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Marketing plan for smartweave to india

A marketing plan to expand smartweave, uk to india by means of licensing

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Marketing plan for smartweave to india

  1. 1. 1 Executive Summary This report aims to develop an international marketing plan for SmartWeave, a clothing retailer of quality formal shirts for men and women with a unique feature that prevents sweat marks, with the ultimate aim of internationalizing in India. Beginning with the background of the company, the report states a brief description of the product including the unique selling point followed by SWOT analysis in order to analyze the company’s strengths and weaknesses. Also opportunities and threats have been identified further. Examination of the target country is shown with the help of formal country screening process in order to identify the reasons behind choosing the target country including Segmentation, Targeting and Positioning, Porter’s five forces, country merits and demerits, followed by a complete competitor analysis. Subsequently, the most feasible entry mode selection is outlined including the merits and demerits in comparison to other modes and the reasons behind strategy implementation. Taking into account firm and products characteristics, marketing mix has been determined illustrating the four major P’s of marketing. After the analysis of the company and the product in host and targeted market, conclusions were drawn in the proposed plan.
  2. 2. 2 Contents 1.0 Introduction……………………………………………………………….…5 2.0 Competencies of the firm………………………………………………..…6 2.1 SWOT Analysis……………………………………………………….6 3.0 Market Audit………………………………………………………………....7 3.1 Screening Process……………………………………………………..7 3.2 Eclectic paradigm………………………………………………………8 3.3 Advantages/Disadvantages of Working in India………..…………..9 3.4 Segmentation…………………………………………………………..10 3.5 Targeting……………………………………………………………......10 3.6 Positioning………………………………………………………………11 3.7 Porter’s Five Forces……………………………………………………12 3.8 Competitor Analysis……………………………………………………13 4.0 Market Entry Strategies……………………………………………….…....15 4.1 Foreign Market Entry Strategy………………………………………...15 4.2 Factors influencing choice of entry……………………………………15 4.3 Value Chain……………………………………………………………..16 5.0 Marketing Mix Strategy……………………………….………….………….18 5.1 Product……………………………………………..……………...……18 5.2 Place………………………………………………..............................20 5.3 Price………………………………………………………..…………....22 5.4 Promotion……………………………………………………..……......23 6.0 Conclusion……………………………………………..............................25
  3. 3. 3 7.0 References…………………………………………………………………26 8.0 Appendices…………………………………………………………………32 Appendix A………………………………………………………………...32 Appendix B…………………………………………………………………34 Appendix C…………………………………………………………………35 Appendix D…………………………………………………………………36 Appendix E…………………………………………………………………36 1.0 Introduction
  4. 4. 4 SmartWeave is a small UK based clothing company, which provides a wide range of sweat-free shirts for the consumers. The organization aims at providing formal shirts with the same quality like any other shirt but with a different SmartWeave technology that prevents sweat-patches. Oliver Van Emden & Bradley Rose are two former Manchester graduates behind this splendid technology who took over 8 years to solve the problem of sweat marks and implement this idea. Either going for a job interview, on a date, college presentation or travelling to work, SmartWeave offers an extensive span of choices for men and women with high quality look and feel of freshness throughout the day. SmartWeave produces high-end cotton shirts with a technology that can be considered the most innovative one, which uses a unique technology that has all the benefits of regular cotton with the advantage of concealing sweat marks. With the Indian market becoming more fashion conscious and a growing middle class, SmartWeave can use the value added feature of their technology as a big opportunity for them to further internationalize in other countries and capture a good market share. 2.0 COMPETENCY OF THE FIRM
  5. 5. 5 2.1 SWOT Analysis Figure 1 - SWOT Analysis of SmartWeave 3.0 MARKET AUDIT
  6. 6. 6 3.1 Screening Process The tables 1-3 (Refer to Appendix A) have been used to assess the best host location available to our company in order to internationalise in Western Europe. The initial screening process has been used to shortlist the four best host countries available amongst 15 emerging economies based in South & Latin America, Asia and Eastern Europe, with the exception of South Africa (Bloomberg, 2013). Brazil, Mexico, India and Indonesia were shortlisted on the basis of five criteria’s, the most important being the average temperature (all above 20 C) followed by huge population and high GDP. To ascertain the best option, six criteria’s with ranging weightage were used with the highest consideration allotted to the growth rate of Household final- consumption expenditure per capita and its growth in 2013 as it states the overall expenditure made by people on consumer goods (Data.worldbank.org, 2015). It is closely followed by population between the ages of 15-64 which consists all three of our target markets. Although demographic window of opportunity is generally used to determine the years a country’s work force is expected to dominate the world work force population but it has been weighted high in our screening process as it also refers to the median age of the population and if & when our target market is the prime population in the country (Voss, 2014). Overall, India emerged as the most suitable opportunity amongst various emerging economies (Climatemps.com, 2015). Alongside the above statistics, the motivation behind our consideration of the biggest emerging economies and specifically India is the market seeking opportunity it poses to our firm. With one of the fastest growing apparel industry, market share is in contention. Although M&S have introduced a similar sweat- free line of clothing, its presence in India is limited and our immediate competition in this technology is very low. 3.2 The Eclectic Paradigm
  7. 7. 7 Figure 2 – OLI Framework Ownership advantages The company SmartWeave possesses the following ownership advantages:  SmartWeave has a worldwide patent, which is valid for the next nine years.  Because of this, even though SmartWeave enters the Indian market either through licensing or with a partner, it still possesses all the rights to the technology and thus enjoys ownership advantages. Location factors- country specific advantages  SmartWeave plans to enter the Indian market through licensing.  They can be broken down into three factors i.e. economic, social and political.  SmartWeave enjoys an economic advantage because of the huge population of India with a growing middle class, which serves as a perfect clientele base for the company.
  8. 8. 8  Socio-cultural advantages are enjoyed because psychic distance between UK and India is not very high, and the problem of sweat-marks is a universal problem.  In the present day India, all the international companies enjoy a political advantage. 51% FDI has been allowed in retail and international companies are being welcomed with an assurance of a smooth working environment as well as a stable government. Because of all the above factors, SmartWeave enjoys a location advantage in India even after choosing licensing as its entry mode and thus the OLI framework stands contradicted. Internalization  Internalization couldn’t be considered an option for SmartWeave because of the limited resources that restricted it from going for a JV or a WOS.  Thus Externalization has been chosen as a mode to enter the Indian market, which has been explained at a later stage in the report. 3.3 Advantage and Disadvantages of working in India 3.3.1 Advantages  India’s economy is predicted to grow more that 7.5% in 2015 and about 7.9% in 2016 (International Monetary Fund, 2015). Because of this the upper middle class of the country is growing who has a higher disposable income, this will result in a higher purchasing power (The Times of India, 2015).  Investor friendly policies and incentive based schemes.  Positive attitude towards western brands  Stable political and social environment which is conducive for businesses  Hot climate in the Indian sub-continent that will result in a higher demand for this product. 3.3.2 Disadvantages/Risks
  9. 9. 9  Corruption, bribery and corporate frauds had been on a rise since 2010 because of which the credibility of India has been seriously affected  The ranking on the World Bank index of ‘ease of doing business’ amongst 189 countries saw India’s ranking fall from 131 in 2012 to 134 in 2013  Crime rate was on a rise for a long time which made India a risky destination to make investments. 3.4 Segmentation Table 5: Demographic Segmentation of SmartWeave in India Criteria Demographics Age 18 - 45 Gender Male & Female Social Class Upper middle class, upper class Location Metropolitan cities which fall under the category of Tier 1 via Shoppers Stop, and rest of India via Flipkart Occupation Upper levels of corporate, business and service sector 3.5 Targeting Target A: University Students & Graduates Age: 18 - 25 Description: The young population can be characterized as early adopters and often novelty seekers. This target group, if won over, will provide us a market base for many years to come. Target B: Young Working Population Age: 25 - 35
  10. 10. 10 Description: This target segment represents the population which is very keen towards self-image, quality & comfort and will generally have a good job posting. Target B: Senior Level Working Population Age: 35 - 45 Description: This target segment will provide us a population of senior working population at a high-ranking post. As per the results of our survey, we will be heavily targeting the female population in this age category as their spouse purchased 33% of our respondents’ formal shirts. 3.6 Positioning Considering that our target market is vast, buying behaviour of each individual is heterogeneous and cannot be standardized. We have highlighted the major behaviour patterns amongst potential customers from our target market:  As per the hierarchy of needs suggested by Abraham Maslow (McLeod, 2007), our customers would fall under the fourth level of needs i.e. Esteem needs where in customers would purchase our premium product to build up their self-esteem and prestige level.  Indian customers tend to be price sensitive when considering a purchase, but customers targeted by our firm will instead be more oriented towards quality, comfort and overall value of the product. In a research conducted at the Vellalar College for Women in 2010, respondents of their survey ranked quality, design and comfort as the three most important factors affecting a purchase decision regarding formal shirts (Devi et al., 2010). In a similar study conducted by Krishnamal College for Women in 2014, quality and comfort were ranked one and two respectively as the most important factors (Indrani &
  11. 11. 11 Kanimozhi,2014).  Customer loyalty towards our product will be a requisite as higher frequency of purchases from a repeat customer is a significant form of income for a premium apparel brand. 3.7 Porter’s five force model Figure 3: Porter’s Five Force-Model (Tanner & Anne Raymond) A. Threat of new entrants - High  Company is at an infant stage of the PLC.  Low entry barriers in India because of the new government formation that supports foreign investment  Brand loyalty and recognition being one of the most important factors for a company, which attracts big range of middle and high-income group of people makes this company a threat by branded products.  With the companies lack of resources and experience it can prove to be an advantage for other brands. B. Threat of substitute products - Low  The unique product of the company is something that is only possessed by M&S, which is still in its infant-stage. This lowers the threat of new substitute products in the market (Arthurs, 2012).
  12. 12. 12 C. Threat of competition - High  With the increase of formal clothing market in India, the company has high risk of competition with renowned brands like Zara, Marks & Spencer, Louis Philippe etc. D. Bargaining Power of Suppliers - Low  The bargaining power of suppliers is low because SmartWeave itself owns the only fabric mill that has the skills to manufacture such technology. E. Bargaining Power of Buyers - High  The bargaining power of buyers is high because of the presence of low switching cost for the customers and also a wide variety of readily available shirts from other market players if they are not satisfied. 3.8 Competitor Analysis Table 6-8: Competitor analysis of M&S, Zara & Louis Philippe Marks & Spencer Overview Biggest clothing retailer in UK trying to expand itself in the emerging markets Strengths High brand recognition Wide variety of products Weaknesses Not many stores in India A weak marketing strategy Revenue Rs. 280 crore No. of Stores(2013) 36 Average price of shirts Rs. 2,400 (Reuters, 2013), (Butler, 2013)
  13. 13. 13 Zara Overview Zara, a Spanish company who has established itself as a brand for fashionable clothes at a low cost. Strengths Fast changing designs Inexpensive but fashionable Weaknesses Fierce competition Possible imitation of goods Revenue Rs. 500 crore No. of stores (2014) 18 Average price of shirts Rs. 2,800 (Malviya, 2014) Louis Philippe Overview One of the oldest and best known names in India for formal shirts Strengths High brand reputation Vast reach in India High brand loyalty amongst customers Weaknesses Preferred by people over 45 years of age Revenue Rs. 1,200 crore No. of stores 200 Average price of shirts Rs. 2,600 (Louis Philippe, 2015), (Chengappa, 2015) 4.0 MARKET ENTRY STRATEGY 4.1 Foreign Market Entry Strategy
  14. 14. 14 Our company, SmartWeave has chosen to internationalise in India via licensing. After years of successful online retail all over the world, the company has planned to make its presence in the Indian apparel market with the help of Flipkart, India’s largest online retailer and one of India’s most established multi- brand retailer, Shoppers Stop. As per the tie-up with the two retailers, our company will be acquiring store space in all of Shoppers Stop’s outlets located in Tier 1 cities and will be listed on Flipkart’s formal shirts section. (Mishra, 2015) Considering the agreement with Flipkart makes our products accessible to all of India, our scale and speed of entry will be high. But the entry process can be phased over time, as there is no time-scale, and products can be gradually transferred to their warehouses. 4.2 Factors Influencing the Choice of Entry A. Lack of Experience - In almost a decade of existence, our company has only used online retail as a mode of operation. With no physical presence, the company has no experience or knowledge of operating physically. As the only mode of internationalization has been direct exporting, our further options are limited to intermediate modes like Licensing, Franchising, Joint Venture. B. Uppsala Model - The model essentially highlights that a firm should internationalise via modes with low commitment like exporting and gradually increase the commitment over time. Our company has been using online retailing as a form of exporting to countries all over the world, and is now following the Uppsala model’s progression strategy. (Munjal, 2014) C. Resources - Along with the lack of knowledge, our company does not have the resources required like capital to internationalise using foreign direct investment modes like joint venture and wholly owned subsidiary.
  15. 15. 15 Thus, licensing provides a cheaper route to a fast growing apparel market. D. Local Sourcing - India’s policy for any FDI over 51% in the retail sector includes a rule where a company has to locally source 30% of its materials (Iflr.com, 2014). This rules out the possibility of any form of FDI, as only one production mill is entrusted with the handling of all the manufacturing and especially, the patented know-how of our products (Smartweavestore.com, 2015). 4.3 Value Chain Analysis Figure 4 – A General Value Chain Model (Michail, 2011) The value chain analysis is considered to be one of the most important tools of marketing proposed my Michael E. Porter, which clearly states that value chain should be able to determine which activities of the firm are significant and which ones could be enhanced in order to achieve the competitive advantage. From the figure above, it clearly states the primary and the supporting activities where the former states the physical creation of the product and the latter explains the assistance required in order to carry out the primary activities. In case of
  16. 16. 16 SmartWeave, the elements which will be transferred to India, our target country include the following.  Outbound Logistics: Logistics is an important element for the final delivery of the products to the target consumers. SmartWeave’s outbound logistics including warehousing will be handled at the UK and Mumbai headquarter which is established keeping in mind the distribution of the finished goods to Flipkart and Shopper’s Stop Outlets in India for the final reach to the customers and also the stock control & handling can be maintained so that the above mentioned outlets can contact the Mumbai headquarter in case of return policies and the refilling of the stock demanded.  Marketing & Sales: From the survey conducted in the Indian market SmartWeave has established the correct target group, segmented the products and positioned it according to the consumers. This element of value chain involving the promotional strategies and sales to be conducted are transferred to India including the social media marketing and college fests that will be handled by SmartWeave’s Mumbai office.  Service: The most important of all the elements for the maintenance of product’s performance is service. The company decided to transfer this element, as it would be easier for the Mumbai headquarter to maintain things like maintenance, repair, and warranty and after sales. In order to enhance and maintain the value of the product  Firm Infrastructure: SmartWeave needs to set up a Head-Office in Mumbai which handles activities like planning, finance activities, accounting and rest of the routine work of the organization so that day to day work can be handled at a local headquarter in order to achieve the organizational goals efficiently. 5.0 MARKETING MIX STRATEGY
  17. 17. 17 5.1 Product Figure 5 – Levels of a Product Core benefit  A SmartWeave shirt pools all the important criteria’s affecting buying behaviour – quality, comfort, self-image. Actual Product  Features - The fabric produced by our mill ensures that the shirts remain light-weight and single layered and in turn, keeps the user fresh and dry (Smartweavestore.com, 2015).  Quality – 100% cotton fabric SmartWeave shirts guarantees its users the best quality, matching any competitor’s high quality shirts.
  18. 18. 18  Design – As part of its strategy to compete in the premium shirt section, SmartWeave keeps its product line updated with the current market trends. Augmented product  Delivery- Shirts can be delivered in any part of India when ordered online through Flipkart, this delivery is free of charge and has an option of cash on delivery. If the customer dislikes the product, it can be returned directly to the delivery-man.  After Sales Support and Customer Service- SmartWeave Customer support is available on its website and it helps the users about everything from using the shirt for maximum efficiency to maintaining it for a long time in its same good condition. BCG Matrix Figure 6 – BCG Matrix of SmartWeave (Refer to Appendix D) Relative Market Growth Relative Market Share High High Low Low Question Mark Cash Cows Dogs Stars SmartWeave
  19. 19. 19 5.2 Place Integrated supply chain analysis Figure 6 – An Integrated Supply Chain Model (Biz-development.com, 2015) Suppliers and Manufacturers SmartWeave only sources cotton yarn from its suppliers in the United Kingdom itself. The Production of SmartWeave sweat-free shirts is an extremely difficult task and tis process has been taught to only one cloth-mill in the world. This mill is owned by the smartweave company and thus can be sure about getting a smooth supply for the products. Distributor  The UK Headoffice will handle the outbound logistics for our company. It will see to it that the Shirts are available as per the orders from India and are shipped in the required quantities.
  20. 20. 20  To handle the proper distribution of our product in India, an office will be opened in Mumbai, the financial capital of India. This office will see to the distribution of shirts to various shoppers stop stores (multi-brand store) and Flipkart (online retailer) warehouses across the country.  This office will also work towards maintaining and growing relations with the various partners of our company in India.  Inventory for the product is handled in the warehouses of Flipkart and SmartWeave. We will be supplying in all a hundred thousand shirts in the initial stage to both these companies based on the calculations below. (Refer to Appendix C) Retailer  The retailers for SmartWeave shirts in India have been carefully decided after doing a survey of preferences of Indian customers for buying formal shirts.  50% of the people prefer buying formal shirts from multi-brand stores and 30% like buying them online.  For people inclined towards buying clothes from multi-brand stores, we have licensed Shoppers-Stop to sell our clothes in its 35 stores across the Tier-1 cities i.e. Mumbai, Delhi, Hyderabad, Bangalore, Chennai, Kolkata.  To cater the online shoppers, we have entered into exclusive online partnership with Flipkart, the biggest online retail website in India. Consumer  The target market for the SmartWeave shirt has been divided into three different segments.  It has been mentioned in detail in the Targeting section of the report.
  21. 21. 21 5.3 Price Our brand SmartWeave is categorized under the premium products section due to the high quality level and the added value of sweat-free technology. We will be following premium-pricing strategy, where we will charge a slightly higher price as compared to our competitors. As mentioned in the competitor analysis (Refer to Appendice B) our competitors in the formal shirt category have an average price of Rs 2400 – Rs 2800. Table 10 – Different Pricing for Different Products Product Category Price Traditional Fit Rs 3099 Slim Fit Rs 3299 Tailored Fit Rs 3499 In deciding the selling price of our shirts, the factors, which had a significant effect, are listed below: 1) Custom Duty – In order to import goods to India from United Kingdom, the custom duty including countervailing duty and CESS is approximately 29.441% (Icegate.gov.in, 2015). 2) Retailer mark-up – As a part of our selling strategy via Flipkart and Shoppers Stop, the retailer’s average mark-up rate is approximately 6 – 10% (Rai, 2013). 3) Value-Added Tax – Varying from state to state, the VAT rate fluctuates from 5 – 15% on the price of the shirt (Worldwide- tax.com, 2015).
  22. 22. 22 5.4 Promotion Figure 7 – Types of Promotional Tools Promotion, an important tool of marketing mix is essential in integrated communication and under clothing industry is of utmost importance in creating an impression in the mind of the consumers and adoption by the group targeted so that the product can gain acceptance by public with the help of promotional activities like social media marketing, PR activities and sales promotion. SmartWeave in order to gain acceptance form the consumers of the Indian market has adopted three major promotional elements:  Advertising: Social Media Marketing Facebook and Instagram are among our selected promotional tools, as it would help our customers know about our company and vice versa. With the rising trends in social media ecosystem in India and with the largest youth demographics, our company chose Storypick and ScoopWhoop because of the rising trends of storytelling to connect to large group of consumers (Naidu, 2014). These companies handpick unique stories to help it reach as many as possible (ScoopWhoop, 2015). Advertising •Facebook •Instagram •Scoop Whoop •Storypick Sales Promotion •Flipkart •Discounts during festivals Public Relations •College Fest Campaigns
  23. 23. 23 They have a mass reach of about 10lacs and 6lacs respectively on their Facebook page. From our recently conducted survey, social media advertising had an impact on almost 60% of our respondents to make a purchase.  Sales Promotion: Entering in an exclusive online partnership with Flipkart will result in it taking up the marketing of our product using various medias. Another aspect of our sales promotion will be targeting the consumers during national festivals like Diwali & Eid with offers and discounts. As per our survey, over 50% of our respondents purchase formal shirts during a sale and approximately 20% purchase during a festival period. Combining the two factors will allow us to target another customer segment.  Public Relations: The company plans to use college Fests to connect with the youth of cities like Mumbai and Pune. The Mood Indigo held in IIT, Mumbai has a footfall of 104,000 with 3,000 colleges coming from all over India (TNN, 2015). We plan to sponsor a fashion-show and reach out to people through gifts, ads, etc. The Model-United-Nations held in Symbiosis, Pune would serve as a platform to connect with the youth who prefer wearing formal shirts and wish to serve in a business environment.
  24. 24. 24 6.0 Conclusion On doing a research about the Indian apparel market, a clear understanding about the correct mode of entry to be chosen, the distribution channels, promotion tools as well as the various competitors in the market have been understood. Various academic theories as well as models have been used to do the analysis based on secondary information available online as well as the primary information collected by us using a survey of eighty-one respondents. The research suggests that this product holds a high potential in the Indian market owing to its huge population combined with the growing economy and the hot weather of the Indian Sub-Continent.
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  31. 31. 31 Appendices Appendix A: The Screening Process Table 2 - Preliminary Screening Process Country GDP ($billion) Population (million) Ease of doing business Risk (Out of 100) Average Temperature (In Degrees) Brazil 2245.7 200.4 120 63.22 23 Chile 202.34 17.61 41 73.61 14 Mexico 1260.9 122.3 39 58.13 21 Peru 277.19 30.37 35 56.7 20 Colombia 378.41 48.32 34 58.72 24 Russia 2096.8 143.4 62 56.83 -1 Poland 525.86 38.53 32 70.99 7 Czech Republic 208.79 10.52 44 74.77 8 South Africa 350.63 52.98 43 59.2 17 India 1876.8 1252.1 142 58.6 25 China 9240.3 1357.3 90 63.55 12 Malaysia 313.15 29.71 18 39.07 27 Indonesia 868.34 249.8 114 58.27 27 South Korea 1304.6 50.21 5 72.28 9 Thailand 387.25 67.01 26 63 27 (Google.co.uk, 2015), (Euromoneycountryrisk.com, 2015). (Climatemps.com, 2015).
  32. 32. 32 Table 3 – Fine-Grained Screening Process (1 of 2) Decision Criteria Weighting (Out of 5) Un-weighted Scores Brazil Mexico India Indonesia Data Score Data Score Data Score Data Score Population Ages 15-64 (% of population) 4 68 4 65 4 65 4 66 4 Apparel Market Size, 2012 ($, billion) 3 55 2 12 1 45 2 17.2 1 Apparel Market CAGR (%) 4 5 2 3.2 1 12 5 6 2 Household final consumption expenditure per capita growth, 2013 (%) 5 1.7 1 1.3 1 4.9 3 4.0 3 Household final consumption expenditure per capita (constant 2005 US$) 5 3851 2 5884 2 706 1 1071 1 Demographic Window of Opportunity (Years) 4 2000 - 2030 4 2006 - 2028 4 2015 - 2050 5 2025 - 2035 2 Total Score (Sahni, 2012), (Statista, 2015), (Boon Kee, 2015), (Gbgindonesia.com, 2015), (Srihadi, 2012) Table 4 – Fine-Grained Screening Process (2 of 2)
  33. 33. 33 Decision Criteria Weighting (Out of 5) Unweighted Scores Brazil Mexico India Indonesia Score Score Score Score Population Ages 15-64 (% of population) 4 16 16 16 16 Apparel Market Size, 2012 ($, billion) 3 6 3 6 3 Apparel Market CAGR (%) 4 8 4 20 8 Household final consumption expenditure per capita growth, 2013 (%) 5 5 5 15 15 Household final consumption expenditure per capita (constant 2005 US$) 5 10 10 5 5 Demographic Window of Opportunity (Years) 4 16 16 20 8 Total Score 61 54 82 55 (Doingbusiness.org, 2015), (Partida-Bush), (Solidarity Network, 2011) Appendix B: Summary of Competitor Analysis
  34. 34. 34  Zara and M&S usually target the youth segment and so it is our prime competition in that market segment.  Louis Philippe is a brand, generally preferred by people over the age of 35.  All that these brands offer are designs that are appealing to the customers of the Indian market. No added benefit comes along-with these brands.  On the other hand, SmartWeave comes with a unique feature, which is missing in any other cloth brand in the world i.e. the technology that prevents sweat-marks. Also, more than 400 designs are available in the SmartWeave store. These designs combined with the unique feature of the shirts are enough to compete with other brands of the Indian market.  People of India, a country with a very hot climate experience this problem on a daily basis and such a product is nothing less than a boon for them.  Also, as we plan to enter India in an agreement with Shoppers-Stop, a large number of cities will be catered by us and thus help us in tapping a huge market. Appendix C: Distribution Channel Table 9 – Projected Inventory Retailer Designs Sizes Pieces Stores Total shirts ShoppersStop 50 5 10 35 87,500 Flipkart 50 5 50 - 12,500 Appendix D: BCG Matrix
  35. 35. 35  BCG matrix uses the cash flow to categorize the product based on market share and market growth.  SmartWeave has been positioned as a QUESTION-MARK because it has a low market share in a market with a huge potential.  SmartWeave offers to sell its products online in various countries still hasn’t been able to tap these markets.  SmartWeave needs to make investments to enter the Indian market, so that it is able to tap the potential Customers of the second most populated country in the world. These investments can help SmartWeave to become a STAR from a QUESTION- MARK Appendix E: Survey regarding consumer perception of formal shirts in India Summary 1) What is your age group? 18 - 24 17 21% 25 - 29 21 25.9% 30 - 34 10 12.3% 35 - 39 6 7.4% 40 - 45 11 13.6% Over 45 4 4.9%
  36. 36. 36 2) What is your Occupation? Student 20 24.7% Self Employed 13 16% Part-Time Job 5 6.2% Full-time Job 40 49.4% Unemployed 3 3.7% 3) Gender Male 56 69.1% Female 25 30.9% 4) What is your Marital Status? Single 25 30.9% Married 41 50.6%
  37. 37. 37 Committed 14 17.3% Divorced 1 1.2% 5) Who generally purchases formal shirts for you? Myself 50 61.7% Parent 3 3.7% Siblings 1 1.2% Partner 27 33.3% Other 0 0% 6) How often do you purchase formal shirts? Multiple times in a month 24 29.6% Once a month 34 42% Once in 3 months 18 22.2% Once in 6 months 4 4.9% Once a year 1 1.2%
  38. 38. 38 7) Time of Purchase Festivals 16 19.8% Offers & Discounts 44 54.3% Regular 53 65.4% Functions 14 17.3% 8) Which factors affect your buying behaviour? Quality 42 51.9% Comfort 50 61.7% Price 29 35.8% Availability 1 1.2% Fashion & Design 29 35.8% Self Image / Status (Brand) 32 39.5% 9) Which modes of advertising impact you to make a purchase? Social Media (Eg. Facebook) 48 59.3% Television Commerials 22 27.2% Newspapers & Magazines 31 38.3% Billboards & Hoardings 8 9.9% Event Promotions (Eg. College Fests) 18 22.2%
  39. 39. 39 10) From where do you prefer to purchase branded formal shirts? Online (Eg. Flipkart) 25 30.9% Stand-alone stores 15 18.5% Multi-brand stores (Eg. Shoppers Stop) 41 50.6% 11)Which are your preferred brands for formal shirts? Raymond 21 25.9% Peter England 13 16% Louis Phillippe 38 46.9% Van Heusen 25 30.9% Arrow 16 19.8% John Players 10 12.3% Marks & Spencer 36 44.4% Zara 29 35.8% 12) How much do you usually spend on a branded formal shirt? Rs 500 - Rs 1500 2 2.5% Rs 1500 - Rs 2500 44 54.3%
  40. 40. 40 Rs 2500 - Rs 3500 30 37% Over Rs 3500 5 6.2% 13) On a scale of 1 - 5 (5 being the highest), how big of an issue are sweat marks on a formal shirt? 1 0 0% 2 1 1.2% 3 2 2.5% 4 21 25.9% 5 57 70.4% 14) On a scale of 1 - 5 (5 being the highest), how likely are you to purchase a formal shirt guaranteed to prevent sweat marks? 1 1 1.2% 2 1 1.2% 3 6 7.4% 4 29 35.8% 5 44 54.3%
  41. 41. 41 15) How much would you be willing to pay for our SmartWeave shirts? Rs 1000 - Rs 2000 5 6.2% Rs 2000 - Rs 3000 43 53.1% Rs 3000 - Rs 4000 31 38.3% Over Rs 4000 2 2.5%

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A marketing plan to expand smartweave, uk to india by means of licensing

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