MARKET ANALYSIS

1. Specification of objectives ---

 Potential buyer
Girls : age (12-25)
Women : age (26 & above)
(Analyzing the needs and wants of girls and women living in Lalpur &
near by area.)

 Preferences:
According to the taste of prospective buyers , list of apparels have been
classified below:
Kurtis
Blouse
Suit
Lehenga
Sharara
Tops
Skirts
Pllazo

 Capital:
At Initial seed funding level,Their will be equal monetary contribution,
by the owners of the company and the loan taken from bank.
At later stages, contribution by venture capitalists can be considered as
well.

 Human Resource:
The firm will be a small organization with limited employees which will
be able to attract and retain talent with respect to the online n off lines
retailing industry. This is because, though the human resource required is
moderate-high skilled. Relative to competitors our firm will employee
better qualified employees as can be inferred from the Job description.
Capabilities of the firm

1) Technology
The firm will maintain its website and its store which provides the means
by which a customer can make a purchase. To maintain, upgrade and
improve the website and the user experience, our employees will work.

2) Marketing
The firm will be very responsive to market trends and will always keep
the latest designs and merchandise in its online catalogue and inside the
store.

3) Advertisement
The firm will use social networking websites like Facebook and Twitter
to expand its customer base.It will position itself as a fashionable new
age brand. According to plan, it will launch major marketing campaigns
every year .Marketing is very important for a company engaged in online
retailing. The firm will use mostly viral marketing trends and internet for
its popularity coupled with occasional offers and referral discounts.

4) Promotion
Promotion is the process of informing customers about the availability
and uses of products and services and persuading them to buy.

Our promotional activities will include :

*PAMPHLETS -- To create awareness about customize tailoring

,available in online/offline mode.

*HOARDINGS -- To attract the passers by and newbies in the city.

*MESSAGES -- Through way2sms.com.

*RADIO -- By using the city’s most heard channels like Dhoom

104.8fm.

*AUTO’s & VAN’s -- Acting as a moving source of advertisement

and promotion.
 PHYSICAL DISTRIBUTION IN MARKETING

Physical distribution is the group of activities associated with the supply of finished
products from the production line to the consumers.

The type of distribution channel can vary from one firm to the other, depending upon
the type of product and the necessity it has to customer satisfaction.

And therefore our firm is going to stage products in such locations that will support
order , enabling shipments and coming up with a rapid and consistent manner to
move up the product helping the company to be successful in dynamic markets.

Accounting for nearly half of the entire marketing budget of products , the physical
distribution process typically garnishes a lot of attention from the business managers
and owners .
As a result these activities are often the focus of process improvement and cost
saving initiatives in many companies.

TARGET MARKET

As our firm is based upon customized apparels and fashion retailing , our
merchandise will be preferred by the one’s who prefer comfort and have love for
fashion.
Therefore,our firm will be providing the users with the facility to designe the outfits
as per their wish.At the same time, which will be giving the girls/women the
opportunity to explore their creative side .
Hence, keeping the ideas and wants of customer as well as the firm,

We have categorized our target market on following basis :--

* DEMOGRAPHIC

Age - Females
Girls--(12 to 18) yrs & Women--(19 n above)yrs

* INCOME GROUP

Mid to high income

*ALL ETHNICITIES WELCOMED!

*GEOGRAPHIC REGION

Lalpur and near by areas.

*OCCUPATION

College going girls , Housewives , Working ladies

* Someone who needs the convenience and speed of shopping at

home.

* The one’s who want to try their hands at personally designing their
outfits by selecting the various designs available at our store and
Website .

*BEHAVIOURAL VARIABLE
Shopping is a social activity ,the one’s would like to personally
Stylize their dresses.
 MARKET SURVEY

CONCEPTUALISATION -- THE BLUE PRINT OF THE RESEARCH

*Identification of appropriate survey area and place in Ranchi --We found the girls
and ladies living in around lalpur area to be right for our
survey as our,s is a female based merchandise business ,
and the number of females residing in this area is quite
huge

*Techniques -- Questionnnaire’s are prepared and distributed to the sample group for finding
the impact of promotion on sales and the problems of
retailers.

The questionnaire consisted of the following questions :

~Age
Below 20 yrs 21-30yrs 31-40yrs >40 yrs

~ how often you shop for yourself in a month?

Ocassionally once twice >twice

~ would you like to customize your clothing?

Yes No

~ Normally,which mode of shopping you prefer?

Online Offline

~ What changes would you like to see in the traditional form of

Shopping ________________________________ .

~Select the reason for making purchase in your preferred store ?

Discount Proximity Variety Service

Ambience
*In similar ways , the Collection of data related to customer preferences
promotion and sales is captured.

*Analysis of the data related to promotion and sales is done by the professionals.

*Sorting the data area wise is done

*Analysis of promotional activities.

*Analysis of sales revenue of companies.

* Identifying the loops and gaps in the project if any and rectify the changes
possible.

*Findings of all the analysis done above.

*Giving recommendations for enhancing the effectiveness of promotional

activities and for sorting out the issues of firm.

RESEARCH DESIGN
The research design was exploratory and descriptive in nature as the aim to do
research is to observe and describe the findings as per the requirement of firm.

RESEARCH TECHNIQUES
*Questionnaire
* Group Discussions
*Personal observations

RESEARCH TOOLS
A questionnaire was prepared to understand the notion of customers available
in the targeted region.
It was made to analyze the effectiveness of promotional activities and to
forecast the sale.

SOURCE AND TYPE OF DATA

For the present research purpose , data is collected in two ways:

Primary data - In the form of questionnaires and group discussions

Secondary data- Through statistical year books ,newspapers &planing reports.

PRICE -- The firm will go for optimum pricing factor in all our costs coz it will maximize our
margin while remaining attractive to our customers.
Keeping the above factor in mind,we’ll go for average retail and value based pricing.

DEMAND FORECASTING

After gathering information about various aspects of the market and demand from primary and
secondary sources, we have made the attempt to estimate the future demand.

And for the same purpose we have chosen a JURY OF EXECUTIVE OPINION METHOD.

This involves soliciting the opinion of group of managers and experts on expected future and
sales.
It is an expeblitious method.
It permits consideration of a variety of factors like economic plan,competitive environment
,consumer preferances,technological development and so on.
The disadvantages include biases underlying subjective estimates cannot be easily traced.

VRIN Analysis

VRIN Analysis enables SME managers to recognize their core

competencies and key sources of competitive advantage. VRIN tells
SME’s what they should do, given the relative strengths and weaknesses
of their resources and capabilities.

Valuable Rare Inimitiabl Non- Remarks

e substitutable
Capital Yes Yes No No Comparative
competitive
advantage.

Human Yes No No No
Resource
Partnership Yes Yes No Yes Sustainable
with brands competitive
advantage

Technology Yes Yes No Yes

Order Yes Yes No Yes Comparative
processing competitive
& delivery advantage.

Revenue Model
The business model is based on procuring current season merchandise and making
them available on the portal at the same time as in respective retail brand outlets. All
these products are offered to customers on MRP. It is a Business to Customer (B to
C) revenue model.

(Customer orders from website and

makes payment)
CUSTOMER FIRM
(Visit store and pays in cash/card)

SHIPPING PACKAGING ORDER

PROCESSING

THREE STEP’S

CREATING CUSTOMER VALUE

*satisfying customer needs

*creating new need

MARKETING
*brand
*solutions

SELLING
*online/offline

Value chain analysis

Out of all the primary and support activities mentioned in the diagram,
the firm performs the following activities:
*Firm infrastructure
*Human Resource Management
*Technology
*Procurement
*Outbound logistics
*Marketing And Sales

About the value chain analysis

The basic requirement of firm is to reflect youthfulness, freshness, and vibrancy

while incorporating fashion as the overall theme.
Human resource management
It is one such support activity that can make or break any organization in the long run.
So the policies of the firm will be employee friendly. The firm focuses on work-life
balance.

Technology
This is what differentiates e-commerce from other types of retail. Technology allows
online retail to be possible by hosting the website in which the customer can browse
through the online catalogue, choose what one wants to buy, make online payment
and receive the goods at his/her doorstep.
Almost all e-commerce companies maintain their own websites by themselves; this
allows them to make frequent changes and corrections as and when needed.

Procurement
It is important for firm as they deal in merchandising;
they receive the finished goods from various brands, store them at their various
warehouses and then ship them to the customer when ordered.

Outbound logistics
It is one of the crucial activities of firms.
They use a third party courier for their outbound logistics.
It is their responsibility to give the demanded product to the third party courier as
soon as possible.

They then keep track of the lead time and try to reduce it with collaboration from the
courier company.Marketing and Sales is a core activity of the firm.
 Porter’s Five Forces Model

Porter's five forces analysis is a framework for industry analysis and business
strategy development which draws upon to derive five forces of industry that
determine the competitive intensity and therefore attractiveness of a market.
They consist of those forces close to a company that affect its ability to serve its
customers and make a profit. A change in any of these forces normally requires a
business unit to re-assess the market place given the overall change is industry
information.

Threat of New Competition:

In the Online and offline retailing industry firms face major competition from its
competitors because the barriers to entry/exit and setup capital and working capital
are low in this industry, threat of a new entrant becomes high.

Threat of substitute services:

In the online mode of retailing ,firms can be considered to be a substitute to the usual
shop retailing . Firm cannot provide the customer with a real retailing experience but
at the same time gives the convenience of shopping from home/office. Currently
there does not appear any other substitute service. Thus this threat is low.

Bargaining Power of Customers:

The bargaining power of customers is also described as the market of outputs: the
ability of customers to put the firm under pressure, which also affects the customer's
sensitivity to price changes. Customers can very easily switch to some other online
retailer; this puts pressure on the company to continuously improvise on their service
so as to keep their users satisfied. Therefore bargaining power of customers is high.

Bargaining Power of Suppliers:

The suppliers puts another pressure on the firms. They can demand an increase in
their profit margin and put pressure on the company. The supplier may choose a
competitor of the firm to do business since the supplier switching costs are low.
Therefore the bargaining power of suppliers is high and therefore our firm will need
to have good supplier relations.

Intensity of competitive rivalry:

For most industries, the intensity of competitive rivalry is the major determinant of
the competitiveness of the industry. In this particular case the current rivalry, rather
competition is not very high, but in future it will be.
Porter’s five force’s model