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Project on-branding

  1. 1. PROJECT REPORT ON “EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOR - A STUDY IN RELATION TO FASHION INDUSTRY” Submitted in partial fulfilment of the requirement for the award of the degree of “BACHELOR OF BUSINESS ADMINISTRATION” 2008-11Submitted To: Submitted By:Mrs. Astha Sharma and Sudhanshu LeekhaDr. Richa Gupta BBA (Gen.) 6th Sem.Faculty Guide 0501341708 IDEAL INSTITUTE OF MANAGEMENT AND TECHNOLOGY (Affiliated to Guru Gobind Singh Indraprastha University 16x Karkardooma Institutional Area, Delhi) Page 1
  2. 2. CERTIFICATEThis is to certify that Sudhanshu leekha pursuing Bachelor of BusinessAdministration from Ideal Institute of Management and Technology hascompleted this project under my supervision and guidance. He has takencare of all necessary aspects and shown interest and sincerity during thecompletion of the project report on Effect Of Branding On ConsumerBuying Behavior to my full satisfaction.I certify that this project is up to my expectations as per the guidelineslaid down by Guru Gobind Singh Indraprastha University.Mrs. Astha Sharma andDr. Richa Gupta Page 2
  3. 3. ACKNOWLEDGEMENTManagement is a profession wherein no work can be accomplishedwithout the help and assistance of a large number of people, be it yoursuperiors or subordinates. A good manager is the one who knows how toget the work accomplished with the help of his colleagues. As futuremanagers, we are taught to practice such behavior at every step. Thisproject is also a part of it.I would like to thank Ideal Institute of Management and Technology forproviding me with this great opportunity to work on this report andchoosing my own topic of interest.Further I would also like to thank everyone in Ideal Institute ofManagement and Technology with whom I have come in contact duringthe preparation of this dissertation.I wish to express my sincere gratitude to Mrs. Astha Sharma and Dr.Richa Gupta for their extended support during the study and preparationof the report. All have been profoundly instrumental in making theproject undertaken the source of knowledge providing all the supportand necessary guidance.SUDHANSHU LEEKHA Page 3
  4. 4. EXECUTIVE SUMMARYBrand is a Guarantee, an assurance for a defined standard of quality forthe first time and for every time but not the vice versa. Brand is name orlogo that plays the role in the mind of the customer. Brands do notcompete in the product area but compete for the mind space of thecustomer. A brand once established in the mind of the customerbecomes indelible when customer identifies itself with that particularBrand.Branding is an effective marketing strategy tool that has been used withfrequent success in the past. Branding can be an effective and powerfultool for all types of business organizations. If brand owners use theirproduct correctly, the payoffs can be substantial. However, if brands aremismanaged, the results can be damaging.This report is aimed to investigate the effect of brand on consumerbuying behavior. How much consumers are prepared to pay for brandedproducts, how important they consider price, brand or other factorsduring their purchasing decisions. The Report aimed at comprehensiveliterature review on branding, brand loyalty, brand awareness, brandequity and brand perceptions, price sensitivity and willingness to pay. Page 4
  5. 5. TABLE OF CONTENTS1. Chapter 1 – Introduction 01-061.1 Introduction 021.2 Project Aims & Objectives 031.3 Limitations of the Project 062. Chapter 2 – Literature Review 07-202.1 Understanding Branding 08 2.1.1 History of Branding 11 2.1.2 Branding in today’s Markets 13 2.1.3 Importance of Branding 15 2.1.4 Development of Brand Equity 18 2.1.5 The Competitive Advantage of Brand Loyalty 192.2 Understanding Consumer Buying Behavior 21 2.2.1 Factors Affecting Consumer Buying Behavior 22 2.2.2 Consumer Buying Decision Process 25 Page 5
  6. 6. 2.3 Branding’s Influence on Consumer Purchasing Behavior 28 2.3.1 Impact on the Consumer Learning Process 31 2.3.2 Impact on Consumers’ Perception of Brands 32 2.3.3 Impact on Consumers’ Attitudes towards Brands 362.4 Positioning 37 2.4.1 Usefulness of Positioning 37 2.4.2 Brand Positioning 38 2.4.3 Elements of Positioning 393. Chapter3 - Research Methodology 41-433.1 Introduction 423.2 Research Approach 423.2.1 Secondary Data 423.2.2 Primary Data 433.3 Data Collection Tools 434. Chapter 4 - Findings & Analysis 44-734.1 Secondary Research Findings 45 4.1.1 Current Consumer Trends 48 4.1.2 Top Brands in India 51 Page 6
  7. 7. 4.2 Primary Research Findings 575. Chapter 5 - Conclusions & Recommendations 74-795.1 Conclusions 755.2 Recommendations 77Bibliography 80Annexure 81-87 Page 7
  9. 9. CHAPTER 1: INTRODUCTION1.1 Introduction“Brands are like human beings. They are born, fed and nurtured, madestrong and responsible so that they can be faithful friends of the people(customers), form mutually beneficial and satisfying relationships withthem and become their companions for life. Such brands, make theirparents (organization or corporate) proud of them. The best brands arethe ones who help in forming and sustaining strong long term “parent-brand-people” relationships. These brands form the potential for presentgrowth and future expansion. They help the organizations conquer peaksat the time of booms and stay afloat and swim at times of depression.”We come across a number of brands in our daily lives. Our morningstarts with using a toothpaste (Colgate, Pepsodent or Close-up), using abathing soap (Lux, Fairglow or Cinthol) and shampoo (Clinic All Clearor Vatika), wearing clothes ( Allen Solly, Levi’s or Raymonds), breakfastbread (Britannia or Modern) and butter (Amul) or jam (Kissan), lunchand dinner (Nature Fresh or Pillsbury flour and Safal vegetables),morning and evening tea and coffee (Tetley, Nescafe or Bru), going outin a car (Hyundai Santro, Honda Accord or Mercedes Benz).Talking on the cell phone (Motorola, Nokia, Siemens or Samsung),watching television in the evening (LG, Sony or Philips) or listening tomusic (Philips or Apple) etc. But how often do we think of what all acompany does to put a positive imprint (fight for a shelf space) in themind of the customer?Today nearly all the companies are focusing more and more on buildingstrong brands. The concept of brand equity and its management has Page 9
  10. 10. come to the fore like never before. More and more companies arerefocusing on select strong brands.This project is thus a timely stuffy of the importance of brands, what ittakes to build them, what benefits do they give to different stakeholders(organization, distributors and customers), how can they be leveraged,what is the impact of modern technology on branding, branding on theweb, branding in mergers and acquisitions etc. examples have beengiven and cases discussed at every suitable point to bring out anapplication oriented understanding of “building and managing brands”. Page 10
  11. 11. 1.2 Project Aims and Objectives Importance of understanding branding and its impact on modern day markets is vital to the health and growth of most industries. The aim of this report is to put into perspective the functional values of branding as well as assess its role in the consumer purchase decision-making process.• Understanding the concepts of branding and consumer behavior.• To study the effect of brands on consumer buying behavior in relation to Readymade garments.• To analyze the branding strategies adopted by some of the companies in the readymade garments to woo the consumers into buying their products.• To do a comparative study of the branding strategies adopted by the companies in the readymade garments. “EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR-A STUDY IN RELATION TO FASHION INDUSTRY” In order to fully answer this research question, the following objectives have been set: • Set a valid and sustainable research question in order to achieve a non- bias and accurate understanding on the topic in question; Page 11
  12. 12. • Present the key concepts behind branding, its values and its usage inmodern day marketing campaigns by reviewing current literaturepertaining to the subject matter;• Determine whether a correlation between consumer identities andperceived brand identities is present;• Determine the impact of branding on the consumer purchase decision-making process Page 12
  13. 13. 1.3 Limitations of the Project • This project is limited due to time constraint as it involves a lot of complex variables which require a detailed study over a period of time. • The project did not cover the effect of branding on a very large scale. Only a small population was studied, which may not be enough to show correct picture. • The consumers were very reluctant to answer the question and the response may be biased. Page 13
  15. 15. 2.1 Understanding BrandingBRANDThe word “Brand” owes its origin to the Norwegian word “brand” whichmeans to burn. Farmers used to put some identification mark on thebody of the livestock to distinguish their possession. Products are whatcompanies make, but customers buy brands. Therefore marketersresorted to branding in order to distinguish their offerings from similarproducts and services provided by their competitors. Additionally, itcarries an inherent assurance to the customers that the quality of apurchase will be similar to earlier purchases of the same brand.A brand is a name, term, sign, symbol or design or a combination of oneseller or a group of sellers and to differentiate them from those ofcompetitors.BRANDINGBranding is a process, a tool, a strategy and an orientation. Page 15
  16. 16. • Branding is the process by which a marketer tries to build long term relationship with the customers by learning their needs and wants so that the offering (brand) could satisfy their mutual aspirations.• Branding can be used as a differentiation strategy when the product cannot be easily distinguished in terms of tangible features (which invariably happens in case of many services, durables etc.) or in products which are perceived as a commodity (e.g. cement, fertilizers, salt, potato chips etc.).• Brand building is a conscious customer satisfaction orientation process. The brand owner tries to retain customers to its fold over their competitors by a mix of hardware software because when a customer feels satisfied he / she develop a kind of loyalty for the same. Kotler (1999) expands on the concept of identity by stating that a brand is capable of conveying up to six different levels of meaning to a targeted audience. This is known as the “Six Dimensions of The Brand” Page 16
  17. 17. Attributes A brand will communicate specific attributes, such as prestigeBenefits A brand strengthens a product’s attributes by communicating a set of benefits that makes it more attractiveValues A brand represents a company’s core values and belief systemCulture A brand is representative or target a target audiences socio cultural characteristicsPersonality A Brand can project behavioral personality patterns of targeted consumersUser The brand, in some cases, can emulate the end userFrom the consumers’ perspective, brand names are as fundamental as theproduct itself in the sense that they simplify the purchasing process,guarantee quality and at times, form as a basis of self-expression. Hence,should a company market a brand name as nothing more than“just a name”; it would be missing the entire purpose of productbranding. The challenge lies in developing a deep set of meanings forthe brand. Once a target market segment can visualize all six dimensionsof the brand, it will have established a strong rapport within theconsumers’ purchase decision-making process.2.1.1 History of Branding Page 17
  18. 18. Brands in the field of marketing, originated in the 19th century with theadvent of packaged goods. Industrialization moved the production ofmany household items, such as soap, from local communities tocentralized factories. These factories, generating mass-produced goods,needed to sell their products in a wider market, to a customer basefamiliar only with local goods. It quickly became apparent that a genericpackage of soap had difficulty competing with familiar, local products.The packaged goods manufacturers needed to convince the market thatthe public could place just as much trust in the non-local product.Many brands of that era, such as Uncle Bens rice and Kelloggsbreakfast cereal furnish illustrations of the problem. The manufacturerswanted their products to appear and feel as familiar as the local farmersproduce. From there, with the help of advertising, manufacturers quicklylearned to associate other kinds of brand values, such as youthfulness,fun or luxury, with their products. This kick started the practice we nowknow as "branding".We tend to think of branding as a modern day phenomenon. Certainly,during the late 1990s and the early 2000s, branding emerged as asignificant area of emphasis not only for companies and their products,but also for municipalities, universities, other non-profit organizationsand even individuals. Branding became ubiquitous. Many of us alsoknow that Proctor & Gamble and other consumer product companiesbegan branding their products in earnest in the mid-to-late 1800s. Butmore interesting to me is how far back in time branding goes. Forinstance, companies that sold patented medicines and tobacco beganbranding their products as early as the early 1800s. Around the sametime, some fraternities and sororities branded their pledges (literally)during initiation rites as a form of identification and bonding, a practicethat has long since been identified as hazing and therefore abandoned. Page 18
  19. 19. But that is still recent history -- relatively.Between the 1600s and 1800s, criminals were branded (again literally)as a form of punishment and identification. For instance, in England,they branded an S on a persons cheek, while in France; they branded afleur de lis on the shoulder. As repugnant as it may be to us today,slaves were also branded roughly during the same time period to connoteownership. In the 1200s, England required bread makers, goldsmithsand silversmiths to put their marks on goods, primarily to insure honestyin measurement. In the Medieval times, printers also used marks as didpaper makers (watermarks) and various other craft guilds.But branding goes back even further. As far back as 1300 BC, pottersmarks were used on pottery and porcelain in China, Greece, Rome andIndia. Branding of cattle and livestock go back as far as 2000 BC. Andarchaeologists have found evidence of advertising among Babyloniansdating back to 3000 BC. So, how far back does branding go? At least5000 years.What is more interesting to me are underlying needs from whichbranding originated: to insure honesty, provide quality assurance, Page 19
  20. 20. identify source or ownership, hold producers responsible, differentiate,as a form of identification and to create emotional bonding.Interestingly, people value brands for many other same reasons today.Clearly, history provides some insight and perspective on modern daybranding.2.1.2 Branding in Today’s MarketsA central function of branding is the facilitation of the consumer choiceprocess. Due to the complexity of having to select a product amongstthousands of similar offerings, consumers will instinctively attempt tosimplify their choice process by selecting brands that have satisfied themin the past. Thus, one can conclude that pleasant past experiences ishighly conducive to consumers associating benefits to a brand. One canconclude that a central function of branding is its ability to negate theneed for a consumer to seek out information when a need or a want hasbeen recognized, but rather, lead him to a brand that has been satisfyingin the past.One must acknowledge however, that frequent purchasing of a brandcannot always be linked to previous experiences, but can alternatively beformed by embedded perceptions. A consumer might strongly favour abrand with no prior purchasing experience. This type of consumerbehavior is based on stimulus provided by direct exposure to advertisingcampaigns, a company’s PR efforts or even a high concentration of localdistribution in an area that is in close proximity to a consumer.In terms of companies’ views on branding, it can induce the naturaldifferentiation of their offerings, which ultimately, will produce a stateof competitive advantage. Differentiation can only allow for competitive Page 20
  21. 21. advantage if the cost of differentiating is significantly lower than therevenue earned by the sales. Differential advantage allows companies toshowcase their offer in respects to other competitors in the samemarketplace.2.1.3 Importance of Branding Page 21
  22. 22. Principle of branding - A set of related products that are manufacturedby a company and are sold as a family of products under the marquee orbanner of a brand have a certain recognition and a place of respectwithin that very market. Branding the product thus, is a means ofcreation of identification and recognition in the market. It is not just aprocess of getting a trademark and logo, but it is process of evolving as awell reputed name on the market and field. A very well known brandthat has become the identity of the market itself is the office equipmentmanufacturer Xerox. Though it is a companys name, the act ofphotocopying is termed as Xeroxing.Importance of Branding in BusinessFrom the point of view of a business, the process of branding involvesmaking of a trademark and a good name. A registered trademark and aname ensure individuality and uniqueness of a particular product orfamily of products. The lawful registration of the trademark means thatany competitor cannot copy any of the elements and names of theproducts. Branding can be done for anything that can be promoted in theconsumers market, may it be a simple label, a family of products or anumbrella brand. People can also have a personal brand. The primaryadvantage of branding is that it is safeguarded from unlawful activitiesand at the same time, it is also a way of developing a good reputation inthe market.Often you might see some new product carry the tag that says from themakers of …brand, well this is another advantage of branding. When a Page 22
  23. 23. business who owns an already famous brand wants to launch a newbrand in the market, they can use the pre-earned goodwill and reputationfor the new launch. The advantage is that, people are bound to purchasethe new products out of curiosity.Importance of Branding in MarketingMarketing primarily involves the study of demand in a market andcreating a response in the form of supply. In the field of marketing, thebrand name plays an important role as it helps the people to promote thebrand name and its merits quite easily. Apart from that, it also becomespossible for the marketing people to generate intelligence informationabout the brands popularity and also what people exactly want from thebrand owning company. As a result of a brand loyal group of consumers,it also becomes easier for marketing department to asses regular andpromised demand. Apart from that, schemes such as free gifts anddiscounts often boost the sales as the brand is an important icon of themarket.Importance of Branding in Advertising Page 23
  24. 24. Advertising is often considered to be a part of marketing however;branding a particular product helps the advertisers to provide catchylogos and advertisements. As a brand name can never be copied,advertisers face lesser heat from unauthenticated advertisements,effectively, their advertisement creation gets protected. Apart from thatadvertisers can initiate fearless and independent advertising as due to theprocess of branding, the consumers are already well aware of theproduct, its identity and nature.In short, the importance of branding can be summed up in simple wordssuccessful branding is a process that generates revenue that cannot becounted, it creates a reputation that is felt not seen, and it is an asset thatone cannot show on a balance sheet.2.1.4 Development of Brand Equity Page 24
  25. 25. The amount of clout controlled by different brands will vary. Some aredeeply embedded in global culture and are thus, highly recognizable,whilst other are virtually unknown to consumers. When attempting toplace a value on a brand, one refers to “brand equity”. Chay (1991)defines brand equity as a “set of associations and behaviors on the partof a brand’s customers, channel members, and Parent Corporationthat permits the brand to earn greater volume or greater margins thanit could without the brand name and that gives the brand a strong,sustainable, and differential advantage over competitors”. Thisexplanation creates a clear link between a product’s values, be itfinancial or intangible, and a brand name.Using the financial perspective, one measures brand equity bydetermining how much more consumers are willing to pay in directrelation to the brand name. This gives marketers essential insight intothe financial value of the brand. When viewing brand equity from thisperspective, one must naturally consider overhead, such as costs ofadvertising.Using the consumer-based perspective entails considering how theattitude strength of consumers is directly influenced by the brand name. Page 25
  26. 26. This perspective operates under the assumption that the consumer hashad extensive experience with the product in question.The consideration and development of brand equity is vital as itsbenefits are wide reaching. One can consider brand equity as an asset, asit can increase cash flow via the widening of a company’s market shareand the allowance of higher pricing policies.2.1.5 The Competitive Advantage of Brand LoyaltyThere is a palpable correlation between the efficient branding of aproduct or service, and the display of brand loyalty in consumerpurchasing patterns. In this instance, loyalty is defined as a “deeply heldcommitment to re-buy or re-patronize a preferred product/serviceconsistently in the future, thereby causing repetitive same-brand orsame brand-set purchasing, despite situational influences andmarketing efforts having the potential to cause switching behavior".Brand loyalty is a direct consequence of the ability to better satisfy thedesires of a customer that main competitors do. It now becomes clearthat a modern day marketer’s principal objective is to build sustainableforms of loyalty between a company and its consumers, instead offocusing solely on the individual sale of products.Brand Loyalty is the consumers conscious or unconscious decision,expressed through intention or behavior, to repurchase a brandcontinually. It occurs because the consumer perceives that the brandoffers the right product features, image, or level of quality at the rightprice. Consumer behavior is habitual because habits are safe andfamiliar. In order to create brand loyalty, advertisers must breakconsumer habits, help them acquire new habits, and reinforce those Page 26
  27. 27. habits by reminding consumers of the value of their purchase andencourage them to continue purchasing those products in the future.The image surrounding a companys brand is the principal source of itscompetitive advantage and is therefore a valuable strategic asset.Unfortunately, many companies are not adept at disseminating a strong,clear message that not only distinguishes their brand from thecompetitors, but distinguishes it in a memorable and positive manner.The challenge for all brands is to avoid the pitfalls of portraying amuddled or negative image, and instead, create a broad brand vision oridentity that recognizes a brand as something greater than a set ofattributes that can be imitated or surpassed. In fact, a company shouldview its brand to be not just a product or service, but as an overall brandimage that defines a company’s philosophies. A brand needs more thanidentity; it needs a personality. Just like a person without attention-grabbing characteristics, a brand with no personality can easily bepassed right over. A strong symbol or company logo can also help togenerate brand loyalty by making it quickly identifiable.2.2 Understanding Consumer Buying Behavior Page 27
  28. 28. DefinitionConsumer behavior refers to the mental and emotional process and theobservable behavior of consumers during searching, purchasing and postconsumption of a product or serviceConsumer behavior involves study of how people buy, what they buy,when they buy and why they buy. It blends the elements frompsychology, sociology, socio psychology, anthropology and economics.It also tries to assess the influence on the consumer from groups such asfamily, friends, reference groups and society in general.Buyer behavior has two aspects: the final purchase activity visible to anyobserver and the detailed or short decision process that may involve theinterplay of a number of complex variables not visible to anyone.2.2.1 Factors Affecting Consumer Buying Behavior Page 28
  29. 29. Consumer buying behavior is influenced by the major three factors:1. Social Factors2. Psychological Factors3. Personal Factors.1. Social FactorsSocial factors refer to forces that other people exert and which affectconsumers’ purchase behavior. These social factors can include cultureand subculture, roles and family, social class and reference groups.Example:By taking into consideration Reference group, these can influence/ affectthe consumer buying behavior. Reference group refers to a group withwhom an individual identifies herself/ himself and the extent to whichthat person assumes many values, attitudes or behavior of groupmembers. Reference groups can be family, school or college, workgroup, club membership, citizenship etc.Reference groups serve as one of the primary agents of consumersocialization and learning and can be influential enough to induce notonly socially acceptable consumer behavior but also sociallyunacceptable and even personal destructive behavior. For example, iffresher student joins a college / university, he/she will meet differentpeople and form a group, in that group there can be behavior patterns ofvalues, for example style of clothing, handsets which most of groupmember prefer or even destructive behavior such as excessiveconsumption of alcohol, use of harmful and addictive drugs etc. So,according to how an individual references him / her to that particularreference group, this will influence and change his/her buying behavior. Page 29
  30. 30. 2. Psychological Factors These are internal to an individual and generate forces within that influence her/his purchase behavior. The major forces include motives, perception, learning, attitude and personality. Example: Attitude is an enduring organization of motivational, emotional, perceptual and cognitive processes with respect to some aspect of our environment. Consumers form attitude towards a brand on the basis of their beliefs about the brand. For example, consumers of Sony products might have the belief that the products offered by Sony are durable; this will influence those customers to buy Sony products due to this attitude towards the brand.3. Personal Factors These include those aspects that are unique to a person and influence purchase behavior. These factors include demographic factors, lifestyle, and situational factors. Example: Lifestyle is an indicator of how people live and express themselves on the basis of their activities, interests, and opinions. Lifestyle dimension provide a broader view of people about how they spend their time the importance of things in their surroundings and their beliefs on broad issues associated with life and living and themselves. This is influenced by demographic factors and personality. E.g. - A CEO or Manager is likely to buy more formal clothes, ties and shoes or PDAs and less informal clothes like jeans as compared to a Page 30
  31. 31. Mechanic or Civil engineer. So according to their lifestyle andprofession, the buying behavior of people differs from one another.2.2.2 Consumer Buying Decision Process Page 31
  32. 32. Consumer buying decision process is the processes undertaken by consumer in regard to a potential market transaction before, during and after the purchase of a product or service. Consumer decision making process generally involves five stages:A. Problem Recognition Purchase decision making process begins when a buyer becomes aware of an unsatisfied need or problem. This is the vital stage in buying decision process, because without recognizing the need or want, an individual would not seek to buy goods or service. There are several situations that can cause problem recognition, these include:• Depletion of stock• Dissatisfaction with goods in stock• Environmental Changes• Change in Financial Situation• Marketer Initiated Activities It’s when a person recognizes that she cannot make a call from her mobile phone that’s when she recognizes that her phone has been damaged i.e. the phone has hardware problems and needs to be repaired or buying a new piece.B. Information Search After the consumer has recognized the need, he / she will try to find the means to solve that need. First he will recall how he used to solve such kind of a problem in the past, this is called nominal decision making. Secondly, a consumer will try to solve the problem by asking a friend or goes to the market to seek advice for which product will best serve his need, this is called limited decision making. Page 32
  33. 33. Sources of information include:• Personal sources• Commercial Sources• Public sources• Personal experienceC. Alternatives Evaluation Consumers’ evaluates criteria refer to various dimension; features, characteristics and benefits that a consumer desires to solve a certain problem. Product features and its benefit is what influence consumer to prefer that particular product. The consumer will decide which product to buy from a set of alternative products depending on each unique feature that the product offers and the benefit he / she can get out of that feature.D. Purchase Action This stage involves selection of brand and the retail outlet to purchase such a product. Retail outlet image and its location are important. Consumer usually prefers a nearby retail outlet for minor shopping and they can willingly go to a far away store when they purchase items which are of higher values and which involve higher sensitive purchase decision. After selecting where to buy and what to buy, the consumer completes the final step of transaction by either cash or credit.E. Post-Purchase Actions Page 33
  34. 34. Consumer favorable post-purchase evaluation leads to satisfaction.Satisfaction with the purchase is basically a function of the initialperformance level expectation and perceived performance relative tothose expectations. Consumer tends to evaluate their wisdom on thepurchase of that particular product. This can result to consumerexperiencing post purchase dissatisfaction. If the consumer’s perceivedperformance level is below expectation and fail to meet satisfaction thiswill eventually cause dissatisfaction, and so the brand and/ or the outletwill not be considered by the consumer in the future purchases. Thismight cause the consumer to initiate complaint behavior and spreadnegative word-of-mouth concerning that particular product.2.3 Branding’s Influence on Consumer Purchasing Behavior Page 34
  35. 35. The preceding section of this literature reviewed has sought to define theterm branding and explain its functions and values as an instrumentalmarketing tool used in attaining differential and competitive advantage.The following section of this literature review will seek to enlighten theimpact branding has on the consumer decision-making process.First however, one must gain clear insight into the definition ofconsumer buying behavior in order to understand the impact brandinghas on it. In defining “consumer buying behavior”, one may refer toAssael (1987) who distinguishes four types of consumer buyingbehaviors. He bases these four consumer types on the varying degrees ofinvolvement and the degree of differentiation amongst the brands inquestion.Consumers who are described as displaying complex buying behaviorwill expand their beliefs regarding a particular product as a starting Page 35
  36. 36. point. This stage will eventually lead them to develop positive attitudesregarding the product. These intermediary stages lead them to the finalstage of their behavioral pattern, where they consciously make thechoice of purchasing the product. Referring to the Assael’s model; onewill notice this type of consumer engages in highly involved purchasingexperiences being fully aware of the range of brands available and theirlevels of differentiation.Assael (1987) classifies consumer who exhibit Dissonance-reducingbehavior as consumer who are highly involved in the purchasingexperience, however see few differences between brands. For thisreason, the consumer will seek information on the differentiation of theproduct offerings and will not be particularly price sensitive whenseeking functionality. In the event that this consumer finds him orherself in a market that displays low levels of differentiation, theconsumer might result to purchasing influenced by convenience. Likeconsumers who display complex buying behavior, consumers withdissonance-reducing behavior will seek to establish personal beliefsregarding the product. If fostered adequately, these beliefs witheventually transform into attitudes regarding the product offerings.These attitudes, if favourable, will lead to a thoughtful purchase.Assael (1987) considered consumes displaying habitual buying behavioras consumers who did not experience the same sequence as the previoustwo behavioral types. Instead of basing their decision-making process onseeking product information pertaining to functionality orcharacteristics, this type of consumer will purchase based on informationgathered passively, via the company’s promotional efforts, by it throughthe medium of television, radio or print advertising. This behavioraltype, as can be seen on Assael’s (1987) model, with low-levelinvolvement products. Differentiating this consumer type is the fact thatthey being the process with beliefs already embedded in their mind,which they have learnt passively, rather than actively.Variety-seekers are the last behavioral type contained in Assael’s (1987)model. Their typical buying situation is summarized by low-level Page 36
  37. 37. involvement in a market that displays high levels of productdifferentiation. Common to this type of consumer, is “brand switching”,in order to satisfy their need for diversification.In order to fully ascertain the effects that branding has on the consumerdecision making process, the Howard-Sheth Decision-making model byHoward and Sheth (1969) is used that explains not only the process ofconsumer decision-making during purchasing activities, but one thatfacilitates the understanding of pre and post purchasing activities aswell.The model’s core assumption lies in that the key to determining behaviorexhibited by consumers is to fully understand the consumer thought Page 37
  38. 38. process. The Howard-Sheth model illustrates that cognitive decision-making is the process in which consumers mentally process informationthat influences his or her selection of brands.2.3.1 Impact on The Consumer Learning ProcessAt its most basic definition, one can define the consumer learningprocess as being a time period in which a customer is heavily exposed tothe branding process of a product or service. The branding process caninclude any aspect of the promotional strategy, including audio/visualforms of promotion. By learning from this information, whether it is aconscious process or not, the consumer will develop strong feelingstowards a brand. For marketers, branding has a vital effect on thelearning process, because it is self-growing. Once consumers start topurchase product, others will vicariously learn from them. Vicariouslearning is when consumers begin to copy the behavioral patterns oftheir peers by making changes in their own lives to reflect what theyhave “vicariously” learnt.In searching for a more academic view on consumer learning, one canunderstand the process as modifications to a consumer’s behavioralpatterns that are the direct consequence of either past experiences orinformation gathered during all aspects of the purchase decision-makingprocess. These modifications are caused by information that hasessentially been saved as a set of meaningful associations in theconsumer’s mind. These above-mentioned associations provide theconsumer with link to the brand image of offerings in respects to thepromotional tools used to further this brand image. These tools includeboth physical characteristics of the product as well as pricing policies.All the elements that are retained by the consumer stem from what theyhave been exposed to during their individual learning process. This isultimately, what will shape their views and attitudes in regards to brands. Page 38
  39. 39. It has been found that the learning process discussed above acts as acatalyst in creating emotional and evaluating responses. These responsesare embedded in the consumer’s memory span, which will be recalledwhen faced with a purchase decision-making process. Thus,understanding the learning process is the key to marketers who seek toefficiently use promotional methods to influence consumers, because theimprints they create in the mind of consumer will later on be recalledwhen selecting a product or brand.2.3.2 Impact on Consumers’ Perception of BrandsOne may refer to Foxall (1980), where Engel defines perception as “theprocess whereby stimuli are received and interpreted by the individualand translated into a response”. At this point, it is important to note thatthis process is unique to each individual, as perception is highlydependent on a consumer’s individual beliefs structure.Perception is crucial in the decision-making process. In a market wherebranding is used, products are no longer only purchased for theirfunctional characteristics, but primarily for the social or in some cases,psychological identity they express.Building on these concepts, One can elaborate on these concepts byoutlining two determinants that influence a consumer’s perception ofbrands. These two factors are stimulus discrimination and stimulusgeneralization.Whether a consumer has the ability to “discriminate” between thevarious methods used to stimulate a consumer? When a customer isintroduced to a brand, whether this is done via advertising, packaging,word of mouth marketing or any other form of stimuli that affected themduring their decision-making process, their levels of awareness of thebrand will gradually increase via their ability to learn. Once their level of Page 39
  40. 40. brand awareness has increased, their purchase decision-making processwill be influenced by their perception of the brand in question.The perception of brands is crucial to both the marketer and thecustomer. If one considers that frequency of purchases varies fromconsumer to consumer, one can understand that the influence ofperception is vital. By providing relevant information for the consumermarket, marketers enable the creation of symbolic links between theconsumer and the brand image. Thus, consumers will have the relevanttools needed to distinguish between the brands on offer and therefore bepersuaded in their selection. In the event that a consumer is a new userwith no product experience, he or she will not be able to make relevantdecisions based on the actual product. Thus, the brand image again,becomes vital in directing the consumer to a specific product.In order to better understand the relevance of branding on the consumerpurchase decision making process, four key factors that are responsiblefor directing a potential consumer towards a particular brand arereferred.Perceived Quality In time, consumer will have faith in a brand’s integrity via their perceived quality of the brand in questionBuilding Excellent Service When a company implements excellent after service sales, this endorses the perceived quality of the brand and facilitates activities in the pre and post purchase moments of the decision- making process. As discussed previously, this is key in the creation of loyal customersStanding Out in the By striving to differentiate one’s brandConsumer’s from another, companies hope to become embedded in the user’s culture and mind. Page 40
  41. 41. This is the most effective way to insure consumers positively perceive the brand and product. This eventually leads to extremes forms of competitive advantageInvesting in Differential When one seeks to establish a brand, it isMarkets essential to select a market in which it is possible to create differentiation. Otherwise, the concepts of branding will not be possible.Brands have a large impact on the perceived risks consumers associatewith the consumer purchase decision-making process. There to be sixrisks that are perceived by consumers during all aspects of the decision-making process and further outlines how brands can appease theconsumer’s mind in regards to these perceived risks.The first perceived risk a consumer might encounter is one of afunctional nature. The consumer might worry whether the product willmeet his or her expectations. In the creation of a trustworthy brand,marketers seek to raise the level of perceived quality in order tospecifically address this risk.Consumer might also perceive a physical and/or psychological risk thatmight dissuade them from continuing the purchasing decision-makingprocess.A fourth possible risk that might be perceived by the consumer is one ofan economic nature. Price sensitive consumers will question whether theproduct is in fact properly valued at the quoted asking price. Again,marketers will strive to counter this by highlighting the perceived valueof a product in the branding process. If properly done, consumer canbecome price insensitive by forming a strong bond to a brand andtherefore isolating him or herself from competitors. Page 41
  42. 42. Socially speaking, a fifth risk a consumer might perceived to bedetrimental to the buying process is whether his or her selection of abrand will cause embarrassment in a social setting, amongst his or herpeers. Marketers address this issue in the creation of the brand image.By emulating current market trends and fashions, marketers strive toidentify and differentiate their products as being the selected choice ofrevered people..Yet another economic risk consumer might consider, is the opportunitycost of seeking out alternative products, and should the selected one failto satisfy their needs and wants. Reflected in a loyal consumer base, is abrands ability to deliver on the satisfaction guarantee. Thus, one canunderstand that branding is the key in addressing this issue in theconsumer’s mind.2.3.3 Impact on Consumers’ Attitudes Towards Brands Page 42
  43. 43. An attitude can be considered to be either positive or negative,depending on the outcome of their learning and evaluating process.The evaluation of consumer attitudes towards brands has quicklybecome a major part in conducting marketing research. Thedevelopment of positive attitudes towards brands can lead to not only thesustaining of competitive advantage, but in the bettering of the financialhealth of a company.Branding has been found to be a key in formation of positive attitudestowards products, especially those involving low-levels of consumerinvolvement. However it has been noted that there are factors that mightnegate the effects of the formation of positive attitudes. One being thatthe effects of positive attitudes can dissipate should the consumer notpurchase the product within a certain timeframe. Another factor thatmight negate the effects of positive attitudes might be an overtly highpricing policy, which might have a contrary effect to the consumer’spositive attitudes towards the brand and result in a non sale.In considering attitudes towards brands, one must ponder whether theseattitudes all remain at a conscious level, or whether branding caninstigate attitudes at a sub-conscious level. Sigmund Freud’s theory thatindividuals are rarely aware of how their own psychology shapes theirvisual behavioral patterns which suggests that at an unconscious level,consumer might have beliefs that shape their attitudes towards products.By acknowledging Freud’s theories, one can conclude that branding canbe used to target sub-conscious desires that rest at a primal level.2.4 Positioning Page 43
  44. 44. Various authors have given different definition of Positioning. Someare:-Beckman, Kurtz, Boonee“Product positioning refers to the consumer’s perception of a product’sattribute, use, quality & advantages & disadvantages in relation tocompeting brands.”Berkowitz, Kerlin, Rudelius“Product positioning refers to the place an offering occupies in theconsumer’s mind on important attributes relative to competitiveofferings.”2.4.1 Usefulness of PositioningAs competition intensifies & brands proliferate, consumers tend todifferentiate between brands in their own way. Positioning is a consciousattempt on the part of the marketer to accentuate this natural tendency &in the process, impart a distinct identity to his own brand to make itstand out among the competitors. The basis on which this differentiationis achieved reflects consumer preferences or attitudes. The marketer,through his diverse & coordinated actions, tries to influence this process.The concept of positioning is also important in various other aspects ofthe marketing strategy. Once one is clear about the position one wants,the other marketing decisions like product design, packaging, pricing,method of distribution, etc., become clearer.2.4.2 Brand Positioning Page 44
  45. 45. It should be remembered that positioning is more a reflection of a product and that it stifles the rich meaning of the brand without taking into account all its potentialities. Positioning applies to the process of emphasizing the brands distinctive and motivating attributes in the light of competition. It is based on the analysis of response to the following four questions. POSITIONING• Why?• For whom?• When?• Against whom? 2.4.3 Elements of Positioning Page 45
  46. 46. Evidence has shown that there are four distinct variables that affect theposition of a given product. These are:-a) The product itself,b) The company behind it,c) The competition,1. The Product: - How important the product is or what meaning it has for the consumer & how he relates to it. The fact that a product involves better ingredients or processes is a matter of indifference unless this knowledge offers distinct advantages to the consumer.2. The Company: - A product comes from a company & every company has its own history. Generally, the stronger the companies profile the better the image of its products. For instance, consumers may perceive a better the image of a product if it comes from a reputed house like Tata’s.3. The Competition: - Product positioning is invariably done in relation to various competitive offerings. In most cases, the consumers have a tendency to judge a product in comparison to the dominant brand, e.g., all photocopiers are compared with Modi Xerox, all PCs with HCL, toothpastes with Colgate & so on. Leading brand enjoys some edge over others. Page 46
  47. 47. 4. The Consumer: - It should be reiterated that positioning is essentiallybased on consumer perception rather than factual evaluation. Hence, itbecomes necessary to examine how the consumer views a product. Here,it becomes necessary to examine how the consumer views a product.Here, the consumer’s self-perception comes into play along with hiscognitive & connotative factors. Page 47
  48. 48. CHAPTER- 3METHODOLOGY Page 48
  49. 49. CHAPTER 3: METHODOLOGY3.1 IntroductionIn order to understand the methodology used to compile this Project, thischapter is included in order to clarify how an effective methodologicalphilosophy can to contribute the successful production of a un-bias andcritically Project, as well as comprehend the process underwent to reachthe pertinent conclusion outlined in chapter 5.This chapter also serves the purpose of justifying and authenticating theresearch procedures employed in order meet the set objectives andanswers the main research question of this Project.3.2 Research Approach 3.2.1 Secondary Data • Articles in Newspapers, Magazines and Internet • Study Reports from Internet • Desk Research under the guidance of my guide Page 49
  50. 50. 3.2.2 Primary Data • Consumer Survey on the effect of brands on their buying behaviour3.3 Data Collection Tools • Questionnaire Survey • Books • Internet Page 50
  52. 52. CHAPTER 4: FINDINGS & ANALYSIS 4.1 Secondary Research Findings Consumer Behavior is the study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires. Consumers take many forms, ranging from an eight-year-old child begging her mother for Pokemon shoes to an executive in a large corporation deciding on a multimillion-dollar computer system. The items that are consumed can include anything: Gucci handbags, a massage, democracy, rap music, or hoopster rebel Dennis Rodman. Needs and desires to be satisfied range from hunger and thirst to love, status, or even spiritual fulfillment. Consumer behavior is the study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires.• A consumer may purchase, use, and / or dispose of am product, but these functions may be performed by different people. In addition, consumers may be thought of as role players who need different products to help them play their various parts.• Fashion terminology is often used by consumers in overlapping ways. A style of apparel is defined by distinctive attributes that distinguish it from others in its category, such as different types of skirts; a fashion is a style that has been accepted by many people; high fashion consists of new, expensive styles offered by upper-end designer. A trend is a general Page 52
  53. 53. direction that may lead to a fashion. Merchandise classifications include designer, bridge, better, moderate, and budget prices.• Fashions tend to follow cycles. The two extremes of fashion adoption known as collective selection. Perspectives on motivations for adopting new styles include psychological, economic, and sociological models of fashion.• Marketing activities exert an enormous impact on individuals. Consumer behavior is relevant to our understanding of the dynamics of popular culture.• The Internet is transforming the way consumers interact with companies and with each other. Online commerce allows us to locate obscure product from around the world, and consumption communities provide forums for people to share opinions and product recommendations. The benefits are accompanied by potential problems, including the loss of privacy.• The field of consumer behavior is interdisciplinary; it is composed of researchers from many different fields who share an interest in how people interact with the marketplace. These disciples can be categorized by the degree to which their focus is micro (the individual consumer) versus macro (the consumer as a member of a group or of the larger society). Page 53
  54. 54. • There are many perspectives on consumer behavior, but research orientations can roughly be divided into two approaches. The positivist perspective emphasizes the objectivity of science and the consumer as a rational decision maker. The interpretive perspective, in contrast, stresses the subjective meaning of the consumer’s individual experience and the idea that any behavior is subject to multiple interpretations rather than to one single explanation. Page 54
  55. 55. 4.1.1 Current Customer Trends Male Shopping Habits• Men are creatures of habit and find comfort in what is familiar to them – less risk in purchases.• Research shows that nearly 75 per cent of male shoppers buy clothing at the exact same stores they went to three years back.• Men are not as adventurous in fashion as women and changes to wardrobe are far less common.• Male shoppers demand much more customer service.• Men tend to stay with a brand or a style and stick with it for several years – less likely to change.• Male consumer loyalty makes it harder for new businesses or brands to attract new customers.• Retail stores must create some kind of compelling reason for the male shopper to switch.• Male oriented activities like putting greens in the sports department, computer games, celebrity endorsements, all help men try a new store. Marketer’s and brand retailer’s need to capitalize on this consumer trend. It’s no longer just the metrosexual or uber-sexual man. It’s the future consumer and the buyer. In the past men were ignored as mere buyers for their female counterparts. But as the market evolves they will be the biggest buyers for themselves. Brands need to focus on this consumer as he will be the next big thing – The Man. Page 55
  56. 56. Teenage Power• Teenage consumers influence the purchase patterns of many different age groups.• They are the offspring of the baby boomers and represent over 14 per cent of the total population.• Typical teenager’s room now includes a TV, a stereo, a DVD player, a computer and perhaps even a microwave oven.• Each room is a highly personalized environment that can be custom tailored and personalized as a centre for entertainment.• 42 per cent of all Indian teenagers, 18 and over, have their own credit card and increasing – another 14 per cent to have access to the credit cards. Fashion brands need to pay more attention to this consumer segment as they are the future of the marketplace. Increased income levels and exposure to television makes them the consumer with the buying power, especially with the phenomenal growth in the BPO sector where dress codes are essential and thus increasing the opportunities for brands to market themselves and sell to this segment. Page 56
  57. 57. Buying Experiences• Popularity of reality television speaks volumes about the heart beat of the consumer.• Insecurity and a shyness and a new perspective about the outside world cause people to enjoy vicarious adventures enacted by ordinary souls.• Family values become more important.• Historical movies that present plot lines about overcoming danger and winning against greater odds connect us to our past.• Women are being drawn to plots with warm and fuzzy endings – men to macho excitement.• People are watching more newscasts and making a bigger effort to understand current events.• Marketers and businesses alike need to focus on these consumer trends and make a detailed outline as to how they need to innovate to cater to the masses and not just a niche crowd as that’s where the major business lies and the brand image gets identity in the marketplace.• Innovation, promotion and marketing a brand is essential, but only after one understands the psychology of the marketplace and develops products that match it. Page 57
  58. 58. 4.1.2 Top Brands In India PROVOGUE The Company was incorporated on November 11, 1997 as Acme Clothing Private Limited. Provogue stands for fashion and not pure apparel; this in itself makes it the leader instantly. Its designs are cutting edge and radical, which epitomizes its mantra “Redefining Fashion”. The Company launched the fashion brand ‘Provogue’ in March 1998 and within a short span of seven (7) years; it has established a strong brand identity in the minds of the urban consumer. The Company’s philosophy of ‘creating trends’ in fashion, an aggressive marketing strategy, coupled with high profile promotional events and its distribution strategy of retailing through selective stores and malls has resulted in Provogue being now positioned as a leading fashion brand in India. Page 58
  59. 59. The Company acquired from Acme Global the entire business of export of textile; textile machinery and textile related chemicals and operates these businesses as its division under the name Acme Global.• Louis Philippe Louis Philippes range of superbly crafted garments makes an exclusive fashion statement that is accepted as a status symbol, recognized by its distinctive icon — The Upper Crest. •• Van Heusen Van Heusen has redefined corporate attire through continuous product innovation and exclusive collections. Page 59
  60. 60. • Allen Solly Allen Solly popularized the Friday dressing concept in India. It has won the IFA Images 2001 Best Brand Award in the readymade menswear apparel category.• Peter England This mid-segment shirt has effectively penetrated the mini metros. It has won several awards, including Shirt of the Year 2000 and Indias most admired menswear brands 2001. Page 60
  61. 61. LEVI’S FASHION BRANDIn the list of top market players in the fashion industry, the most shiningname is Levis fashion brand. Levi Strauss & Co. (LS&CO) was namedafter its founder Levi Strauss in 1853. Since then the journey of itssuccess has been going on. It has cast its spell in more than 110countries. Levis as leading jeans brand has entered into the internationalparlance and flooding the market with its designer apparels. Levisproducts are marketed under various brand names like Levis, Dockersand Levi Strauss Signature. Page 61
  62. 62. ITC’S LIFESTYLE RETAILINGITC’s Lifestyle Retailing Business Division has established a nationwideretailing presence through its Wills Lifestyle chain of exclusive specialtystores. Wills Lifestyle, the fashion destination, offers a tempting choiceof Wills Classic work wear, Wills Sport relaxed wear, Wills Clublifeevening wear, fashion accessories and Essenza Di Wills – an exclusiverange of fine fragrances and bath & body care products for men andwomen. Wills Lifestyle has also introduced Wills Signature – designerwear designed by the leading designers of the country. Page 62
  63. 63. UNITED COLORS OF BENETTONThe United Colors of Benetton (UCB) is changing hues in India. Flushwith plans of capturing 80,000 sq ft of retail space across the countrybefore the year ends, coupled with a stringent fabrication andmerchandising exercise, United Colors of Benetton is aiming to shore upvolume and value sales, while also presenting a larger-than-life facet ofits retail look. Page 63
  64. 64. 4.2 Primary Research FindingsWhich of the following fashion brands are you aware of? Page 64
  65. 65. Which of the following brands of Denim are you aware of? Page 65
  66. 66. How often do you change your readymade garments? Page 66
  67. 67. How often do you purchase clothes? Page 67
  68. 68. Factors you consider while purchasing a readymade garmentsRANK THEM ACCORDING YOUR PRIORITY: Cloth Type 4 Color 3 Brand 5 Fashion/Trend 6 Price 2 Availability 1 Page 68
  69. 69. Page69
  70. 70. Listed below are statements about shopping behavior for clothes andclothing fashions. Please check one box for each statement toindicate the extent to which you agree or disagree with eachstatement. Agree Neither Disagree agree Nor DisagreeI buy clothes I like, 0 2 48regardless of currentfashion.I buy new fashion looks 12 4 34only when they are wellaccepted.I am not as concerned 14 6 30about fashion as I am Page 70
  71. 71. about modest prices andwearability.I prefer to buy well- 6 4 40known designer labelsrather than take achance on somethingnew.I am confident that I 10 18 22have good taste inclothing. Page 71
  72. 72. Page72
  73. 73. Who influence you to purchase the brand? Page 73
  74. 74. In which media you have seen the advertisement of these brands? Page 74
  75. 75. Which of the following would affect you choice of readymadegarments? Page 75
  76. 76. When you buy a readymade garment during a promotionalcampaign, will you by the product after the campaign? Page 76
  77. 77. Which media do you prefer more for fashion ads (in order of yourpreference)? Page 77
  78. 78. If TV, is it because Page 78
  79. 79. If magazine, is it because of Page 79
  80. 80. If Newspaper / pamphlets, if it because of Page 80
  82. 82. Chapter 5 CONCLUSIONS & RECOMMENDATIONS5.1 ConclusionsReadymade garment is really becoming big business. The domesticmarket too presents immense opportunities with consumer spending onthe rise and organized retailing growing. But should a garment player goglobal or sell at home?Some players such as Raymond and Zodiac Clothing have chosen to beaggressive in both markets. Even as they plan to improve their retailpresence over the next three years, both are expanding theirmanufacturing facilities in Bangalore to cater to the expected rise ininternational demand. Interestingly, major export players such as Ambattur Clothing (ColorPlus) and Acme Clothing (Provogue) have, in the past, placed their beton the domestic market.These companies quickly managed to give bigger players a run for theirmoney. But, as Color Plus discovered, further growth could come onlyfrom a wider distribution network, which needs deep pockets. Raymondstepped in and acquired the brand.Operating in the domestic market poses an entirely different set ofchallenges from that of the export market. It requires more thanmanufacturing expertise and a heightened fashion-consciousness.Established names, however, do not have it easy either. The entry ofinternational brands such as Tommy Hilfiger into the Indian market islikely to be followed by more players. Page 82
  83. 83. Competition is likely to hot up and keep domestic players on their toes.The retail landscape is changing, and the traditional distribution strategyof apparel players is in for an overhaul. Figuring out which price point tooperate in is yet another challenge for an apparel maker. Challenging,but interesting, times are ahead for the readymade garment industry.Apparel retailers, with little retail expertise, had to build their ownnetwork, at considerable expense. The rapid growth in recent years ofvarious retail formats, such as departmental stores and malls, has given afillip to the industry.A boost to the industry would come from allowing foreign directinvestment in retailing, which would increase space considerably andalso bring international practices to India. This may also encouragenewer entrants, once the distribution costs decline.Private labels tend to do well during recessions. Retailers enjoy bettermargins on their own labels, and are also able to price them lower.Players such as Madura Garments, which have a presence in the segmentthrough Allen Solly, believe that once women try out private labels andget more accustomed to Western wear, they are likely to upgrade to amore expensive brand.But players may still find it tough to cater to this market. They wouldhave to move towards a low-margin, volume-driven business. Thiswould also need a far larger distribution network than what exists today.Few retail formats in India operate on a truly large scale. Giants such asWal-Mart and Carrefour, which have the ability to drive volumes, arewhat the industry would need. Page 83
  84. 84. 5.2 Recommendations1. Rural market. Knowing the huge size of rural population of India itis natural that the rural market is attractive to marketers. Companyshould study purchasing power, life styles, buying habits, optimal usagelevel. Brooke Bond for instance could capture the crux of the challengewhen they started marketing Re 1 tea packets.2. Understanding role of children. Marketers should study the role ofchildren in buying decision – as influencers and decision makers.However, the challenge remain how does one communicate withchildren? Advertising recalls being more in the case of children-one Page 84
  85. 85. way is clear but with every one trying to apply the same technique,marketers will be gradually disillusioned with the method. Possibleways of circumventing this problem may be to market the productthrough schools or to use the imitative tendencies of children byinfluencing their peers.3. Distribution. Distribution cost are an increasing component ofmarketing cost marketers will have to find ways through which one canachieve efficient as well as economic distribution. One solution is jointdistribution or by adopting direct marketing.4. Packaging. With self-shopping gaining grounds and shelf space getting limited, packaging becomes an important factor that marketers have to be concern about. Companies should identify the requirements and pack commodities according to demand.5. Customer service challenge. In an increasingly competitive market, retention of a customer is possible only through better service. Marketers will require devoting to more efforts to understand the customer view of quality and convenience. Marketers should do regular research to find this fact.6. Adaptation to newer environment. As government withdraw entry barriers and relax restriction on merger or takeover many companies should install superior technology and resort to merger – acquisition route to make their unit more efficient. Page 85
  86. 86. 7. Creativity and innovation in overall marketing programmes. Marketers have to develop organizational structure style and functioning, which enable them to act fast and bring in innovations in their marketing programmes. Page 86
  87. 87. BIBLIOGRAPHY• Kevin Lane Keller (2004), Strategic Brand Management, 2nd edition, Pearson Education, New Delhi• Consumer Behavior, 6th Edition, by Lean G.Sehiffman and Leslic lazan Kanuk.• Consumer Behavior, 6th Edition, by Hawkins, Best ad Coney.• Brand Equity (Economic Times)•••••• Page 87
  88. 88. ANNEXURE Page 88
  89. 89. BRANDING & READYMADE GARMENTS Questionnaire (Tick whichever applicable)CONTACT INFORMATION:Name: Mr.  Ms. ________________________________________Address: _________________________________________________City: ____________________________________________________Phone :( O) _________________________ (R) __________________OTHER INFORMATION:Age:Marital status:  Single  MarriedOccupation: (tick one)  Businessman  Executive  Government Service Academics  House-Wife  Self-employed  Student  Others ________________________ (Please Specify) Page 89
  90. 90. Monthly Household Income:  <10000  10000-15000  15000-20000  >200001. Which of the following fashion brands are you aware of? Levi’s  Dockers  Color Plus Parx  Blackberry’s  Zodiac Provogue  Park Avenue Louis philippe Van Heusen Peter England  Excalibur Arrow  Others(please specify)2. Which of the following brands of Denim are you aware of? Lee  Black  Levis Strauss Wrangler  Numero Uno  Pepe Monte Carlo Lites  Lee Cooper  Others (please specify)3. How often do you change your readymade garments? Frequently  Occasionally Never4. How often do you purchase clothes? Once a week  Once in a month Page 90
  91. 91.  Once in 3 months  Once in 6 months5. Factors you consider while purchasing a readymade garments?RANK THEM ACCORDING YOUR PRIORITY:Cloth type  Color  Brand Fashion/Trend  Price  Availability6. Listed below are statements about shopping behavior for clothes and clothing fashions. Please check one box for each statement to indicate the extent to which you agree or disagree with each statement. Agree Neithe Disagr r ee Agree Nor Disagr eeI buy clothes I like, regardless ofcurrent fashion.I buy new fashion looks only whenthey are well accepted.I am not as concerned aboutfashion as I am about modest pricesand wearability.I prefer to buy well-knowndesigner labels rather than take a Page 91
  92. 92. chance on something new.I am confident that I have goodtaste in clothing.7. Who influence you to purchase the brand? Family  Friends  Advertisement Self  Other8. In which media you have seen the advertisement of these brands TV  Magazine Newspaper  Internet Other9. Which of the following would affect you choice of readymade garments? No effective at all Affecting the mostCloth TypePricePromotionalcampaigns Page 92
  93. 93. 10.When you buy a readymade garment during a promotional campaign, will you by the product after the campaign?Yes Likely Don’t Know I will most likely written over to my previous brand I will switch over to previous brand 11.Which media do you prefer more for fashion ads (in order of your preference)? TV  Magazines Newspaper / pamphlets  Radio Hoardings / bill boards Any other (specify)12.If TV, is it because It is an audio - visual medium  Entertainment value Overall presentation13.If magazine, is it because of It is a good source of latest trends Overall presentation Page 93
  94. 94.  Longevity of message  Any other (specify)14.If Newspaper / pamphlets, if it because of Inexpensive source of Information  Mass coverage Available in many languages  Any other (specify)15.If Radio, Is it because Audio medium  Entertainment value Medium for travellers and car riders  Any other (specify)16.If Hoardings, is it because It is an attention gaining medium  Conveys direct message Colorful and attractive  Any other (specify) Page 94