Question no1: “S & A ; R has taken a hazard in come ining a market that is big. but offeres small flexibleness in footings of monetary value and concern eenvironment” . Discuss.
Entering Indian market was rather a challenge for Simon non merely converting the board but taking up the duty to personally help the whole procedure of franchising in India was a major challenge in his calling. Indian market is celebrated for its “value buying” behaviour ; and S & A ; R is a trade name known for its high quality and value for money all around the universe. Unfortunately in India nevertheless the duties and rigorous ordinance for direct foreign investing has been major hurdle in offering low monetary values. Though the launch of the two franchises have been a immense success but Simon believes inquiring for premium monetary values for the merchandises is shortly traveling to turn this net income into long term loss. He believes that every bit shortly as the freshness factor wears off the clients will choose back to the value for money purchasing behaviour.
Question no. 2: This may be the right clip to come in India. But has S & A ; R positioned its trade name right?
The celebrations. such as Christmas and Diwali has been the best clip for Smith and Robin to take over the market for increased gross revenues. This helps their two stores’ initial stocks to be sold out in three yearss level.
Since while positioning the trade name. it is necessary for the organisation to place a market niche for a trade name. merchandise or service utilizing traditional selling arrangement schemes ( i. e. monetary value. publicity. distribution. packaging. and competition ) . S & A ; R is good cognizant of their absurd monetary values. but that finally makes Smith and Robin a premium trade name. one with aspirational fixingss. This made their direct rivals turn into the dress shops. They were besides perceives as a high terminal value for money trade name.
Question no. 3: Do you believe the current retail environment in India is contributing for the entry of a high-profile foreign trade name? If yes – why? If non. province the grounds clearly.
The current retail environment in India is non contributing for the entry of a high-profile foreign trade name. Indian clients are going more self cognizant and witting of the market tendencies. Therefore. station modernism along side the globalisation has given the Indian market an border to their clients. Indian economic system has been raising well due to their ain merchandises and fabrication workss. Despite that companies such as S & A ; R bask a trade name equity in the Indian markets. the freshness factor environing S & A ; R’s launch wears off. Besides. since these trade names have to pay high duties. the trade names offer premium monetary values. which are questionable by the clients. With such trade names. their franchises would non be ready to demo any involvement in spread outing a loss-making operation. Keeping in head all these factors. one besides has to retrieve the bing competition. A gray market already does a thriving concern in both branded merchandises smuggled into the state. and substitute 1s.
