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Contents
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EXECUTIVE SUMMARY.........................................................................................................................................................2
1.1 COMPANY PROFILE – ODEL PLC...................................................................................................................................3
1.2 Market attractiveness.............................................................................................................................................................5
2 Market Entry Strategies............................................................................................................................................................7
2.1 Piggy back Strategy...............................................................................................................................................................7
2.3 Market entry cost...................................................................................................................................................................9
2.4 Market Expansion strategy....................................................................................................................................................9
3.Cultural and regulatory barriers..............................................................................................................................................10
Task 4.........................................................................................................................................................................................13
4.0 Standardization / Adaptation...............................................................................................................................................13
Task 5.........................................................................................................................................................................................15
5.1 Target audience....................................................................................................................................................................15
5.2 Race Model..........................................................................................................................................................................15

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EXECUTIVE SUMMARY
ODEL is a Sri Lankan fashion brand comes with a 30 years of brand loyalty and ODEL gave the
first department store experience for Sri Lankan customers. As a brand ODEL is only operating
in Sri Lanka but quality wise ODEL is maintaining the international brand’s quality in their
Private labels. It’s a good opportunity for ODEL to launch the brand internationally.

China, USA and India are the main counties that have the apparel monopoly and Fashion brands
popularity. Although is a red ocean for textile brands, ODEL have a big market opening that
quality will be appreciated. ODEL can’t reach the market with own brand stores due to
regulations and high cost. Also ODEL international marketing strategy will the cost leadership.
So it is important to do the productions in low cost. Sri Lanka has trade agreements with China
and India that export will be encouraged by the government and this opportunity can be used and
manufacture goods in Sri Lanka and sell in China, India and USA for low price points.

Piggy back method will be used in local medium and small scale fashion retail shops in these
countries where they have multiple brands including international brands. ODEL reach to these
location consignment payments basic and use Price points and Same international brand quality
as the competitive advantage for competing with international brands. Market share can be
increased with time and ODEL can make a long term strategy as entry cost will be less. Since the
business starting with small shops, no mass marking campaign needed. It’s easy to start with
social media and web marketing which is comparably cheaper than mas advertising.

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TASK 1

1.1 Company Profile.

Figure 1.1
Source: www.odel.lk

1.1 COMPANY PROFILE – ODEL PLC

i. The Name

The concept of the ODEL began when Ms. Otara Gunawardena started selling cloths from the
boot of her car to family and friends. Although she stumbled upon the fashion retailing industry
accidently, the brand ODEL became the most successful local fashion brand in Sri Lanka. The
department store itself was named as ODEL as well. The brand name was created with the letters
of the founder’s name by merging the first letter of her first name with the middle name as
follows.
Otara Del Gunawardena–> o-del –> ODEL.

ii. The Type

“It is the lifestyle of customers that ODEL values. Today the Odel department store has been
transformed into a living representation of its brand values: "Mind, Body & Soul'. The new
department structure retains the brand's stylish, simple and elegant interiors and exteriors while

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altering the dynamics of the shopping and sitting areas, allowing customers to relax and unwind
whilst shopping to their heart's content.
Odel has continually enhanced its consumers' experiences by always setting the trend and
offering stylish merchandise. Odel stores will always reflect the ambience of an international
fashion house and continue to present an innovative product range, focusing on simplicity and
the unique Odel character”.

iii. Product Portfolio

Odel started as locally manufactured branded quality items and then converted to their own
labels with high quality and high fashion clothing and fashion accessories. Now ODEL is
inspiring the world to Sri Lankan customers and bring world renowned fashion Brands. ODEL
currently owns the 90% of the branded appeal franchise in Sri Lanka. Menswear, Ladieswear,
Kids wear, Sportswear, both International branded and Private label total solution and unique
range of ODEL home wear, best travel gear range in the country and the “LUV SL” Sri Lanka’s
finest souvenir brand that take Sri Lankan tradition around the Globe.
International Brands

Figure: 1.2
Source: Odel annual report 2018

Private Labels

WYOS-LUV SL-ODEL-CLOSET-BICONIC-PINKABELLE-BOYSENBEAR

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1.2 Market attractiveness

Sri Lankan apparel industry desires to reach a target on apparel exports by 2025 US $ 8 billion.
All these market share depending on the overseas buyers and we cater for the buyer’s
requirement. As a country we have a brand salience but there is no own label in international
market. ODEL is doing the Apparel business since 1991 and ODEL is the Sri Lanka’s first
department store by maintaining good quality that Sri Lanka is known for. This marketing
strategy suggest to build an own Sri Lankan brand in world apparel market.

Strategy
 Entering to the international apparel market with Own label.

The global apparel market is projected to grow in value from 1.3 trillion U.S. dollars in 2015 to
about 1.5 trillion dollars in 2020, showing that the demand for clothing and shoes is on the rise
across the world. The regional distribution of the demand share of apparel is expected to stay
mostly consistent in that period, although the Asia Pacific region had the highest level of growth
at four percent. The three world regions with the largest apparel markets are the 28 member
states of the European Union, the United States, and China, in descending order. In 2017, the
apparel category with the highest level of global market growth was sportswear at 6.8 percent.

World Apparal Market by revenue and Sri Lanka

World apparel market is a big market and USA, China and India are the main revenue generating
counties around the world. And its not easy to enter this market even though you have capital
and product knowledge. But since Sri lanka India and china has a trade agreement that raw
materials can be purchase in low prices. Also sri Lankan government gives a tax benefit for
export garments and current Sri Lankan garment manufacturing knowledge is high compare to
the other countries.

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Market Attractiveness – Directional policy matrix

Country Attractiveness
HIGH MED LOW
Market size, language
structural barriers,
attractiveness, Export
HIGH
Company
Disposable Incentive.
compatibility
income
Digital Media.

MED stability,
Currency Cultural
Exchange rate. distance,
Entry Domestic
opportunities, regulations.
Risk index. Logistics
LOW Protectionism

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Task 2

2 Market Entry Strategies.

As mentioned above, china, India and USA have the biggest market for apparel with a competitors Red
ocean.

2.1 Piggy back Strategy

Piggyback branding is where a company launches a corporate branding image which is
deliberately designed to look very similar to a known, successful brand which has already
reached a wide audience and established a name for itself. The idea being that by creating
products or a brand image that is similar, people will either purchase your products in error, or
assume that they are of similar quality.

ODEL can make the international slandered quality items but compete with international brands
will be the biggest challenge they have. In international market ODEL brand can be piggy back
with international brands same product line can be arranged with similar fabrication and designs.
Finished good can be export to Indian, Chinese and USA retailers in consignment basic that
Retailer will only pay for the sold items. This will be profitable since no operational cost and
only an initial investment, also ODEL can decide the MRP.

Example Product.

ODEL POLO t shirts with USPOLO

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These products will have a big difference in Prices but same quality fabrications and designs.

Benefits Risks

No operational Cost Government tax policies can be changed.

Manufacturing cost is low
Can be benchmarked and no R and D
needed
Sri Lanka has a good reputation in apparel
industry.
Excess inventory can be sold in Sri Lanka.
Since cost is low, more promotions can be
done with higher margins.
Market depth is high and more
opportunities.
Benchmark brands will influence retailers.
There is a risk in inventory as no direct
payments.
Local brands in those counties will compete
with price points.
Return cost will be higher.
Retailers own brands will compete with this
or reject ODEL products.
Legal license issues will come with
benchmark designs.

2.2 Market entry Method.

Method Action Benefits Risk

Indirect Exporting Domestic Purchasing Low cost and tax Inventory
benefits. management and raw
materials lead time
Direct exporting Agents No handling risk High cost
Without direct Franchising No market control,
investment Retailer bargaining
power

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2.3 Market entry cost

i. Inventory cost –ODEL have to bear the inventory cost and return will come with the
sales. Benefits are ODEL can maintain a the MRP, ODEL will control the display,
Retailer will accept the business plan immediately since they don’t have an
investment on product inventory. Risks are Initial inventory cost is high and return on
investment time period is high. Its wasting time to get the feedback and start next
production.

ii. Cost of manufacturing warehousing and distribution. Benefits are Manufacturing

process done locally and labor cost will be lower than other countries. And
Distribution will be only from warehouse to shipping agent and no big warehouse
required. But Items can be damaged and retailer will not be take the responsibility.
Return process is high in cost.

iv. Cost of recruiting and training-ODEL do not need to handle this as retailer will sell
the items from their end and POS will be retailers No cost, No responsibilities but
Less product knowledge and retailer’s staff will not be focused on ODEL products to
sell.
v. Market visits Cost – All retail stores need to be checked monthly and replenishments
and display arrangements need to be done regularity. One residential agent can be
arrange in the country as an employer

2.4 Market Expansion strategy

Since it’s a margin driven and quantitative business, in the first stage “Shower Approach” use
when expanding in all counties. Same method used for India will be used to USA with internal
differentiation according to the country. The product core will be same in all countries.

EX: ODEL MENS POLO T-SHIRT – Same design and cut but more bright colors to India and
basic colors to USA.

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Task3

3.Cultural and regulatory barriers

India – China – USA culture

India is a country that difference from all other nations from the world but the cultural
relationship is high with Sri Lankan culture compared to other countries. India is a high context
country that have different cultures and different communication methods. Communicators in
high-context cultures like India often leave things unsaid. A few words can communicate a
complex message as many thoughts, ideas, expectations are understood as being implicit
between the communicators. As well as words, shared background information, gestures, sighs,
silences are important to the communication. High context communicators prefer face-to-face
meetings over documents as it is important to build a relationship to truly understand one
another. To a low-context communicator a high-context communicator can appear vague or
unforthcoming, and, therefore, untrustworthy.

Before starting business in India it’s important to understand the above communication barriers
and solution. Indian textile market is USD 108.5 billion and it’s a huge market. Again Indian
manufacturing capacity and fashion talents and senses are also very high compared to other
counties in Asia. Fashion has been combined with Indian blood and it’s hard to change their
fashion sense 100%.

Barriers Solution

Building a trust It takes time to develop a good business

relationship
Communication In writing confirmation for all matters
Export TAX Using ISFTA
Uncertainty demand Benchmark the top selling Indian brands
Competition More promotions, Sales incentives for staff.

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China- This will be a big challenge that China is the retail manufacturing master in Fashion
industry but still Chinese market is that big to enter a small brand like ODEL. China is a high
context country as other Asian countries which make more difficulties to market a fashion brand.

Conspicuous consumption in Chinese customers is the advantage for small brands to enter
Chinese market which have 1.4 Billion populations.

The Chinese consumers’ fashion market is huge as domestic luxury brands are presented here
just as foreign brands. A reason why the Chinese love to wear foreign luxury brands is that they
are convinced that it’s quality better. Unknown brand like ODEL will face a big difficulty to
enter this market with Chinese consumer’s brand consciousness.

Barriers Solution

Promotion Social media like we chat will be the best

way.
Communication Need to hire local employees
Retail space Using a small shop with online sales facility.
Logo’s and tag line Tagline can be used in English with Sri
Lankan cultural logo’s Ex: Ceylon tea.
Competition Since customer base is huge, Online
marketing will be the best way to overcome
competition and Sri Lankan cultural values
need to be added to the brand.

Special Trade agreements in Sri Lanka with China

*Sri Lanka’s Existing Trade Agreements and Lessons for the FTA with China.
*Sri Lanka participates in two regional agreements.
*Asia-Pacific Trade Agreement (APTA).

Both countries now have agreed that they would embark on a free trade agreement, which is
hoped to open up the vast Chinese market to Sri Lanka’s producers, manufacturers and exporters.
This would not only boost bilateral trade but help reduce Sri Lanka’s heavy reliance on
traditional markets in Europe and USA. In this regard, it is imperative that the agreement covers
a substantial number of tariff lines and trade as well as address non-tariff barriers that may hinder
export expansion.

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USA- United states of America has a low context culture that American culture is low context
because people’s backgrounds and sub-cultures are so varied that relatively little can be assumed
without explicit explanations, and people are accustomed to providing them the easy thinking of
cultural parameters. Not like in India or China, it is easy to start the business in USA but again
the competition is way higher and quality expectation is also really high. ODEL can maintain its
best quality production to USA with cultural touch and Margins can be higher than other
countries.

Barriers Solution

Exporting Exporting though a USA agent will reduce tax

Promotions Social media promotions and outdoor Price
points.
Retail space Using a small shop with online sales facility.
International Brands Cost leadership with Sri Lankan quality label
Replenishments Sri Lankan sales representative employee can
be based on USA and he has to run the
business on commission basis.

USA still export rawer materials and

garments to other countries and this will
be negative factor to enter Garment
Brands to USA. But the cost different is
much higher than Chinese fabrics. Import
the fabrics from china and manufacture in
Sri Lanka and export to USA will be 40%
profitable than making Apparel in USA.
ODEL can send their best quality products
under ODEL brands with Sri Lankan
cultural values to sell in Small clothing
shops in USA. This cost leadership
apparel business will capture the low
income customers in USA.

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Task 4

4.0 Standardization / Adaptation

ODEL export market is a new concept and there are many challenges to be faced. It is also in the
learning status and customer and retailer bargaining power is so high in terms of all elements.
ODEL is going to enter a big red ocean and brand has to learn and adopt to the situation and
market. ODEL still need to maintain their basics of quality and brand identity and all other
marketing mix will be subjected to Adaptation.

Marketing Mix Adaptation Standardization

Product  LVSL cultural No
products will be send
more to China and
USA, Ladies wear and
Underwear market
will also be covered in
China and India. USA
market will be
Menswear mostly and
quality Kid swear also
will be sent to USA.
Price  First time pricing will No
be Penetration price
and USA will be the
high cost but still need
to keep the low
margin and keep 50%
less than international
brands. India and
china prices also be a
competitive with local
Brands but lesser than
USA. In India color
wise pricing will be
more effective.
 Flexibility to local
retailer will be also
need to be done. Local
retailer might suggest
prices for each stores
with higher or low
margins.

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  Prices also will be
changed according to
the sell though. High
throughput items will
be marked high
prices.

Promotions  Various digital media No

source will be used in
different counties EX:
We chat in china.
 Same advertisement
will not be used there
counties and More tea
related advertisements
in china, Cultural ones
in India and nature
related ones in USA.
 ODEL nightwear can
be advertising with
sexual manner in
USA and sanitizing
manner in India.
Place  Indian shopping malls
and bigger shops with
multi brands and
department stores can
be targeted. Also
separate area can be
hired with branding.
In china, both small
shops and
departments stores
can be used to display
the items. Sri Lankan
cultural bill boards
can be displayed alone
with products without
branding. In USA
only the small market
will be targeted and
bargaining prices area
will be the first target.
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Task 5
5.0 Advertising campaign

5.1 Target audience

This whole business depends on the competitive advantage of cost effectiveness and capturing
the market slowly. Customers those who are looking for high quality products for low pricing
will be the target market and brand loyalty is based on the community discussion. Since ODEL
launch this business strategy in cost leadership marketing, it is important to go with low cost and
effective marketing campaign. Target audience need to be carefully studied and categories.

 Middle class USA and Chinese customers.

 Customers who are quality conscious not the brands conscious.
 Early majority and late majority customers.
 Customers not more than 10 miles from retail store.

In order to target these exact customer base with low cost, social media is the best way to reach
them. Instagram and Facebook both have facilities to reach the exact customer base and regular
boosting will encourage customers to come and see the products.

5.2 Race Model

The RACE planning framework is designed to help brand to refresh their existing approach in
order to integrate all techniques into one plan, which works together to grow brand awareness,
increase sales, or improve lead generation depending on the campaign goals. ODEL main goal is
to reach the customers as a strange brand with values.

PLAN

 Goal and objectives will be reach the unknown market with values like quality and low
prices as a competitive advantage. The web page and the Social media interface must be
carrying this message very strongly.
 Online market place analysis will be the next planning step that ODEL need to identify
the changes of competitors and act accordingly.
 Understanding ODEL consumer’s motivations for wanting or needing a problem for a
problem they face is needed in order to provide an educated and inspiring answer that
encourages interaction with your brand and purchase.
 Competitor analysis is must and it is important to convey the cost difference targeting
brands that will compete with ODEL.

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REACH

ODEL need to have a time line plan how and when to send the messages and how to reply the
messages. Conversion rates, click management and boost times are very important and execute
the best marketing materials in time. EX: maintaining a Gantt chart for all stages.

ODEL need to consider budget within this section. Also ODEL need to invest in analytics
software to help review results and understand how your campaign is performing, Also some
special analysis by the propersanal.

ACT

Interacting with target audience will be the main objective in this season. ODEL need to start a
Green marketing campaign and CSR project which can be related to local marketing campaign.
Also gaming functions, Educational videos and discount vouchers can be published on ODEL
web page and social media pages,

CONVERT

FB page visitors and instream visitors need to be converted to customers. This conversion
process is not easy unless ODEL can manage the attractive web page and acting process.

ODEL need to be ready to make additional improvements to campaigns when live depending on the
reception of the campaign. Optimize green marketing campaign by rotating assets to see which perform
better, need to understand ODEL audience respond positively to videos, images or text-heavy posts? test
campaign pages to see if improvements can be made - remember to change just one thing to measure its
impact. There is a specific time of the day that works better. Consider changing a percentage of ODEL
updates/posts to that time in order to reach the audience.

ENGAGE

long-term customer engagement and communications that is must and developing a long-term
relationship with first-time buyers to build customer loyalty as repeat purchases using
communications on ODEL site, social presence, email and direct interactions to boost customer
lifetime value. It can be measured by repeat actions such as repeat sale and sharing content
through social media. ODEL also need to measure the percentage of active customer’s
satisfaction and recommendation using different method. Old school call and ask method will be
more helpful for regular customers and Birthday gifting and birthday discount program for all
loyal customers can be a good engage which can be communicated in the social media stories.

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“Topic: Apparel Market Worldwide.” Www.Statista.Com, Statista, 2019,
www.statista.com/topics/5091/apparel-market-worldwide/.
‌
“How Small Brands Can Enter to the Huge Chinese Fashion Market?” SEO China Agency, 15
Jan. 2019, seoagencychina.com/small-brands-can-enter-huge-chinese-fashion-market/.
‌
“Free Trade Agreements | Sri Lanka Customs.” Customs.Gov.Lk, 2017,
www.customs.gov.lk/tradeagreements/home.
‌
“How to Organize a Campaign Plan Using the RACE Framework | Smart Insights.” Smart
Insights, 25 Feb. 2019, www.smartinsights.com/digital-marketing-strategy/organize-campaign-
plan-race-framework/.
‌

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