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Business-Finance

Published on October 11, 2009

Author: pujil2009

Source: authorstream.com

Slide 1: LILLIPUT KIDSWEAR LTD PRESENTED BY- Bhawna Upadhyay Slide 2: Overview of the company Lilliput is a known kids wear manufacturer in India started in 1991 by Mr. Sanjeev Narula 135 brand outlets in 18 states 35 cities Tie-ups with shopper’s stop , pantaloon, lifestyle ,reliance etc Stores outside the country Bahrain, China, Egypt, Saudi Arabia etc It has 8 manufacturer units in Delhi (NCR) More than 4000 employees Brand of the year 2007 award (kids wear category)- by CMAI Annual turnover- Rs 182 crores in FY 06-0 Lilliput is currently growing @ 88.5% YOY It has drawn an ambitious plan to open 400 stores - 2010-2011 Slide 3: “Analysis of the Kids wear industry in India and effect of recession on sales of Lilliput” PROJECT TITLE OBJECTIVE OF THE STUDY Analysis of the Kids wears industry in India. Factors responsible for attracting the customers to the Lilliput stores, that are helpful in increasing the brand awareness and contribute to the purchase decision of the customers. Effect of recession on the sales of the Lilliput stores and what measures the company has taken to minimize the effect. Slide 4: Sampling Plan: Consumers of different localities in Delhi, Noida, and Ghaziabad were interviewed. Lilliput Stores at different locations were visited to collect primary data. Store managers of various Lilliput stores were interviewed. Sample Size: In order to collect a fair amount of primary data, 28 Lilliput stores across different locations were visited. In order to collect primary data for final consumers, from each of the above mentioned stores were interviewed. SCOPE: DURATION: The estimated time to meet the objectives of the project was 2 months. AREA COVERED: Delhi, Noida, and Ghaziabad Slide 5: FOOTFALL’S ANALYSIS ANALYSIS OF SURVEY Slide 6: It can be concluded that store 8 has performed well in terms of footfalls as the other stores are far behind. The footfalls of all the stores declined from October 2008 to December 2008 Slide 7: SWOT ANALYSIS Slide 8: From the above graph it is clearly visible that majority out of the 28 store managers we interviewed believes that Designs and colors of the clothes were the main factor which are responsible for attracting the customers to the store. while some of the other important factors are location of the store, brand name and because of the ease of purchase. Slide 9: Above analysis clearly depicts that Fabric is the most important factor which helps the customers in making a purchase decision its simply because young's infants like soft, comfortable material. apart from fabric designs and variety are of one the factors because nowadays parents want their kids to wear most fashionable clothes. Slide 10: FINDINGS Visual merchandising of certain stores was not appropriate. Location disadvantages were there at many stores in Ghaziabad and Delhi Lack of ethnic wear garments at the stores till date Company’s per shop revenue is less than expenses on per shop. Company also went for the cost cutting Ambience of certain stores was very good Nothing entertaining could be found for the kids while their parent’s were at shopping for their kids. Lilliput loyal customers contributed 12% of total sales during the time of recession that is after November. During the past years it could be seen that company has not provided any promotional offers to their customers which is very important source for building a long lasting relationship with them. Slide 11: Impact of recession on Lilliput kid’s wear As per the findings during the month of October, November, December the footfalls have declined Till last year Lilliput provided 50% discount to their customer but as they were aware with the situation they increased their discount by 20%. The company went for the cost cutting that is they removed the guards from the stores. The company also stopped the production of their certain garments which were expensive. Slide 12: CONCLUSION The kids’ wear market, which has been assessed at Rs13,000 crore with Rs 3,000 crore being branded, can easily be described as the next growth industry with a large young working population and increasing number of double income families with high disposable surplus. Additionally, kids are highly self conscious and can be easily affected by peer pressure, at a very young age, and thus can be very demanding, often at the cost of the parent’s peace of mind if not their pockets. The analysis also shows that price of the clothes is a major deciding factor in the purchase of the apparel along with the design and the fabric used. Thus, it is important for the company to focus on these areas to increase their sales. The order of the day is quality and smart clothing at reasonable prices. In the kid’s apparel market, the large variety, segmented customer profile and changing tastes plays a big role. Also, the children’s buying behavior, influence of parents and media makes a huge difference in the purchase decision. One needs to watch one’s every step while entering a crowded and competitive market. Market research and consumer insight led branding is the need of the moment. Slide 13: THANK YOU

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