XLRI: RINCIPLES OF MARKETING
CHUMBAK An Emerging Lifestyle Brand
MEMBERS Sh!*+! A0!( B'su S'&r!$' S'rosh M'"t'
AIS NUMBER RB ,-./. RB ,-.12 RB ,-./3 RB ,-.,4
CHUMBAK INTRODUCTION: The Project stu!es the e"er#e$ce o% the &r'$ Chu"&'( '$ !ts "'r(et!$# str'te#!es)
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After travelling for years and collecting souvenirs from dierent parts of the orld! "ive# $ra%ha#ar and &hu%hra Chadda realised that 'ndia has very little to oer its visitors in terms of souvenirs that represents the vi%rant country in its true colours( )hat*s hen the hus%and and ife duo decided to launch Chum%a# in 2+,+ and give a slice of 'ndia to its visitors %y adding a %it of -uir#iness and humour to the 'ndian souvenir mar#et( )hey ere a little %ored of the usual mar%le )a./Mahal replicas and handicrafts that ere %ecoming the only option and e thought travellers deserved
options
that
ere
hip
and
still
represented
'ndia(
After
understanding the groth and potential of the mar#et! their passion drove them to sell their on apartment for 0s 1+ la#h to use it as a seed investment to launch their rst ever product line hich as 3ridge magnets ith an auto/ric#sha as their rst proto/model ( 't also inspired them to name their %rand Chum%a#! hich means magnet in Hindi(
THE 5OURNE6: Chu"&'(7 8h!ch h' r'!se 9/ "!**!o$ !$ Ser!es A %u$!$# %ro" 0e$ture c'+!t'* r" See%u$ !$ /.,/7 rece!0e Ser!es B %u$!$# !$ M'; /.,1 %ro" +r!0'te e3 c'te#or!es7 8!th 1..?4.. +roucts7 "'(e Chu"&'( '$ u$+'r'**e*e 0e$ture) )he venture operates out of a spacious studio that houses its o4ce and arehouse( $ra%ha#ar and Chadda realised aorda%le! ell/designed and crafted products that could %e used as accessories and gift items ere in demand( 5hile a variety of such products ere availa%le a%road! in 'ndia! %uying a memento as restricted to options such as $ashmina shals! mar%le miniatures of the )a./Mahal or %rass elephants( CHUMBAK: A$ E"er#!$# L!%est;*e Br'$
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Bet8ee$ /.,. '$ /.,>7 Chu"&'( so* +roucts o$*!$e '$ throu#h !str!&ut!o$ ( 'n 7uly 2+,6! it set up its rst store in Bangalore( &eeing the idea of having its on stores or#ing! the company set up a%out 2+ through the ne8t seven months(
PRODUCT CATEGOR6: 9ame a lifestyle product / %ags! phone covers! #ey chains! allets! etc / that are colorful and attractive centered around e8traordinarily designed and crafted products! including
apparel and footear! %ags and allets!
souvenirs! #ey chains and .eellery( 'ts range includes phone covers and a uni-ue :histle charm*! a fun#y %racelet( &ome of Chum%a#*s most popular items include an i$hone case ith a motif of the u%i-uitous 'ndian auto/ ric#sha! and coee mugs imprinted ith daaru ;li-uor< %ottles of all shapes! si=es and colors(
PRICING: 5ith the ne products coming a%oard! the average price si=e for Chum%a# goes up from 0s >++ to 0s ,?++ on an average(
MARKET COMPETITIONS: Chum%a#! hoever! is not the only company to sell 'ndian chic ithin the country or a%road( 'ts competitors include @elhi/%ased Mooch N'h! Toh
Kuch N'h!! hich ma#es moustache/themed #nic#/#nac#s! and Mum%ai/ %ased I$!' C!rcus Ret'!* founded %y fashion designer Krsna Mehta( And to somre e8tent traditional 0etailers li#e Bom%ay &tore hich has had the upper hand in Bric# and Mortar &tore( )he California/%ased I$c!+!o Tech$o*o#!es! hich ma#es high/end mo%ile accessories! also manufactures 'ndia/themed designs(
STORE FORMAT: CHUMBAK: A$ E"er#!$# L!%est;*e Br'$
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Currently! it has 2, e8clusive outlets in , 'ndian cities including Mum%ai! @elhi and Chennai! and its products retail at a%out + multi/%rand stores( $ra%ha#ar ;6< and Chadda ;61< plan to set up another ?+/+ outlets! including #ios#ssmall/format stores up to 2++ s- ft in si=ethis scal year( )he #ios#s and stores vary in si=e from ,?+ s- ft ;hen Chum%a#*s rst outlet opened at 3orum Mall in Bangalore< to 2?+ s- ft in $une*s $hoeni8 Mar#et City( 't also has an >++/,!+++ s- ft outlet at 9e @elhi airport*s )6 terminal! and ill soon %e opening a 2!++ s- ft/store in Bangalore(
MARKET STRATEG6: )he company already sells in a%out a ,++ stores in #itsch/loving 7apan through a partnership ith 7apanese handicrafts distri%utor Amina Collection( 't also e8ports to the U&! the UK! Australia and the Middle East! including the "irgin Megastore in @u%ai! here Chum%a#*s phone and laptop cases are availa%le( It h's '*so &e#u$ t'*(s 8!th 0'r!ous @&!#?&o= ret'!*ers
such 's A$thro+o*o#!es '$ P!er , I"+orts !$ the US to !$c*ue !ts I$!'?the"e sou0e$!rs !$ c'te#or!es *!(e ho"e ecor '$ '++'re* ( )he company no also sells its products in 7apan and 5est Asia(
A$ !"+ort'$t +'rt o% the str'te#; !s to &u!* ' stro$# tech$o*o#; &'c(e$ '$ $ 8';s to ou&*e the o$*!$e sh're o% re0e$ue7 8h!ch curre$t*; st'$s 't ,/?,4 +erce$t7 8h!*e the rest co"es %ro" &r!c(? '$?"ort'r s'*es) Chum%a# says it is registering '&out >.. +er ce$t ;e'r?o$?;e'r #ro8th (
The h;&r! "oe* ? o$*!$e7 's 8e** 's o!$e +rese$ce ? h's '!e the co"+'$;(
CHUMBAK: A$ E"er#!$# L!%est;*e Br'$
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2? of online revenue comes from 3ace%oo#! ith a very high degree of repeat purchases among $age fans! that is! ? times 0D' on total advertising spent on 3ace%oo#(
>.?1. o% 8e&s!te tr'c co"es %ro" F'ce&oo() Chu"&'( h's o$*; D!#!t'* M'r(et!$# Bu#et '$ s+e$s u+ to ,4? /. *'(hs o$ F'ce&oo( +er ;e'r) According to data from 3ace%oo#! Chum%a# generates 6? of its online revenue via 3ace%oo# 6> of its e%site tra4c too is from 3ace%oo# Ads( Ma.ority of the digital mar#eting %udget is spent on 3B! hile the rest is spent on advertising on Foogle using ad ords! display and search ads( Chum%a# also does a lot of videos on 'nstagram oing to the nature of our products( 9o! it ants to increase the contri%ution of its online sales to its overall earnings to at least 6+ per cent and is! therefore! focusing on various technological platforms( )he %rand has gron considera%ly in the past to/three years( )hey have %een very active on social media( I$ %'ct7 the; 8ere o$e o% the rst
&r'$s !$ I$!' to #et ' #*o&'* F'ce&oo( c'se stu;) A*so7 the; 8ere o$e o% the three #*o&'* co"+'$!es %e'ture 's +'rt o% Goo#*es #*o&'* e$tre+re$eur stu;) Fro" ' t8o?"e"&er te'"7 Chu"&'( $o8 h's ' 2.?"e"&er st') Its stores h'0e 3. '!t!o$'* "e"&ers) STRATEG6: A) ADERTISING: ATL: A&o0e the L!$e ,( Gou)u%e CHUMBAK: A$ E"er#!$# L!%est;*e Br'$
2( $rint 6( $oint of sales e8hi%itions and #ios#s 1( &ocial Media
BTL: Be*o8 the L!$e ,( &tore $romotions depending on the location 2( Cross Brand $romotions 6( "isual Merchandising for enhancing Customer E8perience 1( Customer Loyalty Cards
B) S'*es Pro"ot!o$: ,( Coupons on com%ination product 2( @evising tools 0e-uirements
to
launch
promotions
%ased
on
the
channel
C) I$ter'ct!0e M'r(et!$#: ,( Customi=ed products 2( Mo%ile App 6( Kios#s at airports ith interactive %anners
CUSTOMER SEGMENT: Ur%an 'ndian! ho can access internet and love #itsch product are the %asic segments that the %rand caters too( )he customer group %asically ,>/6? years old and are students or young or#ing class ith a very competitive and aorda%le pricing( Chum%a# started %ecause Chadda felt 'ndia needed %etter souvenirs( But along the ay she discovered that if a tourist anted a souvenir! a pashmina shal ould %e a novelty as ell( 't daned on her that it as not only tourists that ere %uyers of Chum%a#Is products! %ut young professionals in their 2+s and 6+s ho anted to see :theirI 'ndia in a -uir#y style( &o from souvenir! it ent on to sell lifestyle products( CHUMBAK: A$ E"er#!$# L!%est;*e Br'$
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CONCLUSION: )he founders plan to strengthen the startup*s ecommerce division! and more than -uadruple their e8isting retail presence( )hey ill not only e8pand the company*s footprint in Bangalore and other 'ndian cities! %ut also go to international mar#ets( )hey ill no cater to the much larger lifestyle segment ith their apparel and home collection( )hey have revamped their entire on/line e% store #eeping in mind the introduction of Apparel as a Category(
CHALLENGES THE6 MIGHT FACE: 5ith gross margins varying across categories! Chu"&'( !s e;e!$# '$$u'*
re0e$ue o% Rs 1.. crore !$ the $e=t three to %our ;e'rs) I$ ' "'r(et *!(e I$!'7 se**!$# &oth !$ the o$*!$e '$ o!$e s+'ce 8ou* &e the &est o+t!o$) )he gifting and souvenir sector is going to hot up! and e can e8pect a lot of action here in the ne8t couple of years( 't needs to %e ary of competition as many more such %rands are emerging daily ho provide something ne plus they need to capture the untouched mar#et of small tons and customers ho are not on social media as they have focused their entire mar#eting via social media( )he challenges of a strong online and oine presence are dierent in terms of understanding demand and providing for all channels(
The; $ee to %ocus $ot o$*; o$ $e8 custo"ers &ut to "'(e cre'te '$ !"+'ct o$ the e=!st!$# custo"ers so th't the; 're *o;'* to the &r'$ r'ther th'$ %ocus!$# o$ #ross +rot'&!*!t; '$ %or#ett!$# '** '&out custo"er *!%et!"e 0'*ue)
CHUMBAK: A$ E"er#!$# L!%est;*e Br'$
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A stro$# tech$o*o#!c'* '$ !$0e$tor; "'$'#e"e$t !s re
There !s ' $ee to co$st'$t*; oer so"eth!$# $e8 !$ orer to (ee+ the!r %oot r" !$ the "'r(et 's $e8 &r'$s 're co$st'$t*; e"er#!$# 's #oo +*';ers *!(e H'++!*; U$"'rr!e) The re'*!t; !s "'$; &r'$s 8!** co$t!$ue to use the!r !rect?to? co$su"er s!te 's ' #*or!e orer %or" %or ;e'rs to co"e) But the $e=t rou$ '$ 'r#u'&*; the &est o% the curre$t rou$ o% &r'$ "'r(et!$# '**?st'rs u$erst'$s the (e; to #ro8th !s us!$# the!r o$*!$e +rese$ce to 'ttr'ct $e8 custo"ers '$ th't h's &ee$ &est u$erstoo &; CHUMBAK) The %u$'"e$t'* !ere$ce &et8ee$ &oth c'"+s !s ho8 ' &r'$ '++ro'ches e?co""erce) Does o$*!$e store e=!st to c'ter to curre$t &r'$ '0oc'tes !ts su+er!or!t;7 or shou* !t se** the &r'$ !$ ' 8'; th't 'c?1J2
CHUMBAK: A$ E"er#!$# L!%est;*e Br'$
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CHUMBAK: A$ E"er#!$# L!%est;*e Br'$
