Global Marketing - Project (Country and Industry)
Transcript of Global Marketing - Project (Country and Industry)
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THE in In
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Total Population 1,156, 897,766(July 2010 estimate)
Population Growth Rate 1.41%(2010)
Urban Population 29% of totalpopulation
Rate of Urbanization 2.4% annualrate of change
Demographics
DemographicsTHEin India
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opulation SizeTHEin India
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Early 1990s liberalization
Developing open market economy
Less controls on foreign trade andinvestment
Increasing privatization to offsetfiscal deficit
Diverse Economy - Traditional andModern Agriculture, wide range ofmodern industries and services,
conomic OverviewTHEin India
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Services engine of growth
Major exporter of IT services andsoftware workers
Strong banking regulation and lowexport dependence
Escaped global financial crisis
Economy Overview conomic OverviewTHEin India
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GDP-real growth rate 7.4% (2009est).
GDP composition
Agriculture 17%Industry 28.2%
Services 54.9%GDP Per Capita 3,100Distribution of Family Income GINI
index 36.8Industrial Production Growth Rate
Economic Trends conomic TrendsTHEin India
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Total Exports: US$ 164.3 billionKey Exports:
Petroleum products, precious stones,machinery, iron and steel, chemicals,vehicles, apparel
Total Imports: US$ 268.4 billionKey Imports: Crude oil, machinery, fertilizer, iron
and steel, and chemicals
Economic TrendsEconomic Trends conomic TrendsTHEin India
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System of Government Parliamentary Democracy
Legal Environment Foreign companies can commence
operations in India under the Companies Act
1956 through
Joint Ventures and wholly owned
Political and Legal EnvironmentEconomic Trendsical and Legal EnvironmentTHEin India
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FDI can enter through automaticroute or government route.
Restricted through automatic route:
Petroleum Sector, Existing Airportprojects, broadcasting, defenseprotection, print media,
construction development, printmedia
Forbidden: Atomic energy,
Agriculture or plantation activities,Gamblin Lotter
Political and Legal EnvironmentPolitical and Legal EnvironmentEconomic Trendsical and Legal EnvironmentTHEin India
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Culturally diverse
Regionalism, religion, language, caste areall factors taken into account when doing
business Different cultures so different festivals for
buying clothes
Most foreign companies penetrate
metropolitan cities such as Delhi, Mumbai,Bangalore, Hyderabad
Meeting and Greeting Namaste
Meetings and Negotiations: Writing or
confirmed by phone
lture and Social FactorPolitical and Legal EnvironmentEconomic Trendstural and Social FactorsTHEin India
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IndustryOverview
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Indian Apparel Retail Industry
RMG* : -arket Size 2005 06 Value Per cent( . )Industry size Rs Million ( )EUR Billion
- ( )Domestic Market size A .13 64 .68 8
- ( )Export Market size B .6 10 .31 2
( + )otal Market size A B .9 75 100
:The Indian Apparel Industry is segmented into two sectors &Domestic Export segments
: .ote Per cent indicates the domestic and export market with respect to the total market size* -RMG Ready Made Garment Industry
-ndia is very strong in niche segment and short run fashion garmentsT Kearney report suggests that the Indian retail market has the largest growth potentialin comparison to the international retail market and is expected to grow to 4 to 5 per ce
.a year in volume and 13 per cent in value
lture and Social FactorPolitical and Legal EnvironmentEconomic Trendstail Apparel IndustryTHEin India
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Ready-Made Garment Industry
The omestic RMG industry is highly fragmented with a few players This degree of fragmentation can be attributed to government policies
Small and unorganized local players largely dominate the domestic RMG Market
The omestic market .worth Euro 13 64 billion can further be segmented into Men s wear segment Women s wear segment Kid s wear segment
lture and Social FactorPolitical and Legal EnvironmentEconomic Trendsdy Made Garment IndustryTHEin India
(Value EUR)Billion
Percent
Men s Wear segment 5.65 . %41 4
Women s Wear segment 4.69 . %34 4
Kid s Wear segment 3.30 . %24 2
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COATSFORMAL
TROUSER
-SHIRTS
JEANSWEAR
COATSCASUAL
MENSSEGMENT
,Of these three segments en s Wearegment .is estimated at 5 65 Euro-billion in 2005 06 accounting for about. %1 4 of the total domestic RMG market
Segment has grown at a CAGR of around
%8 - -from 2001 02 to 2005 06 Men s Wear segment has further been
categorized as depicted by thediagram
SAREES
TOPSEANSWEAR
SHIRTS/TROUSERS
-SHIRTSOMEN S
SEGMENT
SHIRTS
DRESSES The omen s Wear segment is estimate
. -4 69 Euro billion in 2005 06accounting forabout . %4 4 of the total domestic
RMG market Segment has grown at a CAGR of 8%
- -from 2001 02 to 2005 06
Women s Wear segment has furtherbeen
lture and Social FactorEconomic Trendsdy Made Garment IndustryTHEin India
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UNIFORM
REGULARDRESSES
TROUSER
SHIRTS
JEANSWEARS
-SHIRTS
KIDSSEGMENT
The id s Wear segment .is worth 3 30 Euro billionand accounts for about . %4 2 of the total domesticRMG market
% -Segment has grown at a CAGR of 14 from 2001
-02 to 2005 06
Kid s Wear segment has further been categorizedas depicted by the diagram
Ready-Made Garment Industrylture and Social FactorEconomic Trendsdy Made Garment IndustryTHEin India
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. ( )1 Pantaloon Retail India Limited
. 2 Shopper s Stop
. 3 TATA Trent
.4 Globus Stores Pvt Ltd
.5 Piramyd Retail Ltd
.6 Arvind Brands Ltd
. ( )7 Provogue India Ltd
.8 The Raymond Group
.9 Madura Garment
.10 Reliance retail Ltd
. ( , )11 Wills Lifestyle Lifestyle Retailing Business Division ITC
.12 Murjani Group
.13 Landmark Group
Profile of Major Playerslture and Social FactorEconomic Trendsofile of Major PlayersTHEin India
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Industry Snapshot
, ,ucci Group Fendi are in talks with major retailers like the, , antaloon Lifestyle Shopper s Stop etc to set up their brands inIndia
The urjani Group with its Joint Venture with arvin Traub focuses onbringing
international brands to the Indian retail market
The Murjani Group launched ommy Hilfiger in India in 2004 Future strategy of the group for the Indian markets would be to create
-multibrand retail platform
The Group has already formed exclusive distribution agreements withthe brands
like , , , ,ucci Jimmy Choo Calvin Klein FCUK TUMI and - -uild A Bear
Profile of Major Playerslture and Social FactorEconomic Trendsobal Players inIndiaTHEin India
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Distribution Channels in Indian RMG Industry
DISTRIBUTION
CHANNELS
OWNED STORES /
EXCLUSIVE
BRAND OUTLET
DISCOUNT
STORES
EXPORTS
RETAILERS
DISTRIBUTORS
MULTI-BRAND OUTLETS or
Industry SnapshotProfile of Major Playerslture and Social FactorEconomic Trends ribution Channels in GMBTHEin India
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Various Distribution Channels
/wned Stores Exclusive Brand Outlets Advantages
direct medium of selling apparel
high realization for the garment sold
-end user feedback and knowledge of their preferences
Disadvantages requires greater advertising expenditure
greater fixed costs
Some of the layers following this channel Provogue Raymonds
Madura Garments
Arvind Brands
Zodiac Clothing
Century Textiles
- -Manufacturer cum Distributor
Industry SnapshotProfile of Major Playerslture and Social FactorEconomic Trendsous Distribution ChannelsTHEin India
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- ti Brands Outlets or hopping Malls- ,Organization sells apparels to multi brand outlets which in turn sell them through large
MBO s are located in prime locations of the various cities and towns ensuring maximum reacMBO s are chain of shopping malls having a presence in more than one location
;Realization from this channel is lower than those earned by selling to the retailers asgher margins because their costs are higherSome of the ajor players :in this channel of distribution hopper s Stop antaloon Retail ( )estside Trent Globus yramid Retail eliance Retail
- -Manufacturer cum Distributor
Various Distribution ChannelsVarious Distribution ChannelsIndustry SnapshotProfile of Major Playerslture and Social FactorEconomic Trendsous Distribution ChannelsTHEin India
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RETURNS
HIGH
Low,ealizations butlower dvertising and
Higherrealizationshan sellingthrough
distributors
ixed costs
LOW
MEDIUM
dvertising andixed costs arelower
High ,ealizationsbut
advertisingnd fixedosts arehigh
WN STORESISTRIBUTION CHANNELS
Various Distribution ChannelsIndustry SnapshotProfile of Major Playerslture and Social FactorEconomic Trendsarison Between Distribution ChannelsTHEin India
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Market EntryStrategy
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Profile of Major PlayersWOT AnalysisTHEin India
InternalFactors
ExternalFactors
Strengths Weakness
Opportunities
Threats
Brand image,influential overseas
,infrastructureproduct quality and
design
,Price recent product, ,performance fashion
reactive
Growing India market
Low cost of labor andmaterialsExpanding product
line Collaborationwith other designers
Promotionalopportunities
CompetitorsZaraLimited market
informationSocial
DifferencesImitation goods
Economic( )currency
*S O StrategyCollaborate with local
,designers use brand imageto penetrate Indian
,market localmanufacturers
Aggressive expansion ofstores
* W O Strategy
Local manufacturing to,reduce cost work with
local designers on new,fashion trends make
first moves towardsexpansion
*S T StrategyCooperate with localpartner
Customized designProper value proposition
Use local resources tohedge currency risk
Differentiate from
imitation
* W T StrategyCompete with Zara throughfashion forward design
.and lower price Investmoney into market
,research constantlyupdate stores with newstyles to deter imitators
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Profile of Major Playerstry StrategiesTHEin India
Cooperative Joint Venture
Manufacturing
zation: $22 Billionts:& , ,Confectionery Branded Apparel Personal Care and Stationery
Birla GroupITC Limited
Retail Channels/Advertising Marketing
World's largest player in the Viscose Staple Fiber industryLocations: , , ,India Laos Thailand
Malaysia and ChinaPulp and plantation interests in CanadaMajor player in the branded garments market in India
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Profile of Major Playersket Coverage StrategyTHEin India
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4P s
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Profile of Major PlayersP sTHEin India
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Profile of Major PlayersProductTHEin India
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Profile of Major PlayersPlacementTHEin India
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Profile of Major PlayersPriceTHEin India
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Profile of Major PlayersPromotionTHEin India
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Profile of Major PlayersResourcesTHEin India
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Profile of Major PlayersrojectionsTHEin India
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Profile of Major Playersntrol ImplementationTHEin India