North South University
Report on
Yellow
Submitted to:
Prepared by
Guidelines for Individual Assignment (Instructor is eager to know your explanation,
justification based on available information):
1.1) Give a narrative about your assigned retail brand.
[5]
Yellow is one of the well reputed, fashionable, trendiest and largest clothing retailers of
Bangladesh. BEXIMCO is the parent brand of Yellow. Yellow started their journey at 2004 and
at present they have around 19 stores through Bangladesh and Pakistan with 24/7 online shopping
facilities by their website. Daraz Bangladesh is also online retailer of Yellow. Yellow currently
they are providing free delivery all over the country. Yellow is well known for its true international
quality designs and fabrics. They aimed to make world class standard fashion with quality clothing
and service at a reasonable price. Yellows product line contains an inclusive collections of fashion
clothing like men’s wear, women’s wear, kid’s wear, perfume and additional accessories for men,
women and children. Yellow stores and showrooms are very popular because of unique collection,
high quality garments and designs for young generation. Yellow is well known for its Panjabi’s
and shirts for men and for maintaining the current fashion and trend. Yellow make itself a
distinctive clothing brand in Bangladesh because of its special, fashionable and exclusive
collections and comfortable merchandises. Quality of Yellow’s cloths is exceptionally decent and
good such as they are successful to keep old customers and they will always keep visiting.
Yellow have plan to open more new retail outlets at Sylhet and Chittagong. Beximco is also
planning to take this special Yellow brand worldwide. Yellow is a part of Beximco Textile and
monitored and controlled by Beximco Group.
1.2) Give a description of the target segment(s) of your retail brand.
[5]
At the time of Yellow launched they targeted the group of consumers whose were very fashionable
youth, stylish, trendy and modern and very self-confident in trying some the most unique,
comfortable and fashionable cloths. They mainly targeted higher middle class and upper class
peoples and young generations. While they concern it as young groups and 'ultra-modern' buyers.
But in recent times Yellow is preparing themselves to modify their target market. For this purpose
Yellow started selling kids wear and women clothing. They also planning to attract customers with
age around fifty. Yellows sales team still analysis and thinking to improve the styles and categories
which will be suitable with colors according to customer’s age.
Yellow always try to understand what their targeted customers are really craving for. With the help
of world class artistes and most proficient sales enquiry team, Yellow find out accurately what
kind of merchandises should display in the store to attract target segmented customers. Yellow
always come with changes with products decorations, color, designs and sometime with newly
introduce new product line and varieties to make satisfy of different group of customers.
2) From the target segment(s) perspective, what are the benefits and limitations of your
assigned retail brand’s existing channels strategy -explain? [10]
Benefits of Target Segments
a) Maintaining attention: Yellow targeted a very narrow customer segmentation. It’s easy
to keep their customers attention to them. Every new design and fashionable collection
create a great impact on Yellows customers. Yellow can easily and quickly reach to their
targeted customer for their narrow customer segmentation.
b) Meet the necessities of target customers: Yellow is successfully meeting the necessity of
their target customers. Because of this their customers are still satisfied and visit again to
buy. Yellow keep volume of stock of their displayed product to meet its target customers.
c) Assists in brand building: because of this narrow customer segmentation, Yellow’s
branding team easily can branding their product. Still now, Yellow is successfully keep its
well reputation with providing quality products. And their branding team is successful to
keep their customer beliefs and attach them with this brand.
d) Setting up of realistic selling targets and priorities: Building a narrow customer
segmentation makes easy to set selling targets and priorities. Upper management set the
sell target of every categorized products after analysis the location, customer segment, and
previous selling report and so on.
e) Creating a unique experience: Yellow mainly targeted young generation and trendy
modern buyers. In every occasion, Yellow come with new design, new model and
sometime new product line to keep their customers up to date.
Limitation of Target Segments
a) Characteristics changes of target market segment: Everyday characteristic of
fashionable dress changing. Basically western dress for young generation is changing. So
always keeping them up to date with the market make trouble. There are many established
market competitor in this market with same customer segment. Sometime customer’s
preferences also changes, yellow need to concern about all of those difficulty.
b) Pricing: As Yellow targeted higher middle and upper class peoples, they charged higher
price on all of their products. Sometime it became over price in some cases. Not always
their target segments peoples became capable to buy for higher price.
c) Focusing only Dhaka city: Currently, Yellow only operating in Dhaka city. All of their
outlets are in Dhaka. Most recently they opened one single branch in Chittagong. But to
cover their whole target customer that’s not enough. They should open more branches in
different cities in Bangladesh.
3) Why should your retail brand aggressively pursue sales through Internet channels
during and after COVID Pandemic-explain? [10]
For COVID 19 pandemic all of the retail operation is totally shutdown for government’s
instruction to lockdown the whole country. In this scenario, all retail stores of Yellow is shutdown
as well. But customer are still buying their necessary staffs though online. So that peoples are not
allowed to come outside from home, then buying and selling at online was the last hope. Yellow
was not different in this situation. They started selling their products from their official website
with free home delivery. Now a days peoples are avoiding public gathering to make them safe
from covid 19. So that covid 19 is a poisonous and deadly virus and still vaccine is not invented,
no one want to take risk of their life. After the pandemic, probability of invention of vaccine is
null. So after the pandemic still customer will avoid to visit outlets.
Target customer segment of Yellow is basically higher middle class and higher class peoples,
whose will prefer online shopping over the in-store shopping for their safety. And old and loyal
customers will still buy without and fear. Because of the belief and satisfied with Yellow’s
customers service. There some a religious occasion happened or will happen in this pandemic, so
the target customer will Yellows products. If Yellow became late from the competitors they will
have a chance to loss the customers. There is also a cost function in this agreement to pursue sales
through online. Labor cost, rents, maintains costs and so on are rising every day. Because of this
reason Yellow should start their selling process over online aggressively.
Currently, Yellow is selling by their official website and they are promoting their website as much
as possible to reach at their target customers and other potential customers too. They advertising
their products aggressively to capture the market and to avoid any uncertainty. So, sales through
internet channels during and after COVID Pandemic is essential to survive in this competitive
market.
4) Do a SWOT analysis for your retail brand:
4.1) What are its strengths and weaknesses in post COVID i.e. New Normal context?
[5]
Strengths
a) Enhance digital engagement: Due to covid 19 pandemic Yellow attached digital or online
selling in their retail sales beside store or outlet retails. In this situation it is confidently one
of the best idea to move offline to online to capture the market and survive in this
competition. While off store in shutdown, online sales is the best option for long run.
Because after this pandemic still no one will willing to visit store for safety purposes.
b) Ecommerce orders continue to rise: From the starting point of this pandemic to till June
3, 2020 there are a significant change comes to order in online. Highest selling is archived
after 20 to 30 Ramadan. So it is a positive impact for Yellow and indicates a well future
for post pandemic market.
c) Strength of Yellow’s supply chain: As we know, Yellow in a concern of Beximco Textile,
a part of Beximco Group. The supply chain of is stronger than other competitors. Though
there are a possibilities to shortage of supply and meeting the market demand but CEO of
Beximco is confident to handle post pandemic situation to meet international demand of
Yellow easily.
d) Managing cash: Yellow is well known for its pricing and quality goods. They are one of
the most successful brand who’s maintaining high price and with narrow target segments.
They are pretty well to keep cash management.
Weaknesses
a) Decrease in sale: due to this pandemic, there are a huge decrease in sales. Even in this
lockdown situation when all retail outlets were shut down and sales was totally zero. But
online sales was continue in this pandemic. But response was not satisfied. Total sales is
fall down a lots. Online sales was not get popularity like retails outlet.
b) Adjust merchandising plans: because of corona pandemic, now there are two permanent
retail selling option is opened to the Yellow. Offline in-store or outlet sales and internet
sales are two. They need to adjust and make e new merchandising policy to maintain this
two option like stock, delivery policy, offer and discount and so on for this two separate
selling system.
c) New in Ecommerce or internet selling: Yellow is new in Ecommerce. Previously they
only used to promotion but now they started selling. So they will face some consequences
to continue their operation.
4.2) What opportunities and environmental threats might it face in post COVID i.e. New
Normal context? [5]
Opportunities
a) Increase in target market size: In online sales or ecommerce there are no specific market
size and no need to worry about location. Yellow has a huge number young, ultra modern
customer base. So they can easily reached at their target customer and expend their area of
target market more easily then outlets.
b) Easy to advertisement: Now most of their customers will try to buy and will visit their
website to browse Yellows up-to-date collection. It is a big opportunity to advertising to
individual customer by noted their preference.
c) Collecting loyal customer data: Yellow can collect their loyal and potential customer data
by their website. They can use this data for upcoming target market and post pandemic
customer’s preferences and to display their product after post pandemic market.
d) Increase in sales: there will be huge increase in outlet sales after this pandemic. During
pandemic no one can buy their cloths and dresses for a long period, there are a possibility
to increase sales after this pandemic.
Threats
a) Entry of several foreign famous brands: there are possibility to entry of several foreign
brands in Bangladeshi market. Clothing retail market is increasing because of high demand.
If this happened then there are a possibility of losing the market slightly.
b) Customer rotation will increase: during this pandemic there are possibility of customer’s
rotation because of high price of Yellows product. After this pandemic there can be a
shortage of money of all buyers. It will negatively impact on Yellows sales in post
pandemic.
c) Sift in customer tastes: There will be change in customers test and preferences after this
pandemic. This pandemic will have great impact on customers test of clothing’s as well for
high pricing too.
d) Government regulation: shopping from keeping personal distance will make customers
lower. As well customers will also became afraid to shopping from outlet.
5) Explain how your retail brand will strengthen its competitive strategic advantage in
post COVID i.e. New Normal context. (Here pick one retail mix variable only) [10]
Due to covid 19 pandemic, all retail business is operating under loss in the market. But there are a
possibility of changing this scenarios after this pandemic. Here Yellow can achieve a competitive
advantage because of their customer service and selling. Now a days customers prefer customer
service. Commitment of the retailer, safety and quality goods over the price of the goods. This
pandemic will make a huge impact on customers buying behaviors. To keep those customers
Yellow can use their most successful element in sales, which is customer service and selling policy
at post pandemic market.
Yellow is well known for its customer’s service strategy. Yellow is now aggressively chasing
online sales to capture the market they loss in this pandemic. They already modified their customer
service policy for their online sales and they updated their customer service department. They open
24/7 online service with 24 ours cash back on their selling product with free home delivery all over
the country. They are hardly trying to win in this competitive market. They already started pointing
out their target customers individually to advertising them and to make them feel that Yellow care
about them more than any other brands established in this market. Yellow will ensure all kind of
safety for customer whose will visit their outlets.
Yellow believe that when a customer feel them that their favorite brand care about them then that
customer will never goes anywhere except them. After this pandemic Yellow will keep their
market same like before pandemic market by their advertising and customer service. Yellow have
a strong base of capital to make their in strong position. Yellow’s customer service staffs are
working to keep connected with customers in this pandemic. They sending sms to keep them safe
and to keep them with Yellow for their clothing solution.
6] Explain why you need to redefine merchandising strategy for your retail brand in post
COVID i.e. New Normal context. [10]
After this pandemic there will be a massive change in the customer buying behaviors. Covid 19
taught us that safety is the major priority than anything else. Target customers groups of Yellow
is Upper middle class and upper class, whose are very careful about this situation. They have less
chance to visit outlets to buy their fashionable clothing’s. They will search for safer option to buy
rather than outlet. So ecommerce and online selling option is the best option.
Merchandising of outlet and online sale is different. So that Yellow is aggressively pursuing to go
to online for post pandemic market then they should redefine their merchandising strategy for
online and outlets both option. In online sales there are problems of stock maintain, pricing,
advertisement and promotion, design and layouts of websites, user friendly website and so on.
Yellow already have modern and updated software base collection system. But for online sales
their need another team to maintain their operation. Yellow is new in this online sales, they will
need a specialist to keep them on the track.
Yellow is focusing on their technological advantages from their market competitors. They believe
their target customer are always connected in social media and Yellow can easily reach them. To
go to online permanently there are many consequences like product SKU, pricing, location and
delivery option with stock maintenance. That why Yellow need to redefine their merchandising
strategy for post pandemic market.
Reference
1. (n.d.). Retrieved May 31, 2020, from https://yellowclothing.net/
2. Islam. T. Follow. (2017, January 26). Study on yellow ( clothing ) beximco. Retrieved
June 04, 2020, from https://www.slideshare.net/TamimurIslam/study-on-yellow-clothingbeximco