INDIA
RESEARCH DOCUMENTATION ON MANGO
PEARL ACADEMY OF FASHION, 2016-2018
ISHA KUMAR PGFSID
RATIONALE
This research documentation provides insights into Spanish fashion and lifestyle brand MANGO, who first entered Indian market in 2001 under a commercial agreement with Major Brands and since then, in 2017 has taken a major decision of changing it’s franchise partner to Myntra, an e-commerce giant in India
This case study is quite interesting to know how mango is trying to change its concepts and strategy to become one of the popular fashion brand name in India
Mango identified problems with major brands which resisted growth and investment and instead landed its trust on the lap of Myntra, considering the fact that,
- it has no experience offline, and also
- proved to generate 100% growth rate online, in less than 3 years from 2014-2016.
Mango has solely given Myntra the keys to retail their brand in India, e-commerce and physical stores with omni-channel customer experience, new technology-packed concept store design, integrated inventory and the concept of Endless Aisle.
According to news reports, there is a 5 years expansion plan with 25 stores across India and increase in global product portfolio from 20% to 100%.
Is this step going to lead mango and Myntra to sky heights as planned, or it deviate; is what we can experience in coming years.
RESEARCH OBJECTIVE
• To gain an in-depth understanding and working of brand Mango.
• To analyze the consumer perception of the brand
• To understand the positioning of the brand in comparison to its competitors.
• To examine and analyze the brand performance and strategy of Mango after it’s partnership with Myntra and create an empirical study, on the basis of brand’s
• product development
• Innovative technology
• Brand communication
• marketing and distribution and,
• It’s presence online.
Secondary research of academic literature was taken up to fortify the case study assessment. Primary data supports quantitative approach for consumer analyses , consumer survey and store observation for brand communication
The conclusion expects to provide a clear cut image of Mango as its own competitor and its comparison with other similar positioned international brands in market
RESEARCH METHODOLOGY 3
This research uses both quantitative and qualitative methods The qualitative question is an interview conducted with the Store Manager of Mango store at Select CityWalk mall, Saket which is transcribed. Questions cover potential actions and measures Myntra will take to increase its revenue and expansion plans, about customer feedbacks, Organizational structure, competitive brands in the mall, the challenges and ways to satisfy the customers and strengthen their brand name. (For the questions discussed in interview see appendix 1)
On the other hand, the quantitative research method involved a well-structured questionnaire to customers (For the entire survey questions see appendix 2) who shop from brand Mango and can give their feedback and input for the change that can be seen in the store which is transformed after partnership with Myntra also which brand they go to if not Mango. This analysis provides an insight about the recent events, which can be connected to the response I received from the questionnaire.
Data collection process and Instrument
A well-structured close-ended questionnaire was sent to customers of Mango (see appendix 2), to find out their opinions on the topic as it is easy and better to gather information from different people on different topics than a qualitative interview to specific employer (see appendix 1), it also give convenience time and avoid deviation of answers from customers on particular topics Questionnaire have additional advantage than interview because it allows customers to answer question freely as their identities are not revealed which put them in a better position to share their opinions and say the truth. Customers are part of the business therefore their opinion and interest need to be represented and taking into account in order for brand make progress.
The questionnaire is structured in accordance with the theoretical framework created for that purpose, these are questions about them as to how frequently they visit Mango, last time they visited the Saket store, if they think Mango has a strong presence in India and their collaboration with Myntra, the changes they observed in store, stock and VM since October 2017, how attractive is the quality, latest fashion trend and customer service is to them, Other fashion brand they shop from and what attracts them, the level of satisfaction of the services provided by Mango. The information gathered from this questionnaire will answer the research objective if customers can fell the change with NEW MANGO and analyze its brand performance as to how competitive it is in the market.
DATA COLLECTION AND ANALYSIS PROCESS
The questionnaire were sent as a link to the female shopper I know, who usually shop from Mango. With the help of social media sites and applications like Instagram, facebook and whats app it was very easy and convenient to send the survey and also easier for the respondents to fill the survey as and when they are free. I received Hundred and twenty (120) responses which was adequate for the research. Selective sampling technique was used to receive the response It was only sent to FEMALE shoppers, who usually shop from Mango and this was done as there were many of them whom I know and some mutual friends in my social friend list. I easier gathered 120 responses as they were happy in providing me the feedback. Also I made sure the respondents have their last shopping done in either October or November as the new collaborative store opened on 4th October 2017 to get a genuine feedback.
The primary data were collected from the interviews conducted with the Store manager and from the questionnaires received from respondents who were customers of Mango. Response from the management was compared with that of the archives of the brand, to find out if the was any missing information from the respondent, if he offered different opinions in certain topics. The findings from the interview was then compared to the response of the customers from the questionnaire to evaluate if the customers had a different view of the brand.
LIMITATIONS
The only limitation that I had was with shoppers who visited the store before October, as they won’t be able to provide the insights about the New Mango and compare the previous with the new one. Also, it was not possible to select customers on that basic. If I must have tried qualitative approach to interview shoppers who come out the store premises , they wont be of help either as there is a sale going on from past few days which attracts crowd looking for discounts and usually don’t give much inputs.
LITERATURE REVIEW
4.1 INTRODUCTION
MANGO is an internationally famous, Spanish fashion multinational which designs, manufactures and markets women’s and men’s clothing and accessories.
It is differentiated for having a highly-defined concept. The MANGO concept is based on an alliance between a quality product, with an original design and a coherent and unified brand image.
MANGO bases its logistics on an in-house system which has developed progressively since the opening of it’s first store in 1984 until the present day
MANGO’s greatest asset is its people and the secret lies in banking on a motivated and flexible work team, able to adapt to and promote change
Mango opened its first store in India with Franchise partner Major brand in 2001 in Mumbai.
TAGLINE/SLOGAN- What should I wear; fashion for the young, urban woman
4.1.1
HISTORY
Founded in 1984 by two Turkish brothers Isak Andic and Nahman Andic in Barcelona, Spain and is today one of the leading fashion groups in the world.
The franchise system helps Mango expand to international market rapidly from Europe, Latin America and Asia Pacific to the US with the opening of 2 franchise stores in Portugal in 1992. It entered India in 2001 under a commercial agreement with major brands.
4.1.2
VISION
By satisfying the fashion appetites of European markets since 1984, this innovative fashion mogul lends its continued success with the vision of establishing a fashion presence in every major city around the world. Despite the downturn of the economy, MANGO continues to expand with an extensive store network of 2,731 stores (over 800,000 m2) in 105 countries; this can be attributed to being one of the leading pioneers of developing a major brand and manufacturing company, utilizing technology as a means of reaching consumers on a global scale – having established its first online store in 2000
4.1.3
MISSION
Segment, target group and positioning .On a mission, MANGO continues to push forward in providing its fashion consumers a lifestyle that accommodates for their stylish needs. Mango’s aim is to dress the urban and modern woman/man and also meet there daily needs. This is the formula which is analyzed, adapted, and applied to each country operated; and, it is believed to be one of the keys to there commercial success and international prestige.
4.1.4
VALUES
The aim of MANGO is to control all aspects within its sphere of influence concerning the environment in order to foresee and manage contamination as effectively as possible.
Activities include:
- Calculating the Carbon footprint: to compute the greenhouse gas emissions caused along a logistics chain for distribution, storage and product sale, and in the production of clothing and accessories.
- Sustainability with Corporate Social Responsibility commitments and activities in all three aspects: economic-financial, social and environmental.
- Product health and safety standards
- Code of conduct
4.2 BRAND IDENTITY PRISM
Physique
• Fashion & Trends
• Modern
• All black
• Style oriented
Relationship
• Trustworthy Quality
• Fair exchange of money
Reflection
• Sophistication
• Contemporary Style
• Value for money
These analysis are based on primary and secondary data
Personality
• Confident
• Mature
• Trustworthy
• Stylish
• Individualism
Culture
• European(Spanish)
• Environmental friendly
• International
• Employee centric
Self-Image
• Fashionable
• Highly Definedconcept
• Strong personality
• Confident
4.3 TARGET AUDIENCE (Demographics
& Psychographics)
Establishing the customer demographic is an important factor in the understanding and realization of who they are and what they want from the brand
Technology plays a big part in her life, she can be found Tweeting her thoughts, or Instagramming her daily doings. Cocktails, family and weekends are high in her priorities also Reading her kindle helps the MANGO woman to unwind from the busy townified life she has become accustomed to. The MANGO woman enjoys layering key basic pieces, textures and statement block colors and patterns. MANGO is her ‘go to’ retail store, as it provides up-to-date fashion trends.
In short, Mango’s main target market is the working women who is style conscious and keen to remain up to date with the latest trends and
The MANGO woman has a keen eye for style, and enjoys dressing with a chic tone. Aged between 20-45, this urban female is active and driven. She aims to be successful. Compulsive, outgoing, sensible and creative Highly interested in fashion, she is an avid user of the MANGO website; browsing the current collections. fashions. Their consumers is sensitive to price and seeks value for money as well as good quality.
MIX
• Product
Price
• Place
• Promotion
• People
• Process
• Physical evidence
4.4.1
PRODUCT MIX
Mango’s 100% global product portfolio includes much larger product assortment width, Product line length and so do depth in each product line
The major departments under which it categories gender are :
• Women
• Men
• Girl
• Boy
These departments are divided into clothing and accessories which further subdivides to show an enormous product breadth and under each there are different style variants which are finally broken down into vast sizes and colors.
There are around 8+ accessories options and 15 product lines under clothing , which further provides an average of 4 options each with 10 different colors and sizes to shop from under Women’s department. It almost has same variants for men, girl and boy.
Product mix of Mango show high level of consistency in terms of its end uses, which is to wear fashion whether it is clothes or accessories but medium to low consistency in context to production and material/fabric used to made it as properties differ from each
PRODUCT ASSORTMENT WIDTH AND LENGTH
COATS: Coats, Quilted coats, Trench coats, Parkas
JACKETS: Blazers, Jackets, Biker jackets, Gilets, Denim, Leather
DRESSES: Short, Midi, long, Day, Evening
JUMPSUITS: short, long, day, evening
CARDIGANS & SWEATERS: sweaters, cardigans, 100% cashmere
SHIRTS: shirts, blouses, sleeveless, short sleeve, long sleeve, denim
T-SHIRTS & TOPS: tanks, short sleeve, long sleeve, body
TROUSERS: skinny, straight, culottes, loose, flare, leggings, shorts
JEANS: skinny, straight, flare, relaxed, jeggings
SKIRTS: short, midi, long
LINGERIE: bras, bodice, panties
SLEEPWEAR: tops, trousers, night gowns, accessories
SPORTS: t-shirts, bras, jackets, sweatshirts, leggings & trousers, accessories
SHOES: boots & ankle boots, flat shoes, heeled shoes, sandals, sneakers, leather
BAGS: hand bags, shoulder bags, crossbody bags, back packs, party, leather
WALLETS & CASES: wallets & toilet bags
JEWELLERY: necklaces, earrings, brooches, rings, bracelets
DEPTH
COLORS & SIZES:
• Blacks
• Whites
• Reds
• Greys
• Blues
• Beige tones
• Greens
• Browns
• Pinks
• Yellows
• Oranges
• Purples
According to online articles and the qualitative research, new Mango’s first store in India i.e. Select city mall, Delhi offers only 20% of the international collection, which means collection is based considering the culture and Indian market.
Saket’s stock is limited to just women’s wear (for time being) with its length and width same as mentioned above but excluding lingerie, sleepwear, sports wear and toilet bags.
Depth also remains enact with varied colors and sizes like the native Indians.
4.4.2 PRICE
Price is very important part of marketing mix, as it determines company’s revenue and stability in the market. Pricing always has a consumer perception of the product. Low price is often perceived by consumer as low is quality as compared to its competitors who is selling the similar product at higher value. But this doesn’t mean to overlook the brand’s image and simply raise the price to a level, people call it over-priced and value their purchasing power over the product. Therefore, competitors pricing has to be examined and then price has to be set.
Mango first opened its store in 2001 in India and was considered as premium brand which actually pinched Indian market with its pricing. They usually wait for sale or discounts to shop It entered Indian market long before Zara, H&M, GAP or forever 21 Mango uses a competitive pricing method(with psychological pricing) to match that of its larger key competitor Zara. In 2013, the brand cut prices by up to 20% across all its lines to mirror a similar strategy implemented by Zara, and also set out to avoid discounting and mark downs as a way of retaining profit margins In Gone are those days when people fool themselves with 999, instead 990 is a cleverer approach to give an image of charging less which actually means discount of Rs. 10.
Prices in Select Mango store, ranges from Rs.690 for basic logo tee up till Rs 15,990 for pure leather jacket . Whereas, accessories ranges from Rs.990 - Rs.1790.
International collection ranges from Rs. 590 for basic t-shirt - Rs.55,991 for coats.
4.4.3 PLACE
Placement and distribution is very important as to how product is to positioned and distributed in a place that is easily available to the target customers.
Mango has targeted urban women/men who love to be in trendy fashion and give them lifestyle options Internationally this brand has made its presence in 109 countries already targeting every major city. In India it has entered with franchising model in partnership with Major brands in 2001 and now with Myntra in 2017. Myntra made sure to open up its
store in major malls, the first one being in Delhi’s most revenue generating mall- Select CityWalk mall and plan on opening 25 more across the country over 3-5 years. Select city attracts crowd which are urban, fashionable and comes to shop from the brands hub. Since Myntra is given the responsibility for omni channel, it rightly used its online domination to advertise Mango and sell at their virtual space. Mango wisely choose Indian players to sell their brand, as they are successful to know their market and choices people are looking for Hence, could suggest styles and designs suitable for the shoppers
Malls and city centers in metro cities are their potential selling place.
4.4.4 PROMOTION
To boost brand recognition and sales, promotion is the key component in marketing mix which can comprise of sales organization, Public relations, Advertising and Sales promotion.
Mango is known for its use of celebrities to front seasonal campaigns and previous candidates have included the likes of Kate Moss, Miranda Kerr and scarlet Johansen. It actively focuses on brand image and uses a variety of promotional methods such as TV advertising, online advertising, blogger collaborations, and events such as the Mango Fashion Awards
It continue in India as well, the inauguration of Mango store in select city attracted more crowd when celebrity guest Ileana D’Cruz showed her presence in the store on 5th October 2017.
4.4.5
PEOPLE
The company’s employees are important in marketing because they are the ones who deliver the service. It is important to hire and train the right people to deliver superior service to the clients.
Mango has adopted a unified business culture that allows its employees to thrives as it utilizes HR methods such as team work, and continuous training as means to maximize what is potentially its greatest asset. The brand has implemented a structure that allows all aspects of the workforce to give feedback on its
Operations as well as suggest improvements. The brand encourages internal promotion and its recent global expansion in creating new job offerings in a wide spectrum of economics
In terms of CRM, Mango aim to reach out to their customers by encouraging customers to sign up when purchasing products through their website, as this then allows the brand to email and keep customers up to date with their latest collections and offers.
Figure 1: 5P’s of marketing mix
Process and Physical evidence usually play important role in service sectors. I won’t go in detail with these two components. These are related to how supply chain works, manufacturing and distribution and how customers perceive the brand image by mere mentioning of its name “Mango”. Unlike Zara, Mango does not manufacture any of its pieces of clothes. The company relies on “more than 140 suppliers around the world, and each region specializes in one type of clothing that it can manufacture at a competitive price”. With such a range of suppliers and sales in 109 countries, we can imagine that Mango’s supply chain and information system are powerful and well-designed to support current success and future expansion.
4.5 RECENT AD CAMPAIGN
MANGO BEFORE MIDNIGHT – FW17 is the recent ad campaign of the brand featuring party/ occasion wear with vintage elegance and sophistication. They highlight designs with feminine silhouettes which contrast with more flowing ones The main protagonists are sequins, velvet and faux-fur coats. The colours vary, ranging from colder tones such as green and turquoise to warmer ones such as mustard and pink.
4.6 ORGANISATIONAL STRUCTURE
Though there are various departments involved with the working of brand “Mango” internationally like :
• PRODUCT AREA which includes departments such as Design, Showroom, Purchasing, Graphic Design, Window Dressing, Interior Design, Product Distribution, Merchandising, etc.
• MANAGEMENT AREA which includes Human Resources, Legal Management, Communication, Product Identification and Environment, Import/Export, Financial Relations, Administration, Auditing and Internal Control, Property Management, Expansion, Franchisee Services, Store Maintenance, etc
• LOGISTICS AREA which is divided into various sections: maintenance, reception, CML distribution, GTT distribution, surpluses, stock (hung and folded), delivery and transport
• IT SYSTEMS AREA which includes departments such as Analysis and Development, Purchasing and Development, Purchasing and Supply of IT Materials, Systems and Communications, R+D and USAT (Store Attention and Service Unit).
• STORES AREA which has the store teams, made up of Store Managers, Assistant Managers, Assistant Managers, Visual Merchandisers, Cash Desk Managers, Sales Teams and Stockroom Assistants, work everyday to offer our customers a quality product and present an attractive and commercial store image
In India Mango has franchise model with Myntra wherein both are partners . In Myntra there is :
1. Brand manager who wholly takes care of Mango.
2. Operations head who takes care of smooth working of the brand in stores for revenue generation.
3. Merchandisers who make sure each store receives the stock taking in consideration the Geographic, demographics, Psychographics to allot right styles and sizes.
4. Marketing team who does promotional activities to earn name and credibility for the brand and attract more customers
Logistics team who focuses on the reception, storage and dispatch of goods, aiming to allow quick distribution and automatic stock replacement to all stores.
5. Under Operations head comes the Area managers who supervises the store managers in their respective area.
Store Team includes the Store Manager, Assistant Store Manager, Visual Merchandiser and Sales staff.
Myntra gave operations to franchise GNB for North and Samarth for other states. Myntra
MANGO
4.7 GROWTH OF MANGO
Spanish clothing group Mango's 2015 turnover grew to 2.327 billion euro, mainly thanks to several new megastores and improved online sales. In the end, it managed to beat the growth forecast, which stood at + 13 %. (Retaildetail.2016)
Revenue forecast for 2017 – 3.27 Billion Euros
Revenue for 2013 – 1.85 Billion Euros
Profits – 120.5 Million Euros
The company, which owns the MANGO Woman, Man, Kids and Violeta (plus size) lines, closed 2015 with sales of 2.3 billion euros, up 15 per cent from the previous year. (The Hindu business line.2017)
Mango closed the 2016 financial year with sales of 2.26 billion euros. (India retailing.2017)
Turnover per market percentage
Home market(Spain) – 17%
International Market – 77.3% Online sales – 6.7%
4.8 SWOT ANALYSIS
Strengths
• Strong brand presence
• Partnership with online giant Myntra
• Continuous staff training
• Strong promotion with celebrity endorsement.
• New concept store design
• Sustainable clothing campaigns
• Quality product and well designed as they are designed and sourced from Spain.
Opportunities
• 25 more store openings across India in next 5 years.
• Strong profit generation capacity
• New lines of products and services
• Technology adoption like no other competitors which makes happy customer experience .
• Emerging markets
Weaknesses
• Only women’s wear category (DLF select city mall)
• Smaller area ( 2200 sq. ft.) as compared to its competitor Zara
• Weaker presence in social media( mango India)
• Disadvantage compared to other competitors who can outsource for a cheaper alternative
• Distorted brand image in market
Threats
• Low brand loyalty
• Many new brands coming up to compete.
• Competitors better bargaining power of suppliers.
• Competition from larger rival Zara
RESEARCH ANALYSIS
5.1 DESCRIPTION OF RESPONDENTS BACKGROUND FACTOR
A majority of female shoppers, Approximately 57.1% falls in the age group of 16-25 years followed by 26-35 years counting to 37.8% and almost least counted when it come to 36 and above age.
Chart 1: Age of respondents
When it comes to work status of the Mango women, Majority i.e. 63.3% are working followed by students consisting of 24.2% .There are minorities seen in self employed and home maker It shows, there are women aged 20-35 years who are mostly working or are students who shop from Mango.
Chart 2: work status of respondents
5.2 FREQUENCY OF WOMEN TO SHOP FROM MANGO
It is observed that, most of the shoppers come to shop Mango Saket store once a month or less accounting to around 72.5% followed by frequent shoppers marked at 22.5% and then comes the ones who loves to shop and visit more than 3 times a month, which means almost every week. Females aged 16-25 years mostly consist of students who are fashion driven and shop only when occasion arises and those aged 26-35 are purely working and self employed who shop according to their time availability usually weekends i e from occasional to more than 3 times a month
3: Frequency of visits to Mango store
Out of the above shoppers, 85% of them say that they last visited the store in the month of October and November 2017, which are ideal for my research but 15% haven’t visited the store in these two month, when Myntra’s Mango opened its store. So, this category can give the general view of the brand
Chart 4: Last visiting month to store
Chart
5.3 BRAND PRESENCE AND STOCK INPUTS
67 5% of women say that Mango has a strong brand presence in India which means it competes with other brands when it comes to customer distribution and attraction. 21.7% are unsure about the brand presence it holds and might easily gets distracted with offers and discounts other brand offers, followed by 10.8% who think Mango does not have an appealing brand image These customers are shoppers of Mango’s competitors who might be unsatisfied with the performance of the brand or faced unpleasant experience.
5: If Mango’s brand presence is strong in India
Maximum respondents- 40.8% state that Mango adds new stock 2-3 times/month followed by 38.3% once in a month and 17.5% every week. This show how fashion forward they think Mango apparels are to reach them. 17.5% people only think every week the stock is added Rest state it does not provide frequent options or its just like rest of the brands.
Chart 6: How frequently stock is added to collection
Chart
The shoppers are very much satisfied with the value of money offered by the Brand Mango. Collectively there feedback ranges from Average to excellent. Maximum think it is above average which accounts to 37 5% followed by average and excellent 24 2% women can be classified under the category of loyal customers.
80.8% respondents have already experienced impulsive buying mesmerized by the mannequins styled at the store or the attractive window display. These customers comes to store looking for that specific garment on display and end up buying more along with it.
19.2% think it is not attractive and other brands like Zara, Forever new and Tommy Hilfiger has an attractive styling tactics 74 shoppers out of 97 are already convinced of the brand giving value for money, it yet makes it easier for them to step in after being tempted by the mannequin styling.
Chart 7: Value for money of the apparels
Chart 8: If styling display tempt customers enough to buy.
Chart 9: Brands that tempt customers, if not Mango
5.4
CHANGE
When asked, if they have heard about “NEW MANGO” i.e. their collaboration with online giant Myntra, more than half of the respondents said yes, which means they shop frequently and know about their favorite brand
Chart 10: people stating if they heard about Mango’s collaboration with Myntra
95 Respondents out of 120 felt that stock is better now after the new collaboration, followed by customer service, store design/VM and then quality. Whereas 22-51 women only felt that there is no change felt across different parameters. The people who doesn’t felt change can be consisting of those who visited store before October and has not seen the store actually. There is also a possibility that some must have felt change without knowing the partnership has actually changed for Mango. Quality of the products doesn’t show much variation compared to the collection which hyped after Myntra stepped in.
Chart 11: Changes observed for certain parameters since October 2017
Because Mango-Myntra’s first store is just 2 months old, the technology is still finding its way to show its presence to the Mango’s crowd. There were very few respondents around 19 2% who knew about the omnichannel tablet availability in store and its use, but maximum shoppers around 52 of them were interested to use it, after mention. Slowly the tech savvy Mango will make its customer experience easier and hazel free.
Chart 12:Response for the new tech- savvy Omnichannel tablet
5.5 BRAND’s ATTRACTIVENESS COMPARED TO ITS COMPETITORS
It is very clear from the analysis that Zara is the strongest competitor to Mango with almost 45.8% domination compared to H&M and Forever 21 which capture 33.3% and 14.2% respectively.
Chart 14: Other brands customers shop from (other than Mango)
Mango’s attractiveness kind of received mixed reviews about its customer service, but quality and latest fashion trend seems to be attractive for majority of the respondents. There were few who think all parameters as unattractive 59-71 people responded positively for the brand parameters which forms more than half of the survey takers.
Chart 13: Level of agreement for the following parameters of Mango
It is clears from the bar graph that competitors like Zara, H&M and Forever 21 took away more votes for attractiveness in all the parameters Whereas unpleasant votes remains equal for both Mango and competitors. Mango need to gear up more, to be a treat in the market for its competitors. Though it is recovering its long lost image, it will take a while to strengthen its brand positioning
Chart 15: Level of agreement for the following parameters of competitors
• There are about 51 respondents who show their disagreement for the statement “ Mango has low prices”. Whereas, 44 of them were quite neutral about the statement.
• 58 respondents agreed on “ Mango has a contemporary image”
• Maximum votes exact 80 were recorded in the agreement for “ Mango has a weeknown brand name”
• “Mango has a good store atmosphere” is positively expressed by 74 respondents.
• 64 shoppers state “ Mango has high quality products”.
• Lastly, 55 think “ Mango is a trendsetter” followed by unsure people counting to 38.
Chart 16: Level of agreement for the following statements about Mango
ANALYSIS
• Mango’s target market in the age bracket of 20-35 , urban young working women is rightly segmented as stated in my analysis.
• Mango gathered largest crowd in the month of October when actress and model Ileana D’cruz showed her presence for the new launch of Mango store in partnership with Myntra. My data show the maximum last visits in the month of October.
• Though respondents believe that Mango has a strong brand presence in India, with good value for money, it still lacks when compared to its greatest competitor Zara
• Mango proved to be presented better with its partner as Myntra, people feel the change in collection, store interiors and customer service in a positive way as compared to major brands. Few don’t even know the collaboration and thought mango is back in competition
• Mango is still lacking behind compared to its Spanish counter brand Zara, who change its stock almost every other day as compared to Mango who do it 2-3 times in a month People find something new in every next visit to Zara
• These both brands share competitive pricing strategy, same target market, category of clothing, and almost similar product designs .But getting an advantage of the first comer in India Mango is still not at a point of earning its credibility compared to its counter part who entered Indian market in 2010, after 9 years of Mango’s entry.
CONCLUSIONS AND RECOMMENDATIONS 6
Mango, no doubt is better than before with its improved and colorful collection, standards of customer service and new concept store design. But being in the market and competing with other brands and then earn revenue is still under process
• They need to introduce more category of clothing to attract men and kids as well.
• Having invested on technology, which no other competitor have, can be a win over situation only if Mango could promote it and encourage self use of it to customers in store for less waiting time at cash counters and easy check outs
• After my primary research done on Omni channel, Mango India’s social media page was just made and not used actively. It should have some social presence to engage customers as done in Europe
• According to the interview, India will receive international collection 1-2 weeks after its launch in Spain. So, India can expect international product portfolio in their new concept stores
• Indian celebrities need to be associated with Mango to have face value of the brand.
• Customer service can be more focused and can be used as an advantage over Zara, who lacks customer interaction.
REFERENCES 7
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[Accessed 28 November 2017]
Katheryn Watson, 2015. CUSTOMER PROFILE | IDENTIFYING THE MANGO DEMOGRAPHIC[ONLINE]. Available at: https://krwdigitalmarketing.wordpress.com/2015/02/12/customer-profile-identifyingthe-mango-demographic/. [Accessed 28 November 2017]
APPENDIX
8.1 APPENDIX 1: AN INTERVIEW WITH STORE MANAGER
Date: 24/11/2017
Name: Nishu Saini
Position: Store Manager
Location: Select Citywalk, Saket
Email: selectsaket_2051@savadikaretail in
Q1. Are you aware about the brand Mango when it had collaboration with Major Brands? How it is different now and then?
A: Yes, I am quite aware about the brand's previous partnership with Major Brands. Earlier also, the brand used to sell and had a huge number of customer database. The collection was good and mostly into blacks & whites but now the collection, store interiors, technologies, everything has changed which customers are liking and surprised too to see such a big change. More colors have been added to the styles. Omni channel introduced to check products available in different stores and purchase them from there. Many different styles are available online on Myntra Customers are being introduced a vast range of options to purchase. Moreover, Mango MAN now introduced to India which is currently available online and in upcoming store of Mumbai
Q2. What are the potential factors that led to its partnership with Myntra?
A: Major Brands was facing a huge loss in business due to some brands. Mango was profitable for them but still they had to sell the brand to a different investor so that they can cover up the losses of other brands. Then, Myntra came into picture and bought the brand and became the partner in India.
Q3. It is all over the news that, Myntra will bring up its positioning in the market with increased revenue? What new, MANGO-MYNTRA will jointly do to earn it?
A: Myntra has already grown its business by overtaking Jabong Now, Myntra is investing into offline stores and opened their first exclusive brand outlet of Mango. This is just the beginning and they will open more stores and come up with more brands in offline stores making a stronger position in the Indian market
Q4. You must have come across customers frequently complaining, praising or giving feedbacks in general What according to customers they felt new in store since October in terms of collection, quality, store design/ VM and customer service? If you would like to share an instance.
A: As already discussed earlier that the customers are liking the change in Mango. Customers feel the store looks brighter due to colors & lightnings Omni channel to check collection available in other stores and placing orders to get them delivered at their doorstep or at store. Quality of the products is good but few customers have felt that they are not able to find the products in the material Mango used to have earlier, few gave feedback that the styles now available are more baggy and loose fit. Earlier, more fitted garments used to be available. Overall if I say, people are liking it and our sale numbers reflects that
Q5. How many more stores are expected to be opened in next 3 months across India?
A: 5-6 store are expected to get open in next 3 months in different cities.
Q6. Compared to Mango’s collection abroad, how much is seen at Delhi’s store?
A: Now, whatever collection gets launched in Spain, it will get delivered to India within 12 weeks which will be available online on Myntra & across all stores
Q7. Can you please share the revenue or target/ month that is generated by Mango after its opening in October and back then? Is the difference made as promised by Myntra?
A: The store got opened for customers on 5th October, 2017 and a target of 75 Lacs was given. The store achieved its target and did a number of 77 Lacs.
Q8. What is the Organizational structure followed at Mango?
A: The organizational structure is vast and cannot be depicted here. Mango is partnered with Myntra so Myntra is taking care of the brand in India. Being a giant in online business, Myntra has given offline store's operations to be handled by 2 Master Franchise who will be just taking care of Store Operations. So Myntra is overall involved in brand's Logistics, Marketing, IT, etc.
Q9. Which brand’s bag shoppers usually carry while shopping at your store? Or who you think are Mango’s competitors in Select Citywalk mall, Saket?
A: Zara This is one of the biggest competitor because of the reason that Zara has similar types of collection, price-points, fashion trends.
Q10. What are the challenges faced and ways to satisfy the customers and strengthen the brand name?
A: There were not any major challenges that we have faced so far. Brand already has a strong positioning in the market and customers are happy that Mango is back again and with such an amazing stuff
Q11. After Myntra’s partnership with Mango, what possible changes can be seen in stock? Then and now?
A: After partnership between Myntra & Mango, the collection has totally been changed. Earlier it was more of blacks & whites. Now, more colors have been added to the collection There are customers as well who are shocked to see this much change in the collection after re-opening of the brand.
Q12. Where does manufacturing takes place for Indian market?
A: In India, manufacturing is not happening Everything is imported from Barcelona, Spain. Although, manufacturing is being done mostly from Asian countries but it is centralized to Spain and we receive the stock from there only.
Q13. How frequently are the new styles introduced in store’s existing stock?
A: We keep on changing the VM of the store every week Money mapping is being done which is a technical process of store operations to identify the productivity of a specific style and display locations in store. This helps us in identifying our slow movers and we replace them after analyzing money mapping report of 2 consecutive weeks
8.2 APPENDIX 2: SURVEY QUESTIONNAIRE TO CUSTOMERS
QUESTIONNAIRE ARE BASED ON THE FASHION BRAND “MANGO” TO ANALYSE ITS PERFORMANCE
IN THE MARKET AND HOW DIFFERENT IT IS NOW, SINCE ITS COLLABORATION WITH MYNTRA.
Q1. How often do you shop from MANGO?
o Occasionally (ones a month or less)
o 2-3 times a month
o More than 3 times a month
Q2. Last time you visited the store (2017)?
o November
o October
o Before October
Q3. Do you think Mango has a strong presence in India?
o Yes
o No
o Maybe
Q4. Have you heard about the “New Mango” i.e. their collaboration with Myntra?
o Yes
o No
Q5. Are there any changes you observed in terms of collection, quality, store design and service since October 2017?
Yes, it’s better now No, it’s the same Degraded
Q6. Please indicate how attractive the following features of Mango are to you?
Q7. Pick (any one) fashion brand you shop at the most. (other than Mango)
o Zara
o Massimo Dutti
o GAP
o H&M
o Forever 21
Q8. Based on the chosen retailer above, please indicate how attractive the following features are to you.
Q9. According to you, how frequently does Mango adds new stock to its collection?
o Ones in a month
o 2-3 times /month
o Every Week
o 2-3 times a week
Q10. Have you used/heard about the new tech- savvy omnichannel tablet (in store) for finding stock and shopping from other stores?
o Yes
o No
o I would like to use it.
Q11. Please state your level of agreement with the following statement.
Mango has: Strongly Disagree Disagree Neutral Agree Strongly Agree low prices a contemporary image a well-known brand name a good store atmosphere high quality products Mango is a trendsetter
Q12. How would you rate the value for money of the apparels?
o Excellent
o Above average
o Average
o Below average
o Poor
Q13. Does Mannequin styling at store/window display tempt you enough to buy it?
o Yes
o If No, then which brand does?
Q14. How old are you?
o Under 16 years old
o 16-25 years old
o 26-35 years old
o 36-45 years old
o Older than 45 years old
Q15. What is your work status?
o Student
o Working
o Self-employed
o Retired
o Home maker
o Other
(please specify) _______________________