The Art of Cultivating Fans: Merchandising Strategies for Non-Retailers to Boost Revenue and Build Brand Loyalty

1.Provide example of non retailers around the globe who were immensely successful in merchandising

1. Red Bull - Although primarily known for their energy drinks, Red Bull has successfully created and marketed merchandise, including clothing, hats, backpacks, and even sports equipment. Their merchandise is popular among extreme sports enthusiasts and is often seen being worn by athletes in Red Bull-sponsored events.
2. Harley-Davidson - While Harley-Davidson is primarily known for manufacturing motorcycles, the company has also built a successful merchandise business. Harley-Davidson-branded merchandise includes clothing, accessories, and even home decor items. The company's merchandise is popular among motorcycle enthusiasts and has become a symbol of the biker lifestyle.
3. Nike - Nike is one of the world's largest athletic apparel and footwear manufacturers, but the company has also been successful in merchandising. Nike has created and marketed a wide range of merchandise, including clothing, accessories, and even home gym equipment. Their merchandise is popular among athletes and fitness enthusiasts.
4. Disney - Disney is a multinational entertainment conglomerate that produces and distributes movies, television shows, and theme park attractions. The company has also built a massive merchandise business that includes clothing, toys, home decor, and much more. Disney's merchandise is popular among children and adults alike and is often seen as a symbol of childhood nostalgia.

These are just a few examples of non-retailers who have been successful in merchandising. By creating high-quality products and leveraging their strong brand recognition, these companies have been able to diversify their revenue streams and build successful merchandise businesses.

2. Success stories for Indian Companies

1. Royal Enfield - Royal Enfield is a motorcycle manufacturer that has built a successful merchandising business. The company's merchandise includes clothing, accessories, and even lifestyle products like leather bags and helmets. Royal Enfield's merchandise is popular among motorcycle enthusiasts and has become a symbol of the company's brand identity.
2. Amul - Amul is a dairy cooperative that has built a successful merchandising business around its mascot, the Amul girl. The company's merchandise includes t-shirts, mugs, and other products featuring the iconic Amul girl. Amul's merchandise is popular among Indians of all ages and has become a part of Indian pop culture.
3. Mahindra - Mahindra is a multinational automobile manufacturer that has built a successful merchandising business around its brand. The company's merchandise includes clothing, accessories, and even toys and models of its vehicles. Mahindra's merchandise is popular among automotive enthusiasts and has become a symbol of the company's brand identity.
4. Tata Group - Tata Group is a multinational conglomerate with businesses in a variety of industries. The company has built a successful merchandising business around its brand, which includes clothing, accessories, and other products featuring the Tata Group logo. Tata Group's merchandise is popular among Indians and has become a symbol of the company's long-standing legacy and brand reputation.

3.Provide parameters for a non retailer to decide whether to enter in merchandising ?

1. Brand recognition and customer loyalty: A strong brand with a loyal customer base can be a valuable asset in the merchandising business. Companies that have built a strong brand and have a loyal customer base may find it easier to sell merchandise that is associated with their brand.
2. Manufacturing capabilities and supply chain: Non-retailers who are considering entering the merchandising business should evaluate their manufacturing capabilities and supply chain. They need to ensure that they can produce high-quality merchandise at a reasonable cost and deliver it to customers in a timely manner.
3. Market demand and competition: Non-retailers should evaluate the market demand for their merchandise and assess the competition in the market. They need to determine if there is a demand for their merchandise and if they can compete with established players in the market.
4. Merchandising costs and ROI: Merchandising can be a costly business, and non-retailers need to evaluate the costs associated with producing and selling merchandise. They need to determine if the potential return on investment (ROI) justifies the cost of entry.
5. Strategic alignment: Non-retailers should also consider if merchandising is strategically aligned with their business goals and objectives. They need to determine if entering the merchandising business will help them achieve their long-term goals and if it aligns with their core values.

By evaluating these parameters, non-retailers can make an informed decision about whether to enter the merchandising business and how to position themselves for success.

4.Latest trends in Middle east, Asia & Africa in merchandising , specially for non retailers?

1. Sustainability - Consumers in Middle East, Asia, and Africa are becoming increasingly conscious of sustainability and are looking for products that are eco-friendly and sustainable. Non-retailers can leverage this trend by creating merchandise that is made from sustainable materials and promotes eco-friendliness.
2. Personalization - Personalization is a growing trend in merchandising, where businesses create customized products that cater to individual customer needs. Non-retailers can leverage this trend by offering personalized merchandise that is unique and tailored to each customer.
3. Digital Merchandising - With the growth of e-commerce in Middle East, Asia, and Africa, digital merchandising is becoming more important. Non-retailers can leverage digital platforms to promote and sell their merchandise, including social media, e-commerce websites, and mobile apps.
4. Cultural Heritage - Consumers in Middle East, Asia, and Africa have a strong connection to their cultural heritage and are looking for products that reflect their cultural identity. Non-retailers can leverage this trend by creating merchandise that celebrates local culture and traditions.
5. Local Sourcing - Consumers in Middle East, Asia, and Africa are increasingly looking for locally sourced products that support the local economy. Non-retailers can leverage this trend by sourcing materials and products locally, and promoting the use of local resources.

By following these latest trends, non-retailers in Middle East, Asia, and Africa can develop effective merchandising strategies that cater to the unique needs and preferences of their customers.

5. Market Size for Merchandising

1. Middle East - According to a report by Euromonitor International, the Middle East and North Africa (MENA) region's licensed merchandise market size was valued at $8.2 billion in 2019. The report also states that the demand for licensed merchandise is growing rapidly in the region due to the increasing popularity of Western media and entertainment.
2. Asia - The Asia Pacific region is one of the largest and fastest-growing markets for licensed merchandise. According to a report by Licensing International, the licensed merchandise market size in Asia Pacific was estimated at $29.8 billion in 2019, making it the second-largest market after North America.
3. Non-Retailers - While there is no specific data available on the market size of merchandising for non-retailers in Middle East and Asia, it is worth noting that non-retailers such as sports teams, celebrities, and corporations have been successful in merchandising their brand and products. For example, Indian Premier League (IPL) teams have built a successful merchandise business, with the market for IPL merchandise in India estimated to be worth $100 million annually.

6. Consulting Opportunity to execute merchandising strategy

1. Market Research - The first step in executing a merchandising strategy is to conduct market research to understand customer preferences and demand. This includes identifying target customer segments, analyzing customer behavior and purchasing patterns, and evaluating the competition. By conducting market research, Indian OEMs can develop a better understanding of their customers' needs and preferences, and use this information to create merchandise that resonates with their target audience.
2. Merchandise Development - Based on the insights gained from market research, the next step is to develop merchandise that aligns with the brand and customer preferences. This includes identifying the type of merchandise to be developed, selecting materials and designs, and evaluating manufacturing and production costs. By developing merchandise that aligns with customer preferences, Indian OEMs can improve customer loyalty and brand recognition.
3. Sales and Distribution - Once the merchandise is developed, the OEM needs to develop a sales and distribution strategy. This includes determining the pricing strategy, selecting the sales channels, and developing a distribution network. By selecting the right sales channels and distribution network, Indian OEMs can improve their reach and increase sales.
4. Marketing and Promotion - To promote the merchandise and increase sales, the OEM needs to develop a marketing and promotion strategy. This includes identifying the target audience, selecting the appropriate marketing channels, and developing promotional activities. By leveraging the right marketing channels and promotional activities, Indian OEMs can increase brand awareness and generate interest in their merchandise.
5. Performance Tracking - Finally, the OEM needs to track the performance of their merchandising strategy. This includes monitoring sales, evaluating customer feedback, and analyzing key performance metrics. By tracking performance, Indian OEMs can identify areas of improvement and adjust their merchandising strategy to improve results.

By following this consulting framework, Indian OEMs can develop and execute an effective merchandising strategy that helps them achieve their business goals and improves customer engagement and loyalty.

7. Cost benefit analysis for Non retailers to execute merchandising strategy

1. Merchandise Development Costs - The first step in executing a merchandising strategy is developing merchandise that aligns with the brand and customer preferences. The cost of merchandise development can vary depending on the type of merchandise, design, and materials used. Assuming a development cost of INR 50 lakhs, the total cost for developing merchandise for the first year would be INR 50 lakhs.
2. Manufacturing and Production Costs - Once the merchandise is developed, the non-retailer will need to manufacture and produce it. The cost of manufacturing and production can vary depending on the quantity produced and the materials used. Assuming a production cost of INR 500 per unit, the total production cost for manufacturing 10,000 units of merchandise would be INR 50 lakhs.
3. Sales and Marketing Costs - To sell the merchandise, the non-retailer will need to invest in sales and marketing activities. This can include advertising, promotions, and events. Assuming a sales and marketing cost of INR 10 lakhs, the total cost for sales and marketing activities for the first year would be INR 10 lakhs.
4. Revenue - To generate revenue through the sale of merchandise, the non-retailer would need to determine the sales price and sales volume. Assuming a merchandise sales price of INR 1000 per unit, the non-retailer would need to sell 50,000 units of merchandise to generate a revenue of INR 5 crore.

Based on the assumptions above, here is the cost benefit analysis:

Total Cost = Merchandise Development Costs + Manufacturing and Production Costs + Sales and Marketing Costs = INR 50 lakhs + INR 50 lakhs + INR 10 lakhs = INR 1 crore

Total Revenue = Merchandise Revenue = INR 5 crore

Profit = Total Revenue - Total Cost = INR 5 crore - INR 1 crore = INR 4 crore

Based on this analysis, non-retailers can expect to earn a profit of INR 4 crore by executing a merchandising strategy. However, it's important to note that these figures are based on the assumptions provided and actual results may vary. Non-retailers may need to adjust their cost structure or sales volume assumptions to achieve their target profit.