Pepperfry.com: A company in need of remodeling Amanda Rushton Jesse Prent Jonathan Faerman Winnie Hu JMSB Consulting
Agenda: 1. Introduction 2. Problem Statement 3. Recommendation 4. Analysis 5. Alternatives 6. Implementation 7. Financials
How can Pepperfry generate sustainable growth and attain profitability while retaining market lead? Operations Costumers Competition
Recommendations JMSB Consulting
Recommendations Analysis Alternatives Implementation Financials Leverage capabilities to evolve business model and drive revenue
Recommendations Analysis Alternatives Implementation Financials Leverage capabilities to evolve business model and drive revenue Revamp supplier • Stick to consistent set of suppliers • In-house co-created designs based on consumer data relations • Privilege program for unique seasonal designers
Recommendations Analysis Alternatives Implementation Financials Leverage capabilities to evolve business model and drive revenue Revamp supplier • Stick to consistent set of suppliers • In-house co-created designs based on consumer data relations • Privilege program for unique seasonal designers Position to serve • Expand product catalog to curated tech offerings • Consumer retention programs: Loyalty and Warranty growing middle class • Digital marketing strategy to target most profitable segments
Recommendations Analysis Alternatives Implementation Financials Leverage capabilities to evolve business model and drive revenue Revamp supplier • Stick to consistent set of suppliers • In-house co-created designs based on consumer data relations • Privilege program for unique seasonal designers Position to serve • Expand product catalog to curated tech offerings • Consumer retention programs: Loyalty and Warranty growing middle class • Digital marketing strategy to target most profitable segments Diversify revenue • B2B logistics services • Maintain studio growth plan 46 in 2 years streams
Recommendations Analysis Alternatives Implementation Financials Leverage capabilities to evolve business model and drive revenue Revamp supplier • Stick to consistent set of suppliers • In-house co-created designs based on consumer data relations • Privilege program for unique seasonal designers Position to serve • Expand product catalog to curated tech offerings • Consumer retention programs: Loyalty and Warranty growing middle class • Digital marketing strategy to target most profitable segments Diversify revenue • B2B logistics services • Maintain studio growth plan 46 in 2 years streams Our plan will keep Pepperfry.com as industry leader and forge path to profitability
Analysis JMSB Consulting
Recommendations Analysis Alternatives Implementation Financials Variety and value alone won’t differentiate you Variety UrbanLadder Pepperfry.com IKEA FabFurnish Amazon FlipKart Value
Recommendations Analysis Alternatives Implementation Financials The market will demand greater tech integration backed by purchasing power Trend Focused UrbanLadder IKEA FabFurnish Pepperfry.com FlipKart Amazon Tech Solutions
Recommendations Analysis Alternatives Implementation Financials The market will demand greater tech integration backed by purchasing power Trend Focused UrbanLadder IKEA FabFurnish Pepperfry.com FlipKart Amazon Tech Solutions
Recommendations Analysis Alternatives Implementation Financials The market will demand greater tech integration backed by purchasing power Trend Focused UrbanLadder IKEA Pepperfry.com FabFurnish FlipKart Amazon Tech Solutions
Recommendations Analysis Alternatives Implementation Financials Middle class segment in India is beginning to reflect western counterpart Tech- savvy Style- Buying Indian conscious Consumer Power Urban and mini- metro
Recommendations Analysis Alternatives Implementation Financials Middle class segment in India is beginning to reflect western counterpart Tech- savvy Style- Buying Indian conscious Consumer Power Urban and mini- metro
Recommendations Analysis Alternatives Implementation Financials Middle class segment in India is beginning to reflect western counterpart Tech- savvy Style- Buying Indian conscious Consumer Power Urban and mini- metro
Recommendations Analysis Alternatives Implementation Financials Middle class segment in India is beginning to reflect western counterpart Tech- savvy Style- Buying Indian conscious Consumer Power Urban and mini- metro
Recommendations Analysis Alternatives Implementation Financials Middle class segment in India is beginning to reflect western counterpart Tech- savvy Style- Buying Indian conscious Consumer Power Urban and mini- metro
Recommendations Analysis Alternatives Implementation Financials Middle class segment in India is beginning to reflect western counterpart Tech- Movement towards embracing e-tail savvy Engaged consumers on mobile – Style- Buying Indian Smart home growing trend conscious Consumer Power 80% of market untapped by Urban Pepperfry.com and mini- metro
Recommendations Analysis Alternatives Implementation Financials Middle class segment in India is beginning to reflect western counterpart Tech- Movement towards embracing e-tail savvy Engaged consumers on mobile Style- Buying Indian conscious Consumer Power 80% of market untapped by Urban Pepperfry.com and mini- metro Pepperfry.com must continue to use its tech capabilities to penetrate
Recommendations Analysis Alternatives Implementation Financials Many potential mobile- friendly touchpoints in target consumers’ day At Work Web Lunch OOH / Mobile Commute OOH (public ECRM transportation) Mobile (social Wake up Commute media) OOH / Mobile Social Media Social Media OOH Web Relaxation / Dinner Family Time
Recommendations Analysis Alternatives Implementation Financials Many potential mobile- friendly touchpoints in target consumers’ day At Work Web Lunch OOH / Mobile Commute OOH (public ECRM transportation) Mobile (social Wake up Commute media) OOH / Mobile Social Media Social Media OOH Web Relaxation / Dinner Family Time Focus on digital touchpoints throughout customer’s day
Recommendations Analysis Alternatives Implementation Financials Financial challenges originate at start of supply chain Pepperfry.com supplier consulting Technology Operations Suppliers (Warehousing, Distribution Marketing Follow Up packaging)
Recommendations Analysis Alternatives Implementation Financials Financial challenges originate at start of supply chain Pepperfry.com supplier consulting Technology Operations Suppliers (Warehousing, Distribution Marketing Follow Up packaging) Average turnover ~ 1000 suppliers/yr High setup / maintenance costs
Recommendations Analysis Alternatives Implementation Financials Financial challenges originate at start of supply chain Pepperfry.com supplier consulting Technology Operations Suppliers (Warehousing, Distribution Marketing Follow Up packaging) Low inventory Average turnover Logistic capabilities ~ 1000 suppliers/yr Automated sourcing Last-mile coverage High setup / Industry-leading maintenance costs Top management packaging solutions hands-on delivery
Recommendations Analysis Alternatives Implementation Financials Financial challenges originate at start of supply chain Pepperfry.com supplier consulting Technology Consumer data capture Operations Suppliers (Warehousing, Distribution Marketing Follow Up packaging) Low inventory Average turnover Logistic capabilities Content creation 55 – 60% of ~ 1000 suppliers/yr transactions are Automated sourcing Last-mile coverage 50:50 digital / offline repeat customers High setup / Industry-leading maintenance costs Top management Brand recognition packaging solutions hands-on delivery
Recommendations Analysis Alternatives Implementation Financials Financial challenges originate at start of supply chain Pepperfry.com supplier consulting Technology Consumer data capture Operations Suppliers (Warehousing, Distribution Marketing Follow Up packaging) Low inventory Average turnover Logistic capabilities Content creation 55 – 60% of ~ 1000 suppliers/yr transactions are Automated sourcing Last-mile coverage 50:50 digital / offline repeat customers High setup / Industry-leading maintenance costs Top management Brand recognition packaging solutions hands-on delivery Reduce costs related to supplier and leverage strong logistics
Financial Analysis JMSB Consulting
Recommendations Analysis Alternatives Implementation Financials Attract customers through simple products and upsell to furniture Transactions: 300K Revenue: INR 2.5Bn • Entry Point 200K Décor: 20% INR 500M • Lot’s of suppliers • Low Basket Size: INR 2.5K 3 rd party INR 700M 43K Furniture • Value Added House • Possibility to streamline Furniture INR 700M 43K Brands • Large Basket Size: INR 18K/36K 80% INR 2Bn Studios INR 500M 14K Concentrate on value added products and simplify supply chain
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