A REPORT ON THE ERPG FORMAT AND MARKETING

STRATEGIES FOR INDIAN APPAREL BRAND (RMKV)

Submitted
By

D Japhia
K Divya Bharathi
Krishna Kanth C
Shruti R

Under the Supervision of

Dr. S. Angammal Santhi
CC – FMS, Assistant Professor

IN PARTIAL FULFILLMENT OF THE POST GRADUATE DEGREE

"MASTER OF FASHION MANAGEMENT (MFM)"

Submitted to

Department of Fashion Management Studies (FMS)

National Institute of Fashion Technology (NIFT)
Rajiv Gandhi Salai, Taramani
Chennai, PIN – 600 113
Ph. 044-22542771, Fax: 044-22542763
Web: www.nift.ac.in
November, 2019

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 DECLARATION

We, D Japhia, K Divya Bharathi, Krishna Kanth C, Shruti R, hereby declare that the

Project work entitled “A REPORT ON THE ERPG FORMAT AND MARKETING

STRATEGIES FOR INDIAN APPAREL BRAND (RMKV)” is the result of our own

research work carried out by us. This report has not been submitted to any other University or

Institution for award of any degree/diploma etc.

Signature:
Name of the Student: Japhia D, K Divya Bharathi, Krishna Kanth C, Shruti R
Date: 26/12/2020

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 CERTIFICATE

This is to certify that Japhia D, K Divya Bharathi, Krishna Kanth C, Shruti R, of

National Institute of Fashion Technology (NIFT), Chennai have successfully completed their

Research work titled “A REPORT ON THE ERPG FORMAT AND MARKETING

STRATEGIES FOR INDIAN APPAREL BRAND (RMKV)” in partial fulfillment of

requirement for the Fashion Business Research Assignment "Master of Fashion Management

(MFM)" as prescribed by the Department of Fashion Management Studies (FMS), National

Institute of Fashion Technology.

This 'Research Project' report is the record of authentic work carried out by them under my

mentorship.

Signature

Name of the Faculty Mentor: Dr. Angammal Santhi. S

Designation: CC & Assistant Professor

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 CHAPTER 1
INTRODUCTION TO ERPG FORMAT

ERPG FORMAT
EPRG model, sometimes called also EPG model, is used in the international
marketing. It was introduced by Perlmutter (1969). The strategy of the organization is
characterized by three factors: Ethnocentrism, Polycentrism and Geocentrism. Hence, the
original name - EPG. A little later this model was extended by another factor -
Regiocentrism. The extended model is known as EPRG model, in short. This model aims to
identify the orientation of the organization. The strategy can be differently oriented, indeed.
As a result, costs and profits are generated in slightly different ways, depending on the
mentioned kind of orientation. Therefore, the identification of the right orientation is
essential. For example, it is important that different activities of the organization are
consistent with each other at various stages. It is also important that the culture of
organization, its marketing strategy, etc. are consistent. Only then, the organization can
operate efficiently on the market.

ETHNOCENTRISM
As mentioned before, the model takes into account four different orientations:
ethnocentric, polycentric, regiocentric and geocentric. The first one is very common amongst
companies just starting the international activity. Such companies concentrate their efforts on
production and sales, but mainly on the domestic market. Activity on a foreign market is
usually perceived as a temporary activity. Hence, patterns of market behavior are based on
the experience gained from the domestic market. Ethnocentrism arises from the dominance of

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one culture over another in some sense. This dominancy can relate to the cultural sphere,
manual, technical, mental or even ethical and moral skills. This orientation is somehow
natural because of some psychological factors. People have a tendency to unite in a compact,
somehow similar groups. In this orientation, domestic strategies are assumed the best ones
and superior over any other, foreign ones. Since national rules were verified by market and
occurred good, they are believed to be good on another market also. Therefore, managers are
brought from the domestic country to subsidiaries.
The hierarchy of the organization is usually highly centralized and directly
subordinated to the headquarter located in the home country. These factors generate
significant costs. Managers must be recruited in the domestic country. As a result,
compensation costs for work in another country must be added to the basis salaries. However,
bringing own managers can have some positive effect for the host country. For example, the
flow of know-how is intensified. Nevertheless, the conviction of the superiority of the
domestic culture of the organization results in the fact that domestic customs are rather
imposed on the foreign market. This rather low elasticity and lack of openness and flexibility
leads to increase in costs and lower efficiency.

POLYCENTRISM
Polycentric orientation is close to the ethnocentric one, but requires activity on several
foreign markets. Moreover, activities on these markets are individualized. So, polycentrism is
connected with specialization depending on the considered foreign market. local specificities,
which distinguish them from the domestic market. This orientation is based on the philosophy
that it is better to use local methods to cope with the local problems, rather than force alien
solutions. However, extreme polycentrism is also not effective, since it assumes that the local
market is understood only by local managers, so any flow of know-how is useless.
Polycentrism assumes that actions of managers in different countries should not be strictly
controlled by the headquarter in the domestic country and it allows for some freedom in
actions. Unfortunately, this can lead to excessive growth of the chaos and the lack of
coordination between the branches of the organization. Moreover, local managers may be
reluctant to implement the recommendations from the headquarter. The local staff can be too
much convinced of a better understanding the local market.

REGIOCENTRISM

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 Regiocentric orientation is similar to the polycentric one, but an organization not only
recognizes the specific nature of different foreign markets, but also perceives some
similarities of these foreign markets. Therefore, it makes groups of similar markets (regions)
with similar characteristic features. In other words, similarities between the countries and
their markets located in one region are used in order to develop an integrated regional
strategy. It should be notice that groups of countries naturally emerge due to processes of
trade liberalization. Examples of such regions are NAFTA and the European Union. Market
segmentation is based on finding regions (groups of countries) similar to each other. These
similarities may exist on the economic, cultural or political background. Regiocentric strategy
assumes that all countries of the region can be regarded as a single market. This allows for
much greater economy of scale than the polycentric strategy.

GEOCENTRISM
Geocentric orientation is the one, which is present when an organization treats all
foreign markets as the one, i.e., global, market. The global market is understood as a single
market, i.e., sociologically and economically uniform. Of course, this uniformity is much
simplified, but a geocentrically oriented organization assumes that some differences can be
deliberately forgotten.
In the geocentric approach headquarter and subsidiaries must be somehow unified in
order to erase any bias based on the country of origin. In this sense geocentrism is something
more than just transnationality or multinationality. The point is that there is no explicit
barriers between the headquarter and foreign subsidiaries. The organization can be
paraphrased as the global organism with equally privileged organs scattered in different
countries.
In the geocentric approach headquarter and subsidiaries must be somehow unified in
order to erase any bias based on the country of origin. In this sense geocentrism is something
more than just transnationality or multinationality. The point is that there are no explicit
barriers between the headquarter and foreign subsidiaries. The organization can be
paraphrased as the global organism with equally privileged organs scattered in different
countries.
Geocentric orientation is characteristic of the huge transnational corporations,
conducting its business in the arena of the world market. Therefore, it is important, that in the
case of research and development decision making is not based on more or less rigid

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assumptions, but is the result of a continuous process of market research. This characteristic
is one of key features distinguishing the geocentric orientation from other approaches.

CHAPTER 2
MAIN CHARACTERISTICS IN EPRG MODEL

ETHNOCENTRISM POLYCENTRISM REGIOCENTRISM GEOCENTRISM

Main decisions made Main decisions made

Lower role of the Collaboration with
in the main in regional
main headquarter local headquarters
headquarter headquarters
Local standards
Home standards Regional standards in Universal
applied on local
applied on all markets regions standards
markets

Focus on domestic Focus on local Focus on regional Focus on global

objectives objectives objectives objectives

Identification with
Identification with the Identification with
the nationality of Global view
owner's nationality the region
host country
Having an
High positions taken High positions experience in
High positions taken
by managers from taken by local different countries
by regional managers
owner's country managers is a must to take a
high position

As the process of globalization intensifies, many companies undergo evolutions and

significant changes. For example, they switch from ethnocentrism, through polycentrism and
Regiocentrism, towards geocentrism. Ethnocentrism is a consequence of global
standardization, whereas polycentrism and Regiocentrism are based rather on adaptive
processes. The advantages of the ethnocentric orientation are the simplicity of the

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organizational structure, the simplicity of the flow of the information and the simplicity in
performing the internal control. On the other hand, the development of innovations usually
leads to inefficient planning and low flexibility in responding to market changes. Polycentric
orientation focuses on more intensive penetration of foreign markets with respect to their
locality, and thus to improve sales. It is because of a better understanding of the local
markets. Moreover, some support of the local government, possibility of finding managers
with better qualifications, etc. are more common under polycentric approach.

CHAPTER 3
RMKV

INTRODUCTION
RmKV Silks was begun as a saree shop in Tirunelveli, Tamil Nadu, in 1924 by Rm.
K. Visvanatha Pillai, dealing mainly in silk Kanchipuram sarees. After the death of his son V.
Kumaraswamy, who led RmKV from 1955 to 1988, the family concern was modernized and
expanded by his grandsons K. Viswanathan and K. Sivakumar. RMKV is a Chennai based
saree brand and the retail outlet holds a well-worked-out brand position for purchasing sarees
in Tamil Nadu. It is one of the most reputed retailing companies producing its trendy, unique
silk and wedding silk sarees. Their silk sarees are not only keen on young consumers, but are
also eager to woo young women weavers into the industry. With loads of showrooms
scattered all over Chennai, it is also a finest destination for the people to buy the family
merchandise.
The company, since its inception has been one of the ultimate destinations for the
finest Arani and Kanchipuram silks made to order sarees, kids collection, men’s wear,
ghagras, salwars, poly silks, poly cotton, chiffon, crepe and theme collection. At present,
RMKV has established an innovative idea of sarees which has more than 50,000 colors and

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claims that this is the earliest saree across the world having an assortment of shades and
colors.

EVOLUTION OF RMKV
RMKV was established in the year of 1924 by Mr. Rm. K. Visvanatha Pillai. Over
more than 80 years of experience in the silk sarees, the company is well-known for its quality
products, new techniques products, new techniques and innovative and innovative designs in
designs in the handloom the handloom weaving of silk. weaving of silk. The vision of
RMKV is followed by Mr. Rm. K. Sivakumar. The design studio of RMKV has created
various notable theme sarees like Kural Ovium, Aishwarya Pookkal, Durbar Krishna and
Chinnanchiru Kiliye. It is an ultimate showroom of textile, located at the Tirunelveli and
Chennai.

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ACHIEVEMENTS & AWARDS:
 RMKV won two National Awards for its innovative designs, new techniques of
handloom weaving and quality products.
 The company is the first manufacturer of saree silk company certified ISO 9001-
2000 in India.
 The company created a buzz about the conventional Kanchipuram Sarees by
setting up a Guinness Book Record setting up a Guinness Book Record in 2004,
for maki in 2004, for making longest silk saree. ng longest silk saree.
 RMKV came up with another Record for a special check-patterned saree with
more than 50,000 colours woven to it.
 Mr.K. Sivakumar and Mr.S. Rajendran of RmKV have got National Award for
Master Weavers and Master Craft persons in 1998
 Mr.K. Viswanathan and Mr.S. Dinakaran of RmKV have got National Award
for Master Weavers and Master Craft persons in 1999.

MOTIVATIONAL SCHEMES

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 RmKV provides customer BONUS rewards program, is yet another t another effort to
give more effort to give more delight to valuable customers. The loyalty card will enable the
customers to earn shopping points which points which can be accumulated and redeemed and
redeemed against future against future purchases at purchases at any of our stores. Moreover,
it gives customers all possible denomination options for voucher purchase. These vouchers
will be split into smaller denominations for convenience.

INNOVATIONS OF RMKV:
RmKV Silks can be said to have begun the trend of innovation in the traditional field
of silk sarees when they came out with a saree depicting, in woven silk and jari, the 33
Bharatanatyam dance poses for Subramanya Bharathi's song Chinnanchiru Kiliye. Since then,
RmKV has released about three dozen designer sarees, including Aishwarya Pookkal
(National Award, 1998); Hamsa Damayanthi, based on the Raja Ravi Varma painting and
modeled by then-unknown Deepika Padukone (National Award, 1999); Kural Ovium
(depicting couplets from the Thirukkural); a line of textured "embossed silk" sarees; the
reversible silk saree; a 50000-colour saree sarees inspired by Op Art; natural-dye silk sarees;
and light-silk sarees using patented methods.

Hamsa Damayanthi saree Inspired from Raja Ravi varma Painting

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 Aishwarya Pookkal Saree

50,000 color Silk Saree

Conceptualization and design are performed at their studio in Tirunelveli and

manufacturing at Arani, Tamil Nadu. Noted textile designer Subrata Bhowmick of the
National Institute of Design was the consultant behind RmKV's Hamsa Damayanti saree and
its subsequent advertising campaign A few years ago, the retailer tied up with the Central Silk
Board to design a technology that automates pedaling of the handloom weaving machine.

CHAPTER 4
MARKETING STRATEGIES FOR RMKV
RMKV as a brand is well-known in the southern states but does not have presence in
other areas of India. In order to expand into the domestic markets, RMKV must try opening a
few stores in the northern cities. The brand can start with tier 1 cities such as Delhi, Mumbai
and Kolkata and slowly expand after carefully analyzing the sales trend and demand. Since

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the brand already specializes in all varieties of sarees from all over the country, it will not
face much difficulty in introducing itself and creating a brand image among the other existing
brands in the respective cities. Listed below are a few marketing strategies based on the
regiocentric and ethnocentric aspects of the ERPG format.
1. Rope in Instagram influences and vloggers to give the products and brand a
shout out

RMKV’s social media game is extremely strong and has a considerable number of followers.
But they have failed as a brand to make their presence felt in other states of India apart from
those in the south. Although they have a website which facilitates online shopping, the feel of
purchasing a product in a brick-and-mortar store is still missing for those who are in other
states and do not have access to the store.
Instagram was initially a tool used to publish photos and videos but has now evolved
and emerged into a powerful e-commerce tool. It has brought in new trends and has made a
revolutionary change in the way customers shop. Instagram influencers and vloggers play a
vital role in influencing the products their followers buy. Roping in influencers according to
the region and asking them to content as part of their paid promotion campaign will boost the
brands presence and help it gain presence in other regions.
2. Collaborate with other prominent brands in that location

RMKV can collaborate with brands which are already functioning and have a strong presence
in the respective location and host free giveaways to gain widespread presence among the
crowd. Prominent footwear labels, jewelry and accessory brands, skincare brands, etc., can be
approached to collaborate with RMKV and take part in such giveaways.
3. Listing products in already existing e-commerce platforms

RMKV can make its products available in existing e-commerce platforms such as myntra,
jabong, amazon, flipkart and ajio. This can be used as a trial to check the number of people
who purchase their products from other cities excluding those which already have a store.
The brand can gain high presence by listing and advertising their products in these platforms.
4. Start an online blog

The brand has a well-designed and a user-friendly website but what it lacks is an online blog.
RMKV can publish blogs in regular intervals with content related to the products they sell. It
may be about styling a merchandise to create an ensemble look or a story of a weaver who

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works for the brand. This gives a personal connect between the brand and the consumers and
helps garner attention.
5. Customization of products related to the target market

RMKV is known highly for its curated collection of kanjivaram sarees although it has other
options too. But when the expands to other states, it must make sure that the products
displayed are with relevance to the market it operates in. This will increase its sales rate and
make sure it is relatable to the people of that region.
6. Smart Remarketing
RMKV can increase customer retention rates through remarketing. Shoppers are usually
distracted and can easily forget their positive shopper experience, whether the purchase
online stores or online. Customers need to remind them of their positive experience by
engaging previous shoppers either with promotions or discounts based on past purchases or
current consumer trends.

CHAPTER 5
CONCLUSION
The ERPG model gives an idea regarding the framework of expanding a business. Various
orientations have both advantages and disadvantages. Undoubtedly, the advantages of the
ERPG approach are the simplicity of the organizational structure, the simplicity of the flow
of the information and the simplicity in performing the internal control. On the other hand,
the development of innovations usually leads to inefficient planning and low flexibility in
responding to market changes. Many companies have had problems with expanding their
brands because they have failed to put in the research and effort necessary to understand the
culture. This has led to several failed brands, lost customers and the loss of all the turnover
that comes with having to start afresh. RMKV has a premium name for itself in the southern
market and is definitely capable of doing well nationally. If it puts in the right minds into
developing itself and functioning outside its comfort zone, its results are sure to be
extraordinary.

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References:

https://www.toolshero.com/marketing/eprg-framework-perlmutter/
https://www.marketing91.com/what-is-the-eprg-framework/
https://www.rmkv.com/
https://economictimes.indiatimes.com/topic/RmKV

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