ndia’s leading denim manufacturer, Aravind Mills, wish to expand its consumer base, with a new brand tailored jean specifically for the rural market. It required not only a new product design but also a new distribution approach. (i) Consumer preferences: Market research revealed: (a) Many in rural areas found even the cheapest branded jeans beyond their means. (b) There is skepticism towards readymade products among rural Indians. (ii) Product: Ready –to-stitch jeans were supposed to be priced at 195, as against the unorganized sector’s range of 150-350, the kit is to be provided which include a denim trouser length with specific tailoring instructions and the brand zipper, rivets and buttons that distinguish jeans from more denim trousers in the consumer’s mind. (iii) Distribution; It was the critical issue. Not only the product be made available but also the expertise to tailor it is to be created. Success depended on total tailor’s fineness. The product was made available in village with a population as small as 5000. Local cloth shops were as retail outlets. Seminars were organized to train tailors in denim fits and inform them about the changes required in regular sewing machines for stitching jeans. The additional machine accessories were initially provided free of cost and later at a subsidized rate. Outcome The strategy worked. In the first two months, demand crossed a million pieces as against a production capacity of 2,50,000 kits. So that the company had to stop advertising. And within 1.8 months, five million kits were sold. Consumers feedback showed that nearly 75 percent were first time jeans wearers. R & T shirts as well as readymade jeans were launched for the slightly more evolved consumers, cotton and formal trousers were also launched Questions (a) Trace the reason for the success of Ruf & Tuf in rural India (in detail). (b) Which other operations strategies you suggest to Arvind Mills for efficiency?
ndia’s leading denim manufacturer, Aravind Mills, wish to expand its consumer base, with a
new brand tailored jean specifically for the rural market. It required not only a new product
design but also a new distribution approach.
(i) Consumer preferences:
(a) Many in rural areas found even the cheapest branded jeans beyond their means.
(b) There is skepticism towards readymade products among rural Indians.
(ii) Product:
Ready –to-stitch jeans were supposed to be priced at 195, as against the unorganized sector’s
range of 150-350, the kit is to be provided which include a denim trouser length with specific
tailoring instructions and the brand zipper, rivets and buttons that distinguish jeans from more
denim trousers in the consumer’s mind.
(iii) Distribution;
It was the critical issue. Not only the product be made available but also the expertise to tailor it
is to be created. Success depended on total tailor’s fineness. The product was made available in
village with a population as small as 5000. Local cloth shops were as retail outlets. Seminars
were organized to train tailors in denim fits and inform them about the changes required in
regular sewing machines for stitching jeans. The additional machine accessories were initially
provided free of cost and later at a subsidized rate.
Outcome
The strategy worked. In the first two months, demand crossed a million pieces as against a
production capacity of 2,50,000 kits. So that the company had to stop advertising. And within 1.8
months, five million kits were sold. Consumers feedback showed that nearly 75 percent were
first time jeans wearers. R & T shirts as well as readymade jeans were launched for the slightly
more evolved consumers, cotton and formal trousers were also launched
Questions
(a) Trace the reason for the success of Ruf & Tuf in rural India (in detail).
(b) Which other operations strategies you suggest to Arvind Mills for efficiency?
Step by step
Solved in 2 steps
