NAUTICA | Imperium 2018 | Round 3
Round 3:
Devi Singh is your friend who lives in nearby city who is also a wise businessman in apparel industry. He came to meet and have an informal chat with you. You always find these meetings interesting and eye opening as you both discuss your viewpoints and possible outcome in your business. He tells you that he has started his own apparel accessories brand name “ Nanchau” under which he has introduced waist belt. He explained further that every apparel customer needs belt and general public don’t have any belt brand imprinted in their mind and thus don’t think twice while picking up a belt along with their apparel shopping. In numbers, around 40% of customers buy his Nanchau belt along with their apparel basket. He said he has invested $1.2M to open his brand and a new product line Once Devi Singh left, you gave a serious thought about whether you should also invest in own accessories brand producing belts or not?( Please note that the investment of $1.2M, if done, will deplete in two years)

If you are really giving a serious thought about this then you are thinking to price the belt at $10 with profit margin of 60%.

In continuation with the previous case details, please note that your two year investment period has expired. If you had invested in the last round then you are back to the original values. (This is not applicable for technical investment)
1.       If you had increased your operational expense by $0.5M in the last round to increase your capacity, then it is back to 1k customers per day in the beginning of this round
2.       If you had increased your operational expense by $1.5M in the last round to improve your profit margin by 10% then it is back to 30% overall margin in the beginning of this round

Additional information:
There are few changes in these two years as customer demand has increased but labor cost has increased because of which following changes are inevitable:
1.       Operational expense increases by $ 0.5M  if you want to increase the capacity of store by 20%
2.       Operational expense increases by $1.5M if you want to increase profit margin by 10% by reducing operational cost.
3.       Some part of technical investment done in the last two rounds will have positive effect in this round also.

Rules to be considered:
1.       This is the last round. It comprises of 2 years.
2.       Input values
Input
Input figure
Unit
Operational expense to increase capacity
Yes or No

Operational expense to reduce operational cost
Yes or No

BTL promotion budget
Numerical Value
$100,000
Loyalty program
Yes or No

3D promotion
Numerical Value
Percentage (%)
Advance technology investment
Numerical Value
$100,000
Own accessories brand investment
Yes or No



3.       Submit your answers through google form at any time on or before 6:00:00 AM 25th  Nov
Google form link:https://goo.gl/forms/a0enLRd2JwwINB8e2

4.       Final round: 24rd  Nov 08:00 PM to 25th Nov 6:00 AM

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