A Case Study On Brand Factory Marketing Essay

Retail Business has in recent times catapulted itself in to the top growing industry in India. Today generally in most cities you can see these Retails Business giants penetrating even into lanes and by lanes. There many bigwigs who've made a successful foray into the forex market. The forex market is contributing a huge10 per cent to the GDP of the country. In terms of providing job, retailing in India stands at about eight % which is winding its way to be the next increase on the market.

The current scenario in the retail sector in India is projecting extensive expanse in shapes and sizes metamorphosing into shopping complexes, department stores, huge complexes nick known as multiplexes offer shopping bonanza, entertainment galore and extensive food pass on; all in a single court docket that was hitherto known only in advance monetary countries. The world of shopping has gone through a sea-change in conditions of design and consumer behavioral routine, attracting a welcoming an almost rebellious shopping in India. Removed are the days when you interacted with the typical street corner food shop-keeper across the counter. You will have the liberty to see, touch, feel and compare the wider selection of products and make collection of your choice. This has created a fresh activity for the family shopping under one- rooftop and coming back satisfied apart from the sojourn adding to enjoyment to some extent. The arrival of Retail Business has cascaded other businesses including the real estate. The necessity of vastness of infrastructure for the Retail business has indirectly catapulted business of Real estate, resulting in unimaginable scale of investments. The real estate sector noticed a massive local and International operators flushing funding in the introduction of the infrastructure and complexes to focus on the needs of the Retail business.

The driving force adding to the development of the Retail business in India is several. They are-

[1] Underdeveloped Retail business limited to a few entrepreneur bringing the concept of the west to India

[2] Drop in real estate prices

[3] Sudden improvement of spending electricity in the hands of the consumer especially in the centre Income group

[4] A gradual switch of several luxury products becoming products for minimal comfort as a consequence to living standard of living and practices.

The tremendous increase in the youth portion of our ever increasing population, attracting the much needed changes and fresh outlook in life is a significant factor. The introduction of IT industry ushered in higher home take income that could not be dreamt by even the parents of the young ones whose purchase electric power got a quantum leap. The splitting up of Joint family members into nuclear ones in the locations and towns, increasing new trend of the women taking up to working alongside men led to the bringing up of remarkable opportunities in the assistance and retail industries.

These are a few of the best contributory cause leading to development of an arranged retail sector in India. Retail business in India currently prides itself in promoting virtually all personal preferences in life. To mention some of them -

Clothing and Textiles especially apparels & accessories

Consumer appliance

Electronics gadgets, Makeup products and Toiletries

Products for Home & for any office,

Travel and Leisure etc.

For ages, ages have seen the good old Grocer in the neighborhood; the development of the Retail portion in India is witnessed a metamorphic addition and enlargement. One should remember that the nice old Grocer retailers have not disappeared as great deal of pundits possessed forecasted. The torrents of modern supermarkets havent made a great dent in the Indian evergreen traditional retail marketplaces. Departmental blocks, Supermarkets, Hypermarkets and Niche stores are the new platforms in the Retail portion that contain been welcomed whole-heartedly by the increasing populace, especially the young ones who are constant are on the look out for change.

The composition of the Retail market in India has liberalized to add sever verticals in differing types catering with their respective focus on clients. The metropolitan areas fast lanes and bye lanes are dotted with shopping malls and multiplexes giving them the look of modernity and coming of age especially the large towns. With all the current major metropolitan areas having been saturated, the avalanche of the Retail segment has penetrated the Tier II places that happen to be fast getting and aren't lagging far behind in the race.

Statistics obtained on jogging and developmental plans up to 2007 reveals a extrapolation around 220 stores, consisting of 140 of them in the metros and the rest of the 80 in the Tier II metropolitan areas. The State governments of the state governments of New Delhi and Country wide Capital Region (NCR) are really thrilled in allotting land for Retail Commercial infrastructure development, thereby making availability of additional land for retail portion; thus making NCR contribute to 50% of the malls that have come up. Graphics highlights of this analysis of India Capital City and its surrounding II tier cities receive below

Explanation: While Delhi being the administrative centre first forayed in to the Retail Market. The development of this development in Delhi also implemented suit in the II tier towns, a few of them even surpassing it.

The Global players are eying India as a growth potential goldmine for investment in Retail business. Current review has ranked India as the utmost happening destination for Retailers segment in magnetic growing Retail market. India's bludgeoning middle class that is seen as a virgin, untapped market in the Retail industry is at the eye for access for the global Retail bigwigs. While India offers of over 5. 1 million Retail outlets, the segment is packed with small timers spread regarding the convenience of the Retail owners. This lop-sided market is an ensemble sans the grandiose of large size operators like multiplexes, hypermarket and the like. This circumstance offers on platter huge scopes of great opportunity of business for the Global retailing specialists. The organised retail sector is slated to out develop more powerful than GDP in the coming decade chiefly motivated by fast and ever changing life styles, burgeoning pay-packet and beneficial distribution design of the Retail market.

Another major feather in the cover of the Retail industry in India is allowance of 51% FDI in each brand wall socket. A second series of reforms, the federal government is now mulling is to initiate in this section is further liberalizing the norms for investment. This runs quite a distance in favor of the retail segment's development in terms of design understanding, building quality and affording modern facilities and also helps nurturing a consumer-friendly situation.

Retail business in India is at crucial juncture the future for the consumer markets is guaranteeing high potential for growth. Governments guidelines are becoming increasingly favorable in conjunction with emerging solutions are which makes it conducive for businesses in and out of India. This upsurge in the retail business has put India as a wish destination for retail buyers and has also catapulted concurrently as corollary to the Retail business powerful investments in the Real House sector.

For the general global buyers who cautiously test the Indian Marketplaces for investments, local companies and joint projects in the retail segment are seen to be more favorably juxtaposed than the stand-alone foreign operators in the growing structured retailing business.

Objective of the Study

The purpose is to unshackle the intricacies in the

Supply String Decisions and

Supply Chain Model in the Retail verticals

In order deciphering the significance and the roles traced from the logistics and the Resource Chain System [SCS] of the Merchants on the economies of range of establishments mixed up in industry.

Literature Review

Importance of Logistics & SCM

A 'Source Chain' is nothing but a network in providing flexibility of operational need and options in syndication that facilitates in procurement of resources and accessories in order to convert these into intermediate and completed products. This will culminate in the distribution of the completed products to end user.

'Supply Chains' can be found in the service as well as manufacturing establishments; they change in their complexness of the chain that is significantly different from industry to industry and company to company.

A very simple Supply String for an individual product can be to procurement of Raw material from suppliers that can be processed to bring out the requisite finished product from an individual step for even more transportation to the syndication channels and ultimately the end consumer.

In fact 'Supply Chains' have multiple completed products that has distributed system, conveniences, spares and capacities. Again the move of inputs [materials] need not be on archaic and founded network. In fact every requirement is due to available resources, different modes of transporting to be examined for optimal usage and the price tag on inputs for the completed items can be both considerable and huge.

'Supply String' from forever contains Planning, Purchasing Manufacturing, Storing-cum-distribution and marketing institutions functioning independently. Each of these institutions has their own goals and objectives that tend to be at cross roads to each other. Establishments focusing on marketing aims at providing advanced of customer support and to maximize turnover which are in direct turmoil with the goals of the developing establishments and distributor organizations.

Most of the procedures pertaining to produce have designs in optimizing the outcome and reducing of the costs but they are either ignorant of have scant value on its negative implications on inventory levels and syndication capacity.

Purchases are contracted through negotiations with scant research attempts to gather extra information extending beyond past buying patterns and practices.

Lack of cohesiveness in integrating the necessity of all the the different parts of the 'Resource Chain' can results in haphazard lopsided development that can result in the collapse the complete business if not corrected. This plainly calls for a mechanism that can cater to these different functions for a fruitful integration. 'Source String' management is on such weapon for such integration to happen.

'Supply string' management is mostly seen for presence in between complete vertically involved establishments wherein the total material move is managed by an individual establishment overseeing each route establishment operating independently.

Integrated and coordinated functioning among the various operators in the 'Source chain' is the key for effective management.

Cooper and Ellram [1993] have likened the 'Supply Chain' management to a Sports Relay team that is well-balanced and well-practiced. A well oiled equipment function perfectly with each of its parts performing efficiently like the relay team where each player is aware their specific position for the hand-off. The coordination must be the most powerful between players who immediately pass on the baton, yet the entire team makes a coordinated effort to succeed the competition.

Research Problem

Understanding of the nuances engaged and the intricacies of functions in a 'Source Chain management

Supply String Decisions

Decision making in 'Resource Chain management are of two wide categories -

Strategic and


While these conditions are self-explanatory, they implication is that the strategic decisions are made basically on an extended term range. These go hand-in-glow with the organization strategy that sorts the guiding concept for the 'Source Chain' plans at he designing stage.

Operational decisions, on the other hand, are short-term based to give attention to day-to-day activities. The principal need for these decisions is to control the product move effectively and successfully aligning with the "strategically" organized 'Supply Chain.

The 'Source Chain' management includes four major decision-making world which are



Inventory and

Transportation (distribution)

In each one of these arenas there exists scope for both Strategic and Operational elements that needs to be looked after.

Location Decisions

The geographic distribution of production facilities, stocking storage centers and sourcing centers are the basic starting place in formulating a 'Supply Chain'. The location in terms of availability of facilities requires a commitment of resources over a long-term basis. Once the size, number, and location of these are firmed up it paves just how for suitable string flow where the product grows to the end individual. These decisions are necessary to the establishment since they ultimately lay the foundation for a technique to access customer markets, and can have a sharing with effect on income, cost, and efficiency of service. Perseverance of the decisions will depend on optimizing regular functions that has a bearing on creation l& syndication costs, tasks & duty downside, tariffs, taxes, domestic content, unavoidable constraints in development, etc. (See Arntzen, Brown, Harrison and Trafton [1995] for research. ) Decisions on Location, though are mainly strategic, they may have significant implications at the functional level.

Production Decisions

What products to create, seems a straightforward question but the most important factor forming part of the strategic decision making including which plants to create what products. This can also will serve as the guiding factor for allocation of suppliers to plant life, plants to Circulation Programs [DC], and DC's to end user markets. These decisions nevertheless have a huge bearing on the profits, costs and degrees of service to the end customer of the organizations. Decisions are always considered on the presumptions of the availability of the resources and facilities and thereby determine the precise pathways for move of product to and from the centers offering the mandatory facilities. The next critical factor concerns with the capability to manufacture the required facilities--and this again primarily depends on the level of vertical integration interior to the establishment. Decision making on operations takes into consideration the detailed production scheme. Master production construction chart, Machine functioning graph, Plant maintenance chart are a few of the effect from Production decisions. Still other decisions to adopt are on workload balancing, and quality control techniques at a creation centre.

Supply Chain Modeling Approaches

It is but clear that, both Location and Development decisions mentioned above need entirely different thought and plan perspective. The totality of the whole establishment is usually to be considered in tactical decisions for an all-encompassing impact that leads the way for integrating different facets of the 'Supply Chain'. This naturally brings to the choice different models that are ascribable to the decisions are extensive, and require a large volume of data control. These models provide approximate answers to the decisions they identify often due to the large volume of data requirements, and to the wider range of decisions. Meanwhile, the operational decisions focus on the day-to-day operation in the 'Supply Chain'. Here the models that focus on them are often clearly specific to the development requirement. The restricting perspective of the models frequently is dealt in minute details to provide effective if not best solutions.

For better knowledge of the procedure of selection and knowledge of the models, an accurate review of the books, and simultaneously an attempt to include the aforementioned contradictory aspect in the models, modeling solutions are categorised into three types ---

Network Design

Rough Lower methods and

Simulation based methods.

Network design methods: This method largely provides normative models for extensive strategic decisions. Largely, these models include four major decision areas as stated earlier and aim for more on the creating area of the 'Supply String', establishment of the network and the correlated moves in it.

Rough lower methods: This technique, as different from the Net work design, provides insurance policies as suggestions for the operational decisions. These models mainly presume a "single site" quite simply disregard the network and contributes 'Supply string' characteristics to it, for example they plainly consider the site's regards to the network's others segments.

Simulation methods: This is a method in which an exhaustive 'Supply Chain' model can be analyzed, consideration both the Strategic and the Operational decisions. There exists however a phrase of caution that this is same for many simulation models; so assessments are effective limited by pre-specified policy somewhat than for development of fresh a policy. "What If?" versus "What's Best? is the age old tussle that needs to be tackled.

Network Design Methods

These methods, as the name is self explanatory, decides the positioning of development, storing of stock and sourcing resources, and 'Resource Chain' the merchandise(s) proceed through them. These procedures generally are of large level, and used typically while planning from the beginning of the 'Resource String'.

Geoffrion and Graves [1974]: These were the pioneers in this concept but it was not known as 'Supply Chain' then. They released for the very first time a 'Multi-commodity Logistics Network Design' model for gross annual maximizing the move for finished product originating from production crops to the Distribution Channels onward to the end user.

Geoffrion and Capabilities [1993]: They traced the history for two decades, the development of the syndication strategies. He described as to how the subsequent settings from the above mentioned model which range from more segments and many commodities details.

Breitman and Lucas [1987]: They tried to create a platform for an all-inclusive model of a production-distribution system, "PLANETS". This model was useful to take decisions like-

What products to produce

Where and exactly how to produce it?

Which market segments to follow and

What resources to utilize.

As part of a prestigious project these were successful in doing the implementation at Standard Motors.

Cohen and Lee [1985]: They worked on a creative framework for processing strategy evaluation. Here they developed was included with a descriptive group of stochastic sub-models, that needed into consideration the annual product moves tracing it from the uncooked material suppliers through intermediate crops and distribution sections, finally achieving the end user. They used the heuristic solutions to connect and boost the sub- models. Later on they came up with models and methods that could integrate and possessed readable exposition [Cohen and Lee [1988]].

This time they shown a normative model for learning resource application all over the World manufacturing and syndication network. After-tax income (profit-local taxes) for their entire market was optimized from a design developed to facilitate network and control of flow of materials inside the network. The composition developed to study cost divided between variable and fixed costs in procurement of materials, production, syndication and travel. The model was validated by adding it to test and studying the global production strategies of company of a personal computer.

Arntzen, Dark brown, Harrison, and Trafton [1995]: They put forth the most all-inclusive identifying model for source chain management. Their main function was to minimize the mixture of cost and time elements. Elements of Costing were to add purchasing, creation, inventory of pipeline, and cost of transportation among different sites, responsibilities, and taxes. Manufacturing lead times and transit times were included under the element of their time. This model was fantastic as it was obviously included obligation and their recovery within the product move through various countries. They achieved remarkable success when they integrated this model at the Digital Equipment Corporation --- $100 million us dollars were preserved.

Rough Slice Methods

Models under this method will be the basis for most of the 'Resource chain' literature, and primarily focus on higher functional or tactical decisions. All most all the integrative research (from a resource chain framework) in the literature considers the Inventory Management point of view. The term 'Supply String' initially made an appearance in various books with the Inventory Management strategy. The crux of the Rough Slash models is the development of Inventory Control policies, considering various levels or sections jointly. These models have been dubbed to be called the "multi-level" or "multi-echelon" inventory control models. Further evaluation can be possessed from referring to Vollman et al. [1992].

Multi-echelon inventory theory has a higher success rate on implementation in the industry. Cohen et al. [1990] has illustrate "OPTIMIZER", among the most complicated models he has run into --- to control IBM's spare-parts inventory. Efficient algorithms and advanced data buildings were created to flourish in large-scale Systems Integration.

Significance of the Study

The key aspects of retail marketing are an attitude of brain.

NRF Foundation/American Express 2004 CUSTOMER SUPPORT survey proved that almost all the shoppers report person service being vital in decisions to make a purchase. Good customer support to traditional buyers revolve around the most essential 'retail employees' and the store ambience. According to the survey, almost two thirds of purchasers expect extremely courteous 'retail employees' (67 percent) and action towards shoppers equal to appreciated customers (65 percent). Pressurization to buy products was disliked by the consumers being (69 percent) and also found it very essential that employees can be found and should ask for help (61 percent). Ambience was a factor for them recommended neat and clean store, which 60 percent of buyers valued most.

Retail marketing decisions are powered with what the consumers need and want.

The customers of any consumer products are individuals and their purchase of such products or services is because of their personal consumption. Though this looks simple in retail framework it has critical relevance for the management. The management must realize that their entire initiatives cannot be successful unless it knows the practice of how retail consumers come to choose to respond and expect others to behave with him with regards to retail products.

Blackwell, Miniard and Engel (2000): They have got defined the first step of the customer's decision-making process as 'want' popularity in conditions of emotional and mental health requirements. The real crux of the problem is to know in regards to what extent the buyer is serious enough to resolve their problem which depends on their relative obvious significance of the problem encountered by them and the amount of gap between the current and desired level of need to be satisfied. When the necessity recognition is actually at a strong level, only then seek out choice information would be examined called alternatives stages will arise.

What the clients regard as value and what they buy is decisive.

The prospective customers therefore go through various levels of thought process until they choose a brandname or something to get. Branding strategies thus employed by retailers' requirement should be aware of necessities in these first levels that may have a bearing on later alternatives. Further the determinant factor, the amount of common sense that customers evaluate a brandname is their amount of involvement, i. e. higher degrees of engagement denotes far-reaching evaluation operations, (Hawkins, Best and Coney, 1989). Product costs is often regarded as a sign of the amount of engagement since customers spend additional time probing and comparing the same.

The essential elements

A firm's Retail marketing combine may contain several elements, the essentials of them include-

Store location

products assortments

Store ambience

customer service


Communication with customers

Research Methodology

The vital role performed by Research methodologies cannot be undermined in planning the required success and success of the study carried out. Case study strategy has been used for an obvious understanding of the actual problems faced. Technique is the construction for the procedure of research that can be defined to achieve the result we are seeking. This can also be described as a system followed for collecting the requisite data for interpretation culminating into attracting conclusions for the best result.

Cohen, Manion and Morrison (2007) areas that

The design of the research is covered by the idea of fitness for purpose

That which helps in determining the technique and research design.

Searching for facts and results that can take us to a way of starting a new technology/knowledge is the process of research.

Paradigm of Research

Research structure is identified to be presumptions of a person that will lead him to adopt correct conclusions for future activities and results. The style of the study can be researched at three levels

Oates, 2006: Corresponding to Oates, there are three research patterns that are resorted to and are thought to be important in doing any research effectively. These are mentioned below


Constructivism and

Critical Theory.

Research Methodologies used:

Qualitative and Quantitative Data

Qualitative or Quantitative data has a distinctive way of presenting facts for better assimilation of facts that should go beyond percentages. Descriptive and text message based mostly data is represented by Qualitative data and Quantitative data is provided in tabulations and visual forms. The topic of research will count heavily on qualitative evaluation and whenever we can, Quantitative analysis is utilized for greater knowledge of the data. (Hussey, 1997)

Qualitative research method targets discovering the complicated aspect and attempts to answer the questions you start with 'WHY' and 'HOW'. This sort of researches needs people's contribution in the real life situations chiefly because of the intelligence quotient of humans' beings to comprehend and co-relate them in real practice.

Quantitative research method is an organized approach to solve problems. Quantitative methods are generally used to get to the bottom of the problem that delivers answers for questions you start with 'HOW MANY'

Inductive and Deductive:

Inductive approach to research contains assumptions perceived earlier on a subject and ideas built later-on making those assumptions as basics. Quite simply therefore a solution is found basing on the said assumption instead of actual evaluation to prove as to set up said assumptions are appropriate or incorrect.

Deductive methodology on the other hands contains proven hypothesis that are chosen in the first instance and tested to check on when there is fact in it.

Oates (2006) and Hyde (2000): They both are of the opinion that the two ways of inductive and deductive techniques are made using of qualitative and quantitative techniques and different means of collecting data during their research.

The current research employs both the inductive and deductive approaches for deducing a powerful solution for the problems faced in the study relying on observations, action and practice. This also makes use of quantitative and qualitative inquiry methods.

Suitable methodologies because of this research

· Action research:

(Elliott, 1978) was of the view that action research combines the evaluation with indicator and targets matters useful and identified by the members that are complicated and concurrently capable of changing. A whole new view has happen concerning how action research can seek out different methods of integrating themselves to be able to get lasting development of institutions. (Mc Niff and Whitehead 2000).

Case study approach:

This kind of research technique is primarily used for constructing theories to evaluate the complicated problems. Research study way afford for a clear understanding of the possible proceedings like the establishment, people and the social movement. Research study is defined thus -the analysis of an elaborate and specific occasion for knowing the activities in the framework of real life (Helen Simons, 2009). This approach concentrates on the context of the real world in a very in depth way. It considers a specific case in the company or an organization instead of testing the generalized theory.

The four phases mixed up in Case Study strategy are--



Analyze and

Developing the conclusions and implications. (Yin. R, 1994)

Data collection:

There will vary methods of collecting data as explained by (Cohen, Manion and Morrison, 2007) and backed by (Elliot, 1991). They are the following


Conducting tests


Role play


This type of data collecting methods are generally used if the researcher needs the following aspects (Oates, 2006)

Necessity to obtain the clear view

When requesting complicated questions using open-ended method or whose logic should be indicated diversely to different individuals.

To communicate the feelings, feelings and experiences that can't be seen easily when one uses predefined questionnaire method.


Currently most suppliers in India comprise majority interested in the front end, but in contrast few are on the back end and 'Supply String. Yet in countries like the USA, Germany and Great britain, where organised retail is highly developed; 'Supply Chain' efficiency is a significant drawback

The keep tabs on in retail portion of India is different from other global countries. The prepared retail portion in India is terribly fragmented and they face a huge deficit in the 'Supply Chain.

The Future group in India obtains sizable market in range in handling their supply chain. Dealing more than 170000 products, the business looks forward to in a partnership mode, an enormous supplier romance, shunning the unfair provider - buyer transactional philosophy. Back-end procedures are IT enabled and 'Supply string' management boosts consistency and success of the business enterprise.

Future Group, within the operation, also needs to lower its cost of warehousing via a consolidation process. In India almost all retail stores are located in metropolis centers -where they pay very rents and yet have limited storage space which are scarce-'Supply Chain management has grave business implications. Future Logistics presently grips three million SKUs (or stock keeping units) per day spread across the whole Future Group's various retail forms throughout the united states. This quantity, by 2010, is expected to increase to more than 30 million SKUs every day. Even with 98% reliability, over 600, 000 products will not reach the distribution channel correctly, consequently incur an approximate sales lack of over Rs. 4 crores each day.

Zero defect would be the biggest element in consumer logistics in taking care of the 'Resource string'. Only way to achieve No defect is from vertical integration disperse across the entire supply chain-from fresh material supply, creation, low cost and retail, even though infrastructure, technology, automation, processes and folks also play critical role. The components of the 'Resource Chain won't achieve success in silos as they certainly today.

Need for effective logistics

First of most we should have a quick look over the requirement of a good logistics system in India prior to proceeding for revolutionizing in-depth on logistics, one must

Guarantee coordination: Perfect coordination among the various segments of the retail enterprise like suppliers, manufacturers, and vendors.

Perfect timings: Consumers getting the right product at the right time and at the right place must be ensured.

Continuous resource: Seamless and consistent resourceful source to retail stores across different geographic areas is usually to be ensued.

Continuous development: Sustenance in progress of retail businesses over time must lead to achieving profits

Optimum inventory: optimize inventory levels to reduce blockage of capital and reduce wastage of products.

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