Individual marketing plan
The Raymond Group
King graduate school, Monroe college
MG 660 Strategic marketing
Individual marketing plan
The Raymond Group
The textile industry of India has a whole range of collection, which can broadly categorize into three segments: Spinning, weaving and garmenting. The Indian textile and apparels industry is in stronger position now than it was in the last six decades. The industry which was growing at 3:4 percent during the last six decades is now growing at a speed rate of 9:10 percent annually. And in that market Raymond ltd. Shares 60 percent of Indian worsted suiting market.
(1) Situation Analysis:
Raymond ltd is the biggest manufacturer of fabric in India and it is situated in Mumbai in India. It was setup as Raymond woolen mill during 1925 in Mumbai. In 1944 it was further taken care by lala Kailash pat Singhania and in 1958 it was taking over by Mr. Vijaya Singhania, who with his hard work and great efforts lead this small company to renowned brand into the world. Till now it was just making fabrics only and its first readymade garment plant was launched in 1968 in thane Mumbai. To overcome the increasing demand for woolen fabric in the market it setup its second manufacturing plant at Jalgaon Maharashtra in the year 1979. In 2000 Mr. Vijay pat surrenders his company to his beloved son Gautam Singhania in 2015 and he himself got retirement. Further in November 2015 Raymond announced Sanjay Bhel as CFO.
2) Market Analysis:
It is India’s biggest Woolen fabrics maker. It has almost 3/4th market in suiting in India. Its fabric market has a distribution network of over four thousand multi brand outlets and more than 600 retail showrooms in India. Being single company in Fabrics it is one of the largest companies in its own kind as it has developed more than 25000 designs along with different colors. Not only that it also supplies its products to over more than 60 countries such as US, Canada, Europe, Japan, Middle East etc. Also, in 2015 it has received the tag of “most trusted apparel brand” by THE BRAND TRUST REPORT.
Looking further towards company it produces twenty-five million meters of high value of pure wool, blend and premium polyester viscose in fabric as well as they also produce readymade from them such as shirts, trousers kurtas etc. Not only that they also make half a million of blankets and shawls. They are also known for their plush velvet furnishing fabric in wide range of design and colors including carpeting for the markets of India, middle east and worldwide.
2.1) Market Demographics
Madura, Arvind mills, wills lifestyle and Jade Blue are some of the major competitors of Raymond ltd. In readymade segment. While in the fabric range the Reid and Taylor is major contender.
Its pioneer fashion brands are:
• Manzoni – Luxury lifestyle
• Park Avenue– Premium formal wear
• Parx – Premium casual wear
• Be – Designer woman wear
• Zapp – Premium infant and kids wear
•Color Plus – premium smart casual wear
• Noting Hills – popular segment
Based on market research between 2008 to 2017
Market Size – $20.5 billion of total sale
Market Growth – At 15% CAGR
Indian branded market is approximated of 2 billion. Total estimated market size for ready to wear sector is 9000 crores with annual growth rate of 15 to 20%.
Raymond turns over during 2008-2009 with ready to wear growth of 15%.
2.2) Market Needs:
In fabrics majority of buyers are individual consumers. Consumers prefer specific retailers rather than specific brand. This is because Indians are less aware to brands. Moreover, coexistence of different retailers in the market tends to lower the customer switching costs. Consumer preferences are changing for better quality apparels with low cost offered by major retailers. So, for Raymond ltd it’s necessary for them to focus on such consumers which are diverted to retailers for low cost an unaware of brand. Raymond is well known for their menswear and they are in highly demand.
Total estimated market sale for Raymond for readymade is based on mind set, natural climate like winter (high sale of warm clothes) and summer (high sale of pure cotton clothes), shopping seasons like Diwali, Navaratri (high demand of traditional wear) and etc. sale on season increase at a rate of 15 to 20%.
2.3) Market Growth and Trends:
The Indian menswear clothing in retail industry is growing significantly and thus in India readymade market is attracting national as well as international sellers to step in the market. The menswear sector includes diverse product lines which provide retailers and brands to identify a point a of differentiate in the product they offer. This gives individual an opportunity for new entrants.
3) Competition Analysis:
The overall supplier power is high due to low cost of labor and suppliers of manpower. Also, the option of tailor-made clothing is comparatively cheap in India. Due to increasing emphasis on style every brand attains customer stickiness by competing on price, quality, product, design and store. All these factors intensify rivalry and thus profit margin decreases due to fierce competition.
4) Marketing Research:
Casual menswear is the fastest growing segment in manufacturers, wholesalers and raw material category. It’s growing at a rate of 25%. There is a huge scope of expanding the number of retailer’s category of casual menswear by providing diversity with rise in raw material and inventory through differentiation. Currently the category and quality already cost for various sub categories like knitted shirts & t-shirts, V-necks tees, round necks for brand clothing.
5) Swot Analysis:
1) Raymond has strong research and development for product like readymade and fabrics as well. It has strong innovative idea to grow its products and attract customers.
2) Raymond can develop high quality of product thus it has high customer satisfaction and loyalty.
3) It has good working condition for worker and pays worth salary to individual for their work which in return gets loyalty of employee towards the company.
4) Raymond owns 550 stores in more than 200 cities across India as well as globally which helps to generate high revenue and makes easy for customer to get their products.
5) Due to variety of product for different occasions along with quality customer have trust on their products and great brand loyalty.
6) Company has ability to attract more customers than local brand.
7) Raymond is also expert in branding their products through advertising like TV’s, printing ad campaigns etc.
1. Company has difficulties in global penetration has it is limited as compared to a few other international brands.
2. Due to presence of Indian and international brands offers more offering to customers therefore high brand switching.
1. Raymond is consistently growing over years.
2. With increasing capacity of earning of consumers it has large and growing market.
3. It has opportunity to expand globally which would give more opportunities for brand to grow.
1. All major companies in industry are competing not only on low cost but also better quality which leads to low margins
2. Regional trade alliances
3. Increased social and ecological awareness will put pressure on company to follow international labor laws and environmental laws