GROUP 5
Arvind Limited
COMPANY OVERVIEW Arvind mills was founded in 1931 and is based in Ahemdabad, India largest and worlds 3rd largest producer and exporter of denim. Flagship company of Rs 20 billion (USD 500 million) Lalbhai Group. In the early 1980s, the company brought denim into the domestic market, thus started the jeans revolution in India. Manufactures a range of cotton shirting, denim, knits and bottomweights (Khakis) fabrics. India's largest & worlds fourth-largest producer and exporter of denim. Today it not only retails its own brands like Flying Machine, Newport and Excalibur but also licensed international brands like Arrow, Lee, Wrangler and Tommy Hilfiger.
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IGTC 2008-10
Arvind Limited
Arvind is expanding its Denim manufacturing capacity to 140 million meters by setting up 30 million meters of denim manufacturing plant in Bangladesh. Arvind caters to the high quality textile requirements of Europe, US, West Asia, the Far East & the Asia Pacific in more than 70 countries. Denim contributes 60% of the companys turnover. the company is one of the leading players in domestic ready-to-wear garments segment.
SWOT Analysis
Strengths
Weakness
Continuous Product Development. Presence in only big cities World class product & design Premium pricing. innovation Assurance of quality and consistency. Delivery Adherence on time every time.
Competitors like Raymond, Changing retail scenario Bombay Dyeing, Madura Rapid growth in age group of Garments 15-44 years. Cheap imports from China, Has the potential to become the Thailand Bangladesh market leader in kidswear. Excise duty.
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Opportunity
Threats
Marketing strategy STRATEGY OF MASS MARKET STRATEGY OF NICHE MARKET HYBRID PRICING STRATEGY
IGTC 2008-10
COMPETETOR ANALYSIS
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MARKET-CUSTOMER SURVEY
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COSTUMER SURVEY
FACTOR FEEL QUALITY/DURABILITY DESIGN COLOUR PATTERN COMFORT FINISH 1.2 1.3 2.5 2.4 2.5 1.6 2.1
AVERAGE RATING
COMMENTS MOST PREFERRED MOST PREFERRED PREFERRED PREFERRED PREFERRED MOST PREFERRED PREFERRED
PROMOTIONS
BRAND IMAGE
2.1
PREFERRED
3.3
4.4 4.8
NEUTRAL
LEAST PREFFERED NOT PREFERRED
PRICING
2.3 2.9
PREFERRED NEUTRAL
PLACE
RECOMMENDATION OF RETAILER EVERYTHING UNDER ONE ROOF PROXIMITY OF THE STORE PARKING SPACE
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Majority of Consumers surveyed are falling into 25 -30 (28%) and 30 35 (32%) in age group. Age No of Response Percentage % 25 30 30 -35 35 40 40 45 45 50 Above 50 28 32 18 10 12 0 28 % 32 % 18 % 10% 24% 0%
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Occupation of buyers
Category No of Response % Student 8 Business 38 Private Job 26 Gov. Job 24 Any other 4 Percentage 8% 38 % 26 % 24% 2%
Majority of Consumers are falling into Business (38%) and Private Job (26%) group
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Earnings of buyer
Category No of Response Percentage % 4 16 42 22 10 6 4% 16 % 42 % 22% 10% 6% Less than 1 Lakh 1 2 Lakh 2 4 Lakh 4 6 Lakh 6 8 Lakh Above 8 Lakh
Majority of Consumers are earning 2-4 Lakh (42%) and 4-6 (22%) Lakh per Annum
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As per survey Most Consumers prefers Checks and Stripes while Buying Shirt fabric.
30% 25%
20%
15%
10%
5%
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As per survey Most Consumers prefers plain and stripes while Buying Suit fabric.
60% 50%
40%
30%
Series1
20%
10%
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As per survey Most Consumers are inspired by reference from friends and Ads in Newspaper to buy fabrics
50% 45% 40% 35%
30%
25% 20% 15% 10% 5% 0% Local ads in Newspaper Hoardings Reference from Friends Retailer's Recommendation
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Majority 78% of the respondents are not aware of Arvind store near their area. Effort should be done to increase brand awareness.
Chart Title
Yes 22%
No 78%
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Customers prefer to buy Shirting fabric within the price range of either Rs.800- 1400 or Rs.1400- 2000. In Suiting most of the customers preferred to by Suiting fabric within the price range of Rs. 6500- 10000 and the second preferred price range is Rs. 16000- 22000. The survey shows that customers prefer to wear Plain Suits and Trousers followed by stripes fabric and while in Shirting Checks Fabric and Stripes Fabric is most of the customers favorite followed by plain fabric. Most of the Customers like to wear Cotton mix fabric followed by 100% Cotton fabric. Most of the Customers showed interest in buying Perfume along with fabric followed by Shocks, Wallet, Suit Pin, Ties, etc. that customer want to buy with fabric.
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As per the survey most of the customers never exchanges fabric after purchasing however those who exchanges sometimes is mainly because of Color bleeding and Design defect.
Newspaper is the most common source of customer knowledge about various sales promotion and the other common sources are Banners and Hoardings, TV, Word of Mouth, Radio etc. accordingly. Among newspapers most of the respondents read Times of India.
Customers are interested in stitching the fabric by Tailors of their own choice rather than to stitch it by the retailer. When it comes to offer customers are more interested towards free gifts and instant discounts, movie ticket is the next
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Segmentation
TARGET CUSTOMERS
There is a specific target market for these fabric products, i.e, Targeting: Male (20-45 years) . Generally, the business class , career oriented people and professionals.
It targets the metro cities basically tier I, II and III cities Arvind had 30% sales in these cities. And get 50% sales from the IV and V tier cites.
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Positioning
In shirting category Arvind include fabrics with non-iron properties, mechanical finishes, printed fabrics apart from the cotton and cotton blends in Linen, Lycra, Polyester, Modal, Silk etc. with varieties in yarn dyed and solids.
Differentiation
The finishes like liquid ammonia (first used by Arvind), made the fabric high in quality and feel. And the use of Giza cotton and vat color made the differentiation.
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