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Proposal to G2000 Apparel Limited

Proposal to G2000 Apparel Limited. How c an Thailand Merchandise Purchase Volume b e Increased by 30% in One Year t hrough the Increase in Sales by the Existing Franchisee?. Jane Lam 97194890 Jason Chen 08934099 Roger Gao 08934166 Roy Ng 08934233 Stanley Tsui 08936463 October 2009.

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Proposal to G2000 Apparel Limited

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  1. Proposal to G2000 Apparel Limited How can Thailand Merchandise Purchase Volume be Increased by 30% in One Year through the Increase in Sales by the Existing Franchisee? Jane Lam 97194890 Jason Chen 08934099 Roger Gao 08934166 Roy Ng 08934233 Stanley Tsui 08936463 October 2009

  2. The Story Line

  3. Relation of Shop Space and Sales growth To achieve 30% growth, Franchisee need to increase X% shop space. 26% 26%

  4. Sales Performance of shopsin different locations Opening shop in high traffic location yield better Sales Sales (Per Square Feet Per month) Shopper Flow Rate (Per Month) Source: Based on Thai franchisee internal statistics

  5. Comparisonof Profit Margin of Shops and Counters Counters has higher profit margin vs Shop did. Source: Based on Thai franchisee internal statistics

  6. Capital Requirement to Setup Shops and Counters Counters need less CAPEX to setup. Source: Based on Thai franchisee internal statistics.

  7. Lead time to Setup Shops and Counters Shop lead time 12mths average size 3000 sq.ft. Given 12mths, increase 3000 sq.ft. Counter lead time 1mth average size 600 sq.ft. Given 12mths, increase 4800 sq.ft. Area Expansion Efficiency : Counter is 60% higher than Shop Source: Based on Thai franchisee internal statistics and estimations

  8. Comparison of SPF between G2000 Thai and Thai industry average Source: XX

  9. Comparison of SPF between shops and counters Source: XX

  10. Time to Grow Market Share – Competition is still low in Thailand Source: XX

  11. Market Position of G2000 in Thailand The market is not captured. Captured it ASAP or other competitors will come in.

  12. Profit forecast if shop space increased by X% in 1 years

  13. Other Initiativesto Encourage Franchisee’s new shop opening • Sponsor Advertisement and Promotion for new shops • Longer payment period for first order of each new shops

  14. Appendix 1: Interview Schedule Interview 1: Time: The interview will be arranged to be carried out on next week (28-Sept ~ 6-Oct). (The actual date and time is pending) Venue: via the phone Interviewer: Jane Lam, Stanley Interviewee: G2000 Franchisee in Thailand - Ms Sung of C Trading, Thai. *************************************************************************** Interview 2: Time: The interview will be arranged to be carried out on next week (28-Sept ~ 2-Oct). (The actual date and time is pending) Venue: via the phone Interviewer: Jane Lam, Roger Interviewee: G2000 Franchisee in Thailand - Ms. Alicia (Fashion Buyer). *************************************************************************** Interview 3: Time: The interview will be arranged to be carried out on next week (28-Sept ~ 6-Oct). (The actual date and time is pending) Venue: via the phone Interviewer: Stanley, Jason Interviewee: Thailand Retail Association - Mr. Kong *************************************************************************** Interview 4: Time: The interview will be arranged to be carried out on next week (28-Sept ~ 6-Oct). (The actual date and time is pending) Venue: via the phone Interviewer: Jason, Roy Interviewee: Thailand Retail Association - Mr. Tum *************************************************************************** Interview 5: Time: The interview will be arranged to be carried out on week 28-Sept ~ 6-Oct. (The actual date and time is pending) Venue: Face-to-face Interviewer: Roy, Roger Interviewee: G2000 HK – Ms. Jane Lam *************************************************************************** Questions on staff motivation: Will G2000 set the salary range for different grade of Franchisee’s frontline store staff? Giving a example that McDonald has McDonald's University for training their Franchisee’s employees (though this is a different industry than G2000 Apparel industry), will G2000 consider to set up such centralized training institute to cultivate the G2000's culture and best practices to each of its Franchisee especially for Thailand ? Any staff motivation scheme has been put in practice in Thailand? e.g. Monthly Best Store Staff etc. How G2000 provide the channels for customer to complain or reflect their ideas/comment towards to frontline staff service? How regular is the frontline staff training? In what format / modes the training is provided? Any web-based online training? Questions on selling locations arrangement: How long does it take to expand an existing shop / counter? How much would it cost to expand an existing shop / counter? Comparing to similar regions, is there any shop/counter in Thailand appear to have reached its limit in sales per foot? How long does it take to open a new shop / counter? How much would it cost to pen a new ship / counter? Has G2000 / franchisee done any study on shop expansion / relocation? How many shops/counters do G2000 currently have in Thailand? In which cities? Questions on advertisement & promotion: What is the target market segment of G2000 in Thailand? How price sensitive the target customers are? Is there data available to measure customers' price sensitivity? In your opinion, how G2000's customers within the target segment perceive the brand? High end or low end? Who are the major competitors in Thailand? What are the franchisee's A&P activities in the previous years? Please provide frequency of such activities. Which type of A&P and also which channel has proved to be more effective? Is there data available to measure effectiveness of historical A&P activities? (like sales volume reaction after a period of A&P) Are you willing to spend money to do more advertising this year (like TVC)? If so, how much budget is available? Questions on new corporate client business: Do you think if other apparel co. will join the market as well? Will Thai franchisee willing to invest in IT to handle customer requirement of corp. market? What is the view of general Thai on HK brand (brand equity)? Will you think a lot of fix cost investment involved if franchisee joins this new market? Is there any other company in Thai do Corporate Apparel? Will it be a practice for corp./school to produce event uniform in Thai? Will it be a practice for big corp. in Thai to sponsor their executive clothing? If it is not, will you think it is a possible new market? Is bargaining power of corp. customer high? What about the expected profit margin of corp. client market? Do you thing they are price sensitive?

  15. Appendix 2: Work Plan (1)

  16. Appendix 2: Work Plan (2)

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