Marketing for Entrepreneurs

EXECUTIVE SUMMARY
The following document will have an overview of
Newrobe’s business module, market structure,
marketing strategy, sustainability and brand
positioning. Newrobe is a company to provide people
with clothes on rental for everyday basis, i.e., day to
day fashion. The companies aim is to fulfil a dream
of many to wear new clothes every day from top
brands and latest trends. 365 days 365 new clothes.
Newrobe is also about breaking through the market’s
and consumer’s perspective of buying cloths and
changing it to renting cloths in order to save wastage
of resources. It is also about pricing the rental in such
a way that the consumer can wear 20 different cloths
at the price of one. Newrobe will provide 4 different
services that caters to different needs of the
consumer. It will reach to customers mainly through
digital advertisement and will attract them by
explaining how they can fulfil their dream of wearing
new cloths every day at relatively low prices.
Newrobe will majorly target the lifeline of the
country ,i.e., the youth.
 SITUATION ANALYSIS
• Consumer
India as a country has large amount of youngsters who
have high aspirations, bigger dreams and who love a fast
moving and a practical life. In today’s world many start-
ups have made their success by understanding the need,
trend, and ideologies of these youngsters. Another reason
for the success of many start-ups is that they make the
consumer’s job easy and effortless. But still in clothing
industry the consumers have to spend a large amount of
their resources in deciding what to wear and from where to
buy and how much to spend on it. Many youngsters dream
to wear new and designer cloths on daily basis but not all
of them have sufficient resources to fulfil such a dream.
Especially the working class salaried people always have
to decide how to use their limited resources in a manner in
which they can fulfil all their possible aspirations. The
other problem that this youngsters and working class
people face is of maintaining the cloths that they buy, i.e.,
washing and ironing the cloths. Newrobe can be a solution
for al those people who don’t want to spend their valuable
resources in these petty processes. So Newrobe’s target
market are those people who don’t want to spend their
money and time in the process of selecting, buying and
maintaining their cloth. Usually such people are
youngsters and working class salaried people.
 • Competitors
Clothing market is one of the biggest consumer
centric and volatile in the world. Clothing
being the necessity for all has many players in the
market and thus these players act as direct/indirect
competition for Newrobe. For instance a company
like Ohlook that deals in the same market, targets
the same category consumers but just works in the
different locality becomes a prospective direct
competitor for Newrobe and companies like
Amazon, Flipkart, Myntra which operates in e-
commerce become our indirect competitors. The
other indirect competitor for Newrobe are the
brick and mortal stores that have a small but still
a significant impact on Newrobe. The basic
differences between Newrobe and its competitors
are:

Point of Difference
Brick and mortal
E-commerce
Newrobe
Time required
Maximum
Comparatively less
Minimum
Money spent
Maximum
Comparatively less
 Minimum
Physical Presence of consumer
Required
Not required
Not required
Suggestion by Stylist
Partially Given
Not given
Given
Business Model
Selling of cloths
Selling of cloths
Renting of cloths
Maintenance of cloths by consumer
High
High
Low

• Company
Newrobe is a company to provide people with clothes on
rental for everyday basis,i.e.,day to day fashion. The
companies aim is to fulfil a dream of many to wear new
clothes every day from top brands and latest trends. 365
days 365 new clothes.
 Porters Five forces
• Competitor rivalry
Newrobe has many direct and indirect competitors such as
Amazon, Flipkart, Myntra, Ohlook etc. Newrobe is just an
e-commerce website like many others but the main
difference between those sites and Newrobe is that one can
just look at thousands of products on those sites but at
Newrobe one can wear those products and parade around.
The other difference between Newrobe and the others is
that in today’s busy life people don’t want to waste their
time in shopping and managing their cloths which they
might have to do if they go to other e-commerce website.
But if they come to Newrobe they are spared from this
waste of time as they don’t have to do shopping of cloths,
washing them, ironing them or managing their wardrobe.
Other then these differences a significant difference
between our direct competitor Ohlook is that it functions in
a complete different locality than Newrobe. However,
Ohlook can enter Newrobe’s market or the visa versa can
happen in both cases the company which decides to enter
other company’s market will have to face many challenges
as there would be an established market of the first mover
of that locality. The solution to this is that one before
entering the market of the rivalry should set their foot deep
and strong in then market one exists. And along with this
should prepare well on the expected challenges, for
instance, if the rivalry company is expected to provide
better quality goods so to counter that Newrobe will try
and improve on the quality of goods they provide to their
customers. Other than that the Unique Selling Proposition
of Newrobe would be the ease of application usage that it
provides and the great stylists and the 3D model software
which suggests the consumers on what will be good for
them to wear as per their body type. And this could act as a
USP for Newrobe to maintain their customer’s confidence.

• Supplier Power
The market of fashionable products has always been very
volatile due change in fashion or change in consumers
tastes and preferences. The suppliers in such a market also
need to be adjusting to changes in order to cope up in the
market. Since, there are many suppliers available to a
buyer like Newrobe the changes in supplier demands or
prices in not possible frequently. However, Newrobe will
be dealing with quality suppliers only in order to provide
the consumer with greater comfort and satisfaction. The
only problem to Newrobe would be that until it establishes
a large market it can not have supply from huge brands due
to the legal issues that go with them. But that will not be a
problem in long run as those brands might see greater
advantages of providing Newrobe supplies to rent those
supplies out.

3.3 Buyer Power

In today’s world in many situation consumer is considered
king.
In the case of Newrobe many efforts would have to be
taken in order to make the consumer know the advantages
of getting the cloths on rent or from Newrobe. At that
initial stage the buyer power could be considered at peak
because of they getting attractive offers and many other
things as that. The time when Newrobe initiates there
would be no direct option available to the buyers in the
respective locality. It would be so because it has only one
direct competitor OHLOOK which operates in different
cities the Newrobe. So, the buyer power to switch between
competitors is only possible if it goes on with our indirect
competitors, i.e., the sellers of cloths and not the renters.
This switching will always be costlier and disadvantageous
for the buyer as no supplier would be able sell the quality
of clothes that Newrobe would give more in economical
manner than Newrobe.

3.4 Threat Of Substitution

Newrobe basically provides Branded daily wear cloths on
subscription the consumer can get cloths on rent through it.
The main substitute of this with consumers is that they
skip the option of renting and go on buying cloths for daily
use. There are many disadvantages to the consumer if they
substitute Newrobe, i.e., they will have to spend a large
part of their income on wearing repetitive cloths, other
than that they will have to waste time and money also on
maintaining those cloths. These disadvantages would stop
the consumers from trying on the substitutes in most
situations. Only a cheaper and easy substitution can attract
the consumers attention which in the present market
situation does not exist. So the chances of the consumers
turning on the substitutes in the case of Newrobe is
minimal.
3.5 Threat Of New Entry
Mostly each and every business face a threat from new
entrants or those who could copy the original idea and then
enjoy the second mover advantage. Same goes with
Newrobe since there would be no particular barriers for the
new entrants therefore a threat from new entrants might
always exist. Other than that to start a venture such as of
Newrobe no large funds are required so that even makes
the entry of new firms easier. However, these new entrants
will have to face the complication in getting things at the
prices Newrobe gets and other than that the new entrants
will have to break through the existing market of Newrobe
in order to make one for them which would be difficult for
any new entrant.

Context
PESTELE Analysis
Political:
Newrobe will work through the biggest buying and selling
platform, i.e., e-commerce. E-commerce is a sector which
has usually remained untouched by the government
regulations. That is the reason why at present Newrobe
does not really affects from political decisions. This will
remain the same until the government or a political party
decides to interfere with e-commerce operations. For an
instance, the government is planning to come forward with
a regulation to stop the dynamic pricing that many e-
commerce companies tend to have to exploit the consumer.
But such a regulation will not affect operations of
Newrobe because it doesn’t believe in dynamic
pricing.
Economical:
Indian economy has become the fastest growing economy
which portrays an overall increase in employment, per
capita income, business opportunities, consumer spending
and the purchasing power of the people in India. These
increments tend to affect the target market of Newrobe
positively as more and more people employed in the
economy tends to increase the ratio of people renting
formal wear from Newrobe. Other than that with the
growth in the economy and increase in consumer spending
people’s mindset on things related to lifestyle is also
expected to change from the traditional mindset of buying
some cloths and wearing them for a particular span to
renting many different cloths and wearing a new cloth
every day.
Social:
Social factors has always been about people’s belief or
attitudes towards things that they expect or want. Newrobe
is all about breaking the stereo type that daily wear cloths
need to be purchased by wasting the limited resources. It is
about breaking this belief as Newrobe will provide a
platform on which the consumers can easily rent out cloths
of daily wear. Other than that social factor is also about
age of people or which age group is being targeted.
Realising the business model of Newrobe the major target
age group should be between 18-35, i.e., the youth of the
country. It is so because of the easiness to get in the minds
of the youth and changing their mindset.
Technological:
The main base to an e-commerce company is technology.
A company working in the e-commerce segment if doesn’t
cope up with technological changes cannot run in the
competition successfully. The clothing segment has rarely
seen the use of artificial intelligence in its operations.
Newrobe plans to build its market by using the AI
technology to a great extent. It will use it by making a
visual body double of the consumer which could help us
and the consumers to have a clarity on what will look good
on them.
Ethical:
Every business firm is expected to have ethics and morals
in its every operation. A firm should always be assured of
delivering the promised in order to satisfy and build trust
in the society. Considering this Newrobe aims to always
deliver highly hygienic and well maintained cloths to the
consumers as it promises. Other than that it will always
have reasonable pricing considering no exploitation of the
consumer.

Legal:
Legal environment is a thing which everybody needs to
comply with. Newrobe will employ a special legal team
which will take care of all the legalities to be followed.
Other than that it will avoid exploitation of consumers and
other stakeholders of the company. It will always have
multiple checks of products delivered so that it can comply
with legal quality standards. It will always work on
changes in the legal environment.

Growth opportunity

Clothing rental is currently at its initial stage and it is here

to stay for some time, irrespective of what the old crowd
has to say. The young generation is smarter and
understands that if they get access to wear 240 branded
shirts or t-shirts would be more sensible than purchasing
10-12 shirts or t-shirts, which eventually get out of fashion
after 6 months. Clothing rental will soon lose its
‘Traditional Status’ in the country and will join the ‘For the
Smart Spenders’ club. Newrobe will be one of the factor
for this change in society Newrobe also aims to change the
way men do shopping, which has been done in same
traditional way from quiet sometime. India today has
youngest population in the world and has huge workforce
to contribute to the economy. In future corporate jobs such
as IT sector, management, sales managers will increase in
India. These young population won’t like to waste their
resources on buying and maintaining cloths such clothing
rental will get great boost in future. Currently big
opportunity is there in tier-1 cities in India such as
Mumbai, Pune, Bangalore, Delhi etc. where working
professional are more. Thus, Newrobe has great
opportunity in Future.

Target Market
Every man, who wants to wear new cloths every day and
want to look fashionable and who has limited time and
money are our targeted customer. However, in initial stage
we want to target young professionals in tier-I cities in
India aged between 20-28 years from mid-income group.
We have started creating our marketing campaigns and
plans targeting professionals, post which, we will target
other classes. In initial stage we will have operations in
Mumbai city where working professional are in huge
numbers and later we will have operations in another 6
cities where our service could be good fit that includes
Hyderabad, Bangalore, Delhi NCR, Pune, and Chennai.
Additionally, Newrobe also can venture in Tier-II cities of
India but currently we will have operations in Mumbai.

Marketing Strategy
• Segmentation
Newrobe is offering clothing rental service of Shirts
and T-shirts for men who want to wear new cloths
every day and want to look fashionable. Newrobe will
segment its customer base on the basis of their daily
needs of cloths. Newrobe will divide its customers in
three segments
1.In today’s fast-moving every working professionals
waste huge resource in purchasing cloths, selecting
from it and then maintaining it. So, working
professions will have huge demand for formal shirts.
Newrobe will be one stop solution to fulfil their
dreams and get rid of maintaining cloths.
2. Youngsters always feel that they don’t have new
cloths and dreams to wear stylish cloths every day and
look fashionable thus they will need T-shirt and casual
Shirts every day.
3. Some people have to spend huge money on ethnic
wear only for one occasion and cloths remains unused
thus for them Newrobe provide service to rent ethnic
wear at just 10% of the MRP of the cloth.
B. Targeting
In initial stage Newrobe will target working
professional so Newrobe will have promotional events
at different IT parks and other corporate premises.
Newrobe will also undertake digital marketing. After
initial stage when whole system is in place and we
have significant order from our target market we will
further target our second segment of customers. i.e.
youngsters. We will do promotional activity at
different collages, malls and events which attract the
youth. We will also do digital marketing promotion.

Brand Positioning
 • Brand Mantra
Everyday new cloths at reasonable
prices.
• Point of Parity
• Providing good quality cloths
• Locally involved
• Door to door delivery and pickup
• E-commerce
• Point of difference
• Different business model
• Fair and relatively low pricing
• Use of Artificial intelligence
• Convenient for users
• First renter of daily wear cloths
• No maintenance of cloths to be done by
consumers.
• Substantiators
• Renting of cloths for 5 out of 7 days a week.
• Self-controlled and specialized unit for
maintenance of cloths.
• Time to time delivery and pickup
• Advising the consumers through AI
technology and specialized stylists to what to wear,
when to wear and where to wear.

Poter Generic Strategy

Cost leadership
A person spends a large part of his resources on buying
cloths and maintaining them. These people have a
tendency to purchase cloths at higher prices but actually
they want a breakthrough in the sector of clothing which
could help them to be saved from spending such large part
of their resources on clothing. Newrobe will be the
breakthrough for most of the working class people who
have limited resources but still desire to wear new and
good quality cloths every day. Newrobe would be
considered as a cost leader in the market because no other
seller until he copies Newrobe’s business model would be
able to provide the consumers with such high quality
cloths at as lower a price at which Newrobe will do. The
biggest advantage of Newrobe is that at the price at which
it offers 20 different T-shirts or shirts is the price that the
consumer usually pays to purchase a single shirt or t-shirt.
Other than this the consumers will also save on the efforts
and resources spent on maintenance of the cloths they buy.
The cost therefore would be around 1500-2000 rupees for
20 pieces of cloths per month.
Differentiation
Newrobe is different from other existing companies in the
clothing sector on the basis of its business model and how
it works for the people and by the people. The basic
difference between business model of other companies and
Newrobe is that they sell where as Newrobe rents out daily
wear cloths. Today many start-ups focuses only on luxury
goods who’s demand increases steadily but Newrobe
focuses on the daily wear needs of the customers who’s
demand will increase many folds in coming future. For
different customers we will provide four different services
to customers
 Business Model Canvas
• Key Partners
- Who are our key partners?
Our key partners are stylists, software developers, cloths
suppliers, courier service, laundry, investors.
- Which key resources are required from our partners?
We will require a team which will develop and handle
the interfaces through which we will communicate with
our customers (Website, application, post sale
services).Then we will require cloths from the suppliers
from which the stylists will suggests the customers on
what type of cloths to wear. These cloths will be delivered
to customers by courier services. When the customers
will return the used cloths then it will be sent to laundry to
make them clean and hygienic for further use.
• Key activities
- Our distribution channels?
Suppliers — Newrobe — Stylists — Courier —
Customers — Courier — Laundry — Newrobe
- Our customer relationships?
We will have an after sale service team that will be in
contact with customers after the delivery takes places in
order to know if the customer is satisfied and try to resolve
their issues if any.
• Value Propositions
- Which one of our customer’s problem do we solve?
Many people have a dream to wear new cloths everyday
but can’t fulfil their dream due to less availability of
resources with them. Newrobe will help them fulfil their at
low cost with high amount of satisfaction.
- What bundles of products are we offering to customers?
We will provide Shirts, T-shirts ,jackets and occasional
wear as per customer requirements. We will have three
different subscription plans for customers. In each plan we
will provide five shirts or T-shirts each week for a month.
• Customer relationship
- How do we get, keep and grow our customers?
We will get customers through different marketing
techniques like Digital marketing, Physical marketing,
Mouth to mouth publicity. We retain them by making sure
that they are satisfied and would surely go for re-
subscription and this will eventually grow our customers.
• Channels
- Through which channels do are customers want to be
reached ?
The customers will be reached through social media,
hoardings, newspapers and after sales service team.
- How do other companies reach them now?
The other company reach the customers only through a
physical marketing team.
• Customer Segments
- For whom are we creating value?
Newrobe will create value mainly for the working class
and the young people who desire to wear new cloths
frequently.
• Cost Structure
- What are the most important cost inherent in our
business?
The main cost that will be occurred are:
Inventory maintenance of cloths, software Supply chain
management
- Which key resources are most expensive?
Cloths and software are the most expensive resources
required for Newrobe.
- Which key activities are most expensive?
Maintenance of cloths and software and supply chain
management are most expensive process.
• Revenue Streams
- For what value are our customers really willing to pay?
The customers will be willing to pay for getting new and
quality cloths for each day that can fulfil their dream to
wear new cloths frequently.

Project By:
• Veer
Shah
• Akshat
Vora
• Tirth
Monapara
• Sumit
Dangar
• Kush
Aggarwal
• Pranav
Aggarwal