RESEARCH QUESTION:

Should PoojaArya open a design studio in Jaipur to maximize visibility in the local market? RESEARCH PROPOSAL: Introduction: In 2 ! "iss Pooja Arya launched her o#n brand called Pooja Arya under her $amily%s company #ith her uni&ue selling point as clothes made $rom block print $abrics' (here is no retail outlet $or Pooja Arya but it is sold at designer bouti&ues all over the #orld such as )imaya and *gaan' It outsources its production to other companies in the same line'Its target market ranges $rom upper middle class to the elite class! as it is a designer label and priced at a suitably high rate' Rationale: I chose this topic as I have al#ays been interested in $ashion retailing'I aspire to open a similar clothing retail business in the $uture' Also! as the business is looking into opening retail outlets! my research #ill prove to be use$ul to them' I #ill make use o$ the $ollo#ing tools $or my research+ ,e#in%s $orce $ield analysis- to #eigh the non-$inancial $actors $or and against this decision' S.*( analysis / this #ill sho# the company%sthe current and $uture standing 0ecision (ree / the $inancial analysis o$ the decision to open retail outlets #ill help in decision making' Anso$$ "atrix- #ill sho# in #hat direction the business needs to gro# and #here its position is in the market' Porter%s generic strategy / $or a retail outlet location! this tool #ill analyze #hat strategy Pooja Arya should concentrate on' 1ost 2ene$it Analysis - to kno# the $inancial bene$its and dra# backs o$ opening the retail outlet' Porter%s $ive $orce analysis -

Areas of syllabus: 34 5nit 3- 2usiness organization and environment' 3'6 *rganizational Planning tools' 24 5nit 7 - "arketing' All o$ the above have been taken $rom the book / 2usiness and "anagement by Paul 8oang' Antici ated difficulties: (here may be some con$identiality issues regarding $inancial data' 9or this! I #ill provide her #ith a certi$icate stating that the in$ormation #ill only be used $or research purposes' "s'PoojaArya%s house is not in the area #here I reside' (his #ould prove to be time consuming' Also! she along #ith her brother is the only heads o$ the business! restricting my base o$ research'

Action plan
Date
3stjuly / 2:th July

Action
9inalize the &uestion and start the research proposal by talking to the $irm about the idea' Start the general outline o$ the internal assessment and get it assessed' Prepare a &uestionnaire $or survey and complete all intervie#s! .rite do#n all the &uestions asked and ans#ered! then interpret all the needed in$ormation $rom the intervie#'

Anticipated Difficulties
(ook a lot o$ time to decide on a topic and a$ter #ards started the research proposal very late'

3st / 3:th august

.as very di$$icult to interpret the details in the intervie#' 0i$$icult to get unbiased ans#ers'

36th / august

th

"ake conclusions and give recommendations to the $irm' 9irst dra$t o$ the Internal assessment

th

September

Second dra$t o$ the Internal assessment Submission o$ $inal dra$t o$ the Internal assessment

,ot o$ errors #ere diagnosed "any problems such as correspondence to data and availability o$ additional in$ormation 9e#er errors

th

September

Pooja Arya is a brand that #as launched in the year 2 ' (his brand concentrates on clothing $or #omen only' Its uni&ue selling point is its block prints and traditionally #oven cloth #ithin <ajasthan' (he $actory is located in Jaipur itsel$ but also a lot o$ outsourcing takes place to cut production costs' (he product range is varied #ith skirts! saris! sal#arkameezes! kurtis! tops and small handbags' It sells locally! nationally and internationally but it is not engaged in exporting' Its cliental is the elite class o$ Jaipur 3 and tourists #ho come recommended' (his brand is kno#n $or exclusivity! class and &uality o$ cloth and design among the socialites o$ Jaipur' It has no promotion strategy as such and depends on #ord o$ mouth' (he brand has no retail store= the products are on display in the o#ner%s house itsel$' Researc! "et!ods: 9or primary research! $or consumer pro$iling I #ill carry out surveys' (his #ill tabulate do#n to PoojaArya%s main target market' Intervie#ing the o#ner #ill be another major method o$ collecting data' It is the most dependable and accurate source o$ in$ormation' 9or secondary research! I #ill search on >oogle to $ind out the market leaders and #hat their main selling propositions are in order to get a notch ahead o$ them' Statistical data about the price o$ the market and the demand is also needed $or making the decision'

Intervie# #ith o#ner Pooja Arya

#indin$s

(he survey #as carried out on a total o$ 77 people #ith consumer pro$iles o$ 3? to 6: years #ith incomes bet#een

<s' 7! to <s' 6 ! and #ith educational &uali$ications o$ under graduate! post graduate or post graduate pro$essional' (he tabulated result is that the age group o$ 7:-6: years #ith an income o$ <s'7 ! - <s'6 ! and an educational &uali$ication o$ a postgraduate is PoojaArya%s target and potential market'

(he #illingness o$ the consumer pro$ile to spend is bet#een <s'2:! to <s'7 ! per three months on clothes' (his indicates that consumers are ready to spend money but #ant $ull #orth o$ it as #ell as one o$ the important $actors is the basic utility o$ the attire that they purchase'

As observed! sal#arkameezes and saris are much in demand by the upper class society o$ Jaipur' Pooja Arya surely has a chance in this market! as her 5SP is Indian attire' .ith a substantial disposable income! PoojaArya%s target market #ill be ready to pay her high prices and be satis$ied #ith good &uality as #ell as mentioned by many people #hen asked #hat they like about Pooja Arya'

(he above t#o pie charts clearly tell Pooja Arya #hat it should keep in mind #hile entering the retail market in Jaipur' (he expectations $or trained sta$$ and a #elcoming $eel in a store is very important $or consumers' Also! Pooja Arya should be care$ul and avoid dra#backs like lack o$ variety o$ stock and uncom$ortable $ittings'

Jaipur still being a small developing to#n! ne#s spreads very &uickly' (he main source o$ advertising and kno#-ho# is through #ord o$ mouth and $riends% recommendations' (hese can be very bene$icial or damaging at the same time $or the brand image o$ Pooja Arya' *ne #rong decision can change its reputation! #hich might cut do#n sales'

PoojaArya%s brand visibility is very #ell established already in the Jaipur market' 2ut sustainability #ill be needed to maintain and@or $urther increase sales especially #ith the proposed retail store%s commencement' (o conclude my $indings! the consumer pro$ile o$ PoojaArya%s target market is in the age group o$ 7: to 6 years! in the income group o$ <s'7 ! to <s'6 ! #ith an educational background o$ postgraduate' (his market segment%s #illingness to pay is bet#een <s'2:! to <s' 7 ! #ith the most important shopping $actors being the brand name and basic utility' (he attires demanded by this segment are $ormals and saris' (hey expect trained sta$$ in a retail store' In their perspective! stores today lack variety o$ stock and good $ittings'

(he main advertising in Jaipur is through #ord o$ mouth through #hich ?2A o$ the people out o$ a total o$ 77 kno# Pooja Arya' (his in$ormation #ill help the business by making sure that it provides to all its market%s demands and needs'

Analysis S%OT Strengths+ 2eing one o$ the 2ridal Asia designers! Pooja Arya gets brand image and visibility' Pooja Arya sells a uni&ue Indian style o$ $abric and clothes! #hich adds an extra value and justi$ies high prices' (hey outsource thereby cutting their costs' Short chain o$ command' .eaknesses+ It doesn%t have its o#n location or retail outlet so as to give better service to customers and kno# them directly' 1apital! because o$ less share holders! can be insu$$icient $or expansion' *pportunities+ I$ >0P o$ India increases! there #ill be more dispensable income $or upper middle and elite class to spend on expensive commodities' It has an opportunity to get ne# trends! designs and $ashion to the direct potential customers in sho#s like the 2ridal Asia' (o increase capital! the company can invite other shareholders or invest in the company so as o increase capital and to achieve gro#th $or the business' (hreats+ (here is cut throat competition in the $ashion market! especially #here brands are concerned'

 As "iss' Pooja Arya plays a dual role o$ the o#ner as #ell as the designer! she may loose $ocus' 1osts to change and adapt #ith the on going trend comes up to be very high #hich #ill push up prices' >etting skilled labor in Jaipur might be very di$$icult and time consuming' (he market is very dynamic and trends pass by very &uickly' (his puts a lot o$ stress on the o#ner' (he #eather o$ <ajasthan being so hot in summers! it causes the color and@or dye to leak #hich spoils a lot o$ batches' (his increases costs' A$ter doing this S.*( analysis $or Pooja Arya! it is clear that there are certain threats and #eaknesses that this business has to look at be$ore plunging into opening a retail outlet' 5sing the strengths and opportunities! and reducing the threats and #eaknesses! Pooja Arya can improve the chances o$ success o$ her retail outlet expansion' Ansoff "atri& Existing products "arket penetration "arket extension New products Product development 0iversi$ication

Existing markets New markets

(he strategy o$ market penetration #ill not be suitable as Pooja Arya is not selling and expanding into the same market' She is no# looking at the ne# local market o$ Jaipur' Product development is also not suitable! as Pooja Arya is not building her product range $urther' She is not developing any ne# product $or this decision' 0iversi$ication is also not appropriate $or this brand as there are no ne# products' "s' Pooja is not entering into an entirely di$$erent market #ith an entirely di$$erent product'

"oreover! at this juncture diversi$ication poses too high a risk $or the business to take' Its parent brand hasn%t been established into the market yet and there$ore diversi$y might not prove to be success$ul' "arket development is the correct strategy as Pooja Arya! by opening a retail outlet! is expanding into a ne# market #ith her existing products' (his is a medium risk strategy #here in! the business kno#s the product that is designer clothes! #hich is being sold to the market very #ell' Slight changes might be needed in the price! design and marketing strategies to suit the trends! tastes and designs according to the market segment%s likes and demands'

PORTER'S #I(E #ORCES ANAL)SIS

9or Pooja Arya line o$ clothes! the threat o$ ne# entrants is going to be comparatively high as couture designing has lo# barriers to entry and it appears to be a lucrative $ield $or most individuals #ho #ish to make a career in $ashion designing as the pro$it margins are really high' 2 (hreat o$ substitutes #ill be relatively high $or Pooja Arya line o$ clothes as there are innumerable $ake copies o$ designer #ears in the markets all over the #orld' Bspecially in India! there are many people #ho are brand conscious but cannot a$$ord the original designer clothes' (his $urther increases the threat $or her business' As Pooja Arya%s uni&ue selling point is outsourcing uni&ue $abrics $rom unconventional sources! the bargaining po#er o$ suppliers #ill be lo#' Cot many businesses step into the market $or uni&ue $abrics as it is very expensive ;' (here$ore! Pooja Arya%s suppliers #ill co-operate and might #ork pre$erentially $or Pooja Arya'

2 ;

Intervie# o$ "s' Pooja Arya Do#ner4 Intervie# o$ "s' Pooja Arya Do#ner4

2argaining po#er o$ buyers is very high in the $ashion #orld' People #ho are ready to pay a high price $or clothes #ant top-notch &uality and style' Bxclusivity is very high on these customers% priority list' (here are many high class designers like Pooja Arya in the market #hich might steal it%s customers incase o$ a slip up or mistake $rom Pooja Arya 7' (he competitive rivalry #ill be high as Jaipur is a comparatively small market and there are many designers #ho are #illing to provide similar designs and clothes as Pooja Arya:' (here$ore! it can be in$erred $rom the Porter%s $ive $orces analysis that Pooja Arya has many threats in her #ay' 8ence! it is recommended that she should maintain strong contacts and bonds #ith her suppliers' Also! the business should adopt a promotional strategy that #ill make Pooja Arya look di$$erent and uni&ue in $ront o$ the other brands in the market' (his #ill give her a competitive edge above its competitors' (he business should concentrate on one strategy out o$ Porters >eneric Strategy' Pooja Arya can choose to $ocus majorly on the elite class and there$ore promote the brand accordingly' As this segment o$ the society does not hesitate in paying a huge amount o$ money $or clothes! Pooja Arya can decrease costs and put a higher mark up $or pro$it' (he other option is $or the brand to adopt the di$$erentiation strategy! #hich #ill entail coming up #ith designs and promotes unkno#n and very rare in the market' (his #ill attract the customers and brand loyalty might increase' (his #ill reduce the threat o$ competitors'

7 :

Intervie# o$ Pooja Arya%s competitor / Cidhi (holia Intervie# o$ Pooja Arya%s competitor / Cidhi (holia

In the #orld o$ $ashion and design! the elite class looks $or style! $reshness! and class'6(he 5SP o$ Pooja Arya is the emphasis on <ajasthan%s #eaves and cloth and its use in creating attires that are along modern lines yet retain their traditional ethos'E Since the business has a strong point o$ being exclusive #ith its prints?! it should concentrate on selling this point extensively' "oreover! #ith the need o$ a status symbol in Jaipur! exclusivity #ill give the customer the satis$action o$ being uni&ue' (he business #ill have the $reedom! over here! to hike up prices! as the target market is ready to pay a good amount o$ money $or &uality and style' F (his #ill not only cover costs $or the location setup but also increase the pro$it margin to an extent' (he business needs to keep in mind the challenges that it is $aced #ith' (he a$$luent o$ Jaipur o$ten shop $rom the nearby metro cities like 0elhi! "umbai or $rom abroad as #ell 3 ' (his international competition poses a threat to Pooja Arya%s sales and brand loyalists' (he brand needs to have a very strict commercial policy and not just rely on #ord o$ mouth' "s' Pooja should organize drives like breaking the ne#s o$ her ne# retail outlet in Jaipur at the next bridal Asia sho#' (his #ill get the attention o$ not only the big designers present in the sho# but also the strongest national market the brand can grab'

6 E ? F 3

9emina magazine July edition 2 3 Survey &uestion 32 Intervie# Survey &uestion 7 Survey &uestion F

Another possible promotional venture could be to sho#case her designs at the next Jaipur Girasat ,iterature 9estival' Success$ul artists and authors come to this $estival' (he #orld o$ literature #elcomes tradition in any $orm and so there is a strong chance $or Pooja Arya to establish itsel$ in this sect o$ the society as #ell' (his #ay it can attain a larger market share by expanding its reach to the $amous' Also! i$ possible "s' Pooja Arya could get a #ell-kno#n $igure to endorse her products $or a sho#case' (his #ay! #hen associated #ith a big name! the brand could get a mark up in not only sales but also in brand image and visibility' .ith the retail outlet plan in action! the buzz #ould surely spread in Jaipur as #ell! #hich #ould insure Pooja Arya%s spread o$ name through #ord o$ mouth locally' .ith a lot may ban&uet halls coming up in Jaipur! an exclusive previe# o$ Pooja Arya%s collection can be conducted $or t#o to three days' (o maintain the class and brand image! it could be only by appointment and@or invitation' (his insures no #aste o$ time on other customers but the potential ones' (he rent o$ the hall #ill be and added cost ho#ever the visibility attained by the previe# might increase purchases' (his previe# #ill #ork like a tempting promotional strategy $or the customers' (o leave a lasting impact on Pooja Arya%s customers! a memento could be sent out on each o$ their special occasions such as birthdays or anniversaries' A close contact #ith customers is one o$ the best #ays to attain brand loyalty' (his #ould make them $eel cared $or and satis$ied #ith their association #ith Pooja Arya' (his #ould re&uire recording the dates and spending on the souvenirs but in the long run might result in brand loyalty' *ne advantage to Pooja Arya in context to the local market #ould be that the brand makes clothes suiting the style! trend and environment o$ Jaipur' 1ompetitors in 0elhi or "umbai #ill not be catering to such demands as their major market is situated in their respective cities' (his #ay Pooja

Arya is providing traditional $abric o$ a #orld-class &uality and exclusivity and o$ a high com$ort level' Bven though the Jaipur market is smaller compared to metro cities% markets! even a small market share counts $or a success$ul brand' (here$ore! by concentrating on passing trends and tradition and its competitors! Pooja Arya can maintain and increase its pro$its and brand image' (he #orld o$ design has a lot to o$$er and there$ore it should be care$ul not to drop its level o$ &uality and prints to save itsel$ $orm losing market share' 2y adopting promotional activities! the brand can increase its visibility and! i$ done so e$$ectively! its sales as #ell' 1onclusion A$ter meticulously analyzing all the $actors! I think it is $easible and a good gro#th strategy $or "s' Pooja Arya to open an outlet in Jaipur' (he market is going to be responsive to this outlet and increase business! as my market research had indicated' Since! tradition never goes out o$ $ashion33! this reduces the risks o$ a $all in demand $or PoojaArya%s clothes' (here$ore my research sho#s that she should open an outlet' 8o#ever! "s' Pooja Arya should also consider the $inancial $ront o$ this project to arrange $or ade&uate resources' ,imitations and $uture research+ 1ompetitor activity is not analyzed in depth'I$ Pooja Arya is success$ul! there #ill be some reaction $rom her competition in jaipur! #hich she needs to keep in mind' Also! her 5SP has been bridal #ear $or years no# and modi$ying into party #ear and casual #ear might be a challenge! #hich could undermine the success o$ the venture' 9or research "s' Pooja Arya should do a detailed $inancial analysis to check the viability o$ this project' *ne aspect that she can use to her bene$it is that she can undertake the availability o$ skilled labor in Jaipur to create the kind o$ specialty garments she is kno#n $or'
33

Intervie# o$ "s' Pooja Arya