A B H I S H E K G A R G

A N I R U D H M I T T A L J A G A D E E S A N P

M A N D E E P S I N G H N AYA N T A R A G H O S H

N U P U R S A H N I S W A T I G A R G

Green Ghar

TABLE OF CONTENT

•  Concept and Characteristics •  Value Proposition •  Development Strategy •  Segmentation •  Product Portfolio •  Competition •  Store Layout •  Financial Analysis •  Branding and Positioning

CONCEPT AND CHARACTERISTICS Aim: sell Energy saving and Eco friendly appliances in India through Retail outlets

The Concept Store •  Store that is solely

f o c u s e d o n providing green a p p l i a n c e s t o retail customers

•  Cost of products provided will be more affordable to affluent section of customers

•  The Store will aim at providing a complete green experience to the customers

Product characteristics

•  Green and Eco- Friendly products- E a c h p r o d u c t more eco-friendly than i t s d i rect competitors

•  S ty l i sh – Bas ic styles to meet the aspirations of the new generations

•  D u r a b l e – T h e products will be s o l d w i t h a warranty period

VALUE PROPOSITION

Energy Saving Products

Cost Savings for Customers

2% Eco-CSR Expense

• Good for the environment •  India is unable to meet its

energy Demand

• Lowering electricity bill by upto 50%

• Shop all products from one particular retail format

• Companies are required to meet this as per new law

• Companies can purchase products from us

MACROECONOMIC PICTURE 2 Retail outlets in Largest Metropolitan Cities

Mumbai Delhi

Footfall: Colaba Causeway

1,12,343/day Connaught Place

1,72,400/day

DEVELOPMENT STRATEGY

•  Year 1, operations in Delhi and Mumbai

•  Year 2, Cover Metro Cities in India (2 more store openings)

•  Year 3, Expand into Tier 1 cities

•  Year 4 onwards, move to Rural market

SEGMENTING: CUSTOMER CHARACTERISTICS

v  Upper Middle Income segments of India v Age: 25-55, people below 30 years of age

in India don’t have their own house, thus the utility of these products will not be much for them

v  Social aspect: Association with the concept of GREEN!

•  B2C Clientele would be targeted through retail stores opened in Delhi and Mumbai initially

•  Also through Green Ghar’s website (to obtain discounts)

•  Characteristics mentioned above

B2C B2B •  Architects+ Builders+

Contractors •  They undertake projects

of Retail Customers •  Offering through

catchment area •  Corporate clientele like

Reliance, Tata- Mobilize 2% CSR on green products

B2C Customer Segment

This segment may further be categorized as : 1.  Customers looking for eco-friendly products to light their homes 2.  Those who look for the long term efficiency from the devices(cost wise) 3.  Those who focus on just the look and feel of the products and want to buy products for aesthetics reason

Green Ghar would take care of the needs of all three segment. Based on survey, below is a graph explaining what people look from lighting systems:

Aesthetics

Price

PRODUCT PORTFOLIO

•  Products sold will be of three categories: •  Branded electronics of big

brands which have the highest energy efficiency rating in their category

•  Products assembled by us at our workshops located in industrial clusters close to our retail locations

•  Completely green products such as solar geysers, wind energy based bulbs, solar lights, etc.

PRODUCT PORTFOLIO

•  Offerings would include exclusively designed products that would add to the aesthetics of the home and office space. •  Also for bulk orders esp. from B2B segment, we may

offer customization to suit their design needs

COMPETITION

DIRECT COMPETITION

v Our offering focuses on energy efficient products

v Market for such products is huge

v But, no company has ventured this space in the Indian territory

v Don’t see efficiency as a USP

v One niche player- Shakti Electronics exist

INDIRECT COMPETITION

STORE ENTRANCE AND INTERIORS

Exterior of the building will symbolise Eco Friendliness Basic interiors that aesthetically appeal to the target market: upper middle class

Cues in the building that reemphasize the green-aspect of the store

Use Ipads to provide detailed information and a user-friendly experience to each consumer

TECHNOLOGY ENABLED STORE

•  The store would be designed to make the entire shopping experience easy, convenient and hassle free. •  Scanner devices to enable purchases •  Software to help suggest what lighting systems suits

your home/office space the most.

STORE LAYOUT

Particlars 2015 2016 2017 2018 2019

Market  Size 50,000,000,000                                               57,000,000,000         64,410,000,000         72,139,200,000             80,074,512,000            Market  Share 500,000,000                                                           1026000000 1610250000 2236315200 2802607920

Revenue 500,000,000                                                           1,026,000,000             1,610,250,000             2,236,315,200                   2,802,607,920                  

ExpensesCOGS 300,000,000                                                           595,080,000                     885,637,500                     1,162,883,904                   1,401,303,960                  Rent 48,000,000                                                                 70,560,000                         95,040,000                         154,560,000                         184,320,000                        Electricity 2,400,000                                                                     3,528,000                               4,752,000                               7,728,000                                   9,216,000                                  Salary 35,000,000                                                                 71,820,000                         112,717,500                     156,542,064                         196,182,554                        Advertising 75,000,000                                                                 143,640,000                     209,332,500                     268,357,824                         308,286,871                        Customer  Loyalty  Expenses 3,750,000                                                                     7,695,000                               12,076,875                         16,772,364                               21,019,559                              Expenses 464,150,000                                                           892,323,000                     1,319,556,375             1,766,844,156                   2,120,328,945                  

Net  Profit 35,850,000                                                                 133,677,000                     290,693,625                     469,471,044                         682,278,975                        

FINANCIAL FEASIBILITY PROFORMA INCOME STATEMENT

BREAKEVEN ANALYSIS 2015 2016 2017 2018 2019

Fixed  CostsRent 48,000,000                 70,560,000                     95,040,000                     154,560,000                 184,320,000                Electricity 2,400,000                     3,528,000                         4,752,000                         7,728,000                         9,216,000                        Salary 35,000,000                 71,820,000                     112,717,500                 156,542,064                 196,182,554                Advertisement 75,000,000                 143,640,000                 209,332,500                 268,357,824                 308,286,871                Fixed  Costs 160,400,000           289,548,000                 421,842,000                 587,187,888                 698,005,426                

Contribution  Margin 40% 42% 45% 48% 50%

Breakeven  Sales 401,000,000           689,400,000                 937,426,667                 1,223,308,100         1,396,010,851        

Material Cost 40%

Shipping Cost 6%

Warehouse 14%

Contribution 40%

VARIABLE COST ANALYSIS

BRANDING AND POSITIONING We position are products to: •  Classes of customers who have an emotional attachment with the cause

of going green! •  Even for business houses our product usage tend to be a selling point that

‘our buildings are green’

COMPANY LOGO Company website: Plan A: Retail Customers can collect online discount voucher from Physical stores and on subsequent purchase online get a 10% off on purchase. Plan B: B2B Clients have a customization option on website. Get discount on such deals as bulk sale of products. Loyalty Program: Loyalty cards to customers: Bronze, Silver, Gold, Platinum. Points added for every purchase made Redemption in form of gifts or cash deduction CRM Strategy: Birthday/Anniversary gifts Feedback mechanism through website