The concept of Vendor Managed Inventory has its inception from the concept of Lean and JIT. The idea is to reduce the inventory carried by the Manufacturers and consume it only when the need be, this helps the companies to reduce their inventory levels.
In VMI the vendors maintain the inventory under their ownership at the premises of the customer while the customers provide their production or consumption plans to the vendors well in advance to ensure that the Suppliers maintain stock appropriately and ensures the service levels.
It may look like VMI is only customer/manufacturer friendly, but on a deeper thought it can be seen that vendors also benefit from VMI as they can plan there production, procurement, inventory effectively in and become lean.
Also in the question you have referred to VMI for Distributors, I would like to clarify that there isn’t any concept of VMI with respect to Distributors, Manufacturers replenish the stock at the Distributors as per the orders placed by the Distributors. This is different from VMI.
In online Marketplace businesses (Amazon, Flipkart, Snapdeal etc.) the stock of the sellers is stored at the Warehouse of these Online marketplaces who ship the goods to the customers when they place the order, here the stock in the warehouse is under the ownership of sellers only (pure market places scenarios), this is similar to VMI but not referred as VMI.
2. Agenda
• About Raymond's
• Marketing strategy of Raymond's
• Product, Price, Place & Promotion Mix
• Competitors
• SWOT Analysis
• BCG Matrix
2
3. About Raymonds
Raymond Group is an Indian branded fabric and fashion retailer,
incorporated in 1925. It produces suiting fabric, with a capacity of
producing 31 million meters of wool and wool-blended fabrics.
The group owns apparel brands like Raymond, Raymond Premium
Apparel, Raymond Made to Measure, Ethnix, Park Avenue Woman,
Color Plus, Parx & Kamasutra. All the brands are retailed through 'The
Raymond Shop' (TRS), with a network of over 700 retail shops spread
across India and overseas, in over 200 cities.
In addition, the group also has business interests in readymade
garments, designer wear, cosmetics & toiletries, engineering files and
tools, prophylactics and air charter operations.
In 2019, Raymond's announced its venture into real estate business
under Raymond Realty. The new venture is poised to start with an
investment of ₹250 crore (approx. $36 million) in developing mid -
income and premium housing units on 20 acres of land in the growing
suburb of Thane. Raymond group holds over 125 acres of land in this
region.
Presentation Title 3
4. Services
Raymond's wide range of products and services are as
follows :
•Total textile solutions.
•Fabrics (Worsted, Denim and Shirting).
•Apparels (Tailored Clothing, Jeanswear and Dress
Shirts).
•Brands (Raymond's, Manzoni, Park Avenue, Color
Plus, Parx, Be:,Zapp, Notting Hill and The Raymond
Shop)
•Furnishings.
•Retail (The Raymond Shop and Brand Store).
•Engineering (Files, Cutting Wools, Hand Tools and Agri
tools and Auto Components).
•Personal Care (Park Avenue and Kamasutra).
•Prophylactic (Kamasutra and Surgical Gloves).
•International Business.
5. Product Mix of Raymond's
Presentation Title
5
FMCG Garments &
Apparels
Retail Engineering Real Estate
Personal Care (Park
Avenue, Kamasutra)
Total textile solutions The Raymond shop Furnishings Raymond Realty
Prophylactic (Kamasutra
and Surgical Gloves).
Fabrics (Denims,
Shirting's)
Brand store Files, Cutting tools, Hand
tools
Apparels Park Avenue, Colorplus,
Parx, Notting Hill, Zapp,
GAS
Agricultural tools
Auto components
6. Product Strategy
The product strategy and mix in Raymond marketing strategy can be
explained as follows:
Raymond is one of the leading Indian fashion retail company. Under its
various brands Raymond retails a number of clothes classified into
trousers, shirting, jackets, suits, jeans and others. Raymond has a
production capacity of 1.5 million garments per year. Its product line
also includes celebratory shirts, dress shirts, formal shirts in its
marketing mix. The sizes include small, large, extra large as well as
plus sizes. Raymond’s has brands like Colorplus, Park Avenue, Parx
etc.
Under the Raymond brand, Park Avenue also manufactures and sells
fragrances, shaving systems, body care solutions and hair care
products. These are suave and meet the current expectations of
modern men. They are also into the retail of body sprays and
deodorizers as well as deodorants. Raymond’s home furnishings
include curtains and designer upholstery as well as luxury fabrics for
home décor.
Presentation Title 6
7. Price Strategy
Below is the pricing strategy in Raymond marketing strategy:
Raymond through its separate brands caters to the needs of all
kinds of markets and clearly positions its products to a substantial
Indian market. The pricing strategy of its offerings in its marketing
mix is as follows.
Consumers opting for budget or entry level shirting's and other
apparels are retailed through Parx and Colour Plus. In India,
shirting’s and trousers begin from Rs 1,000 going all the way up to
Rs 10,000 depending on the type of fabric, stitching and
workmanship involved, retail outlet location, colour and size.
Besides these, Raymond through its flagship ‘Raymond’ and ‘Park
Avenue’ cater to the higher spending customers who do not mind
paying the extra premium for a product offering superior quality,
stitching, wrinkle free or other feature laden characteristics.
These command a premium over the budget clothing that Raymond
offers but are still competitively priced compared to other market
players.
Presentation Title 7
8. Place Strategy
Raymond has got a significant presence not only in India, but
also a global imprint. Being the world’s largest manufacturer of
suiting fabrics and commanding a whopping 60% market share,
Raymond has made its presence felt in over 55 countries.
It has a production capacity of 38 million meters and is one of
the only companies to produce fabrics which are worsted and
wool blended. Countries to which Raymond exports it’s
products include the European Union, Canada, USA, Japan and
Australia. Its manufacturing plants are state of the art and
include fully integrated plants in Chindwara, Central India,
Jalgaon in Maharashtra and Vapi in Gujarat.
These also deploy modern technological and quality control
systems such as ISO 9001 and (ISO 14001) Environment
Control Systems.
Presentation Title 8
9. Promotion & Advertising Strategy
The promotional and advertising strategy in the Raymond
marketing strategy is as follows:
Raymond promotional marketing efforts follow a well -structured
approach to clearly relay product information based on several
parameters to a clearly defined and segregated market. The
“Complete Man” tagline & slogan of Raymond is extremely popular.
The technical parameters underlying some of Raymond’s
advertisements range from basic protection from various weather
conditions to functional parameters to another set of target market
with a parameter including wrinkle free, easy to wash, comfort
lining and with thermos buttons.
Yet another category of consumers are influenced and attracted by
emotions style and a sense of fashion embedded in advertising
campaigns run by Raymond for its premium offerings. Campaigns
include such mediums as ATL and BTL advertising such as
newspapers, fashion magazines, fashion channels on television,
Radio, TVCs. Hence, this completes the entire marketing mix of
Raymond brand.
Presentation Title 9
11. SWOT Analysis
11
Raymond’s Strengths
•Strong R&D for product and innovations
•Brand loyalty
•The loyalty of consumers due to decentralization
•550 stores in more than 200 cities across India and overseas
•High product quality & MNC so can attract more consumers
•Good advertisements and popular branding
Raymond’s Weaknesses
•Low global penetration
•Possibility for brand switching
•Over-dependence on Indian Market
Raymond’s Opportunities
•Growing middle class
•Global expansion
•Increasing Disposable income
Raymond’s Threats
•Intense competition
•The abundance of counterfeit products
•Players competing not only on low prices but also better quality
•Regional trade alliances
•Increased social and ecological awareness will put pressure on companies to follow international labor laws and environmental
laws.
13. BCG Matrix
Cash Cows
• I n e v e r y c o m p a n y ’ s p r o d u c t p o r t f o l i o ,
t h e r e a r e f e w c a t e g o r i e s , w h i c h
g e n e r a t e e n o u g h r e v e n u e f o r t h e
c o m p a n y i n o r d e r t o r e g u l a t e t h e
o p e r a t i o n s a n d m a n a g e m e n t . S u c h
p r o d u c t s a r e c a s h c o w s f o r t h e
c o m p a n y t h a t h a s h i g h m a r k e t s h a r e
a n d l o w m a r k e t g r o w t h . T h e e h i g h
d e m a n d s o f t h e c o n s u m e r s h e l p s i n
f a c i l i t a t i n g t h e p r o d u c t s a s t h e c a s h
c o w . R a y m o n d H o m e a n d M a n z o n i a r e
t h e c a s h c o w s o f R a y m o n d Group.
M o s t o f t h e r e v e n u e c o m e s f r o m t h e m ,
a n d r e i n v e s t i n o t h e r b u s i n e s s e s o r i n
i t . C o n s u m e r s p r e f e r t h e m b e c a u s e o f
i t e x c e l l e n t q u a l i t y a n d r e a s o n a b l e
p r i c e s , w h i c h n o o t h e r c o m p e t i t o r i s
o f f e r i n g
Question Marks
• These are the products, which have
reached to the maturity stage, and
have high market share along with high
market growth rate. These items do not
bring such revenue as cash cows bring,
but possess the good future prospects
for the business. This encourage the
companies to be consistent with their
investment. Color Plus, Park Avenue,
and Parx are the stars of the Raymond
Group. These are consider as the most
innovative brands who offers premium,
casual and formal dresses for both men
and women. Further investment can
turn it into cash cows because of its
market position and strong brand
equity
Dogs
• This category has the products
who do not generate high volume of
sales or revenue, neither have they
had high growth rate for
establishing the notable market
share in the industry. Busines s or
the industry is gradually
progressing and has little chances
of development. However,
environmental factors also
influence the industry. Zapp is the
dog item for the Raymond Group. It
is the kid wear because of the high
termination cost. The brand was
under-performing
13
Stars
• T h e s e a r e a l s o k n o w n a s p r o b l e m c h i l d ,
w h i c h m e a n s t h e y h a v e t h e h i g h g r o w t h
r a t e , b u t c a n n o t g e n e r a t e e n o u g h p r o f i t
b e c a u s e o f t h e l o w m a r k e t s h a r e . T h e
p r o d u c t s o r t h e b u s i n e s s i s s t i l l
s t r u g g l i n g i n g r o w t h s t a g e , b u t t h e
g r o w t h p h a s e r e f l e c t s o n t h e c h a n c e s
o f i t t o b e s t a r s o r c a s h c o w s i f t h e
d e c i s i o n s a r e m a d e i n t h e r i g h t
d i r e c t i o n . M a d e t o m e a s u r e a n d M a k e r s
a r e t h e q u e s t i o n m a r k f o r t h e R a y m o n d
G r o u p , b e c a u s e o f t o u g h c o m p e t i t i o n i n
t h e m a r k e t . T h e r e a r e s e v e r a l b r a n d s
o f f e r i n g t h e s a m e s e r v i c e i n l o w p r i c e s ,
w h i c h a r e m o s t l y p r e f e r a b l e b y t h e
c u s t o m e r s . I f t h e i n v e s t m e n t i s m a d e
w i t h e f f e c t i v e s t r a t e g i e s , t h i s c o u l d b e
t h e s t a r i t e m s