Marketing planning Essay (2615 words)

Introduction:

This assignment is submitted in partial fulfillment of the selling planning unit. I have been asked to carry on macro-environmental and micro environmental selling audit to place the current and cardinal issues confronting the organisation & A ; I propose to establish a Fabindia shop in Milan, Italy.

The study outlines grounds for set abouting the audit and appraises the procedures, theoretical accounts and techniques used for the audit. It besides assesses the external and internal selling environment for the administration and summarises the impact of this analysis for the administrations selling program and selling mix. Finally have proposed a selling program & A ; inside informations about how it can be executed.

1.About Fabindia:

1.1 History:

The first Fabindia mercantile establishment was set up in 1961 by John Bissell to supply a platform

for traditional craftsmans and pressmans to market their green goods & A ; to showcase diverse

trade traditions of India.

1.2 Current Doctrine:

Eco-friendly, ethical & A ; manus crafted Indian merchandises.

Mission:

Traditional, cultural merchandises making sustainable employment for craftsmen and

craftsmans in rural India.

1.3 Current Target Audience:

Retail-

Age Group: Not specific

Sexual activity: Male & A ; Female

Economic Class: Upper and higher in-between category.

Geographic Topographic points: Metros, tier 2 & A ; tier 3 metropoliss.

Institutional Buyers:

Heritage hotels, resorts & A ; corporate houses.

1.4 Current Merchandise Scope:

Garments for work forces and adult females, Accessories, Home Linen and Furnishings,

Home Merchandises, Floor Coverings, Body Care Products and more late, Organic

Food Merchandises and cultural jewelry.

1.5 Timeline of its shops:

1976 – 1st retail mercantile establishment, New Delhi.

By 2001 – 6 shops concentrated in the tube metropoliss.

By the terminal of 2004 – 20 shops.

By the terminal of 2007 – 75 retail shops across India and in add-on, shops in Dubai,

Rome and Guangzhou in China.

By 2008 – 99 shops.

By 2009 – 108 shops.

By 2011 – Target of holding 250 shops.

Fabindia: Retail Snapshot

• 108 shops across 40 metropoliss
• 6 shops abroad. – Dubai, UAE, Bahrain ( three shops ) , Doha, Qatar and in Rome, Italy.
• Online Shopping & A ; Exports to 34 states

1.6 Gross saless & A ; Gross:

2000-01: Employee turnover of 36 crore rupees

2005-06: Employee turnover of Rs 130 crore.

2007-08: Gross of Rs 257 crore

2008-2009: Gross of Rs 300 crore. but growing more than halved to 17 % from

40 % in 2007-08.

By 2011: Target turnover Rs 1000 crore.

1.7 Future Plans:

Leveraging the Organic Products subdivision, kids ‘s market.

Expand nationally & A ; internationally.

100,000 stockholders and quintuple addition in skilled occupations in the rural sector.

Reduce the figure of defects in the merchandises to a minimum which include hemorrhage of colorss, shrinking etc.

2. Internal Audited account:

2.1 SWOT Analysis:

3. External Audited account:

3.1 PESTEL Analysis:

3.2 Impact of Porter ‘s 5 Forces:

Menace of Subsitutes:

There should non be menace of replacement to the merchandises of Fabindia since they are eco-friendly & A ; organic merchandises which have replaced the ordinary conventional merchandises & A ; are in immense demand.

Market Cleavage:

4. Market Cleavage:

• Fabindia intends to go on spread outing internationally & As ; presently – 6 shops abroad.
• Milan – really of import metropolis in Italy & A ; one of universe ‘s major fiscal & A ; concern Centres.
• Main end of Fabindia – to advance huge & A ; diverse trade traditions of India.
• Since there is a turning involvement among Europeans about Indian handcrafted merchandises, Indian fabrics, art & A ; civilizations, Fabindia holds batch of possible in European market.
• Fabindia – really ethical & amp ; eco-friendly company which supports many causes & A ; Europeans like being portion of such enterprises.
• Fabindia does non aim any specific age group or any specific economic strata, has something for every one.
• Fiera Milano – metropolis ‘s ExhibitionCenter and Trade Fair composite is one of most of import in the universe & A ; Milan is one of manner capitals of the universe. Fabindia wants to increase its planetary range, & A ; since batch of international purchasers visit Milan, it can turn out to be great chance for it.
• The employment rate in Milanis 95-96 % & A ; therefore the disbursement power of people is really high.

Therefore opening a shop at Milan should turn out to be good.

5. Proposed Marketing Mix:

Execution:

• They should transport out extended market research, survey sort of merchandises established shops are selling. Meetings with interior decorators & A ; craftsmans can be conducted – interior decorators give inputs on current market tendencies and emerging designs to weavers & A ; brainstorm advanced techniques.
• They can plan fashionable merchandises stressing on Indian workmanship & A ; explore rich Indian cloths with legion surface ornamentation techniques.
• Range will be entirely designed for the Milan market.
• They can take client feedback through their online web site & A ; know penchants of their clients & A ; design consequently.

Merchandise scope – all right combinations of Indian aesthetics and western design esthesia.

• Farmers will provide Fabindia with organic assortments from topographic points like Himachal Pradesh, Punjab, Coorg, Tamil Nadu.
• They believe – giving husbandmans just monetary value for their green goods, and providing really highest quality nutrient to their clients.

5.2 Monetary value:

Merchandises – different monetary value scopes. Merchandises will be low-cost, will give ‘value for money ‘ . It hasexpanded its range- to supply something for all its clients.

Execution:

5.3 Topographic point:

• Fabindia should be strategically located at Sesto San Giovanni – full of commercialism, eating houses, hotels, promenades, rail station, ruddy line of Metro. Brand Zara place is located there & A ; Habitat is close by.
• 2 eco hotels Hotel La Residenza – Via Scialoia or Hotel Ariston, Galeria del Corso near Sesto San Giovanni can be considered.
• Piazza del Duomo is besides really good location which attracts batch of people – dress shops, bookshops & A ; large shops to indulge in elegant and cultural shopping.
• They can haveconcept shops or premium shops located in celebrated historical landmarks and renowned large heritage for convenience of possible purchaser and creative activity of overall consciousness.

Execution:

• With aid of Search Office Space ( SOS ) , can happen appropriate

topographic point.

• FREE Service – They are paid by advertizers.
• Impartial Advice – Their mission is to happen infinite that meets YOUR demands.
• They provide with seamster made options that match your specifications.
• They take attention of full hunt – show options, assist make a short list, arrange for

you to see infinite, comparison monetary values, do your concluding choice and set up your move-in day of the month.

5.4 Promotion:

• Promoting its merchandises, largely through postings, word of oral cavity and events.
• Puting ads in local newspapers about ongoing events organized in shop & A ; to increase consciousness about shop locations, usinglot of in-store postings to make consumer consciousness about merchandises and rural providers etc. , seting up billboards, making awareness – societal causes which they represent & amp ; associate with, promote through web site.

Execution:

• GlobalCom PR-Network is – worldwide group of full service PR and Marketing Communications bureaus. It – more than 40 spouses and attached bureaus cover all member provinces of European Union. Their strength is their local expertness in all European market.
• Portfolio includes:
• Public & A ; Analyst Relations
• Selling Communicationss
• Online Selling
• Market Research
• Media Training
• By prosecuting professional PR bureau – conversant with Italian Market environment, different schemes can be devised to advance shop.

5.5 Procedure:

It believes: “Delighted Customer is our Best BrandAmbassador” . It should concentrate on client keeping & A ; build loyal client base.

Execution:

• It should implement CRM package – aims to assist keep centralised database to maintain records of clients, inside informations about past purchases, penchants or by holding Value Customer Card – gives history & A ; client inside informations each clip, card is swiped.
• They should hold synergistic events for clients with design squad, clients can acquire manner tips, Feedback Sessionss between Fabindia interior decorators & A ; clients & A ; loyal clients can be given certain privileges & A ; acquire particular invites to events organized by Fabindia like exhibitions, concerts. & A ; will assist it in retaining clients & A ; bettering trueness.

5.6 Physical Evidence:

By backing and patronizing events- originative communicating tools & A ; advanced activities – attract clients & A ; deriving maximal promotion possible.

Execution:

• Having in shop postings to make consumer consciousness about dyes used in merchandises, merchandises and where they come from, i.e. rural providers
• Having decor and layouts – highlight traditional and natural focal point, holding catalogues giving inside informations – current ware, LCD screens playing how artisans work & A ; industry, brochures informing – Fabindia events lined up, Indianised eco-friendly fashionable carry bags with individualized thank you cards, cusps informing – causes Fabindia supports & A ; eco-friendly patterns it follows.

5.7 Peoples:

• Peoples working with and for Fabindia – representatives of Fabindia. They should be cognizant of all its merchandises, be knowledgable, friendly, helpful, attentive, speak batch of linguistic communications and develop good client dealingss.
• Shop forces – encouraged to have on apparels that reflect Fabindia ethos of traditional and natural expression.

Execution:

• Fabindia should register on web site of enrolling bureau – aid it to happen its possible employees.
• Fabindia should develop people with required cognition and client service.
• Peoples working in shop can go to regular preparation programmes.

6. Ansoff ‘s Grrowth Strategy:

6.1 Selling STRATEGY FOR FABINDIA MILAN USING ANSOFF ‘S GRID

• Milan – possible market with turning involvement among Europeans about Indian handcrafted merchandises, Indian fabrics & A ; civilizations & A ; Fiera Milano – metropolis ‘s Exhibition Center – one of most of import in universe – visited by manyinternational purchasers, great chance for Fabindia & A ; assist increase planetary range.
• Fabindia – really ethical & amp ; eco-friendly company, supports many causes & A ; Europeans like being portion of such enterprises.
• Presently Fabindia shop in Rome, Italy has been making good.
• Fabindia – expand internationally & amp ; to make trade name consciousness in new topographic point, to establish itself in different parts it should utilize Market Development Strategy.
• Fabindia – really popular for its manner dresss – largely made of nubby cotton. But one can non have on cotton due to climatic conditions in Milan.
• The colourss of Fabindia merchandises – largely really colorful, but due to gloomy conditions in Milan larger population prefer pastels & A ; mid tones of all colourss – summers and winters black n brown regulations.
• Milan – manner capital & A ; houses taking trade names, celebrated for their advanced designs.
• It is of import for Fabindia to hold its ware designed & amp ; their scope planned as per market in Milan & A ; I strongly suggest Product Development Strategy.

Execution

• Core values of Fabindia – to supply quality natural merchandises, reflect the alone Indian civilization & A ; therefore Isuggeststore can be located ill-famed historical landmark & A ; have layouts – highlight traditional and natural focal point.
• Shop show windows rich bequest of India ‘s traditional weavers, offering broad array of manners – modern-day and sophisticated, must make distinguishable image & A ; location must be chosen with extreme attention.
• Fabindia really ethical & amp ; eco-friendly trade name & A ; Ariston hotel – first ecological hotel of Italy- perfect topographic point for sole Fabindia shop.
• Ariston hotel – situated in bosom of Milan, 500 meters from the Duomo, memorials, few stairss from Via Torino shopping country.
• With privileged place compared to other 3-star, & A ; near Piazza del Duomo andsubwaystops ( to New Fair ) . Very good serviced bytram, coach.
• Very strategic location connected to all of import topographic points – renowned museums, memorials celebrated shopping streets, eating houses, pizza shop & A ; film theatres near the Duomo & A ; consciousness could be created through advertisement & A ; physical groundss.
• Since new market & A ; no consciousness, needs to transport out batch of promotional activities. Can form events like reliable Indian nutrient festivals, , synergistic workshops with Indian interior decorators, showcasing the rich Indian civilization.
• Fabindia – associated with societal causes, make consciousness about engagement and trade name. · Can form societal events, sponsorships, advertise in magazines, billboards, postings to make consumer consciousness, Know what you wear – Workshop. Makes clients more cognizant of work put in for their cloth and helps them with association with trade name FabIndia.
• Lot of competition – taking established trade names in Milan selling similar products.They need to make distinguishable image & A ; come up – merchandise scope entirely for Milan after making a elaborate market research, merchandises with advanced ecofriendly fashionable designs with

Indianised touch. Lot of importance – laid on aesthetic entreaty & A ; good quality.

• Should concentrate on client keeping & A ; work on schemes to construct a loyal client base.

These are my recommendations for establishing Fabindia in Milan.

Feedback Mechanism:

Mystery Shopper Program:

• In mystery shopper plan, individual hired by direction goes to every shop and stores at that place and so give feedback harmonizing to client position.
• Shop people ne’er come to cognize or surmise anyone whether he is a enigma shopper or non. Detailed feedback is given to every person store. It consists of minute inside informations – signages outside, public toilets, behaviour of staff.
• So it serves as a tool to supply better client satisfaction.

Feedback registries & A ; Feedback questionnaire to be filled on the web site:

• Customer feedback by keeping visitants ‘ registry to enter client positions or through questionnaires filled online.
• Shop directors can fix study, sporadically reviewed by Product Selection Committee to cognize about purchasing form among consumers.

CRM package & A ; Value Customer Card:

• CRM package can be implemented – to keep centralised database to maintain client record inside informations or by holding the Value Customer Card – history & A ; inside informations of client each clip, card is swiped.
• Can acquire to cognize – fast & A ; decelerate moving merchandises, popular manners & A ; can consequently make scope planning.
• Can hold meeting every month to reexamine public presentation & A ; discuss steps to be taken to better gross revenues & A ; increase consumer satisfaction.