Zapp - Marketing Mix & Positioning

Marketing Mix and Positioning (Assignment 2)

Paper: Fashion Marketing Faculty: Mr. Sushil Raturi

Submitted by: Akansha Choudhary | Arnav Paitandy | Gaurang Gupta | Natasha Dhawan | Prachi Mehta | Sunil Kerketta |

MFM, Sem 1, 03 MFM, Sem 1, 06 MFM, Sem 1, 11 MFM, Sem 1, 16 MFM, Sem 1, 21 MFM, Sem 1, 31

National Institute of Fashion technology, Mumbai November, 2008

Raymond ZAPP!

MFM, Sem 1 | NIFT, Mumbai | 2008

INTRODUCTION Grown-ups never understand anything, and it is tiresome for children to be forever explaining things to them, writes Antoine de Saint-Exupery in The Little Prince. The grown-ups might not have understood kids in Exupery’s social allegory, but apparel brands have. Gone are the days when kids were being taken to zoos, museums and fortresses. Today, even educational trips for children are being organised in malls. The branded apparel market in India is worth US$ 750 million and is growing at a steady pace of 18 to 20 percent—all despite competition from local, unorganized markets with an estimated worth of US$ 3.5 billion. According to research firm KSA Technopak, the overall kids’ apparel market size is over Rs 13,000 crore, of which branded segment consists Rs 3,000 crore. Fueling this growth is a rise in peer pressure and exposure to fashion trends on television that has encouraged Indian kids to think independently and dictate what they want to wear. Also, a growing population with double-income and single child families has led to the increase in disposable income, compelling parents to spend more on their kids, particularly in urban areas. To exploit these above mentioned trends, companies like Raymond are launching exclusive stores for kids’ apparels. ZAPP! is an attempt to grab a major share of this pie with Raymond’s aiming to be among the top three players in the Indian market. Raymond Group, jumped into the fray in 2006 with Zapp!, to capitalize on this lucrative market. From charming blazers for boys to preppy skirts for girls.

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Raymond ZAPP!

MFM, Sem 1 | NIFT, Mumbai | 2008

STORY BEHIND THE NAME OF THE BRAND The name has been derived from the 5 mascots of the brand:

Zion a 10 year old boy who is the eldest in the group and the most popular guy in the school.

Ashley A 7 year old girl who is completely carefree and adventurous and who loves to participte in sports.

Posh A fashion conscious 8 year old girl who spends most of her time socializing.

Pixel The youndest in the group, who loves to watch power rangers and invent new things.

! Jambo A pet dog who is always ready for adventure

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Raymond ZAPP!

MFM, Sem 1 | NIFT, Mumbai | 2008

PRODUCT MIX AND PRICE POINTS Zapp! offers an exciting range of garments and accessories targeted at fashion conscious young adults between the age group of 4-12 years. It has a styling studio in Bergamo, Italy. The company strongly feels that the brand needs to understand the market better, in order to produce clothing designs that appeal to their target audience. The brand offers everything from party wear to casual wear, kids can now choose a different style for each different occasion. Designed in-house, the Zapp! clothing line has been classified as following:  Basics  Denim  Street wear To go with their clothes, kids can also shop for accessories such as footwear, bags, bed and bath linen. Zapp! Has been introduced keeping in mind the parents who want the best for their kids. The brand has been conceptualized to complete the Raymond portfolio. Many homes now have double income and a single child, they want the best for their kids. So Raymond is now targeting another important customer - the kid along with offering products for the entire family The pricing of the Zapp! brand does not limit it only to the metros. Instead it has been planned for Tier II cities as well. The merchandise is offered in the price range of Rs. 299 – Rs. 1399. This makes it a very affordable brand in all major cities of India.

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Raymond ZAPP!

MFM, Sem 1 | NIFT, Mumbai | 2008

Product Offering and Price Points S Sub Brand # GIRLS 1

Product Range

Girls tops

2

Girls Shirts

Price Range (INR)

Product Class

599 – 799

Basics

2390

Basics

999 – 1399

Denims

1045

Basics

Fairy Magic 3

Girls Jackets

4

Frocks

5 6 7

Girls Denim Jeans Girls Cotton Trousers Girls Dungarees

699 – 899 799 – 899 799

Denims Street Wear Street Wear

8

Skirts

699 – 799

Street Wear

9

Girls Capris

10 BOYS 11 Flying 12

Girls tops

13

Boys Sweatshirt

Boys Cotton Trousers Boys T-shirts

Boys Denim Jeans

14

699

Denims

599 – 799

Basics

899-999

Street Wear

399 – 799

Basics

899

Basics

899 – 1099

Denims

599 – 899

Street Wear / Basics Denims Denims

Oxford Blue 15

Boys Shirts

16 17

Boys Capris Boys Denim Jacket

799 999

Sizes Available XXS / S/ M/ L/ XL/ XXL XXS / S/ M/ L/ XL/ XXL XXS / S/ M/ L/ XL/ XXL XXS / S/ M/ L/ XL/ XXL S/ M/ L/ XL S/ M/ L/ XL XXS / S/ M/ L/ XL XXS / S/ M/ L/ XL XXS / S/ M/ L/ XL/ XXL

S/ M/ L/ XL/ XXL XXS / S / M/ L/ XL/ XXL XXS / S / M / L / XXL XXS / S / M/ L/ XL S / M/ L / XL/ XXL S / M/ L / XL S / M / L / XL

Display of the garments: 1. The garments are hung on hangers and displayed on wall mounted displays and four way browsers. 2. Every garment has a price tag and a Sub- brand label hanging from the garment label.

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Raymond ZAPP!

MFM, Sem 1 | NIFT, Mumbai | 2008

PROMOTION Zapp! has come out with a variety of ideas to make the shopping experience more engaging for kids. It believes in a 360 degree marketing approach including events and promotions helping the brand generate visibility and stand out in the clutter. The flagship stores are equipped with a large plasma screen that welcomes a Zapp! club member by throwing up his picture and a greeting. This is a unique way that the brand bonds with children who immediately feel important when they step into the store. Some stores also have a play area and a bookshelf where kids can keep busy while parents settle the bill. The most exciting part about the store experience is the "igloo shaped" trial room. The Zapp! brand has an agreement with Warner Brothers to feature Superman on its clothing range, which has worked well for the brand. Recently, in August 2008 Zapp! celebrated Onam in a different way in Kerala. It provided kids with a flair for fashion designing an opportunity to explore their talent. Kids and mothers could walk into the Zapp store and participate for free in a design-madeeasy contest, where materials and guidance were provided for kids to design their dream garments with the help of a parent, using the traditional Kasavu fabric. The best design sketches will be selected by the Raymond Europe studio in Italy and certificates awarded with a special prize to encourage the talent.

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Raymond ZAPP!

MFM, Sem 1 | NIFT, Mumbai | 2008

DISTRIBUTION OF ZAPP! Launched in 2006, in a span of two years, the brand has grown from a single store in Ahmedabad to a chain of 18 exclusive stores, four franchised stores, 56 national chain shops and 100 multi-brand outlets throughout India. The designs are made in-house at the design center in Italy. Majority of the ZAPP! garments are outsourced from various manufacturer across India. Presently Zapp! has a presence in the following cities of India:  Ahmedabad  Bangalore  Calicut  Chennai  Cochin  Delhi  Gurgaon  Hyderabad  Kolkata  Mumbai  Navi Mumbai  Nagpur  Pune The brand also has its retailed in the Middle East with presence in Abu Dhabi and Bahrain.

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Raymond ZAPP!

MFM, Sem 1 | NIFT, Mumbai | 2008

POSITIONING AND TARGET CUSTOMERS ZAPP! is a brand that is synonymous with fun, attitude and adventure unlimited. A brand that sketches a new way of life for kids. Emergence of the child as an independent buyer has given a boost to the branded kidswear market. With effective publicity mediums like Pogo or Cartoon Network, video games, blockbuster of superheros and the influence of peers, kids are aware of the latest fashion and trends in clothes, footwear and accessories. Zapp! considers the retail stores as one of the most important consumer touch points, and the company has done well in planning store environments that are lively and engaging. The interiors have a colorful and modern appeal, and the color-coordinated shelf displays allow customers to mix and match their children’s clothing and accessories. Raymond has also recently introduced the ColorPlus Junior line. This may lead to cannibalization of the Zapp brand. But Raymond feel otherwise. It considers Zapp as standalone kids wear line, and do not think that it will clash with Junior. They argue that, while Zapp will remain an exclusively for kids shop, Junior is intended as a complete family experience in the premium category. Zapp! as a brand is positioned as a better product compared to the competition from the majority of unorganized players in the kids wear market. It eyes its customers amongst the kid of today who are aware and select their purchases themselves. Also the families targeted are those who prefer to offer to their kids the best. So if the parents wear Raymond brands to look perfect, they won’t let their kid be far behind.

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