[pic] MASTER OF BUSINESS ADMINISTRATION AWARDED BY NOTTINGHAM TRENT UNIVERSITY ASSIGNMENT SUBMISSION FORM Note: Students must attach this page to the front of the assignment before Uploading to WECSERF. For uploading instructions please see the help file online Name of Student: Atal khan Student Registration Number: 101098 Module Name: contemporary issues in strategic marketing Module Number: 9th Assignment Title:case study on Nims aparel Submission Due Date: 09 03 / 2008 Student’s Electronic Signature: ATAL KHAN Word count: 4857 Plagiarism is to be treated seriously.
Students caught plagiarizing, can be expelled from the programme Table of contents: 1.
Executive summary ………………………………………………………3 2. Current situations and trends ……………………………………………… 4 2. 1. Five force model Analysis ………………………………………4-6 2. 2. PEST LID analysis ………………………………………………6-8 2. 3. Swot analysis ……………………………………………………8 2. 4. Marketing Mix analysis …………………………………………9 3. Perfomance review ……………………………………………………….. 10 3. 1. Review organization accomplishments…………………………10 3. . Availed learning opportunities ……………………………………10 3. 3. Provided value to distirbuters & frachises ………………………. 10 4. Key issues …………………………………………………………. 11-12 4. 1. Key issues with in industry ………………………………………11 4. 2. Key issude in organization ………………………………………. 11 4. 3. How these issues can affect Nims apparel ………………………. 12 5. Objectives …………………………………………………………………. 12-13 5. 1. Long term objectves …………………………………………….. 12 5. 2.
Short term objectives ……………………………………………. 12 5. 3. Application and time line of objectives …………………………. 13 6. Marketing strategy …………………………………………………………13-17 6.
1. Core marketing strategis …………………………………………13-15 6. 2. Primary marketing strategies ……………………………………. 15-17 7. Action plans ……………………………………………………………….. 18 8. Controls ……………………………………………………………………. 19 9. Contingency plans …………………………………………………………20 9. 1. To gain sustainable advantage ……………………………………20 9. . New product development ………………………………………. 20 9. 3. New market development ……………………………………….. 20 10. Conclusion ……………………………………………………………….. 21 11. Refernces …………………………………………………………………. 22 12. Appendixes ……………………………………………………………….. 23-26 Executive summary: 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: 2. 1: 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. 2. 1. 1: 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. . 1. 2: 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. 2. 1. 3: Bargaining power of suppliers:
Third and the most important quadrant is about the bargaining power of suppliers, the Porter’s five-force analysis (appendix # 2) 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. . 1. 4: Bargaining power of buyers: The fourth quadrant of porter’s five-force analysis (appendix # 2) 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. 2. 1. 5: 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 (appendix # 2) 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. 2. 2: competitors analysis: (SWOT)
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 (appendix # 1) 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. . 3: 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. 2. 3. 1: 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. 2. 3. 2: 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. 2. 3. 3: 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. 2. 3. 4: 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. 2. 4 environmental analyses: (pest-lNDCalysis) This is a tool through which we recognise the impact of following factors: 1. Political 2. Economical 3. Social 4. Technological 5. Legal 6. Nature 7. Demographic 8. Cultural 2. 4. 1: Political:
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. . 4. 2: Economical: 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. 2. 4. 3: Social: 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. 2. 4. 4: Technological: 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. 2. 4. 5: legal: 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. 2. 4. 6: Nature: 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. 2. 4. 7: Demographic: 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. 3. 1: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. 3. 2: 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.
Nims apparel providing current and latest information and knowledge to their employee to know about current market trend and opportunities. Which in result gave inform of organizational effectiveness. 3. 3: Provided value to distributor’s and franchises: The current performance of Nims apparel is stored very well by providing value t their customers, distributors, and franchises.
For an example organizing yearly sales promotion for loyal customer and providing the same double bull brand products to the customers with less prices, No freight charges for supplying the products to any part of the India, organizing promotional campaigns with minimum cost independently for franchises. The overall all performance review of Nims apparels indicating the positive progress for their brands and products, which is contributing in-terms of profitability to the organization. 4. key issues:
The following key issues were identified with in the industry and organization, and these issues affecting t the core business in many ways. 4. 1 key issues with in the industry: The following key issues exist with in the Indian ready made cloth’s industry; these are those issues which can affect the operations of Nims apparel. • Distinct culture and style of dress in each region • Limited market size for ready made cloths • High cost of distribution, due to lake of department store’s and the infrastructure of the country • Low entry and exist barriers Complicated industry structure (difficult to asses the real level of competition) • high duties and direct and indirect taxes • regionally fragmented market • Geographic issues, two major seasons in India limited the scope and style of fabric • Insufficient national infrastructure • High economy of scales, specially in distribution due to less number of departmental store’s and trend to carry ready made garments in their store was another major issue • Distinct culture and dressing style 4. 2 key issues with in the organization:
By caring out the SWOT analysis of Nims apparel we identify some major and key issues with in the organization. These are those key issues which affecting the performance of Nims apparel, in the market place following key issues facing by Nims apparel with in the organization. • Less skilled number of employee’s • The decision making process was traditional, weak and late. • The pricing strategy was not working quite enough to meet the level of competition in the market place • The interaction between cross function’s was not effective • There was no formal grounding in marketing 3.
How these issues can affect Nims apparel: The above-identified issues affecting Nims apparel business in multi ways, the key issues with in the industry can affect the Nims apparel business in many ways. For an example the low barriers to entry and exits make the industry heavily populated which increases the bargaining power of suppliers and get the attention of government in sense of imposing additional duties and taxes on the ready made garment industry. Second major problem facing by organization is the fragmented market, it affects Nims apparel in that way it is difficult to reach to mass market at a same time.
Which cause in high cost of distribution on another hand the less developed infrastructure of the country make it difficult to reach to each and every place in the market. With conjunction all key issues there were few issues with in the organization which affecting the business of Nims apparel, for an example less skilled labor, low and decision making process, the weak interaction between cross function, and the less familiarity with professional concepts of marketing and strategic tools and techniques these are those issues which was making Nims apparel position weaker in the market place then its competitors. . objectives: By keeping in mind all above strategic tools and analysis being a marketing director of Nims apparel here I am going to propose some long term and short term objectives for Nims apparel. 5. 1. Long term objectives: • develop strong R&D team to analyze latest and contemporary trend in the market place • Applying knowledge management system into the organization to make the organization more effective and efficient • Position Nims as a local international brand to meet the customers desire to buy international products 5. short term objectives: • Position Nims as a local international brand to meet the customers desire to buy international products • Market products in multi segments, instead of relying on only one segment • Expend the range of products in both formal wear and casual wear • Organizing activities to develop and train employ’s current skills • To be no one in ready made shirt industry • Capture large market share To penetrate the market size • Develop new markets • Developing of new products 3. Applications of objectives in Nims apparel and time line: The above set objectives are long term and short term the duration and time line of set the duration of long term objectives are minimum three and maximum five years. But the time line for short term objectives is six months minimum and maximum duration of the short term objective is not exceeding then one and half year.
The purpose of setting these objectives is to make sure the effective presence of Nims apparel in the market place and increase in profitability to make the cash flow positive, and position the presence of apparel in the market as number one apparel for both formal and casual wear. 5. Marketing strategy: The marketing strategies consist of three core and four primary strategies which are. 6. 1Core marketing strategies: • segmentation • targeting • positioning 6. 2 primary marketing strategies: • product strategies • pricing strategies • place strategies • promotion strategies
The above are marketing strategies here being a marketing director of Nims apparel we have divided the strategies into to parts the core and primary, the core strategies are the main functional strategies and the primary strategies are the supportive strategies for core strategies. 6. 1. 1 Segmentation strategies: The segmentation strategy, which developed here, is the geographic segmentation, due to core business of Nims apparel. And the nature of the product Nims apparel offering to the market is ready made shirt, which is clothing and clothing is basic need in that case the best working strategy can be geographic. y applying the geographic segmentation strategy, we have to keep following factors in mind to make sure the successful implementation of the strategies successfully. The reason applying geographic segmentation strategy is Because any person of any age or social class can be the user of garments or cloths since its basic need in that case Nims apparel have to penetrate the roots of their business, inform of increasing then umber of their outlets, franchises, distributors, to make sure that their product is available all over the India.
Following factors have considered as an important factors to keep in mind before apply or put in action the segmentation strategy. • Different locations vary in their sale potential • Market growth rate in the specific area or region • Customers need, climate, social class, and wiling to pay By keeping in mind the above key factors before the implementation taken place can reduce the rate of failure. 6. 1. 2: Targeting strategies: The best working targeting strategy is the mass-market strategy, this can be the best working strategy due to the above strategic analysis.
The primary objective of this strategy is to capture sufficient volume to gain economies of scale, and cost advantage to give the real value to the market target audience. Secondly this strategy can be the best because the producer can select different group of customers and can develop different products for each segment with different marketing, sales , promotional and other marketing activities by applying this strategy the organization can target different market segments each time which will reduce the operations cost.
By doing the organization will be able to compete in the market place more effectively and efficiently. 6. 1. 3 Positioning strategies: By doing all above strategic analysis, the best working positioning strategy for Nims apparel can be me too positioning strategy. The reason Indian market is competitive and the trend of ready made garment is not on its extreme, and the availability of substitute products made the environment more competitive to keeping all the factors in mind the best course of action to position Nims apparel closely to its competitors to get the attention of customers easily.
Since many well known international brands already existing in the market place the me too strategy will be help full for Nims apparel to et and catch the attention of potential customers easily and effectively by spending minimum resources on positioning their products, and organizational brand. 6. 1. 4 Product strategies: Currently Nims apparel providing only two core products formal wear, and casual weal ready made shirts.
But Nims apparel has to keep in mind the following three levels of product before introduce any new product in near future. • Level 1 core product: To keep in mind the basic function of the product, and why customers willing to buy and pay for the specific product. For an example if Nims apparel introduce new formal trouser in future they have to make sure that the product is providing not the wear to customer, beyond this its going to distinguish the social status of the customer in the society. Level 2 actual product: All trousers provide the basic need of wear, the aim that to ensure to the customer to purchase your product by differentiating your product from other existing product in the market, the brand image to make sure that their providing differential advantage form their competitors. • Level 3 augmented product: What additional non-tangible benefit can you offer to make the customer loyal to your presence.
For an example warranties, post purchase services, discounts, guarantees, etc. 6. 1. 5 Pricing strategies: Pricing strategy is one of the most important strategy for organization to keep in consideration before launch any new product or if offering any new promotional campaign in-order to promote their product in the market. [pic] The above pricing strategy matrix providing the range of different pricing strategies, where each of them can play an effective role in different markets.
In case of Nims apparel the best-fit strategy is penetration strategy, this strategy can play an effective role in order to promote the overall sale of the Nims apparel and grip the largest market share by using this strategy. 6. 1. 6. Place strategies: There are two different kinds of place strategies are available for Nims apparel 1. direct distribution, 2. Indirect distribution. [pic][pic]
Looking into all feature of both strategies being a marketing director here I am going to make the indirect distribution strategy for Nims apparel products, to make sure the effectiveness of the product and to deliver the product to the right place at right time. 6. 1. 7. Promotion strategies: The promotional activities at Nims apparel are already very well organized and management applying these strategies very well in its practical perspective, The suggested promotional strategies and the best options in promotion strategies are available, 1. ull strategy, 2. Push [pic][pic] Keeping in mind all strategic factors, the best suggested available option in promotional strategy is the pull strategy, because Nims apparel have there own outlet so it will better to promote there products by own to make sure the effectiveness of their products in order to support the level of sale at their own outlets and get the attention of more and more customers at a time. 7 Action plans:
Implementation schedule consist of the following activities, which will be organized in a systematic way to get full result of the developed plans and objective. The following chart showing the expected time line for each activity the time duration can be less or more then the expected time line. |Phase |Tasks will be taken |Time line s | |1 |Developing the physical appearance, of the organization. 1st ,April, 2008 | | |Setting initial objective, and analysis of strategic tools | | | |and techniques | | |2 |Registration of the organization, getting licenses and |1st , May, 2008 | | |certificates, and approvals for origination. Developing the| | | |basic intranet for the organization. | |3 |Hiring new employees, providing Training and development to|1st , June, 2008 | | |the current employee’s. | | |4 |Services will be provided to end users, put in action all |1st, July, 2008 | | |the developed plan, strategies, tools and techniques. | | |5 |control |1st ,august, 2008 | 8.
Controls: Control is the proper and regular process of monitoring marketing plans and objective, which organization set towards there objectives. The controlling processes tell us how to go and reach to the target point. The suggested control phases for Nims apparel to monitor their plan and programs regularly to make sure the effectiveness and efficiency of the organization in the market place. The best control tool and techniques for Nims apparel to apply into their operation to make sure the effectiveness of the organization. Continues mentoring • Measurement of actual and expected result • Evaluation of trends and changes in the market • Strategic control The above all are suggested control tolls to Nims apparel these are best fit, control tools for Nims apparel which covering almost all aspects of the organization it can be internal or external. 9. Contingency plans: Due to all above strategic analysis, here we come with few contingency plans to make sure the long life or long term survival of Nims apparel in the market place. 9. : To gain sustainable competitive advantage: The best competitive advantage for Nims apparel can be to adopt and apply the Knowledge management system into the organization processes. Because the knowledge management can be the only competitive advantage for Nims apparel which can add value to the organization current services and processes. The second core reason to install this system into the organization, it will easy to differentiate Nims apparel services and products form competitors products and services by applying this system.
And it will difficult for competitors to copy it, it can be a totally unique idea for the market, its sustainable and applicable to multiple situation. This plan can meet all the criteria’s of the sustainable competitive advantage. 9. 2: New product development: The development of new product due to the existing demand in the market place can be an effective alternative option for Nims apparel to fulfill the financial objectives of the organization. Any unplanned activity can be occurred any time in the external or internal environment to keep all this in mind Nims apparel will ready for it to meet this kind of situations.
The best new product development can be the socks, underwear and the traditional Indian cloths, since Nims apparel covering the formal and casual wear range of products. 9. 3: Market development: New market development can consider as potential contingency plan for Nims apparel, the reasons are India has low per-capita income, less developed infrastructure etc. by keeping all above points in mind, some time it will difficult to achieve the organization financial goals and objective. In that case of new market development can the best way to meet all this financial objectives.
This new markets can be developed with in India or out side the India since the strategic analysis proved above point so it will good to develop new market out side the India. 10. Conclusion: This is a marketing repot about Nims apparel India, Nims apparel of India hired me here, as a marketing director of their origination to analyze the current organization position identify the key issue with in the organization ad in the external environment. By keeping all this in mind I developed and propose some marketing strategies to Nims apparel and its marketing application.
Initially we analyzed the strength and weakness of Nims apparel identify the opportunities and weaknesses in external environment, secondly we done porter’s five-force model to know the rivalry, competition in the in market and analyzed the over all level of competition in the market place. By analyzing all the strategic tools and techniques we identify all the weaknesses and strengths of Nims apparel which help out to propose new strategies, improve current strategies and review the performance of current products and services that offering Nims apparel to the market.
In above part of the report we identified the key issues with in the organization, and find its affect on Nims apparel current and future business. Besides this being a marketing director I set some long term and short term objective’s for Nims apparel where the duration of short term objectives is three to six months, and the duration of long-term objectives is six to 12 months. This report proposed some other strategies for an example marketing strategies, which divided into to categories first the core strategies which is consist of STP and primary strategies consist of marketing Mix.
The time line proposed in the form of Gantt chat, which shows the time line, or how long will take these strategies to apply practically or install into business system. To keep up to date all above strategies we proposed some control tools to monitor the performance and analyze the actual results by comparing it set or expected results. The development of contingency plans is one of the major part of the report, development and the objective of contingency plan is to make secure the business from any unexpected incident or unplanned activity. 11. References: . Tuomi, I. (2002). Networks of Innovation: Change and Meaning in the Age of Internet. Oxford: Oxford University Press. 2. Louis E. Boone David L. Kurtz: Contemporary Marketing 1995. 3. Senge, Peter. The Fifth Discipline: The Art & Practice of the Learning Organization, Doubleday-Currency, 1990. 4. Bellinger, Gene. The effective Organization. 5. Strategic marketing management, 2nd edition, Richard Ms Williams, Collin Gilligan. 6. Understanding strategy, pg 197, WEC 7. Philip’s, 1999, Marketing Management: Analysis, Planning, Implementation and Control, No 3 . John. A. P, 2002,Strategic Management: Formulation, Implementation, and Control, No 8 9. Wilson and Gilligan, 2005, Strategic Marketing Management: Planning, Implementation and Control, No 3,pp 91-97, pp 327-328 10. http://www. netmba. com/strategy/matrix/bcg/ 11. http://www. quickmba. com/strategy/matrix/ansoff/ 12. www. informit. com/articles/. 13. http://businessballs. com/freematerialsinword/porter’sfiveforcesdiagram. doc 12. Appendicses Appendicss1: Strength: |Weaknesses | |Oldest readymade organization in the market |Weak relationship among cross function | |Well known domestic brand |Weak and late decision making | |Huge chain of stores and franchises all over the India |Slightly high product prices then competitors | |Strong group of quality management and quality control |weak cross function interaction | |Introduction of new designs to the market |less develop brand image for formal wear | |Strong and cost effective network of distribution |no formal team grounding n marketing | |High quality service and support |weak group of decision makers | |Strong and effective advertisement campaigns | | |Well organized promotional activities towards the time nd scope | | |Opportunities |Threats | |Huge market size |The Indian customers, desire to buy foreign products | |Fifth lasrgest economy in the world |Increase in sales tax, and other related taxes to garment | |Emerging economy |industry | |Cheap and skilled labor |High level of competition | |High growth in ready made clothing industry |Low barriers for entrance and exist | |Slightly above purchasing power in the region |High level of imitation and piracy | |Change in customer’s preference, from tailor made cloths to ready|low government barriers to entry | |made cloths |high threat of new entrants | | |existing international well known brands | | |customers desire for foreign brands | | |democrat but socialist based | Appendix # 2: PORTER’S 5-FORCES MODEL [pic] Figure 1. source: www. tutor2u. net 1. : Industry competitors: 1. 1: Local and international brands competing in the market: Liberty (local) Wings wear (international) Armour (international) Raymond’s (local) Vimal (local) Bombay Dye (local) Louis Philippe (international) Van Heusen (international) Red bull (local) Allen Solly (international) Arrow (international) by Arvind USA Pierre Cardin (international) 1. 2: Competitors use: Advertising: Armour and liberty shirts engaged in extensive and expensive advertising in the times of India news paper, publishing full page color ads with aggressive predatory promotional offers. Rumors abounded of under the table dealing with top local newspapers.
Liberty shirts was rumored to have used media connections to gain access to Armours media schedule, it was alleged that liberty then placed advertisements slightly in advance of Armour in attempts to restrain its growing popularity. 2. 0: Pressure from substitute products: Pressures from substitute products are almost low, because customers do not have many options as a substitute for ready made shirt. The only available options are following • Tailor made shirts • Local dressing or national dress of kamiz and lungi 3. 0: Bargaining power of suppliers: The following factors with in the industry reducing the bargaining power of supplier’s to some extent. Bargaining power of suppliers significantly Low • Large number of local and international companies, providing raw material to the manufacture’s • Availability of substitute products • Cloth industry is an important industry for suppliers because India is an agriculture based country which has a lot of cotton and silk which are the primary materials for cloths. • Supplier provided products are essential products to the manufacturers but large number of supplier exists in the market place, which reduce the threat of bargaining from suppliers. • Labor supply can affect the supplier’s power, but here in case of country like India which is developing and large population so this factor can’t affect the performance ofsupplier’s which directly linked with clothing industry. 4. 0: Bargaining power of buyers: Bargaining power of buyers is significantly high in Indian market, due to the availability of various options and substitute products • This power from buyers forcing the industry players to reduce the prices and offer good quality product • The reason behind high competition in the market is huge population and large number of ready made shirts buyer, means large number of buyers, low per-capita income availability of substitute products and high number of suppliers is the reason of high bargaining power from buyers. • Cloths are the significant aspect of buyer cost • High number of educated customers. 5. : Potential new entrants/ threat of new entrants: • The threats of entrants is significantly high • Low barriers to entry and exist • Low cost of skilled labor and easily available raw material • High number of educated customers, which can help to reduce advertising expense • High expected level of customer loyalty • Easy to differentiate brand from existing brands and target new segment • High switching cost but not major can reduce by using certain strategic tools and techniques • Easy to establish distribution channels, and all rural and urban markets are in access.
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