This report basically describing Nims apparel current and future marketing plans. Here being a Marketing director of Nims apparel did some strategic analysis of Nims apparel in-order to remove or minimize the majors issues and addressed some new strategic tools and techniques.
By analyzing strategic tools here we identify the major issues, which was disturbing Nims apparel business in different ways, the analysis of strategic tools help to know the level of competition with in industry. Analyzing the PEST, and the swot analysis, which help to know the level of competition, opportunities and threats in external environment. Beside this we knew the strengths and the weaknesses of the Nims apparel, By doing this here in the following part of the report I have suggested some marketing strategies which will help full in-order to make the business of Nims apparel more effective and efficient.
In the following report we looked into the Nims apparel current product and service performance, in-conjunction to it I suggest strategies to make it more effective. The setting of objective for future, and developing the marketing strategy was the main part of this report, which made by using some strategic tools and techniques. The most important part of the report was the control process, here I have suggest some control techniques to make the business more effective and developed contingency plans to come out successfully if any unpredicted or incident happen in the internal or external environment.
Current situation and trends
Industry analysis: (5force model) For the purpose of industry analysis we have used the porters Five-force model, the result of analysis is attached in the appendix.
- Industry competition: The out comes of five force model are, the first quadrant of the model indicates That many local and international competitors competing in the competitive arena, it means that the competition in the market place is extensive. Nims apparel also competing in the same market pretty, with its most famous local brand double bull. The market extensive competitive all local and international brands competing with each other by using different marketing promotional activities, the only one core source of promoting products is advertising and public relation. Where all brands fighting for ad placement at front page of well known local news paper’s and other media sources, but Nims apparel is much famous for its promotional activities where they are using public relation in conjunction with India top model’s and film actors. This activity is differentiating Nims apparel from its Competitors.
- Pressure from substitute product: The second quadrant of five force model is all about the available substitute products, the analysis proved that there is no much choices for customers in the market to use it as a substitute of ready made garments. Because the environment is totally changed after 1991 liberalization, people looking more for formal and western dresses then local made or traditional dresses this point indicating this the Indian market is competitive but still full of potential’s.
- Bargaining power of suppliers: Third and the most important quadrant is about the bargaining power of suppliers, the Porter’s five-force analysis indicates that. The bargaining power of supplier’s in cloth industry comparatively low, if we look into the factors which analyze in the model showing that the availability of raw material is there and other factors also favorable to the situation. Industry competitor’s analysis indicating this, Nims apparel can enjoy the market by having few reforms in their processes which will address in the following part of the report.
- Bargaining power of buyers: The fourth quadrant of porter’s five-force analysis dealing with the bargaining power of the buyers in the cloth’s market, The bargaining power of buyers indicating significantly high power from buyers. There are few strategic points which highlighting the power from buyers for an example availability of more options, huge number of price and quality conscious customer’s, high competition in the market, and educated customers. After looking into overall dilemma where the bargaining power of buyers is slightly high, is heavy indicator for Nims apparel to keep all factors related to buyers keep in mind for better performance and results.
- Potential new entrants/ threat of new entrants: Easy to establish distribution channels, and all rural and urban markets are in access. The fifth quadrant of the five force model is indicating the high threat of new ntrants; the reason is low entry and exit barriers, low cost of skilled labor and availability of raw material. The high threat of new entrants into the industry is an indicator for Nims apparel to play consciously in the market and spend more resource on innovation instead of imitation. The installation of R&D will be a good step for Nims apparel to take in order to prevent the market share from new coming players.
(SWOT) competitors analysis
By attempting different strategic tool’s analysis, which indicate that the level of competition with in the Indian market is significantly high. The SWOT analysis of the competitors has been carried out. The Strengths of the existing competitors is that they have got production and brand advantage and are widely renowned in the market. The weaknesses of the competitors less familiarity with Indian market, and Indian trends the major threat can be seen from Arrow, van heusen, Dunhill because these are well known international brands in the market place.
The opportunities available here are that the market is a growing one and there are a lot of opportunities or Nims apparel to compete in the market place by applying latest technology and strategic tools since the financial position of the company is significantly stronger so Nims apparel Can occupy a large part of the market with the correct strategies. By taking out the SWOT analysis of the Nims apparel which indicate that, the Indian market is full of opportunities beside threats.
For an example the size of the market itself a great opportunity for investors to invest, not only the size of the market even other opportunities are there for an example cheap labor, average buying behavior, the infrastructure and the availability of raw material. These all are those factors reducing the dissonance of investors in term’s of competition. For an example if we look into it from other perspectives and compare the level of competition of Indian markets with European or western markets, it is quite easy to survive and compete in the Indian market then any other market.
Marketing mix analysis: (4p’s)
The marketing mix analysis consist of 4p’s, the objective of analyzing the marketing 4p’s is to know the existing level of these 4p’s in case of Nims apparel how its playing in the market place and later on the basis of these analysis will propose marketing strategies.
Product: Currently Nims apparel offering only two categories of ready made shirts into the market, formal wear and casual wear formal shirts largely competed on the basis of quality and casual shirts largely competed on its distinct design.
There are so many other local and international brand’s competing in the same market by offering different designs and products. The market share of Nims apparel is significantly high due to its quality products, using high technology to produce the product with zero defects. The profit margin set by Nims apparel is 20% to 22%, beside this Nims apparel management is conscious about their customer’s to keep them satisfied for this purpose Nims apparel employed fifteen skilled designers and fabricators to develop new designs for their customers.
With doing this Nims apparel introducing 500 new designs every year. The production capacity of Nims apparel is slightly high due to the occurred demand in the market place, according to the marketing director Thodani the production capacity for ready made shirt was 2000 units per day which now increased to 3500 per day due to the occurred demand in the market place.
Price: The price was an important competitive weapon throughout the ready made shirt industry, due to the intense competition in the market and the high bargaining power from the customers.
The cost of production in case of Nims apparel was slightly low because they have their own production and the second reason is availbailty of cheap labor and material. The price of Nims apparel was competitive n formal ware but slightly high in formal wear due to its good and finished quality, but still the prices of Nims apparel meeting the perceived customer price.
place: Nims apparel believed in easy access to stores, that’s why they opened 50 franchises all over the India and Double Bull shirts were sold in 120 to 150 shops all over the India.
Nims apparel had a strong level of distribution and logistics Double Bull was the only local brand which was distributing there products via distributor’s to make sure the effectiveness of the product and to make sure the availability of the product all over the India, Nims apparel was distributing all their products to their customers with out any freight charges and assigned responsibilities to each agent to distribute their product and collect cash. Assigned responsibilities to the agents were to play a role of conduit between manufacturer and retailer, by applying these Nims apparel got a series of loyal retailer which was the main contributor in their revenue.
promotion: Nims apparel was using different sources of communication to communicate with their target audience more effectively, as important element of promotion strategy double bull wan changing their label’s and packaging every year both to identify their the shirt by season and discourage counterfeiters.
Nims apparel was using different promotional activities to promote their double bull brand for an example advertising, sales promotion, public relation etc. but the major promotional activity was the Double Bull annual sale, a highly advertised event spawning much consumer awareness and interest.
(pest-lNDCalysis) environmental analyses
This is a tool through which we recognise the impact of following factors:
After getting the independence from the British in 1947, India decided to have a democratic political system. Their economic system was modelled on socialist-style. In this approach the economy of the country was strictly controlled the entries and exits of the domestic and multinational companies. Though Multinationals has the other restrictions as well, but after 1992 India started to Deregulate in order to give some ease to the foreign investments in India. After analysing the political factor, we can say that it is suitable for Nims apparel to operate and expand their business. .
India is heavily populated country. The per capita GDP was quite low at USD 400. After adjusting the purchasing power parity, India’s economy exhibited a per capita GDP of USD 2540 and aggregate GDP of USD 2. 66 trillion and it was declared fifth largest economy in the world with the third largest GDP in Asia. The above factors of Indian economy are showing that they have a very potential market for clothing business.
India has a much-diversified social structure. There are more than 20 languages spoken and over 200 dialects. 0% of the population is illiterate so therefore advertising reach them via billboards and audio visual means. For the campaign at national level the advertising is done in at least 8 languages. The infrastructure of India is not well developed. These factors can be providing difficulties to the Nims apparel operations in India.
Technology wise India is growing very fast. The IT infrastructure is well built and it’s recognised all over the world. The Indian people are much trained and have the technological skills in order to get the job done. These indicators are showing that in India Nims apparel can easily operate its functions and operations.
Since India has started to deregulate in 1991 so multinationals get the ease to enter into the Indian market. The laws for the foreign investment are relaxed and there are fewer barriers for the international companies. The government is also very supportive to the foreign investors and trying very hard to provide all the facilities and guidance.
Naturally India is a safe place, because they have less umber of hurricanes, earthquakes and the climate is also good. They have four seasons which are suitable for all the products that are provided by the Nims apparel. There are some negative indicators as well; the example of it is the heavy moon soon season in Mumbai which almost disturbed the normal routine life of every Mumbai citizen.
India has most of its population lying in the middle class sector. People are educated good enough in urban areas. The trend of eating out is also increasing. The life style is also modernized.
India has got big population and the segment of the young generation is also large which is beneficial for the Nims apparel. They can attract more customers by emphasizing on the young generation. This was the analysis of Indian macro factors that will impact on the Nimsa apparel business in India. Through the analysis we come to know that Nims apparel have good potential segments of customers which they can serve easily because the government is also supportive to the investment.
The current Indian culture is also supporting the ready made cloths industry. : performance review for existing product and service: Currently Nims apparel playing in the market with its two major products, formal and casual wears playing very well. We can compare the performance review of the organization in the following manners. review organizational accomplishments:
- Largest number of owned out lets all over the India
- Effectiveness in distribution and strong relation ship with supplier
- Increase in overall profitability
- Installation of new plant Applying total quality management process into the organization
These are those accomplishments that accomplished by Nims apparel since its first launch in Indian market, the biggest accomplishment is the increase in sells tremendously and increase in over profitability of the organization.
Availed learning opportunities: Continues learning about market trends is an strong and effective indicator about Nims apparel performance review, the introduction of Double bull formal wear is showing this Nims apparel is very conscious about learning and opportunities in the market place.