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Assignment on: Case study 01: Dabur's Digital Marketing Initiatives.

Case study 02: Raymond: Giving a New Spin to Khadi.


Course Title: Marketing Management
Course Code: BBA3103
Submitted To

Dr. S.M Nazrul Islam


Associate professor
Department of Business Administration
Noakhali Science & Technology University

Submitted By

Shahnaz Akter
ID: BKH1810032F
Session: 2017-18 Year-3, Term-1
Department of Business Administration
Noakhali Science & Technology University
Case 01: Dabur's Digital Marketing Initiatives.
Abstract
This report aims at analyzing and reporting on the marketing strategies of Dabur India Ltd (DIL)
for the brands Dabur. Pioneering role that it has played in the evolution of the categories it has
had a presence in. This report is not aiming at the overall marketing mix or the marketing
strategy of Dabur India Ltd, but is an attempt to analyze the marketing mix of Dabur
Chyawanprash. The report also enlists various recommendations based on BCG Growth Share
Matrix analysis, Ansoff’s Product Matrix Expansion Grid, SWOT Analysis etc. This analysis has
been done on the basis of the information gathered from the company website and other online
resources and books and articles.
Introduction
What started with a dream of our founder, Dr. S. K. Burman of making health care products in
1884, has over the past 130 years turned into the World's Largest Ayurveda Company. Dabur
India Limited is a leading Indian consumer goods company with interests in Hair Care, Oral
Care, Health Care, Skin Care, Home Care and Foods. From its humble beginnings in the by lanes
of Calcutta way back in 1884 as an Ayurvedic medicines company, Dabur India Ltd has come a
long way today to become a leading consumer products manufacturer in India.
For the past 125 years, they have been dedicated to providing nature-based solutions for a
healthy and holistic lifestyle. Through their comprehensive range of products, they cater to all
consumers, in all age groups, across all social boundaries. And this legacy has helped them
develop a bond of trust with the customers.

VISION, MISSION AND PRINCIPLE


MISSION:
To maximize shareholder’s value, by offering superior quality nature based products, that
contributes in improving consumer’s life in Personal care, Health Care and foods.

VISION:
“HEALTH AND  WELL  BEING  OF  EVERY  HOUSEHOULD”
Dabur is a company with a set of established business values, which direct it's functioning as
well as all its operations. The guiding forces for Dabur are the words of its founder, Dr.S. K.
Burman,
"What is that life worth that can not give comfort to others."
The Company offers its customers, the products to suit their needs and give them good values for
money. The company is committed to follow the ethical practices in doing business. At Dabur,
nature acts as not only the source of raw materials but also an inspiration and the company is
committed to product the ecological balance.
After the successful implementation of the 4-year business plan from 2002 to 2006, Dabur has
launched another plan for 2011. The main objectives are:
 Doubling of the sales figure from 2006
 The new plan will focus on expansion, acquisition and innovation. Although Dabur’s
international business has done well — growing by almost 29 per cent to Rs.292 crore in
2006-07, plans are to increase it by leaps and bounds.
 Growth will be achieved through international business, homecare, healthcare and foods.

PRINCIPLES
OWNERSHIP:
This is our company. We accept responsibility and accountability to meet business needs.
PASSION FOR WINNING:
We all are leaders in our responsibility, with a deep commitment to deliver the results. We are
determined to be the best at doing what matters the most.
PEOPLE DEVELOPMENT:
People are our most important asset. We add value through result- driven training and we
encourage rewards and excellence.
CONSUMER FOCUS:
We have superior understanding of consumer needs and develop products to fulfill their
demands.
INNOVATION:
Continuous innovation in products and processes and is the base of our success.
4P’s of Marketing Mix

1. Product

Dabur is committed in offering its customers products that are of excellent quality and are herbal.
Their mission is in providing goods that prove healthy for its customers, as health is wealth.
Nature provides inspiration to all its products. Dabur deals in many categories of merchandises
like oral care, hair care, skin care, food products, and health-care and home-care products.
In1940 Dabur launched Dabur Amla Hair Oil and even today, it is one of the leading products of
the company. In 1949, it gave the world Dabur Chyawanprash. From children to the old-age
group it is the favorite of every generation.  In 1970, Dabur added Oral products like Dabur Lal
Dant Manjan to its portfolio. Hajmola tablets and Hajmola candy were introduced in the market
in the year 1978 and 1989 respectively.

2. PRICE:
Price is normally expressed in monetary terms. It is worth of a product or service in monetary
terms. Price is the value which a buyer passes on to the seller in lieu of the product or service
provided. Price is a crucial determinant of the fact whether the exchange between the buyer and
seller should materialize or not. While pricing the products three main factors should be kept in
mind -:

1. Cost
2. Competition
3. consumer demand
Pricing Strategies of Dabur
Dabur has stepped up the pace of new product launches and is investing ad spend and marketing.
The entire product portfolio is also tweaked to include premium offerings such as more variants
under almost every category, like Dabur Vatika Hair Oil is available in 3 different versions.
Dabur is today seen as far more proactive in the market. Dabur is now an external oriented
company. Across the whole organization the company have one definition of winning, and that
means not just growing, but growing completely. Over the last two years, Dabur has maintained
its operating margins through judicious price hikes across products and reduction in pack sizes.
The three main factors affecting the pricing strategies have been discussed below -:
 
I.COST
One of the most important factor to take care while pricing is the cost costs set the floor for
pricing decisions. There are two types of cost variable cost and fixed cost. It is important that the
price should recover all costs including a fair return for undertaking the marketing effort and
risk.
II.COMPETITION
Competition is another important consideration while pricing. When a firm does not face any
competition it can enjoy complete freedom in fixing its price. But when there are competitors
selling the same or similar products, the pricing freedom is considerably reduced. Its price must
fall in line with the competitors. Similarly Dabur India Limited also has many competitors. But
Dabur’s top selected competitors are:-
1. Hindustan Unilever Limited
2. Proctor and Gamble
3. Pepsi co.
4. Colgate Palmolive
5. Godrej Industries
6. Marico Ltd.   etc.

III.CONSUMER DEMAND
Dabur learned that the majority of Indian population tends to go towards the Indianised natural
and herbal products thus they made it their USP. Dabur is efficiently leading the market with this
product range, providing the customers with special products easily.

3.PLACE:

Place in the context of marketing mix refers to a set of decisions that need to be taken in order to
make the products available to the customers for purchase and consumption. Making the
products available to the customers require development of channels of distribution and physical
distribution of products.
CHANNELS OF DISTRIBUTION

A channel of distribution refers to the path taken by the goods in their movement to the
customers. For instance, the toothpaste we use is manufactured in the factory of a company
Dabur. But before it reaches us it passes through the hands of many middlemen who help it come
to you in right time, at right place and in right quantity.
Dabur’s distribution network is recognized as one of its key strengths. Its focus is not only to
enable easy access to our brands, but also to touch consumers with a three-way convergence - of
product availability, brand communication, and higher levels of brand experience.
A Diagram explaining the channels of Distribution is given below
The diagram shows channel of distribution of dabur foods, here first the products are
manufactured and from Manufacturing plants the packed goods are supplied to Clearing And
Forwarding Agents(C&FA) and from here the goods are then further supplied to number of
Stockiest or Distributors, from here goods reaches to large number of Retailers and it is the duty
of Stockiest to take orders from retailers and then supply the goods to them, this work is
generally done by stockiest salesman through ready stock or by taking orders first and then
placing the order. From here the goods finally reaches to Customers. Customer purchases the
product from retailers.
4. PROMOTION :

Once the product has been manufactured, priced rightly and is distributed, the next task of the
marketer is to inform potential customer about the product and persuade them to buy the same.
The promotion element of marketing mix is concerned with activities that are undertaken to
communicate with both customers and participants in the channel of distribution such that sales
goals are realized. There are different promotional activities like-: Advertising, Sales promotion,
trade promotion, personal selling etc. but one of the most convenient and effective one that most
of the industries uses is the Advertising and Sales Promotion.

Advertising
Advertising is a form of communication that typically attempts to persuade potential customers
to purchase or to consume more of a particular brand of product or service. Many advertisements
are designed to generate increased consumption of those products and services through the
creation and reinforcement of "brand image" and "brand loyalty". For these purposes,
advertisements sometimes embed their persuasive message with factual information. Every
major medium is used to deliver these messages, including television, radio, cinema, magazines,
newspapers, video games, the Internet and billboards. Advertising is often placed by an
advertising agency on behalf of a company or other organization.
Dabur has created the huge brand image and a vast product following by associating mega-
names like Amitabh Bachchan, Rani Mukhurjee, Vivek Oberoi, Mandira Bedi etc. Dabur
invested Rs. 150 crore just on the advertising of Real “Fruit Juice” and “Real Active”. So far the
company has been successful in this mission as the people now know the brand and ask for its
products by name.

Sales promotion
“An activity designed to boost the sales of a product or service. It may include an advertising
campaign, increased PR activity, a free-sample campaign, offering free gifts or trading stamps,
arranging demonstrations or exhibitions, setting up competitions with attractive prizes,
temporary price reductions, door-to-door calling, telemarketing, personal letters on other
methods”.
In marketing, sales promotion is one of the four aspects of promotion. (The other three parts of
the promotional mix are advertising, personal selling, and publicity/public relations.) Sales
promotions are non-personal promotional efforts that are designed to have an immediate impact
on sales.

Sales promotion can be directed at:-


•The ultimate consumer (a “pull strategy” encouraging purchase)
•The distribution channel (a “push strategy” encouraging the channels to stock the product). This
is usually known as “selling into the trade”

Marketing Strategy Process


The marketing strategy analysis, planning, implementation and management process is described
below. The strategic situation analysis considers market and competitor analysis, market
segmentation, and continuous learning about markets. Designing marketing strategy examines
customer targeting and positioning strategies, marketing relationship strategies and planning for
new products. Marketing program development consists of product, distribution, price, and
promotion strategies designed and implemented to meet the value requirements of targeted
buyers. Strategy implementation and management consider organizational design and marketing
strategy implementation and control.
Stage 1: Strategic Situation Analysis
Marketing management uses the information provided by the situation analysis to guide the
design of a new strategy or change an existing strategy. The situation analysis is conducted on a
regular basis after the strategy is under way to evaluate strategy performance and identify needed
strategy changes.
Market Vision, Structure, and Analysis
Markets need to be defined so that buyers and competition can be analyzed. For a market to exist
there must be (1) people with particular needs and wants and one or more products that can
satisfy buyers’ needs, and (2) buyers willing and able to purchase a product that satisfies their
needs and wants. A product-market consists of a specific product (or line of related products)
that can satisfy a set of needs and wants for the people (or organizations) willing and able to
purchase it. The term product is used to indicate either a physical good or an intangible service.
Analyzing product-markets and forecasting how they will change in the future are vital to
business and marketing planning. Decisions to enter new product-markets, how to serve existing
product-markets, and when to exist in unattractive product-markets are critical strategic choices.
The objective is to identify and describe the buyers, understand their preferences for products,
estimate the size and rate of growth of the market, and find out what companies and products are
competing in the market.
Evaluation of competitors’ strategies, strengths, limitations and plans is also a key aspect of the
situation analysis. It is important to identify both existing and potential competitors. Competitor
analysis includes evaluating each key competitor. The analyses highlight the competition’s
important strengths and weaknesses. A key issue is trying to figure out what each competitor is
likely to do in future.

Segmenting Markets
Market segmentation looks at the nature and extent of diversity of buyers’ needs and wants in a
market. It offers an opportunity for an organization to focus in business capabilities on the
requirements of one or more groups of buyers. The objective of segmentation is to examine
differences in needs and wants and to identify the segments (sub-groups) within the product-
market of interest. Each segment contains buyers with similar needs and wants for the product
category of interest to management. The segments are described using the various characteristics
of people, the reasons that they buy or use certain products, and their preferences for certain
brands of products. Likewise, segments of industrial product-markets may be formed according
to the type of industry, the uses for the product, frequency of product purchase, and various other
factors.
Continuous Learning about Markets
One of the major realities of achieving business success today is the necessity of understanding
markets and competition. Sensing what is happening and is likely to occur in the future is
complicated by competitive threats that may exist beyond traditional industry boundaries. For
example, CD-ROMs compete with books.

Stage 2: Designing Market-Driven Strategies


The strategic situation analysis phase of the marketing strategy process identifies market
opportunities, defines market segments, evaluates competition, and assesses the organization’s
strengths and weaknesses. Market sensing information plays a key role in designing marketing
strategy, which includes market targeting and positioning strategies, building marketing
relationships, and developing and introducing new products.
Market Targeting and Strategic Positioning
Marketing advantage is influenced by several situational factors including industry
characteristics, type of firm (e.g., size), extent of differentiation in buyers’ needs, and the specific
competitive advantage(s) of the company designing the marketing strategy. The core issue is
deciding how, when, and where to compete, given a firm’s market and competitive environment.
The purpose of the marketing targeting strategy is to select the people (or organizations) that
management wishes to serve in the product-market. When buyers’ needs and wants vary, the
market target is usually one or more segments of the product-market. Once the segments are
identified and their relative importance to the firm determined, the targeting strategy is selected.
The objective is to find the best match between the value requirements of each segment and the
organization’s distinctive capabilities. The targeting decision is the focal point of marketing
strategy since targeting guides the setting of objectives and developing a positioning strategy.
The options range from targeting most of the segments to targeting one or few segments in a
product-market. The targeting strategy may be influenced by the market’s maturity , the diversity
of buyers’ needs and preferences, the firm’s size compared to competition, corporate resources
and priorities, and the volume of sales required to achieve favorable financial results. Deciding
the objectives for each market target spells out the results expected by management. Examples of
market target objectives are desired levels of sales, market share, customer retention, profit
contribution, and customer satisfaction. Marketing objectives may also be set for the entire
business unit and for specific marketing activities such as advertising.
The marketing program positioning strategy is the combination of product, value-chain, price,
and promotion strategies a firm uses to position itself against its key competitors in meeting the
needs and wants of the market target, the strategies and tactics used to gain a favorable position
are called the marketing mix or the marketing program.
Marketing Relationship Strategies 
Marketing relationship partners may include end user customers, marketing channel members,
suppliers, competitor alliances, and internal teams. The driving force underlying these
relationships is that a company may enhance its ability to satisfy customers and cope with a
rapidly changing business environment through collaboration of the parties involved.
Relationship strategies gained new importance in the last decade as customers became more
demanding and competition became more intense. Building long-term relationships with
customers and value-chain partners offers companies a way to provide superior customer value.
Although building collaborative relationships may not always be the best course of action, this
avenue for gaining a competitive edge is increasing in popularity.
Strategic partnering has become an important strategic initiative for many well known companies
and brands. Many firms outsource the manufacturing of their products. Examples include
Motorola cell phones, Calvin Klein jeans, Pepsi beverages, and Nike footwear. Strong
relationships with outsourcing partners are vital to the success of these powerful brands. The
trend of the 21st century is partnering rather than vertical integration.
Planning for New Products
New products are needed to replace old products because of declining sales and profits.
Strategies for developing and positioning new market entries involve all functions of the
business. Closely coordinated new-product planning is essential to satisfy customer requirements
and produce products with high quality at competitive prices. New-product decisions include
finding and evaluating ideas, selecting the most promising for development, designing the
products, developing marketing programs, use and market testing the products, and introducing
them to the market.
The new-product planning process starts by identifying gaps in customer satisfaction. The
differences between existing product attributes and those desired by-customers offer
opportunities for new and improved products.

Stage 3: Market-Driven Program Development


Market targeting and positioning strategies for new and existing products guide the choice of
strategies for the marketing program components. Product, distribution, price, and promotion
strategies are combined to form the positioning strategy selected for each market target.
The marketing program (mix) strategies implement the positioning strategy. The objective is to
achieve favorable positioning while allocating financial, human, and production resources to
markets, customers, and products as effectively and efficiently as possible.
Strategic Brand Management
Products (goods and services) often are the focal point of positioning strategy, particularly when
companies or business adopt organizational approaches emphasizing product or brand
management. Product strategy includes: (1) developing plans for new products, (2) managing
programs for successful products, and (3) deciding what to do about problem products (e.g.,
reduce costs or improve the product). Strategic brand management consists of building brand
value (equity) and managing the organization’s portfolio for overall performance.
Value-Chain, Price, and Promotion Strategies
One of the major issues in managing program is deciding how to integrate the components of the
mix. Product, distribution, price, and promotion strategies are shaped into a coordinated plan of
action. Each component helps to influence buyers in their positioning of products. If the
activities of these mix components are not coordinated, the actions may conflict and resources
may be wasted. For example, if the advertising messages for a company’s brand stress quality
and performance, but salesperson emphasize low price, buyers will be confused and brand
damage may occur.
Market target buyers may be contacted on a direct basis using the firm’s sales force or by direct
marketing contact (e.g., Internet), or instead, through a value-added chain (distribution channel)
of marketing intermediaries (e.g., wholesalers, retailers, or dealers). Distribution channels are
often used in linking procedures with end user household and business markets. Decisions that
need to be made include the type of channel organization to use, the extent of channel
management performed by the firm, and the intensity of distribution appropriate for the product
or service. The choice of distribution channels influences buyers’ positioning of the brand.
Price also plays an important role in positioning a product or service. Customer reaction to
alternative prices, the cost of the product, the prices of the competition and various legal and
ethical factors establish the extent of flexibility management has in setting prices. Price strategy
involves choosing the role of price in the positioning strategy, including the desired positioning
of the product or brand as well as the margins necessary to satisfy and motivate distribution
channel participants. Price may be used as an active (visible) component of marketing strategy,
or, instead, marketing emphasis may be on other marketing mix components (e.g., product
quality).
Advertising, sales promotion, the sales force, direct marketing, and public relations help the
organization to communicate with its customers, value-chain partners, the public, and other
target audiences. These activities make up the promotion strategy, which performs an essential
role in communicating the positioning strategy to buyers and other relevant influences.
Promotion informs, reminds, and persuades buyers and others who influence the purchasing
process.
Stage 4: Implementing and Managing Market-Driven Strategy
Selecting customers to target and the positioning strategy for each target moves marketing
strategy development to the action stage. This stage considers designing the marketing
organization and implementing and managing the strategy.
Designing Effective Market-Driven Organizations
An effective organization design matches people and work responsibilities in a way that is best
for accomplishing the firm’s marketing strategy. Deciding how to assemble people into
organizational units and assign responsibility to the various mix components that make up the
marketing strategy are important influences on performance. Organizational structures and
processes must be matched to the business and marketing strategies that are developed and
implemented. Organizational design needs to be evaluated on a regular basis to assess its
adequacy and to identify necessary changes.
Strategy Implementation and Control
Marketing strategy implementation and control consist of: (1) preparing the marketing plan and
budget; (2) implementing the plan; and (3) using the plan in managing and controlling the
strategy on an ongoing basis. The marketing plan includes details concerning targeting,
positioning, and marketing mix activities. The plan spells out what is going to happen over the
planning period, who is responsible, how much it will cost, and the expected results (e.g., sales
forecasts).
The marketing plan includes action guidelines for the activities to be implemented, who does
what, the dates and location of implementation, and how implementation will be accomplished.
Several factors contribute to implementation effectiveness including the skills and commitment
of the people involved, organizational design, incentives, and the effectiveness of
communication within the organization and externally.
Marketing strategy is an ongoing process of making decisions, implementing them, and tracking
their effectiveness over time. In terms of its time requirements, strategic evaluation is far more
demanding than planning. Evaluation and control are concerned with tracking performance and,
when necessary, altering plans to keep performance on track. Evaluation also includes looking
for new opportunities and potential threats in the future. It is the concerning link in the strategic
marketing planning process. By serving as both the last stage and the first stage (evaluation
before taking action) in the planning process, strategic evaluation assures that strategy is an
ongoing activity.

We intend to significantly accelerate profitable growth. To do this, we will:

 Focus on growing our core brands across categories, reaching out to new geographies,
within and outside India, and improve operational efficiencies by leveraging technology

 Be the preferred company to meet the health and personal grooming needs of our target
consumers with safe, efficacious, natural solutions by synthesizing our deep knowledge
of ayurveda and herbs with modern science

 Provide our consumers with innovative products within easy reach

 Build a platform to enable Dabur to become a global ayurvedic leader


 Be a professionally managed employer of choice, attracting, developing and retaining
quality personnel

 Be responsible citizens with a commitment to environmental protection

 Provide superior returns, relative to our peer group, to our shareholders

SWOT ANALYSIS

1. Products present in over 60 c0untries and distribution through 5000


distributors and 2.8 million outlets
2. Strong Brand Image and Product Development Strength
3. Strong Distribution Network and an Extensive Supply Chain 
4. It has welfare activities in health care, education and other socio-
economic activities
Strengths 5. Has focus markets in GCC, Egypt, Nigeria, US, Nepal etc

1. Fake products sold under the name of their brands


2. Dabur products has stiff competition from big domestic players and
Weaknesses international brands

1. Tap rural markets and increase penetration in urban areas


2.Mergers and acquisitions to strengthen the brand
Opportunities 3.Increasing purchasing power of people thereby increasing demand

1. Intense and increasing competition amongst other FMCG companies


2.FDI in retail thereby allowing international brands
Threats 3. Competition from unbranded and local products
RECOMMENDATIONS

è Focus on growing core brands across categories.

è Reaching out to new geographies areas.

è Improve operational efficiencies by leveraging technology.

è Be the preferred company to meet the health and personal grooming needs of our target
consumerswithsafe, efficacious, natural solutions by synthesizing the deep knowledge
of ayurveda and herbs with modern science.

è Provide consumers with innovative products within easy reach.

è Vatika hair care centre: On the lines of Marico’s Kaya Skin Clinic, Dabur could start a
venture called Vatika hair care centre which would provide total hair care solutions. It could
have hair care experts to solve hair problems.Services could include dandruff treatment,
straightening of hair, treatment for split ends,etc.

è Position Dabur Chyawanprash as not more of a medicine but as something which is


necessary for health.

è More initiatives like “ Dabur ki Deewar” to increase brand visibility. It is an initiative to


occupy shelf space.
CONCLUSION

It was really a very great experience to study this FMCG Company “Dabur India Limited”. After
going into all its aspects i.e.  its marketing strategies, policies, pricing strategies etc. we can
conclude that the company is excellent on all the fronts. The company’s different projects like
Sundesh and its social initiatives in Nepal etc. indicates that the company is also loyal towards
the society, and all such social responsibilities are very necessary to build a strong customer base
and brand loyalty
Through its comprehensive range of products it touches the lives of all consumers, in all age
groups, across all social boundaries. And this legacy has helped them develop a bond of trust
with our consumers. That guarantees us the best in all products carrying the Dabur name. Dabur
has Strong distribution network. Dabur is the Fourth largest FMCG Company of India. Dabur is
one of the most trusted brand.
Case 02: Raymond: Giving a New Spin to Khadi.

Abstract
This case encompasses all the Marketing Strategies of the Indian Suiting fabric specialist
Raymond, the creator of the label ―The Complete Man‖. The case provides detailed account of
company‘s portfolio and brand building strategies which attributed to its unprecedented legacy.
The case reviews the journey of Raymond and touches upon the core issues of branding. The
case also sheds light on the induction of Key Employees and what role they played in steering
the company forwards. The case not only dwells on the success but also on failed
attempts of Raymond at different points in their journey. The case also acts as a thought
provoker of various concepts like Cannibalization.
Executive Summary:
The PRAYAS is certainly a new face lift given to the age old Ghandian idea of
"Swadeshi".Through this we intented to fuse the Corporate Social Responsibility with the core
strategy of the company by keeping in mind the civil society.
Khadi-In the present context:
In today's context the globalized generation has literally forgotten about " khadi".A cascading
effect of this change has brought about the change even in the dressing style of the older
generation, Which hitherto has always been seen as the main proponents, most of whom see
more as a ideological baggage that is a compulsion.
The two main reasons for this situation are:
1. Lack of adaptability: Khadi clothes are generally hard to maintain, however newer variation of
this fabric not only is more fine and hence comfortable but relatively easy to maintain.
2. Limited range which in turn has limited its appeal to just the older generation.

Introduction
The Raymond Group was incorporated in 1925 and within a span of a few years, transformed
from being an Indian textile major to a global conglomerate. The group owns apparel brands like
Raymond, Raymond Ready to wear, Park Avenue, Park Avenue Woman, Color Plus & Parx,
Makers, Made to Measure. The case throws light on segmentation, Targeting and Positioning
adopted by Raymond in recent times. Made to Measure stores is the latest concept of Raymond
where the customer is promised that the material undergoes 150 machine cutting steps for the
perfect finish. The company sells through 700 stores and 20,000 multi branded
stores. The companys promotion strategies are also visually very appealing and capturing. This
case is meant for classroom discussion on these issues and find
out pros and cons on the Marketing issues. The case intends to make the students think critically
about the marketing issues and challenges of the company.
Background
Raymond Limited, the largest integrated manufacturer of worsted fabric in the world was
incorporated as the Raymond Woollen mill during the year 1925 in the area around Thane creek.
The company comprises three business divisions, such as Textiles, Engineering and Aviation.
Textile division of the company has a distribution network of more than 4,000 multi-brand
outlets and over 400 exclusive retail shops in the domestic market itself. Suitings are available in
India in over 400 towns through 30,000 retailers and an exclusive chain is present in over 150
cities across India and overseas especially the product exports to over 55 countries including
USA, Canada, Europe, Japan and the Middle East. The group has three engineering divisions,
J.K. Files & Tools, J.K. Talabot Ltd. to cater to national and international markets and a
controlling interest in Ring Plus Aqua Ltd engaged in the manufacture of auto components. Lala
Juggilal, Lala Kailashpat Singhania took over The Raymond Woollen Mill in the year 1944. The
Company had set up a new manufacturing activity in the year of 1950 for making indigenous
engineering files known as JK Files & Tools. Raymond had set up a readymade garments plant
at Thane in the year 1968. The readymade garments division of Raymond has since then grown
rapidly. A new manufacturing facility was set up at Jalgaon during the year 1979 to meet the
increasing demand for worsted woollen fabrics. Vijaypat Singhania took over the reins of the
company in the year 1980; he injected fresh vigour into Raymond, transforming it into a modern,
industrial conglomerate. Launched 'Park Avenue', the premium lifestyle brand of the company in
the year 1986 provides a complete wardrobe solution to the men who like to dress well and
invogue. Apart from the domestic operations, the brand has spread to other countries opening its
first in Oman in 1990. Raymond had launched 'Parx' in the year 1999, a premium casual wear
brand bringing customers a range of semi-formal and casual clothes. After a year in 2000,
Raymonds launched 'Be', an exclusive line of ready-to-wear designer clothing for men and
women. Raymond had set up 'Silver Spark Apparel Ltd.' in the year 2003 for manufacturing suits
and formal trousers catering largely to export markets and also in the same year, the company
had acquired Color Plus. In 2004, Super 220S fabrics ruled in the market under the Chairman's
Collection. During the year 2005, the company had set up state-of-the-art jeans wear facility
'Ever blue Apparel Ltd.' near Bangalore and also in the same year 'Celebrations Apparel Ltd.'
was started for the manufacturing of formal shirts. Launched kids wear brand under the name of
Zapp with the first store in Ahmedabad. During the year 2006-2007, the company made joint
venture with Italian apparel brand Grotto to open 60 GAS exclusive brand outlets (EBOs)1 The
Raymond Shop network started with a small corner shop in Ballard Estate, Mumbai around eight
decades ago. It has grown multifold with a dedicated team making it the largest retail store in the
country has over 700 stores in prime locations, in over 200 cities in India. The Raymond Shop
retail chain occupies a space of more than 1.8 million square feet built-up area. Trust,
Excellence, Quality, these are some of the abiding values that have been associated with
Raymond over the years. The Constituents of Raymond Group are

 Raymond Ltd.
 Raymond Apparel Ltd.

 Color Plus Fashions Ltd.

 Silver Spark Apparel Ltd.

 Ever Blue Apparel Ltd.

 Celebrations Apparel Ltd.

 Raymond Luxury Cottons Ltd.

 J.K. Helene Curtis Ltd.

 J.K. Investo Trade (India) Ltd.

Segmentation & Targeting

The strategy of Raymond is to sell the brand through multi-brand outlets (MBOs) which is where
the typical tier 2 and tier 3 customer shops. So this brand will not affect the positioning of
Raymond brand which is largely sold through its exclusive brand outlets
(EBOs) and larger MBOs.

Positioning
Raymond‘s positioning of ‗The Complete Man‘ which took shape in the early ‗90s is a case
study in itself. The ‗80s were marked with the imagery of the angry, young man, so Raymond‘s
plank —of showcasing the sensitive, mature, metrosexual side of an Indian male — actually
stood out and was welcomed by consumers For years, fabric manufacturer Raymond has kept its
advertising true to its brand statement, The Complete Man. Each ad released under this umbrella
though explores a different aspect of a man's personality and relationships - be it with his elders,
romantic partners or pets. Each ad ends with the brand's signature tune, accompanied by a voice-
over that says, "The Complete Man."
Marketing Strategy

Raymond one of the biggest retail chains has a market with over 715 Raymond stores spread
across 385 towns. Along with other brands under the Raymond portfolio-Park Avenue, Color
Plus, Parx, Raymond ready-to-wear, they have more than 1,050 stores, which are both fully-
owned and franchised stores. The company is also developing an omnichannel to cater to the
growing demand for online sales. It will renovate and upgrade more than 100 stores during this
year, while it sets up over 100 stores during the current financial year.
Advertising
Frank Simoes came up with the first memorable campaign with Guide to a well-dressed man in
1980s.Rajiv Agarwal of Nexus Equity designed the complete man in 1992.The account remained
with them until 2002 when it was assigned to R. K. Swamy BBDO which handled it for a
decade. Raymond has appointed Strawberry frog as its new creative agency in 2014. Raymond
moved its entire account to Madison and for social media, it signed Social
Wavelength and Bonsey, Singapore design consultancy for brand design related work. In 2014,
the ad budget was 50cr.itemployed agencies like Publicis, Taproot and Grey India. Raymond
Ltd. plans to keep its expenditure on advertising and promotion at 4-5 percent of its annual sales.
The company‘s ad spends jumped 47.8 percent for the year and 182 basis points yearon-year on
an absolute basis and percentage to sales respectively in the December 2015.

Sales Promotion

In 2012, Raymond Model Hunt Premiered on Facebook as a tribute to new age social media
friendly India male. The campaign tries to project the different faces of ‗The Complete Man ‗ –a
man who is caring, sensitive and places a huge premium on relationships. It also started a
Facebook campaign on October 18th, By November 1st the page grew to 1.73 lakh customer
likes. According to Pagedata, this was one of the fastest daily growths registered on Facebook. It
was a roaring success.

Key Drivers

The company identified four pillars of growth at the store level developing new retail identity,
innovating the visual merchandise and product display section, training staff and, lastly,
upgrading technology point-of-sales systems (POS) to capture customer transactions, customer
history, loyalty programmes, etc.
Branding

a. Makers

In 2011, Raymond launched its economy brand, Makers in states of Punjab, Chandigarh and
Himachal Pradesh. The Jalgaon Manufacturing unit will take care of the production of the new
range. The company had a target of capturing 4-5% Market share by 2012-13 in the economy
segment. Makers brand is largely poly viscose and poly wool. Makers compete with brands like
Siyaram, Grasim, Donear, Belmonte and others and sold through 12000 Multi branded Outlets
which would be increased to 60,000 by 2017.The Makers range has Youth centric, vibrant
designs, fancy colours and special emphasis on innovative finishes. The collection comprises a
carefully selected design pallet ranging from stripes to self, microstructures and checks.
b. Park Avenue

Under the brand, the company has Mens grooming products such as soap, Shaving cream,after
shave lotions, face washes, styling gels and Hair creams. Rolled out Beer Shampoo under Park
Avenue brand priced at par with Hul clear and P& G Head and Shoulders.
c. Park Avenue Women

Park Avenue Women epitomises the perfect look for the discerning, Upwardly mobile, working
women. It‘s a celebration of women who are confident, independent and know what they want
from life. It will offer a diverse range of formal wear and smart casuals across day, corporate,
weekend and evening wear. It was started in 2007.
d. Parx

Parx Presented a range of T-shirts for Youngsters called Hot Tees and Racer Rendezvous. It‘s a
premium casual wear for gen next. The brand introduced an innovative feature called ―Tweet
Mirror‖. This is a novel in-store device which helps connect with friends and network while
shopping and aids decision making. The prime target audience is 22-30yrs and technology
oriented.
e. Made to Measure

The concept of Made to Measure services on a pilot basis in Mumbai from May 2012.The
delivery time would be 10-15 days and at no extra price. Made to Measure was not advertised
aggressively and needs to publicise the concept beyond regular buyers. The company planned to
open 70-80 more stores including exclusive brand outlets (EBO) and shop in shop stores by
2013. In terms ofadvertising it majorly banked on local activations, cityspecific engagement
programmes and radio.
f. Color Plus
Color Plus was acquired in 2002.With a premium range of clothing the brand ‗Color Plus‘
created a niche market in the ready to wear segment for men. Its stores offer an international
experience to its customers. Its wide usage of varied colours gives it an edge over other ready to
wear brands. Right from its launch into the market, it has stolen the hearts of many to be a choice
for savvy, Sophisticated Male. These are sold in flagship stores in the best geographical
locations. g. Raymond Bed and Bath Range Raymond has rebranded its bed and bath range of
home furnishing products, which was launched in 2013, as Raymond Home to exploit the
opportunities in the rapidly growing segment. Raymond has already launched a print advertising
campaign to promote the new brand and opened exclusive brand outlets (EBOs) at select cities.
Raymond Home offers complete collection of bed sheets, pillow covers, comforters, blankets,
bathrobes, towels and exclusive wedding sets in a wide selection of colours and designs.

Information Technology

The entire supply chain was brought under SAP. It was outsourced to Accenture.

Visual Merchandising

San Francisco based design firm Gensler was roped in to redesign its stores including Color Plus
brand. The significant changes brought were shifting of the made to measure (MTM) section up
front and setting up of new point of sale (POS) systems at the stores it also tied up with customer
relationship management firm IMEA which also works for Taj Hotels and Jet Airways. This
resulted in sales growth in double digits, conversion rates moving up by over 90 per cent and
footfalls at the stores by 15 to 20 per cent.

Leadership of Sanjay Behl, CEO

One of the key decisions which Gautam Hari Singhania the Chairman and Managing Director
took was the appointment of CEO, Sanjay Behl. The CEO had earlier worked with Reliance
Communication, HUL and so on and completely an outsider from the industry.The reason for
recruitment was that the Chairman wanted a fresher completely for restructuring the company
and the CEO proved to be very apt and right. Few of the strategic Marketing Decisions taken by
the CEO were regarding the structure of the Marketing Organization. After taking over the
divided into 5 Strategic Business Units(SBU).
 Shirting
 Suiting
 Apparel
 Garments& Exports
 Custom Tailoring

Finance, IT, E-Commerce, HR, Branding were unified for all thesefive SBUs . After
restructuring the marketing organization, the next step was induction of fresh talent. New CMO,
President for Apparel, Head for Ecommerce were inducted. Then, Relocation of Color Plus
office was shifted from Chennai to Mumbai. Reduction of Raw material Cost was one more
Target. The company tried to source wool cheaply. Out of 36 million meters of woollen fabric
annually used, 3,600 tonnes per annum comes from Australia and South Africa and they planned
to source it freshly from Uruguay.

Brand Extension to FMCG

Raymond Wants to extend its heritage brand into the FMCG category. Its new President &
Group CEO for FMCG, Giriraj Bagri, has been given the mandate to develop the fabric and
apparel brand of Raymond into a slew of FMCG products in addition to its existing brands like
Park Avenue, Premium, True Tone and Kama sutra. The fabric brand of Raymond has a legacy
and role to play. Raymond has two FMCG step-down subsidiaries (JK Helene Curtis
and JK Ansell) and together they will be treated as a FMCG group. They are still uncertain
whether ‗brand extension ‗can be done. The company wants to take leverage of existing
network through the Raymond stores apart from 600 distributors reaching out to 2
lakh outlets. But the issue is whether they can succeed in FMCG. With big bets on Park avenue
which has garnered the number two brand with a 12 per cent value share and has managed to
push HUL‘s Axe and ITC‘s Engage behind it. Park Avenue made a foray into deos almost 15
years ago and has extended its franchise over the years into several categories including shaving
systems, hair styling gels and beer shampoo. The entire Park Avenue franchise contributes 60 per
cent of the Rs 800-crore consumer spends on our FMCG portfolio,‘‘ he added. The company has
to be careful about its STP in FMCG.

The Road Ahead

Raymond‘s new manufacturing commitment during the Make-inIndia campaign, for instance,
will almost double its textile and garment manufacturing capacity in the country. In April, the
company laid the foundation stone for its largest integrated textile and garment manufacturing
unit at the textile park announced by the Maharashtra government in Amravati district, where it
intends to invest at least 1,400 crore. The company has to decide regarding its brand extension to
FMCG.
SWOT Analyses:
Strength:
1.khadi has a very good drape and contains a great potential.
2.Eco-friendly
3.Connects to freedom movement
4.Statement about your lifestyle and values.

Weaknesses:
1less awareness and preference to foreign brands.
2.Lack of artisans
3.Lack of promotional activities
4.Lack of funds
5.Low wages for artisans.
Raymond Campaigns.

 It has launched a campaign titled “The Complete Man” which express the qualities of a
“complete man” who believes in staying real and do not allow his digital life to
overpower his real life.

 ‘Nicola Benedetti’ is the first female brand ambassador of Raymond Group. She has
extraordinary talent as a musician and also does wonderful philanthropic work that she
undertakes on a daily basis.
 Raymond has many campaigns, which owns awards like The Business Most respected
Company Award 2011 in Apparel and Textile Category, Images Fashion Awards 2009
for most Admired Textile Brand of the year, Lycra images fashion awards 2008 for most
Admired Suiting Brand.
 In 2011, it has ranked 20th in “The Brand Trust Report”.
 It is also honoured with “All India Export Award” for being Star Performer in 2006 in
hand tools Category from Engineering Export Promotion Council of India.
 Another award is “Outstanding Exporter Award” for engineering category of 2006-07.
 KV Sridhar, Chief Creative Officer, has praise the new campaign. She stated that
Raymond has gone through lot of difficulties. They really do brilliant work in early 90s
and then slowly fell down. Now they focus on how to revive a brand and connect to
youth without losing focus.

 The campaign works to ensure that the message should come across effortlessly as it is a
part of DNA of a complete man.
 It has adopted numerous marketing policies to increase and maintain its brand awareness
in the consumer market.
 The several ad campaigns are shown with the help of every possible advertising medium
like digital, electronic and print. It has advertised via many social sites as well as it has its
own website which acts like an agent by updating important news and events at regular
intervals.
 It is an aspirational brand, which denotes achievement and hence has adopted a premium
pricing policy for its products.
 It also has overseas markets in Portugal and Spain. It is a major supplier of completed
garments and fabrics in fifty countries involves Japan, Europe, North America and
Middle East.
 The campaigns of Raymond have a widespread and strong distribution network that helps
in easy availability of products to its customers. All its brands are available in retail
outlet, in India. Brand has seven hundred retail outlets and 30,000 stores in over 400
towns across India that avails the product to the customer.
 
Conclusion
Raymond targets upper and upper middle class section of urban society people. It is a premium
business and offers fashionable clothing to those who desire to make distinctive mark of their
own with style and fashion sense. It has been constantly delivering excellent quality products to
their customer since the past nine decades. “Raymond Complete Man” speaks for those who
wants to stay real and can complete their personality. It is a textile powerhouse with state of art
and manufacturing infrastructure, and has best industry practices that raised the bar of Indian
textile manufacturing. It has capabilities to manufacture fabric from fibre.

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