PRESENTATION ON PRIVATE LABELS V/S NATIONAL LABELS OF MAX FASHION GROUP 2

Presented ByAnshul Gandhi Akhilesh Kumar Rahul Gakkhar Geetika Rakheja Shruti Mukherjee Shagun Singla

Private Labels V/s National Labels

 Private label products or services are typically those manufactured or provided by one company for offer under another company's brand. Private label goods and services are available in a wide range of industries. They are often positioned as lower cost alternatives to regional, national or International brands.

ADVANTAGES OF PRIVATE LABELS

Control over pricing of the product/service. Put forth own ideas on marketing plans. Create personalized image which in turn leads to higher customer loyalty. Higher control on production, marketing, distribution and profits. Give their own inputs, additional materials, logos, tag lines. Customer's changing preference - drive towards private label products.

DISADVANTAGES OF PRIVATE LABEL

The disadvantage is that you must have the customer base to support the product. It usually takes years to develop a customer loyalty for these products. Private labels are rejected before they are even tried, mostly because of poor perceptions on quality and a lack of trust from the potential buyer. Excessively dependent on the supplier.

CATEGORY OF PL & NATIONAL BRANDS

Category Ethnic Wear Private Labels Tavisha National Brands W, Ethnic Wear for Women Cherokee NA Cherokee Casual Wear Kappa

Western Wear Kids Wear Mens Casual Wear Teenagers

MAX WW Max Kids Max Causal Max Young for Teenagers Max office goers

Mens Formals and Semi Formals

John Payers

PRIVATE LABEL VENDORS

STORY NAME
WONDERLAB WONDERLAB SUPPER CHARGED SUPPER CHARGED RODEO RANCH RODEO RANCH SAIL CREW SAIL CREW

VENDOR
SRI MADHURA GARMENTS SRI MADHURA GARMENTS GLENMORGAN GLENMORGAN PROSPPER PROSPPER PROSPPER PROSPPER

CONCEPT
MAX KIDSWEAR Non-Basics MAX KIDSWEAR Non-Basics MAX KIDSWEAR Non-Basics MAX KIDSWEAR Non-Basics MAX KIDSWEAR Non-Basics MAX KIDSWEAR Non-Basics MAX KIDSWEAR Non-Basics MAX KIDSWEAR Non-Basics

ORACLE DEPARTMENT
KW 2-8 YRS BOYS-NON Basic KW 2-8 YRS BOYS-NON Basic KW 2-8 YRS BOYS-NON Basic KW 2-8 YRS BOYS-NON Basic KW 2-8 YRS BOYS-NON Basic KW 2-8 YRS BOYS-NON Basic KW 2-8 YRS BOYS-NON Basic KW 2-8 YRS BOYS-NON Basic

ORACLE CLASS
KNIT TOP KNIT TOP KNIT TOP KNIT TOP KNIT TOP KNIT TOP KNIT TOP KNIT TOP

SAIL CREW
ACTIVE SPORTS ACTIVE SPORTS ACTIVE SPORTS AQUA LIFE AQUA LIFE AQUA LIFE AQUA LIFE SHIRT CATEGORY SHIRT CATEGORY SHIRT CATEGORY

PROSPPER
S7 FASHIONS S7 FASHIONS S7 FASHIONS S7 FASHIONS S7 FASHIONS S7 FASHIONS S7 FASHIONS DUDHANI DUDHANI DUDHANI

MAX KIDSWEAR Non-Basics

MAX KIDSWEAR Non-Basics MAX KIDSWEAR Non-Basics MAX KIDSWEAR Non-Basics MAX KIDSWEAR Non-Basics MAX KIDSWEAR Non-Basics MAX KIDSWEAR Non-Basics MAX KIDSWEAR Non-Basics MAX KIDSWEAR Non-Basics MAX KIDSWEAR Non-Basics MAX KIDSWEAR Non-Basics

KW 2-8 YRS BOYS-NON Basic

KW 2-8 YRS BOYS-NON Basic KW 2-8 YRS BOYS-NON Basic KW 2-8 YRS BOYS-NON Basic KW 2-8 YRS BOYS-NON Basic KW 2-8 YRS BOYS-NON Basic KW 2-8 YRS BOYS-NON Basic KW 2-8 YRS BOYS-NON Basic KW 2-8 YRS BOYS-NON Basic KW 2-8 YRS BOYS-NON Basic KW 2-8 YRS BOYS-NON Basic

KNIT TOP
KNIT TOP KNIT TOP KNIT TOP KNIT TOP KNIT TOP KNIT TOP KNIT TOP WOVEN TOP WOVEN TOP WOVEN TOP

PRICING COMPARISON PRIVATE LABEL VS. NATIONAL BRANDS

Category Private Label Pricing National Brands Pricing

Men's Formals Women's Western Wear Womens Ethnic Wear Max Teens & Kids Men's Sportswear

Max Formals Max WW Tavisha Max Kids Max Active wear

Rs. 599-1299 Rs. 299-1899 Rs. 1199-4999 Rs. 149-1199 Rs. 299-1599

John Players Cherokee W Kappa NA

Rs. 800-1600 Rs. 599-2999 Rs. 799-2999 Rs. 700-2100 NA

PRIVATE LABEL PROMOTIONAL PRICING

SUB_NAME CORE CHURIDAR CORE DUPATTA CORE MEDIUM KURTA FASHION MEDIUM KURTA CHEST PRINTS HS REG-woven top PIQUE POLO RINGER TEES DENIM BOTTOM ccp CAPRI DB tights YCP DEPT_NAME EW TRADITIONAL - Basic EW TRADITIONAL - Basic EW TRADITIONAL - Basic EW TRADITIONAL - Basic MWCASUAL-Basic MWCASUAL-Basic MWCASUAL-Basic MWCASUAL-Basic MWDENIM-Basic WW CORE-Basic WW DENIM-Non Basic WW DENIM-Non Basic WW ESSENTIALS-Basic WW YOUNG-Basic Grand Total MRP 399 299 399 399 269 549 329 249 799 229 799 799 299 249 offer SUB_NAME Pjtd Ros 4.9 2.3 12.1 7.0 6.3 0.6 1.8 0.5 0.1 0.0 0.7 0.6 0.2 5.0 42.1 Buy 1 for 399 & 2 for 699 CORE CHURIDAR Buy 1 for 299 & 2 for 499 CORE DUPATTA Buy 1 for 399 & 2 for 699 CORE MEDIUM KURTA Buy 1 for 399 & 2 for 699 FASHION MEDIUM KURTA Buy 1 for 269 & 2 for 469 CHEST PRINTS Mark down to 499 HS REG-woven top

Buy 1 for 329 & 2 for 549 PIQUE POLO Buy 1 for 249 & 2 for 449 RINGER TEES Mark Down to 699 DENIM BOTTOM

Buy 1 for 229 & 2 for 399 ccp Mark down to 699 markdown to 699 CAPRI DB

Buy 1 for 299 & 2 for 499 tights Buy 1 for 249 & 2 for 449 YCP

SPSF ANALYSIS OF PRIVATE LABELS VS. NATIONAL BRANDS

Department Total Sales Total Sales Total April in April Sales Total Space Total Space Total Space Sales/Sq. Ft Sales/Sq. Ft allocated Allocated to Allocates Private Labels NA 1100 SQ FT 1100 SQ FT National Brands NA NA Rs. 1318.13 to for National for Brands Private in April (NB) in (Private Labels) Kids Wear NA Rs. 1450000 Labels

Mens Wear

Rs. 866671

Rs. 591000

Rs. 1457671

1000 SQ FT

600 SQ FT

400 SQ FT

Rs. 2166

Rs. 985

Western Wear Rs. 496875

Rs. 754125

Rs. 1251000

1050 SQ FT

505 SQ FT

545 SQ FT

Rs. 1493

Rs. 911

Ethnic Wear

Rs. 415635

Rs. 135365

Rs. 551000

956 SQ FT

200 SQ FT

756 SQ FT

Rs. 549

Rs.676

Sales Per Sq. Ft Analysis

SPSF SUMMARY
1. The SPSF of Men's wear is more for concessionary brands than for Private Labels. 2. This means that more concessionary brands will work in this particular store location in the Men's wear category. 3. This maybe due to males preferring brands more in a particular location. 4. The SPSF of Women's Wear and Ethnic Wear reveals that the sales are more for private labels than for NB. Which means that more private labels can be pushed into the store with higher margins. 5. This is an anomaly and depicts the preference of cheap and chick style over branded products. This maybe due to women willing to try more of non-branded products which are cheap.

PROMOTIONS INSIDE THE STORE

SHELF SPACING INSIDE THE STORE 1. Private labels are more prominent inside the store. 2. The national brands are given a different space altogether called as concessionary brands. 3. Approximately one-third the carpet area of the store is given to the concessionary brands.

PRIVATE LABEL UNIT COST AND MRP

MAJ_CAT_NAME MH-Ladies Ethnic SUB_CAT_NAME MH-MNM BOTTOM SALWAR MH-MNM BOTTOM KNITS CHURIDAR CAT_CO DE CAT_NAME UNIT_COS NET_SAL GROSS_S T E ALE MRP 235 284 390 177 248 141 283 319 284 284 284 319 213 313 333 523 214 332 190 379 428 333 333 380 428 285 329 399 549 249 349 199 398 449 399 399 399 449 299 399 549 249 349 199 199 449 399 399 399 449 299

8,652 MH-Ladies MNM 8,652 MH-Ladies MNM 8,681 MH-Ladies Night Wear 8,708 MH-LADIES TEES 8,663 MH-Boys Tees 8,663 MH-Boys Tees 8,663 MH-Boys Tees 8,709 MH-Infant Topwear 8,679 MH-Ladies Bottom 8,679 MH-Ladies Bottom 8,681 MH-Ladies Night Wear 8,709 MH-Infant Topwear 8,663 MH-Boys Tees

MH-Ladies Ethnic MH-Ladies Accs/Night wear MH-LAD NIGHT SUITS MH-Ladies Western MH-Kids Boys MH-Kids Boys MH-Kids Boys MH-Infant MH-Ladies Western

MH-LAD CORE PRINT TEE MH-BOYS HS TEES 2 TO 8 YRS MH-BOYS HS TEES 8 TO 14 YRS MH-BOYS HS TEES 8 TO 14 YRS MH-TOPS GR HS 0 TO 2 Y MH-LAD KNIT LEGGING F/L

MH-Ladies Western MH-LAD KNIT LEGGING F/L MH-Ladies Accs/Night wear MH-LAD NIGHT GOWN MH-Infant MH-Kids Boys MH-TEES GR HS 0 T0 2 Y MH-BOYS HS TEES 2 TO 8 YRS

ADVANTAGES OF NATIONAL BRANDS

Marketing and Advertising give consumers the impression that the national brand is superior to a local or private-branded product. Known to a large segment of society as compared to the private labels. Trust building is more in national brands. DISADVANTAGES OF NATIONAL BRANDS National brand marketing requires greater advertising expenditure on the part of the manufacturer to compete with lower-priced private label brands.

REASONS FOR A PARTICULAR CATEGORY NOT DOING WELL

PROMOTIONS More promotion needs to be done. Max Fashion should establish itself as a brand which can be done only through heavy promotions because in todays scenario to make consumer aware about the store promotion plays an important role in it. Max Fashion are new unit of Landmark so in initial stage promotion is necessary to establish in market. INTRODUCE WIDE RANGE AND VARIETY Customers could be better satisfied with a wide range of apparels designs in clothing lines. Many customers do not get size they are looking for and are disappointed. There should be proper and timely stock replenishment done at the store level.

 The consumer is more interested in variety of the products rather than the price. Bringing customer into store may be easy, but once they enter the store they should get what they want. Consumers have high expectations from Max Fashion regarding pricing, they expect good collection of clothes at much cheaper price. A lot of awareness programs may help in getting better footfalls. Product knowledge is very important to convince the customer.