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CHAPTER 1

Introduction

1.1 Overview of the industry

Organized retail business is a comparatively new phenomenon in


India, and is still in the process of finding its feet in terms of location, size,
format, product ranges, and segment targeting. Retail Industry in India,
contributing over 10 per cent to the countrys GDP and accounting for
around 8 per cent of the employment, is the largest among all the
industries. Over the years, it has come forth as one of the most dynamic
and fast paced industries. More than 95 per cent of the Indian retail sector
falls in the unorganized sector category. Organized retail is expected to
grow from 5-6 per cent to 14-18 per cent of the total retail market by
2015.

Organized retail sectors penetration level is 85 per cent in US, 80


per cent in France, 66 per cent in Japan, 20 per cent in China and, merely
5-6 per cent in India. This confirms that India is at an early stage of
evolution in the organized retail space and has a huge growth potential.

In the coming years both unorganized and organized retail will see a
massive scaling up of their activities and are set to achieve rapid and
sustained growth. At this juncture both the government and industry
circles are taking efforts to boost the growth of the organized retail sector,
but little is done for the growth of the unorganized retailers. In spite of this
indifference, traditional retailers are making efforts to face stiff
competition from organized retailers.

Once the clothes have been designed and manufactured, they need
to be sold. But how are clothes supposed to get from the manufacturer
and marketed to the customer? The business of buying clothes from
manufacturers and selling them to customers is known as retail. Retailers
make initial purchases for resale three to six months before the customer

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is able to buy the clothes in-store. Fashion marketing is the process of
managing the flow of merchandise from the initial selection of designs to
be produced to the presentation of products to retail customers, with the
goal of maximizing a companys sales and profitability. Successful fashion
marketing depends on understanding consumer desire and responding
with appropriate products. Marketers use sales tracking data, attention to
media coverage, focus groups, and other means of ascertaining consumer
preferences to provide feedback to designers and manufacturers about
the type and quantity of goods to be produced. Marketers are thus
responsible for identifying and defining a fashion producers target
customers and for responding to the preferences of those customers.

Marketing operates at both the wholesale and retail levels.


Companies that do not sell their own products at retail must place those
products at wholesale prices in the hands of retailers, such as boutiques,
department stores, and online sales companies. They use fashion shows,
catalogues, and a sales force armed with sample products to find a close
fit between the manufacturers products and the retailers customers.
Marketers for companies that do sell their own products at retail are
primarily concerned with matching products to their own customer base.
At both the wholesale and the retail level, marketing also involves
promotional activities such as print and other media advertising aimed at
establishing brand recognition and brand reputation for diverse
characteristics such as quality, low price, or trendiness.

Closely related to marketing is merchandising, which attempts to


maximize sales and profitability by inducing consumers to buy a
companys products. In the standard definition of the term, merchandising
involves selling the right product, at the right price, at the right time and
place, to the right customers. Fashion merchandisers must thus utilize
marketers information about customer preferences as the basis for
decisions about such things as stocking appropriate merchandise in
adequate but not excessive quantities, offering items for sale at attractive
but still profitable prices, and discounting overstocked goods.
Merchandising also involves presenting goods attractively and accessibly
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through the use of store windows, in-store displays, and special
promotional events. Merchandising specialists must be able to respond to
surges in demand by rapidly acquiring new stocks of the favoured
product. An inventory-tracking computer program in a department store in
London, for example, can trigger an automatic order to a production
facility in Shanghai for a certain quantity of garments of a specified type
and size to be delivered in a matter of days.

By the early 21st century the Internet had become an increasingly


important retail outlet, creating new challenges (e.g., the inability for
customers to try on clothes prior to purchase, the need for facilities
designed to handle clothing returns and exchanges) and opening up new
opportunities for merchandisers (e.g., the ability to provide customers
with shopping opportunities 24 hours per day, affording access to rural
customers). In an era of increasingly diverse shopping options for retail
customers and of intense price competition among retailers,
merchandising has emerged as one of the cornerstones of the modern
fashion industry.

Keeping that all in consideration we can say that fashion and


apparel industry is booming now than it ever in past and with the
incoming of e-commerce they have reached a far more beyond current
reach and the level of influence in buyer has gone to the next level.

Today in India we can find more than 1000 brands who are into this
industry and, they are joined by other brands every single day and week.

1.2 INDUSTRY PROFILE

The worldwide retail industry is one of the most important


sectors of the economy with regard to investment, revenue, and
trade and employment generation all over the world.

The retail industry in India has substantially diversified on the


basis of fashion, climate, region, culture and fiscal factors. Indian
textile is witnessing great growth and development in the industrial

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sector in India as well as in abroad. The significance of the apparel
industry is entirely based on the contribution of the industrial
productivity and the employment.

Retail sector includes all the shop that sell goods to the
ultimate customers, who buy them for personal and not business use.
it encompasses all kinds of shops, from kiosks and small groceries to
supermarket chains and large department stores. In addition to
traditional bricks and mortar shops, the retail sector includes mail
order and online businesses.

The Indian retail industry also has a vast existence in the


economic life of the country. It plays a critical role in the economic
development of the country with its contribution to industrial output,
export earnings of the country and the generation of the
employment.

The Indian retail industry has seen remarkable changes in the


past few years and it is also one of the Indias largest foreign
exchange earners. Embroidery being the traditional art form of the
country has contributed hugely for apparel industry. Indian
embroidery market stands out as being extra ordinary in the
international markets.

Indian Textile

India being the second biggest textile manufacturer worldwide


possesses all the strong features of being addressed as a well
established textile industry. The Indian textile industry contributes
about 14 per cent to industrial production, 4 per cent to the countrys
gross domestic product (GDP) and 17 per cent to the countrys export
earnings according to the annual report of 2010-2011 of the ministry
of textiles.

Textile manufacturing is not only a pioneer activity in the


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manufacturing sector but it also main source of revenue. Indian
textiles have a huge demand globally because they are being
exported to various countries. Extensive ranges of Indian projects are
extremely elegant and are a reflection of Indian culture.

This industry is a major employment generator by employing


almost 35 million people in textile industry. In todays world the
Indian textile industry is one of the most booming sectors in the
industrial world. One can experience it by viewing the increase in
demand of apparel and clothing among the consumers. The
government of India has guidelines in the form of Indian textile acts,
Indian textile policies etc for Indian textile Industry.

The Indian retail market, which is the fifth largest retail


destination globally, has been ranked as the most attractive
emerging market for investment in the retail sector by AT Kearney's
eighth annual Global Retail Development Index (GRDI), in 2009.As per
a study conducted by the Indian Council for Research on International
Economic Relations (ICRIER), the retail sector is expected to
contribute to 22% of Indias GDP by 2010.

India's Apparel Retail Market

The Indian retail industry undergoes major revolutions. The


consumer buying patterns and behavior are changing. The growth of
Indias retail sector is not only limited to urban areas but also growing
in rural areas.

Comprising of organized and unorganized sectors, India retail


industry is one of the fastest growing industries in India, especially
over the last few years. Though initially, the retail industry in India
was mostly unorganized, however with the change of tastes and
preferences of the consumers, the industry is getting more popular
these days and getting organized as well. With growing market
demand, the industry is expected to grow at a pace of 25-30%
annually.
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The apparel retail market sector consists of the sale of all mens
wear, womens wear and infants wear. The mens wear segment
consists of retail sale of under garments for mens and boy's. The
womens wear retail market consists of the retail sale of all womens
and girls garments including dresses, suits and coats, jackets, tops,
shirts, skirts, blouses, sweatshirts, sweaters, underwear etc. The
infants wear retail market segment includes sales of garments for
children between the ages of 0-2 years.

Growth of Indian Retail Industry

Retail in India is one of the pillars of its economy and accounts


for 14 to 15 percent of its GDP. The Indian retail market is estimated
to be US$ 450 billion and one of the top five retail markets in the
world by economic value. India is one of the fastest growing retail
markets in the world, with 12 billion people. India's retail and logistics
industry, organized and unorganized in combination, employs about
40 million Indians (3.3% of Indian population).The typical Indian retail
shops are very small. Over 14 million outlets operate in the country
and only 4% of them being larger than 500 sq.ft. According to the 8th
Annual Global Retail Development Index (GRDI) of AT Kearney, India
retail industry is the most promising emerging market for investment.
In 2007, the retail trade in India had a share of 8-10% in the GDP
(Gross Domestic Product) of the country. In 2009, it rose to 12%. It is
also expected to reach 22% by 2010.

According to a report by North bride Capita, the India retail industry


is expected to grow to US$ 700 billion by 2010. By the same time, the
organized sector will be 20% of the total market share. It can be
mentioned here that, the share of organized sector in 2007 was 7.5% of
the total retail market

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1.3 COMPANY PROFILE
Max, the largest fashion retailer in the Middle East offers
fashion, clothing, footwear, accessories, and household products at
amazing value, all under one roof. Max is a division of Lifestyle
International Pvt Ltd., which is a part of Landmark Group.

About Landmark Group

The Landmark group, founded in 1973 with a single shop in


Bahrain has grown into one of the largest retail organization and is
expanding rapidly in India. It currently operates over 900 stores
across the region. In addition to its retail sector, the Group has also
diversified into leisure, food, hotels and electronics and has created a
comprehensive infrastructure including its own logistics and
distribution division, to support its retail operation and other
business.

The highlights of Landmark group are its product and concept


innovation. The entire retail experience revolve around its concept
stores, which have been designed and engineered to suit evolving
customer needs and life styles.

MAX is the international value fashion brand of the Dubai based


Landmark Group. The brand was launched in the UAE in may 2004
with a unique concept of delivering international fashion & value to
the discerning shopper.MAX was introduced in India with its 1st store
in Indore in 2006 offering apparel, footwear &accessories for the
entire family; for women, men, children including a fashionable range
for infants. With a great range of western & ethnic wear for the
young shopper, it makes a perfect shopping destination for people for
all age groups.
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At MAX Shoppers can expect the largest in international fashion
from around the globe & an excellent range to choose from ;all of his
offered at great prices in the world class shopping environment.MAX
retails its own label merchandise of in house designs and planned
colour palettes for the season. Every season it introduces a fresh
collection of international designs specially customized to the Indian
market. The brand adapts to the changing needs of the shopper
every season and accordingly introduces new designs, silhouettes&
fabrics. Today, MAX is the largest value fashion brand in the Middle
East with over 200 stores across 15 countries. In India the brand in
the next 2 years, will take its current store count of 100

MAX offers fashion clothing, footwear, accessories and


household products at amazing value, all under one roof.

Launched in UAE in May 2004, max is today the largest value


fashion retail chain in the Middle East. Max caters to the mid - market
section of the population. With 150 stores across UAE, KSA, Jordan,
Kuwait, Bahrain, Qatar, Turkey, Egypt, Yemen& India, MAX plans to
expand its network in more potential markets within the Middle East&
beyond. With stores that typically measure 18,000- 30,000 sq. ft.
MAX retails private label clothing for men, women and children as
well as footwear and home accessories. A great shopping experience
with fashionable products at superb value is an assurance that makes
MAX customers LOOK GOOD.FEEL GOOD.

Max India proposition

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C
W id e o
R a n g e r
in M id e
S e g m e &
Q u n t
a Al i p p a r e
t y l,
R e
t a i
l
Fig 1.1 Max fashion India Proposition

Key Facts about MAX India

Landmark Group (Dubai) launches the first Max stores at Indore


in March 2006.
Contemporary fashion at affordable prices.
International design & ambience.
Average Store size 18,000 sq.ft.
Family store with core Target audience between 18-35 years.
111 stores functional by 2015.

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MILSTONE OF COMPANY

IN YEAR 06-07 MAX started and in that year we did 27 cr... From
then to now in year 13- 14 the sales are estimated to be Rs.
2000 cr.
more than 100 locations.
One million Sq.ft( Retail space).
Rs.10,57cr Sales.
Sales Mix 93% from fresh season
19 stores in Karnataka
2 new stores

Passion for excellence:

Max is committed to setting industry benchmarks be it our


product or practices. Our doctrine is to strive and maintain the
lead in whatever we do, with strict adherence to quality and
delivering value for money.
Integrity in everything max does.
Business is driven by trust, strong ethics and mutual respect.
Empowering people to strive and deliver:
Our core strength is our employees. We believe in giving our
personnel the opportunity and responsibility that are integral to
their professional and Group's success.
Adapting to changing market and customer needs;
Max offerings keep evolving to address changing and discerning
consumer needs.

Achievements

Most Respected Company in the Retail Sector by Business


World IMRB in 2003 and 2004.
ICICI KSA Techno park Award for Retail Excellence in 2005
Lycra Images Fashion Awards for the Most Admired Large
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Format Retailer of the Year in 2006.
Reid and Taylor Retailer of the Year award for the year 2006
Most Admired Retailer of the Year Department Store from
Images Retail in 2008
Most Admired Retailer of the Year - Home & Interiors Category
for Home Centre by Lifestyle from Images Retail for two
consecutive years, 2009 & 2010
10th Best company to work for in India
NO.1 Indias Best Company In Large Organizations (10,000 +
Employees)
NO.1 India Best company to Work for in Retail.
Great Place To Work

Business
As one of the largest retail conglomerates in the Middle East and
in India, the Landmark Group has a diverse portfolio of retail and
hospitality brands.

Retail Brands (16)


Hospitality Brands (7)
Mall Management (1)
The Landmark Group provides value-driven product range for the
entire family through a diverse portfolio of core retail brands.
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Fig 1.2 Landmark Group Brands

1.4 MAX RETAIL


Max is a fashion and footwear retailer in the Value Segment.
Max retails its own label clothing for men, women and children, as
well as footwear. Max is today the largest value fashion retail chain in
the Middle East. Max caters to the mid market section of the
population, Max is a shopping destination for the entire family with a
wide range over 60000 options for men, women and children besides
footwear and accessories. The brand offers contemporary fashion
apparel with great quality at affordable prices.

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With 114 stores across UAE, KSA, Jordan, Kuwait, Bahrain,
Qatar, Oman, Turkey, Egypt, Yemen and India, Max plans to expand
its network in more potential markets with the Middle East and
beyond. A good shopping experience with fashionable products at
great value is an assurance that translates unto marketing customers
Look Good, Feel Good with Max.

History of Max retail

Max a value retail store for the family was launched in May
2004 in the UAE, with stores that typically measure between 18,000
and 30,000 Sq.ft. Max Retail, the group lifestyle arm with a presence
in eight cities, will be branching out to tier-1 and tier-2 cities with 12
stores. The company plans to pump in Rs 350 cores for expansion.

Their commitment

They will always strive to grow with their consumers. In the


process they will provide products and services that are:

Great value for money


Fashionable and Contemporary
On par with global standards
In order to ensure consistent customer satisfaction, they will
ensure that the brand and shop level experience across all its outlets,
in all the markets it operates in, is not only living but offers the
highest degree of customer satisfaction. This will reflect not only in
the way they conduct their business but equally in all their
communications with employees, business partners.

Their Mission and Vision

To create a truly global brand that provides growth


opportunities for the company and its employees, whilst achieving its

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goal for becoming the number one value fashion retailer across the
Middle East and India.

Their Mission Statement

Be a market leader in the field of value of retailing.


Provide fashionable products at affordable prices.
Be innovative, cost effective and globally competitive.
Exceed their customers expectations.
Provide opportunities of growth for their employees.

Their Core Values

Constant focus and development on the product and value


offered.
Continuous improvement of the customers shopping experience
Commitment towards staff training and development.
Encouraging open work culture.

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CHAPTER 2

Literature review
This chapter presents the theories, concepts, hypotheses, and models that
are underpinning the real problem faced by the MAX fashion

In general, a literature review is a means to explain and analyze


investigation that has been conducted and studies that have been published
on the research topic. Not only should relevant literature be summarized,
but it should also be reviewed critically in order to detect areas for further
research.
Tayler and Procter, 2006

In the broadest sense of the word, the definition of research includes


any gathering of data, information and facts for the advancement of
knowledge.
- Martyn Shuttleworth, 2008

A studious inquiry or examination; especially : investigation or


experimentation aimed at the discovery and interpretation of facts, revision
of accepted theories or laws in the light of new facts, or practical application
of such new or revised theories or laws.
- Merriam-Webster Online Dictionary, 2011

Marketing research is define as function that links the consumer,


customer and public to the marketer through information-information used
to identify and define marketing opportunities and performance; to
generate, refine and evaluate marketing actions; to monitor marketing
performance; and to improve understanding of the marketing process.
Marketing research specifies the information required to address these
issues, designs the methods for collecting information, manages and
implements the data collection process, analyses and communicates the
findings and their implications.

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- Philip Kotler, 1994

Research is a process of steps used to collect and analyse information to


increase our understanding of a topic or issue".
It consists of three steps:
Pose a question,
Collect data to answer the question,
and present an answer to the question.
- Creswell, 2008

The goal of qualitative description study is not thick description


(ethnography), theory development (grounded theory) or interpretative
meaning of an experience (phenomenology) but a rich description of the
experience depicted in easily understood language.
- Sullivan-Bolyai, Bova & Harper, 2005

A qualitative descriptive approach offers the opportunity to gather rich


descriptions about the immigrant experiences which research up until now
has learned little about. The researcher works hard to stay close to the
surface of the data and events where the experience is described from the
viewpoint of the participants
Sandelowski, 2000

Three fundamental types of research interviews: structured, semi-


structured and unstructured. Structured interviews are, essentially, verbally
administered questionnaires, in which a list of predetermined questions are
asked, with little or no variation and with no scope for follow-up questions to
responses that warrant further elaboration.
- P. Gill, 2008

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Unstructured interviews do not reflect any preconceived theories or
ideas and are performed with little or no organisation. Such an interview
may simply start with an opening question such as 'Can you tell me about
your experience of visiting the dentist?' and will then progress based,
primarily, upon the initial response.
- K. Stewart, 2008
Semi-structured interviews consist of several key questions that help
to define the areas to be explored, but also allows the interviewer or
interviewee to diverge in order to pursue an idea or response in more detail.
- B. Chadwick, 2008
In-depth interviews take the researcher into the heart of the
phenomenon classifying and organizing an individuals perception of
reality.
- Fetterman, 1998

Qualitative descriptive studies follow the six analytic strategies in


analysing the data as:
Code data collected from observations and interviews
Record insights and reflections on the data
Sort through the data to identify similar phrases, patterns, themes,
sequences and other important features.
After sorting, extract commonalities and differences for further
consideration and analysis.
Gradually decide on a small group of generalizations that hold true for the
data
Examine these generalizations in light of knowledge that is known.
- Miles and Huberman, 1994

A sample is the collection of people who were selected for a given


research study.
- Frankfort-Nachmias & Leon-Guerrero, 1997

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After some of the research data has been collected, simple
computations are applied to determine how many responses will be needed
to ensure reliability.
- Reinard, 2006

Once this number has been achieved, analysis determines whether a


significant level of reliability has been achieved and in the rare cases it has
not, then more data is collected in an attempt to increase power in the study
and allow for statistical significance
- Kalton, 1983
Sampling essentially involves a system of selecting a population
representation from the general population depending on the objective of
the study, availability of money, time and effort in gathering research data.
- Mercado, 2006

Sampling as the identification of research population which will


provide all information necessary for answering the original question.
- Gill and Johnson, 2002

Research design is in general structure or framework of research that


is developed in order to conduct research.
- Malhotra, 2002

Sample size is important for economic reasons: An undersized study


can be a waste of resources for not having the capability to produce useful
results, while an oversized one uses more resources than are necessary.
- Russell V. Lenth, 2001

Need is something that people cannot do without; a want is the


method by which people would like the need to be satisfied. Demands are
wants for specific products backed by an ability to pay.
- Cartwright, 2000

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Product is anything that can be offered to a market for attention,
acquisition, use, or consumption that might satisfy a want or a need.
- Philip Kotler

A product variant is a specific item that is grouped with related


variants that together form a product. Variants usually vary from each other
in one or more properties.
- Microsoft, Msdn

A brand is a name, term, sign, symbol, design, or a combination of


these that identifies the product or services of one seller or group of sellers
and differentiates them from those of competitors.
- Philip Kotler

A brand represents everything that a product or service means to


consumers.
- Philip Kotler

Market segmentation is to divide a market into smaller groups of


buyers with distinct needs, characteristics, or behaviours who might require
separate products or marketing mixes.
-Wendell R. Smith, 1950
Segmentation is the process of dividing the market into groups of
customers or consumers with similar needs. The more closely the needs
match up, the smaller the segment tends to be, but the higher the premium
customers are likely to be prepared to pay to have a product that more
exactly meets their needs.
-Blythe, 2003

Catchment analysis is originally a study to identify an ideal location for


establishment of a new retail outlet but it can be helpful to identify potential
customer base in any geographical area for existing retail outlets. This study
includes study about various geo-demographic factors like occupation,

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mother tongue, education standard etc. and help in understanding customer
preferences, accessibility in buying, purchase intentions buying patterns and
likelihood of buying for the group of products that the retailer deals with and
level of competition in that area.

-- Gill and Johnson, 2002

Marketing in operational level is the set of activities that an organization


does to a serve its customers. These include at least brand and image
building, marketing communications, loyalty programs and forecasting
development of consumer needs, market changes and technological
development. On a company level, marketing seeks to achieve customer
preference and that way, profitable business performance as its own, key
objective.
-Ambler 2003, 21; Achrol & Kotler 1999, 147

The marketing-sales relationship is a complex one, consisting of many


different elements. In academic articles, it has often been analyzed from
only one or few perspectives
- Matthyssens & Johnston 2006.

`Marketing in operational level is the set of activities that an organization


does to a serve its customers. These include at least brand and image
building, marketing communications, loyalty programs and forecasting
development of consumer needs, market changes and technological
development. On a company level, marketing seeks to achieve customer
preference and that way, profitable business performance as its own, key
objective.
-Ambler 2003, 21; Achrol & Kotler 1999,147
Sales activities include activities designed to promote customer purchase
of a product or service in order to generate positive cash flow for the
organization

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-Levitt 1960; Dictionary 2010

"Sales promotion is the direct inducement or incentive to the sales force, the
distributor or the consumer with the primary objective of creating and
immediate sale"
(Shultz, Robinson 1982)

"Sales promotion is the methods or techniques for creating public


acceptance of or interest in a product, usually in addition to standard
merchandising techniques, such as advertising, and personal selling;
generally consisting of the offer of free samples, gifts made to purchaser
etc.
(Random House Unabridged Dictionary 1983)

"Sales promotion represents those marketing efforts that are supplementary


in nature, are conducted for a limited period of time and seek to induce
buying " (Davis, 1981) b. Sales promotions are all marketing activities that
attempt to stimulate to quick buyer action or attempt to promote immediate
sales of product"
(Shimp, 1993)

All those definitions are stressing different aspects of sales promotions and
all of them are correct ones. There are several common characteristics that
might be drown out of these definitions
(Blattberg, Neslin 1990)

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CHAPTER 3

3.1 Problem statement:

Development of Marketing Mix For an upcoming Max Fashion in,


Brookfield, Bangalore

3.2 Background of the study:

Organized appeal industry has bought many changes in the buying


habits of people. It has created formats which provide customer satisfaction
and value for money. To attract more number of customers, companies have
to carry out various activities in unique way. Max fashion has maintained
that unique and has succeeded in attracting more number of customers.
Therefore the basic objective of study is to capture marketing Mix of the
seven identified competitors of Max fashion in the given catchment and to
develop the marketing Mix and understanding its marketing strategy for the
upcoming Max fashion Store in Cosmos Mall, Bangalore with a competitive
edge

3.3 Need for the study

India is having huge customer base having different choice and


behavior. To satisfy their need is a different task. Different retail outlets are
offering different scheme and promotional strategy. Thus a catchment area
analysis has been conducted to develop the marketing mix for the upcoming
store and to know the effective marketing strategies needed to attract new
as well as retaining the existing customer

3.4.1Primary objective

1. To identify the competitor in and around the given catchment.

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2. Understanding the competitor product. And their pricing strategy
3. To understand the promotional activity to create a bench mark for a
Max store
4. To know the effective marketing strategy which influence customer to
purchase a product of max fashion in comparison with the other
competitor

3.4.2 Secondary Objectives:


1. To define consumer profile based on demographics and purchase value
2. To determine the relationship among variables (i.e., consumers
demographics, shopping orientation, the perception of the importance
of store and product attributes) with regard to the purchase value
3. To estimate the relation between different store attributes and
consumer purchase value
4. To identify and estimate the reasons for store preference and
expectations on store attributes and product attributes
5. To estimate the impact of sales promotion on store patronage

3.5 Purpose of the study

Purpose 1: To capture the marketing Mix of the Seven Identified


competitor of Max fashion in the given catchment in order to develop the
marketing Mix of the upcoming Max fashion in Cosmos Mall, Brookfield,
Bangalore with a competitive Edge

Purpose 2: In Catchment Analysis, the geographical mapping was done


to ensure that the consumer traffic is considerably good and that the area
considered has the right mix of commercial and residential outlays.

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Purpose 3: To evaluate consumer patterning and regularity in availing
the sales promotion and relate the same with their demographical
characteristics.

As a researcher catchment area analysis was used to study the


Competitor, consumer behavior, particularly their attitude towards sales
promotion, the difference in offer expectation of consumers of different retail
formats.

A prime location is selected and a 5 km radius is taken for executing


Catchment Analysis.

3.6 Methodology

Research methodology is the master plan for conducting the research


study. It should be noted that a research methodology is unique to a
research design. As the project undertaken by me primarily emphasize of
Max Fashion I took help of Descriptive research Studies

Descriptive research include survey and fact finding enquiries of


different kinds. The main purpose to adopt this method is to describe the
affairs as it exists at present. The main characteristic of this method is that
while doing the research we will be not having any control over the variable
we can know what has happed and what is happening in the current market.
The reason for conducting descriptive research is to capture the marketing
mix of the seven identified competitor of Max fashion in order to develop the
marketing mix and marketing strategy of the upcoming Max Fashion store
with a competitive edge

3.7 Catchment Area

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Fig 3.1 Research area- Entire Brookfield, Bangalore

3.7.1Population

In the catchment analysis for the upcoming store whole Brookfield was
the entire population.

3.7.2 Sample Size

As two different survey was conducted for this research to understand


the market sample where further classified as

Sample size of the survey conducted on the seven identified competitors


i.e,

1) West side
2) Pantaloon
3) Inmark
4) Mega Mart
5) Brand factory

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6) FBB
7) Reliance trend
And the sample size of the survey conducted on Target respondent in Given
catchment was 100

3.8 Sampling technique

Probability sampling:

A probability sampling method was used in this study because all the
population had equal probability of getting selected as a sample for this
study for both the Competitor survey and customer survey

3.9 Research tool:

1. In depth interview of target respondent were conducted.


2. Observational method was used in Malls and Market.
3. Competitor analysis through questionnaire method

3.10 Limitation of the study

The major limitation of the study was that the depth study in the
subject could not be done because of limited time
Sometime the customers are hesitant to disclose their information
regarding monthly expenditure
Most respondent didnt like to spend time in filling the questionnaire
as it was immaterial to them

The other limitations are

The competitor doesnt declare all the data & the internal data are
kept confidential
The reliability of the data used in the study is depended upon the
company records and information given by the employees

26
CHAPTER 4
4.0 Marketing Mix of MAX FASHION
Max fashion is creating the right marketing Mix to sell their
product. Through its whole journey it is trying to put the right product
sold at the right price in the right place using the most suitable
promotion

27
4.1 Product
A product is a bundle of physical service and symbolic
expected to yield satisfaction or benefits to the buyer. With the better
understanding of consumer behavior across various culture and class
Max fashion has put together a stunning range of over 150000 SKUs.
Private label of Max are among the largest apparel and fashion brand in
the country.

Max Fashion has classified their Apparel into:

Wester Wear

Ethnic Wear

Mens Wear

Kids Wear

Accessories

Further all the department were sub divided


28
into
Western Wear
1.Young
Ethnic Wear Zone
2.Denim Zone
1.Fusion
3. Sports
2. Tavisha
4. Core Zone
3. Traditional
Accessories
4.1.1Ethnic 5. Essential
1. Men's Wear
6. Night Wear
2. Ladies
The various products Kids 3.
Wear
Kids available under
1. New born (0-6
ethnic wear are printed salwar, short
Men's Wear Month)
kurtha,
1. Formalmedium kurtha, 2. Infants (6 -24 Month) salwar kameez with
3. Boys & Girls (2-8
2. Semi Formal
Dupatta, long skirts. In accessories the
3. Casual Denim Year)
various products
4. Casual Non
are 4. Boys & Girls (8- 14 band earrings, hair
clips,
Denim fashionable Year) bangles, bracelets,
5. Inner Wear
fashionable chains, ladies handbag, eye
6. Sports Wear
wear, finger rings, ladies wallet and ladies scarves.

4.1.2Western wear

The products available are ties, tuned top, pencil fit jeans, basic tees,
skinny fit jeans, woven tops, knit tops, Capri .The various sizes available
are large, small and medium. In footwear the various options available
are fashion heels, ladies casual shoe, fashion flats, sandals etc

4.1.3 Menswear

The various categories in mens wear are formals, semi formals


and casual wear .The products available are organic cotton, young fit
tees, sports shorts, and linen blended shirts, crew neck tees, v-neck
tees. Mens plastic, stripers polo, mens casual shoes, canvas
shoes,beach slippers, denims.

29
4.1.4 Kids Wear

Kids wear are available at the affordable price at Max. Various


categories of goods are available individually for girls and boys. The
products are categorized based on the age of kids. The various products
available for girls are kurtha, churidar, leggings, skirts, knitted tops,
woven Capri, sandals, canvas shoes, fashion shoes.

4.2 Price

Price is also one of the flexible elements. Without price there is no


marketing in the society. If money is not there, exchange of goods can
be undertaken but without price that there is no exchange value of a
product or service agreed upon in a market transaction, is the key
factor which affects the sale operation

The pricing objective at Max fashion is to get maximum Market


share and to exceed the customer expectation in their satisfaction
level Pricing at Max fashion is based on the following technique

Psychological pricing
Max fashion offers Financing at low interest rate. The concept of
psychological pricing (Rs 99, Rs 199 etc) is also used to attract
customer. Max fashion also cater on special event pricing.

Bundling
It refer to selling combo packs and offering discount to
customer. The combo packs ad value to customer and lead to
increase sale
Ex. Buy 2 get 1 free, buy 1 at 299 and 2 at 499
Promotional discount
These are best kind of discount because they enable
company to retain the power to be flexible. There may be
time when company wants to give an extra boost to sale- to
shift an old product before launching an updated one

30
Fig 4.1 Max fashion promotional discount standee outside the store

4.2.1Sale per month

150

100

50

0
ay

ov
ly
ar

p
n

Se
Ju
Ja

Fig 4.2 Sale Per Month of Karnataka Region (in Lakh )

As we can see the month of October, November, December and


March are the high sales period for Max Fashion, the reason is very
clear as in these Months festival are very frequent and hence people
shop more than ever compared to other months

4.3 Place
The success of any retail store depend on location that
company which choose.

4.3.1 Types of Retail Formats-

31
Mom-and-pop stores: These are generally family-owned businesses
catering to small sections of society. They are small, individually run and
handled retail outlets.

Category killers: Small specialty stores have expanded to offer a range


of categories. They have widened their vision in terms of the number of
categories. They are called category killers as they specialize in their fields,
such as electronics (Best Buy) and sporting goods (Sport Authority).

Department stores: These are the general merchandise retailers


offering various kinds of quality products and services.

These do not offer full service category products and some carry a
selective product line. K Raheja's Shoppers Stop is a good example of
department stores. Other examples are Lifestyle and Westside. These stores
have further categories, such as home and dcor, clothing, groceries, toys,
etc.

Malls: These are the largest form of retail formats. They provide an
ideal shopping experience by providing a mix of all kinds of products and
services, food and entertainment under one roof. Examples are Meenakshi
Mall , Easy day etc

Specialty Stores: The retail chains, which deal in specific categories


and provide deep assortment in them are specialty stores. Examples are
Crossword

Discount stores: These are the stores or factory outlets that provide
discount on the MRP items. They focus on mass selling and reaching
economies of scale or selling the stock left after the season is over. Ex.
Brand factory

Hypermarkets/ Supermarkets: These are generally large self-service


outlets, offering a variety of categories with deep assortments. These stores
contribute 30% of all food and grocery organized retail sales. Example: Big
Bazaar.

32
Convenience stores: They are comparatively smaller stores located
near residential areas. They are open for an extended period of the day and
have a limited variety of stock and convenience products. Prices are slightly
higher due to the convenience given to the customers.

E-tailers: These are retailers that provide online facility of buying and
selling products and services via Internet. They provide a picture and
description of the product. A lot of such retailers are booming in the
industry, as this method provides convenience and a wide variety for
customer. But it does not provide a feel of the product and is sometimes not
authentic. Examples are Amazon.com, Ebay.com, Flipkart etc.

4.3.2 Types of Retailer-

There are 7 main types of retailers which can be defined by the size of
their business and the way they in which they sell their products.

Department Store This type of retailer is often the most complex


offering a wide range of products and can appear as a collection of smaller
retail stores managed by one company. The department store retailers offer
products at various pricing levels. This type of retailer adds high levels of
customer service by adding convenience enabling a large variety of
products to be purchased from one retailer.

Supermarkets Generally this type of retailer concentrates in


supplying a range of food and beverage products. However many have now
diversified and supply products from the home, fashion and electrical
products markets too. Supermarkets have significant buying power and
therefore often retail goods at low prices.

Warehouse retailers This type of retailer is usually situated in retail


or Business Park and where premises rents are lower. This enables this type
of retailer to stock, display and retail a large variety of good at very
competitive prices.

Specialty Retailers Specializing in specific industries or products, this


type of retailer is able to offer the customer expert knowledge and a high

33
level of service. They also add value by offering accessories and additional
related products at the same outlet.

E-tailer This type of retailer enables customers to shop on-line via


the internet and buy products which are then delivered. This type of retailer
is highly convenient and is able to supply a wider geographic customer
base. E-tailers often have lower rent and overheads so offer very
competitive pricing.

Convenience Retailer Usually located in residential areas this type of


retailer offers a limited range of products at premium prices due to the
added value of convenience.

Discount Retailer This type of retailer offers a variety of discounted


products. They offer low prices on less fashionable branded products from a
range of suppliers by reselling end of line and returned goods at discounted
prices.

34
Fig 4.3 Max fashion presence across the world

MAX has18 stores in Karnataka, 15 are in Bangalore, 2 in Mangalore, 1 each


in Mysore & Hubli

KARNATAKA STORE
Commercial Street Bangalore
Oasis Bangalore
Indira Nagar CMH Bangalore
Royal Meenakshi BLR
MAX Banashankari
Jayanagar Bangalore
Market City - WFD BLR
Gopalan- old madras road
JP nagar
MSR Elements Mall
Malleswaram-Sampige Road
Vaishnavi sapphire
Yeshwanthpur - Fig 4.4 Max fashion Presence in
Market square - Sarjapur
KARNATAKA
Marathalli-Factory outlet
Mysore - B M Habitat Mall
Hubli U Mall (FR) 35
Mangalore - city center
Mangalore - Forum Fiza
Fig 4.5 Max fashion Store format

4.4 Promotion:
Promotion is the business of communication with customer. It
will provide information that will assist them in making a decision to
purchase a product. The cost associated with promotion or advertising
goods and service often represent a sizeable proportion of the overall
cost manufacturing an item. However successful promotion increase
sale so that advertisement and other costs are spread over a large
output . though increased promotional activity is often a sign of a
response to a problem such as competitive activity, it enable Max
fashion to develop and build up a succession of message and can be
extremely cost effective

4.4.1 Communication Mix of Max fashion

Communication is an integral part of the marketing strategy. Primarily,


communication is used to inform the customers about the retailer, the
merchandise and the services. It also serves as a tool for the building the
store image.

The Max Fashion can use various platform / channel for communication. The
most tools used in Max fashion are:

Advertising

Sales Promotion

Public Relation

Personal Selling

Point of Purchase (POP) Displays

The tools are illustrated in figure given below:

Sales
36
Promotion
37
Advertising Public
Relations

MAX FASHION

Communication Mix

Point of Purchase Personal Selling


(POP) Displays

Fig 4.6 Max fashion communication mix

a.Advertising
Advertising can be defined as any paid form of non- personal
presentation and communication through mass media. It is popularly
believed that one of the main aims of the advertising is to sell to wide mix of
consumers and also to induce repeat purchase.

However, Max fashion may use advertising to achieve any of the following
objectives:

Creating awareness about a product and store


Communication information in order to create a specific image in the
customers mind in terms of the store merchandise, price, quality,
benefits, etc.

38
Create a desire to want a product.
To communicate the stores policy on various issues.
Advertising can also help identify a store carrying nationally advertised
brands.
It can also help in repositioning the store in the mind of the customer.
To increase sale of specific categories or to generate short term cash
flows by way of sale, bargain days, midnight madness, etc.
Advertising can also help reinforce the retailers corporate identity.
For advertising, the retailer may use one or a combination of the
following mediums:
Press advertisements
Posters and leaflets, brochures, booklets
Point of purchase displays
Advertising can also be done through mediums like radio, television,
outdoor hoardings and the internet.

Fig 4.7 Advertisement of max fashion through hoardings

b.Sales Promotion
Sales promotion helps a retailer by way of attracting customer traffic and
enables quick result to be achieved. Depending on the type of promotion
carried out, it can help increase impulse buying, generate excitement and
can motivate other channel members.

Common retail promotions are illustrated:

c. Coupon:
A coupon allows the buyer a reduction in price on specific
merchandise or products, when the coupon is redeemed .coupons may

39
be delivered through newspaper, magazines, post or in products
distributing in college campus and in corporate

Fig 4.8 Exclusive Gift voucher to employee and loyal customers

d.Contests:
A contest needs consumers to compete and the prizes are based on
skill. In the case of sweepstakes, the customer only needs to enter in his
name and the winner is determined by chance. Many retailers allow
customers to enter into competitions on the basis of the amount of
purchases they have made.

40
Fig 4.9 customer engagement activity in store

e.Demonstrations:
Demonstrations are used to show the customer, the performance
capabilities of the products. Videos may also be used to aid the
demonstration and show the use of the products.

f. Product /Brand Promotions and Schemes:


This is a straightforward scheme in which the consumer either gets
a monetary discount on the purchase of a particular product/s or gets
two products of the same type for the price of one the by one get
one free scheme is example of same.

g.Samples:
Sampling provides the consumers with an opportunity to use the
product at no cost. Various techniques may be adopted for sampling
and this may take the form of in-store sampling-where the in-store
staff hands out the samples.
h.Shopping Card:

41
Many retailers make the own shopping card. It is very easy to
promote the sales.

i. Public Relations and Publicity


Public relations (PR) are a marketing communication function,
which aims at fostering goodwill. An important component of public
relations is publicity. By way of public relations, the retail organization
strives to create and sustain a favourable image with consumer,
shareholders, suppliers and the public at large. The job of public relation
is usually handled by an outside Public Relations firm and it may be under
taken to promote goodwill for the organization, to promote a particular
product or to counteract negative publicity.

Publicity is a non paid form of media coverage. In todays world, it is


rarely free and a fair amount of skill has to be exercised by the organization
to ensure that right media coverage is achieved.

Examples of events in retail which merit publicity are:

Store openings

Store renovations

Celebrity visits and affiliations

Designer associations

New product ranges and launches

Awards received by the retailer

Fashion shows and sponsored events

j. Personal Selling

42
Personal selling is a paid form of personal advertising where
salespeople assist customer in satisfying their needs though a person-to-
person exchange of information .it is a process of learning the needs and
the wants of the buys and striving to satisfy them with the required
product or service. Personal selling may occur within the environs of the
retail store-where personal selling requires the sales person to satisfy the
needs of the consumer. It may also occur outside the retail store, where
orders taken form customer by way of the telephone, internet or mail and
them serviced. Personal selling is precise. It is aimed at a specific
individual/s. Developing a strong sales force is hence an expensive
proposition, as the sales person has to be trained on various aspects of
communication, like understanding the body language of the customer,
etc. He also needs to be knowledgeable about the features of products
and services being offered by the retailer.

k.Point of Purchase (POP) Displays


The dictionary of retailing defines Point of Purchase communication
as the promotional signs and interior displays, often located at the point
of sale or alongside displays merchandise. Point of Purchase (POP)
Displays have become integral to retail today. They help reinforce in-store
product branding, enhance retail sales floor communication and provide
information to the customer. The basic function of pop in a retail store,
include posters, danglers, flyers glow signs, translites, banners, etc.

The role of POP changes significantly with the type of product being
sold and the customers involvement in the purchase. Different types of POP
material would relevant in different types of stores and environment.

In the case of a supermarket, POP may be used to indicate prices, the


location of products and any special or bargain offer in the store. POP in a
store selling consumer durables and electronics may lay stress on the

43
features of the product, the warranties and guarantees and the after sales
services provided by the outlet.

l. Gift voucher
Max fashion offer gift voucher of different denomination for
gifting their valuable customer or are available to be gift some dear one so
that he/she can redeem it in his/her desired shopping product

Caf coffee day gift voucher are given to the customer which
they can redeem in any CCD for the six time

Fig 4.10 Gift voucher in weekend activity

44
Gift voucher to employee

All the employee of Max fashion and other employee of


landmark group are given a special gift voucher as a cross promotional
activity. Through this card the employee can buy any product at a special
discount. There is limit fixed over each gift voucher which varies over salary
structure of employee means the higher salary higher the discount limit and
vice versa. The card is valid for 2 or3 month according to the company
agreement.

Fig 4.11 Gift voucher for employee of landmark group

45
CHAPTER 5
Findings 1
5.0 Competition Analysis
Company must know what your competitors are doing and
what to do to stay ahead of the competition. Many businesses believe
they are providing a good product to their customers, but do not have
reliable information showing how customers perceive their product or
how it compares to the competition.
A Competitive Analysis performed by an unbiased third party
is an invaluable tool because it can help you identify ways to attract
new customers, as well as keep the ones you have satisfied with your
products.
Creating customer value and building meaningful meaning customer
relationship sounds pretty lofty, especially for the company which are
providing similar kind of product in the same range. Any company must
understand not in the old sense of making a sale- telling and selling but in
the new sense of satisfying customer needs. If the marketer understand
consumer need and then develop product that provide superior customer
value, price distribution and promoting them effectively these product will
sell easily in the market.

As in the competitive market customer will be having many option to


choose among the product so its one company duty to look after its rival
brand they must gain strategic advantage by positioning their offerings
strongly against competitors offering in the mind of customer

46
Competitor analysis in marketing and strategic management is an
assessment of
the strengths and weaknesses of current and potential competitors. This
analysis provides both an offensive and defensive strategic context to
identify opportunities and threats

Steps for competition analysis:

1) Identify the company competitors.


2) Competitors product summary
3) Analysing the competitor strength and weaknesses
4) Identifying the strategies used by each competitor to achieve their
objective.
5) Review of competitive position.
6) Identifying the areas of improvement
7) Strategic action for victory.
8) Implementation.
9) follow up

The Major competitors of Max Fashion is

West side
Pantaloons
Reliance Trends
Brand factory
Mega mart
FBB
In mark

47
5.1 Westside:
It is one of the major competitor of Max fashion. West side was
established in 1998 as a part of TATA group, Trent ltd. Operates Westside,
one of the Indias largest and fastest growing chain of retail store

The company has already established 36 Westside departmental


store( measuring 15000- 30000 square feet each) all over across various
cities in India. Westside is exclusively designed and the merchandise range
from stylized clothes, footwear and accessories for men, women and
children

The main goal of Westside is to develop a comprehensive


understanding of customer need, strive to win their confidence and offer
them best-in-class product and service at affordable price

In 1998, after selling Lakme Ltd to HUL, TATA acquired a London based
retail chain named Littlewoods. With this takeover TATA established Trend
Ltd. With Mrs. Simone Tata as head and renamed Littlewoods as Westside.
Today Westside has reached to a total of 28 cities across India. Currently
Noel Tata is heading Westside

Westside are designed in such a way that it cater to shopping needs of


various customer. The mission of Westside says that We want to be the

48
most preferred and consistently profitable lifestyle retailer. The store
include apparel for Men, women and children of all ages. Footwear,
cosmetics, perfumes and handbags, household accessories, lingerie, and
gift. Although nearly 70% of the products available at Westside are owned
by itself, it also houses various other brands

5.1.1 Segmentation, Targeting and Positioning of


Westside

Westside is using income based segmentation and targeting the upper


middle and lower upper class of society. The brand is positioned on a
Fashion at affordable price Plank and a family store delivering a complete
shopping experience

Westside product variety that they offer, the price of the product that
they offer and kind of association people have with the brand is different
from what the company wants. It seems that, at the time of establishment,
the company had a very set strategy on what customer base they wanted
to create. But since its inception, the company has started to attract the
customer from other segment also. It seems that the company target
segment which was very clear at the beginning has become obscure. The
reason for this shift is not very clear but we can speculate that the company
became sale driven instead of creating a loyal customer base.

West side has hired London based retail consulting agency named
Flitch to add flare to its store and to woo the customer from upper segment

5.1.2 Product strategy of Westside

Westside has a very interesting and broad product variety. Westside


has tried to create a one stop shop for complete family within its defined
segment but the problem with this strategy is Westside cannot differentiate
its product from the rival brands. Westside product slightly varies from place
to place. The product which we could find in Bangalore is was not present in

49
Mumbai store. It seems that Westside is doing a good job on offering
different variety based on the consumer taste and preference

Westside with its private label it has contracts with the stalwarts of
industry like levis, wrangler, lee cooper, provogue etc. In boutique section
Westside also has brands like Biba, Trisha and Gia. The customer has a fairly
wide variety of brand to choose from having these renowned brands in the
store attracts the brand conscious customer, which normally would not have
considered Westside. Also this gives a chance to Westside to display its own
brands and increase the brand awareness. Another hidden motive to display
such wide variety of brand is to increase the average ticket sale. Although
the margin on these standard brand is low, but attract the customer and
hence increase the chance of sale of other items also.

5.1.3 Price strategy of Westside

Price communicates to the market the company intended value


positioning of its product or brand. The pricing decisions are consistent with
the firms marketing strategy and its target market which is the neo middle
class. The company does not set a single price but a pricing structure that
reflects variation in geographical demand and cost, Market segment
requirements, purchase timing, order level, delivery frequency, guarantees,
service contracts and other factor consumer expectation play a key role in
price response.

Varies pricing strategy adopted by Westside are as follow

1. Promotional discount
This is the best kind of discount offered by the company as it
enable the company to retain the power to be flexible. There are time

50
when they want to give an boost to sale i.e, to shift an old product before
updating a new one

Ex. Men t-shirts 3 for 499, 5 for 999

2. Seasonal pricing
The company goes for fledged sale 3 times in a year to draw in
more customer and maximize its sale. The purpose is to shed out the old
product at reasonable price as well as increase the number of footfalls
during that tenure to maximize clientele.

Ex. Discount upto 15-20% off

3. Psychological pricing
The company uses alternate pricing strategy in almost all product
the price of product end with a odd number, mostly 9. We believe that
the number 9 at the end coveys the notion of a discount or margin
psychologically

Ex pricing at 49 each, 2 for 299

4. Product bundling pricing


The company is engaged in pure as well a mixed bundling for
various product. Sometimes the purpose is to shed out the stoke unsold
for long time at minimal margin. Mixed bundling is targeted at increasing
the average purchase per person giving him that incentive in the form of
some discount which persuades him to buy more

Ex 1 shirt for 999 and 3 for 2499

51
5.1.4 Place strategy

Place strategy was that the chains of store were functioning


mostly in the malls and few exclusive showrooms of major cities.
Across a single city, price do not change. All the store in a city had
almost same product range and same price of the available product

5.1.5 Promotional strategy

Main Promotion strategy of Westside is to promote its in-house


brand, Westside which occupies as much as 85% of shelf space. This
arrangement has its own advantage, being a brand retailer they make
their own style and image to build customer base.

Fig 5.1 Westside standee outside the store

52
5.2 Pantaloons
Pantaloons Fashion & Retail Limited is an Indian premium
clothing retail chain. The first Pantaloons store was launched in Gariahat,
kolkata in 1997. As of November 2013, there are 76 Pantaloons stores in 44
cities. Pantaloons was previously controlled by the Future group, but has
now been taken over by Aditya Birla Nuvo Limited (ABNL) According to
the Brand Trust report 2014, a study conducted by Trust Research Advisory,
Pantaloons featured among 100 most trusted brands in India

With a chain of 105 fashion stores across 40 cities and towns,


Pantaloons is constantly extending its footprint into the rest of modern India.
It spans a retail space of 1.7 million square feet which is amongst the largest
in India

A pantaloon retails approximately 200 brands which comprises a mix of


private labels, licensed brands and more in apparel and accessories. A
pantaloon offers a wide range of exclusive brands that cater to different
occasions for:

Men
Women
and kids.
These include Ajile, Chalk, Akkriti, Trishaa, Honey, and Annabelle,san
frasico jeans, mini klup, basics

5.2.1 Marketing Mix of Pantaloons

Product:

Merchandise Industry inspire from WESTERN culture, able to full fill


Young girls aspiration

Price:

Affordable Price Equal to specification of the merchandise & company


is able to maximize the profit

53
Place:

Providing the product at a place which is convenient for the


consumers to access. At pantaloons Store, Mostly they concentrate on Stop
to shop store and Mall so they are able to attract the customer

Promotion:

Pantaloon Promotional Mix include

Advertisement in newspaper, hoardings, wall post, window display


standee in the mall function or in some events

Fig 5.2 pantaloon branding in Mall

Sale promotion:

These include activities other than advertisement, personal selling


publicity and public relation which are used in promoting sale of the product
or in persuading the customer to purchase the product. Distribution of
samples, premium coupons, point of purchase display, off price selling etc.

Sponsorship: Pantaloons are investing their cash in some kind of activity


in return for access to the exploitable commercial potential associated with

54
this activity. Although sponsorship does not merit a share of the total
budgetary appropriation, it is still recognized worldwide as an important tool
for marketing communication

5.3 Reliance trends


Reliance trends was founded in 2007 by Mukesh Ambani. All the
reliance trend store located at different place across Bangalore offer some of
the best Indian and international brand with each store area of more than
15000 sqft

It is a specialty apparel store that sells men, women and children


garments. The store will carry the best of national and international brands
like john players, peter England, indigo nation, wrangler, Reebok and lee
apart from in-house brands. Reliance trends is operating in 123 store across
the country providing employment to so many people and planning to
launch many new store

The store layout compliment the evolving taste and preference of


fashion savvy consumer, giving them an opportunity to view/shop with ease,
along with an army of well trained customer service associated to
compliment the entire shopping process

Reliance trends is offering a homogeneous mix of private label of


brand across mens, womens and childrens category to fulfill every
customer requirement

Outdoor communication

Reliance trend is using banner and hording as the outdoor


communication. Reliance is placing the attractive banner and hording with
its offer in the best catchment location where the flow of population was
very high.

Reliance trend also uses cluster hoarding in the key traffic junction in
the main cities in the way it will dominate the location and catch the
attention of the people who are passing by the way

55
Leaflets and balloons distribution

Reliance use to hire some guys for distributing the leaflets and
balloons in some area. They will do this mostly on weekends and at that
time of special offers. This leaflets distribution is basically for increasing the
footfall to the store and thereby converting the people who enter the store
into the final customer.

Events Plan

Reliance use to hire some events organizing companies and they will
do different type of events for attracting the customer to come into the store

Puzzle game

Scratch and win

Get clicked with your loved ones. Etc.

Fig 5.3 Window display of reliance trend

56
Fig 5.4 Hording of reliance trend

5.4 Brand Factory

It is a chain of retail stores operated by Future Group Launched in


September 2006, it currently has more than 41 outlets across 20 cities
in India. It is India's largest discount retail chain, gives Indian consumers the
promise of revolutionizing discount shopping by offering the best Indian and
International brands.

The endeavor behind Brand Factory is to raise the bar of experiences


when it comes to Brand + Bargain Shopping. The emphasis at Brand
Factory is to offer customers the widest range of brands and categories
possible at absolutely great prices in an ambience that befits the brand. The
stores offers a wide range of products including

apparels for Men and women,

Infant wear,

Accessories,

Cosmetics,

57
Footwear,

Sportswear,

Luggage,

Home linen and much more.

The outlets are between 60,000 to 100,000 square feet (9,300 m2) in size
and hosts several Indian and International fashion brands
like Levis, PepeJeans, Wrangler,Provogue,Arrow, Nike, Adidas, Reebok, Louis
Phillip, Allen Solly, Reid & Taylor, and Gini & Jony amongst others

It has stores
in Bhilai, Raipur, Bhubaneswar, Kanpur, Kolkata,Hyderabad, Asansol, Bangal
ore, Mysore, Hubli, Mangalore, Coimbatore, Thiruvanthapuram, Ahmedabad,
Mumbai, Thane, Nagpur, & Pune

Best Brands Smart Prices Brand factory brings to the Indian consumer
the promise of revolutionizing value shopping by offering the best Indian and
International brands at smart price brand factory promises its customer that
value shopping is not about second experience its not about a garage sale
environment and its not about buying cheap instead its all about an
amazing experience of Buying Smart

The thought behind Brand factory is to raise the bar of expectation


and experience when it comes to Brand + bargain shopping. Over the year
Factory outlets have become distinct shopping destination with distinct
audience. With fashion cycle reducing larger quantities of stocks are
reaching factory outlets but then what gets compromised in the process is
the brand and its image

58
Fig 5.5 Promotional standee

5.5 Mega Mart


Megamart, from the house of Arvind, is a pioneer of the value-
retailing concept in India, arrived on the scene way back in 1994, and
changed the rules of the retailing business in India. Today Megamart is the
largest player in this segment and has network of over 200 stores spread
across 90 cities/towns in India including stores across Chennai, Pune,
Bangalore, Hyderabad and Mumbai.
Over the last few years Megamart has forged ahead and further
strengthen its Brand portfolio through its acquisition of the exclusive
international license for India for Brands like Geoffrey beene, Cherokee

59
America and mossimo newyork - Which are well known brands across the
globe. Each of these brands are of size USD 1 to 3 Billion and available in
around 30 countries across the world.

In addition to this Megamart houses brands like Excalibur, Elitus,


Aurbun Hill, Colt, Newport, Ruggers and Edge in Mens category. Karigiri and
Anahi in the womens ethnic category. Cherokee kids, Donuts and Day to
Day in the kids category, which have today become strong brands in the
respective categories.
Megamart now stands strong as value Fashion Retail chain offering the
Best international brands at highly competitive prices across the year which
is unique and unmatched in India. Megamart is Indias leading retail that
operate in multiple formats

Megamart customer segmentation are


Kids Wear
Mens Wear
Womens Wear
Sports Wear
House Apparels
Foot Wear
Accessories (Sun Glasses, Perfumes, Wallets, Electrical appliances,
Watches)

Mega mart has access to huge brands in small store it maintains upto 25
private brands limited product category & in large store 200 private brands
are available with wide range of product category
Pricing Strategy followed:
Mega mart is a discount store it follow one pricing policy
They will give discount upto 50% on MRP and add 4% VAT tax on MRP. In
mega mart Customer will get discount every day. Customer can find special
discount on festival days and week ends
When the stoke is not moving out from the store or if the management
is unable to sell any paryicular product then they keep offer like buy 1 get 2
free, 50% off, buy 1 get 1 one

60
Fig 5.6 Megamart branding outside the store

Kinds of promotional activity by Megamart


Sales Promotion
Birthday offer to Individual customer
Hand Pamphlets
Newspaper Ads on Week ends
Festival Season Promotion
E mail, Mobile Promotion
Mobile App pop Ups

5.6 FBB (FASHION AT BIG BAZAAR)

Fashion is trend to change that whatever happen in some period .It


come In all three month with the new product and with the modification of
old product. It change simultaneously with the season.

Fashion @ bazaar
At Big Bazaar fashion include all apparels
Fashion is a very important LOB for big bazaar
Big Bazaar get highest margin by fashion department

61
The average contribution of fashion in Udaipur Big Bazaar is 23%
The target contribution of fashion sub department in fashion are
Mens wear- 50%, Ladies wear-30% Kids wear-20%

They PROMISE-that from today we will start selling FASHION &


not just apparel & take BIG BAZAAR to the next level by selling more &
more fashion.
Kar ke dikhana hai

Process of Fashion

Warehouse (Receiving)

Sub department

Tagging

On floor

Staking (MPM)

Sub department of Fashion

Mens wear
Ladies wear
Kids wear
Home Linen
Mens Wear

Section of mens wear

Men's Casual

Men's Fabric

Men's Formal

Men's Occasion Wear

Suit & Blazer

62
Men's Accessories

Mens night wear

Mens wear

Brands of products

AFL

Knighthood

John Miller

DJ&C

Famous Basics

Signature

Shatranj

VIP

Ladies Wear

Section of ladies wear

Ladies Ethanic
Ladies Western
Saree & Dress Material
Ladies Accessories
Ladies night wear
Brands of Merchandises

Sharisty
DJ&C
SHAYLA
Kids Wear

63
Section in kids wear

Children Wear
Kids Accessories

Marketing Mix of FBB

The channels are illustrated in figure given below:

fig 5.7 marketing mix of FBB

The basic function of retail is to provide the right goods to the


consumer, at the right place and time. Through the retail marketing mix FBB
can compete with competitors and achieve the sales target. The marketing
tools that a retail organization uses to pursue its marketing objectives are
termed as the retail marketing mix.

The most channels are:

64
Product

Price

Place

Promotion

Presentation

Customer Service

People

Product

One of the main elements of the retail marketing mix is the products
and /or services that store offers to the customer. Products are also termed
as merchandise. The different products that the store offers are together
termed as the merchandise mix.

For example, if we consider the Fashion at department store, the


merchandise line comprises:

Mans wear

Mans accessory

Party wear

Ladies wear

Kids wear

Home fashion

65
Price

Pricing is an integral part of the retail marketing mix. The price policy
that the organization decides to follow depends on the customer profile of
the target audience for its range of products.

Big Bazaar gives the good price to the customer .price makes the good
relationship to the customers. Big Bazaar has a punch line Isse Sasta Aur
Accha Kahin Nahi

It gives the high discount on the price like; foods products (20%, 25%,
35%), non food products (10%, 20%, 35%), buy one get one free Top Price,
buy 3 get one free Park Avenue soap, etc.

Big Bazaar gives many offers to the customer like; the great Indian
festival Big Days, Sabse Saste 3 Din, etc. In these types of days it gives the
huge discount on the products.

Fig 5.8 FBB Pricing strategy during end of the season sale

66
Place

The location of the retail store was considered to be the most


important element of the marketing mix.

Big Bazaar is situated at premier location in Udaipur, where Levis, E-


Zone, Cafe Coffee Day, and Reebok like stores are situated. It is the best
place for Big Bazaar.

Promotion

The advertising budget, sales promotion, publicity and the public


relations play a very important role in the competitive world of retailing
.these help the store to achieve the short term goals. Promotion may be
price led or occasional led, in which case special merchandise offered by the
stores only for the occasion. Most retail organization run promotions during
festival seasons.

Big Bazaar also provides the promotional offers on festival like Diwali,
New Year, ID, Valentine day, etc. Discounts depend on the products.

Presentation

The manner in which the merchandise is presented at the store level is


very important. This aspect not only deals with the store layout and the
ambience created, but also with visual merchandising.

Visual merchandising is the orderly, systematic way of putting stock


on display in the retail store.

Big Bazaar presents the store as per the season and occasions like; on
Diwali store is decorated with candles and flowers, on Christmas store is
decorated with stars, ribbons, balloons, Christmas tree and on Independence
Day and Republic Day store is decorated with green, orange, and white
balloons, etc. that attract the customers.

Customer Service

67
The support services that a retailer offers have become very important
today. The credit policies and the product returns policies need to be clear
marketing, buzzwords in the industry today and all these are aimed at
enhancing customer service.

In the Big Bazaar, the product range is good and availability of the
products is very easy. Bag Bazaar provides the low price comparison to the
other retailers.

Big Bazaar provides the good services to their customer like; baggage
counter, parking, product, help line, etc.

People

Retailers operate in a unique environment. The retail industry is


characterized by a large number of inexperienced workers, who need to put
in long hours of work. Most of the time, these employees are in direct
contact with the customer and may face irate or unreasonable customer.

The people who work at the front-end of a retail organization are very
important, as they are the manners and products knowledge plays a very
important role in building long term relations with the customer.

68
5.7 Inmark
Inmark Retail currently operates 13 stores in Bangalore, Mangalore,
Hyderabad, Hubli, Kochi, Belgaum, Mysore and Gulbarga in India and two
stores in Riyadh

INMARK is not a concept its a belief and a movement that aims at


offering the Indian consumer high-end fashion at fair prices. INMARKs
philosophy derives inspiration from Gandhijis Swadeshi Movement which
encouraged people to discard foreign clothing, and the current movement of
the civil societies that struggles to free India from corruption. INMARK will
ensure that what is sold in Indian markets is exactly the same as what is
currently available in European markets, at prices that are fair to the Indian
consumer. INMARKs sole aim is to revolutionize the face of Indian fashion,
and thereby liberate the Indian consumer from the compulsion to pay unfair
prices charged by Western brands.

Product

As technology and tastes change, products become out of date and


inferior to those of the competition, so companies must update products
with features that customers value or completely replace the product.
Market leadership can change as new products are developed that give
greater benefits than old ones. Inmark has premium product in their store
where consumer can see variety of the product as compare to competitor
brand

Place

69
Inmark are selling their product online as well as offline. This is most
beneficial for the customer. Customer can have experiential marketing in
offline store and can order through online

Inmark is present in 13 store in Bangalore and online presence like

Amazon.com
Flipkart
Myntra
Paytm
Snap deal

The main advantage to be present online is

The product are standardize and graded so that customer can easily
know the current rating of the product
Most of all products are known to the customer and it can advertise
precisely
Wide publicity of the product is made through this
The price will be low and customer can get more discounts
Merchandising is effective
Products are not damaged in transit and it reduce the warehousing
cost
The buyer gets home delivery
Consumer time will be saved and consumer gets the products without
shopping.
Promotion used by Inmark

Advertisement
Sales Promotion
Birthday offer to Individual customer
Hand Pamphlets
Brand Endorsement etc are the tools used by Inmark to promote their
brand

70
Fig 5.9 Celebrity endorsement

5.8 SWOT Analysis


Through this competition analysis we can know the Max fashion
current position.

Strengths:
1. Strong on positioning
2. Correctly identifying its target group and not veering from it is what
worked in Max favour
3. Globally Spread across in 17 countries
4. 98% of private label enables Max to have better control over
operation, planning and supply chain
5. Being a private label, they can discount the way they want. This helps
them in liquidating on a monthly basis through mark down counters
6. The systems and processes are inherited from the parent company
that has been a retail success story for over 40 years
7. The flexibility within the fixed framework is an advantage ,Max has
other foreign brands that have to follow Strictly international cuts,
design protocol and norms

71
8. Max Fashions India reports shrinkage of 0.3%, among the lowest in
industry
9. Parent company supports them with design trends, this enables them
to offer much wider and sharper range in terms of pricing
10. Development and Innovation are high at Max fashion with regard
to it products and consumer preference and lifestyle changes which
keep its ahead of its direct competition
11. Reputation for value of money(competitive pricing),
convenience and a wide range of product all in the single store

Weakness
1. Brand awareness- They have loyal customers but failing to attract new
customers
2. 30%(yearly) Attrition for the front end staff, which is an industry wide
problem
3. Not engaged in aggressive marketing
4. Max India has to catch up with the bench mark set by Max Dubai in
terms of stock turns
5. Compare to other competitor every day low pricing is not there
6. Online sale in not there

Opportunities
1. Max has started increasing fashion quotient with an emphasis on fast
fashion, its something max will be able to achieve with ease since its
already reputed for impressive stock turns
2. Landmark Group is helping Max India to leverage its loyalty program
for better understanding of customer needs and increasing the
customer base
3. Max has started with a new concept called- Easy Buy. They intend to
penetrate rural market with this concept

72
4. Their recent success has enabled them to open more stores in
Karnataka that would enable them to increase their footfall
5. There still exist many commercial catchment areas in Bangalore
wherein they can open new store
6. Opening of many new malls will benefit them as they can open their
stores in malls where they find most of their target customers
7. Evolving consumer preference

Threats
1. Being a number one retail in India means that Max fashion are the
target of competition(extra competition and New competition entering
the market could unsteady Max fashion)
2. Have to deal with Absconding cases
3. Staffs moments- because of high attrition rate, new employees are
recruited on a regular basis; they take time to adjust to store
environment and understanding the operations. This leads to
discontinuity in the work flow
4. The company has to regularly pour in money for the training of new
employee
5. Competition for local retail

Chapter 6

This chapter presents the salient findings of seven


identified competitor that were found during the study.

73
1. What are the customer expectation from the
Product/Service

18%
36%
Quality with price Service 14%
Affordability Value for money

32%

Fig 6.1 customer expectation from the competitor product

Through the competitor survey 36% of customer expectations from the product or
service are value for money from the product
Through the competitor survey 18% of customer expectations from the product or
service are quality with the best price
Through the competitor survey 32% of customer expectations from the product or
service are affordability of the product
Through the competitor survey 14% of customer expectations from the product or
service are good service for the product

74
2. What are the feature that meet customer
expectation

Availability in variety of sizes


6%
Uniqueness
16%
20%

Low price with good


20% quality Quality with service

38%
service

Fig 6.2 Additional feature that meet customer expectation

The study showed that 38% customer expected low price with
good quality from the product/ service
The study showed that 20% customer expected uniqueness
from the product/ service
The study showed that 20% customer expected quality with
service from the product/ service
The study showed that 16% customer expected service from
the product/ service
The study showed that 6% customer look for availability in
variety of size in the product/ service

75
3. Whether there is any feature that are not meeting
customer expectation

12%
product quality
34%
Design and colour
22%
aspect
styling
trend
32%

Fig 6.3 Missing feature in the product

Through interaction with the Competitor we found that they are not able to
meet the requirement of the customer and they have missed in

34% in New Trend


32% in Styling
22% in Design and colour aspect
12% in Product Quality

76
4. Whether any costly feature are included in the
product/ service which customer actually do not use

13%

No Yes

87%

Fig 6.4 Unnecessary feature in the product

87% of the answer was No because Product is good as compare to the


price
And 13% answer was yes because they include some feature which is
not actually necessary for the customer

Ex. Necklace which are added to top which is not necessary for the
customer

5. Which is the most running product in the market

77
11% 8%

Daily Wear Casual Wear Wedding Wear 36%


Office Wear Party Wear
40%

5%

Fig 6.5 Most running product

36% Causal Wear

40% office Wear

11% Party Wear

8% Daily Wear

5% Wedding Wear

6. How will customer experience your product

78
5% 1%
18%
15% very Satisfied
satisfied
not satisfied
Not/Nor Dissatisfied
16%
Dis satisfied
Very dissatisfied
45%

Fig 6.6 customer experience toward the product

Customer will experience their product as

45% Satisfied

18% Very Satisfied

16% Not Satisfied

15% Not/nor Dissatisfied

5% Dissatisfied

1% Very dissatisfied

7. Where do the customer shop your product

79
14%
26%
Online
Malls
Standalone store

60%

Fig 6.7 most preferred place to shop

Through competitor study it was found that their Customer would


mostly prefer:

60% of Malls for the shopping

26% of Standalone store for the shopping

14% of Online for their shopping

So Malls are the best place for the shopping


and customer would mostly prefer it

8. Do you need to use sales force? Or any trade fairs to


push your product and pull your customer

80
yes
50% 50%
No

Fig 6.8 competitor study to understand their sale force

Through the competitor survey it was found that


50% of the answer was yes
And 50% of the answer was no
Among 7 competitor I found that they are using sale

force to push their product throughout the year and some are not

using because customer are attracted towards their product.

9. What do your competitors do, and how you can


differentiate from them

81
offers, pamplets and
12% 12%
hoardings.
8% Online presence
attracting by window
display
34% 20% Discounts in whole year
Present only in Mall
Advertisment
5% 9% More customer centric

6.9 differentiating from its rivals

Competitor will differentiate their Rival brands to various ways,


Major difference is soon in their:
34% will differentiate in their advertisement

20% will differentiate by attracting through their Window


Display in malls

12% will differentiate as customer centric

12% will differentiate in their offer, Pamphlets and hoardings

9% will differentiate by providing discount throughout the


year

8% will differentiate in their online presence

5% will differentiate by having their presence in mall only


So by providing varies kinds of advertisement company can differentiate
and it can be remembered easily by the customer

10. What is the value of the product/service to the


customer

82
13%

34%
high
mediam
24%
low
Expensive

29%

Fig 6.10 value of the product to the customer

Through the competitor survey it was found that value of the product
to the customer is
34% high
29% Medium range
24% low
And 13% expensive

11. Whether there is any established price point for


product or service are affordable by the customer

83
8%

yes no

92%

Fig 6.11 affordability of the customer for established price point

92% of the competitor price point for product is affordable by


the customer

8% of the competitors price point for product is affordable by


the customer

12. Whether the customer price sensitive? Will a


small decrease in price gain you extra market

84
share? Or will a small increase be indiscernible and
so gain you extra profit margin

5%

yes
no

95%

Fig 6.12 customer perception towards the pricing of the product

95% of the competitors agree on this point.

And 5% of the competitors does not agree

Customers are more price sensitive and brand


conscious so small change in the price effect business a lot and
customer will be having option to choose among the product so
customer can shift easily to other product

13. How will be your price compare with your rival


brands

85
17%
25%
Affodable
5% Less
Worthy
High
21% Same
32%

Fig 6.13 Difference in competitive pricing

Through the competitor survey it was found that

32% of the competitors think their price is worthy compare to


competitors

21% of the competitors think their price is less compare to


competitors

25% of the competitors think their price is Affordable compare to


competitors

17% of the competitors think their price is same as compare to


competitors

5% of the competitors think their price is High compare to competitors

14. How you product or service is branded and


positioned in the mind of customer

86
18% Good Positioning
30%
Long time positioning
Coherent identity
20%
Distinctive identity
20% innovative brand
12%

Fig 6.14 branding and positioning of the product

Competitors have branded their product as:

30% as Innovative brand/product

20% as Long time positioning in the mind of customer

20% as Distinctive identity compare to rival brands

18% as Good Positioning

12% as Coherent identity

15. Where you can come across your marketing


message to your target market

87
Contests
8% Point of sale promotion
19% 5%
Social Media
13% customer referal
12% Advertisment
7% Direct marketing
6% Mail ordering marketing
8% 22% sponsorship
Sale promotion

Fig 6.15 kinds of Advertisement used


Competitors to publicize their product they use some message that strongly
impact on the customer to buy the product some of the tool used by
competitors are

22% on advertisement in TV, Radio Etc

19% in Sales promotion

12% in Sponsorship

13% in Social media marketing

8% in contexts

5% in Point of sale promotion

7% throw customer referral

8% of direct marketing

6% in Mail ordering marketing


16. Will you reach your audience by advertising
Online, or the press or TV ect..

88
20%
Strongly agree
5% 45% Agree
Disagree
Somewhat agree
30%

Fig 6.16 effectiveness of advertisement

45% of the competitors strongly agree

30% of the competitor Agree

20% of the competitor somewhat agree

5% of the competitors disagree

Competitor think advertisement will reach effectively to


their sale.

Summary of Findings

89
Competitor Analysis to develop Marketing Mix of MAX
FASHION

Product:
1. Value for the money is want customer want from the product
2. To meet customer need product should be low priced with good
quality
3. New trend and styling pattern in the product should be bought
because competitor are failing in those aspect so Max should grab
this opportunity
4. Majority preference is given to office wear and casual wear in the
given area

Place

1. Customer Majorly prefer Malls for their shopping so shop in shop is


the best distribution channel to reach the customer
2. To attract the customer Advertisement and hording in the
catchment should be increased so visibility increases
3. Online presence should be increased

Price

1. Value of the product should be comparatively low because


customer are price sensitive

Promotion

1. Advertisement place important role to reach target audience


2. Festival time and year ending are the best time to promote the
product

90
Customer survey:

17. Population in Brookfield

46%
Male Female
54%

Fig 6.17 Population in Brookfield

The Over-estimation of the potential population in Primary, Secondary and


Tertiary catchment it is found that
54% are Male

46% are Female

91
18. The percentage of Bangaloreans and Non
Bangaloreans in the Catchment

38%
Bangalore
Out of Bangalore
62%

Fig 6.18 kinds of customer in the catchment area

It is found that 62% of the people who stays in Brookfield are


Bangaloreans

38% of the people are Tourist / non Bangaloreans

19. Gender of Respondents

92
45% Male
55% Female

Fig 6.19 gender of respondents

Out of Total Respondents

45% are Male

55% are Female

20. Age Group in the Catchment area

93
5% 5%
13% 15% 0-10
10 to 20
20-30
20% 30-40
40-50
42% 50 & above

Fig 6.20 age group in the catchment area

It was found that:

5% of people belong to 0 to 10 years


15% of the people are 10 to 20 year of age group
42% of the people are 20 to 30 year of age group
20% of the people are 30 to 40 year of age group
13% of the people are 40 to 50 year of age group
And
5% of the people are 50 and above
So 20 to 30 year of the age group will be target customer for
Max fashion they can concentrate more on this age group for their future
sale.

21. Type of clothing they prefer

94
22%

39%
western Wear 6%
Men's Wear Kids Wear Ethnic Wear

33%

Fig 6.21 type of clothing they prefer

According to the survey it was found that

39% of the Respondent prefers Western Wear


33% of the Respondent Prefers Mens Wear
6% People Prefer Kids Wear
And 22% Respondent Prefer Ethnic Wear

So it is found that there is High Demand for Western Wear and


Mens Wear

22. Average Monthly Spending

95
5% 2% 10%
5000 and below 5000- 100006% 10000-15000 15000-20000 20000-25000

27%

35%

25000-30000 30000 and above


15%

Fig 6.22 average monthly spending

It was found that

35% of the people in catchment spend 15 To 20 thousand Per Month


27% of the people in catchment spend 5000 to 10000 Per Month
15% of the people in catchment spend 10000 to 15000 Per Month
10% of the people in catchment spend 5000 and below Per Month
6% of the people in catchment spend 20,000 to 25,000 Per Month
5% of the people in catchment spend 25,000 to 30,000 Per Month
2% of the people in catchment spend 30,000 and above Per Month

23. Which apparel store they prefer

96
12% Max Fashion
19%
5% Pantaloons
Westside
Megamart
15%
14% Brandfactory
Relaince trend
Inmark
15% 10%
FBB
10%

Fig 6.23 apparel store respondent prefer

Out of Total Respondent it was found that

19% of the Respondent prefers to shop in Max fashion


14% of the Respondent prefers to shop in Pantaloons
10% of the Respondent prefers to shop in Westside
10% of the Respondent prefers to shop in MegaMart
15% of the Respondent prefers to shop in Brandfactory
15% of the Respondent prefers to shop in Reliance Trend
12% of the Respondent prefers to shop in FBB
5% of the Respondent prefers to shop in Inmark

24. Frequency of Visit to the stores

97
Twice in three months
4% Once in three months
6% 5%
Twice in Six months
1%
38% Once in Six months
6%
6% Twice in a Year
3% Once in a Year
Twice in a month
31% Once in a month
Once in a week

Fig 6.24 frequency of visit to the store

38% of the Respondent said they visit store twice in three month

31% of the Respondent said they visit Once in three Month

3% of the Respondent said they visit store Twice in Six Month

6% of the Respondent said they visit store Once in Six Month

6% of the Respondent said they visit store Twice in a Year

1% of the Respondent said they visit store Once in a Year

6% of the Respondent said they visit store Twice in a Month

5% of the Respondent said they visit store Once in a Month

4% of the Respondent said they visit store Once in a week

25. Average Monthly Spending Expenditure on


Apparel

98
5% 2% 10%
5000 and below 6%
5000- 10000 10000-15000 15000-20000

27%

35%

20000-25000 25000-30000 30000 and above


15%

fig 6.25 Average monthly spending expenditure on apparel

It was found that customers are willing to spend their money on Organized
Retail, among the Respondent in the catchment area there are

35% people who spend 15,000 to 20,000 on Apparel


27% of the people spend 5000 to 10000 on Apparel
15% of the people spend 10,000 to 15000 on Apparel
10% of the people spend 5000 and below on Apparel
6% of the people spend 20,000 to 25,000 on Apparel
5% of the people spend 25,000 to 30,000 on Apparel
And 2% of the people spend 30000 and above on Apparel

26. Reason for buying cloth in Organised retail chain

99
18%

35%

Contemporary trend design Quality Afforability Brand Image


24%

11%
12%

Fig 6.26 reason for buying cloth in organised retail chain

From the target respondent it was found that

18% of the people buy Apparel in Organized retail because of the

Contemporary Trend
35% of the People buy Because of Brand Image of the

Company/organization
24% of the people buy because of the Design provided by the

organised retail chain


12% of the people buy because of the Quality which are provided by

the organised retail chain


11% of the people buy because of the Affordability and discounts that

are provided in the store

27. Any product category that are Missing


100
Cap
Wedding Dress
Prom Dress
Lady belt
Lehenga

28. Max Fashion Awareness among target


respondent

11%

Known
Unknown

89%

Fig 6.27 Max fashion awareness among target respondent

89% of the Respondents are Aware of Max brand

11% of the Respondents are not Aware of Max brand

29. Among the Target Respondent how many people


shop in Max Fashion

101
32%

Yes No

68%

Fig 6.28 Max customer among the target respondent

68% of the target respondent shop in Max store

And 32% of the respondents do not shop in Max store

30. Shopping range

102
3%
15% 25%

5000 & below 5000 To 10000 10000 to 20000 20000 To 30000 30000 & above
20%

37%

Fig 6.29 shopping range at max showroom

37% of the people shop between 5,000 to 10,000 range


25% of the people shop between 5,000 & below range
20% of the people shop between 10,000 to 20,000 range
15% of the people shop between 20,000 to 30,000 range
3% of the people shop between 30,000 & above range
37% of the people shop between 5,000 to 10,000 range

31. Reason for shopping in Max Fashion

103
7%
3%
Brand Image Customer Service Quality Afforbability Collection Convenience
30%
20%

10%
Uniqeness
25% 5%

Fig 6.30 reason for shopping in max fashion

The reasons behind shopping at Max Fashion are:

30% of customer buys because of Good brand Image

25% of customer buys because of Affordability

20% of customer buys because of Good Collection

10% of customer buys because of Customer Service

7% of customer buys because of Uniqueness

5% of customer buys because of Quality

3% of customer buys because of Convenience

32. Whether Customer have seen any


Advertisement of Max Fashion

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2%

Yes No

98%

Fig 6.31 Max fashion advertisement visibility

98% of the customers have seen Max Advertisement


And 2% of the customers have not seen Max Advertisement

33. Where did the customer found Max


advertisement

105
5% 2% 2% Telivision
9% 15% Radio
6% Social Media
Billboards
12% Instore
Print ads
27% Mobile ads
Celebrity branding
22% Covert

Fig 6.32 source of visibility of Max fashion

Throw customer interaction it was found the visibility of Max store in various
channel i.e.,

27% of the customer have seen throw Billboards


22% of the customer have seen throw Instore
15% of the customer have seen throw Social Media
12% of the Customer have seen Print ads
9% of the customer have seen throw Celebrity Branding
6% of the customer have seen throw Mobile Ads
5% of the customer have seen throw covert
2% of the customer have seen throw TV ads
2% of the customer have seen throw Radio
34. Satisfaction Level

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5% 2%
17%
Very high
High
Medium
40%
Low
36% Very Low

Fig 6.33 Satisfaction level

Satisfaction of the customer

40% of the customer has Medium Satisfaction level

36% of the customer has High Satisfaction level

17% of the customer has Very High Satisfaction Level

5% of the Customer has Low Satisfaction Level

2% of the Customer has Very Low Satisfaction Level

Through Customer survey:

1. During study it was found that there is more male population compare
to Female population among them more number are Bangaloreans.
2. In the catchment area most preferred clothing is Western Wear
3. Max can target 20 to 30 age group in the locality because 20 to 30 age
group people stays more in that area
4. Average spending range of an individual is 10 to 30 thousand

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5. Customer majorly prefer Reliance trend, Brandfactory and Pantaloon
for their shopping
6. Average billing will be around 15 to 20 thousand
7. Brand image place very important role in buying decision of the
customer so design and Quality of the product also should be
increased
8. Product category that are missing-
Cap
Wedding Dress
Prom Dress
Lady belt
Lehenga
9. Max advertisement in TV, Radio should be increased
10. There is low satisfaction level in exact size and colour which max
are providing in their product

Therefore for formulating the effective marketing


strategy Max should keep in mind the following aspects

Identify the target customer which usually depends on a defined


area and market size based upon that Max should promote its
business
Develop a unique marketing message. Product helps solve a
particular problem or satisfies a specific need of target market and
what makes max product better than competitors. ensure that this
core marketing message is used across all channel for promoting
their brand

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Develop a Website. The website should provide all relevant
information about your business and product. Set up an online store
to allow customer to purchase Max products directly from the
website. This will boost Max sale and help to attract customer
beyond local market.
Advertise in local publication or online sites that are relevant to
product. Though advertisement can be expensive, it can help
directly promote and educate potential customer about product and
its benefits
Engage and build relationship with customer online. Using low cost
social media tool such as a blog, Facebook page or twitter profile,
connect and start a conversation with prospects and existing
customer and keep them informed of latest product, event or sale
Organize events such as special valentines day sale or even a free
workshop to draw crowds into Max retail store, generate press
coverage and publicize the business in the local community.
Get testimonials from existing customer, nothing speaks louder
than an endorsement from a customer who has tried Max product
and is happy with it. Include these testimonials in advertisement

CHAPTER 7

Bibliography

http://www.wikipedia.org

http://landmarkgroup.org

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www.maxfashionretail.com/aboutMax.php

http://brandscapesworldwideblog.com/2014/05/21/catchment-analysis-for-

retailers/

https://www.scribd.com/doc/34364742/Catchment-Analysis-and-Consumer-

Behaviour

http://www.abahe.co.uk/business-administration/Marketing-Strategy-and-

Competitive-Analysis.pdf

https://en.wikipedia.org/wiki/Competitor_analysis

https://en.wikipedia.org/wiki/Catchment_area

Kotler & Keller, Marketing Management, Pearson Education Inc, 14 th Edition 2012

Muzammil Haque Visva Bharati, Santiniketan, West Bangal, 2012

Devin Kowalczyk, Primary Research, Fresno City College, California

Marketing mix, http://toolkit.smallbiz.nsw.gov.au/part/3/12/57

Population,http://www.nchpeg.org/bssr/index.php?option=com_k2&view=item&id=100:defining-

populations&Itemid=136

Ibid, Sampling Challenge, http://www.uniteforsight.org/research-methodology/module2

Kind of Sample, http://en.wikipedia.org/wiki/Sample_(statistics)

RECOMMENDATIONS and CONCLUSION


Advertisements should be given on the high circulation newspapers of
the region.

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Understanding the main competitors and always have plan or strategy to handle
competition from them.
The retail outlets can invest in supply chain, buy directly from the sources and eliminate
middlemen and can attempt to obtain volumes in buying by aggregating the requirements
of various stores, and bargaining for competitive strength.
More promotional activities by the retail stores will attract customers to a large extent.
Promotional activities are undertaken during special occasions, off seasons, festivals or
on a particular day. Major promotional tools used by the stores are discounts and
coupons, exchange offers, low priced products and other attractive schemes. Promotional
factors do play a major role deciding and choosing a store.
Increase the number of loyal customer. A loyal customer reduces the cost of retailer.
Therefore the retailer should leave no stone unturned to maintain and increase the loyalty
of customers. For the same, loyalty programs needs to be introduced like bonus points,
free insurance, preferred customer status, cash back schemes and other special offers
which satisfy the customer.

Services of Max fashion should be increased. As per the customers


feedback, many of the people were not satisfied with product and
quality as well as the customer service provided by the Max.
Close link should be established with customers through customer
relations programs and try to meet their requirement regarding
product and services and to make them aware about both product and
promotions.
Come with promotion in vernacular languages..
Signage should be displayed properly on the floor and near the
entrance gate.
Availability of products in each size should be at the floor.
Care to be taken to maintain proper inventory level and the varieties
and offer the customer what is needed rather than offering what is
available
The store personnel should be more friendly and easy approachable,
they can also offer drinking water to the customer once they enter in
the store
Max Fashion could help customers to explore the store. For this shopping should be
made more adventurous by continuously upgrading the product portfolio, by changing
the layout and by providing the touch and feel experience.

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Indian Apparel industry is witnessing one of the most hectic marketing
activities of all times. The companies are fighting to win the hearts of
customer. There is always a first mover advantage in a upcoming sector. It
has brought about many changes in the buying habit of people , it has
created formatted, which provide all items under one roof

The customer preferences are changing and they are moving from
Small Retail to Modern retail outlet. Its the main challenge to the modern
outlet to attract the customer toward them from that of competitors.

To attract more customer companies have to carry out the promotional


activities in unique way. Max fashion has maintained that uniqueness & has
succeeded in attracting customer. As the competition is becoming stiff in the
market the activities conducted by the company are unique, that have
bought fruitful result to the company. Among them sale promotion, gift
voucher to customer and employee and organizing events by Max fashion is
one of the leading activity or unique among all other activities & has high
influence on the customer walk-in

The qualifying factors for entry into the contest are the desire to create new brands, and
deep pockets to sustain investment in branding and market-building. However, the success
factors to win in the contest are higher drive and enthusiasm to take the hits that will invariably
come, an ability to tap the consumer's sense of adventure and differentiation, the talent to
develop a product-service offer that is distinctive, and a pool of common sense to minimize the
losses during the initial period of investment which can be month or year

With all the challenges that retail offers, to those who have the courage to venture in,
let's say, "happy retailing!" will be successful like always.

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