Answer to Question #195220 in Management for Heather Creed

Question

Mr. Ramesh now wants to play the value game and enter the top end (₹700+) category.But there are certain advantages which Unique Industries enjoys. 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. Unique Industries is simultaneously entering the readymade trousers market and shoes market. Mr. Ramesh has decided to keep the same brand name “CLINGERS” to leverage the success of the brand name to the two new categories. a. Do you think the brand name “Clingers Gold” is right for the top end segment? Justify your answer. b. Which factors you think needs to be studied before making such entry in the market?

Answer 1

a) I think the brand name “Clingers Gold” will be right for the top end segment, because the business has the potential to develop and expand its market in the middle sector, changing its name would have a significant impact. As a result, they can keep the brand name and expand on it in the top section.

b)

·        Market or Demand- He must understand the product's demand and market size. This will include the expected profit margins and growth opportunities.

·        Start-up Costs- He will have to figure out how much it would cost to set up and run the company effectively.

·        Capital and Finance- This refers to the funds that he will borrow as well as the capital that he can introduce from his investments.

·        Competition- In order to stay in the market for a long time, he must understand his rivals and what they are doing.

·        Examine various and better ways to defeat the competition using your knowledge or expertise.