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Strategies to Kouton
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Rammohan 11
an
Sougata
[Pick the date]Roy 52
Declaration
Sougata Roy
Jeetan
ACKNOWLEDGEMENT
Nothing can be gained or acquired without hard work which leads to success.
The success of our survey work is the amalgamation of our hard work and cooperation of
respondents, who delivered their precious time without any hesitation.
Any accomplishment requires the effort of many people and happens to be the synergetic
product of many minds. This project has been special brought to my fruition through the
effort of some very special people, Mr .saket bagla our external guide in the project. He
provided us all possible information and necessary guidance as required for accomplishment
of the objectives of the project
We deeply grateful to my Prof Shinu Abhi, who graciously spared his time to share her
views and who‟s unstinted support and cooperation enabled this project to see the light of the
day. We were thankful and immensely obliged for her constant guidance and words of
inspiration
We were thankful to IT dep of IFIM BschooL who helped a lot in completion of project and
provided the wifi & computer lab.
For completion of our project we thankful to our in formats that provided us with required
inputs and information which are the requisites of my project.
Above all we have no words to express my gratitude to the almighty GOD who blessed us the
wisdom and enlightened us to complete this project.
Last but not the least, I specially wish all my friends a vote of thanks as without their
valuable supports this report would have not been possible.
Executive summary…………………………………………………………………….1
Chapter 8: Conclusion………………………………………………………………….24
Bibliography……………………………………………………………………………25
Kouton‟s have to learn both the art and science of retailing by closely following
how the other parts of the world are organizing, managing, and coping up with
new challenges in an ever-changing marketplace. Kouton‟s must use innovative
retail formats to enhance shopping experience and try to understand the regional
variations in consumer attitudes to branded garments. Kouton‟s must put the
efforts in the following aspect to improve its Brand Image:
The above are some of the aspects which Kouton‟s need to focus upon on a
more proactive basis.
Chapter 1: General Introduction
Retailing sector of India can be split into two segments. They are the informal and
the formal retailing sector. The informal retailing sector is comprised of small
retailers. For this sector, it is very difficult to implement the tax laws. There is
widespread tax evasion. It is also cumbersome to regulate the labour laws in this
sector. As far as the formal retailing sector is concerned, it is comprised of large
retailers. Stringent tax and labour laws are implemented in this sector.
If the retail industry is divided on the basis of retail formats then it can be split into
the modern format retailers and the traditional format retailers. The modern format
retailers comprise of the supermarkets, Hypermarkets, Departmental Stores,
Specialty Chains and company owned and operated retail stores
The traditional format retailers comprise of Kiranas, Kiosks, Street Markets and the
multiple brand outlets. The retail industry can also be subdivided into the organized
and the unorganized sector. The organized retail sector occupies about 3% of the
aggregate retail industry in India.
Introduction
Problem statement
With the existing brand image of a KOUTON has realised that it isn’t faring
substantially well in the market due to its marketing strategies and internal
factors.
Research objective
The main purpose of this research is to find out where the product brand
image is affected and how to reposition as “family format store”
Intentions in repositioning
Understanding its position in market
Direct competition
Current brand image
Develop strategies
Importance/benefits
With the help of this research “KRIL” can take a strategic decision to rebuild its
Brand image. Research gives clear information what actually the customers are
expecting from this BRAND. Using this information the company can undergo
for a well repositioning in the market.
Research design
Research uses hypothesis test to get more idea how the KOUTON is performing
in the industry.
Questionnaire design:
A well designed Questionnaire is given to the customer and receives
feedbacks from them. From this company can get a clear idea what actually
the customer are expecting from this brand
Depth interviews:
Taking interviews from customer who are loyal to brand
Data analysis
Leading brands that jostle for consumer mind space include Van Heusen, Louis Philippe, San
Frisco, Peter England, Allen Solly and Byford (of Madura Garments, a division of Indian
Rayon); Arrow, Lee, and so on (of Arvind); Raymond, with its offerings of Park Avenue,
Parx and the recently acquired Color Plus; Indigo Nation and Scullers, owned by Indus
League; Wills Lifestyle, promoted by ITC; Zodiac; and a slew of other brands that have a
presence either nationally or in a particular region.
Women's wear is an emerging market with the majors focusing on Western wear. Among the
leading brands, Scullers and Allen Solly have offerings in this market. In the kids-wear
category, the unorganized players have a fair share of the market.
The major names in the organized segment of this market are Lee Kids from the Arvind
stable and Weekender Kids of Personality Ltd, which also owns the Weekender brand.
Brands are also classified as premium/super premium, mid-level and mass market, depending
on the price point at which they are positioned.
Typically, Louis Philippe, Van Heusen, Zodiac and Arrow would be part of the
premium/super premium segment in the formal-wear category; and Peter England, Parx,
Kouton‟s and San Frisco would be a notch lower, as they compete at lower price points.
Among the lower level brands, it would not be incorrect to say that commoditization is
gradually setting in. With shirts available in simple, solid shades — and not much of a
difference in the quality of the fabric — these brands acquire an air of sameness in the eyes of
the consumer.
However, as one scales up the price chain, differentiation kicks in — in the form of the
quality of fabric used, the kind of fit the garment provides or the sheer emphasis on the
design of the garment itself. At price points in excess of Rs 1,500, the Indian consumer has
access to a garment that is truly international in styling, yet priced lower than its comparable
international counterpart.
Consolidation trends
With a surfeit of players staking a claim to a share of the consumer's wallet, the industry has
also seen brands being taken over by companies intending to offer a comprehensive range of
garments to the consumer, straddling multiple price points.
Indian Rayon took over the brands of Madura Coats in India a few years back, while
Raymond stitched a deal with Color Plus. Likewise, Bombay Dyeing and Proline entered into
a strategic agreement. As takeover provides the advantages of an established brand and an
existing distribution network straightaway, companies looking at strengthening their position
in the market would continue to look at takeovers to acquire brands that have a
complementary fit with their existing offerings and to drive top line growth.
Opportunities, challenges
The biggest fillip to the industry would be provided by the growth of organized retailing. As
more shopping malls open, adding thereby a few lakh square feet of retail space, garment
manufacturers will have many more options to peddle their merchandise
As more consumers realize the convenience of readymade garments, it will only serve to
hasten the transition from tailored clothing. Unlike in the West, where tailoring is a more
expensive alternative to readymade clothing and makes a fashion statement, it is more
preferred in India, especially for those who look at it as a lower priced option vis-à-vis
branded ready-to-wear.
The price differential between tailored clothing and ready-mades is partly because of the
excise duty on the latter. The industry would, naturally, like to see a reduction from the
current level, as it would make ready-mades more affordable. Another challenge confronting
Indian garment manufacturers is the need to devise strategies once the quota on garment
exports is abolished in 2005. With garments accounting for nearly 50 per cent of overall
textile exports, the threat from lower-cost producing nations is real.
To counter the potential loss of revenue, Indian garment exporters are gearing up to launch
ready-mades in the domestic market. Conversely, there is also the likelihood of a wide variety
of fabric coming into the country, providing the exporters opportunity to be creative with
their design.
Women's western wear is another segment that is likely to see action. With increasing
urbanization, the demand for such clothing is likely to rise significantly. It would also pose a
challenge to retailers in terms of how they rein their stores to appeal to the more demanding
fairer sex. Both opportunities as well as challenges abound for players in the readymade
garments business. Substantial investments made in brand building and in establishing
customer niches will ensure that they further build on the gains they have made.
At the same time, brand strategists will have their plate full when it comes to entering
territories such as women's or kids wear, or taking advantage of emerging retail opportunities.
Capitalizing on these opportunities will ensure that the garments industry is clothed in
success.
Kouton‟s was set up in the early 1990s, is a leading apparel maker, exporter and retailer. The
company has moved from being a garment manufacturer to a retailer by opening in 2002 its
own chain of brand outlets called Kouton‟s stores.
Kohli says he managed to keep lenders at way to some extent when he and other promoters
paid Rs 30 crores in march to Edelweiss Capital ltd, one of the lenders ,and freed 18% of the
pledged equity .Kouton‟s „ debt has been pared down to Rs 89 Crores. “The money was
arranged by the promoters in their personal capacity”, Kohli said. He said pledging real
estate to redeem the pledged shares will free up another 20% of the promoters stake. This
will bring down the pledged portion of the promoters stake to 23%.The entire process will
take around 30 days to be completed.
Immediately after its initial public opening in 2007, Kouton‟s went on expansion drive,
raising Rs 119 crore in debt against pledged shares in 2008 to fund the move.”We picked up a
51% stake in a processing unit as we anticipated more brands to come in the market and
competition to increase. So, to have a control on the back -end, We acquired control of the
processing units,”Kohil said.
The company also plans to dilute equity of around 5-6% to fund the expansion, but at an
appropriate time, Kohil said.
Firm‟s expansion was started at an inopportune time, chairmen Kohil says in hind sight,the
expansion programme was initiated at an inopportune time. It borrowed about Rs 89 crore in
July-August When its shares were trading at Rs 700 per share .After November, its stock
price almost halved, forcing promoters to top up their shares as surety, Kohil explained .
Koutons owns Clothing brands Kouton‟s and Charlie outlaw for men, Les Femme for
women and koutons junior targeted for children, and is positioned as aa maker of affordable
clothing.
But things could look up for Kouton‟s the industry expects retail stocks to rise further in
anticipation in anticipation of a relaxation of rules governing foreign investment in the retail
sector When the budget is announced on July 6th ,said Kunal Lakhan ,A Mumbai based
analyst with KR Choksey Shares And Securities Pvt Ltd.
Kouton‟s shares closed 1.77% down at Rs408.40 on Monday in Bombay stock Exchange
.The bench mark Index sensex closed 0.14% up at 14,785.74 points.
“With the reduction of pledged amount, the company does not have to worry as much as they
had to some time back because of the quantum of shares pledged,”Lakhani said.
Kouton‟s has around 1,400 stores. In the last one year , it has added aaaaat least 185 family
stores .At last half of those stores were earlier smaller,1000 sq. Ft stores, but were expanded
into family stores of 4,000 sq. Ft each. The company also shut down at least 185 unviable
stores in the last fiscal. For the quarter ended December , Kouton announce a net profit of Rs
13 Crores. It has yet to announce its results for the financial year ended March .
Brand repositioning
So many brands and companies are constantly reinvigorating their businesses and positioning
them for growth. There is a constant need to innovate, reinvigorate, update, recalibrate, or
just simply fend off the competition in an effort to better explain "why buy me."
To move forward, companies and brands need to first take a look at their current brand
positioning. But for a moment, even a brief moment, it would make sense to go back to the
brand drawing board to answer the question, just what is brand positioning anyway?
Brand positioning creates a specific place in the market for your brand and product offerings.
It reaches a certain type of consumer or customer and delivers benefits that meet the needs of
several key target groups and users.
Identifying key growth areas for your brand, marketplace and industry opportunities
How will we promote the brand product purchase, collection, and user patterns?
The main reason is that it is important that everyone on the brand team and all function areas
understand, buy in, and support the new brand positioning. Essentially, this will become the
umbrella strategy for the brand group dictating marketing programs and tactics.
Here the descriptive and casual approach is used, as the segmentation and target group were
clear to the companies, there is nothing to explore in these research and with the help of
causal study we described the cause and effect relationship
Research methodology-
Sampling-
Questionnaire
Group interviews
Focus groups
Chapter 6: Data Analysis
Section A
You shop @ KOUTONS mainly for
Party
Kids Formal Suits wear Regular
Rank 1 5 3 1 6 3
Rank 2 3 6 3 2 4
Rank 3 1 7 4 1 5
Rank 4 3 2 6 6 1
Rank 5 6 0 4 3 5
8
7
6
Rank 1
5
Rank 2
4
Rank 3
3
Rank 4
2
Rank 5
1
0
Kids Formal Suits Party wear Regular
Cumulative
Frequency Percent Valid Percent Percent
Valid 0-2 year 12 66.7 66.7 66.7
2-4 year 4 22.2 22.2 88.9
0-2 year
2-4 year
above 4 year
View points
Test Value = 0
95% Confidence Interval of
the Difference
Mean
t df Sig. (2-tailed) Difference Lower Upper
Kouton’s cloth express my
style 17.867 17 .000 2.167 1.91 2.42
excellent idea
ok
i have no idea
What do you feel about KOUTONS product Quality?
quality
excellent
good
poor
very poor
can be improved
Section B
Oxember
Rank 4
Pan Amer
Rank 3
Allen Solly
Rank 2
P.E Rank 1
0 2 4 6 8
What is the price range per month you shop in other brand?
N Valid 11
Missing 0
Mean 2.00
Median 2.00
Mode 2
Std. Deviation .447
Frequenc Valid Cumulative
y Percent Percent Percent
Valid below
1 9.1 9.1 9.1
1000
1000-2000 9 81.8 81.8 90.9
2000-4000 1 9.1 9.1 100.0
Total 11 100.0 100.0
What is the price range per month you shop in other brand
below 1000
1000-2000
2000-4000
very often
occasionally
rarely
Section C
Occupation
Cumulative
N Valid 29 Frequency Percent Valid Percent Percent
Missing 0 Valid salaried 6 20.7 20.7 20.7
Mean 4.69 Govt.service 2 6.9 6.9 27.6
Median 7.00 self employed 3 10.3 10.3 37.9
Mode 7 business 3 10.3 10.3 48.3
Std. Deviation 2.579 student 15 51.7 51.7 100.0
Total 29 100.0 100.0
Occupation
salaried
Govt.service
self employed
business
student
below RS20000
RS20000-40000
above 40000
Chapter 7: Summary of finding, suggestions and
recommendations
Summary of findings
It was found that most of consumer prefer formal wear than casual wear
@Kouton‟s
Consumer feel Kouton‟s product express their style
It was found that most of the consumer express their dissatisfaction
toward the quality of the product
Consumer expressed their that Kouton‟s product are affordable
Repositioning of Kouton‟s to family is accepted by most of the consumer
who participated in the survey
In survey it was found that most of consumer feel the product as
discounted good and inferior quality product
It was found the place of stores are not in even
Suggestions
From above analysis and research we found those customers are accepting the Kouton‟s
repositioning into family store. Customer expecting quality products from Kouton‟s brand
and value addition.
Bibliography
http://www.scribd.com/search?cat=google&cof=FORID:10&cx=007890693382555206581:7fgc6et2h
mk&ie=UTF-8&q=kouton&sq=Search
http://www.scribd.com/search?cat=google&cof=FORID:10&cx=007890693382555206581:7fgc6et2h
mk&ie=UTF-8&q=marketing+reserach+on+kouton&sq=Search
http://www.scribd.com/doc/19769831/Effect-of-Discounted-Apparel-Brands-on-Local-RetailersLike-
Charlie-Koutons-etc
http://www.scribd.com/doc/21038240/KBSL-Branded-Retail-Sector
http://www.scribd.com/doc/15049406/Retail-Tough-Times-Continue
http://www.scribd.com/doc/15049414/Retail-Liquidity-Management-Key-to-Success
http://www.scribd.com/doc/15049414/Retail-Liquidity-Management-Key-to-Success
http://www.scribd.com/doc/11761140/Navneets-MT-Final-Report
http://www.scribd.com/doc/6390626/Strategy
http://www.bharatbook.com/Market-Research-Reports/Booming-Men-Apparel-Market-in-
India.html
http://www.bharatbook.com/Market-Research-Reports/Report-On-Indian-Retail-Industry.html
http://www.cygnusindia.com/Industry%20Insight-Apparel%20Retailing%20in%20India-
Executive%20Summary%20&%20TOC-March%202004_.pdf
http://www.rncos.com/Report/IM607.htm
http://www.prlog.org/10121683-india-branded-apparel-growing-in-popularity-amongst-middle-
class-women.html
http://www.hinduonnet.com/businessline/2000/08/08/stories/190802rt.htm
Study on KOUTONS repositioning
Dear customers,
We, the students of IFIM Business School are conducting a survey on
“Repositioning of Brand KOUTONS”. Your personal information will be kept confidential and
data is used only for our academic project.
SECTION-A
Q.1: Do you buy KOUTONS product?
Yes NO
Q.2: You shop @ KOUTONS mainly for (Give your choice of preference)
A. Kids wear
B. Formal wear
C. Suits
D. Party wear
E. Regular
A. 0-1 years
B. 1-2 years
C. 2-4 years
D. above 4 years
A. 0-2 years
B. 2-4 years
C. above 4 years
Q.5: Your view point
A. Excellent
B. Good
C. Poor
D. Very poor
E. Can be improved
Q.7: What is your opinion about KOUTONS repositioning its outlets to family stores?
A. Excellent idea
B. Ok
D. I have no idea
Q.8: Do you Feel KOUTONS should continue with offer sale through out the tear?
Yes No
Ans:
..................................................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
.........
Ans:
.......................................................................................................................................
......................................................................................................................................
.....................................................................................................................................
SECTION-B
Q.9: Which is the other brand do you prefer basically for clothing? (Give your choice of preference)
A. Peter England
B. Allen Solly
C. Pan America
D. Oxemberg
E. Others
If others please specify:.......................................................................
A. Bellow 1000
B. 1000 to 2000
C. 2000 to 4000
D. Above 4000
Q.12: What you prefer @ other brands (Give your choice of preference)
A. Formals
B. Party wears
C. Casuals
B. Occasionally
C. Rarely
D. Never
Q.14: Would you prefer to shop @ KOUTONS in future?
A. Definitely
C. May be
D. Cannot say
SECTION-C
Salutation:
Mr Mrs Ms
Occupation:
Salaried Govt. service Self employed Business Retired
A. Below 20
B. 20-30
C. 30-40
D. above 40
We appreciate your patience and cooperation for providing your opinion about KOUTONS products.
Thank you.