Raymond Group is one of the most famous Indian fashion retailer and fabric brand, established in 1925. It is involved in producing the fabrics for suits, with the capacity of around 31-32 million meters of wool-blended fabrics and only wool. The managing director and chairman of the Raymond Group is Gautam Singhania. Raymond Group owns many apparel brands such as; Raymond Premium Apparel, Raymond, Park Avenue, ColorPlus, Park Avenue Woman, and Parx. These all are retailing brands through TRS-The Raymond Shop, with the network of about 700 retail outlets across the worldwide including India. It is present in around 200 cities. Furthermore, the Raymond Group also diversified its business interests in the designer wear, readymade garments, toiletries, cosmetics, engineering tools and files, air charter operations and prophylactics (Raymond, 2018).
As the company has diversified its risks in several fields, it is necessary for it to analyze the profitability of every business, to make further decisions about which business to continue and which to shut the operations. This is easily possible with the help of the BCG matrix, as the tools is used for evaluating the strategic position of the company and the product portfolio (David, 2018). The detailed BCG analysis of the Raymond Group is as follows;
Cash Cows
In every company’s product portfolio, there are few categories, which generate enough revenue for the company in order to regulate the operations and management. Such products are cash cows for the company that has high market share and low market growth. Thee high demands of the consumers helps in facilitating the products as the cash cow. Raymond Home and Manzoni are the cash cows of Raymond Group. Most of the revenue comes from them, and reinvest in other businesses or in it. Consumers prefer them because of it excellent quality and reasonable prices, which no other competitor is offering (Drisya, 2012).
Stars
These are the products, which have reached to the maturity stage, and have high market share along with high market growth rate. These items do not bring such revenue as cash cows bring, but possess the good future prospects for the business. This encourage the companies to be consistent with their investment. Color Plus, Park Avenue, and Parx are the stars of the Raymond Group. These are consider as the most innovative brands who offers premium, casual and formal dresses for both men and women. Further investment can turn it into cash cows because of its market position and strong brand equity (Prusty, 2017).
Question Marks
These are also known as problem child, which means they have the high growth rate, but cannot generate enough profit because of the low market share. The products or the business is still struggling in growth stage, but the growth phase reflects on the chances of it to be stars or cash cows if the decisions are made in the right direction. Made to measure and Makers are the question mark for the Raymond Group, because of tough competition in the market. There are several brands offering the same service in low prices, which are mostly preferable by the customers. If the investment is made with effective strategies, this could be the star items (Prusty, 2017).
Dogs
This category has the products who do not generate high volume of sales or revenue, neither have they had high growth rate for establishing the notable market share in the industry. Business or the industry is gradually progressing and has little chances of development. However, environmental factors also influence the industry. Zapp is the dog item for the Raymond Group. It is the kid wear because of the high termination cost. The brand was under-performing (Bureau, 2010).
References
Bureau, I. 2010. Raymond closes kids wear brand Zapp. [Online], Available at: https://www.indiaretailing.com/2010/10/28/retail/raymond-closes-kidswear-brand-zapp-2/, [Accessed on: 5th September, 2018].
David, 2018. Marketing theories- Boston Consulting Group Matrix. [Online], Available at: https://www.professionalacademy.com/blogs-and-advice/marketing-theories—boston-consulting-group-matrix, [Accessed on: 5th September, 2018].
Drisya, 2012. Raymond. [Online], Available at: https://www.slideshare.net/DRISYA.N.P/raymond-13458876?next_slideshow=1, [Accessed on: 5th September, 2018].
Prusty, A. 2017. Raymond Business strategy. [Online], Available at: https://www.slideshare.net/AmareshPrusty/raymond-business-strategy, [Accessed on: 5th September, 2018].
Raymond, 2018. The Raymond Group. [Online], Available at: http://www.raymond.in/theraymondgroup?subcat=130, [Accessed on: 5th September, 2018].