Nalli Silk Sarees (B) –
An Abstract by M.D.Karthik, PGDM1, Roll N0-1403
The abstract is about the interview conducted with...
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Nalli silk(b) m.d.karthik abstract_1403

Harvard Case study Review on Nalli Silk Sarees
Published on: Mar 3, 2016
Published in: Business      
Source: www.slideshare.net


Transcripts - Nalli silk(b) m.d.karthik abstract_1403

  • 1. Nalli Silk Sarees (B) – An Abstract by M.D.Karthik, PGDM1, Roll N0-1403 The abstract is about the interview conducted with Ramnath K.Nalli, Vice Chairman of the Nalli Group and his daughter Lavanya K.Nalli (HBS MBA 2011), the fifth generation entrepreneur in the family business.She introduced the NalliNext format which appealed the young urban women with merchandise more suitable for business and casual wear. A comparative analysis has been made regarding the impact of increasing shelf space for silk sarees and reducing the shelf space for cotton sarees. Silk sarees and Cotton sarees have their own market share and they cannot be replaced. Decreasing the shelf space for cotton sarees will result in the young girls losing their impression on Nalli Silks and this will change the customer profile of Nalli Silks. A significant loss of the young urban women customers will be seen. The shelf space for silk sarees can be increased by reducing the shelf space for items like children’s clothes, men’s wear and synthetic sarees in the same order. According to the weather conditions of a particular region, the shelf space for silk sarees and cotton sarees are increased and reduced accordingly(Delhi has more requirements for silk sarees in winter and the hotter regions in India have increased demand for cotton sarees). The product mix cannot be compromised because in a small store like in Mumbai, the highest sales per square feet month is generated. Also the other factor to be considered is the cost comparison which customers are engaging in. The price of the cotton sarees cannot be increased as this will hamper the customer beliefs. Cotton sarees are not loss leaders and the silk sarees are in equal demand from the customers. The “Balancing Effect” is achieved by the “fixed price” policy of Nalli Silks and Sarees.

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