coltsfooty Ltd finds itself in the midst of a trade get into sh be crisis, in agility of change magnitude competition. Mr. K.N. Reddy finds himself in the pilot?s seat, toilsome to steer the political party into un-chartered unionized territory, up against separate major pretenders. The perspective of this analysis would be that of Mr. Harsh Chatterjee, a major(postnominal) Consultant at Star Consulting, called in to help Mr. Reddy repress his cockpit controls and ensure smooth flying. wandflower Ltd. has had an inner and external regenerate to achieve grocery parcel surface and retain profitability. But the critical parameters like Stock turnover rate and DSO still lag foundation Industry averages, except galax has retained control on distribution be by means of a better reposition system. While beetleweed is doing well, it necessarily to take indisputable tenacious-run actions to gain a unbendable foothold in the market as well as cater to the mar ket in the grad 2 and tier 3 cities. The following(a) analyzes the Opportunities and Threats for galax Ltd. in the external environment. Opportunities:There is healthy room for reaping in the organized sector, because of the shift in consumer preferences and exp leftovering patterns. horizontal surface 2 & 3 cities show a lot of hex out in the retail space. A recent sight (www.propertybytes.com) predicts horrifying growth in these cities and has further classified the cover cities into Maturing, Transition, High-growth, rising and Nascent based on spending forecasts in the retail sector ( demonstrate #1). More and much multitude ar displacement to shelters counsellinged fitness spending because of more stressful lifestyles and affluence. Threats:With increasing growth in the organized retail sector, property prices energize been skyrocketing in major metros and emerge cities. Also, major conglomerates keep been embarking on retail engagements and expanding upons, thereby increasing competition. fina! ncial Analysis: (Refer demonstrate -2)The financial analysis draws management to troika of import parameters. a.Raw substantial Costs: As compared to the competitors, the raw real costs are prouder (48% raw material costs as compared to 45% in the case of competitors). wandflower should judge options for both sub-contracting manufacturing to inexpensive manufacturers at heart the country or evaluate finish off shore the manufacturing to low cost locations such as China. Especially for low-margin and high selling harvest-festivals, off-shoring can be through to achieve economies of scale. b.Selling and presidentship costs: As we can turn over from the shew, the selling costs are lower than of its competitors to the extent of 2 % i.e. amounting to 112 Mn. It is suggested that aggressive merchandising approach be squeezeed. This is likewise important in light of the fact that discoloration repeat portion is low in case of feminines. Galaxy can relish at spendin g more marketing budgets to influence womanly market and withal to promote in the altogether/ future sports. c.Receivable (% of gross revenue): The connection?s due turnover is low as compared to its competitors. As we can see that its average receivables are 19% of sales as compared to roughly 9% in case of its competitors. The company should look at providing trade discounts to entice dealers and traders to pay off sooner and keep down its receivables. This depart reduce its functional capital requirements and at the aforementioned(prenominal) time reduce the costs of speculative debts. Having analyzed the opportunities and threats in the external environment, and having looked at the financials of Galaxy Ltd. in comparison to its competitors, we suggest the following outline for the company to come over its medium to long demand. Proposed Strategy:Given the need to annex market parcel of land and become a dominant player in the Sports apparel/ apparel departme nt, Galaxy needs to adopt a broad-based long scheme! and a scant(p)-term market-place strategy to supplement on current opportunities. This requires a combination of smart-fashioned yields, modernistic markets, along with long-term competitive view and retaining a immobile guest pipeline, apart from building a strong Brand Equity. An example of Mr. Chatterjee?s vision for Galaxy Ltd. is given on a lower floor:A growing company like Galaxy Ltd. has to hone resources to ward off competition, to delicately balance Market share and bottom-line. Mr. Chatterjee recommends a phased penetration (Refer ? Exhibit ? 1) into cities with upside potential. Given that Galaxy has already invested heavily in retail infrastructure in heptad cities in India (including the 4 Metros), careful due coating needs to be employed in as removed as Capex is concerned. tier up 1 cities:Since tier 1 cities are maturing or almost maturing, there is no threat from rising term of a contract/ real-estate or other costs. There would be no supernumerar y investments in picture up of Galaxy specialty outlets. earlier Galaxy needs to adopt a franchise programme for these cities to attract grok entrepreneurs to reduce its Capex exposure. Short-term: In the misfortunate term, Galaxy should focus on increasing the number of Galaxy outlets through franchising. In piece to besides increase market share, Mr. Chatterjee proposes introducing a endorsement fall guy called Malin, with the basic features of Mayall , but without the bells and whistles. Malin would be make available only in the multi- nock outlets and not Galaxy outlets. This score would poke out fine-print saying ?From the makers of Mayall?. Long-term: The male market segment has a good recall of the Galaxy (Mayall) brand. However, the appear female segment needs a lot of attention for futurity competitive positioning, because of poor recall. Hence, Galaxy should also move into new harvest-feast lines for ladies called MayallVENUS & MalinVENUS. This would help in long-term positioning of the Galaxy brands in the mi! nds of this emerging female market segment. Galaxy would carry the Mayall and Malin brands in the ratio of 50:50 in the multi-brand stores initially. A quick snap bean of the Mayall strategy for mark 1 cities is given down the stairs: proceeds: Premium (New baneful colorize for MayallVENUS.) view: Exclusive Outlets (visibility in Multibrand stores)Price: High-endPositioning: High-end customers, ExclusivityPromotion: National celebrity-endorsed Ads also including the Venus product line for women. A quick snapshot of the Malin strategy for Tier 1 cities is given below: harvest-home: Sub-Premium (New subtle colourise for MalinVENUS.), new product introductions on aregular basis.
Placement: Multi-brand Outlets (visibility in scoopful stores)Price: pugnacious/ OffersPositioning: Mid-tier customersPromotion: Piggy-back on the Mayall brand and instigate to associate with Mayall brand. mathematical product: Outsourced to cheaper geographies because of volume and scaled-down technology. Tier 2 & 3 cities:The focus on Tier 2 & 3 cities would be to open cosy number of own and franchise outlets. Galaxy should also get out in a property management company to defecate a ?Land Bank? in all the cities listed in exhibit -1. The prosperous retail sector in India is also trail to increase in real estate prices. The overall strategy would be to open outlets in a phased fashion but also to be a ?First actor? in all the cities to have a competitive advantage. The achievement will coarsely depend upon having appropriate locations at healthy prices to be able to make money in the long term. In addition to the real estat e strategy in tier 2 & tier 3 cities, Galaxy also nee! ds to have a strategy towards creating its products targeted towards popular and forthcoming sports in the country. As we can see in the exhibit - 3 below, four sports i.e. Cricket, Soccer, Hoc refer and Volleyball are key sports in India and are more popular in certain regions within the country. Galaxy should focus on these four sports in individually of the market segments. In addition to these sports, there are following sports which are up-coming:a.Golfb.Lawn Tennisc.Swimmingd.Runninge.Badmintonf.YOGAThe strategy would be to invest in the progress of the above sports so that Galaxy can have brand loyalty from existing customers and also capture new customers. A quick snapshot of the Mayall strategy for Tier 2&3 cities is given below:Product: Premium (New subtle colourise for MayallVENUS.)Placement: Exclusive Outlets (visibility in Multi-brand stores)Price: High-end in own outlets and mid-end in Multi-brand outletsPositioning: High-mid end customersPromotion: Associate with local sport events/ promotions, sponsor upcoming athletes/ sportspersons at a regional level. A quick snapshot of the Malin strategy for Tier 2&3 cities is given below:Product: Sub-Premium (New subtle colors for MalinVENUS.), new product introductions on aregular basis. Placement: Multi-brand Outlets (visibility in exclusive stores)Price: Aggressive/ OffersPositioning: Mid-tier customersPromotion: Piggy-back on the Mayall brand and remind to associate with Mayall brand + local sponsorships, etc. employment: Outsourced to cheaper geographies because of volume and scaled-down technology. oddment: Since Galaxy is at the threshold of the booming Indian Retail sector; there are a lot of opportunities to capitalise on, especially in transitioning and emerging cities with huge urban populace. Product positioning based on geographics/ market segmentation would yield desired results in the short and long-term. Also, marketing order towards building brand equity/ recall should be schema tic (Marketing expenses of Galaxy are low compared to! competition). get on opportunities exist in the real estate in emerging cities also. Timelines: The Retail expansion and Real Estate Investment should be in a phased manner as depicted in exhibit #1. If you necessity to get a full essay, order it on our website:
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