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Par   •  16 Décembre 2018  •  Analyse sectorielle  •  952 Mots (4 Pages)  •  132 Vues

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Project Description

Objective: To expand the number of stores across the country over the next 5 years

Competitive Advantage: Tier2/3 cities have high growth potential as the awareness about branded retail is increasing. People in these cities are increasingly becoming brand conscious. ABFRL intends to become a first mover in such un-tapped tier 2/3 cities to cater to the growing branded fashion needs of an increasing market.


  • To increase sales by 13% y-o-y.


  • To expand business to tier 2 and tier 3 cities.
  • To expand fastest revenue generating segment (women wear) at ABFRL in terms of sales, ROI etc.
  •  Increase customer retention and repurchase rate.
  • Achieve outstanding customer service level.

Internal/Operational processes

  • Marketing management- Develop and implement a promotional plan to drive increased business.
  • Improve distributor and supplier relationship for the new business.

People/Learning strategic objectives

  • Culture: To align incentives and staff rewards with performance after expansion of business.
  • People: To employ professionals who can implement the strategies involved in expanding the business.
  • Training: To train the leadership and team members to work on the new segment of the business.


ABFRL will target untapped tier 2/3 cities to undertake the expansion of their stores.


  1. Identification of Prime cities for expansion
  2. Strategy Evaluation
  3. Launching program and customer loyalty assessment
  4. Options available for funding

Project Schedule



Identification of Prime cities


Assessing the demographics to get target segment


Evaluation of logistics, warehouse and store locations


Obtain permits and licenses


Measure gap between local demand and supply


Recruit, acquire and train talent for taking over locations


Devise launch program and marketing strategies for new locations


Creation of loyalty program


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Identification of prime cities has to be completed before the start of any other task. Evaluation of store locations needs to be done prior to obtain the licenses for the government. Whereas local talent can be hired and training program can be started in parallel.

Key Assumptions

  1. FDIs continue to come to the prime cities and government continue with its infrastructure initiatives
  2. Demand from Tier-2 and 3 continue to increase
  3. Will be able to retain customers

Key Resources required

Funding- ABFRL had a positive AFN in the previous Financial year 2017, which suggests that company should raise funds from outside and as also as the debt-to-equity ratio is less than 2:1, company has an option to raise through debt for their expansion.

Franchise model would be another option which the company can look into in order reduces the funding requirement.

People- Today tier II cities such as Jaipur, Lucknow, Patna and Indore are recording much higher growth rate than tier I cities as Mumbai or Kolkata. With growing education centres in these cities are giving scope to wider employment opportunities. On QuikrJobs platform, approximately 40% of the traffic is from Tier-II and III cities.

Technology- Technology is disrupting the traditional models of business today. ABFRL can better leverage Big Data in asserting their position in the market. It can be noted from the annual report of ABFRL that 93% of sales in Pantaloons and 51% in exclusive Brand stores came from loyal customers.


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