Essay: 'BRANDING ESSENTIALS FOR FASHION ACCESSORIES IN INDIA'

EXECUTIVE SUMMARY
In this project the main objective was understand the market for the entry of a new competitor and launch of a new company in a new field. Thus, there is requirement to know the market very well. As disposable income of families is increasing the living standards of people is also increasing and more people are willing to shower huge cash to get the best services, products, deals.
This project started by getting the names of the boutiques in the locality to know about their rating, reviews, addresses locality, etc.
Then the focus was on youth most visited places like pubs and coffee shops to learn about their taste and preferences.
Then the focus was on various different positioning and to get know about their industry with example as in the same industry how differently are these brands positioned according to the target market to which they cater.
The job was to get know about their Name of the store(is their name relevant and goes with the theme of the products and services which they offer), how well managed is their display area, space is there space of movement in the showroom, Is there logo appropriate or not, interiors, display area, display type, trademarks, store atmosphere(how pleasant is the atmosphere there and is according to the name and actions of the company)and how these trademarks define them as a brand and let them stand uniquely among other player and competitors.
Now to visit malls and get to know about their arrangement of brands and various factors like interiors, music which is played in the background, etc.
Visit to various boutiques in the locality and nearby areas to know about their fast moving products, price range, etc.
Thus, getting these data helps in the launch of a new showroom of creative grains in Hyderabad. The findings and recommendations are mentioned at end of report.
INTRODUCTION
The Company History
Creative Grains Private Limited is a Private Company incorporated on 25 February 2014.It is a start up company.
It is classified as Indian Non-Government Company and is registered at Registrar of Companies, Kolkata.
Its authorized share capital is Rs. 100,000 and its paid up capital is Rs. 100,000.
Directors of Creative Grains Private Limited are Prashant Vijay Kumar Sarawgi, Alka Bagla and Swayam Bagla.
The Email address of company is cr.grains@gmail.com and its registered address is 15/1 CHAKRABERIA LANE, KOLKATA – 700020, West Bengal INDIA.
Current status of Creative Grains Private Limited is – Active.
Creative Grains is an Exclusive Outlet for Episode, Dmart Exclusif and S R Artefacts.
They function as a one stop shop for all your silverware products as because of their ensemble with these three major players
EPISODE
Dmart Exciusif &
S R Artefacts
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A brand of WHORRA Enterprises, successfully embarked upon custom made silverware, trophies and mementos, exploring the ever-expanding horizons of the human quest for that exclusive memorabilia which has forever eluded the creative reach.
Though traditional silver products have always been popular, there was a sudden spurt in demand for innovative silverware. They have their retail outlets in Delhi, Gurgaon, Mumbai, Ludhiana and Kolkata. Their product range caters to wide range of market and their product line includes
Tea Sets, Religious Range, Candle Stands , Salt & Pepper Sets, Photo Frames, Boxes , Vases ,Napkins & Ring Holders, Women’s Gifts , Men’s Gifts ,Baby’s Gifts, Trays, Bowls & Dishes ,Bar Accessories, Key Rings, Cutlery ,Christmas Range, Stationery ,Decorative Figurines And Miscellaneous.
DIFFERENT PRODUCTS OFFERED AT CREATIVE GRAINS SHOWROOM ARE 92.5% PURE SILVERMADE.
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Dmart exclusif
D’Mart Exclusif – A national player in the premium luxury segment dedicated to offering a repertoire of aspirational and lifestyle objects d’art handpicked from leading International design houses across the world, known for their refinement and high-quality.
Worldwide Limited Editions
D’Mart Exclusif is the pioneer in introducing a collection of Worldwide Limited Edition representations of Indian deities handcrafted in Sterling Silver, Porcelain and Marble. In 2001 the 1st worldwide limited edition was launched in sterling silver and presently it has an ensemble of 63 different ranges of exclusive limited edition creations being exclusively marketed by d’mart Exclusif both in the domestic and international market.
Each diety is a culmination of conceptualization & designing collaborations with renowned Italian and German artisans. These peerless creations are embellished with Swarovski crystals, Semi precious stones, subtle enameling and 24 K gold foils.
Headquartered in New Delhi, d’Mart Exclusif has a franchisee tie up with 17 premium showrooms and boutiques in Delhi, Mumbai, Kolkata, Chennai, Pune, Nagpur, Hyderabad, Bangalore, Visakhapatnam in India and Netherland, California, New Jersey & Michigan in abroad.
d’Mart Exclusif has been built on the promise of uncompromising quality in the merchandise that it sources and offers, and an unwavering commitment to offering the finest luxury products from across the World. d’Mart Exclusif seeks to bring art connoisseurs in India closer to the artisans and the master craftsmen of the world.
S R Artefacts Pvt Ltd.
They are wholesalers, manufacturers and suppliers of promotional bags, wooden gift items, corporate gifts, promotional items, corporate gift items, promotional gift items, promotional t-shirts, promotional designer t-shirts. Corporate Gifts, Business Promotion & Advertising Give Away.
S R Artefacts Private Limited was registered on 05 August, 1998. Their registered address on file is 3, Shiv Smriti Chambers, 49a, Dr. Annie Besant Road, Mumbai – 400018, Maharashtra, India.
S R Artefacts Private Limited currently has 2 Active Directors / Partners:
ZODIAC SIGN (AQUQRIUS)
Prashant Vijay Kumar Sarawgi, Ajay kumar Satya Narayan Sarawgi, and there are no other Active Directors / Partners in the company except these 2 officials. S R Artefacts Private Limited is currently in Active Status.
INSIDE OF CREATIVE GRAINS SHOWCASING STERLING SILVER AND SILVER PLATED PRODUCTS
DISPLAY OF SILVERWARE AND SILVER WARE HOME DECOR AT THE SHOWROOM OF CREATIVE GRAINS IN KOLKATA, WEST BENGAL
OBJECTIVE OF THE INTERNSHIP
To analyze the growth opportunity of creative grains in altogether new field of industry.
To establish itself in APPAREL INDUSTRY and create an different market for itself and cater to the different needs of customers and the understand the market well before getting into the battle ground
This can be done by conduct market research for Creative Grains which would help them increase their market share in Hyderabad market.
To study consumer behavior and understand how company manage their operations and meet the market requirements.
The objective of the proposed project is to lay the foundation of company in the new market place as new comer above measures.
LIMITATIONS OF THE PROJECT
As an exploratory research is being conducted there are chances that the results might not be completely accurate because of lack of secondary data for cross-validation.
As the research being conducted is mostly being done by collecting fresh data or secondary data, there is a chance that it might be biased and not reflect the real picture.
Some of the data may be confidential, therefore it’s likely that some of it might not be fully mentioned in the report/ or if mentioned will be done so only with the consent of the company management.
Forecasts based on current demand trends and performances aren’t possible as the market is mostly driven by market forces of demand and supply.
PROPOSED METHODOLOGY
Both primary and secondary data has to be collected:
Primary data:
From store manager
From store staff
From customers
Secondary data:
From internet
From catalogues
From electronic media
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VARIOUS ANALYSES
THESE MARKETING TOOLS CAN BE UTILISED TO UNDERSTAND THE MARKET CONDITION BETTER AND ESTABLISHED IN THE MARKET
ANSOFF MATRIX ANALYSES
It is used by marketers who have objectives for growth. Ansoff’s matrix offers strategic choices to achieve the objectives. There are four main categories for selection.
Market Penetration
Here we market our existing products to our existing customers. This means increasing our revenue by, for example, promoting the product, repositioning the brand, and so on. However, the product is not altered and we do not seek any new customers.
Market Development
Here we market our existing product range in a new market. This means that the product remains the same, but it is marketed to a new audience. Exporting the product, or marketing it in a new region, are examples of market development.
Product Development
This is a new product to be marketed to our existing customers. Here we develop and innovate new product offerings to replace existing ones. Such products are then marketed to our existing customers. This often happens with the auto markets where existing models are updated or replaced and then marketed to existing customers.
Diversification
This is where we market completely new products to new customers. There are two types of diversification, namely related and unrelated diversification. Related diversification means that we remain in a market or industry with which we are familiar. For example, a soup manufacturer diversifies into cake manufacture (i.e. the food industry). Unrelated diversification is where we have neither previous industry nor market experience. For example a soup manufacturer invests in the rail business.
Ansoff’s matrix is one of the most well know frameworks for deciding upon strategies for growth.
In this matrix creative grains can be placed under unrelated diversification category as fashion industry is totally new industry to them and they need every single detail of industry starting from where to open their boutique to infrastructure to products to customers mindset ( what they want) and what is market trend, etc.
Diversification – involves developing new products and putting them into new markets at the same time. Diversification is considered the most risky strategy. This is because the business is expanding into areas outside its core activities and experience as well as targeting a new audience. It also has to bear the costs of new product development.
PORTERS FIVE FORCE MODEL
It is a simple model to analyze level of competition within an industry. It is based on five forces which affect the market and the industry itself. It determines the competitive intensity and profit potential of the industry.
HOW MUCH POWER IS HELD BY THE CUSTOMERS?
(BARGAINING POWER OF CUSTOMERS):
Buyers refers to the customers who finally consume the product offered by the company and buyers have the potential to bargain down the price as they are able to exert pressure on the company or the firm and by demanding better services and products they increase the firm cost in the industry.
The more powerful the customer the lower the price and buyers power will be higher if they have many alternatives.
The corresponding strength of buyers is affected by:
‘ Size and concentration of buyers relative to suppliers: Bargaining power will be influenced by whether it is the buyers or the suppliers in the industry who are more powerful. The number of buyers and the alliances between them will be significant, as will the number of purchases each buyer makes.
‘ Buyers’ price sensitivity: Buyers will be stronger if they are able to negotiate prices.
‘ Product differentiation: Product differentiation is an essential tool in the hand of a firm or company that can be utilized against competitors.
‘ Switching costs: If it is likely to cost buyers to switch suppliers, then their strength will be reduced.
‘ Information: The greater the access that buyers have to information about products and other suppliers, the greater their strength will be.
HOW MUCH POWER DO SUPPLIER HOLD?
(BARGAINING POWER OF SUPPLIERS):
Supplier is one who supplies you with raw material for your finished goods and they can affect your business a lot.
For example you are a bread maker and there is only one supplier of flour then you will be depended on him or her for raw material as you have no other option.
Suppliers can charge a lot for their unique service if they are your only option for the bread maker or they might refuse to work
The corresponding strength of suppliers is affected by:
‘ Number of suppliers: The power of suppliers will be greatest when there are few suppliers for buyers to choose from.
‘ Switching costs: If it is likely to cost customers to switch suppliers, then the power of suppliers will be greater.
‘ Differentiation of suppliers’ products: If the products offered by suppliers are very different from each other, some suppliers may have an advantage over others.
‘ Cost of supplies relative to selling price of product: The margin between the cost of the components and the selling price of the product will impact on the strength of the suppliers.
‘ Forward integration: If there are strong alliances between some buyers and some suppliers, then the relative strength of the remaining suppliers will be less.
‘ Importance of volume to supplier: If suppliers are reliant on one, or only a very few, buyers then their strength will be less.
WHAT IS THE THREAT THAT CONSUMERS WILL SWITCH TO SUBTITUTES?
THREAT OF SUBSTITUTE PRODUCTS AND SERVICES:
Substitute Products are alternative brands, products or services fulfilling the similar needs of customers.
When the switching cost (The cost incurred when buyer shifts from the existing supplier to another one and when the cost is higher than it is much more difficult to shift) is very high then substitute products affect the industry and rivals.
The threat of comparable products will depend upon:
‘ Existence of close substitutes: Substitute products are more common in some industries than in others.
‘ Switching costs: The greater the cost to customers to switch to a substitute product the less the threat of substitution.
‘ Perceived level of product differentiation: People are less likely to switch to an alternative product if they think that it would be difficult to replicate all the features of the original product.
‘ Buyers’ propensity to substitute: Customers in some markets are more likely to remain loyal to a product or service. In other markets customer loyalty is rare.
INTENSITY OF RIVALRY
The strength of the competition between firms already in the industry is affected by:
‘ Rate of industry growth: Rivalry may depend upon life stage of industry and whether or not the market is growing fast.
‘ Number of competitors and the balance between them: The more competitors there are the greater the competition tends to be. The intensity of rivalry can also be greater when the industry is dominated by a few large firms.
‘ Diversity of competitors: The nature and strength of the competition may depend on whether or not all competitors are in the same core business. The key activities of the businesses and the existence of alliances or partnerships will also have an impact.
‘ Differentiation of rival products/services: If there are no clear differentiations between the products/ services offered, then the competition is likely to be more intense.
‘ Switching costs: If it is likely to cost customers to switch suppliers, competition may be avoided, or conversely, it may be particularly intense (customers will need to be offered many more incentives to switch).
‘ Excess capacity and exit barrier: If there is excess capacity and exit costs are so high that they make exit difficult, rivalry will be intense.
‘ Brand equity: Some brands in the market may have a higher perceived value than others.
‘ Level of advertising expenditure: Some businesses in the market may have access to greater financial resources to spend on advertising.
THREAT FROM NEW ENTRANTS:
‘ Economies of scale Economies of scale occur where efficient production requires large-scale operation and, hence, funding. It might be possible for a company to enter at a smaller scale, but this is likely to be costly and/or less effective.
‘ Product differentiation: Creating a brand identity that differentiates a product or service from the competition and encourages loyalty can help to create a barrier for others. Brands that enter the market earlier are often perceived to have an advantage.
‘ Capital requirements: The need to invest large financial resources in order to enter the market can create a barrier.
‘ Switching costs: If it is likely to cost customers to switch suppliers, then it is more difficult for new entrants to gain sufficient business.
‘ Access to distribution channels: An inability to gain access to distribution channels can be a major barrier. Existing partnership between retailers and wholesalers can make it difficult for new entrants. The internet, however, has provided many companies with an easily accessible ‘virtual shop front’.
‘ Legal and regulatory barriers: The imposition by governments of regulations and the granting of licenses or patents can act as a barrier.
‘ Expected retaliation from existing businesses: Businesses may try to prevent companies entering the market by dramatically reducing their prices to the point where it is not viable for new entrants to compete. When existing companies make announcements about new products well in advance of launch the potential market for new entrants can also be reduced.
Creative grains fall under the new entrant position as the will be penetrating this new market and want to establish themselves in Apparel/ Fashion industry.
THE MARKETING MIX
PRODUCT
Quality: Is the ability of the product to fulfill customers’ needs and expectations. For example for a food industry quality is Nutritional value, Taste, Shelf life, Texture, Smell, etc.
Variety:’ Variety is the spice of life’. When a customer is given a choice to choose from a variety of products then the frequency off visit by those customers will increase and they will inform other people about the shop. So , every new shop or company should have variety and versatility in their product range or services.
Design: The design should be up to date and fresh stock should be placed on the shelves to fight back competitors.
Features: Features should be crisp and clear in terms of design and there should not be any duplication or repetition in the new stock.
Brand name: The brand name should distinguish itself from other brand names and should be altogether unique as this would create an impression in the mind of new customers.
Packaging: Special emphasis should be laid on the packaging of final product it should protect it from harsh weather conditions like rain. For example a fast food company packs its burger in paper bag then the sauce will drip down the bag and ruin anything instead of this if that paper bag is made up of leak proof material and sealed well then there are less chance of leakage and the product will reach safely.
Services: When the Customer enters your shop you can attract them with your services at the shop and keep the kids engaged with some attractive toys or characters so that their parents can shop without worrying about their kids’ whereabouts. For example At MC Donald there is Ronald, play stations and toys for kids.
PLACE
Locations: Location of your shop plays a very important role in attracting customers
Channels: Distribution channels which help the company to connect to customers and reach them easily.
It includes three channels namely:
Direct, Modern and Traditional
Coverage: How much products of the company covers the market and are they in the reach of customers and they encounter these products frequently it is called as Intensive distribution.
When producers rely on few intermediaries then it is Selective distribution.
And when he chooses very few intermediaries then it is Exclusive distribution.
Transportation: It plays a very important role if the finished good reaches its destination on time then customer loyalty will be intact with the company. For example if somebody orders some sports equipment online and the delivery time shown is 2 days and the product reaches the customer within the stipulated time then that customer will buy products from you every time he shops.
Inventory: It facilitates the balance between demand and supply. Pilling large amount of inventory as well as low level of inventory is a problem. Care should be taken while forecasting the demand. High amount of safety stock increases the holding costs of this inventory. This high level of safety stock shows ineffective supply chain management decision.
Logistics: It is the flow of material from point of origin and point of consumption or utilization.
UNDERLYING PHILOSPHY BEHIND LOGISTICS
PRICE
List price: List price is not the real price and the company reduces the list price to make the customer attracted to get the product at a low price but actually he is earning a good profit.
Discounts: By providing a good amount of discount customers can be lured towards the shop. This phenomenon happens during change off season and festive seasons.
Payment period: Number of days company take to pay off credit purchases. Smaller the payment period shows the credit worthiness of the company.
PROMOTION
Advertising: Advertisement attract a lot of customers, they get to know about the company and there schemes and offers. This is a best platform to let the target audience know about the launch of new companies and showrooms.
Public Relation: This is nothing but the way of communicating with the public and media. By working on this parameter one can maintain good relations with the target audience.
By keeping these four factors in mind can help the upcoming company in this new field and establish a strong foundation in the market.
SWOT ANALYSIS
Diagram showing strength, weaknesses, opportunities and threats
Strengths
‘ High quality fabrics and prints
‘ Use of latest digital print technology
‘ Fashionable and wearable Exclusive and unique print designs
‘ Fresh and fun print designs
‘ Boutique brand ‘ aspirational, specialized designs
‘ Capsule collections-few important collection of clothing that will not go out of fashion.
‘ Specialized product range
‘ Strong use of color
‘ Refreshing and fashion forward prints
‘ Available from a variety of stockiest
‘ Promotional website
Weaknesses
‘ Small product range
‘ Small, boutique brand ‘ only available through certain stockiest
‘ Only caters for sizes 8 ‘ 16
‘ Not much advertising coverage
‘ Very distinct, statement prints
‘ Not commercial enough for mass appeal
‘ Quite a niche market ‘ style, colors, age range
Opportunities
‘ Raise brand profile/ customer awareness through advertising and connections to stockiest
‘ Increase product range
‘ Explore and expand print designs
‘ Open standalone stores
‘ Increase stockiest
‘ Use innovative printing methods
‘ Incorporate sustainable elements into designs
Threats
‘ Competition from other boutique brands
‘ Market saturation
‘ Economic recession
‘ Higher price points than other high street brands
‘ Not able to compete with cheaper, lower quality imitations on high street
‘ Not able to gain a big enough brand profile through select stockiest
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DETAILS ABOUT
THE PROJECT
First task
My first task for the project is to revert with a list of the following in my city:
1) One of Boutiques and High End Apparel Stores.
2) One of Youth Hangout Places (Coffee Shops, Pubs, Cafes etc.)
Any National / International Chains should not be listed like CCD, Manyavar and so on.
I was required to create two separate excel sheets for Boutiques and Hangout Places and revert with details like:
?? Name
?? Address
?? Logo
?? Type
?? Pictures/Images if any.
?? Contact Details if Possible.
At the same time, you would have to rate their Brand Positioning on a scale of 1-10 on the following aspects:
?? Name
?? Address
?? Logo
?? Overall
Positioning Scale:
1: Louis Vuitton
10: United Colors of Benetton
Second task
Second task for the project was to come up with an exhaustive list of the Elements involved in different Brand Positioning Points in Retail.
It was required to first draw up a list of different kinds of Positioning Points in the Market and then delves into what one feel are the Retail/ operational elements that each positioning requires.
Basic lists of elements include and are not limited to:
?? Name
?? Address (Locality)
?? Logo
?? Display Area
?? Display type
?? Interiors
?? Industry
Each element should be followed by a brief Description of how you feel the element needs to be placed as per the different types of Positioning.
Two types of positioning that you must cover apart from the rest are:
?? High End Brand (Swarovski)
?? Cool end positioning (Happily Unmarried)
Third task
My third task was to visit malls and see the arrangements of different brands.
Fourth task
My fourth task was to visit boutiques in my area and get to know about their prices of products, Fastest moving products, take pictures of their showrooms and boutiques, interiors, display of clothes, product sold, average price, display type of showroom, display area, rating, pictures of logo, contact details, etc.
And forward these data to the company for further study to get an idea of a boutique and how it operates.
FINDINGS AND RECOMMENDATIONS
FINDINGS
I get to know some boutiques are getting custom made products done for customers and they give huge discounts in festive seasons and their regular customer get various benefits from boutique services and get their products on the basis of requirement.
For example if a customer is in a hurry the boutique would get the date on which the customer wants the finished product they will immediately get it done and if customer is not in a hurry they will give him or her the exact date of collection of the dress.
This feature builds a bridge of loyalty between the buyer and seller and the customer becomes a regular customer of the boutique and by listening to them good relations is developed.
In few boutiques I came across many workers who listened to my queries and where attentive at all-time whenever I was facing some problem with the cloth material they gave me perfect information about the dress, details about that who much will it cost me to get a dress stitched by them and they introduced me to latest designs in the industry.
If I told them I have a fixed budget they showed me dress material within my range while some boutiques which I visited where least bothered with the customers their casual behavior lead to less interest in the boutique and its products.
RECOMMENDATION
‘ As this is altogether a new field so it might be difficult for creative grains to adjust but with the reports and findings they can launch themselves in the market.
‘ Before entering this market they have to consider various factors and things in mind that is the cost of boutique, place of their showroom at that place where they can attract a large crowd.
‘ For example: Shopping malls or in Main Market where are other players like Banjara hills.
‘ These are the places which are flocked by people day and night. If they will encounter a new boutique they will visit it.
‘ This new business will flourish when there will be Event launch party where page three people will come and news will be in newspapers as well as fashion magazines.
‘ They can create their own website and have the facility of online shopping of readymade clothes and give advertisements about any new collection or launch of trend on the website.
‘ Company can also make many leaflets having their products and can give that to newspaper vendors they can place one leaflet in newspaper if this is done for 1 lakh newspaper the company will get enough advertisement.
‘ Now a days in case of social media if anything is popular it is being shared the new start up should make a good video or informative image which can go viral like Google search reunion video crossing near to 12 million mark if video goes viral advertisement will be done automatically without much investment we should use digital marketing to our benefit also India is 2nd in world in Facebook users.
‘ The company can reach the target audience with the use of twitter India is having 33 million users.
‘ Now days consumers are also reading online reviews we should see that there are enough good online reviews for our products.
‘ Another thing is placing advertisement at Metro stations thousands of people travel from metro placing hoardings there will not cost much and also will be having a great visibility.
‘ Company can also use print media, sponsorships, Road shows, banners, electronic boards, contests in big malls to connect with consumers.
‘ Also in various best-selling magazines & publications we can increase frequency of our advertisement.
‘ They have to hire best, creative and young designers so that they can help the company to get a start.
‘ When hiring people for boutique certain skills like She/he should be good with clients.
‘ They should have good knowledge about the industry and latest trends.
‘ They should be presentable, punctual, disciplined, etc.
MAJOR LEARNINGS
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Learnings
I got to know about the market how it works and moreover by communicating with so many people was very challenging and getting information from them boosted my confidence.
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This internship also gave me experience this learning was really great and this will be really helpful to me in near future
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I applied different marketing tools to get the best information for the company to help them and grow.
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ATTACHMENTS AND REFERENCES
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LIST OF BOUTIQUES, PUBS AND HANGOUT PLACES
‘ http://www.justdial.com/Hyderabad/Boutique-For-Ladies/ct-182557
‘ https://www.facebook.com/HyderabadBoutiques
‘ http://www.hyderabadplanet.com/hyderabad-boutiques.html
‘ http://www.asklaila.com/search/Hyderabad/Begumpet/designer%20boutiques
‘ https://www.zomato.com/hyderabad/restaurants?q=pubs
Excel sheets are separately attached in the email
your text in here…