Marketing Management-2

Batch: - 5

Subject: - Arvind Mills final report

Faculty: - Prof. Shriram Kadia

NAME ROLL NO. PROGRAMME

Aayushi Patel AU 1713060 iMBA
Shrenu Patel AU 1713081 iMBA
Masumi Shah AU 1713056 iMBA
Megha Shah AU 1713012 iMBA
Pushti Gandhi AU 1713053 iMBA
Rahul Patel AU 1713048 iMBA
Bhavesh Rathi AU 1711241 BBA
Priyansh Chanchani AU 1711112 BBA
Kavit Parekh AU 1711058 BBA

2. Acknowledgement
We would sincerely like to express our special thanks of gratitude to our faculty Mr.Shriram
Kadia who gave me us the golden opportunity to do this project on the Arvind Mills (Clothing
Material) for Marketing Management-2 which also helped us in doing a lot of Research and we
came to know about so many new things we are really thankful to them. We would like to thank
our professor for guiding us through the project and providing us support. A big thanks to The
Management Club of Ahmedabad University for the Opportunity they gave us to go on a
Industrial Visit to Arvind Mills, Santej. Through this project we came to know more about
Arvind Mills and about the market out there. We are grateful to our professor and Mr. Vishal
Chocha for providing this wonderful opportunity to us.

3. Table of Contents
1. Introduction Page No.

 Industry Background

 History of the Company

 Vision & Mission of the Company

2. Concepts of Marketing Management

 Needs, wants and demands

 Target Market, Positioning and Segmentation

 Value Proposition

 Offerings / Brands

3. Concepts of Marketing Management

 Needs, wants and demands

 Target Market, Positioning and Segmentation

 Value Proposition

 Offerings / Brands

4. Marketing Environment Scanning

 Analyzing the Macro Environment

 PESTLE Analysis
5. Dynamics of Competition
 Identifying the competitors

 Analyzing the competitors

 Stage of PLC
6. Managing the 4P’s
 Setting Product strategy
 Pricing Strategy
 Channel Strategy
 Communication Strategy
7. Conclusion and Recommendations
4. Introduction

 Industry Background
The primary plant in Ahmedabad started working in 1861. A starb was in this way given to
another mechanical life in the city. Because of colossal troubles in getting hardware and in its
erection, the advancement in setting up plants was fairly 3low in the underlying years. Amid the
following twenty years as it were three new factories were begun in Ahmedabad. By the turn of
the century, be that as it may, there were at that point around 80 turning and weaving plants in
Bombay Administration with an aggregate of 25,00,000 axles and 25,000 weaving machines.
There were 29 processes in and around Ahmedabad with an aggregate of 4, 58,000 shafts also,
8,700 weaving machines. The most punctual material processing plants were turning factories.
Yarn delivered in these factories was woven into texture and given completes somewhere else,
for the most part in Britain, before returning the nation for utilization. As assembling rights were
changed for Indian endeavors, the vertical coordination underway pursued. Turning, weaving
and handling/completing slowly came to be attempted in “composite plants”. For an assortment
of authentic reasons the centralization of composite factories stayed in Western India, The errand
of the assembling of fabric and apparel is dispersed into a few sub-segments relying upon the
idea of crude material utilized, the nature of proprietorship, the nature of innovation utilized, and
the scope of generation process action embraced.

The material business in the nation confronted numerous antagonistic components from time to
time. In the beginning of industrialisation, it was exceptionally hard to pull in outside capital and
every day running costs had regularly to be financed from paid up capital. Besides, numerous
other social, political, furthermore, financial components influenced the development of the
business, firlkarni (1979' has portrayed in detail the hindrances which the material business
needed to face amid its initial days. Around of the nation's all out generation of material
originates from the composite plant sub-area (now and then additionally alluded to as the plant
division).
  History of the Company

The Beginning 1897

During the early 1897 there was no manufacturing activity happening in India, therefore Mr.
Lalbhai Dalpatbhai thought of setting setting up his first mill which he named Saraspur
Manufacturing Company.

The Spirit of Swadeshi 1931

In response to Mahatma Gandhi’s call for Swadeshi during the struggle for Indian Independence,
the Lalbhai family founded Arvind Mills, creating a capacity to compete with the world’s finest
textile mills.

Swadeshi Goes Global 1935

Arvind's butta voiles were being exported to Switzerland and United Kingdom (UK), thereby
realizing the full potential of the spirit behind Swadeshi.

Textiles to dye for 1952

After two decades of success in the textile industry, Arvind set up India’s first dye and chemical
plant, under the aegis of Atul Products Ltd, in order to reduce the nation’s dependence on
imported dyes, and chemicals.

Innovating the future 1973

The Narottam Lalbhai Research Centre was established, to further the Company’s technical
capabilities. The Centre was home to many path-breaking innovations in the years following its
establishment.
Denim Takes Wings 1980

Flying Machine, India’s first denim apparel brand was launched to meet the aspirations of the
emerging youth segment.

Innovating the Future 1985

Renovision, a new strategic plan for the company was introduced in the year 1985. It was done
to put Arvind and India on the global map of denim manufacturing. Just as India, a protected
economy, was opening up to the world, Arvind had firmly shifted its focus on both domestic and
international markets.

India’s first Denim Manufacturers 1986

India's and Arvind’s first denim manufacturing unit was commissioned at Naroda Road,
Ahmedabad. Arvind was soon to emerge as a global leader in denim production. By the end of
1987, Arvind also started manufacturing high-value cotton shirting.

Global Brands come knocking 1993

Through tie-ups with V.F. Corporation (USA) and Cluett Peabody & Co. USA, for
manufacturing and marketing, Arvind was able to offer high quality global apparel brands like
Lee Jeans and Arrow Shirts to the Indian market.

CSR Focus of Arvind in the year 1995 and Development through a unique partnership
1996

To formalize its Corporate Social Responsibility (CSR) efforts, Arvind launched the ‘Strategic
Help Alliance for Relief to Distressed Areas’ (SHARDA) Trust. As a part of its CSR efforts, a
unique Private-People-Public partnership was launched with SHARDA Trust, the Ahmedabad
Municipal Corporation and residents of the Sanjay Nagar slum coming together to transform this
into a model of urban planning and low-cost housing.
Modern Manufacture Envisioned 1996

The foundation was laid for one of India’s most modern textile manufacturing units at Santej,
near Ahmedabad. Spread over 450 acres and an investment over Rs. 1,000 crores, the plant was
designed to produce high-value cotton shirting, bottoms and knitted fabric for international
markets.

The world class santej facility gets commissioned 1998

Santej shirting facility, with a capacity of 34 million metres, was commissioned this year. Over
the next 20 years, Santej became globally recognized as the benchmark for sustainable practices
in the textile industry.

The New Arvind 2008

To accurately reflect the multi-faceted nature of the organization, the name of the Company was
changed to Arvind Ltd. from Arvind Mills Ltd.

Farm to Retail 2010

The Arvind Store was set up to house the best brands of Arvind under one roof. The store offers
not only the entire range of the Company’s fabrics and apparel but also the services of Studio
Arvind, the bespoke tailoring unit. There are currently over 180 Arvind Stores across India.

Expanding the International Brand basket 2011

Beginning 2011, Arvind has brought in some of the biggest global fashion brands like Calvin
Klein, Tommy Hilfiger, Gap, Ed Hardy, Hanes, Nautica and Elle to India.

Better Cotton now in India 2011

First Better Cotton Initiative (BCI) bale produced from India, from the Arvind farm project in
Akola. BCI seeks to grow cotton responsibly by controlled application of water & use of
approved fertilizers; thereby dramatically reducing the footprint of cotton farming. Arvind is one
of the largest implementation partners of BCI in India.

Global Patent 2014

Arvind scored a major win. Arvind Envisol, a subsidiary of the Company, which provides waste
water treatment solutions, got a global patent for its Polymeric Film Evaporation Technology
(PFET). This revolutionary technology saves 80% energy cost for Envisol’s Zero Liquid
Discharge water treatment system.

Creyate because everyone is original 2014

A brand created to fulfil everyone’s individualities. Creyate offers fine, bespoke menswear with
a degree of customisation never seen before.

Streching Denim in new area 2015

Arvind partnered with USA-headquartered Invista, the owner of the Lycra fibre brand, to
manufacture stretch denim fabric in India.

Khadi gets reimagined 2015

With the birth of Khadi Denim, the legacy of Swadeshi, which had inspired the founding of
Arvind, came full circle. Each single yard of Khadi Denim is spun, dyed and woven by artisans
carrying on centuries-old handloom traditions. It is perhaps the most sustainable denim fabric
ever made: no chemicals, no electricity, no high technology, no use of depletable resources.

Clothing goes Smart 2015

With the birth of Khadi Denim, the legacy of Swadeshi, which had inspired the founding of
Arvind, came full circle. Each single yard of Khadi Denim is spun, dyed and woven by artisans
carrying on centuries-old handloom traditions. It is perhaps the most sustainable denim fabric
ever made: no chemicals, no electricity, no high technology, no use of depletable resources.
Innovation of Asmita 2015
Arvind launched Project Asmita to provide for sanitation needs in rural areas. It brought together
highly skilled professionals and technicians and tasked them with the challenge of coming up
with strategies to raise the standard of sanitation practices in rural India. The result was a low-
cost toilet that is a fusion of innovative modern and traditional materials that could be readied
and installed in just a day.

Sachinn…..Sachinnn!! 2016

Arvind Fashion Brands tied up with Sachin Tendulkar to launch True Blue. Sachin personally
spent time with the design team to create a menswear label that embodied the spirit of the global
Indian, a 21st-century traditionalist equally at home in New Delhi and New York.

E- shopping 2016

Arvind launched Nnnow.com, a one-stop shopping destination for trendsetters across the country

Made in Arvind 2017

Building on an 86 year legacy of craftsmanship, innovation and fashion leadership, Arvind
launches its own Ready-To-Wear brand.

The Restructuring Announcement 2017

In November 2017, Arvind Ltd announces the proposed demerger and public listing of its
branded apparel (Arvind Fashions) and Engineering (Anup Engineering) businesses.

 Vision & Mission of the Company

Vision - The vision of Arvind mills is to achieve global dominance in business built around their
core competencies through continuous product and technical innovation, customer orientation
and a focus on cost effectiveness.
Mission - The mission of Arvind mills is to provide clothing for the family, from every walk and
stage of life, for every occasion with a wide variety and excellent quality of fabrics and
garments.
5. Concepts of Marketing Management

 Needs, wants and demands

 Target Market, Positioning and Segmentation

 Value Proposition

 Offerings / Brands
6. Marketing Environment Scanning

 Analyzing the Macro Environment

Arvind powers the most iconic brands across USA, UK and Asia. Every year Arvind Produces
100 million meters of Fabric and 6 million pairs of jeans. Arvind Denim Lab is an inimitable
capability of its kind in Asia, which enables brand design teams to influence all of their
infrastructure and capabilities under one roof, to co-create their flagship products and finishes.
Further, their collaboration with Denim City, Amsterdam gives their customers access to the new
improvements in the world of Denim. Arvind is among the top exporters of Denim around the
world.

They have many global brands that they have licensed in India, a few of them are, Nautica, Gap,
Hanes, Tommy Hilfiger, Calvin Klein and many more. Recently, Arvind got into a Joint Venture
with The Batting Great Sachin Tendulkar’s Brand True Blue to sell formal apparels in the Global
Market. “Whenever I travel, I am not surprised to see made in India tag in clothes. So why not an
Indian brand in those markets?” Sachin said in an interview. True Blue is likely to foray into
women’s wear segment as well. J Suresh, CEO of Arvind Brands & Lifestyle has told that
the brand could be expanded to women’s wear, India- inspired stationary and accessories as well.
The brand managers have not stated that when they will start on this. True Blue will be the first
of the Arvind group brands, Flying Machine, Excalibur and Ruggers to enter the global market.
They will be targeting the Global Markets where people love to wear traditional Indian Wears.

In Ethiopia, Arvind Ltd. Also has a waste water treatment arm. This firm is known as Arvind
Envisol. All the waste water that is extracted from the dyeing, gets recycled in this plant. If the
water is remained untreated it causes harm to the environment. In order to not harm the
environment, they have set up this unit to recycle the waste water.

 PESTLE Analysis
(Political, Economic, Social, Technological, Legal, Environmental, Legal)
This analysis is usually known as the PEST analysis it the tool for the strategic competitive
planning of the organization. It the factors of microenvironment that have an impact on the
performance of the organization. The macro factors do not have direct control. And their impact
are for longer period. This PEST analysis is very helpful to every organization as it helps them
for strategic planning, for marketing, change in the organization even in the product development
and reports of research done by the organization.

PESTEL Analysis of Arvind Pvt Ltd as follows.

1. Political factors

Political factors generally includes how the government rules and policy have pressured as well
as opportunity for the business how this factor has direct or indirect influence in the working of
organization. Talking about the Arvind clothes as there are many political factors like they
import huge amount of stocks from other countries so there are certain standards set by the
government for imports of the goods and the tariffs of the import used to change with change in
the policy second is the high licence fees with affect the Arvind mills for importing different
products from the international market. Another factor was the Quota that has been restricted by
the government that there should be certain amount of quantity should be allowed to import.
Even the employment law comes under this force as there many laws this organization need to
follows such as “Minimum wage Act 1948, Payment of wages act 1936, Industrial disputes act
1947. Even there were many government restrictions on the power, freight, water, certain
chemical used in the production etc.

2. Economic factors

This factor includes the economic performance of the country the factors are inflation rate,
interest rate, economic growth, exchange rate, industrial growth, per capita income of the
consumer. This factor act as an important role in the output of the company as it tells what is the
purchasing power of the consumer, how the economy is growing which affects the buyer and the
supply of the product in the market. It also effect on the price of the product it tells what price to
be kept according to the economic factors. According to the textile it comprises 33% of Indian
export. India with 24 % of land is under cotton cultivation, Even India is one of the highest
productions of looms with 63% market share of world. As the GDP is quite stable in last 2 to 3
years which indicates to change in the purchasing power of the consumer so their taste and
preference would also changes as they got money to spent.

3. Social factors

Social factors are the factors which are the general dimension of the general environment which
used to represent the demographic characteristic, norms, customs etc. this also includes the
population growth that is age distribution, career attitudes, health consciousness, lifestyle and
cultural barrier even which brand product is more demanded in the market. This factor is very
important to the organization as tells them were they need to target their customer. It also attract
the people to work with the organization. This factor related with the Arvind mills as India is the
2 nd in the population with more number of youth so there would be more demand for the
western outfit which will increase in the consumption of denims and casual shirts as Arvind is
known for its denims production and even there many foreign brands under the Arvind store for
the western outfits. Even social status has also played major role in this clothes market.

4. Technological Factors

This factor is relating to the new innovation with the usage of the technology. How the
technology has changed the working of organization, which includes research and development
centre, automation of work in the industry and awareness of the technology etc. This all factor is
very important as this gives them the opportunity to enter in the market or not if they have
capability to enter in the market with certain amount of technology and also huge amount of
capital. As new technologies are created every year and some of them are upgrading. So every
firm has to be very much concern for their technological factors. Coming to the Arvind mills, the
technology factor has played major role as the process of spinning was fully controlled by the
automatic machine, second is they have changed their old machinery to new for the better quality
of clothes with less inputs of labour and emits less wastage. Even they have installed
international machine which is very costly but it has improved thedying of the clothes even it
reduces the cost of productions.

5. Environment and Legal factors.

Last ten year the sustainable development and some environmental factors are creating some
effects on the working of the organization. As they have to keep some standards for usage of
certain resources in the industry for pollution it affects to the environment. Emission of carbon
from the factory which tends to change the climate and affect the atmosphere, spoilage of water
by emitting waste on it. This all are the certain factors which organization need to take care off
as per the Arvind they were making their products according to the environmental standards
rather on traditions or current fashions .Even they are looking forward on the renewable
resources on their industry. Legal factor are the factors which includes the patent laws
discrimination laws certain safety law, even intellectual property rights etc. Arvind has special
legal department were this all are practice they have right to safety and health norms in their
organization even they are paying for the patent and they have sustain working condition in their
organization for their employment law.
7. Dynamics of Competition

 Identifying the competitors

Arvind LTD. Is one of the leading players in the textile sector in india. Looking at the number of
Arvind Mega mart stores, there is a scope for expansion in India and as well as in international
market. Company has considerable increased the use of technology in the manufacturing plants
thereby helping company to increase its productivity. Export of the company will increase in
near future as the competition from other country like china has decreased due to weak currency
and decreasing cost competitiveness of the country.

The main competitors in India for the Arvind mills are as mentioned below.

1. Raymond limited
2. Bombay dyeing
3. Siyaram silk
4. KG Denim
5. R&D Denims
  Analyzing the competitors
Analysis of Raymond, Bombay, Siyaram with Arvind LTD.

By seeing the analysis we can say that Arvind ltd. has earn highest net profit during the year
2014-2015. Except Siyaram, three companies are founded in early 90’s, out of them Arvind ltd is
consistence player. Total assets of the Arvind ltd are also high. Company has undertaken a
business strategy which changed over the years and helped company to grow at a higher rate.

Competitors Profile
1. Raymond limited
 Raymond limited is mainly in three division namely textile, Engineering and Aviation
 In Textile sector, it is largest non-segregated manufacturer of worsted fabric, in the world

2. Bombay Dyeing
 It is the “front runner” company of Wadia group. This company is mainly into the
business of textile.
 The company not only manufactures clothes for the people but also helps customers in
furnishing their homes.
 3. Siyaram Silk Mills
 It is the subsidiary of Siyaram Poddar Group. Siyaram silk mills is also known as
Siyaram ’s or SSM.
 Today, Siyaram is the largest manufacture of blended Fabrics in india.
 Siyaram‘s has entered the Readymade Garment sector in the beginning of the year 2014.

 Stage of PLC

8. Managing the 4P’s

 Setting Product Strategy

Setting product strategy refers to the foundation of a product life cycle and execution of plan for
further development. To set product strategy market research can become one of the way by
finding out what is current, what the future holds through target marketing. This is done to
achieve high level business objectives. This includes vision and mission of the company.

Arvind mills are one of the most famous apparel brands in India offering jeans and other denim
products. Arvind mills have wide product offerings as part of the product strategy. Its product
includes denim, woven knits, woven voile, shirting and khakis. Arvind mills are a mixture of
Indian as well as international brands and hence it has variety of products. It is one of the largest
denim producers of India and it also has worldwide sales of its products. To maintain its product
quality the company consistently invests in technology used for producing its products.
 1. Pricing Strategy -
Pricing strategy refers to the methods company use to price their products or services. Almost all
the companies now price their products on the basis of production, labour and advertising
expenses and then add some percentage of margins so as to earn profits. Arvind mills provide
high quality products but it also keeps its products affordable and competitive. Some of its
products are slightly highly priced as compared to other brands. But products from Arvind mills
are priced lesser than other global premium brands offering similar products like denims and
jeans.

The pricing strategy in its marketing mix focuses on offering competitive rates and competitors.
This can be attributed to the fact that it has association with multiple international brands,
thereby incurring additional cost, but then also many of the products are sold at reasonable rates
by the Arvind mills.

2. Communication and Channel Strategy -

Without customers, a product or service cannot exist for long. A marketing strategy helps a
business to reach its targeted audience. It allows the business to effectively communicate to the
prospective consumer. It is a way to announce and inform the public of a product or service and
shoe consumers how they will benefit from what you are selling and channel strategy will help in
doing so because it refers to the company’s plan of moving its product or services through the
chain of commerce to its potential customers. Channel strategy means to promote the product of
the company which compel the customers to buy the product.

Arvind mills use all types of media channels to promote itself as well as its brand. The company
has used media channels like TV ads, print ads, online ads and many more. The clothing apparel
brand promotes itself through hoardings at important location in prominent cities. Arvind mills
promoted itself with famous celebrity brand ambassadors for its sub brands Ruf-n-Tuf, NewPort
and FlyingMachine respectively. The brand has also organized fashion events to promote its
products. It is also involved in a lot of CSR activities.
9. Conclusion and Recommendations
Refrences

1. PESTEL / PEST Analysis of Arvind. (n.d.). Retrieved April 3, 2019, from

http://blueoceanuniversity.com/frontpage/pestelcoanalysis/11046-arvind
2. http://arvind.com/arvind-story