Answer to Question #189511 in Management for Kushal lakhnai

Question

Mr. Ramesh of Unique Industries is contemplating entering the men’s top-end shirts category. The company already has a brand “CLINGERS” in the middle segment (₹350-700). Having got the volumes, Mr. Ramesh now wants to play the value game and enter the top end (₹700+) category. He knows there are some formidable brands like Farow etc. that will make life extremely difficult for Unique Industries. However, it has one of the best retail networks in the country. They have their own factory, which ensures regular quality supply. They are the pioneers of branded shirts in India. Mr. Ramesh has decided to keep the brand name as “Clingers Gold”. He has decided to allocate ₹10 crores for sales promotion and advertising budget. Mr. Ramesh has decided to keep the same brand name “CLINGERS” to leverage the success of the brand name to the two new categories.

Which factors you think needs to be studied before making such entry in the market

Answer 1

Answer

Before launching and introducing his new products to the market, Mr. Ramesh should consider several important factors so as to lower chances of facing critical challenges. Some of the factors that should be studied before making such an entry are identifying any dynamics that may affect the business, identifying opportunities and potential threats and creating a baseline for future strategy. Further, if the unique will pay more than the previous existing products, then it is quite common or general to expect a better superiority of the products.