Koutons India Retail Ltd.

Summary

On a very unique strategy, Koutons Retailing ran their strategies through deep discounting. It is a pricing strategy where noticeable discounts mostly mind blowing is offered by the brand on an extraordinarily high Maximum Retail Price. Discount scheme, where 50% and 40 % less than retail prices were offered, Koutons managed to attract customers towards the their propositions for availing the enormous discounts. Through these premium discounting offers, customers have been satisfied for more than 20 years or in other words, the low price/discount strategy works well for the last 20 years, however, for consumers, 20 years is pretty extended time to become experienced at the discounting model. The declining sales started and the building up of cost and inventory was rising to a warning level. Revenues started sliding with the follow up of more discounts. The company has now started facing the financial trouble. The reputation of other established brands' discount outlets and the issues of quality at Koutons led the road for the other brand. Issue of huge debts and inventory mismanagement are also the part of problem, which has to be handled by the company.

Executive Review

Customers, in todays global marketing arena, constantly seeks advantages in a more rational way than ever. It is therefore evident for orgnanizations, specifically those, dealing directly with the customer to give them not only value through their discount proposition but also should strive to keep their marketing offering and credibility up to the mark through their quality and other type of propositions. The results divulge that generally people tend to move to other competitors, which is mostly to a never tried ones but in-depth studies of the two major demographics elaborate that generalized view might be different from the clustered view, which might turn out to be the most powerful prospects of the Koutons Retail India Limited and hence help the them in more rational way to take their strategic marketing decisions.

Koutons India Retail Ltd.

Problem and Assumptions

In today's dynamic strategic marketing environment, retail giants and their marketing and product proposition are so susceptible that they have to think twice before making any marketing decisions, such as discounts and the expansion through debts, which was made by the Koutons India Retail Ltd about their future marketing plans and also for their products and services. Even the corporate giants similar to Koutons Retail India Limited and their strategic business units are slammed with declining marketing equity to a level, where they literally encountered bankruptcy and even shutdowns or takeovers, because of their wrong decision related to discount and quality cut down. These recent corporate breakdowns have popped up a dilemma that whether majorly, the marketing myopia, is leading such organizations to a shorter lifecycle or is it because of the discrepancy that is found between the financial/product value that is promised to the customers and the one that customers actually encounter. Converging to the Retailing products, which are also the highest portion of the consumers' marketing market, it becomes vital ...