Addons

ADDONS: TARGETING IMPULSE 1. Would you buy lifestyle and fashion accessories at Addons? Why or why not: REASON FOR VISITING OR NOT VISITING ADDONS: Arguments in favour of visiting  

Addons Fashion Accessories Exclusively male store as well

Arguments against visiting Addons 

Not more than color variants

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as Woman store Availability of high fashion

per design Less number of designs in

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accessories under one roof Design studios in mumbai Wider product mix Offers discounts and combo

jewelry No formal communication strategy

deals

2. What are the factors / trends in the Indian marketplace that may impact growth in this sector? How does Addons compare with the competitive offerings in the Indian marketplace? Customer related Factors: Socio-economic trends:  The increasing number of global brands coming in india impacts this sector  The “now and here” mentality of people which inspires them to spend more  Role of television to make people believe that looking up to date is very important

 Changed perception of people towards fashion Demographic and Psychographic trends  Demographic trends like rise in income level,  increase in number of working women,  Feeling of being brand conscious Market related Factors: COMPETITIVE LANDSCAPE for ADDONS: Criteria

Accessorize 

Product assortment

Target customer

Store presence

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High fashion jewelry Hair accessories Hosiery Beach accessories Bridal accessories Stationary Young and fashion conscious women 400 monsoon and accessorize store in UK

Clare's  

accessories silver and gold plated jewelry

Stand-alone stores in local markets'  

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 

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Teens to young adults of 25 years More than 3,400 stores

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Jewelry Fashion and hair accessories Perfumes and fragrances Female consumer Exclusively mens in local market or in a residential

Kiosks in big malls

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Colorful artificial jewelry Hair accessories

Addons

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Buying the impulsive

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busy street or mall

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men’s accessories and men’s wear Exclusively male store Fashion conscious urban Indian male 80 stores in Tier 2 and tier 3 cities

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and more than 1000 stores across 50 countries 21 stores in major metropolitans cities

across 36 countries

 Retail structure and format

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Strong and well structured online presence

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Featuredfront section for 20-25years Back section for teenagers collection

area

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Mom and pop type stores Home establishment s in local market or in a residential area

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Open air

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 Store size

Price range

1500 to 3000 sq

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feet area

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INR495 to INR4,500

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1,000 square feet area

INR199 to INR 2,500

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100 to 500 square feet area Some larger stores

INR 100 to INR5,000

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50 to 75 square feet

INR50 to INR 500

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200 to 250 square feet area for men’s section 250 to 400 square feet area for women’s section INR499 to INR4,999 for men’s

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 Special servcies

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LED lighting for latest collection

  Store promotions and advertising

Regular mid-sale season and end of sale season before putting fresh stock on display

Staff were trained to pierce ear with the studex piercing gun Continuou s promotion s like buy one get one free and half priced products

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Polishing jewelry or repairing jewelry,bags

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No store promotions

products INR99 to INR3799 for women’s products

Good ambience ,lightning Temporary canopied roofs and lightning arrangement

Constant change in display and placement of products

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Discount offers

POSITIONING MAP OF ADDONS VS OTHERS: PLOT: CL (Clarie’s); AC (Accessorize); AO (Addons); RB (Regional Brands); KLM (Kiosk in Mall)&KLS (Kiosk in High Street)

AC CL

LOW

Addons

QUALITY

HIGH QUALITY

Kiosk in mall RB Kiosk in high street LOCAL / INDIA

3. What is the typical consumer buying process for a lifestyle and fashion accessories product?

Contemplative buying: a well-thought-out process that is more tranquil and less action-oriented than impulse buying Impulse buying: Not consciously planned but arising immediately upon confrontation with a certain stimulus, either external & internal. Fashion-oriented impulse buying refers to a person’s awareness or perception of fassionability and is attributed to a stimulus provided by an innovative style or design

CONTEMPLATIVE VS IMPULSE BUYING BEHAVIOR: Buying Stage Need Recognition Information Search Evaluation of Alternatives / Attributes

Purchase

Post Purchase

Impulse Buying AT the time of encounter with the product Only among the given options that are provided It is stimulus driven , generally due to the environment or On the basis of emotions and likings and enthusiasm, The main is to purchase the product, and not achieve the economic purchase, Discounts are not sought once the decision is made

Contemplative Buying

All the rational thinking and comparisons are done post purchase

Only the value for money in the product is evaluated post purchase

Actual need ,preplanned Done before visiting the store Much practical approach, done keeping in mind all the factors like income, value for money Even if the purchase decision is made it may change on the point of bargaining. Or if the after sale service or the guarantee warrantee terms are unfulfilled

Internal and External motivators of an impulse purchase

Internal and External motivators of an impulse purchase Internal Motivators Nature, personality ,income, perception of

External Motivators the store location, size, physical aspects,

the buyer

convenience, store patronage, ventilation, attractive layouts, persuasive shop

His state of mind while purchasing

assistance, credit facilities, discounts occasion The person accompanying him

4. What is Addons’ business model Leadership and Management team  Business is managed by family 

Asish Saboo, Commerce graduate takes care of Men’s vertical

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Shilpa Saboo takes care of Other verticals

The ownership mode

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The ownership mode  Direct retailing  Franchising model  Exclusive stores  SIS model

Marketing mix    

Product- own brand and other brands Foreign as well as indian Price –for men-699to4999 Women-99-3799 Place-60 outlets in india in metro,tier 1,tier 2 cities Majorly in malls or High streets Promotion- in store promotion,by sending messages to its cutomers, discounts, season end sale

5. Brand loyalty or store loyalty – what is the key to a stable and sustainable market presence in this category Brand Loyalty  

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According to me both store loyalty and loyalty to brands is important. Wholesalers and brand representatives need to recognize that they can support retailers in helping promote their brand through product knowledge and other selling tips. This can increase brand awareness and ultimately help build brand loyalty. Finally, understanding how consumers decide on their purchases can influence how you can support them. Whether store loyal, brand loyal or a new customer with no loyalty established yet, each consumer can teach us a lesson as retail and wholesale professionals. Making sure to stay in touch with who your consumers are can add value to your business, whether you are a store or brand. For ADDONS they have male accessories in their outlets of different brands while in case of female accessories they had of their own brand

6. Addons aspires to reach a 500 retail presence by 2018-19. What advice do you have for Singhee regarding this retail strategy STRATEGIC OPPPORTUNITIES FOR ADDONS BY USING ANSOFF’S GROWTH MATRIX: In order to achieve 500 stores by 2020 we have to follow below measures Growth Options Market Penetration Market Expansion Product Development

Line of Action Add more stores in Tier 1 cities in untapped areas Add aggressively stores in Tier 2/Tier 3 because of demographic dividends Develop new brands in both men and women category as it is the main source due to the

Diversification

margins Related Diversification in apparel and accessories segment, but new markets approach with caution as capital involved is high

ADDONS' RETAIL STRATEGY: CURRENT AND SUGGESTED: Retail element Current Suggested Target segment Age group – Teenage and 20-30 As demographics changes in future Add-on should concentrate on age group more than 30 also Retail formats

SIS, EBO’s, Family owned SIS Women stores preferably on SIS, Family owned SIS Men Stores preferably on EBO’s, Family owned SIS Retail locations Tier 2, 3 Cities Same approach with adding locations Store size 250 sq. ft.approx. Need to Increase to 750 as competing brands are quiet huge Category mix Adequate as per current scenarios Scale up the categories and use economies of scale in future Product development and design Only NPD is observed in women Should try to create products of own brand for men also Brand logo and design Logo available Make it more advertised Branded and unbranded assortment Not followed Prescribing the same Price range • •

INR499 to INR4,999 for men’s products INR99 to INR3799 for women’s products INR 49-4999 for Men INR 49-4999 for Women

Promotions Conservative (Only In store ) Need to build brand image as own product business need to increase Store design and layout In stores are not spacious Try to make more classified segments