1. Sai Gajjala, Tim Huffman, Sarah Meadows, Bruce Wayne
Pepperfry
Sai Gajjala, Tim Huffman, Sarah Meadows, Bruce Wayne

2. Overview Overview Recommendations Implementation Analysis Alternatives

3. Key Issues Combating local skepticism about online ordering.
Competing with Ikea, Amazon, Flipkart.
Developing new revenue channels.
Implementing new and innovative strategies.
Retaining a hold on the Indian home goods market.
Take Pepperfry public.
Overview
Recommendations
Implementation
Analysis
Alternatives

4. SWOT Analysis Strengths Weaknesses Opportunities Threats
Efficiency in distribution
Annual growth of business
Delivery success rate & timelines
Established online retail market
Logistics & distribution channels
Market knowledge
Not profitable
Relies on funding for growth
Standardized rating system
Personalized shopping experience
Opportunities
Threats
Growth in e-commerce
Distribution services for local vendors
Achieve economies of scale
Established market leaders
Vast market promotions by Ikea
Vastly internet illiterate market
Overview
Recommendations
Implementation
Analysis
Alternatives

5. PESTEL Analysis Political Economic Social Technology Ethics Legal
Good international relationships.
Open to globalization
Economic
Growing market
Social
Individualized western influences
Digital marketing growth through social media (social currency)
Technology
Growing technology market
Smart devices
E-commerce
Ethics
Local artisans
Losing jobs to large companies
Legal
Following local regulations regarding expansion
Establishing warehouses, fulfillment centers, distribution centers
Overview
Recommendations
Implementation
Analysis
Alternatives

6. Recommendations Recommended Plan: Innovate & Compete
Increase market share
Ramp up to launch IPO
Alternative 1: Partnerships
Partner with Ikea & Amazon
Increase finances through external distribution
Alternative 2: Niche Marketplace
Rental subscription plans
Refurbished market place
Overview
Recommendations
Implementation
Analysis
Alternatives

7. Recommended Plan: Innovate & Compete
Key development areas:
Studios
Online market place
Product lines
Marketing
Operations
Research & development
Overview
Recommendations
Implementation
Analysis
Alternatives

8. Implementation Timeline: Year 1
Studio development
Leverage premium partnerships for in-studio showcase (curated).
Start selling small décor and utilities in studios.
Online development
Develop in-home augmented reality modeling (integrated with existing 3D modeling technology).
Standardized rating system (5 stars)
Marketing
Web Tutorials on interior design.
Feature local carpenters on products & market; emphasis quality
Increase TV ads to increase franchisee interest.
Ramp-up social media marketing: contests for students
Research & Development
Begin geographic research for better franchise locations & distribution centers.
Overview
Recommendations
Implementation
Analysis
Alternatives

9. Implementation Timeline: Year 2
Studio development
Begin franchising 20 studios annually (goal).
Set up computers to facilitate in-studio purchases with on-site representatives.
Operations
Create distribution centers near developing areas (near Delhi & Hyderabad)
Raise $40 million in funding (series G)
Overview
Recommendations
Implementation
Analysis
Alternatives

10. Implementation Timeline: Year 3
Research & development:
Leverage rentals to get lifelong customers (data collection)
Collect data to create curated furniture & décor collections.
New product line development
Start designing Small Space Living line for metro areas (Mumbai, Dehli, Kolkata)
Expand market
Operations
Establish fulfillment center near high metro areas (near outskirts of Dehli)
Overview
Recommendations
Implementation
Analysis
Alternatives

11. Implementation Timeline: Year 4
Operations
Work towards purchasing small furniture stores, after geographic analysis.
Encourage original owners to be franchisees (20 franchises /year goal)
Stores are automatically curated.
Overview
Recommendations
Implementation
Analysis
Alternatives

12. Implementation Timeline: Year 5
Launch Initial Public Offering (IPO)
Overview
Recommendations
Implementation
Analysis
Alternatives

13. Historical Funding and Projection
Overview
Recommendations
Implementation
Analysis
Alternatives

14. Profit Margin & CAGR Overview Recommendations Implementation Analysis
Alternatives

15. Profit Margin Analysis
Overview
Recommendations
Implementation
Analysis
Alternatives

16. Profit Margin Overview Recommendations Implementation Analysis
Alternatives

17. Projections revenue profit GMV Overview Recommendations Implementation
2012/2013
2013/2014
2014/2015
2015/2016
2016/2017
2017/2018
2018/2019
2019/2020
2020/2021
2021/2022
revenue $ $ $
$ 2,001.00
$ 2,580.00
$ ,000.00
$ ,000.00
$ ,000.00
$ ,000.00
$ 10,000.00
profit
$ (542.00)
$ (362.00)
$ (1,255.00)
$ (2,992.00)
$ (2,486.00)
$ (2,800.00) $
$ ,100.00
$ ,000.00
$ ,250.00
GMV $ $
$ 2,202.00
$ 5,122.00
$ 6,500.00
$ 10,500.00
$ 17,500.00
$ 32,500.00
$ 50,000.00
$ 60,000.00
Overview
Recommendations
Implementation
Analysis
Alternatives

18. Alternative 1: Partnerships
Amazon & Ikea’s market
Capital for marketing
International growth potential
Potential to lose foothold in India
Losing brand value
Ikea & Amazon have mass-markets & capital
However, they do not curate.
Partner with Ikea & Amazon to be their Premium Partner to provide them with curated product lines.
Overview
Recommendations
Implementation
Analysis
Alternatives

19. Alternative 2: Niche Market
Collect data to create more curated design spaces Target future customers with rental subscriptions Expand into business layouts
Limited market scope Limited clientele for expensive interior design services New market research ($)
Focus on the future generation:
Rental subscriptions
Studio design collections
Interior designer consulting
Estimated annual salary: RS 100,000 ($1,666)
Overview
Recommendations
Implementation
Analysis
Alternatives

20. Conclusion Overview Recommendations Implementation Studios
Online market place
Product lines
Marketing
Operations
Research & development
Analysis
Alternatives
Partnerships
Niche Market
Overview
Recommendations
Implementation
Analysis
Alternatives