Professional Documents
Culture Documents
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CONTENTS
INTRODUCTION ............................................................................................................................... 3
PRODUCT LINE ................................................................................................................................ 4
TARGET CUSTOMERS ..................................................................................................................... 5
BRAND’S POSITIONING .................................................................................................................. 6
DISTRIBUTION CHANNELS............................................................................................................ 7
PRICING STRATEGY........................................................................................................................ 7
PROMOTIONAL STRATEGIES ........................................................................................................ 8
BRANDING STRATEGY................................................................................................................... 9
USE OF VARIOUS DIGITAL MARKETING CHANNELS ............................................................. 10
OPPORTUNITIES ............................................................................................................................ 12
CHALLENGES................................................................................................................................. 14
SUGGESTION THROUGH THE DESIGN THINKING ................................................................... 15
SWOT ANALYSIS ........................................................................................................................... 17
IFE MATRIX .................................................................................................................................... 18
EFE MATRIX ................................................................................................................................... 19
SPACE MATRIX OF YOUTOPIA ................................................................................................... 20
BCG MATRIX .................................................................................................................................. 24
DEVELOP RELATIONSHIP MARKETING CAMPAIGN ............................................................... 27
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GO TO MARKET PLAN
INTRODUCTION
Youtopia is India’s one of the largest and fastest growing branded apparel companies and a
premium lifestyle player in the retail sector. It’s a formal wear brand providing utmost comfort
and variety of colors and designs.
The brand meets the needs of the modern professional with stylish and innovative classics. Our
brand personifies style, attitude, luxury and comfort.
Youtopia is a formal wear brand providing utmost comfort and variety of colors and designs. The
brand’s portfolio includes product lines that range from affordable and mass market to luxurious,
high end style and cater to every age group, and youth to men and women. From dress shirts with
collars that ½ an inch, and suits featuring natural stretch, to pants with flexing waistbands.
Youtopia’s range is modern, minimalistic and timeless. It is distinguished by its high quality and
its relevance to the times, neither too edgy nor too futuristic.
As the name suggests, the brand meets all the needs and desires of the target customer.
The black color in the brand’s logo is reflects sophistication, luxury, confidence and strength.
The white color reflects innocence, purity and new beginnings.
Currently, there are more than 30 stores operating in the country of Youtopia.
Year of operation – 2009
Headquarters – Bangalore, India
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STRATEGIC OBJECTIVES
To be the most admired fashion and Lifestyle Company in India.
To be India’s largest apparel and fashion lifestyle brand
To be among the top retail brands in the country
To increase the market share in India
To open more number of stores in Tier-2 and Tier-3 cities
To add more product lines or to introduce new product lines
PRODUCT LINE
Menswear: Top wear – Shirts, T-shirts, Suits and Blazers, Jackets, Sweatshirts, Sweaters
Bottom wear – Trousers, Jeans, Shorts
Women wear: Top wear – Shirts and Blouses, Tops and Tees, Dresses, Sweaters, Jackets and
overcoats, Suits and Blazers
Bottom wear – Trousers and Leggings, Jeans and Jeggings, Skirts
Accessories – Wallets, Pocket square, cufflink, clutches and bags, wallets, shrugs, Underwear
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TARGET CUSTOMERS
The brand’s target audience is successful, sophisticated, multi-faceted professional who believes
style is as important as substance.
For a Youtopia customer, elegance and style are not just fads, but a philosophy
It addresses the needs of a young consumer and a changing lifestyle
Youtopia woman is dynamic, well educated, ambitious, and intelligent. She lives life on her own
terms, and is poised and feminine.
The brand targets Young premium class consumers and Business professionals.
Age Group – 18 – 65+years
Income Group – Upper – Middle class income group
Focus is an important part of a brand’s success. Youtopia brand focus on a target customer and
often narrow their focus to a particular customer need segment. As we’ve mentioned here before
on Branding Strategy Insider, customer targeting is the first step in brand design.
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BRAND’S POSITIONING
Youtopia is positioned as a premium and fashionable men’s wear brand targeted at young office
goers.
It has been positioned as a formal wear brand which symbolizes status or rank and lifestyle. It’s a
leading brand in formals.
It has positioned itself as a premium class and sophisticated brand. All those who wear it, feel
classy and premium. Our brand provides premium class clothing's at affordable prices.
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DISTRIBUTION CHANNELS
A distribution channel is a chain of businesses or intermediaries through which a good or service
passes until it reaches the final buyer or the end consumer.
Distribution
Channels
The brand also coordinates in the best manner with the logistics which is an important aspect to
be considered. So, it can be said that because of the huge number of retail outlets it becomes easy
for Youtopia to distribute its products and services to the customers and give them the best
shopping experience.
PRICING STRATEGY
The price associated with the clothes of the brand communicate the value of the products to the
target audience. This price is a mark of high-quality, thus the pricing strategy in its marketing
mix is a premium pricing one. The customers who can afford this product don’t mind paying
the premium as they get a top-quality product made from the latest of technologies and fine
fabric and other top-notch materials. Also, since there is a lot of competition in the market and
there are so many market players competing against our brand, hence it is very important to sell
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our products at price slightly lower than our competitors, which basically means Youtopia
follows competitive pricing strategy as well.
PROMOTIONAL STRATEGIES
A brand needs to follow various promotional strategies in order to communicate the merits of a
product to persuade its target segment to buy it. Promotion is one of the four elements of the
marketing mix. It is a way of attracting, inducing and creating awareness among the people to
initiate the purchase.
Over the years, Youtopia has been following various promotional strategies such as:
Organizing fun and interactive events in prominent malls across the country. Recently an
event, named “Max Comfort Formals”, was organized in Ambience Mall, Guguram. In
this event, our specially invited loyal customers and fashion influencers had to select the
most comfortable office wear amongst the collection shown. Each of the invitees were
given goodies and catalogues of our latest collection. Media was also present to cover the
event.
The brand organizes contests on its social media platforms like Instagram, Facebook and
Twitter, during festivals. Currently, a contest related to Christmas is taking place on
various social media platforms of the brand. The top three contestants will receive
vouchers worth INR 1000-5000.
Youtopia occasionally does collaborations with magazines like Vogue, GQ,
Cosmopolitan and others, which have a loyal customer base and consists of the target
audience of the brand.
Youtopia has Sara Ali Khan as its brand ambassador for its women’s wear collection and
Sushant Singh Rajput as its brand ambassador for its men’s wear collection. There was a
limited edition collection for which Deepika Padukone was roped in as the brand
ambassador.
The brand actively collaborates on social media with various social media influencers
including Bhuvan Bham and Sejal Kumar.
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Youtopia has recently launched its YouTube channel where it gives styling tips for men
and women, organizes interviews with celebrities and fashion influencers, and gives a
glimpse of the brand’s latest collection.
Youtopia gives membership cards to its loyal customers. With these cards the customers
receive points for every purchase they make from Youtopia, and these points can be
redeemed later to purchase any merchandise.
The brand organizes fashion shows such as Youtopia India Mens Week and Youtopia GQ
Fashion Nights.
BRANDING STRATEGY
Youtopia Café
Celebrity Endorsement
Easy-To-Decipher Tags
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Millennial Customer Base
Company should shift their focus to the millennials since in this tech-savvy era they are the
real “kings of the market”. This strategy would also go hand in hand with influencers since
the youth is most influenced by them
Facebook Places
Mobile App: Order through Youtopia mobile app, which can be delivered in 2-3hrs.
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Cart Reminders
Omni-channel strategies
You can prepare your cart i.e. select all the products you need before entering the store so
that it saves your time and collect all those products.
Discount Marketing: Sending out coupons to the customers who touched the product but
decided not to purchase
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OPPORTUNITIES
International Expansion: By 2021, Youtopia plans to open 50 of its unmanned stores where
customers will shop with no face-to-face interaction.
Emerging Technology
And then you have other providers who are enabling the
technology to compete with Youtopia, so very quickly you can
see how the whole market will move quickly over the next two or
three years.”
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Cash Option
It can develop into a form of economic injustice, leaving behind those who do not have access to
a bank account or credit card and these autonomous stores need to have a cash option. use cash
to fund a card at a kiosk, swiping to gain access to the store. Then the purchase amount is
deducted from your card once you swipe to exit the store.
Big Data Insights and AI for Automated Merchandising and Unique Product
Recommendations
The technology used is AI, computer vision, and machine learning. The computer knows an
individual because the card is linked to the app, the computer knows the customer as he or she is
entering the store. The app is central to everything. Once the user moves out of the store the app
bills the customer for picking the item. The computers know what time one comes in and checks
out. It even knows the frequency of visits and time spent in the store. It knows the size of the
wallet too. Imagine the power of millions of customer habits in its data center.
Bot help: LoweBot, a customer service robot that speaks several languages, helps shoppers
find items and provides information on garments.
Youtopia Wants To Grow Its Ecosystem: Allows The Retailer to Show off Its Wares and
Entice Customers to Buy Even More into Its Ecosystem i.e. Youtopia Membership
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Trendy Life Style
The current urban middle and upper class Indian consumer buying behavior to a large extent has
western influence. There is an increase in positive attitude towards western culture. A Study on
Changing Buying Behavior of Indian Customers trends. The Indian consumer has become much
more open-minded and experimental in his/her perspective. Foreign brands have gained wide
consumer acceptance in India, they include items such as; Beverages, Packed food, Ready to eat
food , Pre-cooked food, Canned food, Personal care products , Audio/video products, Garment
and apparel, Footwear , Sportswear, Toys and Gift items .
Spending Behavior of Consumer
The way Indian consumers are spending their money on various items has changed in recent
years. The share being spent on the basis (food and beverages) are falling. For urban India,
averagely 30 days consumer expenditure was split up into food, and for nonfood.
Changing Trends in Indian Consumer Behavior Purchasing
Urban products is taking place in India at a tremendous pace and is influencing the life style and
buying behavior of the consumers. The working urbanites are depending more on fast and ready-
to-serve food, they take less pain in traditional method of cooking and cleaning. Bulk purchases
from hyper stores seem to be the trend these days, rather than frequent visits to the neighborhood
market or store or vendor. A large number of consumers are visiting especially to the Malls
rather than the plenty of shops available to the next door.
CHALLENGES
There is a huge amount of pressure on brick and mortar stores to deliver the best
environment possible:-
It could be pressure on brick and mortar stores of a like Youtopia to deliver the best
environment possible because every person is different and we are targeting different age,
gender and working people so it could be difficult to give same environment which they
are expecting.
What happens if the IT system goes down and no customers can pay? :-
This is the ultimate in convenience retailing. Anything that impacts the delivery of this
convenience, be it a technical glitch or on-shelf availability, will result in a backlash,
particularly from time-poor customers.
Why cashier less adoption will slow:-
Most millennials are quick to adapt to change, and use of new technology, but is that the
other customers that have used it so far, have tried it more as a 'new thing' to check out,
kind of like a craze. Somewhere it discovered that the customer wants personal
interaction, and that trained cashiers can be more efficient -especially when the
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transaction is more than one to two items. So it could be the possible reason to adoption
of cashier less is slow and it could become a challenge for Youtopia.
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Facial Recognition
Same as biometric verification of plam veins to its credit card
means user can literally just scan their own face to pay for their
items. First, shoppers complete a facial recognition registration
in-store that connects their face with Amazon go app. At the
exit, a digital kiosk reads their face and authorizes the payment.
This technology, when combined with AI, helps boost sales;
and this feature can also help in future in the fitting room, the
mirror also uses facial recognition to identify customers and
recommend items based on their shopping history if amazon go
expand in clothing categories.
Customer Assistance
In this we give a customer assistance service so that during the shopping if any customer need
any help example pregnant women, old age etc. they can just click on customer assistance
feature in app or they can just press the button which we provide on shelves for the customer and
after that by just one click or by pressing button they can easily get help by our employees in
their current location on store.
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SWOT ANALYSIS
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IFE MATRIX
Internal factors evaluation matrix (IFE) is a tool that uses internal audit’s report to
analyze a firm’s internal strengths and weaknesses. An IFE matrix gives important
information and helps in strategy formulation.
The main strength of Youtopia is their strong focus on R&D. They spend a lot of money
for innovation of the new products. The launch of new phones helped Youtopia to
increase their sales over the years.
Customer relationship management is also a major strength of Youtopia as it attracts
more and more customers and also increases the chance of getting a more loyal customer
base.
It has a diverse product category which means it has product available from all the
categories, from home accessories to readymade garments. There Youtopia is a one place
go for all the products that a customer can think of buying.
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It has a weakness of high debt ratio and that it delivers free to the customers. The free
delivery affects the bottom line which means that it affects the Youtopia in the terms of
its delivery system.
Youtopia has an internal score of 2.93 which is greater than 2.5 shows a strong internal
position but there are still issues to be sorted out. As in case of Youtopia due to high
product diversification and venturing into new product markets costs have been high and
though net sales have increased since 2004 the net income has significantly decreased.
Youtopia’s website lacks an important aspect of having different languages for different
regions have also a significant impact on their sales as well over the years.
EFE MATRIX
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An External factors evaluation model is based upon the external audit and evaluates key
external factors that affect a firm and also studies how well a firm responds to these
factors. In our evaluation of Youtopia we found the following factors that affect
Youtopia’s business and profitability.
Based on the weight assigned it can be concluded that the growth of internet users, the
heavy weight, stiff and the ever growing competition are perhaps the most important
factors in retail industry, having a high effect on Youtopia’s business.
A weighted score of 2.94 (above average and midpoint 2.5) shows that the Youtopia has
been able to manipulate the opportunities and have been able to counter threats and is
doing rather well but its business isn’t still great. Youtopia can still manipulate the
opportunities and counter the threats that it has failed to do i.e. Youtopia has not been
able to work well with the foreign exchange market and it has not been able to expand its
business activities outside India.
The Strategic Position and Action Evaluation (SPACE) Matrix, important Stage matching tool.
Its four-quadrant framework indicates whether aggressive, conservative, defensive, or
competitive strategies are most appropriate for a given organization. The axes of the SPACE
Matrix represent two dimensions:
i. Two internal dimensions [Financial Strength (FS) and Competitive advantage (CA)]
ii. Two external dimensions [Environment Stability (ES), Industry Strength (IS)]
These four factors are perhaps the most important determinants of an organization’s overall
strategic position.
i. Internal dimensions
These are the dimensions that describe a firm’s internal strengths and weaknesses. The internal
dimensions in space matrix are Financial strength (FS), Competitive advantage (CA).
ii. External dimensions
These are the external threats and opportunities of a firms defined through Environment stability
(ES), Industry strength (IS).
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Internal dimension:
2 Cash flow: the cash flows have been constant side as sales have +5
increased over the years
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External Dimension:
S.No. Environment stability (ES), Ratings.
Conclusion:
ES AVERAGE is -15/6 = -2.5 IS AVERAGE is 20/5 = 4
CA AVERAGE is -10/5 = - 2 FS AVERAGE is 13/5 = 2.6
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Directional vector coordinates
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Interpretation of Space Matrix
Based on the criteria stated above a space matrix was drawn for Youtopia to analyze which
strategies will best suit the Youtopia’s future business activities. After a thorough analyzes and
relative rating and scoring based on the space matrix it can be concluded that aggressive
strategies should be pursued by the Youtopia executives. The Youtopia can either use
integration, market penetration, and product development or diversification strategies. It can also
be observed that Youtopia has been proactively involved and has been pursuing these strategies.
BCG MATRIX
BCG matrix (or growth-share matrix) is a corporate planning tool, which is used to portray
firm’s brand portfolio or SBUs on a quadrant along relative market share axis (horizontal axis)
and speed of market growth (vertical axis) axis.
Growth-share matrix is a business tool, which uses relative market share and industry growth
rate factors to evaluate the potential of business brand portfolio and suggest further investment
strategies.
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UNDERSTANDING THE TOOL
BCG matrix is a framework created by Boston Consulting Group to evaluate the strategic
position of the business brand portfolio and it’s potential. It classifies business portfolio into four
categories based on industry attractiveness (growth rate of that industry) and competitive
position (relative market share). These two dimensions reveal likely profitability of the business
portfolio in terms of cash needed to support that unit and cash generated by it. The general
purpose of the analysis is to help understand, which brands the firm should invest in and which
ones should be divested.
BCG matrix is divided into 4 cells: stars, question marks, dogs and cash cows.
Relative market share
One of the dimensions used to evaluate business portfolio is relative market share. Higher
corporate’s market share results in higher cash returns. This is because a firm that produces
more, benefits from higher economies of scale and experience curve, which results in higher
profits. Nonetheless, it is worth to note that some firms may experience the same benefits with
lower production outputs and lower market share.
Market growth rate
High market growth rate means higher earnings and sometimes profits but it also consumes lots
of cash, which is used as investment to stimulate further growth. Therefore, business units that
operate in rapid growth industries are cash users and are worth investing in only when they are
expected to grow or maintain market share in the future.
There are four quadrants into which firms brands are classified:
Dogs
Dogs hold low market share compared to competitors and operate in a slowly growing market. In
general, they are not worth investing in because they generate low or negative cash returns. But
this is not always the truth. Some dogs may be profitable for long period of time, they may
provide synergies for other brands or SBUs or simple act as a defense to counter competitors
moves. Therefore, it is always important to perform deeper analysis of each brand or SBU to
make sure they are not worth investing in or have to be divested.
Strategic choices: Retrenchment, divestiture, liquidation
Cash cows
Cash cows are the most profitable brands and should be “milked” to provide as much cash as
possible. The cash gained from “cows” should be invested into stars to support their further
growth. According to growth-share matrix, corporates should not invest into cash cows to induce
growth but only to support them so they can maintain their current market share. Again, this is
not always the truth. Cash cows are usually large corporations or SBUs that are capable of
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innovating new products or processes, which may become new stars. If there would be no
support for cash cows, they would not be capable of such innovations.
Strategic choices: Product development, diversification, divestiture, retrenchment
Stars
Stars operate in high growth industries and maintain high market share. Stars are both cash
generators and cash users. They are the primary units in which the company should invest its
money, because stars are expected to become cash cows and generate positive cash flows. Yet,
not all stars become cash flows. This is especially true in rapidly changing industries, where new
innovative products can soon be outcompeted by new technological advancements, so a star
instead of becoming a cash cow, becomes a dog.
Strategic choices: Vertical integration, horizontal integration, market penetration, market
development, product development
Question marks
Question marks are the brands that require much closer consideration. They hold low market
share in fast growing markets consuming large amount of cash and incurring losses. It has
potential to gain market share and become a star, which would later become cash cow. Question
marks do not always succeed and even after large amount of investments they struggle to gain
market share and eventually become dogs. Therefore, they require very close consideration to
decide if they are worth investing in or not.
Strategic choices: Market penetration, market development, product development, divestiture
(Jurevicius, 2013)
BCG Matrix of Youtopia
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STARS
In this quadrant, the product portfolio of the brand is classified as having a higher market share,
which means more cash returns and also having greater scope of industry growth. Youtopia’s
products like Shirts, Suits and Blazers, trousers lie in this quadrant because these categories
are high performing categories because the brand is a formal wear brand. Most of the revenue of
our company is generated through these product categories only.
QUESTION MARKS
In this quadrant, the product portfolio of the brand is classified as having a low market share, but
has a fast growing market. The product categories of Youtopia which lie in this quadrant are
Accessories like Underwear's, Wallets, shrugs, scarfs, etc.This is because there is a scope of
growth in the market but cash returns from these products is not a very good amount.
CASH COWS
In this quadrant, the product portfolio of the brand is classified as having a good market share but
the market has a slow growth rate. The product categories of Youtopia which lies in this
quadrant are T-shirts, Jeans, Jackets because Youtopia has positioned itself as formal wear
brand in the market and hence customers prefer to buy formal wear from it because the brand
itself has created such kind of image in the minds of the customers.
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Show your support for the thousands of people experiencing breast cancer by taking part
in the YOUTOPIA fundraising campaign.
A joint initiative by the YOUTOPIA Foundation and Indian Cricket Team the campaign
hopes to promote breast cancer awareness.
The first day of the Green Park Test was named ‘Pink Day’ in order to raise money for
the YOUTOPIA Foundation.
The campaign, dedicated to his YOUTOPIA foundation, supports the cancer across India.
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