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Preface

The following report presents the findings of a primary and secondary research conducted by
students of SYBBA at Anil Surendra Modi School of Commerce, NMIMS. This study was
undertaken to explore the potential of launching a social enterprise, "Jhola," focused on
empowering young women through sustainable tote bag production. The report delves into
the motivations behind creating Jhola, its unique value proposition, and the potential impact it
can have on the community. The data presented in the report is illustrative and serves as a
foundation for further analysis and decision-making.

It's not possible to prepare a project without the encouragement of teachers and assistance
from peers. At the very outset of this report, we would like to extend our sincere obligations
towards all persons that have helped us in this endeavour. Without their active guidance, help.
cooperation, and management, we would not have mude headway in the project. We are
sincerely grateful to Prof. Delisha Dsouza for her conscientious guidance and
encouragement to accomplish the assignment. We also want to extend our gratitude to Anil
Surendra Modi College of Commerce (ASMSOC) for giving us this opportunity. We also
acknowledge with a deep sense of reverence, our gratitude towards our peers who supported
us morally during the conduct of this assignment. Any omission in this brief
acknowledgement does not mean more than a lack of gratitude.

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 Abstract

Jhola, a proposed social enterprise, seeks to empower young women in the community by
providing them with sustainable employment opportunities. Through the production of high-
quality tote bags, Jhola aims to create a positive social impact while offering a unique and
ethical product to consumers. This report investigates the feasibility of launching Jhola,
analyzing market trends, consumer preferences, and the potential challenges and benefits
associated with the venture. By partnering with a local NGO, Jhola can leverage existing
resources and networks to achieve its goals. The findings presented in this report provide
valuable insights for decision-making and future development of Jhola.

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 INDEX

Sr No. Topic Page No.

1. Merchandise 5-8
2. Pricing 9
3. Location 10
4. Communication 11-14
5. Services 15
6. Store Design Website 16-18
7. Delivery Method 19
8. Payment Method 20
9. Segmentation Targeting Positioning 21-25
10. Buying Behaviour 26
11. Costing 27
12. Sales Report 28
13. Future Growth and prospects 29

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MERCHANDISE

Merchandise plays a critical role in the overall success of a retail brand, serving as the core

product offering that attracts customers and generates sales. In the context of Jhola,

our product is a hand-painted canvas bag.

With 7 distinct categories, including.

The Spotify Mix Tote, The Wishful Tote, The Meow-nimal Tote, The Bear-y cute Tote, The
Smile more Tote, The No Chill Pill Tote.

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 a. Breadth (Variety of Merchandise):

The brand’s merchandise breadth is narrow, the only product the business provides is 100%

Cotton Tote Bags. The types of products offered were kept limited to one to increase focus

on delivering high-quality products in a focused niche.

b. Depth (Assortment of Merchandise):

While the product categories are limited, the tote lab offers deep assortments within them.

For example, bags feature 7 assorted styles. The brand also offers customizable options,
allowing customers to personalize their selections by adding their own name or someone
else's, making each product uniquely personal. By focusing on depth rather than breadth, the
company caters to customers looking for unique, personalised pieces, while also keeping
costs down by not spreading itself thin across multiple product categories.

Visual Merchandising

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Jhola has paid careful attention to its visual merchandising to create an appealing

and memorable shopping experience. It presents its products in an aesthetically pleasing

way that reflects its brand identity.

Online visual merchandising: On its social media platforms, carefully curated product

photos are used to maintain a cohesive brand image. We have used a set colour scheme for

posts and stories. We also have cute packaging with stickers and parchment paper. This

gives a good feeling while buying and the customer remembers the brand.

Competitive Advantage

Exclusive Merchandise - Our competitive advantage lies in using sustainable materials for
our tote bags, which helps reduce our retail costs, enabling us to sell them at a more
affordable price.

Greater Assortment - Though we operate in a narrow product category, the depth we offer

in each category provides our customers with a broader selection of styles. Our ability to
offer a diverse selection within a limited product range enhances our appeal to

customers looking for variety within a specialised category.

Multi-Channel Retailing

Jholaa uses a multi-channel approach, engaging customers both in-person within our

college and through digital platforms like social media and the web. This strategy enables

us to reach a broader audience, allowing customers to engage with our products in separate

ways.

Supply Chain Management

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Sourcing: For Jhola, we explored a range of options to source materials, selecting suppliers
based on two key criteria: cost-effectiveness and swift delivery.

1. Bags: We chose to source our bags from an NGO called NDF after thoroughly
evaluating various options, including Amazon, JioMart, and other wholesale suppliers.

2. Why We Chose These Sources:

Price: One of the most key factors was finding bags that were cost-effective while still
maintaining quality. We carefully negotiated prices with several vendors to secure bulk
purchases at a competitive rate. This allowed us to control our retail costs and offer attractive
pricing to our customers.

Quality: At Jhola, one of our top priorities was ensuring the quality and durability of the bags
we sourced. We focused on selecting tote bags that were sturdy enough to handle heavy
loads, offering practical and long-lasting solutions for everyday use. By carefully balancing
price and quality, we ensured that Jhola could provide both affordable and reliable tote bags.

Social Impact: Another important reason for choosing these sources is our partnership with an
NGO. By sourcing our bags from them, we not only support a meaningful cause but also
commit to donating a percentage of our earnings from the sale of these bags back to the
NGO. This initiative aligns with our values and allows our customers to contribute to a good
cause through their purchases.

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PRICING

The primary objective behind the pricing strategy at Jhola is to break even in the first

month all while generating short-term profit while maintaining a competitive edge in a

dynamic market. To achieve this, the business adopted a Penetrative Pricing Strategy.

Cost Structure:

● As the brand is newly established with an exclusively online presence, no fixed costs

are incurred.

● Variable Costs for the brand include the cost of packaging and

shipping. These will fluctuate based on the volume of products sold.

● The company aimed to set prices that would cover fixed and variable costs while

leaving room for profit, especially in the short term.

Pricing Methodology:

● Jhola adopted a competitive pricing strategy to position itself effectively in the

market. By assessing the prices of competing tote bag brands, the company priced its

products lower than its competitors. The decision to follow this method was taken due to

the need to remain attractive to consumers in a market where price sensitivity is high.

The average prices provided by the competitors were around 400-600 for the similar concept
of hand painted customised totes while our product was available at 60% of the lower price
range making it affordable and easier for the business to enter the new market.

Price Cues:
All prices end with nine, a popular pricing strategy that makes them easy to remember. By
carefully analysing the market and its competitors, Jhola has successfully positioned itself to

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capture market share while ensuring profitability. In a highly elastic market, this approach has
proven essential for maintaining relevance and achieving the company’s financial goals.

LOCATION

Jhola operates as an online-based business, with a primary focus on virtual platforms. We sell
our products through our official website, allowing customers to browse and purchase our
range of Tote Bags. Additionally, we actively engage with our audience on social media,
particularly Instagram, where customers can place orders via direct messages. Alongside
these platforms, a massive portion of our sales comes through word-of-mouth orders from
friends and fellow students within our college community, creating a strong and personal
connection with our clientele.

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COMMUNICATION

Our major form of communication is via social media. We use internet to our benefit and
have created an Instagram page which helps us to reach out to wide target audience and also
enables us to stay in touch with our current customer base. We also use our comment sections
to engage with the customers, and provide services of “Dm to order”. Platform like
WhatsApp also helps us to stay connected with our target base to keep them updated about
their order details and for further feedback.

1. Instagram Posts and Reels

Jhola captures the audience by using its signature color combination of red and beige. "Jhola"
is a Hindi term often associated with traditional Indian bags or satchels. Red and beige are
colours commonly found in Indian textiles and handicrafts, evoking a sense of cultural
heritage and tradition. These colours often symbolize warmth, comfort, and familiarity,
aligning with the idea of a tote bag that is both practical and inviting.

Red and beige create a strong contrast that is visually appealing and attention-grabbing. The
bold red can make the brand stand out, while the neutral beige provides a grounding element.
Therefore, our Instagram page is based on these elements, themes and colour palette.

We have curated an aesthetic and brand appropriate Instagram page, with individual posts for
each product so that consumers can inspect the products even through online platform.

Our team also creates reels to increase and enhance engagement from potential customers.
These reels often include trending audio and relatable themes to increase engagement and
reach new audiences. Our page also highlights our brands commitment to using eco-friendly
materials and sustainable production practices. We also reinforce our brands values of
believing in power of women to create change and how we have partners with an NGO.

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 2. Messages of orders

At Jhola, we offer multiple convenient channels for order placement to enhance the customer
experience. Customers can easily place their orders through Instagram DMs or WhatsApp
messages, allowing them to reach out and customise their tote bag selections effortlessly.
Additionally, we welcome in-person orders from friends and fellow students at our college,
who can see our products firsthand before making their purchase decisions

3. Building a community

The Tote Lab uses these captions and posts to foster a sense of community. By addressing
customer needs directly and responding to comments, we make followers feel heard and
appreciated. Also, constant polls, interactive stories and campaigns make the followers feel
connected to the brand.

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SERVICES

Product Selection: A wide variety of tote bags in different styles, sizes, materials, and
designs.

Online Store: A user-friendly website for browsing, selecting, and purchasing tote bags.

Secure Payment Gateway: Options for safe and convenient online payments.

Order Processing and Fulfillment: Efficiently handling orders, packaging, and shipping.

Customer Support: Helping with product inquiries, order tracking and product issues.

Eco-friendly Options: Offering tote bags made from sustainable materials or recycled
materials.

Customization: Allowing customers to personalize their tote bags with their names.

Gift Wrapping and Messaging: Providing gift-wrapping services and personalized

messages for gifts.

Post purchase feedback: a form is sent to the customer after his/her purchase, to get reviews
about the product ,which would help us to provide them better products and services next
time.

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STORE DESIGN WEBSITE
Store design of a website refers to creating an online space that provides engaging and user-
friendly shopping experience. It involves planning the website’s layout, visual elements and
functional components. Key aspects of store design for a website are:

1. User interface design

This includes the layout of the website including the arrangement of buttons like menu,
home, products, contact, etc. Jhola’s UI is consumer friendly which is easy to understand and
use. At the same time it is attractive and engaging for consumers.

2. HomePage and Landing Pages

This should serve as an appealing entry point. It should have latest photoshoot of the product
or the latest launches. The second picture above shows the latest shoot of the product.

3. Product display and categorization

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Organizing products into logical categories like the products are available in different head
and about the company is provided under the head about us. This involves detailed
descriptions and high quality images to help customers make informed decisions.

Other features available on the website are as follows

 Search and Navigation

 Shopping Cart and Checkout design
 Personalization and recommendations
 User experience design
 About Us and Contact information.

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DELIVERY METHOD: Hand-to-Hand Delivery

Jhola's primary delivery method is hand-to-hand delivery, a strategy tailored to our target
market of college students, friends, and family. This approach offers several advantages:

Benefits of Hand-to-Hand Delivery

 Personalized Experience: Direct interaction allows us to build relationships with

customers and understand their preferences better.

 Enhanced Customer Loyalty: This personal touch fosters a sense of connection and
loyalty among our customers.

 Cost-Effective: By eliminating shipping costs and streamlining the delivery process,

we reduce overhead expenses.

 Timely Delivery: Hand-to-hand delivery ensures products reach customers quickly

and efficiently.

 Direct Feedback: We utilize online feedback forms sent via WhatsApp to gather
immediate customer input and make necessary adjustments.

Effective Implementation:

To ensure the success of our hand-to-hand delivery model, we have implemented the
following strategies:

 Targeted Delivery: We focus on delivering to locations where our target market is

most likely to be found, such as college campuses and residential areas.

 Efficient Routing: We optimize delivery routes to minimize travel time and reduce
costs.

 Flexible Scheduling: We offer flexible delivery options to accommodate customers'

schedules.

 Customer Communication: We maintain open communication with customers,

providing updates on delivery status and addressing any concerns.

By leveraging the benefits of hand-to-hand delivery, Jhola has been able to provide a unique
and personalized customer experience, build strong relationships with our target market, and
optimize our operations for efficiency and cost-effectiveness.

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PAYMENT
Our retail management project is prioritizing customer convenience by offering both online
and offline payment options. Google Pay (UPI) was chosen as the primary method to cater to
the digital preferences of our younger customer base. However, we recognize the importance
of cash transactions for our mature customers and have integrated this option as well.

Benefits of Google Pay (UPI):

• Instant Transactions: UPI enables quick and secure payments, enhancing the overall
shopping experience.

• Enhanced Security: Strong encryption and two-factor authentication protect user data
and minimize fraud risks.

• Improved Financial Transparency: Automated payment logs and real-time

notifications provide accurate financial records and facilitate sales performance tracking.

Balancing Digital and Traditional Payments:

While millennials are often associated with digital payments, cash remains a significant part
of their financial habits. By offering both options, we can cater to a wider range of customer
preferences and improve overall customer engagement.

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SEGMENTATION, TARGETING & POSITIONING [STP]

MARKET SEGMENTATION

Segmentation is a marketing strategy that involves dividing a broad consumer or business

market into smaller, more defined groups based on certain shared characteristics. The goal of
segmentation is to identify and target specific groups of consumers who are more likely to
respond positively to tailored marketing messages, products, or services. Jhola is a small
business started by a group of five students from college and mainly catering to audiences
through Instagram and website. The Segmentation criteria used are:

1. Demographic Segmentation
● Age: Jhola focuses on catering to all age groups except toddlers, who are typically more
active on Instagram and tend to appreciate artistic, unique items and customization.

Gender: Jhola primarily targets women since they are more likely to use tote bags for fashion,
groceries, or daily use, though men could also be a target depending on the tote designs.

● Income Level: Middle-income earners who are willing to spend on unique and handmade
products but are not necessarily looking for luxury goods and this will be profitable as most
of the population of India is middle class.

● Occupation: Students, young professionals, and creatives who might value individual
expression through fashion accessories like your totes.

2. Geographic Segmentation
● Location: Jhola mainly focuses on areas around Mumbai's suburban and urban areas as it is
a recently started business and not feasible to undertake delivery outside Mumbai.

3. Psychographic Segmentation
● Lifestyle: The business targets environmentally conscious consumers who prefer reusable
bags over plastic or disposable ones.

● Values and Interests: People who appreciate art, creativity, and individuality would likely
be drawn to hand-painted totes that are targeted by the business. Further people who follow
sustainable homegrown businesses will be empathetic towards the business.

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4. Behavioural Segmentation
● Purchase Behaviour: Focus on first-time buyers, but create loyalty incentives for repeat
buyers (e.g., discounts for future purchases) also target customers based on their engagement
on Instagram (likes, comments, shares).

● Benefits Sought: Market to individuals who are looking for unique, customizable, or
artistic fashion accessories that reflect their personal style.

● Engagement Level: Segment based on Instagram behaviour—followers who frequently

engage with posts, stories, and reels could be nurtured into loyal customers with.

By applying these segmentation strategies, "Jhola" can develop more personalised and
effective marketing strategies, from tailored Instagram ads to content that resonates with your
ideal customer groups.

TARGETING

Targeting involves identifying the most attractive segments that are likely to respond
positively to a product or service and tailoring marketing strategies to meet their needs. This
helps optimise resource use and maximise returns. Targeting can be classified as:

● Undifferentiated (Mass) Marketing

● Differentiated (Segmented) Marketing

● Concentrated (Niche) Marketing

● Micromarketing

Jhola follows a Concentrated (Niche) Marketing technique because it focuses on targeting an

extremely specific, well-defined market segment. Instead of trying to reach multiple groups,
the business concentrates all efforts on serving one small segment, becoming a specialist in
that area. The business focuses on high-quality, sustainable totes mainly for women from all
age groups by offering unique, handcrafted pieces made from responsibly sourced materials,
the brand appeals to eco-conscious consumers who seek meaningful, symbolic items rather
than mass-produced products. This highly specialised approach allows us to differentiate
from larger mass-produced printed bags.

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POSITIONING

Positioning is the act of designing the company’s offer and image so that it occupies a distinct
and valued place in the target customer’s mind. A good brand positioning helps to guide
marketing strategy by clarifying how a brand is unique, how it is different to competitive
brands, and why consumers should purchase it.

Positioning a tote business in retail involves establishing a clear and unique identity in a
competitive market. Jhola has managed to uniquely position itself in the market especially
among the various retail ventures taking place around the campus as its customised,
sustainable and affordable. Good positioning involves deciding on two things:

· Choosing a Frame of Reference

· Identifying points of parity and points of difference

Choosing a Frame of Reference

Frame of reference serves as a benchmark against which customers can evaluate the benefits
of a company’s offerings. Jhola is a small business which has just entered the market of hand-
painted totes hence the benchmark that the customers will compare it with includes the
expectations set by the competitors:

1) Totes and things:

a) Started in 2015

b) Product: Beige and black totes, customisable

c) Pricing: 800-900 Rs.

d) Place: Instagram, home delivery and website

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2) Totes by Harsha:

a) Started: 2018

b) Product: hand-painted totes and caps, sustainable and customisable

c) Pricing: 500-600

d) Place: Instagram, home delivery and WhatsApp chat.

Although the businesses mentioned above are operating on a much larger scale than we are,
the product types offered are similar and some businesses like Amazon, Myntra etc provide
bulk printed tote bags as well which are cheaper than the hand-painted ones but they lack the
emotion with which our product is created. Further, various manufacturers who provide T-
shirt printing also provide the printing at the cost of the totes at a cheaper cost of 150 each but
need bulk ordering which is not a constraint in our business. Hence the business provides
customised products at the low cost of one hundred fifty as compared to others which give at
500-600 minimum.

Points of Parity

They are the attributes that are shared with another brand and are not unique. The POPs
include: - 1) Spacious: All the bags provided by the competitors are spacious enough to hold
various books and laptops for the students as well as suitable for grocery shopping.

2) Online presence: All the competitors mainly manage their sales and interactions through
online presence with the help of Instagram DMs or websites where the products are easily
displayed and available.

3) Designed bags: The bags are not plain for any of the businesses all of them are either
painted or printed according to the needs of individuals.

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Points of Difference

These attributes differentiate the offering of a company from the competition because
consumers believe that it cannot be found to the same extent in a competitor’s offering. The
PODs include: -

a) Customised: The main attraction of Jhola is that it provides customised bags for its
customers within the span of 5 days and delivers it to their place without any inconvenience
caused to them.

b) Hand painted: These totes are hand painted hence entail the emotional part to the
merchandise further will provide employment to individuals and is a way out from the
capitalist markets and mainstream products provided by Amazon or Myntra.

c) Cheaper: The pricing for the product is 20% - 30% lower than all the businesses that
provide the same or similar services.

The key to positioning is not so much achieving a POD as it is achieving a POP. With Jhola,
we have made sure that customers receive the same kind of service as is provided by the
other companies whilst also adding a few more elements to improve the overall shopping
experience.

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BUYING BEHAVIOUR

The most appropriate buying behaviour for Jhola would be variety-seeking buying
behaviour.

Product Type: Apparel and Accessories, especially handmade and customisable pieces, is
often purchased based on style preferences, personal expression, and variety. Customers may
not always be brand-loyal in this category and are likely to experiment with modern designs,
trends, or customisations.

Uniqueness and Customisation: Since Jhola offer unique designs and customisation options,
customers are encouraged to return for assorted styles, trying new 22 pieces that fit their
evolving tastes. This fits well with variety-seeking behaviour, as customers are drawn to new
and diverse product offerings.

Affordable and Eco-Friendly Appeal: The affordable, eco-friendly nature of the tote bag
means customers can indulge in trying out assorted designs without significant financial risk.
This makes them more inclined to switch between designs and styles for the sake of variety.
Thus, Jhola is likely to attract customers who enjoy the uniqueness of each piece and will
seek out different items for various occasions, reflecting variety-seeking behaviour.

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COSTING

Cost Sheet for Jhola

15 units
Particulars Total cost Cost per unit

Purchases ₹ 1,485.00 ₹ 100.00

Carriage inward ₹ 190.00 ₹ 12.67
Prime cost ₹ 1,675.00 ₹ 112.67

Customisation ₹ 5.00 ₹ 0.33

Tag ₹ 50.00 ₹ 3.33
Packaging ₹ 40.00 ₹ 2.67
Label ₹ 15.00 ₹ 1.00
Selling and distribution ₹ 105.00 ₹ 7.00

Total cost of goods sold ₹ 1,785.00 ₹ 120.00

Profit ₹ 465.00 ₹ 30.00

Sales ₹ 2,250.00 ₹ 150.00

Profit percentage 20%

The cost sheet for Jhola shows a total cost of ₹1,785.00 for 15 units, which breaks down to
₹120.00 per unit. The total sales for these 15 units are ₹2,250.00, resulting in a profit of
₹465.00 or 20%.the initial profit percentage is kept low, using the market penetration
strategy, but the margin will be increased in future.

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SALES REPORT

Sales
Product No. Product Name Customer Name Payment Mode Location
4 Bear-Y Cute Shreya UPI MUMBAI
2 Wishful Dhruv UPI MUMBAI
2 Wishful Hazel CASH MUMBAI
4 Bear-Y Cute Diya UPI MUMBAI
4 Bear-Y Cute Disha UPI MUMBAI
1 Spotify Mix Puneet UPI MUMBAI
3 Meow-Nimal Niharika UPI MUMBAI
4 Bear-Y Cute Preet UPI MUMBAI
3 Meow-Nimal Aashna UPI MUMBAI
3 Meow-Nimal Devanshi UPI MUMBAI
2 Wishful Goon CASH SURAT
3 Meow-Nimal Veejyant UPI MUMBAI
1 Spotify Mix Rashi CASH SURAT
1 Spotify Mix Niti UPI MUMBAI

Highlights:

● We officially started accepting orders on 5th October.

● Orders came in quickly, thanks to a combination of word-of-mouth referrals and our

growing Instagram reach, which helped generate interest and visibility for our products.

● Remarkably, within just 10 days, we were able to cover our total production and sales
costs, demonstrating the strong demand and efficiency of our operations.

● In the first week alone, we successfully sold over Five tote bags, highlighting a positive
start and promising potential for continued sales growth.

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FUTURE GROWTH AND PROSPECTS

Market Expansion Strategy:

1. Expanding Target Market Reach: 25 To cater to a broader audience, we will

introduce unisex designs, appealing to a wider range of customers. Additionally,
launching a business WhatsApp account will enable us to reach individuals whose
parents or grandparents may not use Instagram, our current platform. This will make
it easier for them to browse and place orders for tote bags.

2. Geographic Expansion: As our business continues to grow, expanding beyond

Mumbai into other cities will allow us to tap into larger and more diverse markets.
Our next strategic move will be to offer Pan-India orders, accelerating the growth of
our brand across the country.

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