Tribhuwan Sir

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    RECOMMENDATIONS

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    LIST OF RETAILERS VISITED

    1) Lindsay trading, new market

    2) E. M. Esmail, Grant street

    3) The seller, gariahat

    4) Mangalam, minto park

    5) Poddars

    6) Status, theatre road

    7) Saharsh, Park street

    8) Perfection, Park street

    9) Showman, park street

    10) Reha fashion, M.G. road

    11) Decorum, grant street

    12) Akberally, bentick streer

    13) J. S. mohemadally, bentick street

    14) Hasnain, bentick street

    15) Dress circle, grant street

    16) A G Hatim bhai, grant street

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    17) Siddharth, bentick street

    18) Omco, bentick street

    19) Pariwar, burrabazar

    20) Chitrakoot, burrabazar

    Distribution channel: Since most of the retailers are not satisfied with the distribution

    channel of the organization, the organization needs to ponder over this issue. This issue

    cannot be ignored because poor distribution channel will lead to poor stock in the retail stores

    which will finally lead to reduced sales volume. The reason for this poor distribution

    channel might be the presence of only one whole seller in the city. If we want to cater to

    all and broaden our horizons, increasing the number of whole sellers might resolve this

    issue. A single whole seller has to take care of a lot of issues and he faces many problems

    while supplying to a new client in an area where he already has a client. It will be fruitful if

    we have another whole seller who can cater to those retailers where the existing whole seller

    cannot reach. Appointing additional whole sellers will undoubtedly improve the distribution

    channel across the city.

    SUPPLY AND ORDER DELIVERY: A poor distribution will definitely lead to a

    poor supply chain management. Ifthe issue of distribution channel be resolved, the

    supply of socks will definitely be good because distribution channel and supply go hand in

    hand.

    ADVERTISEMENT INITIATIVES: advertisement initiatives are quite inevitable

    for a good brand recall among the end consumers. In a city where the demand of linen fabric

    is limited only to high end consumers, the advertisement initiatives will have a greater role to

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    play in order to make them aware of the brand. It is high time now that the organization

    starts advertisement campaigns. Bill boards in the market, TV advertisement, magazines and

    newspapers, online medium should be explored. Reaching out the masses through viral

    marketing like Facebook, LinkedIn and other social networking websites can prove to be

    quite fruitful. The organization doesnt have monopoly with the linen fabric anymore. The

    competitors have started to creep in the market and so, the consumers have choices available

    in the same product category. The need of the hour is to adopt proper advertisement

    initiatives. The concerned department can also meet with the retailers and the whole seller to

    discuss about this issue and do the needful. We should provide the retailers with carry bags,

    key rings and some gifts during festive seasons. This will be given to the customers who

    purchase linen fabric. This will surely be a good strategy for improving the visual branding

    for our product.

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    PRICE STRUCTURE:

    After interacting with the city retailers, it was found that all of them feel that the product is

    highly priced and this acts as a repellent for the consumers. The high price structure was not

    a problem when the company used to enjoy a monopoly in the market. But, with the advent

    of competitors, this price structure is driving the consumers towards other brands. It is

    recommended that the organization revise its price structure. A consumer in a city like

    Kolkata will not buy a product if he/she is getting the same product for a lesser amount.

    This is because brand loyalty is not found among most of the city dwellers. What the

    organization needs to do is revise the price structure so as to retain the consumers.

    India is a land of festivals and we should capitalise on this fact. During the festive

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    seasons, the organization can launch a slightly inferior quality fabric line for a reduced

    price. Of course, the quality should not be reduced to a considerable level. For example

    if a brand called anna is there in the market which is priced at 100, we can launch a new

    brand manna for the same product line. This product will be slightly inferior and the price

    will be kept low. This will surely attract the fantasy of consumers in a city like Kolkata. And

    if this strategy is implemented for a product like linen fabric, the consumers will surely want

    to have the luxury of donning a garment made of linen.

    EBOs OF LINEN CLUB FABRIC IN THE CITY: Some of the retailers were

    interested in opening up exclusive business outlets but the company policy is not very

    encouraging for them. Their demands for an EBO are:

    They need a space that should be provided by the organization

    All the initial investment should be lent by the organization.

    This will be like a loan that they will repay to the organization gradually.

    Now, all these demands are not possible to fulfil. What we can do is to negotiate and decide

    on a middle path. Even if we are providing space and initial investment, we wont provide all

    of it. We can share the investment with them and recover that amount gradually.

    If we want to integrate the recommendation section, the following graph will

    say it all:

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    THE NEW

    ENTRANTS

    INTRODUCTION: The new entrant in the linen fabric market that has recently hi Kolkata

    is La fair, by Nirvana silk mills, a Mumbai based company. They recently launched high

    value La-Fair linen shirting fabric during Dealers Conference held at Fariyas Hotel

    Lonavala. The company claims La-Fair to be 100% linen shirting in width of 58 with higher

    lea count. La fair claims to have produced 300 designs so far and promises to launch 100

    designs per month.

    Mr. Kapal Mehta, Director of Nirvan Silk Mills stated that the company has state of the art

    weaving unit at Tarapur with 138 Rapier & Sulzer Projectile looms. It produces 10 lac meters

    of shirting per month. Recently, the company has undertaken an expansion of Rs. 18 crore so

    that its capacity will be increased to 14 lac meters within 6 months time.

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    The company has plans to introduce 100% linen suiting & cotton -linen shirting in the near

    future. In addition, the company has plans to set up yarn dyeing, sizing & processing units at

    the cost of Rs. 50 crore. The company has 4 acres of additional plot in Tarapur, which will

    take care of future expansion.

    Nirvan Silk Mills has Pan India presence. The company, at present, is directly exporting

    fabrics to Saudi Arabia, Dubai, Thailand, Malaysia, Indonesia, Vietnam, Cambodia etc. The

    present export of the company is around Rs. 10 crore, which will enhance to Rs. 20 crore next

    year.

    Comparison with La Fair

    Jaya Shree textiles had no threat from any other organization or competitor earlier. From the

    day of its inception in 1949, the linen fabric had been enjoying a monopoly in the market.

    There were no competitors both in the domestic as well as international market. Exports are

    made even today, but with the advent of La fair both in the domestic and international

    market, a threat has crept up for us. Even in the market of eastern India (primarily Kolkata).

    La fair is not a giant yet, but it is catching up fast. They claim to have 15% of the Linen

    market in India, but the point that is noteworthy is that if that is true, they have been able to

    do it in a very short span of time. With some smart strategies, they have been able to create a

    name for their brand. They have recently hit the Kolkata market too and they are the only

    competitor that we have to worry about.

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    PRICE STRUCTURE: The pricing strategy of La fair is giving it an advantage over us,

    especially in a city like Kolkata, where people hate to cross their budget. As already

    mentioned, Kolkatans will go for a product that is low priced compared to a same product

    that is highly priced. It seems that they are capitalising on this attribute of the city dwellers.

    They have launched their linen fabric at a price lower than our product. Even the retailers in

    the city are aware of this fact and understand this strategy of our competitor. Even they can

    avail their fabric for a lower price as compared to our fabric. As a result, they have enhanced

    profit margins.

    MARKET SHARE: La fair does not stand up to us when it comes to current market share,

    but they are undoubtedly catching up fast. They claim to have a market share of 15% at

    present.

    A comparison of stocks at 5 random retail stores

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