Your SlideShare is downloading. ×
Marketing Plan for Fabindia, Ahmedabad
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Marketing Plan for Fabindia, Ahmedabad

9,924

Published on

Its a marketing Plan for Fabindia, Ahmedabad

Its a marketing Plan for Fabindia, Ahmedabad

Published in: Business
1 Comment
3 Likes
Statistics
Notes
No Downloads
Views
Total Views
9,924
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
605
Comments
1
Likes
3
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide
  • Profit upon sales * 100
  • Transcript

    • 1. PGP Project PresentationMarketing Planfor FABINDIA, Ahmedabad
      Presented By:
      NIKITA SANGHVI
    • 2. FLOW OF PRESENTATION
      Introduction
      Current Marketing Situation
      Threats and Opportunities Analysis
      Objectives and Issues
      Marketing Strategy
      Action Program
      Recommendations
      Batch 2009-2911
      Stevens Business School
      Marketing Plan
    • 3. INTRODUCTION
      FABRIC OF INDIA
      India's largest private platform for products that are made from traditional techniques, skills and hand-based processes
      Initially commenced as a village based industry in 1960 by John Bissell
      Links over 40,000 craft based rural producers to modern urban markets
      Promotes inclusive capitalism, through its unique COC (community owned companies) model
      Marketing Plan
      Batch 2009-2911
      Stevens Business School
    • 4. INTRODUCTION
      Fabindia Products
      Batch 2009-2911
      Stevens Business School
      Marketing Plan
      TEXTILE BASED
      • ready-to-wear garments
      • 5. accessories for men, women,
      teenagers and children;
      • bed, bath, table and kitchen linen;
      • 6. floor coverings, upholstery fabric and curtains.
      • 7. Cotton, silk, wool, grass, linen and
      jute are the basic fibres used
      NON- TEXTILE BASED
      • Home Products (October 2000)
      furniture,
      lighting,
      stationery, tableware,
      cane baskets
      selection of handcrafted utility items
      NON- TEXTILE BASED
      Organic Food Products (July 2004)
      cereals,
      grains,
      pulses,
      spices,
      sugar,
      tea,
      coffee,
      honey,
      fruit preserves
      herbs
      NON- TEXTILE BASED
      Authentic Personal care products (March 2006)
      soaps,
      shampoos,
      hair oils,
      pure oils,
      moisturizers,
      body scrubs,
      face packs,
      hair conditioners
      special skin care products
    • 8. INTRODUCTION
      Awards for Fab India
      • Awarded “Best Retail Brand, 2004” by The Economic Times of India.
      • Got “Designer Promoting Indian Craft or Technique award” as Hall of Fame reward.
      Annual Report(2008-09)
      Annual turnover of the company is in the range of Rs 500 crore
      Profit ranges between Rs 35- 40 crore.
      Registered a CAGR of about 58% in the period 2006-2008
      Batch 2009-2911
      Stevens Business School
      Marketing Plan
    • 9. INTRODUCTION
      FabindiaStore locations
      108 stores in 40 major cities of India.
      6 stores in international places including UAE, Dubai, Bahrain, Italy and Rome.
      Online Shopping & Exports to 34 countries
      Batch 2009-2911
      Stevens Business School
      Marketing Plan
    • 10. Fab India: timeline
      Early 80’s
      1990’s
      1999
      2001
      2004
      2006
      2010
      1960
      7
      Batch 2009-2911
      Stevens Business School
      Vision:200 stores and a turnover of Rs.1000 crore by 2011
    • 11. CURRENT MARKETING SITUATION
      • A delighted Customer is our Best Brand Ambassador”
      • 12. USP : quality of the fabric and the cultivated image of ‘Indianness’
      • 13. Does not follow any customer acquisition strategy: focuses on customer retention
      • 14. Key element: word of mouth publicity ( Zero advertising except print ads during promotions ), advertorials, mobile marketing, in-store posters
      • 15. Mystery Shopper Program: to check the customer satisfaction level
      • 16. Motivating factor for the customer: quality and consistency of product and the service
      • 17. Over 83% of Fabindia’ s customers go back satisfied, with 58% being highly satisfied with the brand and its offerings
      SOURCE: Interview of Mr. William Bissel, MD, Fabindia published in The Economic Times, Jun 2009
      8
      Batch 2009-2911
      Stevens Business School
    • 18. CURRENT MARKETING SITUATION
      Batch 2009-2911
      Stevens Business School
      Marketing Plan
      FabIndia Store Format
      • It has designed the stores’ decor and ambience keeping this in mind
      • 19. The layout usually keeps clothes section at the back of the store and the entrance area is utilized for home products.
      • 20. The exclusive jewellery counter is also kept in the fronts.
      • 21. Metros
      • 22. Posh locality
      • 23. All product lines
      • 24. Tier II cities
      • 25. Specific products retailing
    • COMPETITION
      • Garments Based (Shoppers Stop, Pantaloons, Westside, Reliance Trends, Globus)
      • 26. Government Handloom Initiatives (KhadiGramodyog, Cottage Industries Emporium, State Government departments)
      • 27. Designer Boutiques
      Ethnic wear retailers like Khadder, W and Good Things, and Stand alone stores like Shristi, Biba, Anokhi
      • Local tailors who provide customised garments to the customers at reasonable prices
      • 28. Local NGOs selling wares,
      • 29. Regional -Law Garden Market for buying handicraft and Gujarati outfits
      10
      Batch 2009-2911
      Stevens Business School
    • 30. STRENGTHS
      Quintessential Indianness in fabric through the years
      Popular for authenticity of hand-woven fabric
      Sourcing system from rural India
      Strong supplier relationship
      Provision of capital loans (in agreement with banks)
      Leniency on order fulfilment & no-return policy
      100% use of supplier’s capacity
      Sustainable employment opportunities to rural skilled poor
      Employees are given autonomy and hence inducing accountability
      Focus on customer retention instead of generation
      Large chunk of buyers are repeat purchasers
      Product quality improvement done keeping this in mind
      • Word-of-mouth strong enough not to require any advertising
    • WEAKNESSES
      Delays in delivery from artisans
      Opportunity losses due to irregularity
      Difficult to predict quantity and time of thaancoming from weaver
      Also arises as different stores are encouraged to order different stock
      Insignificant spend on marketing communications
      Losing out on attracting new customers instead of depending only on repeat purchase
      Not enough personnel to push Fabindia to greater growth
      Unavailability of people experienced in retail sector
      Unavailability of people believing in the same mission
      More formal processes would face resistance from existing employees
      Untimely delivery of products
      Transport, storage and shelf-life issues of organic foods
      Suppliers were spread pan-India
    • 31. OPPORTUNITIES
      Latent potential of organic foods market
      Leveraging changing consumer tastes & perceptions
      Awareness generation of merit in these foods
      Utilize multi-brand retail outlets and construction groups
      Display of Fabindia products in MBOs and department stores
      Leverages footfalls of the store, increasing likelihood of sales
      Use of Fabindia home furnishings in modular flats of buildings
      If consumer buys this flat or any other, and is impressed, will use Fabindia furnishings
      Leveraging Web 2.0 tools and techniques
      Tying up with matrimonial sites for designer fancy wedding wear
      Interactive website for designing as per individual requirements
      Customization level is high
      Lead time between fixing of occasion date and event can be used for delivery
    • 32. THREATS
      Unorganized local operators
      Handloom retail shops/chains in regional pockets
      Souvenir shops providing indigenous products at lower prices
      Entry of organized brands and companies into retail
      High expected growth & entry of business houses in large ways
      Competitors access funds from conglomerate partners or markets
      Tilt of Indian consumers towards foreign brands
      Foreign brands alter lifestyle choices of the target market
      “Imported” or designer home furnishings have greater ‘flaunt value’ vis-a-visFabindia
      Development of government co-operatives
      Boost in future to KVIC and state handloom units
      Improvement in their ambience and shopping experience
      Rising prices of real estate could hamper growth
      Opening new stand-alone stores will be tough
      Experimenting with formats and markets may not be advisable
    • 33. MARKET SURVEY
      Objective: To explore:
      The affective responses Fabindia’s consumers
      Cognitive responses of Fabindia’s consumers
      Purchasing behavior of the consumers for products of apparel category
      Sampling Design
      Sampling Unit : Customers of Fabindia
      Sampling techniques : Convenience Sampling
      Sample size : Customers -30
      Batch 2009-2911
      Stevens Business School
      Marketing Plan
    • 34. MARKET SURVEY
      16
      Batch 2009-2911
      Stevens Business School
    • 35. MARKET SURVEY
      17
      Batch 2009-2911
      Stevens Business School
    • 36. MARKET SURVEY
      18
      Batch 2009-2911
      Stevens Business School
      Which of the following do you think was the instrumental in your choosing to buy the garments? Rank them on the scale of 1 to 5 with 1 being the most important.
    • 37. MARKET SURVEY
      19
      Batch 2009-2911
      Stevens Business School
      Rate your experience at Fabindia in terms of your satisfaction level for the following: (Highly Satisfactory, Satisfactory, Average, Unsatisfactory, Highly Unsatisfactory)
    • 38. SUMMARY OF MARKET SURVEY
      Batch 2009-2911
      Stevens Business School
      Marketing Plan
    • 39. 21
      Batch 2009-2911
      Stevens Business School
    • 40. 22
      Batch 2009-2911
      Stevens Business School
    • 41. Batch 2009-2911
      Stevens Business School
      Marketing Plan
    • 42. FABINDIA: 2011
      Early 80’s
      24
      Batch 2009-2911
      Stevens Business School
    • 43. FINANCIAL COMPARISONS
      Financial aspects of Fabindia have been compared with Pantaloons
      Though not a direct competitor, it represents the Indian Retail Industry very well
      Financials for its direct competitors such as Anokhi, Khadi Gram Udhyog etc. were not available, restricting comparison
      This assessment contrasts the performance of Fabindia with respect to the biggest retailer of India
      Hence, we get a sense of the feasible options available with Fabindia to raise funds
    • 44. INTEREST COVERAGE RATIO
      Batch 2009-2911
      Stevens Business School
      Marketing Plan
      The interest coverage ratio of Fabindia is far higher than that of Pantaloons. Hence, raising funds through debt is not a big challenge.
    • 45. INTEREST COST AS % OF SALES
      Batch 2009-2911
      Stevens Business School
      Marketing Plan
      The interest cost as a percentage of sales for Fabindia is far lesser than that of Pantaloons. Hence, raising funds through debt is again not a big challenge.
    • 46. PROFIT MARGIN RATIO (IN %)
      Batch 2009-2911
      Stevens Business School
      Marketing Plan
      The PAT as a percentage of sales of Fabindia is higher than that of Pantaloons. Though retail industry works at low margins, Fabindia’s margins are quite high. Hence, raising funds through debt is not a big challenge.
    • 47. OPTIONS AVAILABLE
      DEBT FINANCING
      Pros
      The decision authority stay with them, hence can stick to their mission
      Healthy current ratio (around 2:1 throughout years)
      A very healthy interest coverage ratio (as high as 16 times) which is quite higher compared to Pantaloons, Shoppers Stop etc. (1.5%-2.5%)
      A very healthy debt to equity ratio
      Interest cost as a percentage of Sales is very low (0.006%)
      Family owned
      Cons
      Debt acquired may not be huge
      Loose out on the expertise of other organisations which can be brought in through JVs or investments
    • 48. OPTIONS AVAILABLE
      PRIVATE INVESTORS/ JVs
      Pros
      Huge investments can be brought in
      Professional expertise can be brought in
      Cons
      Decision authority gets diluted
      Emphasis may shift to profit maximisation and hence Fabindia’s mission may get diluted
    • 49. CULTURAL EVENT(ON GROUND ACTIVATION)
      • The FabIndia Website gives information about the various fabric crafts like Chikankari, Kalamkari, Batik etc. for the customers.
      • 50. We will bring this art on ground for them to experience it first hand and also learn it.
      • 51. Every metro will have a 2 day workshop cum exhibition where these artists will put up stalls about these crafts and exhibit the work along with “Live Craft Workshop”, workshops (for more knowledge and interest) for keen audience.
      • 52. It will be called “Know what you wear”
      • 53. This makes the customers more aware of the work put in for their fabric and helps them with their association with brand FabIndia.
      • 54. It will also have a regional food festival at the same time to make it an overall fun and enriching experience.
      31
      Batch 2009-2911
      Stevens Business School
    • 55. “WOMEN OF TODAY”
      • As an extended activity, on weekends FabIndia will have “weekend promotions” with special focus on “Women of Today”.
      • 56. Men can be encouraged to increasingly visit the stores with the women in their lives with offers like “ bring your mom/sis/wife/ girlfriend to shop, and get x% off”
      • 57. FabIndia will tie up with various NGOs like Breakthrough, Jagori etc. for their cause of empowering women.
      • 58. Viral video to be launched in association with Breakthrough ( along the lines of Mann keManjeere)
      Objective-
      The passion group identifies with the theme ““Women of Today” and results in new customer acquisition
      32
      Batch 2009-2911
      Stevens Business School
    • 59. RECOMMENDATIONS AT A GLANCE
      Heavy investments in back-end of value chain
      Supply chain development for efficiency and quality management
      Expansion aiding strong regional presence
      Outlets to counter regional competition
      Sourcing from local suppliers for outlet and other regions will be easier
      Growth through harnessing new customers
      Cannot depend on existing customers to counter competition
      Must create new customers in all segments
      Tie up with different types of graduate schools for talent
      Rural management graduates for managing supply chain and rural initiatives
      Management graduates for helping growth in front-end and retail arms
    • 60. THANK YOU
      Batch 2009-2911
      Stevens Business School
      Marketing Plan

    ×