Name Of The Innovation

Name of the Innovation: Niche Garments Retail Team Name: iCON Institute Name: Acharya Institute of Management and Sciences, Bangalore Team Members: Mr. Lalit Mohan Jha Email id:[email protected] Ph No: 9886198275

Ms. Monalisa Senapati Email id: [email protected] Ph No: 9342201459

Contact Address:

Acharya Institute of Management & Sciences 1st Cross, 1st Stage, Peenya, Bangalore-58

Executive Summary “Clothing says a lot, but you can say it better.”

According to our research and analysis we have noticed that the customers are not very much satisfied from the garment retails. In search of there need from garment retails the customers are roaming from one outlet to another. We have taken the sample size of 300 that consist of:Potential customers

Nos.

1.Employee from Software sector(Male)

79

2. Employee from Software sector(Female)

64

3.College Students

84

4.Employee working in others sectors

37

5.House Wives

21

6.Others

15

We have also noticed in our questionnaire that the customers expect following facilities and services from the retail outlets: PRODUCT ADDITION 1. CAR AND BIKES WATER SERVICING AND POLISHING 2. PHARMACY SHOP 3. CHILD CARE CENTER 4. BEAUTY SALOON 5. OPEN ENDED CINEMA THEATER 6. OTHERS (DIFFERENT RELIGIONAL VEDIO AND AUDIO CDS, BOOKS ONE DIFFERENT DEPARTMENTS)

Due to time consistency, we have only concentrated and done in depth study only on garment sector. Niche garment retailing emerging as a sunrise industry in India and is presently the one of the largest Employer. The Internet represents approximately $ 6.5 million of E-commerce purchases. Throughout the year Women have been constant and dominant consumer in the industry.Womens apparel sales growth was 3.7% and men’s apparel growth was 4.1%, Girls & Boys apparel rose 0.5% & 3.8%.Womens apparel accounted for 52% of all apparel sales. The men segment accounted for 31% of total apparel sales. COMPETING AND COMPILMENTRY PRODUCTS in a broad view, the retail apparel industry competes with all other sector in the retail industry. These different sectors include Electronics retailers, Wholesales, Other discount stores, Shoes stores convenience stores and so on. We felt it is worth recommending you the ideas given above specifically GARMENT SECTOR piloted Bangalore city.

Introduction The business ideas is designed for the innovative product and strategies particularly for garment sector namely: 1. 2. 3. 4.

Designer wear at the weekends. Business executive dresses for females. Combo, party & wedding wears. Regional wears.

1.

Description

1.1)Designer wear at the weekend: This type of strategy is no where in India in retail market, as of now it is available only in exclusive showrooms. We will sale designer wear like Ritu Beri, Manish Malhotra, Satya Paul, Milazzo etc. exclusively at the weekend.

By, Maria Diochinova

By, Miulazzo

1,2) ,Business executive Dresses: This will consist of complete executive apparel such as blazer, tie, trouser, shirts, socks, shoes, tie pin, formal shirts, wrist-watch, sun glass, and other accesaries.

3. Combo party and wedding wears: We will introduce the combo party and wedding wears of apparel. We will introduce matching groom and bride wears so as to enhance their beauty, with minimum time and effort.

1.4) Regional Wear: This will be an invention in retail history- introducing different regional dresses to the customers.We will devide the whole nation in two broad categories,i.e. -a) North Indian: Gujarati, Rajasthani, Bengali, Punjabi, Sambalpuri, Banarsi, etc. b) South Indian: Kanchivarm, Pattu Sari, Dhoti, Lungi etc.

MARKET RESEARCH:India is a strong competitive in the world’s garment market. The latest trends are going towards the fashion. Apparel sector is one of the booming and glamorous industries among others. From several researches done in the men apparel market in India, it is found that the market is expected to grow rapidly at Compound annual growth rate (CAGR) of 14.86% from 2008 to 2010, women apparel market is also growing rapidly. Based on our assessment of General Questionnaire (Shown in annexures), we have come across various needs of the customer from the retail sector. Our research is based on people’s opinions and attitudes towards products and services. We have made the survey in the shopping malls like Garuda malls, Spencer, Big Bazaar, Forum, Spar mega market, Star Bazaar, shoppers stop, and we have noticed that customer are not satisfied with the products and services . We came across that the majority of the customers are not completely satisfied from garment retailers. Therefore we realized that there is need for the full solution mainly in garment sector in retail outlets. Since the females are mostly attracted towards the garments sector , therefore we found worth recommending you the plan for complete solution in garments retail industry.

MARKETING STRATEGY:A market survey was carried out in Bangalore to find out people’s expectation fron the market and the varies constrains that resist them from buying the products available in the market. Enumerators collected data by administering questionnaire (Refer Annexure I,ll) which involved open and close ended questions. Sample size was 300 and was chosen by the method of random sampling.

ANALYSIS OF INFORMATIONS: Percentage and average methods are used as statistical tool for data collection. 1. People with income more than Rs.50000 p.m. income, with family members less than three want to posses garments with some unique design to maintain their status.

2. There are vary few people in high income group, those who hardly influnced by the fashion shown in the cinema.Where as there is a drastic change noticed in the high middle income group, who vary much influenced by the fashion of actor/actress. Again middle income customer segment influnce by the brand name with discount on it. 3. Most of the high middle income group customer find a mall/shop that will suggest them a complete solution for their fashion/style. Where as people with vary high income want a mall/shop where they can get a wide range of procuct, so that they can choose the best one for them. 4. Surprisingly, there is a chank of customer who want follow their state’s traditional fashion to create a different style for them.

a. TARGET MARKET On the basis of analysis of income, gender, age, occupation, religion and location of the people we have choosen the different target customer for our different products.

A. B. C. D.

Designer wear: Income group above Rs 50,000/ month (individually) Regional wears: Customers above 25 years of age. Combo party and wedding wear : Income group above Rs. 20,000 (individually) Business Executive:Individual’s incomes above Rs. 15,000/ month.

Note: - Individually =Per capita income

b. PRICING, STRATEGY 1. We will provide psychological pricing with some discounts for Combo offer of wedding and party wear i.e.; if the individual price of the garments are Rs. X and Rs. Y then the combo offer Rs.[( x + y)-z%]. 2. Business executive dresses for females and regional dresses will be provided with discount on buying other related commodity . E.g. Purchase on Rs.

Discount On Product

1000

5% - Perfume

2000

12% - (Perfume + cosmetics )

Designer wear will be arranged through a auction show where initial pricing of the dress will be started from keeping Y % profit margin on the dress. People would be permited to attain the auction by purchasing a ticket worth Rs. X. This strategy will help us in attracting the high income segment and also to avoid unexpected gathering. Starting bidding price= cost+(cost*y%profit)

Promotional strategies: We have choosen different promotional strategies to promote different products, as the route of reaching to diffrent segment of people is vary diffrent.Following are the various ways of awaring the target customers: 1. Advertisement for designer wear will be given in popular “Fashion Magazins”, 2. SMS through Rediffbol, mobile operator etc. can be used to aware people about the date,time and place of auction for designer wear. The same media can also be used for promoting regional and business executive dress. 3. We can send e-mails through internet to aware people about designer wear and then relunch of the same through e-auction. 4. To promote wedding wears we can give advertisement through banner and pop-up in various “Matrimonial site”. 5. To promote regional wear, advertisement will be provided in regional newspapers and magazins like; Kannada, Hindi, English,Bengali etc, that has circulation in Bangalore. Coupons worth 10% discount would also be published in the newspapers for garments other than designer wear. 6.There can be advertisements during peak hours in radio FM as it is booming today. 7.Advertisement would be played during the internal in cinemas as people are crazy about the movies and cinemas. 8.Hoardings can be placed outside the colleges, famous parlours, Health care center etc. 9.Future media – Future Group’s own media channel could be used to creat awareness about these products.

BRANDING STRATEGIES: Like other strategies diffrent types of branding has to be adopted for diffrent products.

1. DESIGNER WEAR: Designer wear does not require much of influence by brand name as “the designer name” itself act as a brand.

2. BUSINESS EXECUTIVE DRESSES: Here three branding strategies can be adopted to promote the product: a. Umbrella Branding through “Pantaloon” b. Individual branding – that will give a joy of experiencing a new product. c. Umbrella branding through other famous brands like –Peter England, Arrow etc. -

among this the first one is the most fesiable as the advantages the product can gets are:



It does not incure much of cost in “brand awarebess” as “Pantaloon” is a well known brand to all. Through “Pantaloon” it can get ready made “brand loyal customers.



3. Combo party and wedding wear: To promote this product branding shall be done under a new brand name, so that the customer can enjoy a new product. Brand name shall be like ; “Mr.& Mrs.” , “HUM”(a Hindi word that means “WE”) 4.REGIONAL WEAR: Branding strategy shall be of “individual brending”, where similar type of designs can be put under one brand, Like “GHARANA”(Garana is a hindi word that means “Tradition”)

SELLING AND DISTRIBUTION STRATEGIES: Selling and distribution strategies should be such that it helps the company to achive the goal.The goal is to deliver the products to its target customer to develope customer base, and at the end earn healthy profit. Different alternative selling and distribution strategies for different products are shown below: 1. DESIGNER WEAR:

SOURCES

exhibits in the glass show case so as to advertise the product.

Famous designer

Launch the product through auction at Future group’s mall,

Relaunched those products through Esale with a minimum profit margin

CASH GENERATION CYCLE:

Unsold product in Eauction

Relaunche d those products through Eauction

Unsold product in auction

Bidding- a open & unlimited profit. Revenue=c ost+(cost*x %profit)+y%p

E-auction:an unlimited means of profit earning from the entire world.

Ticket for getting invitation for bidding.

Sponsorship – Name of the sponsoror of the auction will be printed on the ticket

Revenue=no. Of ticket sold * price

CASH INFLOWS E-sale. Revenue=cos t+(cost*x%pro fit)

x%= Initial profit margin y%= Unlimited profit margin

2. BUSINESS EXECUTIVE DRESSES;

SOURCES Famous brands Designers

Exclusive Offers for “would be EXECUTIVE’ Relaunched the executive wears targeting the students with a discount offers. Revenue=cost

CASH GENERATION CYCLE:

Displayed for the first time. Revenue=[co st+(cost*x%)

Remainin g unsold products

Unsold garments

On purchae s of Rs.1000 & above get a discount of 5% on

On purchase of Rs. 2000 & above get a discount of 10% on(perfume+wrist

At the first launch

Discount on 1000rs purchase

Revenue=[c ost+(cost*x% profit)]*sales volume

Revenue=[cost of executive wear+(cost*x% of profit)]+[cost of perfume+(cost *y%)-5%]

Discount on 2000rs. Purchases

Revenue=[(cost of executive wear+(cost*x%of profit)] +[cost of perfume+(cost*y %profit)+cost of wrist watch +(cost*z%profit)] -10%discount

CASH INFLOW

Exclusive Offers :

Revenue=cost of executive wear+(cost*x%profi t)-discount x%=Highest profit margin y%=profit margin of perfume z%=profit margin on wrist watch x%>y%>z%

3, COMBO PARTY AND WEDDING WEAR

Sources Boutique Designer

For the first time launching combo price will be lower than the individual price

Unsold garment s

Exclusive offer Couple purchasing above rs.10,000 will get a exclusive pass for attening special

CASH GENERATIG CYCLE:

At the first time launched

Exclusiv e offer

Revenue =[ cost + (cost*x%) ]*sales

Revenue = [cost+

Cash

x%= Initial profit margin

4. REGIONAL WEAR

Source From the origin eg:Jaipuri langha from

Showcase selling

Sales offer Deliver the remaning wear to the customer with

Unsold regional wear

Jodi offer on purchasing male/female wear customer will get a free gift for female/male

Pilled up to relaunched at religious festival

CASH GENERATIG CYCLE:

At first lunch

On Jodi Offers

Revenue=

Revenue=[cost +(cost*x%)Rs.y)]*sales volume

[cost+( cost*x%)]*sale Cash inflow

On discount Revenue=[cost +(cost*z%profit) ]*sales volume

At festival time Revenue=[cost+(c ost*x%profit)]*sal es volume

x%= Initial profit margin Rs. Y = price of gift z%= profit which is less than x%

FINANCIAL PLAN

cost -revenue estimation of regional, business executive, combo party and weeding wear

Revenue=

no. Of dresses sold * price

Types of dresses

No. Of dresses sold p.a.

*

Avg. Price/dress

= Total( in rs.)

combo party and wedding wear

250

*

20000

500000 0

Business executive dresses

150

*

3000

450000

Regional wear

100

*

800

80000

Total

500

553000 0

cost= rent+salaries

Types of expences

cost/year

Rent

116640

Salaries of sales representative

480000

Total

596640

493336 0

Profit

Rent= 36sq/ft area for each garment*Rs90/sq ft*3(types of dresses) =9720rs/ month annually= 9720*12= Rs.116640

Salaries= Two representative for each type of garments*Rs 5000/employee*3(types of

dresses) = rs. 30000 Annually= rs. 30000*12=

Rs. 360000

Salary of manager= Rs.10000*12= Rs 120000 Rs.480000

Tax is excluded

Cost -revenue estimation for Designer wear

No.of dresses sold p.a.

20

*price

= Total

28000

560000

*300

720000

Other incomes

Tickets (200 tickets/month *12)2400

Sponsership (8 Sponsership /month *12) =96

*2000

192000

Total

1472000

Cost= rent+salaries+ royalty+ printing

rs. Rent

= Total

100sq.ft.*rs.150*12months

180000

2members*rs.5000*12months

120000

salaries sales representative

Manager 1member*10000*12months

120000

royalty

50% of sales price ( 560000*50%)

280000

printing

70tickets*rs.25*4weeks*12months

84000

Total

Note- Royalty will increase with the bidding price.

Total

784000

Profit

688000

Competitive Business Strategy As the product started growing in the market, new competitors and substitutes of the product rise in the market. Our product is such that, it has the following competitive strenghs to protect itself from the competitions. A. PRODUCT’S STRENGH ANALYSIS:

1. Designer wear is most attractive one; it will lead the people towards identing the latest fashion. 2. Regional wear will be innovative in the mall and hence it will attract the customer . 3. Combo will also be a new arrangement and hence it will give the solution for the choice. E.g. Women’s dress embroiders will be same as of men. 4. Since executive dress for female will also be the new product. B. SPECIFIC ATTACK STRATEGY: 1.Discount program on product enables the customer to take the other product from the same mall on discount. This will be the better representation in comparison to the other mall. 2. Intensive advertising promotion will be done when it will reach growth stage to face the challenges of competitors. 3, Continious product modification: The type of garments we have selected that does not need much effort to modify them, The only effort requred is for their presentations. 4. Prestige products like “designer wear” will help in maintaining the status of the business group and it may futher increase the reputation of Future Group.

6. Promotion of the product through SMS through rediffboll or Chikka messenger will be the best way for promotion.This type of promotions helps company’s to keep reminding about the products and as a result psychologically they become a brand loyal customer.

Conclusion: This project basically gives us the complete solution for the garments. It shows us the importance of emerging potential of the high class as well as middle class market. It will be first time in the history of retail industry. The Desire and Expectation of the customer will get it through this plan rather than dictating look. The plan will provide people everywhere with the piece they need to create their own style and judge the master designs. It will let the customer to feel the master design.

Annuexture 1

QUESTIONAIRE (1) Name:………………………. (2) Age……….

(4) Email Id:………………

(3)Gender

(5) Phone No……………………..

(6) If you have rs.2000 with you, how you will spend that? Show the slap: Food & Beverage-

Electronics Items-

Home Appliance-

Cosmetics & Jewellery-

Garments-

Weekend Special-

Cinema-

Environment/Location

(7)You want to spend major portion of your money on this because of: Your passion

Influnce of others

Need

Other

(8) Do you think your portion of spend on the above marked is constant? Yes

It varies with situation

Certainly not

I do not know

(9) Other than above marked product, you would alsso liked to spend on: 1.

2.

3.

4.

(10) Malls you prefer the most rank in accordingly: Big Bazaar

Bangalore Central

Cosms Mall

Star Bazaar

Garuda Mall

Spar hypermarket

Subhiksha

Forum

More

Relaince fresh

Gopalan Mall

Nilgiris

Safal Fresh

Lifestyle Shopping Complex

(11)You want to go to a particular mall because of its; Environment Service

Range of products

Date:…………….. Place:……………… Signature

Price of products

Annexture2

GARMENT QUESTIONAIRE

(1) Name:……………………….

(2) Age……….

Gender

M/F

Profession:………………………..

(3) Income…………………………………Members in the Family……………………………

(4) Email Id:………………

(5) Phone No……………………..

(6) How often you buy a garment?

Weekly six months

Monthly

Twice in a month

Once in

(7) You buy a garment because ofDesign Special offers

Quality

Price

(8) Does the brand name matter for you? Yes always

Not always

Extremly not

(9) Which combination you like most? Design&quality Quality&Price

Design&price

Status&easy availibility

(6) Which brand you prefer most? Rank it accordingly Peter England

Louis Phillip

Adidas

Identity

Nike Reebok

John Player

Levis

Lee Others:…………………………………..

(7) Are you passionate about master design?

Yes / No

(8) What resist you from possessing that?

Price

Easy Availability

Awareness About the Source

Others……….

(9) Which Shopping Mall do you prefer for the Garments? Big Bazaar

Bangalore Central

Garuda Mall

Forums

Lifestyle Shopping complex

Cosmos Mall

Vishal Meghmart

Shoper Stop

West Sides

Others if Any……………………………….

(10)Name a tyoe of dress that hardly you can get in Bangalore ..................................................................... (11)The above you get from; Personal contacts Patticular Shop/mall(Please name the shop) .......................... Teleshoping(Please name the show)........................................... E-shoping (Please name the site)...............................................

Any Suggestion…………………………………………………………………………… …..

Date :……………..

Place:……………… Signature (

)