Marketing Strategy for AUM Kids

Group Members:

1. Dhruv Anand (2019PGP151)

2. Ishan Kacker (2019PGP156)
3. Kolagani Harichandana (2019PGP159)
4. Soumya Talwar (2019PGP183)
5. Suryansh Singh (2019PGP189)
Problem Statement:
AUM Kids is an aspiring brand which designs and manufactures designer ethnic wear for kids.
AUM Kids currently operates through only offline modes like – Exhibitions in Hotels and Stalls
in renowned EXPOs which are mostly in the regions of Delhi NCR and Chandigarh. They need
to expand their business pan India and hence there exists a problem of how to attract
customers from across the country. This is where online marketing will come into picture.
AUM kids need to expand their presence online and need to come up with an online + offline
business model.
With Start-up India and Make in India being the two significant initiatives of the present Indian
Government, the start-up culture has really kicked in full-swing in the country, creating a wave
of entrepreneurial spirit. AUM Kids, being a start-up, provides a challenging platform to
explore and expand its presence which under these economic conditions will help the culture
to flourish. We, as marketing students, can apply the various methodologies used for the
same and help the brand increase its presence.
Secondary Research/ Situation Analysis:
The Indian kids apparel market grew at a CAGR of around 11% during 2013 -2018. India
is one of the largest contributors in the apparel-retail sector globally and it is becoming
a hub for kids apparel and fashion retailers as well. The kids apparel market caters to
children between 0 to 14 years of age and has been segmented into boys -wear and
girls-wear. The Indian boys-wear segment currently accounts for most of the market
share. The girls-wear segment, however, is also exhibiting strong growth characterized
by a gradual shift in preferences due to the changing trends. Traditionally, the girls -
wear segment was inclined towards ethnic and cultural clothing, but it is also shifting
towards more contemporary and comfortable garments.

A key factor driving the Indian kids apparel market is the country’s huge population.
Currently around 375 million individuals are below the age of 15 years in the country.
This represents a huge consumer base for the kids apparel market. Moreover,
catalysed by the strong economic growth in recent years, disposable incomes in India
have been witnessing a continuous growth. This has resulted in an increasing spending
on kids-wear by parents. Urban India majorly constitutes nuclear families with working
parents willing to spend more for their child’s comfort and convenience. Moreover,
Indian kids in both urban and semi-urban regions are increasingly being exposed to
media and are therefore more aware about brands which cater to them. This has
resulted in children’s active participation in their apparel purchase decisions as much
as their parents. Additionally, organised retailers and foreign investors are establishing
brands which target the requirements of both parents and their children. They have
attracted consumers through better visual merchandising, right product assortment,
promotional strategies and focused advertising. Moreover, both Indian and foreign
brands that previously catered to adults, have now stretched their product lines to
include children clothing as well.

IMARC Group’s latest report provides a deep insight into the Indian kids apparel
market covering all its essential aspects. This ranges from macro overview of the
market to micro details of the industry performance, recent trends, key market drivers
and challenges, SWOT analysis, Porter’s five forces analysis, value chain analysis, etc.
This report is a must-read for entrepreneurs, investors, researchers, consultants,
business strategists, and all those who have any kind of stake or are planning to foray
into the kids apparel market in India in any manner.

India has observed an entry of brands both international and domestic in the kids wear
market. Rising disposable income of the Indian working-class families and increasing presence
to foreign brands are the major factors for the growth of kids wear market in India. In addition
to brands, private labels and Indian fashion designers are also exploring Indian market for kids
wear. Moreover, awareness about brands and latest fashion trends is not only limited to
metros and Tier-I cities in India but is scattering among Tier -II and -III cities also owing to
availability of various media such as televisions, smart phones, etc. Furthermore, increasing
penetration of e-commerce has also resulted in suitable purchases by the Indian buyers in
kids apparel sector and growing presence of international brands for kids wear in India the
competition in the kids wear market is growing. Rapid urbanization, rising income levels and
fast retail expansion has aided increase the availability of organized products in the Indian
market which further drives the India Kids Wear market. The key players in the Kids Wear
market are Zara, HnM, Gini & Jony, Lilliput, Frangi Pani Kids, Chicco, among others.

Research Design:
Using the laddering process of primary research, we tried to analyse the current situation
and position our brand in order to create a buzz among the customers who might be
interested in our offering. We tend to do an analysis based on the results obtained and
further our research in a more systemised and channelled manner.
Primary Research:
We conducted a primary research among a few respondents to gauge the market potential
of this segment of products, i.e. the kids clothing. According to the responses received, we
aim to design our strategy in a way which might be appeasing to the customers of this line
of clothing for kids.
The google form that we floated is attached for reference along with some of the responses.
https://docs.google.com/forms/d/e/1FAIpQLSfNrk1psL4MkLlxz32RmkC8pQpAJeT-REO-
ZzJNHTMkBKKwpw/viewform?usp=sf_link
 Book1.xlsx

Marketing Strategy:

Marketing Tactics:
Pricing Strategy
AUM Kids will maintain a flexible pricing strategy. We base the product lines that we carry on their
reputation and quality as Kids wear apparel. Most of our lines come with a suggested retail price that
we will follow. We will also utilize the standard practice of key stoning as well.

Promotion Strategy
AUM Kids will follow an aggressive yet creative promotional plan. This will allow us to focus directly
on our target customer while still being conservative with our advertising dollars.
A press release kit will be sent to all major media outlets in Delhi NCR, Chandigarh the grand opening
of the first Indian owned kids wear apparel retailer in the city. This kit will include a press release,
pictures of the interior space, color postcard/flyer, and a business card.
5,000 4x5 color flyers/postcards will be distributed throughout the city at local halls and
Spot radio advertisements on two local FM radio stations, Mirchi, Red FM and Mantra.
A direct mail program that will further focus on and target the top 50% customer base with special in-
house sales and promotions.
Distribution Strategy
Our retail location will be the foundation of building our customer base. We will also manage a direct
mail program that will focus on our top 50% customers spotlighting any in-house sales and
promotions.

Marketing Programs
Our marketing programs will consist of the distribution of 5,000 color flyers two weeks prior to our
grand opening event.

Positioning Statement
For the more full-bodied individual seeking kids apparel, AUM Kids will offer name brand kids wear in
a larger assortment of styles and sizes that aren't always readily available in the mass kids apparel
retailers.

Sales Strategy
We will utilize the Retail software with every sales transaction. With each purchase the software will
record and maintain in its database the customer's name, address and purchases. This information
will be used with our direct mailing program to focus on our top 50% of customers.
We will offer a 14-day return/exchange policy to build trust with our customers and maintain retention
and loyalty.
Sales Forecast
The following table and chart give a highlight on forecasted sales. We expect sales to start off
conservatively and increase extensively during the Holi and Diwali holiday shopping season.
AUM Kids has planned for a rate of growth at 15% for the first year as we build name recognition and
status in the community. In the second and third year we look to see an increase of revenue of 20%
as we gain a larger percentage of the market share and increase our customer base beyond the NCR
part of the city.