Wednesday, June 15, 2011

Raymond Case Study

Objective:
Strategies employed by Raymond to establish itself as a major player in the ready-to-wear men's wear segment.

SWOT Analysis
Strength
• First company to use advertisement to promote its product.
• Articulated brand essence
• Depth and sensibility of product through advertisements.
• World leader in the files and rasps business.
• focus on fashion and strength
Weakness
• Limited as far readymade brands were concerned
• Minimize damages undertook restructuring exercise.
• Failure in the diversification efforts
Opportunities
• Potential for readymade garments in India
• Corporatizing fashion and venturing into women’s wear by the introduction of Be Brand
Threats
• Increase in the competitive pressure.

Initiatives taken by Raymond to strengthen itself in the ready to wear market
• Focussed on repositioning its brand, launching new products and brands and strengthening its distribution networks
• Repositioning park avenue by launching new print and television campaign with tagline “Start Something New”.
• TVC showed young corporates to target the new generation of executives.
• Raymond chose Cuban model for its TVC and shot it in South Africa.
• Advertising Commercial for print media, were shot in New York to attract international audience.
• Launched Manzoni and adopted the tagline “Return of the Roman Empire”.
• Organised a fashion show in 2001 “The Raymond Show 2001”.They used leading TV channel to showcase the innovative designs to the public.
The success of Raymond’s initiatives to restructure itself, launch new brands, expand and streamline distribution and experiment with its advertisements are yet to be seen.

According to my opinion Raymond did the right thing by shifting its focus towards ready-to-wear market despite its core strengths lying in the fabric market
• There is enough scope for the business growth in both fabric and garments.
• Raymond is looking for opportunities overseas and extend its brand lines.
• The company had not exploited the markets potential to the fullest, marketing activities or acquisition of new businesses with a diversified model in the textile segment.
• Talking of business including garments. Before restructuring, textile contributed roughly 55% of turnover. Post restructuring, i.e. garments, worsted fabric and denim is 90%.
• In India, the garment industry is still in a growing phase. Its not a mature business, whereas fabric is.

Future steps to be taken by Raymond to retain its position status can be
• Rather than launching new brands, Raymond should focus on more line extensions (as Park Avenue was extended to men’s toiletries) and enter the premium accessories segment (watches, leather accessories etc.)
• Increase the possibilities for outsourcing.
• Strengthen itself into marketing of its brands.

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