M NAVNEETH ROY S2 MBA CET

Indian Textile Indusrtyy The textile industry is the largest industry of

modern India. y It accounts 20 percent of industrial production y and is closely linked with the agricultural and rural economy. y Textiles account for about 25 percent of Indias total forex earnings.

Continuedy Industry is highly localised in Ahmedabad and

Bombay in the western part of the country other centres - Kanpur, Calcutta, Indore, Coimbatore, and Sholapur. y Structure of Indian Textile Industry. y Modern, sophisticated and highly mechanised mill sector . y The handspinning and handweaving (handloom) sector . y Small-scale powerloom sector.

Sources and Types of Textilesy Animal Originy Silk y Wool

y Vegetabley Coir: It is a fiber obtained from coconuts. y Cotton It is a soft fiber that grows around the

seeds of the cotton plant. y Jute It is produced from plants. y Linen It is made from flax.

Continuedy Derived from plant productsy Paper y Rayon y Modal

y Syntheticy Acrylic fiber y Lurex y Spandex, Tactel, Lycra and other stretch fabrics y Nylon fiber y Polyester fiber y Polypropylene (also known as Olefin or Herculon)

Reliance The beginningy Dhirubhai Ambani Founder of Reliance

empire was born on 28th December 1932, in Chorwad, Gujarat belonged to the Hindu Modh Bania community.y After stints at Middle east in 1958 returned to

India with INR 50,000/- in his pocket - set up a textile trading company Reliance.

Continuedy Sensing a good opportunity in the textile

business, opened first textile mill at Naroda, Ahmedabad in 1966. y Textiles manufactured using polyester fibre yarn. y Started the brand "Vimal - Extensive marketing in the interiors of India made it household name after 15 years Vimal became Indias top most textile company

Reliance Industries Limitedy (BSE: 500325, NSE: RELIANCE, LSE RIGD) is India's largest private sector conglomerate company by market value, y an annual turnover of US$45.09 billion y profit of US$3.6 billion for the fiscal year ending in March 2010 making it one of the largest India's private sector companies y ranked at 264th position in the Fortune Global 500 (2009) and at the 126th position in the Forbes Global 2000 list (2010). y Chairman & MD - Mukesh Ambani

Marketing Strategy of Reliance textilesy

Target Market selection India as its target market.

* Identified the well-to-do urbanites of

* Product High quality synthetic fabrics, using crimped yarn * The distinctive , sophisticated, and high price character of the

fabrics

Positioningy Vimal fabrics was positioned on the plank of Fashion y The fashion theme was given an additional value

dimention with the help of technology attribute

Positioningy Vimal fabrics was positioned on the plank of Fashion y The fashion theme was given an additional value dimention with the help of technology attributeNewly introduced crimped yarn DuPont cutting edge technology New dye process Modern design facilities

Vimal was positioned as a Superior product offering superior value

Product Strategyy Premium Product based on modern technology

Collaboration with DuPont of USA Reliance for the first time introduced the world s best synthetic fibre technology in India.y Comprehensive Product Range

Reliance entered into all four major segments of textile business Saris - Suitings - Shirting Dress materialsy Wide Variety and choice

Employed 200 designers In suittings 10000 designs every year In saris - 400 New designs every month In dress materials 500 new designs every month ..

Product Strategyy Emphasis on quality -

three step approach

1) It voted for the premium quality as a delibrate option 2) It actually delivered premium quality 3) It communicated to the customers that premium quality was being delivered

The Distribution Strategyy The Show Room or

Exclusive Retail Outlet idea was the cornerstone of Reliance distribution strategy

y 1800 Vimal show rooms across the country the largest retail network of its kind in India

The Distribution Strategyy Reliance promoted the unique distribution strategy VIMAL SHOWROOMS the largest nationwide retail network there is one near you y Reliance opened Jumbo Showrooms in big cities under the banner of Vimal Prestigious Showrooms

Pricing StrategiesPremium Pricing strategy Blend of What the traffic can bear and Value for money pricing

Promotional Strategyy Initial Promotion budget of 5 crore per Annum in1970s* Reliance believed in high power promotion * Brand loyalty has been built up by sustained promotion campaign, using a good mix of different media.

y Innovative approach* Vimal departed from conventional models dependant approach * They induced the customers to look at textiles as a technical product and made them to talk of Crimped yarn , DuPont technology and Creative and Unique dress combinations

y Different approaches for different Products/AudienceDifferent promotional approaches to different regional markets.

Promotional Strategy ..y For SuitingsReliance divided the target markets into two 1) The business people/ Executive community 2) The middle class gentle men

Promotional Strategy ..y For SuitingsReliance divided the target markets into two 1) The business people/ Executive community 2) The middle class gentle men Eg:- In Mumbai city Reliance developed Campaign A for business/ executive class consist of Ads in Business India, India Today etc. Campaign B for middle class segment - consist of Ads in CineBlitz, Stardust and Illustrated weekly

Promotional Strategy ..y Strategy for Saris

A Woman Expresses Herself In Many Languages, Vimal Is One Of Them An attempt was made to create a rapport between Vimal and the buyer and appeal to her emotionaly

Promotional Strategy ..y Strategy for Saris

y A Woman Expresses Herself y In Many Languages, y Vimal Is One Of Them

An attempt was made to create a rapport between Vimal and the buyer and appeal to her emotionaly

Promotional Strategy ..y The Fashion Show Idea y The ONLY VIMAL IdeaOnly Reliance was producing , crimped polyester yarn in the country.( at that time) Only Reliance had an advanced R&D facilities Only Reliance was a position to offer 10000 designs and colour combinations Only Reliance was being rated by bodies like the World Bank, as on par with textile firms in the most developed countries

Current Scenario Dressing Up New India

Fabricsy Expanded its production capacity to over 20 million meters per

year.

y Large volume is exported to over 58 countries to some of the

biggest international brands across the globe involved in the business of Suits, Pants and Coats. to convert wool tops to finished fabrics through different processes of Dyeing, Spinning, Weaving and Processing / Finishing using state-of-the-art plant and machinery. (with ISO 9001 & ISO 14001 Certification

y Largest vertically integrated fabric production facilities in India,

y Formalized stringent quality checks at each stage and process

Apparely The Vimal apparel range comprises of three collections

crafted to dress up young India. Business Clean, classic, crisp formal look for men at work. y Leisure Young and relaxed look, perfect for after office. y Evening Bold, stylish, ceremonial look for the next party.

y Worsted Suitingy 100 % Wool y Fine Polyester Wool Suiting fabrics in a no. of

blends y Innovative Worsted fabrics/ blends like : Copol Wool (Soft & luxurious feel for ultimate in comfort)y Synthetic Suiting y Impressive variety of the immensely popular

Polyester Viscose Suiting in a number of shades, weaves and textures.

INSTITUTIONAL BUSINESSy y y y y y y y y y y y

Indian Armed Forces Indian Navy Indian Air Force Para Military Forces ( CRPF, BSF, SSB, ITBP, Assam Rifles etc.) Railway Protection Forces. J&K Police. Kolkata Police Assam Police Assam Home Guards Public Sector Undertakings ( e.g ONGC , NHPC, BHEL , PPL etc.) Canteen Stores Department for Suiting and Shirting Personal Kit Stores For Defence Uniforms.

Prestigious Customersy y y y y y y y y y

Louis Philippe Reid & Taylor Van Heusen Color Plus Allen Solly Pantaloons Peter England Reliance Retail Arrow Park Avenue

An Ad about - Personalized Suit

RETAIL STORESy Vimal products are comprehensively stocked in several cities across India.

Products available in VIMAL Store: Vimal Fabrics: Premium Worsted & Synthetic Suiting, Premium 100% Cotton & Cotton Rich Shirting y Vimal Apparel: Shirts, Trousers, T-Shirts, Suits & Jackets y Accessories: Ties, Hankies, Cufflinks, Socks, Body Sprays, Perfumes. Exclusive Satya Paul Collection. y Consumer Offers Running at Store: EMI offer for HDFC and SBI Cards Credit Card Holders; 15% Discount for SBI Cards Customers

SWOT Anaylsis

Strengths and Weaknessesy Availability Of Low Cost And Skilled Manpower. y Different approaches for different products. y Introduced Worlds Best Synthetic Power Technology. y Strong Brand Name Good Reputation Among Customers. y Favourable Access To Distribution Networks. y Advanced R & D Sections y Unfavourable Labour Laws. y High Cost Structure.

Opportunities & Threatsy Growth Rate Of

y

y y

y

Domestic Trade Industry Is 6-8%/Annum Large Potential Domestic And International Market Elimination Of Quota Restriction Increased Disposable Income And Purchasing Power Of Indian Customer Emerging Retail Industry And Malls

y Shift In Consumer Tastes

From Firms y Product Emergence Of Substitute Products y Making balance between price and quality y Increased Trade Barriers

y Dhirubhai ambani was involved in an open spat with

another fabric businessman?.Can you name that business man and that textile company? y Reliance Industries launched a new retail concept with regards to Vimal outlets? What is the name of that retail initiative? y Campaign A the promotional strategy for suitings for the business/executive community was made to break which textile company s stranglehold?

Referencesy Wikipedia y http://www.onlyvimal.co.in/ y www.ril.com/ y www.reliance-tracker.in

Thank You