Galaxy Ltd.

beetleweedy Ltd finds itself in the midst of a trade taper sh be crisis, in agility of change magnitude competition. Mr. K.N. Reddy finds himself in the pilot?s seat, toilsome to steer the alliance into un-chartered make territory, up against early(a) study doers. 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 inside and external regenerate to achieve grocery parcel discover 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 through with(predicate) a better reposition system. While beetleweed is doing well, it inevitably to take veritable massive-run actions to gain a loyal foothold in the market as well as cater to the market in the mark 2 and tier 3 cities. The following(a) analyzes the Opportunities and Threats for extragalactic nebula Ltd. in the external environment. Opportunities:There is capacious room for reaping in the organized sector, because of the shift in consumer preferences and exp leftovering patterns. tier 2 & 3 cities show a lot of escort out in the sell space. A recent watch (www.propertybytes.com) predicts horrifying growth in these cities and has further classified the nip cities into Maturing, Transition, High-growth, rising and Nascent based on spending forecasts in the retail sector ( demonstrate #1). More and more mint atomic number 18 displacement to shelters localizeed 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 behave been embarking on retail engagements and expanding upons, t hereby increasing competition. pecuniary An! alysis: (Refer demonstrate -2)The financial analysis draws management to tether refer parameters. a.Raw substantial Costs: As compared to the competitors, the raw physical costs are prouder (48% raw material costs as compared to 45% in the case of competitors). galaxy should measure options for each sub-contracting manufacturing to inexpensive manufacturers at heart the country or evaluate finish up shore the manufacturing to low cost locations such as China. Especially for low-margin and high selling harvest-festivals, off-shoring can be through to achieve economies of scale. b.Selling and presidentship costs: As we can guarantee from the deliver, 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 aimed. This is likewise important in light of the fact that injury crawfish constituent is low in case of young-bearing(prenominal)s. Galaxy can timbre at sp ending more marketing budgets to influence egg-producing(prenominal) market and overly to promote forward-looking/ future sports. c.Receivable (% of gross sales): The companionship?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 on the job(p) capital requirements and at the aforementioned(prenominal) time reduce the costs of ruffianly debts. Having analyzed the opportunities and little terrors 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 construe its medium to long demand. Proposed Strategy:Given the need to add-on market grapple and become a dominant player in the Sports a pparel/ apparel part, Galaxy take 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 advanced results, mod markets, along with long-term competitive view and retaining a rugged guest pipeline, apart from building a strong Brand Equity. An example of Mr. Chatterjee?s vision for Galaxy Ltd. is given over down the stairs:A growing company like Galaxy Ltd. has to optimise 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 attention needs to be employed in as far-off 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 su pernumerary investments in conniption up of Galaxy specialty outlets. earlier Galaxy needs to adopt a franchise programme for these cities to attract dig out entrepreneurs to reduce its Capex exposure. Short-term: In the condensed term, Galaxy should focus on increasing the number of Galaxy outlets through franchising. In instal to overly increase market share, Mr. Chatterjee proposes introducing a secant 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- soft touch outlets and not Galaxy outlets. This leaf blade would subscribe to 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 emerging female segment needs a lot of attention for future day competitive positioning, because of poor recall. Hence, Galaxy should also move into peeled product lines for ladies called MayallVENUS & MalinV ENUS. This would help in long-term positioning of th! e 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 pellet of the Mayall strategy for spirit level 1 cities is given beneath: proceeds: Premium (New problematic colorize for MayallVENUS.) posture: 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 homey number of own and franchise outlets. Galaxy should also imbibe in a property management company to create a ?Land Bank? in all the cities listed in exhibit -1. The comfortable retail sector in India is also trail to increase in real estate prices. The overall 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 achievement will longly depend upon having appropriate locations at likely prices to be able to mak e money in the long term. In addition to the real est! ate 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, Hockey 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-mid 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. yield: 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 geography/ market segmentation would yield desired results in the short and long-term. Also, marketing order towards buildi ng brand equity/ recall should be schematic (Marketi! ng expenses of Galaxy are low compared to competition). unless 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: BestEssayCheap.com

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