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Group 7 - ABFRL in Ethnic Apparel

ABFRL is an Indian fashion retail company headquartered in Mumbai. Some key milestones in ABFRL's history include launching brands like Louis Philippe, Van Heusen, and Allen Solly in the late 1980s-1990s, acquiring the Madura Garments business in 1999, consolidating its textile and apparel businesses in 2000, launching Pantaloons in 2013, and consolidating all of its branded apparel businesses to form ABFRL in 2015. More recently, ABFRL has expanded into new categories, launched sub-brands, and entered strategic partnerships with international brands like Ted Baker, Forever 21, and American Eagle Outfitters.
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0% found this document useful (0 votes)
226 views66 pages

Group 7 - ABFRL in Ethnic Apparel

ABFRL is an Indian fashion retail company headquartered in Mumbai. Some key milestones in ABFRL's history include launching brands like Louis Philippe, Van Heusen, and Allen Solly in the late 1980s-1990s, acquiring the Madura Garments business in 1999, consolidating its textile and apparel businesses in 2000, launching Pantaloons in 2013, and consolidating all of its branded apparel businesses to form ABFRL in 2015. More recently, ABFRL has expanded into new categories, launched sub-brands, and entered strategic partnerships with international brands like Ted Baker, Forever 21, and American Eagle Outfitters.
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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JAIPURIA INSTITUTE OF MANAGEMENT, JAIPUR

Course: Marketing, Planning, and Control

Term: III Term (Year: 2020-22)

ABFRL in Ethnic Apparel

Submitted by: Group 7


Roll No. Name
PGFB2017 Gaurav Kumar

PGFA2040 Priya Agarwal


PGFA2053 Suhani Mathur
PGFB2053 Sweta Bhutra
PGFA2055 Swetanjali Meher
PGFB2058 Vibhuti Goyal
PGFB2060 Yashika Chandnani

Submitted to: Dr. Swati Soni

1
Acknowledgment

At the very beginning of this undertaking report, we might want to broaden our genuine and
sincere commitment towards all the personages who have helped us in this undertaking. Without
their dynamic direction, collaboration, and consolation, we would not have made progress in the
task.

We are inexpressibly obliged to Dr. Swati Soni, for upright direction and support to finish this
report.

Lastly, appreciation goes to every one of our companions who legitimately or by implication
helped us to finish this task.

Any exclusion in this short affirmation does not mean an absence of appreciation.

Thank You.

2
Table of content

Sr. No. Topic Page No.


1 Company's Overview -
1.1 Introduction 5
1.2 Milestones 6
1.3 Brands 9
1.4 Company SWOT Analysis 10
1.5 Competitors 11
2 Industry’s Overview -
2.1 Industry SWOT Analysis 12
2.2 Industry Valuation and CAGR 15
2.3 Potential size of market 16
3 STP -
3.1 Segmentation 17
3.2 Targeting 19
3.3 Positioning 20
3.3.1 Point of Difference 21
4 ANSOFF Matrix 22
5 Key Consumer Characteristics 24
6 VALS Framework 25
7 Consumer Buying Behaviour 26
8 Marketing Mix -
8.1 Product -
8.1.1 Product Portfolio 28
8.1.2 Basic Product Features 31
8.1.3 Point of Difference 33
8.1.4 Product Differentiation 34
8.1.5 Product Life Cycle 35
8.1.6 Product Mix Decision 37
8.1.7 Packaging and its Role 38
8.1.9 After Sales Services 39
8.2 Price -
8.2.1 Pricing Objectives 40
8.2.2 Value Based Pricing 41

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8.2.3 Price Changes if any 43
8.2.4 Competitors' Effect 44
8.3 Place -
8.3.1 Distribution Channel 45
8.3.2 Choosing the Channel 47
8.3.3 Motivating the Channel 48
8.3.4 Retail Outlet 49
8.3.5 Ways Channel Members add Value 51
8.4 Promotion -
8.4.1 Promotional Mix 53
8.4.2 Communication Objectives 55
8.4.3 Above the Line Promotion 56
8.4.4 Below the Line Promotion 57
8.4.5 Branding Strategies 58
9 Budgeting -
9.1 Budgeting Technique 60
9.2 Budget Allocation 61
10 Challenges 63
11 Recommendation 64
12 References 65

Introduction

Aditya Birla Fashion and Retail Limited (ABFRL) is an Indian fashion retail company
headquartered in Mumbai. ABFRL has a network of 3031+ stores with a presence across

4
approximately 25,000 multi-brand outlets with 6,500+ points of sales in department stores across
India. The managing director of ABFRL is Ashish Dikshit

Aditya Birla Fashion and Retail Ltd. (ABFRL) emerged after the consolidation of the branded
apparel businesses of Aditya Birla Group comprising ABNL's Madura Fashion division and
ABNL's subsidiaries Pantaloons Fashion and Retail (PFRL) and Madura Fashion & Lifestyle
(MFL) in May 2015. Post the consolidation, PFRL was renamed Aditya Birla Fashion and Retail
Ltd.

ABFRL is a part of the Aditya Birla Group, a US$ 48.3 billion Indian multinational, in the
league of Fortune 500. Anchored by an extraordinary force of over 120,000 employees,
belonging to 42 nationalities, the Aditya Birla Group operates in 34 countries across the globe.

With the vision ‘To passionately satisfy Indian consumer needs in fashion, style, and value,
across wearing occasions in Apparel and Accessories through strong brands and high-quality
consumer experience with the ultimate purpose of delivering superior value to all our
stakeholders and values like seamlessness, passion, speed, commitment, and integrity, it has a
reputation of leading brands such as Louis Philippe, Van Heusen, Allen Solly, and Peter
England established for over 25 years. Pantaloons is one of India’s largest fast-fashion store
brands.

In 2021, ABFRL announced a strategic partnership with India's largest design brand 'Sabyasachi’
by signing a definitive agreement for acquiring a 51% stake in the 'Sabyasachi' brand. This
partnership will add significant weight to ABFRL's growing ethnic wear portfolio, and the
platform will complement the brand on its journey to becoming a global luxury house out of
India.

Milestones

Years Achievements
1988-92  1988, ‘Madura Garments’ was formed

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 1989, ‘Louis Philippe’ was launched in India
 1990, ‘Van Heusen’ was launched in India
1993-98  1993, ‘Allen Solly’ was launched in India
 1997, ‘Peter England’ was launched in India
1999-  1999, Aditya Birla Group acquire Madura Garments
2005  2000, Textile and apparel business was consolidated
 2001, ‘Planet Fashion’ was launched
 2001, Allen Solly launched women section as ‘Allen Solly Women’
2006-08  2006, ‘Van Heusen Woman’ was launched
 2006, ‘V Dot in Van Heusen’ was launched
 2007, In the Premium segment, Peter England launched its sub-brand
named ‘Elite’
 2007, Louis Philippe launches sub-brand 'LP' in Casual Wear segment
 2008, Louis Philippe launches sub-brand 'Luxury in the luxury
segment
 2008, 'The Collective' launched
2009-11  2010, Louis Philippe Shoes' launched
 2011, Madura Garments re-christened as 'Madura Fashion & Lifestyle
 2011, Van Heusen launches a sub-brand called 'VH Sport'
 2011, Louis Philippe launches 'LP Jeans'
 2011, Planet Fashion launched 'Planet Fashion Grande'
2012-13  2012, Madura Fashion & Lifestyle enter into a joint venture with
'Hackett London'
 2012, Peter England forays into non-apparel: launches 'Peter England
bags'
 2012, 'Louis Philippe bags' launched
 2012, Allen Solly introduces 'Crossover style shoes for men'
 2013, Aditya Birla Group acquires 'Pantaloons'
 2013, Pantaloons Voted 'India's No. 1 Trusted Apparel Retailer for
2013' in the Brand Equity Survey of The Economic Times
2014-15  2014, Van Heusen launches 'MY FIT'

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 2015, Van Heusen unveils its first flagship experience 'Van Heusen
Style Studio'
 2015, ABFRL's Planet Fashion Unveils a New Brand Identity
 2015, Consolidation of Branded Apparel Businesses of Madura F&L
and Pantaloons: 'Aditya Birla Fashion and Retail Limited' (' ABFRL')
2016-17  2016, ABFRL strikes a deal with global luxury brand 'Ted Baker'
 2016, ABFRL forays into men's Innerwear & Athleisure category
 2016, 'Pantaloons Woman' launch
 2016, 'Pantaloons Kids' launch
 2016, ABFRL signs MOU With 'Forever 21' for India Business
 2016, ABFRL signs deal British Designer Wear Brand ‘Simon Carter’
 2017, ABFRL entered into a strategic alliance with American Eagle
Outfitters, Inc.
2018  Aditya Birla Fashion and Retail Ltd Brings Fred Perry to India
 Style Up, the family store by Aditya Birla Fashion and Retail Ltd. is
launched across tier III cities to offer smart fashion at affordable
prices!
 Van Heusen Innerwear and Athleisure business announced its foray
into the Women’s Innerwear & Athleisure market.
 ABFRL entered into a Store License and Distribution Agreement with
Ralph Lauren Asia Pacific Limited (“RLAPL”), which offers apparel
and accessories for both men and women under the brand name “Polo
Ralph Lauren” and “Ralph Lauren”
2019  Acquisition of 51% stake in M/s Finesse International Design Private
Limited (“Finesse”), a company primarily engaged in the business of
bespoke occasion and ceremonial contemporary apparel for men and
women under the brand name ‘Shantanu & Nikhil’.
 Acquisition of Jaypore, an Indian online and offline retailer, which
offers curated collections of handcrafted apparel, jewellery, home
textiles, and accents, based on craft forms from all over India.
2020  Peter England sets foot in the grooming segment with the launch of its

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new deodorant range
 Aditya Birla Fashion and Retail Announces Strategic Partnership with
Designer “Tarun Tahiliani” to enter Men’s Premium Ethnic wear
 Acquisition of 51% in Sabyasachi Couture

Brands

Being a fashion conglomerate, Aditya Birla Fashion and Retail Ltd. has a strong network of
brand stores across the country. They have 3031+ stores, 25,000 multi-brand outlets, and 6,000+
points of sales in various departmental stores across India.

8
The largest fashion store that is growing very fast is Pantaloons. They also have some exclusive
online and offline rights for the brand Forever 21, which is a California-based fashion brand.

Company SWOT Analysis

The strength and weakness of a company help in determining the internal analysis of the
company:

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1. Strength: The strength of the company lies in its brand as the brand has collaborated with
both Premium and international brands for serving a value audience who are into luxury and
high-end products. The company also has a diverse portfolio for its products as it wants to
cater to a larger consumer market. ABFRL is a brand that has created its brand equity among
the customers as it is an age-old brand and caters to large segments of the customer and with
its Omnipresence in the market.
2. Weakness: The weakness of the brand is its global penetration into the market outside India
which will help the company expand and grow its business around the globe. The company
has similarities in its brands which does not lead to innovation and creative space for the
brand to grow and recognize differences among customers.

The opportunities and threats of a company help in determining the external analysis of the
company:

3. Opportunity: Looking into the opportunity for the company this is a high growth industry as
the fashion and retail services are dynamic and are never-ending as there is the varied
opportunity for the company to grow. There is global acceptance of fashion across the world
and they have been into making tie-ups and acquisitions very often which is inorganic growth
and this is a great opportunity for the company to grow.
4. Threat: The threat for the company lies in the internal and external competition and among
the brand itself and in the outside market between different competitors. As the fashion world
is dynamic and changing customer preferences as there are changes and innovations in the
world which are a threat for the company.
The fashion cycle keeps on evolving which leads to changing buying behaviour of the customers.

Competitors

The ethnic wear industry is growing with a CAGR of 10% which means there not only
competition from existing brands but also from new emerging brands who would like to grab the

10
opportunity in a growing industry. Aditya Birla Fashion and Retail identified the potential of
growth in the ethnic apparel industry and started creating its base in the market by acquiring
well-known retail and designer brands. Now, these acquired brands already have competition in
the market hence the competitors of these acquired brands are now competitors for ABFRL in
ethnic apparel. 

Competitors for ABFRL in the ethnic sector would count a number to well-known brands such
as:

Fabindia BIBA Globaldesi Manyavar

Manish Malhotra  Satya Paul House of Masaba Rohit Bal

Industry SWOT Analysis

11
SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. It is a framework that is
used to evaluate the company’s or industry’s competitive position and develop strategic
planning. It assesses internal and external factors of the company, or the industry, as well as
current and future potential [CITATION Gra21 \l 1033 ].

SWOT Analysis of Indian Apparel and Textile Industry ([ CITATION Pra \l 1033 ]:

Strengths:

1. Raw Material Base: The third-largest cotton crop production in the world is in India.
India has high productivity and sufficiency for raw materials like natural fibres and
because of this reason, the Indian textile industry handles and produces all types of fibres.
2. Labour: Indian Apparel and textile industry always had cheap labour and entrepreneurial
skills labour, which have been the backbone of it.
3. Rich Heritage: India being a country of cultural diversity and rich heritage provides a
good inspiration base for designers.
4. Domestic Market: Domestic demand is carried out by the natural demand drivers which
include rising income levels, increasing urbanization, and growth of the purchasing
population.

Weaknesses:

1. More dependence on cotton: As there is an over-specialization in cotton, so the


International market is missed out. The synthetic products required for items like
swimsuits, sky-wear, and industrial apparel are expensive in India and the fabric is
relatively unavailable.
2. Spinning Sector: It lacks modernization and needs to introduce new technology.
3. Weaving Sector: India has a relatively less number of shuttle-less looms.

4. Fabric Processing: It is the weakest link in the Indian textile value chain and this affects
its ability to compete in exports, adversely.

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5. Poor Infrastructure: High power costs and long export lead times are eroding India’s
export competitiveness across the textile chain.
6. Low Labour Productivity: Productivity levels for manufacturing various apparel items are
far lower in India in comparison with its competitors.

Opportunities-

1. Growing industry: As we know that world textile trade is growing rapidly at a rate of 3-
4%. As we know that demand for apparel from the fashion industry is increasing. E-
commerce platforms are growing day by day so the growth of the fashion industry is
having better opportunities in the market.
2. Market access through bilateral negotiation: As there is a bilateral agreement between the
participating countries, the trade is increasing between regional trade blocks. In the past
few years' trade liberalization, the development of production networks and value chains
has been growing and has increased the global trade of apparel.
3. Integration of Information technology: As we all know, that from past years Information
Technology is playing an important role in the textile industry. Many companies are using
technological power for expanding their business and the textile companies are making
full use of technology so that they can add certain value to their business. Supply chain
management includes all the logistic activities which include sourcing, procuring, and
converting.
4. Opportunity in High-Value Items:India has a high chance of increasing its Unit Value
Realization by increasing the value chain by generating value-added products and by
manufacturing more technologically superior products.

Threats-

1. Decreasing Fashion Cycle: As we all know that fashion trends keep on changing according
to the season and according to the latest trends which are being followed, there has been an
increase in changing fashion cycle which has caused a shortening of the fashion cycle.

2. Formation of Trading Blocs: Trade blocs are economic integration and are increasing day
by day which is forming a structure of world trade. The formation of trading blocs which

13
includes NAFTA, SAPTA has impacted the world trade scenario. Existing bilateral
agreements have caused a serious impact on Indian Exports.

Industry Valuation and CAGR

14
Indian Ethnic Apparel segment is growing, not only in India but internationally as well. Brands
like H&M are building partnerships with Sabyasachi to launch their saree collection. The ethnic
Apparel industry is on its verge to become a 70,000 crore industry, with a CAGR of 10% till
2022.

Potential Size of Market

15
According to Statista, in 2018, the potential size of the ethnic apparel market was Rs. 925
Billion. As the demand for ethnic apparel never goes down, the reason behind it is that people in
India never stop celebrating festivals and other occasions which gives the ethnic apparel market
the scope to grow.

As we know that the spending capacity of a customer is increasing day by day and because of the
COVID-19 pandemic, the government has given the guidelines according to which people
cannot arrange functions having a capacity of more than 50 people, which gives people more
budget for clothing.

It is expected that in 2023, the potation size of ethnic apparel would rise to Rs. 1.7 Trillion.

Segmentation

16
Segmentation refers to the process of segmenting the market into the targeted groups. It divides
the market into categories, the customers are divided into groups depending on the similar
characteristics they share. It helps in creating a strong message according to the customers.
Segmentation further can be classified into four types:
 Demographic
 Psychographic
 Geographic 
 Behavioral
Sabyasachi is considered one of the leading brands in designer wear clothing. Now briefing
about the segmentation of Sabyasachi about all the four types.

1. Demographic Segmentation
 Gender: Sabyasachi makes ethnic wear for both males as well as females. Most
Indian men and women prefer to wear their dresses at their wedding to give a
royal look. 
 Age: They do not have any specific age group. They make designer dresses for all
age groups as well as for kids too. The miniature version of adult dresses is made
for the kids. In their fashion show with Loreal Paris in 2019, they showed the kids
wear designer ethnic wear too.
 Income: Sabyasachi wedding lehenga starts from 2.45 lakhs and goes up to the
range of 18 lakhs and more according to the customization and type of work
required by the customers. Lightweight lehenga and dress for other various
functions start from 3 lakhs. So, mostly the upper-middle- and high-income
groups of people can afford to buy it.
2. Psychographic Segmentation
In this segment, they focus on providing lavishness, exquisite and custom-made products
to their consumers. They put their emphasis more on providing excellence in designs and
also their craftsmanship work has set a new benchmark for the Indian consumers.
Sabyasachi also claims that in the coming few years ethnic wear segment is going to be a

17
very important category in the clothing wear world as the Indians especially the young
generation will rediscover their heritage and culture. 
3. Geographic Segmentation
Overall, India’s apparel market ethnic wear segment consists of 30% of the market. In
this segment, they are focusing more on the urban areas. Sabyasachi brands have its
franchise and various stores in India as well as in International countries. They have a
high gross margin profile by being a luxury brand. Aditya Birla Fashion and Retail
Limited are planning to tap the luxury segment of ethnic wear by opening more
Sabyasachi outlets. They are planning to open 5 exclusive brand outlets in India and 3-4
international outlets over the medium term. 
4. Behavioural Segment
 Quality and Uniqueness: In this segment the focus on providing quality and
uniqueness to its consumers. They provide designer dresses that are highly
customized and that makes Sabyasachi dresses unique from its competitors. 
 Occasions and Seasonal: Sabyasachi uses various occasions and seasons to sell
his dresses. His designer wear dresses are mostly wearied on weddings or
different occasions.

Targeting

18
Targeting is a marketing technique that divides a broad market into smaller segments so that a
certain group of consumers can be targeted. It identifies a consumer group based on their distinct
characteristics and caters solely to them.

Sabyasachi is targeting both men and women, with an age range of 20 to 40 years. Sabyasachi is
targeting high-income individuals who are looking for customized Indian wear to boost their
social status.

Positioning

19
Positioning is the concept of associating and developing a mental position in the public
consciousness about your brand and its products and services. Perceptual mapping is a tool to
position the brand in the market based on certain parameters.

Parameters to position the Sabyasachi in the market are:

1. Price
2. Quality

In the mapping, Sabyasachi is positioned in the quadrant of high quality and high price.
Sabyasachi design is of premium price targeted to the high-income groups. Sabyasachi used
premium materials to make his design such as banarsi silk which make his design more efficient.

Mapping also compares the brand with other competitive brands. In the quadrant of high price
and high quality, the brand of Manish Malhotra is also positioned along with the Sabyasachi but
Manish Malhotra designs are more expensive than Sabyasachi but less in quality. In the designs
of Satya Paul is positioned in the quadrant good quality but low price as compared to the other
brands.

Positioning statement

20
A positioning statement is a statement of the brand, product and services and how they fulfil the
needs of the target consumers better than their competitors. The positioning statement has four
parts:

1. Target
2. Brand
3. Frame
4. Difference

The positioning statement of Sabyasachi is:

1. Target: - Sabyasachi target thee high-class individuals who like to pay a very high sum
for the customized design. Sabyasachi designs are used occasionally as they are of
premium price, so the target audience is high-income groups.
2. Brand: - Sabyasachi Mukharji’s designs come under the brand of Sabyasachi.
3. Frame: - frame the product or sector your brand dealing in. Sabyasachi deals in the
sector of ethnic designer apparel. This sector includes all the ethnic designs like sarees
and lehengas.
4. Difference: - Sabyasachi provides premium quality products with values and luxury.
Sabyasachi brings the traditional Indian culture with the rich history of our country and
merges it with modern-day design. He also creates memories with his designs. All these
values are the reason that Sabyasachi fulfils the consumer needs better than his
competitors.

Ansoff matrix

21
Ansoff matrix is a tool for analyzing the different plan and strategies for growth by any
organization. The Ansoff matrix comprises four different strategies of growth where they are
bifurcated based on four parameters Existing product and market, new product and market as
given below:

1. Market penetration- existing product and existing market


2. Market development- existing product but new market
3. Product development- existing market but a new product
4. Diversification- new product and new market

The strategy of Aditya Birla Fashion and Retail Ltd. coming into the designer apparel industry is
comes under the strategy of market development.

The strategy to enter into the designer apparel industry is developing a new market for their
customer. As ABFRL already has designer brands like pantaloons, so the product is not but the
market they are targeting is the high-income groups market as which they did not have in
pantaloons. So the strategy to enter into the designer wear is to enter into the new market with an
existing product, thus market development.

22
Key Consumer Characteristics

23
Statement: The customer is from an urban area of a higher income group who generally purchase
occasionally and have an exquisite and unique taste.

VALS Framework

24
VALS framework is defined as a value attitude and lifestyle framework.

As we are studying, ABFRL in ethnic apparel and in that it’s a new acquisition that is Sabyasachi
the type of consumer in ‘Innovators’. Innovators are that 2.5% of customers who wish to
innovate and explore new varieties and have diverse and rich preferences over others. Innovators
are a venturesome set of consumers to wish to adopt new products and are ready to pay high
prices for they want to be first in owning something new. They are early adopters, young and
restless purchasers who wish to seek diversification.

It is psychographic segmentation. Innovators are those groups of people who are self-motivated
to make a purchase decision.

Consumer Buying Behavior

25
Consumer buying behaviour is measured on involvement and differences between brands.
ABFRL’s acquisition Sabyasachi stands on ‘Complex buying behaviour’ as it requires high
involvement decisions which is expensive, risky, self-expressive, infrequently purchased,
representing one’s social status. Indian consumers believe it is not a habit to buy designer wear
in routine but is a speciality good and how it is a self-reflection of esteem which makes it even
special which is bought by occasion as it also, provides customization by personal choices and
preferences. In designer ethnic wear people seek diversity, which brings self-experience and
exploring newer boundaries. They want to have unique and exclusive experiences for ethnic
wear. Realizing this need of customer ABFRL’s acquisition in Sabyasachi makes it profitable for
both consumers and company.

26
For the complex buying behaviour of consumers, there is a process of learning. The customer
first develops their beliefs about the product, then attitude, which then ultimately translates to a
thoughtful choice of purchase.

For a complex buying behaviour, high involvement is required because it is an expensive


purchase that is infrequently made, and consumers research thoroughly about the product as it is
a sensitive decision before committing the investment.

27
Product Portfolio

Sabyasachi offers a variety of apparel in both male and female sections. They do not have any
particular product portfolio or any fixed collection. Their collection changes every season and
every collection is based on a particular theme. The latest is ‘Bohemian’ under The 2021
Collection. It is a colourful, bright collection with a touch of royalty and elegance.

Women Men Other


Customized
Lehenga Churidar
Kid's Collection

Wallpapers
Saree Stole
and Upholestry

Suit Jacket

Indo- Wester Sherwani

Footwear Patiala

Accessories Footwear

Accessories

Women:

1. Lehenga:
 Material: Banarsi Silk, Chiffon, Zardozi
 Type: Bridal, Partywear, Reception
2. Saree:
 Material: Banarsi Silk, Chiffon, Zardozi
 Type: Bridal, Partywear, Reception

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3. Suits:
 Type: Banarsi Silk, Chiffon, Zardozi
 Pallazo, Togas, Anarkali
4. Indo-Western:
 Material: Banarsi Silk, Chiffon, Zardozi
 Shararas, Togas, Kaftans, Gowns
5. Footwear:
 Type: Embellished, Zardozi
 Material: Velvet, Leather
6. Accessories:
 Bags:
 Capsule, Bucket Bags, Slings, Tote, and Handbag
 Type: Embellished, Embroidery
 Belts:
 Material: Metal and Leather
 Jewellery:
 Material: Rube, Kundan, diamond, gold, turquoise, etc.
 Type: Necklace, chains, earrings, Kamar band, statement necklaces, bracelets,
rings, and nose-ring

Men:

1. Clothing:
 Material: Woven Silk, Banarsi Silk, Zardozi
2. Footwear:
 Customized
3. Jewellery:
 Type: Kilangi, Statement Necklace and Rings
 Material: Basra, Kundan, emerald, sapphire, etc.

29
Others:

1. Customized kids’ wear: miniature of adult apparel


2. Wallpaper and Furnishing: tie-up with Asian Paints for Nilaya.
 Collaboration with Asian Paints' Nilaya
 Wallpapers, Lampshades, Upholstery
 Inspired by the heritage of Lucknow, Jodhpur, Jaipur, and Udaipur
 Touch of Portuguese, Dutch, French, and Chinese.

30
Basic Product Features

Sabyasachi has a variety of products starting from dresses to accessories to footwear explained in
the product portfolio. His products contain tenderness and feeling and, in his dresses, there is an
essence of affection and love. That is the sole reason that it is the first choice of many of the
customers. His product features are also the reason for customer choice, and his basic product
features are:

1. The essence of Royalty: Sabyasachi products are imperial, royal, and dignified. If we see
weddings, it is a dream of every girl to feel and look like a royal princess on her wedding
day. Wearing a Sabyasachi lehenga will make them feel like that. Apart from lehenga, all
the other Sabyasachi products have a touch of royalty.
2. Quality of Fabrics: Sabyasachi designs dress for various occasions and they are wearied
with proper accessories and makeup and a person have to carry all at once and it has to be
carried very gracefully. So, it is very important to feel comfortable in what you are
wearing. His designs are handmade and focus more on textile, handloom, and handicraft
material. To give a comfortable product to its consumers their product undergoes many
processes. Some of the products are even burned and bleached to give the right textile
and shade.
3. New, Different, and Unique: Sabyasachi designs are inspired by different geographical
diversities in India. He includes all this inspiration in his work and that’s what makes his
product different. His products become unique because he includes different landscapes,
villages, antique textiles, and desserts, all these elements are seen in his work. He
believes that new, different, and unique designs should be an extension of one’s
creativeness and intelligence.
4. Indian Tradition: All the Sabyasachi products are the invention of his creative mind and
he has taken inspiration from the city of Kolkata where he was born. All his designs have
an ethnic essence and are authentic. In a time where major designers focus on
international concepts and modern fashion Sabyasachi focuses on Indian tradition. He
stands strong and developed designs in the realm of Indian traditions.

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5. Elegance: Today most of the designer is not able to bring elegance in the dresses.
Designer dresses are very colourful and sparkling. Sabyasachi has given a different idea
to this. His collection of dresses is filled with pure class and elegance. By wearing his
products people look graceful and elegant. 

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Point of Difference

Points-of-difference (POD) is ‘The aspects of the product offering that are relatively distinct to
the offerings of like competitors.’

Product differentiation incentivizes product innovation by drawing public attention to new


products or services, allowing the business to survive in a global and competitive market while
providing cutting-edge features to customers. Since differentiated products can be patented, they
generate more revenue than other types of products.

ABFLR’s point of difference is that they want to make value, premium clothing, and luxury
brand more accessible. They identify the gap in the market that is there is a segment of
consumers who want a shopping experience with designer brands but do not have the access to
them, be it due to the prices or availability.

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Product Differentiation

Product differentiation is the process of changing a product's marketing mix to differentiate


its competition or to offer a product that stands out in the market.

For Product Differentiation, Sabyasachi doesn't only sell high-quality clothes but it sells
memories of a happy occasion in one's life. As compared to its competitors Sabyasachi is selling
premium quality clothing and with that clothing, it is selling a lifetime experience. This is what
makes Sabyasachi’s product different from its competitors.

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Product Life cycle

Every product has a life cycle and this a divided into 4 stages – Introduction, Growth, Maturity,
and Decline. Management uses the concept of plotting their products to understand where their
product lines and make marketing decisions such as whether to increase advertisement
expenditure, enter a new market, change price, change packaging, etc. Every stage of the product
life cycle requires different marketing decisions.

Introduction Stage: any new product lines in the Introduction stage. This stage requires heavy
investment in advertisement campaigns, the main focus lies in spreading awareness about the
product to the target group.

Growth Stage: under this stage, the product has gained awareness and there is a growing
demand for the product. Under the growth, stage management can make decisions like increasing
production and expanding the distribution of the product due to high demand. There is usually no
need for high investment in the promotion of the product due to existing awareness in the
market.

Maturity Stage: a product is said to have entered the maturity stage when the profits are high
and consistent. At maturity, the product is already known to the customers so marketing cost is
low and the cost of production decreases due to the achievement of the economics of scale.

Decline Stage: over time and as the product matures in the market, the entrance of competition
increases, this creates high competition and if the management doesn’t innovate their product it
enters the decline stage. Once the product is in decline the management can either give it a
promotional push or harvest the product from the market. At this stage, there is no requirement
for promotional activities.

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ABFRL entering the ethnic apparel industry will come under the Introduction stage, till
date Aditya Birla Fashion and Retail only had western apparel brands under it. So, its entrance
into a new sector makes it enter the introduction stage. ABFRL acquiring well-known brands
like Sabyasachi is part o its inorganic growth, to make the customers of ethnic apparel aware of
its entrance into the ethnic sector they will require to do heavy promotions.

On the other hand, since ABFRL is acquiring pre-existing brands, these brands individually lie
under different stages of the product life cycle. Like Sabyasachi falls under the maturity stage.
Hence now ABFRL has the opportunity to benefit from using Sabyasachi’s existing customer
base.

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Product Mix Decision

The decision to add a new product or to exclude a product, or to introduce new variants of a band
to expand the enterprise, refers to the product-mix decision.

ABFRL aims to further tap the luxury segment by opening further Sabyasachi stores in the
medium term (5 exclusive brand outlets in India and 3-4 international shops). Currently,
Sabyasachi is looking at expanding into new cities; the company recently launched five stores in
Mumbai, Delhi, Kolkata, and Hyderabad. He's expanded his vertical jewellery, which now has
one shop in Mumbai, and plans to raise Rs 350-400 crore. Sabyasachi aims to build a truly global
luxury brand based in India. He plans to transform the company into a full-fledged fashion
house. It will be a "holistically and Indian brand" that will work on apparel, home, accessories,
jewellery, and even beauty, including skincare and wellness.

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Packaging and its role

How you sell an outfit is as important as what you sell because it creates a perfect 360-degree
brand story about what you are trying to tell about your product and about your vision of the
brand. 

Sabyasachi has two different packagings:

 Inside Packaging: Instead of using plastic or papers for wrapping, they use satin cloth.
 Outside Packaging: For high-end lehenga’s they provide two different types of wooden
boxes, one with the spaces for the accessories and the other for only lehenga. They also
provide their normal range lehenga and saree in a cover. They provide hard cardboard
boxes for accessories.

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After-Sale Services

It refers to the services provided by the organization after the sale of a product is done. After-sale
services are provided to customers to maintain loyalty and good relations with them. Sabyasachi
cares for his customers and provides them with various after-sale services.

1. Minor Customization: Sabyasachi offers various colours and combinations in their


dresses to the customers. If the dress is purchased from them, they provide the alteration
of that without any extra charges. Alteration can be done by increasing or decreasing the
arm length or adjust the depth of the neckline according to the customer.
 
2. Promote Release: Sabyasachi has recently launched his 2021 collection and whenever
they introduce the new collection an email regarding the same is sent to all his existing
customers. It makes the customer aware of the new launch and it shows that he prioritizes
his existing customers. He gives first-hand access to new products to his old customers
because he cares and values them and this helped him gain a loyal customer base. 
 
3. Professional Stylist: When a bride purchases a wedding lehenga from Sabyasachi along
with the dress a professional stylist helps the bride is wearing and carrying the lehenga
properly. His staff is personally trained by him and they take of the bride as she is going
to be promoted as a Sabyasachi bride.
 
4. Token of Love: In a show Band Baja Bride on NDTV Good Times, a bride is given a
token of love on her wedding day from Sabyasachi itself. Token of love contains a
congratulations letter and a gift for the bride. Gift can be anything from Sabyasachi
accessories like a watch, ring, or bracelet.

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Pricing Objective

1. As Sabyasachi has a diverse portfolio which includes Lehanga, sarees, suits, indo-western,
men’s wear, jewelry, footwear, bags, belts and each can be customized differently according
to requirement, preference, choice, occasion. The price ranges change according to a level of
customization ranging for each product as they cater to the different needs of each buyer.
2. The prices also vary according to each product type since they are varying into the diverse
product portfolio.

3. Starting from a minimum price range of INR 50,000 to a maximum of INR 25, 00,000 the
price bracket is huge and it varies according to the requirement of the customer as there is a
high level of customization for each kind of product.

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Value-Based Pricing

The value proposition is created by the company in the mind of the customer for creating a
willingness to pay. It is done to create an impression of product leadership and develop customer
intimacy. It increases the willingness to pay the customer. Delivering products as per the
expectations of its customers and delivering values also, gives a competitive advantage.

Sabyasachi promises to highly customize its product for its customers according to their
preferences and choices. Their material is handcrafted which is specially handmade for
customers by artisans. Sabyasachi has its workforce which dedicatedly works to fulfilling
customers’ expectations and carrying out the process in-house. Sabyasachi inspects their material
and uses exclusively gold for heavy work such as zardozi and zari for catering to special values.

The stake in Sabyasachi will add weight to ABFRL’s growing ethnic wear portfolio. It will
accelerate the company’s strategy to capture a large share of the ethnic wear market through a

41
comprehensive and attractive portfolio of brands, across key consumer segments, usage
occasions, and geographies. ABFRL expects to build a large ethnic wear business over the next
few years to complement its strong and diverse portfolio in the western wear segment of the
Indian apparel market.

ABFRL’s strong belief that over the next few years, ethnic wear is going to be an increasingly
important category as young and confident Indians rediscover their culture and heritage. The
Sabyasachi brand, through its emphasis on excellence in design and craftsmanship, has set new
benchmarks and captivated the imagination of the sophisticated global Indian consumer. Over
the next few years, ABFRL intends to craft a portfolio that addresses the entire gamut of ethnic
wear segments: value, premium, and luxury.

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Price Changes If Any

The price of Sabyasachi lehenga generally starts from Rs 2, 45,000 and the price range increases
up to Rs 18, 00,000. Usually, prices depend upon the type of customization which the customer
is looking for. Sabyasachi goes on sale which begins at the end of the wedding season

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Competitor’s Effect

In the ethnic apparel industry, the competitors have very less influence on one another as all the
designs are customized and based on the designer’s work. So, one brand designs and price do not
affect the price and designs of the other brand in the industry.

44
Distribution Channel

As the brand knows where its customers are and the kind of product they are selling. So, they
opted for the zero levels and one level channels as in the end no matter how great a designer you
are, you do not have a tool to assume what every customer wants without even meeting the
customer hence the range of the apparel comes in the picture when talking about zero levels the
range of the apparel is high as the customer is directly connected to the brand and even the brand
goes moon and back to fulfil the requirement of customers.

45
Talking about the one level channel, so with the brand getting in the limelight as a lot of movies
stars and celebs started wearing the apparel from Sabyasachi, the Indian population who worship
their Bollywood idols went crazy for the brand, sales skyrocketed and demand sprung from all
over the country even from the countries like London and USA and the brand saw the
opportunity and opened the tertiary stores so that they can cater the demand which is coming
from the fanatics of the Bollywood.

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Though the range of the apparel was limited in the one-level channel as intermediaries came in
between the brand and the customer but the demand did not go off the road as customers were
happy in the fact that they are getting to wear the brand that their idols wear.

Choosing the Channel

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Well, when someone is paying such a hefty amount, that person expects to receive product and
service accordingly. They all want to stand out from the crowd and to do so they turn towards
customization and Sabyasachi in itself is the high-end premium brand now imagine an outfit
made from scratch just to fit on your body and to compliment your unique personality and the
only way to achieve that customization plays a vital role and it can only achieve when the brand
is directly dealing with the consumer.

But when it comes to fulfilling the demand the brand takes the help of intermediaries so that they
can cover the different segment of customers but with that comes the other challenge and that
challenge is low flexibility in customization. Here, as the customer is not dealing or contacting
the brand directly and dealing with the intermediary so, customization can be done but not on the
bigger level. The sense of uniqueness seems to be grazed by the hands of intermediaries.

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Motivating the Channel

The strategy that is chosen by the brand to motivate its channel is promotions as Sabyasachi
promotes its product in a very trivial manner which is very limited to certain mediums. With the
touch of personal promotions and selling the channel partners enjoy promotions and
advertisements that can be better advertised by the brand.

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Retail Outlets

An outlet where royalty, culture, and fashion come together, Sabyasachi is the Rolls Royce of
Indian ethnic wear brands. So, the outlets are also expected to meet the expectation accordingly.
No one would be satisfied after buying a 10 lakh rupees outfit from a common-looking store, the
whole buying experience would be incomplete. A royal brand that generates around 300 crore
rupees from all kinds of sales cannot sell its outfit from a regular store as you can see in the
pictures that how its ambience is you can tell that the place got expensive apparel.

The brand got flagship stores generating an average of 40 crores rupees each. The brand does not
go to the customer, the customer comes to the brand and that is why they have outlets in only 4
cities as their targeted customer base lives in the major cities and knows what Sabyasachi is. The
four flagship stores are:

1. Sabyasachi, Kolkata

2. Sabyasachi Couture, New Delhi

3. Sabyasachi Couture, Mumbai

4. Sabyasachi, Hyderabad

The brand has gotten so big after 1999 that its apparel demand comes from both India and
overseas and as a result, they’ve got 12 tertiary stores all in major cities. The tertiary outlet list is
as follows:

1. 85 Lansdowne, Kolkata

2. Aza: Altamount, Mumbai

3. Aza: Juhu, Mumbai

4. Aza: Bandra, Mumbai

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5. Ensemble, Mumbai

6. Ensemble: Santacruz, Mumbai

7. Aza: South Ex, New Delhi

8. Aza: Defence, New Delhi

9. Ogaan India Pvt. Ltd., New Delhi

10. Ensemble Emporio, New Delhi

11. Evoluzione, Chennai

12. Evoluzione, Bengaluru

They have reached overseas as well with stores like:

1. Komal Anand, Pleasanton, CA, USA

2. Barkha Jayswal, Duluth Georgia, GA, USA

3. Aashni & Co., London, UK

4. Marni Kaur, Brentwood, Essex, UK

It is not the strongest or the most intelligent who will survive but those who can best at adapting
to the change. no brand can survive without grasping to the change and the brand knows this, and
they have used the omnichannel distribution as they have also entered the online mode where
one can buy the apparels without heading out of their home. They have partnered with the
following e-commerce website:

1. Carma

2. Kalki

3. Panache Haute Couture

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4. Pernia Pop-Up Shop

5. Aza Fashion

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Way Channel Members add Value

As the brand started to become famous after being highlighted by big movie stars the demand for
its apparel significantly increased and now the demand started coming from different parts of the
country so to facilitate the demand the brand went for tertiary stores and websites. These
intermediaries add value to the customer by providing: 

1. Luxury: It provides style, without lavish and expensive designs, and works without
going to the flagship stores as these stores are only in four cities.
2. Exclusivity: As Sabyasachi provides customized products that come along with unique
patterns, designs, and fit for each customer who is opting for customized design, and as
Sabyasachi is not available easily, these stores give a sense of uniqueness to the
customers when they purchase Sabyasachi.
3. Exquisite Experience: These stores provide a kind experience, which is not less than
visiting a Sabyasachi store. Their interior is as mesmerizing as it could be.
4. After Sales Service: They provide services like customer care, alteration, delivery, etc.
which creates a value and sense of reliability in customers.
5. Convenience: it is easy for the customer to purchase the product without going to the 4
cities where the flagship stores are located.

These intermediaries add value to the brand by increasing the commercialization of its product
and expanding the reach, with the after-sales services, exclusivity, and experience these brands
provide to the customers, they also add value to the brand and thus help in sustaining the brand
image and last but not the least, these intermediaries position the Sabyasachi products amongst
other brands in a manner that it adds to the brands status and image. 

53
Promotional Mix

Promotion mix is also known as marketing communication mix and it uses a combination of four
broad heads- advertising, sales promotion, personal selling, public relation (PR), and direct and
digital marketing. These broadheads are used to communicate with the customers and engage the
target group for the product. The five major promotional tools are as followed:

Advertisement: it is a non-personal form of communication made to a large audience, it


includes advertisements on television, print ads in the newspaper, or radio advertisements made
through identified sponsors.

Sales Promotion: this includes a short-term incentive attached to the product to promote sales,
examples can be discount offers or price adjustments like buy one get one offer. These sales
promotions are temporary to increase the sales of the product and attract new customers to try the
product or service.

Personal Selling: This is a more personal form of marketing communication; the salesperson
makes direct sales to the customer with the help of sales presentations, trade shows, and
incentive programs, etc. It is engaging and builds customer relationships at a personal level.

Public Relation: this includes building good relations with the public with the means of the
press release, sponsorship, events, and webpages. These platforms are used to deal with
unfavourable rumours, stories, or events.

Direct and Digital Marketing: this medium of communication is more targeted to individuals
as compared to other modes of communication. Direct marketing is more intimate and builds
good customer relations, it includes direct mails, online and social media, mobile marketing, etc.

Under our project, we analyzed how Sabyasachi uses a promotional mix to reach its customers.
The brand majorly uses two of the five broad categories under promotion mix i.e., Public
Relations and Direct and Digital marketing.

54
Public Relations:

This includes Press release, Sponsorships, Events, and their official webpage. ABFRL and
Sabyasachi made a press release announcing their partnership, this gave ABFRL a platform to
make its potential and existing customers aware of their new segment.

Under the sponsorship, Sabyasachi’s sponsorship is with NDTV good times a show named
Band Baja Bride, the show uses storytelling to create a more personal marketing promotion. A
huge audience is covered by this sponsorship and now ABFRL can use this existing audience to
promote their new entrance in the ethnic sector.

Events: Every fashion show Sabyasachi presents its garments will now have the name ABFRL
and that is a huge push to their promotion as a brand.

Direct and Digital Marketing:

Social Media, Sabyasachi is known for its social media presence, its major marketing is from its
social media platforms.

Email Marketing, Sabyasachi has a very selective customer segment currently, they perform
email marketing to their existing customers with every new collection launch.

Now ABFRL will expand Sabyasachi’s reach to a greater audience with its existing customer
base. And use other categories of promotion mix to increase the reach of acquired brands.

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Communication Objective

The communication objective of any organization is to make a customer buy their product.
Sabyasachi not only wants to sell his product to the customer but also wants them to remember
his products.

1. Iconic Brand: Sabyasachi always has envisioned creating India’s most iconic brand. He
wants customers not only to wear his dresses once but to remember them and wear them
again and again. He runs his business on some principles like honesty, empathy, and
sympathy towards his customers. And it has helped his brand to become iconic.
2. Indian Art and Artisans: He believes in preserving the heritage and culture of India and
creating awareness about the same. His objective is to make Indian culture more visible
to the people by putting his dresses on various actresses like Deepika, Priyanka, Anushka,
and many more. Many people get influence by these actresses as the main strategy is to
create demand for his ethnic products.
3. Making People Feel Comfortable: Sabyasachi's vision is to be more compassionate
towards his customers. If a person is size zero or twenty, they will get a dress to take back
with them. He not only designs a dress but an overall look for his customers. In a dress,
he tries to put a person’s dreams and hopes through his creativity.

56
Above the Line Promotion

Above the line, advertising is used when the focus is to reach a large audience. In the line,
organizations use mass media promotions like television, press, media release. Sabyasachi is a
brand which as such needs no promotion still, he uses various strategies to promote its products.

1. Celebrity Endorsement: Sabyasachi promotes his products with many Bollywood


actresses. According to the research, it has been proved that 70% of millennial consumers
are influenced by what the celebrities recommend. Also, a tweet from a celebrity
increases the purchase intent of consumers by 2.7 times.
2. Television: Via his show on NDTV Good Times, Band Baja Bride he influences his
customers by telling a story of a bride and her dream and tries to connect them
emotionally. He tries to use social and visual storytelling strategies to expand his
customer base. He has gained millions of followers because of his show and his brand
popularity.
3. Press Release: Sabyasachi spread the news about his new launch of a product via press
release. All his past collaboration has been announced by a press release which gives a
piece of information to the customers about the new upcoming products by him. In a
recent press release on January 27, 2021, he announces his collaboration with Aditya
Birla Fashion and Retail Limited.

57
Below the Line Promotion

Below the line, advertising is done to reach a targeted group of audience. Sabyasachi does
below-the-line advertising to directly connect with the customers and make relations with them.

1. Social Media: Sabyasachi has 4.8 million followers on his Instagram account. He uses
his accounts to his full capacity by uploading all his newly launched products on the
account and it contributes to his overall customer base by 30%.
2. Direct Email Marketing: It is a way to directly communicate with the customers.
Whenever Sabyasachi launches his new collection an email regarding the same is sent to
all his existing customers to promote the new collection.
3. Peer Recommendation: 30% of the people would like to purchase the product
recommended by their peers. Sabyasachi has used this tactic. Apart from celebrities, he
features his not-so-famous clients too, and further these clients proudly share their
experience with their known people. By this, he promotes his brand by user-generated
content which influences the purchase decisions of other people.
4. Collaborations: Sabyasachi has collaborated with many international brands like with
Swedish clothing brand H&M in 2020, with Christian Louboutin in 2019 for the
collection of Kashgar Bazaar which comprises shoes and handbags, and with Pottery
Barn back in 2016 and Asian Paints to launch a range of home furnishings.

58
Branding Strategies

The brand leverages Indian culture and tradition that gets reflected in his timeless pieces. There
are 5 major branding strategies of Sabyasachi.

1. Old is Gold: The unique positioning of the brand captures the tradition by bringing
exclusivity of its rich history and culture and bringing it to mainstream modern society.
The brand manifests a rich blend of individuality and sensitivity through its positioning
and marketing strategies.

2. Storytelling: The designer himself is a master storyteller and this is how he connects
with the audience. As per a study, 92% of the consumers appeal to advertisements that
feel like a story. Sabyasachi uses visual and social storytelling strategies on social media
to his advantage. In this era of social media clutter, Sabyasachi stands out due to his
engaging content with millions of followers at his disposal. By being a part of the very
popular show, Band Baja Bride on “NDTV Goodtimes” Sabyasachi had transformed
women into beautiful Sabyasachi brides. The show portrayed the aspiration of the girl
next door and making her dreams come true. The show expanded the customer base and
successfully made Sabyasachi popular among generations y and z.
3. Social Media: The brand uses its social media accounts to the full capacity. Highlighting
the vibrant Indian culture which contributes to increasing the consumer base by 30%.
Sabyasachi launches his beautiful collections across social media platforms through
celebrity endorsements. Famous Bollywood actresses like Deepika Padukone and
Priyanka Chopra with approximately 50 million followers on Instagram catalyze the
impact of social media marketing for the brand. Around 70% of the millennial consumers
are influenced by their favorite celebrities and according to research, a tweet from a
celebrity increases the purchase intent by 2.7x as more than 50% of the Twitter users
follow and engage with the accounts of their favorite celebrities. The brand has proven
this fact time and again as the celebs and their stylists act as Sabyasachi Brand
evangelists.

59
Sabyasachi also features real brides, who become brand evangelists as well. They proudly
share and retweet and gain social media infamy while getting the brand a fair share of
publicity among the masses.
4. Experiential Retailing: The elaborated palace-like decor of their flagship stores makes
you feel like going back in time. The fashion consultants help the bride and her entourage
to find the perfect dress for her big day. The antique decor feels like royalty. The store’s
least interaction with technologies like virtual and augmented reality has further
enhanced the timeless aesthetics.
5. Beyond the product: Sabyasachi understands the importance and significance of Indian
Bridal attire and does not get restricted only to the outfit. Rather the brand determines to
create an aura and give the bride a complete makeover so she can flatter the crowd being
a Sabyasachi bride. The brand proudly features these real brides on its Instagram page.

60
Budgeting technique

Sabyasachi follows the value proposition technique for budgeting. It means everything that is
included in the budget provides some value to the business. Sabyasachi designs his budget in
such a way that every particular provides some value to the business. This technique is very
helpful in reducing unwanted expenses and the increased budget efficiency.

61
Budget allocation

Allocation of the budgeted revenues and expenses has done based on the percentage of sale
method. This method is very efficient as it includes the advertising expenses also in the
allocation.

Budgeted Revenue: -

Particulars Budgeted amount


Turnover Rs. 292 crores
Revenue More than Rs. 100 crores

Sabyasachi has a turnover of Rs. 292 crores in the year. He maintains the average price of one
lehenga Rs. 4 lakh (sometimes his lehengas skirt up to 15- 18 lakhs also). Sabyasachi makes
9000 lehengas every year by maintaining the average price. Thus, the turnover of Sabyasachi is
very high.

In 2014 Sabyasachi becomes the first-ever Indian designer to earn a revenue of Rs. 100 crores in
a year. Since then Sabyasachi aims to achieve the target of more than Rs. 100 crores of revenue.

Budgeted Expenses: -

Particulars Information
Employee expenses 3900 full-time employees
Channels 20 stores including 4 flagship stores
Communication More in Atl than Btl
Materials(COGS) High premium materials

1. Employee expenses: - Sabyasachi has 3900 full-time workers and 37000 contractors. He
assigned a team of 40- 50 members in designing a single lehenga.
2. Channels: - Sabyasachi has 20 stores including 4 major flagship stores. All the major
expense in done on these 4 flagship stores.

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3. Communication: -Sabyasachi spends more in ATL than BTL because Atl includes
Celebrity endorsement and Band Baja Bride which require a very high investment than
BTL.
4. Materials (COGS): - Sabyasachi uses high-quality materials like banarsi silk which is
very expensive. Thus, this also affects the cost of the design.

Challenges

63
Sabyasachi as a premium brand follows all the necessary plans of action, but there are some
challenges for the marketing plan.

1. Commercialization: Since ‘ABFRL in Ethnic Wear’ comes in the introduction stage in


the Product Life Cycle while ‘Sabyasachi’ comes in the maturity stage. With the
acquisition, it will be challenging for ABFRL to commercialize the ethnic wear of
Sabyasachi.
2. Promotional Strategies: Although Sabyasachi follows its five secrets of branding
strategies, promotional, and communication strategies but because of its acquisitions they
have to introduce some promotional strategies to maintain their brand reputation as well
as increasing customer base through ABFRL.
3. Place: Sabyasachi has very limited flagship stores which limit its reach to many
customers. So they need to tap into new cities to increase the customer base and make it
more approachable.

Recommendation

64
There are few recommendations, to increase the customer base and the reach of Sabyasachi:

1. Channel Design: Sabyasachi has zero and one-level channel design which makes it
challenges for customers to approach. To increase their customer base, they need to
introduce some new distribution channels by tapping into more cities.
2. Pricing: As Sabyasachi is a premium brand and majorly customizes the products, which
increases its pricing. So they should have some products in the apparels sections too
which medium pricing level, to acquire with ABFRL more successful.

References

Grant, M. (2021). Investopedia. Retrieved from investopedia.com:


https://www.investopedia.com/terms/s/swot.asp

65
Prasad , R. K. (n.d.). Silicon India. Retrieved from blogs.siliconindia.com:
https://blogs.siliconindia.com/rohitkantprasad/SWOT_analysis_of_Indian_Apparel_Textile_Indu
stry-bid-nMHxN50t11848596.html

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