RUPA & Co. Ltd.

2010
BRAND AWARNESS AND
PRODUCT EXTENSION

Deepak Kumar Meena
Summer Intern



RUPA & Co. Ltd. 2


ACKNOWLEDGMENT
You learn something every day if you pay attention. it is often
said. I realized it even better during my summer internship program.
When I completed this journey, I may not have come this far
without help, guidance and support of certain people who acted as
guides, friends and torch bearers along the way.

I express my deepest and most sincere thanks to Mr. L.S.S. Lal,
Vice-President, Corporate Planning and Strategic Management,
Rupa & Co. Ltd. without his help and support this project would not
have been possible. I express my gratitude to Mr. Lal for helping me
and providing me useful information. Interacting with him I learnt
few tricks of professional management and I am sure the knowledge
imparted will go in a long way in enriching my career. He helped
me a lot while going through the whole project with all his efforts
for the successful completion of the project.

You learn more quickly under the guidance of experienced
Professional. You waste a lot of time going down blind alleys if you
have no one to lead you and this report eminently more
understandable than it otherwise might have been, without the help
of sales team and my colleagues at Rupa & Co. Ltd.

Last but not the least; I take this opportunity to express my sincere
thanks to my friend Meenal Sharma who has directly or indirectly
helped me in completing the project successfully.








RUPA & Co. Ltd. 3


TABLE OF CONTENTS
1. Executive Summary... 4
2. Abstract.. 5
3. Overview of Hosiery Industry... 6
4. Company Profile 8
5. Indian innerwear market at a glance..14
6. Brand Awareness.. 15
7. Consumer Survey Analysis .. 17
8. Brand Awareness and Perception... 24
9. Suggestion for Rupa by Consumers. 30
10. Channel Partners Feedback 32
11. Role of Channel Partners 33
12. Problem faced by Channel Partners35
14. Recommendation by Channel Partners 37
15. Product Extension Opportunities38
16. Segmentation of Indian Apparel Market.39
17. SWOT Analysis...43
18. SEC based Analysis.46
19. Suggestion for Rupa49
20. List of References... 50
21. Annexure. 51





RUPA & Co. Ltd. 4





ABSTRACT
In India, the inner wear market is segmented between the organized and
unorganized sector. Innerwear ceased to remain a utility item in the 80s. However,
with change in lifestyles and better buying power, consumers have become more
selective and demanding. And this has resulted in branded wear gaining ground.
In earlier days discussions on inner wear was taboo, usually confined to the mother
and daughter but today all this has changed. Inner wear is increasingly being
looked upon as a fashion accessory.
The main objective of this project is to access the Brand of Rupa from the
perspective of consumers and Channel Partners and Product extension
Opportunities for Rupa . Project has been done at Rupa & Co. Ltd. Head-Office at
Kolkata. Company is major player in Indian Hosiery Industry and is acclaimed by
Limca Books of Records as the largest innerwear manufacturing and marketing
company in India for six consecutive years . Rupa who has significant presence on
pan-India basis is the leader in Mens innerwear market in India. Rupa currently
has 700 plus strong dealer network in India, which will be further bolstered in
coming years.
The future of the inner wear market looks hot and positive as more MNCs are
stepping into the arena with their unparalleled marketing strategies and their latest
product range that is in tune with fashion trends the world over.







RUPA & Co. Ltd. 5

Executive Summary
Rupa was founded in 1968 and is currently Indias leading Innerwear Company.
Acclaimed by Limca Books of Records as the largest innerwear manufacturing and
marketing company in India for six consecutive years. Having a presence in over
1, 00,000 retail stores across the country and a daily capacity to produce 6, 00,000
pieces of finished goods. Rupa now has a product range, wide enough to cater to
the demands of various individual preferences.
The ultimate goal of most businesses is to increase sales and income. Ideally, you
want to attract new customers to your products and encourage repeat purchases.
Brand awareness refers to how aware customers and potential customers are of
your business and its products. In order to increase the awareness and perception of
consumers about the product the channel partners plays a major role.
The method used for exploratory research is primary data and secondary data.
Secondary data is collected from the websites and leading journals. Primary data is
collected through questionnaire filled online and personal interview of target
group.The sample size is of 110 in case of online survey and 40 in case of personal
for the purpose of the research. The Respondents of the consumer survey are from
different parts of the country. For channel partner feedback, 40 channel partners of
Rupa are survey at different location in Kolkata.
Observation derived through primary research suggests that Awareness of Rupa &
Co. Ltd. as an innerwear manufacturer is highest among its competitors. Also in
term of Brand Awareness the company flagship brand Frontline appears as a clear
leader in the market. While company has make its presence felt in mens innerwear
segment, it fails to do that in women innerwear segment which is not good for the
company as women market is bigger in size as compare to mens market.
Company awareness is mostly through electronic medium in mind of consumer but
it lacks in the BTL segment of advertisement. Channel partners problems and their
possible solution is also discussed in the report.
For any company to grow at same rate, differentiation is needed in terms of
offerings it has. In the report product extension opportunities in Indian Apparel
market was discussed. The segmentation of Apparel market is discussed in details
in the report and possible recommendation are suggested.
In the final part SEC analysis of Indian Hosiery Industry is done. Recommendation
is suggested on basis of our Analysis of the market.


RUPA & Co. Ltd. 6

OVERVIEW OF HOSIERY INDUSTRY:

The innerwear market in India is currently valued at Rs. 11600 crore in value
terms. From these pie of Rs. 11600 crore 35% to 45% share is of organized market
and rest belongs to unorganized market. The women Lingerie comprises of Rs.
6960 crore. The Indian lingerie industry is poised for a great leap ahead due to the
growing domestic demand coupled with huge export potential. There are more than
1000 Indian brands present, but only 200 are active nationwide. The remaining
caters to markets in the vicinity of their manufacture. The Last decade has
witnessed inflow of many multinational brands in the Indian innerwear market.
Many foreign companies have already set up or are in the process of setting up
their manufacturing units in India in collaboration with local players. Indias vast
resources, skilled manpower and infrastructure attract a lot of foreign investment in
the field of innerwear.


FIG.1

In India, the inner wear market is segmented between the organized & unorganized
sector. Innerwear ceased to remain a utility item in the 80s. However, with change
in lifestyles and better buying power, consumers have become more selective and
demanding. And this has resulted in branded wear gaining ground.

6180
6720
7310
7960
8665
11600
2005 2006 2007 2008 2009 2010
INDIAN INNERWEAR INDUSTRY MARKET SIZE
Valuation in crore


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FIG.2
During the past few years, there has been a significant rise in corporate interest
towards the inner wear segment for various reasons. One of the reasons being the
huge domestic market that today demands for better quality products and also the
growing export prospects, especially to Europe.
Inner wear is increasingly being looked upon as a fashion accessory. The future of
the inner wear market looks hot and positive as more MNCs are stepping into the
arena with their unparalleled marketing strategies and their latest product range
that is in tune with fashion trends the world over.
But the undergarment sector in India, till recently was one of the few markets that
did not witness the entry of multinationals. However, with globalization of the
Indian economy, international innerwear giants like Jockey International Inc. and
VF (Vanity Fair) Corporation have entered Indian markets. Thus, the market, with
the entry of new brands is set for a buoyant trend. Also the role of the media
cannot be ignored.
Then come the various beauty contests and manhunt shows, where our folks sashay
down the ramp dressed in their scantiest for that glittering piece of metal. And in
the process serve as inspirational material to scores of dreamers. So popular are
these contests and shows that inner wear companies have started launching their
product range at exclusive lingerie shows.
In a market like that of India, where competition is on the uptrend, the role of
effective communication plays a vital role (apart from design innovations, quality
and distribution) in making the brand a success.
Organized (4640
crores)
40%
unorganized (6960
crores)
60%
HOSIERY MARKET IN INDIA


RUPA & Co. Ltd. 8

COMPANY PROFILE

Rupa was founded in 1968 and is currently Indias leading Innerwear Company.
Acclaimed by Limca Books of Records as the largest innerwear manufacturing
and marketing company in I ndia for six consecutive years. Having a presence in
over 1, 00,000 retail stores across the country and a daily capacity to produce 6,
00,000 pieces of finished goods. Rupa now has a product range, wide enough to
cater to the demands of various individual preferences. With constant learning,
innovation and refinement of its operations, has transited seamlessly from a
production driven to a customer driven enterprise and is fully prepared to face
challenges of total customer satisfaction at a global level.

























Vision of Rupa
To be a global player in the innerwear and casual
wear categories.

Mission of Rupa
To produce the finest quality products through
continuous innovation and improvement,
providing for the consumer a stylish and
comfortable experience.



RUPA & Co. Ltd. 9

Till the mid-sixties, the Hosiery Industry in India was rather a complacent one. A
number of organized sectors and localized brands kept churning out mediocre
products. The consumers were less than satisfied but had no option readily
available. But a dormant desire for better innerwear remained there through the
years. Finally, in 1968, Mr. P R Agarwala, along with his brothers Mr. G P
Agarwala and Mr. K B Agarwala decided to delve deep into the possibilities and
prospects of creating a brand that would revolutionize the hosiery market with
quality that doesnt only sell but excels. And Binod Hosiery saw the light of day.
These three gentlemen not only had a mission to produce the best but a vision to
bring care and comfort to the fatigued consumer. While the available products
were upgraded and made more consumer friendly, soon a new line of products was
launched by the Company under the brand name of Rupa.

The company Rupa & Company Limited was formed in the year 1985. Within a
span of decade from the formation of the company a major step forward was taken
and the company came out with a public issue in the financial year 1995-96 and
became a public limited company.

Promoters
The company has been promoted by three brothers in relation:
Mr. P. R. Agarwala, Chairman
Mr. G. P. Agarwala Vice Chairman
Mr. K. B. Agarwala- Managing Director

Rupa has emerged as the countrys largest manufacturer of hosiery and innerwear
brand, cornering nearly 10% to 12% of the Rs 4600 crore branded hosiery market.
Even the Limca Book of Records has been conferring the honor to Rupa & Co as
the countrys largest manufacturer of knitted undergarments for the last five years.

Rupa initially started manufacturing with male undergarments in partnership with
third-party vendors in Tirupur and Kolkata. It expanded its product line to include
female underwear. Buoyed by the success in the East, the promoters decided to
take the brand national in 1975.





RUPA & Co. Ltd. 10

So much so, Rupa has today evolved as an umbrella brand for the firm and it has
launched an array of successful sub-brands like Macroman, Frontline, Softline,
Footline, Jon, Theormocot, Skywings, Bumchums, Interlock, Air Vest & Ribline.
It has just launched a premium sub-brand Air-Vest and planning another one called
Embrace. Also on the cards are plans to roll out a separate sub-brand for the kids
segment.

USP of the brand has always been its value-for-money products that target all the
segments of the society. During early days, the success formula was strong
linkages in the market due to its hosiery trading business. . Rupa is today facing a
growing threat from leading brands like Jockey, Benetton, Tommy Hilfiger, Dollar
and Amul as well as a slew of private label brands launched by Future Group and
Westside.

The promoter believes that roping in popular brand ambassadors will do a magic to
boost the brands visibility. Small wonder, Rupas marketing budget has touched
Rs 32 crore this year. In fact, it was one of the few brands in the 80s and 90s that
roped in models for promotion of its products.
Rupa current fiscal (2009-10) turnover is Rs 536 crores and 10 crores additional as
exports from domestic market and 10 crores from export .Plans are afoot to roll out
a chain of premium innerwear stores across the nation. It is even eyeing the
international market and plans to take the Rupa brand to Southeast Asia, Middle
East and parts of Europe.
Industry & Business Description:

The Indian garment industry is vital to the economy of the country. It is the largest
employer after agriculture. The garment industry has two vital arms, the knitted
garment sector and the woven garment sector. The knitted garment sector
(Hosiery) constitutes about 25% of the total production. Hosiery items include a
wide range of products though mainly concentrated on innerwear and casual wear.
The companys products include both innerwear and casual-wear items. In the
hosiery sector RUPA is one of the leading brands in India and it has been able to
successfully establish itself with consumers for comfort & style. Brands such as
Macroman, Frontline, Jon, Thermocot, Softline, Footline, Bumchums etc., are
today well established brands of hosiery in India, favored by the consumers for
product quality, design, comfort and style.




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Brand Recognition

For any FMCG company the prime asset is its brand value & recognition. The
brands of the company such as Frontline, Jon, Macroman, Thermocot, Footline,
Softline, Bumchums, Jon, Euro, Ribline, Air Vest etc are household name for
hosiery products. Each brand has unique product features and design. The
Company has always recognized the value of brand in terms of growth for the
company and it has always been the endeavor of the company to promote its
brands. The companys expenses on account of advertisement in all forms of
media, campaigns and celebrity endorsement have paid-off and as a result of which
the brands are omnipresent in the market and consumer mind-space.
Quality

The company has always provided highest standard of quality products to its
consumers. In its endeavor the company has always believed in modern technology
and latest machinery. The manufacturing facilities of the company are equipped
with state-of-the-art machinery backed by a sophisticated in-house laboratory and
R & D facilities. Computerized equipment has also been installed to check fabric
and color. The accent in the quality management system is to provide to the
rapidly changing fashion conscious consumer products which has a blend of
comport and style. It is as a result of the efforts and investments made for
maintaining highest quality standards that today the very name RUPA is ikoned
for quality.

MANUFACTURING / INFRASTRUCTURE FACILITIES

Domjur (Howrah) Unit
The Company has one of the most modern dyeing plants in India, this unit is
located 8 km from Kolkata, and produces over 5 tons of dyed fabric daily.
Equipped with state-of-the-art machinery this plant is backed by sophisticated in-
house laboratory and R & D facilities. Computerized equipment has also been
installed to check fabric and color. The set includes:
Mayer and cie knitting machines from Germany
Thies soft flow dyeing machines from Germany
Santex finishing range from Switzerland
Data color color matching system from USA
Mathis Laboratory dyeing machine from Switzerland
Latest stitching machines from Japan



RUPA & Co. Ltd. 12

Tirupur Factory

State-of-the-art plants has been set up at Tirupur in Tamil Nadu with the latest
machines for fabric checking and layering, cutting and stitching and ironing and
stain removing, among other functions.
Geographical Presence

The products of the company are available throughout India. The companys
presence is in rural, semi-urban and urban markets. The company has built a
healthy long-lasting successful relationship with its dealers and retailers all over
the country. Continued efforts are rigorously being made to further enhance its
geographical presence and its network.

Growth

From a very humble beginning the company has transformed to market leader of
hosiery today. The turnover of the company as at March 31
st
, 2010 is Rs 536.32
crores and the current years performance is well expected to surpass the same.
The growth in the turnover of the company, from Rs 9.54 crore as at March, 1995
to Rs 536 crore plus, in more than a decade has been phenomenal and has
transpired from the dedicated efforts of the promoters, management and all
associated with the company.

Rupa is the company's mass market brand. The brand has the distinction of the first
innerwear brand to be endorsed by celebrities. Rupa brand has been seriously
nurtured and the owners have been using Stars to endorse the brand. This has
ensured that the brand receive a mass appeal. The brand is positioned on the
platform of comfort and the tagline is the famous Yeh Aaram ka mamla hai". In
the year 2003 saw the company's foray into the premium segment of men's
innerwear with the brand Euro. The premium segment is worth around 120-150
crore and is witnessing lot of competition. Global majors like Sara Lee with Hane's
brand and domestic majors like Color Plus, Van Heusen and Peter England has
launched its range in this segment.







RUPA & Co. Ltd. 13

Euro is positioned as an up market brand and is not relying on Stars to promote the
brand. The brand is positioned on "sex appeal" and the TVC of the ad features the
man being "assaulted" by ladies. Euro also is the brand that came out with the
Bacteria resistant innerwears. The brand is said to have captured around 20%
market share in this segment. Rupa has roped in Alyque Padamsee as a marketing
consultant to develop this brand.

With all the major brands eyeing for a share in one of the largest and most
potential innerwear market in the world ( just look at the population), Rupa is
bracing itself for a tough marketing warfare. Rupa has been careful in
communicating and positioning its brand to the masses. But since the brand is
relying on Bollywood stars. The greatest challenge for any innerwear marketer is
to fight the unorganized sector which dominates this market coupled with cheap
imports. With the launch of Euro, Rupa is testing its marketing acumen in one of
the toughest market. After all "Ye Aaram Ka Mamla Hai".
























RUPA & Co. Ltd. 14

INDIAN INNERWEAR MARKET PLAYERS AT A GLANCE:

The innerwear market is flooded with the best of Indian as well as international brands. The
inside story got its first stylish boost when Associated Apparels Pvt. Ltd. makers of Liberty
shirts, launched the world famous Maiden Form bras, Jockey mens underwear and swimwear in
1962 in India. The brands were an instant success with their style and quality. Because of the
change in government policies the company gave the overseas tie-up and changed the names to
Libertina for lingerie and Liberty for mens underwear in the late 70s. With the success of
Libertina and Liberty other Indian companies moved into lingerie bandwagon. Peter Pan from
Dawn Mills in the 70s entered the market. The brand was one of the favorites with the Indian
women, but two decades later it vanished from the market. VIP a major player in mens segment
launched Petals, a Lycra moulded cup bra with motifs, which was considered ahead of its time
and was discontinued. But its Lovable launch in 1996 proved a success when they brought in a
foreign brand but made in India. Lovable was followed by Feelings, a domestic offering of VIP
along with Daisy Dee. Vanity Fair was launched in 2004 and finally a Korean brand Try for men
and women in 2004. Another big brand in the lingerie market is Rupa & Co. started in 1985. Its
range of mens, womens and childrens underwear makes it Indias largest manufacturer and
seller of innerwear.

Other brands that are making their presence felt in the Indian innerwear market are Amul, Lux
Cozi and Dollar catering to a particular segment of mens innerwear market while the lingerie
segment has its own local brands like Neva, Bodycare, Softy, Lady Care, Little Lacy, Red Rose,
Sonari and many more.

Trickle of foreign brands started in 90s with the advent of Jockey re-entering the Indian market
followed by Calida and liberty Blu. Then the very high fashion Gossard came for a limited
period. The entry of the Marks and Spencer chain stores created a stir. Another big entry was
Triumph. Enamor, another foreign brand entered through Gokaldas Exports and very chic French
brand Aubade opened its only outlet in Mumbai. LaSenza and Hanes are other brand in the
scene.

Though innerwear includes garments for men, women and kids, its the women segment called
lingerie that draws the maximum attention. Lingerie is considered an important value added
segment. The range of items available as innerwear is enormous. But for an average Indian
woman innerwear is limited to just a couple of items, mainly bras and panties. Out of these two,
also brassiere is more complex an item to ensure the comfort and fit. A number of styles are
available in this basic garment like full cup, push up, sports, strapless and under wired bras. In
India, brassieres are constructed using 100 percent cotton fabrics, either knitted or woven.
Sometimes, 3-10 percent Lycra is also added to get stretch effect and to provide a better fit.
Panties are generally made of 100% cotton sinkers, ribs and interlock fabrics. Polyester - cotton
jacquard knits are mainly used for achieving comfort and aesthetics. As inner wear comes in
direct contact with the skin, primary requirement for users is comfort, followed by elegance.
There is a need for a good combination of technology and quality components as raw materials,
to succeed in producing a standard product.



RUPA & Co. Ltd. 15

BRAND AWARENESS
The ultimate goal of most businesses is to increase sales and income. Ideally, you
want to attract new customers to your products and encourage repeat purchases.
Brand awareness refers to how aware customers and potential customers are of
your business and its products. Within a week after its introduction, surveys found
that more than 90% of US consumers had heard about the iPhone as a result of
advertising and news reports. This is exceptionally high brand awareness.
Ultimately, achieving successful brand awareness means that your brand is well
known and is easily recognizable. Brand awareness is crucial to differentiating
your product from other similar products and competitors.
The major components of a plan to develop brand awareness are:
Identifying and understanding your target customers
Creating a company name, logo, and slogans
Adding value through packaging, location, service, special events, etc.
Advertising
After-sale follow-up and customer relations management
You may be asking yourself, is brand awareness really all that important? You may
be saying to yourself, I have plenty of customers and sales are decent, why bother?
The answer is: There are few things more worthwhile than investing time in your
brands awareness. It can play a major role in purchasing decisions. The reality is,
the more aware consumers are of your product and your brand, the more likely
they are to buy from you.
How to Begin Creating Brand Awareness
How do you, over time, establish positive brand awareness that promotes the
possibility of purchase of your product in the future? There is always the initial
impression of your brand that is of utmost importance. Beyond this, however, are
all of the future impressions that may be formed regarding your brand. In deciding
how you will go about creating brand awareness, you need to consider and to be
aware of how your product value becomes know to the consumer and the
importance of consistency:



RUPA & Co. Ltd. 16

1) The message of what a brand is offering to the consumer should be consistent.
2) Images you present should also be consistent in order to increase brand
awareness. It is important that you are consistent in your use of images so that you
maximize recognition and positive impressions.
3) Slogans and taglines should also be consistent throughout mediums and
material. Once again, consistency is important in conveying a message that
promotes awareness of your brand in a organized, recognizable manner.
Consistency cannot be emphasized enough. It presents the consumer with an image
that in the future the consumer can continue to associate with your products. For
example, if the materials you distribute, the set-up of your sale table, the packaging
of your product, and the logo and tagline are not all relatively similar, regularly
consistent, and repeatedly recognizable over time, it is likely you will get nowhere
with your brand. Creating brand awareness, through a collaborative, well-
developed overall image, is essential to developing a success brand that achieves
maximum benefits.
Maintaining Brand Awareness
It is important to keep working at the issues and activities identified above. Pay
attention to how customers are responding to products, packaging, displays, and
messages. Look for ways to improve the image you are trying to get across. Ask
your customers for suggestions. Work to maintain a consistent presence in the
market place. This can mean a location and regular times where customers can
reliably expect to find you.















RUPA & Co. Ltd. 17

CONSUMER SURVEY

152 respondents in the age group of 15-55 years were surveyed to collect
information regarding the likings and buying practices of consumers. Out of the
total of 30% are female and 70% comprises of male respondents. Information
collected from 152 respondents was finally analyzed. Questionnaires that were
either incomplete or did not provide relevant information were discarded. All the
152 respondents were educated having professional qualifications. Respondents
majority belonged to middle class and mid- income group. The information
gathered has been summarized as follows: -

SOURCES OF INFORMATION:

Secondary data regarding the structure of Indian lingerie industry has been
collected from various magazines, journals, Newspaper articles, Internet sites etc.
Primary data has been obtained from online consumer survey and personal
interview of consumers

DATA COLLECTION: Data was collected in two phases

Collection of primary data through survey method (Online survey)
Collection of primary data through personal interview of consumer

SAMPLE SI ZE:

The sample of consumers comprises Men (70%) and Female (30%) majority of
which belongs to upper middle class socio-economic strata, as the group is better
informed. 152 consumers were surveyed to gather information regarding their
Awareness and preferences for Innerwears. Consumers were contacted online to
study their preferences in case of innerwear.

The sample size is of 152 in case of primary data analysis which includes online
survey with a sample size of 110 and personal interview with a sample size of
42.The target population influences the sample size. The target population
comprises of people from different geographical regions across the country. The
people were from different professional background. The details pertaining to
target sample are as follows




RUPA & Co. Ltd. 18

Consumers Profile:

Fig.3


Fig. 3 represents the age sample of the consumer surveyed for the research. As it is
clearly indicated in the figure that majority of the consumer surveyed are basically
belongs to young generation majority of which are studying currently and some of
them are employee. The majority (88%) of respondents lives in urban areas, 7%
belongs to semi-urban areas while only 5% belongs to rural area.The respondents
are well informed about what they want from the product that they use since all are
well educated and filly informed of their choices in innerwear.




1
3
4
42
102
0 20 40 60 80 100 120
55 & above
45-55
35-45
25-35
15-25
Age group of sample
No. of Respondent


RUPA & Co. Ltd. 19



Fig.4

Fig.4 gives the idea about profession of the respondents. The majority of
respondents comprises of Students followed by MNC employee and then private
sector employee. All of the respondents are well qualified academically and are
capable of making sound decisions.



Fig.5

Fig.5 represents the income level of the respondents. As it is clearly indicated that
majority of the respondents belongs to income group from Rs.20,000-40,000
i.e. 35 % and 46% belongs to income group greater than Rs. 40,000 which
indicates that they can afford to their choices when they are buying an innerwear.
75
9
28
7
3
18
Student
Govt. Employee
MNC Employee
Businessman
Housewife
Private Sector
Employee
Profession of Respondent
19%
35%
18%
12%
16%
0%
5%
10%
15%
20%
25%
30%
35%
40%
< 20000 20000 - 40000 40000 - 60000 60000 - 80000 Above 80000
Percentage (%)


RUPA & Co. Ltd. 20

I NFORMATI ON AREAS

Current usage understanding amongst men / women
Current levels of involvement with usage and purchase of underwear
Factors important during purchase
The role of brand in selecting an underwear
Brand equity of the key players what does the brand stand for?
Analysis of the brand in terms of its strengths and weakness
The role of advertising in the strengthening/weakening of the brand



FACTOR IMPORTANT DURING PURCHASE

Role of Brand in selecting I nnerwear:
When respondents are asked that whether they take brand into consideration while
purchasing innerwear then 110 of 152 respondent answers in Yes i.e. 72% of our
respondent have a brand preference while remaining 28% doesnt have any. It
clearly indicates that Brand matters to the consumer while purchasing innerwear.
Brand is taken into consideration by majority of our respondents that clearly shows
what role brand can play in growth of any company.
Survey of the consumers reveals that comfort, fit and quality are the major factors
when they think about purchasing an innerwear. Comfort is the most important
factor on consumer mind while purchasing the innerwear, as 92% of our
respondents consider it important. Then comes Quality (63%) and Fit (59%)
followed by Price, Style, Durability and Color.
One major finding of the survey is that all the female respondents take Fit as an
important factor while making their purchasing decision which is not the case for
male respondents.


RUPA & Co. Ltd. 21



Fig.6





BUYING PATTERN OF CONSUMER


Buying Pattern:

It was observed that with more and number of Format stores and having
innerwears section, people prefer to go to these shops to make their purchases and
Multi Brand outlets (MBO) rather than specific shop. As many as 63% of the
respondents buy their innerwear from Format Stores like Pantaloons, Shoppers
Stop, Westside, Big Bazaar etc. and 55% from Multi Brand outlets (MBO) while
only 18 % make their purchases from specific stores i.e. from same shop all the
time as indicated in the figure given below.

66
52
97
140
89
63
52
0
20
40
60
80
100
120
140
160
Price Durability Quality Comfort Fit Style Color
Factors Consumer keep in mind while
purchasing Innerwear
Fig.4


RUPA & Co. Ltd. 22



Fig.7



Generally, the innerwear is bought once in three to six months as reported by 55%
of the respondents, 20 % buys innerwear within 3 months of their previous
purchase while 25% respondents buy innerwear on half-yearly basis. (See fig.8)
The consumers spending on innerwear is also considered while making the survey.
When enquired about the one time spending on innerwear majority (48%) of the
respondents spent nearly Rs. 100- 300 on purchasing innerwear, while 31% spent
between Rs.300-500 on one time purchase of innerwear .The important outcome
that come from this query is that of nearly 17% respondents who spent Rs. 500&
above on one time innerwear purchase all are females. (See fig.9)





26
86
95
27
EBO
MBO
Format stores
Specific Shop
Place of making Purchases
No. of Respondents


RUPA & Co. Ltd. 23



Fig.8




Fig.9


3-6 months
55%
1-3 months
20%
> 6 months
25%
Purchasing Cycle
73
31
26
22
Rs. 100-300 Rs. 300-500 Rs. 500 & above below Rs.100
Expenditure on Innerwear
Expenditure on Innerwear


RUPA & Co. Ltd. 24

COMPANY AND BRAND AWARENESS


When we asked about the consumer about some known companies in the Hosiery
market and asked them whether they are aware of that name or not, we got
following response




Fig.10

Rupa & Co. Ltd. top the chart having maximum awareness among its competitors.
Nearly, 93% of our respondents to the survey say that they are aware of Rupa &
Co. Ltd followed by Lux Hosiery Ltd. with awareness among nearly 88% of our
respondents. Its a good sign for these companies as they are well known among
consumers and can leverage the Brand Recall that they have among consumers.
The Page Industries Limited which manufactures well known foreign brand
JOCKEY for India, Srilanka and Nepal territory are also among one of the
companies asked by us to our respondent. Dollar Industries manufactures of Dollar
Club brand of innerwear comes third in terms of awareness among respondent.





134
15
23
142
110
64
17
12
Lux Hosiery Ltd.
J.G. HosieryLtd.
Maxwell Industries Ltd.
Rupa & Co. Ltd.
Dollar Industries Ltd.
Hanesbrand Inc.
Gokaldas Intimatewear Ltd.
Page Industries Ltd.
Company Awareness
No. of respondent


RUPA & Co. Ltd. 25

Brand Awareness among consumers
The awareness of different brands is measured on two fronts:

Unaided Awareness i.e. we ask consumers to tell us about the name of the Brands
that come to their mind when they think of innerwear.

Aided Awareness i.e. we simply tells the name of the Brands to consumers and
ask to them whether they have heard about them or not.

By Un-Aided Awareness we have come across the following findings:
Among men Jockey (35%) is the most heard about brand followed by Rupa
Frontline, Amul Macho, Calvin Klein, Tommy Hilfiger, Macroman, GenX, and
VIP Frenchie. While in women segment Jockey & Lovable is found to be brand
having most awareness by the respondents. 50% of the women respondents known
about this brand. This is most probably is the reflection of the results of companys
extensive marketing campaign. While the sister brand Daisy Dee developed
specifically for the Indian domestic market was third in Awareness with 36% of
the consumer knowing about it. Next most heard brand was Groversons (Paris
Beauty), which was opted by 20% of the respondents other remaining brands are
Softline, New Look, VIP feelings Etc.

AIDED AWARENESS is where customer awareness is verified by telling them
the name of the innerwear brands. In aided awareness RUPA Frontline is clearly
the leader with awareness among 94% of the respondents of the survey. Following
Frontline is Jockey with 90% of our respondent aware of it. Next in the series is
VIP Frenchie & Amul Macho both with 86% of awareness among the respondents.
Lux Cozi is fifth in term of awareness.

Among Innerwear Brands for female Jockey is leader in that segment followed by
Calvin Klein, Enamor, Lovable, Triumph and Softline. Triumph even a very late
entrant in the lingerie market in India and a premium brand has been able to
develop a respectable share for itself. We can clearly see that in women section top
leaders in tern of awareness are all well known foreign brands which are licensed
to Indian Manufacturers. For e.g. Lovable is licensed to Maxwell Industries Ltd.,
Jockey to Page Industries Ltd. & Enamor to Gokaldas Intimate wear Inc.







RUPA & Co. Ltd. 26

Aided awareness of the brands at a glance:




Fig.11



132
144
84
65
76
38
25
50
81
126
132
61
138
110
70
107
99
52
60
33
67
Amul Macho
Rupa Frontline
Euro
Bumchums
Macroman m-series
Softline
Footline
Rupa Jon
Dixcy
Lux Cozi
VIP Frenchie
Neva
Jockey
Calvin Klien
Hanes
Tommy Hilfiger
Dollar Club
Lovable
Enamor
Triumph
GenX
Brand Awareness
No. of Respondents


RUPA & Co. Ltd. 27

Brand Awareness of RUPAS Brands:


Among the brands of Rupa, consumers are aware mostly about Rupa Frontline i.e.
(92%). When asked about the brand they recalled most quickly when they heard of
Rupa the most respondents answers that Rupa is almost synonymous Rupa
Frontline i.e. they identify Rupa by Frontline only. Next on the ladder is
Macroman (73%) which is launched few years back and its ambassador is Hrithik
Roshan, the youth icon which help in creating awareness about the brand. Others
details about remaining brands of Rupa are as follows






Fig.12







140
111
39
24
25
97
21
77
53
26
Frontline
Macro
Softline
Ribline
Jon
Therm
Interlock
Euro
Bumch
Air-Vest
Brands of Rupa


RUPA & Co. Ltd. 28

Brand Perception:

The Brand perception of Rupa identifies how consumer feels about the brand.
When respondents are asked about how they fell about Brand Rupa, the majority of
them identified Rupa to be of Average Quality and Dependable.
The Recall value of Rupa Logo is appeared to be low as per respondents views.



Fig.13



Fig.14
Average Quality
and dependable
76%
Low Quality and
not reliable
7%
High Quality
and reliable
17%
Brand Perception
0
5
10
15
20
25
30
35
40
45
50
Very Low Low Medium High Very High
Recall value of Rupa's Logo


RUPA & Co. Ltd. 29

Medium of Awareness:

When respondents are asked that before this survey how often have you heard
about the Rupa, nearly 72% of them says that they heard about the brand
frequently, 25% says they have seen or heard about the brands a few times before
and 3% says that they have never heard about the brand before today.
The medium through which respondents came to know about brand Rupa is also
enquired. The maximum (85%) of our respondents came to know about brand from
Electronic media (T.V.) followed by Hoardings (49%) then Print media (46%).One
thing that come to picture is that all the respondents have heard about the brand
from ATL (above the line) medium i.e. product not visible and not available when
they heard about Rupa product from these medium while BTL (below the line) i.e.
Product is available when product is channeled through this medium eg. POP
materials; create less awareness among our respondents. (see Fig.13)




















Fig.15






0 20 40 60 80 100 120 140
Print Media
Electronic Media
Hoardings
Wall Paintings
POP Materials
Word of Mouth
Internet
No. of Respondents
Medium Of Awareness


RUPA & Co. Ltd. 30

Suggestions for RUPA by Consumers:

Kindly highlight your sub-brands names more. Create more awareness about product and
brand in the market by launching some kind of awareness program in innovative form.
Company has basically positioned itself as a man innerwear manufacturer, in order to be
successful in women innerwear Market Company has to change its positioning.

The brand appears to have high recall. Try to leverage it.

In the domestic inner-wear market there is a big vacuum if we talk about a domestic brand.
Neva, Rupa, dollar or Lux are doing a good job catching up with Jockey and Hanes but most
of their designs look to be inspired rather than created. So its high time Rupa becomes more
innovative in terms of quality, technology as well as design.

A strong brand management campaign is also required if it needs to take the first mover
advantage as a domestic brand, as i believe till now it has depended on word of mouth
publicity.

Its ads will render it as a common man's brand and it will be extremely difficult to enter into
premium segment dominated by Jockey and the like. If it wants to enter premium segment
serious brand repositioning should be considered. It needs to be considered if they really
want to do this!

Brand is related to middle class only. Strategy should be changed to target the upper middle
class and higher brackets.

In terms of business, everyone wants to appease its customers so for that company products
should be economical and they should be good in quality.

The company was doing a great job before the entry of MNCs like Jockey and thanks to the
premiumness of the brand Jockey; Rupa has lost the market share in the burgeoning middle
class. Rupa need to re-orient its market strategy for increasing its values in the eyes of Indian
middle class.

My perception about Rupa is of a cheap brand, if you want to enter the premium market
then do not use the same brand name, promote the new range as a different brand altogether


RUPA & Co. Ltd. 31


Put in some high end products. The Brand RUPA has a feeling of only innerwear and that
too of the average brand. Jumping into fashion and more clothing apparels will make it more
saleable

Maybe use another brand name for new or premium products, other than Rupa, which is
mostly associated with the middle and lower SEC segments.

Have a better logo

Please change the name ....it now gives a feminine feeling........go for some macro
makeover at least for the Men's section. Quality and look is medium, go for the strap look
rather than same old designs, Euro was a good boost to the kind of buzz it made through its
media intervention. Do something similar again and rewrite the history....


Focus on brand image and if the company wishes to enter the premium segment then I
would suggest focusing more on product image than the company's name

Ads mean to be more sophisticated rather than target low end masses and have cheap fun.
If we are targeting only rural masses than this strategy might be workable but not in urban
areas...

The brand name RUPA fails to position it in a high price-high durability segment. Does not
create higher brand image.

Non Availability in good retail out lets specially in format stores. Brand Pull is very high
but this brand is being replaced by retailers at the time of actual buying by consumer
because lack of P.O.P availability in stores.
For women innerwear I cannot think of Rupa .For me Rupa is a brand for lower middle
class consumer which lacks in comfort, fit, style and presentation. I think the kind of
advertisement that Rupa does on (T.V.) is what it makes it a brand targeting lower middle
class consumers. So, basically the format/idea/style of its advertising should be changed.
The innerwear product for women must be more stylish/comfortable and more
classily/stylishly presented (presented as in packed and advertised).Rupa definitely needs to
do a thorough market survey for women innerwear to bring up the quality and style.



RUPA & Co. Ltd. 32

CHANNEL PARTNERS FEEDBACK


Marketing Channel:


The role of marketing channel is to convert potential buyer into profitable
customers. Marketing channels may not just serve market, they must also make
market. Deciding on best channel might not be the problem; the problem is often to
convince the intermediaries to handle the firms line. In smaller markets, the firm
might sell directly to retailers; in larger market it might sell through distributor .In
one part of the country it might grant exclusive franchises ; in another it might sell
through all outlets willing to handle the merchandise, In one country it might use
international sales agent ; in another, it might partner with a local firm.

Having access to good distribution channel is a fundamental to good marketing.
Business operators need to be able to deliver their products and ser-vices to the
right people, at the right time, in the right quantities, and at the lowest cost. For the
most part, this means understanding the various marketing channels through which
merchandise can be moved, and learning how to factor in additional storage and
shipping costs.


Distribution Channel used by Rupa:

Co Agent Dealer Retailer Consumer
Co Dealer Retailer Consumer
Co- Retailer - Consumer

Competitors distribution channel:

Co Agent Dealer Retailer Consumer
Co Dealer Retailer Consumer
Co Retailer Consumer
Co Consumer






RUPA & Co. Ltd. 33


Fig.16

Role of Channel Partners

Agency:
1) Networking for the company
2) Create long relationship between company and channel partners
3) Bridge between company and distributors
4) Payment protection for the company
5) Ensuring consistent growth of company

Wholesalers:
1) Break down bulk
2) Buys from producers and sell small quantities to retailers
3) Provides storage facilities
4) Reduces contact cost between producer and consumer
5) Wholesaler takes some of the marketing responsibility e.g. sales force,
promotions
6) Creating and establishing market for new products
7) Providing credit facility to retailer and consumer


RUPA & Co. Ltd. 34

Retailers:
1) Much stronger personal relationship with the consumer
2) Hold a variety of products
3) Offer consumers credit
4) Promote and merchandise products
5) Price the final product
6) Build retailer brand in the high street

POSITIONING OF BRAND AS PER CHANNEL PARTNER FEEDBACK

S no. BRANDS POSITIONING
1. Frontline Mass
2. Macroman m-series Sub-Premium
3. Euro Mass
4. Air Vest Premium
5. Bumchums Mass
6. Thermocot Mass
7. Jon Economy
8. Softline Mass
9. Footline Mass
10. Kidsline Mass
11. Ribline Mass
12. Interlock Mass




RUPA & Co. Ltd. 35

PROBLEMS FACED BY CHANNEL PARTNERS AND POSSIBLE
REMEDIES

P: Undercutting is there.
S: Undercutting is something which is prevalent in the Hosiery market as it
Increases competition among retailers and creates market for the company
product and increases sales volume. The major drawback is that it could
lead to less sales if allowed for long time as this would lead to trust deficit
between company and customer or retailers.

P: Supply side uncertainty
S: Supply Demand mismatch is a major problem in any industry that need to
be addressed immediately. Whenever there is mismatch it is company which
suffers as if supply is more inventory cost, transportation cost etc. beared by
the company and when demand is more and supply is less then company
may lose its market and customer. So, it should be avoided by processing
order accurately and within schedule time. Our suggestion for company is
that order booked by sales force must be delivered within 5 days intra state
and within 10 days interstate.

P: No schemes for retailer
S: .Secondary schemes for retailers should be applicable at least for two
quarters every year. Company should keep an watch on competitors
scheme and provide better schemes to retailers vis--vis competitors.
P: Relation between Retailer and Distributor
S: Company should take utmost care about relation between distributor and
Retailers with feedback from their sales force and should try to look for best
way forward for the company.

P: No order taken directly by Rupa salesman
S: Regular sales force visit must be there.





RUPA & Co. Ltd. 36

P: Distributor and wholesaler selling on same price
S: Company should issue dealer price list and suggested wholesalers and
Retailers price list for all retailers at pan-India level.
P: More no. of SKUS
S: Review of SKU must be done by the company on yearly basis and Slow
moving SKU contributing less to the top/bottom line and have less sales
ratio should be removed from production.

P: Dealer R.O.I
S: Company must fixed percentage of profit to ensure better ROI to dealer
and dealer making price undercut in market and allowing a smaller dealer
to grow must be considered































RUPA & Co. Ltd. 37

RECOMMENDATIONS

Regular sales force visit must be there.

Control over dealer by sales force.

Dealers all problem must be settled till the level of Area Sales Manager
(ASM), problem should not be transferred to Head Office.

Company should issue dealer price list and suggested retailers price list for
All retailers at pan-India level.

Review of SKU and slow moving SKU contributing less to the top/bottom
line and have less sales ratio should be removed from production.

Order booking in office should be avoided.

Secondary schemes for retailers should be applicable at least for two
quarters every year.

Order booked by sales force must be delivered within 5 days intra state and
within 10 days interstate.

Focus on distribution is lacking in the company which is required for better
penetration in market.

Checklist to be prepare for distributors appointment.

Financial viability must be accessed first and only then more than one
Brands distribution should be given to a single distributor.

Company must fixed percentage of profit to ensure better ROI to dealer and
Dealer making price undercut in market and allowing a smaller dealer to
grow must be considered.


RUPA & Co. Ltd. 38

PRODUCT EXTENSION OPPORTUNITIES

The Indian apparel industry combining both the export and domestic sectors
represents a monolithic Rs.550 billion enterprise. Considering India's long heritage
in textile industry and traditional creativity, this performance still appears below
the actual potential. Currently, the worldwide designer wear market is estimated at
$35 billion, with a 9 per cent growth rate, with the Indian fashion industry making
up barely 0.1 per cent of the international industry's net worth. According to the
KPMG study, the designer wear fashion industry in India estimated to grow to
Rs.10 billion by 2010. Experts in the fashion trade estimate the annual turnover of
the industry to be about Rs.60, 000 crore. The turnover is expected to double in the
next couple of years, thanks to rising disposable incomes and exposure to western
media. Industry experts also foresee an average growth of about 10-12 per cent in
the Indian fashion industry in the coming years. However, the growth rate could be
more than 15 per cent, provided infrastructural and other logistical bottlenecks are
removed.
Indian apparel retail market is now growing at 10% CAGR annually. There lot of
opportunity in this market because the gap between demand and supply is there.
The branded player in apparel market is meager as compared to unbranded player
in this market.



Fig.17





0
50
100
150
200
250
2006 2007 2008 2011 2014
Year
Indian Apparel Market ('000 INR Crores)


RUPA & Co. Ltd. 39

SEGMENTATION OF INDIAN APPAREL MARKET

According, to the technopak data, Indian apparel market is estimated to be
1, 32,000 crores. Out of these Mens apparel market consist of 58,000 crores,
Women Apparel market consist of 51,000 crores, Childrens apparel market
21,000 crores and Unisex apparel market 3,000 crores. The segmentation of
apparel market on basis of products under different category is mentioned below.
The unisex apparel market comprises of item which are for both men and women.
The two main products of this segment are Ties/Scarves and Socks. Since Rupa is
already present in socks category by its Brand Footline it can make a foray into
Ties/Scarves segment. It can do that with entering into Tie segment with some new
or existing premium Brand. We are suggesting Ties because it is a premium
product by its own nature as it represents value pertaining to consumers lifestyle.





Fig.18 Unisex Apparel Market size INR 3,000 crores

Childrens Apparel Market size is around 21,000 crores with major share in the
market of School Uniform i.e. around 21% .Since there is a great vaccum in this
sector as main players in this segment are from unorganized sector it present Rupa
with great opportunity to foray in this segment with some new brand and capture
this huge untapped market.






21%
79%
Unisex Apparel Segmentation
Ties / Scarves Socks


RUPA & Co. Ltd. 40

Rupa is already present in the kids wear segment by its brand Kidsline but that
only cover a small section of this entire pie. In order to increase its share in this
market Rupa has to come up with its own Retail stores on the line of Lilliput &
Gennie and Johnny which are doing good in this segment.




Fig.19 Children Apparel Market Size 21,000 crore

Mens Apparel Market is major market in this whole apparel market. Its size is
estimated to be around 58,000 crores with shirts with 27% market size. Rupa only
presence in this apparel pie for mens is in Undergarments section which is only
9% i.e. 5220 crores approx .of this 58,000 crore apparel market. Rupa should
increase its presence in this market as the major market share here is of
unorganized sector and organized market is growing rapidly in this sector. Here
also Rupa can use its Retail market to make an entry in any of this product
segment. There is lot of opportunities for Rupa to diversify its product portfolio.
Rupa should leverage its Brand Recall and Brand Pull to foray on this side of
apparel market.







School
Uniforms, 21%
Infants(0-2) Body
suits, 2%
Infant
Accessories, 14%
Infant T-
shirts, 16%
Frocks, 5%
T-shirts, 9%
Shorts/Pants/Skirts
/Capri, 13%
Jeans, 5%
Ethnicwear, 15%
CHILDREN'S APPAREL MARKET


RUPA & Co. Ltd. 41




Fig.20 Mens Apparel Market Size 58,000 crores

Womens Apparel Market is estimated to be around 51,000 crores. Rupas only
presence is in Lingerie section of this pie. Rupa has a meager share in women
innerwear market, which comprises of around 17% of this vast market. Rupa has to
increase its presence in this section as Rupa doesnt have any brand that can be
categorized to be of premium segment. Its brand Softline and Jon panty represent
only mass and economy section respectively. There is a significant void in its
product portfolio as there is no brand catering to premium segment. Rupa should
launch some premium brand either by creating one, or by using Brand Licensing,
which is done by VIP as they licensed Lovable brand for India , Enamor is licensed
to Gokaldas Intimate wear Inc. which are very soon planning to set up EBO to sell
these brands. Jockey is also licensed to Page Industries Limited for operation in
India and other neibouring country like Sri Lanka and Nepal. Rupa should also
enter in premium segment by becoming the licensee of some well known foreign
brand and should leverage the distribution network it possesses. There is lot of
competition in this segment as new player entering the market .Therefore Rupa
should make a move and establish its presence in this segment.






Jeans, 10%
Shirts, 27%
Suits,Jackets,Blazer
s ,Sherwanis, 10%
Trousers, 20%
Dhotis/Lungis, 2%
Casual Jackets, 2%
Nightwear, 6%
Undergarments, 9
%
Shawls/Sweaters, 3
%
T-shirts, 11%
Men's Apparel Market


RUPA & Co. Ltd. 42

















Fig.21 Womens Apparel Market Size 51,000 crores

When we ask our respondent during survey that where should Rupa extend its
portfolio to such that it can leverage its brand recall we get the following reply:



Fig.22


0
20
40
60
80
100
120
No. of Respondents
Portfolio extension as per Consumer View

Sarees, 32%
Blouses, 6%
T-shirts, 3%
Woven shirts, 2% Western
suits, Jackets, 3%
Lingerie
set, 17% Trousers/Skirts/Ca
pris/Shorts, 2%
Petticoats, 4%
Ethnic
Dresses, 21%
Nightwear, 4%
Jeans, 4%
Nightwear, 4%
Women's Apparel Market


RUPA & Co. Ltd. 43

SWOT ANALYSIS FOR RUPA


Strengths:
Largest distribution network with more than 700 distributors
Largest manufacturers of Hosiery Products
High brand Pull
High Brand Recall
Loyalty of distributors toward company
Networking of company by Agent
Brands of the company
Brand Ambassador of company
A market with large hidden strength.
Industry growth rate of 8%
Rupas growth rate is 26 %
Industry with never declining demand
Product has unsubstitutable demand
Wholesaling network

Weaknesses
Traditional approach of management
Sales centric company with sales mindset
Positioned as Male innerwear brand
Improper coverage of Distribution
Supply Demand mismatch is there
Improper Retail Coverage
High lead time of supply chain
Meager presence in women segment
Low degree of brand loyalty among customers
High degree of price-sensitiveness.
Lack of focus on support functions
Lack of Departmentation in company
Lack of IT support
Company culture












RUPA & Co. Ltd. 44

Opportunities

Changing perceptions about the product from a marginal item of clothing it is now
slowly being perceived as a part of ones wardrobe
Projected future growth rate of about 8% for the Rs. 11,600 crore industry
Exploration potential for the unorganized sector to grow by making inroads into the
share of the unorganized sector
The impact of better educating advertisements are making the consumers, look at
factors like comfort, quality and brand name and not only price
Backward and forward integration
Booming growth of Retail sector in India
Brand awareness among customers
Opportunity for e-retailing
Brand leverage to foray into different sector of economy
Exports opportunity are there
Opportunity for Joint Venturing
Induction of Quality Manpower


Threats

More and more players entering the market competing severely with each other but
sharing the same small pie instead of battling against the unorganized sector
MNC and big apparel companies are entering Hosiery Market
High employee attrition rate
Cannibalization of one Brand by other Brand since majority of them is position in
same SEC.















RUPA & Co. Ltd. 45


S
T
R
E
N
G
H
T
H
S
Largest
distribution
network with
more than
700
distributors
Largest
manufacturer
s of Hosiery
Products
High brand
Pull
High Brand
Recall
Loyalty of
distributors
toward
company
Networking of
company by
Agent
Brands of the
company
Brand
Ambassador
of company
A market with
large hidden
strength.
Industry
growth rate of
8%
Rupas
growth rate is
26 %
Industry with
never
declining
demand
Product has
unsubstitutabl
e demand
Wholesalin
g network
W
E
A
K
N
E
S
S
Traditional
approach of
management
Sales centric
company with
sales mindset
Positioned as
Male
innerwear
brand
Improper
coverage of
Distribution
Supply
Demand
mismatch is
there
Improper
Retail
Coverage
High lead
time of supply
chain
Meager
presence in
women
segment
Low degree of
brand loyalty
among
customers
High degree
of price-
sensitiveness.
Lack of focus
on support
functions
Lack of
Departmentat
ion in
company
Lack of IT
support
Company
culture
O
P
P
0
R
T
I
N
I
T
I
E
S
Changing
perceptions
about the
product from a
marginal item of
clothing it is now
slowly being
perceived as a
part of ones
wardrobe
Projected future
growth rate of
about 8% for the
Rs. 11,600 crore
industry
Exploration
potential for the
unorganized
sector to grow by
making inroads
into the share of
the unorganized
sector
The impact of
better educating
advertisements
are making the
consumers, look
at factors like
comfort, quality
and brand name
and not only
price
Backward and
forward
integration
Brand awareness
among
customers
Opportunity for
e-retailing
Brand leverage
to foray into
different sector
of economy
Exports
opportunity are
there
Opportunity for
Joint Venturing
Induction of
Quality
Manpower
Exports
opportunity are
there
Opportunity for
Joint Venturing
Induction of
Quality
Manpower
T
H
E
R
A
T
SMore and
more players
entering the
market
competing
severely with
each other
but sharing
the same
small pie
instead of
battling
against the
unorganized
sector
MNC and big
apparel
companies
are entering
Hosiery
Market
High
employee
attrition rate
Cannibalizati
on of one
Brand by
other Brand
since
majority of
them is
position in
same SEC.


RUPA & Co. Ltd. 46

SEC - Analysis for Rupa:



The organized market of Hosiery product in India is estimated to be around 4640
crores. Out of these nearly 60% market is of Womens Lingerie and 40% as shown
in fig. These bring into light the fact that organized market valuation is more for
women section as compare to their male counterparts.


1856
2784
Male (40%) Female (60%)
Organized Market
Value in crores
185.6
371.2
556.8
742.4
SEC-A (10%)
SEC-B (20%)
SEC-C (30%)
SEC-D (40%)
Total Market size 1856 crore's
Men's Organized Sector Valuation
Value in crore


RUPA & Co. Ltd. 47

In the fig. shown above the SEC analysis of Mens innerwear market for
organized segment is done. The 1856 crores organized innerwear market comprises
of SEC-A (10%), SEC-B (20%), SEC (30%) and SEC-D(40%).Here in this
organized market Rupa has significant presence in SEC-C and SEC-D segment.
Rupa major brands of innerwear are positioned in this SEC-C bracket with
Frontline being the undisputed leader in this segment. In SEC-D segment Rupa
has made its presence felt with Jon Vest and Briefs segment. Rupa Jon is popular
brand among rural masses across the India. It is positioned in the economy
segment which constitutes the major chunk in this organized segment of innerwear
market. There is an apparent vacuum as far as brands in SEC-B and SEC-A are
concerned. This chunk has been ignored by company in the past but as the foreign
innerwear brand foray in Indian market it makes all the national companies to think
about their brand positioning. In its effort to enter into SEC-A and SEC-B market

Rupa has launched his new brand Macroman m-series promoted by youth icon
Hrithik Roshan.Though the brand has managed to create buzz in the market due to
the extensive marketing of brand by company. These signify Rupa entry into
premium category followed by launch of Air-Vest in 2009.Though Rupa has
managed to enter the market it has to promote its brand in an aggressive manner in
order to make its presence felt as this is highly competitive segment where foreign
innerwear brands are placed. The mens market in SEC-A and SEC-B are primarily
dominated by foreign brands like JOCKEY, CALVIN KLEIN, and TOMMY
HILFIGER etc.

Rupa share in this market whole is 498 crores which is 26% of the 1854 crore
organized mens innerwear market. Rupa is market leader in mens innerwear
segment and has high brand recall as compare to its competitors. His main
competitors are AMUL, LUX, DOLLAR, JOCKEY etc. Currently Rupa is major
player in SEC-C and SEC-D segment. In order to expand its market share Rupa has
to enter into premium segment with marketing campaign targeted at upper middle
class section of society.

Rupa has potential to increase its reach as it has one of the biggest distribution
networks and it should try to consolidate its strength which is its distribution to tap
untapped area across India specifically rural India.







RUPA & Co. Ltd. 48

Womens innerwear market estimated to be around 2784 crores out of which the
composition according to SEC is SEC-A (10%), SEC-B (20%), SEC (25%) and
SEC-D (45%).In women section Rupa is represented by only two of its brand
Softline and Jon. Softline is placed in SEC-C and Jon in SEC-D segment. Rupas
market share in 2784 crore womens innerwear market is nearly 44 crores. Jon
share in SEC-D segment is 17.5 crores out of 833.2 crores which is a meager 2%.
Softline share in SEC-C segment is 26.5 crore out of 464 crore SEC-C market
which is about 6%.Rupa need to focus on this segment more as its share in this
market is only 1.5% which is a cause of great worry for company. Rupa has to
change its brand positioning in order to connect to its target consumer. In
comparison to male segment here brands are also less and market share is also
getting depleted. Rupa has to enter into premium category of women innerwear
market to tap the potential that this market possesses in order to increase its
bottom-line.










278.4
556.8
696
1252.8
0 200 400 600 800 1000 1200 1400
SEC-A (10%)
SEC-B (20%)
SEC-C (25%)
SEC-D (45%)
Women's Organized Market Valuation
Value in crore


RUPA & Co. Ltd. 49

Suggestions for Rupa on basis of SEC-Analysis:

1. If the company continues to show the lower SEC presence then it would
allow company to bleed and compromise in company bottom line which
will restrict growth of top line of the company.

2. SEC-A and SEC-B are not well represented in Rupas Brand portfolio.
Any brand will create an impression about the company in the market
and this absence of company in premium segment will have impact on
company growth prospect in future.

3. Putting all brands for SEC-C and SEC-D will lead to cannibalization of
one brand by another; already in this segment lot of competitors is
already present.

4. For SEC-A and SEC-B separate set of Brand differentiation is needed
with total different approach like
(i) Separate Stock Point
(ii) Separate Manpower
(iii) Different Packaging
(iv) Logistic and Infrastructure
(v) Separate Premium Division
(vi) Sales and Promotion campaign

5. Bottom line of SEC-C and SEC-D of a company is always less as
compare to company which are in SEC-A and SEC-B.

6. Operating margin is more in case of SEC-A and SEC-B segment as
compare to SEC-C and SEC-D .






RUPA & Co. Ltd. 50


List of References

1. http://www.yeahindia.com/article1.htm#top
2. http://economictimes.indiatimes.com/news/news-by-industry/services/advertising/Hosiery-
business-Striking-gold-with-silverwear/articleshow/5744659.cms

3. http://retailmantras.blogspot.com/2009/10/innerwear-market-in-india.html

4. http://www.amityedumedia.com/industry/FashionTreands.htm

5. http://www.technopak.com

6. http://www.fibre2fashion.com/industry-article

7. http://www.export.by/en/?act=s_docs&mode=view&id=6706&doc=64

8. http://rupa-co-ltd.tradenote.net/

9. http://www.financialexpress.com/news/rupa-wearing-a-new-look/84074/0

10. http://www.business-standard.com/india/news/rupa-aims-to-stepexports/211231/

11. http://m.economictimes.com/PDAET/articleshow/5744659.cms

12.http://www.fibre2fashion.com/news/apparel-news/newsdetails.aspx?news_id=85056&page=2













RUPA & Co. Ltd. 51

Annexure : Questionnaire for Brand Awareness for consumers

(1) Name of Respondent


(2) Age group of Respondent
(a) 15 -25 yrs
(b) 25 -35 yrs
(c) 35 -45 yrs
(d) 45 -55 yrs
(e) 55 & above.

(3) Gender (a) Male (b) Female

(4) Place of Residence
(a) Urban
(b) Semi-urban
(c) Rural

(5) Profession of Respondent
(a) Student
(b) Govt. Employee
(c) MNC Employee
(d) Businessmen
(e) Housewife
(f) Private sector employee
(g) Others please specify

(6) Family Income of Respondent (Monthly)
(a) Below 20,000 Rs.
(b) 20,000 to 40,000 Rs.
(c) 4,0000 to 6,0000 Rs.
(d) 6,0000 to 8,0000 Rs.
(e) Above 80,000 Rs.

(6) Factors taking into consideration while purchasing innerwear
(a) Comfort (b) Quality (c) Style (d) Price
(e) Color (f) Fit (g) Durability






RUPA & Co. Ltd. 52

(7) Do you take brand into consideration while purchasing innerwear
(a) Yes
(b) No


(8) If Yes, why?


(9) Specify the brand that come to your mind when you think of innerwear


(8) From where do you purchase your innerwear
(a) Exclusive Brand Outlets (EBO)
(b) Format Stores (eg. Pantaloons , Shopper Stop etc.)
(c) Shops in Local Market (MBO)
(d) Specific Shop

(9) How often do you purchase innerwear
(a) 1-3 months
(b) 3-6 months
(c) 6 months & above.

(10) How much do you spend while purchasing innerwear
(a) Below 100 Rs.
(b) 100-300 Rs.
(c) 300-500 Rs.
(d) 500 & above.









RUPA & Co. Ltd. 53

(11) Which of the following companies have you heard about
(a) Lux Hosiery Ltd.
(b) G. J. Hosiery Ltd.
(c) Maxwell Industries Ltd.
(d) Rupa and Company Ltd.
(e) Page Industries Ltd.
(f) Dollar Industries Ltd.
(g) Hanesbrand Inc.
(h) Gokaldas Intimatewear Ltd.

(12) Before this survey how often have you heard about the brand RUPA
(a) I have never heard of the brand before today
(b) I have seen or heard about the brand few times
(c) I see or heard about the brand frequently

(13) Through which medium have have you heard about the brand RUPA
(a) Print Media
(b) Electronic Media (TV)
(c) Hoardings
(d) Wall Painting
(e) POP Materials
(f) Word of mouth
(g) Internet

(14) Which of the below mentioned brand have you heard about
(a) Amul Macho (f) Rupa Frontline (k) Euro
(b) Bumchums (g) Macroman M-series (l) Lovable
(c) Softline (h) Dixcy (m) Jockey
(d) Footline (i) Lux Cozi (n) Calvin Klein
(e) Rupa Jon (j) VIP Frenchie (o) Hanes
(p) Enamour (q) Tommy Hifigier (r) Dollar Club
(s) Triumph (t) GenX

(15) Which of the following Brands of Rupa are you aware of
(a) Frontline (b) Euro (c) Jon
(d) Macroman (e) Softline (f) Thermocot
(g) Bumchums (h) Interlock (i) Ribline
(j) Air-Vest (k) Footline




RUPA & Co. Ltd. 54

(18)What is your general impression about Brand Rupa ?
(a) High Quality and Reliable
(b) Average quality and dependable
(c) Low Quality and not Reliable.


(16) How memorable is the logo of Rupa on scale of 1-5 ?
Very Low 1 2 3 4 5 Very High


(17) If Rupa launch a Brand in premium category under which Brandname
should it do so ?
(a) Jon
(b) Macroman
(c) Euro
(d) Frontline
(e) Others please specify




(20) What type of products do you think should Rupa extend it,s portfolio to
such that Brandname RUPA can be leveraged ?
(a) Nightwear
(b) Sportswear
(c) Winterwear
(d) Footwear
(e) Kidswear
(f) Fashionwear
(g) Cosmetics (Personal care)
(h) Others please specify


(21) If for women Rupa decided to sell from exclusive stores would you like to
buy from it ?
(a) Yes (b) No


ANY SUGGESTION FOR RUPA :-



RUPA & Co. Ltd. 55

Questionnaire for Channel Partners feedback

Name

Profession

Years in this business

Territory

Retailers in your territory

Hosiery Brands which you are dealing with including competitors


Brands of Rupa you are dealing with


Brands of Rupa performing well in their respective segments


Brands of Rupa not performing well


Reasons for the non performance of Brands according to you



RUPA & Co. Ltd. 56


Brands of Rupa you like most and why


Rate the following brands of Rupa on scale of 1-10 as per their performance

S no. Brands Rating
1. Rupa Frontline
2. Rupa Euro
3. Rupa Jon
4. Macroman M-series
5. Rupa Softline
6. Rupa Footline
7. Rupa Kidsline
8. Rupa Air Vest
9. Rupa Ribline
10. Rupa Bumchums
11. Rupa Thermocot
12. Rupa Interlock

Rate the company Rupa on the scale of 1-10 on following heads
Policy of Company
Services of company
Order Processing Capability
Product of the company
After Sales Service
Settlement of schemes




RUPA & Co. Ltd. 57

Suggestion on following products
Vest/Brief
Lingerie
Kidswear
Footwear
Thermocot
Casualwear

Pricing of Rupa vis-a-vis Competitors



Value Delivery Chain used to reach Final Customer








RUPA & Co. Ltd. 58

Category of Brands as perceived by you i.e. Premium, Mass & Economy

S no. Brands Category
1. Rupa Frontline
2. Rupa Euro
3. Rupa Jon
4. Macroman M-series
5. Rupa Softline
6. Rupa Footline
7. Rupa Kidsline
8. Rupa Air Vest
9. Rupa Ribline
10. Rupa Bumchums
11. Rupa Thermocot
12. Rupa Interlock

Category suggested by you for Brand Extension by Rupa
Men
Women
Kids

Suggestions for Rupa