Chapter 1 Introduction

In 2009, with more than 90 stores across India, Fabindia is looking towards expanding its operations overseas. Initially an export house, Fabindia has emerged as one of the leading players in the ready to wear segment, with the image of a quintessential ‘Indian’ brand. The questions now confronting Fabindia are how it is supposed to take its expansion plans forward and increase its global reach, and whether the ‘Indian’ brand can gain enough of a foothold in the international market. Fabindia has become a fashion statement in the “elite” and “intellectual” customer segments. It had also come to represent organic products. “Fabindia was founded with the strong belief that there was a need for a vehicle to market the vast and diverse craft traditions of India and thereby help fulfil the need to provide and sustain rural employment.” “Our endeavour is to provide customers with hand crafted products which help support and encourage good craftsmanship.” John Bissell

John Bissell who founded Fabindia was born in Hartford in Connecticut and was educated at the Brooks School in North Andover, Massachusetts, and at Yale. He was introduced to India by his father, who told him stories of his time in India when he was posted there during the Second World War. John Bissell worked as a buyer for the American departmental store, Macy’s. In 1958, under a programme run by the Ford Foundation, he came to India to advise the Central Cottage Industries Corporation created by the Indian government, on showcasing Indian handlooms and handicrafts. His role was to advise on issues relating to marketing Indian handicrafts. He was new to India and he did not know any Indian language. In spite of these inconveniences, he travelled extensively over India and met several craftsmen. He came across a lot of skill, among craftsmen but he also observed that they had no idea about marketing their products and they were in no position to access distant urban or international markets. He liked his experiences in India and hence kept coming back. What Bissell discovered was a village-based industry with a profusion of skills hidden from the world. However, they lacked the skills to market their products and access the large

urban and foreign markets. Determined to showcase Indian handloom textiles, and providing equitable employment to traditional artisans, and sensing an entrepreneurial venture, Bissell established Fabindia in 1960. It was also to fuse the best aspects of East & West collaboration. Initially, Fabindia started as a wholesale export company, concentrating on the export of upholstery fabrics, durries and rugs. Initially his goal was to export to the US and to other western countries. With that aim in mind, he incorporated Fabindia in 1960. The company operated from Bissell’s residence in the posh Golf Greens locality in New Delhi. Growth was initially slow for the company and in 1965 the company moved out of his house into a proper office. By then, Fabindia had an annual turnover of Rupees 20 lakhs. Most of this turnover was accounted for by a single buyer and a single supplier. A. S. Khera made durries and other home furnishings in his workshop in Panipat and most of the output was purchased by the UK based Habitat, which was founded by a famous interior designer, Sir Terence Conran.

Retail Foray
Bissell’s Greater Kailash shop was a success. It attracted a distinct category of customers. But in spite of such success in its direct retail business, Fabindia remained dependent on exporting and Habitat continued to be their single major buyer. In the early 80’s, Fabindia made a significant addition to its product range by adding ready to wear garments too in their retail offerings. In an interview in 1977, Bissell said, ‘’the greatest thing that happened to our business was the move in Europe and America a few years back to the natural look – natural textures, natural fibres - and away from things like polyester and nylon’’. Similarly, like in Europe and America in India, a distinct group was emerging. Some of India’s new young politicians, media stars and other celebrities patronized Fabindia and were able to provide Fabindia with nationwide exposure for its products. In spite of all that, its domestic retail business grew slowly. It continued to focus on export business. However as time passed Fabindia's marketing shifted from exports, to the local Indian retail market. This was especially so from 1990s. In 1999, on John Bissell’s death, his son William aged 32, formally took over as the Managing Director of Fabindia. The Company’s domestic expansion had been spectacular after William took over. By 2001, Fabindia had six stores concentrated in the metro cities. By the end of 2004, these had increased to 20, and the company was seriously considering expanding its stores into the tier-II and tier-III, cities as

well as overseas. By the end of 2007 Fabindia had 75 retail stores across India and in addition, stores in Dubai, Rome and Guangzhou in China.

Fabindia across India
What started as an export house has today become a successful retail business presenting Indian textiles in a variety of natural fibres, and home products including furniture, lights and lamps, stationery, home accessories, pottery and cutlery. In 2004, food products range was launched and in 2006, Fabindia Sana, their authentic body care products range, was launched. Recently, it has also ventured into the jewellery segment. However, the major chunk of Fabindia’s product range is textile-based. The company has continued its focus mainly on the artisans and sources its products from over 15,000 craftsmen across India. With a strong foundation, the company has been successful in increasing its presence all over India.


Chapter 2 Research Methodology
Research Topic – A Study of Consumer Behaviour towards “Fabindia” in Mumbai Why the study: • The study is aimed at understanding the consumer’s behaviour towards “Fabindia” and its marketing strategies. The scope of the study would include:

Understanding the consumers of Fabindia in different segments and in different locations. Doing a Market Research of different targeted consumers of Fabindia Conduct a SWOT analysis of Fabindia

• •

What is it about The objective of the study is:
• •

To study consumer behaviour towards Fabindia. To know about the marketing strategies of Fabindia which includes 4P’s of marketing Conduct a SWOT analysis of Fabindia

Where was the study carried out The study will be carried out in the stores of Mumbai only.

What research design we followed Primarily we have conducted exploratory research. Since the object of exploratory research is to find out new ideas, flexibility and ingenuity characterize the investigation. Since we had to analyse, that despite of so many strengths India is still not the market leader in home textiles export sector. We had to continuously change the focus of investigation as new possibilities acme into attention.

What data sources are used Primary data: Obtained from people in major shopping areas of Mumbai, viz Phoenix Mall, Worli; Chembur; Inorbit Mall, Vashi and Colaba.


5 . Mumbai and store manager of Fabindia. What sample design we used Probability techniques had been used for sample design. other authentic online data. The respondents were to be selected randomly for this research project. where we divided entire population into different strata on basis of incomes and age groups. We gathered information from website of Fabindia.Along with that we have obtained information from zonal manager of Fabindia. text books and journals. From where the data was to be collected • Different consumers segments of Fabindia located in Mumbai Visit different locations of Mumbai with the questionnaire to know about the different responses of customers towards the brand Secondary Data from different books. Indore. Secondary data: Both published and unpublished data sources were used. Under this head we used stratified random sampling. magazines. magazines and internet. i.e. we included people with high incomes falling in age group range of 25 to 40. • • What sampling techniques were used to collect data Random Stratified sampling were to be used for this research project.

namely rank order scaling (respondents had to rank their preferences) and semantic differential scaling (where the respondents had to define their choice between highly satisfied and highly unsatisfied) How the data to be analyzed Data analysis was to be done from the responses that we had collected from various consumers based on the questionnaire. Columns chart & Pie chart was used for the representation of the interpreted data. How will the report be presented A report in the form of hardcopy will be submitted along with a presentation of the results of the research.What was our sample size 100 respondents had been selected as the sample size for this study of consumer behaviour located in Mumbai only. Ordinal scales had been used where the respondents had to rank their attitudes towards Fab india in terms of provided options. What scaling techniques were to be used In our study. 6 . We used comparative scaling techniques.

Fabindia exports to more than 34 countries. Retail Outlets The retail channel is already developed within India with almost 100 stores in Tier 1 and Tier II cities.Chapter 3 Literature survey Fabindia has created a visibility in the international market either through its own stores or through other retailers and boutiques and also through institutional sales. It provides customization and interior designing consulting for clients like heritage hotels. The export being a very lucrative market. resorts and corporate houses. Fabindia’s product line includes organic foods and body care products. The special collections are showcased at the Indian Handicrafts and Gifts Fair. upholstery fabric. Dubai (UAE). Manama (Bahrain) and Doha (Qatar). Fabindia develops a special collection for exports markets twice every year. lamps and stationery. garment accessories. curtains. As different wholesalers and retailers flock to these fairs to address their sourcing needs. Institutional Sales Fabindia envisages servicing high business institutional segment especially the heritage hotels and multinational corporate houses. table and kitchen linen. internationally Fabindia owns stores in Rome (Italy). The clients are wholesalers as well as secondary retailers. floor coverings and a range of non textile products like furniture. Wholesale exports As of today. The product range consists of garments for men. bath. This collection draws on different techniques to present a range of home furnishings comprising bed and table linen. lights. Exports are done as per the Terms and Conditions agreed by Fabindia and the customer. In addition to handcrafted clothing and home furnishings. with a focus on textures – both visual and tactile. New Delhi in Spring and Autumn. 7 . Fabindia is able to reach out to potential clients. As of today. Guangzhou (China). Products exported include home linens as well as garments. home furnishings – bed. children and infants. The main advantage Fabindia has enjoyed is that its products have a distinctive and quintessential style and it can easily be identified by potential customers. women.

the jewellery which suits the attire also gets launched. It has designed the stores’ decor and ambience keeping this in mind. and don’t even tell other people that they have purchased the particular item from Fabindia. The company concentrates on customer feedback by maintaining a visitors’ register to record customer views. the CRM software has been implemented in a select few stores which aims to help in maintaining a centralized database. is still in its nascent stage. Some customers are so inclined to Fabindia that they just don’t believe in going elsewhere else. organics. This helps them create an image of 8 . merchandising was not a planned activity. This will help Fabindia in retaining customers by building lasting relationships and improving loyalty. Fabindia believes: “A delighted Customer is our Best Brand Ambassador” Fabindia does not follow any customer acquisition strategy. It automatically gets sold without any promotion. The store managers prepare a report on buying pattern among consumers which is periodically reviewed by the Product Selection Committee at Fabindia. It serves as an effective tool to improve the customer experience. It constantly attempts to improve the quality of the products in order to retain its customers. This orientation of customer relationship later became a part of the company culture. be it traditional. Fabindia creates its market through its existing customers which is quite evident from the fact that about 85% of its customers are repeat customers. but is soon expected to be spread across all the stores in the country. It instead focuses on customer retention. jewellery or furniture. he procured it for display at the store.Merchandise Mix: During the early days. asking questions. Fabindia looks into the value which a customer may feel by having the product as a part of his/her life. to display the products and assist in the sale. Sometimes he would also invite the craftsmen. western. The implementation. however. Before launching any new product. registering complaints or behaving in a certain way and then provide detailed reports or feedback on their shopping experiences to the management. The Unique Selling Proposition of Fabindia is the quality of the fabric and the traditional style. Recently. Fabindia also has the Mystery Shopper Program to gauge the customer satisfaction level. the brand managers at Fabindia rely upon a concept of intuition. Whenever Bissell saw something of interest. Moreover. which is always in vogue. If a new line of traditional kurtis is launched. Mystery shoppers posing as normal customers perform specific tasks such as purchasing a product. The expansion in merchandize mix is mainly done through customer feedback especially that of its loyal customers.

Since the supply and the manufacturing happen on a small scale over a large geographical. The Fabindia customers also understand this and are largely tolerant of the discrepancies in garment in terms of size & prints etc. Market potential determines store location for Fabindia. in a concept store. The exclusive jewellery counter is also kept in the fronts. On the other hand. Fabindia works on various types of stores which include concept stores as well as full fledged store. Why Fabindia? Fabindia since its inception has concentrated on cultivating an image of ‘Indianness’. Since most of Fabindia’s customers are repeat customers. Fabindia has succeeded in making the inherent inconsistency of the product into an appeal factor by positioning each garment as ‘unique’. innovation and intuition are the most important aspects of Fabindia’s product planning. Thus. uniqueness. The major problems for Fabindia occur in the maintaining the consistency of the products. In a posh locality in a metropolitan city. but it also has strong relationships with all its suppliers. Fabindia has been highly successful in creating a pool of repeat customers. even though the products sometimes 9 .exclusiveness. over 77% of the customers buy Fabindia. In fact. the motivating factor for the customer remains the quality and consistency of product and the service provided by Fabindia. which is fast expanding in Tier II cities like Bhopal where still mall culture is nonexistent. Fabindia has in store posters which educate customers about the dyes used in the products. Store layout and location: The store layout in Fabindia depends upon the type of store. because of the ‘Fabindia’ brand and its contribution to improving the life of rural artisans. It makes sure that a supplier does not suffer due to marginal quality lapses. The core values of Fabindia have always been to provide its customers with quality products which reflect the unique Indian culture and tradition. who come again and again for the unique Fabindia experience. Fabindia makes sure that a minimum level of quality is maintained. Also. Relying on its word of mouth publicity. Hence. it becomes difficult for the firm to maintain the same level of quality. and also the possible problems which could be faced in washing and using them. Fabindia works as a full fledged store which has almost all the product lines. The layout usually keeps clothes section at the back of the store and the entrance area is utilized for home products. the place specific products are retailed.

This has mostly been done as an extension of the Garment brand. The constant product innovations and agility in identifying associated product lines has been the key. Fabindia has been expanding its product range to include jewellery. for quite some time. with 58% being highly satisfied with the brand and its offerings.have problems due to the fading of colours. the products have an intrinsic appeal to customers. It has become the niche player of choice for the urban and semi-urban masses when it comes to buying something with “Indian flavour” added. They have also opened international stores in Italy. Therefore. The major problem there is erratic delivery and product availability. Over 83% of Fabindia’s customers go back satisfied. etc. It had inculcated a large number of western fashions and garments into its range. UAE. or shrinkage. it is still a nascent market. they have 97 stores across the length of the country. 10 . which does lead to customer dissatisfaction. because it was John’s shirt size! Although Fabindia appeals to the Indian customer’s need to remain rooted with the tradition and culture. the service personnel make sure that the customers are not inconvenienced on account of such problems. In case of organic products. This is done keeping in mind the customer feedback received and the inputs given by the store managers. it has made sure that it changes with the times. home furnishings. For example. the Fabindia men’s garment line was restricted to shirts and that too in only one size. John Bissell. Its appeal is mostly to people who are already aware of the product offering and have been using similar products. But this is a very small part of the clientele. The general response is to exchange the garment for another. needed shirts. Body care products. Fabindia relies on its managers to identify client needs and trim the store offerings accordingly. As of January 2009. Qatar and China. the men’s garment range was started because the founder. which makes sure that the customer goes back happy. Their network is spread across 34 countries worldwide and 511 destinations in India. and remains a loyal customer. Be it garments with distinctive folk patterns to furniture with carvings and designs reflective of rich Indian heritage. International Presence Fabindia has gradually attained a strong foothold in India.

Also. As mentioned earlier.For geographies outside of India. 10 lakh crore. it was quite clear that product and services enable a customer to make a statement. 9000 crore. The profitability has been maintained at a rate of 6% for the entire period. Fabindia planned to expand significantly in tier-II and tier-III cities in India. For Fabindia William Bissell has set a very ambitious target of reaching 250 stores and a turnover of Rs. There are estimated to be over 120 lakh stores in the country. are going to grow in volume and value. Growth in locations was expected to come from expansion in overseas markets as well as a greater penetration of the markets in smaller towns in India. Fabindia has grown to having a turnover of Rs. That increase will be achieved by increased emphasis on premium products. Of this. This organized retail sector is vying for a share of the spending of India’s rapidly growing middle class whose purchasing power is estimated to be around Rs. The growth is expected to come from new stores as well as increase in sales from existing stores. Currently organic foods.130 crore in 2005-06. store layout and even the store ambiance. then it will have to look at issues of product design. Increasingly. body care products and handicrafts form a significant part of its total sales. 11 . It registered a CAGR of about 38% in the period 2002-06. India has a flourishing retail business but most of it is in the unorganized sector. An estimate made by a professional demand forecaster shows that out of the total retail business potential. If he decided to make it exclusive. there is a strong mysticism about Indian culture and hence the products reflective of Indian folk art hold great potential in those markets. its competitors were using ethnic themes for their store layouts as also for designing garments. organized retail is only 3% but is growing at the rate of 18%.Market From a turnover of 36 crore rupees in 2000-01. Given the over 8% growth in the Indian market and an upwardly mobile India consumer.1000 crore by 2011. The question before Fabindia Management is that of making Fabindia product exclusive or mass product. Such phenomenal growth has not come at the cost of profits. the Indian market for ethnic wear is likely to be a about Rs. Fabindia has attempted to decrease its dependence on fabric based businesses by increasing its other product lines.

To this end. Fabindia uses a lot of in-store posters to create consumer awareness about the products and where they come from.MARKETING MIX Figure 1: Representing Marketing Mix of Fabindia PRICE: Fabindia’s Product range enables it to provide a wide range of products in a wide price range. It believes that the product speaks for itself and this strategy has up till now worked very well. Thus. it has started using tools such as Mobile Marketing and giving Advertorials in newspapers to increase awareness about its store locations.2000 in order to provide something for all its customers. the rural suppliers etc. It believes that the only problem in this strategy is that customers do not know the location of the stores. The products range from garments for men and women to upholstery.e. no other strategy is needed. but once that is overcome. 200 to more Rs. i. furniture etc. 12 . it has expanded its range of garments starting from Rs. Communication for Fabindia is completely customer driven. In order to do this. Obviously these products have different price ranges. But Fabindia has tried to make sure that the customer cost remains affordable and gives ‘value for money’. PROMOTION: Fabindia has traditionally relied only on word-of-mouth as a marketing tool. Also.

Another such regional competitor is the market outside the law garden in Ahmadabad. The law garden is a famous place for buying handicrafts and Gujarati outfits from local hawkers. an upgraded traditional weekly market. rides for kids and a great variety of Gujarati food. supports artisans. regular and concept stores. This also ensures convenience for the customers since the products are either available in the same store or in nearby stores. which is that of traditional. It also differentiates its stores according to the products stored. located in the hub of south Delhi.PRODUCT: Fabindia’s products are its differentiating factor and it has made sure over the years that the quality and the style of the products is maintained. This is a very strong customer value leveraged by Fabindia. It has a large product range which includes -Garments for men and women. Home Products. imaginative landscaping. One is very happy to get goods at a very nominal price here. It is trying to increase coverage in order to make sure that the products are available at the largest number of places possible. The common thread that links both the Delhi Haat and the Law Garden is the experience they create for the customer by combining crafts. The place has been developed by the Tourist Department of Delhi to enhance the craftsmanship of our country. All the products have at least one factor which is handmade and thus. the Delhi haat is a permanent haat that offers a kaleidoscopic view of the richness and diversity of the Indian handicrafts and artefacts. Organic Food Products and ethnic Jewellery. However. Body Care Products and more recently. It is an amalgamation of craft. The stores include the premium. This garden provides one with various recreational options like music. Floor Coverings. PLACE: Fabindia has stores in more than 95 locations across India. The unorganised sector has the local tailors who provide customised garments to the customers at reasonable prices and the local NGOs selling wares. COMPETITION: Competition Faced by Fabindia is from both the organised and unorganised retail sector. the scale of operations does not pose a major threat to Fabindia. Unlike the village haat. and the traditional village architectural style provide for a major tourist attraction. One such competitor is the Delhi Haat. Accessories. For eg. Spread over a spacious six acre area. In Mumbai the Khar Store is only a Furniture and Upholstery while the nearby Pali Hill stores Garments. theatre. food and cultural activities. Body products and Jewellery. food and cultural 13 . Home Linen and Furnishings. ethnic products which support poor artisans and provide livelihood to a large number of people. creative planning. organic products.

Stand alone stores like Shristi and Biba in Bangalore. Powerful Indian business houses like Tata. There is also severe competition from the ethnic wear labels of modern Indian retail chains. Fabindia’s main competitors are the ethnic wear retailers like Khadder. However. The product mix offered by both is similar to Fabindia. The government has already permitted single brand retailers to set up shop and others like Carrefour. However. the quality of products and service provided by Fabindia is perceived to be higher than that of the government run outlets. New competition is expected from overseas retailers also. However. 14 . The organised retail sector also includes outlets by corporate houses like Lifestyle and Westside which cater to the same demographic profile. Stores like Hansiba have the same target audience. has well over 30 exclusive stores now. Such an experience is lacking in case of Fabindia. W.. such as Shoppers Stop and Pantaloons. W and Good Things. for example. who are also expanding at a rapid pace.activities. Reliance and Birla are expanding their retail businesses. A tourist would be lured by the overall ambience he gets in the former case. Prapti in Kolkata and Sadka and Shoma in Delhi have been doing well for a while and could pose a challenge by expanding. the products served are more contemporary in nature and does not aim at the same target audience. Also. Walmart and Metro have devised ways to get into the Indian market. in addition to being available at some multi-brand outlets. a far greater threat is posed by the organised sector especially Government owned Khadi Gram Udyog outlets and Cottage Industries Emporiums across the country. but do not have the reach of Fabindia. they have the backing of the governments.

Well established business Godrej Agrovet. 2. Highest level of customer intimacy. ORGANIZED SECTOR Departmental Stores ((Shoppers Stop. Subsidized manufacturing and costs. Only located in Mumbai 2. Handicrafts from western regions 1. 15 . Very fragmented business approach. Lack of retailing expertise and inability to minimize costs. The trends are designed as per recent garments and accessories trends. Priced at a much higher prices than average Fabindia prices. No uniformity in price across products. Retailing brands and inhouse labels have a considerable share of product mix. Scope of product customization. 1. Cottage Industries Emporium. Diversity of product is very less. Reliance Trends. 2. 2. Agility for quick product development cycles. Limited models of SKUs manufactured. 2. 1. 1. 1. 2. Complementary products manufactured with other firms. Bombay (Swadeshi) Stores 1. Products are mostly produced for souvenirs or artefacts of collector’s interest. Business is heavily influenced by bureaucratic approach of employees. Reaching out to customer with larger dispersion. 1. Ensures convenience of demanding service. Organic Foods (Reliance. State Government departments) Designer Boutiques 1. Minimal product lines. houses with high brand Organic India) equity. Westside. Profitability concerns as organic market is still at nascent state. 2. 1. 1. No significant product evolution.Competitors of Fabindia Table 1: Representing strengths & weakness of Fabindia’s Competitors STRENGTHS UNORGANIZED SECTOR Tailoring Outlets 1. 3. ITC Foods. 2. 2. Servicing high value customers. 2. Government Handloom Initiatives (Khadi Gramodyog. 2. 2. Globus) WEAKNESSES 1. National presence of outlets. Strong legacy attached to products. 1. Retailing expertise and competitive pricing. FABINDIA MODELLED GARMENT HOUSES Hansiba 1. 2. Established and technologically equipped supply chains. Established brand and market. Differentiable products. NGOs Promoting 1. Strong community based Handicrafts operations. 1.

The uniqueness of the fabric or styling has created a new category as identified by the customer as ethnic wear. organic foods and the very recently introduced jewellery line.SWOT Analysis STRENGTHS The product mix available at Fabindia can be easily differentiated by the customer. It has an enviable presence in diverse product lines as garments. WEAKNESS This absence of promotions strategy is believed to be resulting in sales below its potential levels. 16 . OPPORTUNITIES Merchandising within stores is still in a rudimentary stage. In the past there have been incidences when due to delay in sending supplies for winter garments manufacture. Hence. Due to its variety of stores. This leads to an inference that Fabindia can focus on customer acquisition strategies. Out of the total customer base for Fabindia. This leads to a very high brand recognition and connects with the customer value. There is great opportunity to grow along with the fast growing organic foods department. The sourcing strategy followed for accepting raw materials is heavily supplier centric. The shopper navigation can be greatly enhanced by focusing on the store layout and appropriate merchandising techniques which succinctly create individual product areas. Also as it is suppliers are mostly artisans and manufacturing is labour driven. a high percentage comprises repeat customers. body care. furniture. It operates through its own stores and that too fed by a centralized hub model of supply chain management. furnishing and upholstery. It should be nimble and responsive to changing tastes of its customers. THREATS Already many firms have tried to recreate the model of Fabindia. it can reach to different categories of customers.Fabindia needs to innovate and diversify into different product categories. Also it needs to ensure that the customer service provided and the quality of products is consistent. . inventory was carried over to the next year and suppliers were not made to share the damage. controlling costs can be a challenge.

opportunities and threats of Fabindia STRENGHTS • • • • • • • • • WEAKNESSES • • • • • No specific promotions strategy Limited channels of business Sourcing strategy skewed towards suppliers Inconsistent quality of products Inconsistent service in stores Differentiable products Brand recognition and loyalty Diverse product mix Partnering with suppliers In-house manufacturing Price Trends Setter Different categories of stores Customer Loyalty OPPORTUNITIES In store merchandising & navigation Promoting e-business channel Organic foods market Customer acquisition strategies • • • THREATS • • Substitute producing competitors Not in touch with Fashion Trends 17 .SWOT Analysis Table 2: Represents strength. weakness.

cultural and economic). besides its basic functions – to protect the body. The consumer buys or uses fashion products of different types and styles. The brand may benefit from a greater reputation and higher proximity to its buyers if the design of each collection takes in consideration the following aspects: Figure 2: Representing the Brand Image of Fabindia • • • In order to keep or develop the value of the symbolic speech of the products. the brands‟ image management should be focused in one particular style. Recognizing this. rather than those of the idealized people who in the past have appeared in advertisements and commercials. The adoption process of fashion products reflects the great influence of the image of fashion that it transmits as well as its inherent identification potential (social.Fabindia’s Image This system reinforces the need to develop of the brands‟ image considering the implications over the brand identity and awareness of what confirms the importance of fashion products branding. consumer searches for fashions that more nearly fit his/her own needs and wants. 18 . An effective fashion image developed through the seasonal collections. allows the brand to achieve image coherence and to capitalize on it in the market by building global brand.

which image of itself should match customers impressions of the store.The store image development is established through its geographical location. the commercial zone where it occupies & its external design. as well as by the product that it offers and their representation in the internal space of the store. The combination of these factors defines the store atmosphere of look or the personality of the store. Figure 3: Represents the store image of Fabindia 19 .

Indian craftsmen and this entire effort and concept. Figure 4: Represents the Segment to which Fabindia Caters Psychographic: Psychographic profile of a customer comprises his activities. interests and opinions (AIO). experiencers. Fab India targets Achievers and Believers.Consumer Segmentation Fab India has used following bases of segmentation Demographic: They used disposable incomes as criteria to segment their customer bases. 20 . Fab India caters to only Upper middle class and upper class. achievers. people of high income groups. occupation and incomes go hand in hand so they target highly educated people in good professions who have their own set of groups. fulfillers. Achievers are attracted to distinct and premium products. strivers. hence Fab India does not advertise. Since education. Fab India has focussed on people who have genuine interest in ethnic wear and handicrafts and the people who hold positive and strong opinions about handicrafts. Believers have strong opinions about certain issues and attracted to a particular category of product like handicrafts. believers. Thus Fab India targets on its culture loving. they believe in word of mouth of this group of people. makers and strugglers. Lifestyle segmentation: According to lifestyle segmentation there are 8 classes of people: Actualisers.

self reliant. what ever be the latest trend in western wear they still go for centuries old Chanderi prints. High in NC (Need for cognition) are more responsive to product related description and are more responsive to written message. Fab India has a brand personality conveying traditions. Such individuals are independent. According to Non-Freudian Personality theory. such customers are more rigid and attracted towards their culture. richness. Fab India focuses on people with detatched personalities. sticking to your roots. • • • • 21 . while customers who are low in NC are more influenced with the glamour associated by the product rather than stressing on knowing what actually the product is. ethnic so people whose personality coincides with these traits are the target of the brand. Highly dogmatic since these customers are more likely to prefer traditional alternatives over traditional products. appraising Indian factor. Low on consumer innovativeness as they are more likely to stick to their favourite prints or fabrics or even styles. This color further strengthens the brand personality of Fab India as a Handicraft Outlet. social responsiveness so people whose personality conforms to these traits are likely to be brand loyal to Fab India. Fab India focuses on people who are • • High on consumer ethnocentrism. i. Usually Fab India consumers are aware of the history or belonging or at least worth of the piece they are purchasing. stability. Even the color of the logo of Fab India i. RED is chosen to convey Indianness. They want to have a unique collection of possessions like Kota Doria fro Rajasthan.e.e. and want to be free from obligations. According to Trait theory. since red is a holy color of India. Personality is an important tool of consumer behaviour as it helps in categorisation of consumers into different groups on basis of their traits. High on consumer materialism as their customers seek their possessions for greater personal satisfaction. Bidri work from Andhra Pradesh. Verbalisers (prefer written and verbal information) rather than visualizers (prefer only visual information of product). A person who is loyal to Lucknawi Chickankari is less likely to accept deviations from traditional chikan kari. Moreover red conveys royal.Personality Straits of Fabindia Consumers Personality of an individual reflects individual differences.

confidence.As per Maslow’s hierarchy the Consumers of Fabindia fall in stage of esteem where self esteem. Figure 5: Represents the Maslow’s Need Hierarchy 22 . respect of others. respect by others guide the consumer behaviours. achievement.

23 . How much do you generally spend on Clothes per month? Table 3: Represents the per month spending on cloth Per month spending on cloth 0-500 501-1000 1000-2000 >2000 No.1000 while only 7 % spend below Rs 500 per month on clothing.Chapter 4 Data Analysis and findings 1. 34 % spend more than Rs 2000. of Respondents 7 17 42 34 Figure 6: Pie chart representing % of per month spending on clothes of Consumers 42 % of the respondents spend per month on clothing in range of Rs 1000-2000. 17 % spend between Rs. 500. Inference: Maximum number of respondents spends in range of Rs 1000-2000.

How much do you generally spend on Home Furniture and Furnishings per year? Table 4: Represents Per year spending on Home Furniture and Furnishings Per year spending on Home Furniture and No.10000 while only 7 % spend below Rs 5000 per year on Home Furniture and Furnishing Inference: Maximum number of respondents spends more than Rs 15000 per year on Home Furniture and Furnishing 24 . Of Respondents Furnishings 0-5000 7 5000-10000 10000-15000 >15000 11 19 63 Figure 7: Pie chart representing % of per year spending on Home Furniture and Furnishings 63 % of the respondents spend more than Rs 15000 per year on Home Furniture and Furnishing. 11 % spend between Rs.2. 5000. 19 % in range of Rs 10000-15000.

so their policy of not advertising is consistent with this response. Inference: Majority of the respondents came to know about Fabindia through word of mouth. while others through print media and internet. 31 % through print ads. how did you find out about Fabindia? Table 5: Represents the Advertisement channels used by Fabindia Advertisement channels used by Fabindia No.3. while only 3 % through gift certificates and none of them came to know about Fabindia through SMS.of Respondents Internet SMS Print Ads Word of Mouth Gift Certificates 23 0 31 43 3 Figure 8: Pie-chart representing the Advertisement channels used by Fabindia 43 % of the respondents came to know about Fabindia through word of mouth. 25 . Have you heard about Fabindia. If yes.23 % through internet.

26 .4. Rate your experience at Fabindia in terms of your satisfaction level for the following: a) Service Table 6: Represents the Level of Satisfaction of Service at Fabindia Level of Satisfaction of Service Highly satisfactory Satisfactory Average Unsatisfactory Highly Unsatisfactory No. while 2 % feel that it is unsatisfactory and none of the respondents think that service quality of Fabindia is highly unsatisfactory. 29 % think it is satisfactory.6% feel it is highly satisfactory. Of Respondents 6 29 63 2 0 Figure 9: Pie-chart representing the Level of Satisfaction of Service at Fabindia 63 % of the respondents think that service quality of Fabindia is average.

27 .Inference: Majority of the respondents think that service quality of Fabindia is average.while a small chunk feels it is unsatisfactory so services policy of Fab India has been doing good but they further need to work on this aspect.

that means the range offered covers the need of every prospective customer of 28 . Of Respondents 28 41 25 6 0 Figure 10: Pie-chart representing the Range of Products available at Fabindia 41 % of the respondents feel that they are satisfied by the range of products available at Fabindia. 25% feel it is average. 28 % feel it is highly satisfactory. Inference: Majority of the respondents are satisfied by the range of products available at Fabindia. 6% feel it is unsatisfactory and none of them feel that they are highly unsatisfied by the range of products available at Fabindia.b) Range of Products available Table 7: Represents the Range of Products available at Fabindia Range of Products available Highly satisfactory Satisfactory Average Unsatisfactory Highly Unsatisfactory No.

still 6% think it is unsatisfactory.Fabindia. 29 . so they can ask their unsatisfied customers and launch the required products.

28 % feel it is average.c) Visual Merchandise of the Store Table 8: Represents the VM of Fabindia Visual Merchandise of the Store Highly satisfactory Satisfactory Average Unsatisfactory Highly Unsatisfactory No. Of Respondents 31 37 28 4 0 Figure 11: Pie-chart representing the VM of Fabindia Stores 37 % of the respondents feel that they are satisfied by the visual merchandise of Fabindia. 31% feel it is highly satisfactory. 4% feel it is unsatisfactory and none of them feel that they are highly unsatisfied by the the visual merchandise of Fabindia 30 .

Inference: Majority of the respondents are satisfied and highly satisfied by the visual merchandise of the store and another large segment is thinks that VM is average. 31 . they need to work on this 28% to eliminate any pulling factors.

14% feel it is unsatisfactory. 27 % feel it is average. this response explains one of the basic resaons for Fabindia success 32 .d) Quality of Products Table 9: Represents the Quality of Products at Fabindia Quality of Products Highly satisfactory Satisfactory Average Unsatisfactory Highly Unsatisfactory No. 7 % feel it is highly satisfactory and none of them feel that they are highly unsatisfied by the Quality of Products at Fabindia Inference: Almost half of the respondents are satisfied by the Quality of Products at Fabindia. Of Respondents 7 52 27 14 0 Figure 12: Pie-chart representing the Quality of Products at Fabindia 52% of the respondents feel that they are satisfied by the Quality of Products at Fabindia.

33 .

Inference: Majority of the respondents said they would recommend Fabindia products to friends. of responses 35 22 11 13 14 Figure 13: Pie-chart representing the Recommendation of Fabindia 37 % of the respondents would recommend Fabindia to friends/relatives. so Fabindia can work on this segment to further enhance its business. 34 . 14 % to the tourists and 11 % of the respondents would recommend Fabindia to teenagers and college goers. 23 % would to business associates. relatives and business associates. 15 % to elderly people.7: To whom would you recommend Fab India? Table 10: Represents the Recommendation of Fabindia Recommendation of Fabindia Friends/ Relatives Business associates Teenagers/ College goers Tourists Elderly No.

35 . of Responses 42 11 8 21 18 Figure 14: Pie-chart representing the Word associated with Fabindia The 42% of the Respondents associate FabIndia as traditional and 21% of the Respondents says that it is Artistic and remaining associates it with other words as stated above.8: Which of the following words would you associate with Fabindia? Table 11: Represents the Word associated with Fabindia Word associated with Fabindia Traditional Indigenous Versatile Artistic Comfortable No. Inferences: Maximum Number of respondents associate it as traditional which tells that Fabindia highly keeps the traditional products in its strore.

Inferences: As the maximum part comprises of women product.11: Which of these products have you bought from Fabindia? Table 12: Represents the Products bought from Fabindia Products bought from Fabindia Garments (Men) Garments (Women) Accessories ( Duppattas. of Customers 24 31 9 8 4 6 18 Figure 15: Pie-chart representing the Products bought from Fabindia The women products are 31% of the total products in fabindia and 24% of the rest comprise of men product and remaining are of other category in which 4 % is least one which is for the organic food products. 36 . so the customers of Fab India are mostly comprises of women only.) Home Furnishings Organic Food Products Body Care Products Jewellery No. scarves etc.

confidence. confidence) c) Belongingness (Family. respect by others guide the consumer behaviours.12: Which of the following needs does Fabindia satisfies? a) Self Actualization needs b) Self Esteem needs (Respect by others. society) No. respect of others. achievement. friends. Of Respondents 7 59 34 Figure 16: Pie-chart represents the Fabindia Consumer as per the Maslow’s Need Hierarchy Theory As per Maslow’s hierarchy the Consumers of Fabindia fall in stage of esteem where self esteem. 37 . confidence) Belongingness (Family. friends. society) Table 13: Represents the Fabindia Consumer as per the Maslow’s Need Hierarchy Theory Fabindia Consumer Self Actualization needs Self Esteem needs (Respect by others.

Of people go for online shopping. 38 .13. only 5% of them go for this Trend. Inferences: As the online shopping trend has not yet come to India that is why there is less No. Have you bought any Products from the Fabindia Online Store? (Specify) Table 14: Represents the Online Shoppers from Fabindia Online shopping from Fabindia Yes No No.of Responses 5 95 Figure 17: Pie-chart representing the Online shopping from Fabindia 95% of the Respondents say that they do not go for online shopping.

Interview of Fabindia Store Manager 39 .

Mumbai (Maharashtra) and Store Manager. So how do you deal with customers in that case? Response from Mumbai Response from Indore Consumers understand if there is non We have taking customer phone numbers availability at some point of time. liked the store & product Inference: Awareness of consumers in Mumbai is more than in Indore. It’s the brand By giving the knowledge about fabindia & name that speaks for itself. Almost all the customers are Sometimes 10 to 12 everyday and they repeat customers. and when the product we received we can call the customer Inference: As the Indore store is relatively new. Are customers of Fabindia loyal customers? What does Fabindia do to acquire new customers? Response from Mumbai Response from Indore Virtually we do nothing. The products are not always available. their products & good service by staff to attract the new customer. Can you give an idea how many customers walk into Fabindia stores without knowing what the store is all about? Response from Mumbai Response from Indore Very few. 40 .Comparative analysis of Interviews with Zonal Manager Fabindia. 3. Indore (MP) 1. 2. There is an issue of supply chain with organic products. Fab India. so to capture the customers they take an extra effort to meet customer’s needs.

41 . the Indore store is relatively new.Inference: As discussed above. so to attarct the new customers they take an extra effort.

the visual merchandising of the stores needs to be improved dramatically. Also. 42 . It also needs to develop the online store and increase awareness about it. In order to increase awareness about the location of the stores.Chapter 9 Conclusion Recommendations Since the number of stores has more than doubled in the last four years. as the survey and the interview have pointed out. it needs to market itself more aggressively. it needs to consolidate its position and make sure that the supply chain problems are overcome.

so we will be extending our research further in our next semester. 2. TIME: We have to submit project within three months as well as we have to do our academic work. SAMPLE SIZE & SAMPLING: 4. MONETARY: As our study is self funded. we cannot invest too much amount for this project. It was not possible to do deep study with in short period of time.Chapter 10 Limitations of the study 1. 3. PLACE CONSTRAINT: 43 .

501-1000 .>2000 2: How much do you generally spend on Home Furniture and Furnishings per year? .Annexures Questionnaire QUESTIONNAIRE FOR CONSUMERS LOCATION: SEX: AGE: CURRENTLY WORKING AS: QUESTIONS: 1: How much do you generally spend on Clothes per month? .5000-10000 .Print Ads 44 . how did you find out about Fabindia? .10000-15000 .0-5000 .Internet .>15000 3: Have you heard about Fabindia If yes.0-500 .1000-2000 .SMS .

Traditional work .NRIs/ Tourists ..Business associates . .Word of Mouth .Elderly 6: Which of the following do you think was instrumental in your choosing to buy the products? Rank them on scale of 1 to 5 with 1 being the most important.Teenagers/ College goers .Gift certificates 4: Rate your experience at Fabindia in terms of your satisfaction level for the following: Highly Service Range of products available Visual Merchandise of the Store Quality of Products Satisfactory Satisfactory Average Unsatisfactory Highly Unsatisfactory 5: To whom would you recommend Fabindia ? (Tick whichever is appropriate) .Friends/ Relatives .Support to poor artisans 45 .

The ‘Fabindia’ Brand 7: Which of the following words would you associate with Fabindia? .Garments (Men) .Jewellery 9: Have you bought any Products from the Fabindia Online Store? (Specify) Yes _________________________________________________________ ______ 46 . scarves etc.Body Care Products .Versatile .Indigenous .Convenient Location of the store .Traditional ..Artistic .Accessories ( Duppattas.Comfortable 8: Which of these products would you buy from Fabindia? .Home Furnishings .Range of products available .Organic Food Products .Price .Service provided by the staff .Quality of the product .) .Garments (Women) .

No______________________________________________________ __________ 47 .

Appendices Annexure Bibliography 48 .

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