MADURA GARMENTS’ NEW PRODUCT MIX AND

POSITIONING STRATEGIESAbhishek Kukreti

Anshul GuptaAmit Kumar Shah

Ashish Vikram SinghPrateek Raj Chopra

Rachna JainSandip Choudhury

INTRODUCTION

• Since foraying into the Indian textiles scenario in 1988, Madura Garments, a division of Madura Coats until 1999,has been catering to the varied apparel needs of men, with brands like Louis Philippe, Van Heusen, Allen Solly and Peter England. • Even after the reins of Madura Garments were passed on to Indian

Rayon (a subsidiary of the Aditya Birla Group) the company continued to offer a wide array of formal and informal men's apparel. • However, in spite of being a stable and dominant player in the men's

apparel segment, in 2001, Madura Garments ventured into women's wear by extending its brands - Allen Solly and later Van Heusen.

• After 7 years, in 2008, Madura Garments implemented a similar strategy to enter the kidswear segment. • Madura Garments is aiming to emerge as a specialty retail outlet, catering to

the apparel needs of the entire family under one large roof. • Its entry into the lucrative kidswear territory has been marked by a

restrained advertising approach. • However, can Madura Garments garner critical mass in a market that is

dominated by unorganised players and homegrown brands like Gini & Jony and Lilliput, which boast a strong national presence? • Can it face competitors like Raymond that has marked its entry with an

exclusive brand (Zapp!)?

MADURA GARMENTS

FIANANCIAL PERFORMANCE OF MADURA COATS LIMITED

• Acquisition put Indian Rayon at the top of the league in the industry & Indian Rayon emerged as a largest branded apparel company in India.• Top line brands of Madura Garments became part of AB

Group.• Allen Solly, Van Heusen & Louis Philippe claimed 40% share

in premium branded men’s wear market & Peter England shirt was an instant success in mid- priced segment.• Within a year net turnover of Indian Rayon increased 42%.

Acquisition

Premium Lifestyle Brand

Style conscious customer

Louis Philippe :

Van Heusen : Premium work wear brand

Focused on innovation

Peter England :Positioned mid-price segment

Working Indians between 20-30 years

Brand Positioning Strategies

Allen Solly

Positioned as bold western work wear

Friday Dressing concept

Esprit International lifestyle brand

Provided fresh look and new style every month

San Frisco : Mid priced fashion wear

• The company increased the presence from 300 to 450 stores

• Peter England positioned as ‘an honest shirt’ ,while Allen Solly with a market share of 14%-15% symbolized a bold & unconventional work wear.

• Madura Garments recorded a 37% increase in its sales.

• Targeted the working women’s wear : Age 20-40

• Allen Solly also entered the into jeans segment

• Madura garments extended concept of Women’s wear to Van Heusen and captured 25% of market share

• Madura Garments brought international lifestyle brand Esprit to India & Peter England introduced its sub brand Peter England Elite

Price List

Brand Product Price (in INR)

Allen Solly (Women’s Wear) Woven Tops 599-999

Knitted Tops 499-999

Trousers 799-1099

Allen Solly (Clean Jeans) Work Wear Jeans 1099-1399

Peter England (Elements) Core Denim Jeans 595-895

Peter England (Elite) Contemporary Work Wear 900-1200

Van Heusen (V Dot) Party & Casual Wear Shirts 1500-3000

San Frisco (SF Jeans) Denim Variation 895-1395

Success Line

• Allen Solly women’s wear bagged the ‘most admired brand-smart casuals’ at the Images Fashion Awards (IFA).• Success propelled them to extend Allen Solly in to jeans segment

(Clean Jeans), a collection of lightweight jeans.• 2004: They extended women’s wear to Van Heusen too.• Allen Solly & Van Heusen together captured nearly 25% share of the

market.• 2005: Madura Garment brought international lifestyle brand Esprit to

India.

• They continued to explore new avenues:• 2007: Peter England introduces sub brand: Peter England Elite, targeted

young working customers aged 20-30.

• After being successful in both men’s and women’s apparel segment, they decided to enter the untapped kid’s apparel segment.

KIDS’ APPAREL MARKET IN INDIA

Kids wear market size - Rs 38,000 crore in year 2009. 25 % of the total Indian apparel industry.It is expected to reach Rs 58,000 crore by 2015.Growing rate - 17 %.Over all growth is 14% in kids apparel industry in India.Current Growth rate - 4.5 %88 percent of kids wear is readymade and thus brands have only

been able to corner 12 %.

DECISION MAKING POWERIn late 1900, the decision making power of kids’ apparel was into their

parents hands.But now Children make there own decisions. ReasonsChildren are becoming more fashion and brand consciousIncreased media exposureDouble-income parentsKids are aware of branded goods30% of the population is less than 15 years of age2 crore births every year, so kids wear industry is big opportunity

KEY PLAYERS IN KIDS APPAREL SECTOR

NO CHILD’S PLAYThe organized children's wear market is suffering from growing pains. It is paying the price for reckless expansion, in the form of heavy

debt, poor brand recall, high rent costs, and continued competition from mom-and-pop shops in a highly fragmented market.

The number of Gini & Jony exclusive outlets went up from 191 in 2010/11 to 203 in 2011/12, and dropped to 188 in 2012/13.

The number of Liliput exclusive outlets went up from 260 in 2009/10 to 330 in 2011/12, and dropped to 240 in 2012/13.

Lilliput has servicing debt of Rs 850 crore.

KIDS WEAR MARKET SIZE IN INDIA Kids wear market size is – Rs 58,000 crore Annual Growth rate – 20% Children’s market in India can be broadly divided into five segments:

i. super premium (above Rs 2,500) ii. premium (Rs 1,000-2,500)iii. mid (Rs 500-1,000)iv. economy (Rs 250-500)v. lower (up to Rs 250)

Kidding becomes a serious business in India

• Brand • Colour• Status conscious parents• Clothes with cartoon characters• Comfort level • Price

Factors Influencing Purchase Decision Of Kids

company brand Promotion strategy

The Raymond Group

Zapp! To promote this brand it has an agreement with ‘WARNER BROTHERS’ to feature ‘Superman’ on its clothing range.

Reebok Made to play As an introductory offer, reebok gave a return gift of worth rs500 on the purchase of rs1000.It also organised online games on the theme of the brand.

Lilliput Promoted with the tagline ‘LOVE IT WEAR IT’

Spykar jeans On your own Promotes the brand using the tagline ‘Say goodbye to the traditional frills and cartoons approach to children’s clothing.

Marketing strategy of Indian apparel players

• The segment aimed at kids between 1-14 years of age has an annual growth rate of 18%

• Due to reasons like continuous retail boom and increase in disposable income it has increased from 40% to 70% of family income.

• For instance kids between 0 and 12 years of age would change their dress at least three times a day and this necessitated variety.

• Parents no longer are the only decision makers.

• According to industry analysts parents prefer fabrics which are skin friendly and free from harsh dyes.

• As kids between 7 and 14 years of age account for nearly one third of the Indian population, apparel makers have realized that PESTER POWER in the kids wear market is here to stay.

Why kids market??

• Kids are becoming demanding in their brand preferences.(8 to 14)

• Owing to factors like the influence of peers and the fashion awareness generated by cartoon channels like pogo and cartoon network etc.

• In India the branded kids wear segment is still undeveloped with a brand penetration of only 9%

Current Scenario

• Brand player gini & johy lilly put and catmoss.

• Raymond entered kids apparel market space in 2006 (The kids are growing older younger which means that they are getting smarter.)

• Reebok in 2008 Reebok juniour offering sports wear collection .

• In addition to the traditional demand for shorts and shirts kids apparels like halter tops, short skirts and cropped trousers are also gaining popularity.

• The Indian market is moving towards an international look even in the kids wear segment.

• SATISFYING CHILDRENS WANTS IS A GREAT LEARNING EXPERIENCE .

Major Players

Foraying Into KID’s Apparel Market

• 1st Strategy• Brand Extension:• Madura Kids Wear• Peter England• Allen Solly• Espirit

• 2nd Strategy• End to end wardrobe solution under one roof• Launched PEP

• Addressing demands of urban working families

• International styling

• Accessible prices

• Creating a fun environment for shopping

• Getting feedback

• Growth of the company

• Earning high margins (Shoppers stop, west side & Lifestyle)

Concept of PEP

• Being present in the retail space is the only way to grow

• Many retail chains charges margins as high as 50% from the manufacturers.

Presence in the retail space

Kidswear Collection

Company Brands positioning

Target customers Product Promotion

strategyPrice (in INR) Distribution

Madura garments

Peter EnglandPeople

For men, women under the age of 35

Brand offering fashionable clothes with international standards

Close attention provided on the in-store environment

-Distributed through specialty stores

Esprit kids (Kids world collection)

Targeting kids between 3-10 years of age

Products portraying international fashion

Use of suitable mannequins in the store design

400-1200Operating of 33 stores at present

Allen solly

Aimed at children between 4-12 years of age. It is still in the test marketing phase

Based on the market response, the company plans to introduce kids wear products

• Pushing the brands into kids segment, Madura garment is preparing itself for expansion spree.

• The company started investing in new stores with the hope of reaping benefits in future.

Brand No. of stores 2008 2009

Allen-solly (company owned outlets)52

Increase by another 15-20 stores

Esprit 33 70Peter England people 5 90

Gini & jony 160 (End of 2008)200Lilliput 112 500

Expansion plans of kids wear brands

Conclusion

• They decided to create ‘multi product category’ environment for the entire family.

• They believed that brands catering to smart casuals for men and women emerged as a logical choice.

• The digital communications(Through web-sites or mobile phones)is minimal, And the tele-vision advertisement is NIL

• The company faces the challenge of retail with Gini & jony entering Tier ii And tier iii cities

• Due to limited presence as well as restrained advertising approach creates an ambiguous environment.