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Assignment 2 (Vartika & Mahima)
Assignment 2 (Vartika & Mahima)
Submitted by:
Mahima(MFM/21/1161)
Vartika Verma(MFM/21/
http://www.nift.ac.in
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Table of Content
● Abstract
● Objective
● Introduction
● Research Method
● About the Brand
● History of Biba
● The people behind Biba
● Present and Future of Biba
● Inspiration of Biba
● Products
● Why Biba should go Global?
● Market entry
● South Africa
● Reasons to choose South Africa
● PESTEL Analysis
● EPRG Framework
● Entry Strategy
● Foreign Direct Investment
● The Dominance of Ethnic Wear’
● Biba Focusing On
● Segmentation, Targeting, and Positioning
● Marketing Mix
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ABSTRACT
The purpose of this research is to study about a Brand, for which we have
chosen ‘BIBA’, home grew Indian fashion apparel brand. Also, to concentrate
on new market entry modes and strategies to enter a new Country market,
i.e, South Africa. This research further explains South Africa’s business
culture and the business environment. The aspects on regarding the market
entry which might make it possible for companies interested in doing
business in South Africa, by finding out the possibilities of doing business
there. So our research will shed a light on the Market analysis and the market
entry strategies. The aim of this thesis is to get familiar with the Brand, BIBA,
with its product range to market position, and the analysis of South
Africa(chosen country) with its PESTEL analysis and strategies. Further, the
research also explains the recommended Marketing Mix of the brand for the
further actions to be taken when entering into the new market.
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OBJECTIVE
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INTRODUCTION
Expanding the business to new markets allows you to reach potentially vast
numbers of new customers and grow revenue massively. However, the
process can be difficult and filled with complications.
Risks of entering a new market can be cultural risks, foreign exchange risks,
political risks, economical risks, etc.
Research Method
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About Biba
then, it has become synonymous with ethnic wear in India. Along with a
humble sum of 8000 rupees when she set out to create the iconic brand Biba.
woman.
Today Biba is
● BOLD
● FEARLESS
● TREND-SETTING
● STYLISH
● EFFORTLESS
presence across 65 Indian cities with 375 points of sale, including 150
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History of Biba
In 1982, Meena Brinda Started the company from her home in New Delhi. She
took an 8000 Rupees loan to start a small business. Some years later, Brinda
allowed her son, Sanjay, and Siddharth, to help her to manage the business.
In 2010, Sanay left Biba and started his own apparel business, Seven East.
Biba opened its first standalone store in Mumbai in 2004. Kishore Biyani’s
Future Group acquired a 6.5% stake in Biba in 2007. Future Group was
In 2014, Biba Apparels acquired a minority stake in the designer label, Anju
Modi.
vale segment market and the youth segment of tier 2 and 3 cities, a new line
of Indian wear under the brand Rangriti was launched by Biba in 2014.
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The People Behind Biba
Mrs. Meena Bindra pioneered the salwar-kurta revolution in the country and
united the women from the North to the South changing their dressing
Her son, Siddharth, who joined the business in 1997, was inspired by her
perseverance during the fallow years that ensued. Together, Meena and
Siddharth have presided over a revenue growth of 35-40 percent in the last
eight years.
Turned their passion into a 600 Cr business by launching its designer clothes
Siddharth's real achievement lies in the fact that he’s successfully taken Biba’s
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Present and future of Biba
Today BIBA is producing more than 8000 fabrics. The annual turnover of
BIBA today is 600 cr. In terms of the product line, they have launched BIBA
GIRLS, an ethnic wear collection for kids. They are also planning to launch
the unstitched fabrics in a big way every month. Inspired by India's rich
Indian indigenous art and craft, BIBA products are rendered unique through
Inspired by India’s rich indigenous art and crafts, Biba products are rendered
styling elements the Biba ethnic wear collection are as plentiful as they are
unique.
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Products
space that ranges from casuals, work wear, semi formal wear to
occasion wear
● Mix ‘n’ Match – A wide range of kurtas, tunics, dresses, and tops with
● LOUNGEWEAR
● MASKS
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Why Biba Should go Global?
compositions and Indian fashion techniques have been appreciated all over
the world.
future blending contemporary aesthetics for the new age global consumers.
operation through its Web site to target new customers, especially the NRI
After having made a mark in India, Biba is now planning to retail in South
Africa by 2023. Much like global fashion brands testing the waters in India
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Market Entry
organization has never targeted before. During that process, the company
will analyze the barriers to entry, the costs, sales, who are there main
market. Market entry is about studying and analyzing the market status of
the target by studying how good the market is, the potential, economic.
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South Africa
businesses.
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Good reasons to choose South Africa
number expected to double over the next 30 years. The continent has
not stating that the African markets are easy to do business in, but
emphasizing that they are worth the effort, and companies not
engaged in African markets risk losing out on one of the 21st century’s
on the continent, only exceeded by Nigeria, which has more than three
times the population size. Over the past decade, South Africa has
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continents earning more than $1bn annually, about half are in South
● Growing middle class- Since the fall of Apartheid South Africa has
high priority in South Africa, and many of the challenges facing South
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An example is the South African water sector, which Denmark has
leader in water use and efficiency, and deliver solutions that save water
and energy.
South Africa will amplify current demand in the future, and the gaps
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PESTEL Analysis
Political-
actions and policies. They include but are not limited to, considerations
like
● Corporate taxation
South Africa is one of the most powerful countries in Africa and plays a
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South Africa is a parliamentary republic with the president being both
the country.
African exports were from/to Asian countries. The corporate tax rate
Economical-
● Interest rates
● Employment rates
● Inflation
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● Exchange rates
nominal GDP (Statistics times, 2020). The GDP stands at around 282
one of the five BRICKS, economic giants. BRICKS stands for Brazil,
Russia, India, China, and South Africa. South Africa exports gold,
Germany, India, and Saudi Arabia. Corporate income tax in South Africa
2020). However, small businesses pay a lower rate of tax. South African
Social-
approach life and leisure, which in turn can impact commercial activity.
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● Demographic considerations
● Lifestyle trends
● Consumer beliefs
country desire better education for their children, and faster economic
growth that offers great opportunities for both local and international
organizations.
Technology-
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In today’s business landscape, technology is everywhere – and it’s
● Automation
● How research and development (R&D) may impact both costs and
competitive advantage
● Cyber security
Novell, and Apple are some of the companies that can be considered in
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online vulnerabilities, demand for IT security products and software is
high as well.
Environmental-
considerations are
● Carbon footprint
world. The World Best City’ in 2016. Indeed, according to many sources,
the world for families, couples, and solo travellers. Abundant wildlife,
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environmental challenges such as water pollution, air pollution, land
Legal-
Legal factors are those that emerge from changes to the regulatory
● Industry regulation
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ERPG Framework
The EPRG framework addresses the ways strategic decisions are made in the
company and what is the nature of the relationship between the company's
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Approach Adapted by Biba
whom 14.5 million are working and 7.9 million are actively seeking work.
15-65).
● Biba extends its product portfolio from just being a women’s wear
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Entry Strategy:
Licensing
The brand may choose this method with its products and the company
to which it plans to license the product has a large market.
Franchising
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Joint ventures
South African government also has established the special economic zone
(SEZ) program by providing incentives for foreign investors.
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These incentives include a reduced rate of corporate income tax, building
allowances, a customs-controlled area, and tax relief, including tax incentives
designed to support both greenfield (i.e., new projects) and brownfield
investments (i.e., expansions or upgrades of existing industrial projects).
The rising female population and increase in the female workforce are the
factors contributing to the demand for ethnic wear worldwide.
For instance, according to The World Bank Group, the female labor force
participation rate in 2020 in Saudi Arabia was 19.77%.
Biba Focusing On
Over the years, the brand has not only grown in a number of outlets and its
presence in stores but also extended its product portfolio from just being a
women's wear ethnic brand to expanding its brand into South Africa.
So Biba has come a long way from being just another ethnic wear brand to
becoming the leading ethnic brand.
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The main markets of expansion at the moment are Tier 1 cities of South
Africa Pretoria, Johannesburg, Cape Town, and Durban as there is great
potential in these markets.
Segmentation
In fact, in saturated and mature markets, you may even discover new
opportunities, highlighting unique benefits to a segment that wasn’t
catered to by anyone else.
● Gender: Female
● Age: Women looking for classy ethnic Indian wear.
● Leading ethnic wear brand Biba Apparels has entered the mass
segment with the launch of its brand, ‘Rangriti.
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Target market
The next step is to look at the segments that you picked to identify the
best opportunities for your business.
First, you will need to look at the size of the segment, which will tell
you whether it’s worth pursuing. After all, the marketing opportunity
must be large enough to warrant running a campaign. Otherwise, it
simply won’t be worth the effort.
The next step is to look at whether there are significant markers that
set the segments apart; these can become the basis of an STP
marketing campaign.
Positioning
Since you have tangible data about what segments of your audience
desire, you can use those insights to position your product and develop
a unique selling proposition, presenting the right message at the right
time.
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Marketing MIX of BIBA
The four Ps classification for developing an effective marketing strategy was
first introduced in 1960 by marketing professor and author E. Jerome
McCarthy.
epending on the industry and the target of the marketing plan, marketing
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managers may take various approaches to each of the four Ps. Each element
can be examined independently, but in practice, they often are dependent on
one another.
PRODUCT:
PRICE:
The sale price of the product reflects what consumers are willing to
pay for it. Marketing professionals need to consider costs related to
research and development, manufacturing, marketing, and
distribution—otherwise known as cost-based pricing. Pricing based
primarily on consumers' perceived quality or value is known as
value-based pricing.
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● Biba has varied pricing for different kinds of products. It targets
both the mass and high-end markets with products available to
cater to both their needs.
● Biba has a competitive pricing strategy and follows it in different
segments integrating it with the market trends.
● It offers timely discounts on e-retailing websites like Myntra,
Flipkart, etc. to boost its sales figures and to match the
competitor's discount
Promotion:
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that often incorporates details from the other three Ps when trying to
reach their target audience. Determination of the best mediums to
communicate the message and decisions about the frequency of the
communication also are important.
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Reference
Ethnic Wear Market Size & Share Report, 2021-2028 (grandviewresearch.com)
https://in.fashionnetwork.com/news/Biba-apparels-eyeing-8-percent-mar
ket-share-in-ethnic-wear-with-expanded-distribution,1071814.html
https://whichfranchise.co.za/south-african-franchise-market/ final final
thesis2.pdf (theseus.fi) 6. good reasons to choose South Africa (um.dk)
PESTLE Analysis of South Africa
THANK YOU
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