Micro analysis of Raymond Group

Submitted in partial fulfillment of the

requirements for the award of the degree
of

Bachelor of Business Administration

To

Guru Gobind Singh Indraprastha University, Delhi

Guide: Submitted by:

Mrs. Simran Sweta rana
12819101721

GITARATTAN INTERNATIONAL BUSINESS SCHOOL

NEW DELHI-110085
Batch (2021-2024)

1
 ZziBS
Gitarattan International Business School

CERTIFICATE

1, Ms.Sweta Rana, Roll No. 12819101721 certify that th e Project Report

‘Dissertation (BBA 218) entitled “Micro Analysis of Raymond Group” is
completed by me and it is an authentic work carried out by me atGitarattan
International Business School. The matter embodied inthis project work has not
been submitted earlier for the award of any degree or diploma to
the best of my
knowledge and belief.

Signatur€of
&
the Student

Certified that the Project Report/Dissertation (BBA-218) entitled “Micro Analysis

of Raymond Group” done by Ms. Sweta Rana, Roll No. 12819101721 is
completed under my guidance.
The duration of the project was from 15th July 2022 to 30th September 2022.

eee
Signaturéof the‘Guide & Date:
Name of the Guide: Ms, Simran Jain

Designation: Assistant Professor

Gitarattan Intemational Business School, Delhi- 110085
 Acknowledgement

I would like to express my profound gratitude to Mrs. Simran Mam, and Prof. (Dr.)

Vikas Nath Sir of Gitarattan International Business School for their contributions to the

completion of my project titled “Micro Analysis of Raymond Group”.

I would like to express my special thanks to our mentor Mrs. Simran Mam for her time

and efforts she provided throughout the year. Your useful advice and suggestions were

really helpful to me during the project’s completion. In this aspect, I am eternally

grateful to you.

I would like to acknowledge that this project was completed entirely by me and not by

someone else.

Signature

Sweta Rana

12819101721

3
 CONTENTS

S No Topic Page
No
1 Certificate (s) 2

2 Acknowledgement (s) 3

3 Executive Summary 5-6

4 Chapter-1: Introduction to organization / Industry 7-14

5 Chapter-2: Environmental Analysis 15-18

6 Chapter-3: Functional Analysis 19-36

7 Chapter-4: Findings, Conclusions & Limitations 37-42

8 References/Bibliography 42

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Executive Summary

The micro analysis of the Raymond Group focuses on examining the internal aspects

and performance of the company to gain a deeper understanding of its operations,

strategies, and competitive advantage. Raymond Group, established in 1925, is one of

India's leading textile and apparel conglomerates, renowned for its quality fabrics and

fashion offerings.

This analysis encompasses various key elements of the company, including its

organizational structure, financial performance, marketing strategies, human resources,

and operations. By evaluating these aspects, stakeholders can gain insights into the

Raymond Group's strengths, weaknesses, opportunities, and threats, enabling them to

make informed decisions and drive the company's growth.

In terms of organizational structure, Raymond Group operates under a divisional

structure with separate divisions for its textile, apparel, and branded retail businesses.

This structure allows for focused management and effective decision-making in each

business segment.

However, it may also create challenges in terms of coordination and integration across

divisions.

Financially, Raymond Group has demonstrated a strong track record. Its financial

statements indicate consistent revenue growth and profitability over the years. The

company has successfully expanded its market reach both domestically and

internationally, contributing to its financial success.

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However, careful attention must be paid to managing costs, especially in the face of

increasing competition and fluctuating raw material prices.

In the marketing realm, Raymond Group has leveraged its brand equity to establish a

strong presence in the market. The company adopts a multi-channel approach, including

both offline and online retail, to reach a wider customer base. Their focus on innovation

and continuous product development enables them to stay relevant in the rapidly

evolving fashion industry. Building on this, Raymond Group should further invest in

digital marketing and e-commerce to capitalize on changing consumer preferences.

Human resources play a crucial role in the success of any organization, and Raymond

Group recognizes this. The company has implemented various initiatives to attract,

develop, and retain talent. A strong emphasis on employee engagement, training, and

leadership development programs contributes to a motivated workforce. Raymond

Group should continue investing in these areas while fostering a culture of innovation

and inclusivity to stay competitive in the market.

Regarding operations, Raymond Group has made significant strides in implementing

sustainable and environmentally responsible practices. By adopting efficient

manufacturing processes, waste reduction measures, and renewable energy sources, the

company has been able to enhance its brand reputation and meet increasing consumer

demand for sustainability. Strengthening these initiatives will provide Raymond Group

with a competitive edge while addressing environmental concerns.

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Chapter 1: Introduction to the industry and organization

1.1 INTRODUCTION

The Raymond Limited was established in September 1925 to acquire the Woolen Mills

in Thane known as WADIA WOOLEN MILLS; it was managed by E. D. Sassoon &

Co. Until November 1944 when the entire shareholding was acquired by JAGGILAL

KAMALPAT SINGHANIA of Kanpur, subsequently J. K. Trust Bombay, acted as

managing agents. There after the name was changed to Raymond Woolen Mills Limited.

In late 1994, the “Raymond Woolen Mills” was changed to “Raymond Limited”.

Traditional product lines were discounting. High quality becomes a numbers of

watchwords and the diversification program got head start. Nontraditional blends of

natural and manmade fabrics were introduced back by sound research & Development.

This resulted in greater consumer satisfaction both at home and abroad.

The idea of J& K was to develop an organization with a diversified product line. Over

the year the organization grew in structure and nature. To facilitate better involvement

of the top management in the organization effort, the J. K. Organization was divided into

three zones i.e., Western, Central and Eastern. The Raymond Limited in Chhindwara is

a part of Western zone.

India has the second largest manufacturing capacity in textiles globally and accounts for

13% of the world’s production of textile, fiber and yarn. The Government of India has

announced a special package of Rs. 6,000 crores towards few months back for boosting

the Indian textile industry. This could help Indian firms to grab the opportunity because

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after fully reaping the benefits of access to the markets of developed economies in the

post-Uruguay round world, China is beginning to exit the textiles and apparel sector due

to rising domestic wages. This leaves a huge demand base for India to exploit as rightly

recognized by the government.

1.4 OBJECTIVES

01. To explore the condition of Indian textile industry

02. To analyse in detail analysis of The Raymond, its history, the SWOT analysis

03. To apply the theoretical knowledge to learn the various aspects of management.

1.2 VISION OF RAYMOND GROUP

Their VISION has been to create a professional team selected for their knowledge,

commitment, and devotion to client service. They strive to assist all clients in attaining

their financial and investment goals. They define those goals as financial confidence,

independence and investment solutions. They believe a "Client-Focused Approach"

combined with personal accountability is the foundation for a mutually successful

relationship.

Their VISION is created from the single idea that the more knowledge and

understanding our clients have about investing and planning, the more likely they are to

make wise decisions.

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1.3 MISSION OF RAYMOND GROUP

 Provide high levels of service with integrity

 Communicate with our clients clearly and frequently

 Teamwork and cooperation to nurture relationships

 Continuing education to maintain timeliness of knowledge

 Innovation to survive in our changing world

1.5 POLICIES

1.Sustainability: The Raymond Group has shown a commitment to sustainability by

implementing various initiatives. They have focused on energy efficiency, waste

management, water conservation, and reducing their environmental impact. They have

also worked on creating sustainable and eco-friendly products.

2.Corporate Social Responsibility (CSR): Raymond Group has actively engaged in

corporate social responsibility initiatives. They have supported causes such as education,

healthcare, skill development, and community welfare. Through their philanthropic

efforts, they aim to contribute to the well-being of society.

3.Ethical Practices: Raymond Group has emphasized ethical practices and compliance

with legal and regulatory requirements. They have implemented policies to ensure fair

and transparent business operations, including in areas such as sourcing, manufacturing,

and labour practices.

4.Employee Welfare: The group has had a focus on employee welfare and has

implemented policies to create a conducive work environment. They have emphasized

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employee safety, health benefits, training and development programs, and employee

engagement initiatives.

5.Customer Satisfaction: Raymond Group has strived to provide quality products and

services to meet customer expectations. They have aimed to maintain high standards in

terms of product design, craftsmanship, and customer support.

1.6 HISTORY EVOLUTION

The Raymond Group has a rich history that dates back to its establishment in 1925.

Here's a brief overview of the historical evolution of the Raymond Group:

1. Formation: The Raymond Group was founded by Vijaypat Singhania. It began as a

small woollen mill in the outskirts of Mumbai, Maharashtra, India. Initially, the

company focused on producing coarse woollen blankets and low-priced woollen fabrics.

2. Expansion and Diversification: In the 1950s and 1960s, the Raymond Group

witnessed significant expansion and diversification. It ventured into the production of

high-quality suiting fabrics and launched the popular Raymond brand in 1958. This

move positioned the company as a premium textile player in India.

3. Manufacturing Vertical Integration: The 1980s marked a phase of vertical integration

for the Raymond Group. They started backward integration by setting up their own

manufacturing facilities for key raw materials like wool and spinning mills. This enabled

them to exercise greater control over the entire production process.

4. Brand Building and Retail Expansion: In the 1990s and early 2000s, the Raymond

Group intensified its efforts in brand building and retail expansion. They extended their

product range to include ready-to-wear garments, accessories, and other lifestyle

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products. The company also established a strong retail presence across India, with a

network of exclusive Raymond retail stores.

5. Diversification into Other Businesses: Recognizing the potential for growth in various

sectors, the Raymond Group diversified its operations beyond textiles. They ventured

into different industries such as engineering, auto components, real estate, and FMCG

(fast-moving consumer goods). Some notable diversification initiatives include the

acquisition of ColorPlus, a premium clothing brand, and the launch of the popular retail

chain, Raymond Shop.

6. Leadership Transitions: In 2015, Gautam Hari Singhania took over as the Chairman

and Managing Director of the Raymond Group, succeeding his father, Vijaypat

Singhania. This marked a new phase of leadership and strategic direction for the

company.

1.7 ORGANIZATIONAL STRUCTURE

The organizational structure of the Raymond Group can vary based on the specific

divisions and subsidiaries within the conglomerate.

1.Board of Directors: At the top of the hierarchy is the Board of Directors. They are

responsible for setting the strategic direction, making major decisions, and overseeing

the overall governance of the Raymond Group. The Board typically consists of

executives, independent directors, and representatives from major shareholders.

2.Chairman and Managing Director: The Chairman and Managing Director (CMD) is

the top executive of the company and provides overall leadership. They are responsible

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for guiding the organization, implementing the board's decisions, and ensuring the

achievement of the company's goals.

3.Executive Management Team: The executive management team consists of senior

executives who oversee various functional areas of the business. They may include Chief

Executive Officers (CEOs) or heads of different divisions such as Textiles, Apparel,

Real Estate, Engineering, and FMCG. Each executive is responsible for the performance

and operations of their respective division.

4.Divisions/Departments: Under the executive management team, there are different

divisions or departments that focus on specific business areas.

5.Subsidiaries and Business Units: The Raymond Group may have subsidiary companies

or business units that operate independently under the conglomerate's umbrella. These

subsidiaries may have their own organizational structures, including their own executive

management teams and functional departments.

1.8 PRODUCT AND CUSTOMER

The Raymond Group offers a diverse range of products across various industries.

Products:

1.Textiles: The Raymond Group is well-known for its textile business. They

manufacture and supply a wide range of fabrics, including suiting fabrics, shirting

fabrics, and specialty fabrics. Their textiles are used in both formal and casual clothing.

2.Apparel: In addition to textiles, the Raymond Group has a significant presence in the

apparel industry. They offer a range of ready-to-wear garments, including men's suits,

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shirts, trousers, and accessories like ties and belts. They also have a line of women's

apparel and accessories.

3.Engineering: The Raymond Group has diversified into the engineering sector and

manufactures auto components, tools, and precision products for various industries.

4.Real Estate: The group has a real estate division that focuses on the development and

management of residential, commercial, and mixed-use properties. They undertake real

estate projects such as residential complexes, office spaces, and retail centres.

5.Fast-Moving Consumer Goods (FMCG): Raymond Group has expanded into the

FMCG sector and offers a range of personal care products, grooming essentials, and

toiletries under various brands.

Clients:

1.Retail Customers: The Raymond Group caters to retail customers by offering its

products through various channels, including exclusive Raymond retail stores, multi-

brand outlets, and online platforms. They have a wide customer base that includes

individuals and families looking for quality clothing and lifestyle products.

2.Corporate Clients: Raymond also serves corporate clients, providing them with custom

tailoring services, suiting solutions, and branded merchandise. They have been a

preferred choice for formal wear among professionals, businesses, and corporate

organizations.

3.Business Partners: The Raymond Group works closely with a network of distributors,

wholesalers, and business partners who help in the distribution and sales of their

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products. These partners may include textile retailers, apparel stores, and other

businesses that sell Raymond products.

1.9 COMPETITORS

The Raymond Group operates in various industries, including textiles, apparel,

engineering, real estate, and FMCG. As a result, it faces competition from different

companies in each sector. Here are some of the competitors that the Raymond Group

may encounter in its various business segments:

1. Textiles and Apparel:

• Arvind Limited

• Aditya Birla Fashion and Retail Limited

• Reliance Industries Limited (Reliance Retail)

2. Engineering:

• Bharat Forge Limited

• Mahindra CIE Automotive Limited

• Motherson Sumi Systems Limited

3. Real Estate:

• DLF Limited

• Godrej Properties Limited

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Chapter 2: Environmental Analysis

2.1 IDENTIFY THE INTERNAL CAPABILITIES, STRENGTHS AND

WEAKNESS

Strengths of Raymond:

Strong Brand Name: Raymond is almost a 100-year-old brand and has sustained through

different phases and fashion trends in India and all over the world through the trust and

credibility of its customers. It has strong brand loyal customers in the market.

Strong Brand Image: The Raymond brand itself is sufficient enough to impress the

customers.

Popular Tagline “Raymond: The Complete Man”: The tagline The Complete Man is a

very successful tag line in advertisement arena. The recall impact of this advertisement

upon the customers are quite large. Raymond get a good recognition of its brand through

this tag line.

Product Line Extension: Raymond is continuously expanding its product line by adding

various new brands under its level. This helps the company to target customers of

various age and occupation groups

The Raymond Shop: The Raymond shop is a new creation of Raymond where the

company make all its brands available under one roof. In other words, it is a chain of

stores through which the company retains all the brands under it.

15
Weaknesses of Raymond:

Raymond Defamation Case: Vishal Patel, a minority shareholder at textile major

Raymond who brought to light the alleged misuse of the company’s funds. On March 2,

Vishal Patel published an open letter in the Business Standard newspaper saying the

company spent more than ₹186 crore in the JK House property in Mumbai.

Over Dependence on Home Market: The strategies that the company is adopting since

its inception looks like more domestic centric in nature.

The Singhania V/s Singhinia: There is a family war between the father and son about

the property issue which exposed the brand in both national and domestic market.

2.2 IDENTIFY THE ENVIRONMENTAL FACTORS INFLUENCING

(PESTLE/PEST), OPPORTUNITIES, THREATS/CHALLENGES

The PESTLE (or PEST) analysis framework is commonly used to identify and analyze

various external factors that can impact an organization's operations. Here are some key

environmental factors that may influence the Raymond Group:

1.Political Factors:

• Government regulations and policies related to the textile, apparel, and manufacturing

industries can impact the operations of the Raymond Group.

• Trade policies and tariffs imposed by governments, both domestic and international,

can affect the import and export of raw materials and finished products.

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2.Economic Factors:

• Economic conditions, including GDP growth, inflation rates, and exchange rates, can

influence consumer purchasing power and demand for Raymond's products.

• Interest rates and availability of credit can impact the cost of capital and investment

decisions for the company.

3.Sociocultural Factors:

• Changing fashion trends and consumer preferences can impact the demand for different

types of textiles and apparel.

• Cultural norms and preferences in different regions and countries can influence the

design and marketing strategies of Raymond's products.

4.Technological Factors:

• Technological innovations in textile manufacturing and garment production can

influence product quality, customization options, and time-to-market.

• E-commerce and digital platforms can affect consumer purchasing behavior and

distribution channels for Raymond's products.

5.Environmental Factors:

• Environmental regulations and sustainability initiatives can impact the production

processes, waste management, and carbon footprint of the Raymond Group.

• Climate change and resource scarcity can influence the availability and cost of raw

materials used in textile manufacturing.

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6.Legal Factors:

• Compliance with labor laws, health and safety regulations, and intellectual property

rights can impact the operations and reputation of the Raymond Group.

• Environmental regulations and standards related to pollution control, waste

management, and sustainable sourcing can affect the company's practices and

operations.

OPPORTUNITIES

Increasing Per Capita Income in India: The per capita income in india is increasing. This

could be an added advantage for the company. This will certainly increase the demand

in the apparel industry.

Growing Middle Class: The Indian middle class have experienced a shift in their

spending pattern. The middle-class population of India can create high demand in the

near future.

Global Presence: Raymond is gradually targeting the global exposure.

THREATS

Intense Competition: Raymond is imaged as a high priced company in the market. With

the availability of too many players, Raymond competes with various local and global

players in the 12 market. Intense competition in the market puts pricing pressure and

reduce market share in the industry.

It faces competition from several companies like:

 Birla Corporation Ltd

 Arvind Mills Ltd

 Century Textiles and Industries Ltd

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Chapter 3: Functional Analysis- Marketing

3.1 Product

Identify the Product Range and the sector to which it belongs.

The Raymond Group is primarily known for its product range in the textile and apparel

industry. They offer a wide variety of products across different categories within this

sector. Here are some of the key product ranges of the Raymond Group:

1.Fabrics: The Raymond Group is renowned for its high-quality fabrics, including

suiting fabrics, shirting fabrics, and specialized fabrics for various applications. They

offer a range of fabric options in different materials, weaves, and designs.

2.Apparel: The Raymond Group manufactures and markets a diverse range of apparel

products for men, women, and children. This includes formal wear, casual wear, ethnic

wear, and accessories such as shirts, trousers, suits, jackets, t-shirts, dresses, skirts, and

more.

3.Denim: The Raymond Group has a strong presence in the denim segment, offering a

range of denim fabrics and denim apparel. They produce jeans, jackets, and other denim

products for both men and women.

4.Tailoring Services: In addition to their product range, the Raymond Group provides

tailoring services through their network of Raymond Made-to-Measure stores. These

services offer customized clothing solutions for customers looking for personalized fits

and styles.

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5.Furnishings: The Raymond Group also offers a range of home furnishing products,

including bed linen, bath linen, curtains, upholstery fabrics, and other textile products

for interior decor.

6.Accessories: The Raymond Group manufactures and markets a range of accessories

such as ties, belts, wallets, and socks that complement their apparel offerings.

The Raymond Group's product range falls within the broader sector of textiles and

apparel, which encompasses the manufacturing, distribution, and retailing of fabrics,

clothing, and related accessories. Within this sector, the Raymond Group has established

itself as a leading player, known for its quality, craftsmanship, and innovation.

Market share of different products.

Dividend and Reserves: Your Directors recommend a dividend of 30% i.e. Rs.3 per

equity share of face value of Rs.10 each aggregating to Rs.18.41 crore (Previous Year:

Rs.12.28 crore). 6 During the year under review, your Company transferred a sum of

Rs.43.75 crore to the Debenture Redemption Reserve (Previous Year: Rs. 45 crore).

During the year under review, no amount was transferred to general reserve

Share Capital: The paid up Equity Share Capital as at March 31, 2015 stood at Rs.61.38

crore. During the year under review, the Company has not issued shares with differential

voting rights nor has granted any stock options or sweat equity. As on March 31, 2015,

none of the Directors of the Company hold instruments convertible into equity shares of

the Company.

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Product Development Process deployed by the company

The Raymond Group follows a structured product development process to introduce new

products or enhance existing ones. It's important to note that the Raymond Group may

have its own unique process tailored to its specific requirements and industry practices.

Here are the key stages involved in a typical product development process:

1.Idea Generation: The product development process starts with the generation of new

product ideas. This can come from various sources such as market research, customer

feedback, internal brainstorming sessions, or emerging industry trends. The Raymond

Group likely encourages input from different stakeholders to generate a pool of potential

ideas.

2.Concept Development: In this stage, the identified product ideas are further refined

and developed into product concepts. The Raymond Group may conduct market

research, feasibility studies, and concept testing to evaluate the viability and potential

acceptance of the product concepts. This helps to narrow down the options and select

the most promising ones.

3.Design and Prototyping: Once a product concept is selected, the Raymond Group

proceeds with the design phase. This involves creating detailed product designs,

specifications, and technical drawings. Prototypes may be developed to test and validate

the design, functionality, and aesthetics of the product. Feedback from internal teams,

stakeholders, and potential customers may be sought during this phase.

4.Testing and Validation: The prototypes and designs are subjected to rigorous testing

21
and validation to ensure they meet quality standards and performance requirements. This

may involve functionality testing, durability testing, safety assessments, and other

relevant tests specific to the product category. The Raymond Group may use in-house

testing facilities or collaborate with external testing agencies.

5.Production and Manufacturing: Once the product design is finalized and validated, the

Raymond Group moves into the production and manufacturing phase. This includes

sourcing raw materials, setting up production facilities or collaborating with

manufacturing partners, and establishing quality control measures to ensure consistent

product quality.

6.Marketing and Launch: Before the product is launched, the Raymond Group develops

marketing and branding strategies. This involves creating promotional materials,

packaging designs, pricing strategies, and distribution plans. The marketing team may

conduct market research, competitor analysis, and develop marketing campaigns to

support the product launch.

7.Post-launch Evaluation: After the product is launched, the Raymond Group monitors

its performance in the market. They gather feedback from customers, track sales data,

and evaluate customer satisfaction and market acceptance. This feedback helps identify

areas for improvement and provides insights for future product development initiatives.

It's important to note that the specific product development process employed by the

Raymond Group may vary based on their product categories, industry dynamics, and

organizational preferences.

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3.2 Segmentation

Bases of segmentation deployed by the company (demographic, psychographic,

geographic etc.)

The Raymond Group employs various bases of segmentation to target specific customer

segments effectively. It's important to note that the Raymond Group may utilize a

combination of different segmentation bases depending on their target market and

product offerings.

Here are some common bases of segmentation that the Raymond Group may utilize:

1.Demographic Segmentation: This involves dividing the market based on demographic

variables such as age, gender, income, occupation, education level, and marital status.

For example, the Raymond Group may tailor specific product lines or marketing

campaigns to different age groups or income brackets.

2.Psychographic Segmentation: Psychographic segmentation focuses on dividing the

market based on psychological and lifestyle characteristics, including personality traits,

values, interests, opinions, and attitudes. This segmentation approach helps the

Raymond Group understand the motivations, preferences, and behaviors of different

customer segments.

3.Geographic Segmentation: Geographic segmentation involves dividing the market

based on geographic variables such as location, region, climate, or urban/rural areas.

This segmentation strategy enables the Raymond Group to cater to the unique needs and

preferences of customers in specific geographic locations.

23
4.Behavioral Segmentation: Behavioral segmentation categorizes customers based on

their purchasing behavior, usage patterns, brand loyalty, and benefits sought. The

Raymond Group may target different segments based on factors such as frequency of

purchases, purchase volume, product usage, or loyalty to the brand.

5.Occasion-based Segmentation: Occasion-based segmentation focuses on customer

behavior and preferences during specific occasions or events. The Raymond Group may

customize product offerings or marketing campaigns for occasions such as festivals,

weddings, or corporate events.

6.Benefit Segmentation: Benefit segmentation involves categorizing customers based on

the specific benefits they seek from a product or service. The Raymond Group may

identify and target segments that value attributes such as style, comfort, quality,

affordability, or sustainability.

It's important to note that the Raymond Group's segmentation strategy may evolve over

time, and they may refine their approach based on changing market trends and consumer

insights.

3.3 Pricing

Pricing methods and factors affecting pricing strategy of company

The Raymond Group employs various pricing methods and considers several factors

when determining their pricing strategy. It's important to note that the Raymond Group's

pricing strategy may be influenced by their specific market dynamics, competition,

target customers, and product offerings.

24
Here are some commonly used pricing methods and factors that can affect the pricing

strategy of the Raymond Group:

Pricing Methods:

1.Cost-based Pricing: The Raymond Group may use cost-based pricing methods, where

the price is determined by adding a markup to the cost of production or procurement.

This ensures that the selling price covers the costs incurred and allows for a desired

profit margin.

2.Value-based Pricing: Value-based pricing focuses on setting prices based on the

perceived value of the product or service to the customer. The Raymond Group may

consider factors such as the quality, uniqueness, and benefits offered by their products

when determining the price.

3.Competitive-based Pricing: Competitive-based pricing involves setting prices based

on the prices charged by competitors in the market. The Raymond Group may analyze

the pricing strategies of their competitors and adjust their own prices to remain

competitive.

Factors Affecting Pricing Strategy:

1.Cost of Production: The Raymond Group considers the cost of raw materials, labor,

manufacturing, and overhead expenses when setting prices. The efficiency of their

production processes and supply chain can impact the cost structure and, subsequently,

the pricing strategy.

25
2.Market Demand and Customer Perception: The level of demand for the Raymond

Group's products and the perceived value by customers play a significant role in pricing

decisions. The company may conduct market research and analyze customer preferences

to understand how price affects demand and adjust pricing accordingly.

3.Competitive Landscape: The pricing strategy of the Raymond Group may be

influenced by the pricing practices of their competitors. They may assess the prices

offered by competitors for similar products and consider their market positioning when

setting their own prices.

4.Product Differentiation: The extent to which the Raymond Group's products are

unique or differentiated from competitors can affect pricing decisions. Higher levels of

differentiation may allow for premium pricing, while commoditized products may

require competitive pricing strategies.

5.Economic Factors: Economic conditions such as inflation, exchange rates, and overall

market conditions can influence pricing decisions. The Raymond Group may consider

these factors to ensure their prices remain competitive and aligned with market trends.

6.Distribution Channels: The choice of distribution channels and associated costs can

impact pricing decisions. The Raymond Group may consider the costs and margins

associated with different channels when determining their pricing strategy.

It's important to note that the specific pricing methods and factors affecting the pricing

strategy of the Raymond Group may vary based on their product categories, market

dynamics, and strategic objectives.

26
3.4 Promotion

Components of promotion mix. (Advertising, sales promotion, etc.)

The Raymond Group utilizes a variety of components in their promotion mix to

effectively reach their target audience and promote their products and services. It's

important to note that the Raymond Group may tailor their promotion mix based on their

specific marketing objectives, target market, and product offerings.

1.Advertising: Advertising involves using paid media channels such as television, print

media, radio, digital platforms, and outdoor advertising to reach a wide audience and

create awareness about their products and brand. The Raymond Group may develop

creative and compelling advertisements to convey their brand message and highlight the

features and benefits of their products.

2.Sales Promotion: Sales promotion activities are designed to stimulate immediate sales

and create excitement among customers. The Raymond Group may offer discounts,

coupons, special promotions, contests, loyalty programs, or limited-time offers to

incentivize customers to purchase their products.

3.Public Relations (PR): Public relations activities focus on managing the public image

and reputation of the Raymond Group. This may include media relations, press releases,

organizing events, sponsorships, and involvement in community initiatives. PR helps to

build a positive brand image and enhance credibility.

4.Personal Selling: Personal selling involves direct interaction between the Raymond

Group's sales representatives and potential customers. This can occur through face-to-

27
face meetings, phone calls, or online platforms. Personal selling allows for a

personalized approach, where sales representatives can provide product information,

answer questions, and build relationships with customers.

5.Direct Marketing: Direct marketing involves reaching out to customers directly

through various channels such as direct mail, email marketing, telemarketing, or SMS

marketing. The Raymond Group may use targeted and personalized messages to

communicate with their customers, provide product information, and encourage direct

responses.

6.Digital Marketing: Digital marketing encompasses various online strategies to reach

and engage with customers. This includes activities such as search engine optimization

(SEO), social media marketing, content marketing, influencer marketing, and online

advertising. The Raymond Group may leverage digital channels to connect with their

target audience, drive website traffic, and generate leads.

It's important to note that the specific components of the promotion mix employed by

the Raymond Group may vary based on their marketing objectives, budget, and target

market. They may prioritize certain components over others based on their effectiveness

in reaching their desired audience and achieving their promotional goals.

Sales Promotion techniques used by company (discounts, sale, coupons etc)

The Raymond Group utilizes various sales promotion techniques to attract customers,

drive sales, and create excitement around their products.

Here are some common sales promotion techniques that the Raymond Group may

employ:

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1.Discounts: The Raymond Group may offer discounts on their products to encourage

customers to make a purchase. This can include percentage-based discounts, seasonal or

clearance sales, buy-one-get-one (BOGO) offers, or volume-based discounts.

2.Coupons: Coupons are often used by the Raymond Group to provide customers with

a discount on specific products or product categories. Coupons can be distributed

through various channels such as newspapers, magazines, online platforms, or directly

at the point of sale.

3.Promotional Bundles: The Raymond Group may create promotional bundles where

they combine multiple products or services at a discounted price. This encourages

customers to buy more items or try different offerings within their product portfolio.

4.Loyalty Programs: Loyalty programs are designed to reward customers for their repeat

purchases and brand loyalty. The Raymond Group may offer exclusive discounts,

special offers, or points accumulation systems that customers can redeem for future

purchases.

5.Contests and Giveaways: The Raymond Group may organize contests, sweepstakes,

or giveaways to engage customers and create buzz around their products. This can

involve customers participating in activities, sharing content on social media, or entering

their details for a chance to win prizes or exclusive experiences.

6.Free Samples: The Raymond Group may distribute free samples of their products to

potential customers to introduce them to their offerings and generate interest.

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7.Trade-in Offers: The Raymond Group may provide trade-in offers where customers

can exchange their old products for a discount on new purchases. This encourages

customers to upgrade their products while providing an incentive to choose the

Raymond Group's offerings.

8.Gift with Purchase: The Raymond Group may offer a free gift or additional product as

a bonus when customers make a purchase. This adds value to the customer's purchase

and encourages them to choose the Raymond Group over competitors.

It's important to note that the specific sales promotion techniques employed by the

Raymond Group may vary based on their marketing objectives, product categories, and

target market. They may use a combination of techniques or tailor their promotions to

specific customer segments or occasions.

3.5 Distribution

Channels/ Intermediaries used by the company (wholesaler, Retailer etc.)

The Raymond Group utilizes a combination of channels and intermediaries to distribute

their products effectively and reach their target customers.

Here are some common channels and intermediaries that the Raymond Group may

utilize:

1.Wholesalers: Wholesalers are intermediaries that purchase products in bulk from the

Raymond Group and distribute them to retailers or other businesses. Wholesalers may

operate independently or as part of a larger distribution network.

2.Retailers: Retailers are the final point of contact with customers and sell products

directly to consumers. The Raymond Group may work with various types of retailers,

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including department stores, specialty stores, boutiques, and online retailers, to make

their products available to customers.

3.Online Marketplaces: The Raymond Group may leverage online marketplaces such as

Amazon, Flipkart, or their own e-commerce platform to sell their products directly to

customers. This allows for wider reach and convenience for online shoppers.

4.Company-Owned Stores: The Raymond Group may have their own retail stores or

flagship stores where they directly sell their products. These stores can showcase the full

range of Raymond Group's offerings and provide a branded shopping experience.

5.Distributors: Distributors play a role in distributing Raymond Group's products to

retailers or other customers. They may have exclusive rights to distribute Raymond

Group's products in specific regions or markets.

6.Agents and Sales Representatives: The Raymond Group may engage agents or sales

representatives who work on commission to promote and sell their products to retailers

or customers. These individuals act as intermediaries between the Raymond Group and

the buyers.

7.Franchisees: The Raymond Group may have franchise partnerships where independent

business owners operate stores or outlets under the Raymond brand. Franchisees are

responsible for selling Raymond Group's products in their designated areas.

8.Export Partners: The Raymond Group may work with export partners or distributors

in different countries to sell their products internationally. These partners understand the

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local market and help expand the reach of the Raymond Group's products globally.

It's important to note that the specific channels and intermediaries used by the Raymond

Group may vary based on their product categories, market presence, and distribution

strategy.

3.6 Sales Management

Target decision making.

The target decision-making process of the Raymond Group involves identifying and

selecting the specific market segments or customer groups that they aim to serve. Target

decision-making is a crucial step in developing effective marketing strategies and

allocating resources efficiently.

Here are some key factors that may influence the target decision-making of the Raymond

Group:

1.Market Segmentation: The Raymond Group may engage in market segmentation,

which involves dividing the overall market into distinct groups of customers with similar

characteristics, needs, and preferences. They may consider demographic factors (age,

gender, income, etc.), psychographic factors (lifestyle, values, attitudes), geographic

factors (location, region), and behavioral factors (usage patterns, buying behavior) to

identify relevant market segments.

2.Customer Analysis: The Raymond Group may conduct in-depth customer analysis to

understand the specific needs, preferences, and behaviors of their target customers. This

can involve market research, surveys, focus groups, and data analysis to gain insights

into customer demographics, buying patterns, motivations, and expectations.

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3.Market Potential: The Raymond Group may evaluate the market potential of different

customer segments to identify the most attractive opportunities. This analysis may

involve assessing the size, growth rate, purchasing power, and competitive landscape of

each segment to determine its viability and potential profitability.

4.Competitive Advantage: The Raymond Group may consider their unique strengths,

capabilities, and competitive advantage when selecting target segments. They may focus

on customer segments where they can differentiate themselves from competitors and

offer superior value through their products, services, or brand positioning.

5.Resource Allocation: The Raymond Group may evaluate their available resources,

including marketing budgets, distribution capabilities, and production capacity, to

determine which target segments they can effectively serve. They may prioritize

segments that align with their available resources and strategic objectives.

6.Market Trends and Opportunities: The Raymond Group may monitor market trends,

industry developments, and emerging opportunities to identify potential target segments.

They may seek to capitalize on changing customer needs, emerging market segments,

or new market niches that align with their capabilities and product offerings.

7.Strategic Fit: The Raymond Group may align their target decision-making with their

overall business strategy. They may focus on segments that align with their core

competencies, long-term growth objectives, and brand positioning.

It's important to note that the specific target decision-making process of the Raymond

Group may involve a combination of these factors and may be influenced by their

industry, product portfolio, and market dynamics.

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Deployment of sales force

The deployment of the sales force by the Raymond Group involves organizing and

managing a team of sales representatives who are responsible for promoting and selling

the company's products to customers.

Here are some key aspects of sales force deployment that the Raymond Group may

consider:

1.Sales Force Structure: The Raymond Group may determine the structure of its sales

force based on factors such as geographic coverage, customer segments, product

categories, or distribution channels. They may have a regional or territory-based

structure, where sales representatives are assigned to specific territories or regions.

Alternatively, they may have a product-based structure, where sales representatives

specialize in selling specific product lines or categories.

2.Sales Force Size: The Raymond Group may determine the optimal size of its sales

force based on market potential, target customer base, and sales targets. They may assess

the number of sales representatives required to effectively cover the target market and

achieve desired sales objectives. This assessment considers factors such as customer

density, sales volume, and the complexity of the selling process.

3.Recruitment and Training: The Raymond Group may have a structured recruitment

and training process to ensure that sales representatives possess the necessary skills,

knowledge, and attributes to effectively represent the company and sell its products.

They may actively recruit experienced sales professionals or provide comprehensive

training programs to develop the required expertise.

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4.Territory Allocation: If the Raymond Group follows a territory-based structure, they

may allocate specific territories or regions to individual sales representatives. Territory

allocation takes into account factors such as customer density, sales potential, and travel

logistics. The goal is to ensure balanced workloads and effective coverage of the target

market.

5.Sales Targets and Incentives: The Raymond Group may set sales targets for each sales

representative, aligned with the company's overall sales goals. Sales representatives may

be incentivized through commission structures, bonuses, or performance-based rewards

to motivate them to achieve or exceed their targets. These incentives can drive sales

performance and encourage sales representatives to actively promote the company's

products.

Sales Organization Structure

The sales organization structure of the Raymond Group may vary based on the

company's specific sales strategy, product portfolio, target market, and organizational

requirements.

Here are some common elements and levels in a sales organization structure:

1.Sales Leadership:

•Chief Sales Officer (CSO) or Vice President of Sales: The top-level executive

responsible for overseeing the entire sales function within the Raymond Group.

2.Sales Divisions/Departments:

•Regional Sales Managers: These managers oversee sales activities in specific regions

35
or territories. They are responsible for managing sales teams, achieving sales targets,

and ensuring effective coverage of their assigned areas.

•Key Account Managers: These managers focus on building and managing relationships

with key accounts, which are typically large or strategically important customers.

•Product Sales Managers: These managers specialize in specific product lines or

categories and are responsible for driving sales and promoting those products.

•Channel Sales Managers: These managers are responsible for managing sales through

specific distribution channels, such as wholesalers, retailers, or online marketplaces.

3.Sales Teams:

•Sales Representatives/Executives: These individuals are responsible for directly

engaging with customers, promoting products, and closing sales. They may be assigned

to specific territories, customer segments, or product lines.

•Inside Sales Representatives: These sales professionals handle sales activities remotely,

such as phone-based sales, online sales, or customer support.

•Sales Support Staff: This includes individuals who provide administrative, operational,

or technical support to the sales team, such as sales coordinators, sales assistants, or sales

analysts.

4.Sales Operations:

•Sales Operations Manager: This role focuses on managing and optimizing the overall

sales operations, including sales processes, systems, data analysis, and sales

performance tracking.

•Sales Training and Development: This department is responsible for providing training

and development programs to enhance the skills and knowledge of the sales team.

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Data observations

Based on the micro analysis of the Raymond Group, several key observations can be

made:

1.Strong Financial Performance: The financial analysis reveals that Raymond Group has

demonstrated consistent revenue growth and profitability over the years. This indicates

the company's ability to effectively manage its operations and adapt to market

conditions.

2.Brand Equity and Market Presence: Raymond Group has successfully built a strong

brand equity in the textile and apparel industry. The company's reputation for quality

fabrics and fashion offerings has enabled it to establish a significant market presence,

both domestically and internationally.

3.Multi-Channel Marketing Approach: Raymond Group adopts a multi-channel

marketing strategy, encompassing offline and online retail, to reach a wider customer

base. This approach allows the company to cater to different consumer preferences and

enhance its market reach.

4.Emphasis on Innovation: The analysis highlights Raymond Group's focus on

innovation and continuous product development. This strategic emphasis enables the

company to stay relevant in the ever-changing fashion industry and meet evolving

customer demands.

5.Commitment to Sustainability: Raymond Group has implemented sustainable

practices in its operations, including efficient manufacturing processes, waste reduction

37
measures, and renewable energy sources. This commitment to sustainability aligns with

growing consumer demands and enhances the company's brand reputation.

6.Employee Engagement and Talent Management: The company places importance on

employee engagement, training, and leadership development. This focus on human

resources contributes to a motivated workforce and promotes a culture of excellence

within the organization.

7.Divisional Structure: Raymond Group operates under a divisional structure, allowing

for focused management and decision-making in each business segment. However, this

structure may pose challenges in terms of coordination and integration across divisions.

8.Intensifying Competition: The analysis suggests that Raymond Group faces

intensifying competition in the textile and apparel industry. As the market becomes more

crowded, the company needs to continuously innovate and differentiate itself to maintain

its competitive edge.

9.Need for Digital Transformation: While Raymond Group has made strides in its

marketing strategies, there is a need to further invest in digital marketing and e-

commerce capabilities.

10.External Influences: The micro analysis primarily focuses on internal aspects of the

company and may not fully capture external factors such as macroeconomic conditions,

industry trends, or regulatory changes that could impact Raymond Group's performance

and prospects.

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Conclusion

The micro analysis of Raymond Group provides valuable insights into the internal

aspects and performance of the company. By examining its organizational structure,

financial performance, marketing strategies, human resources, and operations, we have

gained a comprehensive understanding of the company's strengths, weaknesses,

opportunities, and threats. Raymond Group has established itself as a prominent player

in the textile and apparel industry, with a strong brand equity and a track record of

financial success. The company's divisional structure enables focused management,

while its consistent revenue growth and profitability demonstrate its ability to adapt to

market dynamics and customer preferences.

In terms of marketing, Raymond Group has effectively utilized its brand equity to

expand its market reach. The company's multi-channel approach, combined with a focus

on innovation and continuous product development, has allowed it to stay relevant and

competitive. To further capitalize on changing consumer behavior, Raymond Group

should invest in digital marketing and e-commerce.

The company's emphasis on human resources is evident through its employee

engagement, training, and leadership development initiatives. By fostering a motivated

and innovative workforce, Raymond Group can drive its growth and maintain a culture

of excellence. Raymond Group's commitment to sustainable practices is commendable,

with a focus on efficient manufacturing processes and environmental responsibility. This

not only enhances its brand reputation but also aligns with the growing consumer

demand for sustainability.

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While Raymond Group enjoys several strengths, it must also address challenges such as

intensifying competition and the need for continuous innovation. By leveraging its core

competencies, capitalizing on opportunities, and mitigating weaknesses, the company

can sustain its growth trajectory and maintain its market leadership position.

Raymond Ltd having the good human resource. The entire employees in the company

are well trained and qualified in to the work. All the departments are well established

and fulfill the need of the employee. So the work environment is very good. The

company is doing well in the market but have to improve the quality of the product. The

machinery used in production is also not so updated.

If company will improve in the all mentioned sector the sale of the company will

increase and the company will achieve the top rank in the competition Raymond Ltd is

one of the leading multinational companies in India. This company produces fabrics.

This company has the large share of the market. It is having more turn over comparing

then other fabric companies in India. The company Raymond have the main competitors

are not the Indian they are also the multinational companies but they are not the Indian

company.

In conclusion, the micro analysis of Raymond Group highlights its overall strength,

adaptability, and strategic focus. With a clear understanding of its internal dynamics and

market positioning, the company is well-equipped to navigate the evolving landscape of

the textile and apparel industry. By staying agile, customer-centric, and sustainability-

focused, Raymond Group can continue to thrive in a competitive market.

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Limitations

While conducting a micro analysis of the Raymond Group provides valuable insights, it

is important to acknowledge the limitations inherent in such an analysis. Some of the

limitations include:

1.Lack of External Factors: Micro analysis focuses primarily on internal aspects of the

company, such as organizational structure, operations, and financial performance. It may

not take into account external factors such as macroeconomic conditions, industry

trends, and regulatory changes, which can significantly impact the company's

performance.

2.Limited Scope: Micro analysis typically focuses on specific areas or aspects of the

company. While it provides a detailed understanding of these areas, it may not provide

a holistic view of the company's overall performance or its interactions with the external

environment.

3.Data Availability and Reliability: The accuracy and reliability of the micro analysis

heavily depend on the availability and quality of data. Obtaining comprehensive and up-

to-date information about the company's internal operations and performance may be

challenging, especially if the data is not publicly disclosed or if it is subject to limitations

in terms of transparency.

4.Subjectivity: Micro analysis involves interpretation and analysis based on available

information. Different analysts may have varying perspectives and biases, which can

introduce subjectivity into the analysis. It is important to critically evaluate the findings

and consider multiple viewpoints.

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5.Limited Future Orientation: Micro analysis typically focuses on historical data and

current performance. While it can provide insights into the company's present situation,

it may not fully capture future trends, challenges, or opportunities that may arise. Thus,

it is crucial to complement micro analysis with other tools, such as scenario planning

and market forecasting, to assess the future prospects of the company.

6.Changing Dynamics: The business landscape is dynamic and constantly evolving.

Factors such as technological advancements, market disruptions, and shifts in consumer

behavior can quickly render the findings of a micro analysis outdated. Regular updates

and ongoing monitoring are necessary to ensure the analysis remains relevant.

It is important to consider these limitations while conducting and interpreting a micro

analysis of the Raymond Group or any other company. Supplementing the micro

analysis with a macro analysis and market research can provide a more comprehensive

understanding of the company's position and prospects.

References/Bibliography

1. Government of India, Statistical Data, Ministry of Textiles.

2. Mandavia, Megha & Kalesh, Baiju, Raymond got its mojo back through CEO

Sanjay Behl, The Economic Times, June 9, 2016.

3. The Economic Times, Raymond aims to double FMCG turnover to Rs 1,000

crore in 3-4 years, Nov-16, 2017

4. Times Now, TNN Report, Raymond’s man Vijaypat Singhania is now penniless,

blames son Gautam for his condition, August 10, 2017.

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