आख़िर एक सामान्य से कपड़े के व्यापारी ने कैसे बना डाला 30,000 करोड़ का ब्रांड? | Manyavar Case Study

Summary

The video script narrates the inspiring journey of Ravi Modi, who transformed a small clothing store into the renowned Manyavar brand, worth Rs 30,000 crores, with 600+ stores globally. Modi's business acumen, starting with a Rs 10,000 capital and a Rs 20,000 loan from his father, led to his rise as the 50th richest person in India. The script delves into four business strategies and seven lessons, emphasizing practical insights over formal education. It highlights the importance of early business exposure, leveraging market gaps, and the power of branding and marketing. The case study showcases Manyavar's unique growth through strategies like FOFO (Franchise Owned Franchise Operated), data analytics, and reinvestment in marketing, proving that with the right mindset and strategies, one can achieve significant business success.

Takeaways

• 💼 **Self-Reliance**: Ravi Modi's story exemplifies how a small businessman can grow a brand to a multi-billion-dollar enterprise without loans or investors, solely through hard work and business acumen.
• 🛍️ **Market Gap Identification**: Modi recognized a gap in the market for Indian and ethnic wear, which was dominated by Western trends, and capitalized on this insight to create a unique brand identity for Manyavar.
• 👕 **Cross-Selling and Up-Selling**: A key sales strategy employed by Modi was to sell more than what the customer initially intended to buy, a concept he learned from practical experience rather than formal education.
• 🏢 **Starting Early**: The script emphasizes the importance of starting businesses at a young age to gain early market understanding and experience, as seen with Haldiram and Warren Buffett.
• 🤝 **Family Business Dynamics**: Disagreements in family businesses can lead to new opportunities, as evidenced by Modi's decision to start his own venture after a dispute with his father.
• 🔑 **Business Expansion Models**: Manyavar adopted different business models like LFS, COCO, FOCO, and FOFO to manage growth, with FOFO proving to be the most effective for rapid expansion.
• 🎬 **Power of Branding and Marketing**: The brand's success is attributed to strategic marketing, including in-theater advertising, celebrity endorsements, and targeted campaigns that resonate with various customer segments.
• 💰 **Reinvestment Strategy**: Modi reinvested profits back into the business, focusing on marketing and growth rather than personal luxury, which contributed to the company's exponential success.
• 📈 **Data Analytics**: Utilizing data analytics to understand customer preferences and behaviors allowed Manyavar to minimize wastage and maximize sales, with only a 3% unsold rate.
• 🚀 **Choosing the Right Niche**: The importance of entering a field with low competition and high potential for growth is highlighted, as it allows for significant market capture and less rivalry.
• 🌟 **Belief in Success**: The script concludes with the motivational message that belief in one's ideas and the willingness to learn from the market can lead to remarkable business success.

Q & A

What was the initial capital that the businessman started with for his clothing store?

The businessman started with an initial capital of just Rs 10,000 for his clothing store.

How much was the brand worth after 23 years and how many stores did it have?

After 23 years, the brand was worth Rs 30,000 crores and had 600 Indian stores along with more than 12 international stores.

What is the name of the brand that the businessman created?

The name of the brand that the businessman created is Manyavar.

What was Ravi Modi's personal net worth and his ranking among the richest people in the country?

Ravi Modi's personal net worth was 20 thousand crores, and he was the 50th richest person in the country.

What is the concept of 'Cross Sell and Up Sell' as mentioned in the script?

The concept of 'Cross Sell and Up Sell' refers to selling additional or complementary products to a customer who is making a purchase. 'Cross-sell' involves selling a related product that is different from the original purchase, while 'up-sell' involves selling more or higher-value products to the same customer.

What is the business lesson number one according to the script?

Business lesson number one is that if you want to start a business, it's essential to understand that business is about common sense, practicality, and market understanding. It's better to start as soon as possible and learn from real-life experiences.

What was the insight that Ravi Modi had which led to the creation of Manyavar?

Ravi Modi's insight was that the market was saturated with Western wear, and there was a gap for Indian and ethnic trends which were not being adequately addressed. He decided to focus on this niche, which eventually led to the creation of Manyavar.

What is the meaning of the acronym FOFO as used in the script?

FOFO stands for 'Franchise Owned Franchise Operated'. This is a business model where the franchisee owns and operates the store, while the parent company is responsible for design, marketing, and supply chain.

What is the significance of the strategy 'Re-investment in Business' as mentioned in the script?

The strategy 'Re-investment in Business' emphasizes the importance of reinvesting profits back into the business for growth and marketing. It highlights the idea of prioritizing business expansion over personal luxuries.

What is the role of data analytics in Manyavar's business strategy?

Data analytics plays a crucial role in Manyavar's business strategy by helping them understand customer preferences, behaviors, and trends. This information is used to manage inventory, reduce wastage, and tailor marketing efforts effectively.

What is the final business lesson mentioned in the script and why is it important?

The final business lesson mentioned is 'You Can Do It'. It emphasizes the importance of self-belief and the idea that with the right mindset, understanding of the market, and hard work, anyone can achieve success in business, regardless of their background or initial resources.

Outlines

00:00

🚀 Entrepreneurial Success: From Small Business to Billion-Dollar Brand

The script narrates the inspiring journey of Ravi Modi, who transformed a modest clothing store into a Rs 30,000 crore brand, Manyavar, in just 23 years. Starting with a mere Rs 10,000 capital and a Rs 20,000 loan from his father, Modi built a business empire with 600 Indian and over 12 international stores, selling more than 40 lakh pieces annually. The case study emphasizes the importance of hard work, business acumen, and a strong mindset. It outlines four business strategies and seven lessons, encouraging aspiring entrepreneurs to overcome challenges and achieve success without external loans or investor support.

05:02

🛍️ Business Expansion: From Family Dispute to Market Insight

The narrative delves into Ravi Modi's early business experiences, including disagreements with his father over business strategies and the decision to venture out on his own. Modi's insight into the untapped potential of Indian and ethnic wear led him to establish Manyavar, focusing on kurtas and pajamas. The story highlights the importance of identifying market gaps and acting on them, even in the face of family opposition. It also underscores the significance of branding and marketing in building a successful business, as well as the strategic decision to adopt the FOFO (Franchise Owned Franchise Operated) model to facilitate rapid expansion.

10:06

🎬 Marketing Mastery: Leveraging Celebrities and Media for Brand Growth

This section of the script discusses Manyavar's innovative marketing strategies, including targeted advertising in multiplexes and strategic brand endorsements. The company's association with high-profile figures like Virat Kohli and Anushka Sharma significantly boosted its brand value. The case study also illustrates the power of data analytics in understanding customer behavior and preferences, which helped Manyavar maintain a low unsold inventory rate. It emphasizes the importance of reinvesting profits into marketing to drive sales and the company's commitment to creating a unique brand identity for different market segments.

15:09

📊 Data-Driven Decisions and Strategic Growth

The final paragraph focuses on the strategic use of data analytics to minimize waste and maximize sales, with an unsold product rate of just 3%. It also touches on the company's outsourcing strategy, which allows for a high profit margin and return on investment. The script concludes with a motivational message, encouraging entrepreneurs to believe in their abilities and to choose business fields with low competition and high growth potential. The story of Ravi Modi serves as a testament to the power of vision, determination, and strategic planning in achieving business success.

Keywords

💡Entrepreneurship

Entrepreneurship refers to the process of designing, launching, and running a new business, which typically involves taking on various risks to create value. In the video's theme, it is the foundation upon which Ravi Modi built his brand Manyavar from a small clothing store to a multi-billion-dollar brand. The script illustrates this through Modi's journey, starting with a small capital and growing the business without loans or investors, purely on his business acumen and hard work.

💡Brand Building

Brand building is the process of creating a unique name, symbol, or design that identifies and differentiates a product in the eyes of customers. In the video, Ravi Modi's success in turning Manyavar into a recognizable brand is highlighted. The script mentions how Modi leveraged the power of branding to create a unique identity for Manyavar in the market, especially in the wedding and celebration wear segment, which helped in attracting customers and growing the business.

💡Market Strategy

Market strategy involves the methods a company uses to reach its target audience and compete effectively in the marketplace. The video discusses how Ravi Modi identified a gap in the market for Indian and ethnic wear, which was dominated by Western products. The script provides the example of Modi's decision to focus on Kurtas and Pajama, which was not a popular choice at his father's shop, but became a key market strategy for Manyavar's success.

💡Cross Sell and Up Sell

Cross selling and upselling are sales techniques used to increase sales by suggesting related or additional products to customers. In the script, Ravi Modi's father's shop is mentioned as a place where Modi learned these techniques early on. The concept is illustrated through the idea that selling one shirt to a customer is not enough; the goal should be to sell more, either by adding different products (cross-sell) or by selling more of the same product (up-sell).

💡Franchise Model

A franchise model is a business arrangement where one party (the franchisor) licenses its business model, brand, and systems to another party (the franchisee). The video script discusses the evolution of Manyavar's business model, starting from Large Format Stores to Company Owned Company Operated (COCO), then to Franchise Owned Company Operated (FOCO), and finally to Franchise Owned Franchise Operated (FOFO). The adoption of the FOFO model is highlighted as a key strategy that allowed Manyavar to expand rapidly.

💡Data Analytics

Data analytics is the process of examining data sets to draw conclusions about the information they contain. In the context of the video, Manyavar's use of data analytics is emphasized as a critical strategy for understanding customer preferences and market trends. The script explains how the company tracks sales data to determine which products, colors, and designs are popular in different regions and seasons, which helps in reducing unsold inventory and improving sales.

💡Marketing

Marketing is the activity of promoting and selling products or services, including market research and advertising. The video script discusses various marketing strategies employed by Manyavar, such as creating a strong brand identity associated with celebrations and weddings, advertising in multiplexes, and sponsoring IPL teams. The use of celebrities like Virat Kohli and Anushka Sharma for endorsements is also highlighted as a key marketing strategy.

💡Reinvestment

Reinvestment refers to the act of putting profits or earnings back into a business to support its growth and expansion. The script shares a story about Ravi Modi's decision to not buy a Mercedes with his early profits but instead to reinvest in his business. This strategy of reinvestment in marketing and business operations is presented as a key factor contributing to Manyavar's growth and success.

💡Business Lessons

Business lessons are insights or principles derived from experience or study that can guide decision-making and strategy in business. The video script outlines several lessons, such as the importance of starting a business with practical knowledge, the value of identifying market gaps, the benefits of franchising, and the power of branding and marketing. These lessons are presented as takeaways for viewers who wish to learn from Ravi Modi's success story.

💡Market Segmentation

Market segmentation is the process of dividing a market into subsets of consumers with similar needs or characteristics. In the video, Manyavar's strategy of creating different brands for different market segments is discussed. The script mentions brands like Manyavar for men, Mohey for women, Twamev for the upper-middle class, and Manthan for the lower class, illustrating how market segmentation can help a company cater to diverse customer groups effectively.

Highlights

A small businessman turned a Rs 10,000 capital into a Rs 30,000 crore brand in 23 years.

The brand, Manyavar, has 600 Indian stores and more than 12 international stores.

Founder Ravi Modi's personal net worth is 20 thousand crores, ranking him as the 50th richest person in the country.

The business was built without loans or investor support, relying solely on hard work and business acumen.

Ravi Modi learned sales strategies like 'Cross Sell and Up Sell' from real-life experience rather than formal education.

Business Lesson 1: Start a business with common sense, practicality, and an understanding of the market.

Ravi Modi's initial success came from identifying a gap in the market for Indian and ethnic wear.

Business Lesson 2: Great businesses are formed from insights into market trends and demands.

Ravi Modi's decision to open his own shop, Vedant Fashion, led to the creation of the Manyavar brand.

Initially, Manyavar targeted Large Format Stores and other retailers with a low-margin, high-volume sales strategy.

Business Lesson 3: Sometimes it's necessary to pursue your own business ideas, even against family advice.

Manyavar transitioned to a 'Franchise Owned Company Operated' model to expand quickly while managing operations.

The 'Franchise Owned Franchise Operated' model allowed for rapid expansion with minimal financial burden.

Manyavar's branding strategy focused on creating a unique identity associated with marriage and celebrations.

Business Lesson 4: Utilize different marketing strategies for different segments to maximize reach and appeal.

Manyavar's marketing included multiplex advertisements, IPL sponsorships, and celebrity endorsements.

Business Lesson 5: Reinvest profits back into the business, particularly in marketing for sustained growth.

Data analytics played a crucial role in understanding customer behavior and minimizing unsold inventory.

Business Lesson 6: Choose a field with low competition and high future potential for sustainable business success.

The importance of believing in one's own abilities and ideas as a key to business success.

Transcripts

An ordinary and small businessman with a capital of just Rs 10,000 opened a clothing store and

made it a brand worth Rs 30000 crores, that too in 23 years, today that brand has 600 Indian stores,

more than 12 international stores

and it sells more than 40 lakh pieces every year. How?

The owner of this shop took Rs 20000 from his father in a small argument, leaving his father's shop and starting his own shop,

and today his personal net worth is 20 thousand crores and he is the 50th richest person in the country.

That too without any loan, that too without the support of any investor, on the basis of own hard work and business sense,

Today's case study is super special, it is close to my heart because you will get to learn

how to start a business? how to build a brand?. How to do marketing?

how a small shop reach big heights without a loan and investors support and just on the power of mindset

The brand name is Manyavar and the name of the businessman is Ravi Modi.

and In today's video, we will discuss 4 business strategies and 7 business lessons of Manyavar

which can make your business the next Manyavar

So, let's start the video!

All the people who are doing business or want to do business, watch this case study till the end

as whatever your excuses are, I am a small businessman, what should I do? I have no money, no one is giving me the loan

how will I handle so much employees, how will I bring so much money, the competition is very high

hence, this story will tell you that excuses are just excuses, if you want to do,

there are many ways specified in the case study like what type of difficulty can come and how are they overcome?

then watch the video till the last and I have a super special request for any individual who has work

related to clothes or do any business related to marriage

this video should be on every individual mobile

Either consider it my request, I will not tell you to like or subscribe to the video

But I will tell you to share the video with each businessman who is connected more to marriage or clothes

A business starts with a businessman and our story will start with Ravi Modi

Ravi Modi's father had a small shop of 140 sq. ft. in Kolkata

And like it happens in every businessmen family where children are called to the shop from a young age

So, from the age of 13, Ravi Modi started coming to the shop

like going to shop after school, on Saturday and Sunday at the shop,

He worked 9 years at the shop and learn things closely in the sales areas

He had a saying that if a customer has come to buy one shirt and you have sold one shirt only, then you are a postman, what have you done,

If a person came to buy one shirt, then you sold him three shirts. Then only you are a salesman

This concept is called "Cross Sell and Up Sell" in technical language

Like, if someone comes to buy a shirt, and sell him paint, this is a cross-sell

and if someone has come to buy one shirt, sell him two shirts, then this is up-sell

He didn't learn this concept from the book M.B.A

but he learned it from life M.B.A

So, here comes your business lesson number one - If you want to start a business

business is nothing, business is common sense, and business is practical,

business is understanding the market and it is better to start it as soon as possible

Haldiram came into business at the age of 11 and Warren Buffett at the age of 12

So, if you are a business family and you have kept thought already that you want your child to be in business today or later,

So, I am not telling you to do not let him teach to write, but yes, give him a habit of shop or business as early as possible

so he could understand and grow better in the surrounding

and if you do not have a business family and you are in the job,

then also make start your internship as soon as possible.

The books are on their side, and the format is particular but the thing that the market and world teach, no one can teach that

therefore, it is the first business lesson. Remember it.

Now the same thing happened at the shop where the father and child work together or two brothers work together or in any family business

"Dispute"

Fathers have their own thinking, children have their own thinking,

He is saying to the father that you are doing business in pants, shirts, jeans and t-shirts,

Let's do this for Kurtas and Pajama as they also have a trend in the market

so his father said - Will you teach business to your father? it doesn't happen this way. I have been selling in this way till today

My experience is good.

Ravi Modi agreed with this but one day father went away for seven days and he secretly brought 100 pieces of Kurtas

When his father came back and told the father that he has bought 100 pieces of Kurtas, his father filled with a lot of anger

but his father came to know that 80 kurtas were sold in 7 days and so,

the anger cooled down a bit, but his father said, you have taken decisions from behind me today, do not take them again

but Ravi Modi is a businessman, a businessman has a worm and so he says, Today I will do this, tomorrow I will do this and so,

this experiment, that experiment

and so, Ravi Modi has now taken any decision at his level, which his father didn't like, then one day

his father scolded him with harsh words like saying you are taking wrong decisions and one day it will ruin us all and

because of you that I had to commit suicide because of you. It struck Ravi Modi's heart

that my father made said this because of a small decision of Rs 20,000,

He said to his father - From tomorrow, I will not come to the shop tomorrow, Jay Jay Ram!

In that situation, Ravi Modi went to his mother and said mother, I want 10000 rupees and I will open my own shop

and I will do my business in my way as I am not able to understand Father thought

So, taking 10000 Rs from his mother, Ravi Modi opened his own shop with the name Vedant Fashion

Ravi Modi got married at 21 age and had children at 22

His child's name was Vedant and so, he opened this shop in his child's name

Business Lesson No. 2 - "Great businesses are formed on insights"

Insight means some trend is being clicked into your mind when you are doing business in the market

Like this thing has a demand, people are ready to pay and nobody is doing this, should I do it?

So, all the big businesses have this thing behind them

Ravi Modi here got an insight that the market is filled with western, western, western and all big companies are

selling Western products. Sellers are also opting for Western trend

no one is paying that much attention to Indian and ethnic trends and demand also comes for this trend

So, this is the gap if and if I do cover this, then something will happen

Contrary to his father's wish, he started to work on that trend and then how big that brand has become in the future

we are going to discuss this surely but in that particular beginning, I will do this, it was seeded from there

and this is where business lesson number 3 comes and

this is going to be controversial, so I give a disclaimer

What I mean to say is that sometimes what happens that when in a family business,

when two people work together (father and son, brother and brother) and both of them have different thinking,

then sometimes we are not able to implement a very good idea due to some reason

I am not saying to not listen to your father, I am not saying leave the business and do your own business

, but I am saying that if you are convinced about an idea, you have seen a trend in the market, proved it with data, experimented

and have a strong voice from the inside, so don't wait for what the world is saying

as today's that father is saying that - "Ravi Modi, my lovely son"

You have done so much today. So, if you are right and you believe that you are right

then try something once. You can, but don't jump out suddenly, but don't think that

I had an idea in my mind, so-and-so implemented it, don't keep crying

The name of the company was Vedant Fashion, but, there was a thought that what brand will be made by the name of Vedant,

said that we need a different name for the brand name. What could be it?

He said that I want respect, which was not given by my father and I want it from the market. So, what name should be kept?

I want that everyone gives me respect and so let's keep the name "Manyavar"

The company had first targeted LFS - Large Format Stores

Pentalon, Vishal Mega Mart. Considering 20% to 30% of the business, what they did is to

sell the goods in cash on a low margin and the remaining 70% to 80%, they sold to other retailers but kept a heavy margin

because no one was giving that product in the market.

Think that, everyone was in the business of paints, shirts, jeans and t-shirts

and Manyawar was alone in a kurta, pyjama and which is why the products were sold out very quickly

and on the margin (price) they decided, it was selling on that margin only

and while doing this, in a few years, their turnover reached Rs 20 crore

Now they said that there is a problem in LFS (Large Format Stores)

they do not share customer data like who purchased my product and what they liked and what they didn't.

Until I am not able to get what the customer is thinking, what are their insights, what should I do in manufacturing, what should I make

there was much confusion about these aspects

So, let's do one thing that establishes our own store because when our own customers come to the store, we will take data

and we can know what trend is going on in the market?

and in this way, they set up their first store in Bhubaneshwar and started learning these things from there

So, let's understand one thing that their products are going to Large Format Stores (LFS)

something to retailers and they also opened their own store

and they opened another one and a third store as well

But now, they got a tension that it takes a lot of money to open a store, and

top of that, they need to handle so many people like hiring, employees management and whether they come or not and so, are so many tensions

So, if we are getting such issues in 3 stores only and when we reach 30 or 300 stores, it will become a difficult situation

So, they will now not go further with COCO (Company Own Company Operated) method

So, they decided to opt FOCO method and what is this?

"Franchise Owned Company Operated"

So, they started giving out their brand franchise

You put money and open a store, and we will handle the operations.

So, they also started to work in the market on this model

where people took franchisee and they started handling it.

Now they saw one thing that by giving a franchise, the problem of money has ended,

they do not need money as the world is investing there, but handling aspect still persisted

this is also not needed, then what to do? They said if we want to expand more quickly, the FOCO method is not the right one

Let's work with the FOFO method. So, what is the FOFO method?

"Franchise Owned Franchise Operated"

You set up the franchise, you keep the staff, you sell the products, and I will do only three things

my responsibility will be designing, marketing and supplying and delivering the goods to your shop

because I can make these three things done in a centralised way

like making the products and sending them to particular locations, what to be developed and marketing.

However, I cannot manage all stores and once they adopted the FOFO method

it got super hit. Why these 600 stores were grown? because of FOFO. It was not possible in COCO or COFO

business lesson number 4, if you want to grow with the speed of a rocket and I want to go fast

So, the best method for you is FOFO because if you grow slowly like the D-Mart where it says

that I will only make, I will do it only and its speed is slow and that's why it takes the company so many years to open such a number of stores

Things come into fast in which method? FOFO method. Remember it.

Now, you could have questions like, what happens with opening a store, we can open 10, 20 and 50 stores

but customers are not coming, this is the real trouble

For this, Manyawar says that I have a second strategy

"Creation of a Brand"

All the people who have attended my Vyapari to CEO class

on Sunday, which I do from 10 to 2pm on every Sunday

In that, you remember I say one thing again and again

that the customer does not come these days, the customer has to be called

and the activity to call the customers is marketing

Before doing the marketing, we first need to do branding because if you say that

we sell everything, we sell everything, then people will not know you, will not recognize you and you will get lost in the crowd

if you want to be unique in the crowd, then you need to create a brand and a unique identity

So, Ravi Modi said how to create identity, tell me?

Marriage is the biggest festival in India, with as much happiness, celebration and expenditure and

as much income as a businessman and as much sale in marriage, it is nowhere as much in the marriage

People connected or related to marriage know this very well

Every year, there are 1 crore marriages in India

and if assume the average budget is 10 lakhs, then it is a market of 10 lakh crores, but there is no

Indian brands in such a big market and the entire market is unorganized

And Ravi Modi saw that all the shopping for clothes is 95% un-organised

Everyone is holding their own man, there is no big brand, so if

we make the brand in this area, we could have a different identity

So, they said not to sell all the clothes, whenever you remember the Manyavar then remember it when there is a marriage

and they do their 100% branding, and 100% marketing in a way like "Marriage means Manvayar"

Where to start it? where to do marketing?

He said - Do it in a place where there is money in someone's pockets and what do rich people do? They watch movies in multiplex

Hence, they started their ads in the multiplex. When a man is sitting with popcorn worth 500 Rs and there

is no place to come and go within 2 minutes, the Manyaver ad comes, very emotional, with a celebrity,

where the people think that the brand is right

this time in marriage, we will try this

hence, the sales increase by doing ads in the multiplex. With the increase in sales, they do more marketing and gradually established in IPL and

it starts sponsoring three teams of IPL and the biggest master strategy of Manvayar was in 2017,

they signed Virat Kohli and in the same year, he became captain and thus, more value increased

and after Virat Kohli came, the company gave a thought like at present

Marriage means Manyavar and we should say any celebration means Manyavar, Every festival

should be Manyavar, so they started an ad with Virat Kohli started that "every festival is India's festival"

and in that, Manyavar launched that we are not wedding wear, we are celebration wear and at that time only,

Virat Kholi was having an affair with Anushka Sharma and there were rumours of marriage going on

So, the company said that there is no better couple than them available in India

Let's do one thing, we should also sign Anushka and so, and they signed Anushka

and launched a new brand with her, Mohey.

as Manyavar will be for men and Mohey will be for ladies

Brand Launch!

Now, learn here a brilliant lesson about marketing and branding

If the company wanted to, they could come up with girls' wear under the Manyavar brand. However, they have chosen not to do so.

There will be a different brand for each segment, and there will be a different brand for each category

So, Manyavar is for Men's and what brand is for women? It is Mohey

Then they said that in Manyavar, clothes are going in the range of 20 thousand,

if they want to sell more expensive clothes, if they want to target the upper-middle class

They launched another brand i.e., Twamev

and now they said that now, middle-class people are taking this and if lower-class people want to purchase?.

So, they launched another brand - Manthan.

Now, they have different brands for lower categories, for middle categories and for upper categories

, and to impress everyone, they have different ads,

For instance, if they want to attract the couple, here comes Virat Kohli and Anushka

If they want to attract the youth, then Kartik Aaryan comes and Ranveer Singh comes

and if they want to attract women only, then Alia Bhatt is seen everywhere

Hence, Business Lesson No. 5 - Every marketing will not be done under one umbrella

Every product's audience is different, every person's pocket is different,

first, grab one segment, market it, cover it, then second, then third, then fourth, then fifth, then everything is yours

So, as you are seeing this case study and you will learn many aspects from it

However, if you want to learn marketing in detail, like how to find each audience in the market, how to find their pain,

how to make a campaign, then there is a separate course on marketing, I have given the link below, go there

You can see that, it is of two to three hours and you will get to know many secrets

In the competition market where similar products of yours are sold by 100 more people and if you want to create a brand in between, there is a separate course

And when I said, there are two classes every Sunday from 10 am to 2 pm of Vyapari to CEO

, if you want to attend that also, the link is given in the description

hence, go to the description and click on all three links

and marketing, branding and Vyapari to CEO, watch all these three in detail.

Now let's move further in the case study.

Now you may think that who will do so much marketing, from where can we get the money for doing marketing in multiplexes

, We don't have the money to sign Alia Bhatt or Virat Kholi, Manyavar has such an amount

Manyavar has a strategy and, Strategy No. 3 - "Re-investment in Business"

look at the year 2003, Ravi Modi started earning during much money first time and it is a normal tendency of these people i.e., "Show-Off"

so, he said that he will buy Mercedes and there was his same father who make him run away just for 20000 Rs

and so, his father said Son - what are you doing? Ravi Modi replied - Father, I am going to buy Mercedes

His father said - Whom you want to make you Mercedes see?

Do invest the money in business. This Mercedes is just for show-off. It will be forgotten after two days

If that Mercedes money goes into business, there you can get more Mercedes in future

Ravi Modi tied his father's words. As much as profit earns, he doesn't use it on personal terms

and In 2003, the business was so much successful that he has the capacity to buy Mercedes but

he didn't buy Mercedes

and drove Honda City for 15 years till 2017

At the time when they were signing up Virat Kohli, still they were driving Honda City

However, in 2017, someone in the family of Ravi Modi met with an accident, then the family members said, the accident happened, one can anytime die

and therefore, he bought Mercedes for safety, in 2017, then what lesson can be learned from this story is that whatever sells is there

, invest a certain percentage of its marketing, the revenue that comes from it, invest it back in marketing,

we need to understand their sales, in 2019, the sales were 800 crores, in 2020, it became 915 crores, and then come as a pandemic, it reduced to

574 crores. Now, after coming out of the pandemic, then it has achieved sales of 1040 crores,

They do not even spend a large part of its revenue on marketing, they spend 7.6% on marketing, that is if there

is a sale of 1000 crores, then they will spend only 75 crores on branding and their profit multiple on marketing,

it is 6.6 means. It means for every 1 Rs spent on marketing, their profit increases by 6.5 Rs. It is not a matter of revenue, profit

So, why not do marketing?

In Vyapari to CEO course and advanced classes, what I say most of the time is that in doing marketing, everyone makes it small but

if that amount is re-invested again and again, the budget increases, profit increases, and sales increase though your product must be good

Their profit margin is the highest in the industry,

their profit margin after tax is 30%. Their return on investment every year is 75%.

as much as they invest like if they spend 100 Rs, 75 Rs comes back in the same year

Then see what will come next year, because they

do not do their own manufacturing, they outsourced it. They give the design and outsourced and sell it.

They haven't meddled with manufacturing

They have more than 450 vendors all over India from which they make their products manufactured and keep them in one place

and gets them delivered;

Secondly, how much they developed, all the products are sold out completely

Their unsold products are only 3%

Now your question - If they make so many products, all can't be sold out

and if sold out, then how? what is this magic?

Now, here comes strategy No. 3 - "Use of Data Analytics"

They understood, understand the mind of the customer and the behaviour of the customer. You will understand what he

wants, what he doesn't want, and then everything will be accomplished.

So, since the time they opened the first store and second store,

they see the data in the software that in which city, which colour, which design, which price range goods have been sold

So, the type of colour in the city, type of design, what is this type of thing used in winter, what is it used in summer, what is used in Diwali

This is used in Hyderabad, but it is used in Mumbai only. If Eid comes

it is sold in this area. This all data are kept by the company and they manage things accordingly,

then the wastage comes to 3% only and there is no

"End of the Season Sale" in Manyavar unlike other big brands

3% of products were left out. They either burn it or donate it, they don't sell it

Business Lesson No. 6 - Data is King

See, one takes a chance in small businesses. For instance, I think this can be done and this cannot be.

If one wants to do big business or to reach a big level, without data, it is not possible.

Your thinking and your chance can make only 1 to 5 crore sales. For making 200 or 500 crore sales, data is much important

So, get into the habit of data from now on.

and last, the most important business strategy which probably should be mentioned first but I am doing it last at the

end of the video, so that it can be communicated to serious individuals rather than unwanted ones

Choose a field with low competition and emerging trend

What is this? Choose such a business where people are not interested now, the competition is less, but going forward,

its potential is high in future. It means you are seeing any particular thing that is a trend

in the market, and it is everywhere going into the market.

and You will jump in and you are feeling that it is only going into the market

then thousands of people like you will also jump in and will give competition, and then that opportunity will end.

Hence, where people will not see the opportunity, you have to play your game at that spot only.

But if you are playing (strategising) at a place where there is nothing

is nothing ahead then you will die. Hence, where there is nothing today but there is something ahead, pay attention to such a place

What happens in the share market? Grab the company at such a particular time when no one else is paying attention as if you will get a less amount

but when everyone attention, the price will go up. In this game, you have to play

and last most important, most important, most important

business lesson - "You Can Do It"

There is a dialogue in Badmaash Company that

The biggest business is bigger than a big idea, not money

So, you have seen today that that person has no degree and not much capital and no support,

He just saw the empty market, saw the idea,

put his heart and understood something. Today, how big businessmen are studying his case study, today I am

also telling you something and you are listening and learning from it, he is a normal businessman,

who did not learn from books but understood from the market.

So this interesting case study ends here!

There are many more case studies about to come

If you haven't subscribed to the channel, then subscribe to it.

but remember the promise to forward this video everywhere.