Tribhuwan Sir

8/6/2019 Tribhuwan Sir

1/11

RECOMMENDATIONS


2/11

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


3/11

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


4/11

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.


5/11

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


6/11

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:


7/11


8/11

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.


9/11

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.


10/11

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


11/11

Documents

Tribhuwan Sir