POSITIONING MAP OF ADDONS VS OTHERS:

PLOT: CL (Claries); AC (Accessorize); AO (Addons); RB (Regional Brands); KLM (Kiosk in Mall)&KLS (Kiosk in
High Street)

AC

CL

LOW HIGH
Addons
QUALITY QUALITY

Kiosk in mall

RB

Kiosk in high street

LOCAL / INDIA
1. What is the typical consumer buying process for a lifestyle and fashion accessories product?

Contemplative buying: a well-thought-out process that is more tranquil and less action-oriented than impulse buying

Impulse buying: Not consciously planned but arising immediately upon confrontation with a certain stimulus, either
external & internal. Fashion-oriented impulse buying refers to a persons awareness or perception of fassionability and is
attributed to a stimulus provided by an innovative style or design

CONTEMPLATIVE VS IMPULSE BUYING BEHAVIOR:

Buying Stage Impulse Buying Contemplative Buying

AT the time of encounter with the
Need Recognition
product
Only among the given options that
Information Search
are provided
It is stimulus driven , generally due
Evaluation of Alternatives / Attributes to the environment or On the basis of
emotions and likings and enthusiasm,
The main is to purchase the product,
and not achieve the economic
Purchase purchase,
Discounts are not sought once the
decision is made
Actual need ,preplanned
Done before visiting the store
Much practical approach, done
keeping in mind all the factors like
income, value for money
Even if the purchase decision is made
it may change on the point of
bargaining. Or if the after sale service
or the guarantee warrantee terms are
unfulfilled
 All the rational thinking and Only the value for money in the
Post Purchase
comparisons are done post purchase product is evaluated post purchase

Internal and External motivators of an impulse purchase

Internal and External motivators of an impulse purchase

Internal Motivators External Motivators

Nature, personality ,income, perception of the store location, size, physical aspects,
the buyer convenience, store patronage, ventilation,
attractive layouts, persuasive shop
assistance, credit facilities, discounts

His state of mind while purchasing occasion

The person accompanying him

2. What is Addons business model

Leadership and Management team

Business is managed by family

 Asish Saboo, Commerce graduate takes care of Mens vertical

Shilpa Saboo takes care of Other verticals

The ownership mode
The ownership mode
Direct retailing
Franchising model
Exclusive stores
SIS model

Marketing mix

Product- own brand and other brands Foreign as well as indian

Price for men-699to4999
Women-99-3799
Place-60 outlets in india in metro,tier 1,tier 2 cities
Majorly in malls or High streets
Promotion- in store promotion,by sending messages to its cutomers, discounts, season end sale

3. Brand loyalty or store loyalty what is the key to a stable and sustainable market presence in this category

Brand Loyalty

According to me both store loyalty and loyalty to brands is important. Wholesalers and brand representatives need to recognize
that they can support retailers in helping promote their brand through product knowledge and other selling tips. This can
increase brand awareness and ultimately help build brand loyalty.
Finally, understanding how consumers decide on their purchases can influence how you can support them. Whether store loyal,
brand loyal or a new customer with no loyalty established yet, each consumer can teach us a lesson as retail and wholesale
 professionals. Making sure to stay in touch with who your consumers are can add value to your business, whether you are a
store or brand.
For ADDONS they have male accessories in their outlets of different brands while in case of female accessories they had of
their own brand

4. Addons aspires to reach a 500 retail presence by 2018-19. What advice do you have for Singhee regarding this retail
strategy

STRATEGIC OPPPORTUNITIES FOR ADDONS BY USING ANSOFFS GROWTH MATRIX:

In order to achieve 500 stores by 2020 we have to follow below measures

Growth Options Line of Action

Market Penetration Add more stores in Tier 1 cities in untapped areas

Market Expansion Add aggressively stores in Tier 2/Tier 3 because of demographic dividends

Product Development Develop new brands in both men and women category as it is the main source due to the
margins

Diversification Related Diversification in apparel and accessories segment, but new markets approach with
caution as capital involved is high

ADDONS' RETAIL STRATEGY: CURRENT AND SUGGESTED:

 Retail element Current Suggested

As demographics changes in future Add-on

Target segment should concentrate on age group more than 30
Age group Teenage and 20-30
also
Women stores preferably on SIS, Family
owned SIS
Retail formats SIS, EBOs, Family owned SIS
Men Stores preferably on EBOs, Family
owned SIS
Retail locations Tier 2, 3 Cities Same approach with adding locations
Need to Increase to 750 as competing brands
Store size 250 sq. ft.approx.
are quiet huge
Scale up the categories and use economies of
Category mix Adequate as per current scenarios
scale in future
Product development Should try to create products of own brand for
Only NPD is observed in women
and design men also
Brand logo and design Logo available Make it more advertised
Branded and unbranded
Not followed Prescribing the same
assortment

INR499 to INR4,999 for mens

products INR 49-4999 for Men
Price range
INR99 to INR3799 for womens INR 49-4999 for Women
products

Need to build brand image as own product

Promotions Conservative (Only In store )
business need to increase
Store design and layout In stores are not spacious Try to make more classified segments