Tarzz Baby - TAPAL NEW PRODUCT LAUNCH REPORT PDF

Preview

Summary

TAPAL NEW PRODUCT LAUNCH REPORT...

Description

MARKETING REPORT

GROUP MEMBERS ALI MERCHANT (24120) SYED SOHAIB AHMED (24150) SYEDA LAIBA TARIQ (24740) MAHEKASH KUMAR (24449) MAHNOOR SHAKEEL (24266)

Tarz, IBL group of companies Mehran Town Sector 7 A Korangi, Karachi

RIMSHA MOHIB (24680)

1

EXECUTIVE SUMMARY The purpose of this report is to presentdefinite information about the marketing strategies and objectives ofTARZZ; it is an integral part of the many diverse businesses owned by IBL(International Brand Limited) group of companies. TARZZ is a retail clothing store and is considerably new in the textile industry. It aims to position itself as a brand which is modern yet represents the beautiful traditions and culture of our country in each design they make. Stepping into an industry over-flowing with competitors, Tarzz is still struggles each day to reach to the top, slowly but steadily. Tarzz is currently targeting females and providing them with a vast range of clothing, their STAR product is their LAWN collection. They are wide-spread all over Pakistan with 13 RETAIL OUTLETS and 80 partner stores as well as selling online through their website or other intermediaries such as DARAZ.pk The most prominent and effective marketing technique that they use is DIGITAL MARKETING. They provide many value propositions to increase their utility in the eyes of their customers, some of which include their SILAI service, Loyalty Card scheme, special promotions and end of season sales and discounts. Tarzz believes that CUSTOMER SATISFACTION is extremely important for the success ofany business which is why it has dedicated a team especially to solve and assist any and all complaints or queries put forward by their customers and even non customers. TARZZ aims to sustain their position in the market with most increased market share. Hence, this report will provide you with an overview on how they plan to achieve this goal and contains all the detailed information about it. FUTURE OF THE BUSINESS With this report, you will be able to see how effective the current marketing strategy of Tarzz is or is not. The pros and cons of the way they market their product and can they beat their competitors with the way they are currently marketing themselves? If not, what are the things lacking in their marketing strategy?

2

ACKNOWLEDGEMENT In this report, we will be discussing the marketing strategy of IBL’s latest venture TARZZ- a retail clothing brand. We started working on this report from the start of the semester around the start of October as it is a compulsory part of our Marketing course. First of all, we would like to thank Mr. Qasim Mughal, Head of Sales Habitt and Tarzz who was our point of reference and contact and has helped us out in every step of the way. Whether it be on call or arranging the company visit, he made all of it possible! Next up, we spoke with the Senior Manager Marketing of IBL group, Mr. RanaSohaib Mustafa, over the phone which helped us in the composition of the introductory part of the report. Our group went for the company visit and the FINAL INTERVIEW and we met Mr. Rana once again who accommodated all our questions and queries and further we were assisted by Mr. Assad Ahmed, Assistant Manager Planning, IBL Group. (Visiting cards attached at the end) We are extremely grateful to the entire team of Tarzz for their hospitality, patience and sharing their insights with us. Furthermore, we would like to thank our Faculty Advisor- Miss Marium Mateen for her constant guidance and support in making this entire process much easier for us and consequently the report. We could not have done it without you Ma’am, thank you for this wonderful opportunity!

3

INDEX Section 1: Mission and Vision Statement Section 2: Historical background of the Industry Section 3: Product Profile Section 4: Unique Selling Point Section 5: Marketing Goals and Objectives Section 6: STP: Segment-Targeting-Positioning Section 7: Market Analysis Section 8: Competitor’s Analysis Section 9: Distribution Plan Section 10: Referral Strategy Section 11: Marketing Mix Section 12: Product Development Section 13: Joint Ventures and Partnerships Section 14: Promotions strategy Section 15: Marketing Materials Section 16: Company’s Offers Section 17: BCG Matrix Section 18: Brand Development Strategy Grid Section 19: Environmental Analysis Section 20: 4V Marketing model Section 21: Financial Projections and Budgets Section 22: Our Recommendations Section 23: Grey Areas of Tarzz Additional Information 4

References SECTION 1: MISSION AND VISION STAEMENT OF TARZZ

MISSION STATEMENT “Our origin, culture, customs and traditions are what set us apart in this world and regardless of our passage of time, the traditional ways still feel good and light us up from within.”

VISION STATEMENT “It is this inner happiness that Tarzz endeavors to ignite through each of its designs every time you don our fabric. When you step out draped in Tarzz, you are saying to the world that you are confident and modern through our designs and cuts, yet comfortable with who you are and where you’re from, as you are the flag bearer of The Good Side of Traditions!” Source: https://www.tarzz.com.pk/pk/about-us

5

SECTION 2: HISTORICAL BACKGROUND OF INDUSTRY ORIGINATION OF BUSINESS IDEA The Pakistani textile industry combined is the 8th largest manufacturer in Asia, contributing 8.5 percent to the country’s GDP, while employing about 45 percent of the total labor force (38 percent of it being manufacturing workers). Pakistan is the 4th largest producer of cotton with the third largest spinning capacity in Asia after China and India and contributes 5 percent to the global spinning capacity. At present, there are 1,221 ginning units, 442 spinning units, 124 large spinning units and 425 small units producing textiles.

Source: https://profit.pakistantoday.com.pk/

While the textile sector overall has a long way to go, readymade garments showed reasonable growth in these past few years. According to the Pakistan Bureau of Statistics, the exports of readymade garments registered 13 percent year-on-year growth in July-May 2017-18, which stood at $2.346 billion in 2017-18. Total exports of the textile industry grew by 9.82 percent in the last eleven months, to $12.336 billion. During the period, Pakistan’s textile exported cotton yarn worth $1.247 billion, cotton cloth $2.015 billion, knitwear $2.460 billion, bed-ware $2.055 billion, towels $736 million. Part of the reason of this growth of readymade garments is the madness of the LAWN fabric taking over the textile industry and slowly the lives of Pakistani women by storm. The word 6

Laone is a city in France (known for producing linen) and the word LAWN originated from this French word which means turf, stretch of grass. Lawn has become the signature fabric for all Pakistani women because it is very appropriate for the climate of Pakistan. The reason for the prestigious status of the booming Lawn business in Pakistan is the piquing interest of the high end designers who have also stepped into this business also resulting in the price rates of the fabric going up over the years. Some of those names include: 1. Gul Ahmed 2. Bareeze 3. Bonanza 4. Maria B Source:http://www.stylechunk.com/lawn-attires-launch-bigfashion-brands-pakistan/yayvo-lawn/

5. HSY 6. Agha Noor 7. Sana Safinaz

So the reason we chose to explore further into the Textile Industry and particularly LAWN is simply because it is the most important manufacturing sector of the country and has the longest production chain, with inherent potential for value addition at each stage of processing – from cotton to ginning, spinning, fabric, dyeing and finishing, made-ups and garments. The textile products have maintained an average share of about 62 percent in national exports. Choosing a brand that produces lawn fabric as their star product in this time and day was an obvious option. The brand that we chose is TARZZ. A relatively smaller and new brand in comparison to the more established and bigger brands but the reason for choosing Tarzz was simply to explore how this newly developed business is keeping up with the challenges of the industry with such strong and huge number of competitors. Any lawn producing company is their competitor and in Pakistan there are more than 65+ brands that are currently producing lawn in the form of suits or prêt or exporting it abroad. BACKRGROUND OF TARZZ HISTORY OF IBL TARZZ is a part of the IBL- International Brand Limited group of companies. IBL is a diversified business house engaged in a wide range of business activities in Pakistan. The IBL 7

Group focuses on products, services and technologies that can reshape industries and expand our ability to provide our customers with business solutions that synchronize the flow of goods. “Investing in our people means much more than making sure that we are competitive in compensation and benefits. It means creating an atmosphere that breeds individual and organizational success and fuels the passion to make a difference.”

IBL is known for experimenting in diverse fields and products. The Chairman of IBL is Mr. Rashid Abdullah and all the businesses that come under IBL are looked after him and his family. The businesses of IBL Many businesses come under IBL, these include        

IBL health care limited Tarzz Searle Future Technologies Unisys Mycart.pk Dunkin Donuts Habitt

Source: http://www.iblgrp.com/

HISTORY OF TARZZ The Owners of IBL group are known for experimenting across diverse businesses. Same was the case for textile business; they wanted to step into this business for a very long time.

8

They already had a team of professional interior and graphic designing from Habitt so with just a few more additions of textile designers from well reputed universities, they kick started their new venture TARZZ. HISTORY BEHIND THE NAME The CEO of Tarzz and Habitt Mr. Monis Abdullah coined the name ‘Tarzz’. Many names were under the pipeline but Tarzz specifically stood out because of its beautiful meaning. Tarzz means manner or etiquettes and in Urdu it can be called andaaz or saleeqa. So when a person says “Ye mera Tarzz hai”, translated in English: “This is my style or manner”, it adds a whole new meaning to the sentence.

SECTION 3: PRODUCT PROFILE Following are the products that are offered by Tarzz: FOR UNSTITCHED FABRIC 1. 100 % Cotton Chambery Shirt with Yard Dyed Woven Dupatta 2. 100 % Cotton Dobby Gold Paste Shirt 3. 100 % Cotton Slub Shirt 4. 100 % Cotton Slub Shirt with Pearl Paste Printing 5. 100 % Cotton Slub Shirt with White Paste Printing 6. 100 % Pima Lawn Shirt 7. 100 % Pima Lawn Shirt with Gold Paste Printing& Dupatta 8. 100 % Pima Lawn Shirt & Chiffon Dupatta100 % Cotton Trouser 9. 100 % Pima Lawn Shirt & Dupatta100 % Cotton Trouser 10. 100 % Pima Lawn Shirt with Gold Paste Printing & Chiffon Dupatta 100 % Cotton Trouser 11. Gold Screen Printed Collection with jacquard Dupatta CATEGORY 1. 2. 3. 4.

Ankahi Dastaan Lamha Silsila

PRICE 1. Rs. 850 to Rs. 7991 PIECE

Source: https://mallofsialkot.business.site/posts/4662978706187709925

1. 1 Piece 2. 2 Piece 3. 3 Piece FOR PRET FABRIC 1. 100 % Pima Lawn Shirt 2. Cambric 3. Cambric Screen Printed 4. Charmouse Silk 5. Cotton Dobby 6. Cotton Plain 7. Cotton Satin 8. Cotton Satin 2Pcs 9. Denim Kurti 10. Digital Printed 11. Digital Printed Kurti 12. Dobby 13. Dobby Fabric with Embroidery 14. Dyed Dobby 15. Fancy Fabric 16. Hand Loom Kurti 17. Hand Woven Jacquard 18. Jacquard 19. Khaddi Net Jacquard 20. Khadi Net 21. Pima Lawn 22. Poly Crepe 23. Polyester Silk 24. Printed Kurti Jacquard 25. Printed Lawn 26. Pure Raw Silk 27. Rotary Printed 28. Tencil Linen 29. Yard Dyed 30. Yarn Dyed 31. Yarn Dyed Jacquard 32. Yarn Dyed with embroidered lace on sleeve CATEGORY 1. Ankahi 2. Dastaan 3. Lamha 10

Source: http://www.shemagazinepk.com

4. Silsila PRICE 1. Rs. 1323 to rs. 8744 PIECE 1. 1 Piece 2. 3 Piece SIZE 1. 2. 3. 4. 5. 6.

XXS XS S M L XL

They use different range of fabrics for their product range according to changing seasons and fashion trends. The fabric is either locally manufactured or imported; they don’t produce themselves but purchase from suppliers.

11

SECTION 4: UNIQUE SELLING PROPOSITION

Source: https://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/8419-unique-sellingproposition-usp-.html

The Unique selling proposition of Tarzz is: *THERE IS A STORY BEHIND EACH DRESS* Tarzz believes in ethical marketing so for them using models to promote or sell a product is unethical. They believe that the product should be good enough to sell itself. While this may be their ethical approach, the market is a very cruel place and keeping in mind that Pakistani consumers are highly DOGMATIC, not using models is actually a set-back for them. But they remain strong to their principles and have sought out other creative ways to market their product. The most efficient, popular and unique one is them cooking up a different and new story for each and every product they sell. Here are a few examples of their unique marketing strategy from their latest collection:

1. GULRUKH

12

STORY: A seamless blend of deep blue tones with a hint of color blocking to add a unique flavor; a rare blend of tradition and modernity with elaborate gold jacquard woven dupattas.

2. HAPPY HOLIDAYS

STORY:Happiness is packing up your bags for vacation!Don't forget to pack this delicately hand woven jacquard kurta. 3. SUNDAZE

13

STORY: Happiness is a beautiful Sunday morning bike ride to enjoy the breeze and calm that is bound to freshen you up for the day just like this minimal kurta with hi-low hemlines and tie up sleeves, perfect practical wear. Source: https://www.tarzz.com.pk

SECTION 5: MARKETING GOALS AND OBJECTIVES SALES OBJECTIVE There is no physical body or authority which publishes all retailers’ annual sales. Officially and on record, they do not have a rank but Tarzz’s R&D teamalong with a few of their colleagues working in other leading brandsconducted a marketing intelligence survey and collected data from approximately 50 leading brands of Pakistan. They compared their own sales from other competitors in the industry. In the year they launched, they had a market share of 0.5 percent and in the second year they successfully closed at a market share of 1.7 percent which means they grew almost 180 percent, it was a huge achievement for them considering they are fairly new to the market. So naturally, their sales aim is to increase their market share up to at least 5 to 6 percent in the short term and more in the longer term. PROFIT OBJECTIVE They are currently a profitable company and they have concluded through past experiences that the most effective and profitable form of marketing their brand is expanding DIGITALLY. They know any investment done on any of their digital platforms will be profitable for them. They are even planning to shift their target markets in the near future. PRICING OBJECTIVE

14

Tarzz’s target market is reflected in their prices which are quiet similar to Khaddi, Sapphire and J. so they have a similar target market. They do not target high class as they do not have any dress over the price Rs18000. Their pricing range starts from Rs2000 to Rs18000. Their pricing is competitive and they claim that most of the customer who enters their store randomly even they do not know Tarzz’s name don't return back empty handed.

PRODUCT OBJECTIVES They introduced four major categories of clothing in thei LAWN collection namely: ANKAHI, DASTAAN, SILSILA and LAMHA which focuses on specific needs. Every category focuses on a different need and they aim to achieve those needs by marketing their product correctly and designing products that fit perfectly into that need state.

SECTION 6: STP: SEGMENT-TARGET-POSITIONING Segmenting, targeting and positioning (STP) is a broad concept that summarizes and streamlines the process of market segmentation. STP marketing is a three-step approach to building a targeted marketing plan. The processes of segmentation, targeting and positioning are parts of a chronological order for market segmentation. SEGMENTATION Segmentation is the process of dividing a broad consumer or business market, normally consisting of existing and potential customers, into sub-groups of consumers (known as segments) based on some type of shared characteristics Tarzz has divided its segments on the following basis:

SEGMENTATION

Geographical

Demographical

Behavioral

15

Pyschographical

GEOGRAPHIC SEGMENTATION     

World region: Asia Country: Pakistan Cities: All major cities of Pakistan Density: Urban Climate: Hot & dry

DEMOGRAPHIC SEGMENTATION       

Age: 16+ to 40 Gender: Female Family life cycle: Married & Unmarried Occupation: Students, Housewives, Working women Religion: All Race: Asian Nationality: Pakistani

BEHAVIOURAL SEGMENTATION    

Occasion: Different clothes for different occasions Benefits: Quality, style and brand status Loyalty Status: Significantly high Attitude towards brand: Positive & enthusiastic

PSYCHOGRAPHIC SEGMENTATION   

Social class: Middle to Upper class Life style: Modern, traditional Personality: ambitious, confident, bold and gregarious

16

Source: https://www.marketing91.com/4-types-market-segmentation-segment/

TARGETING Targeting is the second stage of the SEGMENT “Target” POSITION (STP) process. After the market has been separated into its segments, the marketer will select a segment or series of segments and 'target' it/them. Resources and effort will be targeted at the segment. The first is the single segment with a single product. Tarzz targets its market on the following basis:

17

PREFERENCES

AGE

TARGETIN G MULTI-CULURE PEOPLE

INCOME LEVEL

AGE TARZZ mainly targets women of age 16-40 of middle and high class for their products. Products are made for women only so women are the target market. Women are the target market as they are the decision maker in the home. INCOME LEVEL On the basis of income level those are targeted which have high level and middle level of income as the prices for products of Tarzz are reasonable and affordable so people from this segment can affordthese products. PREFERENCES Consumer preferences play a vital role in targeting a respective market which is why we chose Lawn because in a country like Pakistan which has a pleasant weather throughout the year, women prefer LAWN fabric over any other clothing fabric. MULTI- CULTURAL PEOPLE Pakistan is one of the most diversified countries in Asia because it has a strong and rich culture, a beautiful set of values and traditions therefore Tarzz offers a variety of products on account of the rich and unique culture of Pakistan.

POSITIONING Pakistan is a country that offers a distinct cultural experience because of its history and strong customs and traditions and of course the people! Tarzz wants to position itself in the consumer’s minds through these ways:

18

TOOLS

POSITIONIN G

PRIC E

QUALIT Y

QUALITY POSITIONING Being in such a competitive and dynamic market, Tarzz never wants to compromise on the quality of the products it has to offer. PRICE POSITIONING They want to position their products as affordable and worth-the-money of the customers. They have reasonable price ranges and do not exceed their set prices. They also try to keep their prices comparatively lower than their competitors; this is on...