Arvind Ltd Marketing Plan

GROUP 5

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INDIAN TEXTILE INDUSTRY
• India Textile Industry is one of the leading textile industries in the world. Few years back it was an unorganized industry ,but the scenario started changing after the economic liberalization of Indian economy in 1991. • Currently it is estimated to be around US$ 52 billion and is also projected to be around US$ 115 billion by the year 2012. • Plays a major role in the economy of the country and earns 27% foreign exchange through exports. • Contributes 14% of total industrial production. • Contributes around 3% to the GDP. • Indian textile industry is second largest industry in India after Agriculture.
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3 . • Second largest producer of cellulosic fibre/yarn. • Second largest producer of silk. • Second largest producer of cotton yarn. • Fourth largest producer of synthetic fibre/yarn.INDIA’s POSITION IN GLOBAL TEXTILE INDUSTRY • India's position in the World Textiles Economy Second largest producer of raw cotton.

 In the early 1980s. the company brought denim into the domestic market.  India's largest & world’s fourth-largest producer and exporter of denim.Arvind Limited COMPANY OVERVIEW  Arvind mills was founded in 1931 and is based in Ahemdabad. denim. Lee.  Flagship company of Rs 20 billion (USD 500 million) Lalbhai Group. knits and bottomweights (Khakis) fabrics. 4 . thus started the jeans revolution in India. Newport and Excalibur but also licensed international brands like Arrow. India largest and worlds 3rd largest producer and exporter of denim.  Today it not only retails its own brands like Flying Machine. Wrangler and Tommy Hilfiger.  Manufactures a range of cotton shirting.

BRANDS OF ARVIND LTD IGTC 2008-10 5 .

 the company is one of the leading players in domestic ready-to-wear garments segment.Arvind Limited  Arvind is expanding its Denim manufacturing capacity to 140 million meters by setting up 30 million meters of denim manufacturing plant in Bangladesh. 6 . West Asia.  Denim contributes 60% of the company’s turnover. the Far East & the Asia Pacific in more than 70 countries.  Arvind caters to the high quality textile requirements of Europe. US.

 Cheap imports from China. innovation  Assurance of quality and consistency. Madura  Rapid growth in age group of Garments 15-44 years. IGTC 2008-10 7 Opportunity Threats .  Has the potential to become the Thailand Bangladesh market leader in kidswear.  Changing retail scenario Bombay Dyeing.SWOT Analysis Strengths Weakness  Continuous Product Development.  Competitors like Raymond.  Presence in only big cities  World class product & design  Premium pricing.  Delivery Adherence – on time every time.  Excise duty.

Marketing strategy STRATEGY OF MASS MARKET STRATEGY OF NICHE MARKET HYBRID PRICING STRATEGY IGTC 2008-10 8 .

9 . • Products should meet the requirements and the budget of the growing class to create huge market and demand for their products. • The places which attract huge crowds characterized by middle and higher middle class can be chosen for product placement and promotion. • The product is made available to the target customer in lower prices with the necessary feature required by the customer.STARTEGY OF MASS MARKET • Mass market strategy is one which helps the organization to achieve its long term benefits.

The target customer needs customize and specialized products and this strategy helps to build strong brand Image. • The requirement of the market is highly specialized and specific. • The target customers under this strategy are those who value the product quality and design and are higher income group people. 10 . • The best promotion strategy for this segment is in the fashion magazines.STRATEGY OF NICHE MARKET • Niche marketing refers to a product or a service that accounts for a certain kind of specialty concerning customer need andcompany concentrates on small target market.

• It depends upon the quality of products demanded in each place. 11 . stocking more high quality and high priced products in big cities and comparatively lesser in medium and small cities. they will be sold at premium prices. For example. • In metros. In other cities they will be sold at comparatively lower prices.HYBRID PRICING STRATEGY • The hybrid strategy means that the products would be priced according to the place they are sold at. products should be sold geographically according to the pocket capabilities of the consumers in each state and city covered. • The crux being.

COMPETETOR ANALYSIS IGTC 2008-10 12 .

MARKET-CUSTOMER SURVEY IGTC 2008-10 13 .

5 2.2 1.Consumer preference Criteria when choosing the Fabric Each Consumer was asked to rank the factors according to their preference 1=Most preferred 2=Preferred 3=Neutral 4=Least Preferred 5=Not Preferred COMPONENT PRODUCT ATTRIBUTES COSTUMER SURVEY FACTOR FEEL QUALITY/DURABILITY DESIGN COLOUR PATTERN COMFORT FINISH 1.4 4.9 PREFERRED NEUTRAL PLACE RECOMMENDATION OF RETAILER EVERYTHING UNDER ONE ROOF PROXIMITY OF THE STORE PARKING SPACE 4.2 4 3.1 AVERAGE RATING COMMENTS MOST PREFERRED MOST PREFERRED PREFERRED PREFERRED PREFERRED MOST PREFERRED PREFERRED PROMOTIONS BRAND IMAGE 2.5 1.8 NEUTRAL LEAST PREFFERED NOT PREFERRED PRICING PRICE DISCOUNT OFFER/FINANCIAL SCHEMES 2.7 3.4 2.1 LEAST PREFFERED LEAST PREFFERED LEAST PREFFERED NEUTRAL 14 .3 2.3 4.1 PREFERRED RECOMMENDATION OF FRIENDS AND NEIGHBORS ADVERTISEMENTS DETAILED SELF-EXPLANATORY BROCHURES 3.6 2.3 2.

Pattern. Everything under one roof. finish • Neutral factors: Discount/Schemes. Parking space and recommendation of Friends • Least Preferred: proximity of stores.ANALYSIS OF THE CHOOSING THE FABRIC • Most Preferred Factors: Feel. Recommendation of retailers and advertisement • Not Preferred Factor: A detailed self-explanatory brochure 15 . Quality and Comfort • Preferred Factors: Design. Color.

Age No of Response Percentage % • • • • • • 25 – 30 30 -35 35 – 40 40 – 45 45 – 50 Above 50 28 32 18 10 12 0 28 % 32 % 18 % 10% 24% 0% IGTC 2008-10 16 .Majority of Consumers surveyed are falling into 25 -30 (28%) and 30 – 35 (32%) in age group.

Job 24 • Any other 4 Percentage 8% 38 % 26 % 24% 2% Majority of Consumers are falling into Business (38%) and Private Job (26%) group 17 .Occupation of buyers Category No of Response % • Student 8 • Business 38 • Private Job 26 • Gov.

Earnings of buyer Category • • • • • • No of Response Percentage % 4 16 42 22 10 6 4% 16 % 42 % 22% 10% 6% Less than 1 Lakh 1 – 2 Lakh 2 – 4 Lakh 4 – 6 Lakh 6 – 8 Lakh Above 8 Lakh Majority of Consumers are earning 2-4 Lakh (42%) and 4-6 (22%) Lakh per Annum 18 .

30% 25% 20% 15% 10% 5% 0% Plain Whites Stripes Printed Checks Embroidery 19 .As per survey Most Consumers prefers Checks and Stripes while Buying Shirt fabric.

60% 50% 40% 30% Series1 20% 10% 0% Plain Whites Stripes Checks IGTC 2008-10 20 .As per survey Most Consumers prefers plain and stripes while Buying Suit fabric.

As per survey Most Consumers are inspired by reference from friends and Ads in Newspaper to buy fabrics 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Local ads in Newspaper Hoardings Reference from Friends Retailer's Recommendation IGTC 2008-10 21 .

Effort should be done to increase brand awareness. Chart Title Yes 22% No 78% 22 .Majority 78% of the respondents are not aware of Arvind store near their area.

• • • 23 . Sales increases during festivals compare to other seasons of the year.000 or above.35 having monthly income of 40. In Shirting Arvind is the most preferred brand of the customers while Design is the most important attribute followed by Quality and Color.Key findings of the Customer survey • The survey shows that most of the customer that visits a store for men’s formal wear belongs to the age group of 35 or above followed by the age group of 30. As per the survey Raymond is the most preferred Suiting brand of the customers while design is the most preferred attribute followed Quality and Color for them while shopping for Suiting.

800.10000 and the second preferred price range is Rs. Most of the Customers showed interest in buying Perfume along with fabric followed by Shocks. In Suiting most of the customers preferred to by Suiting fabric within the price range of Rs. 6500. 16000. that customer want to buy with fabric.2000.1400 or Rs. Ties. Most of the Customers like to wear Cotton mix fabric followed by 100% Cotton fabric. Wallet. Suit Pin. The survey shows that customers prefer to wear Plain Suits and Trousers followed by stripes fabric and while in Shirting Checks Fabric and Stripes Fabric is most of the customers favorite followed by plain fabric.1400.• • • Customers prefer to buy Shirting fabric within the price range of either Rs. 24 .22000. etc.

Customers are interested in stitching the fabric by Tailors of their own choice rather than to stitch it by the retailer.• As per the survey most of the customers never exchanges fabric after purchasing however those who exchanges sometimes is mainly because of Color bleeding and Design defect. Word of Mouth. Among newspapers most of the respondents read Times of India. Radio etc. • Newspaper is the most common source of customer knowledge about various sales promotion and the other common sources are Banners and Hoardings. TV. movie ticket is the next • • 25 . accordingly. When it comes to offer customers are more interested towards free gifts and instant discounts.

Segmentation TARGET CUSTOMERS • There is a specific target market for these fabric products. And get 50% sales from the IV and V tier cites.e. 26 . the business class . i. career oriented people and professionals. • It targets the metro cities basically tier I. II and III cities • Arvind had 30% sales in these cities. Generally. Targeting: Male (20-45 years) .

printed fabrics apart from the cotton and cotton blends in Linen. Silk etc. Lycra. IGTC 2008-10 27 . And the use of Giza cotton and vat color made the differentiation. Polyester.Positioning • In shirting category Arvind include fabrics with non-iron properties. Differentiation • The finishes like liquid ammonia (first used by Arvind). mechanical finishes. Modal. with varieties in yarn dyed and solids. made the fabric high in quality and feel.

IGTC 2008-10 28 .

IGTC 2008-10 29 .

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