Situational Analysis and New product development in Apparel Industry w.r.t. Pantaloons
Project/Slides/Presentation Transcript
TABLE OF CONTENTS
EXECUTIVE SUMMARY 1
SITUATIONAL ANALYSIS 2
INDUSTRY ANALYSIS 2
OBJECTIVE OF FIELD VISIT 2
LOCATIONS COVERED FOR MARKET SURVEY 2
PESTEL ANALYSIS OF APPAREL RETAIL INDUSTRY 3
LEGAL AND POLITICAL FACTORS 3
ECONOMIC FACTORS 4
SOCIAL FACTORS 4
TECHNOLOGICAL FACTORS 4
DRIVING FORCES OF APPAREL RETAIL SECTOR 5
RISING DISPOSABLE INCOME OF INDIAN MIDDLE-CLASS 5
CHANGING CONSUMER PREFERENCES AND SHOPPING HABITS 5
CHANGING DEMOGRAPHICS 5
INCREASE IN WORKING POPULATION 6
SPURT IN URBANISATION 6
CHALLENGES FOR APPAREL RETAIL INDUSTRY 6
CHANGING CUSTOMER 6
INVENTORY LEVELS 6
PRODUCT SOURCING 7
SUSTAINABILITY 7
CONSUMER SEGMENTS 7
SEGMENTATION 7
SEGMENTATION BY PRICE RANGE & CONSUMER BASE 8
KEY PLAYERS IN MARKET 9
COMPETITION 9
IMPORTANT FACTORS OF COMPETITION IN THE CLOTHING MARKET 9
PANTALOONS 10
COMPANY PROFILE 10
MERCHANDISE OFFERED BY PANTALOONS 11
BRANDS & RANGE AT PANTALOONS 11
WOMEN’S SEGMENT 11
MEN’S SEGMENT 11
KID’S SEGMENT 12
MAJOR COMPETITORS 12
PRICING, PROMOTION & DISTRIBUTION 12
PRICING STARTEGIES OF PANTALOONS 12
DISTRIBUTION STRATEGIES OF PANTALOOS 13
PROMOTION STRATEGIES OF PANTALOONS 13
SWOT ANALYSIS OF PANTALOONS 14
STRENGTHS 14
WEAKNESSES 14
OPPORTUNITIES 15
THREATS 15
ANSOFF GROWTH MATRIX 16
MARKET PENETRATION GROWTH STRATEGY BY THE FIRM 16
CUSTOMER VALUE ANALYSIS 17
OVERVIEW 17
CUSTOMER VALUE ANALYSIS CHART 19
SUGGESTIONS BASED ON CUSTOMER VALUE ANALYSIS 19
OPPORTUNITY MATRIX FOR PANTALOONS 20
NEW GROWTH STRATEGY FOR PANTALOONS 20
THREAT MATRIX FOR PANTALOONS 21
CUSTOMER SEGMENTS 22
MARKETING PLAN FOR NEW PRODUCT 23
PRODUCT, CATEGORY & BRAND 23
TARGET MARKET 23
PRODUCT POSITIONING 24
PRODUCT CHARACTERISTICS 24
PRODUCT RANGE OF CALBERRYS 25
PRICING STRATEGIES 25
PROMOTIONAL STRATEGIES FOR CALBERRYS 26
TARGET AUDIENCE 26
OBJECTIVES 26
DESIGNING COMMUNICATION 26
PROMOTIONAL CHANNELS 26
USE OF PROMOTIONAL MIX TOOLS 27
DISTRIBUTION CHANNEL STRATEGIES FOR CALBERRYS 28
DISTRIBUTION STRATEGY 28
CHANNEL LEVELS 28
CALBERRYS : VERTICAL MARKETING SYSTEM 29
DISTRIBUTION SYSTEM 29
IMPLEMENTATION TABLE 30
ESTIMATED SALES BUDGET OF CALBERRYS FOR 2016 31
ESTIMATED PRODUTION BUDGET OF CALBERRYS FOR 2016 31
ESTIMATED PROMOTIONAL BUDGET OF CALBERRYS FOR 2016 32
CALBERRYS SECTION LAYOUT IN PANTALOONS 33
REFERENCES 34
ANNEXURES 35
ANNEXURE 1 35
ANNEXURE 2 37
Situational Analysis and New product development in Apparel Industry
EXECUTIVE SUMMARY
This project report consists of overall analysis of APPAREL RETAIL INDUSTRY. The report comprises of situational analysis of the industry as well as the micro and macro environment factors affecting the apparel industry, in which we carried out the pestel analysis and analyzed some internal factors influencing the industry. The key segments of apparel in the country and the brands offering products to the customers are both organized and unorganized. The report further illustrates the market share of the brands and their future prospects in the industry.
After analyzing the apparel industry as a whole we further went on analyzing one of the most popular multi brand apparel retail outlets i.e. PANTALOONS. In this report we discussed about the company overview and their presence in various cities of the country. Along with that we also came across the marketing mix strategies of the brand which consists of the product, price, place and promotional strategies. The project report also stated the SWOT analysis along with which the ANSOFF’S growth matrix, opportunity matrix and threat matrix were prepared by us for Pantaloons. This lead us to think in the direction of suggesting a new product for Pantaloons. We also did a customer value analysis of Pantaloons with respect to its closest competitors on the bases of several important attributes. By the help of this survey and above mentioned analyses our learning team we came with an idea of a new product development for the company in the innerwear category for men, women and kids with their private label named as CALBERRYS. The new product development strategy consists of all the four elements of marketing mix to make it practical for the company to work upon the development.
In the end we prepared some financials and budgets for this new product along with the implementation table for the first year .
SITUATIONAL ANALYSIS
INDUSTRY ANALYSIS
OBJECTIVE OF FIELD VISIT
• Marketing survey of Apparel Retail Industry
LOCATIONS COVERED FOR MARKET SURVEY
• Saharaganj Mall, Hazratganj
• Fun Republic Mall
• Hazratganj
• Patrakarpuram, Gomtinagar
• Mahanagar
Our learning team LT C-06 did a situational analysis of the apparel retail industry in Lucknow through our visits at multiple locations. In this analysis we came to know about the various types of clothing brands being sold by both organized and unorganized apparel retailers and serving to various needs of the consumers.
Brief Overview of the Findings of Our Analysis:-
• An overview and fair idea of organized apparel retail business in Lucknow.
• We came to know about the various apparel retailers operating in different locations and the brands being sold by them.
• Sales pattern as well as product range of various brands.
• Pantaloons:
o SWOT Analysis
o ANSOFF MATRIX
o OPPORTUNITY AND THREAT MATRIX
o NEW PRODUCT DEVELOPMENT STRATEGIES FOR PANTALOONS
PESTEL ANALYSIS OF RETAIL APPAREL INDUSTRY
Macro environmental factors affecting the clothing industry are those which lie outside small companies and their competitors. Business owners have less control of these external factors, and their impact in changing them is minimal. Instead, small companies must adapt to these macro environmental factors, which include consumer characteristics, technology, government influence and the economy. The way small companies adapt to macro environmental factors determines both their ability to differentiate themselves from key competitors and overall success.
LEGAL AND POLITICAL FACTORS
A number of legal and political macro environmental factors affect small businesses in the clothing industry. The industry has repeatedly been affected by issues such as workers’ rights and child labour laws. Union workers in clothing manufacturing plants may picket their employers, especially if their wages or medical benefits are less favourable than workers in comparable industries. Workers picketing their clothing employers impacts production. This can cause delays for retailers in getting spring or fall fashions on time. Activists who are not employed by the companies may also picket retailers who purchase clothing from countries known for violating child labour laws. This negative publicity may impact small clothing retailers’ sales and profits. Also, a trade embargo against another company’s imports would force clothing wholesalers to find different suppliers.
• Shop and Establishment Act
• Standards of Weights and Measures Act
• Provisions of the Contract Labour (Regulations and Abolition) Act
• The Income Tax Act
• Customs Act
• The Companies Act
ECONOMIC FACTORS
Economic factors can have both positive and negative impacts on the clothing industry. During economic boom periods, people have more disposable income. Hence, they may buy more clothes, increasing sales for clothing manufacturers, wholesalers and retailers. However, recessions have the opposite effect. Sales for these various clothing entities may be significantly lower. Consequently, retailers may be stuck with large amounts of inventory. And they may have to sell the clothing at substantially reduced prices. Clothing manufacturers and retailers may also need to sell lower-priced clothing brands to compete with more generic brands. Consumers often shop for cheaper brands when they have less disposable income.
SOCIAL FACTORS
Consumer micro environmental factors include cultures, norms, lifestyle, demographics and population changes. These factors affect the clothing industry in different ways. For example, a small clothing manufacturer needs to create styles that appeal to those of different cultures, especially if those cultural groups represent large enough segments of its market. Contrarily, clothing manufacturers, wholesalers and retailers avoid creating too many clothing items that fall outside the norms of society, such as styles worn 100 years ago. An aging population may increase the demand for larger jeans and pants sizes, such as relaxed or looser-fitting styles. Generally, many people become more sedentary when they get into their 40s and 50s. Consumers’ waistlines expand so they need larger sizes and more room for comfort.
TECHNOLOGICAL FACTORS
Technological micro environmental factors affecting the clothing industry include availability of resources, demand and production. For example, the scarcity of certain materials, such as leather, may force retail and wholesale clothing companies to sell more faux or substitute leather products. Retailers may increase the prices of cotton clothing if they encounter shortages of this raw material, as they must pay their manufacturers more. The introduction of new clothing styles by a competitor can shift demand away from older fashions. Hence, a small clothing manufacturer may need to discontinue certain clothing lines and produce new ones that meet the needs of consumers. Moreover, clothing companies may add more advanced equipment in their plants like robots, which may force companies to fire some workers.
DRIVING FORCES OF APPAREL RETAIL SECTOR
RISING DISPOSABLE INCOME OF INDIAN MIDDLE-CLASS
The Indian middle-class can be categorised into seekers and strivers, which is the consuming class and the prime target segment for retailers in India. In 2005, these two categories together constituted around 6.4% of total households in India but accounted for 20% of the disposable income. By 2015, the middle class is expected to constitute around 25% of total households and account for 44% of the total disposable income, and by 2025, the respective figures are likely to go up to 46% and 58%. The Indian middle-class population and their growing disposable income levels will drive the future growth of organised retail in India6.
CHANGING CONSUMER PREFERENCES AND SHOPPING HABITS
The prime reason for a paradigm shift in the shopping attitude of the Indian consumer is the change in their preferences and tastes. Due to the increasing use of IT and telecom, Indian consumers have become aware of brands and shops for lifestyle and value brands according to the need and occasion. Consumers will continue to drive the growth in the organised retail by expanding the market and compelling retailers to widen their offerings in terms of brands and in terms of variety.
The spending on essential commodities has been steadily falling over the years and the rising reach of media coverage is increasing consumer awareness about products, their prices and services, which is likely to further encourage growth in the organised retail segment.
CHANGING DEMOGRAPHICS
India is one of the youngest and the largest consumer markets in the world with a median age of around 25 years, which is the lowest as compared with other countries. According to estimates, India’s median age would be 28 by 2020. It is expected that over 53% of the population will be under the age of 30 by 2020. The plus about this population is that they will be more dynamic than the previous generations because their consumption is driven by wants rather than needs. Thus, the organised apparel retailing, which thrives on lifestyle products, is expected to receive a boost because of the young population by 2020.
INCREASE IN WORKING POPULATION
India is the second-largest country in the world in terms of population, and is the largest consumer markets in the world owing to its favourable demographics. In 2008 India’s working population (in the 15-49 years age group) constituted around 53% of the population as compared with 48.6% in the UK, 49% in the US, and 53% in Russia. Further, the increase in the number of working women has fuelled the growth in sales of discretionary items. There has been a 20% increase in the number of working women in the last decade.
SPURT IN URBANISATION
Historically cities and towns have been the driving force of overall economic and social development. Currently over 335 million people of India reside in cities and towns, which translates to around 30% of the total population7. The rapid growth in urbanisation has facilitated organised retailing in India, and has caused the speedy migration of population into major tier I and tier II cities, which have a significant share in the retail sales of the country.
CHALLENGES FOR APPAREL RETAIL INDUSTRY
CHANGING CUSTOMER
As shoppers turn to the internet for information and shopping, to smartphone applications for price comparisons, and to social media for opinions, the industry’s response becomes more service- and price-sensitive. A broader variety of online and offline shopping alternatives gives brand loyalty less importance and presents stocking and pricing concerns. To be competitive, retailers must balance inventories to avoid out-of-stock scenarios that mean lost sales. They must reduce the time needed to bring goods from design to delivery, or “speed to market.” Their success and ability to offer competitive pricing depends largely on their sourcing selections.
INVENTORY LEVELS
Controlling inventory is not a new apparel industry issue, but the rules of the stocking game have changed in light of the way consumers shop today. Customer preferences change faster, which speeds up inventory turnover requirements. Suppliers then must adjust to smaller orders placed by retailers and wholesalers, and improve turnaround times. This puts pressure on their raw material, transportation, quality control and labour costs. As energy prices climb worldwide and manufacturing costs rise in China — where, according to IBIS World, most of the world’s clothing is made — the industry has begun to seek more efficient production locations. A strong supply-chain relationships are of extreme importance for inventory control.
PRODUCT SOURCING
Sourcing is a two-pronged issue in the apparel industry. The ability of other countries, such as Bangladesh, to handle the production being moved from higher-cost China can affect critical delivery schedules. Local sourcing has entered the picture, especially with private-label clothing sold.
SUSTAINABILITY
Environmental sensitivity has become an emerging issue in the apparel industry. The search for ways to incorporate more environmentally friendly methods throughout the apparel production cycle includes evaluating dyes, assembly, packaging and fibre production. LEAF.org — Labelling Ecologically Approved Fabrics — offers certification to apparel industry companies that practice organic farming and humane animal treatment, reduce wastewater associated with textile manufacturing and use biodegradable packaging. Implementing a sustainability program gives businesses a way to differentiate themselves.
CONSUMER SEGMENTS
SEGMENTATION
• By Age & Gender:
o Men’s wear
o Women’s wear
o Kid’s wear
• By Clothing Style:
o Formal wear
o Casual wear
o Ethnic wear
o Sports wear
o Party/ Designer wear.
SEGMENTATION BY PRICE RANGE & CONSUMER BASE
KEY PLAYERS IN MARKET
Exclusive Showrooms Multi Brand Outlets
• United Colors of Benetton
• Levis’
• Lee
• Wrangler
• Flying Machine
• Spykar
• Calvin Klein
• Tommy Hilfiger
• Mufti and many more • Planet Fashion
• Abacus Store
• Shoppers Stop
• Globus
• West Side
• Kohli Brothers
• Reliance Trends
• Trent, and many more
COMPETITION
If you are an aspiring fashion designer with plans to launch your own label, you are probably aware of the complexity of the fashion industry, from manufacturing to marketing to distribution. Finding ways to innovate and simplify are keys to surviving in the hyper-competitive fashion industry. Succeeding involves more than just coming up with stylish designs or convincing a celebrity to wear your clothes. You will also need to develop expertise in a variety of other areas.
IMPORTANT FACTORS OF COMPETITION IN THE CLOTHING MARKET
The factors are as following:
• Costs, prices and the consumer.
• Technology and supply chains
• Brand management and competition.
• Sustainability and innovation.
• E-Retailing
PANTALOONS
COMPANY PROFILE
Pantaloons is one of the fastest growing lifestyle apparel retail destination in India constantly innovating designs, concepts and products by infusing the latest trends in fashion and clothing styles. A chain of stores for every Indian, Pantaloons has a repertoire of lifestyle brands to cater to every consumer needs across multiple occasions. The warm and personalized service offered by every store truly brings out the unique value proposition of the format.
Pantaloons was launched amidst much fanfare in Gariahat, Kolkata in 1997. Over the years, the brand has undergone several transitions therefore re-inventing itself to bring forth compelling trends and styles for men, women and kids. It started as a discount format, moving to a family concept store and finally evolved into a fashion destination with a sharp focus on bringing the latest in fashion.
Pantaloons retails over 200 brands which comprises a mix of exclusive brands, licensed brands, international brands and more in apparel as well as accessories leaving the consumer spoilt for choices. The greatest asset of Pantaloons is our exclusive brands that keep customers coming back to our stores. What sets these brands apart is that each of the designs are crafted keeping the consumer’s fashion sensibilities and fashion needs in mind.
Pantaloons was earlier owned by Fututre Group which is one of India’s biggest retailer company, and has now been taken over by Aditya Birla Nuvo Limted (ABNL)
With a chain of 120 fashion stores across 59 cities and towns, Pantaloons is constantly extending its footprint into the rest of modern India. It spans a retail space of 2.3 million square feet which is amongst the largest in India.
Voted as ‘India’s Most Trusted Apparel Retail Brand’in the prestigious Brand Equity Survey 2014, Pantaloons continues to nurture consumer trust and confidence.
Pantaloons is now an integral part of the prestigious Aditya Birla Group, a US$ 41 billion Indian multinational operating in 36 countries across the globe with over 120,000 employees.
MERCHANDISE OFFERED BY PANTALOONS
Marketing strategies of pantaloons
BRANDS & RANGE AT PANTALOONS
Pantaloons offers a wide range of brands for men, women and kids with choices across categories including western wear, ethnic wear, formal wear, party wear, active wear and accessories making it a one stop destination for all the fashion needs of the consumers.
WOMEN’S SEGMENT
The women’s section houses exclusive brands that offer different collections for a wide range of occasions:
Ethnic wear exclusive brands include the mix-n-match range by Rangmanch, fusion wear by Akkriti and occasion wear by Trishaa.
Western wear exclusive brands include Ajile for the fitness conscious, trendy casual wear by Honey, smart formals and evening wear by Annabelle.
MEN’S SEGMENT
The men’s section houses a plethora of options that includes our range of exclusive brands as well as India’s favourite brands.
Western wear exclusive brands include edgy casuals by SF Jeans, preppy British sports inspired collection by Byford, sports luxory by Ajile and party wear by F Factor.
Formal wear section offers a range of crisp and well tailored collection by popular international brands like Van Heusen, Allen Solly, Peter England and Louis Philippe.
KID’S SEGMENT
The kid’s section has something to offer for all age groups starting from 1 month old toddlers to 12 year old tweens. The portfolio of brands includes infant wear by Chirpie Pie, ethnic wear by Akkriti, casual wear by Chalk and Poppers.
In addition to this vast range of brands, Pantaloons also has a well established repertoire of partner brands such as Lombard, Bare Denim, Bare Leisure, JM Sport Classic, RIG, Turtle, Spykar, Lee Cooper, 109F, AND, Chemistry, Global Desi, Biba, Giny & Jony and Barbie.
MAJOR COMPETITORS
Pantaloons being a strong player in the Apparel Retail market faces competition from the following entities:
• Shoppers Stop
• Westside.
• Reliance trends
• Planet Fashion
• Life Style
PRICING, PROMOTION & DISTRIBUTION
PRICING STARTEGIES OF PANTALOONS
Pantaloons is well known in the market for its good value pricing as it provides its merchandise to a large target customer base at affordable prices, thus it falls in the category of low margin and high turnover.
Pricing strategies followed by pantaloons are as follows:-
• Private Label Brand Pricing
• Good Value Pricing
• One Price Policy
• Pychological Pricing
• Markdown Pricing
• Product Bundled Pricing
DISTRIBUTION STRATEGIES OF PANTALOOS
The distribution system of pantaloons is basically zero level as it has more than 25 private label brands, thus the product is directly delivered to the customers via Pantaloons exclusive retail outlets.
Non pantaloon brands are also procured directly from the manufacturers by Aditya Birla Group and is delivered to their stores without any intermediaries involved.
After Pantaloons’ acquisition by Aditya Birla Nuvo Limited, the logistics department of Pantaloons is controlled by the distribution management system of Aditya Birla where the products are sent to various warehouses and is further transferred to the respective Pantaloons stores.
They have their warehouses in Noida as well as Bangalore. These hubs are strategically used to distribute merchandise to maximum stores in India. The medium of transport for the stock is mostly by road and the cargos are tightly packed with full description of stock.
PROMOTION STRATEGIES OF PANTALOONS
Pantaloons mostly uses customer relationship management strategies and sales promotion techniques to attract their customers.
BELOW THE LINE PROMOTIONS
Coupons, discount, maximum number of merchandise at affordable prices, gift items with certain amount of purchase, money back offers, exchange offers and offers on special occasions.
ABOVE THE LINE PROMOTIONS
Advertisement in newspapers, TV, Internet (through shopping websites which are owned by them) and partnerships with Bigfilx & Big FM 92.7.
Other promotional mix tools used are:-
• Green Cards/ Payback Cards for customers to avail additional discounts.
• Posters and displays inside the store.
• Loyalty points for privileged customers.
• Sponsorships in various events and fests.
SWOT ANALYSIS OF PANTALOONS
STRENGTHS
• It is India’s largest retailer having 100 plus fashion stores across 86 locations in India.
• It is always updated with changing consumer preferences.
• It manages high number of purchase orders.
• Pioneer in the industry, largest market share and capitalization.
• Reputation for value for money (competitive pricing), convenience and a wide range of products.
• Highly strategic human resource management and development.
• Most trusted and respected brand by the consumers.
• Being financial strong helps pantaloons retail India deal with any problems, ride any dip in profits and perform their rivals.
• Development & innovations are high at pantaloons India with regards to a product, consumers preferences and lifestyle changes which keeps it’s ahead of its competitors.
WEAKNESSES
• It serves mass consumer base but still skilled labour force is not adequate.
• Pantaloons’ does not function internationally, which has an effect on success, as they do not reach consumers in overseas markets.
• Since pantaloons retail India ltd sell products across many sectors , it may not have the flexibility of some of its more focussed competitors.
• Easy business lines faces competitions from specialty companies. Fashion segment, shoppers stop, trend, lifestyles.
OPPORTUNITIES
• Increase in footfalls by increasing – TV commercial promotions.
• New products and new segments.
• Selling through different channels.
• Huge untapped market
• Rural retailing
• Opportunities to continue with its current strategy of large, super centres
THREATS
• Increase in trend of online shopping.
• Government policies.
• Strong competition from unorganized retail sector in India.
• Extra completion and new competitors entering the market could unsteady pantaloons retail India
• A slow economy or financial slowdown could have a major impact on pantaloons Retail India business and profit
• Consumer’s lifestyle changes could lead to less of a demand for its product/ services.
• Price wars between competitors, price cuts and so on could damage profits for pantaloons retail India.
ANSOFF’S GROWTH MATRIX
MARKET PENETRATION GROWTH STRATEGY BY THE FIRM
Pantaloon lies in the Market Penetration phase because it has its share in the market since many years and the products which they have been offering exists long time back. Pantaloons is continuously expanding their product line even faster after their acquisition by Aditya Birla Group.
CUSTOMER VALUE ANALYSIS of Pantaloons
OVERVIEW
CUSTOMER VALUE ANALYSIS
• It is an innovative research technique that assesses how your organization is viewed relative to others in the marketplace.
• Customer perceptions of value are a significant predictor of near-future market share. It gives a clear insight into the sphere of opportunities that you may tap into and the threats that can be eliminated.
ATTRIBUTES
On basis of the following attributes our learning team did a comprehensive survey:-
• Price
• Quality
• Convenience
• Staff service/Consumer handling
• Assortments
• Exchange policies
• Discounts and loyalty programs
These attributes preference differ from person to person. For some price may be more important than quality whereas for some quality can be a priority or may be something else. To prioritize these attributes on the basis of what the customers looking for in an apparel. We took a feedback from some of the regular shoppers. Out of 30 feedback forms filled by the customers we got the following statistics:
• 14 customers were quality conscious.
• 11customers were price conscious.
• 4 customers were variety/collection conscious
• 1 customer was convenience/place conscious.
From these numbers we came to know that the customers are mostly price and quality conscious. These attributes are the tools that can be used by the companies to improve their brand name and their customer liking to a great extent. Customer’s preferences can be tapped by this and the companies can work on their better customer handling. If these attributes are fulfilled then the customer is completely satisfied and becomes loyal to one’s brand.
Keeping this in our mind we further conducted the customer value analysis to know the value of these multiband outlets in the minds of the customer.
Customer Value Analysis is based on the above listed attributes.
These are those attributes that an individual evaluates as per his/her preferences. Mostly the customers try to fulfil most of these needs when buying merchandise but it depends upon the overall value that a particular brand is having in the minds of the customers.
CUSTOMER VALUE ANALYSIS CHART
ATTRIBUTES PANTALOONS SHOPPERS STOP VISHAL MEGA MART WESTSIDE
PRICE 7/10 6/10 6/10 6/10
QUALITY 8/10 8/10 6/10 7/10
CONVENIENCE 6/10 6/10 7/10 5/10
STAFF SERVICE/ CUSTOMER HANDLING 7/10 8/10 6/10 6/10
ASSORTMENTS 7/10 8/10 6/10 5/10
EXCHANGE
POLICIES 6/10 6/10 5/10 6/10
DISCOUNTS &
LOYALTY PROGRAMS 5/10 7/10 5/10 6/10
• On the basis of these attributes we did a survey outside the pantaloons store and then we interpreted 30 surveys sheets and came to this result which is shown in above chart.
SUGGESTIONS BASED ON CUSTOMER VALUE ANALYSIS
It is the favourable situation for any organization which is present in the external environment. The important thing is how the company or organization takes it or grabs it. Through our findings and customer value analysis survey we came to know that there are various attributes of Pantaloons on which they need to emphasize, to create value for customers and improve overall brand image.
The suggestions are as following:
• Open small size convenience outlets to maximize brand coverage.
• Prices should be manageable, keeping in mind the customers.
• Better promotional and loyalty offers should be introduced.
• Can add more premium brands to increase their assortment size.
• Can add a new category and brand of innerwear, nightwear and thermal wear.
• Should work on having more customer friendly exchange policies.
OPPORTUNITY MATRIX FOR PANTALOONS
NEW GROWTH STRATEGY FOR PANTALOONS
Our learning team analyzed the Pantaloons product range and compared it with their competitors. After doing so, and analyzing the opportunity matrix we thought of suggesting that the firm should think of providing exclusive retail store space for the launch of their own brand of innerwear, nightwear and thermal wear products with its private label i.e. PRODUCT DEVELOPMENT.
Objectives of new product development are as follows:-
• To increase their product line and width.
• Satisfy all the needs of customers under one roof.
• To increase market share in a growing category.
• To maximize sales and profit.
THREAT MATRIX FOR PANTALOONS
CUSTOMER SEGMENTS
The target segment of customers for pantaloons are basically those who want value for money in other terms they offer products that are best at quality at reasonable prices. The target customers for pantaloons are basically the customers of average and above average class.
There are various segments in Pantaloons like formal wear, casual wear , ethnic wear for men, women and kids. They also have collection of accessories which attract most of the customers. They have a huge collection of men’s wear as compared to women’s wear. The kids wear collection was limited in the Saharaganj Pantaloons store in comparison to the above two. The segment which attracts the customers most are the formal wear among men as they have wide collection in all ranges. Women are more attracted towards casual wear.
MARKETING PLAN FOR NEW PRODUCT in Apparel Industry
PRODUCT, CATEGORY & BRAND
We suggest Pantaloons to launch new products by manufacturing itself by their brand name and sell them in other brand stores and in their store also. This will fill their market gap and market share and increase in their sales so they should increase their product lines. We will suggest-
PRODUCT:-
Exclusive merchandise space for new category and brand of apparel.
CATEGORY:-
Innerwear, Nightwear and Thermal Wear.
BRAND NAME:-
CALBERRYS
BRAND LOGO:-
TARGET MARKET
• All existing Pantaloons loyal customers.
• All customers of middle and upper middle class.
• Men, women and children’s winter thermal wear.
• Men and women having requirement of good quality nightwear at an affordable price.
PRODUCT POSITIONING
Points of Parity :-
• Department available already in all leading multi brand apparel retail outlets.
• Product collection almost similar to their competitors. Points of Differentiation :-
• Premium quality at fair prices.
• More Discounts & Promotional offers.
• Large assortment and wide range of sizes.
• Graphic and printed inner wear to attract youth and children.
• It will be an in-house brand.
PRODUCT CHARACTERISTICS
• Pantaloons should assign exclusive and prominently visible store space for the new category.
• Merchandise should be made with a mix of premium combed cotton and elastane to suit the Indian climate.
• Should avoid inner tags and go for rubber prints.
• Use attractive box packing with full product features printed.
• Combo packs of 3 or 2 should be made available.
PRODUCT RANGE OF CALBERRYS
MENS INNERWEAR AND THERMAL WEAR WOMENS INNERWEAR AND THERMAL WEAR KIDS INNERWEAR AND THERMAL WEAR
INNERWEAR BOTTOM
• REGULAR BRIEF
• BOXER BRIEF
• TRUNK
• BOXER SHORTS INNERWEAR BOTTOM
• BIKINI BRIEF
• BOY LEG BRIEF
• HIPSTER • BRIEF
• VEST
• TRUNK
• SHORTS
INNERWEAR TOPS
• VEST
• MUSCLE VEST
• SLEEVED VEST INNERWEAR TOPS
• COTTON BRA
• PADDED BRA
• STRAPLESS BRA
• UNDERWIRE BRA THARMAL WEAR
• UPPER AND LOWER
THERMAL WEAR
• UPPER AND LOWER THERMAL WEAR
• UPPER AND LOWER
PRICING STRATEGIES
• Pricing strategy should keep the image of Pantaloons in mind i.e. good quality at fair prices.
• The pricing of product should follow GOOD VALUE PRICING.
• In the beginning they can use price penetration strategy to attract maximum customers.
• Product bundled pricing can be implemented as well.
MEN’S INNERWEAR AND THERMAL WEAR WOMEN’S INNERWEAR AND THERMAL WEAR KID’S INNER WEAR AND THERMAL WEAR
INNERWEAR BOTTOM
PACK OF 1 AT Rs 149
PACK OF 3 AT Rs 399 INNERWEAR BOTTOM
PACK OF 1 AT Rs 149
PACK OF 3 AT Rs 399 INNERWEAR
PACK OF 3 BRIEFS AT Rs 199
INNERWEAR TOPS
PACK OF 1 AT RS 199
PACK OF 3 AT RS 499 INNERWEAR TOPS
PACK OF 1 AT RS 199
PACK OF 3 AT RS 499 THERMAL WEAR
UPPER AND LOWER AT Rs 399
THERMAL WEAR
PACK OF 1 AT RS 599 THERMAL WEAR
PACK OF 1 AT RS 599
PROMOTIONAL STRATEGIES FOR CALBERRYS
Integrated Marketing Communication (IMC) is the application of consistent brand messaging across both traditional and non-traditional marketing channels and using different promotional methods to reinforce each other. Pantaloons will be using the integrated marketing communication technique to promote all innerwear, nightwear and thermal products under the brand name of Calberrys with a common message i.e. “Premium Quality at Fair Prices”.
TARGET AUDIENCE
• Upper Middle Class.
• Middle Class.
OBJECTIVES
• To make people aware of “CALBERRYS”.
• To get customers know about the brand’s features and it’s range of products.
• To increase market share in innerwear, nightwear & thermal wear segment.
• To ultimately increase profits.
• To uplift the overall brand image of Pantaloons.
DESIGNING COMMUNICATION
Appointing an exclusive salesperson for both men and women sections to demonstrate the product.
Using indoor posters, printouts on shopping bags, placards at point of sales counters etc.
Visual merchandising should be maximum.
PROMOTIONAL CHANNELS
Banners will be installed outside malls and shopping centers.
Online promotion on e-commerce websites/ Ads on social media platforms.
Brochures/ Gift Cards.
Posters inside Pantaloons outlets.
Mannequins wearing the product on display at store windows.
Sponsorship events in the name of CALBERRYS by Pantaloons.
In store TV Commercials.
USE OF PROMOTIONAL MIX TOOLS
Use of advertising :
o Online ads on flipkart.com, myntra.com, facebook, jabong.com and apparel blogs.
o Printed advertisements in one local newspaper i.e. Dainik Jagran and one English daily like in Lucknow Times off The Times of India.
o Sending email advertisements and SMSs to loyalty card members.
Use of sales promotion techniques :
o Like giving 3% to 5% off.
o Giving Rs. 499 Calberrys gift vouchers during billing on purchase of any Pantaloons products above Rs. 2999.
o Buy 1 for Rs. 199 and 3 for Rs. 499 offers.
Providing Calberrys Gift Cards to customers during billing process on purchase of Calberrys products. These Gift Cards can be redeemed in future to avail additional discounts.
DISTRIBUTION CHANNEL STRATEGIES FOR CALBERRYS
DISTRIBUTION STRATEGY
SALES CHANNEL- A sales channel can be direct if it involves a business selling directly to its customers, or it can be indirect if an intermediary such as a retailer or dealer is involved in selling the product to customers. There would be two sales channel for Calberrys :
Pantaloons Outlets.
Online/ E-Commerce websites.
o www.abof.com (Owned by Aditya Birla Group)
o www.trendin.com (Owned by Aditya Birla Group)
o www.myntra.com
o www.jabong.com
CHANNEL LEVELS
When the distribution of product is direct from the producer to the consumer or the user, then it is a zero level distribution channel. This is also called as direct selling. As ADITYA BIRLA NUVO RETAIL LIMITED itself would be manufacturing Calberrys products for Pantaloons, they will be following a zero level distribution channel.
CALBERRYS : VERTICAL MARKETING SYSTEM
The distribution channel is zero level as the ownership of Pantaloons is in the hands of ADITYA BIRLA GROUP.
Under Vertical marketing system it will follow CORPORATE VERTICAL MARKETING SYSTEM with backward integration.
DISTRIBUTION SYSTEM
Product will be manufactured at Madura fashion and lifestyle production units, which is a subdivision of Aditya Birla Nuvo Ltd.
Then the product will be sent to various warehouses situated at all corners of the country. For Lucknow, the nearest warehouse is in NCR region. Lucknow Pantaloons outlets get their stocks from this warehouse only.
The distance that needs to be covered to transport Calberrys stocks from Noida to Lucknow would be 451 Kilometers. Approximate bulk transport cost between these two locations would be Rs. 8 – 11 per Kilometer.
After that the inventory is stored at a centralized location in Lucknow from where it will be distributed to different Pantaloons retail outlets in the city.
The inventory distribution will be done as per the store’s requirements for new stocks.
• For online purchases, Jabong and Myntra will provide their own delivery services which they are currently using for other brands.
• The e-retailers will be sold Calberrys products on a bulk discount basis on which they will keep a margin and sell it.
• The selling that will be done through trendin.com will require to engage a well networked home delivery system just like ekart.
Proper INVENTORY MANAGEMENT is very necessary to avoid any kind losses or damage.
IMPLEMENTATION TABLE
• O1 JANUARY 2016 • Launch of CALBERRYS at all Pantaloons retail stores across the country.
• Use of suggested promotional tools to create awareness of the brand.
• 01 FEBRUARY 2016 • Analyzing the sales and recording the feedback from customers regarding the product.
• 01 MARCH 2016 • Implementing the changes to be made in the product if any.
• 01 MAY 2016 • Increased use of promotion mix tools to make the customers completely aware of the new launch.
• 01 JULY 2016 • Salaries to the sales team employees of Calberrys.
• 01 SEPTEMBER 2016
• Checking the production and operations of Calberrys by analyzing the reports.
• 01 DECEMBER 2016 • Forecasting the next year’s sale by preparing the current year sales chart.
• Production planning for the next year with updated product changes and planning the number of units to be produced of a particular product.
ESTIMATED SALES BUDGET OF CALBERRYS FOR 2016
A sales budget is a financial plan depicting how resources should best be allocated to achieve the forecasted sales. The purpose of sales budgeting is to plan for and control the expenditure of resources (money, material, people and facilities) necessary to achieve the desired sales objectives.
Sales include:
• Men’s Innerwear.
• Women’s Innerwear.
• Kid’s Innerwear.
1ST QUARTER 2ND QUARTER 3RD QUARTER 4TH QUARTER ENTIRE
YEAR
EXPECTED SALES IN UNIT 450*3 600*3 750*3 900*3 8100
UNIT SALES PRICE Rs. 199 Rs. 199 Rs. 199 Rs. 199 Rs 199
TOTAL SALES Rs. 268650 Rs. 358200 Rs. 447750 Rs. 537300 Rs. 3223800
ESTIMATED PRODUTION BUDGET OF CALBERRYS FOR 2016
The production budget calculates the number of units of products that must be manufactured, and is derived from a combination of the sales forecast and the planned amount of finished goods inventory to have on hand (usually as safety stock to cover for unexpected increases in demand).
1ST
QUARTER 2ND QUARTER 3RD QUARTER 4TH QUARTER ENTIRE YEAR
ESTIMATED SALES UNIT 1350 1800 2250 2700 8100
DESIRED ENDING INVENTORY 500 500 500 500 500
TOTAL
REQUIRED 1850 2300 2750 3200 8600
ESTIMATED PROMOTIONAL BUDGET OF CALBERRYS FOR 2016
‘Promotional Budget’ is a specified amount of money set aside to promote an organization’s products. Promotional budgets are created to anticipate the essential costs associated with growing a business or maintaining a brand name. As per our assessment Pantaloons should keep aside 60% of the estimated sales amount calculated above for promotional activities.
We suggest to use “Percentage Distribution” of promotional budget to carry out various promotional activities and estimate the total expenditure to be incurred for promotion of Calberrys.
TOOLS USED PERCENTAGE DISTRIBUTION
(OF PROMOTIONAL BUDGET)
• ONLINE/SOCIAL MEDIA
• INSTORE DISPLAY
• POSTERS AND BANNERS
• CALBERRYS SALESPERSON
• AD PRINTED CARRYBAGS
• HOARDINGS
• BROCHURES/ LEAFLETS • 10 PERCENT
• 20 PERCENT
• 20 PERCENT
• 10 PERCENT
• 10 PERCENT
• 20 PERCENT
• 10 PERCENT
CALBERRYS SECTION LAYOUT IN PANTALOONS
REFERENCES
• www.marketing91.com
• www.slideshare.in
• www.ukessays.com
• www.wikipedia.com
• www.pantaloons.com
ANNEXURES
ANNEXURE 1
MARKETING SURVEY ON – PANTALOONS
Ques 1) How do you come to know about Pantaloons?
Ans – A) Television
B) Hoardings
C) Print media
D) Social Media
Ques 2) How frequently you visit Pantaloons?
Ans – A) Every week
B) Every month
C) Once in 2 months
Ques 3) Do you buy clothes each time you visit Pantaloons?
Ans – A) Yes
B) No
Ques 4) If “No” then what are the reasons behind not buying?
Ans – A) Non availability of brands
B) Less variety of clothes
C) High prices
D) Others
Ques 5) Is pantaloons economical?
Ans – A) Yes
B) To some extent
C) No
Ques 6) How do you rate advertisiments done by pantaloons?
Ans – A) Excellent
B) Good
C) Satisfactry
D) Average
Ques 7) Does pantaloons consists of only high range apparels?
Ans – A) Yes
B) No
C) To some extent
Ques 8) What is your satisfaction level with pantaloons?
Ans – A) Excellent
B) Good
C) Satisfactory
D) Average
ANNEXURE 2
CUSTOMER VALUE ANALYSIS – QUESTIONNAIRE
S.No. Attributes Relative Scaling
(1-10) Pantaloons Shoppers Stop Vishal Mega Mart Westside
1 Price
2 Quality
3 Convenience
4 Staff Service/Customer Handling
5 Assortments
6 Exchange Policies
7 Discount & Loyalty Programs