CHAPTER 1: Introduction

1.1 History
Forever 21 founders Do Don Won Chang and his wife Jin Sook Chang emigrated
from South Korea to the United States in 1981. As a new immigrant Chang had to
do two jobs to feed his family. He worked as a janitor and served coffee at a gas
station. The luxurious car of those in the retail industry influenced Don to enter the
garment industry and so Fashion 21, later renamed Forever 21, was established.
Chang named himself CEO of the new company while his beautician spouse
ultimately took over merchandising. Their goal was to bring new fashions to the
working masses at low costs.
Forever 21 is an American chain of fashion retailers with its headquarters in
California. Forever 21 began as a 900 square foot store in 1984, and have grown to
sell their clothing lines Forever 21, XXI Forever, Love 21, and Heritage.
By 2009 Changs two daughters Linda and Esther joined the family business in
the marketing department. In 2014, the Changs family worth was Five billion
dollars. They are now ranked number 86 in the List of Richest People in America
and number 93 on the Forbes 400 list.

1.2 Forever 21 Brand Architecture

The Forever 21 brand is divided into eight sub-brands all broken up by style but
housed in the same oversized Forever 21 store ranging from 5,000 sq. ft. as the
smallest to 120,000 sq. ft. as the largest.

XXI Forever: The large flagship that typically houses all of the smaller labels
under the Forever 21 umbrella.

Forever21 Girls: A transformation of the original XXI Forever brand to be

more suited towards a younger pre-teen audience. This line focuses on
popular designs specific to the emerging pre-teen market and sizes.

Love21 Contemporary: A contemporary line for women offered at the same

price point as the rest of the Forever 21 brands. This line is aimed at the over
21 aged buyers allowing them to continue staying up-to-date on the latest
trends while remaining age appropriate.

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Forever 21+: A contemporary line for women designed specifically for plus
sized customers. This line allows more curvaceous women to wear the same
clothes as the rest of Forever 21 shoppers at the same price point.

21Men: Formerly known as Heritage 1981 Mens, the Forever 21 line

designed and tailored specifically for men also in their mid-20s. The designs
follow the female models in the other Forever 21 stores of remaining on point
and up to date with current male fashion trends.

For Love21: A French boutique styled accessory store with womens jewelry,
shoes, handbags, cosmetics, and more.

Heritage 1981: This particular line is an attempt by the brand to penetrate the
midmarket of consumers. With a more urban feel, this line lends itself to
competing less with the big name fashion houses and their designs, but what
one would find at an Urban Outfitters.

1.3 Mission and Vision Statement

1.3.1 Mission Statement
The company's mission is to provide shoppers with an unprecedented selection of
today's fashions with affordable prices. They are known as "always changing and
always in style".
1.3.2 Vision Statement
Just as a consumer has choices, we will keep you informed about all of our own. At
Forever 21 we take our choices seriously, challenging ourselves to create the most
positive impact we can. We see these choices as part of a work in progress. There is
always more to do, and as we move forward, were committed to being open and
direct about our challenges and accomplishments.

1.4 USP
The brand's USP in India is "the best of fashion at affordable prices. The brand
knows that India is price-sensitive, so much so that its prices are as competitive as
its home market.

1.5 Marketing Mix

1.5.1 What is Marketing Mix?

Price- How you price your product or services so that your price remains
competitive but allows you to make good profit.
Place Where
your business
Price
Price
sells
its
products
or
services and
how it gets
Marketin
Marketin
those products
Product
Place
Product
Place
g
Mix
g Mix
or services to
your
customers.
Product The
Promotio
Promotio
n
products
or
services
offered to your customers: their physical attributes what they do, how they
differ from your competitors and what benefits they provide.
Promotion- The methods used to communicate the features and benefits of
your products or services to your target customers.
1.5.2 Product
Forever
21
has
a
broad
Product
strategy.
Assortment breadth: Forever 21 has numerous different item categories of
classification.
Assortment depth: In Forever 21 there is a numerous amount of quantity of each
item available in the assortment of goods offered to customers. Inventory is changed
10 to 11 times a year. The brands offer a complete merchandising mix that
encompasses any type of style, for any type of shopper, and maintains a
large diverse customer base.
1.5.3 Pricing Strategy
A business can use a variety of pricing strategies when selling a product or service.
Forever 21 follows two types of pricing strategies

Psychological Pricing Strategy- It is a way to price your products or

services to influence people when making a buying decision. Psychological
pricing is
a pricing/marketing strategy based
on
the
theory
that
certain prices have a psychological impact. Retail prices are often expressed
as "odd prices": a little less than a round number, e.g. Rs. 799 or Rs. 1799.

Penetrating Market Strategy- Market penetration pricing is a pricing strategy

that sets a low initial price for a product. The goal is to quickly attract new
customers based on the low cost. The strategy is most effective for increasing

market share and sales volume while discouraging competition.

The strategy works on the expectation that customers will switch to the new
brand because of the lower price. The price is reasonable in relation to the
product, good sales. The brand starts at as low as Rs 200, while its average
selling price is between Rs 699 and Rs 799. Prices generally match the
customer perceived value, which makes for very successful sales
1.5.4 Place
The average FOREVER 21 store is 38,000 square feet, the largest is approximately
162,000 square feet and the original FASHION 21 store is only 900 square feet
.Even with the companys tremendous growth, it still remains a family owned
business. It All Began In A 900 Square Ft. Shop On Figueroa Street In Los Angeles
On April 21, 1984. The Store Was Called Fashion 21. By The End Of The First Year,
Sales Had Risen From $35,000 To $700,000. The Founder Reinvested His Success
By Opening New Stores Every Six Months Eventually Changing The Name To
Forever 21.
Currently operates 600 stores around the world, with 469 in America and 131
overseas. Growing to 1,200 stores could help Forever 21 compete with other fastfashion brands. In comparison, H&M currently has 3,200 stores in 54 countries, while
Zara has over 2,000 stores in 88 countries.
1.5.5 Promotions
Forever 21 Prompts their business using

Billboards
Blog
Social Media like Facebook, Twitter, Instagram, Pinterest

It has a very simplified website design which provides more freedom for the online
shoppers to take a closer look at the goods by clicking the categories shown on the
top of the screen.

1.6 Marketing Strategy

A. Traditional Marketing- Forever 21 uses magazine advertisements as its only
way of offline promotions. It has no radio or TV commercial. It mostly works on the
model of online marketing.

Sourcewww.manilaonsale.com,www.fashionla.com

B. Digital Marketing-Forever21 has

drawn in with their shoppers through intricate social media marketing initiatives. They
use Facebook, Twitter, and YouTube with continuous upgrades to draw in discussion
and increase brand awareness.

Forever21's Facebook page boasts more than 129 lakh "likes" and 1,00,000 people
have "checked in" while shopping in stores overall. Frequent posts by the marketing
teams include different polls about promotions and reminders of hot new trends on
the market. The fact that customers check in while theyre shopping creates more
brand awareness because people want all of their Facebook friends to know that
theyre receiving great fashion deals at the store.
The Twitter page has close to half a million followers with several updates literally
every day. Many Instagram photos of behind the scenes footage are updated via
twitter.
With 10,000 dedicated subscribers and over 1 million video views, Forever21's
YouTube site serves as the epicenter of Forever21 "ads". Since the organization
doesn't put advertisements in magazines or plugs on TV, YouTube has offered
Forever21 to showcase their recordings.

1.6 Segmentation, Targeting and Positioning

1.6.1 Segmentation
Market segmentation is a marketing strategy that involves dividing a broad target
market into subsets of consumers, who have common needs, and then designing
and implementing strategies to target their needs and desires using media channels
and other touch-points that best allow reaching them. Market segmentation involves
dividing a market into smaller groups of buyers with different needs, characteristics,
or behaviors that might require separate different marketing strategies. There are

four segmentation categories which is geographic segmentation, demographic

segmentation, psychographic segmentation, and behavioral segmentation. But
Forever 21 only uses two combinations of consumer market segmentations which
are demographic and psychographic segmentation.

Demographic segmentation-Forever 21 products are meant for people falling

in the age bracket of 13-30 years. Other than that, Gender Segmentation is
also applicable because Forever 21 provides products for both the gender.
For example- It has footwear for women as well as men. Next is Income
Segmentation which Forever 21 is targeting middle class and upper middle
class.
Psychographic segmentation-Forever 21 focuses on people who love to spice
up their wardrobe and want to look uber stylish at all times. Its customers are
a follower of the latest fashion trends and are looking for low priced products.

1.6.2 Targeting
Forever 21 has customers from different backgrounds mainly because it offers all its
products at affordable price. The target audience of F21 is socially active and
outgoing and is a follower of latest trends. Forever 21 do not have intensive market
coverage. The target is young adults whose leisure time consists of shopping or
hanging out with friends. . It has selective market coverage where stores can be
located in the city and rural areas.
1.6.3 Positioning
Brand positioning is the process of creating a distinctive offering for a brand, which
differentiates the brand in the hearts and minds of the consumer, enhances its
appeal and positively impacts current and future purchase potential. In essence,
consistent, sustained and differentiated brand positioning results in positive brand
equity, which is outcome result of all the efforts. Positioning can be for a general
mass market audience or a niche demographic sub-group, it can be focused on a
particular market, be regional or global in scope, and can evolve over time as the
brand develops and matures.
Forever 21 positions itself as a fast fashion brand. It picks up style from the runaway
and puts them on its shelves within 3 weeks, even before the original styles reach
the stores. Along with the tag of fast fashion, it has also got a tag of Affordable
price. All the runaway designs that a teenager or a working professional could not
afford due to its high price are now being available to them at a very low price.
Forever 21 also makes use of image differentiation. It has a very basic logo consists
of just two colours- Black and Yellow but these two colours have left a long lasting
effect on the consumers mind. If someone sees yellow and black somewhere,
without thinking they associate it with Forever 21.

1.7 SWOT Analysis

1.7.1 Strength

Latest Trends at affordable price- As soon as a design is launched, Forever

21 incorporates that design and puts it in the store within 3 weeks, sometimes
even before the original design come out on the shelves. This attracts lot of
teenagers and young women as they get latest styles at an affordable price as
compared to the runway price.

Retail presence- The large and often overwhelmingly oversized Forever 21

stores are already present on almost every continent and continue to multiple
in number.

Presence on Social media- Forever 21 has a very wide customer base and
to keep its customer updated all time, it is present on many social networking
sites like Facebook, Instagram, Pinterest, YouTube, Twitter and many more.

High customer traffic- Forever 21 gets high customer traffic on its online
portal and has lot of followers on its social networking accounts.

1.7.2 Weakness

Duplicating designs- As Forever 21 uses almost identical designs they

continue to face lawsuits from other brands, designers and production
factories for copying the physical patterns of the designs.

High Staffturn over- Even after careful selection of the staff, they are
dissastisfied with their staff and thus changes them frequently.

Low quality products- The products of Forever 21 are not durable and tend
to torn or get damaged after very short span of time.

1.7.3 Opportunities

Word of mouth- Forever 21 gets lot of publicity due to word of mouth. Also
many celebrities wear their clothes which inspired the young audience to buy
at Forever 21

Market growth - Current fashion trends for young adults are very similar to
the products that Forever 21 sells.

1.7.4 Threats

Competitors- Forever 21 competitor like H&M and ZARA pose great threat
because they provide similar product in similar price brackets.

1.8 Supply Chain

Forever 21 generate fashion products with a lightning speed time cycle. Forever 21
focuses on bridging the gap between high fashion and the American budget
consumer, and have accomplished this by ensuring their supply chain management
is in its most efficient delivery system. New competitor Forever 21 has mastered the
art of the supply chain. Forever 21 has a high turnover rate, which they can
accomplish because they carry a healthy mix of private label goods as well as those
from other suppliers.
Fashion seasons follow the annual cycle of summer, autumn, winter and spring, but,
in fast fashion, cycles are compressed into shorter periods of 4-6 weeks .

1.9 Success Story

Forever21 is #122 in Forbes biggest private companies list of USA. Forever 21 was
established as Fashion 21 in 1984 by a Korean immigrant in a small 900 sq feet
space. Today, malls house the fashion giant in 9,000 square feet area and their XXI
flagship stores are spread over 24,000 square feet.
By monetarily evaluating their fashion friendly designs, Forever 21 has been capable
at pull in relentless support offering clothing for teenagers, ladies and men apart from
venturing into accessories and beauty products.
While other clothing companies sourced products abroad to keep costs down,
Forever 21 wanted to work with household producers. This permitted the
organization to get the most recent styles on the racks well before its rivals.
When Forever 21 had entered in 2010, it had a franchisee agreement with West
Asia-based Sharaf group but was unable to scale up. In 2013, it switched partners
and announced a joint venture with DLF Brands and opened the first store under the
JV in May, 2013.
But Forever 21 success story has not been without its share of controversies. The
company faced several allegations of copyright infringements against it. As reported
by Forbes, Forever 21 had 50 copyright infringement claims slapped on it. Some of
the most famous fashioners in America like Diane von Furstenberg, Anna Sui,
Trovata, and Gwen Stefani have sued Forever 21. In any case, the firm was never
found reprehensible and settled most of the cases out of courts. With all due

admiration, Forever 21 keeps up that it works with traders rather than designers, and
does not duplicate outlines.
No one can deny the fact that Forever 21 was pulled up by a couple of media houses
like The Daily Mail and The Huffington Post. They guaranteed that the articles of
clothing firm was propelling a religious deliberate exposure and a Christian
arrangement since it sold products printed with words like Thank God, Holy,
Peace, Faith, Hope, Love, and Jesus. The accomplishment of Forever21 sets
an unprecedented example to small garments associations all through the world.

1.10 Future Prospects

Fast casual chain Forever 21 has added mens, girls and plus collections to 50 more
stores as part of its global expansion plan. This latest move is part of the companys
goal to become an $8 billion company within the next two years and to have 600
stores around the world within the next three years. Forever 21 currently operates
more than 680 stores in 45 countries. It is widely held that Linda Chang will take
over the company at whatever time her father chooses to step down making it clear
that the Chang family has no desire to take their company public at any time in the
foreseeable future.
Forever 21 is wanting to open 600 new stores in the following three years, all utilizing
the Oracle framework to help with promoting. The framework will forecast shades,
styles and SKUs at each of its six websites and corporate, franchise and jointventure owned brick and-mortar domains in 43 nations.
Also, Forever 21s focus on retail locations rather than marketing has allowed them
to occupy some of the most sought after real estate in major cities around the globe,
bringing their products to almost every market available. As they continue to expand
they will also continue acquiring knowledge about the evolving global fashion
landscape and in particular about competitors like ZARA, Hennes & Mauritz (H&M),
Uniqlo and many other competitors.

1.11 Forever 21s Key Challenges

Labour disputes: Forever 21 recently faced disputes over their workers

labour conditions and pay. The Los Angeles Labour Department reported than
an investigation into Forever 21 uncovered evidence of significant violations
of federal laws on minimum wage, overtime, and record keeping by vendors
supplying the company. The suit is ongoing, which means that it will continue
to tarnish the brands reputation as well as limit desire to work at the company.

Piracy lawsuits: While Forever 21 has already faced a multitude of piracy

lawsuits (they have been sued more than 50 times for copyright
infringement) they have made no changes to their design and production
practices. Unless they begin using more unique designs or make deals with
some of the designers they are inspired by they will be forced to pay
settlement after settlement until enough designers find a way to protect their
designs more concretely and at that point Forever 21 will have to completely
re-approach their production model. This may include a transition closer to
that of Zaras in which they have over 200 designers but participate in the
same streamlined production process. Forever 21 does not need to change
their production model; they simply need to expand the designs of what they
produce.

Product quality dilution: As a company whose defining quality is its price

point Forever 21 will need to maintain a competitive price despite changes in
the market. This will force the company to find ways to save money in facets
of production and historically when this occurs the quality of the product often
declines drastically.

Managing brand architecture: As Forever 21 continues to grow they are

constantly developing their sub-brands in their brand architecture and their
brand design themes. If these changes become too frequent customers will
potentially lose their loyalty to the brand as the brand loses its unique Forever
21 identity.

Transitioning power: As a business based largely on family Forever 21

remains a privately held and owned family operation. As the daughters have
graduated from their respective universities they are taking on larger roles
within the operation, clearly being groomed for an eventual transition of
power. The older daughter is said to eventually take control of the company
but this will inevitably lead to changes in the management and possibly
operation. Forever 21 needs to make sure that even under new and younger
leadership they maintain the brand the founders so tirelessly built.

Competitors: While Forever 21 has been extremely successful at maintaining

its unbelievably competitive prices, significantly lower than that of Arcadia
Group Ltd.s Topshop and Inditex SAs Zara, both of which target a slightly
older consumer. And in many categories, Forever 21 is even less expensive
than Swedish company Hennes & Mauritz ABs H&M, but as the fashion
landscape continues to shift towards an immediate transition form runway to
wearable other brands are entering the market Forever 21 previously
dominated. If Forever 21 continues to focus on location and store
development they will be able to combat this change head on as their
customer reach is significantly larger than its competitors.

Chapter 2: Primary Research

2.1 Logo

The name
of forever 21
all began
in
a
900
square ft. shop on Figueroa Street in Los Angeles on April 21, 1984. The store was
called Fashion 21. The luxurious cars of those in the retail industry influenced Don
to enter the garment industry and so Fashion 21, later renamed Forever 21, and was
established. While the founder of the store has never explained why Forever21 was
called that, but some assumed that it is because 21 is the ideal age of youth and
beauty. That's why they wanted it to be, Forever 21.
The Forever 21 logo is probably designed based on Din 1451 Eng Neu, with slight
modification on 1.

The owners of the store are Christians, that's why there are John 3:16 versus at the
bottom of each of the plastic bags. Read it backwards: REVE FOR 21.
REVELATIONS 21. That is the final prophecy, forever.

2.2 Store Layout

The store layout is free flow because there are many different sections in the store,
be it gym wear, kids and men. Therefore, in each section there are many tables,
racks, tiers everywhere scattered around the store. But due to many tables and
racks there is a lack of breathing space in the store specially when the products are
not put back by the floor staff.

2.3 Womens, Mens, Kids Sections

Forever 21 has three sections which are women, men , kids section. They not only
have a large amount of clothes section in the womens but mens & kids as well. The
mens and kids section are normally at the back while the womens are in front
because probably their main aim is to attract the women customers.

2.4 Tables
There are a few tables on all the floors. The tables are mostly near the cashier,
opposite the cashier in the middle of the store and are next to the mannequin
display. There are also tables near the front section, just behind the mannequin
display. But sadly there were no tables at the mens and kids section.
On the ground floor, the tables are normally filled with sale items or hot selling items
so it will probably attract the customers to look at the tables since is neater with the
clothes being fold and arranged nicely.
While mostly for the accessories there are quite a number of bowls of glass on the
table. There are also shoes and bags placed on a different table.
Ground floor:

First floor:

2.5 Cashier

Forever 21 has a cash counter on every floor. Near the cashier are also items in a
box -like selling socks, beauty products and nail polishes for impulsive buying.

2.6 Fitting Rooms/Storage

They have good number of trial rooms for their customers on every floor. The trial
rooms are spacious too with fine lighting effects.

2.7 Displaying Merchandises

They display their merchandises in many different ways by placing handbags or

even clothes on the wall hanging rack. Denim pants are also placed on a wall tier
rack. Some items are placed on the table and gondola as well.
They have over utilised the displays by putting a lot of items on the same rack/table.
This gives a messy look to the store.

2.8 Store Fixtures

There are many types of store fixtures in forever 21 such as gondola, tables, nesting
table and racks. They have created focal points throughout the store so the
consumers eye can bounce from one focal point to the next and not be
overwhelmed. Sometimes, it only takes a small number of one type of fixture to
create a feel.
Tires and boxes:

Nesting tables and tables:

2.9 Lighting

Their lights are in a chandelier. Lighting in the store are too bright which makes the
store shine. Lighting should do more than illuminate space. It can highlight the
merchandise and capture a mood that enhance a stores image, but it too much of
light often irritates the customers.

2.10 Store Sign

The store sign is big and bright enough to attract customers. Store sign can also add
personality, beauty, and romance to a stores image.

2.11 Conclusion
Despite the fact that the store sometimes looks messy however, it gives the shop a
look that it won't frustrate clients when they shop. Forever 21 has numerous kind of
various apparel, from floral to denim to beachwear wear and sportswear too.
Additionally I like how the shops have two stories. Both floors offer distinctive stock.
Other than that, I additionally like how there are racks and racks of garments and
you begin to get overpowered and being hesitant on what to get.
Perpetually 21's item may not hold up and additionally premium originator brands,
yet it searches sufficient for young ladies around the globe.

Chapter 3: Data Analysis and Interpretation

A primary research was conduct by us to know the strengths and weaknesses of the
brand Forever 21. The following questionnaire was made on Google forms (online
survey) to which approximately 90 people responded.
The purpose of the survey is purely educational. No information will be
misused. Kindly Cooperate.
Q. What is your age group?

15-20 years
20-25 years
25-30 years
Above 30 years

Q. How much money do you get/earn for monthly expenditure?

Below 20,000
Rs 20,000-Rs 40,000
Rs 40,000-Rs 60,000
Rs 60,000-Rs 80,000
Above 80,000

Q. What portion of your income do you spend on clothing (monthly)?

Below Rs 2000
Rs 2000- Rs 3000
Rs 3000- Rs 4000
Above 4000

Q. Where do you usually prefer to shop from?

Online
Retail stores

Q. What do you like about online shopping?

Time Saving
Convenience
Special offers
Various payment options
Others _________________

Q. Where did you first hear about Forever21?

Magazine Ad
Online ( Facebook, Instagram, Twitter etc)
Word of mouth
Browsing in the mall

Others ____________

Q. Which promotional activity attracts you the most?

Social media
Off site banners
Radio
Magazines
Others _____________

Q. How much would you rank the following aspects of F21?

5

Fabric
Design
Variety
Display
products
Fit

of

Color
Price
Others,
please
specify
______

Q. How do you rate the following in-stores aspects?

Good
Sales
behavior

persons

Accessibility of the
products
Moving space
the store
Store lighting
Music

in

Average

Poor

Q. What differentiates F21 from other brands?

Its affordable prices

Its stylish products
Wide range of collection
Others ____________

Q. Which other retail stores do you often shop from?

Zara
Promod
UCB
Vero Moda
H&M
Other __________

Q. What are these brands doing that F21 should also be doing?
___________________________
Q. Which F21 extension do you prefer?

Home Dcor (Cushions, Rugs)

Bathroom Accessories (Bath robes, Towels)
Stationery (Notepads, Pens)
Laptop and Phone Accessories

Q. How often would you like new products to be introduced?

Every week
Every 2 weeks
Once a month
Every season

DATA ANALYSIS and INTERPRETATION

Out of 85 respondents, 56%(appx) of them fall in the age group of 15-20

years.

Out of the total respondents, 71%(appx) of them have a monthly income of

below Rs 20,000.

Out of the total respondents, 84% (appx). of them prefer to shop from a retail
store

Out of the total respondents, 48%(appx.)

because of its convenience.

of them likes online shopping

Out of the total respondents, 43%(appx.) of them have heard about Forever
21 through Word of mouth.

Out of the total respondents, more than 50% of them are satisfied with the
fabric that forever 21 uses.

Out of the total respondents, 52%(appx.) of them rated store lighting of

forever 21 as Good.

Out of the total respondents,42%( appx). of them rated the music played in
forever 21 as Good.

Out of the total respondents, 45% (appx). of them rated the accessibility of the
products in Forever 21 as Average.

Out of the total respondents, 42% (appx.) of them rated the moving space in
the store to be Average.

Out of the total respondents, (appx). 34% of the people were just satisfied
with the prices that forever 21 offers. Whereas, 18% appx. Were highly
satisfied and 8%appx. Were not at all satisfied with the prices.

Out of the total respondents, (appx.) 46% of them rated the in-store aspects
as Average.

Out of the total respondents, more than 50%(appx.) people are satisfied with
the Fits that forever 21 offers.

Out of the total respondents, more than 50%(appx.) people are satisfied with
the colours that forever 21 offers.

Out of the total respondents, more than 50%(appx.) people are satisfied with
the variety that forever 21 offers.

Out of the total respondents, more than 50%(appx.) people are satisfied with
the display that forever 21 has.

Out of the total respondents, more than 50%(appx.) people are satisfied with
the designs that forever 21 has.

Out of the total respondents, more than 50%(appx.) people shop from the
brand Zara.

According to 38 people (appx.) (out of the total respondents, Forever 21

differentiates itself on the price factor.

Out of the total respondents, appx. 44% of them said that in every two weeks,
new products should be introduced.

Out of the total respondents, more than 80% of them find Social media as the
most attractive promotional activity.

Out of the total respondents, more than 47% said that Forever 21 should
introduce Home Dcor as a new product line.

Chapter 4: Proposal of the brand- Mingle

4.1 Introduction
Mingle is a brand which is dealing in the concept of contemporary (fusion of
traditional & modern) style of clothing, accessories and home furnishing at an
affordable price. Mingle as its incredible name will adapt to keep up with the ever
changing styles in the fashion world. The atmosphere that the mingle company is
trying to create will definitely be reached to its target audience, young men and
women that love staying on the cutting edge of contemporary fashion, for the right
price.

4.2 Vision and Mission

4.2.1 Vision
Eventually we would like to expand our business which means we are doing
everything outhouse so later when there will be a great demand of our products we
will do everything in-house.
4.2.2 Mission
We would like to do global business simultaneously while we are operating in pan
India.

4.3 Unique Selling point

Providing a fusion of Indian and trendy products along with an option of
customization for Home Furnishings.

4.4 Need gap analysis

We have identified the problem after doing the primary analysis on Forever 21 which
says that our Forever 21 is not providing good quality of products to the consumer so
we have taken good consideration of this point and we will be providing good quality
of products along with an option of customization on some products, to give proper
satisfaction to our consumers.
4.4.1 Why are we doing MINGLE as a brand?
1. Durability- The products we will be providing will be durable as we will be using a
blend of poly cotton (PC) 48 % of polyester & 52% of cotton.
2. Customization- We will be providing customization on specific products like on
home furnishing products that includes cushion covers & curtains.
3. Stylish products- We will be changing our stock after every 3 weeks which
means we will be providing fast fashion with perfect stylish products that will attract
our customers.
4.4.2 Why are we coming up with Home Furnishings as Brand Extension?

Most of the teenagers like to decorate their rooms or homes with cute and
affordable things so we are providing them Cushion covers & curtains.
This product line is not launched by our competitor brand-Forever 21, so we
have a competitive edge over them.
According to a survey conducted by us, most of the people gave a suggestion
to have Home furnishing for brand extension.

4.5 Marketing Mix

4.5.1 Place- Initially we will open our store in Delhi, in DLF mall as there will be no
problem for space in this mall. Then we will open our store across pan India. And
simultaneously we will operate our business globally also.
4.5.2 Promotion- We will promote our store through social networking sites, posters,
Magazines, mall faade and In store promotions.

Newspaper ad and Mall Faade

Magazine Ad

3D Hoardings

Visiting Cards
4.5.3 Price- Our basic price points for our products in apparels & accessories are
Rs. 299 and Rs. 599 and Rs. 399 for home furnishing. We would be following the
Psychological pricing strategy and Penetrating pricing strategy to attract customers.
4.5.4 Product We will provide fast fashion products but with durability with
affordable prices. Our Product range is as follows-

Women

Men

Home
Furnishin
gs

Tops

Upper wear

Cushions

Bottoms

Bottoms

Curtains

Footwear

Accessories

Accessories

Footwear

bags

4.6. Style Inspiration

4.6.1 Mood Board
A mood board is extremely useful for establishing the aesthetic feel. Mood Board is a
collection of different images, graphics, or examples of styles to get a better
understanding of someones preference for design (Wagner, 2016).
A picture is worth a thousand words, and mood boards are a great tool to create that
picture for the customers. The following mood board defines the inspiration behind
the thematic setting for the designs used by the brand Mingle. It also talks about the
new product line- Home Furnishings that Mingle offers as compared to its
competitors.

4.6.2 Fabric Board

Fabric Board is a collection of various fabric swatches that a designer decides to use
for his/ her product line. These swatches are generally based on the trend forecast
done by the experts.
Mingle would be focusing on using 52% Polyester and 48% cotton in most of the
clothes. Fabric like Denim will not only be used to produce apparels, but also to
produce accessories, curtains and cushions. As the brand focuses on fusion of
traditional and modern prints, it will also have batik, embroidery, mirror and jute work
inspired by the suburbs of India.
Besides the blend of poly cotton, Mingle would also be using the following fabrics for
the production of tits products-

4.6.3 Colour Board

Colours affect us both mentally and physically. If used effectively, Colours play a
major role in designing products. Each colour has a different effect on everyone. A
colour board defines the major colours used by the designer or the brand in their
products.
After the brands thorough research on the Trend Forecasting, Spring/Summer 2017,
it was concluded that warm Colours will rule the market. Natural shades printed on
soft materials always make it looks more appealing. The following Colour Board
clearly defines the pantone colours used in its product designs.

4.6.4 Customer profile

Customer profiling is critical to a company interested in keeping customers and
increasing their value. It talks about the demographics and behavior of the customer
which helps the company to further understand the type of customer they are dealing
with and thus improve their products and services accordingly.

4.7 Product Line

4.7.1 WOMENS BOTTOMS

Denim jeans
Shorts (Khaki, Hem, Hot pants and Denim)
Skorts
Pants- Casual, Formal, Stirrup , Cigaratte, Jaipuri
Casual and formal trousers

4.7.2 SKIRTS

Pleated
Pencil
Creased
Bubble
A-line
Burda
Minis
Sarong
Drapped
Cowl

4.7.3 DRESSES

Pencil
Layered
Mini dress
Denim galaxy
Flared dress
Polo dress
Long evening dress

4.7.4 MENS BOTTOMS

Pants

Shorts

Khaki
Pegged
Sweat
Jhodpuri
Landau flare
Nursing
Pants with suspenders

Cargo
Slim fit
Waistband
Boxers

4.7.5 UPPER WEAR

MENS

Polo tees
Formal shirts
Casual t-shirts
Tuxedo

WOMENS

Casual shirt
Ruffled tubeless tops
Shift dress
Jacket tops
Tent tops
Sleeveless tops

4.7.6 FOOTWEAR
MENs FOOTWEAR

Loafers
Crocs
Slippers
Formal shoes
Casual shoes

WOMENS FOOTWEAR

Slippers
Heels
Flats
Leather boots
Sandels

4.7.7 ACCESSORIES

Sunglasses

Bags

Duffle bag
Backpacks
Laptop bag
Shoulder bag
Party clutches
Sling bag
Cross body bag

Oversized
Round
Square
Cateye
Reflectors

Watches

Roman dial
Circular dial
Customised

Hats- Jute, Beachwear, Cowboy

Jewellery- for neck, hand and ear
Headbands- Cotton, beaded, laced, mirror work

4.7.8 Product Line- Brand Extension

A. CUSHIONS

Ethnic range- Jute, Beaded, Mirror, Laced, Embroidered

Customised range
Digital printed
Funky range

B. CURTAINS
Within home furnishing we would be dealing with a wide range of customized
curtains. The customers can have their pictures, initials or any design printed on the
curtains. We would be dealing in:

Denim curtains
Embroidery curtains
Digital printed curtains

4.8 Visual merchandising and in store Display

Visual merchandising refers to anything that can be seen by the customer inside and
outside a store, including displays, decorations, signs and layout of space. The
overall purpose of visual merchandising is to get customers to come into the store
and spend money. Visual merchandising includes how merchandise is presented as
well as the store's total atmosphere. Visual merchandise is the presentation of a
store and its merchandise in such a manner that will attract the attention of potential
customers. It involves decorating the store keeping the interior presentation the
same as what is promised on the outside.
Visual merchandising starts on the outside of the store or its exterior presentation
and carries on to the interior presentation. It may involve the ability to create window
displays in fashionable colors and patterns that make customers think the store has
what they're looking for and the art of creating other types of displays or dressing
mannequins. Visual merchandise requires a combination of skills including creativity,
artistic knowledge and understanding of store design. Color is a big attraction point
in converting potential shoppers into customers.
4..8.1 Visual Merchandising

The above picture depicts the fusion of two worlds- the wildlife and the humans. This
fusion symbolizes the fusion done by Mingle. It depicts how the traditional mindset of
people and modern mindset come together to form a brand.
4.8.2 In store Displays

The main concept behind the above in store display is to showcase the fusion of two
different cultures- Traditional and modern.
The elephant, carrying a leather bag, draped in a typically Indian cloth (embroidery
and mirror work) will help the customers to connect to their nation as well as will drift
towards the modern era.

4.8.3 Store Layout

The layout of the store will be-

Curving/Loop (Racetrack) Design

In this kind of store layout, major customer aisle(s) begins at entrance, loops through
the store (usually in shape of circle, square or rectangle) and returns customer to
front of store. It exposes shoppers to the greatest possible amount of merchandise
by encouraging browsing and cross-shopping.
4.8.4 Feature Areas
The areas within the store to get the customers attention will inclue End caps displays located at the end of the aisles
Promotional aisle/area
Freestanding fixtures
Windows
Walls
Point-of-sale (POS) displays/areas
4.8.5 Types of Fixtures

Wall Fixtures- To make stores

wall merchandisable, wall
usually covered with a skin that
is fitted with vertical columns of
notches similar to those on a
gondola, into which a variety of
hardware can be inserted

Straight Rack Long pipe

suspended with supports to the
floor or attached to a wall

Gondola Large base with a

vertical spine or wall fitted with
sockets or notches into which a
variety of shelves, peghooks,
bins, baskets and other
hardware can be inserted.

Round Rack Round fixture

that sits on pedestal

Four-way Fixture Two

crossbars that sit perpendicular
to each other on a pedestal

4.9 Marketing Strategy

Since mingle is a company that is founded on the principle of staying up to date and
trendy, by adding to their current social media they will be able to reach an even
larger group of potential customers, as well as keeping their current MINGLE lovers
updated on their latest traditional styles
Mingle will be targeting an audience of young women and men ranging from ages 15
to 30 that are seeking to keep up with the latest styles from the runway at an
incredibly reasonable price. However, even though this is the targeted audience of
mingle, many different people from many different backgrounds and age groups will
choose to shop at mingle simply because it offers almost anything someone needs
at the lowest price for its quality. As stated previously, mingle always wants to be on
the cutting edge and what better way to stay on the cutting edge than to keep up with
every type of social media. A goal of mingle is to expand its range of customers by
offering a wider variety of styles, but for them to reach these other types of potential
customers, they need to use social medias that will fulfill this goal. Along with this
goal, comes with it the need to expand the notoriety of the company as well as sell
more of its products.
We will implement one strategy by using Facebook and updating the pages status
daily offering different merchandise information, along with its features and benefits.
Based on this outline of goals for mingle and its social media experience it can afford
to spend at least 5-8 hours daily on its endeavor. As for mingle website, it is
completely optimized, harboring Facebook, Twitter, and YouTube badges on the
home page. Facebook is the primary source of interaction they have with customers
simply because people can comment and like mingles updates. Twitter is another
way they allow users to interact, however it is not nearly as widely used at Facebook.
Mingle also consists of incredible blog on their website describing their YouTube
page, but this is where mingle falls short.
So mingle will most probably:
Create a mobile shopping app
Use a social bookmarking site
Add Groupons/Living Social deals
The analytics and metrics of this outline will be the effectiveness of these
implemented strategies. For the video blog, the number of views each video gets
within a month of its release will be a huge determinant. If there are more than 3,000
views, it would be considered a success. The success of the mobile shopping app
would be determined on the number of purchases that occur throughout the first six
months of its operation. Using a social bookmarking site will be the trickiest to
determine success by far, but not impossible. If done properly, success can be
measured by how many views the profile gets; again 3,000 within the first six months
would be the determining number. Lastly, by offering a Groupon or a Living Social
deal, the achievement would be over 3,000 purchased nationwide. No matter how
large or small a new strategic plan is, it takes time to implement. It will take very
careful planning, time, and effort; nothing will happen overnight. After six months,
mingle can evaluate their product and strategies to determine how they have been
working and if changes need to be made. It is incredibly important for a company in
the ever changing fashion world to keep the trend conscious followers fed with the

knowledge they crave. This is why stability and consistency with all of their social
marketing techniques are crucial in mingles success.

4.10 .Segmentation, Targeting and Positioning

The market for any product is normally made up of several marketing tools such as
segmentation, targeting and positioning:
A market after all is the aggregate of consumers of a given product. And, consumer
(the end user), who makes a market, are of varying characteristics and buying
behavior. There are different factors contributing for varying mind set of consumers.
It is thus natural that many differing segments occur within a market. In order to
capture this heterogeneous market for any product, marketers usually divide or
disintegrate the market into a number of sub-markets/segments and the process is
known as market segmentation
Thus we can say that market segmentation is the segmentation of markets into
homogenous Groups of customers, each of them reacting differently to promotion,
communication, pricing and other variables of the marketing mix. Market segments
should be formed in that way that difference between buyers within each segment is
as small as possible. Thus, every segment can be addressed with an individually
targeted marketing mix.
The importance of market segmentation results from the fact that the buyers of
product or a service are no homogenous group. Actually, every buyer has individual
needs, preferences, resources and behaviors. These common characteristics allow
developing a standardized marketing mix for all customers in this segment.
Through segmentation, the marketer can look at the differences among the customer
groups and decide on appropriate strategies/offers for each group.
4.10.1 Market segmentation
Market segmentation is the process of dividing consumers into distinct groups.
There are 4 ways to Segment the consumer marketsA. Geographic segmentation- The brand Mingle will be present in metro
cities/urban cities/pan India / globally/ malls. The products of our brand will have a
change according to the culture in global market
B. Demographic Segmentation

Age 15-30 years

Gender Male & Female
Income Medium to high income group
Background Trendy & who like to change themselves with fast fashion
Youth and middle age market /medium to high income groups.

C. Psychographic Segmentation- Style conscious contemporary and traditional

Indian girls who are driven by fashion and the small time money bag.
D. Pie charts
P.1 This chart illustrates the total population along with number of males and
females, after calculating the percentage we get to know that males in India are 52%
and females in India are 48%

Total Male Population in

India 52%
Total No of Females in India
48%

P.1

TOTAL NUMBER
Total Male Population in
India 52%
Total No of Females in
India 48%

Current
Population of
India in 2016 %
1,236,344,6
31
642,899,20
8
593,445,42
3

52%
48%

(Census of India: Provisional population totals: India: Census 2011 )

P.2 This chart shows that percentage of males is 53% and females is 47% in age
group between 15-30 years.

number of males and females in age group between 15-30 years

males 53%
females 47%

Population distribution on basis of age groups BETWEEN 15-30 Yr.

males females
number of males and females in age group
between 15-30 years
53%
47%
(Census of India: Provisional population totals: India: Census 2011)

P.3 This chart illustrates the population distribution between the age group 15-24
years on the basis of Income level.

POPULATION DISTRIBUTION BETWEEN AGEGROUP 15-24YEARS ON THE BASIC OF INCOME LEVEL .

RICH 44%

MIDDLE CLASS 56%

(Census of India: Provisional population totals: India: Census 2011)

POPULATION DISTRIBUTION BETWEEN AGEGROUP 15-30YEARS.

MIDDLE
RICH CLASS
POPULATION DISTRIBUTION BETWEEN
AGEGROUP 15-24YEARSon the basic of income
level.
44%
56%
4.10.2 Targeting
A specific group of consumers at which a company aims its products and services.
Your target consumers are those who are most likely to buy from you. The Criteria
for target market are
-

Size
Expected growth
Competitive position
Cost of reaching the market

The target group of brand Mingle are people from age group of 15-30. We will target
them by giving discounts, customization on specific products, we can even given
them membership cards so that through that they can redeem their points & we can
target them through all and social media sites
4.10.3 Positioning
An effort to influence consumer perception of a brand or product relative to the
perception of competing brands or products. Its objective is to occupy a clear,
unique, and advantageous position in the consumer's mind
The brand Mingle will position itself as a fast fashion brand and will be the first one to
launch customization on specific products at very affordable prices. We will position
our brand as small time money brand but with great quality and affordable prices and
will be providing customization also. And we our providing home furnishing also as
our competitors are not into this line so it will be a competitive edge over them.

4.11. SWOT analysis

4.11.1 Strength

Reasonable prices according to the product

Customer service-generally very kind and accommodating
Wide variety of products & Choices
Good design with new concept of Modern & Indian fusion
Quality of the product will be nice
Providing Groupons & reward system
Systematic & well managed online app & site

4.11.2 Weakness

As we are new to this industry , so may be when we get our clothes or

anything manufactured then may be the manufacture may not give us proper
discount and we would have less profit margins.

4.11.3 Opportunities

We will be One of the few stores that will be having trendy traditional plus
modern clothes & Home furnishing with affordable prices.
We will sell fast fashion in clothing, accessories, footwear & home furnishing

4.11.4 Threats

Stores like H&M and F21 will be our competitors as they are also providing
same products with same price range .

4.12 Supply Chain Management

Supply chain (also called value chain or demand chain), is the network of the
involved companies, through upstream and downstream linkages, in the different
processes and activities that produce value in the form of products and services in
the hands of the ultimate consumer. For example, in MINGLE we as a part of
manufacturer is a part of a supply chain that goes upstream through the weavers of
fabrics to the manufacturers of fibers, and downstream through retail outlet to the
final consumer. Each of these organizations in the chain is dependent upon each
other.
In order to construct a plan for mingle we first developed a strategy for SCM which
goes on like
Plan ---Source--- Make -----Deliver----- Buy
We have used a set of approaches used to efficiently integrate the supplier,
manufacturers, warehouses and retail outlets so that the product is produced and
distributed in right quantities to the right location at the right time minimizing the cost
of wide systems and lastly satisfying the service level requirement.
We as new comers in the market are trying to cut off our expenses as much as we
can because our main motive is to provide quality products to our customers .we
have occupied warehouses near our store so that high demand can be taken care off
without wasting time and money. Our manufacturing unit consists of a designing
room linked with the top level main stream fashion designers which help them to get
updates of upcoming fashion trends. We procure our raw material as per our
demand and stock it to meet the need of future demand. The goods are then

produced within the firm followed by strict quality control protocols and then
transferred to our warehouses which keeps a stock in ready anytime for the
customers. Our cost of transportation is minimum as we have acquired warehouses
in between our manufacturing unit and retail store.

4.13 Social Responsibility of Mingle

10.1 Our new stores will be using energy efficient lighting systems to vastly cut
down on the energy usage.
10.2 We recycle all shipment boxes at our distribution centre daily.
10.3 Labour & Employee Relations Focus Areas Implementation of wage
requirements
10.4 Implementation of standard work hours / overtime hour
10.5 Implementation of standard age requirements
10.6 Maintence of child labour regualtions
10.7 Implemetation of occupational health and safety standards
10.8 Implementation of training and stress management
10.9 Access to healthcare

Conclusion
Indias retail market for western wear has, over the past few years, attracted a clutch
of the worlds largest private labels that are banking on the countrys young
consumers to spur business. Consumption expenditure on apparel is expected to
increase 3.8 times to $225 billion in India over the next seven-eight years, according
to a 2014 report by Boston Consulting Group.
Forever 21, like its owners, developed from one small storefront to one of the worlds
largest fashion retail companies. Forever 21s production model and price points set
them apart from almost all other members of the fashion industry allowing them to
continue to grow at the exponential rate they have for the past 20 years. While their
quality might not compare, their ability to replicate the most current trends has even
the most brand-conscious flocking to their stores. While they have been extremely
successful in the past with their rapid expansion and international development, they
will need to start paying more attention to their design piracy or eventually they may
no longer be able to simply settle.
A successful solution to this issue will mean a subtle shift in brand identity and a
necessary focus on authenticity and originality in designs, but as long as the Forever
21 brand is able to maintain their price point, merchandising, and focus on location
investment they are likely to remain at the forefront of the affordable designer
transition.
Through Mingle, we hope that we are able to satisfy the target audience with the
concept of fusion of traditional and modern work. Keeping in mind that India is a
price sensitive market, we provide our customers with products at affordable prices.

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