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1. Executive Summary

The Apparel Industry has been seemingly proliferating with the growth. With economic
development there has been an increase in the private consumption and growth in
GDP; as the demand from the fashion and ready-to-wear industry has increased
significantly.

Both the global and European markets for branding and design are growing. Brands
owners are increasing their investments in measures intended to contribute to
strengthening their brands, in which labels, packaging and accessories are important
elements.

Wadhwa Group is a company in this industry offering apparels i.e. Shirts with a clear
focus on offering customer unique solutions that create added value.

The project is conducted to study the apparel industry to launch Wings Shirts in
Mumbai, the nature of research is primary and secondary. Primary data is collected
through survey questionnaire and secondary through Internet.

The study is undertaken to know which Brand of shirts consumers use and why. And
what are the factors consumers looks for, within what price range and when do they
shop. So that all the factors can be integrated and Wings can be launched accordingly.

This portrays the need of Wadhwa Group to develop its market through continued
optimization of its business structure and improve return on investments in India. The
aim of this project report is to make a feasibility report for Wings for its expected market
introduction in the Indian market.

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2. Objective Of Project

 To study apparel industry in Mumbai for launching new brand of shirts.

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3. INTRODUCTION OF INDIAN APPAREL INDUSTRY

An Overview
Increasing international competitiveness of India in the Apparel Sector has been for the
reason that its full supply chain – from a huge raw material supply to high quality
completed products, near to the ground labor costs and experience, entrepreneurship
and design skills which Chinese firms find difficult to match. The industry is also
extremely flexible – from flexible smaller firms presenting efficient solutions for smaller
orders to giant firms; having the ability to service the world‟s biggest buyers. The Indian
economy has also opened up to the outside world and foreign investment &
opportunities have increased due to changing government policies. New capacities are
being built, and competitiveness is improving as new technology and expanded
capacities are installed at a dramatic rate. Leading foreign retailers and apparel brands
are taking advantage of India‟s strengths as an alternative to China and other countries
for their sourcing requirements. This is being supplemented by the growth of the Indian
brands increasingly to high standards.

It has been estimated that India has approximately 30,000 readymade garment
manufacturing units and around 3 million people are working in the industry. these days,
not only is the garment export business growing but many leading Indian fashion
apparels are also coming up as major supplier of high quality fashion apparels and are
appreciated in major markets internationally. Consistent efforts towards extensive
market coverage, improving technical capabilities and putting together an attractive and
wide merchandise line has paid rich dividends. But till today, our clothing industry is
dominated by sub-contractors and consists mainly of small units of 50 to 60 machines.
India's supply base is medium quality, relatively high fashion, but small volume
business.

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To cut a long story short, the Indian Textile & Apparel Industry should also go in for
systems integration to meet increased price competition, and increased pressure to
shorten the fashion cycle with shorter production cycles that will provide it greater
connectivity and visibility, and enable it to adjust to retailers' needs and provide value-
added services. Overall, the Indian Textile & Apparel Industry is proliferating at a rapid
rate.

For building Indian brands in global apparel market it is necessary for marketers to
increase the value of their products by branding. It is evident that there are still only a
few apparel exporters able to create a brand in the global market except the supply of
international buying houses or retail chains as per the specifications and designs
provided by the buyers putting apparels or brand name as stipulated by the buyer
wherein the exporters voluntarily hide their identity in the global market. Although, the
Indian apparel exporters do have the capability to produce as per the requirement of
global market, their main drawback lies in strategic thinking in creating their own brands.
Moreover, many global brands are also entering the Indian market, making Indian
brands clueless as to how to survive the competition. This situation necessitates the
marketers to strengthen their brands for their stay in the market. This might be possible
only when the marketers consider branding not as a set of activities, but as a strategic
thinking.

To compete in domestic as well as global market place in the long run, the marketers
must create and manage strong brands - vital in creating loyal customers which would
pose a formidable defense in the competitive market. Branding requires putting
conscious efforts to build the society‟s perceived value of the product based on
components such as reputation, experiential and symbolism.

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4. BUSINESS OVERVIEW OF WINGS

What is driving Wings?

Brand Profiling is the key word associated with the demands from the Apparel Industry.
Brand Profiling goes a long way in establishing the brand consistency and value
propositions. Product portfolio of Wings builds up a brand personality that
communicates the values and strengths of the company. Designing of different aspects
of brand profiling is done based on in-depth study of the company, its vision, prime
customers, target market, their perception and competition.

Wings is anticipated to be a tertiary player in the fashion supply chain relationship

between the buyer and seller with the primary motive of its business and that of the
industry is value enhancement/addition by developing the concept of the brand product
line. Every product line has its own design concept and this is strengthened by Wings‟
supplementary concept build-up by analyzing the market trends & needs and exploiting
the emotional and self-expressive benefits differentiating the product line of the brand
from others. Wings believe in illustrating the brand experience or concept by fortifying
the personality of the brand. Brand profiling for Wings serves to achieve unique selling
propositions (USP) or better termed as the emotional selling proposition (ESP) for a
wide range of products to entire regions.

How accessible can Wings be in the mainstream?

In the close meshed matrix of value vs. volume in the polarized market, it is a strategic

vision of positioning the company based on necessities and strengths. Accessibility of

Wings in the market providing it with sustainable competitive advantage is based on its

high value apparel and not much on controlled product low pricing.

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Is Wings broadly based?

The most critical factor behind the success of a firm is to classify its core identity
elements. Wings has several core assets that can be exploited to achieve future growth.
In view of the development of the core and extended identity of Wings it would prioritize
four criteria as (i) differentiating itself from competitors through ESP, (ii) resonating with
the target group – understanding the drive behind the customer‟s motive, (iii) reflecting
the strategy and culture of the business and (iv) Providing parity in attributes where
competitors have an advantage.

It is evident from the analysis, that the maximum profitability can be perceived with high
product price level and at the same time with increment in the volume of business. A
combination of the two in the right degree is a requirement as increase in volume helps
to attain economies of scale resulting in the decrease in direct costs and overheads
(working capital), also.

Vision and Wanted Position

Wings should avoid ending up in a situation where:

• The smaller players are more attractive than Wings due to more value-added offers
• The major players are more attractive than Wings due to a more attractive
production and logistics set-up and lower prices.

Therefore, Wings has to identify a sustainable competitive position. The first step
towards the vision shall be the main focus over the coming 2-3 years. During this
period, Wings would strive for a market position where:

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• The customer offer is superior to that of the major players in terms of

- Higher branding and design competence
- Higher degree of service and flexibility to customer needs

• The production and logistics set-up is superior to that of smaller players in terms of:

- Production network offering closeness to the customers´ own production sites

- Streamlined logistics solutions in terms of infrastructure, processes and
supporting systems

It is essential to exploit this market position by duplicating it on other markets, by

leading a consolidation of the market.

Market Positioning
A firm‟s competitive advantage and its product‟s position depends much on how it is
defined by consumers on important attributes – the place the product or in totality the
company occupies in consumers‟ minds relative to competing products. Information
overloading makes it difficult for consumers to re-evaluate their buying decision every
time.
To simplify this product positioning based on a complex set of perceptions, impressions
and feelings for Wings - this report takes into consideration, the perceptual mapping that
Wings has done of itself.

“When absolute superiority is not attainable, you must produce a relative one at the
decisive point by making skillful use of what you have”
– Karl von Clausewitz, On War, 1832

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Current Positioning of Wings India

Wings India Current Business Strategy
The current business strategies as perceived while conducting the project Work can be
summarized as follows:

Production, Marketing & Services

1. Marketing Management - Wings in India predominantly follows a mixture of product
concept and marketing concept. Wings India‟s organizational goal depends on
determining the needs and wants of the target market in India (retailers and brand
owners) and delivering the desired satisfactions more effectively and efficiently than
competitors. According to the product concept the company favors products that
offer the most quality, performance and innovative features through conscious
product improvements.
2. Market positioning and Target segment - Wings will continue development of its
production/manufacturing facilities accordingly. Constant R&D works and innovation
helps to diversify its product portfolio. It will take help of its local sales team to
develop its services in terms of marketing of its products.
3. Motivations - Wings‟ strategy is to develop a potential market through wider global
brand association, global innovation, access to low-cost labor or materials, and
strategic access to business incentives, subsidies and overcoming trade barriers
and fostering good-will through effective joint venture.

Logistics, Stock & Distribution

1. Logistics system - Development of RIS & ERP system in context to the Mumbai
market and incorporating it in the total solution of Wings on a real time based web-
order platform. Wings‟ functioning also depends on the efficiency of the courier
service companies for on-time delivery of its products to the store bases.

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2. Favorable market factors - For Wings the knowledge of local language, in contact
with manufacturer, and close location from clients sourcing base & of stock avoiding
long transport and quick dispatch and effective courier service are positive attributes.
3. Order Management - Maintenance of stock for the customers depending upon
forecasting of sales as no contracts exist between the clients and Wings on assured
agreements.

Finance
1. Banking Operation – Wings will open up its own banking operations and
transactions in Mumbai to reach the customers on time and make investments on
requirements, promptly without waiting for long dealings from the main office.

2. Reduced direct costs - Wings has improved the operating profits by reducing
fixed cost structure which has contributed to turn negative results into attractive
profit levels.

Wanted position – Wings

Wings have to look after two different perspectives – yet so conjugate.
o Develop a clear framework of its own wanted position
o Develop a strategy helping Wings develop its position nationwide

From the perspective of Wings it is evident that profitability and growth of the entire
organization would be reflected on it. Wings‟ market position is to some extent would be
similar on different geographical markets, and to some extent different on different
markets depending on the market factors and competences. This has help determine
the market positioning for Wings in particular.

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As described earlier, the market is becoming increasingly polarized. The major players
are moving to the bottom right corner, and the smaller players find niches at the left.
Wings‟ current position will be somewhere in between. It has an attractive production
and logistics offer relative to the smaller players, but a significantly less business
volume than the major players in the Indian market.

It is also important to note the fragmented positioning of the Indian domestic apparel
producers. They are dispersed in the market considering their volume, strategy,
products & services. There are certain comparatively bigger players with established
production bases with varying level of product assortment depending on what clients it
serves. Many such companies are exporting to International retailers or supplying to
their local bases with high degree of value addition and brand management. Moreover,
they possess knowledge of the retailers and brands and render services to them
depending on the trends. There are some companies which are not big enough due to
lack of investment but are quite innovative and value adding for the Indian fashion
market. Others can be characterized as small or medium- sized enterprises (SME) with
low level of product diversification clustered in the left hand bottom segment of the
graph.

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SWOT Wings– Analysis

STRENGTHS
Capabilities
Wings is a potential apparel manufacturer on its way for market introduction in India. Its
true capabilities lie in its efficient service - sales, distribution, and stock management
with close alliance of its management teams.
Competitive advantages
Competitive advantage lies in the following ways:
o Thorough know how of the Indian market in terms of business ventures, product
requirements of the vendors, economic production system through better local
communication
o Less business and setup costs due to already developed infrastructure for local
production and distribution

Resources, Assets, People

Though resources are quite nominal for Wings India but it is strategic. Wings India will
have its own production or manufacturing set-up in Mumbai which reduces its fixed
operating expenses - infrastructural, developmental, real estate costs etc. – thus
possible depreciation. This lowers the liabilities and property, plant and equipment costs
considerably.
Marketing - reach, distribution, awareness
Wings believes in marketing of its products with the help of its sales team to the vendors
but mostly counts on the efficient marketing by the experienced sales team for more
approved nominations. In Mumbai, Wings mostly plans to be away from the
international market services and to maintain its high brand personality. With its office in
Mumbai Wings will be able respond to the customer queries efficiently.

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Location and geographical

Wings office is located at Mumbai. Geographically the manufacturing location will be
strategic as it will be in a special economic zone – with industrial exposure and facilities
like tax free liabilities for business set-ups. Mumbai is at a special location logistically –
with extensive business coverage, investment opportunities and transport connectivity.
Price, value, quality
Wings India‟s strategic advantage lies on the value addition and the quality of its
product. Wings offer its apparels concepts to the market in Mumbai. Opportunities are
ample to diversify and increase the client base. The unique branding concepts of Wings
stand out to be its strength parameters. Wings also ensures its quality via a step-by-
step process through in-process quality inspection system along each phase of the
manufacturing process – weaving, finishing equipment, cutting and folding and finally
during packaging.

Processes, systems, IT, communications

The in-house production processes for Wings are quite competitive along with the
services of logistics, distribution and stock done under its own expertise. This is
supported by the strong local presence of Wings through its parent company and its
enduring market experience. The IT support system along with the RIS is on a
developmental spree for Wings.

Innovative aspects
Innovation is a major strength for Wings considering its new service developments in
apparel, total brand management, security and anti-counterfeit appareling. It has also
made sufficient advances in developing the versatility of its product range,

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WEAKNESSES
Gaps in capabilities
Considering the relatively new business venture in the market there are certain
breaches in the functioning and business totality for Wings. These are pertaining to the
knowledge development of the local market for proper logistics and distribution though
the parent company is a veteran player in the Indian market.
Lack of competitive strength
o Anticipation of lack of market penetration due to developmental problems in the
initial stage
o Inability to reach the retailers and brands due to comparatively virgin presence in
the market – the big International apparel providers and Manufacturers like Arrow,
Parx, Allen Solly etc. have long term presence and setup in the Indian market with
own manufacturing bases too. This provides them an edge to sell at very
competitive market price and total control on the production management to alter
the manufacturing cost.
o Lesser brand Identity revelation due to initial stage of its business setup in India
Reputation, presence and reach
Wings is still not introduced in the Indian retail perspective chiefly because of (i) the
apparel industry is still in its initial stages due to the fact that nearly 95 per cent of the
Indian retail market is still unorganized and non-clustered (ii) Indian retailers go for their
branding internally for targeting the domestic market as they have better knowledge of
the market trend and target group preferences (iii) targeting the Indian upper market
would be costly and would enhance the product price – not profitable for targeting the
Indian this segment (iv) The big Indian Retailers‟ and brand owners‟ attempt to emerge
internationally could be supplemented by Wings‟s solution but that is still a tentative
prospect considering the scopes for expansion in the domestic market easier and still
substantial.

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* More realistic would be to develop the business for the small and medium sized
Retailers and Brands trying to make an entry into the Indian market without proper set-
up bases and Indian market related trends in its product portfolio.
Timescales, deadlines and pressures
o Pressure on the apparel, packaging and accessories industry due to the quick, short
lived fashion change and retail boom resulting from GDP hike and increase in
private consumption.
o The increasing competition requires just-in time production. However, the lack of
own production facility can initially create production management and operational
problems.
o For capacity without stock the production time is long.
Financials & Cash-flow
Wings banking operations can sometimes be hindered due to increased capital
transaction processing time. This is subsequently because of comparatively lesser use
of internet banking facilities in India, still, and complexities related to multiple banking in
between – to be sorted out soon with opening of Wings India‟s own banking operations.
IT developments
The variable data solution – RIS (Retail Information System) of Wings needs to have an
upgraded version to ensure full control over current production, lead times and stock
balance. It needs to work on the IT security actively to prevent its impact on production
and deliveries. A frequent problem is the last minute changes incurred in the design –
which disturbs the production flow and planning. RFID and bar coding is still a
weakness for Wings in its product service offering.
Management cover, succession
Due to the relatively recent formation of Wings (2011), scopes for development of an
integrated management team is quite important. It is essential to develop Wings own
working management along with its introduction of the Indian business venture for
quicker policies and decisions, better knowledge of the trends and markets in close
collaboration with the Group‟s strategic framework.

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OPPORTUNITIES
Market developments
o From local to global – Increased importance of India as a purchasing/sourcing
market for the European Retailers and brand owners of the fashion & clothing
industry. Many European enterprises are also making an attempt to venture out into
the Indian market.
o Ever more importance of the brands – Increased requirement of customer-unique
solutions based on broad offering and value-enhanced profiling for differentiating
themselves to survive the fierce competition. To have a unified profile, identity and
image for long term success and development high level of service and branding is
instrumental.
o Growth of the Indian Retail Industry – With boom in the Indian retail sector and
potential international emergence of the bigger brands it is required to have idea of
the global market trends and requirements. Branding and profiling for these
companies would be a tremendous opportunity for Wings India.
Competitors' vulnerabilities
Adding value to brand – Wings is anticipated to stand at a competitive edge as
compared to the various small local and big international players in the market.
Compared to the small domestic players in the Indian market – the local apparel
producers – Wings is poised to emerge into a apparel provider with diverse product
portfolio, designing concepts and is not just a supplier of apparels. It also has a strong
offering of branding and design and greater international presence. It is very essential
for Wings Group to maintain the same vision for its business introduction in Mumbai. As
compared to the bigger competitors in the industry, Wings is more focused on growth
based on value addition with large range of products and services to offer to shirts
rather than large scale production of bulk products.

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Industry or lifestyle trends

Growth of Brand Profiling – Brand owners are increasing their investments in measures
intended to contribute to strengthening their brands. The branding industry both in
Europe and Asia are developing fast due to general economic development, changing
fashion trends and customer needs. This adds new dimensions of innovation and
prospect for Wings.

Global influences
Changing market – Growth in GDP and private consumption has resulted in long-term
influence on the general economic development. This has influenced both low-price and
premium brands on investing more and more resources in differentiating themselves.
The increased significance of the brands means that there has been positive
development for branding and design which contributes to strengthening profiling and
increased sale.

Business research and product development

Develop joint product development function with other acquired companies to
strengthen Wings India‟s position. Opportunities to have graphic designers and brand
consultants who are specialized in the development of graphic concepts for fashion and
fashion-related products for the Indian trends and consumer perspectives is essential.
New combinations of materials, technical development and designing closer to the
market are very essential to create exciting and innovative opportunities for brand
profiling. Research and development opportunities are also immense for expanding into
the variable data operations and RIS system.

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Partnerships, agencies, distribution

Wings significant positioning into the Indian market with potential idea for strategic
introduction with the help of a strong alliance will ensure maintenance of top quality in
production, flexibility and customer adaptation as well as meeting requirements for
competitive prices. Opportunities for potential acquisitions and mergers are lucrative in
the Indian market perspective too. Integration backward along the supply chain with the
raw material suppliers is also a possible planning for reducing risks.

Seasonal, weather, fashion influences

The market for apparels moves with the developments in the fashion industry. Most of
Wings customers are in the fashion and ready-to-wear industry and demands a strong
identity and image of the garment to be successful in stores. It is when the customer
experiences a need for modernized or stronger profiling and wants to achieve a change
that Wings services are in demand.

New ESP's
Wings can develop new propositions as its selling points by concentrating more in its
research and product development. Scopes are discusses in the Enhancement of the
product portfolio in Product Development & Differentiation Strategy further in the report.

New markets
New market developments – both International and domestic stands out to be a major
opportunity for Wings. The Apparel Fashion Industry in Mumbai is having a major
economic growth due to several reasons and this is favorable for developing the
business prospects for Wings.

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THREATS
Political & Legislative Effects
Political risks or threats are industry-specific. Certain external developments may pose
to affect adversely the commercial viability of Wings future investments and business
plans. Some of them are as follows:
o Slow government decisions, adverse changes or unpredictability on foreign
investment, import, ownership, pricing or tax issues
o Cultural problems, delays or legal disputes
o Disruption of normal business due to social, political or labor unrest and industrial
action
o Corruption and bureaucratic inefficiency
o Unexpected delays and cost-overruns due to overlapping governmental jurisdiction

Environmental effects
Directly, Wings is not responsible for polluting the environment but it has to look after
and constantly monitor the effect of the players in its long supply chain contributing
towards causing harm to the environment. Wings India particularly has to introspect the
printing process in its production base to ensure proper use of dyes and chemicals for
the printing purpose.

Competitor intentions
For comparatively newer business ventures and strategic introduction plans Wings is
anticipated to have diverse threats from the competitors. It is quite difficult for it to enter
into the Retail Sector by only providing the retail & brands with apparels. There are
threats from the raw material suppliers too for the increasing direct and indirect material
costs and also irregular and inappropriate logistics of material supply and its quality.
Forward integration of the suppliers into the supply chain to acquire apparel and
Apparel companies poses a major threat to Wings.

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Market demand
Wings has to guarantee just-in-time delivery of products through efficient logistics and
distribution system, proper quality assurance, customer services and stock availability to
the customers whenever required to remain in the competition. This poses a threat to
Wings as it is still a small setup without its own manufacturing base and proper
knowledge of the India market trends, scenario and the quicker and short-lived changes
in the fashion industry.

New technologies, services, ideas

The continuous changing trends in the fashion world and hence in the requirement of
the clients has been a problem for Wings demanding constant R&D works for
developing branding solutions and also forecasting the latest trends.

Financial Risks

• Interest-rate risk – Interest-rate risk relates to the risk in the Group‟s exposure to the
changes in the market interest rate having a negative impact on the profit. During
centralized bank loans for investments prime the lending rate varies over the year
and this is a risk to the business transactions.

• Financing Risk – possible risk of financing the group‟s capital requirements and re-
financing of outstanding loans with the Wings principal bank.

• Credit risks – The risks of Wings „s customers not fulfilling their obligations, i.e.
Wings not receiving the payment of the trade receivables constitutes a customer
credit risk. Average credit term is nearly 120 days and sometimes there is potential
threat of not receiving the payments for the stocked products produced in
anticipation of the customer demand but not bought due to lack of a contract
agreement.

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RISK ANALYSIS FOR WINGS

Risk Analysis for Wings Mumbai

Factors affecting market penetration of Wings India‟s business proposition can be

characterized as external and internal factors. The external factors are those which are
factors external to the business while the internal factors include those which are risks
generated within the firms set-up or portfolio.

External Analysis

Country Factors

1. Political Stability Risk

The transfer of power between political parties at the central government level with
coalitions and differences generate a risk of political instability. This creates a stage of
fluctuating policies and decisions results in an unreliable political environment, in spite
of progressively increasing Indian economic growth. This could be a potential risk
considering Wings newer market ventures, introduction plans and investment.

2. Legal & Regulatory Risk

India's legal system is relatively impartial, free and fair but it is notoriously slow.
Disputes often take decades to resolve. The regulatory system is not immunized from
policy reversals due to pressure from vested interests and rivalries. The risk of outright
nationalization is very small, but creeping, suited to benefit the domestic companies,
and has caused companies to withdraw from the market.

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3. Infrastructure Risk
India's infrastructure risk is high with over-stretched port facilities and run down of road
and rail links with slow rate of progress. The power system is also a significant
hindrance to business due to poor financial position of the electricity supply companies.
This has in turn affected electricity generation, so that power supplies are erratic and
companies, offices and some private houses use their own back-up generating facilities.
Despite India's successes in information technology, computer and internet access is
not widespread.

Industry or Operational Factors

1. Labor Market Risk

India's labor market is restricted by a number of laws and regulations, of which the most
important are those concerning the retrenchment of employees. Labor relations in India
are relatively poor with incidents of strike action in the private sector. This could be a
risk for Wings in attempts to start their service and distribution capacity by building more
setups and recruiting more personnel with inefficient control over the business.

2. Technology Factors
Due to the rapid change in technology related to product line and production facilities,
the first generation technology can become obsolete. This may result in sufficient
increase in cost structure requiring more research and development and considering
more switching costs.

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Government/Economic Factors

1. Government Effectiveness Risk

Presently, government effectiveness risk is comparatively higher due to the divergent
interests of the members of India's coalition government. Certain governmental entities
could hinder the introduction of rapid market reforms in spite of increasing
professionalism in the Indian context. This to some extent may provide resistance to
privatization programs with degrees of red tape-ism resulting lack of foreign investment,
corruption and meager labor regulations. Wings India could face these inherent
problems in its stride for new developments in the market.

2. Macroeconomic Risk
The main macroeconomic imbalance is on the fiscal side factored by the high oil prices
which have led to widening of the trade balance.

Consumer Factors

1. Changing Fashion and trends

New fashion and trend may require new type or specific type of apparels and brands,
making the machinery and equipment for old type of brands obsolete. Innovation in the
fast changing branding industry is always a major threat.

Competitive Risks
1. Overcrowding & Superior competitive entry
The most serious risk is that too many competitors are attracted by the growth situation
of the retail and apparel business in India which resulted in subsequent growth of the
Apparel business thus entering with unrealistic market share expectations. Another
reason for this has been because of the relatively lesser set-up and infrastructural cost
related to its development.

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Internal Analysis

Technical & Quality Risks

Certain internal risks inevitable for Wings are like technical competence with the
changing trends requiring constant technical upgradation and purchase of latest
machinery and equipments for creating woven apparels and hangtags with regular
review of production schedule. Lack of an inspection plan, lack of exact performance
standards & qualification and documenting, approval and implementation of
performance standard are major issues substantiating the risk.

Logistics Risks
Logistic risks can be internal for Wings due to the inefficiency of its ERP database in
monitoring its sales, stock and distribution. This results in improper delivery to clients
with prolonged lead time. Joint ventures with sales and distribution company can on one
hand reduce the risk level and at the same time increase it as the external
transportation risks are now incorporated within the firm and needs additional
monitoring and management.

Economic/Financial Risks
Financial concerns in a huge market like India are a major concern for Wings. It has to
constantly look after mobilizing its working capital to invest in innovations related to
product, technique or allied services like sales, warehousing and distribution.
Considering the high rate of inflation in India, economic risk is foremost if not controlled.

Security & Communication Risks

Wings Mumbaiya market perspective knowledge is limited, moreover nascent at this
point in time. It is essential for Wings to strengthen its function ability and develop key
prowess independently.

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5. BUSINESS STRATEGY DEVELOPMENT

Business Strategy Development

Development of business strategies for a company can be either global representing a
worldwide perspective of interrelationships between country markets drawn on to create
synergies, economies of scale, strategic flexibility, opportunities and production
economies; or multinational or multi-domestic, in which separate strategies are
developed for different countries and implemented autonomously.

It is quite evident that a global strategy can result in achieving sustainable competitive
advantage (SCA) considering several underlying motivations like obtaining scale of
economies, global brand association, global innovation, access to low-cost labor or
materials, access to national investment incentives, access to strategically important
markets and dodge trade barriers. However, the goal of achieving significant global
strategies is usually inhibited by local biases due to decentralized structure, fluctuations
in the local market related to market dynamics, segmentation, customer motivation and
culture.

In this perspective, Wings seeks to develop its business in line to the growth of Wings
worldwide with characterization of its business suiting the Mumbai perspective. Aim of
leadership for Wings must not force the company in developing a standardized business
strategy everywhere.

Lack of proper local communication may lead to unbalanced economies of scale for
Wings which caters the need to develop a proper strategic alliance with another
company to develop the operations for Wings. Secondly, the lack of people, information,
creativity or the execution skills pertaining to the market perspective is very essential for
Wings. Thirdly, a standardization of processes and products nationally also may not be
feasible or optimal due to several reasons like different market share positions, different
images and different customer motivations.

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To excel in the Indian market Wings needs the following:

a. Recruit its own key sales personnel to advertise and sell its branding concept and
solution to the potential Indian brands and also locate new International brands
having sourcing base in India and spread its value addition concept.

b. Training and operational excellence programs for its sales and marketing team and
also identify channels of marketing in India, e.g. through trades and exhibitions

c. Focus on country specific effective collaboration into the RIS business. To expand
the business maintenance it would be essential to recruit more ERP/SAP trained
personnel into the Wings India team

Strategy Build up Proposals

It‟s being tried to structure a viable action plan with important contents for next three

years (2011-2014) for the strategic setting up of Wings Mumbai. It is important to

develop a vision for next three years highlighting some crucial aspects not only for a

new market but to construct company‟s strategic business plan. This plan might be

difficult to work with because many important aspects need to be organized and

introspected according to the changing business/market situations and requirements.

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Pricing Strategy
According to the Price Comparison Study and the Price Strategy Matrix as shown in the
exhibit 4, Wings India is evidently positioned in the Penetration Pricing zone. However,
building up its competitive edge considerably, it can attempt to move into the premium
pricing zone of offering comparatively higher price for its value added branding and
designing concepts, solutions and products. This is quite essential to build up profit
margin.

Exhibit 4: Price Strategy Matrix

Some of the key factors essential to be considered for strategic pricing are as
follows:
a. Premium Pricing - Wings must try to increase to product portfolio and through
innovation and brand developments ensure offering of value added apparels.
Through proper marketing techniques and confidence of customers, Wings can shift
to the premium product pricing band to ensure more profitability.

b. Price Discrimination - Wings must offer the same competency and product at a
lower price, initially, to capture the new market – for new customers. At least it can
offer lower pricing for solutions it aims to provide to its potential new Indian
customers aiming lesser profit margin – essential for market penetration.

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c. Price Cutting - Wings must focus on development of solutions that require less

engineering costs and more efficiency, while at the same time lower in cost of

operation to ensure product improvements.

d. Aggressive Pricing - Introduce new initiatives in advanced manufacturing

techniques and commercialization. It is a requisite to evaluate varying degrees of

aggressive price adjustment mechanisms to exploit market niches based on recent

success in winning contracts.

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6. RESEARCH METHODOLOGY

TYPE OF DATA COLLECTED

There are two types of data used. They are primary and secondary data. Primary data
is defined as data that is collected from original sources for a specific purpose.
Secondary data is data collected from indirect sources

PRIMARY SOURCES

These include the survey or questionnaire method of data collection .

SECONDARY SOURCES

These include books, the internet, the company website, competitor‟s websites etc.

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7. Sample design and Sample size

The sample size for the survey conducted was 120 respondents. This sample size was
taken on 95% confidence level and 5 significant levels.

SAMPLING TECHNIQUE

Random sampling technique was used to collect data in the survey conducted.

STUDY AREA

The samples referred to were residing in Mumbai City. The areas covered were Andheri
(e), Andheri (w), Jogeshwari (w) & students of H.K Institute of Management Studies and
Research.

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8. Analysis and Findings

AGE GROUP OF SURVEYED RESPONDENTS

TABLE 1:

Age group No. of Respondents

18 - 25 years 70

26 - 35 years 35

35 above 15

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1. Which brand of shirts you prefer?

Sales

13

43 Peter England
20
VanHeusen
Cambridge
John Players
Others

11 33

Analysis

Out of 120 respondents

 13 respondents prefer Peter England.
 20 respondents opted for Van Heusen.
 33 respondents say that they prefer to buy Cambridge.
 11 opted for John Players.
 43 respondents are mix of most of local brands and few of international brands
available in market.

It can be seen that 43 respondents comprising of around 36% of total, prefer to buy
local brand of shirts as Apple Plus, Vanford etc. And there are 33 such respondents
who like Cambridge‟s shirts for their low price and high value proposition. Further we
can see that, there are people who are ready to pay premium price for Branded Shirts
like Van Heusen & Peter England.

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2. Is it a premium/ Semi premium/ Non premium brand?

No. of Respondents

39 36

Premium
Semi Premium
Non Premium

45

Analysis

Out of 120 respondents

 36 respondents prefer to buy Premium brand.

 45 like to buy Semi Premium brand.

 39 for Non Premium brand.

It can be seen that 84 respondent comprising of 70% prefer to buy shirts of Semi
Premium and Non Premium brands. This includes brands like Apple Plus, Cambridge,
Vanford etc. This signifies the huge market available for Wings waiting to be tapped.

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3. What is your expected price range of the brand you would like to buy?

No. of Respondents

11

14
300 - 700
701 - 1000
1001 - 1500
19
1501 & Above
76

Analysis

Out of 120 respondents

 76 respondents would like to buy in the price range of Rs. 300 – 700.

 19 would like to buy in the price range of Rs. 701 – 1000.

 14 would like to buy shirts ranging from Rs. 1001 – 1500.

 11 respondents would like to purchase shirts above Rs. 1501.

It represents that 76 respondents expects the brand to be between Rs. 300 – Rs. 700,
and this is a large group which can be tapped by providing good quality shirts at this
range. Further there is a market for high end products too, which can be seen from the
fact that 25 respondents wouldn‟t mind paying for brands between Rs. 1001 – Rs.
1500+

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4. Which of the factor influence you to choose a brand of shirt?

No. of Respondents

17
31
Colour
Design
18 Material
Variety
Comfort
All of the above
26 18

10

Analysis
Out of 120 respondents
 17 respondents say that, color is the factor which influences them to buy a shirt.
 18 respondents say design.
 18 say material is a factor that influences them.
 10 respondents consider variety as a factor before making a purchase.
 26 respondents want the shirt to provide comfort.
 31 say that they want the shirt to have all of the above factors.

It can be seen that people 1st give preference to the fitting and comfort than other
factors that a shirt provides. But there is a large group of people who want their brand to
provide all factors such as Color, Variety, Design, comfort etc,

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5. On which occasion usually you buy shirts?

No. of Respondents

22

40
Festival
Gift
Offers

32 No Specific Reason

26

Analysis

Out of 120 respondents

 40 respondents make purchase during festive season.

 26 say they buy shirt to give gift.

 32 respondents purchase during offer days.

 22 respondents say they make purchase just without any reason.

It represents that India being a country with no. of festivals in a calendar year, people
tend to make purchase during these time. And there are people who wait for an offer to
buy shirts, seeking to save few amount of money on their purchase.

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6. Who influences the purchase decision in your family for buying shirt?

No. of Respondents

21
28

Wife
13 Children
Peer Group
Others

58

Analysis

Out of 120 respondents

 21 say that their Spouse influence their decision to buy shirt.

 13 respondents say that their decision to buy a shirt is influenced by their
children.
 58 respondents say they make purchase because of the influence by their peer
group.
 28 respondents say their decision is influenced by their other family members
too.
It can be seen that Peer group plays an important role in influencing the purchase
decision by an individual.

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Findings

 There are number of national and international brands available in market for
customers to choose from, but it can be seen that customers are aware of value
proposition factor. Many of them prefer shirts at economical prices and of good
quality.

 Semi premium brand are also preferred as compared to Premium brand by

customers in market and shirts ranging from Rs. 300 – Rs. 700 are easily
movable. Further it can be seen that customers don‟t mind paying extra premium
price for Branded shirts too.

 Customers want their shirt to provide them overall satisfaction in terms of color,
variety to choose from, material of shirt etc. But comfort is also an important
factor for which people look for in their shirt.

 As India is considered as country of festivals, this provides huge opportunity to

marketers to market their product. Further it can be seen that many people make
purchase during festival season.

 Peer group influence most of the purchase decision for buying shirt.

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9. CONCLUSION

As there is a huge market available for Wings in segment ranging from Rs. 300 – Rs.
700 which people expect their brand to be in. And that is the segment which Wings
would like to tap by providing Branded shirts at the price expected by customers.

The company will face intense competition from National and International brands like
Apple Plus, Vanford, Cambridge, Van Heusen, John Players & Peter England. But it will
require continuous effort in Marketing, R&D, and Operations on part of Wings to
compete with such settled brands. Wings will have to constantly come up with new and
innovative design and marketing schemes for its consumers.

The country with festivals coming almost every month provides Wings with good
opportunity to target people making purchases during festivals seasons. And further
Wings must come up with new designs, color shades of shirts which provide comfort to
customers.

It can be assured that by implementation of the presented strategies and consideration

of the key factors given in this project, Wings will be able to achieve their aspired vision
exacting perfectly in the national perspective also.

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10. SYNOPSIS

Introduction to the Area of Research

A feasibility study looks at the viability of an idea with an emphasis on identifying

potential problems and attempts to answer one main question: Will the idea work and
should you proceed with it?

Research Objective

The clear cut objective behind this research is to do an empirical study on Apparel
industry in India especially Mumbai and then conduct a feasibility study to check the
viability of launching a new brand of shirts. This study would help me decide whether I
should launch my brand or not by understanding and studying the competitors in this
very desired industry.

Research Methodology

This research conducted consists of both primary and secondary research, the aim is to
understand the competitors and expectation of customers in the shirt market.

Justification for choosing a particular research proposal

The Indian apparel industry, which took off in the mid 60s, is worth around $18 billion
now. The growth over the years has been significant, and technology does have a role
to play in that. In fact, the industry has evolved gradually in terms of technology
adoption and has reached a critical mass today.

To give the buyers the freedom of choice, the Apparel and Fashion industry of Mumbai
operates through an attractive chain of retails stores, shopping malls, superstores and
multiplexes. From the funky style accessories to branded eastern and western wear, the
shopping centers of Mumbai are known to have an innumerable array of fashion
products.

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The prompt following up of the newest trend in the Fashion world and a very affordable
price tag are the two prime factors that go a long way in making Mumbai the abode of
style apparels. The city is popular for both expensive multi-storied complexes as well as
cheap road-side shopping corners.

As the global companies vie to have a place in the heart of Mumbai, the city continues
to celebrate the carnival of Fashion through its enticing string of Apparels and Fashion
stores. Since, Mumbai can be said to be the Fashion Capital of India, I would like to
conduct a feasibility study for launching my brand of shirts with special emphasis on
Mumbai region.

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11. Annexure
 Sample of Shirts by Wings

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Questionnaire

Age: ______ Gender: _________ Address_______________________________

1. Which brand of shirts you prefer? ______________________

2. Is it a premium/ Semi premium/ Non premium brand? __________________

3. What is your expected price range of the brand you would like to buy?

___________________

4. Which of the factor influence you to choose a brand of shirt?

Color

Design

Material

Variety

Comfort

All of the Above

5. On which occasion usually you buy shirts?

a) Festival b) Gift c) Offers d) No specific reason

6. Who influences the purchase decision in your family for buying shirt?

a) Wife b) Children c) Peer group

d) Others (Please Specify) ___________

Thanking you for spending your valuable time

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13. BIBLIOGRAPHY

http://marketingteacher.com/Lessons/lesson_pricing.htm
http://www.economywatch.com/indianeconomy/indian-economy-overview.html
http://www.companyadvice.com/sbi_bankacntoperations.htm
http://www.companyadvice.com/sbi_loansyndication.htm
http://www.indiastrategy.com/polrisk.htm
http://www.centurytext.com/

Logesh Joshi – MMS 2009 – 2011/23