A strategic Shuffle – Hypothetical caselet
When Mr. Sankara Pillai gave a thought to enter into Indian market .he decided to come with Silco who procures the RM from different textile mills and do stitching on standard formats. On the other hand VPL did it another way round, they buy the ready-made clothes and sell them as branded one. Two months back luxuri started marketing activity with an event endorsed by Saif Ali khan and introduced two new brands; luxuri classic and luxuri premium. VPL also emphasized on excellent packaging and also promoted their clothing on website ( www.Luxuri.com) .
Total market is of 1000 people with 40% premium (SEC-A) and 60% middle class (SEC-B) consumers. Silco has nearly 60% market penetration whereas Luxuri stands at 10% as its market size. The recent market shuffle rooted the worries in the mind of Mr. Sankara Pillai. With overall effect on Luxuri sales, Luxuri Classic is able to acquire 20 % new consumers and Luxuri Premium attracted 30 % of Silco’s consumers. VPL also lost 3% of consumers to Silco. Mr. Sankara Pillai is worried about the next happening of market.
How can you help Mr. Pillai?
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