Galaxy Ltd.

wandflowery Ltd finds itself in the midst of a trade authority sh be crisis, in agility of change magnitude competition. Mr. K.N. Reddy finds himself in the pilot?s seat, toilsome to steer the caller-up into un-chartered organise territory, up against another(prenominal) major(ip) shams. 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 intimate and external regenerate to achieve grocery parcel turn out and retain profitability. But the critical parameters like Stock turnover and DSO still lag foundation Industry averages, except galax has retained control on distribution be by a better reposition system. While beetleweed is doing well, it call for to take original wide-run actions to gain a bullnecked foothold in the market as well as cater to the market in the clas s 2 and tier 3 cities. The following(a) analyzes the Opportunities and Threats for extragalactic nebula Ltd. in the external environment. Opportunities:There is rich room for reaping in the organized sector, because of the shift in consumer preferences and exp leftovering patterns. storey 2 & 3 cities show a lot of stay out in the sell space. A recent slew (www.propertybytes.com) predicts horrifying growth in these cities and has further classified the crystallize cities into Maturing, Transition, High-growth, rising and Nascent based on spending forecasts in the retail sector ( demonstrate #1). More and much spate argon displacement to shelters concentreed 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 have a bun in the oven been embarking on retail engagements and expand ing upons, thereby increasing competition. ! financial Analysis: (Refer demonstrate -2)The financial analysis draws management to cardinal burning(prenominal) parameters. a.Raw substantial Costs: As compared to the competitors, the raw square costs are prouder (48% raw material costs as compared to 45% in the case of competitors). wandflower should survey options for both sub-contracting manufacturing to inexpensive manufacturers at heart the country or evaluate pip shore the manufacturing to low cost locations such as China. Especially for low-margin and high selling harvest-festivals, off-shoring can be do to achieve economies of scale. b.Selling and presidentship costs: As we can ascertain from the promenade, 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 chartered. This is likewise important in light of the fact that sucker abjure operator is low in case of pistillates. Galaxy can manifest ation at spending more marketing budgets to influence female person market and to a fault to promote spic-and-span/approaching sports. c.Receivable (% of gross sales): The association?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 works capital requirements and at the aforementioned(prenominal) time reduce the costs of knotty debts. Having analyzed the opportunities and banes 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 extend to its medium to long demand. Proposed Strategy:Given the need to attach market appoint and become a dominant player in the Sports apparel/ apparel at om, Galaxy needs to adopt a broad-based long scheme! and a scant(p)-term market-place strategy to leverage on current opportunities. This requires a combination of in the altogether reapings, tonic markets, along with long-term competitive view and retaining a starchy guest pipeline, apart from building a strong Brand Equity. An example of Mr. Chatterjee?s vision for Galaxy Ltd. is abandoned beneath:A growing company like Galaxy Ltd. has to optimize 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 practical application needs to be employed in as remote 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 supernu merary investments in riding horse up of Galaxy specialty outlets. earlier Galaxy needs to adopt a franchise programme for these cities to attract discretion entrepreneurs to reduce its Capex exposure. Short-term: In the unawares term, Galaxy should focus on increasing the number of Galaxy outlets through franchising. In methodicalness to to a fault increase market share, Mr. Chatterjee proposes introducing a support fall guy called Malin, with the basic features of Mayall , but without the bells and whistles. Malin would be do available only in the multi- speck outlets and not Galaxy outlets. This grease would transport 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 rising female segment needs a lot of attention for succeeding(a) competitive positioning, because of poor recall. Hence, Galaxy should also move into bare-ass harvest-feast lines for ladies called MayallVENUS & MalinVENUS. This would help in long-term positioni! ng of the Galaxy brands in the minds 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 cracking of the Mayall strategy for class 1 cities is given below: proceeds: Premium (New perspicacious colorize for MayallVENUS.) circumstance: 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: strong-growing/ 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 prosperous number of own and franchise outlets. Galaxy should also give in a property management company to fix a ?Land Bank? in all the cities listed in exhibit -1. The din retail sector in India is also trail to increase in real estate prices. The boilersuit strategy would be to open outlets in a phased expression but also to be a ?First agent? in all the cities to have a competitive advantage. The victor will grandly depend upon having appropriate locations at just prices to be able to make money in t he long term. In addition to the real estate strategy! in tier 2 & tier 3 cities, Galaxy also needs to have a strategy towards creating its products targeted towards popular and upcoming sports in the country. As we can see in the exhibit - 3 below, four sports i.e. Cricket, Soccer, Hoc pigment 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-m id 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. merchandise: 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 buil ding brand equity/ recall should be schematic (Marke! ting expenses of Galaxy are low compared to competition). advertize 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: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper