Name of the Innovation: Niche Garments Retail

Team Name: iCON

Institute Name: Acharya Institute of Management and Sciences, Bangalore

Team Members:

Mr. Lalit Mohan Jha

Email id:lalit_mohanjha@yahoo.co.in

Ph No: 9886198275

Ms. Monalisa Senapati

Email id: monalisa_senapati@yahoo.com

Ph No: 9342201459

Contact Address: Acharya Institute of Management & Sciences

1st Cross, 1st Stage, Peenya, Bangalore-58

Executive Summary
“Clothing says a lot, but you can say it better.”
According to our research and analysis we have noticed that the customers are not very
much satisfied from the garment retails. In search of there need from garment retails the
customers are roaming from one outlet to another. We have taken the sample size of 300 that
consist of:-

Potential customers Nos.

1.Employee from Software sector(Male) 79

2. Employee from Software sector(Female) 64

3.College Students 84

4.Employee working in others sectors 37

5.House Wives 21

6.Others 15

We have also noticed in our questionnaire that the customers expect following facilities and
services from the retail outlets: -

PRODUCT ADDITION

1. CAR AND BIKES WATER SERVICING AND POLISHING

2. PHARMACY SHOP

3. CHILD CARE CENTER

4. BEAUTY SALOON

5. OPEN ENDED CINEMA THEATER

6. OTHERS (DIFFERENT RELIGIONAL VEDIO AND AUDIO CDS,

BOOKS ONE DIFFERENT DEPARTMENTS)

Due to time consistency, we have only concentrated and done in depth study only on
garment sector.

Niche garment retailing emerging as a sunrise industry in India and is presently the one of the
largest Employer. The Internet represents approximately $ 6.5 million of E-commerce
purchases. Throughout the year Women have been constant and dominant consumer in the
industry.Womens apparel sales growth was 3.7% and men’s apparel growth was 4.1%, Girls
& Boys apparel rose 0.5% & 3.8%.Womens apparel accounted for 52% of all apparel sales.
The men segment accounted for 31% of total apparel sales.

COMPETING AND COMPILMENTRY PRODUCTS in a broad view, the retail apparel industry
competes with all other sector in the retail industry. These different sectors include Electronics
retailers, Wholesales, Other discount stores, Shoes stores convenience stores and so on.

We felt it is worth recommending you the ideas given above specifically GARMENT SECTOR
piloted Bangalore city.
 Introduction
The business ideas is designed for the innovative product and strategies particularly for
garment sector namely:

1. Designer wear at the weekends.

2. Business executive dresses for females.
3. Combo, party & wedding wears.
4. Regional wears.

1. Description

1.1)Designer wear at the weekend: This type of strategy is no where in India in

retail market, as of now it is available only in exclusive showrooms. We will sale
designer wear like Ritu Beri, Manish Malhotra, Satya Paul, Milazzo etc. exclusively
at the weekend.

By, Maria Diochinova By, Miulazzo

1,2) ,Business executive Dresses: This will consist of complete executive apparel
such as blazer, tie, trouser, shirts, socks, shoes, tie pin, formal shirts, wrist-watch, sun glass,
and other accesaries.
 3. Combo party and wedding wears: We will introduce the combo
party and wedding wears of apparel. We will introduce matching groom and
bride wears so as to enhance their beauty, with minimum time and effort.

1.4) Regional Wear: This will be an invention in retail history- introducing different regional
dresses to the customers.We will devide the whole nation in two broad categories,i.e. -a)
North Indian: Gujarati, Rajasthani, Bengali, Punjabi, Sambalpuri, Banarsi, etc.

b) South Indian: Kanchivarm, Pattu Sari, Dhoti, Lungi etc.

MARKET RESEARCH:-

India is a strong competitive in the world’s garment market. The latest trends are going
towards the fashion. Apparel sector is one of the booming and glamorous industries among
others. From several researches done in the men apparel market in India, it is found that the
market is expected to grow rapidly at Compound annual growth rate (CAGR) of 14.86% from
2008 to 2010, women apparel market is also growing rapidly.

Based on our assessment of General Questionnaire (Shown in annexures), we have come

across various needs of the customer from the retail sector. Our research is based on
people’s opinions and attitudes towards products and services.

We have made the survey in the shopping malls like Garuda malls, Spencer, Big Bazaar,
Forum, Spar mega market, Star Bazaar, shoppers stop, and we have noticed that customer
are not satisfied with the products and services .

We came across that the majority of the customers are not completely satisfied from garment
retailers.

Therefore we realized that there is need for the full solution mainly in garment sector in retail
outlets.

Since the females are mostly attracted towards the garments sector , therefore we found
worth recommending you the plan for complete solution in garments retail industry.

MARKETING STRATEGY:-
A market survey was carried out in Bangalore to find out people’s expectation fron the market

and the varies constrains that resist them from buying the products available in the market.

Enumerators collected data by administering questionnaire (Refer Annexure I,ll) which

involved open and close ended questions. Sample size was 300 and was chosen by the
method of random sampling.

ANALYSIS OF INFORMATIONS:

Percentage and average methods are used as statistical tool for data collection.

1. People with income more than Rs.50000 p.m. income, with family members less than
three want to posses garments with some unique design to maintain their status.
 2. There are vary few people in high income group, those who hardly influnced by the
fashion shown in the cinema.Where as there is a drastic change noticed in the high
middle income group, who vary much influenced by the fashion of actor/actress.
Again middle income customer segment influnce by the brand name with discount on
it.

3. Most of the high middle income group customer find a mall/shop that will suggest
them a complete solution for their fashion/style. Where as people with vary high
income want a mall/shop where they can get a wide range of procuct, so that they
can choose the best one for them.

4. Surprisingly, there is a chank of customer who want follow their state’s traditional
fashion to create a different style for them.

a. TARGET MARKET

On the basis of analysis of income, gender, age, occupation, religion and location of the
people we have choosen the different target customer for our different products.

A. Designer wear: Income group above Rs 50,000/ month (individually)

B. Regional wears: Customers above 25 years of age.
C. Combo party and wedding wear : Income group above Rs. 20,000 (individually)
D. Business Executive:Individual’s incomes above Rs. 15,000/ month.

Note: - Individually =Per capita income

b. PRICING, STRATEGY

1. We will provide psychological pricing with some discounts for Combo offer of wedding
and party wear i.e.; if the individual price of the garments are Rs. X and Rs. Y then the
combo offer Rs.[( x + y)-z%].

2. Business executive dresses for females and regional dresses will be provided with
discount on buying other related commodity .

E.g.
Purchase on Rs. Discount On Product

1000 5% - Perfume

2000 12% - (Perfume + cosmetics )

Designer wear will be arranged through a auction show where initial pricing of the dress will be
started from keeping Y % profit margin on the dress. People would be permited to attain the auction
by purchasing a ticket worth Rs. X. This strategy will help us in attracting the high income segment
and also to avoid unexpected gathering.

Starting bidding price= cost+(cost*y%profit)

Promotional strategies:

We have choosen different promotional strategies to promote different products, as the route
of reaching to diffrent segment of people is vary diffrent.Following are the various ways of
awaring the target customers:

1. Advertisement for designer wear will be given in popular “Fashion Magazins”,

2. SMS through Rediffbol, mobile operator etc. can be used to aware people
about the date,time and place of auction for designer wear. The same media
can also be used for promoting regional and business executive dress.
3. We can send e-mails through internet to aware people about designer wear
and then relunch of the same through e-auction.
4. To promote wedding wears we can give advertisement through banner and
pop-up in various “Matrimonial site”.
5. To promote regional wear, advertisement will be provided in regional
newspapers and magazins like; Kannada, Hindi, English,Bengali etc, that has
circulation in Bangalore. Coupons worth 10% discount would also be
published in the newspapers for garments other than designer wear.

6.There can be advertisements during peak hours in radio FM as it is booming

today.

7.Advertisement would be played during the internal in cinemas as people are

crazy about the movies and cinemas.

8.Hoardings can be placed outside the colleges, famous parlours, Health care
center etc.

9.Future media – Future Group’s own media channel could be used to creat
awareness about these products.
 BRANDING STRATEGIES:

Like other strategies diffrent types of branding has to be adopted for diffrent products.

1. DESIGNER WEAR: Designer wear does not require much of influence by

brand name as “the designer name” itself act as a brand.
2. BUSINESS EXECUTIVE DRESSES: Here three branding strategies can
be adopted to promote the product:
a. Umbrella Branding through “Pantaloon”
b. Individual branding – that will give a joy of experiencing a new
product.
c. Umbrella branding through other famous brands like –Peter England,
Arrow etc.

- among this the first one is the most fesiable as the advantages the
product can gets are:

 It does not incure much of cost in “brand awarebess” as “Pantaloon”

is a well known brand to all.
 Through “Pantaloon” it can get ready made “brand loyal customers.

3. Combo party and wedding wear: To promote this product branding shall
be done under a new brand name, so that the customer can enjoy a new
product. Brand name shall be like ; “Mr.& Mrs.” , “HUM”(a Hindi word that means
“WE”)

4.REGIONAL WEAR: Branding strategy shall be of “individual brending”,

where similar type of designs can be put under one brand, Like
“GHARANA”(Garana is a hindi word that means “Tradition”)

SELLING AND DISTRIBUTION STRATEGIES:

Selling and distribution strategies should be such that it helps the company to
achive the goal.The goal is to deliver the products to its target customer to
develope customer base, and at the end earn healthy profit.

Different alternative selling and distribution strategies for different products are
shown below:

1. DESIGNER WEAR:
 Launch
SOURCES exhibits in the glass the
show case so as to product
Famous advertise the product. through
designer
auction
at Future
group’s
mall,

Relaunched
those
products Unsold Relaunche
through E- d those Unsold
product
sale with a products product in
in E-
minimum through E- auction
auction auction
profit margin

CASH GENERATION CYCLE:

 Ticket for
getting Sponsorship
invitation for – Name of
bidding. the
Bidding- a
open & Revenue=no. sponsoror of
unlimited Of ticket sold the auction
profit. * price will be
printed on
Revenue=c the ticket
ost+(cost*x
%profit)+y%p CASH
INFLOWS

E-sale.
E-auction:-
an unlimited Revenue=cos
means of t+(cost*x%pro
profit earning fit)
from the
entire world.

x%= Initial profit

margin

y%= Unlimited
profit margin

2. BUSINESS EXECUTIVE DRESSES;

 SOURCES Displayed for Unsold On
the first time. garments purchae
Famous brands s of
Designers Revenue=[co Rs.1000
st+(cost*x%) & above
get a
discount
of 5%
on

Exclusive Remainin On purchase of Rs.

Offers for g unsold 2000 & above get a
“would be products discount of 10%
EXECUTIVE’ on(perfume+wrist

Relaunched
the executive
wears
targeting the
students with
a discount
offers.

Revenue=cost

CASH GENERATION CYCLE:

 At the Discount on
first 1000rs
launch purchase

Revenue=[c Revenue=[cost
ost+(cost*x% of executive
profit)]*sales CASH wear+(cost*x%
volume INFLOW of profit)]+[cost
of perfume+(cost
*y%)-5%]
Discount on
2000rs.
Purchases
Exclusive Offers
:

Revenue=[(cost
of executive
Revenue=cost of
wear+(cost*x%of
executive
profit)] +[cost of
wear+(cost*x%profi
perfume+(cost*y
t)-discount
%profit)+cost of
wrist watch x%=Highest profit
+(cost*z%profit)] margin
-10%discount
y%=profit margin of
perfume

z%=profit margin on
wrist watch

x%>y%>z%
3, COMBO PARTY AND WEDDING WEAR

For the Exclusive

Sources first time Unsold offer
launching garment
Boutique Couple
combo s
Designer
price will purchasing
be lower above
than the rs.10,000
individual will get a
price exclusive
pass for
attening
special
CASH GENERATIG CYCLE:

At the
Exclusiv
first time
e offer
launched

Revenue
=[ cost + Revenue
(cost*x%)
Cash = [cost+
]*sales

x%= Initial profit

margin

4. REGIONAL WEAR

Source
Pilled up to
From the relaunched
Showcase Unsold
origin at religious
selling regional
eg:Jaipuri festival
wear
langha
from

Sales Jodi offer

offer
on
Deliver purchasing
the male/female
remaning wear
wear to customer will
the get a free gift
customer for
with female/male
CASH GENERATIG CYCLE:
At first lunch On Jodi Offers

Revenue= Revenue=[cost
+(cost*x%)-
[cost+( Rs.y)]*sales
cost*x%)]*sale volume
Cash
inflow

On discount
At festival time
Revenue=[cost
Revenue=[cost+(c
+(cost*z%profit)
ost*x%profit)]*sal
]*sales volume
es volume

x%= Initial profit margin

Rs. Y = price of gift

z%= profit which is less than x%

FINANCIAL PLAN
cost -revenue estimation of regional, business
executive, combo party and weeding wear

Revenue= no. Of dresses sold * price

Avg. = Total(
Types of dresses No. Of dresses sold p.a. * Price/dress in rs.)

combo party and wedding 500000

wear 250 * 20000 0

Business executive
dresses 150 * 3000 450000

Regional wear 100 * 800 80000

553000
Total 500 0

cost= rent+salaries

Types of expences cost/year

Rent 116640

Salaries of sales
representative 480000

Total 596640
 493336
Profit 0

Rent= 36sq/ft area for each garment*Rs90/sq ft*3(types of dresses) =9720rs/ month

annually= 9720*12= Rs.116640

Salaries= Two representative for each type of garments*Rs 5000/employee*3(types

of

dresses) = rs. 30000

Annually= rs. 30000*12= Rs. 360000

Salary of manager= Rs.10000*12= Rs 120000

Rs.480000

Tax is excluded

Cost -revenue estimation for Designer wear

No.of dresses sold p.a. *price = Total

20 28000 560000

Other incomes

Tickets

(200 tickets/month
*12)2400 *300 720000
Sponsership

(8 Sponsership /month
*12) =96 *2000 192000

Total 1472000

Cost= rent+salaries+ royalty+ printing

rs. = Total

Rent 100sq.ft.*rs.150*12months 180000

salaries

sales representative

2members*rs.5000*12months 120000

Manager

1member*10000*12months 120000

royalty 50% of sales price ( 560000*50%) 280000

printing 70tickets*rs.25*4weeks*12months 84000

Total

Total 784000

Profit 688000

Note- Royalty will increase

with the bidding price.
Competitive Business Strategy

As the product started growing in the market, new competitors and substitutes of the product
rise in the market. Our product is such that, it has the following competitive strenghs to protect
itself from the competitions.

A. PRODUCT’S STRENGH ANALYSIS:

1. Designer wear is most attractive one; it will lead the people towards identing the
latest fashion.

2. Regional wear will be innovative in the mall and hence it will attract the customer .

3. Combo will also be a new arrangement and hence it will give the solution for the
choice. E.g. Women’s dress embroiders will be same as of men.

4. Since executive dress for female will also be the new product.

B. SPECIFIC ATTACK STRATEGY:

1.Discount program on product enables the customer to take the other product from the
same mall on discount. This will be the better representation in comparison to the other
mall.

2. Intensive advertising promotion will be done when it will reach growth stage to face
the challenges of competitors.

3, Continious product modification: The type of garments we have selected that does
not need much effort to modify them, The only effort requred is for their presentations.

4. Prestige products like “designer wear” will help in maintaining the status of the
business group and it may futher increase the reputation of Future Group.

6. Promotion of the product through SMS through rediffboll or Chikka messenger will
be the best way for promotion.This type of promotions helps company’s to keep
reminding about the products and as a result psychologically they become a brand
loyal customer.
Conclusion:

This project basically gives us the complete solution for the garments. It shows us the
importance of emerging potential of the high class as well as middle class market.

It will be first time in the history of retail industry. The Desire and Expectation of the customer
will get it through this plan rather than dictating look. The plan will provide people everywhere
with the piece they need to create their own style and judge the master designs. It will let the
customer to feel the master design.

Annuexture 1

QUESTIONAIRE

(1) Name:……………………….

(2) Age………. (4) Email Id:………………

(3)Gender (5) Phone No……………………..

(6) If you have rs.2000 with you, how you will spend that? Show the slap:

Food & Beverage- Electronics Items-

Home Appliance- Cosmetics & Jewellery-

Garments- Weekend Special-

Cinema- Environment/Location

(7)You want to spend major portion of your money on this because of:

Your passion Influnce of others Need Other

(8) Do you think your portion of spend on the above marked is constant?

Yes It varies with situation Certainly not I do not know

(9) Other than above marked product, you would alsso liked to spend on:

1. 2.

3. 4.

(10) Malls you prefer the most rank in accordingly:

Big Bazaar Bangalore Central Cosms Mall

Star Bazaar Garuda Mall Spar hypermarket

Subhiksha Forum More

Relaince fresh Gopalan Mall Nilgiris

Safal Fresh Lifestyle Shopping Complex

(11)You want to go to a particular mall because of its;

Environment Range of products Price of products

Service

Date:……………..

Place:……………… Signature
 Annexture2

GARMENT
QUESTIONAIRE

M/F
(1) Name:………………………. Gender

(2) Age………. Profession:………………………..

(3) Income…………………………………Members in the Family……………………………

(4) Email Id:………………

(5) Phone No……………………..

(6) How often you buy a garment?

 Weekly Monthly Twice in a month Once in
six months

(7) You buy a garment because of-

Design Quality Price

Special offers

(8) Does the brand name matter for you?

Yes always Not always Extremly not

(9) Which combination you like most?

Design&quality Design&price Status&easy availibility

Quality&Price

(6) Which brand you prefer most? Rank it accordingly

Peter England

Louis Phillip Adidas Identity

Nike

Reebok John Player Levis

Lee

Others:…………………………………..

(7) Are you passionate about master design? Yes / No

(8) What resist you from possessing that?

Price Easy Availability Awareness About the Source

 Others……….

(9) Which Shopping Mall do you prefer for the Garments?

Big Bazaar Bangalore Central Garuda Mall

Forums Lifestyle Shopping complex Cosmos Mall

Vishal Meghmart Shoper Stop West Sides

Others if Any……………………………….

(10)Name a tyoe of dress that hardly you can get in Bangalore

.....................................................................

(11)The above you get from;

Personal contacts Patticular Shop/mall(Please name the shop)
..........................

Teleshoping(Please name the show)...........................................

E-shoping (Please name the site)...............................................

Any Suggestion……………………………………………………………………………
…..

Date :……………..

Place:………………
Signature

(
)