Better returns in the indian market characteristics

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better returns in the Indian market Characteristics of focus group – females Apart from the above qualities of males, Metro having a better traction with women would require less new customer acquisition Women group would also be target for purchase for their spouses Overall Growth Strategy Short Term objectives – 1. Make a good homepage!!!! 2. Reach turnover of 100 crores (based on no of stores, we assess Metro’s current turnover to be between 60 to 70 crores) 3. Double the no of styles launched every year Medium Term Objectives – 1. Strive to attain a bottom-line margin of over 5% with a top-line YoY growth of double the industry growth with a focused split of growth between same stores sales and new stores sales 2. Increase the no of own/franchisee stores to 100 (currently at 66) 3. Reduce the brand clutter
4. Reduce no of sales/discount offers – focus on inducing purchase for style rather than discount sales or any other factor 5. Invest in R&D in design Market Harvesting Strategy – Current Products New Products Current Markets Market Penetration (focus on women) - New Markets Market Development (focus on men & women) - 1. Market Penetration with focus on women 2. Market Development with focus on men & women with low brand commitment Overall Metro should embark on selective specialization with focus on style as the centre of product attribute. Rationale for the above strategy – Metro cannot compete on distribution with market leaders Bata and Liberty already have alliance with Reliance and Pantaloon Retail Metro has a low brand recall & commitment. New customer acquisition will be function of low brand commitment in consumers for other brands, rather than Metro’s ability to attract and retain customers Metro has no production facility of its own. Given its existing structure, it is most suited to fight on style & design which changes every season than comfort or durability which would require fixed investments in better technologies. Compared to that launching a new style entails lower costs. By focusing in this fashion, Metro negates the size and capital advantage that the dominant players have
With the larger players vertically integrated and well entrenched with distribution networks in the market, Metro has to focus on competing on variable costs advantages and avoid situations which will demand fixed costs commitments. At the generic strategy level Metro cannot follow low cost strategy with outsourced production. It has to focus on selective differentiation build around ‘style’ as its strength Dealing with Competition – Market Follower & Market Challenger Metro should follow a mix of market follower & challenger strategy. It should invest in developing strengths around style prediction and style imitation of market leaders. Its focus should be to outsmart the bigger players on style.

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