Effect Of Branding On Consumer Buying Behaviour Towards Fashion Apparels.pdf

PROJECT ON “Effect of branding on Consumer Buying Behaviour towards Fashion Apparels”

SUBMITTED TO Kohinoor Business School BY Sunil Kumar Yadav Roll No.119 Batch: 2017-2019

IN PARTIAL FULFILLMENT OF MASTER OF MANAGEMENT STUDIES (MMS), UNIVERSITY OF MUMBAI

March, 2019

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DECLARATION

I, Mr Sunil Kumar Yadav, hereby declare that this project entitled “Effect

of branding on Consumer Buying Behaviour towards Fashion Apparels “is an outcome of my own efforts under the guidance of Prof. Dr. Bharti Deshpande. The project is submitted to KOHINOOR BUSINESS SCHOOL for the partial fulfilment of the Master of Management Studies (MMS), University of Mumbai.

Signature Name of the student: Sunil Kumar Yadav Date

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CERTIFICATE

This is to certify that Mohd Ahmed Raza Farooqui of Kohinoor Business School has successfully completed the project work titled “Effect of

branding on Consumer Buying Behaviour towards Fashion Apparels “in partial fulfilment of requirement for the completion MMS as prescribed by the University of Mumbai. This project report is the record of authentic work carried out by him during the month of March 2019.

He has worked under my guidance.

Signature Name: Prof Dr. Bharti Deshpande Project Guide (Internal) Date:

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ACKNOWLEDGEMENT

Any accomplishment requires work and effort of many people. This project work is no different. I sincerely appreciate the inspiration; support and guidance of all those people who have been instrumental in making this project a success. I am grateful to Kohinoor Business School for giving me an opportunity to pursue MMS program. I wish to thank Dr. Abbasi Attarwala, Director of Kohinoor Business School who has been a perpetual source of inspiration and offered valuable suggestions.

I am highly indebted to my faculty guide Prof. Dr Bharti Deshpande for his guidance and constant supervision as well as for providing necessary information regarding the project and also for his support in completing the project.

Last but not the least I place a deep sense of gratitude to my family members and my friends who have been constant source of inspiration during the preparation of this project work.

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TABLE OF C O N T E N T S Sr No.

Title

Page No.

1

Introduction

7

1.1

Objective of the Project

8

1.2

Limitations of the Study

9

2.

Review of Literature

10-21

3.

Research Methodology

22

4.

Finding & Analysis

23

5.

Top Brand In India

27-30

6.

7.

Primary Research 31

Finding

Conclusion & 47

Recommendation

8.

Recommendation

48

9.

Bibliography

49

10.

Appendices /Annexure

50-53

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EXECUTIVE SUMMARY

Brand is a Guarantee, an assurance for a defined standard of quality for the first time and for every time but not the vice versa. Brand is name or logo that plays the role in the mind of the customer. Brands do not compete in the product area but compete for the mind space of the customer. A brand once established in the mind of the customer becomes indelible when customer identifies itself with that particular Brand. Branding is an effective marketing strategy tool that has been used with frequent success in the past. Branding can be an effective and powerful tool for all types of business organizations. If brand owners use their product correctly, the payoffs can be substantial. However, if brands are mismanaged, the results can be damaging. This report is aimed to investigate the effect of brand on consumer buying behaviour. How much consumers are prepared to pay for branded products, how important they consider price, brand or other factors during their purchasing decisions. The Report aimed at comprehensive literature review on branding, brand loyalty, brand awareness, brand equity and brand perceptions, price sensitivity and willingness to pay.

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Introduction India is changing with the latest trends in apparels. India is also known for its fashion as well as. Ethnic and traditional apparels have been an identity of India since long. But now-a-days fashion apparels have changed the scenario of Indian market. Modern consumption patterns have changed and evolved where consumers are well aware of fashion trends and updates are easily available to consumers for all segment through different media channels. This has changed consumers motivation behind their fashion consumption as well, some uses fashion as a means of presenting themselves to the society at large. Fashion is a dynamic phenomenon which changes with time; irrespective of whether it is a garment, cosmetics or jewellery, but to define how fashion has changed. Every year a bewildering array of styles are prepared all over the world and replaced the year after with new ones. Fashion clothing industry is completely dependent on constant ideas and new expectations of the youth. We come across a number of brands in our daily lives. Our morning starts with using a toothpaste (Colgate, Pepsodent or Close-up), using a bathing soap (Lux, Dove or Cinthol) and shampoo (Clinic Plus ,Head & Shoulder, Dove or Vatika), wearing clothes ( Allen Solly, Levi’s or Raymonds), breakfast bread (Britannia or Modern) and butter (Amul) or jam (Kissan), lunch and dinner (Nature Fresh or Pillsbury flour and Safal vegetables), morning and evening tea and coffee (Tetley, Nescafe,Tata or Bru), going out in a car (Hyundai I20, Honda Accord or Mercedes Benz). Talking on the cell phone (Apple, MI, Nokia, OnePlus or Samsung), watching television in the evening (LG, Sony or Philips) or listening to music (Philips or Apple) etc. But how often do we think of what all a company does to put a positive imprint (fight for a shelf space) in the mind of the customer? Today nearly all the companies are focusing more and more on building strong brands. The concept of brand equity and its management has come to the fore like never before. More and more companies are refocusing on select strong brands. This project is thus a timely stuffy of the importance of brands, what it takes to build them, what benefits do they give to different stakeholders (organization, distributors and customers), how can they be leveraged, what is the impact of modern technology on branding, branding on the web, branding in mergers and acquisitions etc. examples have been given and cases discussed at every suitable point to bring out an application oriented understanding of “building and managing brands”.

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Objective of the Project  Understanding the concepts of branding and consumer behaviour  To study the Indian apparel market in terms of market size and growth, focusing on men’s apparel market, women’s apparel market, boys‟ and girls‟ apparel market.  To study the demographic, psychological and socio-economic factors which have influence the consumer purchase behaviour for apparel.  To study how consumer behaviour for apparel is influenced by factors like monthly income, gender and peer influence.

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Limitation of the Project  This project is limited due to time constraint as it involves a lot of complex variables which require a detailed study over a period of time.  The project did not cover the effect of branding on a very large scale. Only a small population was studied, which may not be enough to show correct picture.

 The consumers were very reluctant to answer the question and the response may be biased.

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Literature Review 1. Understanding Branding Products are what companies make, but customers buy brands. Therefore marketers go for branding in order to distinguish their offerings from similar products and services provided by their competitors. Additionally, it carries an inherent assurance to the customers that the quality of a purchase will be similar to earlier purchases of the same brand. Branding is a process, a tool, a strategy and an orientation. To build long term relationship with the customers Used as a differentiation strategy when the product cannot be easily distinguished in terms of tangible features. A conscious customer satisfaction orientation process. Kotler (1999) expands on the concept of identity by stating that a brand is capable of conveying up to six different levels of meaning to a targeted audience. This is known as the “Six Dimensions of The Brand” Attributes Benefits

Values Culture Personality User

A brand will communicate specific attributes, such as prestige A brand strengthens a product’s attributes by communicating a set of benefits that makes it more attractive A brand represents a company’s core values and belief system A brand is representative or target a target audiences socio cultural characteristics A Brand can project behavioural personality patterns of targeted consumers The brand, in some cases, can emulate the end user

2. Effect of branding on consumer behaviour. A Consumer’s behaviour may be either positive or negative, depending on the outcome of their learning and evaluating process. The evaluation of consumer attitudes towards brands has quickly become a major part in conducting marketing research. The development of positive attitudes towards brands can lead to not only the sustaining of competitive advantage, but in the bettering of the financial health of a company. Branding has been found to be a key in formation of positive attitudes towards products, especially those involving low-levels of consumer involvement.

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However it has been noted that there are factors that might negate the effects of the formation of positive attitudes. One being that the effects of positive attitudes can dissipate should the consumer not purchase the product within a certain timeframe. Another factor that might negate the effects of positive attitudes might be an overtly high pricing policy, which might have a contrary effect to the consumer’s positive attitudes towards the brand and result in a non-sale.

3. Branding in today’s Markets A central function of branding is the facilitation of the consumer choice process. Due to the complexity of having to select a product amongst thousands of similar offerings, consumers will instinctively attempt to simplify their choice process by selecting brands that have satisfied them in the past. Thus, one can conclude that pleasant past experiences is highly conducive to consumers associating benefits to a brand. One can conclude that a central function of branding is its ability to negate the need for a consumer to seek out information when a need or a want has been recognized, but rather, lead him to a brand that has been satisfying in the past. One must acknowledge however, that frequent purchasing of a brand cannot always be linked to previous experiences, but can alternatively be formed by embedded perceptions. A consumer might strongly favour a brand with no prior purchasing experience. This type of consumer behaviour is based on stimulus provided by direct exposure to advertising campaigns, a company’s PR efforts or even a high concentration of local distribution in an area that is in close proximity to a consumer. In terms of companies’ views on branding, it can induce the natural differentiation of their offerings, which ultimately, will produce a state of competitive advantage. Differentiation can only allow for competitive advantage if the cost of differentiating is significantly lower than the revenue earned by the sales. Differential advantage allows companies to showcase their offer in respects to other competitors in the same marketplace.

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4. Understanding Consumer Buying Behaviour Definition Consumer behaviour refers to the mental and emotional process and the observable behaviour of consumers during searching, purchasing and post consumption of a product or service Consumer behaviour involves study of how people buy, what they buy, when they buy and why they buy. It blends the elements from psychology, sociology, socio psychology, anthropology and economics. It also tries to assess the influence on the consumer from groups such as family, friends, reference groups and society in general. Buyer behaviour has two aspects: the final purchase activity visible to any observer and the detailed or short decision process that may involve the interplay of a number of complex variables not visible to anyone.

5.Factors Affecting Consumer Buying Behaviour Consumer buying behaviour is influenced by the major three factors: 1. Social Factors 2. Psychological Factors 3. Personal Factors.

1. Social Factors Social factors refer to forces that other people exert and which affect consumers’ purchase behaviour. These social factors can include culture and subculture, roles and family, social class and reference groups. Example: By taking into consideration Reference group, these can influence/ affect the consumer buying behaviour. Reference group refers to a group with whom an individual identifies herself/ himself and the extent to which that person assumes many values, attitudes or behaviour of group members. Reference groups can be family, school or college, work group, club membership, citizenship etc.

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Reference groups serve as one of the primary agents of consumer socialization and learning and can be influential enough to induce not only socially acceptable consumer behaviour but also socially unacceptable and even personal destructive behaviour. For example, if fresher student joins a college / university, he/she will meet different people and form a group, in that group there can be behaviour patterns of values, for example style of clothing, handsets which most of group member prefer or even destructive behaviour such as excessive consumption of alcohol, use of harmful and addictive drugs etc. So, according to how an individual references him / her to that particular reference group, this will influence and change his/her buying behaviour. 2. Psychological Factors These are internal to an individual and generate forces within that influence her/his purchase behaviour. The major forces include motives, perception, learning, attitude and personality. Example: Attitude is an enduring organization of motivational, emotional, perceptual and cognitive processes with respect to some aspect of our environment. Consumers form attitude towards a brand on the basis of their beliefs about the brand. For example, consumers of Sony products might have the belief that the products offered by Sony are durable; this will influence those customers to buy Sony products due to this attitude towards the brand.

3. Personal Factors These include those aspects that are unique to a person and influence purchase behaviour. These factors include demographic factors, lifestyle, and situational factors.

Example: Lifestyle is an indicator of how people live and express themselves on the basis of their activities, interests, and opinions. Lifestyle dimension provide a broader view of people about how they spend their time the importance of things in their surroundings and their beliefs on broad issues associated with life and living and themselves. This is influenced by demographic factors and personality.

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E.g. - A CEO or Manager is likely to buy more formal clothes, ties and shoes or PDAs and less informal clothes like jeans as compared to a Mechanic or Civil engineer. So according to their lifestyle and profession, the buying behaviour of people differs from one another.

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6. Consumer Buying Decision Process Consumer buying decision process is the processes undertaken by consumer in regard to a potential market transaction before, during and after the purchase of a product or service. Consumer decision making process generally involves five stages:

A. Problem Recognition Purchase decision making process begins when a buyer becomes aware of an unsatisfied need or problem. This is the vital stage in buying decision process, because without recognizing the need or want, an individual would not seek to buy goods or service.

    

There are several situations that can cause problem recognition, these include: Depletion of stock Dissatisfaction with goods in stock Environmental Changes Change in Financial Situation Marketer Initiated Activities It’s when a person recognizes that she cannot make a call from her mobile phone that’s when she recognizes that her phone has been damaged i.e. the phone has hardware problems and needs to be repaired or buying a new piece.

B. Information Search

After the consumer has recognized the need, he / she will try to find the means to solve that need. First he will recall how he used to solve such kind of a problem in the past, this is called nominal decision making. Secondly, a consumer will try to solve the problem by asking a friend or goes to the market to seek advice for which product will best serve his need, this is called limited decision making.

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   

Sources of information include: Personal sources Commercial Sources Public sources Personal experience

C. Alternatives Evaluation Consumers’ evaluates criteria refer to various dimension; features, characteristics and benefits that a consumer desires to solve a certain problem. Product features and its benefit is what influence consumer to prefer that particular product. The consumer will decide which product to buy from a set of alternative products depending on each unique feature that the product offers and the benefit he / she can get out of that feature. D. Purchase Action

This stage involves selection of brand and the retail outlet to purchase such a product. Retail outlet image and its location are important. Consumer usually prefers a nearby retail outlet for minor shopping and they can willingly go to a far away store when they purchase items which are of higher values and which involve higher sensitive purchase decision. After selecting where to buy and what to buy, the consumer completes the final step of transaction by either cash or credit.

E. Post-Purchase Actions Consumer favorable post-purchase evaluation leads to satisfaction. Satisfaction with the purchase is basically a function of the initial performance level expectation and perceived performance relative to those expectations. Consumer tends to evaluate their wisdom on the purchase of that particular product. This can result to consumer experiencing post purchase dissatisfaction.

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If the consumer’s perceived performance level is below expectation and fail to meet satisfaction this will eventually cause dissatisfaction, and so the brand and/ or the outlet will not be considered by the consumer in the future purchases. This might cause the consumer to initiate complaint behavior and spread negative word-of-mouth concerning that particular product.

7. Branding’s Influence on Consumer Purchasing Behavior The preceding section of this literature reviewed has sought to define the term branding and explain its functions and values as an instrumental marketing tool used in attaining differential and competitive advantage. The following section of this literature review will seek to enlighten the impact branding has on the consumer decision-making process. First however, one must gain clear insight into the definition of consumer buying behavior in order to understand the impact branding has on it. In defining “consumer buying behavior”, one may refer to Assael (1987) who distinguishes four types of consumer buying behaviors. He bases these four consumer types on the varying degrees of involvement and the degree of differentiation amongst the brands in question.

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Consumers who are described as displaying complex buying behavior will expand their beliefs regarding a particular product as a starting point. This stage will eventually lead them to develop positive attitudes regarding the product. These intermediary stages lead them to the final stage of their behavioral pattern, where they consciously make the choice of purchasing the product. Referring to the Assael’s model; one will notice this type of consumer engages in highly involved purchasing experiences being fully aware of the range of brands available and their levels of differentiation. Assael (1987) classifies consumer who exhibit Dissonance-reducing behavior as consumer who are highly involved in the purchasing experience, however see few differences between brands. For this reason, the consumer will seek information on the differentiation of the product offerings and will not be particularly price sensitive when seeking functionality. In the event that this consumer finds him or herself in a market that displays low levels of differentiation, the consumer might result to purchasing influenced by convenience. Like consumers who display complex buying behavior, consumers with dissonance-reducing behavior will seek to establish personal beliefs regarding the product. If fostered adequately, these beliefs with eventually transform into attitudes regarding the product offerings. These attitudes, if favourable, will lead to a thoughtful purchase. Assael (1987) considered consumes displaying habitual buying behavior as consumers who did not experience the same sequence as the previous two behavioral types. Instead of basing their decision-making process on seeking product information pertaining to functionality or characteristics, this type of consumer will purchase based on information gathered passively, via the company’s promotional efforts, by it through the medium of television, 18

radio or print advertising. This behavioral type, as can be seen on Assael’s (1987) model, with low-level involvement products. Differentiating this consumer type is the fact that they being the process with beliefs already embedded in their mind, which they have learnt passively, rather than actively. Variety-seekers are the last behavioral type contained in Assael’s (1987) model. Their typical buying situation is summarized by low-level involvement in a market that displays high levels of product differentiation. In order to fully ascertain the effects that branding has on the consumer decision making process, the Howard-Sheth Decision-making model by Howard and Sheth (1969) is used that explains not only the process of consumer decision-making during purchasing activities, but one that facilitates the understanding of pre and post purchasing activities as well.

The model’s core assumption lies in that the key to determining behavior exhibited by consumers is to fully understand the consumer thought process. The Howard-Sheth model illustrates that cognitive decision-making is the process in which consumers mentally process information that influences his or her selection of brands. 19

8. Positioning Various authors have given different definition of Positioning. Some are:Beckman, Kurtz, Boonee “Product positioning refers to the consumer’s perception of a product’s attribute, use, quality & advantages & disadvantages in relation to competing brands.” Berkowitz, Kerlin, Rudelius “Product positioning refers to the place an offering occupies in the consumer’s mind on important attributes relative to competitive offerings.” 8.1 Usefulness of Positioning As competition intensifies & brands proliferate, consumers tend to differentiate between brands in their own way. Positioning is a conscious attempt on the part of the marketer to accentuate this natural tendency & in the process, impart a distinct identity to his own brand to make it stand out among the competitors. The basis on which this differentiation is achieved reflects consumer preferences or attitudes. The marketer, through his diverse & coordinated actions, tries to influence this process. The concept of positioning is also important in various other aspects of the marketing strategy. Once one is clear about the position one wants, the other marketing decisions like product design, packaging, pricing, method of distribution, etc., become clearer. 8.2 Brand Positioning It should be remembered that positioning is more a reflection of a product and that it stifles the rich meaning of the brand without taking into account all its potentialities. Positioning applies to the process of emphasizing the brands distinctive and motivating attributes in the light of competition. It is based on the analysis of response to the following four questions. POSITIONING  Why?  For whom?  When?  Against whom?

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8.3 Elements of Positioning a) b) c) d)

Evidence has shown that there are four distinct variables that affect the position of a given product. These are:The product itself, The company behind it, The competition, The Consumer

a) The Product: - How important the product is or what meaning it has for the consumer & how he relates to it. The fact that a product involves better ingredients or processes is a matter of indifference unless this knowledge offers distinct advantages to the consumer.

b) The Company: - A product comes from a company & every company has its own history. Generally, the stronger the companies profile the better the image of its products. For instance, consumers may perceive a better the image of a product if it comes from a reputed house like Tata’s. c) The Competition: - Product positioning is invariably done in relation to various competitive offerings. In most cases, the consumers have a tendency to judge a product in comparison to the dominant brand, e.g., all photocopiers are compared with Modi Xerox, all PCs with HCL, toothpastes with Colgate & so on. Leading brand enjoys some edge over others. d) The Consumer: - It should be reiterated that positioning is essentially based on consumer perception rather than factual evaluation. Hence, it becomes necessary to examine how the consumer views a product. Here, it becomes necessary to examine how the consumer views a product. Here, the consumer’s self-perception comes into play along with his cognitive & connotative factors.

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Research Methodology Introduction To understand the methodology used to compile this Project, this chapter is included in order to clarify what an effective methodological philosophy can do to contribute the successful production of a un-biased and critical Project, as well as comprehend the process undergone to reach the pertinent conclusion outlined in chapter 5. This chapter also serves the purpose of justifying and authenticating the research procedures employed in order meet the set objectives and answer the main research question of this Project.

Research Approach Secondary Data  Articles in Newspapers, Magazines and Internet  Study Reports from Internet  Desk Research under the guidance of my guide

Primary Data  Consumer Survey on the effect of brands on their buying behaviour

Data Collection Tools  Questionnaire Survey  Books  Internet

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FINDINGS & ANALYSIS

Secondary Research Findings Consumer Behavior is the study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires. Consumers take many forms, ranging from an eight-year-old child begging her mother for Pokemon shoes to an executive in a large corporation deciding on a multimillion-dollar computer system. The items that are consumed can include anything: Gucci handbags, a massage, democracy, rap music, or hoopster rebel Dennis Rodman. Needs and desires to be satisfied range from hunger and thirst to love, status, or even spiritual fulfillment. Consumer behavior is the study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires.  A consumer may purchase, use, and / or dispose of am product, but these functions may be performed by different people. In addition, consumers may be thought of as role players who need different products to help them play their various parts.

 Fashion terminology is often used by consumers in overlapping ways. A style of apparel is defined by distinctive attributes that distinguish it from others in its category, such as different types of skirts; a fashion is a style that has been accepted by many people; high fashion consists of new, expensive styles offered by upper-end designer. A trend is a general direction that may lead to a fashion. Merchandise classifications include designer, bridge, better, moderate, and budget prices.  Fashions tend to follow cycles. The two extremes of fashion adoption known as collective selection. Perspectives on motivations for adopting new styles include psychological, economic, and sociological models of fashion.

 Marketing activities exert an enormous impact on individuals. Consumer behavior is relevant to our understanding of the dynamics of popular culture.

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 The Internet is transforming the way consumers interact with companies and with each other. Online commerce allows us to locate obscure product from around the world, and consumption communities provide forums for people to share opinions and product recommendations. The benefits are accompanied by potential problems, including the loss of privacy.

 The field of consumer behavior is interdisciplinary; it is composed of researchers from many different fields who share an interest in how people interact with the marketplace. These disciples can be categorized by the degree to which their focus is micro (the individual consumer) versus macro (the consumer as a member of a group or of the larger society).

 There are many perspectives on consumer behavior, but research orientations can roughly be divided into two approaches. The positivist perspective emphasizes the objectivity of science and the consumer as a rational decision maker. The interpretive perspective, in contrast, stresses the subjective meaning of the consumer’s individual experience and the idea that any behavior is subject to multiple interpretations rather than to one single explanation. Current Customer Trends Male Shopping Habits  Men are creatures of habit and find comfort in what is familiar to them – less risk in purchases.  Research shows that nearly 75 per cent of male shoppers buy clothing at the exact same stores they went to three years back.  Men are not as adventurous in fashion as women and changes to wardrobe are far less common.  Male shoppers demand much more customer service.  Male consumer loyalty makes it harder for new businesses or brands to attract new customers.  Male oriented activities like putting greens in the sports department, computer games, celebrity endorsements, all help men try a new store. 24

Marketer’s and brand retailer’s need to capitalize on this consumer trend. It’s no longer just the metrosexual or uber-sexual man. It’s the future consumer and the buyer. In the past men were ignored as mere buyers for their female counterparts. But as the market evolves they will be the biggest buyers for themselves. Brands need to focus on this consumer as he will be the next big thing – The Man. Teenage Power  Teenage consumers influence the purchase patterns of many different age groups.  They are the offspring of the baby boomers and represent over 14 per cent of the total population.  Typical teenager’s room now includes a TV, a stereo, a DVD player, a computer and perhaps even a microwave oven.  Each room is a highly personalized environment that can be custom tailored and personalized as a centre for entertainment.  42 per cent of all Indian teenagers, 18 and over, have their own credit card and increasing – another 14 per cent to have access to the credit cards. Fashion brands need to pay more attention to this consumer segment as they are the future of the marketplace. Increased income levels and exposure to television makes them the consumer with the buying power, especially with the phenomenal growth in the BPO sector where dress codes are essential and thus increasing the opportunities for brands to market themselves and sell to this segment.

Buying Experiences  Popularity of reality television speaks volumes about the heartbeat of the consumer.  Insecurity and a shyness and a new perspective about the outside world cause people to enjoy vicarious adventures enacted by ordinary souls.  Family values become more important.

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 Historical movies that present plot lines about overcoming danger and winning against greater odds connect us to our past.  Women are being drawn to plots with warm and fuzzy endings – men to macho excitement.  People are watching more newscasts and making a bigger effort to understand current events.  Marketers and businesses alike need to focus on these consumer trends and make a detailed outline as to how they need to innovate to cater to the masses and not just a niche crowd as that’s where the major business lies and the brand image gets identity in the marketplace.  Innovation, promotion and marketing a brand is essential, but only after one understands the psychology of the marketplace and develops products that match it.

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Top Brands in India PROVOGUE

The Company was incorporated on November 11, 1997 as Acme Clothing Private Limited. Provogue stands for fashion and not pure apparel; this in itself makes it the leader instantly. Its designs are cutting edge and radical, which epitomizes its mantra “Redefining Fashion”. The Company launched the fashion brand ‘Provogue’ in March 1998 and within a short span of seven (7) years; it has established a strong brand identity in the minds of the urban consumer. The Company’s philosophy of ‘creating trends’ in fashion, an aggressive marketing strategy, coupled with high profile promotional events and its distribution strategy of retailing through selective stores and malls has resulted in Provogue being now positioned as a leading fashion brand in India.

The Company acquired from Acme Global the entire business of export of textile; textile machinery and textile related chemicals and operates these businesses as its division under the name Acme Global.

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 Louis Philippe Louis Philippe's range of superbly crafted garments makes an exclusive fashion statement that is accepted as a status symbol, recognized by its distinctive icon — 'The Upper Crest'.

 Van Heusen Van Heusen has redefined corporate attire through continuous product innovation and exclusive collections.

 Allen Solly Allen Solly popularized the Friday dressing concept in India. It has won the IFA Images 2001 'Best Brand Award' in the readymade menswear apparel category.

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 Peter England This mid-segment shirt has effectively penetrated the mini metros. It has won several awards, including 'Shirt of the Year 2000' and 'India's most admired menswear brands 2001'.

LEVI’S FASHION BRAND

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In the list of top market players in the fashion industry, the most shining name is Levis fashion brand. Levi Strauss & Co. (LS&CO) was named after its founder Levi Strauss in 1853. Since then the journey of its success has been going on. It has cast its spell in more than 110 countries. Levis as leading jeans brand has entered into the international parlance and flooding the market with its designer apparels. Levis products are marketed under various brand names like Levis, Dockers and Levi Strauss Signature.

UNITED COLORS OF BENETTON

The United Colors of Benetton (UCB) is changing hues in India. Flush with plans of capturing 80,000 sq ft of retail space across the country before the year ends, coupled with a stringent fabrication and merchandising exercise, United Colors of Benetton is aiming to shore up volume and value sales, while also presenting a larger-than-life facet of its retail look.

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Primary Research Findings Which of the following fashion brands are you aware of?

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Which of the following brands of Denim are you aware of?

32

How often do you change your readymade garments?

39

40 35

30 25

20 15

11

10 5 0 0

Frequently

Occasionally

Never

How often do you purchase clothes?

18 18 15

16

14

12

12 10 8 5

6

4 2 0

Once a Week

Once in a Month

Once in 3 Months

Once in 6 Months

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Factors you consider while purchasing a readymade garments RANK THEM ACCORDING YOUR PRIORITY:

C

C

B

F

P

A

l

o

r

a

r

v

o

l

a

s

i

a

t

o

n

h

c

i

h

r

d

i

e

l

o

a

T

n

b

y

/

i

p

T

l

e

r

i

e

t

n

y

d

4

3

5

6

2

1

34

6 6 5 5 4 4 3 3 2 2 1 1

0

Cloth Type

Color

Brand

Fashion/Trend

Price

Availability

Listed below are statements about shopping behavior for clothes and clothing fashions. Please check one box for each statement to indicate the extent to which you agree or disagree with each statement.

Agree

Neither

Disagree

agree Nor

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Disagree

I buy clothes

0

2

48

12

4

34

14

6

30

I like, regardless of current fashion.

I buy new fashion looks only when they are well accepted.

I am not as concerned about fashion as I am about modest prices and

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wearability.

I prefer to

6

4

40

10

18

22

buy wellknown designer labels rather than take a chance on something new.

I am confident that I have good taste in clothing.

37

38

Who influence you to purchase the brand?

39

In which media you have seen the advertisement of these brands?

40

Which of the following would affect you choice of readymade garments?

41

When you buy a readymade garment during a promotional campaign, will you by the product after the campaign?

42

Which media do you prefer more for fashion ads (in order of your preference)?

43

If TV, is it because

44

If magazine, is it because of

45

If Newspaper / pamphlets, if it because of

46

CONCLUSIONS & RECOMMENDATIONS Readymade garment is really becoming big business. The domestic market too presents immense opportunities with consumer spending on the rise and organized retailing growing. But should a garment player go global or sell at home? Some players such as Raymond and Zodiac Clothing have chosen to be aggressive in both markets. Even as they plan to improve their retail presence over the next three years, both are expanding their manufacturing facilities in Bangalore to cater to the expected rise in international demand. Interestingly, major export players such as Ambattur Clothing (Color Plus) and Acme Clothing (Provogue) have, in the past, placed their bet on the domestic market. These companies quickly managed to give bigger players a run for their money. But, as Color Plus discovered, further growth could come only from a wider distribution network, which needs deep pockets. Raymond stepped in and acquired the brand. Operating in the domestic market poses an entirely different set of challenges from that of the export market. It requires more than manufacturing expertise and a heightened fashion-consciousness. Established names, however, do not have it easy either. The entry of international brands such as Tommy Hilfiger into the Indian market is likely to be followed by more players. Competition is likely to hot up and keep domestic players on their toes. The retail landscape is changing, and the traditional distribution strategy of apparel players is in for an overhaul. Figuring out which price point to operate in is yet another challenge for an apparel maker. Challenging, but interesting, times are ahead for the readymade garment industry. The rapid growth in recent years of various retail formats, such as departmental stores and malls, has given a fillip to the industry. A boost to the industry would come from allowing foreign direct investment in retailing, which would increase space considerably and also bring international practices to India. This may also encourage newer entrants, once the distribution costs decline. Private labels tend to do well during recessions. Retailers enjoy better margins on their own labels, and are also able to price them lower. Players such as Madura Garments, which have a presence in the segment through Allen Solly, believe that once women try out private labels and get more accustomed to Western wear, they are likely to upgrade to a more expensive brand. But players may still find it tough to cater to this market. They would have to move towards a low-margin, volume-driven business. This would also need a far larger distribution network than what exists today. Few retail formats in India operate on a truly large scale. Giants such as Wal-Mart and Carrefour, which have the ability to drive volumes, are what the industry would need. 47

Recommendations 1. Rural market. Knowing the huge size of rural population of India it is natural that the rural market is attractive to marketers. Company should study purchasing power, life styles, buying habits, optimal usage level. Brooke Bond for instance could capture the crux of the challenge when they started marketing Re 1 tea packets. 2. Understanding role of children. Marketers should study the role of children in buying decision – as influencers and decision makers. However, the challenge remain how does one communicate with children? Advertising recalls being more in the case of children-one way is clear but with every one trying to apply the same technique, marketers will be gradually disillusioned with the method. Possible ways of circumventing this problem may be to market the product through schools or to use the imitative tendencies of children by influencing their peers. 3. Distribution. Distribution cost are an increasing component of marketing cost marketers will have to find ways through which one can achieve efficient as well as economic distribution. One solution is joint distribution or by adopting direct marketing. a) Packaging. With self-shopping gaining grounds and shelf space getting limited, packaging becomes an important factor that marketers have to be concern about. Companies should identify the requirements and pack commodities according to demand.

b) Customer service challenge. In an increasingly competitive market, retention of a customer is possible only through better service. Marketers will require devoting to more efforts to understand the customer view of quality and convenience. Marketers should do regular research to find this fact. c) Adaptation to newer environment. As government withdraw entry barriers and relax restriction on merger or takeover many companies should install superior technology and resort to merger – acquisition route to make their unit more efficient. d) Creativity and innovation in overall marketing programs. Marketers have to develop organizational structure style and functioning, which enable them to act fast and bring in innovations in their marketing programs. 48

BIBLIOGRAPHY  Kevin Lane Keller (2004), Strategic Brand Management, 2 nd edition, Pearson Education, New Delhi  Consumer Behavior, 6th Edition, by Lean G.Sehiffman and Leslic lazan Kanuk.  Consumer Behavior, 6th Edition, by Hawkins, Best ad Coney.  Brand Equity (Economic Times)  www.wikipedia.com  www.levis.com  www.peterengland.com  www.raymonds.com

 www.excalibure.com

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ANNEXURE BRANDING & READYMADE GARMENTS Questionnaire (Tick whichever applicable) CONTACT INFORMATION: Name: Mr.  Ms. ________________________________________ Address: _________________________________________________ City: ____________________________________________________ Phone :( O) _________________________ (R) __________________

OTHER INFORMATION: Age: Marital status:  Single

 Married

Occupation: (tick one)  Businessman  Executive  Government Service  Academics  House-Wife  Self-employed  Student  Others ________________________ (Please Specify)

Monthly Household Income:  <10000  10000-15000

 15000-20000

 >20000

1. Which of the following fashion brands are you aware of?  Levi’s Plus  Parx  Provogue philippe  Van Heusen Excalibur  Arrow

 Dockers  Blackberry’s  Park Avenue Peter England



Color

 Zodiac Louis 

 Others(please specify)

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2. Which of the following brands of Denim are you aware of?  Lee  Black  Wrangler  Numero Uno  Monte Carlo Lites  Lee Cooper specify)

 Levis Strauss  Pepe  Others

(please

3. How often do you change your readymade garments?  Frequently  Never

 Occasionally

4. How often do you purchase clothes?  Once a week  Once in 3 months

 Once in a month  Once in 6 months

5. Factors you consider while purchasing a readymade garments? RANK THEM ACCORDING YOUR PRIORITY: Cloth type  Color  Fashion/Trend  Price

 Brand  Availability

6. Listed below are statements about shopping behavior for clothes and clothing fashions. Please check one box for each statement to indicate the extent to which you agree or disagree with each statement. A g r e e

Neither Agree Nor Disagree

D i s a g r e e

I buy clothes I like, regardless of current fashion. I buy new fashion looks only when they are well accepted. I am not as concerned about fashion as I am about modest prices and wearability. 51

I prefer to buy well-known designer labels rather than take a chance on something new. I am confident that I have good taste in clothing.

7. Who influence you to purchase the brand?  Family  Self

 Friends  Other

 Advertisement

8. In which media you have seen the advertisement of these brands  TV  Newspaper  Other

 Magazine  Internet

9. Which of the following would affect you choice of readymade garments? No effective at all

Affecting the most

Cloth Type Price Promotiona l campaigns

10. When you buy a readymade garment during a promotional campaign, will you by the product after the campaign? Yes Likely Don’t Know I will most likely written over to my previous brand I will switch over to previous brand

    

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11. Which media do you prefer more for fashion ads (in order of your preference)?  TV  Newspaper / pamphlets  Any other (specify)

 Magazines  Radio Hoardings / bill boards

12. If TV, is it because  It is an audio - visual medium  Overall presentation

 Entertainment value

13. If magazine, is it because of  It is a good source of latest trends  Longevity of message

Overall presentation  Any other (specify)

14. If Newspaper / pamphlets, if it because of  Inexpensive source of Information  Available in many languages

 Mass coverage  Any other (specify)

15. If Radio, Is it because  Audio medium  Medium for travelers and car riders

 Entertainment value  Any other (specify)

16. If Hoardings, is it because  It is an attention gaining medium message  Colorful and attractive



Conveys

direct

 Any other (specify)

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