Professional Documents
Culture Documents
Submitted By:
Nisha Jain
1|Page
Preface
MRP
Program
of
is
prepared
MBA
as
curriculum
the
of
partial
Rajasthan
fulfillment
Technical
for
Two-Year
University,
degree
Kota.
It
is
has
been
made
to
offer
the
most
authenticate
position
with
accuracy.
2|Page
DECLARATION
This is to certify that Market Research Project Report on A
A Study of Brand Preference towards
Men Wear Special Reference to Pant & Shirt
Shirt submitted by me in Masters of Business
Administration Program from Vision School Of Management, Chittorgarh [Rajasthan technical
university, Kota] is my original work and the project report has not formed the basis for the award of
any diploma, degree, associate ship, fellowship or similar other titles. It embodies the original work
done by me under the able guidance and supervision of Nisha Jain (Guide & Faculty) Vision School
of Management, Chittorgarh.
------------------------------
----------------------------
Nisha Jain
Project Guide
M.B.A. IV Sem.
Date---------------------
Date-------------------
3|Page
ACKNOWLEDGEMENT
The successful completion of a Market Research Project Report requires guidance & help
from a number of people. I was fortunate to have all the support from my teachers. I therefore
take this opportunity to express my profound sense of gratitude to the all those who extended
their whole hearted help and support to me in completing the project study report work on
A Study of Brand Preference towards Men Wear
Special Reference to Nimbahera
I also express my
deep sense of gratitude to Nisha Jain (Guide & Faculty), who has helped
us to do our project. We also thank to other faculty of VSM & respondents for his valuable
help in each stage of the project. Because of his co-operation and continuous guidance
successful completion of this project study report was made possible.
I am sincerely thankful to Dr. A.L. Jain (Director, Vision School of Management) for
allowing me to undertake the report and making available all facilities for the successful
completion of the report besides guiding me to pursue the study on proper line.
I also express my deep sense of gratitude towards Mr. Mukesh Kumawat, Mr. Vibhor
Paliwal, Mr. Rahul Jain, Ms. Pratibha Pagaria, Ms. Shobhika Tyagi (Faculty), P.L.
Dashora (Librarian) & all faculty members.
No Acknowledge would suffice for the support my family members, my training colleagues,
classmates & friends. Lastly, I extend my thanks to all those whose name have not been
mentioned way in successfully carrying out the project report.
ThankingYou:
4|Page
EXECUTIVE SUMMARY
The project have to learn both the art and science of retailing by closely following how the other parts
of the world are organizing, managing, and coping up with new challenges in an ever-changing
marketplace. In the project use innovative retail formats to enhance shopping experience and try to
understand the regional variations in consumer attitudes to branded garments. In report put the efforts
in the following aspect to improve its Brand Image:
1.
Retailing sector of India can be split into two segments. They are the informal and the formal retailing
sector. The informal retailing sector is comprised of small retailers. For this sector, it is very difficult
to implement the tax laws. There is widespread tax evasion. It is also cumbersome to regulate the
labour laws in this sector. As far as the formal retailing sector is concerned, it is comprised of large
retailers. Stringent tax and labour laws are implemented in this sector. If the retail industry is divided
on the basis of retail formats then it can be split into the modern format retailers and the traditional
format retailers. The modern format retailers comprise of the supermarkets, Hypermarkets,
Departmental Stores, Specialty Chains and company owned and operated retail stores The traditional
format retailers comprise of Kiranas, Kiosks, Street Markets and the multiple brand outlets. The retail
industry can also be subdivided into the organized and the unorganized sector. The organized retail
sector occupies about 3% of the aggregate retail industry in India.
5|Page
Table of Content
Certificate
Preface
II
Declaration
III
Acknowledgement
IV
Executive Summary
Table of Contents
VI
Chapter No.
TITLE
PAGE NO.
Industry Introduction
1-32
33-46
Conceptual Framework
47-75
Review of Literature
76-86
Research Methodology
87-90
91-105
106
Suggestion
107
Bibliography
108
Annexure
109-110
6|Page
Chapter No.: 01
Indian Textile Industry
The textile industry is the largest industry of modern India. It accounts for over 20 percent of
industrial production and is closely linked with the agricultural and rural economy. It is the
single largest employer in the industrial sector employing about 38 million people. If
employment in allied sectors likes ginning, agriculture, pressing, cotton trade, jute, etc. are
added then the total employment is estimated at 93 million. The net foreign exchange
earnings in this sector are one of the highest and, together with carpet and handicrafts,
account for over 37 percent of total export earnings at over US $ 10 billion. Textiles, alone,
account for about 25 percent of Indias total for ex earnings.
Indias textile industry since its beginning continues to be predominantly cotton based with
about 65 percent of fabric consumption in the country being accounted for by cotton. The
industry is highly localized in Ahmedabad and Bombay in the western part of the country
though other centers exist including Kanpur, Calcutta, Indore, Coimbatore, and Sholapur.
The structure of the textile industry is extremely complex with the modern, sophisticated and
highly mechanized mill sector on the one hand and the hand spinning and hand weaving
(handloom) sector on the other. Between the two falls the small-scale power loom sector.
The latter two are together known as the decentralized sector.
government has granted a whole range of concessions to the non-mill sector as a result of
which the share of the decentralized sector has increased considerably in the total production.
Of the two sub-sectors of the decentralized sector, the power loom sector has shown the faster
rate of growth. In the production of fabrics the decentralized sector accounts for roughly 94
percent while the mill sector has a share of only 6 percent. Being an agro-based industry the
production of raw material varies from year to year depending on weather and rainfall
conditions. Accordingly the price fluctuates too. India's trade in textiles and its share in
world trade can be categorized as follows:
7|Page
India's Share in
World Trade
Yarn
22%
Fabrics
3.2%
Apparel
2%
Made-ups
9%
Over-all
2.8%
Type
CAGR (1993-98)
Yarn
31.79%
Fabric
9.04%
Made-ups
15.18%
Garment
6.795%
Global Scenario
The textile and clothing trade is governed by the Multi-Fibre Agreement (MFA) which
came into force on January 1, 1974 replacing short-term and long-term arrangements of
the 1960s which protected US textile producers from booming Japanese textiles exports.
Later, it was extended to other developing countries like India, Korea, Hong Kong, etc.
which had acquired a comparative advantage in textiles. Currently, India has bilateral
arrangements under MFA with USA, Canada, Australia, countries of the European
Commission, etc. Under MFA, foreign trade is subject to relatively high tariffs and
export quotas restricting Indias penetration into these markets. India was interested in
the early phasing out of these quotas in the Uruguay Round of Negotiations but this did
not happen due to the reluctance of the developed countries like the US and EC to open
up their textile markets to Third World imports because of high labour costs. With the
removal of quotas, exports of textiles have now to cope with new challenges in the form
of growing non-tariff / non-trade barriers such as growing regionalisation of trade
between blocks of nations, child labour, anti-dumping duties, etc.
Nevertheless, it must be realised that the picture is not all rosy. It is now being admitted
universally and even officially that the year 2005 AD is likely to present more of a
challenge than opportunity. If the industry does not pay attention to the very vital needs of
modernisation, quality control, technology upgradation, etc. it is likely to be left behind.
8|Page
Already, its comparative advantage of cheap labour is being nullified by the use of
outmoded machinery.
With the dismantling of the MFA, it becomes imperative for the textile industry to take on
competitors like China, Pakistan, etc., which enjoy lower labour costs.
In fact the
seriousness of the situation becomes even more apparent when it is realised that the nonquota exports have not really risen dramatically over the past few years. The continued
dominance of yarn in exports of cotton, synthetics, and blends, is another cause for worry
while exports of fabrics is not growing. The lack of value added products in textile
exports do not augur well for India in a non-MFA world.
Textile exports alone earn almost 25 percent of foreign exchange for India yet its share in
global trade is dismal, having declined from 10.9 percent in 1955 to 3.23 percent in 1996.
More significantly, the share of China in world trade in textiles, in 1994, was 13.24 percent,
up from 4.36 percent in 1980. Hong Kong, too, improved its share from 7.06 percent to
12.65 percent over the same period. Growth rate, in US$ terms, of exports of textiles,
including apparel, was over 17 percent between 1993-94 to 1995-96. It declined to 10.5
percent in 1996-97 and to 5 percent in 1997-98. Another disconcerting aspect that reflects
the declining international competitiveness of Indian textile industry is the surge in imports
in the last two years. Imports grew by 12 percent in dollar terms in 1997-98, against an
average of 5.8 percent for all imports into India. Imports from China went up by 50 percent
while those from Hong Kong jumped by 23 percent.
9|Page
conclusion of the Uruguay Round in 1994, the MFA was replaced by the Agreement on
Textiles and Clothing (ATC), which had the same MFA framework in the context of an
agreed, ten year phasing out of all quotas by the year 2005. The section that follows takes a
brief look at the history of these protectionist regimes as also a more detailed look at the MFA
and the ATC.
10 | P a g e
11 | P a g e
Under the MFA, product coverage was extended to include textiles and clothing made of
wool and man-made fibres (MMF), as well as cotton and blends thereof. With regard
to applications of safeguard measures, import restrictions could be imposed
unilaterally in a situation of actual market disruption in the absence of a mutually
agreed situation. However, in situations involving a real risk of market disruption
only bilateral restraint agreements were possible. The Textile Surveillance Body
(TSB) was set up to monitor disputes regarding actions taken in response to market
disruptions.
The MFA permitted certain flexibility in quota restrictions for the exporters so that they could
adjust to changing market conditions, export demands and their own capabilities. The
MFA also provided for higher quotas and liberal growth for developing countries
whose exports were already restrained. The MFA asked the participants to refrain
from restraining the trade of small suppliers under normal circumstances. In general,
developed countries, under MFA, chose not to impose restrictions on imports from
other developed countries
The TSB ensured compliance by all parties to the obligations of bilateral agreements or
unilateral agreements. It called for notification of all restrictive measures. A Textiles
Committee established as a management body consisting of all member countries
was the final arbiter under the MFA and worked as a court of appeal for disputes that
could not be resolved under TSB.
Unsatisfactory experience with several extension protocols of the MFA, retention clauses,
such as good will, exceptional cases, and anti-surge and other trade related factors led
the developing countries to press for the inclusion of the textile issue in the agenda of the
GATT Ministerial meeting.
The eventual outcome of prolonged negotiations was the Agreement on Textiles and
Clothing.
12 | P a g e
brought
GATT
Step 1
16
under
quota should
(including
open up, if
removal of quotas)
1994
percent
was 6%
percent
(minimum 6.96
Step 2
1st Jan 1998 31st Dec 2002
Step 3
1st Jan 2002 31st Dec 2004
Step 4
rate
annually
as base)
17 percent
8.70
18 percent
annually
11.05
percent
49 percent (maximum)
annually
No quotas left
percent
elimination
of
13 | P a g e
1990
1997
Billion US$
% share
Billion US$
% share
Hong Kong
7.99
7.68
14.6
9.42
China
7.10
6.82
13.83
8.92
South Korea
6.04
5.81
13.35
8.61
Germany
14.00
13.46
13.05
8.42
Italy
9.80
9.43
12.9
8.32
Taiwan
6.13
5.90
12.73
8.21
USA
5.03
4.83
9.19
5.93
France
7.21
4.65
5.86
5.64
Belgium-
6.54
6.29
7.01
4.52
Japan
5.88
5.65
6.75
4.35
74.36
71.5
110.62
71.37
World
104.00
100.00
155.00
100.00
Luxembourg
14 | P a g e
1990
1997
Billion US$
% share
Billion US$
% share
China
9.41
9.14
31.8
21.06
Hong Kong
15.37
14.92
23.11
15.30
Italy
12.07
11.72
14.85
9.83
USA
2.57
2.49
8.68
5.75
Germany
7.82
7.59
7.29
4.83
Turkey
3.44
3.34
6.7
4.44
France
4.65
4.51
5.34
3.54
UK
3.08
2.99
5.28
3.50
South Korea
8.11
7.87
4.19
2.77
Thailand
2.86
2.78
3.77
2.50
69.38
67.36
111.01
73.52
World
103.00
100.00
151.00
100.00
15 | P a g e
Country
1995Ranks and
1996Ranks and
Average Price
Average Price
Rank Price
CAGR 1994-96
Rank in
Rank in
Avg. Price,
Rank in
Rank in
Avg. Price,
Value
Volume
Ecu/Kg
Value
Volume
Ecu/Kg
China
Turkey
Hong Kong
Tunisia
Morocco
Poland
India
10
Bangladesh
10
10
Romania
10
10
Indonesia
10
10
16 | P a g e
17 | P a g e
manufacturers shifting base to Eastern Europe, which provides similar advantages of cheap
labour and proximity.
According to projections by TECS, EU imports of ready-made fabrics will double between
1994 and 2004, as a result of the elimination of quotas. US imports are expected to treble
over the same period.
According to another prediction, apparel output could more than double (i.e. expand by
241%) between 1995 and 2005, compared to an increase of only 114%, without the
agreement on textiles and clothing.
By increasing market access, the ATC will generate multiplier effects in the Indian economy,
eventually feeding back into the textile industry itself. The rise in demand for exports could
increase output and employment in the textile industry. This in turn will stimulate the
agricultural sector to meet the rising demand for cotton. As profits rise, so will wages, which
will act as further stimulus. The export boom in the textile and clothing industry will also
generate considerable foreign exchange.
Given Indias high quota growth rates during the phase-out period, its competitive product
niches and established links with retailers and importers in developed countries, it should
experience vigorous growth in the future. The World Bank predicts a growth rate of 16% per
annum in the coming decade.
Ultimately, the extent that India will benefit from trade liberalisation depends on its current
cost competitiveness, its ability to increase productivity and upgrade quality.
18 | P a g e
Fabric/Made-ups
+ Garmenting dereserved leading to entry of large textile players ensuring
efficient sourcing and increase in the margins
+ Increase in investment for processing
+ Improvement in SAPTA trade
Garments
+ Garmenting and Knitting de-reserved to allow the units to grow bigger to be
able to service large orders and large clients
+ Labor laws in India become industry friendly
+ Garment parks come up in key regions giving a boost to exports
+ Successful Quota Phase-out without exports getting restricted by QRs
Fig in US $ Mn
1994
1998
2002
2005*
2010*
Yarn
590
1780
2333
2701
3131
Made-ups
851
1498
2620
4527
11266
Fabric
1214
1716
2512
3530
7100
Garments
3713
4829
6510
10794
21711
Total
6368
9823
14035
21552
43208
* Projections
19 | P a g e
Garments
- Social clause impact leading to ban on some categories, etc.
- SSA is a reality impacting exports of garments from India to USA and EU
- FTA becomes a reality
- Other projectionist measures come up
As opposed to the optimistic scenario, the pessimistic scenario shows a shortfall of nearly US
$4000 mn of exports in year 2005 and the exports are not likely to be much higher than the
present figures. It would also lead to development of textile and clothing industry in the other
nations and India would lose out as a significant player in the industry. This would also stifle
the domestic textile industry which would be in a very weak position to compete with
imports. (These are expected to become cheaper with import duty rationalization as per
international treaties and cost competitiveness of overseas players). Some of the subsidies
currently extended by the Indian government to promote exports which are sector specific
(TUF, 80 HHC) or region specific (EPZS, EOUS) may also need to be withdrawn.
20 | P a g e
Fig in US $ Mn
1994
1998
2002
2005*
2010*
Yarn
590
1780
2003
2126
2022
Made-ups
851
1498
2038
2427
3098
Fabric
1214
1716
1931
2050
2154
Garments
3713
4829
5435
5939
6885
Total
6368
9823
11408
12542
14159
* Projections
Conclusions
To effectively tackle the situation India needs to invest in research and development to
develop new products, reduce transaction costs, reduce per unit costs, and finally, improve its
raw material base. India needs to move from the lower-end markets to middle level value-formoney markets and export high value-added products of international standard. Thus the
industry should diversify in design to ensure quality output and technological advancement.
The weakest links in the entire chain are the power looms and the processing houses. The
latter especially are very important because they are responsible for the highest value addition
in the manufacturing line. A power loom co-operative structure could be evolved for pooling
of common services and functions such as quality testing, marketing, short-term financing,
etc. Further, because of the geographical proximity enjoyed, a cluster approach can be
adopted.
The government also needs to make policy changes like dereserving the small-scale sector so
that it can achieve economies of scale and adopt a synergistic approach.
Handlooms by their very nature can adopt a strategy of "niche marketing. In this respect,
export promotion, common credit and marketing facilities and more significantly publicity
are important areas for co-operation. Here too, a co-operative structure would be useful
though government agencies should be involved because of their outreach. Newer and more
21 | P a g e
Effective entrepreneur-friendly
institutional support will need to be extended by the Government, business and umbrella
organisations.
22 | P a g e
Fabrics
Mauritius imports of woven fabrics have declined considerably since 1998 and were worth
almost US$ 70 mn in 2003. India ranked fourth in this market in 2003, with a market share of
6%. While Chinese dominate the Mauritian import market for woven fabrics, South Africa
and Hong Kong are the other major players giving close competition to India in this market.
Indian exporters can focus on improving their competitiveness in exports of dyed fabrics and
knitted fabrics, which are the main items of cotton fabric imports of Mauritius.
Made-ups
Contrary to imports of yarns and fabrics, Mauritius imports of made-ups have risen during
the period 1998-2003. However, made-ups imports are very small in terms of value - worth
US$ 2 mn in 2003. During the period 1998-2003, China emerged as the most dominant
supplier of made-ups to Mauritius. China has been able to displace the erstwhile top suppliers
viz. France and India and accounted for 60% market share in 2003. India ranked fourth in
2003 with a market share of 6%.
If the efforts of the Mauritian Government to revive the domestic textiles industry are
successful, Indian exporters might have an opportunity in this market in the medium term. In
order to increase Indias market share, the following strategy could be adopted:
Improve performance and presence in terms of quality, cost, delivery and after sales
service.
Plan strategic tie-ups with Mauritian RMG companies to supply yarn and fabrics.
23 | P a g e
The volume of retail turnover is estimated at 4 lakh crore rupees a year, constituting
10% of our GDP. After agriculture, the retail sector is estimated to be the largest
single sector, both in terms of turnover as well as employment.
24 | P a g e
The share of organized retailing in India, at around 2%, is abysmally low,( In fact,
only 4% of Indian retail outlets occupy an area of more than 500 sq ft.) compared to
80% in the USA, 40% in Thailand, Brazil or 20% in China, thus leaving the huge
market potential largely untapped.
The recent spurt in the growth of retail sector my be attributed to Mounting earning
levels, education and an international exposure.
Retailing all the way through non-traditional channels such as Fuel Stations, Direct
Selling and Home Shopping Television is on the rise.
Contemporary organized retail is petite and fragmented with cast list not being able to
harvest economies of scale.
FDI in retail trading is not encouraged in any form. However, a few overseas retail
names appearing in the marketplace in the nature of franchisee. In February the
government has announced the entry of FDI in single brand outlets with a cap of 49%
India has a hefty middle class of 350 million and sophisticated personnel to lever
diverse significant functions like merchandising, sales promotion, inventory
management, purchasing and marketing.
India also possesses IT skills in the area of supply chain management, database
management and inventory management
25 | P a g e
In many of these emerging markets, growth is fuelled by an expanding urban class with rising
household incomes. While consumption patterns, income, market size and structure vary
across countries, generally speaking, those with modern and globalized retail sectors are
seeing more competition and concentration across the board. The benefits abound in these
countries, as UNCTAD research shows. Other benefits include substantial productivity
enhancements in retailing, particularly in supply chain management and in-country logistics.
Brazilian producers, for example, are now part of the global supply chains of Carrefour and
Wal-Mart, lower prices for food and clothing have apparently helped curb inflation. In China,
the introduction of global retailers has not only stimulated demand for local goods to stock
hypermarket shelves but has also provided new conduits for exports, by integrating Chinese
producers into multinational supply chains. Wal-Mart alone plans to hire 150,000 employees
in China over the next five years. , China's agriculture exports to the US nearly trebled from
$3.86bn in 1999 to $9.96bn last year. India, on the other hand has made only a marginal
progress, with its farm exports to America rising from $3.19bn in 1999 to just $4.28bn.
In Viet Nam, the market presence of global retailers has helped raise the quality of goods
provided by local suppliers to international standards. In Saudi Arabia and other Gulf
countries, modern retailing has been associated with the building and operation of large
shopping malls, with knock-on benefits for the local construction and security sectors. Pickn
Pay, South Africas largest supermarket chain, reportedly provides training to small retailers
setting up their own Pickn Pay Family Stores. It apparently helps local producers comply
with quality standards and invests 7% of its net profits in corporate social responsibility In
many of the developing nations Labour has been retrenched, but re-tooled and made more
productive. That is what happened with development in Thailand, South Korea and now in
China.
The following table gives a comparative view of the three of the worlds important retail
markets India , China and U.S.
26 | P a g e
27 | P a g e
28 | P a g e
$60 billion of goods each year from China for exports. Contrast this with India where less
than $1 billion of exports are accounted for by global retailers (mostly metro dairy farm).
29 | P a g e
the 1990s
also ushered in a new era for Indias textile industry. It led to the relaxation of many of the
constraints previously imposed on the textile sector. Licensing was removed in the early 90`s
by the Statement of Industrial Policy and the Textile Development and Regulation Order. In
1995, India signed the General Agreement of Tariffs and Trade bringing some of its policies
30 | P a g e
31 | P a g e
workers from sick units are another hurdle in the path of competitiveness. Even with all
these problems, Indian textile exports have grown post the 2005 removal of quotas, but this
growth has been a modest 10-11%. During the same period, textile exports from China have
grown at rates in excess of 20%, and from a larger base at that.
The export markets however, still present a considerable opportunity which the Indian
industry should be able to tap. The Chinese threat, while very real, has been offset to some
extent by recent developments. The extremely high growth of Chinese textile exports to the
U.S has resulted in quotas being reinstated for Chinese goods in certain segments. The
European union too has reached an agreement with china which has seen china agreeing to
curtail exports. A school of thought also exists which maintains that companies in the U.S
would prefer to spread out their suppliers, as placing all their eggs in the Chinese basket may
be somewhat risky. The Indian government has also not been entirely blind, introducing
measures such as the national technology upgradation fund and removing the differential
taxation scheme which discriminated against large units. They have also allowed textile units
to build and operate captive power plants, which should ease the power problem. Some
companies are also making use of the SEZs to get around labour laws. The domestic market
too, is projected to grow in the coming years. On the whole, indications for the textile
industry are largely positive. But as is the case with every industry, only the well run
companies will be able to make use of this scenario to the fullest.
Welspun India is Asia's largest terry towel manufacturer and fourth largest in the
world. It supplies to leading global retailers, meeting 15 per cent of Wal-Mart's terry
towel requirements, 85 per cent of Tom Hilfiger's and 100 per cent of Shopko's. It has
plans to double its terry towelling capacity to 23830 TPA, enhance yarn capacity by
25000 spindles and introduce bed linen with a 35 million metres capacity and has
earmarked a Rs 6 billion budget for its expansion plans. Its sales in the year 2005-06
were in the range of 630 crores, growing by around 35% compared to the last year.
Alok Industries has the largest processing capacity in India and offers fully integrated
facilities for yarn texturising, weaving, knitting, processing, made-ups and garments.
It has initiated plans to expand capacities across all segments by investing Rs 10
billion. It is focusing on home textiles and garments, which will contribute to nearly
50 per cent of its revenues by 2007. It has already got an impressive client list that
includes brandnames such as JC Penney, Tommy Hilfiger, TARGET, Wal-Mart and
32 | P a g e
international buying houses such as Britannica Home Fashions, Elite Home Products,
etc. Their sales were in 05-06 were 1285 crores, up by 15% from last year.
Arvind Mills boasts of a wide product range in value added fabric, from fabric to
garments in denim, shirting and knits. It is a supplier to brands such as GAP, Marks &
Spencer, Levis, Tommy Hilfiger and Nike and is upgrading its garment capacities to
14.3 million pieces per annum. Arvind Mills dominates the Indian denim market with
a 72 per cent share of the estimated 80 million metres denim market. They posted
sales of 1600 crores in 05-06, and while this figure was a decline compared to the
previous year, they have shown an improvement in their operating performance,
leading to a higher PBT.
Other major players like Raymond, Siyaram silk mills, mahavir spinning mills etc. have
also shown strong performance in the past two years.
33 | P a g e
34 | P a g e
Garments were sold at unbelievable prices only because the designers had decided to get
themselves noticed by making showy outfits and getting associated with the right shows,
celebrities and events.
Later, fashion shows shifted to competitive events each attempting to out-do the other in
theme, guest list and media coverage. For any newcomer, the fashion business was the
number one professional art that time.
In the 90's, the last decade of the millennium, a move towards the drastic pairing down
returned with ethnic wears (Today, ethnic wear market in India is accounted to Rs. 9000
crore). This led to the decline and the recession, the push to sell at any cost and keep staying
in the limelight. With heavy cut throat competition and sound awareness of the client, the
inevitable occurred. The price tags, which had once reached at a peak, began their downside
journey.
At those times the downturn was not only being experienced in the price tags of the garments,
but also in the business of fashion shows. More models, choreographers, make-up men,
hairstylists and designers streamed down into their business.
The fun and party time in the Indian fashion scenario had not ended with this, but continued.
It was a point, where it reached at a certain steady level and from there, in the beginning of
the 21st centaury, with new designers and models and some sensible designing; the fashion
hype accelerated its speed.
Indian fashion industry spreads its wings globally
For the global fashion industry, India is a very big exporter of fabrics and accessories. All
over the world, Indian ethnic designs and materials are considered as a significant facet for
the fashion houses and garment manufacturers. In fabrics, while sourcing for fashion wear,
India also plays a vital role as one of the biggest players in the international fashion arena.
India's strengths not only depend on its tradition, but also on its raw materials. World over,
India is the third largest producer of cotton, the second largest producer of silk and the fifth
largest producer of man-made fibres.
In the international market, the Indian garment and fabric industries have many fundamental
aspects that are compliant, in terms of cost effectiveness to produce, raw material, quick
35 | P a g e
adjustment for selling, and a wide ranges of preference in the designs in the garments like
with sequin, beadwork, aari or chikkon embroidery etc, as well as cheaper skilled work force.
India provides these fashion garments to the international fashion houses at competitive
prices with shorter lead time and an effective monopoly in designs which covers elaborated
hand embroidery - accepted world over.
India has always been considered as a default source in the embroidered garment segment,
but the changes of rupee against dollar has further decreased the prices, thereby attracting
buyers. So the international fashion houses walk away with customized stuff, and in the end
crafted works are sold at very cheap rates.
As far as the market of fabrics is concerned, the ranges available in India can attract as well
as confuse the buyer. A basic judgmental expectation in the choosing of fabrics is the present
trend in the international market. Much of the production tasks take place in parts of the small
town of Chapa in the Eastern state of Bihar, a name one would have never even heard of.
Here fabric making is a family industry, the ranges and quality of raw silks churned out here
belie the crude production methods and equipment used- tussars, matka silks, phaswas, you
name it and they can design it. Surat in Gujarat, is the supplier of an amazing set of
jacquards, moss crepes and georgette sheers - all fabrics utilized to make dazzling silhouettes
demanded world over. Another Indian fabric design that has been specially designed for the
fashion history is the "Madras check" originally utilized for the universal "Lungi" a simple
lower body wrap worn in Southern India, this product has now traversed its way on to
bandannas, blouses, home furnishings and almost any thing one can think of.
Recently many designers have started using traditional Indian fabrics, designs and cuts to
enhance their fashion collections. Ethnic Indian designs with batik cravat, tie-and-dye or
vegetable block print is 'in' not just in India but all across the world.
In India, folk embroidery is always associated with women. It is a way of their self
expression, and they make designs that depict their native culture, their religion and their
desires. Women embroider clothes for their personal use, and the people linked with the
pastoral profession prepare embroidered animal decorations, decorative covers for horns and
foreheads and the Rabaris of Kutch in Gujarat do some of the finest embroidery. Embroidered
pieces are made during the festivals and marriages, which are appliqu work called
'Dharaniya'. One of the significant styles of Saurashtra is 'Heer' embroidery, which has bold
36 | P a g e
geometric designs, woven on silks. The Mutwa women of the Banni area of Kutch have a
fascinating embroidery where they make fine embroidery works with designed motifs and
mirrors in the size of pinheads, the Gracia jats use geometric designs on the yoke of long
dresses. Moreover, the finest of quilts with appliqu work are also made in Kutch.
Garments embellishment with bead work is another area where it in demand in the
international market. Beads are used to prepare garlands and other accessory items like belts
and bags and these patterns now available for haute couture evening wear too.
According to a survey, in recent times Indian women have given up their traditional sari for
western wears like t-shirts and shorts, as they feel more comfortable in skirts and trousers
instead of saris and salwar kameez. It's been noted that women spend just $165 million on
trousers and skirts against 1.74 billion dollars spent by men on trousers. With more women
coming out to work, the (combined) branded trouser and skirts market has been increasing at
a whopping 27 per cent in sales terms. Women feel that Western clothing is more suitable,
particularly when working or using public tran ation. Many corporate offices are also in favor
of their employees wearing Western wear.
In India, Western inspiration is increasing due to the influence of TV and films. Besides,
shopping malls selling branded clothes have also mushroomed in India and are fascinating
the youngsters. Recently, designer wear is being promoted through store chains such as
Shopper's Stop, Pantaloons, Westside, etc. Companies such as Raymond and TCNS have also
set
up
their
exclusive
stores
for
designer
wear.
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At present, the largest sales turnover within the designer wear segment is about Rs25 crore,
with other well-known names having less turnovers of Rs10-15 crore. In view of the
prospects of the Indian fashion industry for growth, the figures are not very hopeful.
The figure of fashion industry
Designer wear calculates to less than 1 per cent of the apparel market
The global market for designer wear is 5 per cent of total apparel market
The global market for designer wear industry is largely dependent on the small-scale
sector
More than 81 per cent of the population below 45 years of the age is fashion
conscious.
Many fashion designers and management experts foresee an average growth of about 10-12
per cent for the Indian fashion industry in the coming years. Though, the growth rate could be
more than 15 per cent, if infrastructural and other logistical bottlenecks and drawbacks are
over come.
India needs more effort to overcome
However, despite the benefits available in India there are also some disadvantages. India is
not a remarkable player in the global market with reference to brands because of its inability
to add value to products. This is observed by the fact that nearly 50 per cent of its exports are
apparel and made-ups where value addition is essential. Likewise, 75 per cent of domestic
apparel market is commoditized and unbranded and very few Indian brands do survive in the
foreign markets. Evidently, the Indian market has not made a strong stand and hence it is
difficult to make Indian brands that can compete with global brands in India.
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Products
KOUTONS MENSWEAR
KOUTO
NS
professionals.
The collection includes the shirts, T-shirts, pull overs, sweat shirts ,denim and non-denim
trousers, cargo and shorts for men in trendy yet formal shades the collection also offers a
variety of fabrics to choose from. The basic formal shirts are available in linen and cotton
fabrics. The range is also available in blended fabrics. The special product range wrinkle
resistant flaunts ten to twelve colors to choose from. Using wrinkle-resistant technology the
company has sought to introduce a new breed of weaved hundred percent cotton fabric and
blended cotton.
The latest collection of Koutons menswear is a range created for today's generation of men
who wear what they like and firmly believe in themselves. The collection is for those who
like to blend comfort with style.
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good
equity
in
the
TGs
mind.
In 2002 the brand made a slight makeover. The positioning changed to Honestly
Impressive. The aim is to make the brand more than just value for money proposition but
also as a lifestyle brand. It has maintained its value proposition unchanged.
Peter England is a brand that clearly shows a marketer that it is possible to sell... Honestly.
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Cotton County
History of the Company
The parent company Cotton County Retail Ltd. is a wholly owned subsidiary of Nahar
Industrial Enterprises which was set up in 1949.
The promoters' belief of "Where commitment leads, achievement follows" has led to
tremendous growth with the company involved in spinning weaving, processing and
garmenting and supplies to some of the biggest brands in the world like Marks and Spencer,
GAP, Tommy Hilfiger and Armani. Nahar Industrial Enterprises Limited is an "Integrated
Textiles Player". The company is engaged in manufacturing right from yarn, griege (?) fabric
to processed fabric to readymade garments in the domestic market. Processed fabric is sold to
companies/brands like Madura garments, Raymond's Color Plus, Allen Solly, Louis Philippe,
Provogue, Pantaloon. In the export market, NIEL's clientele includes names like GAP,
Oshkosh, Ann Taylor, M&S, Liz Claiborne, Timberland, Algle (?), Tommy Hilfiger etc.
In NIEL.., a wholly owned subsidiary Cotton County Retail Ltd. was set up for its foray into
retailing. The Brands Cotton County, Femme, Tazo etc. are retailed through Executive Brand
Outlets under the name and style of Cotton County and as on... there were.600.. outlets,
located across India in.425..cities and 21.states & 1 Union Territory. The retail network is
largely operated through Franchisees.
Company Profile
Nahar Industrial Enterprises Limited is an Integrated Textile Player. The company is
engaged in manufacturing right from yarn to griege fabric to processed fabric to readymade
garments in the domestic market. Processed fabric is sold to companies/brands like Madura
Garments, Raymonds Color Plus, Allen Solly, Louis Philippe, Provogue, Pantaloon. In the
export market, NIELs clientele includes names like GAP, Oshkosh, Ann Taylor, M&S, Liz
Claiborne, Timberland, Algle, Tommy Hilfiger etc.
Nahar Industrial Enterprises has floated a wholly owned subsidiary Cotton County Retail
Ltd. for its foray into retailing.
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The parent company is already involved in spinning, weaving, processing and garmenting
and supplies to some of the biggest brands in the world like Marks and Spencer, GAP,
Tommy Hilfiger and Armani.
Quality
Unlike many other enterprises and business organizations, Quality is not just an ordinary
word with very little or no meaning. For Cotton County, Quality has a significant importance
of its own which can describe the potential of the company in no time. We believe If the
quality is good, there is room for Cotton County to survive in this corporate world. However,
if little attention is paid on Quality, then survival for Cotton County in this competitive era
will be a lot difficult.
Hence, without giving any second thoughts, we have given Quality, our top priority. Today
Quality is something that is evident in all the spheres of the Company even the products it
sells, the work culture, and the various departments of the Company. Our Parent Company,
Nahar Industrial Enterprises Limited has been awarded ISO 9002/IS 14002 Certification and
Okotex Certification.
For us, Quality is the ability of our products to be able to satisfy our users. And to ensure this,
the garment goes through various Quality checks in order to ensure utmost customer
satisfaction
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2. Performance Driven
We
confirm
that
all
our
garments
meet
the
agreed
requirements.
We constantly monitor and improve our businesss garments, services, organization and
employee performance.
We
make
sure
that
we
achieve
the
goals
set
by
us
for
the
future.
Mission/Vision
Mision
We aim to meet the aspirations of our customers through our offerings of contemporary
fashion and international quality at affordable prices. We look at every Indian as our customer
and will operate on a Pan-India basis in Metro, Tier I, Tier II and Tier III cities and towns. We
will create a leadership position in this field by growing faster than competition. We will
achieve our goals of customer satisfaction through product excellence and our growth
objective through employee motivation and prudent financial policies for investor
satisfaction.
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Vision
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moved
on
to
casuals
and
clubwear
with
stylized
slim
fits.
The Key Factor is that the dous at Charly outlaw are constantly re-inventing and developing
new styles in a way of patters and fits. The fabrics and accessories are usually sourced from
different parts across the country and are exclusively programmed for charly outlaw. The
brand has a complete over block printing, screen printing and embroidery. It gives every style
exclusivity.
The Aim of Charly outlaw has always been to design leading edge clothing and to be able to
manage their stores at a reasonable price.
The Price factor is very competitive in their stores.
The Brand currently has its presence in market with almost 50 stores it aims to reach out to
more consumers through all stores across the major metros in maharashtra, delhi,
haryana, punjab, west bengal, bihar etc.
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fashion
and
quality.
moved
on
to
casuals
and
clubwear
with
stylized
slim
fits.
The Key Factor is that the dous at Allen Cooper are constantly re-inventing and developing
new styles in a way of patters and fits. The fabrics and accessories are usually sourced from
different parts across the country and are exclusively programmed for allen cooper. The brand
has a complete over block printing, screen printing and embroidery. It gives every style
exclusivity.
The Aim of Allen Cooper has always been to design leading edge clothing and to be able to
manage their stores at a reasonable price.
The Price factor is very competitive in their stores.
The Brand currently has its presence in market with almost 50 stores it aims to reach out to
more consumers through all stores across the major metros in maharashtra, delhi, haryana,
punjab, west bengal, bihar etc.
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Priknit is one of the leading mens wear integrated apparel manufacturing and retail
companies of India. Priknit has established itself in the business of designing, manufacturing
and retail of apparels under the Priknit brands through a network of 152 plus exclusive brand
outlets across 141 cities in India. The Company clocked a turnover of 290 crores in financial
year 2008-2009 which is a growth of over 70 % over last year sale. Priknit Retail Limited, led
by its founder and Managing Director, Sh. Vijay Kumar Ghai is one of Norths leading
business houses with multiple businesses spanning across the consumption space. While
retail forms the core business activity of Priknit retail, company is also present in,
manufacturing & trading of knitted cloths, woolen garments etc. Started in 1983 when
founder Sh. Vijay Kumar Ghai set up a small hosiery unit .From the inception in 1983 Priknit
was eying big and now in year 2009 it has established a manufacturing unit (having a
capacity to manufacture approximately 2.5 million pieces of apparel per annum). Since then
our manufacturing and finishing capacity has increased significantly. Currently the Company
has in-house manufacturing/finishing units and warehouses which are spread across various
locations in and around Ludhiana.
Company has also entered into fabricating agreements with various manufacturing units to
which we outsource stitching of certain apparels. Our manufacturing and finishing facilities
are backed by adequate facilities for product testing, apparel development, design studio and
sampling infrastructure to ensure high quality apparels for our customers. Brand Priknit have
grown significantly in the recent past & has become a house hold name in the northern &
eastern markets... The strength of brand Priknit has significantly contributed to the success of
its business. Priknit brand is positioned as a brand in the middle to high fashion segment,
offering a complete range of a mans wardrobe (in the age group of 18 to 45 years) ranging
from semi formal to casual and party wear. Priknit is also present in women segment as a
casual brand targeted at fashion conscious young women in the age group of 18 to 35 years
and is positioned as a fashionable and contemporary, value for money brand. Priknit as of
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MONTE CARLO
A never-seen-before range of half, rollup sleeve shirts is
highlight of the Monte Carlos latest collection Spring summer 2010 that was unveiled
recently. Promising a soothing sense of style and fashion, the new range comprises elegantly
designed trousers, the vibrant T shirts, the striking sandos and a wide variety of tracksuits and
Bermudas.
For the fashion enthusiast men, the Monte Carlos S/ S 10 range is there to add both ethnicity
and authenticity to men wardrobe. The range not only contains a romantic, spiritual and
poetic appeal to the silhouettes but virtually offers a style therapy for the season.
Spokesperson of the company says the new range has a fresh taste for fashion and is bound
to cater to every need of fashion enthusiasts. While drawing this summer collection we
concentrated
mainly
on
presenting
never-seen
-before
collection.
In T-Shirts category the latest collection comprises variety of colour, style detailing and
graphics and is further subdivided into sinker and pique T -shirts, all available in solid
colours, bright auto stripes. To capture the interest of both modern and classic fashion
enthusiasts while slim fit crew neck range has a shade card ranging from off whites and light
beiges to bright raspberry and tomato reds , the subtle duo tone stripe T-shirts with patch
work are there for those wanting classic trends . The range is further supplemented by bold
coloured auto stripes having woven details as well as graphic chest prints. We hope it would
in any case capture everyone's style and imagination, said the spokesperson.
Yet another category of collar T shirts and Polo T shirts offers a range that has been drawn
after a variety of experimentation with colours. Horizontal stripes make it for the most sought
after Indigo collection, the leisure or casual, moods are flows vividly in combo of Off
White and Pale Plum, Raspberry and Black. Also available in latest collection are full and
half placketed, round neck, V neck, contrast collared with hoods all set to take style and
fashion
to
next
level.
The spokesperson said the company has sought to introduce a new article in never out of
stock range available in trousers section. The men could choose from among the wrinkle
free cotton linen trouser as well as denims. With our formal trouser range we aimed at young
50 | P a g e
achievers and upscale urbanites. In addition sports lower can match their sporty mood with
denim cargo shorts made up from stylish quality fabrics, she / he added.
Another highlight of the summer range is tracksuits and Bermuda sets. Be it placketed, full
zipped, half zipped, round neck, collared or raglan sleeve with chest prints , all is there in
new range . In other words you name it and there you find it in collection. Furthermore, the
collection of sandos stands out as it offers fashion icons a perfect balance of style, fashion
and sensibility. For the fashion enthusiast men, the Monte Carlos S/ S 10 range is there to
add both ethnicity and authenticity to men wardrobe. The range not only contains a
romantic , spiritual and poetic appeal to the silhouettes but virtually offers a style therapy for
the
season.
Latest among all the new range has sought to redefine slim denims with a new addition of
purple, grey, deep red, pinks to the classics in the leg wear segment. Sequins and
embellishments have been given exclusivity, prints highlighted with little touchups and satins
and georgettes have been added to impart all new look to the pleated, ruffled, tuck detailed
tops. This year designers have laid special emphasis on reaching perfection in detailing,
finishings there by leaving no room for vagueness, said company spokesperson.
Adding variety to the Alpha Collection S/S 10 Wardrobe, Indian Kurtis in block printed
details enriched with brocade and laces are there to cater to men having keenness for
Indianinised wardrobe designed in a variety of colours including Green, mauves, blues, deep
red , refined shades of wine and pink , and all time essentials the Black and white.
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Chapter - 02
Conceptual Frame Work
ALL ABOUT BRANDING
The term brand means different things to the different roles of buyer and seller, with buyers
generally associating brand with a product or service, and merchants associating brand with
identity. Brand can also identify the company behind the specific product -- that's not just a
biscuit, that's Britannia biscuit. This use of brand puts a "face" behind the name, so to speak,
even if the "face" is the result of advertising copy and television commercials. This use of
brand also says nothing of quality, just the buyer's exposure to the brand's PR and media
hype. For the typical merchant, branding is a way of taking everything that is good about the
company -- positive shopping experience, professionalism, superior service, product
knowledge, whatever the company decides is important for a customer to believe about the
company -- and wrapping these characteristics into a package that can be evoked by the brand
as signifier.
I n t rod u c t i o n t o B r a n d i n g
The American Marketing Association defines a brand as A name, term, sign, symbol or
design or a combination of them, intended to identify the goods and services of one seller or
group and to differentiate them to those for competitors. A brand is thus a product or service
thats adds a Dimension that differentiates it in some way from other products or services
designed to satisfy the same need. These differences may be functional, rational, or tangiblerelate to product performance of the brand.
Branding has been around for centuries as a means to distinguish the goods of one producer
to those of another. The earliest signs of branding can be traced to Europe where the medieval
guilds required that craftsmen put trademarks on their product to protect themselves and
producer against inferior quality substitutes. Also in fine arts branding began with artists
signing their works. Brands today play a number of important roles that improve the
consumers lives and enhance the financial value of firms.
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Brands identify the source or maker of the product and allow consumers-either individual or
organizations- to assign responsibility to a particular manufacturer or distributor. Consumers
may evaluate the identical product differently depending how it is branded. Consumers lean
about the brand with its past experience and the marketing program. As consumers lives
becomes more complicated, time starved the ability of brand to simplify decision making is
invaluable. Brands also perform valuable functions for the firm. First they simplify the
product handling and tracing. Brands help to organize inventory and accounting records. The
brand name can be protected registered trademarks. The intellectual property rights ensure
that the firm can safely invest in the brand and can reap the benefits over a long period of
time.
Brands can signal a certain level of quality so that satisfied buyers can easily choose the
product again. Brand loyalty provides predictability and security of demand for the firm and
creates barriers to entry that makes it difficult for other firms to enter the market. This brand
loyalty can translate into willingness to pay higher price. In this sense branding can be seen
as powerful means to secure a competitive advantage. Brands represent enormously valuable
pieces of legal property that can influence consumers behavior. Strong brand results in better
earnings and profit performance for firms, which in turn, creates greater value for
shareholders.
How do you BRAND a product? Although firms provide the impetus to brand creation
through marketing programs and other activities, ultimately a brand is something that resides
in the mind of the consumers. A brand is a perpetual identity that is rooted in reality but
reflects the perceptions and perhaps even the ultimate choice of the consumers. Branding is
endowing products and services with the power of brands. To brand a product, it is necessary
to teach the consumers who the product-by giving a name. Branding involves creating
mental structures and helping consumers organize their knowledge about products and
services in a way that clarifies their decision making and in process provides value to the
firm.
Branding can be applied virtually anywhere a consumer has a choice. It is possible to brand:
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Brand is the proprietary visual, emotional, rational, and cultural image that you associate with
the company or a product. When you think of Volvo, you think of safety. When you think of
Nike, you think of Michael Jordon or Just Do It. When you think of IBM, you think of Big
Blue. The fact that you remember the brand name and have positive associations with that
brand makes your product selection easier and enhances the value and satisfaction you get
from product.
While Brand X cola or even Pepsi-Cola may win blind taste tests over Coca-Cola, the fact is
that more people buy Coke than any other Cola. The fond memories of childhood and
refreshment that people have when they drink Coke is often more important than a little bit
better cola taste. It I this emotional relationship with brands that make them so powerful.
Purpose of Branding
The purpose of branding is to create a powerful and lasting emotional connection with
customers and other audiences. A brand is a set of elements or brand assets that in
combination create a unique, memorable, unmistakable, and valuable relationship between an
organization and its customers. The brand is carried by a set of compelling visual, written and
vocal tools to represent the business plan and intentions of an organization.
Branding is the voice and image that represents your business plan to the outside world. What
your company, products and services stand for should all be captured in your branding
strategy, and represented consistently throughout all your brand assets and in your daily
marketing activities
The brand image that carries this emotional connection consists of the many manageable
elements of branding system, including both visual image assets and language assets. The
process of managing the brand to the business plan is important not only in big change
situation where the brand redefinition is required, but also in the management of routine
marketing variables and tactics. This does not have to be a ground-up situation where there
are wholesale changes to the business. Rather it is more common that specific changes to the
changes to the business plan are incremental and the work of the brand strategist and designer
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is to interpret these changes and revise the branding strategy and resulting brand assets and
define their use in the full range of marketing variables.
Brand Identity
Brand Identity includes brand names, logos, positioning, brand associations, and brand
personality, brand toons etc. A good brand name gives a good first impression and evokes
positive associations with the brand. A positioning statement tells what business the company
is in, what benefits it provides and why it is better than the completion? Brand personality
adds emotion, culture and myth to brand identity by the use of a famous spokesperson (Bill
Cosby-Jello), a character (Pink Panther), an animal (the Merrill lynch bull) etc.
Brand associations are the attributes that costumer thinks of when they hear or see the brand
name. McDonalds television are a series of one brand association after another, starting in
yellow arches in the low right corner of the screen and following with associations of Big
Mac, Ronald MacDonald, kids, happy meal, food quality etc. The first step in creating a
brand for your company is branding workshop.
Owned Word
A strong brand name should trigger another word, a favorable one. Here is the list of brands
that own a word:
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Slogan
Many companies successfully added a slogan or tagline to their brand name which is repeated
in every ad they use. Here are some well-known brands slogans, which people on the street
may easily recall or recognize:
COMPANY
SLOGAN
British Airways
Ford
LIC
Colors
It helps for a company or a brand to use a consistent set of color to and in the brand
recognition. Caterpillar paints all its construction equipments yellow. Yellow is the color of
Kodak film. IBM uses blue in its publications, and IBM is called Big Blues.
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Cartoon or Animation
ICICI Prudential
Chintamani
Amul Butter
McDonalds
Ronald
Louis
Pillsbury
Doughboy
7 Up
Fido Dido
Objects
Still another approach is to choose an object to represent a company or brand. The travelers
insurance company uses an umbrella, suggesting that buying insurance is equivalent to
having an umbrella available when it rains. The prudential insurance company features the
rock of Gibraltar, suggesting that buying an insurance is equivalent to owing a peace of rock
which is of course, solid ad dependable. Companies have developed many logos or
abstracts, which are easily remembered by people. Even the way the brand name is written
makes a brand recognizable and memorable.
Brand Effectiveness
With an increase in global competition, branding has become a source of competitive
advantage. In rapidly evolving market for consumer, and industrial products and services, the
source of next generation competency will be branding. In this briefing we demonstrate how
to calculate the brand strength, the price premium associated with the products categories,
and type of customers attracted to the Premium Products. Marketers who match their brand
with customers needs will have a sustainable competitive advantage.
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Differentiation: the brand strategy and brand assets must set youre offering apart
and clearly articulate the specific positioning intent of your offering.
Defendable: you will be investing in creating your brand assets and in all cases your
brand must have proprietary strength to keep others from using close approximations.
This applies to your trade names and other proprietary words as well as to your logos,
symbols and other visual assets.
Much of the brand managers work is to build a brand image. But its job doesnt stop there.
The rand manager needs to make sure that brand experience matches the brand image. Much
can go wrong. A fine brand of canned soup described in a full page color ad may be found in
dented and dusty condition in the bottom shelf of a supermarket. The ad describing a gracious
hotel chain is belied by the behavior of a surly concierge.
Building brand therefore calls for more than brand image building. It calls for managing
every brand contact that customer might have with brand. Since all the employees,
distributors and dealers can affect brand experience.
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The Brand
To any individual a brand (in his mind) is a complex combination of experiences, beliefs,
perceptions and associations that have grown up over time. For example Coca-Cola is a
company brand, a product brand, a service brand and a brand with a long history. It is a brand
which may represent (to any one individual) diversity, internationality, technical excellence,
financial strength etc. etc. It may also mean insensitivity, environmental pollution, abuse of
power and other negative perceptions.
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all (in most cases). These stories will come from a variety of primary and
secondary sources: Press releases
Press conferences
Reporting of "events"
Investigative journalism
Stories passed to the media by third parties (Non governmental organizations
etc.)
Professional/business
interest:
For
some
individuals
to
interface
62 | P a g e
Kids
Fun
Happy Meal
Quality
Toys
In trying to build a rich set of positive associations for a brand, the brand builder should
consider five dimensions that can communicate meaning:
Attributes: A strong brand should trigger in buyers mind certain attributes. Thus a
Mercedes automobile attributes a picture of well-engineered car that is durable,
rugged and expensive. If a car brand does not trigger any attribute, then it would be a
weak brand.
Benefits: A strong brand should suggest benefits, not just features. Thus Mercedes
triggers the idea of well performing car that is enjoyable to drive and prestigious to
own.
Company Values: A strong brand should connote values that the company holds.
Thus Mercedes is proud of its engineers and engineering innovations and is very
organized and efficient in its operations. The fact that it is a German company adds
more pictures in the mind of the buyers about the character and the culture of the
brand.
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Personality: A strong brand should exhibit some personality traits. Thus if Mercedes
were a person we would think of someone who is middle age, serious, well-organized
and somewhat authoritarian. If Mercedes were an animal we might think of lion or its
implied personality.
Users: A strong brand should suggest the type of people who buy the brand. Thus we
would expect Mercedes to draw buyers who are older, affluent and professional.
In summary, brands when their very name connotes positive attributes, benefits, company
values, personality and users in the buyers mind. The brand builders job is to create a brand
identity that builds on those dimensions.
Memorable: How easily is the brand element recalled? How easily recognized? Is
this true at both purchase and consumption? Short brand name like tide, Nike can
help.
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Likeability: How aesthetically appealing does consumers find the brand element? Is
it inherently likeable visually, verbally, and in other ways? Concrete brand names
such as Wheel, Sunsilk etc evoke much imagery.
Transferable: Can a brand element be used to introduce new products in the same or
different categories? To what extent does the brand element add to brand equity across
geographic boundaries and market segments?
Adaptable: How adaptable and updatable is the brand element? Betty corker received
8 makeovers through the years-although she is 75 yrs old, she doesnt look a day over
35.
Brand elements can play a number of roles. If consumers do not examine much information
in making their product decisions, brand elements should be easily recognized and recalled
and inherently descriptive and persuasive. Memorable or meaningful brand elements can
reduce the burden on marketing communications to build awareness and link brand
associations. The different associations that arise from likeability and appeal of the brand
elements may also play a critical role in the equity of brand.
Lance Leuthesser, et al (1995) writes that " brand equity represents the value (to a
consumer) of a product, above that which would result for an otherwise identical
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product without the brand's name. In other words, brand equity represents the degree
to which a brand's name alone contributes value to the offering (again, from the
perspective of the consumer)."
The Marketing Science Institute (1988) defines brand equity as, "The set of
associations and behaviors on the part of the brand's customers, channel members,
and parent corporations that permit the brand to earn greater volume or greater
margins than it could without the brand name and that gives the brand a strong,
sustainable, and differentiated advantage over competitors."
A description of the associations and beliefs the consumer has about the brand.
Of those three concepts, the first can be classified as "brand valuation," the second "brand
loyalty," and the third "brand description." Brand loyalty will be a factor that affects the
overall brand value, and brand description will usually affect or explain some of the brand
loyalty. Because of the importance of each of these elements of brand equity, they will each
be briefly explained.
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What this means is that there is no such thing as an absolute value for a brand, and brand
value needs to be considered as only one component of the overall equity of a brand.
Brand Loyalty and Equity refer to the notion that some brands are "stronger" or better
than others.
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of money on advertising, see no immediate effects, but you could save your job by saying
that you had "built the brand". At least one advertising agency offers to partner companies in
this sort of activity.
So marketing strategies could be putting money into (or out of) the brand equity bank
account. But the question is as always how do we know? That is are we actually building the
brand with all our advertising (or other brand building 4 ps decisions e.g., limited / premium
distribution rights, high price, fancy packing, after sales service, extended warranties).So,
hopefully you have got the idea - theories about brand loyalty and equity are used to represent
aspects of brand strength.
This "strength" can take a number of forms, e.g., consumers predominantly buying your
brand, which might be represented by a high share of category requirements, or high
proportion of sole-buyers.
Consumers saying good things about your brand, e.g., having a positive brand Attitude, it
might be the ability to charge a price premium. It might be the ability to not be substituted
when out of stock. Future strength might be in terms of some sort of long-term competitive
advantage or the ability to sustain brand extensions.
One of the things is that as with many concepts in marketing, is that there are many different
definitions and viewpoints on what exactly brand equity is and how to measure it. So that is a
problem. We need to be clear just what people mean when they talk about brand equity or
brand loyalty, or building brands.
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Loyalty
Price Premium: A basic indicator of loyalty is the amount a customer will pay for a
product in comparison to other comparable products. A price premium can be
determined by simply asking consumers how much more they would be willing to pay
for the brand.
Customer Satisfaction: A direct measure of customer satisfaction can be applied to
existing customers. The focus can be the last use experience or simply the use
experience from the customer's view.
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Awareness Measures
Brand awareness reflects the salience of the product in the consumer's mind and
involves various levels including recognition, recall, brand dominance, and brand
knowledge and brand opinion.
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changed a product or brand too much or too quickly. On these occasions, consumers met
changes with adverse reactions. The most famous example is Coca-Cola. They changed the
formula of their flagship product Coke, and consumers reacted so poorly to the new product
that the old formula was reintroduced and the new formula eventually was discontinued. The
consumer through the product experiences brand equity. The product has certain attributes or
characteristics that deliver the equity to the consumer. If any of these attributes are changed
or eliminated, the equity delivered to the consumer is also changed.
Managing brand equity is a continual process with long-term implications. Unfortunately,
many brand managers are forced to focus on short-term goals such as market share and
profits. Many programs that are implemented to boost short-term sales or market share may
be detrimental to the long-term viability of the brand. For example, Proctor & Gamble has
started to test market a program to move away from using coupons to a system of every day
low prices. This is, in part, because consumers may become loyal to the coupon or promotion
and not to the product itself. Constant promotional programs erode margins and eventually
brand loyalty. Ultimately, brand equity is damaged.
In 1988, Graham Phillips, Chairman of Ogilvy and Mather Worldwide, said, "I doubt that
many would welcome a commodity marketplace in which one competed solely on price,
promotion and trade deals, all of which can be easily duplicated by competition. This would
lead to ever decreasing profits, decay, and eventual bankruptcy. About the only aspect of the
marketing mix that cannot be duplicated is a strong brand image." This quote clearly
demonstrates the importance of managing brand equity. In many categories, brand equity is
the only point of differentiation between products.
Many people may think that building and maintaining brand equity is solely the responsibility
of brand managers, but it is actually a cross-functional team effort. Financial managers are
important because they can fully analyze the costs of maintaining and building brand equity.
For example, launching a new brand is extremely consuming in terms of money and time. It
may be more cost effective to extend a current brand than introduce a new brand. Marketing
research is critical for many obvious reasons. It develops most, if not all, of the research and
data that companies will use for deciding strategic issues. Marketing research can also help
determine how brand equity is actually measured. Once a definition of brand equity is
established, the responsibility of tracking.
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The brand makes use of and co-ordinates a full repertoire of marketing activities to
build equity.
Identify marketer
Buyer may derive a psychological reward from owning the brand, i.e., Rolex or
Mercedes.
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To Seller:
Brand identifies the companies products making repeat purchases easier for
customers.
Brand helps firm introduce a new product that carries the name of one or more of its
existing products...half as much as using a new brand, lower co. designs, advertising
and promotional costs. Example, BPL telephones.
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Consumer is a broad label that refers to any individuals or households that use
goods and services generated within the economy
What is Consumer Buying Behavior?
Introduction to Consumer Behaviors
The study of Consumer Behaviors is quite complex, because of many variables involved and
their tendency to interact with & influence each other. These variables are divided into
three major sections that have been identified as the most important general influences
on Consumer Behaviors. Imagine three concentric circles, one at the outer most, one in
the middle & one at the inner most, and they represent the following:
External Environmental Variables Influencing Behaviour : These are the factors
controlled by external environments like the following form the basis of external
influences over the mind of a customer (outer circle) :
1.
2.
3.
4.
Other Influences (which are not categorized by any of the above six, like geographical,
political, economical, religious environment, etc.).
Individual Determinants of Behavior: Major individual determinants of Consumer
Behavior are portrayed in the middle ring. These are the human mind and its
attributes. These variables are personal in nature and they are influenced by the above
set of external factors and in turn influence the way consumers proceed thro a
decision making process regarding products & services. They are:
1.
2.
3.
4.
5.
Attitudes.
The Consumer Decision Making Process: The buying decision comes as a product of
the complex interaction of the external factors and the personal attributes. The inner
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most circle denotes the consumer decision making process regarding products &
services, whose major steps are :
1.
Problem Recognition,
2.
Information Search,
3.
Evaluation of Application,
4.
Purchase Decision,
5.
Post-Purchase Behavior.
Marketers are frequently uncertain about the variables that are at play influencing &
affecting consumers. Sometimes this occurs because they dont clearly understand the
extent of variables that might be having an influence. The details of all external,
internal, environmental, economical etc. are discussed above. Sometimes some
variables are not directly observable. Other times variables are known to the
marketers but their exact nature & relative strength of influence is not apparent. In
these circumstances, it is useful to understand the above mentioned concepts and how
the consumers behave, so that their decision making process can be predicted to a
reasonable extent. The human mind being as complex as it is, the understanding of the
buying behavior of the consumers becomes a continuous activity of application of
various theories & concepts by the marketers.
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The theory is simple. If not, it can be so complex that we cant understand well
enough to apply it to our practical problems.
It is testable so that we can verify whether the theory is valid and therefore
dependable.
Implied in the previous characteristic, it is supported by the facts. This means, to lay
the theory up against data describing how consumers buy in the market and thereby
determine if the facts confirm the theory. If they dont, then either the theory should
be modified till the facts do verify it or abandon the theory.
The theory is general, which means that it can be applied to a wide range of products
& services. If it is not, then it wont be very useful.
It has heuristic value, meaning that it poses new questions for us that had not been
previously asked. While trying to answer these questions, new knowledge is created
and that becomes the part of the theory.
It is internally consistent. This means that the theory is internally free from logical in
congruencies or else the prediction will be doubtful & flawed. Lack of this quality
will make the theory a dangerous tool.
It is original. If not, it adds little to the existing knowledge.
It is plausible. If not, it cant be seen by others as making any sense, and hence, they
will not likely to accept the theory and so it wont be useful.
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Definitions:
Consumer Behavior (or Buyer Behavior) is broadly defined by various scholars & researchers
as:
Its the behavior displayed by the consumers during the acquisition, consumption and
disposition of products, services, time and ideas by decision making units.
It is the body of knowledge which studies various aspects of purchase and
consumption of products and services by individuals with various social and
psychological variables at play.
The behavior that the consumers display in searching for, purchasing, using,
evaluating and disposing of products and services that they expect will satisfy their
needs.
The process and activities people engage in when searching for, selecting, purchasing,
using, evaluating, and disposing of products and services so as to satisfy their needs
and desires.
The activities directly involved in obtaining, consuming, and disposing of products
and services, including the decision processes that precede and follow these actions.
The American Marketing Association (AMA) defines consumer behavior as The
dynamic interaction of cognition, behavior & environmental events by which human
beings conduct the exchange aspect of their lives.
The study of consumer behavior involves search, evaluation, purchase, consumption and post
purchase behavior of the consumers and includes the disposal of purchased products
keeping environment and personal characteristics in mind.
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Consumer Buying Behavior refers to the buying behavior of the ultimate consumer. A firm
needs to analyze buying behavior for:
Buyers reactions to a firms marketing strategy has a great impact on the firms
success.
The marketing concept stresses that a firm should create a Marketing Mix (MM) that
satisfies (gives utility to) customers, therefore need to analyze the what, where, when
and how consumers buy.
Marketers can better predict how consumers will respond to marketing strategies.
Cultural factor divided into three sub factors (i) Culture (ii) Sub Culture (iii) Social Class
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Culture:
The set of basic values perceptions, wants, and behaviors learned by a member of
society from family and other important institutions. Culture is the most basic
cause of a persons wants and behavior. Every group or society has a culture, and
cultural influences on buying behavior may vary greatly from country to country.
Sub Culture :
A group of people with shared value systems based on common life experiences
and situations.
Each culture contains smaller sub cultures a group of people with shared value
system based on common life experiences and situations. Sub culture includes
nationalities, religions, racial group and geographic regions. Many sub culture
make up important market segments and marketers often design products.
Social Class:- A
Almost every society has some form of social structure; social classes are
societys relatively permanent and ordered divisions whose members share
similar values, interests and behavior.
Social Factors:
Groups : Two or more people who interact to accomplish individual or mutual goals.
A persons behaviors are influenced by many small groups. Groups that have a direct
influence and to which a person belongs are called membership groups.
Some are primary groups includes family, friends, neighbors and coworkers. Some are
secondary groups, which are more formal and have less regular interaction. These
include organizations like religious groups, professional association and trade unions.
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Family:- Family members can strongly influence buyer behavior. The family
is the most important consumer buying organization society and it has been
researched extensively. Marketers are interested in the roles, and influence of
the husband, wife and children on the purchase of different products and
services.
Roles and Status : A person belongs to many groups, family, clubs, and organizations.
The persons position in each group can be defined in terms of both role and status.
o For example. M & X plays the role of father, in his family he plays the role
of husband, in his company, he plays the role of manager, etc. A Role consists
of the activities people are expected to perform according to the persons
around them.
Personal Factors: It includes
i)
ii)
Occupation
iii)
Economic situation
iv)
Life Style
v)
Psychological Factors:
i)
Motivation
ii)
Perception
iii)
Learning
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Chapter - 03
Review of Literature
Brand Preference
Customers buying products are buying utility, function, and performance as much as
image and status (Terpstra and Sarathy, 1997, p. 375). Actually, Customer merchandise has
implications more than their utilitarian, functional, and commercial significance
(Czikszentmihalyi and Rochberg-Halton, 1981; Ericksen, 1996; Leigh and Gabel, 1992;
Levy, 1959; Mick, 1986). Consumers do not consume products for their material utilities but
consume the symbolic meaning of those products as portrayed in their images (Elliot, 1997,
p. 286). Therefore, the acquired goods are not only bundles of attributes that yield particular
benefits (Holt, 1995, p. 1) but also indications of symbolic meanings to the public.
Consumers are more likely to use brands to express how they are either similar to or different
from people of their in-group (Markus and Kitayama, 1991).
Bhat and Reddy (1998) also reported that brands have practical and emblematic
importance for consumers. The emblematic importance, which is attached to brands, is often
broadcasted via the use and consumption of brands (Gottdeiner, 1985; McCracken, 1986).
Consequently, there seems to be a noteworthy relationship between brand images, consistent
with the emblematic importance of brands, and consumers self images (Zinkham and Hong,
1991). Individuals are more likely to buy brands whose personalities intimately match their
own self images (Schiffman and Kanuk, 2000). Similarly, consumers express themselves by
selecting brands whose personalities are recognized to be consistent with their own
personalities (Aaker, 1999; Kassarjian, 1971; Sirgy, 1982).
In many circumstances, consumers self image influences his/her purchase decisions
(Zinkham and Hong, 1991) In other words, consumers use products to illustrate, maintain,
and reinforce their self concepts to themselves (Sirgy, 1982; Wallendorf and Arnould, 1988;
Zinkham and Hong, 1991). Therefore, purchase and consumption are good vehicles for selfexpression (Jamal and Goode, 2001, p. 483).
Previous research indicated that self image/self expression affect consumers product
preferences and their purchase intentions (Ericksen, 1996; Mehta, 1999). For example,
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Ericksen (1996) found a significant relationship between self image and intention to buy an
American automobile (Ford Escort). Based on this finding, it might be inferred that
individuals prefer brands that have images compatible with their perceptions of self (Jamal
and Goode, 2001, p. 483; Belk, et. al., 1982; Ericksen, 1996; Solomon, 1983; Zinkham and
Hong, 1991). Moreover, this self image consistency strengthen positive attitude toward
products and brands (Ericksen, 1996; Sirgy, 1982, 1985, 1991; Sirgy, et. al., 1997).
Specifically, the more similar a consumers self-image is to the brands image, the more
favorable their evaluations of that brand should be (Graeff, 1996, p. 5).
Brand Personality
Contrary to product-related attributes, which refer to be performance-oriented for
customers, brand personality seems to be representative/self-expressive oriented (Keller,
1993). Brand personality refers to the set of human characteristics associated with a brand
(Aaker, 1997, p. 347). Moreover, researchers found that brand personality facilitates a
consumer to articulate his/her self (Belk, 1988), an ideal self (Malhotra, 1988), or exact
aspects of the self (Kleine, Kleine, and Kerman, 1993) via the use of a brand. Additionally,
this concept was the essential determinant of consumer preference and usage (Biel, 1993).
Brand personality can be shaped and influenced by any direct/indirect contact that the
consumer has with the brand (Plummer, 1985). The direct influences included the brands
user imagery, which is defined as the set of human characteristics associated with the typical
user of a brand (Aaker, 1997, p. 348); the firms workers and/or boss; and the brands
endorsers. On the other hand, the indirect influences contained product-related features,
product category relationships, brand name, mark or emblem, and other marketing mix
elements (Batra, Lehmann, and Singh, 1993).
Moreover, according to Levy (1959, p. 12), brand personality consisted of
demographic characteristics such as gender (Usually it is hard to evade thinking of
inanimate things as male or female), age (Just as most, people usually recognize whether
something is addressed to them as a man or a woman, so are they sensitive to symbols of
age), and class (The possession of mink is hardly a matter of winter warmth alone). Some
examples are provided as follows. First, in the tobacco industry, Virginia Slims tends to be
thought of feminine, whereas Marlboro tends to perceived as masculine (Aaker, 1997, p.
348). Second, in the pc business, Apple is considered to be young, and IBM is considered to
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be older (Aaker, 1997, p. 348). Third, based on the various pricing policies in relation to
different department stores, Saks Fifth Avenue is perceived as upper class, whereas K-mart
is perceived as blue collar (Aaker, 1997, p. 348).
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(Parasuraman and Grewal, 2000, p. 169). For the reason that outstanding before/after sale
services provided by the seller really increase the benefits obtained (the take factor) and also
decrease the buyers non-monetary costs, such as time, effort, and mental stress (the give
factor) (Parasuraman and Grewal, 2000, p. 169). Consequently, customer perceived value was
composed of service quality, product quality, and price (Parasuraman and Grewal, 2000, p.
169).
1. Service quality
Perceived service quality was defined as the discrepancy between expected quality
and experienced quality (Gronroos, 2000, p. 67). Expected quality refers to the expectations
of the customer; experienced quality is the outcome of a series of internal decisions and
activities (Gronroos, 2000, p. 101). In other words, customers subjectivity has a significant
influence on perceived service.
Based on a concrete background of empirical and conceptual research, Gronroos
(2000, p. 81) provided a list of The Seven Criteria of Good Perceived Service Quality:
professionalism and skills (i.e., service providers have required knowledge to offer skills in
order to solve customers problems in a professional way), attitudes and behavior (i.e.,
service providers are considerate of/friendly to customers), accessibility and flexibility (i.e.,
service providers are easy and adaptive for customers to reach), reliability and
trustworthiness (i.e., service providers are dependable and honorable), service recovery
(i.e., service providers are willing to correct mistakes as soon as they can), serviscape (i.e.,
customers feel comfortable in the environment related to the service process), reputation and
credibility (i.e., service providers can be trusted by customers).
2. Product quality
Generally speaking, people buy products to satisfy needs and wants. That is,
consumers would like to obtain a mixture of utilities when they procure items for
consumption, and different customers seem to acquire a variety of benefits from the same
kind of goods. In order to supply the benefits for consumers, marketers need to successfully
incorporate the components that constitute a product. These components include product
features (quality, design, branding, and packaging) and customer service (purchase services
and usage services) (Bearden, Ingram, and LaForge, 2001, p. 185). Product quality refers to
how well a product does what it is supposed to do as defined by the customer (Bearden,
Ingram, and LaForge, 2001, p. 186).
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3. Price
The price of a product/service can be analyzed associated with customers quality
expectations and/or their past experiences. If the price is judged too expensive, consumers
might not purchase. A low price policy causes poor positioning and neglected opportunities.
However, price appears to be a standard for quality in some circumstances. A higher price
level equals a better quality in the minds of customers, especially when the service is highly
intangible (Gronroos, 2000, p. 80).
Definition
Earlier definitions of brand image are presented in broad terms by Dobni (1990) who put
forward the following writers understanding of brand image. Newman stated it as everything
the people associate with the brand (1957). Reynolds (1965) confirms that an image was
centred on drawing a few key beliefs from a vast variety of sources, thus creating your own
impression based on the brand. Herzogs concurs that brand image was the sum of the total
impressions. (1973). Indeed, such definitions all concur together; echoed by the words of
Levy who stated that a brand image is a constellation of pictures and ideas in peoples minds
that sum up their knowledge of the brand and their main attitudes towards it (1978). A more
recent insight into brand image was added by Woodside who defined image as the degree of
positive or negative affect associated with psychological object (Reid, 2001).
From these definitions a clear trend is appearing with regard to the perception of brand image
with key figures around the mid-nineteen hundreds, supporting a collective view that an
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individual takes in a collaboration of ideas that the company puts forward as a representation
of themselves. This allows them to draw a clear conclusion of a company from a few certain
points which strike a cord with the individuals.
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and that brand image is the key component in establishing market dominance. Also,
Krishman (1996) in Faircloths assessment with the aid of the Landor survey discovered that
there is a strong correlation between brand equity and brand image. The stronger the brand
equity, the stronger the brand image and vice versa.
Reids (2001) understanding of brand image concerns the product of interaction involving the
consumers specific experience with a certain brand, helped by advertising which reveals how
the brand is to be understood and used, predominantly for brands that contend at parity.
Another contemporary understanding of brand image was put forward by Hsieh (2002), who
felt that building a brand image based on the identified benefit-based image dimensions
consisted of a set of benefit brand associations. This helped consumers understand with
clarity what a brand can do for them-symbolically, economically, sensorial or as a utility.
White and Hsieh (2002) seem to recognise the key importance that advertising plays in
promoting the elements of a brand image thus differentiating the brand from rival brands,
giving them a competitive advantage.
To summarise, it is plain to see that these academics are in complete agreement that one of
the key attributes of a company, if not the key attribute, is the brand image. It is evident that
there is a clear link between brand image and market share, as depicted by Krishmans
research. In addition, establishing a strong brand image is indeed a powerful way of
developing market power, which consequently helps to create a tight control over its position
within the market. Due to barriers to entry, a rounded marketing plan focussing on all aspects
of the marketing mix; this also helps to retain a consistent consumer interest.
Manchester United
In the Brand Strategy journal, the players were seen to be key to any clubs brand image. The
actions of players and the perception by supporters is hence key to brand image. For
example, ex-Man Utd David Beckham opened the Manchester Commonwealth Games
wearing an Adidas sweatshirt. These images were then broadcast across the globe and this
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was much more powerful then his endorsement through advertising. (Brand Strategy briefing:
Saving face of sponsorship).
These sort of images enable organisations such as Man Utd to develop into icons which
according to Douglas B. Holt is one step further than brand image, as they succeed because
they forge a deep connection with the culture. In essence, they compete for culture share.
This can clearly be applied to industries, like, the football industries, as many fans have a
strong link between them and their club i.e. it is part of their culture.
Introduction
Manchester United has excelled in the modern game of Football and its activities away from
the pitch. It has existed for over a century now and has grown during this period from a small
club into a global phenomenon.
sustaining its brand image has been achieved by focusing on the premier football team, which
sits at the centre of the business. Indeed, it is crucial that all areas of the marketing mix are
exploited to help establish strong market dominance and a sustainable brand image, hence
this marketing principle will be central to the analysis of Manchester Uniteds brand image.
Manchester Uniteds brand image will be critically assessed, paying particular attention to the
way in which they have utilised various marketing communications to sustain their image.
Moreover, by presenting a timeline of Manchester Uniteds marketing practices will allow to
discriminate as to whether they have been successful or not.
Marketing Mix
Promotion:
Manchester United has established a range of global, commercial partnerships with certain
blue chip firms such as Vodafone and Nike. Indeed this has helped put Manchester United on
the global scene. Nike has launched their new Cool Motion double layer kit, promoted by
many of the players such as Scholes and Ferdinand, wearing Nike Boots, which have helped
connect the famous market leader with this Premier Football team. Further, legends such as
Cantona have helped create this maverick image for Manchester United, but also having such
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a combination of powerful sponsors has brought the team a reputable image. (ManUtd.com,
2004a).
The extent of success related to brand image will now be explored.
Nike
Worldwide sports giant Nike have become the shirt sponsors of Man United since 2002. The
deal is unique in terms of its value (300 million), length (13 years) and structure. The
literal image of the Nike tick presented to customers on the Man United replica shirts has
helped boost shirt sales over the last four years. The relationship between the two
companies, centres on combining the core activity of Football and the strength of Uniteds
global fan base with Nikes expertise in sports product and integrated marketing campaigns.
Chairman Sir Roy Gardener feels that this partnership with Nike will undoubtedly increase
the brand equity of Manchester United and thus enhance the brand image of the club
globally.(ManUtd.com, 2004b). By associating itself with companies who are perceived as
leaders in their respective markets has allowed an increase in brand awareness as well as a
boost in brand equity. As referred by Krishman (1996) who cited the strong correlation
between brand equity and brand image.
Nike however have been criticised for a lack of human rights in many of its factories in South
East Asia. In particular, Oxfam in March 2000 alleged that Nike had not conformed to a code
of conduct in their subcontracted Par Garment factory in Thailand. Although Nike denies
accusations, ignoring cases and not realising the crisis of poverty and underpaid children; the
result has been a bad outlook for Nike. Consequently, such negativity has damaged the
relationship with Manchester United and their relationship with their customers. Moreover, in
October 2000, Paul Kenyon reported in the BBC that two girls were found in a factory in
Cambodia under the legal working age of 15. Despite recent attempts in October 2003 to
organise unionisation in Sri Lanka, Nike are still under the spotlight which could tarnish the
prosperity of their influential brand image with Manchester United.
Media
Indeed, the annual report (Man Utd Annual PLC Report, 2003) included that the business of
Manchester United is built on three strong foundations of football, fans, and media. Football
is the core activity; the fans are the greatest asset and the media the most effective means of
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bringing the two together. This comment is an indication of the paramount importance the
media has played in building and sustaining the Manchester United brand. In 2003, the
media contributed 37% towards total revenue (Man United Annual Report, 2003). However,
if Manchester Uniteds partnerships with the likes of Nike are in controversy, this can
determinately affect the image Manchester United want to sustain.
Product
Merchandise
In the early nineties, the extent of the United range was very narrow (consisting of goods
such as scarves, mugs and hats), but now the product line is inexhaustible, including
everything possible from wallpaper in childrens bedrooms to cuddly toys, soft drinks and
underwear.
As the popularity of the Internet has come to prominence, this has acted as a further
opportunity of extending the brand image around the globe, providing new found supporters
in East-Asia and America with the opportunity to purchase their goods. Manchester United
have proposed tactics to sell their brand image in countries where popularity is however
limited, such as America and the Far-East.
Place
Old Trafford Club Stadium
The club recognised at an early stage in the brands development, the potential earning power
of the clubs home ground, Old Trafford with 68,000 supporters walking through the gates on
any given match day. Currently shown in Manchester United financial data is that 36% of the
clubs revenue is generated from match days. (ManUtd.com, 2004c). Reid (2001) stressed
that the brand has to be experienced, therefore by providing a well equipped stadium, this
helps attract a greater influx of foreign visitors.
Price
The use of price can be viewed as the sole negative factor of Manchester United brand image.
Exploitation is evident in the form of the fans that pay outrageous prices for gate admissions
(34) and replica shirts (45) and via their business partners, the exploitation of children in
the sweatshops of Asia as exposed by the BBCs current affairs flagship Panorama. While the
clubs players such as Ferdinand, Giggs and Keane are paid so handsomely to wear the
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products of leading sports manufacturers the workers in the sweatshops of Indonesia and
other Asian countries are earning 72 pence for 24 hours of work. (Skynews.com, 2002). The
enormous difference between what the goods cost to manufacture and their price is the reason
behind the clubs huge profits and enormous transfer kitty. It is clear that there is a large
disparity between with the wealth of Manchester United and the workers who make the
products so crucial to the global spread of the brand image.
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Chapter - 04
RESEARCH METHODOLOGY
INTRODUCTION
Research refers to a search for knowledge. It is a systematic method of collecting and
recording the facts in the form of numerical data relevant to the formulated problem and
arriving at certain conclusions over the problem based on collected data.
Thus formulation of the problem is the first and foremost step in the research process
followed by the collection, recording, tabulation and analysis and drawing the conclusions.
The problem formulation starts with defining the problem or number of problems in the
functional area. To detect the functional area and locate the exact problem is most important
part of any research as the whole research is based on the problem.
According to Clifford Woody research comprises defining and redefining problems,
formulating hypothesis or suggested solutions: collecting, organizing and evaluating data:
making deductions and reaching conclusions: and at last carefully testing the conclusions to
determine whether they fit the formulating hypothesis.
Research can be defined as the manipulation of things, concepts or symbols for the
purpose of generalizing to extend, correct or verify knowledge, whether that knowledge aids
in construction of theory or in the practice of an art
In short, the search for knowledge through objective and systematic method of finding
solution to a problem is research.
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DRAFTING QUESTIONNAIRE
The questionnaire is considered as the most important thing in a survey operation. Hence it
should be carefully constructed. Structured questionnaire consist of only fixed alternative
questions. Such type of questionnaire is inexpensive to analysis and easy to administer. All
questions are closed ended.
S. No.
Particulars
Description
1.
Project Title
2.
Sample Size
3.
Sample Unit
50
Shopkeeper, Service men, students,
transporter etc.
4.
Area Covered
Nimbahera
5.
Sampling Procedure
Random Sampling
6.
Research Design
Exploratory
7.
Survey
8.
Research Instrument
Questionnaire
9.
Type of Questionnaire
Structured
10.
Type of Questions
11.
Method of Survey
Sample Survey
12.
Type of Sampling
Judgement Sampling
SAMPLING
It was divided into following parts:
Sampling universe
All the employees are the sampling universe for the research.
Sampling technique
Judgmental sampling
Sample was taken on judgmental basis. The advantage of sampling are that it is much less
costly, quicker and analysis will become easier. Sample size taken was 100 employees.
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DATA COLLECTION
The task of data collection begins after the research problem has been defined and
research design chalked out. While deciding the method of data collection to be used for
the study, the researcher should keep in mind two types of data viz. Primary and
secondary data.
Primary Data
The primary data are those, which are collected afresh and for the first time and
thus happen to be original in character. The primary data were collected through welldesigned and structured questionnaires based on the objectives.
Secondary Data:
The secondary data are those, which have already been collected by someone else
and passed through statistical process. The secondary data required of the research was
collected through various newspapers, and Internet etc.
RESEARCH OBJECTIVE
The research study tends to follow and achieve specific objectives.
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To know the personal views of Nimbahera people regarding choices among various
branded wear.
To study which branded wear is mostly preferred by people as per their choices.
Find out factor influencing the people at the time of purchasing Branded cloth.
QUALITY, DURABILITY, VARIETY, PRICE.
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SR.NO.
PARTICULARS
1
Yes
NO. OF RESPONDENTS
48
PERCENTAGE
96%
No
4%
Total
50
100%
INTERPRETATION:
The above table indicates that, 96% people wearing branded cloth & 4% people not
choose branded cloths.
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PARTICULARS
NO. OF
RESPONDENTS
15
PERCENTAGE
30%
Rs. 1 3 Lac
35
70%
Total
50
100%
INTERPRETATION:
The above table indicates that, 30% people earn in a year 1 lacs rupee and 70% people
are earn 1 to 3 lacs per annum.
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PARTICULARS
PERCENTAGE
Shirt
NO. OF
RESPONDENTS
14
1
2
Pant
12
24%
T-Shirt
10%
Trouser
16%
Jeans
16%
Cargo Jeans
4%
Nero Jeans
2%
Total
50
100%
28%
INTERPRETATION:
The above table indicates that, 24% people purchase Pant, 28% purchase shirt, 16%
purchase Jeans, 16% purchase Trouser, 4% Purchase Cargo Jeans & 2% purchase Nero Jenas.
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PARTICULARS
KOUTONS
NO. OF RESPONDENTS
17
PERCENTAGE
34%
PETER ENGLAND
12
24%
ALLEN COOPER
12%
CHARLY OUTLOW
14%
JOHN PLAYER
6%
PRIKNIT
4%
COTTON COUNTY
2%
MONTE CARLO
4%
Total
50
100%
INTERPRETATION:
The above table indicates that, 35% people prefer KOUTONS, 25% prefer PETER
ENGLAND, 13% prefer ALLEN COOPER, 15% prefer CHARLY OUTLOW, 6% prefer
JOHN PLAYERS.
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PARTICULARS
0 1 Yrs.
NO. OF RESPONDENTS
8
PERCENTAGE
16%
1 2 Yrs.
11
22%
2 3 Yrs.
27
54%
3 4 Yrs.
6%
Above 4 Yrs
2%
Total
50
100%
INTERPRETATION:
The above table indicates that, 54% people use the brand 2-3 yrs., 22% use 1-2 yrs.,
16% use 0-1 yrs., 6% use 3-4 yrs., 2% use above 4 yrs.
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PARTICULARS
Below 1000
NO. OF RESPONDENTS
4
PERCENTAGE
8%
1000-2000
18
36%
2000-3000
16
32%
3000 4000
16%
Above 4000
8%
Total
50
100%
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INTERPRETATION:
The above table indicates that, the different price rang which are purchased by
customer like below 1000 purchase 8%, 1000-2000 purchase 36%, 2000-3000 purchase 32%,
3000-4000 purchase 16% and above 4000 purchase 8% of the price.
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6. Brand Preference and Top of the Mind Awareness for cloth brand.
SR.NO.
PARTICULARS
PERCENTAGE
Extremely Satisfied
NO. OF
RESPONDENTS
8
1
2
Satisfied
33
66%
10%
6%
Extremely Dissatisfied
2%
Total
50
100%
16%
INTERPRETATION:
The above table indicates that, 66% people satisfied with brand,16% people extremely
satisfied, 10% people neither satisfied nor dissatisfied, 6% people dissatisfied & 2% people
extremely dissatisfied.
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PARTICULARS
Advertisement
NO. OF RESPONDENTS
9
PERCENTAGE
18%
Services
17
34%
Quality
21
42%
6%
Total
50
100%
INTERPRETATION:
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The above table indicates that, 34% people influencing through services, 18% through
advertisement, 42% through quality & 6% people influencing through good words of mouths.
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PARTICULARS
Very Good
NO. OF RESPONDENTS
29
PERCENTAGE
58%
Very Poor
2%
Poor
4%
Can be improved
18
36%
Total
50
100%
INTERPRETATION:
The above table indicates that, 58% people feel that product is very good, 4% feel
poor, 2% feel very poor, 36% feel that can be improvement in product.
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PARTICULARS
Very Often
NO. OF RESPONDENTS
0
PERCENTAGE
0%
Occasionally
27
54%
Rarely
12%
Never
17
34%
Total
50
100%
INTERPRETATION:
The above table indicates that, 54% people change the brand occasionally, 34%
people never change, 12% people may rarely change the product.
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PARTICULARS
Quality
NO. OF RESPONDENTS
13
PERCENTAGE
26%
Attractive
14%
Reliable
12
24%
Advertisement
4%
Services
15
30%
Various Offers
2%
Total
50
100%
INTERPRETATION:
The above table indicates that, 26% people buying through product quality, 24%
through product reliable, 4% through company advertisement, 30% through services of
company & 2% through various offers.
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PARTICULARS
To replace
NO. OF RESPONDENTS
42
PERCENTAGE
84%
Not to replace
16%
Total
50
100%
INTERPRETATION:
The above table indicates that, 84% people want to replace the current product line &
16% people not to replace.
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PARTICULARS
KOUTONS
NO. OF RESPONDENTS
22
PERCENTAGE
44%
PETER ENGLAND
18%
ALLEN COOPER
12%
CHARLY OUTLOW
8%
JOHN PLAYER
6%
PRIKNIT
4%
COTTON COUNTY
6%
MONTE CARLO
2%
Total
50
100%
INTERPRETATION:
The above table indicates that, 44% peoples prefer to Koutons, 18% to peter England,
4% priknit, 8% charly outlaw, 6% john player, 6% cotton county.
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PARTICULARS
Cloth Feting
NO. OF RESPONDENTS
14
PERCENTAGE
28%
Cloth Quality
28
56%
Good Stitching
16%
0%
Total
50
100%
INTERPRETATION:
The above table indicates that, 28% choose through cloth feting, 56% through cloth
quality, 16% through good stitching.
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SR.NO.
1
PARTICULARS
Strongly Agree
NO. OF RESPONDENTS
6
PERCENTAGE
12%
Agree
15
30%
28
56%
Disagree
2%
Strongly disagree
0%
Total
50
100%
INTERPRETATION:
The above table indicates that, 56% people neither agrees not disagree to recommend
to other, 30% agree with above statement, 12% strongly agree & 2% people disagree.
113 | P a g e
customer.
There is a complaint from the side of retailers is that dealers deal customer directly
and sell wears on lower price, due to this customer does not go to retailers and
purchase from dealers.
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Suggestion
The product quality must be improved
Company must reform its marketing strategies.
Company may go for reposition its brand image.
In research we found that all the costumer are accepting the repositioning of kouton to
family store
All above company must increase its range of products
All company should put effort in creating brand image by stopping the offer like buy
1 and get 4.
All company must change its image from discounted good to superior goods.
Company must makes strategies for rural market.
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Bibliography
Books Referred:
Kothari C. R. (2005) RESEARCH METHODOLOGY New Age International
Limited, Fifth Edition
Kotler Philip & Keller Kevin. MARKETING MANAGEMENT: Pearson Prentice
Hall, New Delhi, 2006
Parry, Mark E., STRATEGIC MARKETING MANAGEMENT: Means-End
Approach, New Delhi, McGraw-Hill, 2002
Saxena Rajan, MARKETING MANAGEMENT: Tata Mcgraw, New Delhi, 2006
Kotler Philip, KOTLER ON MARKETING: Free Press, New York
Websites:www.koutons.com
www.peterengland.com
www.scribd.com
www.allencooper.net
www.johnplayer.com
www.cottoncounty.com
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Annexure
1. Do you buy branded Pant & Shirts?
Yes
No
Rs. 1 3 Lac
Pant
T-Shirt
Trouser
Jeans
Cargo Jeans
Nero Jeans
PETER ENGLAND
ALLEN COOPER
CHARLY OUTLOW
JOHN PLAYER
PRIKNIT
COTTON COUNTY [
MONTE CARLO
Yrs
12
Yrs
23
Yrs
34
Yrs
Above 4 Yrs
Above 4000
3000 4000
]
]
7. Brand Preference and Top of the Mind Awareness for cloth brand?
Extremely Satisfied
[
]
Satisfied
Dissatisfied
Extremely Dissatisfied
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Services
Quality
]
[
Poor
Very Poor
Can be improved
Occasionally
Rarely
Never
Attractive
Reliable
Advertisement
Services
Various Offers
Not to replace
PETER ENGLAND
ALLEN COOPER
CHARLY OUTLOW
JOHN PLAYER
PRIKNIT
COTTON COUNTY [
MONTE CARLO
Cloth Quality
Good Stitching
Agree
Disagree
Strongly disagree
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