1

College Name: KJ Somaiya Institute of Management Studies &

Research (KJ SIMSR), Mumbai
Team Name: SIMSR Synergy
Team Member: Anjali Verma, Sitharthan K, Sruthi Purushothaman 1
 SITUATIONAL ANALYSIS 2

WHAT DOES CUSTOMER EXPECT & WHAT IT MEANS TO ALLEN SOLLY CVP?

CUSTOMER EXPECTATION – APPAREL INDUSTRY

PRIMARY SURVEY FINDINGS – ALLEN SOLLY

- Target Audience = WORKING PROFESSIONALS RESIDING IN

Instant
Convenience METROS (AGE = 25 TO 40 YEARS) & Target Size = 36
Gratification
- Around 70% Respondents = Unawareness especially about Sub
Brands – Solly Jeans & Allen Solly Juniors
- Around 58% Respondents = Haven’t Purchased/Never Heard of
Trendy Personalised the Brand
Apparels Shopping - 50% Respondents = Never visited Allen Solly Exclusive Stores
- 40% Respondents = Demand for more Options to choose

More
Elevated FUNDAMENTAL PROBLEMS – ALLEN SOLLY
Options to
Engagement
Compare
- Smart Casuals Positioning Stolen by other Brands
- Lesser Product Differentiation
- Lesser number of Options available in Existing Range
Connection Experiential (Online/OfflIne)
to Product Shopping - Lack of Brand/Sub Brand/Stand Alone Brand Awareness
- Lesser number of Allen Solly Exclusive Stores
 PRODUCT DIFFERENTIATION 3

FOCUS ON WOMENWEAR TO CREATE A DIFFERENTIATING FACTOR

“SMART CASUALS” POSITIONING REPLICATED BY OTHER SIMILAR BRANDS -

WOMENSWEAR CAN BE TAPPED EXTENSIVELY AS ITS GROWING FASTER THAN OTHER CATEGORIES

SOLLY FRIDAY LOOK SOLLY FRIDAY WARDROBE

ACCESSORIES
Watches
Bags
Footwear
Belts
Sunglasses
Jewelleries (Smart Jewellery - Friday look)
Perfumes (Men & Women)

CLOTHING CLOTHING
Patterns COMPLEMENTS
Colour Scarf
Fabrics (Denims & Non-Denims) Mufflers
Style Socks
Fitting Shrugs

POSITIONING WITH “SOLLY” SUB BRAND IS A CALCUALTED RISK INSTEAD OF CHANGING “SMART CASUAL” POSITIONING ALTOGETHER
 MARKETING CAMPAIGN 4

PROMOTION OF WOMENSWEAR & FAMILY CLOTHING

AWARENESS, BRAND PROPOSITION & RECALL VALUE CAN BE IMPROVED VIA MARKETING CAMPAIGN FOCUSED ON
CORE BRAND/SUB-BRAND/STAND ALONE BRAND

CAMPAIGN DETAILS #HER FRIDAY #BE SOLLY FAMILY

Target Segment Women & Men Family (Men, Women, Kids)
Product Category Semi Formal, Casual, Jeans, Semi Formal, Casual, Jeans, Kidswear,
Accessories Accessories
Sales Channel EBOs, MBOs, Departmental Stores (SIS), Online (Mobile App/Allen Solly
Website/ECommerce – Myntra, Flipkart etc)
Promotional Channel Print, TV, Social Media (FB/Instagram/Pinterest/Twitter/Blogs)
Promotional Strategies Offering the Innovative Product Range
for Women & Discount on shopping Shopping Guide for Entire family &
Friday for Women Clothing Discounts on complete family shopping
Additional Add-Ons Coupons, Goodies (Complimentary
Gifts) & Exclusive Benefits on Loyalty Coupons, Added Benefits &
card for Women Exclusive Benefits on Loyalty Card

#HER FRIDAY #BE SOLLY

Shop coz its your FAMILY
Friday! Family which
Shop with her coz
 EXPANSION OF EBO IN TIER II CITIES 5

OFFLINE STORE STILL MATTERS

THOUGH METRO REAMINS IMPORTANT FOR ALLEN SOLLY, TIER II WILL BE THE GROWTH FRONTIER DUE TO RISE IN INCOME,
CONSUMPTION AND INFRASTRUTURE INVESTMENT

18 Tier II Cities List

- Faridabad

#226 #18 100% ₹45L

- Pune
- Patna
- Kochi
- Hyderabad
- Indore
Allen Solly Exclusive Brand Tier II Cities can be focused Growth projection between Investment Required for an - Ludhiana
Outlets (EBOs) - India for expansion 2015-2030 EBO – Tier II City - Vizag
- Nagpur
Allen Solly has the least These cities demonstrate the Especially Faridabad, Pune & Generally, it takes around 45 - Kannur
number of EBOs greatest potential for Allen Patna will grow in terms of Lakhs to open an EBO in a - Jaipur
comparatively even to its Solly as the Incomes of the Middle Class Income. typical Tier II City. More focus - Surat
other 3 co-brands – Peter middle class & the richest Ahmedabad, Nasik, Patna & should be given to its sub- - Vadodara
England (669), Van Heusen households are above Nagpur in incomes of Richest brands – Womenswear, - Dhanbad
(278) & Louis Philippe (277) National Average Households Kidswear, Jeans etc., - Bhopal
- Thrissur
- Ahmedabad
- Nasik
(Source: Euromonitor)

EBO IMPROVES THE VISIBILITY FACTOR THAN OTHER OFFLINE CHANNELS & MAKE THE BRAND REGISTER IN CUSTOMER’S MIND
 COST CUT TING STRATEGY 6

COST OPTIMIZATION IN LOW SPEND CATEGORIES

IN COST CUTTING, RETAILERS TEND TO FOCUS MORE ON LARGE COST BUCKETS & IGNORE LOW-SPEND SECTIONS
LIKE TRIM ITEMS, SHIPMENT PACKAGING & OTHER CATEGORIES

SHIPMENT PACKAGING
- Another Low Spend Category includes Shipment Packaging Items like APPAREL PRODCUTION COST SEGGREGATION
BACK SUPPORT, COLLAR SUPPORT, TISSUE PAPER OR CLIPS
- These items are usually discarded at the stores
- Minimizing these components in a minimal way can cut cost without
affecting Efficient Delivery

TRIM CATEGORY
- Trim Category constitute of around 12% of the Total Production Cost
- Cost Cutting Process should begin with questioning every trim items
in terms of its value to its customer
- Example = UNBRANDED BUTTON instead of Branded would suffice as
customers doesn’t consider in their purchasing decision
- E-AUCTIONS = Effective way for cost cutting in Trim categories

SUPPLIER NEGOTIATION
(55 - 60%) (12 - 15%)
- Also, individual item’s cost GETS BUNDLED in garment’s overall cost (15 - 20%)
(3 - 5%)
- Unbundle Hidden Costs by DISSECTING COSTS TO GRANULAR LEVEL
- Negotiation with the Supplier should be made at a base component Till this points is the
level instead of paying margin at % of overall cost Actual Production Cost

TOTAL COST CUTTING = MINIMUM AROUND 8% (INCLUDING TRANSPORT & LOGISTICS COST REDUCTION POST-GST)
 CUSTOMER LOYALTY PROGRAMS 7

IMPROVING THE CUSTOMER RETENTION & AWARENESS FOR ALLEN SOLLY

MONEY SPENT ON LOYALTY PROGRAM CAN BE BACKED BY THE COST CUTTING STRATEGY –
TO AVOID REPLICATION RISK, GIVE MORE PERSONALISED REWARD REDEMPTION

OTHER WAYS OF POINTS REDEMPTION APART OTHER WAYS TO EARN LOYALTY POINTS APART
FROM TRADITIONAL DISCOUNTS FROM SHOPPING

TYPE I
₹ X Spent = Y Points Earned = Free Shipping
This can be availed for Online Purchase via Allen 5% OF POINTS FOR REPEATED SHARE PURCHASES VIA
So l l y We bs i te PURCHASE FROM REFERRED SOCIAL MEDIA AT POS
FRIEND FOR INSTANT DISCOUNT

TYPE II
₹ X Spent = Y Points Earned =
Access to Exclusive Products
This provides access to more Fashionable Clothes REVIEW PRODUCTS ON REGISTER & PLACE YOUR FIRST
SOCIAL MEDIA ORDER ON ALLEN SOLLY WEBSITE
which are not available for Regular Buyers

TYPE III
₹ X Purchased = Y Points Earned =
Redeem at Partner Store REFER FRIENDS TO REGISTER &
C o l l a b o r a t e w i t h o t h e r 3 C o - B r a n d s ( L P, V H , P E ) t o BONUS POINTS – EXPLORE MORE MAKE FIRST ORDER – REFER NOW
provide customer with access to earning /
redeeming on their stores

THIS PROGRAM CAN HELP IN CREATING AWARENESS & VISIBILITY ABOUT ALL CATEGORIES UNDER SOLLY BRAND VIA SOCIAL MEDIA
 CHANNEL STRATEGY – BRICK & MORTAR 8

PROVIDING PERSONALISED SHOPPING EXPERIENCE USING BIG DATA & OTHER TECH
I M P R OV E T H E B U Y I N G E X P E R I E N C E

BIG DATA !!!

THE NEXT BIG THING COST – BENEFIT ANALYSIS (BIG DATA)
- 1 Gigabyte Cost = Approximately $0.06
- Infrastructure & Software Cost = $180,000 (For
TRACKING & ANALYSING Data = 3TB/Month)
SHOPPER’S BEHAVIOUR - Data Engineers Salary = $800,000/Annum
- Nucleus Research recently reported that every
dollar spent on analytics returned $13.01
PREDICTING SHOPPER’S
FUTURE PERFORMANCE

CUSTOMER RELATIONSHIP
ENHANCE & SOLIDIFY
OTHER TECHNOLOGIES TO PROVIDE PRERSONALISED
SHOPPINGS
- Mannequins at shops having cameras
- Surveillance Cameras can be used to detect
frequent customers
- Mobile Devices - Send recommendations to the
customer on the basis of what he might need
OFFER ENHANCED & PERSONALISED - Video from the store camera can give us insights
USER EXPERIENCE on customer demographics, health, mood and
buying habits
 CHANNEL STRATEGY – BRICK & MORTAR/M-COMMERCE 9

EXPERIENTIAL SHOPPING - IMPROVING THE CUSTOMER EXPERIENCE

I M P R OV E T H E B U Y I N G E X P E R I E N C E

VIRTUAL
VIRTUAL DRESSING
DRESSING INTERACTIVE
INTERACTIVE DISPLAY
DISPLAY M-COMMERCE
M-COMMERCE
-- Real
-- Allen
Allen Solly
Solly Mobile
Mobile App
App should
should
Real Time
Time Tracking
Tracking of
of clothes
clothes that
that -- Added
Added encouragement
encouragement to
to try
try
be
be introduced
introduced
shoppers
shoppers try
try out
out &
& out
out the
the touch
touch screen
screen -- Helps
Helps building
building Customer
Customer
Loyalty
Loyalty
Purchase/Reject
Purchase/Reject technology
technology
-- 68%
68% ofof Search
Search for
for new
new clothes
clothes
-- Make
Make Entire
Entire Shopping
Shopping aa -- With
With aa simple
simple touch,
touch, customers
customers happens
happens first
first on
on Smartphones
Smartphones
-- Smartphone
Smartphone usersusers are
are more
more
memorable
memorable experience
experience for
for can
can scroll
scroll through
through catalog
catalog of
of
likely
likely to
to share
share images
images of
of their
their
Customer
Customer items
items in
in store,
store, view
view Sales
Sales purchases
purchases on on social
social media
media sites
sites
-- Better
Better Recall
Recall and
and Customer
Customer Prices,
Prices, opt-into
opt-into Promotions,
Promotions, COMPETITOR
COMPETITOR ANALYSIS
ANALYSIS ONON
MOBILE
MOBILE APPS
APPS
Retention
Retention know
know about
about special
special events,
events, &
&
H&M
H&M == 10 10 Million
Million Users
Users
-- Better
Better Store
Store Management
Management more
more Zara
Zara == 10
10 Million
Million Users
Users
 CHANNEL STRATEGY - ECOMMERCE 10

ECOMMERCE – SHOPPER’S PREFFERED DESTINATION

E-COMMERCE IS ONE OF THE MOST EMERGING CHANNEL WHICH NEEDS A BETTER OUTLOOK
IN TERMS OF ALLEN SOLLY PRODUCT & PROMOTION

ATTRIBUTES AMAZON MYNTRA THE STRATEGIES TO BE IMPLEMENTED ON THE

Availability of Medium –Low (Approx Low (1277 products) BASIS OF OBSERVATION
Overall Products 3422 products)

Variety &
Collections Low Low
Medium Low
Visibility (Typically 1 out of 48 (Typically 1 out of 400
Products of casual shirts) Products of Casual shirts)
Out of all products
Other Findings T-shirt (Polo) better Out of Stock Items
Visibility P R O D U C T A V A I L A B I LT Y PRODUCT VISIBILITY
- E-commerce Platform customized
Pushing Myntra In-House - Increase in Product variety
Preferential visibility to Brands (Roadster, Wrogn, Promotion (What sells?/Where?)
Preferential paid Brands & Kook N Keech etc) & - Better Track of Out of Stock
- Analytics of Products
Products International Brands International Brands items
(Tommy Hilfiger, (Tommy Hilfiger, (Pattern/Fabric/Style) selling most
USPA, UCB) USPA, UCB) - Providing new or fresh of platforms
trends as a part of products
- Coming up with promotional offers
- Variety in Women clothing as around the festive session