Marketing Strategies of Good Earth

PROJECT REPORT ON GOOD EARTH

(MULTI BRAND OUTLET-HOME FURNISHING)

"Submitted by: Priyal Garg,

MAFMG in Partial Fulfilment of the Requirement for the Degree of M.A. in Fashion Marketing"

2012-2014

Submitted to: MAFMG Course Team

25th March, 2013

Pearl Academy

New Delhi

Acknowledgement

I express my heartiest thanks for the assistance and valuable guidance provided by my Mentor and my course leader Ms. Priya Mary Mathew and Course co-ordinator Ms. Priyanka Aggarwal along with all the module tutors - Ms. Sharmila Katre, Ms. Sunita Konwar, Ms. Anuradha Modhak, Mr. Ramesh Tahiliani, Mr. Tarun Pandey, Ms. Ritu Jain and Ms. Dilpreet Kaur who helped me in understanding the modules and applying the knowledge of the same in the project.

I am highly grateful to Good Earth, Khan Market New Delhi for bearing me every time I went to the store and irritated them buying nothing and for unknowingly providing me the necessary information regarding the project. The conversations I did with the Store Managers have helped me a lot in completing the project.

My thanks and appreciations also goes to my fellow class-mates, who constantly motivated and guided me to not to give up and complete the project successfully.

Table of Contents

Serial No. Topics Page Number

1. Background 4

2. Rationale 4

3. History 4

4. Context 4

5. Project Methodology 5

6. Organisational Hierarchy 7

7. PEST 9

8. Segmentation 10

9. Targeting 14

10. Positioning 14

11. Product Mix 15

12. Price Mix 23

13. Place Mix 25

14. Promotion Mix 26

15. Production Strategies 30

16. Consumer Behaviour 32

17. Branding 38

18. Competitor Analysis 42

19. Growth Strategies 44

20. Porter's Value Chain 45

21. Retail Management 48

22. Social Marketing 50

23. SWOT 51

24. Product Life Cycle 52

25. Suggestive Measures and Conclusion 53

26. References 54

Background - Good Earth

Good Earth is a subsidiary company of Eicher Motors Limited, which was incorporated in 1982 as the flagship company of the Eicher Group in India. Eicher motors Limited (EML) is a leading player in the Indian automobile industry. It has a 50-50 joint venture with the Volvo group, VE Commercial Vehicles Limited. Eicher Motors manufactures and markets the iconic Royal Enfield motorcycles. Eicher Motors recorded revenue of over USD 1 billion in 2010. (Taken from website of Eicher Motors Pvt. Ltd)

Eicher Good Earth Pvt Limited does business in non-automotive areas. Eicher Good Earth Pvt Limited comprises of high end lifestyle Good Earth Stores, Eicher Maps and Eicher Good Earth Publications that publishes travel guides. (Eicher Motors Pvt. Ltd.)

Rationale

Organic Industry in India is growing at an increasing rate. Nowadays, people are becoming health and environment conscious. So, they are adopting organic products- apparel, skincare, fragrances and even home furnishings. Organic is considered to be trendy and cool. So, I decided to take a brand whose core competency is organic products. And, being a lifestyle brand, it has emotional quotient attached to it in the form of the inspirations it takes from a particular tradition or culture. They prefer to keep those products which are hand crafted and support the dying art and the artisans of India.

History

Good Earth is a premium home furnishing and apparel brand with the unique ethnic Indian tradition attached to it. Sixteen years ago Anita Lal opened a beautiful, tiny home wares shop called Good Earth in tony South Bombay. At that time, she had absolutely no business knowledge or experience. What began as a passion project for a housewife who simply wanted to sell beautiful things has since grown into a fabulous and formidable global brand that boasts gorgeous shops in four different Indian cities - Mumbai, Delhi, Bangalore and Hyderabad. Good Earth stores are veritable treasure troves teeming with sumptuous bedding, giant silk pillows, glowing lanterns, elegant and sometimes eclectic furniture, inspired dinnerware and just about everything you would ever want in your home. It has tremendously amazing range of Indian ethnic wear for the upper middle class and higher strata, and has come up with children's wear line-gumdrops. Though Anita Lal has no rags-to-riches success story, she had (and still has) the financial backing of her husband. It is no easy feat for a woman in a country like India, who knows nothing about business, but the gender didn't pose to be an obstacle for Mrs. Anita Lal. (Jewels of Wisdom, 2011)

Concept

During the conception of Good Earth, Anita Lal had one thing in mind- to give Indian homes very beautiful things to keep. She had no knowledge about the business or fashion industry, being a graduate in psychology. But, she was determined to continue with her vision.

"The importance of sustaining crafts cannot be overemphasized. At the economic, social and cultural level we would be impoverished if we were to devalue our crafts, which are the wellspring of our creativity and that provide livelihood to millions of men and women."