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Table of Contents

Sr. Contents Page

1 Objective
2 Introduction
2.1 Introduction of marketing
2.2 Introduction of Marketing Strategy
2.3 Introduction of Fab India
2.4 History of Fab India
2.5 Profile of Fab India
3 Purpose, Scope and Limitations of the study
4 Summary
5 Bibliography

The objectives of the study are as follows:

1) To identify marketing strategies of Fab India

2) To identify the target audience of Fab India

3) To compare the marketing strategies of Fab India in Bhopal

and in other cities

4) To understand the distribution channel of Fab India

5) To understand effect of marketing strategy on profit

Introduction of Marketing
Marketing is an integrated communications-based process through which
individuals and communities discover that existing and newly-identified
needs and wants may be satisfied by the products and services of others.

Marketing is defined by the American Marketing Association as the

activity, set of institutions, and processes for creating, communicating,
delivering, and exchanging offerings that have value for customers,
clients, partners, and society at large. The term developed from the
original meaning which referred literally to going to market, as in
shopping, or going to a market to buy or sell goods or services.

The Chartered Institute of Marketing, which is the world's largest

marketing body, defines marketing as "The management process
responsible for identifying, anticipating and satisfying customer
requirements profitably”.

Four Ps of Marketing

 Product: The product aspects of marketing deal with the

specifications of the actual goods or services, and how it relates to
the end-user's needs and wants. The scope of a product generally
includes supporting elements such as warranties, guarantees, and
 Pricing: This refers to the process of setting a price for a product,
including discounts. The price need not be monetary; it can simply
be what is exchanged for the product or services, e.g. time, energy,
or attention. Methods of setting prices optimally are in the domain
of pricing science.
 Place (or distribution): refers to how the product gets to the
customer; for example, point-of-sale placement or retailing. This
third P has also sometimes been called Place, referring to the
channel by which a product or service is sold (e.g. online vs.
retail), which geographic region or industry, to which segment
(young adults, families, business people), etc. also referring to how
the environment in which the product is sold in can affect sales.
 Promotion: This includes advertising, sales promotion, publicity,
and personal selling. Branding refers to the various methods of
promoting the product, brand, or company.

Marketing strategy is a process that can allow an organization to
concentrate its limited resources on the greatest opportunities to increase
sales and achieve a sustainable competitive advantage. A marketing
strategy should be centered on the key concept that customer satisfaction
is the main goal.

A marketing strategy is a written plan which combines

product development, promotion, distribution, and pricing approach,
identifies the firm's marketing goals and explains how they will be
achieved within a stated timeframe.

Marketing strategy determines the choice of target market

segment, positioning, marketing mix, and allocation of resources. It is
most effective when it is an integral component of firm strategy, defining
how the organization will successfully engage customers, prospects, and
competitors in the market arena. Corporate strategies, corporate missions,
and corporate goals. As the customer constitutes the source of a
company's revenue, marketing strategy is closely linked with sales. A key
component of marketing strategy is often to keep marketing in line with a
company's overarching mission statement.

Basic theory:

Target Audience
Proposition/Key Element

There are different types of marketing strategies based on some criteria:

 Market Dominance Strategy
 Porter Generic Strategy
 Innovative Strategy
 Growth Strategy
Market Dominance Strategy: Market dominance strategies are used
to dominate the market. Challenger, Leader and Follower are types of
market dominance strategies.

Porter Generic Strategy: Porter generic strategies are built on

strategic strength or competing abilities and strategic scope or market
penetration.Cost leadership, Market segmentation and Product
differentiation are types of porter generic strategies

Innovative Strategy: Innovation strategies are meant to trigger the

rate of product development and model innovation. It helps the firm to
incorporate latest technologies. Close followers, late follower and
Pioneers are types of innovation strategies.

Growth Strategy: Growth strategies facilitate the growth of the

organization. Marketing warfare strategies are conjunction of marketing
strategies and military strategies.

Purpose, Scope and Limitations of the study

The purpose of this study is to know about the marketing strategy and the
role of people in its formulation.

This project helps me to understand the whole business process and
various ways how an industry works as a whole. It also helps us to
develop our skills according to the present market condition. The study
also helps me to identify the practices related to finance in retail sector
which was a very knowledgeable experience to be gained. This training
also builds my skills of marketing together with my specialization fields.

Every thing has some pros and cons and so certain limitations of his study
that we could observe are as follows:

1) The study is limited to the organization of only to single city

(i.e. Bhopal) which have not provided a clear and correct
conclusion of the result. The result and conclusion would only
be approximated.
2) The organizations which have been studied and surveyed are no
providing us with full information which has hampered the
results and conclusion.
3) The process of study was very time consuming.
4) Difficulty in getting appointment from people as they were very
busy in their official work.
5) Ignorance and unwillingness of the people to meet

Fabindia Overseas Pvt. Limited operates textile and home accessory retail
outlets. It offers textile-based products, including ready-to-wear garments
and accessories for men, women, teenagers, and children; bed, bath, table,
and kitchen linen; and floor coverings, upholstery fabric, and curtains.
The company also offers home products, such as furniture, lighting,
stationery, tableware, cane baskets, and a selection of handcrafted utility
items. In addition, it offers cereals, grains, pulses, spices, sugar, tea,
coffee, honey, fruit preserves, and herbs. Further, the company offers
authentic body care products, including soaps, shampoos, hair oils, pure
oils, moisturisers, body scrubs, face packs, hair conditioners, and special
skin care products. Fabindia Overseas Pvt. Limited operates retail outlets
in India; Rome, Italy; Dubai, the United Arab Emirates; and Guangzhou,
China. The company was founded in 1960 and is based in New Delhi,


Type Private
Founded 1960
Headquarters New Delhi, India
Industry Textiles & Home Furnishings


In 1958, well before American companies were sourcing from India, John
Bissell left his position as a buyer for Macy’s New York to work as a
consultant for the Ford Foundation in order to develop India’s export
potential in its emerging textile industry. What Bissell discovered was a
village-based industry with a profusion of skills hidden from the world.

Determined to showcase Indian handloom textiles while providing

equitable employment to traditional artisans, Bissell established Fabindia
in 1960 in order to fuse the best aspects of East/West collaboration.

Fifteen years later the first Fabindia retail store was opened in Greater
Kailash, New Delhi with a range of upholstery fabrics, durries and home
linens. By the early eighties, we started producing garments made from
hand woven and hand block printed fabrics.

Over the years the focus of Fabindia's marketing shifted from exports to
the local Indian retail market. What started as an export house has today
become a successful retail business presenting Indian textiles in a variety
of natural fibers, and home products including furniture, lights and lamps,
stationery, home accessories, pottery and cutlery. Extending this
partnership to the farmers in rural areas, Fabindia launched its organic
food products range in 2004. Fabindia Sana, the company’s authentic
body care products range is also being launched at all Fabindia outlets.

Fabindia sources its products from over 15000 craft persons and artisans
across India. We support the craft traditions of India by providing a
market and thereby encourage and sustain rural employment. Today we
have retail outlets in all major cities of India - 105 at last count - in
addition to international stores in Dubai, UAE; 3 stores in Bahrain; Doha,
State of Qutar and Rome, Italy.


Fabindia Overseas Pvt. Limited has added a new item to its accessories
portfolio-crafts-based jewellery. The range, sourced from 21 states across
India, is an extension of the Fabindia brand aimed at offering buyers the
complete ensemble so that they do not have to source jewellery from
somewhere else to match their clothes. And it also hopes to lure new
buyers. The collection, priced between INR 100 and INR 8,000,
comprises ethnic jewellery in silver, beads, thread, wood, bell metal
(brass and copper), clay, ceramic, leather and glass-representing the
wealth of the indigenous crafts of the states from which the company also
sources its cache of textiles. The collection-of traditional as well as
contemporary jewellery-is available in three designs-Anusuya, the
classical range; Ananya, the unusual and contemporary designs; and
Amna, the trendy and casual range. The jewellery will be available in
select Fabindia stores in Delhi, Mumbai, Bangalore, Hyderabad, Kolkata,
Pune, Chandigarh and Chennai in the first phase. In Delhi, the collection
will be available in eight of the 17 Fabindia outlets and in four of the
seven stores in Mumbai.

Fabindia Overseas Pvt. Limited announced that it is planning to expand

its retail presence with a capital expenditure of INR 2.40 billion. The
company presently has 78 stores in India and one outlet each in Rome,
Dubai, Guangzhou and Bahrain and plans to add nearly 250 stores in the
next three years. It has set a target of opening 80 new stores by 2009 with
investments of INR 700 million. The ethnic-chic apparel brand will soon
launch a line of handcrafted accessories.

FabIndia sources its products from around 22,000 craftsmen and artisans
across India and has a plan to increase its supplier base to 100,000 in the
next few years.

Last year Bissell went one step further in trying to ensure he is sharing
the wealth FabIndia creates with those who are helping him to create it.
FabIndia floated a wholly-owned subsidiary, Artisans Micro Finance,
which will create community-owned companies. For each company, a
calculation is done of how much working capital it needs, and then this is
financed two-thirds through debt and one-third through equity. FabIndia
is working with Indian private sector bank, Axis Bank (the erstwhile UTI
Bank), to provide the debt.

The craftsmen will own 26% of the equity in the company and will buy in
at a price cheaper than external investors. Of the balance, 49% will be
owned by Artisans Micro Finance and the rest by financial investors and
FabIndia employees.
Fab India, a company which exclusively markets produce of rural artisans
and craftsmen through a chain of retail outlets spread across the country
has decided to promote 35 producer companies in different states
covering about 20000 weavers almost entirely from muslim, dalit and
other backward classes to enable them to aggregate their fragmented
production and increase volumes and returns. One of the companies
floated by Fab India with weavers in Rajasthan has declared a 50%
dividend in the current year. Fab India with 80 retail stores and plans to
increase this number to 250 by 2010 sees the potential for having similar
producer companies in about 350 districts of the country. The credit
requirements of these producer companies are to be met from commercial
banks, through a model devised by Fab India in association with ICICI


The major portion of Fabindia’s product range is textile based. Non-

textile introductions to this range are Home Products (introduced in
October 2000), Organic Food Products (introduced in July 2004) &
Fabindia Sana – Fabindia’s range of authentic body care products
(introduced in March 2006).

The textile-based product range includes ready-to-wear garments and

accessories for men, women, teenagers and children; bed, bath, table and
kitchen linen; floor coverings, upholstery fabric and curtains. Cotton, silk,
wool, grass, linen and jute are the basic fibres used.

The Home Products range carries furniture, lighting, stationery,

tableware, cane baskets and a selection of handcrafted utility items.

Fabindia Organics carries several types of cereals, grains, pulses, spices,

sugar, tea, coffee, honey, fruit preserves and herbs.

Fabindia Sana, Fabindia’s range of authentic body care products includes

soaps, shampoos, hair oils, pure oils, moisturisers, body scrubs, face
packs, hair conditioners & special skin care products.
Holding these major product lines together is the company’s commitment
to the rural and crafts sectors of India. Their products are:

Garments: Our most popular range. Fabindia garments include Indian

and western wear for men, women, teenagers, children and infants.


Accessories: Dupattas in a variety of fabrics, colours, weaves and

prints; scarves and stoles in wool, silk and cotton; neck-ties; shawls in
varied textures.


Home Linen: A large range of Bed, Bath, Table and Kitchen linens.
Home Linen

Home Furnishing: The Fabindia range of Home Furnishing

comprises upholstery, curtain fabric and readymade curtains.

Home Furnishing

Home Products: Indoor and garden furniture, home products in cane,

bamboo and basketry, tableware and ceramics.

Home Products

Organic Food Products: Partnering with rural farmers, Fabindia

now brings a range of tested and certified Organic foods to its customers.
Organic Food

Floor Coverings: Fabindia stores carry a range of Durries in cotton,

wool, jute, hemp and grass. Available in a variety of sizes and weaves.

Floor Coverings

Body care Products: Fabindia Sana, Fabindia range of authentic body

care products includes soaps, shampoos, hair oils, pure oils, moisturisers,
body scrubs, face packs, hair conditioners & skin care products.

Body Care

Fabindia started as a wholesale export company and has since
successfully established itself as a major retail player in the Indian
market. Corporate, resorts and hotels are serviced through a dedicated
Institutional Sales and Marketing team.

• Retail: Fabindia’s first retail store opened in New Delhi in 1976.

Today, Fabindia has 104 retail stores across India; Dubai, UAE; 3 stores
in Bahrain; Doha, State of Qutar and Rome, Italy.

The product range consists of garments for men, women, children and
infants; garment accessories; home furnishings – bed, bath, table and
kitchen linen, upholstery fabric, curtains, floor coverings and a range of
non textile products like furniture, lights, lamps and stationery. In
addition to handcrafted clothing and home furnishings, FabIndia’s
product line includes organic foods and body care products.

Fabindia was awarded “Best Retail Brand” in 2004 by The Economic

Times of India. In 2004, Fabindia was featured as part of a CNBC special
TV report on India.

•Wholesale Exports: Fabindia exports to over 34 countries

worldwide, to wholesalers as well as retailers. Products include home
linens as well as garments. Exports are done on the basis of standard
Terms and Conditions.

A special collection is developed for exports twice a year, which is

showcased at the Indian Handicrafts and Gifts Fair, New Delhi in spring
and autumn. This collection draws on different techniques to present a
range of home furnishings comprising of bed and table linen, with a focus
on textures – both visual and tactile.

• Institutional Sales: Fabindia has a dedicated team of professionals

to handle product customization and interior consulting for heritage
hotels, resorts and corporate houses.

• Merchandise Mix:
During the early days, merchandising was not a planned activity.
Whenever Bissell saw something of interest, he procured it for display at
the store. Sometimes he would also invite the craftsmen, to display the
products and assist in the sale. This orientation of customer relationship
later became a part of the company culture.

The expansion in merchandize mix is mainly done through customer

feedback especially that of its loyal customers. Fabindia believes: “A
delighted Customer is our Best Brand Ambassador” Fabindia does not
follow any customer acquisition strategy. It instead focuses on customer
retention. Fabindia creates its market through its existing customers
which is quite evident from the fact that about 85% of its customers are
repeat customers. The Unique Selling Proposition of Fabindia is the
quality of the fabric and the traditional style, which is always in vogue. It
has designed the stores’ decor and ambience keeping this in mind. It
constantly attempts to improve the quality of the products in order to
retain its customers.

The company concentrates on customer feedback by maintaining a

visitors’ register to record customer views. The store managers prepare a
report on buying pattern among consumers which is periodically
reviewed by the Product Selection Committee at FabIndia. Recently, the
CRM software has been implemented in a select few stores which aims to
help in maintaining a centralized database. This will help Fabindia in
retaining customers by building lasting relationships and improving
loyalty. The implementation, however, is still in its nascent stage, but is
soon expected to be spread across all the stores in the country. Fabindia
also has the Mystery Shopper Program to gauge the customer satisfaction
level. Mystery shoppers posing as normal customers perform specific
tasks such as purchasing a product, asking questions, registering
complaints or behaving in a certain way and then provide detailed reports
or feedback on their shopping experiences to the management. It serves
as an effective tool to improve the customer experience.
Moreover, the brand managers at Fabindia rely upon a concept of
intuition. If a new line of traditional kurtis is launched, the jewellery
which suits the attire also gets launched. It automatically gets sold
without any promotion. Before launching any new product, be it
traditional, western, organics, jewellery or furniture, Fabindia looks into
the value which a customer may feel by having the product as a part of
his/her life. Some customers are so inclined to Fabindia that they just
don’t believe in going elsewhere else, and don’t even tell other people
that they have purchased the particular item from FabIndia. This helps
them create an image of exclusiveness. Hence, uniqueness, innovation
and intuition are the most important aspects of Fabindia’s product

Store layout and location:

The store layout in Fabindia depends upon the type of store. Fabindia
works on various types of stores which include concept stores as well as
full fledged store. In a posh locality in a metropolitan city, Fabindia
works as a full fledged store which has almost all the product lines. On
the other hand, in a concept store, the place specific products are retailed.
Market potential determines store location for Fabindia, which is fast
expanding in Tier II cities like Bhopal where still mall culture is non
existent. The layout usually keeps clothes section at the back of the store
and the entrance area is utilized for home products. The exclusive
jewellery counter is also kept in the fronts.
Marketing strategy:

Fabindia was founded with the strong belief that there was a need for a
vehicle for marketing the vast and diverse craft traditions of India and
thereby help fulfil the need to provide and sustain rural employment. We
blend indigenous craft techniques with contemporary designs to bring
aesthetic and affordable products to today’s consumers.

There endeavour is to provide customers with hand crafted products

which help support and encourage good craftsmanship.

Handloom Weaving

There products are sourced from villages all over India. Fabindia works
closely with artisans by providing various inputs including design, quality
control, access to raw materials and production coordination. The vision
continues to be to maximize the hand made element in our products,
whether it is hand-woven textiles, hand block printing, hand embroidery
or handcrafting home products.

Hand block Printing

Channels of business:

It has created a visibility in the international market either through its

own stores or through other retailers and boutiques and also through
institutional sales. The main advantage Fabindia has enjoyed is that its
products have a distinctive and quintessential style and it can easily be
identified by potential customers.

Retail The retail channel is already developed within India with almost
100 stores in Tier 1 and Tier II cities. As of today, internationally
Fabindia owns stores in Rome (Italy), Guangzhou (China), Dubai (UAE),
Manama (Bahrain) and Doha (Qatar).

The product range consists of garments for men, women, children and
infants; garment accessories; home furnishings – bed, bath, table and
kitchen linen, upholstery fabric, curtains, floor coverings and a range of
non textile products like furniture, lights, lamps and stationery.

In addition to handcrafted clothing and home furnishings, Fabindia’s

product line includes organic foods and body care products.


When you visit or send e-mails to them you are

communicating with them electronically. You consent to receive
communications from them electronically. They will communicate with
you by e-mail or by posting notices on this site. You agree that all
agreements, notices, disclosures and other communications that they
provide to you electronically satisfy any legal requirement that such
communications be in writing.

All content included on there site, such as text, graphics, logos, button
icons, images, audio clips, digital downloads, data compilations, and
software, is the property of or its content suppliers. The
compilation of all content on there site is the exclusive property of All software used on there site is the property of or its software suppliers.
Fabindia has filed its application for registration under the Trade and
Merchandise Act and Rules at Delhi under different classes and awaiting
registration. Any violation of our trademarks will be liable for legal

When & what information does Fabindia collect?

Fabindia collects basic information required to service your requests,

including your name, mailing address, email and phone number. This
information is gathered when you purchase products/gift certificates, or
sign up for email notifications. Your card information is requested only
when you place an order and is submitted via the highest level of
encryption to ensure the greatest amount of safety and security.
When you browse there website, they also use “cookies” or bits of
tracking data to gather information about your preferences. This includes
your internet service provider’s address and your clicks and activity on
there website. They do not trace this information to individual customers
and will never use cookies to save confidential information such as
passwords or credit/debit card information

Why do they collect this information?

The primary reason they gather information is for order processing,

shipping and customer service. For example, they may contact you to
provide an update on your order, information regarding the shipping
status or to clarify questions related to your order. They also use this
information to improve their products, services, website content and

What steps does Fabindia take to ensure security when

shopping online?

When you place orders or access your account information, they offer the
use of secure socket layer (SSL) technology. The secure socket layer
(SSL) encrypts all information you put in before it is sent to them.
Furthermore, all of the customer data they collect is protected against
unauthorized access. To prevent unauthorized access, maintain data
accuracy, and ensure correct use of information, they have employed
reasonable and current Internet security methods and technologies. web site makes use of 128 Bit Secure Socket Layer
(SSL) technology to encrypt credit card and billing information while it is
transmitted over the internet. They do not record or retain your card
information at all as it is directly passed over to the payment gateway for
processing through the 128 Bit Secure Socket Layer (SSL), which is the
highest level of internet security available today.

When you make a purchase online, either a solid key or a locked padlock
icon will appear in the lower right of your browser window. This icon
indicates that your transaction session is secured through Secure Socket
Layer (SSL).
The information is sent to your card issuer's bank over a secure,
proprietary connection. When the authorization process is complete - this
takes around five seconds - you receive an approval or decline response
in your browser, and they are informed appropriately to initiate the
shipping process.

Awards & Expansion

Fabindia was awarded “Best Retail Brand” in 2004 by The Economic

Times of India. In 2004, Fabindia was featured as part of a CNBC special
TV report on India.

Today the company has retail outlets in all major cities of India - 97 at
last count - in addition to international stores in Dubai, UAE; 3 stores in
Bahrain; Doha, State of Qutar and Rome, Italy.
INTERPRETATION: As the chart shows that 67% people don’t know about FAB
INDIA .This is happened because FAB INDIA never advertises for itself.

INTERPRETATION: As the chart shows that the customers get information about
FAB INDIA from mouth publicity because FAB INDIA never advertises for itself.
INTERPRETATION: As the chart shows that the 50% of Contribution to
improving the life of rural artisans , 20% Quality, 30% of Brand Image of the
customers forces to come in FAB INDIA. Because their customers is belong to high
class level and purchasing from FAB INDIA give personal satisfaction to the

INTERPRETATION: As the chart shows that the customers Like more in FAB
INDIA that is Products and then 20% of service and Employee’s behavior because the
quality of the product is more high .
INTERPRETATION: As the chart shows that 90% of the customers are satisfied
with the product and services given by the FAB INDIA and 10% of customers are not
satisfied because they are direct connected with the suppliers so they are maintained
the quality of the product at certain level.
INTERPRETATION: As the chart shows that the 80% customers are satisfied with
the services of FAB INDIA because they maintained their standard.

INTERPRETATION: As the chart shows that the 85% customers will come again to
FAB INDIA because of its quality product and services.

INTERPRETATION: As the chart shows that the 30% of customers are regular
since last three years , 35% of customers are regular since last two years and 25% are
regular customers since last years. Some of the are not belong to Bhopal they came
here because of its brand image.

SWOT Analysis

Strengths Weakness

1) Differentiable products 1) No specific promotions

2) Brand recognition and
loyalty 2) Limited channels of business

3) Diverse product mix 3) Inconsistent quality of

4) In-house manufacturing
4) Inconsistent service in stores
5) Partnering with suppliers

6) Customer loyalty

Opportunities Threats

1) In-store manufacturing & 1) Substitute producing

navigation competitor

2) Promoting e-business 2) Not in touch with fashion

channel trends

3) Customer acquisition