Analysis of Branded Apparel Franchisees

TOWARDS

AFINALPROJECTREPORT
SUBMITTEDTO

SRMSCHOOLOFMANAGEMENT
Inpartialfulfilmentoftherequirementfortheawardofthedegreeof MASTEROFBUSINESSADMINISTRATION SUBMITTEDBY SUNILKUMAR Reg.No.35080626 SUBMITTEDTO Mrs.P.S.RAJESWARI FACULTYOFENGINEERINGANDTECHNOLOGY SRMUNIVERSITY

BONAFIDE CERTIFICATE
Certified that this project titled Analysis of Branded Apparel

Franchisees is the bonafide work of SUNIL KUMAR (Reg. no:-35080626) who carried out the research under my supervision. Certified further, that to the best of my knowledge the work reported herein does not from part of any other project or dissertation on the basis of which a degree or award was conferred on an earlier occasion on this or any other candidate.

Signature of Guide

Signature of HOD

Signature of External Examiner:

Abstract
The project is about Analysis of Branded Apparel Franchisees of Indus Fila in near future as a part of expansion plan being adopted by the company. The company is targeting at different market places in term of its number of stores which are presently 50. This project report suggests prospective locations and site where john hill can open up its new stores. Area covered is Bangalore, Chennai and Hyderabad. The BSE-listed firm currently has 50 outlets spread over 40,000 sq. ft across India. It plans to take the store count to 130 by the end of the current financial. All the new 500 stores will account for 4, 00,000 sq. ft. It also includes details about the consumer who come at john hill for shopping. A survey was conducted to develop market of john hill. A questionnaire has been drafted for the same, to establish new stores at suitable market place and to understand the actual market condition of the retail outlets, Which can be further utilized by the company to gain a competitive edge over the competitors. On the basis of analysis done and key finding, Bangalore, Hyderabad and Chennai region was scanned and SWOT analysis of each and every corner was done to find the prospective location where john hill can open its future stores. Property rates of the selected locations were found out and the most critical location was selected. Similar kinds of research were done in various parts of the country by different teams to support john hill retail expansion plan. Apparel exporters are not interested in the dollar alone and are slowly seeing profits with the rupee. As export orders become thin and Indian retail matures, exporters are tapping the potential in the domestic market. Indus Fila is also planning to boost the capacity of its garment facility at Peenya, Bangalore district, and set up a new garment manufacturing unit at Hindupur, Andhra Pradesh. The company is increasing garment manufacturing capacity from 9,000 pieces per day to 18,000 pieces per day in phase-I and from 18,000 pieces to 30,000 pieces per day in phase-II with

a capital investment of Rs 45 crore. The project will be completed by April 2008.Indus Fila Ltd, a part of the Indus Mandhana Group, has diverse interests in textiles sourcing and manufacturing spanning a period of more than five decades. The group has invested in vertically integrated units manufacturing fabrics and apparel to cater to the apparel market worldwide.

ACKNOWLEDGEMENT

I owe everything in my life to other. A person single headed can achieve nothing. In my attempt to do the project many people have graciously extended their guidance, advice and criticism to improve my work. I wish to express my heartiest thanks to our Dean Dr.Jayashree Suresh for providing infinite facilities, and giving me an opportunity to does this project work successfully. I express my sincere thanks to my project internal guide Mrs. P. S. RAJESWARI for his guidance and valuable suggestions, which made this project, a successful one. I express my gratitude to JOHN HILL for providing me the opportunity to undertake this project in their esteemed organization. My gratitude also extends to the staffs of the department whose words of encouragement kept the spirits high throughout the course of my project.

LIST OF CONTENTS Sl. No. TITLE NAME Page No.

CHAPTER 1

1.1 1.2 1.3 1.4 1.5

Introduction Statement of the problem Objectives of the study Scope of the Study Limitation Company profile Product range

1 2 3 3 4 5 21 25 25 25 26 28 29 50 52 53 54 55

CHAPTER 2

2.1 2.2

CHAPTER 3

Research Methodology 3.1 Research Design 3.2 Data Sources

3.3 Sampling 3.4 Statistical Tools CHAPTER 4 CHAPTER 5 4.1 5.1 5.2 5.3 Analysis and interpretation Findings Suggestion Conclusion Bibliography Questionnaire

CHAPTER 1 1.1 INTRODUCTION

Fashions define the notations of taste in a given cultural environment. The term has particular reference to prevailing in matters of dresses and department, but it is broad enough to include also changing modes in literature and arts in moral and social attitudes and even religious science and the market for stock and bonds. Marketers have understood this newly found eagerness in men to dress, to look good and are doing everything to look smart, this is being reflected. In the wide array of choices that todays men has before them, spanning inner wear, garments and other related fashion accessories like shoes, belts, ties, wallets each trying to woo them with their own marketing gimmicks. In jeans the top brands are Koutons, Flying machine, Peter England, cotton county etc., who are offering innumerable and high quality standard range of clothing and accessories. Todays garments manufacturers has an answer to the fashionable jeans with the great brands. Indian male. The fashion has no rules. rules. people changes regularly. Actually it does not have any permanent The tastes and preferences of John hill has complete male vanity to pamper the

The fashion changes with times.

People get bored of wearing same fashions,

design and colors. The company, which has continuous creativity, can only survive in todays competitive garment industry. Fashion is nothing but the covering of ugliness. All the segments of the society want to have new fashions and designs every day. The company who can identifies the needs; wants and tastes & preferences of the customers can make good profits. As

there is a lot of demand for fashions in all corners of the world, fashion can never die. Fashion is for all men from formal wear, executive wear, party wear, sportswear and casual wear. field. Todays Indian males are very fortunate for having a wide array of choices available to fulfill their fashions needs. The clothing and other fashion accessories of international quality standards are available to them. Each and every product they need for fashion from shirts, trousers, blazers, suits, ties, spectacles and watches. All the items, which make a man to look good, can be available to them as of international quality standards by paying lesser than the international products price. Thus, fashion can be created in any

1.2 STATEMENT OF THE PROBLEM

When we start doing anything new then it is very necessary to understand the environment in which we are going to do that thing. There is always equal probability of success and failure. But we again aware about the thing that without risk there is no reward. Therefore it is necessary to take the risk in life to become successful but taking risk blindly is completely foolish, we need to analyze the positive and negative aspect of every planning before proceeding. Here main problem in front of me and also to VIR retail is to understand the market potential. VIR retail (Indus Filla) wants to open its franchisees in the locality of Chennai therefore it is very necessary to understand the market and its orientation, that it will be beneficial or not to open a new franchisee of a new brand at the place where already well established brands are doing there business.

1.3 OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVE

Analysis of Branded Apparel Franchisees.

SECONDARY OBJECTIVE

To examine the market condition of few retailers in Nungambakkam (Chennai). To find the scope for the new retailers or franchisee. To understand the customer frequency and the demand of the apparels. To bring out the various problems faced by the retailers.
To know the market potentiality of garment products.

To judge the mentality of the franchisees owners. To compare john hill brands with its competitors in terms of sales figure. Provide competitive advantage to the John Hill in the form of valuable information before opening the retail outlet.

1.4 SCOPE OF THE STUDY

The research is conducted in Nungambakkam (Chennai). This study will help the company to know the present market potential. The study also helps to know the product potentiality in the market This study will help the company to take appropriate decision related to opening new outlets as per the customers need.

1.5 LIMITATIONS OF THE STUDY

1. The study is limited only in selected places of Chennai and is not applicable to any other geographical part of the country. 2. The report is strictly based on the opinion of the franchisee. 3. Only popular brands of products have been considered. 4. The information collected and analyzed are limited which may not fully represent the image of study. 5. The study is for limited period of two months and opinions may change after time so there may be difference in opinion in future.

CHAPTER 2
2.1 COMPANY PROFILE

INDUSFILALIMITED

Type Industry Brand Founded

Indianexporterandimporter Textiles Johnhill&Misshill 1999

Headquarters Bangalore,India Keypeople Products NitinMandhanaChairman&ManagingDirector Menswear,designerswear,jeans,mensformal,mens casual,trousers,fabrics. www.johnhill.in,www.indusfila.com

Websites

INTRODUCTION ABOUT INDUS FILA LIMITED

The spectacular growth rate of Indias economy is well noticed. Asias fourth largest economy has been growing at an average of over 8% in the last three years and economists predict that it will continue to do so at least till 2010. Increasing organized retail penetration with global giants entering the Indian markets, favourable demographics and rising income levels are driving the domestic textile and apparel consumption demand. Export growth has remained at high levels post quotas and is all set to sky rocket hence forward. Textile manufacturer and apparel exporter Indus Fila, a part of Indus Mandhana Enterprise, which entered the domestic retail market early this year, is planning to ramp up its retail operation. The firm will set up around 500 outlets under John Hill brand across India over the next two years. Indus Fila vice-chairman & MD Nitin Mandhana said, We have not seen any impact on our business since the launch as we are discounted brand. Retailing is a seasonal business and we will see an uptick during festive and wedding seasons, he added. Around 90% of the stores will be under the franchisee model, while the remaining 10% will be owned and operated by the company. Indus Filas investment in the retail venture will be around Rs 25 crore. The BSE-listed firm currently has 50 outlets spread over 40,000 sq ft across India. It plans to take the store count to 130 by the end of the current financial. All the new 500 stores will account for 4, 00,000 sq ft. The new stores will be rolled out in tier II and III towns. It will retail a range of western wear for men and women under the brand name John Hill within the price range of Rs 100-750.

It is also is in the process of setting up 1, 00,000 1, 50,000 sft of garment manufacturing plant in Bangalore with an investment of Rs 1 crore. The factory will come up on leased land and will have production capacity of 2,000 garments a day. The company has recently acquired balance stake of 49% in Indus Garments.

Indus Fila Limited, the flagship company of the group is a new age fashion and textile manufacturer with sharp focus on design and backward integration capabilities, thriving under the dynamic leadership of Mr. Nitin Mandhana, the prime mover of the Company, supported by two other promoter directors - Mr. Shashikant Mandhana and Mr. Prakash Mandhana. The promoters are from a family which is associated with the textile industry for a long time. We are engaged in yarn dyeing, fabric weaving, fabric processing and apparel manufacturing. The commercial production of Company's expanded activities - weaving and apparels started in the month of November 2004. Currently we manufacture color dyed, solid dyed fabrics for domestic garment manufacturers and exporters. The apparel manufacturing of Men's Shirts and Ladies Tops is mainly for exports. We have positioned ourselves as a multi product, multi fibre and multi market player ensuring that our target market is a diverse mix of the domestic fabrics market, garment export and international market (fabrics exports). We have integrated design-to-delivery capability with emphasis on design excellence and innovative product engineering. We share a close rapport with a number of marquee international and domestic brands - Izod, Arrow, Chaps, Armani Exchange and Levi Strauss.

We have multi-locational production and distribution facilities spread across Bangalore and Mysore, viz. Peenya and Nelamangala in Bangalore, Nanjangud in Mysore fully backed up by the facilities for product development, design studio and efficient sampling infrastructure to provide quality services to our customers in India and abroad. We also have distribution facilities in Chennai and Mumbai which gives us advantage of being able to serve our customers from multi-locations. We currently employ over 480 people. Presently, we are operating with 156 weaving looms (including 48 looms under 100% manufacturing agreement) producing approximately 20.80 million meters of fabric per annum and 750 sewing machines with production capacity of 2.70 millions garments per annum. Our Operational Income and Profit after Tax (PAT) as per the restated financial statements for the financial year ending March 31, 2006 is Rs 8,249.13 lacs and Rs 548.96 lacs and for the half year ended September 30, 2006 is Rs 10917.81 lacs and Rs 1063.44 lacs respectively. Our Operational Income and PAT have grown at a CAGR of 99.29% and 147.23% respectively over the period of five years and six months.

MAJOR EVENTS REGARDING INDUS FILLA: Year 1999 2000 2001 2004 2005 Key Events Incorporation of Indus Fila Private Limited Commencement of business with yarn dyeing in Nelamangala. Capex incurred to increase capabilities of yarn dyeing. Commenced weaving and garmenting activity First export order received in February 2005 Capex of Rs 870 lakhs for further addition of capacity in weaving and garmenting. 2006 Agreement 90 crores 2006 Sale deed executed for acquisition of the fully integrated weaving, processing and finishing unit in Mysore with a capacity of 50,000 meters per day and a co generation power plant of 6 MW. 2007 Indus Fila Ltd has informed that on July 05, 2007, the Company has acquired a 51% stake in Indus Garments (India) Pvt Ltd for a consideration of Rs 93.50 million. 2009 Indus Fila, the leading textile manufacturer and apparel exporter has entered the domestic retail sector with its exclusive brand outlets for the mass market. Company, which has already opened two stores in Gulbarga (Karnataka) and Karimnagar (Andhra Pradesh), plans to make 70 stores operational by this August, mainly in tier-II and III towns via the franchise model. entered for acquiring fully integrated weaving,

processing and finishing unit in Mysore for a consideration of Rs

2009

Indus Fila Limited, a fashion textile and apparel manufacturer, has acquired the remaining 49% stake in Indus Garments (India) Pvt., Ltd., a manufacturer of textiles and readymade garments. Both the companies are based in India.

2010

Indus Fila has received the approval from high court of Karnataka to merge Tulip Apparels with itself. The company has received the said approval on February 06, 2010.

INDUS FILAS OPERATION IN INDIA

The concept of retail chain market is new to Indian consumers. Actually, the British colonial government introduced the idea of supermarkets to facilitate its officers with access of all household goods under one roof. The Indus Fila Group is a Bangalore based company. The Indus Fila is an apparel manufacturer and exporter. Most of Indus Fila's revenues comes from exports and the rest meager amount from trading. Although, Indus Fila doesn't have any retail outlets in India, the company is planning to open up retail shops in India soon. As per reports, the Indus Fila retail shops is operating in India from the end of FY 2008 or early FY 2009. The company have earmarked Rs 20 crore for opening retail chain in India. Indus Fila is planning to open 12 retail garment outlets in Bangalore and would further expand to all metros and other semi-urban areas. Furthermore, the Indus Fila group is planning to acquire big brands in the US and Europe.

Indus Fila - the key points that attracted them to open retail chains in India, are:

India ranks 5th on global retail development index It is the second fastest growing economy of the world It is going to be the 3rd largest economy in terms of GDP in next few years It ranks high amongst the top 10 FDI destinations of the world It is the fastest growing tourist market in Asia

World bank states that India to be world's second largest economy after China by the year 2050 Stable and investor friendly Central Government at the helm of affairs Introduction of Value Added Tax or VAT and tax reforms High degree of professionalism and corporate ethics Excellent Investment opportunities in Indian retail sector and in allied sectors; sure and high returns on investments To invest US $130 billion for the development of infrastructure, by 2010 To attract US $ 10 billion FDI for infrastructure development by 2008 Bullish stock markets Hordes of foreign investors are thronging in to invest in Indian retail markets Highly educated English speaking young workforce Vibrant and multi cultured cities Till date the second largest employer after agriculture sector, for the huge semi-skilled Indian population

ADVANTAGE JOHN HILL USP

Quality & appeal like International Brands, Priced very competitively attractive.

85% of the inputs are from the groups vertically integrated resources assuring strict QC upto international standards.

The in house concept of Design to Delivery backed by stringent QC practices, it shall enable quick response to market opportunities and winning consumers confidence over a period of time, adding further sustainable strength in its retailing objective & brand building.

Indus Fila enters domestic retail

Textile manufacturer and apparel exporter Indus Fila has entered the domestic retail sector with its exclusive brand outlets for the mass market. The Rs 500-crore Bangalore-based company has already opened two stores in Gulbarga (Karnataka) and Karimnagar (Andhra Pradesh). It is set to have 70 stores by August, mainly in Tier-II and III towns. The stores will retail a range of western wear for men and women under the brand name John Hill in the price range Rs 300-600. This launch comes at a time when export orders are thinning and companies see potential in the domestic market. Stores are being planned in Chennai, Kolar, Vijayawada, Ahmedabad, Baroda, Bangalore, Hyderabad, and in Maharashtra. Barring two stores in Bangalore, the rest will be run by franchisees, said Mr Nitin Mandhana, Managing Director, Indus Fila. Indus Filas investment in the retail venture is around Rs 20 crore. The company, which came out with an initial public offer in 2007, has manufacturing units in Mysore and Bangalore. In 2007, Indus Fila acquired a 51 per cent stake in Bangalore-based Indus Garments (India) for Rs 9.3 crore.

Garment exporters see value at home

Apparel exporters are not interested in the dollar alone and are slowly seeing profits with the rupee. As export orders become thin and Indian retail matures, exporters are tapping the potential in the domestic market. The result: reduced entry-level prices and international quality apparel for Indian shoppers. Mr Vasanth Kumar, Executive Director, Max Retail, says garment makers are in a position to block capacity for Indian retailers as export business is weak. Also, exporters now respect Indian retail because we are now more evolved and are demanding healthy numbers from them. As export orders have reduced considerably, garment manufacturers are looking to fill capacity through domestic supply, says Mr Arun Sirdeshmukh, Chief Executive, Reliance Trends.

Local supply line

Bangalore-based exporter Gokaldas Images, which has been supplying to many retailers for two years, says though quantities in the domestic market are still small, there is potential. This year, the company has seen a 50 per cent increase in domestic business and volumes compared to last year. Mr K.A.S. Thirumurthy, owner of Tirupur-based Stallion Garments, too says the domestic market is showing positive signs for exporters.

Another Tirupur-based export firm, Prem Knitwear, which supplies to Shoppers Stop, has been trying to increase business with local players and establish an enviable presence locally. An industry analyst, Mr Sampath Kasirajan, says, The market is becoming bigger in our own backyard, and ignoring it makes no business sense. The Indian textile market is growing at 8-9 per cent; in contrast to markets in the US and Europe that have flattened or are declining.

Retail play
The domestic market is also finding newer entrants from the exporting community. The export hub of Tirupur is seeing export-oriented units taking the plunge locally. Some are even contemplating coming out with their own brand, says Mr A. Sakthivel, President, Tirupur Exporters Association. Stallion Garments has bagged the exclusive licence for supply of Levis Signatures underclothing. It has also launched its own undergarments brands and will supply to 35 distributors across the country. The company is negotiating with Reliance to supply its products. Bangalore-based exporter Indus Fila too has come out with its own brand, John Hill, through a chain of exclusive outlets.

Price tag
All this spells good news for Indian consumers as they get to wear international designs in superior fabric at lower prices. Explaining the reason for the reduced pricing in apparel retail outlets (most of them have lowered entry price to Rs 99), Mr Sirdeshmukh says the marketing costs for private brands is much lower than for external brands. Mr Vasanth Kumar says consumers are seeing lower price tags as lead time from design to final product has reduced from five months to 100 days.

Indus Fila to add 500 John Hill stores Indus Fila, is planning to ramp up its retail operation. The firm will set up around 500 outlets under John Hill brand across India over the next two years. Indus Fila vice-chairman & MD Nitin Mandhana says, We have not seen any impact on our business since the launch as we are discounted brand. Retailing is a seasonal business and we will see an uptick during festive and wedding seasons, he added. Around 90% of the stores will be under the franchisee model, while the remaining 10% will be owned and operated by the company. Indus Filas investment in the retail venture will be around Rs 25 crore. The BSE-listed firm currently has 50 outlets spread over 40,000 sft across India. It plans to take the store count to 130 by the end of the current financial. All the new 500 stores will account for 4, 00,000 sft.

The new stores will be rolled out in tier II and III towns. It will retail a range of western wear for men and women under the brand name John Hill within the price range of Rs 100-750. It is also is in the process of setting up 1,00,000 1,50,000 sft of garment manufacturing plant in Bangalore with an investment of Rs 1 crore. The factory will come up on leased land and will have production capacity of 2,000 garments a day. The company has recently acquired balance stake of 49% in Indus Garments ...

John hill

Premium Brand JOHNHILL is looking for franchisee across North India, A mass market brand targeting youth with real good and performing quality bundled in it, which is attractively priced with irresistible discounts. John Hill is bound to make a customer come back with more friends to share another John Hill experience again & again. Product Range:Fashion apparel in 100% Cotton (Natural fibers) Men's wear Formal Casuals Party wear Shirts, Trousers, Denims, Chinos, Cargos, T-Shirts. Womens wear Launched in autumn / winter collection 09. Advantage John Hill: USP --- Quality & appeal like International Brands, Priced very competitively attractive. --- 85% of the inputs are from the groups vertically integrated resources assuring strict QC upto international standards. --- The in house concept of Design to Delivery backed by stringent QC practices, it shall enable quick response to market opportunities and winning consumers confidence over a period of time, adding further sustainable strength in its retailing objective & brand building. About the promoters of John Hill Brand VIR Retail Pvt. Ltd.: A 100% retailing subsidiary of Indus Fila Ltd. It is an Indus Mandhana

Enterprise that has a rich heritage of seven decades of history in its business. Constantly upgrading technology and practices, complete Vertical Set up of Yarn Dyeing, Weaving, Processing, Apparel making, Designing Sampling & Development Delivery all in-house upto International standards enable it execute fast from Design to Delivery in todays fast evolving fashion trade. As such, Indus Fila one of the most preferred partners by some of the major global apparel brands from Europe & US & brings rich expertise in western fashion.

2.2 Product range

FOR MEN MEN: Men

TOPS KNITS BOTTOMS

Formal, Casual, Evening wear Club wear, Casual shirts, Jackets, Blazers & suits WOMEN
TEES

Fashion tees pullovers & Sweaters Hoodies Polo

Dress Pants, Chinos, Denims, Cargos

DENIM

KIDS BABIES MATERNITY Nursing pads Front opening nursing nighties Mothers carry bags

COMPETITORS OF JOHN HILL

Chapter 3
RESEARCH METHODOLOGY 3.1 Research design
A research design is indispensible for a research project. It is a series to keep on going in the right direction. It is a logical and systematical plan prepared for directing a research study. It specifies the objective, methodology and technique to be adopted for achieving the objective. Without a plan a work become unfocussed and aimless, the study will be difficult, time consuming to make adequate discrimination in the complex interplay of factors

3.2 Data sources

The data has been collected through primary sources.

Primary sources
It refers to data collected fresh and recorded for the first time. They are collected through questionnaire and direct interview. It thus happen original in nature, in this study data was collected through structured questionnaire.

3.3 Sampling
Sampling is that part of statistical practice concerned with the selection of an unbiased or random subset of individual observations within a population of individuals intended to yield some knowledge about the population of concern, especially for the purposes of making predictions based on statistical inference. Sampling is an important aspect of data collection. Researchers rarely survey the entire population for two reasons the cost is too high, and the population is dynamic in that the individuals making up the population may change over time. The three main advantages of sampling are that the cost is lower, data collection is faster, and since the data set is smaller it is possible to ensure homogeneity and to improve the accuracy and quality of the data. Each observation measures one or more properties (such as weight, location, color) of observable bodies distinguished as independent objects or individuals. In survey sampling, survey weights can be applied to the data to adjust for the sample design. Results from probability theory and statistical theory are employed to guide practice. In business and medical research, sampling is widely used for gathering information about a population.
a) Sampling plan sampling is a procedure to draw conclusion about larger population by studying a small of the universe

b) Sampling units in this study the researcher has addressed questionnaire to the sample respondents.

c) Sample size In this study sample was 20.

d) Sampling techniques sampling technique were only which were used to select the respondents to get the result for the questionnaire was adopted because of the huge number of people.

e) Sampling method the sampling method may be classified into two generic types

1.)

Random sampling:

A random sample is one chosen by a method involving an unpredictable component. Random sampling can also refer to taking a number of independent observations from the same probability distribution, without involving any real population. A probability sample is one in which each item has a known probability of being in the sample. The sample usually will not be completely representative of the population from which it was drawn this random variation in the results is known as sampling error. In the case of random samples, mathematical theory is available to assess the sampling error. Thus, estimates obtained from random samples can be accompanied by measures of the uncertainty associated with the estimate. This can take the form of a standard error, or if the sample is large enough for the central limit theorem to take effect, confidence intervals may be calculated.

2.)

Non-random sampling: kind of procedure that does

Non-random samples are selected by any

not give all cases in the population equal chances to fall into the sample. Sometimes the context of the study allows or facilitates using a certain method of sampling; sometimes the researcher has the possibility of selecting the method. Various such procedures will be discussed below. Whatever the procedure, it is always possible that it will favor certain types of cases in the population more than the others, in other words the data from the sample will be biased. In descriptive studies the presence of bias is usully a grave handicap, because it can prohibit generalizing the results into the population.
Random sampling is being used in this study. f) Analysis of the data

The data collected through questionnaire have been tabulated. By using the above mentioned statistical tools, the data have been analysed. Interpretation have been drawn based on the analysis. The findings and observations are the result and outcome of the interpretation made during the course of analysis.

3.4 Statistical tools

The methods used for the data analysis are

a) Percentage analysis method b) Diagram graph method c) Chi-square test

Chapter 4
Analysis and interpretation
Name of the 20 Franchisees of Nungambakkam
S.No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Franchisees Peter England Globus 2 Joshuahs T-shirt Koutons Comfy Shoemakers Pvt. Ltd (Adidas) Indian Terrain Bodyline Tremmer Company Fashion Flash Stepin Kenith Parker Estilo Prince The Loot Classic Polo Style One Choice Lee Pepe Jeans Arrow Mufti

 Name of brand showroom

S.No.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Franchisees
Peter England Globus 2 Joshuahs T-shirt Koutons Comfy Shoemakers Pvt. Ltd (Adidas) Indian Terrain Bodyline Tremmer Company Fashion Flash Stepin Kenith Parker Estilo Prince The Loot Classic Polo Style One Choice Lee Pepe Jeans Arrow

Showroom
Peter England Globus, Basics, Genesis Pan America, London Bridge Koutons Adidas Indian Terrain Color Plus Timber Land, Jack & Jones Warp & Wraft, Rulez Kenith Parker Estilo Pan America, Pyramids Fila Classic Polo Pyramids, Pan America Pan America Lee Pepe Jeans

Arrow Mufti Mufti

 Area where the show room is located

S.No.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Franchisees
Peter England Globus 2 Joshuahs T-shirt Koutons Comfy Shoemakers Pvt. Ltd (Adidas) Indian Terrain Bodyline Tremmer Company Fashion Flash Stepin Kenith Parker Estilo Prince The Loot Classic Polo Style One Choice Lee Pepe Jeans Arrow Mufti

Area
Nungambakkam Nungambakkam Nungambakkam Nungambakkam Nungambakkam Nungambakkam Nungambakkam Nungambakkam Nungambakkam Nungambakkam Nungambakkam Nungambakkam Nungambakkam Nungambakkam Nungambakkam Nungambakkam Nungambakkam Nungambakkam Nungambakkam Nungambakkam

 Current rent of the place of the franchisee in per sq. ft Table 4.1 Rent (in Rs) 25 40 41 60 61 80 81 and above Total Sources- Primary data Chart 4.1 No. of Frnchisee 13 2 2 3 20 Percentage 65 10 10 15 100

INFERENCE: From the above table it is shown that 65% of the franchisees

are giving 25-40 rupees, 10% are 41-60 rupees, again 10% are 61-80 rupees, and 15% are more than 81 rupees per square feet.

 Monthly sale of the franchisee Table 4.2 Sales (in Rs) Less 2,00,000 2,00,001 - 3,50,000 3,50,001 5,00,000 5,00,001 6,50,000 Sources- Primary data No. of Franchisee 3 9 6 2 Percentage 15 45 30 10

Chart 4.2

INFERENCE: From the above table it is shown that 15% of the franchisees

have sale less than 200000 per month, 45% of the franchisees have sale between 200001-350000 per month, 30% of the franchisees have sale between350001-500000 per month, and 10% of the franchisees have sale between 500001-650000 rupees per month.

 Average customer frequency on per day basis Table 4.3 Customer walk 0 30 31 50 51 70 Sources- Primary data No. of Franchisee 8 8 4 Percentage 40 40 20

Chart 4.3

INFERENCE: From the above table it is shown that 40% of the franchisees

having maximum or can say 0-30 customer per day customer frequency, other 40% say they have 31 -50 customer frequency and rest 20% say they have overall 51- 70 customer frequency every day.

 Customer conversion rate in terms of sale Table 4.4 Conversion rate 0-41 41-60 61-80 Sources- Primary data No. of Franchisee 5 8 7 Percentage 25 40 35

Chart 4.4

INFERENCE: Customer convertion rate for 25% of franchisee is 0-40%, for

other 40% it is 41-60% and rest 35% it is 61-80%.

 Extra sales on the weekends and on holidays Table 4.5 Extra sales Yes No Sources- Primary data No. of Franchisee 20 0 Percentage 100 0

Chart 4.5

INFERENCE: About extra sales overall franchisee agree, that there is extra

sales on weekends and holidays.

 Male & female customers frequency visiting the franchisee more often Table 4.6 Gender Male Female Sources- Primary data No. of Franchisee 20 0

Chart 4.6

INFERENCE: Here very interesting result came out about the customer that

more generally or approximately 100 percent customer those are coming to the showrooms or franchisees are Males.

 Type of clothes are mostly sold from show room Table 4.7 Type of clothes Mens Formal Mens Casuals Denim Womens Formal Womens Casual Sources- Primary data No. of franchisee 10 3 3 2 2 Percentage 50 15 15 10 10

Chart 4.7

INFERENCE: From the above table it is shown that 50% franchisee sells

Mens Formal, 15% Womens casuals.

franchisee

sells Mens casuals, 15% franchisee sells

Denim, 10% franchisee sells Womens formal and 10% Franchisee sells

 Income group are prime customers Table 4.8 Income group Lower Class Upper Middle Class Upper Class Sources- Primary data No. of Franchisee 12 6 2 Percentage 60 30 10

Chart 4.8

INFERENCE: From the above table it is shown that 60% franchisee having Lower class , 30% franchisee having upper middle class and only 10% franchisee having Upper class income group customer who visit their shop.

 Age wise distribution of the customers visiting the frannchisees Table 4.9 Age Group 20-25 20-30 20-40 25-30 25-40 31-40 Sources- Primary data No. of Franchisee 1 7 2 2 7 1 Percentage 5 35 10 10 35 5

Chart 4.9

INFERENCE: From the above table it is shown that age group of 18-25 customer visits 5% to franchisee, age group of 20-30 customer visits 35% to franchisee, age group of 20-40 customer visits 10% to franchisee, age group of 25-30 customer visits 10% to franchisee, age group of 25-40 customer visits 35% to franchisee, and age group of 31-40 customer visits 10% to franchisee.

 Product price range available in franchisees Table 4.10 Price Range () Upto 1500 Upto 3000 Upto 4500 Upto 4501 and above Sources- Primary data No. of Franchisee 4 6 5 5 Percentage 20 30 25 25

Chart 4.10

INFERENCE: From the above table it is shown that 20% franchisee sells the product upto Rs 1500, 30% franchisee sells the product upto Rs 3000, 25% franchisee sells the product upto Rs 4500, and product upto Rs 4501 and above. 25% franchisee sells the

 Brand value of franchiser have influence over sales Table 4.11 Brand Value Yes No Sources- Primary data No. of Franchisee 20 0

Chart 4.11

INFERENCE: From the above table it is shown that 100% franchisee agree that the brand value of their franchiser company have influence over their sales.

 Discount & offer have extra bearing on sales & revenue generation Table 4.12 Extra bearing Yes No Sources- Primary data No. of Franchisee 19 1 Percentage 95 5

Chart 4.12

INFERENCE: From the above table it is shown that 95% franchisee agree that the discount and offer have extra bearing on sales and revenue generation and only 5% franchisee do not agree that the discount and offer have no extra bearing on sales and revenue generation.

 Kind of promotional strategies follow by Franchisee Table 4.13 Promotional Strategies Advertisement Seasonal Discount Offers Sources- Primary data No. of Franchisee 5 10 5 Percentage 25 50 25

Chart 4.13

INFERENCE:

50%

franchisee

follow

seasonal

discount

promotional

strategies, 25% franchisee follow offers promotional strategies and 25% franchisee follow advertisement promotional strategies.

 Uniqueness of brand Table 4.14 Uniqueness Brand Product Range Fitting Quality Price Sources- Primary data No. of Franchisee 3 3 4 8 2 Percentage 15 15 20 40 10

Chart 4.14

INFERENCE: From the above table it is shown that the uniqueness of 15%

franchisee is Brand, the uniqueness of 15% franchisee is Product range, the uniqueness of 20% franchisee is Fitting, the uniqueness of 40% franchisee is Quality and the uniqueness of 10% franchisee is Price.

 Switch over to other brand franchise in same segment Table 4.15 Switch Yes No Sources- Primary data No. of Franchisee 19 1 Percentage 95 5

Chart 4.15

INFERENCE: From the above table it is shown that 95% franchisee after given the opportunity they would like to switch over to other brand franchise in the same segment and only 5% franchisee after the given the opportunity they would not like to switch over to other brand franchise in the same segment .

 Take other brand franchisee Table 4.16 Other brand franchisee Yes No Sources- Primary data No. of Franchisee 19 1 Percentage 95 5

Chart 4.16

INFERENCE: From the above table it is shown that 95% franchisee after given the opportunity they would like take other brand franchisee and only 5% franchisee after the given the opportunity they would not like to take other brand franchisee.

CHI-SQUARE ANALYSIS
Relationship between sales per month and rent in sq ft. Rent in sq ft Sales Less than 2,00,000 2,00,0013,50,000 3,50,0015,00,000 5,00,001 and above Total 25-40 2 8 3 0 13 41-60 1 0 1 0 2 61-80 0 0 1 1 2 81 and above 0 1 1 1 3 Total 3 9 6 2 20

NULL Hypothesis (HO):- There is no significant relationship between the rent of the franchisee and the sales per month.

Alternative Hypothesis (H1):-There is a close relationship between the rent of the franchisee and the sales per month. Table of expected frequencies: 1.95 5.85 3.9 0.3 0.9 0.6 0.3 0.9 0.6 0.45 1.35 0.9

1.3

0.2

0.2

0.3

Calculation of CHI- SQUARE: Observation(O) 2 8 3 0 1 0 1 0 0 0 1 1 0 1 1 1 Calculated 2 value Degree of freedom Expected (E) 1.95 5.85 3.9 1.3 0.3 0.9 0.6 0.2 0.3 0.9 0.6 0.2 0.45 1.35 0.9 0.3 = = = = Table value Level of significance = = 12.1282 (r-1) (c-1) (4-1) (4-1) 9 16.9 5% (O-E)2 .0025 4.62 0.81 1.69 0.49 0.81 0.16 0.04 0.09 0.81 0.16 0.64 0.20 0.12 0.01 0.49 (O-E)2/E 0.0012 0.789 0.207 1.3 1.63 0.9 0.266 0.2 0.3 0.9 0.266 3.2 0.44 0.088 0.011 1.63 (O-E)2/E = 12.1282

INFERENCE:

It is found from the above analysis that calculated chi-square value is less than the table value at 5 degree of freedom and Null hypothesis accepted. So, we conclude that, there is a no significant relationship between the rent of the franchisee and the sales per month. Chapter 5 5.1 FINDINGS

Average rent that most of the franchisees are paying is 25-40 rupees per square feet.

Monthly sale is for most of the franchisee is around 3.5 lacs, but some
good franchisees or whose brand value is little bit more have monthly sale around 5.00 lacs.

Customer frequency for a normal business day is overall around 4050 in which approximately 50% customer come only for window shopping

Overall all the franchisees are agree that there is always extra sales
on holidays and on weekends due to increase in customer frequency and customer conversion rate.

Its a male market because most of the shopping done by the males.
Females are also there but there frequency is very low approximately zero.

Mostly
50%

customers prefer to buy the formal wearing. Approximately

Ages of the customers who are visiting the franchisees frequently are
around 20-40, and most of them are employed thats why they prefer to buy formal wear.

 Most of the franchisees having branded apparels and they realize that
it has got very good influence over the customers.

Overall

all of the franchisees owners have same opinion about the

discount and offers that it has got extra bearing on sales and revenue.

Most of the franchisees are using the strategy of seasonal discount,

after that they prefer advertisement and offers.

Quality and the fittings are the first choice for most of the customers. Most of the owners are agree that they will like to switch over another
brand if they will get better margin, brand value etc.

5.2 SUGGESTIONS

There is good opportunity in the market for new franchisee with new
offerings and new designs therefore john hill should launch its products with uniqueness.

There

is no need of renting a high rent place for the franchisee

because it has got no use, instead it will generate extra pressure on the income.

Franchisee owners are waiting for new brands who will provide them
good margin and profit therefore its a good opportunity to grab

Mostly On

prefer to keep the formal wear because customers are

interested in formal. weekends always keep fresh and new arrivals because the

customer frequency and the sale is higher.

Keep focus on male clothing At the beginning advertisement will be needed to promote the brand
and create brand awareness.

Keep in focus or target the young age customers.

5.3 CONCLUSION
Bangalore-based exporter Indus Fila too has come out with its own brand, John Hill, through a chain of exclusive outlets. Now Indus Fila wants to expand its chain all over India. A mass market brand targeting youth with real good and performing quality bundled in it, which is attractively priced with irresistible discounts India is the second fastest growing economy of the world thats why it provides good opportunity to the new entrants High degree of professionalism and corporate ethics suggest that there is going to increase the demand for the formal wearing in the market. There is good scope in the market even the peoples are waiting desperately for the new brands who will provide them better margin and good product One more reason that john hills product price is not very high therefore there is a good opportunity in the market. Because people will enjoy the branded apparel at the lowest price. John hill should open the franchisee in Nungambakkam because there is good scope of marketing and sale of the product because John Hill provide good quality clothing at the lowest price

BIBLIOGRAPHY
www.indusfila.com www.johnhill.in www.google.com PHILIP KOTLER, MARKETING MANAGEMENT

Analysis of Branded Apparel Franchisees

Questionnaire

1. Name of the franchisee?

2. Which brand show room are you having?

3. Area where the show room is located?

4. Current rent of the place in per sq. ft format?

5. Sale of the show room in (lakhs)? a) Less than 2,00,000 c) 3,50,000-5,00,000 e) 6,50,000-8,00,000 g) more than 10,00,000 b) 2,00,000-3,50,000 d) 5,00,000-6,50,000 f) 8,00,000-10,00,000

6. Customer walk in a particular day?

a) 0-10 e) 70-90

b) 10-30 f) 90-110

c) 30-50

d) 50-70

g) more than 110

7. Customer conversion rate in terms of sale? a) 0-20% e) 80%-100% b) 20%-40% c) 40%-60% d) 60%-80%

8. Does there is extra sales on the weekends and on holidays? a) Yes b) No

9. What gender of customer is coming more often to your show room? a) Male b) Female

10. What type of clothes are mostly sold from your show room? a) Mens formal d) Womens formal b) Mens casuals e) Womens casuals c) Denim

11. Which brand franchisees are your prime competitors?

12. Which income group are your prime customers?

13. Which age group visits your store often? a) Below 17 d) 25-30 b) 17- 20 e) 30-40 c) 20-25 f)above 40

14. What is the product price range available in your store?

15. Do you think the brand value of your franchiser company have influence over your sales? a) Yes b) No

16.Does the discount and offer have extra bearing on sales and revenue generation? a) Yes b) No

17. What kind of promotional strategies do you follow? a) Advertisement b) Seasonal Discount c) Offers

18. what is the uniqueness of your brand?

19. Given the opportunity would you like to switch over to other brand franchise in the same segment?

a) Yes

b) No

20. Given the opportunity would you like take other brand franchisee? a) Yes

b) No