Arvind Ltd Marketing Plan

GROUP 5

INDIAN TEXTILE INDUSTRY

India Textile Industry is one of the leading textile industries in the world. Few years back it was an unorganized industry ,but the scenario started changing after the economic liberalization of Indian economy in 1991. Currently it is estimated to be around US$ 52 billion and is also projected to be around US$ 115 billion by the year 2012. Plays a major role in the economy of the country and earns 27% foreign exchange through exports. Contributes 14% of total industrial production. Contributes around 3% to the GDP. Indian textile industry is second largest industry in India after Agriculture.
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INDIAs POSITION IN GLOBAL TEXTILE INDUSTRY

India's position in the World Textiles Economy Second largest producer of raw cotton. Second largest producer of cotton yarn. Second largest producer of cellulosic fibre/yarn. Second largest producer of silk. Fourth largest producer of synthetic fibre/yarn.

Arvind Limited
COMPANY OVERVIEW Arvind mills was founded in 1931 and is based in Ahemdabad, India largest and worlds 3rd largest producer and exporter of denim. Flagship company of Rs 20 billion (USD 500 million) Lalbhai Group. In the early 1980s, the company brought denim into the domestic market, thus started the jeans revolution in India. Manufactures a range of cotton shirting, denim, knits and bottomweights (Khakis) fabrics. India's largest & worlds fourth-largest producer and exporter of denim. Today it not only retails its own brands like Flying Machine, Newport and Excalibur but also licensed international brands like Arrow, Lee, Wrangler and Tommy Hilfiger.
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BRANDS OF ARVIND LTD

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Arvind Limited
Arvind is expanding its Denim manufacturing capacity to 140 million meters by setting up 30 million meters of denim manufacturing plant in Bangladesh. Arvind caters to the high quality textile requirements of Europe, US, West Asia, the Far East & the Asia Pacific in more than 70 countries. Denim contributes 60% of the companys turnover. the company is one of the leading players in domestic ready-to-wear garments segment.

SWOT Analysis
Strengths
Weakness
Continuous Product Development. Presence in only big cities World class product & design Premium pricing. innovation Assurance of quality and consistency. Delivery Adherence on time every time.

Competitors like Raymond, Changing retail scenario Bombay Dyeing, Madura Rapid growth in age group of Garments 15-44 years. Cheap imports from China, Has the potential to become the Thailand Bangladesh market leader in kidswear. Excise duty.
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Opportunity

Threats

Marketing strategy STRATEGY OF MASS MARKET STRATEGY OF NICHE MARKET HYBRID PRICING STRATEGY

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STARTEGY OF MASS MARKET

Mass market strategy is one which helps the organization to achieve its long term benefits. The product is made available to the target customer in lower prices with the necessary feature required by the customer. Products should meet the requirements and the budget of the growing class to create huge market and demand for their products. The places which attract huge crowds characterized by middle and higher middle class can be chosen for product placement and promotion.
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STRATEGY OF NICHE MARKET

Niche marketing refers to a product or a service that accounts for a certain kind of specialty concerning customer need andcompany concentrates on small target market. The target customers under this strategy are those who value the product quality and design and are higher income group people. The best promotion strategy for this segment is in the fashion magazines. The requirement of the market is highly specialized and specific. The target customer needs customize and specialized products and this strategy helps to build strong brand Image.
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HYBRID PRICING STRATEGY

The hybrid strategy means that the products would be priced according to the place they are sold at. In metros, they will be sold at premium prices. In other cities they will be sold at comparatively lower prices. The crux being, products should be sold geographically according to the pocket capabilities of the consumers in each state and city covered. It depends upon the quality of products demanded in each place. For example, stocking more high quality and high priced products in big cities and comparatively lesser in medium and small cities.
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COMPETETOR ANALYSIS

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MARKET-CUSTOMER SURVEY

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Consumer preference Criteria when choosing the Fabric

Each Consumer was asked to rank the factors according to their preference 1=Most preferred 2=Preferred 3=Neutral 4=Least Preferred 5=Not Preferred
COMPONENT PRODUCT ATTRIBUTES

COSTUMER SURVEY
FACTOR FEEL QUALITY/DURABILITY DESIGN COLOUR PATTERN COMFORT FINISH 1.2 1.3 2.5 2.4 2.5 1.6 2.1

AVERAGE RATING

COMMENTS MOST PREFERRED MOST PREFERRED PREFERRED PREFERRED PREFERRED MOST PREFERRED PREFERRED

PROMOTIONS

BRAND IMAGE

2.1

PREFERRED

RECOMMENDATION OF FRIENDS AND NEIGHBORS

ADVERTISEMENTS DETAILED SELF-EXPLANATORY BROCHURES

3.3
4.4 4.8

NEUTRAL
LEAST PREFFERED NOT PREFERRED

PRICING

PRICE DISCOUNT OFFER/FINANCIAL SCHEMES

2.3 2.9

PREFERRED NEUTRAL

PLACE

RECOMMENDATION OF RETAILER EVERYTHING UNDER ONE ROOF PROXIMITY OF THE STORE PARKING SPACE

4.2 4 3.7 3.1

LEAST PREFFERED LEAST PREFFERED LEAST PREFFERED NEUTRAL

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ANALYSIS OF THE CHOOSING THE FABRIC

Most Preferred Factors: Feel, Quality and Comfort Preferred Factors: Design, Color, Pattern, finish Neutral factors: Discount/Schemes, Parking space and recommendation of Friends Least Preferred: proximity of stores, Everything under one roof, Recommendation of retailers and advertisement Not Preferred Factor: A detailed self-explanatory brochure

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Majority of Consumers surveyed are falling into 25 -30 (28%) and 30 35 (32%) in age group. Age No of Response Percentage % 25 30 30 -35 35 40 40 45 45 50 Above 50 28 32 18 10 12 0 28 % 32 % 18 % 10% 24% 0%

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Occupation of buyers
Category No of Response % Student 8 Business 38 Private Job 26 Gov. Job 24 Any other 4 Percentage 8% 38 % 26 % 24% 2%

Majority of Consumers are falling into Business (38%) and Private Job (26%) group

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Earnings of buyer
Category No of Response Percentage % 4 16 42 22 10 6 4% 16 % 42 % 22% 10% 6% Less than 1 Lakh 1 2 Lakh 2 4 Lakh 4 6 Lakh 6 8 Lakh Above 8 Lakh

Majority of Consumers are earning 2-4 Lakh (42%) and 4-6 (22%) Lakh per Annum

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As per survey Most Consumers prefers Checks and Stripes while Buying Shirt fabric.
30% 25%

20%

15%

10%

5%

0% Plain Whites Stripes Printed Checks Embroidery

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As per survey Most Consumers prefers plain and stripes while Buying Suit fabric.
60% 50%

40%

30%

Series1

20%

10%

0% Plain Whites Stripes Checks

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As per survey Most Consumers are inspired by reference from friends and Ads in Newspaper to buy fabrics
50% 45% 40% 35%

30%
25% 20% 15% 10% 5% 0% Local ads in Newspaper Hoardings Reference from Friends Retailer's Recommendation

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Majority 78% of the respondents are not aware of Arvind store near their area. Effort should be done to increase brand awareness.
Chart Title

Yes 22%

No 78%

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Key findings of the Customer survey

The survey shows that most of the customer that visits a store for mens formal wear belongs to the age group of 35 or above followed by the age group of 30- 35 having monthly income of 40,000 or above. Sales increases during festivals compare to other seasons of the year. As per the survey Raymond is the most preferred Suiting brand of the customers while design is the most preferred attribute followed Quality and Color for them while shopping for Suiting. In Shirting Arvind is the most preferred brand of the customers while Design is the most important attribute followed by Quality and Color.

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Customers prefer to buy Shirting fabric within the price range of either Rs.800- 1400 or Rs.1400- 2000. In Suiting most of the customers preferred to by Suiting fabric within the price range of Rs. 6500- 10000 and the second preferred price range is Rs. 16000- 22000. The survey shows that customers prefer to wear Plain Suits and Trousers followed by stripes fabric and while in Shirting Checks Fabric and Stripes Fabric is most of the customers favorite followed by plain fabric. Most of the Customers like to wear Cotton mix fabric followed by 100% Cotton fabric. Most of the Customers showed interest in buying Perfume along with fabric followed by Shocks, Wallet, Suit Pin, Ties, etc. that customer want to buy with fabric.

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As per the survey most of the customers never exchanges fabric after purchasing however those who exchanges sometimes is mainly because of Color bleeding and Design defect.

Newspaper is the most common source of customer knowledge about various sales promotion and the other common sources are Banners and Hoardings, TV, Word of Mouth, Radio etc. accordingly. Among newspapers most of the respondents read Times of India.
Customers are interested in stitching the fabric by Tailors of their own choice rather than to stitch it by the retailer. When it comes to offer customers are more interested towards free gifts and instant discounts, movie ticket is the next

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Segmentation
TARGET CUSTOMERS

There is a specific target market for these fabric products, i.e, Targeting: Male (20-45 years) . Generally, the business class , career oriented people and professionals.
It targets the metro cities basically tier I, II and III cities Arvind had 30% sales in these cities. And get 50% sales from the IV and V tier cites.
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Positioning
In shirting category Arvind include fabrics with non-iron properties, mechanical finishes, printed fabrics apart from the cotton and cotton blends in Linen, Lycra, Polyester, Modal, Silk etc. with varieties in yarn dyed and solids.

Differentiation
The finishes like liquid ammonia (first used by Arvind), made the fabric high in quality and feel. And the use of Giza cotton and vat color made the differentiation.

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