RESEARCH METHODOLOGY
• CONSUMER SURVEY ANALYSIS
• NEW INVESTMENT PROPOSAL
• LEARNING
• CONCLUSION
• REFERENCES

BATCH 2009-2011 STEVENS BUSINESS SCHOOL

 INTRODUCTION
• RETAIL CONCEPT
 word ‘retail’ derived from the French word
retailer, meaning ‘to cut a piece off’ or ‘to
break bulk’
 retailer links the producers and the
ultimate consumers

• DEFINITION:
Retailing is defined as a conclusive set of
activities or steps used to sell a product or a
service to consumers for their personal or family
use.

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 DIVISION OF RETAIL SECTOR IN
INDIA
 

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 ORGANISED RETAIL SECTOR

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 MARKET STATISTICS
• Indian retail market - 5th largest retail
destination globally
• Share of retail to the country’s GDP - 22%
(US$ 380 billion) & estimated to grow to $679
billion in 2014
• Organized retail sector - expected to grow
from 5% in 2010 to 14%-18% in 2015

BATCH 2009-2011 STEVENS BUSINESS SCHOOL

 GROWTH OF APPAREL RETAIL
SECTOR
 Higher disposable incomes
 New occasion
 Growth in the women’s segment
 Fashion increasingly a form of self-
expression
 Urbanization
 Comparative youth of India’s population
 Easy availability of credit cards
 High exposure of brands through media
 Increasing number of malls
 Branded outlets

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 KEY PLAYERS
• K Raheja Group

• Future Group

• Tata Trent

• Aditya Birla Group

• Reliance

• Bharti Walmart

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 COMPANY PROFILE
LIVERPOOL RETAIL INDIA LTD.
• Established in 2001 - launched fashion retail
chain
• In 2006 -Ventured into readymade garments
sector
• Product portfolio:
 Men and Women: Shirts, Trousers, T-shirts,
Jeans, Accessories
 Kids Garments
 Footwear

• Retail Format: Discount Format Stores

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 BRANDS

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 COMPANY PROFILE
• Type of Retail Store: Exclusive Brand Outlet
- Franchising
• 554 stores in India & 2 stores in Dubai

• Planning to expand in international market

• Launched 151 retail stores across 15

states for “BARCELONA” on 15th June 2008
at 11am & entered “Limca Book of Records”

BATCH 2009-2011 STEVENS BUSINESS SCHOOL

 IIP PROJECT
• TOPIC: “The Viability of Liverpool Retail India Ltd. In
Large Format Stores”

• AREA OF RESEARCH:
Marketing - Retail Management
 
• RESEARCH OBJECTIVES:
To propose Liverpool Retail India Ltd. a business plan
about investment in Multi-brand outlets (MBOs) &
Large Format Stores (LFS)

• RESEARCH TYPE
Quantitative and Suggestive research

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 IIP PROJECT
• DATA REQUIREMENT
 Entrepreneurs who are already functioning in EBOs,
MBOs & LFS
 Store Managers & Staff of the various brands present in
the store
 Customers who are actually purchasing from various
types of apparel retail stores

• DATA COLLECTION TOOLS

 Questionnaire
 Books, newspapers, trade journals, and white papers,
industry portals, government agencies & monitoring
industry news and developments

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 IIP PROJECT
• SAMPLING DESIGN
 
 Sampling Techniques: Probability Sampling
Method
 
 Sample Size: 100 people

 Survey area: Ahemdabad city

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 CONSUMER SURVEY
ANALYSIS

BATCH 2009-2011 STEVENS BUSINESS SCHOOL

 CONSUMER SURVEY
ANALYSIS

BATCH 2009-2011 STEVENS BUSINESS SCHOOL

 CONSUMER SURVEY
ANALYSIS

BATCH 2009-2011 STEVENS BUSINESS SCHOOL

 CONSUMER SURVEY
ANALYSIS

BATCH 2009-2011 STEVENS BUSINESS SCHOOL

 CONSUMER SURVEY
ANALYSIS

BATCH 2009-2011 STEVENS BUSINESS SCHOOL

 CONSUMER SURVEY
ANALYSIS

BATCH 2009-2011 STEVENS BUSINESS SCHOOL

 NEW INVESTMENT
PROPOSAL
• Focus on three decisive factors:

 Shape the category

 Focus on inventory and markdown
management
 Take a segmented view of the market

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 PRDUCT INFORMATION
• Retail Format: Large Format Store
• Brand: Liverpool ’Youth
• Category: Semi-Premium Brand
• Style: Casuals

• Merchandise: Denims & T-shirts

Accessories - Wallets, Belts, Handkerchiefs

• Price Range:
 T-Shirts = Rs. 699/- to Rs. 999/-
 Denims = Rs. 899/- to Rs. 1599/-

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 TARGET MARKET
•  Demographic
 Age - Between 18yrs - 30yrs
 Disposable Income - >INR 15,000 p.m.
 Generation - Generation Y
•  Psychographic
 Personality – Competent, Strivers, Achiever,
Experimenters
 Life Style – Brand Conscious, Pleasure & comfort
seeker
• Behavioral
 Loyalty Status – Shifting loyal
 Readiness Stage for buying – Interested

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 SOURCES OF FINANCE
• Own reserves: Rs. 5 Lac
• Bank Over Draft: Upto Rs. 50000

• Investment Breakup:
 = Rent amount*
+ merchandise cost
+ salary
+ margin given to store authority ( 25% on net
sale)
+ miscellaneous
(branding, snacks expense, incentives, etc.)

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 COST PRICE
• RENT AMOUNT:
 Store Space Reqd: 250 sq. ft.
 Cost Price per sq. ft. : Rs. 150/- to Rs.250/- p.m.
 Rent per month: Rs. 220 * 250 = Rs. 55000/-
• MERCHANDISE COST

FY 2011 FY 2012 FY 2013

Avg. Cost price of

350 400 400
Jeans (in Rs.)

Avg. Cost price of

150 200 200
T-shirt (in Rs.)

No. of pieces
2800 1600 1200
bought per year

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 INCOME STATEMENT (Projected)
First year '11 Second year '12 Third year '13
 
Sales 1388600.00 2290000.00 2410000.00
Less : Cost of
(417150.00) (465050.00) (384000.00)
Production
Gross Profit 971450.00 1824950.00 1589473.00

Less : Administrative
(1170457.00) (1587300.00) (1368142.00)
& Selling Expense

EBDIT (199007.00) 237650.00 954861.00

Less : Depreciation 0.00 0.00 0.00

EBIT (199007.00) 237650.00 954861.00

Less : Interest (500.00) (500.00) (50.00)

EBT (199507.00) 237150.00 954811.00

Tax @ 30% 59852.10 (71145.00) (286443.30)

EAT (139654.90) 166005.00 668367.70

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 LEARNING
• Understanding the operations and working at
the company based on franchisee format
• Online as well as telephonic co-ordination
among departments - integral part of job
• Correctness and clarity of information
• Absolute knowledge of the industry, clarity of
job description & aptitude of learning.
• Multi-tasking is the ‘Word’

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 CONCLUSION
• Consumer’s preferences: changing rapidly
and highly diversified
• Wants best quality, variety, exclusive benefits
and privileges
• “Who you are selling to and how” going to
trump “what you are selling”
• Improvements in infrastructure, lower real
estate costs will affect future

BATCH 2009-2011 STEVENS BUSINESS SCHOOL

 REFERENCES
• Marketing: An Introduction (7th Edition) by Armstrong and
Philip Kotler (2005), Dorling Kindersley (India) Pvt. Ltd., New
Delhi

• Marketing Research: An Applied Orientation (5th Edition) by

Naresh K.Malhotra & Satyabhushan Dash (2009), Dorling
Kindersley (India) Pvt. Ltd., New Delhi

• Research Methods for Business Students (3rd Edition) by

Mark Saunders, Philip Lewis and Adrian Thornhill (2007),
Dorling Kindersley (India) Pvt. Ltd., New Delhi

• Retailing: Environments & Operations (Indian Edition) by

Andrew J Newman & Peter Cullen (2009), Cengage Learning
India Pvt. Ltd., New Delhi.

• ‘Retail Hotspot’ The Hindu Business Line, 22 August 2002

BATCH 2009-2011 STEVENS BUSINESS SCHOOL

 REFERENCES
• http://economictimes.indiatimes.com/articleshow/6078501.cm
s
• http://investing.businessweek.com/research/stocks/private/sn
apshot.asp?privcapId=45981969
• http://www.primaryinfo.com/apparel_retailers.htm
• http://www.bespokecreations.net/Resources/Brands%20of
%20India_Part_1.pdf
• http://www.business-standard.com/india/storypage.php?aut
ono=326168
• http://www.clickindia.com/detail.php?id=2485181
• http://www.financialexpress.com/news/apparel-retailers-move-
to-small-towns-for-growth/494604/0

BATCH 2009-2011 STEVENS BUSINESS SCHOOL

 REFERENCES
• http://www.franchiseindia.com/magazineArticlesView.php?
magzid=49&artid=49-1-1&title=May+2009+Vol.+10+No.
+3&p1=2&p2=&year=2009
• http://www.indiaretailing.com/news.aspx?topic=1&Id=4155
• http://www.referenceforbusiness.com/business-
plans/Business-Plans-Volume-09/Retail-Clothing-Store.html
• http://info.shine.com/Article/Retail/Retailers-think-big-shift-
focus-to-large-format-stores/4000/cid139.aspx
• http://www.thebusinessplanstore.com/business_plan_financi
al_projections.htm#BalanceSheets
• http://thirdeyesight.in/articles/all_about_format.html

BATCH 2009-2011 STEVENS BUSINESS SCHOOL

THANK
YOU