Questions for Nalli Silk case to be discussed on 6th Oct

Do the profitability analysis for each product range mention in Exhibit 3 for
Nalli silk Store (Oberoi Mall Mumbai). Please calculate the following for all
product ranges.
Q1:
Q2:
Q3:
Q4:
Q5:

Cost of shelf space for each product range (Monthly)

Salary expenses allocation for each product range (Monthly)
Gross Margin for each product range
Net profit margin for each product range
What are the takeaways from these analysis?

Addition Information:
Interest expenses: Kanchipuram Silk ($495), Banaras Silk (-$509), Embroidery
($8),
Cotton ($336), Ready to Stich ($244), Materials ($85), Dhotis ($16)

What is the unique selling proposition of Nalli Silk Sarees?

What external factors (from supply and demand side) were Nalli Silk also
coping with at this time?

Is the pricing policy consistent with its strategy? What changes, if any, would
you recommend to its pricing strategy?

What is your evaluation of Nalli Silk Sarees

a) Retail Portfolio
b) Shelf space management
c) Real estate strategy
d) Vendor mangement

If Nalli silk was such a known and respected brand, why was expansion so
slow?

Is there existential threat to the business as many customers are adopting

western and other upcoming trends? Are weddings enough to build a
business model?

Should Nalli Silk diversify into other categories? If yes then which categories
and how can it leverage its strengths in these categories.