Answer to Question #194432 in Management for gargi

Question

Mr. Ramesh is contemplating to enter the men’s top end shirts category. The company already has a brand “CLINGERS” in the middle segment (₹350-700). The brand is very popular amongst the target audience. Mr. Ramesh now wants to play the value game and enter the top end (₹700+) category. He knows there are some formidable brands. that will make life extremely difficult . Mr. Ramesh has decided to keep the brand name as “Clingers Gold”. He has decided to allocate ₹10 crores for sales promotion and advertising budget. Unique Industries is simultaneously entering the readymade trousers market and shoes market. Mr. Ramesh has decided to keep the same brand name “CLINGERS” to leverage the success of the brand name to the two new categories.

a. Do you think the brand name “Clingers Gold” is right for the top end segment? Justify your

answer.

b. Which factors you think needs to be studied before making such entry in the market?

Answer 1

Answer

a)     Yes, since the company could grow and build its market in the middle segment, changing its name will highly affect them. Thus they should maintain the brand name and continue building on it in the top segment

b) i.    Knowledge or Expertise- Examine different and better methods to beat the competitors.

     ii.    Market or Demand- He needs to consider demand and market size for the product. This will include the growth potential and profit margins to expect.

   iii.     Start-up Costs- He will have to assess the total cost required to set up and run your business successfully.

    iv.     Capital and Finance- This generally includes the capital that he can introduce from his savings as well as the funds that he can borrow.

     v.     Competition- He needs to know his competitors and what they are doing to survive in the market for a long time.