name of the innovation

8/14/2019 Name of the Innovation

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Name of the Innovation: Niche Garments Retail

Team Name: iCON

Institute Name: Acharya Institute of Management and Sciences, Bangalore

Team Members:

Mr. Lalit Mohan Jha

Email id:[email protected]

Ph No: 9886198275

Ms. Monalisa Senapati

Email id: [email protected]

Ph No: 9342201459

Contact Address: Acharya Institute of Management & Sciences

1st Cross, 1st Stage, Peenya, Bangalore-58

Executive Summary

Clothing says a lot, but you can say it better.


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According to our research and analysis we have noticed that the customers are not very

much satisfied from the garment retails. In search of there need from garment retails the

customers are roaming from one outlet to another. We have taken the sample size of 300 that

consist of:-

Potential customers Nos.

1.Employee from Software sector(Male) 79

2. Employee from Software sector(Female) 64

3.College Students 84

4.Employee working in others sectors 37

5.House Wives 21

6.Others 15

We have also noticed in our questionnaire that the customers expect following facilities and

services from the retail outlets: -

PRODUCT ADDITION

1. CAR AND BIKES WATER SERVICING AND POLISHING

2. PHARMACY SHOP

3. CHILD CARE CENTER

4. BEAUTY SALOON

5. OPEN ENDED CINEMA THEATER

6. OTHERS (DIFFERENT RELIGIONAL VEDIO AND AUDIO CDS,

BOOKS ONE DIFFERENT DEPARTMENTS)


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Due to time consistency, we have only concentrated and done in depth study only on

garment sector.

Niche garment retailing emerging as a sunrise industry in India and is presently the one of the

largest Employer. The Internet represents approximately $ 6.5 million of E-commerce

purchases. Throughout the year Women have been constant and dominant consumer in the

industry.Womens apparel sales growth was 3.7% and mens apparel growth was 4.1%, Girls

& Boys apparel rose 0.5% & 3.8%.Womens apparel accounted for 52% of all apparel sales.

The men segment accounted for 31% of total apparel sales.

COMPETING AND COMPILMENTRY PRODUCTS in a broad view, the retail apparel industry

competes with all other sector in the retail industry. These different sectors include Electronics

retailers, Wholesales, Other discount stores, Shoes stores convenience stores and so on.

We felt it is worth recommending you the ideas given above specifically GARMENT SECTOR

piloted Bangalore city.


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Introduction

The business ideas is designed for the innovative product and strategies particularly for

garment sector namely:

1. Designer wear at the weekends.

2. Business executive dresses for females.

3. Combo, party & wedding wears.

4. Regional wears.

1. Description

1.1)Designer wear at the weekend: This type of strategy is no where in India in

retail market, as of now it is available only in exclusive showrooms. We will sale

designer wear like Ritu Beri, Manish Malhotra, Satya Paul, Milazzo etc. exclusively

at the weekend.

By, Maria Diochinova By, Miulazzo


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1,2) ,Business executive Dresses: This will consist of complete executive apparel

such as blazer, tie, trouser, shirts, socks, shoes, tie pin, formal shirts, wrist-watch, sun glass,

and other accesaries.


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3. Combo party and wedding wears: We will introduce the combo

party and wedding wears of apparel. We will introduce matching groom and

bride wears so as to enhance their beauty, with minimum time and effort.

1.4) Regional Wear: This will be an invention in retail history- introducing different regional

dresses to the customers.We will devide the whole nation in two broad categories,i.e. -a)

North Indian: Gujarati, Rajasthani, Bengali, Punjabi, Sambalpuri, Banarsi, etc.

b) South Indian: Kanchivarm, Pattu Sari, Dhoti, Lungi etc.


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MARKET RESEARCH:-

India is a strong competitive in the worlds garment market. The latest trends are going

towards the fashion. Apparel sector is one of the booming and glamorous industries among

others. From several researches done in the men apparel market in India, it is found that the

market is expected to grow rapidly at Compound annual growth rate (CAGR) of 14.86% from

2008 to 2010, women apparel market is also growing rapidly.

Based on our assessment of General Questionnaire (Shown in annexures), we have come

across various needs of the customer from the retail sector. Our research is based on

peoples opinions and attitudes towards products and services.

We have made the survey in the shopping malls like Garuda malls, Spencer, Big Bazaar,

Forum, Spar mega market, Star Bazaar, shoppers stop, and we have noticed that customer

are not satisfied with the products and services .

We came across that the majority of the customers are not completely satisfied from garment

retailers.

Therefore we realized that there is need for the full solution mainly in garment sector in retail

outlets.

Since the females are mostly attracted towards the garments sector , therefore we found

worth recommending you the plan for complete solution in garments retail industry.

MARKETING STRATEGY:-

A market survey was carried out in Bangalore to find out peoples expectation fron the market

and the varies constrains that resist them from buying the products available in the market.

Enumerators collected data by administering questionnaire (Refer Annexure I,ll) which

involved open and close ended questions. Sample size was 300 and was chosen by the

method of random sampling.

ANALYSIS OF INFORMATIONS:

Percentage and average methods are used as statistical tool for data collection.

1. People with income more than Rs.50000 p.m. income, with family members less than

three want to posses garments with some unique design to maintain their status.


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2. There are vary few people in high income group, those who hardly influnced by the

fashion shown in the cinema.Where as there is a drastic change noticed in the high

middle income group, who vary much influenced by the fashion of actor/actress.

Again middle income customer segment influnce by the brand name with discount on

it.

3. Most of the high middle income group customer find a mall/shop that will suggest

them a complete solution for their fashion/style. Where as people with vary high

income want a mall/shop where they can get a wide range of procuct, so that they

can choose the best one for them.

4. Surprisingly, there is a chank of customer who want follow their states traditional

fashion to create a different style for them.

a. TARGET MARKET

On the basis of analysis of income, gender, age, occupation, religion and location of the

people we have choosen the different target customer for our different products.

A. Designer wear: Income group above Rs 50,000/ month (individually)

B. Regional wears: Customers above 25 years of age.C. Combo party and wedding wear: Income group above Rs. 20,000 (individually)

D. Business Executive:Individuals incomes above Rs. 15,000/ month.

Note: - Individually =Per capita income

b. PRICING, STRATEGY

1. We will provide psychological pricing with some discounts forCombo offer of wedding

and party weari.e.; if the individual price of the garments are Rs. X and Rs. Y then the

combo offer Rs.[( x + y)-z%].

2. Business executive dresses for females and regional dresses will be provided with

discount on buying other related commodity .

E.g.

Purchase on Rs. Discount On Product

1000 5% - Perfume

2000 12% - (Perfume + cosmetics )


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Designer wearwill be arranged through a auction show where initial pricing of the dress will be

started from keeping Y % profit margin on the dress. People would be permited to attain the auction

by purchasing a ticket worth Rs. X. This strategy will help us in attracting the high income segment

and also to avoid unexpected gathering.

Starting bidding price= cost+(cost*y%profit)

Promotional strategies:

We have choosen different promotional strategies to promote different products, as the route

of reaching to diffrent segment of people is vary diffrent.Following are the various ways of

awaring the target customers:

1. Advertisement for designer wear will be given in popular Fashion Magazins,

2. SMS through Rediffbol, mobile operatoretc. can be used to aware people

about the date,time and place of auction for designer wear. The same media

can also be used for promoting regional and business executive dress.

3. We can send e-mails through internet to aware people about designer wear

and then relunch of the same through e-auction.

4. To promote wedding wears we can give advertisement through banner and

pop-up in various Matrimonial site.

5. To promote regional wear, advertisement will be provided in regional

newspapers and magazins like; Kannada, Hindi, English,Bengali etc, that has

circulation in Bangalore. Coupons worth 10% discount would also be

published in the newspapers for garments other than designer wear.

6.There can be advertisements during peak hours in radio FM as it is booming

today.

7.Advertisement would be played during the internal in cinemas as people are

crazy about the movies and cinemas.

8.Hoardings can be placed outside the colleges, famous parlours, Health care

center etc.

9.Future media Future Groups own media channel could be used to creat

awareness about these products.


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BRANDING STRATEGIES:

Like other strategies diffrent types of branding has to be adopted for diffrent products.

1. DESIGNER WEAR: Designer wear does not require much of influence by

brand name as the designer name itself act as a brand.

2. BUSINESS EXECUTIVE DRESSES: Here three branding strategies can

be adopted to promote the product:

a. Umbrella Branding through Pantaloon

b. Individual branding that will give a joy of experiencing a new

product.

c. Umbrella branding through other famous brands like Peter England,Arrow etc.

- among this the first one is the most fesiable as the advantages the

product can gets are:

It does not incure much of cost in brand awarebess as Pantaloon

is a well known brand to all.

Through Pantaloon it can get ready made brand loyal customers.

3. Combo party and wedding wear: To promote this product branding shall

be done under a new brand name, so that the customer can enjoy a new

product. Brand name shall be like ; Mr.& Mrs. , HUM(a Hindi word that means

WE)

4.REGIONAL WEAR: Branding strategy shall be of individual brending,

where similar type of designs can be put under one brand, Like

GHARANA(Garana is a hindi word that means Tradition)

SELLING AND DISTRIBUTION STRATEGIES:

Selling and distribution strategies should be such that it helps the company to

achive the goal.The goal is to deliver the products to its target customer to

develope customer base, and at the end earn healthy profit.

Different alternative selling and distribution strategies for different products are

shown below:

1. DESIGNER WEAR:


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CASH GENERATION CYCLE:

SOURCES

Famous

designer

exhibits in the glass

show case so as toadvertise the product.

Launch

the

product

through

auction

at Future

groups

mall,

Unsold

product in

auction

Relaunche

d those

products

through E-

auction

Unsold

productin E-

auction

Relaunched

those

products

through E-sale with a

minimum

profit margin


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2. BUSINESS EXECUTIVE DRESSES;

CASH

INFLOWS

Bidding- a

open &unlimited

profit.

Revenue=c

ost+(cost*x

% rofit + %

Ticket for

getting

invitation for

bidding.

Revenue=no.Of ticket sold

Sponsorship

Name of

the

sponsoror ofthe auction

will be

printed on

the ticket

E-auction:-an unlimited

means of

profit earning

from the

entire world.

E-sale.

Revenue=cos

t+(cost*x%pro

fit

x%= Initial profit

margin

y%= Unlimited

profit margin


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CASH GENERATION CYCLE:

SOURCES

Famous brandsDesigners

Displayed for

the first time.

Revenue=[co

st+(cost*x%)

Unsold

garments

On

purchae

s of

Rs.1000

& aboveget a

discount

of 5%

on

On purchase of Rs.

2000 & above get a

discount of 10%

Remainin

g unsold

products

Exclusive

Offers for

would be

EXECUTIVE

Relaunched

the executive

wears

targeting the

students with

a discount

offers.

Revenue=cost


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CASH

INFLOW

At the

first

launch

Revenue=[c

ost+(cost*x%

profit)]*sales

Discount on

1000rs

purchase

Revenue=[cost

of executive

wear+(cost*x%

of profit)]+[cost

of perfume+(cost

Discount on

2000rs.

Purchases

Revenue=[(cost

of executive

wear+(cost*x%of

profit)] +[cost of

perfume+(cost*y

%profit)+cost of

wrist watch

+(cost*z%profit)]

-10%discount

Exclusive Offers

:

Revenue=cost of

executive

wear+(cost*x%profi

x%=Highest profit

margin

y%=profit margin ofperfume

z%=profit margin on

wrist watch


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3, COMBO PARTY AND WEDDING WEAR

Sources

BoutiqueDesigner

For the

first time

launching

combo

price will

be lower

than the

individual

price

Unsoldgarment

s

Exclusive

offer

Couple

purchasing

above

rs.10,000

will get a

exclusive

pass for

attening


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CASH GENERATIG CYCLE:

4. REGIONAL WEAR

At the

first time

launched

Revenue

=[ cost +

(cost*x%)

]*sales

Exclusiv

e offer

Revenue

Cash

x%= Initial profit

margin

Source

From the

origin

eg:Jaipuri

langha

Showcase

sellingUnsold

regional

wear

Jodi offer

on

purchasing

male/female

wear

customer will

get a free gift

for

Sales

offer

Deliver

the

remaning

wear to

the

customer

Pilled up to

relaunched

at religious

festival


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CASH GENERATIG CYCLE:


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FINANCIAL PLAN

Cash

inflow

At first lunch

Revenue=

[cost+(cost*x% *sale

On Jodi Offers

Revenue=[cost

+(cost*x%)-

Rs.y)]*sales

On discount

Revenue=[cost

+(cost*z%profit)

]*sales volume

At festival time

Revenue=[cost+(c

ost*x%profit)]*sales volume

x%= Initial profit margin

Rs. Y = price of gift


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cost -revenue estimation of regional, business

executive, combo party and weeding wear

Revenue= no. Of dresses sold * price

Types of dresses No. Of dresses sold p.a. *

Avg.

Price/dress

= Total(

in rs.)

combo party and wedding

wear 250 * 20000

500000

0

Business executive

dresses 150 * 3000 450000

Regional wear 100 * 800 80000

Total 500

553000

0

cost= rent+salaries

Types of expences cost/year

Rent 116640

Salaries of sales

representative 480000

Total 596640


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Profit

493336

0

Rent= 36sq/ft area for each garment*Rs90/sq ft*3(types of dresses)=9720rs/ month

annually= 9720*12= Rs.116640

Salaries= Two representative for each type of garments*Rs 5000/employee*3(types

of

dresses)= rs. 30000

Annually= rs. 30000*12= Rs. 360000

Salary of manager= Rs.10000*12= Rs 120000

Rs.480000

Tax is excluded

Cost -revenue estimation for Designer wear

No.of dresses sold p.a. *price = Total

20 28000 560000

Other incomes

Tickets

(200 tickets/month

*12)2400 *300 720000


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Competitive Business Strategy

As the product started growing in the market, new competitors and substitutes of the product

rise in the market. Our product is such that, it has the following competitive strenghs to protect

itself from the competitions.

A. PRODUCTS STRENGH ANALYSIS:

1. Designer wear is most attractive one; it will lead the people towards identing the

latest fashion.

2. Regional wear will be innovative in the mall and hence it will attract the customer .

3. Combo will also be a new arrangement and hence it will give the solution for the

choice. E.g. Womens dress embroiders will be same as of men.

4. Since executive dress for female will also be the new product.

B. SPECIFIC ATTACK STRATEGY:

1.Discount program on product enables the customer to take the other product from the

same mall on discount. This will be the better representation in comparison to the other

mall.

2. Intensive advertising promotion will be done when it will reach growth stage to face

the challenges of competitors.

3, Continious product modification: The type of garments we have selected that does

not need much effort to modify them, The only effort requred is for their presentations.

4. Prestige products like designer wear will help in maintaining the status of the

business group and it may futher increase the reputation of Future Group.

6. Promotion of the product through SMS through rediffboll or Chikka messenger will

be the best way for promotion.This type of promotions helps companys to keep

reminding about the products and as a result psychologically they become a brand

loyal customer.


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Conclusion:

This project basically gives us the complete solution for the garments. It shows us the

importance of emerging potential of the high class as well as middle class market.

It will be first time in the history of retail industry. The Desire and Expectation of the customer

will get it through this plan rather than dictating look. The plan will provide people everywhere

with the piece they need to create their own style and judge the master designs. It will let the

customer to feel the master design.

Annuexture 1

QUESTIONAIRE

(1) Name:.

(2) Age. (4) Email Id:

(3)Gender (5) Phone No..

(6) If you have rs.2000 with you, how you will spend that? Show the slap:

Food & Beverage- Electronics Items-

Home Appliance- Cosmetics & Jewellery-

Garments- Weekend Special-


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Cinema- Environment/Location

(7)You want to spend major portion of your money on this because of:

Your passion Influnce of others Need Other

(8) Do you think your portion of spend on the above marked is constant?

Yes It varies with situation Certainly not I do not know

(9) Other than above marked product, you would alsso liked to spend on:

1. 2.

3. 4.

(10) Malls you prefer the most rank in accordingly:

Big Bazaar Bangalore Central Cosms Mall

Star Bazaar Garuda Mall Spar hypermarket

Subhiksha Forum More

Relaince fresh Gopalan Mall Nilgiris

Safal Fresh Lifestyle Shopping Complex

(11)You want to go to a particular mall because of its;

Environment Range of products Price of productsService

Date:..

Place: Signature


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Annexture2

GARMENT

QUESTIONAIRE

(1) Name:. Gender

(2) Age. Profession:..

(3) IncomeMembers in the Family

(4) Email Id:

(5) Phone No..

(6) How often you buy a garment?

M / F


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Weekly Monthly Twice in a month Once in

six months

(7) You buy a garment because of-

Design Quality Price

Special offers

(8) Does the brand name matter for you?

Yes always Not always Extremly not

(9) Which combination you like most?

Design&quality Design&price Status&easy availibility

Quality&Price

(6) Which brand you prefer most? Rank it accordingly

Peter England

Louis Phillip Adidas Identity

Nike

Reebok John Player Levis

Lee

Others:..

(7) Are you passionate about master design? Yes / No

(8) What resist you from possessing that?

Price Easy Availability Awareness About the Source


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Others.

(9) Which Shopping Mall do you prefer for the Garments?

Big Bazaar Bangalore Central Garuda Mall

Forums Lifestyle Shopping complex Cosmos Mall

Vishal Meghmart Shoper Stop West Sides

Others if Any.

(10)Name a tyoe of dress that hardly you can get in Bangalore.....................................................................

(11)The above you get from;Personal contacts Patticular Shop/mall(Please name the shop)

..........................

Teleshoping(Please name the show)...........................................

E-shoping (Please name the site)...............................................

Any Suggestion

..

Date :..

Place:

Signature

(


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)

name of the innovation

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