Assignment for Marketing Management – I
(MKTMG1G23-1) - Prof. Basant Kumar Purohit
By Group -9
Abhishek Sinha G23003
Ashish Samuel G23009
Harsh Vardhan G23018
Md. Shadab Alam G23025
Mukesh Kunal G23028
Reshma Soman G23040
Contents
Objectives and..........................................................................................................................................................3
Value Creation model for Clubb International.........................................................................................................3
Problem Statement identification.............................................................................................................................3
Strategic Context Analysis.......................................................................................................................................4
Marketing Strategy Development Activities............................................................................................................5
Strategic Market Analysis (SWOT).....................................................................................................................5
Strategic Marketing Goals...................................................................................................................................5
Strategic Marketing Action..................................................................................................................................6
Competitive Positioning...........................................................................................................................................7
References................................................................................................................................................................8
Objectives
1.The objective of this case is to assess whether Clubb international is in a position to be more aggressive in its
marketing and communication strategy to become the market leader in the mid segment and if Arup’s vision is
feasible and sustainable.
2.The gap between Demand and supply for premium goods in the mid-price segment(Rs.2000-4000) necessitated
the offering.
To bridge this gap, clubb offered a wide range of premium quality well designed products, including ladies bags,
bags and luggage, business bags, backpacks, corporate gifts, wallets and belts, raincoats, and jackets in the target
price Range.
In the same segment, Clubb’s customers have alternatives like American Tourister and Wildcraft which provide
travel accessories in mid-range category, and in almost same price range.
Value Creation model for Clubb International
Lowering fixed costs like rent,
collaboration
Non sentimental about product lineup
Offering the latest designs at affordable prices Single Ownership Model
Good Quality well differentiated product line Exploiting new markets
up Employee engagement by involving them in
the design process
Collaboration
Brand loyalty
Creating an online market
Retail spaces, dealerships, Clubbcart,
Focusing on the mid segment market ecommerce aggregators
Focusing on alternative and innovative Innovation
products
Customer satisfaction by increasing
engagement
Problem Statement identification
Can Clubb successfully establish itself as a leading player in the domestic mid-range market and expand globally
while maintaining profitability and meeting customer demands?
Sub-questions related to this problem statement could include:
What strategies can Clubb implement to increase its market share in the domestic market?
Where can Clubb effectively penetrate new domestic and international markets?
What measures should be taken to ensure the manufacturing of goods without compromising quality
and margin?
How to overcome the deadlock of advertising and to tell the right story through right media to build a
strong brand exclusivity?
What steps can Clubb take to differentiate itself from cheap south Asian competitors like Vietnam and
Cambodia.
Strategic Context Analysis
Competitve Landscape
Threat of Entry – Medium
Easy to enter as raw materials and expertise are easily
available but few dominant players have established
brand recognition and have significant economies of
scale
Threat of Substitutes –Low
No practical alternative for luggage
Bargaining Power Buyers – High
Resources and Capabilities
Numerous brands which have offerings in the same
segment and buyers have the luxury of choice
Bargaining Power Suppliers - Low
Supplier market is quite well segmented. There are
multiple suppliers for every raw material
Competitors – High
Multiple competitors such as Safari, VIP and Samsonite.
indigenous brands like Wildcraft and Nappa Dori. Cheap
Chinese manufacturers and local tanneries
The Strategic
Context
Target Customers
The External Environment Individual Customers
Global CAGR – 5% Consumers from across the countery from the middle class
Indian CAGR – 20%, Indian Market predicted to be Rs. and upper middle class sections of the society
30-40 Billion They prefer clubb becasue of its premium designs and
Rsising disposable income, increase in working women affordable prices
and more travel friendly populace including increased Well segmented product line
demand from Tier 2 and 3 cities
Another group of customers are the students and young
Wide range of raw materials ranging from leather, adults. They prefer club for its stylish desgins and constat
plastic, nylon, polyester, textiles, and corduroy, to jute innovations
Proliferation of e-commerce aggregators increasing the Business Costumers
bottom line of manafacturers
Clubb has colloborations with various businesses that
Government policies treated leather as a priority sector praise Clubb for its product quality and put it on par with
and a primary source of foreign exchange the interanational markets
Marketing Strategy Development Activities
The Marketing strategy development activities can be divided into 3 sections, Strategic Marketing Analysis,
Strategic Marketing Goals and Strategic Market Action.
We have already performed the PESTLE and Porters Five Forces Analysis as a part of our context analysis.
Using the models, we can develop a SWOT Analysis to further analyse CLUBB Internationals strategic
position.
Strategic Market Analysis (SWOT)
Strengths Weakness
● Loyal Customer Base ● Tarun is risk averse
● Brand recognition for quality products ● Only recognized locally in West
● A wide product base with over 200 different Bengal
products ● Negligible market presence outside of
● Constant innovation like jute products “home region”
● Excellent and renowned customer service ● Constant sales revenues in a market
● Complete ownership of the factories and that is expanding
showrooms ● Inability to exploit new opportunities
● Shift of consumer base to younger college goers due to mentality of the founder and his
● International Customers inability in giving up control
● Strong Grip on the market in West Bengal ● No advertising or expenditure in the
media ecosystem
Opportunities Threats
● Sector was predicted to grow at a compound ● Entry of globally recognised brands in
annual growth rate of 5% globally and at an the Indian market after economic
unprecedented rate of 20% by 2017-18 in India liberalisation
● Indian market was set to see a promising 24 ● An oligolpoly market situation with
million outbound tourists by 2021 few brands like Safari and VIP
● Growing demand from Tier 2 and Tier 3 cities enjoying almost 100% market share.
in India ● Chinese products entering the Indian
● Rise in disposable income with increasing market with their lower ranged
number of women joining the workforce offerings
● A more outgoing and travel-friendly populace ● Ban on cattle slaughter causing an
with a high degree of fashion involvement and acute shortage of domestic leather
branded demand ● Environmentalist concerns over goods
● Rising interest in leather alternatives such as and pollution caused by toxic wastes
jute and vegan leather creates new market from leather processing.
opportunities
● Proliferation of Ecommerce platforms reduces
dependency on the traditional manufacture-
dealer model and enables manufactures to reach
a large customer base directly
● Government policies supporting the leather
goods industry
Strategic Marketing Goals
Currently Clubb market strategies has been in Hold stage under the leadership of Tarun Mullick but with Arup
Mullick joining the family business brings in a new vision and energy to the existing set up which is well
established from dealership to ownership of stores etc. Also the new director made Clubb enter online space and
currently this space is generating 25% of the total revenue. With this limited success Arup wants to convince the
top boss to change the marketing strategy to Growth so as to consolidate their position in the market leader rank
in the mid segment category and by offering some new products in the luxury segment so as to gain margins.
For a firm like Clubb which has been centred in West Bengal need to expand to other states and for that they
need to set up new manufacturing units so that supply can be done accordingly. Previously they had markets in
Western India which was broken afterwards and with addition of online space their old customers have once
again joined in signifying that their products offering have an appeal. The loyal customers of clubb are middle to
upper middle-class people in urban metros who are unable to afford luxury items from brands like Samsonite.
So as per the product offering it can be seen that Clubb can compete with products of premium brands like
Samsonite , American Tourister who caters to middle class customers worldwide and upper middle class in
India so with change in marketing strategy to Growth Intensive Growth to be specific Clubb can grow in
markets dominated by these MNC and gaining market share from these by offering decent products at a decent
price range.
Clubb can also follow diversification growth strategy parallelly with growth as they have added college and
young population consumer base who require college bags , back packs for travel and as most recently it can be
seen that this population segment is the biggest contributor to the revenue base for Clubb. The Ansoff’s matrix
Clubb is as follows:
Market Present Products New Products
Present Markets: Bengal Luggage and Business Bags Backpacks for college goers
New Markets: Outside Travel bags: Trolley bags, Backpacks made from Jute
Bengal (Urban Metros) briefcases, Ladies bags (Jute)
and International
Clubb can offer products made from Jute in markets outside West Bengal as Jute is grown mostly in West
Bengal so it can be one of the new product offering to the new market as customers in different states and
regions have varying tastes.
Strategic Marketing Action
● Competitive Advantage
○ Keep costs low by some innovative thinking like
■ Products straight to the retailer bypassing the distributor and dealer
■ Saved the cost of hiring a full-time designer by involving all the employees in the
design process
■ Setting up office space in the factory
■ Embracing the e-seller model
○ diversified products made of innovative materials such as nylon, polyester, jute and leather
without compromising on the quality
○ Collaboration with agencies like Kolkata Police and RAPF
○ Constant innovation and Product development
○ Excellent Customer service
Competitive Positioning
Positioning Statement: Among Travel Enthusiasts, Clubb International is a brand of mid-range Premium
Luggage and accessories that delivers latest quality product as we provide 100 percent guarantee on our
products.
Competing in selected markets require to develop strategy as to what position one needs to take so Clubb when
it is expanding and is in Growth phase needs different positioning in different regions which are as follows:
i) West Bengal: It is currently a market follower in mid segment category so here they need to aggressively grow
by capturing market share of market challengers like Wildcraft and also Samsonite, Tourister like customers
who are unable to afford their products due to high pricing by offering a similar product at competitive price as
Samsonite, Tourister target upper middle-class segment of consumer which makes existing Clubb products
ideal for competition. They also need to increase their communication channel by spending on advertisement
rather than the existing mouth to mouth advertisement of their products and brand.
ii) Outside West Bengal: It has major presence in West Bengal so in order to grow in markets outside the state
they need to enter the market as follower as they already have online customers who buy products through their
portal and also through other online platforms and slowly become a market challenger by offering products from
jute, backpacks for young generation, luggage bags. They should also increase their communication channel
like: publicity in shopping malls, city centres where branded products have retail outlet extensively here as their
brand name is not visible in stores or known to customers outside their online network. As they are targeting the
upper middle class of urban areas along with Tier -II and Tier-III cities having aspirations for travel and
increased disposable income makes it an ideal fit for expansion for their existing products for all age groups.
References
Understanding-Value-Creation_0.pdf (ifac.org)
