Analysis of Branded Apparel Franchisees  

TOWARDS 

                                    

                                         A FINAL PROJECT REPORT 

SUBMITTED TO 

SRM SCHOOL OF MANAGEMENT 

In partial fulfilment of the requirement for the award of the degree of 

MASTER OF BUSINESS ADMINISTRATION 

SUBMITTED BY 

SUNIL KUMAR   

Reg. No. 35080626 

SUBMITTED TO 

Mrs. P.S. RAJESWARI 

FACULTY OF ENGINEERING AND TECHNOLOGY 

SRM UNIVERSITY 

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 Introduction 1

1.2 Statement of the problem 2

1.3 Objectives of the study 3

1.4 Scope of the Study 3

1.5 Limitation

4

CHAPTER 2 2.1 Company profile 5

2.2 Product range 21

CHAPTER 3 Research Methodology 25

3.1 Research Design 25

3.2 Data Sources 25

3.3 Sampling 26

3.4 Statistical Tools 28

CHAPTER 4 4.1 Analysis and interpretation 29

CHAPTER 5 5.1 Findings 50

5.2 Suggestion 52

5.3 Conclusion 53

Bibliography 54

Questionnaire 55

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 today’s 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.

Today’s garments manufacturers has an answer to the fashionable jeans

with the great brands. John hill has complete male vanity to pamper the

Indian male.

The fashion has no rules. Actually it does not have any permanent

rules. The fashion changes with times. The tastes and preferences of

people changes regularly. People get bored of wearing same fashions,

design and colors. The company, which has continuous creativity, can only

survive in today’s 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. Thus, fashion can be created in any

field.

Today’s 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.

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  

                                           INDUS FILA LIMITED 

 

 

Type Indian exporter and importer 

Industry 

 

Brand 

Textiles 

 

John hill & Miss hill  

Founded  1999 

Headquarters  Bangalore, India

Key people   Nitin Mandhana‐ Chairman & Managing Director 

Products Men’s wear, designers wear, jeans, men’s formal, men’s casual, trousers, fabrics. 

Websites  www.johnhill.in, www.indusfila.com 

 

 

INTRODUCTION ABOUT INDUS FILA LIMITED

The spectacular growth rate of India’s economy is well noticed.

Asia’s 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 Fila’s

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 Key Events

1999 Incorporation of Indus Fila Private Limited

2000 Commencement of business with yarn dyeing in Nelamangala.

2001 Capex incurred to increase capabilities of yarn dyeing.

2004 Commenced weaving and garmenting activity

2005 First export order received in February 2005 Capex of Rs 870

lakhs for further addition of capacity in weaving and garmenting.

2006 Agreement entered for acquiring fully integrated weaving,

processing and finishing unit in Mysore for a consideration of Rs

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.

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 FILA’S 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 group’s 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 Fila’s 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

Signature’s 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 Fila’s

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. Women’s 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 group’s 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 today’s 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, Fashion tees Dress Pants,

Casual, pullovers & Sweaters

Chinos,

Evening wear Hoodies Denims,

Club wear, Polo Cargos

Casual shirts,

Jackets,

Blazers & suits

WOMEN TEES DENIM

KIDS

BABIES

MATERNITY Nursing pads Front opening nursing nighties

Mother’s 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:

Non-random samples are selected by any kind of procedure that does

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.

Franchisees

1

Peter England

2

Globus 2

3

Joshuah’s T-shirt

4

Koutons

5

Comfy Shoemakers Pvt. Ltd (Adidas)

6

Indian Terrain

7

Bodyline Tremmer Company

8

Fashion Flash

9

Stepin

10

Kenith Parker

11

Estilo

12

Prince

13

The Loot

14

Classic Polo

15

Style One

16

Choice

17

Lee

18

Pepe Jeans

19

Arrow

20

Mufti

Name of brand showroom

S.No.

Franchisees

Showroom

1

Peter England

Peter England

2

Globus 2

Globus, Basics, Genesis

3

Joshuah’s T-shirt

Pan America, London Bridge

4

Koutons

Koutons

5

Comfy Shoemakers Pvt. Ltd (Adidas)

Adidas

6

Indian Terrain

Indian Terrain

7

Bodyline Tremmer Company

Color Plus

8

Fashion Flash

Timber Land, Jack & Jones

9

Stepin

Warp & Wraft, Rulez

10

Kenith Parker

Kenith Parker

11

Estilo

Estilo

12

Prince

Pan America, Pyramids

13

The Loot

Fila

14

Classic Polo

Classic Polo

15

Style One

Pyramids, Pan America

16

Choice

Pan America

17

Lee

Lee

18

Pepe Jeans

Pepe Jeans

19

Arrow

Arrow

20

Mufti

Mufti

Area where the show room is located

S.No.

Franchisees

Area

1

Peter England

Nungambakkam

2

Globus 2

Nungambakkam

3

Joshuah’s T-shirt

Nungambakkam

4

Koutons

Nungambakkam

5

Comfy Shoemakers Pvt. Ltd (Adidas)

Nungambakkam

6

Indian Terrain

Nungambakkam

7

Bodyline Tremmer Company

Nungambakkam

8

Fashion Flash

Nungambakkam

9

Stepin

Nungambakkam

10

Kenith Parker

Nungambakkam

11

Estilo

Nungambakkam

12

Prince

Nungambakkam

13

The Loot

Nungambakkam

14

Classic Polo

Nungambakkam

15

Style One

Nungambakkam

16

Choice

Nungambakkam

17

Lee

Nungambakkam

18

Pepe Jeans

Nungambakkam

19

Arrow

Nungambakkam

20

Mufti

Nungambakkam

Current rent of the place of the franchisee in per sq. ft

Table 4.1

Sources- Primary data

Rent (in Rs) No. of Frnchisee Percentage

25 – 40 13 65

41 – 60 2 10

61 – 80 2 10

81 and above 3 15

Total 20 100

Chart 4.1

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) No. of Franchisee Percentage

Less 2,00,000 3 15

2,00,001 - 3,50,000 9 45

3,50,001 – 5,00,000 6 30

5,00,001 – 6,50,000 2 10

Sources- Primary data

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 No. of Franchisee Percentage

0 – 30 8 40

31 – 50 8 40

51 – 70 4 20

Sources- Primary data

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 No. of Franchisee Percentage

0-41 5 25

41-60 8 40

61-80 7 35

Sources- Primary data

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 No. of Franchisee Percentage

Yes 20 100

No 0 0

Sources- Primary data

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 No. of Franchisee

Male 20

Female 0

Sources- Primary data

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 No. of franchisee Percentage

Men’s Formal 10 50 Men’s Casuals 3 15

Denim 3 15 Women’s Formal 2 10

Women’s Casual 2 10

Sources- Primary data

Chart 4.7

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

Men’s Formal, 15% franchisee sells Men’s casuals, 15% franchisee sells

Denim, 10% franchisee sells Women’s formal and 10% Franchisee sells

Women’s casuals.

Income group are prime customers

Table 4.8

Income group No. of Franchisee Percentage

Lower Class 12 60

Upper Middle Class 6 30

Upper Class 2 10

Sources- Primary data

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 No. of Franchisee Percentage 20-25 1 5 20-30 7 35 20-40 2 10 25-30 2 10 25-40 7 35 31-40 1 5

Sources- Primary data

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 () No. of Franchisee Percentage

Upto 1500 4 20

Upto 3000 6 30

Upto 4500 5 25 Upto 4501 and above 5 25

Sources- Primary data

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 25% franchisee sells the

product upto Rs 4501 and above.

Brand value of franchiser have influence over sales

Table 4.11

Brand Value No. of Franchisee

Yes 20

No 0

Sources- Primary data

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 No. of Franchisee Percentage

Yes 19 95

No 1 5

Sources- Primary data

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 No. of Franchisee Percentage

Advertisement 5 25

Seasonal Discount 10 50

Offers 5 25

Sources- Primary data

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 No. of Franchisee Percentage

Brand 3 15 Product Range 3 15

Fitting 4 20

Quality 8 40

Price 2 10

Sources- Primary data

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 No. of Franchisee Percentage

Yes 19 95

No 1 5

Sources- Primary data

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

No. of Franchisee Percentage

Yes 19 95

No 1 5

Sources- Primary data

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 25-40 41-60 61-80 81 and above

Total

Less than 2,00,000

2 1 0 0 3

2,00,001-3,50,000

8 0 0 1 9

3,50,001-5,00,000

3 1 1 1 6

5,00,001 and above

0 0 1 1 2

Total 13 2 2 3 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 0.3 0.3 0.45

5.85 0.9 0.9 1.35

3.9 0.6 0.6 0.9

1.3 0.2 0.2 0.3

Calculation of CHI- SQUARE:

Observation(O) Expected (E) (O-E)2 (O-E)2/E 2 1.95 .0025 0.0012 8 5.85 4.62 0.789 3 3.9 0.81 0.207 0 1.3 1.69 1.3 1 0.3 0.49 1.63 0 0.9 0.81 0.9 1 0.6 0.16 0.266 0 0.2 0.04 0.2 0 0.3 0.09 0.3 0 0.9 0.81 0.9 1 0.6 0.16 0.266 1 0.2 0.64 3.2 0 0.45 0.20 0.44 1 1.35 0.12 0.088 1 0.9 0.01 0.011 1 0.3 0.49 1.63

∑(O-E)2/E = 12.1282

Calculated χ2 value = 12.1282

Degree of freedom = (r-1) (c-1)

= (4-1) (4-1)

= 9

Table value = 16.9

Level of significance = 5%

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 40-

50 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. It’s 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 customers prefer to buy the formal wearing. Approximately

50% Ages of the customers who are visiting the franchisees frequently are

around 20-40, and most of them are employed that’s 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 it’s a good opportunity to grab

Mostly prefer to keep the formal wear because customers are

interested in formal.

On 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 that’s 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 hill’s 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 b) 2,00,000-3,50,000

c) 3,50,000-5,00,000 d) 5,00,000-6,50,000

e) 6,50,000-8,00,000 f) 8,00,000-10,00,000

g) more than 10,00,000

6. Customer walk in a particular day?

a) 0-10 b) 10-30 c) 30-50 d) 50-70

e) 70-90 f) 90-110 g) more than 110

7. Customer conversion rate in terms of sale?

a) 0-20% b) 20%-40% c) 40%-60% d) 60%-80%

e) 80%-100%

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) Men’s formal b) Men’s casuals c) Denim

d) Women’s formal e) Women’s casuals

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 b) 17- 20 c) 20-25

d) 25-30 e) 30-40 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