Nalli Silk Saree Was Established in 1928

CASE ANALYSIS

NAL L I SI L K SAR SAREES EES

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Prof . Ganes Ganesh Kh anna Dr .Taruna Gautam Gautam Prof.Amit Kumar

Rahul Yadav Yadav PGDM 2014 201401 0109 09

ACKNOWLEDGEMENT

It is great pleasure to express my sense of gratitude to, Prof. Ganesh Khanna, Dr. Taruna Gautam and Prof.Amit Kumar without whose valuable guidance generous help and constant enthusiastic inspiration this report would have never been a success. We thank Sir and Madam for giving us all the valuable inputs all along and guiding us to once again explore some part of Retail sector and process of research methodology.

Introduction  Nalli silk sari was established in 1928 by Dr.Nalli Kuppusamy chetty, the Nalli Group is a family owned and operated business that retailed Indian ethnic wear. This company had enjoyed impressive growth with $95 million turnover, 22 store retail footprints, had outdone its competitors by being the only player in its segment to have a national presence.

Problem faced by Nalli Silk Saree In 2011, Kuppusamy chairman of Nalli Silk Saree felt that market and the competitive landscape were changing .Business become more complex to manage because of the growth in number of stores, the increase in the product categories etc that has to be managed. With changing dynamics in the Indian apparel market, the company started to face intense competition from small and large Indian and foreign retailers.

Steps taken by Nalli Silk Saree  Nalli Group has announced $25 million expansion plan and proposed the opening of 12 new stores. In order to increase its own competitiveness Nalli Group need to revisit its pricing stratergy, merchandising process and product assortment.

Nalli Silk Sarees : Quality and Integrity Chinnansamy a master weaver from Kanchipuram, worked continuously for days to weaven a saree in half in time it would normally take in order to honor the deadline given by the customer. Chinnansamy grandson added, “For him customers mattered most and he was willing to take great pains for them”. His emphasis on innovation, customer centric practices, quality and honesty across the retail stores .costumer also believes on its quality as it proven at the time of worldwar 2 it was the only store opened in world war 2. Nalli Group become the first saree retailer to use high quality chemical dyes even they become the first textile retailer in India to use bar codes and computers for their billings and to label it sarees as a pure silk, pure zari, tested zari. They were open to adopting new technology; they also make decision not to install security scanners in their stores to avoid embarrassment for their customers in the event of a false alarm. he believe respecting a customer’s honor matters more to us than his money.

Nalli Silk Sarees : Business Principles Retail Pricing Strategy It believed in uniform price strategy across the country. As it results in uniform mark up over the cost of the product. Competitors pricing and variation in customer does not affect his strategy.

Retail portfolio Strategy In this principle it shows commitment of one shop stop for ethnic wear. As it offered product for fast moving products (silk and cotton sarees). Slow moving product (linen and dhoti) with this they also offer kanchipuram silk sarees.

The Real estate strategy  Nalli stores were generally situated in housing properties and so they did experiment by opening new stores in malls as retail stores.mumbai is one of the costliest real estate provider and nalli owned 2 store there by paying a huge amount as rent. Even then nalli made sure not to compromise on customer service. They made all necessary arrangements for the customers and their family.

The shelf space management The amount of shelf space allocated to a product category and to each product within the categories is shelf space. The nalli made it clear to manage the shelf space to bring more variety. this indirectly would attract more of customers. They tiered to give space to all variety of saris. They succeed in increasing the range of designers and thus winning over the competitors.

Vendor Management They made a strategy to make a close chain of vendors. In 2007 they had around 5000 dedicated vendors who supplied to nalli. They made relation with their vendors by consulting them for ideas of locations priorities etc. This seemed an important decision to form a company of good vendors in all areas.

Nalli ‘s competitor In 2010 the textile market was accounting for 15% of the Indian industrial production. In this state nalli silk sarees was experiencing the national presence. There many other names associated with silk saree but the nalli silk sarees presence was very strong in the market . in south and Mumbai there were many competitors such as kumaran silk, pothy, roop kala , sheetall sarees. There were having the same level and were neck to neck competitor for Nalli sarees. The marketing strategy for Nalli was very straight no show off. They simply depended on word of mouth. They did not give discounts in sales season. The only thing that was there sword was the quality, design and comfortable service for their customers.

Future Prospective & Conclusion Seeing the achievements of the Nalli sarees we can come to the conclusion that it has been a national brand yet the competiveness of the market made it suffer. The silk prices were rising along with the price of the precious metals. The challenges like shortage of the material as there vendors were shifting to other location. Now this was the time to rethink about the pricing, advertising and location. Kuppuswamy was focusing on the silk saree segments. There were very much focused on the brand that they were giving and thus to make their sarees a valuable brand they wondered to charge premium on it. The ideas were good but still he was not sure what the result can be. Will it be a success so he decided to discuss it with his granddaughter who was  pursuing mba from a very. The pricing strategy could also make the nalli sarees a hit or can even fade it from the competitors ranking.