Branding for Magsons 1

BYNIMIT BHATTSUKHDEEP TYAGIRANJITA AMONKARSHRUTI DHAWALIKARANUJA KUNKOLIENKAR

MAGSONS REBRANDING EXERCISE

DECLARATION

We hereby declared that this report entitled “BRANDING EXERCISE FOR MAGSONS GROUP” submitted by us to Sri Sri Institute of Management Studies Margao for the partial fulfillment of M.B.A (Masters of Business Administration) degree is of our own and has not submitted to any other university or institute for the award of any degree as well as this paper may not use any actual market scenario.

Place: Margao, Goa

Date: August 28, 2013

Nimit Bhatt

Sukhdeep Tyagi

Shruti Dhawalikar

Ranjita Amonkar

Anuja Kunkolienkar

EXECUTIVE SUMMARY

We have started this exercise with the help of our faculty of Product & Brand Management Prof. Vilas Waikar. We have tried to rebrand the brand Magsons. We have through our creativeness and thinking ability have designed the new logo depicting the mascot buddy and a new tagline “A place for all your needs”. We have also changed the mission of the brand.

We have first given a brief of retail industry and the trends. Then we have given the background of Magsons as an organization. We have then given the new mission and vision.

We have changed the positioning of Magsons. We have also given a new jingle on radio for it and the advertisement in form of banners and hoardings at selected locations depicting social issues. We also have done promotions for Ganesh Chaturthi, Diwali, Christmas & New Year through Magsons.

We have taken the information from secondary data.

Introduction

The Indian retail industry has been thrown open to foreign majors and is packed with players who strive to offer great products and value-for-money to Indian consumers. The country holds vast promise for retailers with its burgeoning spending power and rising middle class.

The US$ 500 billion market, growing at an annual rate of about 20 per cent, is largely dominated by small shops and stores as of now. The organised segment is in its nascent stage and has huge potential to harness in the sub-continent. Foreign giants like Wal-mart and IKEA have recently received the Government’s nod to enter the Indian market, after making all the necessary compliances.

Market Size

India’s retail market is majorly dominated by the unorganised sector. Organised segment accounts for 8 per cent of the total retail landscape, according to a study by Booz & Co and RAI.

The Indian retail industry has expanded by 10.6 per cent between 2010 and 2012 and is expected to increase to US$ 750-850 billion by 2015, according to another report by Deloitte. Food and Grocery is the largest category within the retail sector with 60 per cent share followed by Apparel and Mobile segment.

The foreign direct investment (FDI) inflows in single-brand retail trading during April 2000 to December 2012 stood at US$ 95.36 million, as per the data released by Department of Industrial Policy and Promotion (DIPP).

Online Retail

Internet is the buzzword in India these days. People have online access 24x7 through their laptops, iPads and mobile phones. As a result they have continued access to online retail markets as well.

Online retailers are emerging as important sales channels for consumer brands in India as more and more people, especially the young generation, are shopping online. From apparel to accessories, kids and infants’ product lines and almost everything under-the-sun is available on the net these days. Apparel and accessory brands, such as Puma, Nike and Wrangler, have recorded a big increment in online sales in 2012, led largely by purchases from smaller towns and cities with consumers paying the full price for these products.

For instance, footwear brand Nike has tie-ups only with online retailers such as Myntra and Jabong. And in a very unique initiative, it recently launched its new range of cricket gear on Jabong. Such partnerships turn out to be very successful as online retailers provide greater visibility than a physical store. "Our online store can carry around 10,000 options, while an offline store can carry only 20 per cent of a given range," said an official.

Online retail in India is projected to grow to US$ 76 billion by 2021, accounting for over 5 per cent of the Indian retail industry, according to a report by advisory

services firm Technopak. This forecast is encouraging more companies- big and small- to sell aggressively online. Experts believe that much of this growth will come from the rising purchasing power of consumers in smaller cities, who do not have access to brick-and-mortar stores stocking high-end brands.

Retail Industry: Key Developments and Investments

Kottayam, in Thiruvananthapuram, is an emerging market for luxury cars. BMW has launched its ‘mobile showroom’ in the city wherein people can check-out the brands’ models and go-in for a test drive as well. A weather-proof and air-conditioned structure, the mobile showroom is a replica of BMW’s luxurious dealerships.

Hindustan Unilever (HUL), India's largest packaged consumer goods firm, will soon launch the country's first liquid laundry detergent, hoping that wealthy consumers will not be hesitant to pay a premium for a product that promises to make their laundry chore easier. The company claims that the new product removes stains two times better than any other detergent powder in the market.With 90 per cent penetration in the core detergent space, HUL is trying to create newer consumption opportunities in the over Rs 15,000 crore (US$ 2.51 billion) laundry market with niche and premium products including Comfort fabric conditioner and Rin liquid blues in the post-wash segment.

Villeroy & Boch AG, the Germany-based bath, wellness and tableware firm, has partnered with Delhi-based Genesis Luxury Fashion to commence its operations in single-brand retail trade in India.Villeroy & Boch’s application, seeking 50 per cent equity in the joint venture (JV) company for single-brand retail trade, has recently got a nod from the Foreign Investment Promotion Board (FIPB). The FDI infusion in the JV would be to the tune of Rs 1.12 crore (US$ 187,463.60).Genesis Luxury Fashion, that has brands such as Paul Smith, Bottega Veneta, shoe brand Jimmy Choo, Italian label Etro and Armani and home and personal care products from Crabtree and Evelyn under its business in India, will exclusively manage the distribution of Villeroy & Boch tableware products in the country. The alliance ensures the establishment of a distribution network through the opening of Villeroy & Boch’s exclusive retail stores in India.

In a bid to tap the branded footwear market in India, which is estimated to be about Rs 30,000 crore (US$ 5.02 billion), Aero Group (known for its flagship Woodland brand) is planning to revive one of its old brands, Woods. The company is contemplating to open around 30 new, revamped Woods stores in 2013. The eight-year-old brand would now lay its focus on the fashion quotient, rather than the typical outdoor, rough and tough image of Woodland, and will have more of the range for women.

RP-Sanjiv Goenka Group’s company Spencer’s Retail is on an aggressive growth strategy, with a focus on hyper-format stores. The company intends to infuse about Rs 600 crore (US$ 100.46 million) in setting up new stores and come out with branded and co-branded products in the food and beverage segment. One of the official spokesperson from the company revealed that Spencer’s would set up 80 hyper stores in the next 48 months. As of now, the

company has 132 stores, including 26 hyper stores, 14 super market and 92 daily (convenient) stores.

Godrej Interio, the furniture retailing arm of Godrej Group, is aiming for Rs 5,000 crore (US$ 837.14 million) of turnover by 2016-17, with plans to invest over Rs 300 crore (US$ 50.23 million) to expand manufacturing capacity and retail stores. The company is planning to set up more than 75 stores in 2013 itself with focus on tier II and III cities.The Indian branded furniture market is worth about Rs 10,000 crore (US$ 1.67 billion) out of which Godrej Interio accounts for 15 per cent of the share. The company also plans to establish 200 speciality stores which will design and built products according to the consumer's convenience and preference.

Government Initiatives

The Cabinet Committee on Economic Affairs (CCEA) has recently approved Swedish furniture retailer IKEA's application to enter the Indian industry and set up a single brand retail venture in the country. FDI would be to the tune of Rs 10, 500 crore (US$ 1.76 billion), making it the largest investment to be made by a foreign brand in the Indian retail sector.

Moreover, the Government may further simplify investment norms in multi-brand retail to please foreign retailers who intend to invest in India but are a little hesitant on certain clauses. Mr Anand Sharma, the commerce and industry minister, has re-iterated that any FDI proposal in multi-brand retail will be fast-tracked for sure.

Road Ahead

The overall Indian retail sector is expected to grow 9 per cent in 2012-16, with organised retail growing at 24 per cent or three times the pace of traditional retail (which is expected to expand at 8 per cent), according to the report by Booz & Co and RAI.

Deloitte also seconds this forecast and expects that organised retail, which constitutes eight per cent of the total retail market, will gain a higher share in the growing pie of the retail market in India. Various estimates put the share of organised retail as 20 per cent by 2020.

THE MAGSONS CHAIN

The brainchild of Kirit & Andrea Maganlal, MAGSONS SUPERCENTRE was established in 1989 as the most modern Super market in Panaji city serving the needs of residents of Miramar, Dona Paula, Taleigao and St Inez and Caranzalem.

Over the years, MAGSONS SUPERCENTRE has become a household name for the entire State of Goa for the quality of its services and goods offered and its irresistibly warm hospitality.

Well Stocked!MAGSONS SUPERCENTRE stocks a variety of personal, household and food articles keeping the customer’s preferences and budgets foremost in mind. The range of items include Toiletries, Cosmetics, Instant Foods, Health Foods, Sauces and Syrups, Condiments & Breakfast Foods, Pickles, Pastas & Noodles, Tea & Coffee, Dairy Products, Household utilities, Stationery, Frozen Foods, Imported foods, Snack foods, Chocolates & Pastries.

Over the years, the Store has evolved into a highly modern shopping complex by providing services not available elsewhere in Goa. It has expanded its Frozen Section to house state-of-the-art imported Freezers and Chillers incorporating the latest technologies of Open Island Freezers and Open Remote Multi-deck Chillers. The store also provides an inexhaustible range of freshly sliced Imported and Indian Salamis, Bacons, Mortadella, Cured Sausages and other meat products. The Store proudly boasts of the largest selection of Cheese in Goa ranging from Imported Cheddars, Parmesans, Gruyere, Gorgonzolla, Blue, Mozarella, Fromage des Chevre, Feta etc to the best of the local Buffalo Mozarellas, Feta, Mascarpone and Ricottas. The cheese is sold pre packed or in 'wheels', sliced to your requierments and budgets.

MAGSONS SUPERCENTRE also stocks the best of the most select wines, beers, liquors and liquers – both Imported and Domestic. The Gourmet section houses global food specialties – Japanese (Wasabi, Noriyaki, Kikkoman, Sushi, Miso, Teriyaki etc..); Thai (Sauces, Light, Dark, Sweet Soya, Fish and Oyster Sauces, Black bean, Satay, Plum, Yellowbean Sauces, Curry Pastes, Yellow, Green, Red, Matsaman, Penang etc..); Mexican; Italian, Mediterranean, Greek and the widest range of Olive Oils (Extra Virgin organic, 100% Pure and Pomace) and Olives (sundried, red wine and vinegar preserved).

The Store has a special Health and Organic Foods section which stocks a wide range of Organically grown foods and cereals, diebetic cookies, sweets and crackers, a variety of breads, crispbreads and thin crisps in rye, nine grain, whole wheat and Oat and Flours such as Bajri, Barley, Jowar, Oat and Soya.

Besides, frozen bulk and institutional supplies are serviced to all the major hospitality properties in Goa by its Group units.

Customer-orientedMAGSONS SUPERCENTRE has built up a strong and loyal clientele over the years by virtue of its friendly and pleasant service ethics.

Every major festival is celebrated amongst the customers with fun-filled events, shopping schemes and bonanzas. Of particular interest are the Children's Christmas Tree party, "Siesta with Santa" celebrated every year, and the "Narkasur Effigy" contests for Diwali. The Carnival Children’s Parade, the educational and fun-filled field trips for children to factories and community centres are amongst other delightful events.

Corporate Tie-upsWith a corporate tie-up arrangement in 2007 with M/s BPCL, MAGSONS opened its first "In & out Convenience Store" at a prominent petrol pump, OASIS, in PANJIM city. The VASCO Gourmet Deli opened on 16th January 2010 at In & Out at Roy's Auto Boutique Pump. Customers have the benefit of using their BPCL Petro cards at either of these Stores and even redeeming their earned Petro miles.

Loyalty ProgramMAGSONS has also on offer a special loyalty program called SUPERCARD wherein cardholders can avail special benefits and discounts on shopping all year round and participate in special events and programs MAGSONS works closely with the Senior Citizens groups, offering them additional discounts and benefits at a number of cross promo stores in the city. MAGSONS stores accept all types of MASTER & VISA Credit/Debit cards. An additional payment facility extended to shoppers is the acceptance of TICKET RESTAURANT and SODEXO food coupons.

MAGSONS BEGINNINGS

The late Maganlal Monji Canji, founder and patriarch of the Maganlal Group of Companies migrated to India in the year 1922 and set up his first business in the state of Goa in 1924. He was one of the earliest migrants and business entrepreneurs in the erstwhile Portuguese regime of Goa. Having begun his business with curios, novelty and presentation articles, his lineage diversified extensively into a broad spectrum of businesses from manufacture to trading to hospitality to communications.

The Magsons Group today has an impressive presence in Supermarkets, Restaurant, Hotel, Frozen cold chain management, Sweets and mithais Cyber cafés, Gaming Centers and Internet telephonies providing advanced Photo digital imaging facilities.

The various enterprises that come within the GROUP range from the traditional novelty and curio showroom, M/s MAGANLAL MONJI KANJI at Panaji Garden Square and also at Market Square in Margao; MILLS & LOOMS which is an exclusive showroom of home linen and furnishings; MAGGSONS DELICATESSEN, cold storage and provision store specializing in meat and poultry products, fresh and frozen along with a variety of cheese and exotic sauces; MAGSONS SUPERCENTRE, Goa's foremost Supermarket; HOTEL MAGSONS CENTRE, hotel and restaurant; US PIZZA and EDU's RESTAURANT; MITHAI MANDIR for the most exclusive sweets in Goa; M/s BOMBAY FLORIST the only 7 days a week florist shop and the cold chain units of MAGANLAL PROTEIN FOODS PVT LTD having C&F agencies of Mother Dairy Foods (SAFAL), AL KABEER Foods etc.

MISSION & VISION

MISSION: To provide extraordinary customer service by being the best in whatever we do. We care for the customers and we value the time of our customers. Our employees will be there to help our customers in their shopping and we will create an experience for our customers worth returning back to our store.

VISION: To be the leader in retail market of Goa by 5 years & open up 3 stores by 2017.

LOGO OF MAGSONS

This is the new logo of Magsons group which we as a group have created. It shows the contemporary style and the tagline and the mascot buddy has also been incorporated and the one before this is shown below.

One can see the difference, the message was not clear to the customers, it said hopping off and shopping On, but the newer one says a place for all your need, which is clear to the customers, all their needs will be fulfilled. The colours have also been changed to black, yellow and red.

The logo has got its mascot Buddy which is welcoming everyone who comes in our store which gives a feeling of warmth and love to our customers.

SEGMENTATION, TARGETING & POSITIONING

Segmentation:

Geographic Segmentation:

We currently have 9 stores in Goa, one in Varca, Verna, In&Out Panjim, In&Out Vasco, Zuarinagar, Hymart Caculo Mall, Dona Paula, Caranzalem & the HQ Magsons Supercentre Miramar Panjim.

We are opening up 3 new stores by 2017. We are targeting Margao, Panjim, Varca, Verna, Vasco & Porvorim.

Demographic Segmentation:

Any person who is a decision making person of the family, because he/she will be the one who will make a decision of buying a coke, maybe the request is from the child but a mother would be the one who makes a decision generally.

Targeting:

We are targeting the customers who have at least one car and own a flat or a bungalow.

Positioning:

We are positioning ourselves as a place where one can get his/her needs fulfilled from grocery, food items, FMCG, to chocolates, etc. We want to serve every class of customer; maybe we are targeting a certain class of people, but we are open for each and every customer who comes to our stores.

ADVERTISING & PROMOTION

Presently the advertising is done through a new concept of Out of Home Branding where they have introduced the 360 degree of branding where they are targeting their supplier existing & new to come and they lease the wall of their outlet to earn revenue for advertisement where these suppliers post their banners, standees so as to do publicity for themselves and they have in store radios, TV & magazines. They have constant announcement of their suppliers, this is called Out Of Home OOH branding for Magsons.

We have done event scheduling for them and promotions for upcoming festivals like Ganesh Chaturthi, Diwali, Christmas & New Year.

We are planning to have banners at selected locations & hoardings depicting social issues.

We also have prepared a radio jingle for our radio partner Radio Indigo FM 91.9 Goa

Following are the banners & promotions:

Ganesh Chaturthi:

This is for the upcoming Ganesh Chaturthi festival i.e. the birthday of Lord Ganesh/Ekdant/RiddhiSiddhi.

We are planning to have an event for children:

The theme is Ganesh Chaturthi, they are suppose to make something related to Ganesh from waste, i.e. wealth out of Waste.

The winners will get coupon of Hotel Fidalgo worth Rs 2000/-

This will be conducted at all the store of Magsons.

We are also planning to have schemes like: 5 kg Sugar@ Rs 150/- 5 kg Atta/Maida @ Rs 115/- 5 liters Oil @ Rs 475/- Fruits & vegetables Introducing season special sweets & delicacies to make your

Ganesh more special.

The advertisement banner is:

For Diwali we have:

Our advertisement banner:

These will be our banner for diwali.

The special offer for Diwali will be:

It will be available at all the stores of Magsons.

CHRISTMAS

This will be few banners for our promotion during Christmas.

There will be a competition to make things related to Christmas with paper. The winners will get hampers from Magsons.

It will be comducted in Hymart Caculo Mall.

This will be our promotional banner for New Year 2014:

This will be our promotional banner for event to be held.

The events will be for adults to make dishes related to New Year.

For kids it will be in crafts & games also.

LOYALTY PROGRAM

We already have loyalty program doing well, but we would like to include few details about the usage and the brands it has been associated with.

MAGSONS has also on offer a special loyalty program called SUPERCARD wherein cardholders can avail special benefits and discounts on shopping all year round and participate in special events and programs MAGSONS works closely with the Senior Citizens groups, offering them additional discounts and benefits at a number of cross promo stores in the city. MAGSONS stores accept all types of MASTER & VISA Credit/Debit cards. An additional payment facility extended to shoppers is the acceptance of TICKET RESTAURANT and SODEXO food coupons.

We would like to redesign it by communicating the benefits to our customers. Thw benefits are;

They can avail:

10% discount at Javed Habib 10% in all the restaurant at Fidalgo 5% discount at Delhi Darbar

This we have decided so far, we would be trying to get in more brands tp get associated with us. The benefits to these brands are that they are getting more customers into their database. They would also have their publicity done in our all the stores at 10% discount.