Marketing planning

Introduction :

This assignment is submitted in partial fulfilment of the marketing planning unit. I have been asked to conduct macro-environmental and micro environmental marketing audit to identify the current and key issues facing the organization & I propose to launch a Fabindia store in Milan, Italy.

The report outlines reasons for undertaking the audit and appraises the processes, models and techniques used for the audit. It also assesses the external and internal marketing environment for the organisation and summarises the impact of this analysis for the organisations marketing plan and marketing mix. Finally have proposed a marketing plan & details about how it can be executed.

1.About Fabindia:

1.1 History:

The first Fabindia outlet was set up in 1961 by John Bissell to provide a platform

for traditional artisans and printers to market their produce & to showcase diverse

craft traditions of India.

1.2 Current Philosophy:

Eco-friendly, ethical & hand crafted Indian products.

Mission:

Traditional, ethnic products creating sustainable employment for craftsmen and

artisans in rural India.

1.3 Current Target Audience:

Retail-

Age Group: Not specific

Sex: Male & Female

Economic Class: Upper and higher middle class.

Geographical Places: Metros, tier 2 & tier 3 cities.

Institutional Buyers:

Heritage hotels, resorts & corporate houses.

1.4 Current Product Range:

Garments for men and women, Accessories, Home Linen and Furnishings,

Home Products, Floor Coverings, Body Care Products and more recently, Organic

Food Products and ethnic jewellery.

1.5 Timeline of its stores:

1976 – 1st retail outlet, New Delhi.

By 2001 – 6 stores concentrated in the metro cities.

By the end of 2004 – 20 stores.

By the end of 2007 – 75 retail stores across India and in addition, stores in Dubai,

Rome and Guangzhou in China.

By 2008 – 99 stores.

By 2009 – 108 stores.

By 2011 – Target of having 250 stores.

Fabindia: Retail Snapshot

• 108 stores across 40 cities
• 6 stores abroad. – Dubai, UAE, Bahrain (three stores), Doha, Qatar and in Rome, Italy.
• Online Shopping & Exports to 34 countries

1.6 Sales & Revenue:

2000-01 : Turnover of 36 crore rupees

2005-06 : Turnover of Rs 130 crore.

2007-08 : Revenue of Rs 257 crore

2008-2009 : Revenue of Rs 300 crore. but growth more than halved to 17% from

40% in 2007-08.

By 2011: Target turnover Rs 1000 crore.

1.7 Future Plans:

Leveraging the Organic Products section, children’s market.

Expand nationally & internationally.

100,000 shareholders and five-fold increase in skilled jobs in the rural sector.

Reduce the number of defects in the products to a minimal which include bleeding of colours, shrinkage etc.

2. Internal Audit:

2.1 SWOT Analysis:

3. External Audit:

3.1 PESTEL Analysis:

3.2 Impact of Porter’s 5 Forces :

Threat of Subsitutes:

There should not be threat of substitute to the products of Fabindia since they are eco-friendly & organic products which have replaced the ordinary conventional products & are in huge demand.

Market Segmentation:

4. Market Segmentation :

• Fabindia intends to continue expanding internationally & currently – 6 stores abroad.
• Milan – very important city in Italy &one of world’s major financial & business centres.
• Main goal of Fabindia – to promote vast & diverse craft traditions of India.
• Since there is a growing interest among Europeans about Indian handcrafted products, Indian textiles, art& cultures, Fabindia holds lot of potential in European market.
• Fabindia – very ethical & eco-friendly company which supports many causes & Europeans like being part of such endeavours.
• Fabindia does not target any specific age group or any specific economic strata, has something for every one.
• Fiera Milano – city’s ExhibitionCenter and Trade Fair complex is one of most important in the world & Milan is one of fashion capitals of the world. Fabindia wants to increase its global reach, & since lot of international buyers visit Milan, it can prove to be great opportunity for it.
• The employment rate in Milanis 95-96%& therefore the spending power of people is very high.

Thus opening a store at Milan should prove to be beneficial.

5. Proposed Marketing Mix:

Execution:

• They should carry out extensive market research, study kind of products established stores are selling. Meetings with designers & artisans can be conducted – designers give inputs on current market trends and emerging designs to weavers & brainstorm innovative techniques.
• They can design stylish products emphasizing on Indian craftsmanship & explore rich Indian fabrics with numerous surface ornamentation techniques.
• Range will be exclusively designed for the Milan market.
• They can take customer feedback through their online website & know preferences of their customers & design accordingly.

• Product range – fine combinations of Indian aesthetics and western design sensibility.

• Farmers will supply Fabindia with organic varieties from places like Himachal Pradesh, Punjab, Coorg, Tamil Nadu.
• They believe – giving farmers fair price for their produce, and supplying very highest quality food to their customers.

5.2 Price:

Products – different price ranges. Products will be affordable, will give ‘value for money’. It hasexpanded its range- to provide something for all its customers.

Execution:

5.3 Place :

• Fabindia should be strategically located at Sesto San Giovanni – full of commerce, restaurants, hotels, malls, rail station, red line of Metro. Brand Zara home is located there & Habitat is near by.
• 2 eco hotels Hotel la Residenza – Via Scialoia or Hotel Ariston, Galeria del Corso near Sesto San Giovanni can be considered.
• Piazza del Duomo is also very good location which attracts lot of people – boutiques, bookstores & big stores to indulge in elegant and cultural shopping.
• They can haveconcept stores or premium stores located in famous historical landmarks and renowned big heritage for convenience of potential buyer and creation of overall awareness.

Execution:

• With help of Search Office Space (SOS), can find appropriate

place.

• FREE Service – They are paid by advertisers.
• Impartial Advice – Their mission is to find space that meets YOUR requirements.
• They provide with tailor made options that match your specifications.
• They take care of entire search – show options, help create a shortlist, arrange for

you to view space, compare prices, make your final selection and arrange your move-in date.