BAR Listen to music while chilling out with friends. Buy concert tickets. JAMMING Jam Room for aspiring music bands and Audio Room for everyone

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1 MUSIC CDs, DVDs, Music Instruments, Books etc for music lovers and artists JAMMING Jam Room for aspiring music bands and Audio Room for everyone MERCHANDISE Tshirts, Mugs, Phone covers, accessories of your favorite bands BAR Listen to music while chilling out with friends. Buy concert tickets ADRIEN PODDA ROXANE GUYARD CHINMAYA BEHARA ZIWEI ZHAO PIN LU SANTOSH LAKSHMAN M CHAKRABORTY ISHITA SUNITY

2 AGENDA 1 of 16

3 Here s our video presentation! 2 of 16

4 CONCEPT WHAT IS LE GARAGE? LE GARAGE is a new age retail music store that is set up with the motive of building a strong community of music lovers sharing with each other. Le Garage is not just a store, it s a unique way to experience, create and buy music and a mechanism to finally get imbibed into a community ofmusic lovers. Le Garage brings together the aspiring and talented musicians to meet with young music lovers. It provides an avenue for them to learn, interact and promote. We are a music store located in Paris. We cater to the needs of young amateur/indie musicians like selling of musical instruments, jam room, concert promotion etc. We also sell music records, merchandise, books etc. More than the products, it is the experience we provide that matters. With facilities like bar, audiomaton etc., we try to make the shopper experience the feeling of being at a friendly place rather than at a super market. OPPORTUNITY 3 of 16

5 Industry & Competitor Overview WHAT ARE OUR OFFERINGS? An important fact to note is that the French music industry is continuously declining % decline in Q The major decline is the sale of physical CDs whereas online music industry is growing at a healthy margin. So why would people walk into a music store to buy CDs? The answer is the ENVIRONMENT we create & the COMMUNITY we build Competitors? Tuana music, Paris La Pedale, Paris Total Music, Paris Paris, has several stores selling DVDs, music instruments & music lessons. Our closest competitor is Total Music which along with music CDs & instruments also rents out concert space However, our differentiator is our unique concept-a music store by the music lovers, for the music lovers & of the music lovers. We don t want to create just a store we want to create a complete garage experience for a music lover with our varied products & services 4 of 16

6 CONSUMER PROFILES WHO ARE OUR TARGET SHOPPERS? 2 main types of target shoppers : Music Lovers & Artists; both hedonic shoppers. We re creating a community by allowing these two groups to meet at Le Garage to share music and to share an experience Musician Play music in a band. Mostly pop or rock music. - Will use the jam rooms - Will buy instruments and music equipment - Will promote its music (selling its EP, playing at the bar ) Music Lover Male 18 to 35 years old Plays music but just for his own pleasure - Will buy music instruments & gigs tickets - Will come to the bar to relax Teenager Female teenager Love rock bands such as The Kooks Come with her friends - Will buycds & gigs tickets - Will hang out with her friends at the bar and in the photo booth Mom Woman years old Good income Looking for gifts for her children - Will buy CDs - Will buy accessories OPPORTUNITY 5 of 16

7 PLAN OF STORE Office& Storage room The office is for our employees to work and rest while storage room is for our store to keep the stocks. Jam room A special room for clients to practice and play music. Music instruments Where we display samples of our music instruments to be sold. You can try different kinds of the instruments Floor -1 Toilet Photo booth To take photo with your friends: and also can be a way to make promotion of the store on social media (Fb, twitter ) Audio room Where we provide professional audio equipment for clients to record music as a birthday present or for other purposes. 6 of 16

8 ASSORTMENTS Floor -1 Jam room A special room for clients to practice and play music. Audio room Where we provide professional audio equipment for clients to record music as a birthday present or for other purposes. Photo booth A special room for clients to practice and play music. 7 of 16

9 PLAN OF STORE CD area Here clients can select their favorite CDs from pop to rock, from jazz to R&B, from local to international. Music accessories A very fancy merchandising to display music accessories, which may be a bit luxurious. Cash& ticket desk Here clients can pay for the CDs, accessories, books they have chosen. They can also reserve and pay for the audio room and jam room. We also provide concert ticket booking service. Floor 0 8 of 16

10 ASSORTMENTS FLOOR 0 Music Accessories Graffiti paintings, posters, designed T-shirts and deluxe guitars with signatures of famous band are put on the wall, for both selling and decoration purposes. Le Garage Products We also provide our own-designed brand products with our logo Le Garage, such as T-shirts, phone cases, posters and mugs. CD Area Big shelves with all kinds of CDs of different types of music, except classic ones. 9 of 16

11 PLAN OF STORE Book shop The bookshop will have a small selection of books: only books about music, singer and band biographies and so on. Bar To hang out, the perfect place to meet people, talk about music and wait for friends. We also offer delicious coffee and snacks. Floor 1 10 of 16

12 ASSORTMENTS FLOOR 1 Bar CD players are fixed on each table for listening. There are recycle baskets for clients to put the CDs and books they have tried. Book shop We offer small shopping baskets for clients to bring down all the CDs and books they want to buy. 11 of 16

13 Branding Why «Le Garage»? Refers to this place where so many broken artists started to train: in their parent s garage! We want to create an unique atmosphere where you feel like home. Our Logo : A simple but highly recognizable logo With an uncluttered style with black and orange colours. The «Le Garage» T-shirt : One our goal is to create a community of music lovers. Hence we decided to design our special t-shirt which is going to be worn by our staff but also be sold in the boutique. Each t-shirt will have the logo + Le Garage + the name of the store written on it. We have been been inspired by the Hard-Rock Café T shirt. 12 of 16

14 Communication Our communication will be mainly focused on the social networks (Facebook, Twitter, Instagram ). Some games on the social networks (competition of pictures, musical riddle ) For our clients : the possibility to win some presents: concert tickets, new CD And for us more and more presence on the social networks! Special concerts for our best clients. During closing time of the shop. The entrance will be permitted only on invitation. The artists performing would be ones of the artists bands we know and who are playing in the Jam room downstairs. Our unique photobooth. Then the clients can upload their pictures on social networks and even hashtag the name of our shop #legarage. 13 of 16

15 FINANCIALS Multiple Revenue Streams that are complementary to each other Instrument Sales, Concert Tickets major revenue segments REVENUE SEGMENTS Facility Rental Bar Merchandise and Accessories Concert Tickets 0 Year 1 Year 2 Year 3 Year 4 Year 5 REVENUE PROJECTIONS BY SEGMENT Instrument Sales 14 of 16

16 REVENUE AND NET PROFIT Profit and Loss Year 1 Year 2 Year 3 Year 4 Year 5 Revenues COGS % of Sales Instrument Sales/Repair 70% 69% 68% 67% 66% 90,720 99, , , ,679 Alcoholic Beverages 50% 49% 48% 47% 46% 7,290 8,252 9,336 10,558 11,936 Merchandise 50% 50% 50% 50% 50% 31,200 39,312 48,157 57,789 68,263 Concert Tickets 70% 70% 70% 70% 70% 63,000 70,070 77,924 86,648 96,338 Total COGS 192, , , , ,215 Operating Expenses Labor Costs 10% 10% 10% 10% 10% 31,098 35,526 40,390 45,735 51,608 Rent 40,000 41,200 42,436 43,709 45,020 Advertising Spend 10% 6% 5% 5% 5% 31,098 21,315 20,195 22,868 25,804 Electricity and Gas 8,000 8,240 8,487 8,742 9,004 Telephone 1,800 1,854 1,910 1,967 2,026 Equipment and Office Supplies 1% 1% 1% 1% 1% 3,110 3,553 4,039 4,574 5,161 Discretionary Spend 1% 1% 1.1% 1.1% 1.1% 3,110 3,553 4,443 5,031 5,677 Bank and Merchant Fees 3% 3% 3% 3% 3% 9,329 10,658 12,117 13,721 15,483 Total Operating Expenses 127, , , , ,783 Profit Before Depreciation Interest and Taxes - 8,775 12,456 26,058 37,816 51,085 Interest 13,190 13,190 13,190 13,190 13,190 Profit Before Tax - 21, ,868 24,626 37,895 Tax 0 0 1,930 3,694 5,684 Profit After Tax/Net Income - 21, ,938 20,932 32, Year 1 Year 2 Year 3 Year 4 Year Revenues Net Income Net Profit - 21, ,938 20,932 32,211 RoS -7.1% -0.2% 2.7% 4.6% 6.2% RoI -71% -3% 54% 92% 125% 15 of 16

17 THANK YOU!

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