This study aims to prepare a marketing plan for Woolworths Group, which is the top most retail brand in Australia. While preparing the marketing plan, the study focuses on several aspects like, mission of the company, strengths and weaknesses of the company, industry condition, financial aspects and many others. The aim of the marketing plan is to improve the current business performance of Woolworths Group through proper planning and strategies.
Mission statement - The mission statement of the company includes the followings:
Role or contribution of the unit:
The role of this particular unit of the company is to improve the financial condition by increasing the profitability and business opportunity (Woolworthsholdings.co.za 2017).
Definition of the business:
Woolworths is the most popular retail organization in Australia. The business of the company deals with a wide product range, which include – grocery, cloth, electronics and many other products (Woolworthsholdings.co.za 2017).
Distinctive competency:
The product range and product quality are the main factors that makes the business of Woolworths distinctive from the other retailers in Australia (Woolworthsholdings.co.za 2017). At the same time, the service quality of the organization is also of high quality and this contributes more strength to the distinctive nature of the business.
Indications for the future direction:
The management of Woolworths Group is now planning to move into a new business segment and that is Herbal product segment (Woolworthsholdings.co.za 2017).
Summary of SBU’s performance:
The performance of a company can be better understood by analyzing the financial statements or reports of the company in detail. In order to prepare the marketing plan for Woolworths Group, the financial performance of the company of last three years is needed to be analyzing in detail. The financial outcomes of the company in last three years are shown below:
|
3 years ago |
2 years ago |
Last year |
Turnover |
40012 |
61970 |
72137 |
Gross profit (%) |
38.73% |
37.36% |
36.58% |
Gross margin (000 ECU) |
15498 |
23150 |
26386 |
(Source: Woolworthsholdings.co.za 2017)
The above table is indicating that the performance standard of Woolworths Group has declined gradually. Three years ago, the profitability of the company was 38.73%, which declined to 37.36% in the next years and again in the last year, the profitability declined to 36.58% (Woolworthsholdings.co.za 2017). Therefore, though the gross profit margin and turnover have increased, the profitability of the company moved in the negative trend.
The main reason behind the decreased profitability trend is increase of indirect expenses of the company. If the financial statements of Woolworths Group are analyzed, it can be identified that in 2014, the store cost was Rm7614, which increased to Rm13511 in 2015 and it again increased to Rm15640 in 2016 (Woolworthsholdings.co.za 2017). Another reason behind the decreased profitability of the company is low revenue growth rate of the company.
Summary of financial projections
(Source: Created by author)
Considering the financial projections for three years, it can be said that the company is expected to generate revenue at an increasing trend from the current year. During the year 2017, the company is expected to increase revenue at an approximate rate of 28% while increase in contribution at a rate of 50%. However, other than the revenue and contribution, the management of the company expects increase in costs and business expenses due to the incorporation of new and improved technologies and resources. In view of the projected financial position, company is expected to maintain increasing trend in net worth during the three years while the balance of reserves reflected increasing trend (Dos Santos, Svensson & Padin 2013). It has been noticed that the value of assets reflected increasing trend at higher rate during the third year while accordingly amount of borrowings has been estimated at an increasing rate required to meet the working capital. In addition, cash flow statement of the projections represented estimated cash inflows and outflows required to operate the business activities. Statement of cash flow represented cash used in the investment activities while cash inflow from the financing activities at an increasing rate (Jensen 2013). Accordingly, the company expects to earn cash inflows at an approximate rate of 7% during the three financial years that reflects the maintenance of sustainable growth from the projected business plan.
SBU description
The SWOT analysis of Woolworths Group is done by considering the Australian market. The company is originated in Australia and currently, it has the biggest market in Australia (Manai & Holmlund 2015). However, at the present scenario, there are many other retail companies, which are operating their business successfully in the Australian market. Due to this, the level of competition has increased. Moreover, the quality of the products of the other retail companies in Australia is also good. Therefore, at this situation, it is very important to identify the strengths, weaknesses, opportunities and threats of Woolworths Group before preparing the new market plan for improving the business of the company (McCarroll & Garrett 2009).
Critical success factor
There are few critical success factors, which are important for achieving the success in the Australian retail industry. These critical success factors are as follows:
- Innovation –One of the most important critical success factors is innovation. The customers in the market always are fond of the new and innovative products (Tennent 2013). However, bringing innovation at every time is quite difficult for the company. Due to this, it is considered as the critical success factor for the company.
- Affordable price –Customers in the market always prefer to purchase the products and services within the affordable price range. However, there is standardized price, which can be considered as the affordable price. Due to this, the companies sometimes cannot understand at which price range the customers will be satisfied most (Westwood 2016).
- Service quality –Customers always prefer to go to the outlets, where they get better services. Nowadays, the expectations of the customers are very high. They always demand more services from the companies (Westwood 2014). However, to provide the service, the company requires spending huge amount of fund, which increases the cost level of the company. Therefore, providing better services to the customers by maintaining the cost at low level is very critical for the companies.
- Packaging –Packaging is another critical success factor for the retail companies in Australia. Packaging not only helps to attract the customers, but the longevity of the products also depends on proper packaging (Won Jung Kim 2011). However, the customers at present business scenario always demand for attractive packaging, which is much costly for the retail products. Therefore, identifying the attractive packaging within the required cost level is very difficult.
- Sales promotion –It is the other critical success factor for every business organization. Sales promotion is the tool, which is essential for making the customers aware of the products and services (Tennent 2013). Therefore, the customers look for the companies, which do attractive sales promotion activities like, free sample distribution, providing discounts, arranging for contests and many others.
Weighting the Critical Success Factors (CFSs):
CFSs |
Weight |
Innovation |
25 |
Affordable price |
30 |
Service quality |
20 |
Packaging |
10 |
Sales promotion |
15 |
Total |
100 |
Strength and weaknesses analysis of Woolworths Group and its competitors
|
Woolworths Group |
Wesfarmers Limited |
Coles Group |
Myer |
David Jones Limited |
Innovation |
7 |
6 |
6 |
5.7 |
5 |
Affordable price |
7 |
6 |
5 |
7 |
6 |
Service quality |
8 |
8 |
7 |
7 |
7.4 |
Packaging |
9 |
8 |
8 |
7.7 |
7.2 |
Sales promotion |
9 |
9 |
8 |
8 |
7 |
Total score |
40 |
39 |
34 |
35.4 |
32.6 |
(Source: Created by author)
Opportunities:
Serial Number |
Opportunities |
1 |
The retail industry is an attractive area of business for the organization in Australia. The number of customers is high in this sector (Won Jung Kim 2011). Therefore, there is more scope for increasing the number of customers in this sector. |
2 |
The demand growth for the retail products never goes down. Therefore, there is high growth opportunity in the external market of retail industry. |
3 |
The technological infrastructure in Australia is improving day-by-day. Due to this, the scope for improving the communication level within the company as well as with the external stakeholders is much high in the retail industry (Westwood 2016). It will actually grow the business in future. |
4 |
Wide product range is another opportunity for the companies in the Australian market. There are several products, which come under the retail product category (Tennent 2013). Therefore, there is high market growth opportunity in the market if the company introduces new products in the market. |
5 |
There is also high market growth opportunity in the markets of developing countries. The management of Woolworths Group can improve the performance standard of the business by expanding the business in the developing countries. |
Threats:
Serial Number |
Threats |
1 |
The big threat for Woolworths Group at this current business scenario is the high market competition. The level of competition has increased because of the improvements in the infrastructure (Manai & Holmlund 2015). Every retail organizations in the country are getting advanced technologies and other facilities, which are helping the companies increasing their performance standard. |
2 |
Globalization to the high extent is another threat for the company. Due to the high level of globalization, many foreign retail companies are coming to Australia for better business scopes (Jensen 2013). This is also influencing the competition level in the Australian Retail industry and this ultimately increasing the threat for the company. |
3 |
Another threat for the Woolworths Group is the innovation done by the competitors of the company (Woolworths Group 2017). The big competitors of Woolworths are – Wesfarmers and Coles and these two companies have brought several innovative products and services in the market. Due to this, the market share of Woolworths has decreased at current scenario (Woolworths Group 2017). |
4 |
The legal restrictions are also the threats of the company in present days. The rules and regulations in Australia have increased nowadays, which sometimes create problems for the business organizations like, Woolworths Group (Woolworths Group 2017). |
5 |
Restrictions in the foreign countries are also the threats for Woolworths Group (Woolworths Group 2017). There are many countries in the world, where the level of restriction is very high because they want to safe guard their domestic companies. In such countries, the restrictions are the threats for the company. |
Key issues that need to be addressed
Serial Number |
Key Issues |
1 |
The employee-management conflict is needed to be solved immediately to implement new business improvement strategies (Woolworths Group 2017). |
2 |
The cost structure of the company is very high, which is another issue for the company and it is needed to be solved as soon as possible. |
3 |
The store management of the company is facing the problem of “empty racks” at present days, which is creating negative brand image. So, the management of the company needs to solve this problem (Woolworths Group 2017). |
4 |
The supply chain of the company needs to be improved as soon as possible. |
5 |
The company requires arranging new and innovative promotional strategies to capture the market in a better way (Woolworths Group 2017). |
Key assumptions for the planning period
1 |
There will not be any big change in the market demand. |
2 |
The level of competition will not increase for next three years (Woolworths Group 2017). |
3 |
There will not be any new competitor in the market. |
4 |
The management of the company will be efficient enough to operate the business properly (Woolworths Group 2017). |
5 |
There will be no change in the company policy |
6 |
There will not be any changes in the legal structure in the country (Woolworths Group 2017). |
7 |
The political situation of the country will be stable. |
Key objectives
To increase the profitability within next three years |
To increase the level of customers satisfaction |
To increase the market share by 7% in next three years |
To improve the quality of services |
To introduce innovative promotional activities |
To know the possible type of market demand in next three years |
To change the negative trend of profitability in next three years |
To deliver best product and services to the customers |
(Source: Created by author)
Key strategies
Emphasizing on the social media activities to promote the products in a better way and to increase the customer base |
Recruiting new marketing employees to cover maximum market in Australia |
Introducing and implementing new technological infrastructure for better internal and external communication in the business |
Arranging for advanced training sessions for the marketing and in-store employees |
Introducing the home-delivery service for the customers, who live near to the outlets of Woolworths |
Emphasizing on the SMS and Email marketing to provide personalized services to the customers |
Conducting regular market survey to know the changes in the market demand |
Portfolio Summary
Market attractiveness |
Business Strengths |
||
|
High |
Low |
|
High |
|
|
|
Low |
|
|
As per the above business portfolio matrix, the current business of Woolworths Group has high business strength and at the same time, it has high market attractiveness (Woolworths Group 2017). This type of business portfolio is very attractive to every business organization because in this type of business portfolio, the company has high scope for investment and growth. As the company has high capacity and the market is attractive enough, the company can easily improve its performance standard by investing more funds in new product development and existing product improvement (Westwood 2014). Along with that, the company can also invest the fund in the in the promotional activities. At the same time, the investors also get attracted to this type of organization. This is because the scope of gaining high market return is there in this company.
Therefore, in such a situation, it will be suitable for Woolworths Group if it invests its fund for improving the existing business. The company can also take the risk of introducing new products in the market. In order to improve the situation further, the management of the company should emphasize on the business promotional activities.
Assumptions
Every marketing plan prepared by the companies is based on certain assumptions. The management of the companies sets the assumptions to prepare the marketing plan easily. The assumptions that the management of Woolworths Group has followed while preparing the marketing plan are as follows:
- The management of the company has assumed that the political condition within the company in next three years will be stable. The management has assumed this because in last few years, the political condition in Australia is much stable and so that management assumes that this will be maintained in next 3 years.
- The management has also assumed that the board of directors of the company will not change any of the existing business or corporate policy of the company. At the same time, the management will not introduce any new policy also.
- The management of the company also assumes that the competition level in the market will be same in next three years. The management assumes this because in last few years, no big retail firm has entered in the Australian market and so the management of Woolworths believe that in next three years, the situation will be same.
- The management assumes that there will not be any new retail firm in the Australian retail industry.
- The management assumes that the market demand pattern will be same because the company has already introduced several new products, which satisfy the customers to the large extent. Moreover, the company will introduce many new products also, which will keep the customers attracted towards Woolworths’ products.
- The management assumes that their efficiency level will be same or improved in the next three financial years.
- The management also assumes that the government of the country will not introduce any new rule in the three years.
Database and summary of marketing objectives Market segment sales values |
|||||
Sales values |
Last year (t - 1) |
Current year (t0) |
Net year (t + 1) |
T+2 |
T+3 |
Key market segments |
Total company market segment sales share |
Total company market segment sales share |
Total company market segment sales share |
Total company market segment sales share |
Total company market segment sales share |
Demographic market segment – Middle income group |
20970 |
30137 |
34349 |
40911 |
54684 |
Demographic market segment – High income group |
41000 |
42000 |
40000 |
55000 |
70000 |
Total |
61970 |
72137 |
74349 |
95911 |
124684 |
(Source: Created by author)
Database and summary of marketing objectives Market segment Gross profit |
|||||
Sales values |
Last year (t - 1) |
Current year (t0) |
Net year (t + 1) |
T+2 |
T+3 |
Key market segments |
Total company market segment sales share |
Total company market segment sales share |
Total company market segment sales share |
Total company market segment sales share |
Total company market segment sales share |
Demographic market segment – Middle income group |
10000 |
12000 |
8659 |
12632 |
20621 |
Demographic market segment – High income group |
13150 |
14386 |
10000 |
16000 |
20000 |
Total |
23150 |
26386 |
18659 |
28632 |
40621 |
(Source: Created by author)
Product group analysis |
|||||
Product groups |
Last year (t – 1) |
Current year (t0) |
Net year (t + 1) |
T+2 |
T+3 |
Grocery |
Sales value – 30000 Gross profit – 9000 GP margin – 30% |
Sales value – 40000 Gross profit – 16000 GP margin – 40% |
Sales value – 40000 Gross profit – 10000 GP margin – 25% |
Sales value = 45911 Gross profit = 18632 GP margin = 40.58% |
Sales value = 64684 Gross profit = 20000 GP margin = 30.91% |
Electronics |
Sales value – 11970 Gross profit – 3150 GP margin – 26.32% |
Sales value – 12137 Gross profit – 6000 GP margin – 49.43% |
Sales value – 14349 Gross profit – 4659 GP margin = 32.47% |
Sales value = 25000 Gross profit = 6000 GP margin = 24% |
Sales value = 30000 Gross profit = 10621 GP margin = 35.40% |
Cloths |
Sales value – 20000 Gross profit – 11000 GP margin – 55% |
Sales value – 20000 Gross profit – 4386 GP margin – 21.93% |
Sales value = 20000 Gross profit = 4000 GP Margin = 20% |
Sales value = 25000 Gross profit = 4000 GP margin = 16% |
Sales value = 30000 Gross profit = 10000 GP margin = 33.33% |
(Source: Created by author)
Summary of main marketing objectives and strategies
The primary objective of this marketing plan is to improve the overall business performance of Woolworths Group. In order to improve the overall performance standard of the company, the objective of the management will be to increase the overall profitability of the company within coming three years. At the same time, the management will also try to increase the satisfaction level of the customers by improving the service quality. There will be another objective of increasing the market share by 7% in next three financial years and introducing the innovative promotional tools. The management will try to identify the possible demand trend in the market and try to change the negative profitability trend by delivering best quality products and services.
In order to achieve these objectives, the management will implement some strategies like, management will focus on the social media activities to promote the products in a better way. At the same time, the management will recruit better quality marketing employees and introduce high quality technological infrastructure to make the communication easier. Along with that, the management will also introduce some new services like, home delivery services for the nearest customers and will emphasize on the SMS and Email marketing. The management will also conduct regular market survey.
Financial projections for three years |
|
|
|
Income Statement |
|
|
|
|
Amount (in $ Million) |
||
|
2017 |
2018 |
2019 |
Continuing Operations |
|
|
|
Revenue from the sale of goods and services |
74,349.70 |
95,911.11 |
124,684.44 |
Other operating revenue |
200.00 |
220.00 |
264.00 |
Total operating revenue |
74,549.70 |
96,131.11 |
124,948.44 |
Cost of sales |
(46,944.70) |
(53,986.41) |
(65,863.41) |
Gross Income |
27,605.00 |
42,144.70 |
59,085.03 |
Other revenue |
17,470.88 |
20,091.51 |
24,109.81 |
Branch expenses |
(11,340.30) |
(12,134.12) |
(13,347.53) |
Administration expenses |
(3,390.40) |
(3,661.63) |
(4,064.41) |
Earnings before interest and tax |
30,345.18 |
46,440.46 |
65,782.90 |
Financing cost |
-250.00 |
-258.50 |
-263.77 |
Earnings before tax |
30,095.18 |
46,181.96 |
65,519.13 |
Tax expenses |
-11,436.17 |
-17,549.15 |
-24,897.27 |
Profit for the period from continuing operations |
18,659.01 |
28,632.82 |
40,621.86 |
(Source: Created by author) |
|
|
|
Balance Sheet |
|
|
|
|
Amount (in $ million) |
||
|
2017 |
2018 |
2019 |
Assets: |
|
|
|
Non- current assets: |
|
|
|
Trade and other receivables |
89.25 |
95.50 |
105.05 |
Property, plant and equipment |
8,841.41 |
9,990.79 |
11,589.32 |
Intangible assets |
1,154.40 |
1,246.75 |
1,421.30 |
Total fixed assets |
10,085.06 |
11,333.04 |
13,115.66 |
Current assets: |
|
|
|
Trade and other receivables |
778.26 |
817.17 |
849.86 |
Cash and cash equivalents |
995.40 |
1,075.03 |
1,204.04 |
Inventories |
5,000.00 |
5,350.00 |
5,250.00 |
Total current assets |
6,773.66 |
7,242.21 |
7,303.90 |
Total assets |
16,858.72 |
18,575.25 |
20,419.56 |
|
|
|
|
Liabilities: |
|
|
|
Long- term liabilities: |
|
|
|
Borrowings |
4,000.00 |
4,280.00 |
4,350.00 |
Provisions |
1,428.00 |
1,500.00 |
1,575.00 |
Total long- term liabilities |
5,428.00 |
5,780.00 |
5,925.00 |
Current liabilities: |
|
|
|
Trade and other payables |
6,376.00 |
6,450.00 |
6,760.00 |
Borrowings |
520.00 |
647.50 |
690.20 |
Total current liabilities |
6,896.00 |
7,097.50 |
7,450.20 |
Total liabilities |
12,324.00 |
12,877.50 |
13,375.20 |
Owner's capital: |
|
|
|
Capital |
4,257.00 |
5,070.00 |
5,850.00 |
Reserve |
277.72 |
627.75 |
1,194.36 |
Total Owner's capital |
4,534.72 |
5,697.75 |
7,044.36 |
(Source: Created by author)
|
|
|
|
Projected Cash Flow Statement |
|
|
|
|
Amount (in $ million) |
||
|
2017 |
2018 |
2019 |
Income from the operations |
12,500.00 |
13,125.00 |
14,700.00 |
Cash flow from operating activities: |
|
|
|
Add: Increase in current liabilities |
1,850.00 |
1,775.00 |
1,880.25 |
Less: Increase in current assets |
(1,880.00) |
(1,950.00) |
(2,045.57) |
Total cash from operating activities |
12,470.00 |
12,950.00 |
14,534.68 |
Cash flow from investing activities: |
|
|
|
Purchase of new plant and equipment |
(6,465.00) |
(6,500.00) |
(7,250.00) |
Sale of old furniture |
0.00 |
0.00 |
0.00 |
Total cash from investing activities |
(6,465.00) |
(6,500.00) |
(7,250.00) |
Cash flow from financing activities: |
|
|
|
Borrowings |
3,435.00 |
4,010.00 |
4,250.00 |
Capital provided by the owner |
4,257.00 |
4,257.00 |
4,257.00 |
Total cash from financing activities |
7,692.00 |
8,267.00 |
8,507.00 |
Net cash inflow |
13,697.00 |
14,717.00 |
15,791.68 |
Overall objectives |
||||
Product market/segmentation/customer |
volume |
value |
Gross margin |
Commentary |
Segment – high income group |
(t-1) = 5000 T0 = 6000 (t+1) = 7000 |
(t-1) = 41000 T0 = 20970 (t+1) = 40000 |
(t-1) = 13150 T0 = 10000 (t+1) = 10000 |
The company must try to increase the profitability for this particular segment |
Segment – middle income group |
(t-1) = 4000 T0 = 5000 (t+1) =6000 |
(t-1) = 20970 T0 = 30137 (t+1) = 34349 |
(t-1) = 10000 T0 = 12000 (t+1) = 8659 |
As the profitability of the company will decrease in the next year, the management must take proper step to increase the profit amount of this particular segment. |
Overall strategies |
|
Serial number |
Strategies |
1 |
Emphasizing on the social media activities to promote the products in a better way and to increase the customer base |
2 |
Recruiting new marketing employees to cover maximum market in Australia |
3 |
Introducing and implementing new technological infrastructure for better internal and external communication in the business |
4 |
Arranging for advanced training sessions for the marketing and in-store employees |
5 |
Introducing the home-delivery service for the customers, who live near to the outlets of Woolworths |
6 |
Emphasizing on the SMS and Email marketing to provide personalized services to the customers |
7 |
Conducting regular market survey to know the changes in the market demand |
8 |
Segmenting the market on the basis of demographic as well as psychographic factors |
9 |
Introducing “suggestion box” system, where the customers can provide their suggestions while shopping at the store |
10 |
Introducing some extra benefits like, free gifts or special discounts for the first-time customers |
Sub-objectives, strategies, actions, responsibilities, timing, costs |
||||||
Product/ market/ segments/ application/ customers |
Objective |
Strategies |
Action |
Responsibilities |
Timing |
Cost |
The company will operate its business with existing products. It will operate its business in the existing Australian and other markets. The company will target the people of middle income group and high income group. |
To increase the revenue To increase the profitability To increase customers’ satisfactions |
Introducing new sales promotion activities Dividing the market into small segments Identifying the changes in the demand pattern in the market by conducting market survey |
Conducting meeting with the marketing employees. Informing the marketing employees about the marketing plan. Conducting the market survey to identify which sales promotion strategy will be the best strategy for the company. Implementing the sales promotion strategy. |
The manager will be responsible for informing the marketing employees about the new marketing plan. The employees will be responsible for implementing the plan and following the instructions given by the manager. |
The meeting – first 3 months Market survey – next 3 months implementation – next 4 months Feedback receive and control – last 2 months |
|
|
t-1 |
t0 |
t+1 |
Comments |
Depreciation |
40000 |
44000 |
48000 |
The expenses level of the company will increase gradually. Therefore, the management of the company must take needful steps to control over the costs and increase the profitability |
Salaries |
109000 |
127000 |
127000 |
|
Postage |
10000 |
14000 |
18000 |
|
Legal and professional |
17000 |
27000 |
29000 |
|
Training |
47000 |
64000 |
64000 |
|
Data processing |
30000 |
30000 |
34000 |
|
Advertising |
70000 |
107000 |
114000 |
|
Sales promotion |
110000 |
170000 |
230000 |
|
Travelling and entertainment |
40000 |
48000 |
57000 |
|
Exhibitions |
6000 |
7000 |
7000 |
|
Printing |
6000 |
8700 |
9100 |
|
Meetings/conferences |
10000 |
11000 |
14000 |
|
Market research |
28000 |
31000 |
37000 |
|
Internal costs |
60000 |
79000 |
88000 |
|
Others |
27000 |
29000 |
31000 |
|
Total |
610000 |
796700 |
907100 |
(Source: Created by author)
Risk Assessment
Key Assumption |
Basis of Assumption |
What event would have to happen to make this strategy unattractive |
Risk of such an event occurring % |
Impact if event occurs |
Trigger point for action |
Actual contingency action proposed |
Decline in demand for packaged food |
Increase in Health and environment awareness |
If the tastes and preferences of consumers change that includes increase in preferences for fresh and organic food |
Medium 6% |
If such event occurs, then the inventory level of the company would increase at high rate while the revenue level of the particular segment would decline |
The company should plan to produce and trade for fresh food more than the production of packaged food. |
The company planned to use organic products for marketing the packaged food to maintain the freshness and durability |
Increase in price of raw materials |
Increase in demand for materials as well as entry of new retailers in the present market |
Entry of new retailers in the similar sector would result in increase of demand for the raw materials of products |
Medium 6% |
If the demand for raw materials increase due to the new entrants of retailers, availability of materials would decline and therefore suppliers would increase the respective price |
In case the price of raw materials increase, the company plans to decline the inventory level and operates the business based on the receipt of order |
In order to mitigate the raw materials price risk, the company maintains a provision on standard inventory level along with the maintenance of quality |
Entry of new retailers in the similar sector |
Attractive profitability and market growth in the retail sector |
If the present firms reflects high profitability, revenue and sustainability then the same would attract the new retailers accordingly, profitability for present retailers will be affected |
Medium 4% |
Sales revenue of the company will decline due to the new entrants in the retail industry as a result profit would also decline |
The company needs to improve the quality of the products and incorporate certain innovation to maintain the product demand |
The company maintains the standard quality of the product and created provision for new and updated technologies for innovation in specific products to attract the consumers |
|
t-1 |
t0 |
t+1 |
Net revenue |
61970 |
72137 |
74349 |
Gross margin |
23150 |
26386 |
28632 |
Adjustment |
6000 |
7700 |
8100 |
Marketing costs |
7000 |
7400 |
8400 |
Administration costs |
4000 |
4400 |
4700 |
Interest |
160 |
190 |
250 |
Operating result |
5990 |
6696 |
7182 |
Other interests and financial costs |
190 |
210 |
270 |
Result after financial costs |
5800 |
6486 |
6912 |
Net result |
5800 |
6486 |
6912 |
Key Activity planner |
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Activities |
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Feb |
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