Topic – Readymade Garments

By:-Name Roll No.Devika Saigal 11Bhumit Dedhia 54Ankita Modi 5Kriti Kapur 20Nehil Patel 41Karan Bachani 46

Product

1. Branded Clothes• United Colors of Benetton• Mango

2. Unbranded Clothes

HISTORY OF UCB

• Benetton Group is a global fashion brand based in Treviso, Italy. The name comes from the Benetton family who founded the company in 1965. Benetton Group is listed in Milan. Benetton has a network of around 6,000 stores in 120 countries. The stores are managed by independent partners and generate a turnover of over €2 billion per year.

Early years• In 1965, the entity known as the "Benetton Group" is formed. • In 1966, the Benettons opened their first store in Belluno and

three years after in Paris.

PRODUCTS• The company's core business remains their clothing lines. Casual

clothing is marketed as the "United Colors of Benetton". Their products include womenswear, menswear, childrenswear and innerrwear and they have expanded into toiletries, perfumes, and items for the home such as kitchen accessories and baby products.

• By the year 2000, the group was selling 150 million garments worldwide, annually in 6,200 stores and many countries.

Questionnaire1) How often do you shop? 1month 3months 6months 1year or more

2) Generally, between what price range do you buy your clothes? Below 500 500-1500 1500-3000 above 3000 3) What kind of clothes do you usually buy? Branded Unbranded Both

4) If branded, which brands do you generally buy? Mango Calvin Klein Guess FCUK UCB

Bossini If others (please specify)

5) Any specific reason for your answer? Design of the garment Quality Complements your style Comfort Availability at affordable prices Fit of the garment Easy availability at retail store (closer to home) If others (please specify)

6) Does the choice of your friends or relatives influence the choice of your brand? Yes No

7) Do you fall for the ads given in newspapers/magazines/television while making your decision to buy? Yes No If yes, reasons: My favourite celebrity endorses the brand I like the punch line of the brand Others (please specify)

8) If you have more money in hand to buy clothes, would you opt for a higher range brand? Yes No

9) If the price of your current brand increases by 20%, then will your shift your loyalties to some other brand? Yes No a) If the price of current brand decreases by 20% then would you rejoice and buy more? Yes No

b) Would you rate low price with low quality? Yes No

c) Would it affect the brand image in your eyes? Yes No If others (please specify)

below 15 16- 26 27- 35 36- 46 46- 60 Above 60

0

5

10

15

20

25

30

35

40

45

3

43

17

26

9

2

Frequency

Age group

The amount people spend on shopping

Below 500500 - 1500

1500 - 3000above 3000

0

10

20

30

40

50

60

8

52

26

14

Frequency

FREQUENCY OF SHOPPING

1 month 3 months 6 months 1 year or more

0

5

10

15

20

25

30

35

40

27

36

23

14frequency

Time

Yes No0

10

20

30

40

50

60

43

57

Frequency

Low Price & Low Quality

Kind of Clothes

Branded Unbranded Both0

10

20

30

40

50

60

70

28

8

64

Frequency

Brand Preference

Mango UCB0

5

10

15

20

25

30

20

28

Frequency

The amount of people who will buy more of their current brand with a fall in the price

YesNo

0

10

20

30

40

50

60

70

Yes, 66

No, 34

Frequency

The amount of people who will switch to another brand with 20% increase in price of their current brand

YesNo

44

45

46

47

48

49

50

51

52

53

Yes; 53

No; 47

Frequency

YesNo

0

10

20

30

40

50

60

70 38

62

Frequency

The amount of people who fall for celebrity endorsements

Reasons for choosing a brand

Design

Quality

Complements style

Comfort

availability

Easy availablity at retail stores

Fit of garment

0 5 10 15 20 25 30 35 40 45

31

42

29

45

16

15

24

Frequency

Choice influenced by friends

Yes No0

10

20

30

40

50

60

43

57

Frequency

Product ComparisonUNBRANDED CLOTHES BRANDED CLOTHES

Generally low range clothes Generally high range clothes

Avail in stores as well as on streets Available in stores only

Mainly purchased by lower and middle class people

Mainly purchased by middle and higher class people

Cannot be differentiated since most unbranded clothes are similar.

Each brand can be differentiated on the basis of style and quality.

Price Elasticity of Demand • Degree of Responsiveness of quantity demanded to the change in price. • It is common that all the commodities respond to a change in the price of a commodity. The

responsiveness is not same in case of all commodities. Some are more responsive, while certain others are less responsive. Depending on the degree of responsiveness, there are five categories of elasticity of demand.

• They are:-Unitary Elastic Demand.(E=1)Perfectly Elastic Demand.(E=A)Perfectly Inelastic Demand.(E=0)Relatively Elastic Demand.(E>1)Relatively Inelastic Demand.(E<1) • Conclusion-The price elasticity of demand for clothes is Relatively Elastic (E>1). As the price

increases by 20 % the demand falls by almost 50%, which is more than proportionate change.

An increase in price by 400 leads to a fall in demand by 48%

Price Demand

2000 100

2400 53

2800 6

2000 2400 28000

20

40

60

80

100

120

100

53

6

Price

Demand

Difficulties during the survey• Responsiveness.People are not responsive to brands not heard...

• Knowledge.Insufficient knowledge about brands.

• Multiple Choice.Due to availability of many products people don’t stick to a particular brand.

• Age BarrierOlder people have no idea of brands.

• Lack of seriousnessPeople take the survey very lightly

Conclusions

From the survey conducted we can draw the following conclusions:• Age Group:Maximum people surveyed were in the age group of 16-26 years, i.e., the youth formed a significant part

of the survey• Price Range:Mostly people opted for a moderate price range of Rs.500-1500• Reasons for Choosing a particular Brand:Most people admitted to the fact that comfort and quality are key factors influencing their buying

decision• Choice influenced by Friends/Relatives:The choice of their friends and relatives do not influence the buying decision of most of the surveyors• Choice influenced by Advertisements:The buying decision of most of the people was not influenced by T.V or newspaper advertisements.

However, lucrative options such as “Sales” and “Discount” offered by marketers influence the buying decision of the surveyors to some extent

• Type of clothing:Most people surveyed confessed that while going for shopping they go for both Branded and Unbranded

clothes and do not single out any one of them.• Shopping Frequency:A major proportion of the surveyors said that they go for shopping once in 3 months

Sales ForecastYears Sales (Cr)

2005 – 06 4.8

2006 – 07 5.5

2007 – 08 6

2008 – 09 6.2

Expected Sales

2009 – 10 6.8

2010 – 11 7.27

2011 – 12 7.74 2005 - 06

2006 -07

2007 - 08

2008 - 09

2009 - 10

2010 - 11

2011 - 12

0

1

2

3

4

5

6

7

8

9

4.85.5

6 6.26.8

7.277.74

Years

Sales

Demand Forecasting• Demand Forecasting is an estimation of the product for the future period.• FEATURES :- 1) Short and long-run forecast. 2) Plant, industry, national. 3) Product & area-wise. 4) Consideration to product and market specific factors.

Method of demand forecasting• Time series analysis