ADDONS: TARGETING IMPULSE
1. Would you buy lifestyle and fashion accessories at Addons? Why or why not:
REASON FOR VISITING OR NOT VISITING ADDONS:
Arguments in favour of visiting
Addons
Fashion Accessories
Exclusively male store as well
Arguments against visiting Addons
Not more than color variants
as Woman store
Availability of high fashion
per design
Less number of designs in
accessories under one roof
Design studios in mumbai
Wider product mix
Offers discounts and combo
jewelry
No formal communication
strategy
deals
2. What are the factors / trends in the Indian marketplace that may impact growth in this sector? How does Addons
compare with the competitive offerings in the Indian marketplace?
Customer related Factors:
Socio-economic trends:
The increasing number of global brands coming in india impacts this sector
The now and here mentality of people which inspires them to spend more
Role of television to make people believe that looking up to date is very important
Changed perception of people towards fashion
Demographic and Psychographic trends
Demographic trends like rise in income level,
increase in number of working women,
Feeling of being brand conscious
Market related Factors:
COMPETITIVE LANDSCAPE for ADDONS:
Criteria
Accessorize
Product
assortment
Target
customer
Store
presence
High fashion
jewelry
Hair accessories
Hosiery
Beach accessories
Bridal accessories
Stationary
Young and
fashion conscious
women
400 monsoon and
accessorize store
in UK
Clare's
accessories
silver and
gold
plated
jewelry
Stand-alone stores
in local markets'
Teens to
young
adults of
25 years
More than
3,400
stores
Jewelry
Fashion and
hair
accessories
Perfumes and
fragrances
Female
consumer
Exclusively
mens
in local
market or in
a residential
Kiosks in big malls
Colorful
artificial jewelry
Hair accessories
Addons
Buying the
impulsive
busy street
or mall
mens
accessories
and mens
wear
Exclusively
male store
Fashion
conscious
urban
Indian male
80 stores in
Tier 2 and
tier 3 cities
and more than
1000 stores across
50 countries
21 stores in major
metropolitans
cities
across 36
countries
Retail
structure and
format
Strong and well
structured online
presence
Featuredfront
section for
20-25years
Back
section for
teenagers
collection
area
Mom and
pop type
stores
Home
establishment
s in local
market or in
a residential
area
Open air
Store size
Price range
1500 to 3000 sq
feet area
INR495 to
INR4,500
1,000
square feet
area
INR199 to
INR 2,500
100 to 500
square feet
area
Some larger
stores
INR 100 to
INR5,000
50 to 75 square
feet
INR50 to INR
500
200 to 250
square feet
area for
mens
section
250 to 400
square feet
area for
womens
section
INR499 to
INR4,999 for
mens
Special
servcies
LED lighting for
latest collection
Store
promotions
and
advertising
Regular mid-sale
season and end
of sale season
before putting
fresh stock on
display
Staff were
trained to
pierce ear
with the
studex
piercing
gun
Continuou
s
promotion
s like buy
one get
one free
and half
priced
products
Polishing
jewelry or
repairing
jewelry,bags
No store
promotions
products
INR99 to
INR3799 for
womens
products
Good
ambience
,lightning
Temporary
canopied roofs
and lightning
arrangement
Constant
change in
display and
placement of
products
Discount
offers
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
Addons
QUALITY
HIGH
QUALITY
Kiosk in mall
RB
Kiosk in high street
LOCAL / INDIA
3. 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
Need Recognition
Information Search
Evaluation of Alternatives / Attributes
Purchase
Post Purchase
Impulse Buying
AT the time of encounter with the
product
Only among the given options that
are provided
It is stimulus driven , generally due 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,
Discounts are not sought once the
decision is made
Contemplative Buying
All the rational thinking and
comparisons are done post purchase
Only the value for money in the
product is evaluated post purchase
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
Internal and External motivators of an impulse purchase
Internal and External motivators of an impulse purchase
Internal Motivators
Nature, personality ,income, perception of
External Motivators
the store location, size, physical aspects,
the buyer
convenience, store patronage, ventilation,
attractive layouts, persuasive shop
His state of mind while purchasing
assistance, credit facilities, discounts
occasion
The person accompanying him
4. 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
5. 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
6. 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
Market Penetration
Market Expansion
Product Development
Line of Action
Add more stores in Tier 1 cities in untapped areas
Add aggressively stores in Tier 2/Tier 3 because of demographic dividends
Develop new brands in both men and women category as it is the main source due to the
Diversification
margins
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
Target segment
Age group Teenage and 20-30
As demographics changes in future Add-on should concentrate on age group more than 30 also
Retail formats
SIS, EBOs, Family owned SIS
Women stores preferably on SIS, Family owned SIS
Men Stores preferably on EBOs, Family owned SIS
Retail locations
Tier 2, 3 Cities
Same approach with adding locations
Store size
250 sq. ft.approx.
Need to Increase to 750 as competing brands are quiet huge
Category mix
Adequate as per current scenarios
Scale up the categories and use economies of scale in future
Product development and design
Only NPD is observed in women
Should try to create products of own brand for men also
Brand logo and design
Logo available
Make it more advertised
Branded and unbranded assortment
Not followed
Prescribing the same
Price range
INR499 to INR4,999 for mens products
INR99 to INR3799 for womens products
INR 49-4999 for Men
INR 49-4999 for Women
Promotions
Conservative
(Only In store )
Need to build brand image as own product business need to increase
Store design and layout
In stores are not spacious
Try to make more classified segments
