ALLEN SOLLY ENTERING THE INDIAN WOMENS WESTERN WEAR MARKET

Prepared for: Tapos Kumar Roy Lecturer, ULAB

Prepared By:

Khalid Bin Reza (091011087) Nazmul Huda (091011076) Osman Ibn Zahir (083011034) Basnat Ahamed (063011105) Asma Islam (091011116)

University of Liberal Arts Bangladesh

Letter of Transmittal
March 30, 2011

To Tapos Kumar Roy Lecturer University of Liberal Arts Bangladesh

Sub: letter of Transmittal

Sir We the undersigned students were assigned to solve a Case study on ALLEN SOLLY ENTERING THE INDIAN WOMENS WESTERN WEAR MARKET ALLEN SOLLY ENTERING THE INDIAN WOMENS WESTERN WEAR MARKET We have solved this Case study. In solving this case study we have followed your guidelines. As per your direction, we have added a lot of information from the mentioned topic. From this case study we have achieved a lot of basic knowledge and we think ourselves that it will help us a lot in our future career.

We sincerely hope this case study will fulfill the requirements suggested by you under the course Marketing Management. We hope it will be accepted by you.

If you have any question after reading this report, let us know.

Sincerely yours.
Khalid Bin Reza Nazmul Huda Osman Ibn Zahir Basnat Ahamed Asma Islam

Executive Summary
Indian women generally wear traditional ethnics. However with the Indian society becoming more and more liberal a need arose for attire that was more work friendly then saree. Salwar Kameez was an alternative but it had to tailor as per individuals requirements. Indian society was becoming westernized as per lifestyles, educations and vocation in urban areas. With the cultural changes in India, western wear for women had a potential. Women and kids market was yet to be explored fully. Indian League entered the womens wear market followed by Raymonds Madura garment followed by introducing Allen Solly into the Womens wear segment. This was introduced nationwide with aggressive campaigning and advertising. The response was positive but apprehensions whether the move of Madura to extend from men to women wear segment was the right one or not continue to remain.

Background Information of the Organization

The Indian apparel industry was dominated by the unorganized sector, with market share of over 97%. The industry was divided into two segments, ready-to-wear and tailor-made. The industry was also divided on demographic (men, women and kids) and geographic (each state having its own dressing style) parameters. Over the decades, the developments in men's and women's wear segments showed markedly different trends. While traditionally Indian men preferred to get their clothes stitched by their trusted tailors, by the early-1990s, ready-to-wear clothes had become extremely popular. However, and most Indian women traditionally wore sarees and other ethnic wear.

Answers to questions
Examine the circumstances that prompted Madura to launch womens western wear in the Indian readymade womens wear industry. Why do you think the companies primarily

offered only mens wear in the branded apparel segment in the country? What kind of cultural and social changes led to the launch of Allen Solly Womens wear?

Madura decide to launch womens western wear because: Market was totally in the hands of unorganized players and few branded players. The womens wear industry was estimated to be around 161 billion with a growth rate of 9%of which the womens western wear market was estimate to be growing at around 15% to 20% per annum. In 1990s the Indian Economy showed clear trends of westernization in lifestyles, education and vocation in terms of lifestyle education or vocation. Besides the emergence of products such as ready to serve food, fast food joints, take away meals, branded jeweler and branded sarees/salwar suits was a direct result of above developments. Besides there was development of western wear for women in the corporate world. By extending the brand from men to women the company saved a lot of time and money. Taking cue from Scullers Woman and Be, Madura entered the womens segment. To make the product suit body types Stephen King a renowned UK based designer was recruited. All garments were designed in line with the findings of market research .The range was available in bright as well as pastel shades. The reason why national brands of men wear started venturing into national level was because mens segment had become intense and becoming saturated and the future growth was projected in womens and kids wear. Besides there was a discovery that women purchased Allen Sollys mens trousers in 26 and 28 inch waist line size.

The companies hesitated to venture into the womens garment sector because women wore too many exclusive clothings and not mass produced garments. This sector was viewed as risky and

a headache. Besides western wear had remained limited only to teenage girls and after marriage women in India were expected to wear sarees and other traditional ethnic wear.

There were some cultural and social changes which lead to the launch of Allen Solly Womens wear .Indian women had an income of 8000 and above and those between 22-40 years of age wore western outfits once or twice a week. The society was becoming more and more liberal and the number of working women increased. There was a growing need for a more work friendly attire than the saree. Although saree were a one size fit all and bought readymade but salwar kameez which was becoming popular needed to be tailored as per individuals requirement. Western corporate wear was a necessary outfit which suited the working woman.

2. Critically analyze the product development, retailing and promotional strategies adopted for Allen Sollys women wear. What are the essential differences between marketing readymade apparel to women in developing country? How would your answer differ if the target customer base belonged to a developed country?

Product Development Strategies Product development is to improve the present product or develop a new product for a current market by improving style, performance and comfort. The aim is to gain higher sales among its present market. Madura conducted a market study on the Indian work culture & the requirements of women regarding western readymade. The study revealed that though Indian women loved ethnic clothes they were not comfortable in them while working. Factors such as increased no. of women in the

workplace & challenging jobs that require a lot of travelling indicated a growing need for western wear. The study also revealed that though western wear available in the market, there styling was unsuitable for Indian women. Keeping these findings in mind the company focused primarily on the comfort & styling aspects of its brand. According to IMRB the body types of Indian women can divided into 4 broad categories1. 2. 3. 4. Comfort- for a body small on top and wider on hips. Straight- equal on top, waist and hips; Trim- equal on top and bottom with narrow waist & hips; Regular- wide shouldered and narrows at waist and hips.

In order a unique & modern styling the co. recruited Stephen King, a renowned U.K. designer to create designs for all 4 body types. To cater to the requirements of women whom were on the heavier side the co. offered trousers in waist size as high as 36 inches. The co. also planned to launch a 38 inch trouser in future. Allen Solly also offered woven and mitten tops& jackets in cottons & new fabrics like polyposis, liratinsel, rayon blends& soft acrylic. Retailing Strategies Retailing includes all the activities involved in selling goods and services directing to final consumers for personal, non-business use. One month after its launch, Allen Solly established 6 exclusive outlets. They also planned to retail the range through leading showrooms across the country like Pantaloons, Shoppers Stop, and Westside etc. Special attention was paid to the designing of exclusive showrooms keeping in mind the target customers. The stores were planned in a way that made the shopping experience a unique and pleasant one. Garments were stacked in easy to find fit based categories making it easier for customer to locate garments of required size. All the stores were given contemporary look with radiant steel, pleasant whites, & Belgian glass providing a bright & open ambience. Promotional Strategies Allen Solly targeted self- assured office going women aging between 22-40yrs. Who wore western outfits once or twice a week and had an income of Rs. 8000 & above per month. They also targeted those women who come under salwar-kameez category. Madura decided to go in for aggressive campaigning and invested 60% of its investment on advertising. The promotional exercise included fashion shows organized by the companies which displayed the entire range. The company made extensive use of mailers to reach targeted customers. They planned to promote the brand through outdoor advertising and print campaigns. The campaigns focused in the work-place success of the women. Leading magazines and other publications that were read by women from the target segment carried the print ads, while

billboards and hoardings were extensively used at prime locations in all the cities the range was launched in. The marketing of readymade apparel of men differs from that of marketing readymade apparel of women. In developing countries like India, since the per capita income is low as compared to the developed countries consumers go for value for money. They are always eager to try those designs which are already accepted in the developed countries. Women in developing countries are kind of reserved, but they are always ready to try designer apparels and party wears. So the marketer must invest heavily on advertisements and take initiatives to attract women by coming up with new offers which will drive them to purchase the product. In case of developed countries, men and women are more extroverts. They are always ready to try new designs. The marketer need not invest heavily on advertisements but should emphasize on other promotional activities like conducting a fashion show. While marketing there are certain factors which are applicable to men but not to women like machismo.

3.Madura has taken a major risk by extending a pure mens brand to the womens wear segment. Comment on this statement in the light of observation that men might switch over to a pure male brand in the future. Do you think Maduras move could erode Allen solly brand equity?

I do not think the move would erode Allen Sollys brand equity .Men were pleased with the companys decision of the company to enter the womens segment according to market survey. Visuals of an advertisement showed a man welcoming a woman into the Allen Solly family.

4.With many players entering the womens Western wear segment, do you think Allen Solly would be able to grow as planned ?As part of a team responsible for managing the brand ,help the company design a marketing strategy plan to attain leadership position in the womens western wear segment.

Allen Solly would grow as planned despite the competition from prominent brands. Market research said that ethnic wear among Indian women was unsuitable while working and western wear was a good alternative; by plunging into the segment Madura did the right thing. As a part of marketing strategy, the product should be of low price and it should know everyone, even middle class. Besides Marketing strategy would include Product, Price, Place and Promotion. The products had already been introduced to the Indian women. For the international styling a renowned UK based designer Stephen King had been recruited and the company was focusing on the comfort and styling that suited the Indian womens body needs. The price was in a wide range to mix and match. For example the knitted range was priced between 499 to 999 and trousers were priced between 799 and 1099. Madura had announced the launch of Allen Solly nationwide with six outlets in prominent metropolitan cities. As a part of strategy team I would attempt to increase the number based on customer response. Also these would be designed by well-known architects to attract customers as done to already built outlets. The target segment as of now was the young woman between 22 to 40 years and income of above 8000.Gradually an attempt would be made to extend the segment to kids and women above 40 (between 40 to 50) and also to target lower income groups. Advertising had already been allocated 60 million and research was on with an allocation of 40 million. Madura had planned to promote the brand by outdoor advertising and print campaigning. Leading magazines and other publications carried the print advertisements. Media coverage had given recognition to the comfort fit trousers.

Conclusion:

Indian women generally wear traditional ethnics. However with the Indian society becoming more and more liberal a need arose for attire that was more work friendly then saree. Salwar Kameez was an alternative but it had to tailor as per individuals requirements. Indian society was becoming westernized as per lifestyles, educations and vocation in urban areas. With the cultural changes in India, western wear for women had a potential. Women and kids market was yet to be explored fully. Indian League entered the womens wear market followed by Raymonds Madura garment followed by introducing Allen Solly into the Womens wear segment. This was introduced nationwide with aggressive campaigning and advertising. The response was positive but apprehensions whether the move of Madura to extend from men to women wear segment was the right one or not continue to remain.

References: 1. www.scribd.com/Allen-solly 2. www.wikipidea.com/Allen-solly 3. www.Allen-solly.com/India