61985665 tarang textiles company profile

Expansion Enigmas

A CASE STUDY ON EXPANSION ENIGMA FACED BY

TEXTILES

CASE PRESENTED BY :

1.KRISHNACHANDRAN.P

2.PANKAJ KESARWANI

3.PRIYANK SHRIVASTAVA

4.SAHIL KATHPAL

5.SREENIDHY.S

Tarang Textiles -Company Profile

• Tarang is a manufacturer and marketer of fabrics for suitings and shirtings .

• Two decades old company.

• Turnover of 225 crores in 1995-1996.

63%

37%

% shares of fabrics

shirtings suitings

Current Market Share

18%

82%

Market Share

tarang market share rest of the other players

classic

(90-120

)14%

windfal

l (60-85)17%

bornfre

e (55-75)52%

firebrand

(40-50)17%

shirtings

reverie (250)11%

fritz (200)25%casual

(165)40%

macho (140)24%

suitings

Company’s Brands In The Market

Parameters Climbers SettlersAge 25-35 33-45

Income 5000 4000-8000

Family 5 5

Working as Executive in small and medium companies

Mid range banks /PSU’s

Experience 4-12 years

Hobbies Reading magazines and watching TV

shopping

Concentration 40% south and 23% west

Mainly southern cities and towns

Profile Of Existing Customers

Climbers Settlers

Other features Durability, price and crease resistanceAmbitiousAspirationHardworkingPerseveranceDrive towards material was of significant value

Durability, price, easy availability.Concern for children’s education, savings for retired life [priority] Loyalty to Tarang –non availability of other brand as reason for choosing Tarang

Segmentation & Target markets Segment Brand

PersonalityBrand Name

Variety

Children Spoorthy Twinkle TrousersCasuals

Youngsters Live well Thirst TrousersCasualsShirts

Working Class

Excellence Pinnacle TrousersCasualsShirts

Analysis of existing branded Shirts Market :

• Branded shirts range from 150-1100

• Three premium brands were of the same company and accounted for 40% share.

• All other companies had market share less than 10%.

• Popular end had only two major brands: Prize and Rans

• Prize was national brand with no exclusive outlets and operating in at a price range of 150 - 225 with more presence in north and west India

• ‘Rans’ is a regional brand well entrenched in southern cities with 4 exclusive showrooms and operating in a price range of 175-225

Our Target Market Segment

Focusing on Middle and Economy class

Characteristics of this segment High Market Potential. Pricing is a crucial factor. Low input cost and high profit margin. Comparatively lower brand image required. Minimal product differentiation required.

PRIZE RANS

Brand-Presence

National brand Regional brand

Showrooms No exclusive showrooms; distribution through retail chain (dense in north and west india-65%)

Exclusive showrooms in 4 major cities in south India

Analysis of potential competitors

Why No to Premium Segment?

No experience. Head on competition. Strong Brand Image Required. Huge upfront promotional investments.

•Tarang is operating for 20 years and has developed good market share in fabrics.

•Known among customers for durability and price.

•Largest contribution to sales-20% school and corporate uniform.

• It has about 530 exclusive retail outlets across 248 towns, with south and west accounting for 65% of them.

Strengths . . .

Weakness …

Lacks brand personality. Less presence in northern and eastern part of

India. Customers were not aware of sub-brand

existence. No advertising and promotional activities to

improve its brand image and expand its customer base.

Opportunities …

  Branded readymade shirts has a market of Rs. 800 crores

which is a very huge market opportunity.

Readymade shirts segment growing at 25% since last 3 years.

Focus on middle and economy class consumers who are already aware of Tarang.

Competitors at lower price ranges are weak.

readymade

fabrics0

102030

growth rate per annum

growth rate per annum

Threat …

Prize and Rans are competitors.

People are not loyal to a particular brand. Hence the biggest challenge is to develop a brand.

RECOMMENDATIONS

1. Tarang should enter men’s readymade because : Growth of fabric entry industry is only 3-5% while that of ready

made segment is 25 % per annum for the last three years. The readymade market is valued Rs. 800 Cr today and even a

marginal share will boost Tarang’s turnover by 20 percent every year.

2. Tarang should target : Economy and Middle class.

3. Operation ghost shoppers reveals the fact that : Don’t compromise on quality. Variety of shirts to be produced.

FUTURE PLANS

Provide fabrics to other players in the ready made industry.

Geographic segmentation – Need to mark presence in Northern and Eastern India.

the