Presented By:Group 5

UM15006 Akash UM15036 Priya Ranjan MohantyUM15016 Chandan Das UM15048 Somil MalhotraUM15025 Ketan Choudhary UM15057 Prateek Gupta

Current Marketing Situation Product Situation : Evok Stores showcase over 20000+ world class contemporary

products in Home Furniture, Home Décor etc. Company Situation : Evok, is a retail brand of Hindware Home Retail, a subsidiary of

Hindware Sanitary ware & Industries Ltd retails its range of home furniture on the website. Consumer Situation

Growing urbanization & residential landscapes, changing consumer lifestyle, modern retail sector opportunities are on the rise

Customers aspiring for Value for Style interior solutions“ Commercial furniture segments cater to the office space and hospitality industry Growth in IT and ITES segments has provided a thrust to commercial furniture segment. Major part of office furniture market caters to operative desks, seats, storage cabinets

and beddings in case of hospitality industry Market Situation : Changing customer aspirations and rise in e-tailing is driving business.

Thus the e-tailing market made furniture players to resort to the omni-channel route.

PESTEL Analysis

Political

• Current Government is boosting entrepreneurship and organized business sector and thus high demand is expected

Economical

• Indian Economy is the fastest growing economy

• Increase in FDI

• Reduction in Import duties

Social

• Companies/People becoming brand and quality conscious.

Technological

• Low cost advantage in India will help in reduction in cost

Environmental

• Reduction in Timber harvest a major issue

• Due to National Forest Policy of India, ban on falling of trees in forests

Legal

• Labor Laws• Change in

Taxation policies

SWOT Analysis

• Variety of products in different price ranges

• Strong distribution network• ‘Design to Build’ service• End-to-end furnishing solutions• Presence of brick & mortar stores in

select cities

• Business model specific for B2C functions

• Unavailability of standardized furniture.

• Need for low cost product

• Competition in the market• Consumer Mindset• Government Regulations• Low cost substitutes• Growing demand for greener

products

• Untapped Market• Mergers and Acquisitions to expand• Real estate sector growing at a

rapid pace• Procurement of sustainable

products

Stre

ngth

sO

ppor

tuni

ties

Weakness

Threats

SWOT Analysis

Financial ObjectivesYear Sales Unit

CostRevenue

EBITDA

Market Share

2016 1000 100000 100 mil 25 mil 10%

2017 1100 100000 110 mil 27.5 mil

11%

2018 1265 90000 113.85 mil

28.46 mil

12.5%

2019 1518 90000 136.62 mil

34.15 mil

13.5%

2020 2000 90000 180 mil 45 mil 15%

Marketing Strategy

Maximizing profit margin

Quality Leadership

Long term customer

relationshipCommunicatio

n Objective

Marketing Objectives

SegmentationDefining market

boundaries

Major corporations

Government and private institutions

SMEs and MSMEs

Others (export)

Defining segmentation variables

Demographic variables

Operating variables

Purchasing approaches

Situational factors

Target Market

Major corporates

Small business Enterprises

Home based offices

Institutions (Restaurants, malls, banks and educational spaces)

Others

Positioning Strategy• Our positioning strategy is designed from the findings of the 3C analysis as below:

CustomerChannelCompetition: As our product is being offered, we have a lot of

direct competition. Some are:• Godrej Interio• Zuari• Pepper Fry• Fab Furnish• Urban Ladder

Pricing StrategySerial No. Cost Element Unit Cost of each

element (In Rs ‘000)

1 Material 252 Production Cost 30

3Selling, Distribution and General Administration Cost

15

4 Promotion & Other Costs 55 Total Cost 75

Particulars (In Rs ‘000)

Total Cost per unit 75

Margin (33.33%) 25

Unit Cost (Cost + margin) 100

Inclusive of margins:

Operational Cost Structure (For standard office modular conference table (1) and chair (10) set):

Distribution Strategy

Distributors 155

Retailers 1300

Depots 21

Exclusive Distributors 60%

Owing to this strong network it is well equipped to handle the channel distribution of office furniture.

Owing to increased depots, distributors have now low inventory cycle

Evok has implemented ERP and a strong IT platform

Active brand building and strong network of service centres has helped monitor interactions

It also plans to increase its distribution network by addition of over 400 distributors and 3000 retailers in the next 5 years covering almost every town in India with a population of over 25000.

Sales Promotion Strategy

• Print Media& Ads – industry-specific, trade and lifestyle magazines such as GQ, Vogue etc. The print ads also serve to communicate and connect to the customers about importance of quality durable furniture.

• Visual Media (TV) – Product features demonstrated through sponsored Programmes, ads, Company executives’ interviews.

Advertising Strategy

• PoP Marketing – Better Point of Purchase (PoP) marketing in the form of better and stylized catalogues and brochures at the dealers and experience centres

• Gifts & Give away – Evok can also come up with Gifts or some goodies to be given to dealers or retailers on purchase such as gift/discount coupons etc.

• Dealer Promotion Schemes – Coming up with dealer promotion schemes wherein it can give some sort of incentives such as foreign trip or complete office makeover on continuously achieving new targets.

Sales Promotion Strategy

Internet Marketing StrategyOnline Forums

Virtual Trade Shows

Ratings & Reviews (Digg, Delicious etc)

WikisPrivate Online Community

Sites

Open Social Networks - LinkedIn

and Face book

Interactive and 3D

Demonstrations

Podcasts (Downloadable Media, Audio &

Video)

Blogs – Word Press,

BlogSpotOnline

Advertising

Online Video

Micro Blogs – Twitter

Action PlansBusiness

Objectives Tactic UsedAchieve Sales of 10,000

units in 2016Awareness through print media & TV ads about its quality and durability

Justify the costs to aggressively market the product to the B2B client through company presentations

Achieve sales growth of 10% in 2017

Long term contracts are most suited for this product. Once adopted and implemented, the product will become a standard in all tier 1 cities & some tier 2

cities. Sales pitch and tenders should be aggressively bid yet not to allow hurting the bottom line.

Achieve Market Share of 13.5% by maintaining

the CAGR of 15% YoY for next 2 years

Competitors are bound to decline the prices competitively hence a strong brand image becomes very important to prevent them from making a dent in sales.

Become a market leader in office furniture space

by 2020 (15% market share)

Conducting Needs Gap analysis & incorporating newer technological developments into the products to keep it competitive.

New developments should be futuristic and anticipate the changes above. Their time to market should be fast so that, the core competency of superior technology

remains.

Expected Financial Outcomes

25%

30%15%

5%

8%

17%

Percentage Break Up of Revenue

MaterialsProduction CostS, D, G & A ExpensesPromotion & Other CostsTax (@ 32.445%)PAT

For year 2016, 2017(Phase 1)• Unit Price=1 Lakh• Margin=33.33%

• PAT=17% of revenue

28%

33%

17%

6%5%

11%

Percentage Break Up of Revenue

Materials Production Cost

S, D, G & A Expenses

Promotion & Other Costs

Tax (@ 32.445%)

PAT

For year 2018, 2019, 2020 (Phase 2)

• Unit Price= 90 Thousand• Margin= 20%

• PAT= 11% of revenue

Revenue, PBT, PAT

2016 2017 2018 2019 2020

10.0

0

11.0

0

11.3

9

13.6

6 18.0

0

2.50 2.75

1.90 2.28 3.00

1.69 1.86

1.28 1.54 2.03

In Crores Rupees

REVENUE PBT PAT

Controls

Annual Plan

Control

Marketing

Efficiency Control

The forecasted/Targeted figures will be compared against actual figures. The variations will be computed. Cause of variation will be found and corrective

measures to be taken.

Conclusion EVOK is one of India’s leading furnishing solution provider

They will leverage the core strengths of the group (HSIL) in understanding diverse consumer & trade behavior, retail distribution network, brand equity, global sourcing & cost effective supply chain management, which are critical success factors in this sector

EVOK through its project division will also work in close association with architects, interior designers, builders & corporate community utilizing the group networks & relationships for retail, institutional & projects business.