CASE ANALYSIS ON MADURA GARMENTS

BY GROUP 5 SUNITH VIKRAM ABHINAV SHARMA BHASKAR THAKUR SHRIHARI

trousers and mid-priced trousers . midpriced shirts .INTRODUCTION y MG is a division of Indian Rayon Industries Ltd y Madura garments is one of the leading manufacturer of branded apparels y In December 2002 they announced their plans of entering into fashion and accessories segment of the countries branded men·s wear segment y In 2002 MG was the undisputed leader in 60 billion ready to wear business with a 25% market share y It was supreme in categories like premium shirts .

BRANDS OWNED BY MG Madura Garments .

MIDPRICED and ECONOMY y MG identified a great potential in Indian heavy Indian middle class segment Lower Class .STRATEGIES OF MG y Change in the Indian customer Upper Class Middle Class mindset during mid 1980·s y There was change in economic and social status y The Indian garment market was segmented into 3 broad segments PREMIUM .

ENTRY OF MG INTO THE MARKET y It entered the market by Madura coats a 51% subsidiary of the uk based J&P coats ltd (1989) y It operated 3 divisions such as Madura garments(readymade clothing) Coats India(threads division) Madura textiles(fabric supplier) y MG launches ¶Louis Philippe· as a premier designer wear product for men (Rs 900-1400) y It gave tagline ¶The Upper Crust· to convey its premium positioning .

LAUNCHING OF BRANDS y In the year 1990 MG launches ¶Van Heusen· in the premium y y y y segment It was a premium quality ready made shirts for the office goers (Rs 1050 onwards) It was marketed as having the image of ¶Classic British Corporal· In the year 1991 it launched ¶Allen Solly· shirts and trousers in the market with the tag line ´Casual American Attitude·· It·s price ranged from Rs 695-1295 to market the especially middle class people .

COMPETITORS FOR MG Competition for MG .

MARKET CAPTURE THROUGH ¶PETER ENGLAND· y In the year 1997 MG made a first move of launching brand named ¶Peter England· y It targeted young executives age group of 25-28 years y This brand was mainly launched for the mid-segment price . It ranges from (Rs 345-445) for shirts and (Rs 645-745) for trousers y It became one of the branded shirts in India. It was positioned as ¶Honest shirt· that offered worth the money .

Place. Price & Promotion . It sold 2 million shirts y It·s brand worth Rs 700-Rs 900 million y It captured the market because of these factors y y y y Quality Pricing Distribution High decibel advertising y Created a ´Brand PULLµ Peter England is a very good example of a good combination of 4 P·s of Marketing ² Product.MARKET CAPTURE THROUGH ¶PETER ENGLAND· y Peter England's mid ²pricing approach paid off y It became an instant success within one year of its launch.

COMPETITION IN CAPTURING THE MARKET y During 1998-1999 arvind mills launched ¶EXCALIBUR· y It ranged between Rs 450-650 . y It introduced shirts in ¶fruit colors· y Other brands like Mafatlal with its ¶TRENDZ· y Pricing it between Rs 399-599 y Pantaloon·s john miller also entered the mid-price segment .

non-iron shirts Introductory price of Rs 525 As this was not in line with its earlier ¶popular pricing· policies Since the maximum growth was in mid-priced and economy segments It was moving to the premium end and met with lot of criticism .CRITICISM OF PETER ENGLAND y MG launched wide variety of shirts under the peter england y y y y y brand They introduced wrinkle free .

peach finish and anti-wrinkle fabrics It mainly targeted mid-price segment Casual wear business was growing at 25% per annum 5% for midpriced formal wear MG in late 1999 was san frisco which offered only trousers in mid-price segments .Rs 595 Elements range were available in over 70 designs including enzyme wash .TEST MARKETS OF MG y MG decided to introduce new offerings in the market y In august 1999 it introduced sub-brand named ¶ELEMENTS· y y y y y under peter England This casual wear segment and was priced between Rs 395.

GROWTH OF MG y In the year 1999 MG announced to bring all it·s brands under y y y y y one roof They opened mega stores in cities like Mumbai . Chennai . pune In Dec 1999 Indian rayon acquired the ownership of MG They have many stores around the country like planet fashion stores and Trouser Towns They had entered the segment of manufacturing readymade suits in all its segment brands MG recorded a growth of 41% growth in first half of 2000 as compared to their previous year .

GROWTH OF MG .

STRATEGIC DECISIONS OF MG y MG wanted to introduce new products by leveraging peter y y y y y England strengths The fact that company·s trouser business grew by 400% In may 2001 it made it·s restructuring of it·s brand It raised the retail price of SF(san Frisco) it raised to (Rs 795Rs 999) . For premium segments ¶Louis phillipe stretch· under Louis phillipe made an innovative stretchable fabric MG·s strategy was to launch 3 new brands every 8 months .

GROWTH OPP0RTUNITIES OF MG y MG announced new product lines for it·s brands in the premium segment y They were summer spring collection under Louis Phillipe named ¶MOZART· y ¶MOZART· was the first labeled brand that was launched in India as well as international y ¶ICE TOUCH· shirts which had absorption-transportationevaporation which was an revolutionary in cooling technology .

GROWTH OPP0RTUNITIES OF MG y However their growth rate was not high due to sluggish in y y y y economic conditions in the year 2002 Their sales in shirts fell by 12% in the first quarter MG launches an ¶Big collection· for obese people It was priced between Rs 999-Rs 1299 and trousers between Rs 999-Rs 1499 They used the tagline ¶for those who are larger than life· .

ENTERING NEW MARKET y San Frisco jeans revolved around the theme ¶Be Game· y It failed to capture the market especially young people it lost y y y y y out to levis . In 2003 they have introduced leather products in the premium brands Van Heusen was positioned as ¶complete corporate brand· In June 2003 MG announced repositioning of Byford MG announced that peter England would add readymade suits to its portfolio` . lee . pepe Another reason why it failed miserably was due to Ruf and Tuf by Aravind mills. wrangler .

Hence Peter England should stop moving into the Higher Priced segments as this can kill the brand y Repositioning of the brand Peter England will not sink well with the Indian Customer as its already perceived as a Mid-segment brand .CONCLUSION y MG can sustain its No ² 1 position in the markets as it relies heavily on the product innovation and as they have created Brand Pull for all its products y The company should mainly focus on releasing more products in mid-price segments y Peter England was launched as mid-segment brand catering to the middle class of the Indian pyramid.