Raymond Introduction

With a 33 million-meter capacity in wool & wool-blended fabrics, Raymond commands over 60% market share in worsted suiting in India and ranks amongst the first three fully integrated manufacturers of worsted suiting in the world. They claim to be the only company in the world to have a diverse product range of nearly 20,000 design and colours of suiting fabric to suit every age, occasion and style. These are exported to over 50 countries, including USA, Canada, Europe, Japan and the Middle East. They have integrated the 4 P’s that is, Product, Place, Price and Promotion into their marketing strategy so soundly that it virtually ensures that this age old company will continue to reign over the fabric sector for years to come. This case study explores not just Raymond’s association with the 4 P’s of marketing but contrasts it with the strategies implemented by its biggest competitors. A 100% subsidiary of Raymond Ltd., Raymond Apparel Ltd. (RAL) ranks amongst India's largest and most respected apparel companies. Their brands include Raymond Finely Crafted Garments, Manzoni, Park Avenue, ColorPlus, Parx, Be: and Zapp! and Notting Hill. Raymond is one of India’s leading fabric and garment manufacturers. In 2006/07 alone its textile and clothing operations—including wholly owned subsidiaries and joint ventures—generated sales of Rs11.1 billion (US$283 million). From its origins and core strengths in worsted suiting fabrics, the company diversified into the production of denim fabrics, cotton shirtings and garments. It also built up a presence in retailing and it claims to be India’s largest fabric and garment retailer.

History of the Company
Years ago, the Singhania family was building, consolidating and expanding its various businesses in Kanpur. Mr. Wadia was, in a similar manner, setting up a small woollen mill in the area around Thane creek, 40 kms away from Bombay. The Sassoons, a wellknown industrialist family of Bombay, soon acquired this mill and renamed it as The Raymond Woollen Mills. Around the same time, the Singhanias aimed to broaden their business horizons. The family's sharp business foresight led to the acquisition of The Raymond Woollen Mills. When the grandson of Lala Juggilal, Lala Kailashpat Singhania took over Raymond in 1944, the mill primarily made cheap and coarse woollen blankets, and modest quantities of low priced woollen Fabrics The vision and foresight of Mr. Kailashpat Singhania greatly helped in establishing the J.K. Group's presence in the western region. Under his able stewardship, Raymond embarked upon a gradual phase of technological upgradation and modernization; producing woolen Fabrics of a far superior quality. Under Mr. Gopalakrishna Singhania,

the mill became a world-class factory and the Raymond brand became synonymous with fine quality woollen Fabrics When Dr. Vijaypat Singhania took over the reins of the company in 1980, he injected fresh vigour into Raymond, transforming it into a modern, industrial conglomerate. His son Mr. Gautam Hari Singhania, the present chairman and managing director has been instrumental in restructuring the group. With the divestment of its non-core businesses, the group has emerged stronger, with a more focused approach.

Latest Developments
Since 2001 Raymond had been expanding aggressively through divestment, collaborations and joint ventures with foreign firms, as well as capacity expansions. In 2001 it acquired Regency Texteis Portuguesa—a plant in northern Portugal which manufactures suits, jackets and trousers for the European market—and in 2002 it bought ColorPlus Fashions. Since then it has set up four joint ventures, namely Raymond Zambaiti, Raymond Fedora, Raymond UCO Denim and Gas Apparel. It has also established three wholly-owned clothing manufacturing subsidiaries: Silver Spark Apparel, Everblue Apparel and Celebrations Apparel. In addition, it has added approximately 25 mn metres of annual fabric capacity to its existing plants. Raymond has also become vertically integrated by constructing state-of-the art facilities for its garment manufacturing companies as well as design studios established through joint ventures and retail operations. Raymond sees retail expansion as an important way to penetrate the market and increase sales even further. The company has over 400 retail and brand stores across 170 cities in India and the Middle East. Recently, it opened its 350th The Raymond Shop in India, and plans to increase this number to 950 by 2010. It also has exclusive standalone stores which stock its brands—including Manzoni, Park Avenue, ColorPlus, Parx, Be and Zapp! These stores are on the increase as the company broadens its product portfolio.

Raymond’s Association with the 4 P’s
1. Product
Raymond has under it different brands of shirts and suitings: Raymond Finely Crafted Garments, Manzoni, Park Avenue, ColorPlus, Parx, Be: and Zapp! and Notting Hill. Raymond is counted as one of the world's premier manufacturers of worsted suiting fabric in fine grade wool; in the same league as the finest that Europe has to offer. The Raymond product range includes pure wools, wool blended with exotic fibres like camel hair, cashmere and angora and innovative blends of wool with polyester, linen and silk. Raymond offers suiting and trousering fabric for all occasions and needs

Manzoni Formal Wear Manzoni formal shirts are available in regular 2 fold 100s, 2 fold 120s upto 2 fold 200s with fine structures such as dobby, herring-bone, diamond structures, stripes and checks, and solids such as white, purple, pink, blue, etc. Collars range from regular, semi cutaway and spread collars to two button collar bands. The buttons on Manzoni shirts are made of the finest natural mother of pearl. Formal suits are made of super fine wool ranging from super 120s to super 150s. These suits have an Italian silhouette with superb construction and excellent drape. Jackets are offered in contemporary styles of single-breasted 2-button and single breasted 3-button with high notch lapels. Formal trousers have a clean look and are well constructed with a lining that provides total comfort to the waistband. Intricate features include French fly, blind stitched loops, rounded belt extensions & ‘D’ bartags at the back pockets for additional strength to the garment. Sports wear has a wide and varied range of 100% linen and washed shirts in vibrant colours available in half sleeves. Colourful checks, vibrant stripes and bright solids in fashion colours like fuchsia, orange, aqua, blue, green and peach complete the casual Italian look. Trousers are available in 100% cotton and linen in regular flat front styles, washed for a soft hand feel. Apart from the basic black, navy blue to off-whites, these trousers are also available in fashion colours like Orange, Magenta and Red. Adding to the premium casual look are 5-pocket ‘jeans-style’ trousers in 100% linen and ‘drawstring trouser’ in 100% linen. Manzoni’s Bona Sera evening line consists of washed 100% silk jacquard shirts in colours like orange, red, blue, purple apart from the classic neutral shades. Manzoni also has a line of accessories that include fine leather bags, shoes, belts, silk ties and cotton socks. Be: Be: offers a wide range of apparel and accessories for women across categories namely Women’s Western wear, Women’s Ethnic wear, Lounge Wear and Club wear. Be: brings a large collection of designer products to a large audience that is increasingly becoming aware of designer wear and dreams of possessing one. Affordability, Accessibility and Acceptability are the three attributes that characterize Be: Zapp!

Zapp! provides an exciting range of apparel, accessories and lifestyle products for kids between the age group of 4 to 14 years. Baby Zapp! consolidates the offering as a specialized category targeted at the 0 to 3 infant segment with great care on safety and comfort. This specially crafted range includes a miniature fashion line, utility apparel and accessories and a home line. Parx Parx is a premium casual lifestyle brand which is positioned to cater to the needs of consumers of 22-30 year olds. It has categories like Urban, Sport, Excursion and Club. ColorPlus ColorPlus is one of India's leading casual wear brands. It offers shirts, trousers, knits, survival gear and accessories that meet international quality standards. ColorPlus Woman has been fashioned into an assortment of shirts, trousers, dresses, capris, t-shirts, skirts, jackets and denim jeans. The newly launched brand offers five lines of clothing including Day Wear, Sporty Casual Wear, Outdoor Wear, Business Casual Wear and the Evening Wear. Each line sports distinct styles and fits offered in an array of exquisite garments to make a woman feel great all day long. The fabrics used for the construction of this exclusive range include linen, 100% cotton, cotton-blends, printed silks, satin and georgettes. All the collections are complemented by a matching range of accessories like genuine leather hand bags, hand braided belts, shoes & scarves. Notting Hill Notting Hill reflects style and manifests originality of today's fashion-conscious and discerning young professionals at an affordable price. Notting Hill was launched in 2007 to cater to the popular price segment. Designed inhouse, the brand collection features a spectrum of men's lifestyle products comprising of suits, shirts, trousers, jeans, t-shirts and also accessories like ties, handkerchiefs and socks.

2. Place
Raymond reaches its customers through The Raymond Shop and through exclusive outlets. The Raymond Shop is a premium retail store offering complete wardrobe solutions for men which includes top-of-the-line brands - Raymond, Raymond Finely Crafted Garments, Manzoni, Park Avenue, ColorPlus, Parx and Notting Hill.

The Raymond Shop network started with a small corner shop in Ballard Estate, Mumbai around five decades ago. It has grown multifold with a dedicated team making it the largest retail store in the country having 548 stores in prime locations, in over 196 cities in India. The Raymond shops are located in different countries • Bahrain • Bangladesh • Kuwait • Saudi Arabia • Sri Lanka • Sultanate Of Oman • U.A.E. In India Raymond shops are located at In southern part: Andaman and Nicobar Islands • Andhra Pradesh • Karnataka • Kerala • Pondicherry • Tamil Nadu In northern part: • Chandigarh • Delhi • Haryana • Himachal Pradesh • Jammu and Kashmir • Punjab • Rajasthan • Sikkim • Uttar Pradesh • Uttaranchal In western part: • Chhattisgarh • Goa • Gujarat • Madhya Pradesh • Maharashtra In eastern part:

• Assam • Bihar • Jharkhand • Meghalaya • Orissa • Tripura • West Bengal Their overseas network spans 36 stores in 15 plus cities across the Middle East, Saudi Arabia, Sri Lanka and Bangladesh. Be: from Raymond Ltd. is a 13 store chain. It has a pan India presence with a store each in Ahmedabad, Ludhiana, Hyderabad, Chennai, Kolkata, two each in Bangalore, Mumbai and three in Delhi. Zapp! retails through 20 exclusive stores, is available across Shoppers Stop, Lifestyle, Pantaloon and Central and the top 120 multibrand kidswear stores in the country. The Zapp! stores offer both fun while shopping and the best product available in terms of choice, design and quality. With changing rooms designed as igloos, and others suspended over glass floors with pebbles, the stores allow the child to conjure up an adventure. With his own Zapp! membership card, the child is made to feel the like the special customer that he is. Parx retails through 19 exclusive stores. ColorPlus is present in over 180 locations in the South and West Asia through exclusive stores and select 'The Raymond Shop' outlets. Notting Hill is retailed across India in a phased manner beginning with Pune and other cities in Maharashtra. By the end of the first year Notting Hill was to be made available across India with over 400 distribution points.

3. Promotion
Raymond indulges heavily in promoting its brands. Like most companies it relies heavily on print and TV advertisements for this purpose. It has full length advertisements featured on the television. Of these the most popular ones are those where the lead character is playing with puppies while still in his suit, the ad featuring the relationship between a father and a son-in-law, between a father and a daughter, father and son and one showing that between the teacher and his students. Raymond’s advertisements, thus, always try to show the sensitive, more refined side of a man and it is followed by their tagline with the distinctive melody Raymond… The Complete Man

Although Raymond also has apparels for women, women are seldom the lead characters of its advertisements, both printed and on TV. Raymond’s Manzoni organizes Style Icon Awards of the Year. It makes regular press releases. The latest one of these was on October 22, 2009 announcing its financial results. Before that it received coverage when it announced investment of Rs. 100cr in opening 300 new retail stores and aiming for Rs. 200cr in revenue. Although Raymond sells only through The Raymond Shop and exclusive outlets, it has made itself visible online through its exhaustive website www.raymondindia.com Raymond doesn’t believe price reductions alone can draw more people to its stores or boost sales. To enter small cities such as Gandhidham, Nadiad and Himmatnagar in Gujarat and smaller markets in other states, Raymond banks on franchisees for its Park Avenue formal menswear and Parx casual wear, in addition to price cuts. In recent times, its sales took a real hit due to the slowdown and it decided to boost sales by exploring its brands, enhancing its portfolio by adding new items and accessories than just tweaking prices like Madura Garments did.

Madura Garments
Raymond’s biggest competitor in apparels is Madura Garments. Madura Garments, a division of Aditya Birla Nuvo is India's leading apparel retail company. It enjoys market leadership in the branded garments business through its power and popular lifestyle brands — Louis Philippe, Van Heusen, Allen Solly and Peter England. The company has won many coveted awards in the fashion world like the “Best Retailer of the Year, Best Apparel Company of the Year, Best Trouser Brand of the Year, Best Smart Casual Brand of the Year” etc., at well known forays such as the Reid and Taylor Awards and Images Fashion Awards. Their thrust is on brand building through development of innovative new merchandise, exciting communication campaigns and enhancing the product portfolio. The overall marketing strategy has been to move from a “Wardrobe" brand to a "Lifestyle" brand

Madura’s Association with the 4 P’s
1. Product
Louis Philippe

It was the first genuinely international garment label introduced in the Indian market in 1989. The brand brings crafted range of silks, trousers, blazers, ties and T-shirts that makes an exclusive fashion statement recognized by its distinctive icon The Upper Crest. The brand creates an image of stylish, confident, spirited, cool ensemble with hidden details, slimmer cuts. Lp — the youth brand from Louis Philippe, has introduced new fashion formals range for today’s young and successful urbanites. The range exudes élan, style and success which personifies today’s youth. Van Heusen Van Heusen, is a work-wear brand, brought to India in 1990. It has given corporate attire altogether a new look and meaning through continuous product innovation and exclusive collections such as Autumn Winter, Ken & Tony, Worldwear, Informals, IQ Clothing, winter wear, knits, innerwear and accessories. Cool Pants, designed using breakthrough technology adopted by NASA, or the Oxyrich shirts with oxygen ions to neutralize high stress levels in the intelligent clothing (IQ) range, are a few examples of the tradition of innovation that began with the invention of the collar in 1919. Worldwear is Van Heusen's extension of the best-selling range of corporate wear for the global Indian. Men Spring summer Worldwear Accessories Innerwear Knits Women Relaxed casual wear Premium formal wear Refined social wear Flamboyant clubwear and accessories Allen Solly Allen Solly has established itself as the leading western wear brand redefining the wardrobe of the modern Indian. It has popularized the Friday dressing concept in India. With the launch of its women's wear range in December 2001, Allen Solly has made a successful foray into the growing women's work and casual wear market. The brand has won the most admired brand - Womenswear IFA 2004, 2005, 2007; most admired brand trousers IFA 2005; most admired brand - smart casuals IFA 2006. It has also won the IFA Images 2001 best brand award in the readymade menswear category. Workwear, evening wear & casual day wear. Men

Sports, casual, urban, prodigy Women Casual, city career Peter England It portfolio includes shirts, trousers, denim, suits, ties, wallets, socks. It strictly deals with men’s apparel.

2. Place
Madura Garments has exclusive showroom space which includes several large format brand outlets of world-class standards, providing top quality retail experience to the consumers. It also has a highly visible presence in large department and multi brand stores. Planet Fashion Planet Fashion is the apparel retailing arm of Madura Garments, Aditya Birla Nuvo Ltd. It houses not only their leading (in-house) menswear brands like Louis Philippe, Van Heusen, Allen Solly and Peter England, but also Levi's denim, Monte Carlo knitwear and most recently, Jocky innerwear in selected stores. It aims to be the complete wardrobe solution for a man - a one-stop destination for all his apparel needs. Its product portfolio ranges from corporate formal wear to casual leisure wear, accessories, t-shirts, winterwear and lately, denims and innerwear. To bolster its presence significantly in the exploding apparel retail sector, the company has started retailing its life style brand and affordable popular brands through two new formats – Madura Garments Lifestyle Retail Company Limited and Peter England Fashions and Retail Limited. Current number of stores: 82 in India, 5 international Cities: Across 50 cities in India, ranging from high streets like Connaught Place and South Extension to smaller towns like Bareilly, Karnal and Dehradun. International presence in Dubai (2), Sharjah, Qatar and Kathmandu

3. Promotion
Like its competitor, Madura too relies very heavily on advertisements, both print and Television. However Madura brands have been known to offer more sale opportunities to consumers. Similarly they have more print advertisements than TV advertisements. Their

advertisements usually feature foreign men and women, indicating that they are a universal and more international brand catering to both sexes. Louis Phillipe goes by the tagline: The Upper Crest indicating that it is a premium product meant for those with a refined taste in apparels. Allen Solly goes by the popular tagline My world My way and recently has adopted I Hate Ugly as its catchphrase. It indicates a strong sense of sense and speaks of lifestyle choices especially adventurous and fashion conscious. Besides having a highly organized retailing and web presence, other more regular promotion schemes employed by Madura is continuous improvement in its products and services, concept of multi brand outlets, fashion accessories, satisfying consumers of multiple wardrobe under one brand and customer loyalty program where Privilege Cards are issued to regular and frequent buyers. By focusing on quality while having competitive prices and a very strong distribution network, Madura has not only been able to capture a good market share, but it also wins awards for its innovations and quality. Such awards no doubt further boost its popularity and perception of reliability in eyes of the consumer.

Sign up to vote on this title
UsefulNot useful

Master Your Semester with Scribd & The New York Times

Special offer for students: Only $4.99/month.

Master Your Semester with a Special Offer from Scribd & The New York Times

Cancel anytime.