Expansion Expansion EnigmasEnigmas

Presented by:Presented by:

Abhiman C.AAbhiman C.AAmit KothariAmit KothariArvind PatilArvind Patil

Debolina SinhaDebolina SinhaHarikrishnan.RHarikrishnan.R

Company Profile-TarangCompany Profile-Tarang

Manufacturing and Marketing fabrics for Manufacturing and Marketing fabrics for suiting and shirting.suiting and shirting.

18% share in the fabrics market.18% share in the fabrics market. Rs.225 Crores (Market: 1250 Crores.) Rs.225 Crores (Market: 1250 Crores.)

turnover for 1995-96.turnover for 1995-96. 63% from shirting, 37% from suiting.63% from shirting, 37% from suiting. Restructured its business operations.Restructured its business operations. Institutional segment contributes 20% of Institutional segment contributes 20% of

sales.sales.

Strengths of TarangStrengths of Tarang

20 years of experience.20 years of experience. Core competency-Distribution Core competency-Distribution

network. 530 retail networks across network. 530 retail networks across 248 towns with South and West India 248 towns with South and West India accounting for 65%.accounting for 65%.

Strong customer base.Strong customer base. Known for its price, durability, Known for its price, durability,

crease-resistance and easy crease-resistance and easy availability.availability.

Readymade Shirt MarketReadymade Shirt Market

What’s in it for Tarang?What’s in it for Tarang?

Valued at Rs.800 Crores.Valued at Rs.800 Crores. Growing at 25% per annum for past 3 Growing at 25% per annum for past 3

years.years. Boost turnover by 20% every year.Boost turnover by 20% every year.

Potential sales in the price segment Potential sales in the price segment

Rs.225-475 is expected to be 10 million Rs.225-475 is expected to be 10 million

shirts.shirts.

ChallengesChallenges

Lack of brand and brand Lack of brand and brand personality.personality.

Low presence in north India.Low presence in north India. No advertising.No advertising.

Existing SegmentationExisting Segmentation

The ClimbersThe Climbers 25 & 35 years old.25 & 35 years old. Income Rs.5000/month.Income Rs.5000/month. Family size of 5.Family size of 5. Executives in small & medium-scale Executives in small & medium-scale

companies.companies. Concentrated in cities and towns of Concentrated in cities and towns of

South and West India contributing 40% South and West India contributing 40% and 23% respectively.and 23% respectively.

40% of this segment were regular 40% of this segment were regular buyers.buyers.

Another 22% had bought the brand Another 22% had bought the brand at least twice.at least twice.

Durability, price and crease-Durability, price and crease-resistance.resistance.

Ambitious, aspirational,hard-Ambitious, aspirational,hard-working,drive towards materialism.working,drive towards materialism.

No brand identification.No brand identification.

The SettlersThe Settlers

33 to 45 years old .33 to 45 years old . Income Rs 4000-Rs 8000/month.Income Rs 4000-Rs 8000/month. 60% of this segment work for banks 60% of this segment work for banks

and public sector companies.and public sector companies. Residing in cities and towns of South Residing in cities and towns of South

India.India. Loyalty to Tarang suiting brand due Loyalty to Tarang suiting brand due

to non-availability of other brands.to non-availability of other brands.

Market segmentation of Market segmentation of branded shirtsbranded shirts

Pricing starting from Rs 150 – Rs 1000.Pricing starting from Rs 150 – Rs 1000. Three premium brands of same company Three premium brands of same company

occupy 40% market share. occupy 40% market share. None of the brands below the top three None of the brands below the top three

have more than 10% of the market share.have more than 10% of the market share. Popular end of readymade shirt markets:Popular end of readymade shirt markets:

-Prize: National, but no exclusive -Prize: National, but no exclusive showrooms.showrooms.

-Rans: Regional (South).-Rans: Regional (South).

SuggestionsSuggestions

Enter readymade shirt market.Enter readymade shirt market. Not going for separate brands.Not going for separate brands. Introducing shirts under two Introducing shirts under two

categories (Casuals, Formals)categories (Casuals, Formals) Target market: Climbers, Settlers Target market: Climbers, Settlers

and other Middle Class Consumers.and other Middle Class Consumers.

PricingPricing

Tarang Genesis – Rs.259-Rs.299(Targeted at economy class).Tarang Genesis – Rs.259-Rs.299(Targeted at economy class).

Tarang Acme – Rs.359-Rs.399(Targeted at Climbers).Tarang Acme – Rs.359-Rs.399(Targeted at Climbers).

Tarang Executive – Rs.459-Rs.499(Targeted at Settlers)Tarang Executive – Rs.459-Rs.499(Targeted at Settlers)

Tarang Sphere– Rs.349-Rs.375.(Targeted at urban youngsters).Tarang Sphere– Rs.349-Rs.375.(Targeted at urban youngsters).

Tarang “Ruff” – Rs.249-Rs.275(Targeted at youth in school/out Tarang “Ruff” – Rs.249-Rs.275(Targeted at youth in school/out of school)of school)

..

Brand Brand PersonalityPersonality

Brand personality for Formals – Brand personality for Formals – AchieversAchievers

Brand personality for Casuals - Brand personality for Casuals - TrendyTrendy

AdvertisingAdvertising

Regional Channels.Regional Channels. MagazinesMagazines Newspapers (both regional and Newspapers (both regional and

national).national).

Thank YouThank You