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    Casestudy Analysis On Nalli Silk Sarees

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    sandmanxyz
    Nalli Silk Sarees is a 95 million dollar company founded in 1928 that sells silk sarees and other products. It has 22 retail stores across India but faces increasing competition from other retailers. A key issue is its uniform pricing strategy across stores, which increases costs. The document discusses Nalli's strengths like its brand name, weaknesses like a lack of customer feedback, opportunities like expanding online, and threats like new brands entering the market. It recommends improving Nalli's marketing mix through more competitive pricing, promotions, and addressing issues like limited brand awareness.

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    Casestudy Analysis On Nalli Silk Sarees

    Uploaded by

    sandmanxyz
    446 views8 pages
    Nalli Silk Sarees is a 95 million dollar company founded in 1928 that sells silk sarees and other products. It has 22 retail stores across India but faces increasing competition from other retailers. A key issue is its uniform pricing strategy across stores, which increases costs. The document discusses Nalli's strengths like its brand name, weaknesses like a lack of customer feedback, opportunities like expanding online, and threats like new brands entering the market. It recommends improving Nalli's marketing mix through more competitive pricing, promotions, and addressing issues like limited brand awareness.

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    silk case

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    nallisilksarees-170206135136

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    Nalli Silk Sarees is a 95 million dollar company founded in 1928 that sells silk sarees and other products. It has 22 retail stores across India but faces increasing competition from other retailers. A key issue is its uniform pricing strategy across stores, which increases costs. The document discusses Nalli's strengths like its brand name, weaknesses like a lack of customer feedback, opportunities like expanding online, and threats like new brands entering the market. It recommends improving Nalli's marketing mix through more competitive pricing, promotions, and addressing issues like limited brand awareness.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    446 views8 pages

    Casestudy Analysis On Nalli Silk Sarees

    Uploaded by

    sandmanxyz
    Nalli Silk Sarees is a 95 million dollar company founded in 1928 that sells silk sarees and other products. It has 22 retail stores across India but faces increasing competition from other retailers. A key issue is its uniform pricing strategy across stores, which increases costs. The document discusses Nalli's strengths like its brand name, weaknesses like a lack of customer feedback, opportunities like expanding online, and threats like new brands entering the market. It recommends improving Nalli's marketing mix through more competitive pricing, promotions, and addressing issues like limited brand awareness.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 8
    At a glance
    Powered by AI
    Some of the key takeaways from the document are that Nalli Silk Sarees is a leading retailer of silk sarees in India, founded in 1928, but has been facing increasing competition and changing customer preferences in recent years.

    Some of the challenges faced by Nalli Silk Sarees include increasing competition, shortage of skilled labor, issues with uniform pricing and shelf space allocation, and limited brand awareness among new customer segments.

    The SWOT analysis suggests that Nalli Silk Sarees focus on its strong brand name, imported dye technique, and expand into new product categories and market segments to capitalize on opportunities while addressing weaknesses in advertising and pricing strategies.

    CaseStudy Analysis

    On
    Nalli Silk Sarees

    Submitted to: Submitted by:


    Dr. Arvind Kumar Jain Raghav Agarwal
    Associate Professor (500044376)
    (Department of Marketing) BBA-Retail Management (1st Year)
    Nalli Silk Sarees

    It was founded in 1928 by Dr. Nalli Chinnasamy Chetty. Vice chairman of the
    company was Mr.Ramanth K. Nalli. It has 22 retail stores across the country and
    was supposing to build 12 more retail stores with the funded amount of 25$
    million. It is a 95$ million company.
    It has out done its competitor by being the only player in its segment to have a
    national presence. But over the years the business has become more complex to
    manage because of the increase in the growth of retail stores and the proliferation
    in the number of stock keeping units that had to be managed.
    Nalli was applying a uniform pricing margin for all the products in its stores across
    the country this led to increase in the cost of the product but it didn’t the price of
    its product. As we know that India is the largest producer of silk after china as
    there was two types of silk one was ‘zari’ and another was ‘pure zari’ and nalli was
    the first saree retailers to implement a retun policy as a testimony of the quality of
    its sarres.
    Nalli deals with different product suits which are women wear, men wear, children
    wear, and other products.
    Top Competitors
     Kala Niketan
     Kumaran Silk Sarres
     Roop Kala
     Sheetal Sarees
     Sundari Silks
     Pioneer Embroidery Limited
    Problems Faced By the Nalli Company

     Competition –The Company started facing huge competition from


    large Indian & Multinational Companies who is dealing in this sector.
     Supply Problem- Shortage of labor supply was a major issue in
    weaving industry in India. Young generation weavers are looking for
    stable income and comfortable lifestyle so they are more interested in
    joining software jobs.
     Shelf Space- Shelf Space was similar across all the outlets. It was
    also a problem because shelf space should be made according to the
    living, choice, and likes of the people of that area. If rich society is
    living then they could decrease the low-value products like fabrics and
    dhotis and increase the shelf allocation with traditional wedding
    sarees that have high costing. It is not necessary that same type of
    customers is found everyplace.
     Pricing- The prices of the Kanchipuram silk sarres could range from
    $100 to $ 2000 dollars which means they charge premium from
    customers and in return they provide premium services and the
    competitors were offering at cheap rates. Peoples were not able to
    afford it.
     Limited Brand Awareness- They were not known about the
    products available in the market segment. The stores entertain only
    the social contacts.
     Promotional Strategy- theCompany fails to go for new
    promotional strategy. It only have ‘word of mouth’ publicity and on
    other hand its competitors were aggressively making adervertisment
    and offering huge amount of discount and offers.
    SWOT Analysis

    Strength
     Brand Name - The Biggest strength of a company is its brand name. As
    nalli was enjoying a good amount of monopoly in market with kanchipuram
    silk sarres as they were only the producer of the kanchipuram sarres. They
    were providing pure zari which was increasing the brand value of the
    product.
     Imported Dye -Nalli sarres were only the first to bring the vegetable dye
    which they often have to import from outside. They have taken first mover
    advantage.
     Technology – Nalli sarres have took the first mover advantage in
    technology which was barcode, computer billing system and system
    administration room.
     Trust in Customer -As the company was working in the dynamic
    environment so the firm has to build trust among the people as today there
    are around 60% of brand loyal person.
     Product Range -As competition was increasing so, nalli sarres were
    increasing the number of goods available with him. They were providing
    proper shelf space for the product

    Weakness
     Lack of Feedback – Feedback is one of the important policies in
    marketing as the company is able to consider the preferences and
    thinking of the customer about our product. So, there was no any
    feedback system.
     No offers and discount policies – The Company was not offering
    any types of offers and discount on its product even they know that there
    are many competitors which are offering huge discounts and offers
    especially on the peak season.
     Weak Advertisement –No proper advertisement were followed by
    the company to attract the customer segment. Only ‘word of mouth’
    publicity were done.
     Uniform Pricing –We know that having uniform prices is good the
    company because of the brands loyal it was working but sometimes
    people are not brand loyal easily. So company must reduce the prices of
    its product to attract the customer of lower segment.
    Opportunity
     E-Tailing – In 21th century with evolution of modern technique the
    company can go for its online sales of product and customer can also
    came to know about your product and company.
     Expansion in different areas –The Company can launch or can
    add new products in the market and its timeline. The company can go
    market which is yet not affected by the other player. It can be a type of
    first mover advantage to them.
     Expansion in product line – The Company can launch new product
    in the market and add in their timeline. They can extend their western
    clothes and traditional dress to boost up their sales because we can say,
    that today’s youth focus is more on western outfit.
    Threats
     New Brands - Many new saree brands are coming in the market
    with new innovative colors, designs and latest techniques. This is a
    threat for the company as the business can turn into failure if any new
    saree brands occupy the large market share in the market.
     Regional Market Competition - Many people in villages are
    still doing weaver jobs and work in cottage industry. They can provide
    raw materials to other companies at cheaper rates. So, there may be
    chances that company may face regional market competition.
     Matching up with the Trend - People nowadays are shifted
    more towards western trends as it becoming fashion for today’s
    generation. The company is not matching up with the trends. This can
    soon results in closure of traditional market and expand of western
    clothes market.

    Porter’s Five Force Model

    Threats of new Entrants


     No Barrier for new Entry
     New Competitors
     Trend of new products
     Reduction in cost
     New Technology

    Bargaining power of Nalli Silk Sarees Bargaining power of


    supplier customers
    Rivalry industry
     Less concentrated  Individual buyer
    suppliers  Low customer loyalty  Some consumer are
     Large number of  Unique characters and not price sensitive
    potential supplier to structure  High substitute
    exchange them  E-tailing  No offer and
     Labor supply  Introduction of Dye discount on lot
     Cost of raw materials  Technology purchase

    Threats of Substitute Product


     High threat of substitute
     Brand image and recognition
     Entrance of new products in
    market
    Marketing Mix
    The company need to do marketing for its products because from
    initial time the customers were most of social contacts and the
    company was also not able to attract new customer segment. It
    needs to adopt aggressive growth strategies which are adopted by
    its competitors. The company should start spending on
    advertisement so as to gather more customers towards their
    products. Other than word-of-mouth, Advertisements can help to
    remove the problem of limited brand awareness. The company
    should start offering some sort of discounts on their products as to
    beat their competitors because competitors are giving huge
    discounts on peak buying seasons. The company can give
    discounts to their special customers for being brand loyal and can
    also offer discounts to new customers on special occasions like
    Diwali, Karvachauth, and Holi etc.
    Product Mix
    Price – As price was the main factor of the company which was
    troubling them in sales as they have considered premium prices for
    Kanchipuramn silk sarres which was not affordable by everyone.
    And respect to that they were providing services to the people .
    Promotion –As we know that promotion plays an important role
    in every company to boost their sales but here, company was not
    actively participating inpromotionactivities and using ‘word- of –
    mouth’ publicity.
    Product –They were very unique in their product as they were
    selling Kanchipuram Silk Sarres which they do not have any
    competitors.
    Packaging- With the charge of high prices for commodities they
    were giving premium services which were in turn related to good
    packaging criteria for them.

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