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# MARICO OVER THE WALL

Name

## Institute Roll Number

E-mail ID

Mayank Khandelwal

PGP/18/148

mayankk18@iimk.ac.in

Sriram Raja

PGP/18/169

sriramr18@iimk.ac.in

Vaibhav Kayathwal

PGP/18/173

vaibhavk18@iimk.ac.in

Optimal Coverage

1.8-2X

## MFL in Apparel Industry:

APPROACH LP MODEL TO MAXIMISE MARGINAL OUTLETS RoI at 22% FOR ALL DISTRIBUTORS
X : Proportion of wholesale outlets
T : Throughput for a wholesale
Maximise
reached
store
X : Proportion of premium retail
T : Throughput for a premium
(Marginal
outlets reached
retail store
X : Proportion of mass retail outlets
T : Throughput for a mass retail
RoI
Constraint
reached
store

[(X

40%)
+
(X

24%)
+
(X:
T 18%)for
+ a(X
T 18%)] 22%
X : Proportion of marginal retail
T
Throughput
marginal
[(X T) + (X T) + (X
T) +
(X T)]
outlets reached
outlet
store

Z = X
Outlets)

## Retention Margin Constraint

[(X T (4.5%-2.2%)) + (X T (4.5%-1.5%)) + (X T (4.5%-5%)) + (X
T (4.5%- M %))] 1.5%
[(X T) + (X T) + (X T) + (X T)]
Store growth constraint
X Previous proportion of X, a = 1,2,3 Maintain the same number of stores, growth
through marginal retail.

RATIONALE

Keeping the individual distributor RoI at 22%, we can maximise the reach of marginal outlets using
minimal number of wholesale stores.
Compensating the RoI using premium stores would mean more number of premium stores and lesser
number of marginal stores as compared to compensation through wholesale stores
Two solutions have been presented one with marginal outlets assumed to be serviced at a cost of 8.1%
and one at the cost of 3% with the benefit of progressive growth at (N+6)
While doubling it is assumed that there are sufficient number of stores available in all channels;
similarly the new composition after doubling will not reduce the of wholesale, premium or mass retail

## MFL in Apparel Industry:

SOLUTION

Deliverables Summary:
Focus on various category/ segment where MFL share is low in suitable channels which offers high business potential with better branding
and greater profitability of various Portfolio
Whitespace: Exclusive Apparel brand for women (Premium) and Women Fashion Lingerie (Premium) as new Brand or Sub-Brand and suitable
Channel-Brand Strategy: Based on the advantages and other characteristics of different channels, different focus levels can be given to
channels based on the requirement of the brand to form a synergic business model
Customer-Brand Connect: Launch new applications (Dr. Fashion, Trendsetter), engage customers in various programs and have interesting
My Fit VAS in EBOs to build brands
MFL Portfolio Strategy: New offerings (Brands or Sub-Brands) with focused association which would compete against existing TOMR brands
in various product categories
Whitespace: Intangibility Factors Analysis