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Assignment 1 Part 2

The document presents a detailed analysis of Westside, a retail chain under the Tata Group, focusing on its PESTEL and 4 Ps marketing strategies. It highlights Westside's strengths, weaknesses, opportunities, and threats, along with its marketing strategies targeting the middle to upper-middle class demographic. The PESTEL analysis specifically addresses the political, economic, social, technological, and environmental factors influencing Westside's operations in the UAE market.
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0% found this document useful (0 votes)
7 views

Assignment 1 Part 2

The document presents a detailed analysis of Westside, a retail chain under the Tata Group, focusing on its PESTEL and 4 Ps marketing strategies. It highlights Westside's strengths, weaknesses, opportunities, and threats, along with its marketing strategies targeting the middle to upper-middle class demographic. The PESTEL analysis specifically addresses the political, economic, social, technological, and environmental factors influencing Westside's operations in the UAE market.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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IDM ASSIGNMENT1

Semester 6

Topic- PESTEL Analysis and 4 Ps of Westside

Submitted By-
Pingili Roshni Reddy (BFT/22/149)
Sheetal (BFT/22/166)

Dated- 20.03.2025

Department of Fashion Technology (DFT)


National Institute of Fashion Technology (NIFT)
(Ministry of Textiles, Govt. of India)
Jaihind Enclave, HITEC City, Hyderabad, Telangana
500081
About Westside
Established in 1998 as part of the Tata Group, Trent Ltd. operates Westside, one of India's largest
and fastest growing chains of retail stores.

Our vision is to design and deliver fashion & lifestyle brands, while always keeping it fresh. We
are young, agile, risk-takers who love including everyone in this exhilarating journey. With over
200 outlets across Westside, Zudio, Misbu and Star Bazaar -- bringing a modern retail experience
to India is our beat.
At Trent we are excited about fashion, food, beauty, home and technology. We are about fast,
clean and innovative retail that makes the little things we do seem so stylish yet so effortless.
Being part of the TATA fold, our core values echo sustainability, compliance and engaging in
mindful business.
 1952: Tata entered the cosmetics business through Lakme ltd
 1996: Lakme entered into joint venture with Hindustan lever
 1997: Tata Sold their stake in Lakme to HLL for Rs. 2 billion
 1998: The Tata's ventured into retailing and acquired the Britain-based Littlewoods retail
store in Bangalore
 1999: Westside expanded its operations to Chennai, Mumbai, and Hyderabad.
 2000: During the Diwali season, Westside launched a festival of delights program
 2001: It had a second store in Mumbai, Pune, Kolkata and Delhi. It had average sales of
above Rs.5000 per sq. feet
 2002: Store in Nagpur and second store in Delhi and signed Yuvraj Singh as his celebrity
endorser
Four p's of marketing
1. Product
Westside stands out from the competition for a variety of reasons. One is that a majority
of the brands the it stocks and sells are its in-house Brand "Westside' unlike retailers who
store multiple labels.

These include Menswear, Women's wear, Kid's wear, Footwear, Cosmetics, Perfumes and
Handbags, Household Accessories, lingerie, and Gifts.

For women, there are casuals, formals and chic Indian wear. The range has great depth
spanning from basic clothing to very trendy wear. Unlike a lot of stores, the range at
Westside caters to a wide age group and takes into account differing tastes and
requirements. We offer accessories as well, such as handbags, jewellery, scarves and hair
accessories.

In menswear, the range goes from formal to casual and sporty. And, pricewise, it extends
from the value to the premium segment.

Kids wear at Westside is designed to follow international trends; it is uniquely styled,


whether you opt for the dressy, smart or casual.

Corporate clothing is a major component of Westside merchandise. The emphasis here is


on the three Cs: comfort, crispness and coordination, and the goal is to provide the
complete corporate look, where color, clothes and accessories are mixed and matched in a
manner that creates harmony between the person and the clothes he or she wears.

Gia, Westside's brand for larger-sized requirements, was the outcome of one such need
Westside has recently expanded its range of merchandise by offering outfits from some of
India's best known fashion designers, among them Wendell Rodericks, Anita Dongre,
Krishna Mehta and Mona Pali. This is an interesting marketing shift, since it means
moving away from the chains only-our-own-brands concept.

 Men: Casual, Formal, Sports,


 Women: Indian Wear, Formals, Casual, Sports, Plus Size
 Kids: Infants (0-2 years), Junior (2-6 years), Seniors (7-14 years)
 Toys
 Cosmetics: Revlon, Chambor, Bourjois
 Accessories: Handbags, Scaves
 Home furnishing: Westside
 Private Brands in Westside: 2F4U, RC, Gia, Urban angel, Intima, David jones, Ascot,
Black berry, Lee, Spykar, Provogue
 Plus Size: Gia
 Handbags: Fiorelli
 Footwear Brands: ID, Provogue, Lee Cooper, Westsports, Head over Heels
 Accessories: Westside, Kalgi, Titan, Zuni, Esprit, Fast Track, Pierre Cardin

2. Price
Men:
i. Casual: Rs399-Rs 899 (Approx)
ii. Formal Shirts: Rs 699 - Rs 1700
iii. Blazers: Rs 3500 onwards
iv. Trousers: Rs 699- Rs 1399
v. Sports: Rs 399 onwards
vi. Nuon: T-shirts: Rs 199
vii. Jeans: Rs 699
viii. Trousers: Rs 899
Women:
i. Indian: Rs 349 onwards
ii. Western: Rs 199 onwards
iii. Sports: Rs 399 onwards
iv. Kids: Infants (0-2 years) - Rs 199 onwards
v. Junior (2-6 years)- Rs 199 onwards
vi. Seniors (7-14 years)- Rs 199 Onwards
vii. Footwear: Men's Shoes: Rs2500 onwards
viii. Women's Slippers: Rs 399 onwards

3. Place

Westside has over 41 departmental stores measuring 15,000-30,000 square feet each in
across 23 cities as follows:

Ahmadabad, Bengaluru, Chennai, Delhi, Gurgaon, Ghaziabad & Noida, Hyderabad,


Indore, Jaipur, Kolkata, Ludhiana, Lucknow, Mumbai, Mysore, Nagpur, Nashik, Pune,
Rajkot, Surat, Vadodara and Jammu.
4. Promotion
1. Club west card program:
Club West is a two-tier program which consist of Club West Classic and Club West Gold
(a) Club West Classic: A purchase of Rs 2000 on same day entitles a complimentary
membership into Club West Classic. Alternately you can enroll by paying a nominal fee
of R$ 150/
(b) Club West Gold: A purchase of Rs 5000 on same day entitles a complimentary
membership into Club West Gold
Club West is a customer loyalty programme launched in May 2001. The 30,000-plus members of
this club get rebates at restaurants and on holiday packages from the Taj Group of Hotels, home
delivery of alterations, and best of all, special shopping hours on the first day of any discount
sales event organized by the chain.

Benefits of the card:


1. Earn points every time you shop at Westside. These points can be exchanged against
subsequent purchases made in the store.
2. A dedicated Clubwest desk for a member's assistance at each of the stores.
3. Exclusive shopping hours only for members during sales.
4. Unprecedented access to a host of privileges and services through our exclusive tie-ups
from time to time.
5. Advance intimation of all in-store promotions and special offers through direct mailers.
6. Special discounts
7. Validity at all stores

2. Fashionlogy
Westside has launched a new ad campaign titled 'fashionlogy'. The campaign is designed to
provide the buyer with not just clothing, but also guides and aid on dressing smart, styling and
accessorizing. The campaign sees on-ground activities and promotions designed to interact with
the consumer about their style. It includes women's corporate wear, girls wear, glam denim.

3. An assured return-and-exchange policy reinforces customer confidence in the chain.


4. Westside does its regular brand building through advertisements in the media with brand
ambassador Yuvraj Singh and other young models; more important are its in-house promotions,
which peak during the three main festive seasons: summer, Diwali and Christmas. The
promotions are mostly theme based, with decorations to match, live bands and other attractions

5. Gourmet West:
A range of dining discounts at select multi-cuisine restaurants to its Clubwest Membership Card
holders at any of the participating restaurants for exclusive discounts and offers on food and
beverages, courtesy of Westside.

6. Online newsletter:
1. Get useful information and tips about the hottest styles and the latest trends.
2. Get to know about different Westside Products
3. Update on Westside offers, events and other exciting stuff, free shopping vouchers,
Westside Gift hampers, etc.

8. It provides post purchase service including shipping & delivery, gift wrapping,
adjustments & returns, alteration & tailoring

MARKETING STRATEGY

Segmentation, Targeting and Positioning

The age group of people visiting the store is in between 18-40. (Upper
middle and middle class) The attraction of the shopping is basically the
female population. The movement of men's apparels is also due to the
ladies buying for the men.

SEGMENTATION:

Middle Class to Upper Middle Class

TAGETING:

Kids (Infants -14 years), Youth (14 years to 21 years, women and men (18
years to 40 years)

POSITIONING:

"Fashion at affordable pricing"


Westside is increasing brand awareness among consumers, and
enhancing the image of Westside as a retailer offering fashionable
products at affordable prices.

Analysts attributed Westside's success to its focus on styling, affordability


and quality, and its retail model. By retailing own Westside brand it is
being able to eliminate intermediaries and therefore offer better prices.
Westside is unique with its own brand of merchandise, which is trendy and
individualistic. It caters to the shopper who values not just the product but
the total shopping experience

SWOT Analysis of Westside


Strengths:
 Rapid business growth and expansion.
 Strong brand reputation backed by the TATA Group.
 Established loyal customer base.
 Affordable pricing, making fashion accessible.
 Attractive promotional offers and heavy discounts.
 High-quality branded products ensuring customer satisfaction.
 Strategic store locations providing a competitive edge.

Opportunities:
 Expanding into untapped markets with high growth potential.
 Increasing disposable income leading to higher spending on fashion.
 Rising preference for organized retail and branded apparel.
 Potential for e-commerce and omnichannel expansion.
 Growing demand for sustainable and ethical fashion.

Threats:
 Intense competition from both international and domestic retail brands.
 Price wars and market saturation due to established players.
 The rise of online fashion platforms, shifting consumer buying behavior.
 Challenges from local retailers offering customized products at competitive prices.
 Urbanization influencing shopping habits and retail formats.

Weaknesses:
 Limited product range catering to middle-income groups.
 Challenges due to changing political and regulatory environments.
 Difficulties in securing retail spaces and real estate for expansion.
 Need for relaxed labor laws and operational concessions.
 Lack of strong brand differentiation in an oversaturated market.
 Inefficient inventory management, leading to stock shortages and excesses.

PESTEL Analysis for Westside in the UAE


1. Political Factors
Understanding the UAE’s political environment is crucial for setting up a retail business.
 Government Stability: The UAE has a stable political environment with pro-business
policies, making it an attractive location for foreign investment. The government actively
promotes the retail sector, particularly in Dubai and Abu Dhabi.
 Foreign Direct Investment (FDI) Laws: Traditionally, foreign companies needed a local
sponsor (51% ownership by a UAE national) for mainland business. However, setting up
in a free zone allows 100% foreign ownership, which might be beneficial.
 Taxation Policies:
o The UAE has zero corporate tax for most businesses (except large multinational
companies).
o Value Added Tax (VAT) of 5% applies to all retail goods.

o Import duties on textiles and garments are around 5%, but rates may vary based
on Free Trade Agreements.
 Trade Agreements: The UAE has trade agreements with countries like India, which
could benefit Westside in terms of reduced import duties on clothing.
 Employment Laws:
o Strict labor laws require businesses to provide proper visa sponsorship,
accommodation, and health benefits for employees.
o Expats dominate the workforce; hiring must comply with minimum wage laws
and work permit regulations.
 Business Licensing: Westside would need approvals from the Department of Economic
Development (DED) if setting up in Dubai, or relevant authorities in other emirates.

2. Economic Factors
Economic stability, consumer spending power, and market conditions will impact Westside’s
success.
 Economic Growth:
o The UAE is one of the fastest-growing economies, with Dubai and Abu Dhabi
being retail hubs.
o The retail sector contributes significantly to the GDP, and demand for fashion and
lifestyle products remains high.
 Consumer Spending Power:
o The average income is high, especially among expats and locals.

o UAE consumers prefer quality and brands, which can work in Westside’s favor if
positioned correctly.
 Inflation & Exchange Rates:
o AED is pegged to USD, which provides currency stability and reduces foreign
exchange risks.
o Inflation is moderate, but costs of rents, utilities, and logistics should be factored
into pricing strategies.
 Competitive Market:
o International brands like H&M, Zara, Mango, and Splash dominate the market.

o Westside must differentiate through pricing, product range, and a strong in-store
experience.
 Tourism Impact:
o Dubai and Abu Dhabi attract millions of tourists yearly, increasing retail sales.

o Stores in malls, airports, or tourist hotspots could benefit from high foot traffic.

3. Social Factors
Understanding UAE’s culture, consumer behavior, and lifestyle preferences is key.
 Consumer Preferences:
o UAE consumers prefer a mix of modest fashion and trendy styles, so Westside
should balance Indo-Western designs with regional preferences.
o There’s demand for affordable yet stylish clothing, similar to competitors like
Splash and H&M.
 Cultural Sensitivities:
o Clothing lines should cater to the modesty preferences of Emirati and Muslim
shoppers. Offering abaya-style dresses, maxi dresses, and modest wear can attract
a larger customer base.
o Avoiding revealing clothing in advertisements is necessary to comply with UAE
regulations.
 Expat Population Influence:
o The UAE has a large Indian, Pakistani, Filipino, and Western expat population
who prefer casual and fusion wear.
o Westside can target these demographics by offering clothing that blends Indian
heritage with contemporary designs.
 Shopping Trends:
o Consumers prefer mall shopping experiences, making locations like Dubai Mall,
Mall of the Emirates, and Yas Mall ideal for Westside.
o Buy Now, Pay Later (BNPL) services like Tabby and Postpay are popular among
younger shoppers.

4. Technological Factors
Leveraging technology can improve operations and customer experience.
 E-commerce & Digital Retail:
o UAE’s e-commerce market is growing rapidly, with Amazon.ae and Noon leading
the sector.
o Westside must have an online store with omnichannel integration (mobile app,
website, and in-store shopping experience).
 Payment Systems & Digital Transactions:
o UAE consumers prefer contactless payments, Apple Pay, and cryptocurrency
adoption is increasing.
o Integrating flexible payment methods like BNPL (Buy Now, Pay Later) can boost
sales.
 AI & Personalization:
o AI-powered recommendations, virtual try-ons, and smart mirrors in stores can
enhance customer experience.
o Personalized shopping experiences using data analytics can improve customer
retention.
 Logistics & Supply Chain:
o Fast delivery is expected due to Amazon and Noon setting high benchmarks.

o Warehouse and inventory management must be optimized to reduce lead times.

5. Environmental Factors
Sustainability is gaining traction in the UAE retail sector.
 Sustainability & Ethical Fashion:
o UAE consumers are becoming eco-conscious and prefer brands that focus on
sustainable production.
o Westside can introduce a sustainable clothing line to attract environmentally
aware shoppers.
 Waste Management & Recycling:
o The UAE government encourages businesses to adopt circular fashion and textile
recycling initiatives.
o Retailers like H&M have taken-back schemes; Westside can explore similar
programs.
 Energy Efficiency in Stores:
o Malls in Dubai and Abu Dhabi are adopting green building standards.

o Westside can focus on energy-efficient lighting, digital receipts, and paperless


billing to align with sustainability goals.

6. Legal Factors
Ensuring compliance with UAE’s retail and business laws is essential.
 Business Licensing & Permits:
o Required from the Department of Economic Development (DED) for mainland
stores.
o Free zones (e.g., Dubai Design District, JAFZA) offer 100% foreign ownership
but have restrictions on retail.
 Consumer Protection Laws:
o Refund, exchange, and warranty policies must comply with UAE’s Consumer
Protection Law.
 Advertising & Marketing Regulations:
o Ads should comply with modesty laws; avoid indecent clothing in visuals.

o Social media promotions must follow UAE’s Cybercrime Laws to prevent


misleading claims.
 Employment & Labor Laws:
o Employees must receive proper visa sponsorship, salary protection, and benefits
as per UAE labor laws.
 Intellectual Property (IP) Protection:
o Registering Westside’s trademarks and brand identity in the UAE protects against
counterfeit products.

Final Thoughts & Recommendations


1. Location Strategy: Prioritize stores in premium malls like Dubai Mall, Mall of the
Emirates, or Yas Mall.
2. Product Strategy: Introduce modest fashion, fusion wear, and sustainable collections.
3. Pricing & Payment Options: Offer BNPL, loyalty programs, and exclusive online
discounts.
4. Marketing Strategy: Focus on social media, influencer marketing, and AI-powered
personalization.
5. Compliance & Sustainability: Ensure legal compliance, waste reduction, and ethical
sourcing.

If you plan to open a Westside store in the UAE, you need to modify the 4 P’s of Marketing to
align with the preferences, expectations, and regulations of the UAE market. Here’s how the
strategy can be adapted:
1. Product
Westside should curate its product mix to match the fashion preferences and cultural expectations
of UAE consumers:
 Modest Fashion: Introduce a dedicated collection of modest wear for women, including
abayas, kaftans, hijabs, and long tunics that cater to the Middle Eastern market.
 Luxury Appeal: Since the UAE has a high demand for premium and luxury fashion,
Westside can introduce exclusive collections with premium fabrics, embroidery, and
Middle Eastern-inspired designs.
 Local Weather Consideration: Focus on breathable fabrics like linen, cotton, and
lightweight materials to suit the UAE’s hot climate.
 Men’s and Kidswear Expansion: Offer traditional Emirati-inspired clothing
alongside global fashion trends.
 International Brands Collaboration: Collaborate with European and Middle Eastern
designers to attract fashion-conscious buyers.
 Beauty & Fragrance: Include more luxury perfumes and international cosmetic
brands, as beauty is a significant market in UAE.
2. Price
The pricing strategy in UAE should be adjusted to cater to the diverse consumer base:
 Premium & Mid-Range Pricing: UAE has a mix of luxury and budget-conscious
shoppers, so Westside should offer a "bridge pricing" strategy—affordable essentials
and higher-end premium collections.
 Exclusive Membership Pricing: Introduce VIP memberships with added perks such as
exclusive discounts, personal styling, and invitations to private shopping events.
 Seasonal Promotions: Offer special pricing during peak shopping seasons, such as
Ramadan, Eid, and Dubai Shopping Festival (DSF).
 Bundle Offers: Introduce combo deals such as "Buy 2, Get 1 Free" to encourage bulk
purchases.
3. Place
The store locations in the UAE should be in high-footfall, premium shopping destinations:
 Prime Shopping Malls: Westside should open flagship stores in top malls like Dubai
Mall, Mall of the Emirates, Yas Mall, and Abu Dhabi Mall to attract high-end
shoppers.
 Duty-Free Expansion: Setting up a presence in Dubai Duty-Free would cater to
international tourists looking for trendy yet affordable fashion.
 Omnichannel Presence:
o E-commerce: A dedicated Westside UAE website and app for online shopping.

o Same-day delivery & express shipping to match the UAE’s fast-paced lifestyle.

o Click & Collect service for seamless online-to-offline shopping.

 Local Stores in Residential Areas: Smaller format stores in expat-heavy areas like
Jumeirah, Marina, and Mirdif.
4. Promotion
To attract UAE consumers, Westside’s marketing strategy should focus on a mix of traditional
and digital channels:
 Influencer Marketing: Collaborate with local influencers and fashion bloggers (e.g.,
Huda Kattan, Karen Wazen) to promote collections.
 Exclusive Ramadan & Eid Collections: Launch special festive collections with
traditional embroidery and modest designs.
 Luxury Store Experience: Personalized styling services, private shopping lounges,
and VIP experiences.
 Dubai Shopping Festival (DSF) & Summer Surprises Participation: Offer huge
discounts and exclusive collections during these major shopping events.
 Social Media & Digital Campaigns:
o Arabic & English social media campaigns for broader reach.

o Live fashion shows on Instagram & TikTok.

 Westside Rewards Program: A loyalty program where UAE shoppers earn points and
access VIP discounts.

If you want to open a Westside store in the UAE, the Segmentation, Targeting, and Positioning
(STP) strategy should align with the market's demographics, purchasing power, and preferences.
Here’s how you can adapt it:
SEGMENTATION (Who are the potential customers?)
1. Income-Based: Middle Class to Upper Middle Class and Affluent Consumers
2. Demographic-Based:
o Emirati and Expatriate Population (Indian, Pakistani, Filipino, Arab, and
Western expatriates)
o Tourists looking for affordable fashion

3. Psychographic-Based:
o Fashion-conscious buyers who seek quality at affordable prices

o Trend-driven shoppers who prefer international-style clothing

o Family shoppers looking for variety under one roof

TARGETING (Who will you focus on?)


 Kids: Infants to 14 years (Growing demand for branded kidswear in UAE)
 Youth: 14 to 25 years (Fashion-driven buyers, including university students and young
professionals)
 Men & Women (18 to 45 years):
o Working professionals looking for office and casual wear

o Women as the key shopping decision-makers for families

o Tourists seeking trendy, affordable clothing and accessories

POSITIONING (How will Westside be perceived?)


"Trendy and affordable fashion for all"
 Affordable yet stylish: Positioned as a mid-range brand that delivers stylish clothing
without luxury price tags
 Quality & Variety: Westside’s own private labels ensure quality and exclusivity
 Convenient & Family-Friendly Shopping: A one-stop shop for fashion, accessories,
and homeware, appealing to UAE’s family-oriented shoppers
 Cultural Sensitivity & Inclusivity: Offering modest wear (like Abayas, long dresses)
alongside modern Western wear to cater to diverse tastes
This STP strategy aligns Westside with UAE’s diverse consumer base, high fashion
consciousness, and growing demand for affordable retail brands while maintaining its strong
brand identity.

Conclusion

Westside's expansion into the UAE is a promising opportunity, given the country's strong
economy and high consumer spending. However, competition from global brands like H&M and
Zara requires strategic differentiation. Adapting to local cultural preferences, offering modest
fashion, and catering to the diverse expat community will be key. Leveraging technology through
omnichannel retail and flexible payment options can enhance customer engagement.
Sustainability and compliance with UAE regulations are also crucial. By focusing on innovation,
cultural alignment, and digital growth, Westside can establish a strong foothold in the UAE
market.

-THANK YOU-

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