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Scotch & Soda

Submitted to Mrs. Ritu Jain, Mr. Bhaskar Das, Dr. Jaspreet Kaur, Dr.
Poonam Kumar, Dr. Varun Duggal, Mr...
We hereby declare that the project work entitled “Project Report on
“Scotch and Soda”, submitted to the Pearl ...

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Scotch & Soda

A detailed report on the brand Scotch & Soda for college research project on various subject implementations of Marketing, Retail, Fashion, Communication, Design, and Business.
Also, this report is solely based on personal research and doesn't disclose any relevant company-based private information.

A detailed report on the brand Scotch & Soda for college research project on various subject implementations of Marketing, Retail, Fashion, Communication, Design, and Business.
Also, this report is solely based on personal research and doesn't disclose any relevant company-based private information.


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Scotch & Soda

  1. 1. SCOTCH & SODA
  2. 2. STUDY ON THE BRAND Submitted to Mrs. Ritu Jain, Mr. Bhaskar Das, Dr. Jaspreet Kaur, Dr. Poonam Kumar, Dr. Varun Duggal, Mr. Piyush Pandey, Gaggan Bhatia, Mr. Neeraj Kapoor, Mrs. Alka Gupta, Mrs. Preeti Goel, Mrs. Smriti Bhagat, Mr. Gaurav Singhal, PEARL ACADEMY SCHOOL OF BUSINESS P.G. Fashion Business (Marketing & Merchandising) (Cohort-2019-2021) Submitted by ARPIT ARORA & KIRTI KARVEE
  3. 3. DECLARATION We hereby declare that the project work entitled “Project Report on “Scotch and Soda”, submitted to the Pearl Academy, is a record of an original work done by us under the guidance of Mr. Gaggan Bhatia Course Leaders of Post-Graduation in Fashion Business Marketing and Merchandising, and this project is submitted in partial fulfilment of the requirements for the award of the degree of Post-Graduation in Fashion Business Marketing and Merchandising. The results embodied in this work have not been submitted to any other university or institute for the award of any degree or diploma. Name : Arpit Arora & Kirti Karvee Signature:
  4. 4. T A B L E O F C O N T E N T I N T R O D U C T I O N 1 R A T I O N A L E 5 L I T E R A T U R E 7 R E V I E W E N V I R O N M E N T A L 1 5 A N A L Y S I S M A R K E T I N G 1 7 A N A L Y S I S C O M P E T I T O R 1 9 A N A L Y S I S C O N S U M E R 2 1 A N A L Y S I S B R A N D I N G 2 4 F I N A N C I A L 3 0 A N A L Y S I S R E T A I L 3 4 M E R C H A N D I S I N G
  5. 5. T A B L E O F C O N T E N T P R O D U C T 4 5 M E R C H A N D I S I N G P R O D U C T I O N 4 9 P R O C E S S Q U A N T I T A T I V E 5 5 R E S E A R C H Q U A L I T A T I V E 6 6 R E S E A R C H H U M A N 7 1 R E S O U R C E L A B R E P O R T 7 8 C O M M U N I C A T I O N 8 7 D E S I G N D I G I T A L 9 3 M A R K E T I N G A N N E X U R E 1 0 0
  7. 7. BRAND OVERVIEW SCOTCH AND SODA Scotch and Soda is an Amsterdam based brand established around 1987 rebranded in 2001. The company was acquired by US-based apparel group Sun capital partners in 2011. It has a worldwide presence since then with 250 plus mono-brand stores all over the globe and 7000 + inclusive stores.Scotch and Soda came to India in 2014 and collaborated exclusively on MyntraBut later on with other great opportunities, it broke its collaboration with Myntra and partner through franchise business with Reliance industries in 2016 to set up stores in India (Times of India, 2016)At present scotch and soda has around 7 standalone stores in major metropolitan cities like  Delhi Tamil Nadu West Bengal Maharashtra Uttar Pradesh India.
  8. 8. PARENT/SUBSIDIARY COMPANY In India the brand operates as a Franchise Business model under Reliance Brands Limited
  9. 9. "At Scotch & Soda we want people to love their clothes and enjoy wearing them, that’s why we make great garments that suit every individual. Our products are rich in detail, high quality and affordable. The designers at Scotch & Soda spare no expense in ensuring the high quality detailing and finishing of each and every garment produced. We invest in the product, which is typically inspired by the best tried and tested classic and vintage styles, enriched with a wealth of inspiration from around the world. " BRAND VISION BRAND USP Scotch & Soda is one global brand paying attention to well-dressed people of all ages is Scotch & Soda." It’s a story of both world discovery and self- discovery - about how far you’d go and what risks you’d take to do things differently and choose your own way
  11. 11. For the purpose of understanding an international Brand’s framework in India, we choose the famous fashion brand “Scotch & Soda” from Amsterdam which has a worldwide presence today. They have recently stepped to India a few years back first with an online presence and later setting up stores in prime cities and locations.Dutch fashion label Scotch & Soda CEO Dirk-Jan Stoppelenburg says the brand draws inspiration from everything, even poems and rumours, and that India remains a crucial market for the company ( Forbes, 2020) Partnered with Reliance to operates the Scotch & Soda business after trying out the online presence through Myntra, the brand’s our collective goal is to build a brand connect with customers (Forbes,2020) Also they believe India can become an important sourcing destination of the brand in the future, as their total sourcing from India is day by day growing in the past 3 years.Although, the brand is facing some challenges to fit into the mind of the consumers because of lack of required connection with the audience. It has so much to offer yet, couldn’t tap the target the right way. Positioning of the band has to be well looked upon if they are planning to play big in the future. Secondly, adding to the problem, the current Covid19 pandemic has put them in a position to revisit their framework and come up with all new ways to cope with the retail structure in order to deliver value to the customers and keep up with losses made during the black swan situation. Changing in the new realities is expected at latest to lead. RATIONALE
  13. 13. COVID-19 AND CONSUMER BEHAVIOUR SCOTCH & SODA LITERATURE REVIEW The reality of this new pandemic took the world by surprise. People worldwide are still trying to adapt to the idea of prolonged indoor stays. The current global crisis has resulted in a paradigm shift in consumer behavior. This change in behavior may become the 'way of life' & 'new normal' for consumers. Consumers may be driven to buy luxury for "conscientious value" rather than "conspicuous value". There will be a transformation from "what you wear" to "who you are," within conscious consumers. (Dr. Sheetal Jain, 2020). Also, Nelson in his recent reports says that, when people return to daily routines, they may continue to be cautious about health, and there could be permanent shifts in supply chain and increased usage of e-commerce. Elders, previously reticent to shop online, find that new, easier-to-use apps and social media make shopping a breeze. Unless online retail offers a unique value proposition, shoppers will return to physical retail since consumer response in a crisis is very different from when there is stability. Concerns about the availability of goods have encouraged panic buying of items in bulk. Financial uncertainty and the prospect of a severe and long-term recession make for a stark backdrop which has led to an impact on consumer outlook, perceptions, and behaviors. (Adam,2020). Mass is discovering the joys of do-it-yourself (DIY) projects. Hygiene is high on the agenda, spend more time on their wellness or beauty routines. Even after the pandemic slows down it’ll lead to a furthering of the shift towards consumers seeking more meaningful experiences, rather than just accumulating things. ( Mintel Blog, 2020). The businesses, in this case, have to revisit their brand essence and use innovative thinking to identify new ways to use technology to solve life’s issues. ( Crabble,2020)
  14. 14. For a clearer understanding of my Brand’s consumer behavior in particular and in general, we’ve used 2 models, AIO (activity, interest, and opinion), VALS (values, attitude, and lifestyle). AIO Activities, interest, and Opinions (AIO) are characteristics of a person used by market analysts in their research to build the psychographic profile of the individual. VALS (Values, attitude, and lifestyle) it focuses on the beliefs and behaviors of a customer, has been commonly used for segmentation of the psychographics. (MBA Skool, 2019). In her research, The role of various Psychographic characteristics in apparel store selection: A study on youth shows 4 psychographics divisions through cluster analysis 1) Get going adapter 2) Independent life lovers 3) Confused followers 4) Disinterested Introverts. Our customer base will mostly fall into the 1st and 2nd category who see shopping as a recreational activity and are both driven by the layout and latest designs. (Narang, 2010)The second research “Generation Y values and lifestyle segments” (Dawn B, Thomas L, 2013) said Generation Y is based on age sub-segments. Segmenting the Generation Y market into meaningful subsets may be better served through specific and targeted marketing messages. This research has implications for marketing managers that shed some light on this issue. Mostly experiencers, strivers tend towards the usage of the internet and another segment towards the television. Another research by Robert B settle, 1978, (Individual time orientation and consumer lifestyle) he stated that there are 2 types of consumers 1. Future- Oriented 2. Past Oriented. Future-oriented people see themselves as opinion leaders, flexible, innovative. They are more ambitious, involved whereas past Orient consumers are the ones who are more of a cautions shoppers. They are pessimistic in nature about financial matters. While doing this we came across that generation z and millennial are mostly the ones that fall in this category and the target customers of Scotch and Soda are people who like innovations and are flexible. They are the ones who are conscious about their dressing. UNDERSTANDING CONSUMER AIO/VALS MODEL SCOTCH & SODA
  15. 15. (Emergence of online shopping in India: shopping orientation segments) tells us that in a drastically shifting business towards online platforms, we noticed that online shoppers were likely to be convenience, impulsive, and variety seeking oriented. Two major segments can be:1. The quality at any price segment. Here price is always relatively less important to them if the quality is well convincible. 2.Reputation/ recreation Segment. They moreover see shopping as a recreational activity, interested in popular brands and all trendy things. Online sellers may rely on the diffusion of innovation processes to bring these consumers on board. As seeing the consumer reaction on online shopping Scotch and Soda has to explore more online platforms in India to expand their reach. (Rajan,2012)Sustainability VALS: Sustainability value, lifestyle-practices, and stewardship explained AIO model of sustainable lifestyle practice as Activities: are composed of green product purchasing, purchase intention, recycling, and care. Opinions: are for a pro-environment attitude linking moral obligation of values, beliefs, and norms. Interests: it shares a personal commitment to sustainability (Lee,2011). Brand strictly follows no fur, feather, no animal testing, skin leather or wool and also run on sustainable energy (Scotch and Soda) In this research paper we discovered that consumer accepts green products when their principal need for performance, quality, convince are met and when they understand how green products can help to solve environmental problems. Findings of the study “Examining the role of consumer lifestyles on ecological behavior among young Indian consumers” highlight that environmental patterns and lifestyle factors are those that best characterize the ecological market segment. This group of young consumers is characterized by their self-identity and a feeling of uniqueness. They always try to improve themselves and take actions that pose a new challenge for them by having an ecological lifestyle, selecting and recycling products and taking part in events to protect the environment. This type of consumer is a present and future investment for firms that are committed to the environment. They can be smartly induced by tapping their values on point.(Adnan, Ahmad, 2017)
  16. 16. I don ́t care about brand when shopping. I just take into account the type of product. In my free time, it is important for me to have fun. In my free time, it is important for me to meet new people to find new places. In my free time, it is important for me to do something useful. When shopping I often buy something I have never bought before. One of my life principles is to be well-dressed. I prefer innovative- looking products. I prefer buying more expensive but better quality clothing. It is important for me to spend my free time doing my hobbies. I live to enjoy my life. I like to dress inconspicuously. When it comes to clothing I have a very good taste. I dress in such a way to be liked by the others. I am self-confident enough. A good brand is a guarantee of a high quality. I t's worth paying more for quality products. Quality products are always more expensive. Clothes should be primarily practical and comfortable. The government should guarantee reasonable living standards for everyone. A C T I V I T Y I N T E R E S T O P I N I O N
  17. 17. RO 1 To analyse the consumer behaviour for the brand with respect to Indian Consumer. RO 2 To analyze the financial statements of the Brand and interpret the brand position RO 3 To understand the HR Policy and employee reviews regarding the organisation RO 4 To find out the annual sales budget and for a range plan for Spring Season ‘21 RO 5 To understand the buying and production process involve OBJECTIVES Research SCOTCH & SODA
  18. 18. With a population of almost 0.9 million (worldometer,2020), with almost equal men and women ratio, the city of Amsterdam looks back on a long and interesting history, and today it prides itself on a rich cultural life and a diverse population. The people who live here, the people who work here, the people who study here and the people who visit here are what makes Amsterdam vibrant and multi-faceted. There is an underlying belief that sport and exercise are key to living a healthy, happy life, and the city's population takes advantage of thisregularly. Amsterdam’s international profiles introduce us to a wide variety of people from around the globe who've chosen to develop their careers and live their life in the Amsterdam Metropolitan Area, finding new work, making new friends and enjoying a wealth of opportunities. Share in their experiences and get ahead with their tips. They have an Unintentional attention towards bold individualistic fashion. People of Amsterdam like social traveling, weekend getaways, and other activities. And they have a very casual approach in daily dressing.With roughly 2.5 bikes per head in the Netherlands, it’s no surprise that getting around the city by bicycle is everyone’s preferred mode of transport. Cycling is a simple and healthy way to get anywhere in the city and may well be a key ingredient towards enjoying a happier and fit lifestyle COUNTRY OF ORIGIN SCOTCH AND SODA Amsterdam
  19. 19. Casual workwear is now being adopted by people in India by working as well as nonworking class. The Confident Clothing approach is also adopted by people psychologically. Body positivity is widely accepted by recent generations so the scope of plus size fashion is a recent opportunity in the apparel business. Older people also like to be well-groomed these days so they are also to be considered as a new segment altogether. People can be influenced by Advertisement. They take interest in new upcoming products and keen to try them as well. COUNTRY OF ACCEPTANCE SCOTCH AND SODA THE BRAND Scotch & Soda is about Individualistic and eclectic sense of fashion. They don't believe in associating their identity but believe there exists a market who will identify themselves with the brand's identity. It proudly says that we’re "Storyteller of small things"Because they are actually excellent at drawing inspirations from little things around and blend it with the designs, patterns and styles to create a unmet style of their own. They are believer of ownership and originality in style statement of the individual “Just like its culture which is very cosmopolitan, its (Amsterdam’s) fashion is also very embracing. It takes things from across the world and mixes them up to make its own style," says (CEO) Dirk-Jan Stoppelenburg INDIA
  20. 20. E N V I R O N M E N T A L A N A L Y S I S SCOTCH  & SODA 15
  21. 21. OPPORTUNITIES Expanding the store presence is always an opportunity but also expanding women wear firstly and stepping into kids and furnishing section as in other countries. Proper advertisement can do wonders and will increase the chances of building awareness and thus market share could also level up. It has a well-established physical presence but an online presence is still not up to date. (Livemint, 2016) And getting into e-commerce is no more a choice but a need. THREATS Competitors are in a better position in most aspects. Diversified mindset of Indian consumers. Sourcing cost (mostly done from far countries) is subjected to political, legal and environmental changes. (amid COVID-19). Premium pricing as to competito STRENGTHS The brand associates strongly with the quality they serve is at its best and that is what makes customers stick to the brand. Secondly, along with a strong image around the globe in India it is associated with Reliance Industries that adds to their reputation and good image again. It caters to a wide age group (men) and women without a barrier to any target age group. It sources designs and merchandise from different locations and therefore could provide multi-varied options to its customers. WEAKNESS There lacks Brand Awareness and Promotion in the market. It moreover believes in Word of Mouth promotions but In India, the brands do work on assertive marketing and advertisements. Although the brand is doing pretty well but with a little push of awareness opportunities will not be bound. The choice of store location could be another matter of concern because at all places the store has been purposely given a corner and not in the limelight location. The undefined target group fails communicating with the target group. Less merchandise for women. MEN: WOMEN Ratio (7:3) says store manager (Pooja,2020) SWOT ANALYSIS ENVIRONMENTAL ANALYSIS
  22. 22. M A R K E T I N G A N A L Y S I S SCOTCH  & SODA 17
  23. 23. SEGMENTATION TARGETING POSITIONING Geographic: Metropolitan cities at Prime locations like Delhi, Mumbai, Chennai targeting the Urban high class and cosmopolitan population. Demographic: Age group 20 and above that would include Men and women with high spending power. They also have kids apparel but apparently not in India. Psycho-graphic: Mature men and women, expressive through fashion, self -style statement, Unique way of living, explorers (Fashion United, 2017) Behavioral: less price sensitive. quality driven, individual style explorers and Independent life lovers. The brand has adopted for a Differentiated targeting approach for its consumer- They would focus on Men and women, regardless of the age, young or old in different age groups who would understand and associate themselves with the brand and ready to pay what it costs.(Forbes, 2016) Scotch & soda is positioned as a down to earth, premium, contemporary brand with an Amsterdam cool heritage and sensibility.Also, the positioning of the brand through perceptual Mapping is shown in the picture. (Forbes, 2019)
  24. 24. C O M P E T I T O R A N A L Y S I S SCOTCH  & SODA 19
  25. 25. D I E S E L S U P E R - D R Y Scotch & Soda Lacoste
  26. 26. C O N S U M E R A N A L Y S I S SCOTCH  & SODA 21
  27. 27. rfm analysis R E C E N C Y F R E Q U E N C Y M O N E T A R Y RFM Analysis of data is a technique used to determine quantitatively which customers are the best ones by examining and also a way to identify groups of customers for special treatment. It stands for 3 dimensions Recency, Frequency and Monetary and is intensively used by businesses to analyze customer value In our study we managed to collect 150 transactional data FROM 30 Scotch consumers through different data points, connecting people through social media, friends and relatives etc. Using Rconnect software we run the data for the rfm analysis and received the following results. The Rfm analysis helped us to cluster the data according to meaningful customer segment patterns which would further help us derive personalized strategies for each of those segments. The majority 63% is under Class 2 and 3 including new and promising customers who have spent a little amount of money recently but only once or twice as well as customers who need attention are those who’ve spent a good amount in the past but haven’t come back since a long time, also those who used to buy frequently and spend good amount but haven’t turned up in a long time. The main priority for the brand has to be these customers and make efforts to convert them loyal customers of the brand. Although it has been only 2 years since the brand has been properly established therefore the champions and loyal customers (24%) are difficult to be clearly distinguished in such a short span.Also, 13% of the customers who fall under class 1 are hibernating and maybe we’re on the verge of losing them. Since the initial efforts are very important to be put in during time of establishment because that is how we can best create brand awareness and put the brand in the minds of the people
  28. 28. CLASS 1 This segment can be taken under those who have one tried the brand, maybe that too with low end products and never turned back. Retargeting them by taking into account their identified preferences or past purchase behaviour in order to add relevant value to their experience when retargeting them after. Giving them credit points that they can use for purchase, giving them discounts and offers on their wishlists. Sending them texts or emails saying, Are you there? Hi we’ve got something for you can also induce engagement. Monetary value for this class is usually low so strategies like referral marketing can induce them as well. CLASS 2 This segment has those majority customers who used to visit quite often, and also purchased good amounts of merchandise but haven’t visited recently. The brand cannot afford to lose this segment as they were once very interested and it’s important to know what went wrong, either they've had an issue or maybe switched to competitors. The brand can create “win back strategies'' for these customers like sending them emails or personalized texts, limited time offers in the form of push notifications (respecting their space). Also trying to collect reviews or feedback from their last purchases could help analyze why they went apart and assuring them that you care. Also if tapped correctly they have the potential to turn into loyalists. CLASS 3 Consisting 30% of segmentation class 3 includes those who have high overall RFM but low frequent shoppers. The brand has to make a great deal at First Impression. The brand has already succeeded in creating awareness because the customer has decided to try the product. Focus on increasing monetization through product recommendations based on past purchases and incentives tied spending thresholds. The relationship has to be built now, providing loyalty programs, combo offers, they can be invited to early slots during sales. Providing them product catalogues at their first purchase to keep them curious can be one smart move as well, first time user offers can be tried. They are likely to be converted into regulars if understood well. CLASS 4 / 5 This class has the hero and to-be heroes customer segment for the brand. They have to be dealt very smartly as they really matter and so are their opinions. The brand can perform high personalization efforts for this group, they have to feel privileged. Sending them gifts and wishes on big days can be one strategy to keep them uplifted. We can find out ways to bring them to the spotlight through social media fun campaigns, they’re likely to get involved and also can act as a good source of ‘word-of-mouth’. Sending them invites to launch events, or other events organized by the brand can clearly create value. The brand has to stay always on top of mind. Also, to add the general strategies that the brands should focus during this unforeseen situation when no brands are making profit or selling products, it’s very very important to at least remain connected to the customer. Making valuable efforts to tap on the current requirements and find a way to deliver the same value can provide the business with good results in the long run. Social media is no doubt one of the best ways to go for it. The businesses have to think beyond selling the product. Running interesting campaigns, and competitions, and other contents and will make users to stick to the brand virtually. RECOMMENDATION BASED ON RFM ANALYSIS SCOTCH & SODA
  29. 29. BRANDING Where's your road? 24
  30. 30. The brand name suggests a classic everlasting combination that associates with luxury and premium lifestyle a black and white logo. Sewing machine logo to bring an essence of couture image to the brand. that states premium touch. S C O T C H & S O D A What makes the Brand different? "Just like its culture which is very cosmopolitan, its (Amsterdam’s) fashion is also very embracing. It takes things from across the world and mixes them up to make its own style," (CEO Jan stoppelenburg, 2017)Also, the brand says they cater a particular mindset of people who would fall into explorers and innovators, but the demographic is huge, the collection might be alluring for an adolescent as well as 60 year old man. They want the customer to relate their Individualism with the brand. (Scotch and soda, 2017) (official website) Also, the brand is very particular about the story theme and inspiration behind every style, which they draw from biggest to the tiniest things and it surely reflects in the collection. They don't go overboard with their silhouettes, they want to remain classic with style but play with patterns and prints.
  31. 31. Brand & Maslow's Need Hierarchy Creativity Spontaneity Confidence Achievement Individuality Knowledge quest Meaning of life Acceptance of facts The brand Scotch and soda believes that they fulfill the need of attributes within Self-Esteem and Self - Actualization Kapferer's Brand Prism It concepts for describing a brand’s identity through its characteristics. The prism diagram is a useful visualization for identifying not only a brand’s core characteristics, but how they relate to one another. According to Kapferer, the strongest brands weave all six elements together seamlessly into a cohesive brand identity and message – with all six facets relating to the brand’s core essence. Physique Relationship Culture Reflection Self-Image Personality Here is an understanding of the brand and its customer base, the brand identity prism for Scotch and Soda
  32. 32. BRAND SALIENCE The degree to which brand is thought or noticed when a customer is in a buying situation. Scotch and Soda will fall into Low to Moderate amidst the fact that it has a moderately low recall, recognition, and awareness among its customers. The brand somewhere lacks on connecting to the consumer. BRAND PERFORMANCE It talks about how well the brand performs to meet the needs of the consumer.The brand here provides high fashion, with high-quality apparel. and reflect the adage "people pay for what they see in the product". The store feels very vintage and chic. BRAND IMAGERY Imagery is what impression comes to mind when a customer pictures of a brand. Sometimes it's not only products but a lifestyle that a brand connects with.Here the customer images the brand to be very luxurious and sophisticated. BRAND JUDGEMENTS This element is about the customer's opinion of a product. Here, for Scotch, the customer agrees on good quality but at the same time it's a little too expensive they feel as well. The ones who've visited the brand talk about it but in mind of others it's just an unpopular brand that exists. But at the same time, they have opinions that the design and patterns they offer are exceptional. BRAND FEELINGS As simple, how does the customer feel about a brand? For Scotch, the customers feel a high-status symbol to own the brand. They feel a distinctive style because of the exceptional products. BRAND RESONANCE Resonance refers to the nature of the relationship that customers have with the brand and the extent to which customers feel that they are “in sync” with the brand. In the brand's case, it will be low to moderate because the customers are loyal but less in no. It's still new at capturing the minds of the customer and customer engagement is also less which has to be drastically improved through creating intensive brand awareness. b r a n d r e s o n a n c e
  33. 33. HOW CAN BRAND EFFECTIVELY THINK OF EXTENSION WITH RESPECT TO THE COVID-19 CRISIS? As we all are aware that this crisis at current has led to a halt on the actions of the world. Everyone has been staying indoors and spending time with Families and Working from home. If I look at the brand’s customer segment, it gives me a personality that is sophisticated, elite, vintage and classic. Therefore apart from the current Product line that is menswear and womenswear, we can think of extending the brand with a Category Extension Approach. We know that how the brand is known for its extravagant prints patterns and designs that make them stand outside the box, continuing with the same, the brand can extend its product line to Aesthetic Wallpapers and other Home furnishings and develop themselves as a stylish sustainable luxury brand. Also, the prints could be used to try their hands on Bespoke shoes. This has been practiced earlier by a very successful business “Sabyasachi”. A beautiful campaign can be used to communicate with the customers to redecorate their homes. This also shouldn't be a bigger challenge for the company because they have been running home furnishing successfully under their roof in other countries. C O V I D - 1 9 Scotch & Soda V/S DURING COVID 19 The current pandemic has brought businesses to brainstorms new ways to connect to their consumers. Especially the luxury and premium retail industry is facing a huge crisis because most of their revenues are generated through offline sales. (ET, 2020) The brand seems quite active on global instagram pages, and also have been launching their seasonal collection with beautiful campaigns, but again, lacking to actually deliver them to Indian consumers. They are trying to conduct a series of events and campaigns through social media to keep up the customer engagement. Apart from launching collections, a few creative things that they had done include masterclasses of various strands, launching album playlists on different themes every week, live DJ,s and yoga sessions, encouraging more participants.Also, Scotch declared that 50% of their wardrobe classic sales and 10 % of worldwide online sales will be donated to the UN Foundations Solidarity Response Fund for the WHO. (Stoppelenburg, 2020)Talking about Scotch and Soda, its presence in India as of now is about 8 stores in different cities. Although they sell through Ajio online shopping site but failed to create a standalone social media and online selling presence at a high level. This will reduce their chances to connect to the audience at an emotional and personal level during its tough time. They haven’t done any lays off as of yet.
  34. 34. The new reality will depend largely on the behaviors and spending habits of core consumer segments. As this situation hits hard, the consumer anxiety about infection persists across all age grou them shift to online and digital purchasing. The longer the crisis exists omnichannel purchasing will become the next normal.Although some brands have been facing ‘Internet Dilemma’ of how to be inclusive and yet maintain an aura of exclusivity.The brand has to revisit its competitive advantages identifying the opportunities for growth in the next normal (Achielle, Zisper, 2020). The task of replicating unique, personalized luxury buying experience offered in offline stores will require investment in world-class digital technologies- ranging from augmented reality/virtual reality to artificial intelligence, data analytics, and so on 360-degree viewing, virtual dressing room, etc (Jain,2020).One big challenge will be to come up with models to create an offline safe space for both it’s customers and employees. Store sanitization, touchless limited walk-in has to be enhanced, contactless and cardless payment gateways to be assured. Regarding what to sell, the alterations have to be made in the plan too. The consumer will demand more comfort yet functional clothing, as work culture is changing and keyboard up dressing is more into the trend. Bringing in purposefulness in designs like fashion masks, overalls style, and a few other innovations in classic can really help (Malik,2020)Happened in China, after the lifting up of lockdown brands like Hermes and Louis Vuitton were boosted with huge sales, this was the result of “Revenge buying” and a desire to maximize value for money by purchasing functional items (BOF, 2020) Likely to be happening here as well, the brands can apply the Zara online model, where customer can choose the products online and pick-up from the store. This can save in-store time spend. But keeping in mind that customers will now shift to value for money while purchasing brands can use the tactics “Bridge to luxury” to make luxury available at accessible prices for young Indian buyers. Luxury retailers should see opportunities in this challenging scenario to entice new consumers by coming up with products with lower price points (Achielle, Zisper, 2020). Also, consumers will embrace the brands which show a sense of responsibility in the hour of crisis. Moving to sustainable solutions and can help them win over this. L E A D I N G I N new realities 2 0 2 0 T H E N E W N O R M A L
  35. 35. F I N A N C I A L A N A L Y S I S 30
  36. 36. Preliminary Expenses As we’ve calculated the sales figure earlier, keeping it as a base we are here calculating a rough Preliminary Expenses for the Brand . Legal Expenses as mentioned to be 1.2 % of revenue because it is standard to keep them. Brand Launch cost is assumed to be again 8% of the sales figure. And other preliminary expenses as 12% of the sales. COMPUTATION OF ASP ASP is calculated through the SKU’s found from the observation at Scotch store and similarly ASP of each category along with weights in the category mix. ASP (YEAR 1) Weights x ASP = 8050
  37. 37. INITIAL INVESTMENT (CAPEX) Assuming the security deposit to be 6month rent + one month advance, As the per month rent for the store at DLF Noida is approximately 2lacs ( Sales consultant, 2020), the amount totals to 7month rent; 14lacs. Store interiors to be calculated at 5000 per sq foot. And Working Capital Investment is taken into account as 30% of yearly sales. OPERATING EXPENSE (OPEX) An operating expense is an expense a business incurs through its normal business operations. Often abbreviated as OPEX, operating expenses include rent, equipment, inventory costs, marketing, payroll, insurance, step costs, and funds allocated for research and development. ADMINISTRATION AND OFFICE EXPENSES / SELLING AND DISTRIBUTION EXPENSES (PVH Corp, 2019) Using the footfall, average basket size,average transaction value and other data from the retail store, we found that the yearly sales figure of the store came out to be INR 16,30,00,000, after dividing COGS(46%) and Gross profit(54%) and then subtracting fixed cost we got an operating loss of INR 4890000. After the COVID pandemic, the sales are further expected to decrease by 50% and so the operating profit will rise at a very high level. A sale of INR 172,055,555 should be there to reach the breakeven. There should be a target profit of INR 32600000, i.e. 20% of regular sales and for that yearly sales should reach INR 232425925 for bringing the company to a profitable situation. INCOME STATEMENT BREAKEVEN POINT
  38. 38. NET PRESENT VALUE(NPV) IF PROFITS ARE INCREASING AT @20% PER ANNUM, IF THE ASSUMPTION OF DISCOUNT RATE IS 10%, i.e, i=10% For any situation to be termed as Black Swan, it has to be a totally unpredictable event, impact should be huge. The Coronavirus (COVID-19) is a “Black Swan” event. This unexpected and hard- to-predict event was not within the range of normal expectations. Nonetheless, it will result in a severe economic contraction on a global basis in 2020. While the magnitude of the human tragedy is still unknowable and outside the realm of our expertise, the economic and financial impact is coming into view. Our focus on the latter does not intend to lessen the importance of the human side but is merely our recognition of our area of competence. Black Swan Situation
  40. 40. The store is located on the ground floor and is spread in the area of 2400 Sq Ft. There are 5 employees who are handling the overall operations of the store for 10 hours per day. The store has a footfall of 100-150 customers per day on weekdays and 200-250 customers per day on weekends. With a conversion rate of 4/hour on weekdays and 6/hour on weekends, the overall conversion rate for the whole day i.e. 10 working hours, becomes 40/day for weekdays and 60/day for weekends. The average basket size was about 2 articles per basket with an average basket value of Rs.10000/basket. This resulted in an average per hour sale on weekdays of Rs. 40000 and on weekends Rs. 60000.Thus the avg. per day sale was found out to be Rs. 4 lacs for weekday and Rs. 6 lacs on weekends. Total monthly sales is found by adding sales of all weekdays and all weekends of a month which came out to be Rs.13600000. This gave us the annual sales of Rs. 163200000. Thus with these figures in hand, the per month sales per square feet is calculated and came out Rs.5700. There are two stores of Scotch and Soda in Delhi-NCR. The store which we visited for the retail merchandise analysis is in DLF Mall of India, Noida. In the store, we were assisted by their senior fashion consultant, Pooja who gave us the detailed tour of the store and briefed us about various operations and policies of the store. We also did a self-analysis of the store in which we found some vital information as: Analysis S T O R E
  41. 41. T H I S C A T E G O R Y H A S B E E N D E R I V E D F R O M T H E S K U T A B L E Category Mix A N A L Y S I S
  42. 42. Category Mix A N A L Y S I S Scotch and Soda maintains a ratio of 7: 3 (Men:Women) and majorly deals in clothing and accessories.  The assortment includes both everyday classic and fashion wear ,although the range includes a narrow depth and width in most categories. But it has all possible colors ratios available in polo t-shirt and chinos categories because they are the USP of the brand. The top is to bottom mens category is more towards topwear in both categories. Mens T-shirts alone comprise more than the total of all men bottom wear. It is a bridge to luxury brands offering high quality merchandise at an avg store price of INR 9000. INTERPRETATION OF CATEGORY MIX
  43. 43. WGSN TREND REPORT Spring/Summer'21
  44. 44. ombre STYLE CAPSULE SS'21
  45. 45. SS'21
  46. 46. Merchandise Budget Calculations Estimated Sales with 35% less value due Covid-19
  47. 47. MEN 7500X 67% + 11330 X 33% ASP = 9440 WOMEN 7080X 52% + 8750 X 48% ASP= 7880* ASP OF THE STORE 9440 X 72% + 7880X 28% ASP= 9000 Budget Allocations FEB - MAR - APRIL
  48. 48. CHOSEN CATEGORY FOR RANGE PLAN - WOMEN DRESSES BUDGET ( 14,90,721 ) Avg Selling Price- 7000 INR Estimated Units Purchase - 213 Units 213 Units CLASSIC WEAR 128 units Size set Ratio: 2:3:3:1 Color Ratio 2:2 No. of Units per style- 36 No. of styles : 128/36 4 styles * FASHION WEAR 85 units Size set Ratio: 1:2:2:1 Color Ratio 2:2 No. of Units per style- 24 No. of styles : 85/24 4 styles * Classic : Fashion 6:4 Spring Summer' 21 R A N G E P L A N B U D G E T
  49. 49. RANGE PLAN (FASHION) RANGE PLAN (CLASSIC) Spring Summer' 21 Note: Refer to this Google sheet link for clear understanding https://docs.google.com/spreadsheets/d/1FanD_3Nw46v555zYVTNRBmrRA-ySoYqBGiU4MEdTPdU/edit? usp=sharing
  50. 50. Spring Summer' 21 PRODUCT BUYING & MERCHANDISING SCOTCH  & SODA 45
  52. 52. Techpack BILL OF MATERIALS SHEET STYLE CODING Note: Please refer this google sheet link to view the complete T & A Calender https://docs.google.com/spreadsheets/d/1FanD_3Nw46v555zYVTNRBmrRA- ySoYqBGiU4MEdTPdU/edit?usp=sharing
  55. 55. PRE- PRODUCTION PROCESS FLOW 1. Tech pack received from the buyer: At the very first stage of a garment export order, the buyer sends the tech pack to the apparel merchandiser to develop the sample. Designers will include measurements, materials, colors, trim, hardware, grading, labels, tags, etc 2. BOM draft for sampling: The cost initial requirements for making the proto sample has been calculated and sent to the buyer. 3. Raw material procurement and inspection The material is sourced, inspected and approved for the product development. 4. Proto Sample Development According to the tech pack, garment merchandisers develop the first sample. Normally product development sample quantity is 2-3pcs, where 1pc for buyer, 1 pc for agent and another 1pc for apparel merchandiser as a counter. Exact material, color, and fabrics to be used at this point. 5. Product approval from the buyer: When a product development sample is completed then it’s sent to the buyer for approval. If product development is perfect then approved by the buyer, but if there’s needed any rectify then it’s sent again to the garment merchandiser. 6. Fit Sample making and approval Fit samples are made on the basis of grade rule. The main purpose of a fit sample is to check the fit and construction of the garment. If they approve of it, we move further and other changes to be considered.
  56. 56. 7. BOM draft for Production It is the main stage of any garment export order. Business profit totally depends on it. After negotiating with the buyer, the garment merchandiser fixed a perfect price for the order here. 8. Approval on Pre-Production Sample This is the sample with all final modifications done. PP sample is made in garment factories prior to starting bulk production. 9. Approvals on Size- set Samples Size set sample is made to check the measurement and shrinkage of fabric. After checking the size set sample they will adjust the pattern and will make a pre-production sample for buyer approval. 10. Order confirmation: Finally, the order is confirmed here. In this stage, the buyer confirms the quantity, shipping date and other terms related to the apparel export order. 11. Fabric and Trims estimation and booking: In this stage, apparel merchandisers have to calculate fabrics and accessories consumption according to the buyer's provided measurement chart and order quantity and bookings are made accordingly 12. Fabric and accessories in-housed and Inspected In this stage, the required amount of fabrics and accessories are in-housed depending on the fabric and accessories booking chart and fabric inspection is done. GPT and FPT are done to confirm the functionality of the fabric. And order file is transferred to the Production Department.
  57. 57. PRODUCTION PROCESS FLOW 1. RECEIVING PRODUCTION PATTERN It is a pattern set that has been corrected and is without error. It is the base for the final production of the T-shirts. 2. GRADING Pattern Grading is the process whereby patterns of different sizes are produced from the original master pattern. This process can be performed manually or automatically by a computerized system. Patterns are graded according to size charts which present the sizes and the average measurements of the population group for which the garments are intended. 3. SPREADING Spreading is a preparatory operation for cutting. The main aim of the spreading process is to lay the several fabric plies essential for the production process to the marker length without any tension on the fabric. 4. MARKING It is an arrangement of different patterns of the fabric along with proper labeling in an effective manner. The on-paper arrangement is also called Mini-Marker. To make a layout for the cutter to allow • To place pattern pieces close together to avoid fabric waste • To accommodate the cutting order (ensuring that the correct quantities of each size
  58. 58. 5. CUTTING Assuming all components of fabric, design, and trims are acceptable and correctly planned and cut. a sharp blade is pressed against the fibers of the fabric to separate them. After cutting the cut pieces are thoroughly checked. 6. BUNDLING The cut pieces are labeled through stickers and the Progressive bundling is practiced where pieces corresponding to specific sections of the garment (such as sleeves or a collar) are bundled together and given to one operator. Other operators sew other parts of the garment, which are then assembled into the finished garment in the final phase. 7. LOGO EMBROIDERY On the patch pocket, the logo of the brand is to be embroidered next. The designs on the computer are converted into a format that the sewing machine understands. In professional language, you would call it digitizing. This is fed into the embroidery program on the computer of the sewing machine and embroidery has been done. 8. STITCHING Stitching or sewing is done after the cut pieces are bundled according to size, color and quantities determined by the sewing room. Garments are sewn in an assembly line, with the garment becoming complete as it progresses down the sewing line. Fusing machines for fusing collar components, button, and buttonhole, sewing machines for sewing button and buttonholes are specifically employed. Pressing has been done to give it a final finish.
  59. 59. 9. CHECKING Once the sewing is complete a quality control checking is done to see the sews and whether embroidery is in place, buttons, collars, and other things are stitched accordingly. 10. PACKING AND DISPATCH In the last steps of making a product retail-ready, garments are folded, tagged, sized, and packaged according to customer specifications. Also, T-shirts are placed in protective plastic bags, either manually or using an automated system, to ensure that the material stays clean and pressed during shipping. Lastly, garments are placed in cardboard boxes and sealed and shipped to client distribution centers to eventually be sold in retail stores.
  60. 60. Q U A N T I T A T I V E R E S E A R C H 55
  61. 61. Creativity/originality Expressiveness Part-1 Factor Analysis- This is a technique to identify the latent variable with the help of factor reduction. To identify the types of consumers of brands, we selected two variables that we depicted from our brand personality. These variables are taken from ipip.ori.org. These two variables are: We did a pilot analysis of a sample size of 40 people. We got some positive keyed and some negative keyed statements which became the factors for the Like rt scale and then the factor analysis is performed, where such factors whose correlation value is near to -1 and +1 are considered as strong and are depicted as the factors for that particular variable. Reliability Analysis- Then we did a reliability analysis that depicts, whether the scale is reliable to use or not. Whether the factors can be used as the factor for the particular variable. The value of Cronbach Alpha is the value that tells us the reliability of the scale. In India, for a scale to be called reliable, the value of Cronbach alpha should be at least 0.7. Factor 1- Creativity/Originality Factor 2- Expressiveness The value of Cronbach Alfa for the scale is .86, which shows that the scale is reliable and can be put into use further research.
  62. 62. The graph of the scree plot first goes down and then moves towards right making an L shape. X-axis depicts the factor number while Y-axis depicts the Eigenvalue of the factor. The minimum eigenvalue of the factor should be 1, in order to have a strong relationship with the variable. From the above graph, we can say that only 5 factors have a strong relationship with the variables Part-2 Another part of the research is based on the current situation which is affecting the whole world i.e, COVID-2019. This disease changed the overall structure of the market and so resulted in an overall change in consumer buying behavior and so in order to analyze this change, a questionnaire is made which will depict two attributes that consumers might show during and after this situation. These two attributes are: • Saving • Anti-consumption The questionnaire will include various factors that will support the required variables and then the factor analysis will be done which will give the factor loadings and reflects which variable has a great impact on the factor. A reliability analysis will also be performed for the scale, in order to see whether the scale is reliable or not. The scales taken for reflecting such attributes are as follows: Cautiousness: In this scale, cautiousness is depicting the situation where people are very particular in spending their money, in other words, this is the situation where people start saving money or may start practicing anti-consumption. For further research on this scale, a questionnaire was made which included both positive and negative keyed statements and was distributed. Data is taken from a sample of 40 persons and then the Reliability test is done.
  63. 63. The Cronbach Alpfa value of the first factor came out to be 0.7 which shows that the scale is reliable and can be used for factor analysis. Savings-Conscious: The second factor is reflecting the quality of people who adjusts their spending and make timely budgets and are very decisive about their expenditure.The reliability test is taken in order to see whether the scale is reliable or not. Again a sample of 40 people is taken and then analyzed. The Cronbach Alpha value of this scale came out to be 0.64 which is acceptable and can be used for factor analysis. The factor analysis for both the scales is taken out and then factor loadings are observed and the variables with factor loading value greater than 0.5 are considered as strong. The variables with a correlation value greater than 0.5 have a strong relationship with the factors. X-axis depicting the component number of the variable and Y-axis depicts the eigenvalue. The minimum eigenvalue of the variable should be 1, which means that such a variable can cause a great variance. In the above-shown graph, Factors with component number 1-6 can cause high variance and have a minimum eigenvalue of 1
  64. 64. Higher the correlation value, stronger will be the effect of change in the variable will be on the factor.
  65. 65. Part 3 In this section, we will take a certain demographic and psychographic variables related to our brand and then create a few hypotheses based on those variables. Below are the variables which we selected as related to our brand study: Gender Age Monthly Income Brand consciousness Well dressed Confidence Fitting Comfort Brands exploration Advertisements Highly advertised brands have a positive impact on female customers. (Gender<- >Advertisements) Age has a negative impact on brand consciousness. (Age<->Brand Consciousness) The dressing has a positive impact on the confidence of a person. (Well dressed<->Confidence) Age has a positive impact on the comfort factor of the garment. (Age<->Comfort) Income has a positive impact on brand exploration. (Income<->Brand Exploration) Hypothesis 5 hypotheses are created with the help of selected variables and then further studied by making a questionnaire. VARIABLES Questionnaire A questionnaire consisting of 13 questions based on hypotheses is created and further analyzed by collecting data of 250 people.
  66. 66. Sample size- 250 Skewness and Kurtosis These are used to measure the normality of data and further interprets if the distribution of data is normal or not. The value of skewness should lie close to 0 but if the value lies between +/- 2, it is accepted and data is called as normally distributed. Only data that is normally distributed can be worked upon and analyzed further. Here, skewness and kurtosis of the variables are calculated on which hypotheses are made.
  67. 67. Further, after finding the skewness and kurtosis which proves that the data is normally distributed, we move forward towards finding the correlation of the variables on which hypotheses are made. This will further show that if there is any relationship between the variables and if the relationship is strong the hypotheses will be proved right. Correlation For proving a relationship between the dependent and independent variable the correlation value should be at least +/-0.5. This ensures that a change in the independent variable will have a positive or negative impact on the dependent variable.
  68. 68. ● Highly advertised brands have a positive impact on female customers. The correlation value between the dependent (Gender) and independent (advertised brands and famous brands) is -0.94 which shows a strong correlation ● Age has a negative impact on brand consciousness. The correlation value between the dependent (brand particular and brand primary) and independent (age) variables is -.77 and -.76 which shows a negative strong correlation which depicts that with the increase in age, brand consciousness decreases. ● The dressing has a positive impact on the confidence of a person. The correlation value between the dependent(confidence) and the independent(well-dressed) variable is .80 which shows a strong positive correlation and proves the hypothesis that with the increase in the level of dressing, confidence level increases.
  69. 69. ● Age has a positive impact on the comfort factor of the garment. The correlation value between the dependent (comfort factor and fitting) and the independent(age) variable is .89 and .87 which shows a strong positive correlation and thus proves that with an increase in age the preference of comfort factor while purchasing a garment increases. Income has a positive impact on brand exploration. The correlation value between the dependent(new brands and bounce rate) and the independent(monthly income) variable is .82 and .88 which shows a strong positive correlation and thus depicts that majority of people with high income are more interested in trying new brands and can’t stick to one brand for long. Predictive Analytics It is a model where a judgment is made on a prediction based on past data to find out a future value. 1. How much important for an 18-year-old person is to be particular about the brand while purchasing? y=mx+c y=dependent variable= brand particular m= coffecient x=independent variable=age c=constant Regression analysis is performed. x=1 c= 5.68 m= -1.02 y=mx+C (-1.02)1+5.68 y= 4.66 X Y 1 4.66
  70. 70. The value of y depicts that the person who is 18 years years old will agree that being brand particular is an important factor for him/her while purchasing the brand. Residual= measurement of error =observed value-predicted value = 4-4.66 = -.66 This suggests that there is a difference in the degree of importance of brand as selected by the sample and the degree of importance should be more. 2. What is the chance that a person with a monthly income of INR 650000 will try our brand? y=mx+c x=4 m=.92 C=.17 y= (.92)4+.17 3.68+.17 y=3.85 4 X Y 3.85 After the correction of an error, there is a slight increase in the chances that the person of that particular income will select our brand. The value of Y depicts that there is a good chance that the person will select our product because that customer is fond of trying new brands.
  71. 71. Q U A L I T A T I V E R E S E A R C H 66
  72. 72. To understand the changes in Consumer behavior through qualitative research during or after any epidemic or other such situation that disrupts the economic growth nationally or globally, we’ve read several case studies and derived through the following conclusion: During the Global recession 2008, it was found that on average 18% of consumer-packaged-goods consumers bought the lower-priced brands (substitute brands) for almost two years. 46% claimed that the products actually worked much better than the high priced ones. The consumer had become price-conscious and preferred trying the unpopular brands as well.(Carlotti, Mihas 2009) During the SARS 2003 outbreak at the early stage, tension surged and due to all kinds of rumors spread except for reality, exaggerated the spread of Social panic among people, which reflected from panic buying of certain drugs and essentials. It turned out to be a public’s alarming situation that led to behavior that exacerbated the economic blows to the travel and tourism industries of the countries with the highest number of SARS cases. (W. Tong, 2013) Also, the poultry product sales had majorly declined due to the spread of the virus during SARS as well as the H7N9 Influenza outbreak. (J. Wu, 2018) MERS (Middle East Respiratory Syndrome) in 2015 was another outbreak that also raised international concerns, which led to over 100,000 canceled tourist visits to the nation. Also, Retail and Departmental sales showed a fall of 18.6% due to consumers switch to online shopping for necessities. (Ioppolo, 2016) Due to impacts of outbreaks like border closure, disruptions in business and even social events, significant changes in Human Behaviour can be witnessed which is driven by Fear. Anti- consumption of other luxury products showed a decline of 20-35% due to less footfall at malls. (Stewart, 2014) After World war 2 the consumers developed a “ Waste not, want not” attitude towards consumption and lifestyle sustainable consumption restricted to other basic necessities. (Soul, 2017)The following variables can be derived from the above research: I M P A C T D U R I N G P A S T P A N D E M I C / E P I D E M I C R E S E A R C H
  73. 73. I M P A C T D U R I N G P A S T P A N D E M I C / E P I D E M I C R E S E A R C H •Due to impacts of outbreaks like border closure, disruptions in business and even social events, significant changes in Human Behavior can be witnessed which is driven by Fear. Anti-consumption of other luxury products showed a decline of 20-35% due to less footfall at malls. (Stewart, 2014) • After World war 2 the consumers developed a “ Waste not, want not” attitude towards consumption and lifestyle sustainable consumption restricted to other basic necessities. (Soul, 2017) Miscommunication Sustainable Approach Anti-Consumption Savings Panic action The following variables can be derived from the above research: K A T H L E E N J O H N S O N Swimming Instructor
  74. 74. Fashion Change and Fashion Consumption: The chaotic perspective Ka Ming Law, Zhi Ming Zhang and Chung Sun Leun  2004 Grounded theory  Secondary Data Article (In depth interviews and focus groups) 33 A change in style or trend leads to change in consumption of that particular fashion and it varies from zones, generations and this change is strongly dependent on cultural behaviour of people. Change in any element of fashion launching a new trend should be highly dependent on the country of acceptance rather than country of origin, keeping in mind local cultural values. Title of the study Author Date Research method Data collection Sample size Major outcomes Application of outcomes Title of the study Author Date Research method Major outcomes Application of outcomes A Case Study Analysis of Clothing Shopping Mall for Customer Design Participation Service and Development of Customer Editing User Interface Ying Yuan1 and Jun-Ho Huh 2018 Case Study Digital textile printing or customer involvement in designing through a software proved to be highly effcient for t-shirt making companies where prints and colors are used widely and customer also feels a sense of freedom . Brand can make efficient use of DTP with a consumer friendly software where by at initial stage, only regualr customers should be given acces to such software for showing their creativity and then further moving on to next customer. This motivates the customer to be loyal to the brand and purchase mostly from that brand only as only a customer can fill a loophole which sometimes a designer cannot. QUALITATIVE RESEARCH ANALYSIS
  75. 75. Title of the study Author Date Research method Data collection Sample size Major outcomes Application of outcomes Title of the study Author Date Research method Data collection Sample size Major outcomes Application of outcomes Consumed by Consumption: A Phenomenological Exploration of the Compulsive Clothing Buying Experience MARTINEZ-NOVOA, LORRAINE M 2016 Phenomenology Secondary Data Aticle 06 Compulsive buying should not be considered as a disease, but it is an interplay of psychological and socio-cultural factors, where a person tries to get rid of negativity of his life Such people should be targeted more as they can be a major source for increase in sales, butalong with this they should be targerted with a source of positivity which the brand is providing through its apparels, and in this way the person will become a loyal customer. Exceptional E-services are key to growth of Brands JIA WERTZ 2011 Content analysis Facebook comments, articles 50 Negative reviews, bad online experience, poor customer service, late shipments Improve online website and e-commerce service, customer after sales services,Key to growth Title of the study Author Date Research method Data collection Sample size Major outcomes Application of outcomes Will ‘Green’ be the ‘New Black’? : investigating how sustainability impacts perceptions of brand and product value in the luxury sector Molly Minton 2018 Ethnography Secondary Data Aticle 173 Luxury customer is perceiving a highly sustainable value from the brands The brand has to rediscover the essence and bring sustainability right from practices, product,packaging and more
  76. 76. H U M A N R E S O U R C E SCOTCH & SODA 71
  77. 77. Administration- This is the most important department of Human Resource which takes care of- Attending the guests who arrive at the company for meetings or Arrangement of travel facilities if the employee has to go out of Opening salary accounts of new employees if they don’t have any Human resources is altogether a different department operated by different people and guided by an HR Head. The different parts of the HR Department are: deals. station for official work with budget allocation. such bank account. Organizing insurance camps in order to keep their employees insured and getting all the employees an insurance who are not insured. Maintaining the housekeeping and over jobs in the organization· Handling personal issues such as disputes or any complaints for and from the employees and taking required action for the problem. If any event is going to take place in the organization, then the HR Department is the one who is having the authority to allocate the funds for that event. • Recruitment and Selection- This department takes care of all the recruitment and selection process of new employees to be hired for the organization. There are certain internal methods of recruitment within the organization which includes- • Promotion and transfers • Job posting • Employee referrals • Job posting External methods include; • Campus recruitment • Advertisements • Walk-in interviews • E-recruitment Go to website Apply online Opportunities in retail Login Candidate profile Personal data Communication data Education data Family details Data completeness There is a proper procedure for E-recruitment, which is mentioned by the HR department of the organization which includes;
  78. 78. Selection Process This is the process that includes shortlisting of CVs which results in the telephonic interview, and then the performance aptitude test and then the final predictive index. The final interview which takes place before actual hiring can be taken in many ways: • Non- directive interview • Patterned Interview • Structural interview • Panel Interview • Stress Interview • Appraisal Interview After the interview is complete, a process called collective bargaining takes place between the employer and the employee where there’s a negotiation from both ends and then the final salary is decided for that job. After this, the employee has to complete a medical checkup to get the knowledge about the health issues and past medical history of the employee. It also assures the fitness of the employee for that particular job. Training as per requirement is given to the employee before giving the actual work. The final hiring lies in the hands of Line Manager after keeping in mind all the previous steps performed on the employees. This may include- • Replacement Hiring • Normal Hiring Development There’s also a development program for the employees which is directly linked to the motivation of employees and rewarding them as per their work or achievements. Different awards given to them include- • Star of the month award • Best cashier award (cash speed) • Best commercial associate award • Best store manager of the quarter • Best store of the quarter •Offer Generation- Offer letter is printed and if the employee accepts the offer he is recruited. • Joining Formalities- This is the process in which the applicant's whole certificates , relieving letter, appointment letter, joining letter, photos, etc. are checked by the people concerning the HR operation. • Induction-It is a welcome process. It is a process of receiving and welcoming an employee when he first joins a company and giving him the basic information. HR Operations- Once the interview and the medical examination of the candidate is over, the HRD will engage in checking to reference. The candidate has to give off at least 2-3 references in the application forms.
  79. 79. • Employee Self-service (ESS) R-connect: Through the help of R-connect Employees can log-in by their ID and using Employee Self-service (ESS), they can update their personal details like name, educational qualifications, mobile number, date of joining, work experience, present and permanent address, family details, marital status, Goals, and objectives(G&O), attendance, leaves, identification mark, etc. With the help of R-connect, employees can check their Performance appraisal report, attendance, number of working & worked days, leaves status; the employee can also claim their bills for reimbursement like medical bill for medical reimbursement, tuition fee receipts for Child education allowance; etc. • Attendance- The RELIANCE card also helps the management to calculate the attendance of the employees. Employees when scratches the card at the office entrance then automatically it gets register in the system with the timing of entrance • Working Hours- The working hours of the store are divided into two parts: 10 am- 7 pm & 12 pm-9 pm. If the employee gets in the store after 9:30 it will be calculated as half day. • Payroll: CTC (cost to company) includes 40% as basic/base pay and 60% as choice pay. The choice of payment is basically meant for facilitating Income-tax relaxation to employees. The base pay includes Provident fund (PF) which is 12% of basic pay and Gratuity which is 4.91% of basic pay. Leaves- Types of Leaves: • Company declared holidays- total leave day is 10. • Optional holidays- total leave day is 3. • Sick leave- total leave day is 10. • Casual leave- total leave day is 5. • Privilege leave- total leave day is 30. • Maternity leave- Married female employees of the company are entitled to this leave not exceeding 12 weeks. Leaves can be granted in conjunction with other leaves but the total period of absence should not exceed 17 weeks. •Performance management system: It is the process of obtaining, analyzing and recording information about the relative worth of an employee. The focus of the performance appraisal is measuring and improving the actual performance of the employee and also the future potential of the employee. Its aim is to measure what an employee does. It is a powerful tool to calibrate, refine and reward the performance of the employee. It helps to analyze his achievements and evaluate his contribution to the achievements of the overall organizational goals. • Virtual Dashboard- A personal dashboard is provided to each and every employee which can be accessed from the company's portal. This dashboard will consist of the overall Information of the employee, employee's score, progress, salary and perks related issues, leaves and all other options through will the employee can communicate with the organization and vice versa.
  80. 80. • Mystery Shopper- It is an anonymous way of judging and analyzing the natural working behavior of the employee in the store hours. A person is sent from the company as a mystery shopper, who will pretend to be a customer and will judge the overall behavior of the customer which includes way of greeting, understanding the needs of the customer, offering beverages, and the effort he or she is making in increasing the purchasing decisions of the customer. • Loan-The Company also provides some loans to the employees with good performance scores with low interest and with less documentation for a certain period of time. This may include personal loans, car loans, etc. According to the factors, the mystery shopper will make a report in which the employee is marked upon these traits and if he/she is not capable of scoring the minimum criteria, he/she will be fired from the job. And if scored well, a certificate will be awarded to the employee. COVID- 19 WHAT IS RELIANCE DOING FOR ITS EMPLOYEES DURING THIS PANDEMIC CRISIS? India's largest firm Reliance Industries has initiated work-from-home for its staff while keeping open consumer-facing businesses of hospitals, retail stores and telecom with a minimum workforce amid an increasing number of COVID-19 cases in the country. (The Economic Times, 2020) For the essential services, RIL would deploy about 10 percent of its staff on a rotation basis. (Business Insider, 2020) The spokesperson said adding the company will also reimburse app taxi fare for such staff for work- related commute during this period so as to reduce pressure on public transport. Reliance to pay twice to those employees who earn below ₹30,000. This step has been taken to protect their cash flow and mitigate any overwhelming burden. Especially, women, is every unit have been offered Work from home. (Livemint, 2020) To allow seamless work in these times, Reliance JioFiber has now come up with a new broadband plan that provides 10 Mbps broadband free for households. As per Reliance Jio, the initiative falls under their #JioTogether campaign. ( FirstPost, 2020) They’ve set up “Employee Xperience Platform” EmpEP to address general queries of the employees. (Business Today, 2020) Also, Medical helpline set up for employees and families for medical emergencies. Medical teams set up at all campuses-including reliance corporate park in Navi Mumbai.
  81. 81. Scotch and Soda is under a franchise business model owned and operated by Reliance brands ltd. It follows the following hierarchy for the retail business in New Delhi HR ORGANIZATIONAL STRUCTURE (SCOTCH AND SODA, NEW DELHI)
  82. 82. EMPLOYEE JOB SATISFACTION SURVEY QUESTIONNAIRE (Scotch & Soda) 1-Strongly Disagree 2-Disagree 3-Neutral 4-Agree 5-Strongly Agree 1 Do you think the management of the organization is supportive of you? 2 Are you satisfied with the compensation of your job? 3 Are you comfortable with the work culture and shift hours at the store? 4 Have you been able to learn new skills from this job? 5 Are you encouraged to offer suggestions and improvements? 6 Do you think the organization provides you with good essential facilities and perks? 7 Is your work effectively-recognized and also rewarded? 8 Are you able to keep up the work-life balance working here? 9 Can you easily communicate with members of all levels of management? 10 Do the rules and procedures make your work difficult at the organization? 11 Are you also satisfied with your chances of promotion at the store? 12 Lastly, are you satisfied with the health facilities and policies of the organization here?
  84. 84. RAW MATERIALS OF FASHION TESTING LAB VISIT REPORT Tuv Rheinland ( Gurugram) ( March 30. 2020) Kirti Karvi/ Arpit Arora (Pgfbmm) INTRODUCTION TÜV Rheinland is a global leader in independent inspection services, founded 145 years ago. The history of the TÜV Rheinland Group is the story of its growth from a regional testing organisation into an international provider of technical services. Today, the corporate group is active worldwide. The independent experts stand for quality and safety for people, technology and the environment in nearly all aspects of life. TÜV Rheinland inspects technical equipment, products and services, oversees projects, and helps to shape processes and information security for companies. Its experts train people in a wide range of careers and industries. To this end, TÜV Rheinland employs a global network of approved labs, testing and education centers. Since 2006, TÜV Rheinland has been a member of the United Nations Global Compact to promote sustainability and combat corruption.he TÜV Rheinland Group recognizes its responsibilities towards corporate social responsibility, society and the environment. To explain this understanding in greater detail, the Executive Board has adopted a binding company policy on values and responsibility The “Values and Responsibility” company policy serves to ensure neutrality, thoroughness, objectivity and high quality of the Group’s assessment services worldwide.
  85. 85. 3 COUNT CONSTRUCTION TEST: Automatic Wrap Reel machines are used to find the count, higher the count coarser is the fabric, lesser the count, lighter is the fabric. It also states durability of the fabric. FABRIC SHRINKAGE TEST Shrinkage measuring template, scale and marker made of glass is used for this test.Shrinkage is the process in which a fabric becomes smaller than its original size, usually through the process of laundry. Cotton fabric suffers from two main disadvantages of shrinking and creasing during subsequent washing It happens both lengthwise and widthwise. Accepted percentage for WOVEN is 3-5% and KNITS is 5-7% allowed. FABRIC STRENGTH TEST It is performed to analyze the strength of the fabric. TEAR TEST Tear strength is the strength required to start or continue the tear in a fabric under specific condition & tearing force is the required to continue a tear previously started in a fabric thrice. It is usually used for woven fabric because knits stretch. It is measured in pounds. TENSILE STRENGTH TEST: This is referred to as a strength strip test where the load is applied along the direction of the test sample. Five fabric samples are extended in a direction parallel to the warp and five parallel to the weft.Both tests are measured in pounds . The Grab Test is measured in pounds. Rubber balloon like structure is inflated for testing below the fabric until it bursts and tears.(Wovens only)
  86. 86. 4 SEAM STRENGTH TEST Seam Slippage Test is used to determine either the sewn seam strength of textiles or the efficiency of a seam assembly with any given fabric and measurements are noted. It is measured in lbs. It depends upon what goes with the buyer. PILLING RESISTANCE TEST Pilling is the small ball like lints that appear on the fabric. MAXI-MARTINDALE test is performed where fabric is rubbed against each other 2000 times.5 is good 1poor. Pilling and Snagging Test is done where fabric is attached on a roll and put in a rotating box @60rotation per minute and checked whether lints appear on the fabric. COLOR FASTNESS TO WASHING Test to evaluate the color fastness properties like a color loss, bleeding and surface changes of textiles that intended to be laundered frequently. It can show signs of Straining and Change in shade. It is rated after washing. Acceptable rate is 4-5. COLOR FASTNESS TO LIGHT Xenon Test Chamber is a test to evaluate the color fastness property of textiles when subject to light exposure. Color Resistance is checked by exposing fabric to light for 30-40 hours and see if it fades and it is rated. Again, 4-5 shows no fading or straining. PH VALUE:
  87. 87. 5 Test to indicate the efficiency of washing operation after various wet treatments either bleaching or scouring.It is done using extraction from the ph from the fabric and test it fibre test to identify the characteristics of the fibre using distilled water.(5.5-7ph accepted) COLOR FASTNESS TO RUBBING This is done on both wet and dry fabrics using a Crockmaster Equipment. Crockmeter instrument used to determine colour fastness to wet and dry rubbing. It is available in motorised and hand-operated models. ZIPPER ENDURANCE TEST Zipper Tester, to determine the resistance to reciprocation of zipper (slide fastener), the test specimen is subjected to a specified number of cyclic operations about 500 cycles. It is performed to check the durability and strength of the zippers and also to check the friction as well. BURSTING STRENGTH TEST The force applied in this method is radial, unlike in breaking and tearing strength, which are one directional. Knits, Laces and Non- woven fabric are usually tested in this manner as their yarns are not unidirectional. Air pressure test by inflating the fabric twice is one method and Mullen Bursting (Glycerine pressure) which is Hydrolic is the second method. The thicker the yarn in the fabric, the greater the breaking point and hence, stronger the bursting strength.
  88. 88. 6 FOOTWEAR- LEATHER TEST SHOE FLEXING TEST The whole shoe flexing tester is used to test finished shoes, like sports shoes, casual shoes, work shoes etc. And determine its flexibility resistance or indicating the cracks of shoe or shoe sole through reciprocating flexing movements under the specified angle and frequency. COLOR FASTNESS-RUBBING TEST This test ensures that any coloring used in the manufacturing of your shoe will not leak or bleed onto the wearer, their clothes, or their surroundings. After a walk in the rain, no-one wants to take off their shoes to find their white socks have turned pink. This test will ensure that the color of your shoes stays on your shoes only. BALLY FLEXING (FLEXOMETER) IT is to determine leather flex resistance by flexing leather in a certain angle and speed in wet or dry condition. The flexometer is suitable to test all kinds of leather whose thickness is below 3 mm.The clamp is different as required by different test standards and purposes As a leather testing machine, bally flexometer is commonly used to check the properties of leather and footwear /shoe upper materials.
  89. 89. 7 BOND TESTING (SOLE) Shoes are constructed of many different parts that are all bonded or glued together. Before shipping your footwear, you must ensure that it is able to withstand consistent and adequate levels of stress without breaking. The machine used for the purpose is called DIN ABRASION helps testing the sole bond. LATERAL IMPACT TESTING (HEELS) The result provides an assessment of the liability to failure under the occasional heavy blows received during wear. It is particularly useful for injection-moulded plastic heels which incorporate a steel dowel reinforcement, giving information on the suitability of the dowel's hardness or softness BELT FLEX TESTING Out-soles of footwear or other flexing components may suffer cracking due to flexing in use. Cracks usually develop at points of high surface strain resulting from the design of the sole pattern, without there are being any cuts due to grit etc. to initiate them. The belt flex tester is designed to flex complete soles with their patterns intact in a way similar to flexing in actual use. BENNEWART FLEX TESTING Bennewart flex testing is intended to determine the resistance of a component of material to cut growth during repeated flexing. It can also be used to assess the effect of surface patterns on crack initiation and growth. This test is especially applicable to the out soles of footwear, but may also be used with certain other flexible components. TOY-TESTING SHARP EDGES SAFETY CHECK
  90. 90. 8 The UL Sharp Edge Tester is used for determining the sharpness of edges of electrical equipment and other consumer products. It is made of tough metal (not plastic). All moving mechanisms are protected against dirt and breakage. used to determine if accessibility exists sharp edge safety hazards to the user by the touch part of the products, it belongs to Toys safety test equipment. DURABILITY TEST Mouth-actuated Toy Durability Tester, to prevent mouth moving toys or children’s mouthpiece has been mistakenly inhaled and cause a choking hazard.Equipped with imported high-precision pressure gauge. The pressure guage use digital display to avoid damage if use pointer display. FLAMMABILITY TEST Used to determine flammability resistance of finery or toy and children clothing. The toy flammability tester is mainly for evaluating the burning speed and time of the following kinds of toys or children stuff. Toys to be worn on the head, such as beards, wig and mask, toy tents, stuffed toys like teddy bears etc. BUTTON SNAP PULL TESTER Used to determine the holding or breaking strength of prong-ring attached snap fasteners on toys( eg. teddy bear eyes), also as a button pull tester applies for compression and tensile testing of small samples. It will help you a lot when you do push and pull tests.
  91. 91. 2 ANALYSIS REPORT At the lab, we had witnessed a no. of tests that are done on different objects and I was amazed to realize how important testing can be for the general and complex safety purpose. The testings are required with basic day to day things and materials like shoes, clothes, fabric, toys, chemicals, food, toys and whatnot. TuV is one platform doing this at a global level altogether. The companies, buyer or dealer has to fill a TEST REQUEST FORM to apply for the tests. Along with the product that has to be tested a detailed requirements or measurements have to be provided as well that is the base for the report. The employees working are exposed to various harmful substances as well but the labs are fully secured with structure and full protective equipment have been provided to them for their safety. There are separate labs with fully equipped machines required for the tests to be done. FABRIC TESTING FABRIC IDENTIFICATION TEST: ● Microscopic Identification: Positive identification of many natural fibers is possible using the microscope ● Solubility: The chemical structure of polymers in a fiber determines the fiber’s basic solubility characteristics using distilled water. ● Flammability Test: The reaction of fibers to heat from an open flame is a useful guide in the identification of fibers. 45° angle flame test is performed and see how much time does it take for the flame to reach from 1cm to 15cm called Flame Spread Time) ● Dissolution test: 5gms of fibre in 70% sulphuric acid and see how much fibre dissolves
  92. 92. C O M M U N I C A T I O N Design 87
  94. 94. facebook ad post facebook cover
  96. 96. NEW COLLECTION LAUNCH Scotch & Soda
  97. 97. Advertising Video ONLINE SCOTCH & SODA SCOTCH & SODA Type of Video: Clothes transition Video Merchandise : Women Skirts Idea/Concept: A video showing the collection from new launch of the brand called " The Skirt Story".. The main focus is on the different kind of skirts in one collection. Tagline: THE SKIRT STORY Link to the video:
  98. 98. D I G I T A L M A R K E T I N G 93
  99. 99. B U S I N E S S W E B S I T E Kirti Karvee
  100. 100. G O O G L E A D W O R D S G O O G L E A D W O R D S
  101. 101. F A C E B O O K P A G E / A D D I G I T A L S T R A T E G Y
  102. 102. B U S I N E S S W E B S I T E Arpit Arora
  103. 103. G O O G L E A D W O R D S G O O G L E A D W O R D S
  104. 104. F A C E B O O K P A G E / A D D I G I T A L S T R A T E G Y
  105. 105. A N N E X U R E
  106. 106. MARKETING
  107. 107. MARKETING
  108. 108. Crabbe, M., 2020. COVID-19’S Effect On Consumer Behavior In Asia-Pacific. [online] Mintel. Available at: <https://www.mintel.com/blog/consumer-market-news/research-your-way-out-of-a-crisis-covid-19s-effect-on-consumer-behaviour> [Accessed 13 May 2020]. Kohan, S., 2020. Apparel And Accessories Suffer A Catastrophic 52% Sales Decline In March. [online] Forbes. Available at: <https://www.forbes.com/sites/shelleykohan/2020/04/16/apparel-and-accessories-suffer-a-catastrophic-52-percent-decline-in- march-sales/#7e56152d1b5b> [Accessed 13 May 2020]. DeAcetis, J., 2020. Scotch & Soda Celebrates The Distinguished Gent. [online] Forbes. Available at: <https://www.forbes.com/sites/josephdeacetis/2018/05/08/scotch-soda-celebrates-the-distinguished-gent/#295aa43a55b6> [Accessed 13 May 2020]. Jain, S., 2020. Going Digital: The Only Option For Indian Luxury Market - Re-Tales By Dr. Sheetal Jain | ET Retail. [online] ETRetail.com. Available at: <https://retail.economictimes.indiatimes.com/re-tales/going-digital-the-only-option-for-indian-luxury- market/4211> [Accessed 13 May 2020]. Jain, S., 2020. COVID-19 Outbreak: Implications For Luxury Industry In 2020 And Beyond. [online] Businesstoday.in. Available at: <https://www.businesstoday.in/opinion/columns/coronavirus-in-india-covid-19-outbreak-implications-for-luxury-industry-in-2020- business/story/399002.html> [Accessed 13 May 2020]. Chatterjee, P., 2017. We Want To Bring Amsterdam's Eclectic Fashion To India: Scotch & Soda CEO | Forbes India. [online] Forbes India. Available at: <https://www.forbesindia.com/article/leaderboard/we-want-to-bring-amsterdams-eclectic-fashion-to- india-scotch-soda-ceo/46697/1> [Accessed 13 May 2020].Sharma, S., 2016. Dutch Apparel Brand Scotch & Soda Drops Myntra For Reliance. [online] The Economic Times. Available at: <https://economictimes.indiatimes.com/industry/services/retail/dutch-apparel-brand-scotch-soda-drops-myntra-for- reliance/articleshow/53740484.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst> [Accessed 13 May 2020]. Adnan, A., Ahmad, A. and Khan, M., 2017. Examining The Role Of Consumer Lifestyles On Ecological Behavior Among Young Indian Consumers | Emerald Insight. [online] Emerald.com. Available at: <https://www.emerald.com/insight/content/doi/10.1108/YC- 05-2017-00699/full/html> [Accessed 13 May 2020]. Reemclothing.com. 2017. Brand Focus: Scotch & Soda - (112) - Reem Clothing Blog. [online] Available at: <https://www.reemclothing.com/blog/latest-trends/brand-focus/brand-focus-scotch-soda-112.html/> [Accessed 13 May 2020]. Saha, P., 2017. Scotch & Soda’S Fashion Is Individualistic, Eclectic, Says CEO Dirk-Jan Stoppelenburg. [online] Livemint. Available at: <https://www.livemint.com/Companies/6o4DfHI2hl2od4Ifwa2N2L/Scotch--Sodas-fashion-is-individualistic-eclectic- says-C.html> [Accessed 13 May 2020]. Evlox. 2017. Scotch And Soda By Evlox. [online] Available at: <https://www.evlox.com/denim-for-brands/scotch-and-soda/> [Accessed 13 May 2020].Achille, A. and Zipser, D., 2020. A Perspective For The Luxury-Goods Industry During--And After-- Coronavirus. [online] McKinsey & Company. Available at: <https://www.mckinsey.com/industries/retail/our-insights/a-perspective- for-the-luxury-goods-industry-during-and-after-coronavirus> [Accessed 13 May 2020].S harma, S., 2016. Dutch Apparel Brand Scotch & Soda Drops Myntra For Reliance - Times Of India. [online] The Times of India. Available at: <https://timesofindia.indiatimes.com/companies/Dutch-apparel-brand-Scotch-Soda-drops-Myntra-for- Reliance/articleshow/53725534.cms> [Accessed 13 May 2020].N ovoa, M. and M, L., 2016. Consumed By Consumption: A Phenomenological Exploration Of The Compulsive Clothing Buying Experience. [online] Search.proquest.com. Available at: <https://search.proquest.com/docview/1858780814/E8A61A0886784240PQ/1?accountid=29895> [Accessed 13 May 2020]. Refrencing
  109. 109. T H A N K Y O U S C O T C H & S O D A