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Submitted by:
-Sakshi gopal
-Tanisha Agarwal
-Shalini shivankar
-Amogh
MegaTex
Incorporated in 1956
Based in Mumbai
60000sft operations compound
Extremely competent infrastructure and skilled manpower
Competitive advantage of Distinctive sourcing and lean
Manufacturing
Caters to baby boomers, gen x,y,z
Continuous innovation Denims with Biodegradable yarn,
jeans for Hikers, Cyclists
Product Portfolio
M.O jeans(men and
women)
MegaTex
Molly Joe(dresses women)
Sanskriti(ethinic)
No.62(leather)
Market Segmentation
Above
Super premium
3500
1500-
Premium
3500
1500-
Medium
800
800-
Mass
500
250
unorganized
Market Information
57% unorganized, Non-branded denims
Indian Denim market to grow at 15%
85% mens segment
9% women
6% children
Major production in western and northern parts of India
Low level of Entry barrier
Low level of differentiation
High level of imitation
Non- automation
Ever Changing trend
Maximus
Maximus retail limited est. in 1997
Has approximately 250 brands comprise of private labels and
licensed brands
Retail space one of the highest in india
Accounts for 28% sales revenue of MO jeans
What are Private Label brands?
Phantom Brands
Products (or services) which are generally manufactured or provided
by one company under another company's brand are known as
private label
Commonly referred to as OEM products (Other Equipment
Manufacturer)
Cost associated with Private Label Manufacturing?
Private labels reduce COGS and thus effect the bottom line directly
private-label products are easy to produce in volume and
inexpensive to manufacture
operating costs are low, You can make and ship all your products to
one customer.
organizations try to manage their private-label business in separate
divisions to compete better with the lean cost structures of private-
label-only manufacturers. In such private-label manufacturing
cannot be contained, and inevitably the private-label goods
cannibalize national-brand sales.
What are the factors that favour private-label penetration?
Increased Margins.
Reduced Competition
Brand Builder
Compensation Booster
Retail sales volume
Price differentials between national and store brand
Strategic choices for Private Label from Maximuss perspective