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Resonance Apparels: Jumping to the Next Orbit using CRM*

CASE STUDY, CUSTOMER RELATIONSHIP MANAGEMENT
ET Cases - GSMC, 8 Pages
AUTHOR(S) : Dr. Harjot Singh, Assistant Professor, LM Thapar School

Case Preview

Resonance Apparels: Jumping to the Next Orbit using CRM

 

On a rainy morning of the first day of July 2015, 24-year old Ms Rubina Kumar (Rubina), the young executive-assistant to her father Mr. Sanjeev Kumar (Sanjeev), Managing Director (MD) of Resonance Apparels (Resonance), was able to feel the breeze and the droplets entering her plush office in Feroze Gandhi Market, Ludhiana. She had just been given the mandate by her father, who had started and established the Resonance group way back in 1984, to take the Apparels business to greater heights. Being a fresh graduate of Design and Fashion Technology, she had been wondering if she would be able to take the Apparels division to newer heights, given the challenging business environment and her lack of experience in running a business.. However, she was confident. She was exposed to two or three businesses in the sector during her education and internships. Sanjeev expected her to bring a fresh and vibrant view of the developments in this sector and suggest new ways of handling the business......................

Brief History: The Organization

“Launched in 1984”…this tagline about Resonance could be found written in every outlet and on every T-shirt which represented the duration of time for which Resonance had been in the garment market. It had been projected as its major strength. The baseline reflected the long experience of Resonance and the resulting rub-off effects on its products. It communicated an image that ‘I know my market and my customers well and long enough’............

Main Issues Faced by the Management

Rubina first met Sanjeev to understand his vision for the company. Sanjeev declared, “I have not been able to understand why our growth is slipping and profits are falling. The employees are loyal to me. They listen to me and do as I say. I give them all the facilities. We have invested in a CRM solution which has been developed by Oracle, one of the best in the world. However, I am not completely content with the training offered. Maybe our employees are old and not that tech-savvy. Hence, I am looking up to you to bring in a fresh perspective...............

The Resonance Brand, Outlets and Pricing

It has always been interesting to see how Resonance did not lose even a small opportunity to reinforce its brand name. The packing of the garments carried the Resonance brand. Most of the T-shirts, Shirts and Jeans had ‘Resonance’ brand printed on them. The neck-tag invariably carried the Resonance name with ‘Launched in 1984’ baseline. Even the tracksuits were branded using the Resonance name and punch line. The jeans pockets also carried the ‘Resonance Jeans’ logo...........

Perspectives of Stakeholders

Customers

Rubina collected feedback from customers first after talking to few people in the management. The feedback of various products of resonance was varied and needed to be examined thoroughly before Rubina could make some recommendations to Sanjeev, related to marketing in general, and customer relationship management in particular............

Channel

Resonance did not operate through franchisees but has preferred a company owned retail format. Resonance had its own outlets at Delhi, Chandigarh, Jalandhar, and also Amritsar. It however also sold through dealers, which were either multi-branded showrooms or smaller retail outlets who ran their own brands.............

Competitors

Compared to North Lane, an outlet of one of the leading business conglomerates of India , it seemed that Resonance needed to work a lot towards effective Customer Relationship Management (CRM). The North Lane offered ‘Lane Loyalty’ cards as an incentive to buy again and offered redeemable points on purchases and special birthday offers.............

Employees

Rubina also decided to meet some employees in the key showrooms of the company. She interacted with a couple of employees. Naina, one of the oldest employees, aged 57, had been with the organization since 1986. She recalled, “ In the eighties and nineties, no one in the market existed who could compete with us. In fact, there were hardly any competitors...............

Banks

Rubina also met the bankers of the company. The Chief Manager remarked, “Young girl, I think you need to infuse fresh blood and thinking into the organization. Look where the world is headed to and we have to necessarily accept that businesses are based on technology now.............

Past and Current Business Performance

In 2014-15, Resonance had reported just a 5% increase in sales turnover against the average of 15% plus growth in revenues in the last 20 years. The margins had also been below average and decreased as compared to those of 2013-14..............

The Predicament

Rubina could sense that all was not well. She had to collate all the information and present in such a way to the MD that she was able to push through changes. Customers and other stakeholders needed to be rejuvenated. A fresh way of looking at business had to be nurthured leveraging the huge experience of the organization. She needed to create a young core team who would spearhead the new initiatives once they were discussed and approved...........

The Path Ahead

Resonance had many challenges going forward. Would it be able to strengthen its position and keep Ludhiana proud of the strong brand that it had built? How fast can that be achieved was what mattered the most, felt Rubina.............

Exhibits

Exhibit-1: Comparison of some Parameters of Resonance Apparels and North Lane

Exhibit-2: Comparison of Some Financial Aspects for Resonance Apparels and North Lane (for the financial years 2013-14 and 2014-15)

Exhibit-3: Comparison of CRM Investments for Resonance Apparels and North Lane

Teaching Note Preview

Resonance Apparels: Jumping to the Next Orbit using CRM

 

Case Synopsis

The case ‘Resonance Apparels: Jumping to the Next Orbit using CRM’ is meant for students of marketing specialization of post-graduate courses in management. It is especially aimed at making the students learn some concepts related to Customer Relationship Management (CRM).

The Resonance group was started by Mr. Sanjeev Kumar (Sanjeev), a Ludhiana-based entrepreneur in 1984. His flagship organization in the branded garments business, Resonance Apparels (Resonance), had been instrumental in taking the group to great heights. The target market of Resonance range of apparels has traditionally been the student community. The company had been operating through a company-owned retail format instead of a franchisee model. It also has been selling through multibranded showrooms and smaller retail outlets to ensure wider availability.

However, in 2015, market conditions had become difficult. It seemed that Resonance will either have to take on its major competitors head-on or find its own niche in the space of big brands. Sanjeev had asked his 24-year old daughter, Ms Rubina Kumar (Rubina), to join the business as her executiveassistant. Rubina had been given the mandate to put the apparels business in the next orbit. Her father had communicated her that he expected vibrant views and innovative thoughts from her which could regain the market share of Resonance. The competitors had become stronger over a period of time by strengthening their brands through a good understanding of their customers and developing close relationships with them. Rubina had to look for ways to increase the mindshare of Resonance and improve customer relationships.

Learning (Pedagogical) Objectives

  • • To understand the concepts of CRM
  • • To examine how companies engage in developing and sustaining relationships with retail consumers, by the use of CRM software and systems and by other means
  • • To compare and analyze how companies that use CRM more effectively can perform better

 

Assignment questions

The comparison of CRM environment, including its systems and practices, as prevalent in the two organizations, namely, Resonance Apparels and North Lane forms the theoretical anchor (main concept) point in the case. The central problem in the case is that of increasing the marketing effectiveness and relationship equity of Resonance around which most of the discussion in the class can revolve...........

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Abstract

The Resonance group was started by Mr. Sanjeev Kumar (Sanjeev), a Ludhiana-based entrepreneur in 1984. His flagship organization in the branded garments business, Resonance Apparels (Resonance), has been instrumental in taking the group to greater heights. However, in 2015, market conditions have become difficult. He has foreseen that Resonance will either have to take on its major competitors head-on or find its own niche in the space of big brands. He has asked his 24-year old daughter, Ms Rubina Kumar (Rubina), to join the business as her executive-assistant.

Rubina has been given the mandate to put the apparels business in the next orbit. Fresh after a bachelor's degree in Fashion Design and Technology, she has been wondering if she would be able to achieve the goal. She did not have the experience of running a business. However, she has gained confidence because of her exposure to three businesses in the same sector during her internships. The company has not created HR and IT departments yet, because the scale of operations has been small.

The target market of Resonance range of apparels has been traditionally been the student community. The company operates through a company-owned retail format instead of a franchisee model. It also sells through multi-branded showrooms and smaller retail outlets to ensure wider availability.

The competitors have become stronger over a period of time by strengthening their brands through a good understanding of their customers and developing close relationships with them. Rubina has decided to increase the mindshare of Resonance and improve customer relationships. She has asked her core team to make a presentation to her based on inputs from customers and competitors.



Pedagogical Objectives

  • To learn about Customer Relationship Management practices
  • To suggest ways to the management of Resonance to improve their customer relationships and the brand’s positioning

Case Setting and positioning
This case study can be used in the MBA Program for Customer Relationship Management (CRM) and Brand Management courses. It may also be used in Organization Behavior course to discuss the importance of training, empowerment and engagement of employees.


* GSMC 2016, IIM Raipur

This Case Pack Includes:
- Abstract
- Case Study
- Teaching Note (**ONLY for Academicians)
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