Download Project on Brand Positioning of Vimal Suitings...
A PROJECT ON BRAND POSITIONING OF VIMAL SUITINGS IN AHMEDABAD AND GANDHINAGAR AT RELIANCE INDUSTRIES LIMITED (TEXTILE DIVISION) AHMEDABAD
PREFACE It is my pleasure to present this project this project before you.The you.The study was conducted during the period of my summer training held in the month of june-july2004, which is a part of our curriculum to get a degree of MBA, which I am pursuing at NRIBM,Ahmedabad under the prestigious University of Gujarat. The beginning of any journey is deciding where you want to go. The beginning of the life you want is deciding first as to what precisely you want in life. This is the first fundamental & basic step to take in making a successful of life. Knowledge is power & knowledge is strength & knowledge supplies you the know-how. To derive full benefit out of your knowledge you must act, work hard and put in sustained effort, becoming wishes by experience in the process. The MBA program includes a position devoted to practical study where by each student is placed in a company during the summer’s affects completion of a semesters, the student is supposed to undertake a project with the company which allows an opportunity to select the theoretical knowledge taught to practical application besides giving them a feel of an actual workplace. The Reliance story would provide an effective learning experience to marketing students and marketing practitioners of India on the formulation and implementation of marketing strategies and marketing plans in the Indian environment. It would serve as a good example of an Indian firm attaining outstanding marketing strategy relied on aggression. Its strategies on product, price, distribution and promotion equipped it for the frontal attacks on its competitors. The project is divided mainly into three parts. The first part tells about the textile industry in India. The second part gives the introduction of Reliance industries Ltd. And the third part deals with the project, which includes the basic purpose of the study, research methodology, data analysis findings, suggestions and recommendations and learning from the project. My project report is highly focused on brand positioning of VIMAL-SUITINGS in Ahmedabad &Gandhinagar in which retailer’s play an significant role in marketing strategies because of their relationship with the final consumers. For this reason company needs to manage their connection effectively with these intermediaries in the marketing channel. Particularly in the suiting market, here different parameters were taken to known the brand positioning of VIMAL-SUITINGS.
EXECUTIVE SUMMARY My stay at reliance Industries limited for these two months has been a highly learning experience for me. I see dual advantage that I was able to derive from my training. Since it was not only a “Project focussed training” where a trainee is assigned a particular task and his work gets limited only to requirements of the assigned project per se. This report covers a brief understanding of Reliance Industries limited; it’s textile division at Naroda, Ahmedabad The project assigned to me was an exploratory study of the Ahmedabad &Ghandinagar for Vimal Suitings of Reliance Industries Limited. To fulfil the task an initial study of this market was made in terms of the nature of the local textile market and its requirement. Secondary data for this purpose was collected from the areas of the above said cities. This included well structured survey of retailer’s of different areas with properly structured questionnaire with a view to know following: 1. 2. 3. 4. 5. 6.
Brand position of Vimal Suitings Increase market share of Vimal Suitings To find out the retailer’s perception in these cities. Who is the market leader? To find out the features that customers looks while buying To find out the sources of information that customers receive.
The survey was conducted in the following areas of both cities: Gandhinagar: Sector-11, 12, 13, 14, 15, 16, 17, 18,19,21, 22, and 23. Ahmedabad: Dhalgarwad, Ratanpole, Relief Road, Maninagar, Jivrajpark, Vasana, Narayannagar, Vastrapur, Gatlodia and paladi. In the survey it was found: 1 2. 3 4
5.
GRASIM, SIYARAM & DONEAR ARE THE LEADING BRANDS IN BOTH
CITEIS SERVICE OF AGENTS/DISTRIBUTORS TO RETAILOR IS NOT UP TO MARK. FAST MOVING COLOURS ARE BLUE, BLACK& BROWN. LESS ADVERTISING OF VIMAL AS COMPARED TO OTHERCOMPETITORS RESULTS IN LESSER DEMAND OF VIMAL SUITING. SEEING THE TODAY’S SCENARIO IT IS VERY IMPORTANT THAT WE GRASP THE INTEREST OF OUR CONSUMERS. BUT FROM THE VIMAL’S SUITINGS POINT OF VIEW, THE CONSUMERS ARE NOT ABLE TO
6.
7. 8. 9. 10. 11.
UNDERSTAND THE ADVERTISEMENT DISPLAYED & THUS AS PER THE RETAILERS IT WAS VERY HIGHLY COMPETITIVE ENVIRONMENT. LACK OF COMMUNICATION BETWEEN RETAILERS AND COMPANY RESULTSIN DISSATISFACTION OF RETAILERS AND GRIEVANCES OF RETAILERS ARE NOT CLEAR ABOUT THE COMPANY POLICY BECAUSE OF COMMUNICATION. VIMAL SUITINGS ARE NOT AVAILABLE AT MANY GENERAL REATILERS IN THE MARKET. BRAND AWARENESS ABOUT REANCE AND V2 IS VERY LESS IN THE MARKET. MOST FAVOURABLE SEGMENT OF CUSOMER ARE BUSINESS AND SERVICE CLASS. FAST MOVING BLENDS ARE P/V AND P/C. PRICE PERCEPTION OF VIMAL SUITING IS AVERAGE.
TEXTILE INDUSTRY IN INDIA India has a very large labour intensive textile industry. It is one of the single largest organized industries. The industry presents an interesting picture of the coexistence of four sectors – khadi, handlooms, power looms and organized mills. Till the fifties, a large portion of the cloth produced in the country was consumed in gray form. But over the years, the share of gray goods has been reduced considerably and the consumption has been shifting consistently towards blended, dyed and printed goods. The synthetic fiber entered in the Indian scene in early sixties and in 1976, the percentage of manmade fiber in total textile fiber was approximately 10%. In the world, however, the manmade fiber enjoys a share of over 50%. The consumption of polyester fiber in the country increased nearly 50% in the year 1976-77, over the previous year, mainly on account of increased availability. Again in year 1978-7, the consumption increased by about 33%, over the previous year. So in three years period between 1975-76 and 1978-79, the consumption increase by 100% Thus showing an average increase 33% per annum. Although manmade fiber in India commenced in 1965, it started growing at faster pace since then. For this the industry has won the international acclaim. Before 1980 there were very few player on the seen with very low production capacity. For speculator was witnessed especially due to the entry of bigger capacity plants of Reliance industry, into rama synthetic etc. The percentage of usage of the manmade fiber that was just 53% of the total synthetic fibers in 1980 has risen to 81% now. Today there are 38 fiber producers engaged in manmade fiber manufacturing. The total installed capacity in India is 306 million kgs. Per annum for stable fiber and 855 million kgs per annum for filament yarn. More new entrance are pursuing manmade fiber industry and expansion by most of the existing players is also on cards. Of the 38 fiber producers about 59% of the total production capacity is contributed by the top 10. Reliance alone accounts for 25% of the total installed capacity. Since many years our country has paid greater attention to the development of the internationally approved standards for manmade fiber production facilities and it has made continues effect to improve production technology. The country has gained precious know how and experience in synthetic fiber manufacturing technology, project equipped and at the same time it has been successful in digesting, absorbing, remaking and improving technology and facilities in order to improve the quality of product.
TEXTILE RESEARCH IN THE NEW MILLENNIUM Textile has evolved into a high-tech industry, keeping pace with scientific fields including physics, chemistry, engineering and materials science. Consumers continue to demand low cost and still want high quality textile products they came to know over the years. In orders to competitive, it is necessary that textile academia, industry professionals and research organizations engage in multidisciplinary research activities involving my scientific disciplines. Twentieth century producers are interested in developing fibers that have the best of both synthetic and natural fibers properties. The property that is of most concern to synthetic fiber producers the ‘feel’ or ‘hand’ of natural fibers. Developing new polymer and fibers based on biotechnological methods is a viable and promising method of production in the present days.
“Reliance Industries Limited, India’s largest privates sector enterprise, Is a major player in the Indian Petrochemical sector. Reliance’s operations capture value addition At every stage form producing crude oil and gas To Polyester and polymer products And are vertically integrated To the production of textiles. Reliance has one of the largest Marketing networks in the Indian industry. All its brands are market leaders.”
MANAGEMENT PROFILE Board of Directors Mukesh D. Ambani Chairman & Managing Director
Anil D. Ambani Vice-chairman & Managing Director
Nikhil R. Meswani Executive Director
Hital R. Meswani Executive Director
H.S.Kohli Executive Director
U. Mahesh Rao Nominee Director – GIC
Ramniklal H. Ambani Mansingh L. Bhakta T. Ramesh U. Pai Yogendra P. Trivedi Dr. D.V. Kapur M.P.Modi S. Venkitramanan
Secretaries Vinod m. Ambani Rohit C. Shah Surendra Pipara
Solicitors & Advocates Kanga & co.
Auditors Chaturvedi & Shah Rajendra & Co.
International Accountants Deloitte Haskins & Sells Member – Delliotte, Touche and Tohmatu International (DTTI)
Registered office 3rd Floor, Maker ChambersIV, 222,Nariman Point, Mumbai 400 021, India. Tel.Nos. +91-22-22847000 Fax +91-22-22042268 E-mail:
[email protected] Internet: http://www.ril. Com
Manufacturing facilities Hazira Complex Village Mora, BhathaP.O. Surat-Hazira Road Surat 394510, Gujarat State, India.
Jamnagar Complex Village Meghpar /panda, Taluka Lalpur Dist.Jamnagar 361280 Gujarat State,India
Naroda Complex 103/106, Naroda Industrial Estate Naroda, Ahmedabad 382320 Gujarat State, India.
Patalganga Complex B-4, Industrial area, Patalganga Off Bombay-Pune Road Near Panvel, Dist Raigad 410207
Maharashtra State, India.
Reliance’s Achievements There is truth in the idea of an eternal guiding light. There is an idea in the truth of purpose. Dhirubhai H. Ambani embodies the first, and his vision empowers the second. Last year we mourned the tragic and untimely passage of Reliance’s founder chairman, and the world mourned with us. We at Reliance vowed to continue on the path that Dhirubhai’s unparalleled vision had charted for us. The path is one of self-belief and destiny. It is a path of constant challenge It is a path where change brings with it a thirst for knowledge, the fulfillment of achievement and a sense of history. Many years ago, Dhirubhai had looked into the future and seen a time when natural treasures from beneath the land oceans would enrich India, and give his beloved nation a greater sense of pride security. He looked ahead, and he saw a time when every Indian would be adequately clothed, fed and learned and communicate with the world at will, at virtually the speed of light. He saw an Indian century. We at Reliance had in this past year the rare honour to fill the wishes of our founder. As a company, we had the great year privilege of the care of our well-wishers, and success in grand endeavours that Dhirubhai envisioned. It was a year when Reliance redefined business.
The Year 2002-03 •
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The merger of Reliance Petroleum with Reliance Industries was the largest merger in India’s corporate history. Reliance acquired management control of IPCL, marking India’s largest disinvestments transaction. The discovery of gas by Reliance in the Krishna-Godavri basin was the world’s largest gas find in 2002. Reliance Infocomm launched the largest infocomm infrastructure and services initiative by a new entrant anywhere in the world. Reliance acquired management control of BSES in the largest acquisitions in the Indian power sector.
CURRENT SCENARIO OF TEXTILE BUSINESS IN INDIA The traditional comparative advantage of the Indian textile Sector and recent boom in the garment export has been constrained by the extensive protection of the domestic textile and clothing by the industrialized nations through the MFA. The Agreement on Textile and Clothing (ATC) as a part of the GATT, is a very significant component. ATC is going to substantially change the character and pattern of international trade in apparel and textile, which has been governed by the MFA since 1974. This is more so as ATC envisages progressive lifting of quotas by developed countries under a 10-year, phase out program beginning 1995, with ultimate dismantling of the quota system. The agreement covers the following: silk, wool, fine/coarse animal hair yarn and fabrics, cotton, other vegetable textile fibres, wedding (felt and non woven, yarn, twine, cordage), carpets and other textile floor coverings, special woven fabrics tufted textile fabrics, lace, tapestries, impregnated coated, cover/laminated textile fabrics, knitted and crocheted fabrics, articles of apparel and clothing accessories, other than man-made textile articles, set and worn clothing. The favorable point for Indian is the inclusion of additional items under the quota system, which means a secure market for another 10 years. The phasing out of the quota system over period of 10 years, with the bulk quotas being eliminated towards the end of the period will provide the country adequate time to gear up for competition. An early phase out of the regime would have meant immediate competition with some of the international giants like China, Hongkong and Taiwan.Moreover bilateral negotiations pertaining to quota allocations will also get eliminated and the entire textile trade would come under the free trade regime, governed by the rules applicable to trade in other commodities. Hence, price, quality and adherence to delivery schedule will have to be watchwords for India.
GLOBAL IMPACT ON INDIAN TEXTILE INDUSTRY According to a ministry of Commerce estimate, India’s export gains, on the basis of tis current share, will be between $ 1.5 and $ 2 billion annually. Unless the industry becomes competitive within the next 10 years, this share may actually go down account for almost one half of the increase of the global output through 2004. East and South Asia’s share of global output been increasing steadily and it is projected to be the fastest growing region in the world for the rest of the decade. In India, cotton yarn and cotton based products now account for 65-70% of total textile exports and man made fibres constitute the rest. The consumption trend in the rest of the world is almost the opposite. The giants of international textile trade such as HongKong, Taiwan and South Korea (which is now moving over to other sectors) as well as India’sfuture competitors like Indonesia, Thailand and Jamaica have also kept this world wide trend in mind while planing their share of textile exports. The Indian textile industry should not afford to be comlacement as it is faced with stiff competition from China and other countries. For instance, the present export of Indian textiles under the quota regime was less than 400 million square meters, while the figure for China was 1600 million square meters. Under the GATT agreement, the mix of quota and non-quota items has also undergone a change. For instance some luggage items, footwear, hats, umbrellas, parachute etc. Which were non-quota items under the MFA have now been transferred to the quota section, thereby providing an assured exportmarket for the next decade. At the same time, some of the existing quota items will go over to the non-quota section, but in the total, the quota section for Indian section for India increases substantial y from, the existing pool. The base for the textile industry world over is shifting to the East and South Asia. This also made the leading machinery manufacturers to shift to the huge demand provides an ideal present by leading Indian manufactures are the same as being currently manufactured by nature is not necessary to the labour oriented Indian machines lack robotisation, as automation of this natures not necessary to the labour oriented Indian environment. Previously the technical know-how was obtained through collaborations. But now with the collaborators parted as freely as before. So, the number of foreign companies or companies with majority stake in the Indian Companies would increase in the future. The beneficial effect of this would be the availability of the latest technology to the Indian industry. Consequently the textile industry can look forward to have advanced machinery in the future at lower costs.
MILSTONES TEXTILE DIVISION RELIANCE:-
Where growth is a way of life 1958 Floats Reliance Commercial Corporation dealing in Exports of ginger, turmeric and other spices to West-Asia. Also started as a small trading company in Nylon and Rayon. 1966 setting up of Naroda Unit 1968 modest warp knitting installation 1970 modest yarn texturing installation 1971 printing and processing installation 1972 modest weaving installation 1976 major expansion in all the above areas 1979 major thrust in VIMAL’S brand building Building up of retail network 1980 worsted spinning, weaving and processing installation 1982 Polyester start up 1984 waterjet looms installation 1985 computerization of manufacturing and commercial activities 1986 home textiles manufacturing installation 1994 expansion of worsted spinning 1995 Dornier weaving installation for suiting and home textiles. Polyester /viscose spinning installation. 1996 captive power plant. Petro chemical First ever Indian company to be rated by S&P and MOODY’S 1997 World’s largest multi feed cracker commissioned in HAZIRA. 1999 Acquired ISO 9001 and isISO14001 certificate. 1998 First Asian Company to issue bonds in USA1998 First Asian Company to issue bonds in USA 99-00 Acquired ISO 9001 and isISO14001 certificate’s 25000 Cr Jamnagar Petroleum Complex and bulk of refining complex commissioned Announces plans for Reliance Infocomm. 2001 Emerge as the largest Indian company in terms of sales Reliance Industries and Reliance petroleum becomes India’s two largest companies in terms of all major financial parameters. 99-00 Acquired ISO 9001 and isISO14001 certificate’s 25000 Cr Jamnagar Petroleum Complex and bulk of refining complex commissioned Announces plans for Reliance Infocomm. 2001 Emerge as the largest Indian company in terms of sales Reliance Industries and Reliance petroleum becomes India’s two largest companies in terms of all major financial parameters. revenues cross 60000 cr Becomes largest group in India.
2002 Reliance petroleum Ltd (RPL) merges with Reliance Industries also acquires Indian Petrochemicals corporation Ltd (IPCL), a leading public sector company, pioneer in the petrochemicals business in India. The merger of RPL and acquisition of IPCL have strengthened Reliance’s position as the largest business group in India, on all major financial parameters, including sales, profits, net worth and assets.
INDIAN TEXTILES INDUSTRIES – A Snap Shot
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Largest Gross and Net foreign exchange earner
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31% of the total Export earnings with practically no import content (cotton yarn contributing 13%)
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21 % of the industrial production
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7% of GDP
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Direct employment to nearly 3 crore (30 million) of people.
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10% of excise revenue
Profile of Indian Textile Industries Organized sector
Installed capacity
No. Of Mills
1791
Ring spinning
34mnspindles
Looms
1,24,033 (mill sector)
SSI Sector No. Of Mills
861
Ring spinning
1.65 mn spdls
OE spinning
37,702 rotors
Sector wise Share of Cloth Production Mill
5%
Handloom
19%
Powerloom
58%
Knitted
18%
DIVISIONS AT THE NARODA UNIT Synthetic Sales Division: Product Range suitings
:
Only polyester, poly-viscose, Plain Suitings, Design
Distribution
:
Through wholesalers who sell it to retailers
Main Competitors
:
Gwalior, S.kumar, Mayur, and Siyaram
Promotion Schemes : Consumer promotional schemes like lucky draw etc. Introduced during the festive seasons. Ad agency
:
MUDRA
Largest selling Product Category
:
poly-viscose Suitings
Furnishing Fabrics Division: Product range
:
Upholstery, curtains, nets, Flood jacquard, englishvelour, French Velour, Royal Velour, and Automotive Velour Rs.200 to 700 per miter
Price Range
:
Distribution
:
Main competitor
:
The distribution network is spread all over India through Boutique Harmony. Sumkin, Orkay
Promotion Schemes
:
Participate & organize exhibitions
Ad agency
:
MUDRA
Largest selling Product category
:
upholstery
Harmony is a comparatively new division started in 1986 when it started it it mainly Concentrated on exports to the Russian Countries and not concentrating much on the Domestic market.
Worsted division: Product Range
:
Woolen and wool blended suitings 100% wool, 70:30 P/W, 55:45 P/W, 15:85 W/P, which are blended with poly and Viscose. Wool is also blended with silk and linen.
Distribution
:
Through wholesalers and retailers.
Main competitors
:
Raymond, OCM, Digjam, and Dinesh
Promotion Schemes
:
Lucky draws through coupons.
Ad agency
:
MUDRA
Largest Selling Product category
;
70;30 blend
Area of maxi sales
:
North India
The division is presently also exporting to Western Europe with the Quantum of exports being 10-15% of the division turnover.
Shirting division: Product range
:
Text by text , text-by-spun, spun-by-spun, and Text –spun By text –spun
Price Range
:
Rs. 45 to 80 per miter (wholesaler price)
Distribution
:
company sales directly to wholesalers.
Main competitors
:
Oxford and unorganized sector
Ad agency
:
MUDRA
Largest selling Product category
:
Text-by-text
Area wise sales
:
35% North, 30% East, 20% West, 15%South
Saree Division; Product range
:
chiffon, georgets and silk
Price range
:
Rs. 33 to 75 per miter (wholesaler price)
Distribution
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All over India through wholesalers who in turn sell to Retailers.
Main competitor
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Garden silk Mills and unorganized sector
Promotion scheme
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Promotion during festive seasons through video films
Ad agency
:
MUDRA
Largest selling Product category
:
different for different territories
Area wise sales
:
35% East, 30% West, 15% North, 20% South
V2
:
V2 is prepacked cut piece of suitings.It was started in year 2002.Its punch line is “prepack, to take away”. It covers all kind of suitings like polyrich, rueral ,worsted & shirtings. It has sub brand name like speed, power, kevenlink, personalpower.
HOME TEXTILES “Harmony” Reliance’s home textiles offer the widest choice in furnishing fabric
under a single brand name. Reflecting the ethnic and international trends. He range offers flat jacquards, New generation veloures, transfer printed drapes and laced net curtains. Truly fine furnishing for modern day living and working spaces. It is no wonder that harmony has come to be accepted as the only complete range of furnishing fabric in India. Harmony is Hallmark of VIMAL for Harmony VIMAL’s premium range of furnishings, 7 million meters of net velours, Jacquards, plush velours and flat drapes are manufactured annually. Harmony interior fashion textile from the house of Reliance Industries carry the seal of high quality fashion i.e. hallmark of VIMAL Harmony Reliance’s Home textile offers the widest choice in furnishing fabric under a single brand name. Harmony is Trendsetter of furnishing fabrics, day curtains, and automotive upholstery in India. It is the largest manufacturing unit of upholstery and curtain cloth in India, which uses the most modern machines. Harmony has achieved its comprehensive collection of flat jacquards, new generation of velour, Royal velour, transfer prints and
Dyed co-ordinate polyester curtains laced nets curtain only Harmony fabrics. All latest design and patterns. Such outlets are called “Boutique Harmony”. We can say that a”Boutique Harmony “ is the best showroom. To cater to the growing demand of home textile. The company has increased its manufacturing capacity by over 3 million sq. meters per annum. This has been achieving by installing 10 highly sophisticated weaving machines & upgrading the existing jacquard machine for intricate designing, these machines are supported by the most advanced CAD (computer aided design) technology. Truly fine furnishing for modern day living and working spaces. It is no wonder that Harmony has come to be accepted as the largest and the only complete range of furnishing fabric in India. Capacity Product: 7.5million meters per annum. Flat jacquard Upholstery Jacquard pile Upholstery Jacquard pay curtains Knitted pile Bi-Axial fabrics with weft insertion printed drapes and laced net curtains. Composition; polyester –filament and texture, nylon blended –polyester wool, poly/viscose, . Width (cms)
122 –183
Major market – Domestic exports being developed. Processing capacity 9.6 million meters per annum.
RESEARCH & DEVELOPMENT
The Textile Division has a well-equipped R&D center recognized by Department of Science & Industrial Research, Ministry of Science & Technology, Government of India. The R&D infrastructure comprises a large number of imported and indigenous equipment, handled by a highly qualified team of over 40 professionals. These professionals keep themselves updated by keeping close contact with research institutes like ATIRA, SASMIRA, BTRA, WRA etc., besides attending technical seminars in India and abroad. The expenditure incurred on R&D activities is well above the industry standards.
The center devotes itself mostly in experimental research & development for developing new products, product improvement, product modification, process standardization and improvement. Center is having state-of-the-art equipment to facilitate all its activities.
DESIGN & DEVELOPMENT
Suiting & Furnishing Design
In our design & product development center over 40 new products are developed every day for various ranges, namely Synthetic Suiting, Worsted Suiting, Furnishing and Shirting for domestic and export markets. Yarn types of nearly 4000 shades, in various counts and blends, are used to provide a wide range of colour spectrum and variety to the consumer / customer.
Trend setting, new structures, new fiber blends, new finishes and new colour combinations are regularly developed.
MARKETING STRATEGIES OF RELIANCE INDUSTRIES LTD. In the textile industries of India, Reliance textile now Reliance industries achieved phenomenal success in the seventies. Today, reliance industries are a multi-business giant with interest ranging from textile to petrochemicals and oil refining. With turnover exceeding 14000 crore per annum, the company is now no.1 in the private sector. The company that started its textiles business with a small factory with four warp knitting machines, a small dyeing section and just seventy people on its rolls grew in less than twenty years, into India’s topmost textile complex. The growth is especially striking because its has been achieved and well-entrenched composition. And Reliance was a late entrant in the field. Despite the late entry, Reliance made new fortunes in the old business leaving traditional leaders way behind. MARKETING MIX
Marketing mix is an optimum combination of al marketing ingredients, which facilitate realization of company’s goal such as profit,. Customer satisfaction, return on investment and company’s mage and goodwill. Marketing mix is the set of marketing tools that the firm uses to pursue its marketing objectives in the target market - According to Phillip Kotler. PRODUCT Brand Style Colour Design Brand name
PRICE Pricing Strategy Pricing policy List price Term of credit Discount
PROMOTION Personnel selling Advertising Publicity Sales Promotion a) Dealers Aids
Package services
Allowances
B0 Consumer
PLACE Dist.Channel a)Wholesalers b)Retailers c)Agent Physical Distribution a) Transport b) Warehousing c) inventory
While its corporate strategy formed the foundation for its growth, it was the marketing strategy of the company that actually, translated the company’s vision into reality; the company carried out its market targeting in the ideal manner; and it evolved an effective strategy in each of four P’s of marketing, i.e. Product, price, Place (Distribution), and Promotion.
Product Strategy:
The main elements of VIMAL’s Product Strategy are described below; Premium Product Based on Modern Technology Through it’s collaboration with Du Pont of USA, Reliance was in a position to introduce into India, the world’s best s ynthetic fiber technology. Comprehensive Product Range Reliance decided to enter right away all the four major segments of textile business- Sarees, Suitings, Shirtings, hometextile and V2 Contemporary Designs Thirdly, Reliance offered to the textile consumers in India, the most contemporary fabrics. Wide Variety and Choice Reliance also provides the maximum possible variety in every product line. It applied this philosophy to every segment - Sarees, Suitings, Shirtings, homtextile, and V2. Reliance employed more than 200 designers at a time and literally flooded the showrooms with the widest possible range of stunningly beautiful fabrics. In sutings alone, the company was putting more those 10,000 different designs in the market every year. In Sarees, the company was pushing out 4000 new designs every month, each design in at least five shades, making 2000 different products every month. Emphasis on Quality Emphasis in quality was the fourth major component of the product strategy of Reliance. The company adopted a three steps approach in the matter of product quality: 1) It voted for premium quality as a deliberate option 2) It actually delivered premium quality 3) It communicated to customers that premium quality was being delivered The Distribution Strategy
Reliance struck a totally new path in distribution. When it entered the Indian textile market, the business had certain established practices in the matter of distribution. Reliance broke away from the established practices and went in favor of an independent channel of its own. Intelligent Exploitation of the Showroom Idea Intelligent exploitation of “the showroom” or “exclusive retail outlet” Idea was the comer stone of Reliance’s distribution strategy. The 1800 strong VIMAL showroom network became the largest retail network of it kind in the country. By organizing network of “jumbo showrooms” in big cities under the banner of “VIMAL
prestigious showroom. Reliance stole another big marches overall the other textiles firms whom had used the showroom concept in a limited way. The Strategic Compulsion and Practical Considerations Underlying Reliance’s Showroom idea. Reliance Found the Existing assumptions and Practices of the Textile trade Unacceptable Reliance Broke Away form the Existing Practice and established Exclusive Showrooms The Prestigious/Jumbo Showrooms
These showrooms in effect proved to be the show windows of VIMAL. They were big in size 7000-8000 sq. feet in area and had the most modern shopping facilities with counters and displays areas to stocks and display a large number of items in one roof. These prestigious showrooms popularly referred to as jumbo showrooms served the purpose of displaying the huge collection of VIMAL fabrics.
COUNTRY
INDIA
PRS
ERS
ARS
FPRS
TOTAL
51
225
912
13
1201
Pricing Strategy
The pricing strategy of reliance was a blend of the two concepts: what the traffic can bear and value for money. In effect, it meant premium pricing. Reliance was giving a premium product, was employing premium distribution facilities and was carrying out premium promotional programs. The company had consciously opted for non-price competition. The huge investment the company had made on its modern production processes also pointed towards a premium pricing approach. Reliance avoided a defensive strategy in pricing. It knew that defensive pricing results in diminished profits and only aggressive and shrewd pricing enables firm to retain profits. Reliance adopted pro-active pricing and good return. Reliance knew that in a product like fashion textiles and among the target market it had chosen, a higher price did not matter much. It knew that buyers would not mind the higher price if they were actually given a better product; it knew that price was but perceived value-what the buyer perceived as value. And it ensured that its buyers perceived the prices of VIMAL fabrics as good value for the money they were parting with. The company manages to secure acceptance for its premium price approach by providing them superior quality and the widest possible choice.
Promotion Strategy
It would not have been possible for Reliance to achieve its singular success by its superior product alone or even by its product plus distribution strength. It was Reliance’s mastery of the minds of men and women that enabled it to rise as the market leader in textiles. In fact, VIMAL’s “conquest of fashion” serves as a telling example of what creative promotion can achieve in the Indian context. Reliance believed in high power promotion and implemented its promotional strategy with a high degree of professional skill. It built brand loyalty through a sustain promotion campaign using a good mix of different media. Supported by a clear policy perspective and a high budget or promotion of Rs. 5 crore per annum, Reliance carried out an innovative and result oriented promotional campaign. The meticulously planed and carefully executed promotion campaign enables Reliance to meet the basic promotional objective of establishing VIMAL as a synonym for fashion in the textile field. Different promotional approaches for different product groups and different target Audience.
VIMAL employed different promotional approaches for the different product lines such as suitings, shirtings, sarees, furnishing and V2. Similarly, it also applied different promotional approaches for the different regional markets of India. VIMAL had correctly assessed that in textile preferences; India could not be treated as a single unified market. There are distinct regional preferences in respect of dress combination
MARKETING NETWORK
The total Indian has been divided into Zones as North (Delhi, Punjab, Haryana, U.P, J&K, H.P), West (Gujarat, Maharashtra, Rajasthan), South (A.P, Karnataka, Tamilnadu, Kerala, Goa), East (Assam, Orissa Bengal, M.P and several hill state) . More or less each state has a separate commission agent whom is responsible for territory market development and financial guarantee on commission basis. Under one agent there are various wholesale distributors as well as only Vimal Flagship Showroom who buys goods directly from company on Ex mill basis, later resale it to the various wholesaler an recommended price list in case or wholesaler however the flagship showrooms directly sell to consumers on recommended price list. Company organize sales booking conference twice in a year for wholesale and flagship showroom to book the order for next six months i.e. summer conference ion the month of January and winter conference in the month of July where they are offered with about 700 new design to be available in the next six months. Regularly (day to basis) goods are ordered against the production. RETAILING STRUCTURE
PRESTIGIOUS RETAIL SHOWROOM (PRS) They are mega shops with a built up area of nearly 2500 to 3000 sq. ft PRS are franchise shops and the purpose of PRS is to provide the entire range of company products under one roof. It has given shopping a new meaning with its exclusively. EXCLUSIVE RETAIL SHOWROOM (ERS) They are comparatively smaller showroom with a built up area of nearly 600 to 1000 sq. ft. They stock only VIMAL products. AUTHORISED RETAIL SHOP (ARS) They are company authorized showroom and they mostly stock VIMAL products only. But some showroom may stock products of some other companies too.
DISTRIBUTION CHANNEL
COMPANY
C&F RETAILER
AGENT PRS
WHOLESALER RETAILER
END USERS
END USERS
(II TIER)
(I TIER)
END USERS
(III TIER)
IT can be seen from chart that company has I tier, II tier and III tier distributions channel.
THE “ONLY VIMAL” IDEA Reliance has also effectively exploited the ‘only’ concept in its promotional strategy. Through well planned and innovative ad campaigns as well as sales promotional campaigns, the slogan ‘ONLY VIMAL’ was made a household phrase among the target audiences for fashion textiles. Reliance achieved uniqueness in many respects. • • •
•
Only Reliance was producing at that time, crimped polyester yarn in the country. Only reliance had advanced R&D facilities. Only reliance was in a position to offer 10,000 designs and colour combinations in a year for an item like suitings. Only Reliance was being rated by organizations like the World Bank as on par with textile firms in most developed countries.
Putting all the above ‘ONLYs’ together, the company evolved the ‘ONLY VIMAL’ idea. It was a short, crisp slogan and it epitomized what Reliance stood for a leader in its field with no competitor close by ‘ONLY VIMAL’ did not remain merely an attractive ‘Corporate Line’. It became an extortion to the consumers to go in for ‘ONLY VIMAL’ fabrics. The consumers found that the ONLY VIMAL claimed had merit and content. They were seeing the apparent quality in VIMAL fabrics. The wide range of designs and colours, which they were seeing for the first time, also thrilled them. And these factors gave VIMAL a very strong credibility in the market. To add to this, Reliance kept communicating effectively, all its achievements to the customers and the public at large, intelligently reinforcing the ‘ONLY VIMAL’ idea. The idea, in fact served as the most important positioning factor for VIMAL.
FIBER TO FABRICS
Textile has such an important bearing on our daily lives that everyone needs to know something about it. From earliest times, people have used textile of various types for covering, warmth, personal adornment, and even to display personal wealth. Consumers of textile are homemakers, dressmakers, interior decorators, automobile industry, and retail store customer.
Study of textiles will show, why certain fabrics are more durable and serviceable for specific purposes. It explains why certain fabrics make cool wearing apparel as well as give an impression of coolness.
The textile industry is very complex. It begins with agriculture/animal fibers. These fibers are processed into yarns and/or fabrics. The yarns are made into fabrics for industrial or consumer uses by various means, such as weaving and knitting. The fabrics are converted into finished cloths, which provide particular appearance and performances. These fabrics are made into end-use products; include apparel, home furnishings, and various industrial applications. Types of Fibers –
Natural Fibers: Vegetable
Cotton Jute Coir
Cotton boll (Cellulose) Jute stalk (Cellulose) Coconut husk (Cellulose)
Animal
Wool Silk
Sheep (Protein) Silkworms (Protein)
Rayon Acetate
Cotton linters or Wood Cotton linters or Wood
Nylon Polyester
Aliphatic polyamide Dihydric alcohol
Manmade Fibers: Cellulosic
Noncellulosic Polymers
Yarn Formation (Fibers to Yarns) Wool
Polyester
Mixing
TOW to TOP converter
Scoured wool from Australia is hand The sheet of continuous filaments are cut opened antistat sprayed and conditioned into desired size suitable for blending with viscose and converted to sliver
Carding Individualization of fiber and removal of Gilling vegetable matter shoddy short fibers to Homogenize and parallel the fiber to increase cohesiveness form sliver Gilling
Homogenize and parallise the fiber to increase cohesiveness Combing
Dyeing
To remove noils and neps
Dyeing is carried out with disperse colours of high sublimation fastness and reduction cleared
Bailing
Back Wash
Sliver Converted to TOPS
Removal of superfluous dye and chemicals from surface fiber
Dyeing
Dyeing is carried on with metal complex Drying and chrome dies The fibers are then dried Drying
The fibers are then dried with radio frequency
Defelting During drying, fibers have a tendency to get entangled hence this opening process
Re-combing and Blending To blend the short fiber entanglement created during dyeing are removed
Drawing and rubbing Parallel of fiber and mass reduction b y drafting to give roving
Ring Frame Mass reduction and twisting gives yarn
Assembly winding Two yarns are placed parallel without twisting
TFO Assembled yarns are twisted to give ply yarn
Auto Corner To stabilize the twist imparted in the previous
Spinning
Spinning is the process of converting wool and polyester fibers into yarns. The wool/polyester fiber arrives at mill in large bales. Reliance imports the wool fiber from Australia and polyester is domestically produce at patalganga, India. Then, these bales are blended, opened and cleaned, as it is necessary to obtain the uniformity of fiber and to loosen hard lumps of fiber and disentangle them.
Carding is process of removing remaining impurities and straightened the fiber. The straightening process puts fiber into parallel lengthwise alignment, so to produce fine yarns. In this process, the fibers arrange them in relatively parallel manner in form of thin web. This web in molded into a round mold like mass called card sliver.
When the fiber is intended for fine yarns, the sliver is put through an additional straightening called combing. In this operation, the noils (short fibers) and neps are combed out and completely separated from longer fibers. The combing process forms a comb sliver made of the longest fibers, which, in turn, produces a smoother and more even yarn.
Drawing, process eliminates irregularities that would causes variation in slivers by combing. After several stages of drawing, the condensed sliver is taken to the slubber. Here, the slubbing is passed to the spindles, where it is given its first twist and is then wound on bobbins. These bobbins are placed in roving frame, where further drawing out and twisting take place. Roving is final product of several drawing out operation.
The roving, on bobbins, is placed in spinning frame, where it passes through several sets of rollers running at successively higher rates of speed and is finally drawn out to yarn of size desired. Spinning machines are of two kind ring frame and mule frame. The ring frame is faster process, where mass reduction and twisting gives yarn. For fine yarn, mule frame is required because of its slow, intermittent operation.
Fabric Formation (Yarns to Fabrics)
Warping From yarn packages section of warp sheets are laid side by side till the full width required for is completed and then it is rolled on to a weaver’s beam
Drawing-In Process of guiding the yarns through the reeds & healds as per the pattern in the fabric.
Weaving Two sets of yarns namely the warp & weft are interlaced to form the fabric on Shutleless looms i.e. Projectile & Rapier
Grey Inspection To observe faults in fabric and give feedback to departments
Mending To mend certain faults – like removing knots replacing slubs, picking, neps etc.
Weaving
Weaving is process in which yarns namely warp and weft are interlaced to form fabric. In weaving following operations are fundamental
•
Shedding - raising specific warp yarns by means of the harness or heddle frame
•
Picking – inserting filling yarns through the shed
•
Beating Up (Battening) – pushing filling yarns firmly in place by means of the reed
•
Taking up and letting off – winding the finished fabric on the cloth beam and releasing more of the warp from the warp beam.
For weaving, Reliance has 196 weaving looms of which 48 are donier (Rapier) and 148 sulzer (Projectile) looms. Processing
Processing is a process through which it softens the fabric. When, fabric comes from weaving it is washed to remove the oils, lubricants and other process-aids. In finishing wool fabrics, a stretching process called crabbing passes the cloth over rollers into hot water or steam. The fabric is then put into cold water, after which it is pressed. In this process, fabric is stretched and loosened. Crabbing prevents creasing and uneven shrinkage of fabric.
Pile-weave fabrics and fabrics that have been napped are usually sheared to give an attractive smooth surface to the cloth. Shearing levels all surface irregularities caused by the plucking action in the napping process. After shearing, the fabric is brushed in order to remove the sheared ends of yarns. It is then washed and pressed to give the finishing of the fabric.
Packaging:
In this division goods are differentiating short no. wise and shades wise. Then it is put in rack. According to order they dispatch goods.
RESEARCH METHODOLOGY RESEARCH PROBLEM: ♦
♦ ♦
What are the factors that effect customers the most in buying suiting and what is behind choosing brands for suiting? What are the brand leading companies in current suiting market? What are expectations of retailers from VIMAL-SUITING and what should VIMALSUITING do to increase customer satisfaction as well as retailers satisfaction?
RESEARCH INSTRUMENT:
QUESTIONNAIRE CUM SCHEDULES: A structured questionnaire was prepared which consisted a set of questions relating to suiting market scenario, and different question on how to increase sales like …buying pattern of customers, most brands preference etc. Structured questions were asked to the retailers of different areas of Ahmedabad &Gandhinagar cites. SAMPLING PLAN:
SAMPLE UNIT : General retailers of suiting AREAS COVERED UNDER SAMPLING
Major areas of Ahmedabad and Gandhinagar like… Gandhinagar: Sector-11, 12, 13, 14, 15, 16, 17, 18,19,21, 22, and 23. Ahmedabad: Dhalgarwad, Ratanpole, Relief Road, Maninagar, Jivrajpark, Vasana, Narayannagar, Vastrapur, Gatlodia and paladi. SAMPLE SIZE: 70 RETAILERS
DATA ANALYSIS DATA COLLECTION METHOD:
Research collected data through questionnaire, which consisted of no. of question which helps to fulfill objectives of this project. I putting to the retailers fill this set of questions the question from Performa in order of the questions listed. The contact method is sort of the personal interview. Researcher explained retailers the aim and objects of the investigation and also removed all the difficulties, which may hinder respondent in misunderstanding and the implication of particular questions the concept of difficult terms. PROCESSING AND ANALYSIS OF DATA:
First of all, Research edited all the raw data through questionnaires to detect errors and omission and corrected these when possible. Research then determined frequency for every possible answer / options of each question. Thereafter using samples size and response researcher received for each question. Research calculated percentage to simplify numbers.
OBJECTIVE OF STUDY
To know brand positioning of Vimal suiting in the Ahmedabad and Gandhinagar cities. To find out the customer’s preference for suiting To get the idea of buying pattern of customer for suiting To find out the problems that retailers faces with reliance. To know the features that customers look while buying To know the satisfaction level of retailers from Vimal suiting To know the brand most preferred by the customers in case of suiting To know the pricing of Vimal suiting as compared with other competitors. To know the sources of information for the potential customers in cities. To know fast moving colours. To know fast moving blends. To know the customer segment. To know the most purchases age group. To know the effect of readymade garments
Data analysis and interpretation Q. Which products are you selling? Products
%
1. Suiting & shirting 2. Suiting, shirting&saree 3. Suiting, shirting&other
Frequency
64 24 11
45 17 08
products
3)suiting,shirti ng& other 2)suiting,shirti ng&saree
1)suiting &shirting
1)suiting &shirting
2)suiting,shirting&sar ee 3)suiting,shirting& other
Q. Which brands of suiting are you selling?
1) 2) 3) 4) 5) 6)
BRANDS
%
Siyaram Vimal Mayur Donear Grasim Others
90 10 87 83 93 29
6) 5)
Others
FREQUENCY
63 07 61 58 65 20
1) Siyaram
Grasim 2)
4)
Donear
3)
Vimal
Mayur
1)
Siyaram
2)
Vimal
3)
Mayur
4)
Donear
5) 6)
Grasim Others
Q. Rank the following brands according to the Attributes? FEEL OF FABRIC BRANDS
RANK
VIMAL SIYARAM MAYUR DONEAR GRASIM
1 4 5 3 2
The above table shows that the feel of Vimal is one of the best one. Grasim is on second position whereas Donear, Siyaram and Mayur 3rd, 4th, 5th positions respectively.
PRICE WISE BRANDS
RANK
VIMAL SIYARAM MAYUR DONEAR GRASIM
5 2 1 3 4
Considering price aspect Mayur comes first for lowest price and Vimal comes at last for highest price between Siyaram, Donear, and Grasim with increasing rank.
QUALITY WISE
RANK
VIMAL SIYARAM MAYUR DONEAR GRASIM
3 2 5 4 1
As far as Quality is concerned the above table shows that VIMAL stands at the THIRD POSITION whereas GRASIM is leading each and every brand while SIYARAM, nd th DONEAR and MAYUR stands at 2 , 4th,& 5 respectively.
TEXTUREWISE BRANDS
RANK
VIMAL SIYARAM MAYUR DONEAR GRASIM
2 4 5 3 1
As far as texture is concerned VIMAL stands at the 2nd position whereas GRASIM is leading each and every brand while SIYARAM, MAYUR and DONEAR stands at rd th th 3 ,4 & 5 respectively.
Q. Which are the colours/shades fast moving? Ans.
Colours
Frequency
Blue Black Brown Golden Bottle green Gray
68 65 61 58 40 60
colours
17%
20%
Blue Black Brown
11% 19%
Golden Bottlegreen
16% 17%
Gray
From the survey I can say that Blue, Black and Brown colours are fast moving. Above chart shows percentage of that.
Q. Which are the fabrics blends fast moving? Ans
Blends
%
Frequency
Polyester/viscose Polyester/cotton 100% cotton
97 93 14
68 65 10
Blends
7% Polyster/viscose 48% 45%
Polyster/cotton 100% cotton
polyester/viscose and polyester/cotton are fast moving as per survey.48% & 45% respectively.
Q. According to you price perception of vimal products? Ans.
Price perception
%
Frequency
Very high High Average Low Very low
4 10 86 0 0
3 7 60 0 0
Price perception of VIMAL products are AVERAGE. 86% of respondent says average price.
Price perception
0% 4%
10%
Very high High Average Low
86%
Very low
Q. Describe quality of vimal’s fabric?
Ans. Particulars
Good
Average
Poor
Total
Texture Design Colours Material Feel of fabric
68 50 52 67 64
2 20 18 3 6
0 0 0 0 0
70 70 70 70 70
70 60 50 40 30 20 10 0
Good Average Poor Texture Design Colours Material Feel of fabric
QUALITY of VIMAL FABRIC in above aspect, it is GOOD.
Q. According to you what should be MRP price for vimal suitings? Rs.______________
Ans. Price range (Rs.) per piece 100 to 200 200 to 300 300 to 400
Frequency
10 65 5
Price Range
6%
13% 100 to 200 200 to 300 300 to 400
81%
As shown in the above chart, most of retailers favours Rs.200 to 300 per piece. 81% of respondent favours for that price range. Q. Which segment customer are purchases vimal fabric most?
Ans. Segments Service class Business men Students Professionals
Frequency
62 65 0 17
Service class and Business men are purchases VIMAL FABRIC most as per survey. Below chart shows 45% & 43% respectively. Segment Of Customer
12% 0%
Service class 43%
45%
Business men Students Professionals
Q.which age groups customers are mostly purchases vimal fabric?
Ans. Age groups
Frequency
Less than 30 years 31 years to 45 years Above 45 years
0 67 3
31 to 45 years age group customers are mostly purchases VIMAL FABRIC. Age groups 80 60 40
Frequency
20 0 Lessthan 30 years
31 years to 45 years
Above 45 years
Q.what are the sources of information received by the customers?
Ans. Sources
Frequency
Advertisement Inspired by the friends/relatives Brand loyalty Any other
69 0 66 12
Sources Advertisement
8%
47%
Inspiredby the friends/relatives Brand loyalty
45% 0%
Any other
ADVERTISEMENT and BRAND LOYALTY are two sources from where a customer receives information about the VIMAL SUITINGS.
Q. What are the features been affected when customers buying the products?
Ans. Brands : Out of 70 respondent 56 respondent gave above the 50% Material : Out of 70 respondent 60 respondent gave 25 to 50% Design : Out of 70 respondent 59 respondent gave below 25% Colour : Out of 70 respondent 62 respondents gave 25 to 50% Texture : Out of 70 respondent 65 respondent gave below 25% : Out of 70 respondent 61 respondent gave above 50% Price
As per the survey BRANDS and PRICE are the most features that customers looks while buying the products. As well as material & colours also have important whieghtage when customers buying the products.
Q. To what extent ready-made garments are affecting the sales of fabric? Why?
Ans. Particulars Great extent Certain extent Negligible
Frequency 66 4 0
Affecting sales
6%0% Greatextent Certain extent Negligible 94%
94% respondent says ready-made garments are affecting the great extent sales of fabric. Reason for that low price, ready to wear and latest fashion.
FINDINGS 1 2. 3 4
5.
6.
7. 8. 9. 10. 11.
GRASIM, SIYARAM & DONEAR ARE THE LEADING BRANDS IN BOTH
CITEIS SERVICE OF AGENTS/DISTRIBUTORS TO RETAILOR IS NOT UP TO MARK. FAST MOVING COLOURS ARE BLUE, BLACK& BROWN. LESS ADVERTISING OF VIMAL AS COMPARED TO OTHERCOMPETITORS RESULTS IN LESSER DEMAND OF VIMAL SUITING. SEEING THE TODAY’S SCENARIO IT IS VERY IMPORTANT THAT WE GRASP THE INTEREST OF OUR CONSUMERS. BUT FROM THE VIMAL’S SUITINGS POINT OF VIEW ,THE CONSUMERS ARE NOT ABLE TO UNDERSTAND THE ADVERTISEMENT DISPLAYED & THUS AS PER THE RETAILERS IT WAS VERY HIGHLY COMPETITIVE ENVIRONMENT. LACK OF COMMUNICATION BETWEEN RETAILERS AND COMPANY RESULTSIN DISSATISFACTION OF RETAILERS AND GRIEVANCES OF RETAILERS ARE NOT CLEAR ABOUT THE COMPANY POLICY BECAUSE OF COMMUNICATION. VIMAL SUITINGS ARE NOT AVAILABLE AT MANY GENERAL REATILERS IN THE MARKET. BRAND AWARENESS ABOUT REANCE AND V2 IS VERY LESS IN THE MARKET. MOST FAVOURABLE SEGMENT OF CUSOMER ARE BUSINESS AND SERVICE CLASS. FAST MOVING BLENDS ARE P/V AND P/C. PRICE PERCEPTION OF VIMAL SUITING IS AVERAGE.
SUGGESTIONS DISTRIBUTION :
The distribution network for selling Vimal-suiting products seems to be a major bottleneck in increasing the sales of its product. It was observed that large number of retailers were not selling Vimal suiting products, a common reason for not selling Vimal suiting was that no sales man visit to the General retail shop. On the other hand sales personnel’s of other companies like Donear, Bhilwara, Digjam, Siyaram, Grasim were visiting general retailers that too regularly twice in a month, one has to search hard to find any of there general retailer selling Vimal suiting. DESIGNING:
Another serious problem is that the design used by Vimal-Suiting is not as per the trends in the market. This is particularly true in the case of suitings. Again the retailers want new designs with dark colors. Reliance should not forget that they are in the fashion industry where it is necessary to bring out the latest design of they want to be in market at top level. PRODUCT QUALITY VS PRICING:
As compared to the prices Vimal suiting charges the retailers feel that the quality is not upto the mark. Competitors like Bhilwara is able to provide much better quality in terms of finishing, texture (feel) aesthetics appeal. At a much lower price. The quality of the fabric needs to be improved in view of the fierce competition in this market. COMMUNICATION WITH RETAILERS:
The company has failed to communicate well with the retailers. Some retailers in Gwalior, Indore and elsewhere believe that we have stopped manufacturing fabrics from the last two years, many retailers are of the view that Reliance group is not even interested in the textile business now. This is sad to say the least perhaps a proper Dealers-salesman network would Improve the situation. ADVERTISEMENT:
The retailers rate advertising efforts of the company to be POOR there is absolutely no use of cable, Hoarding, newspapers and magazines etc. in advertising. On the other hand our competitors like DONEAR, SIYARAM, GRASIM, MAYUR, AND DIGJAM are very aggressive in this field. Advertising is not expenditure but an investment. It is necessary to build the Vimal brand by proper advertising so that the consumers take interest in buying Vimal’s product.
POLYSTER…POLYSTER…POLYSTER …POLYSTER
The company is in love with synthetic fibre. There is nothing wrong in it. BUT either the company should keep the customer’s interest in polyester fabric alive or if customer’s demand changes to some other fibre like cotton then the company should be ready for the change.
SOLUTIONS
Advertising is a backbone for any product for increasing its sales target. So the best way for the advertisement is through visual media. Secondly advertisement through the local news paper i.e. Divya Bhasker, Sandesh etc.marking a reliance product stating a remembareble punch line price, varities and shades that too regional language would give a chance to rural people to understand. More and more Polyethene bags are to be provided to the retailers More and more hoarding are required to be provided to the retailers so that customer could be able to know about the products before buying. More and more dealers are required to be appointed so that a proper service to retailers could be provided as and when required. More and more shades and varities according to the latest fashion have to be manufactures so that customer should have a clear choice for selection. Well schemes do play an important role in picking up sales figures, also it motivates the retailers to sell the brand that favours profits the most. As what it has been seen in case of Donear, grasim, siyaram, schemes would play a good impact on sale of Vimal suiting as they place lucky draw coupons inside of the product, which attracts retailers as well as customers and in turn maximizes sales. A regular yearly sample display with on hand booking would kill to birds in one shot 1.BRAND AWARENESS 2. SALES Clear cut pricing policy at all the cities of regions A proper wholesaler and distributor in each city is necessary to provide service to the retailers
MAKING BRANDS SUCCEED
A brand’s power lies in its customer franchise. The capacity to drive buying. Powerful brands do better jobs than rivals in terms of market performance parameters. Essential to the success of a brand are the following: • •
Better brand strategy: It reflects more competitor orientation. Superior brand strategy: Superior brands combine competitive angle and customer
angle. In a competitive situation, a brand’s success comes at the expense of others. A selected brand essentially signifies its ability to survive in the buyers’ elimination processits choice behaviour. The cognitive perspective is the most balanced view on consumer behavior. Buying is nothing but a problem solving behaviour.
The brand choice decisions are critical for the marketers. Choice means success and rejection failure. How customers arrive at specific brand choice is essential for the brand development. The decision making framework suggest that customers while making purchasing decisions pass through five stages: the problem recognition, research for satisfactory solution, alternative evaluation, purchase decision and post purchase evolution. Each of these stages suggests specific tasks to be performed by the brand marketer. The failure in performing the attending task at these stages exposes the brand to the danger of getting eliminated in the decision process.
Challenge Facing Brands
A brand is not physical. It is perceptual. A brand may be legally owned by the company, but it is possessed by the people. A brand is what it means to the customers. The brand image needs to be reinforced. Brand Revitalization
The market forces like competitive advancements, shifts in consumer tastes and liking, technological and legal developments impact the brand market fit. Brands which have lost their glory suffer from this drawback. The customer’s definition of a product over time, but the brand has not. Measures:Increasing Usage New Markets Image Change Brand Enhancement Customer sophistication:
In different geographic markets, customer sophistication with respect to a product class may vary. Sophisticated customers who appreciate differences among products whitin a class are not be dealt with umbrella branding. The differentiation must be accounted for by the branding strategy. The branding strategy must focus on category differentiation as it exists in a customer’s mind. For a rural customer a shirt may mean a single thing. But for urban (looks conscious) customer the shirt’s description must precisely clarify as to what type of shirt it is and which occasion it is to be worn at.
For becoming strong brand VIMAL should benchmark following attributes:
1. Deliver excellent customer Benefits: The brand’s tangible and intangible components must be combined to create value or benefits that customers desire. 2. Stay relevant: With time customers’ change. Make sure you are in touch with these changes. A Brand’s tangible and intangible components need to be fine-tuned to stay relevant. 3. Pricing is based on Perception of value: Price is an important brand attribute. Charging too high or too low, price may not be appropriate. Make sure price is based on how customers view the product as a whole. 4. Proper positioning: well-positioned brands occupy a distinct place in a customer’s mind. The strong brands achieve points of parity in areas where competitors are aiming to get advantage. They create appropriate points of differences to gain advantage over competition. 5. Consistency: strong brands essentially strike a perfect balance between continuity and change. Change is needed for staying relevant while continuity is required to maintain a brand's’core. Continuity helps a brand going astray. 6. Brand Portfolio and Brand Hierarchy: Companies keep a portfolio of brands for different customer segments and product lines. Generally corporate brands are combined with sub – brands at different levels. All these brands contribute to overall equity of the portfolio. 7. Brand Makes Use of all Needed Marketing Elements to build Activities: Brands are made up of all marketing elements. These elements perform various functions for the brand. 8. Know what a Brand Means to Consumers: Manager of strong brands exhibit great understanding of what a brand means to consumers in terms of its perceptions, belief, attitudes and behaviors. It is on this understanding they make decisions about the brand. 9. Long term support: Brand equity construction requires long-term sustained efforts. Then only consumers can have proper depth and breadth of awareness and strong, favorable and unique associations. Short cut must be avoided. Impact of marketing program of must be appreciated before any change is made. 10. Monitor Sources of Equity: The health of a brand must be assessed by on going basis. Brand tracking studies need to be carried out for the evaluation of performance. Strong brands are supported and navigated by a formal system.
CONCLUSION
For Brand image of VIMAL suitngs,RETAILERS have “RESPECT BUT THEY ARE NOT PROUD OF VIMAL SUITINGS.”
As far as quality concerned it is good .But it needs aggressive marketing with the new ideas with high advertising and commited sales force in these two cities.
Retailers play an important role in market as they have to face & satisfy the consumer of goods.
LEARNING FROM THE PROJECT Management is getting work done by other people; similarly marketing is an art of getting information through other people satisfying it. Public relation and excellent communication are the essence of any good salesman/marketing personnel. Experince is very helpful for developing these skills. It provides good sense of talking with people and getting information from them in a delicate area. It provides great experience to us by working with a giant industry RELIANCE . The person who is setting on chair (chair of responsibility and of authority) is not endue, but the workload makes him endue. To learn marketing in books is easy but to follow it in practical field is somewhat tough but latter it is interesting. All virtues that we were taught by our to parents like zoom manners; politeness , trustness etc. really help you when dealing with people. If we will sit silently than we cannot achieve anything,similarly to sell any product we have to work hard. And finally there is no short out to success. One has to work hard,actually very hard to be successfully, aim high and workhard with a positive attitude.
BIBLIOGRAPHY
Marketing management Philip Kotler
Research Methodology Cooper, Schindler
Annual Report of Reliance Industries Ltd. Year 2002-2003
Brand management Harsh V Verma
WWW.RIL.COM
QUESTIONNAIRE Note ; PUT TICK MARK FOR ANSWERS OTHER THAN DESCRIPTIVE 1) NAME OF SHOP : ________________________ 2) NAME OF RESPODENT : ________________________ 3) LOCATION :________________________ ________________________ ________________________ 4) WHICH PRODUCTS ARE YOU SELLING? 1) 2) 3) 4)
SUITINGS SHIRTINGS SAREES OTHER
5) WHICH BRANDS OF SUITINGS ARE YOU SELLING? 1) SIYARAM 2) VIMAL 3) MAYUR 4) DONEAR 5) GRASIM 6) OTHERS ___________________________________ 6) RANK THE FOLLOWING BRANDS ACCORDING TO THE ATTRIBUTES. BRANDS
FEEL FABRIC
OF PRICE
QUALITY
VIMAL SIYARAM MAYUR DONEAR GRASIM 7) WHICH ARE THE COLOURS/SHADES FAST MOVING? 1)__________ 2)__________ 3)__________ 4)__________ 8) WHICH ARE THE FABRIC BLENDS FAST MOVING? 1) POLYSTER/VISCOSE 2) POLYSTER/COTTON 3) 100%COTTON
TEXTURE
9) ACCORDING TO YOU PRICE PERCEPTION OF VIMAL PRODUCTS? 1) VERY HIGH 2) HIGH 3) AVERAGE 4) LOW 5) VERY LOW
10) DESCRIBE QUALITY OF VIMAL’S FABRIC? PARTICULARS TEXTURE DESIGN COLOUR MATERIAL FEEL OF FABRIC
GOOD
AVERAGE
POOR
11) ACCORDING TO YOU WHAT SHOULD BE MRP PRICE FOR VIMAL SUITINGS? RS.__________________________
12) WHICH SEGMENT CUSTOMER ARE PURCHASES VIMAL FABRIC MOST? 1) SERVICECLASS 3) STUDENTS
2) BUSINESSMEN 4) PROFESSIONALS
13) WHICH AGE GROUPS PEAPOLE ARE MOSTLY PURCHASES VIMAL FABRIC? 1) LESS THAN 30 YEARS 2) 31YEARS TO 45 YEARS 3) ABOVE 45 YEARS 14) WHAT ARE THE SOURCES OF INFORMATIN RECEIVED BY THE CUSTOMERS? 1) ADVERTISEMENT 3) BRAND LOYALTY
2) INSPIRED BY THE FRIEND/RELETIVES 4) ANY OTHER ________________
