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ZUDIO Market Analysis

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3K views6 pages

ZUDIO Market Analysis

Uploaded by

Shreyansh Kulshrestha
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

JAIPURIA INSTITUTE OF MANAGEMENT,

INDORE (M.P.)

MARKETING MANAGEMENT - II
MARKETING PLAN REPORT
‘ZUDIO’

SUBMITTED TO: SUBMITTED BY:


DR. MANOJ DAS SIR GROUP NO. 1

1. SOMIL LULLA
2. SANSKRITI TRIPATHI
3. SONIYA RAJPUT
4. VIKRAMJEET SINGH
5. SHIVA AGARWAL
6. SANDHYA SINGH
7. SHRUTI BHATWAL
EXECUTIVE SUMMARY

This report contains an overview of Zudio, a thriving value fashion brand in India owned by Trent Limited,
part of the Tata Group. With over 290 stores across 70 cities, Zudio has positioned itself as a leader in the
highly competitive Indian retail industry. The brand's mission to make fashion accessible to everyone aligns
with its commitment to affordability, innovation, and sustainability. Facing challenges and intense
competition, Zudio strategically targets the 16-35 age group and employs a franchise model for expansion.
Rapid revenue growth from ₹144 crore in 2018 to ₹3252 crore in 2023 reflects Zudio's effective marketing
strategies and adaptability to market dynamics. Positioned for continued success, Zudio's strategic approach
and commitment to key performance indicators signal a promising future in India's evolving retail landscape
OVERVIEW OF ZUDIO

Zudio is a value fashion retail brand in India, owned and operated by Trent Limited, a part of the Tata
Group. Zudio was launched in 2011 and has since grown to over 290 stores across 70 cities in India. The
brand offers a wide range of affordable and stylish apparel, accessories, and homeware products for men,
women, and children.
Zudio's mission is to "make fashion accessible to everyone" and its vision is to be "India's leading value
fashion retailer."
The Brand's Values Are:
 Customer First: Zudio is committed to providing its customers with a great shopping experience,
offering them high-quality products at affordable prices.
 Innovation: Zudio is constantly innovating to offer its customers the latest fashion trends and styles.
 Sustainability: Zudio is committed to sustainable fashion practices and is working to reduce its
environmental impact.

INDUSTRY AND MARKET

Zudio operates in the Indian retail industry, which is one of the largest and fastest-growing retail markets in
the world. The Indian retail market is expected to grow to over USD 1.7 trillion by 2026, driven by factors
such as rising disposable incomes, increasing urbanization, and growing e-commerce penetration.
Within the Indian retail industry, Zudio operates in the value fashion segment, which is one of the most
competitive segments. The value fashion segment is characterized by low prices, high volumes, and a wide
range of products. Zudio competes with other value fashion brands such as Max Fashion, Reliance Trends,
and Big Bazaar Fashion.

TARGET AUDIENCE AND MARKET SEGMENTATION


Zudio's target audience is the value-conscious Indian consumer. The brand's target market can be segmented
into the following categories:
 Income: Zudio's target market includes consumers from all income groups, but the brand is
particularly popular with middle-income and lower-income consumers.
 Age: Zudio's target market includes consumers of all ages, but the brand is particularly popular with
young adults and families.
 Gender: Zudio's target market includes both men and women.
 Location: Zudio's target market includes consumers in both urban and rural areas.

SITUATIONAL ANALYSIS
The Indian retail industry is facing a number of challenges, including rising costs, increasing competition,
and changing consumer preferences. However, the industry is also poised for strong growth in the coming
years. Zudio is well-positioned to capitalize on this growth by leveraging its strengths in affordability,
innovation, and sustainability.

SWOT ANALYSIS
Strengths: Weaknesses:
 Strong brand recognition  Limited product differentiation
 Wide range of products at affordable  High competition from other value
prices fashion brands
 Convenient locations  Reliance on third-party logistics
 Omnichannel presence (Online & In- providers
Store)
Opportunities: Threats:
 Growing Indian retail market  Economic slowdown
 Increasing urbanization  Changing consumer preferences
 Rising disposable incomes  Rising costs

Market Research
Zudio is a well-positioned brand in the Indian value fashion segment, with a strong market share and a
number of competitive advantages.
 Market size: USD 1.7 trillion by 2026
 Growth trend: 10% CAGR over the next five years
 Customer preferences: price, quality, style, and convenience

COMPETITIVE LANDSCAPE
The competitive landscape of Zudio is highly competitive, with a number of established and emerging
brands vying for market share in the Indian value fashion segment. Zudio's main competitors include:
 Max Fashion: Max Fashion is one of the largest value fashion brands in India, with over 400 stores
across the country. The brand is known for its wide range of products at affordable prices.
 Reliance Trends: Reliance Trends is another major player in the Indian value fashion segment, with
over 1,500 stores across the country. The brand is known for its affordable prices and its focus on
Indian fashion trends.
 Big Bazaar Fashion: Big Bazaar Fashion is a value fashion brand that is owned by Future Retail.
The brand is known for its affordable prices and its wide range of products, including apparel,
footwear, and accessories.
 Myntra: Myntra is a leading e-commerce platform for fashion and lifestyle products in India. The
platform offers a wide range of products from a variety of brands, including Zudio.
 Flipkart: Flipkart is another major e-commerce platform in India that offers a wide range of fashion
products, including those from Zudio.
In addition to these established brands, Zudio also faces competition from a number of emerging brands,
such as Ajio, Nykaa Fashion, and Shein. These brands are gaining popularity among Indian consumers due
to their focus on fashion trends and their affordability.

Despite the competitive landscape, Zudio has a number of factors in its Favor, including:
 Strong brand recognition
 Wide range of product
 Convenient locations
 Omnichannel presence
 Focus on innovation and sustainability
MARKETING OBJECTIVES
The Marketing Objectives of Zudio is to increase the market share by 5% through its online and offline
presence and make the brand recognition stronger than ever, secondly is to launch a new product line for
Gen-Z exclusively who are majorly fashion conscious but in budget friendly way, To expand their brand into
tier -2 and tier -3 cities and reach pan India soon where there is rapid growing demand of affordable fashion
clothing. Also, capturing the marketing share in other their product ranges like shoes, cosmetics which is not
much people aware of.

TARGET AUDIENCE:
The Target Audience is the people who are looking for affordable fashion, budget conscious millennials (25-
40) they are also tech savvy who are heavily influenced by social media and influencer marketing, Gen- Z
(14-24) they are digitally native generation and when they think of brand sustainability and social
responsibility come along with it they value brand with their values. As well as audience who seeks for
variety of product, shoes, cosmetics, clothes. According to the manager right now there is 69% female
customer and 31% for male customer and inclusive of kids wear. Zudio aims for customer who is value
conscious, looking for good deals and discounts.

REACH AND ENGAGE:


There are multiple channels through which Zudio can engage audience. First is through digital marketing,
social media platforms like Instagram, YouTube to connect with a large portion of audience. Also, through
online campaigns to reach the target customers. Social media and collaboration go hand in hand with
popular influencers who can relate to their audience to promote. Store design also plays a major role in its
marketing plan as people know more about Zudio as a window-shopping brand. Fashion Blogs, style guides
and product videos will help a lot in this. Customer engagement activities can attract the customers but it
also helps in creating brand loyalty through events, contests, loyalty programs.

MARKETING STRATEGIES

 Target Audience: - Zudio primarily targets fashion-conscious individuals in the age group of 16-35
years, particularly college students, millennials, and Gen Z. This demographic is characterized by
their desire for trendy clothing at affordable prices.

 Cost Structure: - Zudio keeps its prices low by adopting a private labelling strategy. They don't own
their own factories or employ their own workers. Instead, they place bulk orders with various
garment manufacturers, allowing them to negotiate better prices. This approach also enables them to
offer a diverse range of products at various price points.

 Product Range: - Zudio's product range is wide and caters to various fashion preferences. They
offer a mix of trendy and casual clothing, accessories, and footwear. Their prices typically range
from ₹49 to ₹999.

 Franchise Model: - Zudio employs a franchise model known as the "FOFO (Franchise Owned
Franchise Operated)" model. In this model, Zudio partners with franchisees who invest their own
money to open and operate Zudio stores. Zudio provides franchisees with brand support, inventory
management, and training.

 Store Location Strategy: - In tier-1 cities, Zudio avoids setting up stores in prime locations due to
higher rental costs. Instead, they focus on tier-2 and tier-3 cities, where they can secure prime
locations at more affordable rates. This aligns with their target audience of fashion-conscious
individuals in these regions.

 Product Launch Timing: - Zudio is quick to respond to fashion trends and introduce new products
that align with current styles. This agility allows them to stay relevant to their target audience and
maintain their competitive edge.

 Financial Performance: - Zudio has experienced rapid growth in recent years. Their revenue has
increased from ₹144 crore in 2018 to ₹3252 crore in 2023. This growth is attributed to their
successful business strategies and their ability to cater to the evolving fashion preferences of their
target audience.

Strategy Description
 Target Audience Fashion-conscious individuals 16-35 years
 Cost Structure Private labelling, bulk orders
 Product Range Wide range of trendy and casual clothing, accessories, and footwear
 Franchise Model FOFO (Franchise Owned Franchise Operated)
 Store Location Tier-2 and tier-3 cities, prime locations
Strategy
 Product Launch Quick response to fashion trends
Timing
 Return Policy Flexible return policy
 Marketing Strategy Digital marketing, social media, influencer collaborations, regional events
 Financial Rapid growth, revenue from ₹144 crore in 2018 to ₹3252 crore in 2023
Performance

Measurement and Metrics


Key Performance Indicators (KPIs) for Zudio's Marketing Plan:
 Sales Revenue Growth: Achieve a minimum of 15% year-over-year growth in sales revenue.
 Online Conversion Rate: Increase the website conversion rate by 10% through targeted digital
marketing efforts.
 Foot Traffic Increase: Achieve a 12% increase in foot traffic to physical stores through location-
based promotions and marketing initiatives.
 Social Media Engagement: Achieve a 20% increase in overall social media engagement metrics
(likes, shares, comments) across platforms.
MEASUREMENT AND ANALYSIS:
 Sales Analytics: Utilize tools to analyze daily, weekly, and monthly sales data, comparing
performance against targets and identifying top-performing products and categories.
 Conversion Rate Tracking: Regularly monitor website analytics to track online conversion rates,
identifying high-performing channels and optimizing underperforming ones.
 Foot Traffic Metrics: Implement foot traffic tracking systems in physical stores to analyze customer
movement patterns, identify peak hours, and assess the impact of marketing initiatives.
 Social Media Analytics: Use social media analytics tools to track engagement metrics, identify
popular content, and adjust the content strategy accordingly.
TIMELINES AND MILESTONES:
 Quarterly Sales Reviews: Conduct detailed sales reviews at the end of each quarter, setting
quarterly revenue growth targets.
 Monthly Digital Marketing Assessments: Review digital marketing campaign performance
monthly, adjusting strategies and budgets based on real-time analytics.
 Seasonal Campaign Launches: Plan and execute seasonal marketing campaigns with specific
launch dates, promotion periods, and post-campaign analyses.
 Bi-weekly Social Media Audits: Conduct bi-weekly audits of social media performance, adjusting
content strategy based on engagement metrics.

CONCLUSION
In conclusion, Zudio stands as a formidable force in the Indian retail industry, navigating challenges and
capitalizing on its strengths to become a leader in the value fashion segment. With a mission to make fashion
accessible to all, Zudio's commitment to affordability, innovation, and sustainability positions it for
sustained growth. The brand's strategic marketing objectives, from increasing market share to expanding
into new product categories, reflect a forward-thinking approach. As Zudio continues to adapt to market
trends, leverage digital platforms, and maintain a strong presence in tier-2 and tier-3 cities, it is poised for
continued success and a significant impact on India's dynamic retail landscape.

Common questions

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Zudio is strongly positioned in the Indian value fashion segment due to its strong brand recognition, wide range of affordable products, convenient locations, and omnichannel presence. Its commitment to innovation and sustainability also sets it apart. Zudio's strategy of focusing on tier-2 and tier-3 cities for store locations provides cost advantages, and the use of a franchise model allows for efficient expansion. These factors, along with a customer-first approach and effective use of digital and social media engagement, establish its competitive edge against rivals such as Max Fashion and Reliance Trends .

Innovation plays a pivotal role in Zudio's market strategy, enhancing their mission to make fashion accessible. By rapidly responding to fashion trends, Zudio remains relevant to its target audience, ensuring product offerings resonate with current styles. Their strategy includes maintaining affordability through private labeling and bulk orders, allowing access to budget-conscious consumers. This innovative approach not only meets the cost expectations of their audience but also supports Zudio's brand promise, thereby strengthening market position and achieving sustained growth .

Zudio's rapid revenue growth from ₹144 crore in 2018 to ₹3252 crore in 2023 can be attributed to its effective business strategies that include offering a wide range of affordable and stylish products, targeting a younger audience aged 16-35, and employing a franchise model (FOFO) for expansion. They maintain low prices through private labeling and bulk orders, allowing for negotiation for better prices. Zudio's focus on innovation and sustainability, as well as their strategic expansion into tier-2 and tier-3 cities, where they can secure prime locations at more affordable rates, have also contributed to its success .

Zudio balances its core brand values of customer-first, innovation, and sustainability by strategically positioning itself in the growing Indian retail market. The company addresses market challenges such as rising costs and changing consumer preferences by keeping prices low through a private labeling strategy and maintaining a flexible cost structure. Zudio's focus on expanding into tier-2 and tier-3 cities aligns with increasing urbanization and rising disposable incomes, allowing it to tap into emerging markets. The brand's agility in responding to fashion trends ensures relevance, while sustainability efforts help build consumer trust in an increasingly conscious market .

Zudio uses digital marketing and social media platforms like Instagram and YouTube to connect with a large audience segment that is tech-savvy and heavily influenced by social media and influencer marketing. The brand collaborates with popular influencers for promotions, employs online campaigns to reach target customers, and uses digital marketing to target youthful and budget-conscious millennials and Gen-Z consumers. Additionally, Zudio engages audiences through fashion blogs, style guides, product videos, and various customer engagement activities, such as events and contests, to increase brand loyalty .

Zudio faces several challenges, including high competition from both established and new value fashion brands, the need for continuous innovation to meet changing consumer preferences, and reliance on third-party logistics providers. Additionally, economic slowdowns and rising costs pose threats to maintaining competitive pricing. Despite these challenges, Zudio's strengths in brand recognition, product range, and commitment to sustainability help maintain its edge as it adapts strategies to the evolving market .

Zudio aims to increase its market share by 5% through strengthening both its online and offline presence. Additionally, the brand seeks to enhance recognition and is planning to launch a new product line targeted at Gen-Z, emphasizing fashion that is conscious yet affordable. The strategy includes expanding into tier-2 and tier-3 cities and increasing awareness of other product lines like shoes and cosmetics. Zudio's objectives also cover capturing the budget-conscious demographic through varied marketing channels, like social media and influencer collaborations .

Zudio measures its success through key performance indicators such as achieving a minimum of 15% year-over-year growth in sales revenue, increasing website conversion rates by 10%, and boosting foot traffic to physical stores by 12% through promotions. Social media engagement is tracked for a 20% increase in metrics like likes and shares. Regular sales analytics are conducted, and digital marketing campaigns are assessed monthly to refine strategies. Social media performance is audited bi-weekly for real-time engagement adjustments, thus aligning measurement tools with business objectives .

Zudio employs the FOFO (Franchise Owned Franchise Operated) model, where franchisees invest to open and manage stores, benefiting from Zudio's brand support, inventory management, and training. This model aids expansion by reducing the financial burden on the company while allowing swift geographical spread. It also enables local market insights via franchisees, providing Zudio flexibility and less operational risk. This approach has facilitated Zudio's rapid growth, particularly in tier-2 and tier-3 cities, aligning with their strategic focus on affordability and accessibility .

Zudio's decision not to establish stores in prime locations of tier-1 cities is significant for cost management and alignment with their value fashion brand ethos. Avoiding high rental costs allows Zudio to maintain low prices, aligning with their target audience's budget consciousness. By focusing on tier-2 and tier-3 cities, Zudio capitalizes on urbanization trends and rising disposable incomes. This strategy mitigates rental expenses, enabling investment in customer experience and product innovation, thereby creating a sustainable competitive advantage .

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