IA resham.doc

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RESEARCH QUESTION:

Should PoojaArya open a design studio in Jaipur to maximizevisibility in the local market?

RESEARCH PROPOSAL:

Introduction:In 2! "iss Pooja Arya launched her o#n brand calledPooja Arya under her $amily%s company #ith her uni&ueselling point as clothes made $rom block print $abrics' (hereis no retail outlet $or Pooja Arya but it is sold at designerbouti&ues all over the #orld such as )imaya and *gaan' Itoutsources its production to other companies in the same

line'Its target market ranges $rom upper middle class to theelite class! as it is a designer label and priced at a suitablyhigh rate'

Rationale:I chose this topic as I have al#ays been interested in $ashionretailing'I aspire to open a similar clothing retail business inthe $uture' Also! as the business is looking into opening retailoutlets! my research #ill prove to be use$ul to them'

I #ill make use o$ the $ollo#ing tools $or my research+ ,e#in%s $orce $ield analysis- to #eigh the non-$inancial

$actors $or and against this decision'

S.*( analysis / this #ill sho# the company%sthe

current and $uture standing

0ecision (ree / the $inancial analysis o$ the decision to

open retail outlets #ill help in decision making'

Anso$$ "atrix- #ill sho# in #hat direction the business

needs to gro# and #here its position is in the market'

Porter%s generic strategy / $or a retail outlet location!this tool #ill analyze #hat strategy Pooja Arya shouldconcentrate on'

1ost ene$it Analysis - to kno# the $inancial bene$its

and dra# backs o$ opening the retail outlet'

Porter%s $ive $orce analysis -


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Areas of syllabus:

34 5nit 3- usiness organization and environment'3'6 *rganizational Planning tools'24 5nit 7 - "arketing'

All o$ the above have been taken $rom the book / usinessand "anagement by Paul 8oang'

Anticiated difficulties:(here may be some con$identiality issues regarding $inancial

data' 9or this! I #ill provide her #ith a certi$icate stating thatthe in$ormation #ill only be used $or research purposes'"s'PoojaArya%s house is not in the area #here I reside' (his#ould prove to be time consuming'Also! she along #ith her brother is the only heads o$ thebusiness! restricting my base o$ research'

Action plan

Date Action Anticipated Difficulties3stjuly / 2:thJuly 9inalize the &uestion

and start the researchproposal by talking tothe $irm about the idea'

Start the general

outline o$ the internalassessment and get itassessed'

(ook a lot o$ time to decide

on a topic and a$ter #ardsstarted the researchproposal very late'

3st/ 3:thaugust Prepare a &uestionnaire

$or survey and completeall intervie#s!

.rite do#n all the

&uestions asked andans#ered! theninterpret all the neededin$ormation $rom theintervie#'

.as very di$$icult to

interpret the details in theintervie#'

0i$$icult to get unbiased

ans#ers'


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"ake conclusions and

give recommendationsto the $irm'

36th / ;th

august9irst dra$t o$ the Internalassessment

,ot o$ errors #ere

diagnosed

"any problems such ascorrespondence to dataand availability o$additional in$ormation

3thSeptember Second dra$t o$ theInternal assessment

9e#er errors

2thSeptember Submission o$ $inal dra$to$ the Internalassessment


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Pooja Arya is a brand that #as launched in the year 2'

(his brand concentrates on clothing $or #omen only' Itsuni&ue selling point is its block prints and traditionally #ovencloth #ithin


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#indin$s


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(he survey #as carried out on a total o$ 77 people #ithconsumer pro$iles o$ 3 to 6: years #ith incomes bet#een


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(he #illingness o$ the consumer pro$ile to spend is bet#een


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As observed! sal#arkameezes and saris are much in demandby the upper class society o$ Jaipur' Pooja Arya surely has achance in this market! as her 5SP is Indian attire' .ith a

substantial disposable income! PoojaArya%s target market#ill be ready to pay her high prices and be satis$ied #ithgood &uality as #ell as mentioned by many people #henasked #hat they like about Pooja Arya'


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(he above t#o pie charts clearly tell Pooja Arya #hat itshould keep in mind #hile entering the retail market in

Jaipur' (he expectations $or trained sta$$ and a #elcoming$eel in a store is very important $or consumers' Also! PoojaArya should be care$ul and avoid dra#backs like lack o$variety o$ stock and uncom$ortable $ittings'


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Jaipur still being a small developing to#n! ne#s spreads very&uickly' (he main source o$ advertising and kno#-ho# isthrough #ord o$ mouth and $riends% recommendations'

(hese can be very bene$icial or damaging at the same time

$or the brand image o$ Pooja Arya' *ne #rong decision canchange its reputation! #hich might cut do#n sales'

PoojaArya%s brand visibility is very #ell established already inthe Jaipur market' ut sustainability #ill be needed tomaintain and@or $urther increase sales especially #ith theproposed retail store%s commencement'

(o conclude my $indings! the consumer pro$ile o$ PoojaArya%starget market is in the age group o$ 7: to 6 years! in theincome group o$


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(he main advertising in Jaipur is through #ord o$ mouththrough #hich 2 o$ the people out o$ a total o$ 77 kno#Pooja Arya' (his in$ormation #ill help the business by makingsure that it provides to all its market%s demands and needs'

AnalysisS%OT

Strengths+

eing one o$ the ridal Asia designers! Pooja Arya gets

brand image and visibility'

Pooja Arya sells a uni&ue Indian style o$ $abric and

clothes! #hich adds an extra value and justi$ies highprices'

(hey outsource thereby cutting their costs'

Short chain o$ command'

.eaknesses+

It doesn%t have its o#n location or retail outlet so as to

give better service to customers and kno# themdirectly'

1apital! because o$ less share holders! can be

insu$$icient $or expansion'*pportunities+

I$ >0P o$ India increases! there #ill be more

dispensable income $or upper middle and elite class tospend on expensive commodities'

It has an opportunity to get ne# trends! designs and

$ashion to the direct potential customers in sho#s likethe ridal Asia'

(o increase capital! the company can invite other

shareholders or invest in the company so as o increasecapital and to achieve gro#th $or the business'

(hreats+

(here is cut throat competition in the $ashion market!

especially #here brands are concerned'


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As "iss' Pooja Arya plays a dual role o$ the o#ner as

#ell as the designer! she may loose $ocus'

1osts to change and adapt #ith the on going trend

comes up to be very high #hich #ill push up prices'

>etting skilled labor in Jaipur might be very di$$icult andtime consuming'

(he market is very dynamic and trends pass by very

&uickly' (his puts a lot o$ stress on the o#ner'

(he #eather o$


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"oreover! at this juncture diversi$ication poses too high arisk $or the business to take' Its parent brand hasn%t beenestablished into the market yet and there$ore diversi$y mightnot prove to be success$ul'

"arket development is the correct strategy as Pooja Arya! byopening a retail outlet! is expanding into a ne# market #ithher existing products' (his is a medium risk strategy #herein! the business kno#s the product that is designer clothes!#hich is being sold to the market very #ell' Slight changesmight be needed in the price! design and marketingstrategies to suit the trends! tastes and designs according tothe market segment%s likes and demands'

PORTER'S #I(E #ORCES ANAL)SIS


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9or Pooja Arya line o$ clothes! the threat o$ ne# entrants isgoing to be comparatively high as couture designing has lo#barriers to entry and it appears to be a lucrative $ield $ormost individuals #ho #ish to make a career in $ashiondesigning as the pro$it margins are really high'2

(hreat o$ substitutes #ill be relatively high $or Pooja Aryaline o$ clothes as there are innumerable $ake copies o$designer #ears in the markets all over the #orld' Bspeciallyin India! there are many people #ho are brand conscious butcannot a$$ord the original designer clothes' (his $urtherincreases the threat $or her business'

As Pooja Arya%s uni&ue selling point is outsourcing uni&ue$abrics $rom unconventional sources! the bargaining po#ero$ suppliers #ill be lo#' Cot many businesses step into the

market $or uni&ue $abrics as it is very expensive;' (here$ore!Pooja Arya%s suppliers #ill co-operate and might #orkpre$erentially $or Pooja Arya'

2Intervie# o$ "s' Pooja Arya Do#ner4;Intervie# o$ "s' Pooja Arya Do#ner4


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argaining po#er o$ buyers is very high in the $ashion #orld'People #ho are ready to pay a high price $or clothes #anttop-notch &uality and style' Bxclusivity is very high on thesecustomers% priority list' (here are many high class designers

like Pooja Arya in the market #hich might steal it%scustomers incase o$ a slip up or mistake $rom Pooja Arya7'

(he competitive rivalry #ill be high as Jaipur is acomparatively small market and there are many designers#ho are #illing to provide similar designs and clothes asPooja Arya:'

(here$ore! it can be in$erred $rom the Porter%s $ive $orcesanalysis that Pooja Arya has many threats in her #ay' 8ence!

it is recommended that she should maintain strong contactsand bonds #ith her suppliers' Also! the business shouldadopt a promotional strategy that #ill make Pooja Arya lookdi$$erent and uni&ue in $ront o$ the other brands in themarket' (his #ill give her a competitive edge above itscompetitors'

(he business should concentrate on one strategy out o$Porters >eneric Strategy' Pooja Arya can choose to $ocusmajorly on the elite class and there$ore promote the brand

accordingly' As this segment o$ the society does not hesitatein paying a huge amount o$ money $or clothes! Pooja Aryacan decrease costs and put a higher mark up $or pro$it' (heother option is $or the brand to adopt the di$$erentiationstrategy! #hich #ill entail coming up #ith designs andpromotes unkno#n and very rare in the market' (his #illattract the customers and brand loyalty might increase' (his#ill reduce the threat o$ competitors'

7Intervie# o$ Pooja Arya%s competitor / Cidhi (holia:Intervie# o$ Pooja Arya%s competitor / Cidhi (holia


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In the #orld o$ $ashion and design! the elite class looks $orstyle! $reshness! and class'6(he 5SP o$ Pooja Arya is theemphasis on


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Another possible promotional venture could be to sho#caseher designs at the next Jaipur Girasat ,iterature 9estival'Success$ul artists and authors come to this $estival' (he#orld o$ literature #elcomes tradition in any $orm and so

there is a strong chance $or Pooja Arya to establish itsel$ inthis sect o$ the society as #ell' (his #ay it can attain a largermarket share by expanding its reach to the $amous' Also! i$possible "s' Pooja Arya could get a #ell-kno#n $igure toendorse her products $or a sho#case' (his #ay! #henassociated #ith a big name! the brand could get a mark upin not only sales but also in brand image and visibility' .iththe retail outlet plan in action! the buzz #ould surely spreadin Jaipur as #ell! #hich #ould insure Pooja Arya%s spread o$name through #ord o$ mouth locally'

.ith a lot may ban&uet halls coming up in Jaipur! anexclusive previe# o$ Pooja Arya%s collection can beconducted $or t#o to three days' (o maintain the class andbrand image! it could be only by appointment and@orinvitation' (his insures no #aste o$ time on other customersbut the potential ones' (he rent o$ the hall #ill be and addedcost ho#ever the visibility attained by the previe# mightincrease purchases' (his previe# #ill #ork like a tempting

promotional strategy $or the customers'

(o leave a lasting impact on Pooja Arya%s customers! amemento could be sent out on each o$ their specialoccasions such as birthdays or anniversaries' A close contact#ith customers is one o$ the best #ays to attain brandloyalty' (his #ould make them $eel cared $or and satis$ied#ith their association #ith Pooja Arya' (his #ould re&uirerecording the dates and spending on the souvenirs but in thelong run might result in brand loyalty'

*ne advantage to Pooja Arya in context to the local market#ould be that the brand makes clothes suiting the style!trend and environment o$ Jaipur' 1ompetitors in 0elhi or"umbai #ill not be catering to such demands as their majormarket is situated in their respective cities' (his #ay Pooja


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Arya is providing traditional $abric o$ a #orld-class &ualityand exclusivity and o$ a high com$ort level' Bven though the

Jaipur market is smaller compared to metro cities% markets!even a small market share counts $or a success$ul brand'

(here$ore! by concentrating on passing trends and traditionand its competitors! Pooja Arya can maintain and increase itspro$its and brand image' (he #orld o$ design has a lot too$$er and there$ore it should be care$ul not to drop its level o$&uality and prints to save itsel$ $orm losing market share' yadopting promotional activities! the brand can increase itsvisibility and! i$ done so e$$ectively! its sales as #ell'

1onclusion

A$ter meticulously analyzing all the $actors! I think it is$easible and a good gro#th strategy $or "s' Pooja Arya toopen an outlet in Jaipur' (he market is going to beresponsive to this outlet and increase business! as mymarket research had indicated' Since! tradition never goesout o$ $ashion33! this reduces the risks o$ a $all in demand $orPoojaArya%s clothes' (here$ore my research sho#s that sheshould open an outlet' 8o#ever! "s' Pooja Arya should alsoconsider the $inancial $ront o$ this project to arrange $or

ade&uate resources'

,imitations and $uture research+1ompetitor activity is not analyzed in depth'I$ Pooja Arya issuccess$ul! there #ill be some reaction $rom her competitionin jaipur! #hich she needs to keep in mind' Also! her 5SP hasbeen bridal #ear $or years no# and modi$ying into party#ear and casual #ear might be a challenge! #hich couldundermine the success o$ the venture'

9or research "s' Pooja Arya should do a detailed $inancialanalysis to check the viability o$ this project' *ne aspect thatshe can use to her bene$it is that she can undertake theavailability o$ skilled labor in Jaipur to create the kind o$specialty garments she is kno#n $or'

33Intervie# o$ "s' Pooja Arya


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