PREFERENCE OF YOUTH

TOWARDS FOREIGN BRAND

AND INDIAN BRAND
INDUSTRY--- TEXTILE

SUBMITTED TO
MR.SHASHANK MEHRA
E&L CORDINATOR
AMITY BUSINESS SCHOOL
NOIDA

SUBMITTED BY
ANSHUL BHARDWAJ
ROLL NOAU200524103
SECA

CONTENTS
Acknowledgement
Reason for choosing the topic
CHAPTER -1
1. Project definition
2. Methodology
CHAPTER 2---- Branding
1.
2.
3.
4.
5.
6.
7.
8.
9.

Meaning of a brand and Its Importance

Brand Associations
Brand Association and Value Creation
Brand Associations and Value of Products Model
Country of Origin
Country of origin rules for textile and apparel products
Consumer Buying Behavior
Brand creation model
Modeling Variation in Brand Preference: The Roles of Objective
Environment and Motivating Conditions

CHAPTER 3----Indian Youth Introduction

1.
2.
3.
4.

Comparison of older and new generation

8 dominant rituals reflect young Indian male behavior
Key drivers of Indian youth
Youth attitude

CHAPTER 4----Introduction to textile industry

1.
2.
3.
4.
5.

A History of the Indian Textile Industry

The Current Situation and Problems Facing the Industry
Indias Major Competitors in the World
The Industry from a Practical View
Market summary

 CHAPTER-5---- Review on existing literature

1. The Commercialized Child and the New Consumer Culture
Book Review: Born To Buy by Juliet Schor
2. Review on future of Indian textile industry

CHAPTER-6
1. Analysis and recommendations
2. Conclusion
CHAPTER-8
1.Executive summary
CHAPTER -9
1. References
2. Questionnaire

CERTIFICATION

This to certify that this dissertation Preference Of Youth Towards Foreign

Brand And Indian Brand is the original work done by Anshul Bhardwaj,
2nd year MBA student of AMITY BUSINESS SCHOOL specializing in
Marketing & Sales and Information Technology. This work has been done
under the guidance of Mr. Shashank Mehra, faculty marketing Amity
Business School and it is the property of Amity Business School and is not
submitted to any other college or university.

Faculty
Mr. Shashank Mehra
Faculty Marketing
Amity Business School

Student
Anshul bhardwaj
MBA 2nd year
Amity Business School

Acknowledgement
First and foremost I would like to convey my gratitude to my guide Mr.Shashank Mehra
for his guidance and support during the course of dissertation .He has been a remarkable
source of inspiration and guidance over the past weeks.
My special thanks are also conveyed to my fellow student and friends. It is the
interactions amongst ourselves where we have learnt some crucial lessons to life and also
grown as individuals
Lastly but always my parents, whom I shall forever be graceful for their encouragement
and love and their belief to see me successful in life

REASON FOR CHOOSING THIS TOPIC

Marketing being my core interest area, I always wanted to do my dissertation in this field.
As branding is one of the backbone of marketing, and hence I decided to do my
dissertation in branding. I did my summer training at Honda Siel cars, which also
motivates me to do my dissertation in branding.
I wanted to choose current topic, and during my discussion with my faculty guide ,
Mr.Shashank Mehra, we decided that brand preference of youth would be a good topic to
work on.
Bold, rash lost, confused, more demanding than ever, westernized but again Indian at
heart. The psyche of todays youth makes for an interesting study?
What are todays youth are like? What do they want, what do they like, what do they
idolize, or dont they.
There is a point of view that there is a lot of less heartburn and a lot more stability in
targeting and marketing the youth. A whopping population 72 percent of our massive
population is below the age of 35.
In this topic we decided to take textile industry for measuring the preference level of
youth. As in textile the end of quota regime from January 1 2005, was a well-known fact.
There were initial reports that the Indian textile industry was gearing up to take advantage
of it and was even preparing to meet the challenges from China. And though it is said that
the revision of the DEPB rates would help the players in the synthetic, man-made and
blended textiles sector.

Research methodology
Following is the blue print of how the research was conducted, it includes:
1) Choosing the approach
2) Determining the types of data needed
3) Locating source of data
4) Choosing a method of data

Types of data used

Both primary and secondary data have been used in the research _

Data collection method

To conduct the market research the data was collected by two source as

Secondary data
Secondary data is one that already exits and is collected from published source
The source from which secondary data were collected are
1) Newspapers and
2) Magazines
3) Internet

Primary data
The primary source of data refers to the first hand information. Primary data was
collected during the survey with the help of questionnaires.

Sample Population
Population is the specific group of people which form the pivotal point of the research
project. For developing and using the sample it becomes the primary duty of the
researcher to define the population from which to draw samples. Sample population is
:
Middle to upper income group
Age -- 20-30

Sampling method
There are two main categories under which the sampling methods can be put. They
are
1) Probability sampling
2) Non probability sampling
During the project non-probability method of sampling has been used. In this method
the chance of any particular unit in the population being selected is unknown. The
three most frequently used non probabilistic design are:1) Judgment
2) Convenience
3) quota sampling

Research purpose:
Measuring the changing buying habit of youth with reference to textile
Measuring the key determinants, which motivates youth to purchase
India brand or foreign brand.
Demographic and psychographic profiling of the youth

Research design:
The survey research has been conducted by filling up the questionnaires with 100
sample size covering Delhi - NCR region. Descriptive research has been used in this
study.

BRANDING

A brand is a product from a known source (organization). The name of the organization
can also serve as a brand. The brand value reflects how a product's name, or company
name, is perceived by the marketplace, whether that is a target audience for a product or
the marketplace in general (clearly these can have different meanings and therefore
different values). It is important to understand the meaning and the value of the brand (for
each target audience) in order to develop an effective marketing mix, for each target
audience. The value of the brand for a web-based company may have heightened
importance due to the intangible nature of the web.
A successful brand is the most valuable resource a company has. In fact, one authority
speculates that brands are so valuable that companies will soon include a statement of
value addendum to their balance sheets to include intangibles such as the value of their
brands.
Brands are used as external cues to taste, design, qualify, prestige, value and so forth. In
other words, consumers associate the value of a product with the brand. For example, the
value of Kodak, Sony, Coca-cola, Toyota and Marlboro is indisputable. One estimate of
the value of Coca-cola, the worlds most valuable brand, places it at over $35 billion.
How does a brand create value to the customer? Why do certain brands have more value
than others? Naturally, companies with such strong brands strive to use those brands
globally (extend them).
The purpose of this paper is to review literature on the core associations of brands used
to position brands as strategies to create competitive advantages.
Branding a small or emerging business is key to the early success of that business. It is
the quickest way for the company to express who it is and what it does. Inaccurate
branding of a new business can make it difficult for people to fundamentally understand
why the business exists in the first place.
For start-up and small businesses, branding can often take a backseat to other
considerations, such as funding and product development. This is unfortunate; a
company's brand can be key to its success. Dollar for dollar, it is as important and vital as
any other start-up activity.
Recently, a software management company, temporarily named Tally Up, invested in a
branding assignment. Its flagship product, a software suite that tracks and runs bonus
incentive plans, needed a clear identity and platform to appeal to its target audience -primarily financial executives. The name Tally Up, while somewhat descriptive, didn't
capture the correct level of sophistication to attract the appropriate clientele. Tally Up
retained a branding consulting company who recommended the name Collides (Latin for
"expert and skillful") to effectively communicate their positioning in an instant. The new
name communicates a similar concept but on a completely different level. Callidus
positions the software product correctly.

1.1 Meaning of a brand and Its Importance

A brand is a distinguishing name and/or symbol! intended to identity the goods or
services of either one seller or a group of sellers, and to differentiate those goods or
services from those of competitors (Aaker, 1991; Stanton, 1994, and Kotler, 1996). A
brand thus signals to the customer the source ofthe product, and protects both the
customer and the producer from competitors who would attempt to provide products that
appear to be identical.
Ancient history provides evidence ofthe importance of brands. In those days, names
were put on such goods as bricks in order to identify their maker (Farquhar, 1989). It is
also known that trade guilds in medieval Europe used trademarks to assure the customer
and provide legal protection to the producer. In the early sixteen-century, Whisky
distillers shipped their products in wooden barrels with the name of the producer burned
into the barrel. The name showed the consumer who the maker (brewer) was and
prevented the substitution of cheaper products. In 1835, a brand of scotch called Old
Smuggler was introduced in order to capitalize on the quality reputation developed by
bootleggers who used a special distilling process (Aaker, 1991).
Although brands have long had a role to play in commerce, it was not until the twentieth
century that branding and brand association became so central to competitors. In fact, a
distinguishing characteristic of modern marketing has been its focus upon the creation of
differentiated brand associations to accentuate the bases of differentiation. The idea has
been to move beyond commodities to branded products - to reduce the primary of price
upon the purchase decision. Consumers associate the value ofthe product with the brand.
The brand can convey either a positive or a negative message about the product to the
consumer (Kim and Chung, 1997, p.361). The underlying value of a brand is often
based upon specific association of a use context such as heart attack prevention can
provide a reason-to-buy which can attract customers. Such an association represents the
products meaning to customers. Brand associations represent bases for purchase
decision and for brand loyalty. There are a host of possible associations that a firm can
build in a brand. Not all associations need to be built but rather those that directly or
indirectly affect consumers buying behavior. Product attributes (customer benefits) are
an important class of associations, but there are others that can be important in some
contexts (Aaker, p. 114). The following section deals with the brand associations that a
firm can build and how they create value to both the firm and consumer.

Brand Associations
2.1 Perceptual Dimensions of Brand Associations
As noted elsewhere in this paper, brand association is anything that is linked in memory
to a brand. The association reflect the fact products are used to express lifestyles whereas
other associations reflect social positions, and professional roles. Still others will reflect
associations involving product applications, types of people who might use the product,
stores that carry the product, or salespeople who handle the product or even the country
of origin. Keller (1998) defines brand associations as informational nodes linked to the
brand node in memory that contains the meaning of the brand for consumers.
These associations include perceptions of brand quality and attitudes towards the brand.
Keller and Aaker both appear to hypothesize that consumer perceptions of brand are
dimensional yet many of the dimensions they identify appear to be very similar. The
damage that a good or a service has in the mind ofthe consumer - how it is positioned
probably more important to its ultimate success than are its actual characteristics.
Marketers try to position their brands so that they are perceived by the consumer to fit a
distinctive niche in the marketplace - a niche occupied by no other product (Schiffman
and Kanuk, 1994)
According to Aaker (1991) there are at least nine brand associations. The associations
convey either the concept, or the meaning ofthe product in terms of how it fulfils a
customers need. In todays highly competitive environment a distinctive product image
is most important. As products become more complex and the market place more
crowded, consumers rely more on the products image than its actual attributes in making
purchase decisions.
One of the brand associations that a firm can use in differentiating its product is
Customer benefit Customer benefit refers to the need that is satisfied by a product. For
example, cavity control by a toothpaste is a customer benefit. Customer benefit may be
rational, psychological (emotional) benefit, or self- expressive benefit. A rational benefit
is closely linked to a products attribute and would be part of a rational decision
process. A psychological benefit relates to what feelings are engendered when buying
and! or using the brand . An example of a rational benefit for a computer
To a consumer would be its ability not to loose work whereas a psychological benefit
Would be the feeling of being professional. For a car, the emotional benefit would be the
Feeling of safety when driving it as a driver of a Volvo car would testify.
The self-expressive benefit relates to the ability of a brand to help a consumer to
communicate his or her self-image. Since consumers have multiple roles, the consumer
has an associated self-concept and a need to express that self-concept. The purchase and
use of brands is one way to fulfill the need for self-expression (Aaker, 1991). He gives
the example of a consumer who may define him/herself as successful and powerful by
driving a Mercedes Benz,

Product attributes
These refer to a products characteristics. Attributes are associated with a products
rational benefit. For example, a Volvo cars attribute is durability. Similarly, a
shampoos attribute would be its safety to use every day. A marketer requires to identify
an attribute that is important to a major segment and not already claimed by a competitor,
e.g an attribute that offers something extra (like features or services that offer something
better). The identification of an unmet customer problem can sometimes lead to an
attribute previously ignore by competitors (Aaker, p. 115). Indeed, unmet needs are
strategically important because they can represent opportunities for firms that want to
make major moves in the market.
Use / application
A marketer can associate a brand with a particular use or application. For example, a
beer can be associated with good friends in a warm social setting. A study ofthe coffee
market revealed that there were nine relevant use contexts for coffee (Glen, et al, 1984).
User / Customer
Another way of positioning a brand is to associate it with a type of user or customer.
This involves identifying the brand with its target segment. For example, a brand can be
associated with those who are interested in weight control as would be the case of a new
drug.
Celebrity /Celebritv
This is the individual who endorses a brand. Linking a celebrity with a brand can transfer
associations such as reliability, strength, performance, and so on. The extend to which
the association can be linked to the celebrity depends on how credible the person is
perceived by the audience. Specifically, a source is more persuasive when the audience
perceives him or her as highly credible than when perceived s being low in credibility
. In other words, the person need not be credible but it is how the
consumers perceive him.
Lifestyle / Personality
The brand can be viewed as a person. Like a person, a brand can be perceived as being
competent, trustworthy, active, or youthful (Aaker, 1996). A brand personality may help
communicate a products attribute and thus contribute to a functional benefit. Similarly,
it can help create a self-expressive benefit that becomes a vehicle for the customer to
express his or her own personality.
Competitors
A firm positions its brand using the organizations attributes such as innovation, a drive
for quality, and a concern for the environment. A firm can position its brand with respect
to a competitor. Sometimes it is not important how good customers think a firm is, but
how they believe it is better than a given competitor. While this brand association can be
accomplished by comparative advertising, it is not usually allowed in some countries.

2.2 Brand Association and Value Creation

Brand associations are useful to marketers. Marketers use brand associations to
differentiate, position, and extend brands, to create positive attitudes and feelings towards
brands, and to suggest attributes or benefits of purchasing or using a specific brand
. However, brand associations are of more use to the customer than the
marketer. The way a brand association creates value to the customer will depend on the
customers perception of value. For each individual, reality is a totally personal
phenomenon, based on that persons needs, wants, and personal experiences. Customers
everywhere respond to images, myths, and metaphors that help them define their personal
identities. Thus, different customers will perceive reality differently. Indeed, Schiffrnan
& Kanuk et al (1996, p.161) contends that although two individuals may be subject to the
same stimuli under apparently the same conditions, the way they recognize them, select
them, organize them, and interpret them is a highly individual process based on each
persons own needs, values, and expectations.
The underlying value of a brand name often is its set of associations its meaning to
people. Associations, according to Aaker (1991) represent the bases for purchase
decisions and for brand loyalty. There are a host of possible associations and a variety of
ways they can provide value . He identifies the following as the possible ways in
which associations create value to the customer: helping to process / retrieve information
about a brand; generating a reason to buy, and creating positive attitudes / feelings.

2.3 Brand Associations and Value of Products Model

Brand associations help consumers judge the value of a product. For example, country of
origin influences consumers in making judgments as to whether a product is of value or
not. Consumers tend to have broad but somewhat vague stereotypes about specific
countries and specific brands that they judge best. For example, French perfume,
Italian leather, Japanese electronics and so on. Using the example
of country of origin as a basis for judging value of products, a model for brand
associations and consumer perceptions of value of products can be depicted
schematically as in the following diagram (Figure 1)

The model shows that a product is of value to the customer and hence it can be bought to
satisfy a need depending on its attributes, its use, or whether it can be associated with a
particular customer group. Similarly, a consumer will consider a product as being
valuable if he/she can associate it with a certain celebrity, lifestyle or country of origin.
Proponents of brand positioning suggest that brands should develop distinct images and
that these images will attract specific consumer segment .
Consequently, the consumer segment will see the brand as being valuable to them. How
do marketers determine the brand associations that convey the value of a brand to the
consumer? Association research (research on brand associations) is important to
marketers since they would want to gain an insightful picture of how a brand is perceived
by consumers as well as its competitors. The techniques that have been utilized by firms
to measure brand associations form part ofthe next section.

Country of Origin
Refers to the country where the product was manufactured. This information determines
customs charges and taxes in certain countries. Certain countries may entirely bar
shipments from certain other countries. In select countries, a notarized certificate of the
country of origin may significantly lower the taxes levied
Country of origin is the country where the merchandise was grown, mined or
manufactured, in accordance with US Customs Regulations. In instances where the
country of origin cannot be determined, transactions are credited to the country of
shipment. Certain foreign trade reports show country subcodes to indicate special tariff
treatment afforded some imported articles.
One more strategic option that a marketer has is to associate a brand with a country. The
country of origin has an effect on the markets perception of a product - either a positive
or a negative perception. A company competing in global markets may manufacture
products world-wide and when the customer becomes aware of the country of origin,
there is the possibility that the place of manufacture will affect product/brand image . The
influence may be to add credibility or to lower it.
Country of origin is the country where the merchandise was grown, mined or
manufactured, in accordance with US Customs Regulations. In instances where the
country of origin cannot be determined, transactions are credited to the country of
shipment. Certain foreign trade reports show country subcodes to indicate special tariff
treatment afforded some imported articles.

Country of origin rules for textile and apparel products

The country of origin rules for textile and apparel products consist of five mutually
exclusive rules that are applied sequentially in the order summarized below:
(a) the country of origin of a textile or apparel product is the single country in which the
good is wholly obtained or produced;
(b) alternatively, the country of origin of a textile or apparel product is the single country
in which the foreign materials that are incorporated in the good undergo a designated
change in tariff classification and \ or meet any other applicable tariff classification shifts
as prescribed in the Customs Regulations;
(c) alternatively, the country of origin of a textile or apparel product is the single country
in which the good was knit if the good was knit to shape or the good was wholly
assembled if the good was not knit to shape;
(d) alternatively, the country of origin of a textile or apparel product is the single country
in which the most important assembly or manufacturing process occurred;
(e) alternatively, the country of origin of a textile or apparel product is the last country in
which an important assembly or manufacturing process occurred.

Country specific rules of origin

Country specific rules of origin represent the results of special trading arrangements that
the U.S. has made with individual countries. Generally these arrangements provide for
preferential trade treatment by the U.S. either on a non-reciprocal basis (preferential trade
treatment provided only by the U.S.) or on a reciprocal basis (preferential trade treatment
provided both by the U.S. and by the country with which the U.S. has made special
trading arrangements). Examples of preferential trading arrangements that the U.S. has
made with other countries include the arrangements that the U.S. has made with the
countries designated by the U.S. as countries eligible for the Generalized System of
Preferences (designated GSP countries) and the arrangements that the U.S. has made with
specific countries, like Israel.
The preferential trade arrangements made by the U.S. with designated GSP countries are
non-reciprocal trade arrangements that provide for duty free entry into the U.S. of
"qualifying goods". The function of origin rules in these trade arrangements, therefore, is
to determine which goods constitute qualifying goods. These goods include: (a) goods
that are wholly the growth, product or manufacture of a GSP designated country; and (b)
goods in which the sum of the cost or value of the materials produced or substantially
transformed in the GSP country plus the direct costs of the processing operations
performed in the GSP country equal or exceed 35% of the appraised value of the good.
In contrast to the preferential trade arrangements made by the U.S. with designated GSP
countries, the preferential trade arrangements that the U.S. made with Israel are
reciprocal in that they provide for duty free entry of each other. s "qualifying goods". The
function of origin rules in the U.S.-Israeli trade arrangements, therefore, is to determine
which goods constitute qualifying goods. These goods in the case of U.S. imports from
Israel include: (a) goods that are wholly the growth, product or manufacture of Israel; and
(b) goods in which the sum of the cost or value of the materials produced or substantially
transformed in Israel plus the direct costs of the processing operations performed in Israel
equal or exceed 35% of the appraised value of the good.

Region specific rules of origin

Region specific rules of origin represent the results of special trading arrangements that
the U.S. has made with groups of countries or specific geographic regions. Like the
country specific rules of origin, the region specific rules of origin provide for preferential
trade treatment between and among the participating countries on either a non-reciprocal
basis or on a reciprocal basis. Examples of preferential trading arrangements that the U.S.
has made with specific geographic regions include the Caribbean Basin Initiative (various
Caribbean countries), the Andean Trade Preference Act (Bolivia, Columbia, Ecuador and
Peru) and the North American Trade Agreement or NAFTA (Canada and Mexico).

Consumer Buying Behavior

What influences consumers to purchase products or services? The consumer buying
process is a complex matter as many internal and external factors have an impact on the
buying decisions of the consumer.
When purchasing a product there several processes, which consumers go through. These
will be discussed below.

1. Problem/Need Recognition
How do you decide you want to buy a particular product or service? It could be that your
DVD player stops working and you now have to look for a new one, all those DVD films
you purchased you can no longer play! So you have a problem or a new need. For high
value items like a DVD player or a car or other low frequency purchased products this is
the process we would take. However, for impulse low frequency purchases e.g.
confectionery the process is different.

2. Information search
So we have a problem, our DVD player no longer works and we need to buy a new one.
Whats the solution? Yes go out and purchase a new one, but which brand? Shall we buy
the same brand as the one that blew up? Or stay clear of that? Consumer often go on
some form of information search to help them through their purchase decision. Sources of
information could be family, friends, neighbours who may have the product you have in
mind, alternatively you may ask the sales people, or dealers, or read specialist magazines
like What DVD? to help with their purchase decision. You may even actually examine the
product before you decide to purchase it.

3. Evaluation of different purchase options.

So what DVD player do we purchase? Shall it be Sony, Toshiba or Bush? Consumers
allocate attribute factors to certain products, almost like a point scoring system which
they work out in their mind over which brand to purchase. This means that consumers
know what features from the rivals will benefit them and they attach different degrees of
importance to each attribute. For example sound maybe better on the Sony product and
picture on the Toshiba , but picture clarity is more important to you then sound.
Consumers usually have some sort of brand preference with companies as they may have
had a good history with a particular brand or their friends may have had a reliable history
with one, but if the decision falls between the Sony DVD or Toshiba then which one shall
it be? It could be that the a review the consumer reads on the particular Toshiba product
may have tipped the balance and that they will purchase that brand.

4. Purchase decision
Through the evaluation process discussed above consumers will reach their final
purchase decision and they reach the final process of going through the purchase action
e.g. The process of going to the shop to buy the product, which for some consumers can
be as just as rewarding as actually purchasing the product. Purchase of the product can
either be through the store, the web, or over the phone.

Post Purchase Behavior

Ever have doubts about the product after you purchased it? This simply is post purchase
behavior and research shows that it is a common trait amongst purchasers of products.
Manufacturers of products clearly want recent consumers to feel proud of their purchase,
it is therefore just as important for manufacturers to advertise for the sake of their recent
purchaser so consumers feel comfortable that they own a product from a strong and
reputable organization. This limits post purchase behavior. i.e. You feel reassured that you
own the latest advertised product.

Factors influencing the behavior of buyers.

Consumer behavior is affected by many uncontrollable factors. Just think, what
influences you before you buy a product or service? Your friends, your upbringing, your
culture, the media, a role model or influences from certain groups?
Culture is one factor that influences behavior. Simply culture is defined as our attitudes
and beliefs. But how are these attitudes and beliefs developed? As an individual growing
up, a child is influenced by their parents, brothers, sister and other family member who
may teach them what is wrong or right.
They learn about their religion and culture, which helps them develop these opinions,
attitudes and beliefs (AIO) . These factors will influence their purchase behavior however
other factors like groups of friends, or people they look up to may influence their choices
of purchasing a particular product or service. Reference groups are particular groups of
people some people may look up towards to that have an impact on consumer behavior.
So they can be simply a band like the Spice Girls or your immediate family members.
Opinion leaders are those people that you look up to because your respect their views and
judgments and these views may influence consumer decisions. So it maybe a friend who
works with the IT trade who may influence your decision on what computer to buy.
The economical environment also has an impact on consumer behavior; do consumers
have a secure job and a regular income to spend on goods? Marketing and advertising
obviously influence consumers in trying to evoke them to purchase a particular product
or service.

Peoples social status will also impact their behavior. What is their role within society?
Are they Actors? Doctors? Office worker? and mothers and fathers also? Clearly being
parents affects your buying habits depending on the age of the children, the type of job
may mean you need to purchase formal clothes, the income which is earned has an
impact. The lifestyle of someone who earns 250000 would clearly be different from
someone who earns 25000. Also characters have an influence on buying decision.
Whether the person is extrovert (out going and spends on entertainment) or introvert
(keeps to themselves and purchases via online or mail order) again has an impact on the
types of purchases made.

Maslows Hierarchy of Needs

Abraham Maslow's hierarchy of needs theory sets out to explain what motivated
individuals in life to achieve. He set out his answer in a form of a hierarchy. He suggests
individuals aim to meet basic psychological needs of hunger and thirst. When this has
been met they then move up to the next stage of the hierarchy, safety needs, where the
priority lay with job security and the knowing that an income will be available to them
regularly. Social needs come in the next level of the hierarchy, the need to belong or be
loved is a natural human desire and people do strive for this belonging. Esteem need is
the need for status and recognition within society, status sometimes drives people, the
need to have a good job title and be recognized or the need to wear branded clothes as a
symbol
of
status.
Self-actualization the realization that an individual has reached their potential in life. The
point of self-actualization is down to the individual, when do you know you have reached
your point of self-fulfillment?
But how does this concept help an organization trying to market a product or service?
Well as we have established earlier within this website, marketing is about meeting needs
and providing benefits, Maslows concept suggests that needs change as we go along our
path of striving for self-actualization. Supermarket firms develop value brands to meet
the psychological needs of hunger and thirst. Harrods products and services for those who
want have met their esteem needs. So Maslows concept is useful for marketers as it can
help them understand and develop consumer needs and wants.

Types of buying behavior.

There are four typical types of buying behavior based on the type of products that intends
to be purchased. Complex buying behavior is where the individual purchases a high value
brand and seeks a lot of information before the purchase is made. Habitual buying
behavior is where the individual buys a product out of habit e.g. a daily newspaper, sugar
or salt. Variety seeking buying behavior is where the individual likes to shop around and
experiment with different products. So an individual may shop around for different
breakfast cereals because he/she wants variety in the mornings!

To summaries:
There are five stages of consumer purchase behavior
Problem/Need Recognition
Information search.
Evaluation of purchases.
Purchase decision.
Post purchase behavior.
Culture has an impact on the company.
Marketers should take into account Maslows hierarchy of needs.

Brand creation model

We have seen the need of well-established brands and how important they are in the
present times. Lets look at the process by which a brand is created.
Brand creation is not just naming or symbolically tagging a product but it goes much
beyond this. It is birth of a brand, which is headed towards fulfillment of all promises and
guaranteeing top class services and products. Such a brand enjoys top of mind recall from
its customers and a high level of brand loyalty.

Inception
of an Idea
or product

name or
symbol of
product

successful
launch of
product

Brand
recognition

Top of
mind
recall

Above process shows the way in which a true brand is born and becomes deep rooted in
minds of the customers.

Name and symbol as a brand:

The name is the first skirmish in the battle for consumer recognition and it is very
important to make it a preemptive strike. The most important aspect of a brand's name
and symbol is that it silently speaks everything about the company or product. Every
name and symbol is associated with certain values, features and it tries to build a
relationship with the company or product.
Nike is the best example of how a symbol is best utilized and exploited and its strong
association with the products. Nike is symbolized by a tick mark or something which is
always right. The business card of a Nike employee has a tick on it instead of the
company name and still people make out the company where the person is employed just
by looking at the tick
Many companies have failed to make a mark, as they could never convince their
customers in the shortest way i.e. through a meaningful symbol what they were
promising to do. Well-established companies are now spending cores of rupees to get a
new logo that revamps their image and creates a new brand of a company that has a new
vision. Videocon, Mahindra and Mahindra and Tata's are a few examples to give.
A corporate punch line is also an attempt to go one step forward and share your vision
with other people and this also helps in creation and establishment of a strong brand. No
wonder Wipro, the company headed by the richest Indian spent a massive amount of
Rs.35 core rupees for a new logo, the bright sunflower and an impact punch line,
Applying thought.

Successful launch of a product:

Brands are created to serve the customer so it becomes mandatory for a company to first
know what the customer wants. A successful brand creation calls for a thorough survey of
market to find out what features are desired by customer in the product and whether he
really wants the product or not. A top class brand with best features and best services can
fall flat on its mouth if customer does not need it. This is what precisely happened with
Real Value a company that introduced vaccumisers and fire fighting instruments in India.
But the Indian consumer was not ready for this product because of which the company
failed completely in introducing a good product.
The extensive market research is a prerequisite for the successful lunch of a brand.

Understanding the customers, their needs, likes and dislikes helps to know what
the customers want.
Analyzing the competition: Competitors are companies which satisfy the same
customer needs. Once a company identifies its primary competitors, it must
ascertain their characteristics, specially their strategies, objectives, strengths and
weaknesses, and reaction patterns.
A customer value analysis should be carried out to reveal the company's strengths
and weaknesses relative to various competitors.

The important steps involved are

Identify the major attributes customers' value.

Assess the qualitative importance of the different attributes
Assess the company's and competitors' performances on the different customer
values against their rated importance
Examine how customers in a specific segment rate the company's performance
against a specific major competitor on an attribute-by-attribute basis
Monitor customer values over time

After the desired features are incorporated in the product and it is given a name, its future
lies in a launch that positions it at the right place and right time. A company should thus
know where it's customers are. Aggressive advertising coupled with proper distribution
will ensure proper availability of the product. In case of a long lasting product, attention
should be paid to after sales service, which plays a major role in differentiating between
two
companies.

Brand recognition:
A Company has only one chance of impressing a customer through a first class product
and so once a customer is satisfied with the product and he goes for a repeat purchase
brand recognition results. The consumer now recognizes the product with its name and
attributes. He associates the product with a set of assets and qualities and this creates
brand equity for the product.
Creation of a strong brand as has been said does not end in launching a brand but ends
where its forms an identity of its own. Successful creation of a brand depends on the
following attributes:

Brand awareness:
Your product enjoys top of the mind recall in that category of products.

Perceived quality:
There is a reason to buy your product as you have differentiated your product from
others. It is the customer's perception of the overall quality or superiority of a product or
service wrt its intended purpose, relative to alternatives.
Brand associations: Your brand is associated with certain emotions, feelings, and
qualities and also with some tangible benefits like freebies.
Brand loyalty: Consumer returns back to your product even after having a choice of
many other products in market.
Creating and maintaining Brand Loyalty
Treat the customers right
Stay close to the customer
Measure/manage customer satisfaction
Provide extras

If a company ensures that its brand passes through all above stages successfully then it
will be a mother of a successful brand that is born to stay in the mind and heart of the
consumer and this is how a product band and a corporate image is created.

Summary of brand creation:

Identify the questions to be answered and problems to be solved .
Conduct qualitative & quantitative research to understand fully who the customers
are; how they perceive the brand & the buying process.
Define the brand which includes positioning, brand association, brand naming,
brand symbol (graphics, tag lines) & brand personality .
Develop a brand strategy & market communications plan to apply the brand
definition to all customer relationships .
Create & execute an integrated marketing communication program.
Manage the brand continuously & track it through research to grow, maintain &
leverage brand equity.

Modeling Variation in Brand Preference: The Roles of

Objective Environment and Motivating Conditions
People consume products in a variety of environments. They drink beer, for example, by
themselves, with close friends, on the beach, when playing cards, at tailgate parties, and
while having dinner with their boss. Within these environments, an individual may prefer
Schaefer beer when drinking alone, Budweiser when having a party, Corona when lying
on the beach, and Heineken when dining out. Preferences change across environments
because the benefits sought by the consumer change. Consumers may feel thirsty while
lying on the beach, and they may want to display refined tastes while dining out.
Moreover, the effect of environment may not be homogeneous, as some people enjoy
meeting new people in social gatherings while others may prefer to visit with those who
are more familiar. Even though consumers face the same objective environment, different
motivating conditions and brand preferences may arise.
It is important to understand how brand preferences change across people, environments,
and motivating conditions and, more importantly, which product attributes are associated
with these changes. Communication and positioning decisions are more likely to be
effective if the relationships among objective environment, motivating conditions, and
preferences for brand attributes are known. If motivating conditions are uniquely
associated with individuals across environments, or with environments across
individuals, then the basis of marketing analysis is at the individual or environmental
level. If, however, motivating conditions arise from the intersection of individuals and
their environments, then analysis conducted at the individual or environmental level will
be insufficient to understand human behavior. In such a case, firms may want to view
different environments as distinct markets, each with its own pattern of heterogeneous
wants and competitive environment.
The influence of objective environments and motivating conditions on brand preference
is investigated. The mathematical model is based on the economic framework of utility
maximization and discrete choice, and it accommodates three challenges that arise in
modeling variation in brand preference.
First, consumer consideration sets and purchase histories can vary widely across
individuals in a relevant universe.
Second, the model must allow for multiple effects, leading to both within-person and
across-person heterogeneity in preferences.
Third, it is often counterintuitive for respondents to express preferences for attribute
combinations that do not actually exist.
Brands, for example, are used in individual instances of behaviora brand performs well
or poorly on individual occasions of use.
For other activities, such as snacking or drinking beer, the activity may occur in distinct
kinds of environment.

INDIAN YOUTH THE INTRODUCTION

Every day at 8 am, her black hair tied neatly in a braid, 16-year-old neelam rides almost 5
kilometers to school in a horse-drawn buggy. She would like to be a doctor some day. But
for girl like neelam , who lives in the dusty, impoverished village of farah in Indias
northern state of utter Pradesh, such a vocation seems remote. For starters, her school
like most village schools in Indiadoes not even offer science classes for girl.
Still, neelam , one of the eight daughters of a sweet maker, has no intention of becoming
a housewife . I want to make something of myself, she says. So each day after school,
neelam operates what amounts to the villages only public telephonea cellular phone
owned by Indian cellular operator koshika telecom. By charging her fellow villagers to
make calls, neelam can make as much as $8.75 on a really good day. Shes saving the
money for computer classes which she hopes will lead to a good job.
Ten years ago, few girls in India would have dared to be like neelam. But today, she is the
very embodiment of Indian youthambitious, technology oriented, and confident.
Her generation is the product of the incredible sociological change wrought by eight
years of economic liberalization in India, a period of painful transition from one party,
socialist rule to an economy where free markets play transition from one-party, socialist
rule to an economy where free markets play a much bigger role. Indian society also has
been transformed by an internet and cable televisionforces young people are best
transformed by the internetforces young people are best equipped to exploit.
India ,s youth are already having an enormous impact: on the economy, on companies
hoping to sell them products, on the media, and on the culture. Unlike previous
generations, todays youth are not obsessed with the ins and outs of politic.
Today , even if parliament blew up, no one from this generation would notice ,says ram
bijapurkar, a marketing consultant. It has little relevance for them. Liberalizations
children also differ from their conservative, insular parents in that they proudly mix
Indian values with western values with western packaging. Then enjoy wearing series and
still admire mahatama Gandhi. But they also like wearing blue jeans, drinking fizzy
sodas, and watching MTV.
This generation shift in attitude as all the more important because this group is growing
so rapidly. Some 47% of Indian current 1 billion population is under the age of 20, and
teenager among them number about 160 million. Already, they wield $2.8 billion worth
of discretionary income, and their families spend and additional $3.7 billion on them
every year. Indians under 20 will make 55% of the population.

Comparison of older and new generation

OLDER GENERATION

NEW GENERATION

Idealized Gandhi style poverty, Wants to get rich admire capitalism

socialist theory.
Grew up admits famines

Grew up amidst food surpluses

Had only one state run TV

channels

Can watch 50 TV channels

Most technophobes

Mostly technology savvy

Tended to avid savers

Tend to be guilt less consumers

Grew up with stable government Grew up with constantly shaky coalitions; mare
led by on party; upper cast
voice for lower castes
domination.
Favored medical, engineering,
or civil service as carrier

Favor computer-driven and high paying career

choices

Average literacy level of 30%

Average literacy level of 52%

Tastes tended towards tradition,

drinking tea, eating at home

Tastes tend toward modern: western food and

sodas

8 dominant rituals reflect young Indian male behavior

In attempt to identify distinct behavioral patters among youth Indian male and arrive
at a core socio-cultural value that drives this species, rediffusion /DYR recently
conducted a first of its kind study that attempts to analyze this consumer segment by
decoding the advertising directed at them. The purpose of the analysis is to
understand the dominant rituals that young Indian male a subscribe to, and there by
unearth new brand planning and communication possibilities for advertising targeted
at these consumers.
There are several youth studies have been conducted before and there is a lot of
material on the subject that can be got off the net, but what is unique about what
rediffusion /DYR have done is that while all previous studies tried to understand the
consumer by looking and talking at him directly, they have studies him through the
media and advertising the consumer. This has never been attempted before.
The reasoning at rediffusion is fairly simple. Society and culture is shaped by variety
of external stimuli, media being one of the more prominent among them. and more
over the past decade are so, advertising has emerged as key component of media, and
thus become a significant stimulus in itself. More than ever before, advertising has
started influencing Indian society, and this target segment (young Indian male)
consumes media and advertising voraciously. The reasoning was that if advertising is
a culture-forming stimulus, why not at a sizable body of advertising to see how
advertising is a culture forming stimulus, why not look at a sizable body advertising
to see how advertising shapes and reflect todays youth.
Towards this end ,the agency identified five broad product categories that addressed
this segment.

Alcohol
Automotive
Apparel
Accessories
Foods

Next, 2,600 pieces of advertising from across 150 odd brand were compiled and
analyzed . the ad were decoded for emotive payoffs, kind of appeal, the relationship
they depicted, the setting/ambience used and the language used.

What was discovered is that as far as this segment is concerned , there are dominant
eight rituals that advertising either reflects, forms or cues in to consciously or
subconsciously.
1. The first of these is an oriented towards success with a desire to make an
arrived in life statement about the self. This can, of course, have an external and
internal manifesto. The advertising for brand such as van heusen(power dressing),
arrow(refinement) and mc dowells signature (the young ceo) exemplify the desire
to make a badge of success.
2. The need to stand out in crowed is another behavioral trait. The need to be
distinct and get noticed , may not noticed through one-upmanship or by stoking
envy in peers, is real. Ads that plug this need gap include the ones for nokia
8310, kinetic GF and dockers.
3. I am like that only with a vengeance is the third behavioral cluster. The
strong individualistic streak is hard to suppress, with an accent on being
unconventional, discarding set rules and making ones own rules. The advertising
for sprite, hugo, boss, and weekender celebrities this is my own way sprit.
4. Building bridges is another dominant trait. Here , the need to be an integral
part of society and culture seems to be the driver , so the so called generation gap
collapses as father- son and uncle nephew bonding takes over.
5. there is a melding of the east and the west , where tradition are adhered to, but
on more contemporary terms(Hamara bajaj)
6. Coming across as attractive to the opposite sex is, of course, a high-priority
rituals. Here, the thing can range from pure fantasy to pure romance to flirtation
and a little fun on the side (parx).
7. finally, there is the need for the surreal or the exaggerated, be it in terms of
extreme humour, or the kind of heightened experience that lot of tecno brands use
in advertising

These rituals are not exclusive to one another, and an individual can subscribe to more
than one ritual at different points in time. The core value of the young Indian male
that can be derived from these rituals is Assertive Gratification. Todays youth are
clear about them selves and things around them, have a point of view on everything and
are not reluctant about voicing those opinions. They make a statement with what ever
they do, and this make them mare assertive compared to the kids of yesterday, who were
more passive and receding. Also , the emphasis today is on the I, so gratified-be it
material, emotional, or spiritual of the self comes first.

Relevance of the study for advertising

Looking at this from advertising point of view , the agency has sliced the data in different
ways, without revealing all the findings- distinct possibilities emerge.
Now , apparel advertising , for instance ,almost always rests in the area of success
orientation, and seeking distinctiveness even more so when you consider shirts ad,
with the possible exception of parx. The other rituals areas have not been used here.
This either means that category codes here are unremarkable and what ever you do has to
fall with in. or it means that there is a window of opportunity that allows you at the other
behavioral cluster to tap into.
The research findings offer brand strong competitive advantages. Companies can look at
competing brands and tailor their course accordingly. And even if their proposition is the
same as that of their competitor the study lets them look at treating the creative
differently. And even the same communication idea can be treated differently by cueing
in to a differently rituals . They really do not have to be fifth denim brand that is either
tough or attractive to the opposite sex.

KEY DRIVERS OF INDIAN YOUTH

what is youth? kids with responsibility. Reveals Indrani Vidyarthi youth is clearly a
creation of the market place, a result of liberalization and the opening up of the skies to
satellite TV and Internet. The youth are being told that they have an identity, unique
needs and wants, separate from those of children and adults, and that marketers take them
and buying them and their buying power seriously.
Marketers borrow the western ideals of youth and its manifestation in attitudes and
lifestyles rebellion ,independence, aggressive energy, overt individualism to define
youth.
The problem is that marketers forget the existence of Indian culture. There fore, they
need to see how Indian youth, with their traditional baggage have read the inter textual
communication and created their own new text.

YOUTH ATTITUDE
There are three key drivers:

A need to be accepted by peers

A need to have their parents approval of their choices
A need to be taken seriously by adults

These sometimes work side by side, but often at cross purposes, creating the image of
the confused youth. However , today Indian youth have started to choose not both, but
between traditional and western and being your self. Thats cool too.

Parents approval
Most Indian youth confess to wear two faces the public face where social interaction is
paramount, and the family face, where out of respect for parents and convention, they
behave very differently. Interestingly, while the public face is supposed to be put on to
conform to social pressure, and the family face real. It is actually the opposite. Most of
the youth feel they are themselves in the company of their peers, and it is home that they
behave as they are expected to.

Peers acceptance
They do it by being cool , not the same as trendy. Trend ness is behavior governed by
image and fashion and driven by media and social pressure. The manifestations of
trendiest are: put on, self conscious, attention seeking and desperate, because it shows
lack of confidence implying lack of maturity.
Cool, on the other hand, is an attitude that reflects self confidence, true independence and
acceptance. The hallmark of cool are what comes from with in. its mantras are believe
in your self, and be you want to be. What have your rejected in the process? Its not
cool to think short term or to be loud and demanding, defend and introvert. Sachin
epitomizes cool. Amir is cool as he excludes confidence, lets his work speak for itself and
is not image conscious.

Take me seriously
Indian youth need to be taken seriously by the adult world. Marketers invest a lot in
building brand personality, hoping to connect with youth who share the same. If the
assumed youth codes are rejected , the brand may seen as for people not like me.

INTRODUCTION TO INDUSTRY
A History of the Indian Textile Industry
Textiles have historically formed an important component of India's exports. There is
archaeological evidence from Mohenjo-Daro, which establishes that the complex
technology of mordant dyeing was being used in the subcontinent from at least the
second millennium B.C. It is believed that the use of printing blocks in India started in
3000 B.C., and some historians have concluded that India may have given birth to textile
printing. Marco Polos records show that Indian textiles used to be exported to China and
South East Asia from Andhra and Tamil ports in the "largest ships" then known. Buddhist
era scripts reveal that woollen carpets were known in India as early as 500 B.C. and the
technical skill that went into Indian carpets of the Mughal period is still hailed today.1
Indias historical prominent role in textile production stems from its wealth in natural
resources. Silk, cotton and jute, all natural resources found in India, are important textile
crops: cotton goes to the clothing industries and jute is used to make hessian and sacking.
Hemp, whose stem fibers make tough materials such as canvas and rope, is also
abundantly grown. India developed its textile industry at an early stage and along with it,
its textile manufacturing technology. Prior to colonization, India's manually operated
textile machines were among the best in the world, and served as a model for production
of the first textile machines in newly industrialized Britain and Germany. A mild climate
meant that the lower strata of society could survive relatively cheaply. The huge trade
surplus the country enjoyed thanks to its wealth in natural resources enabled the nobility
and the middle classes to live in luxury and comfort. This inhibited revolutionary change
and cultured an atmosphere of complacency, parasitism and conservatism, which is still
felt today. Colonization brought an end to Indias glorious textile past. The
competitiveness of the Indian textile industry was such that the British knew they could
not compete with it. While all other countries were becoming industrialized, Indias
textile industry was destroyed and the country was transformed from a country of both
agriculture and manufacturing into an agricultural motor for British capitalism. By 1880
the domestic market had grown to be serviced solely by British textile manufacturers:
India, once one of worlds leading exporters of textiles, was now forced to become a net
importer. Tariffs were imposed to make sure that British goods entered the Indian market
virtually free while Indian goods were kept out of Britains market.
This system remained in place until the Indians began the fight for independence. One
example of Gandhis non-violence opposition was to weaken the British textile industry
by wearing homespun clothes. Gandhi was convinced that the textile sector could be a
catalyst in the advancement of the Indian population by creating employment for the
excess labor pool. This teaching would lie at the base of the policies followed by the
government in the textile sector from independence until the late 1980s. Inspired by

Mahatma Gandhi, the Government of India (GOI) put numerous policies and regulations
to ensure that mechanization did not occur and that labor-intensive textiles were
produced.
However, in following this ideological aim, the GOI did not realize the negative impacts
in
terms of decreased productivity and reduced competitiveness: It provided favorable and
protective taxes and other regulations to the small-scale sector, as the GOI presumed that
this sector created more employment. Large-scale production was curtailed by restrictions
on total capacity and mechanization on mills. Strict labor regulations resulted in
disincentives for capital investment and high production costs. From the price side, the
GOI cornered the sector by imposing price restrictions. The more mechanized and the
higher the capacity of the textile producing company, both in terms of quantity and
quality, the more it was discriminated against by the GOI which used tax policies and
other regulations to sanction these practices. 1990 sounded a new era to Indias textile
sector as the GOI came to realize that efficiency and competitiveness were suffering
under the numerous regulatory burdens. This 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 its
liberalization policies to an international level.

The Current Situation and Problems Facing the Industry

The Different Sectors of the Textile Industry
The Indian textile Industry is currently one of the largest and most important sectors in
the economy in terms of output, foreign exchange earnings and employment in India. It
includes several sub-sectors: spinning, weaving, knitting and garmenting. Also, it uses
different materials like cotton, jute, wool, silk, man-made and synthetic fibers. The textile
(non clothing) industry has three main sectors: the organized mill sector (traditional
weaving and spinning), the powerloom sector (mechanized looms) and the handloom
sector.
The total production of fabrics in all the three sectors combined was around 42 billion
square meters, with 59 percent of the total fabric production produced by the powerloom
sector, 19 percent by the handloom sector, 17 percent by the knit (hosiery) yarn sector,
and the rest by the organized mill sector. The large share of powerlooms (an intermediate
category of looms, operated by power) has resulted from a government policy that
supports the unorganized sector in the form of reservation of product categories,
mandatory export entitlement quotas, and input pricing interventions.

Fiber Mix
Cotton is the predominating fabric used in the Indian textile industry nearly 60% of all
overall consumption in textiles and more than 75% in spinning mills is cotton. India is
among the world's largest producers of cotton with over 9 million hectares and an annual
crop of around 3 million tones. In 2001 cotton fiber production was of the order of 14
million bales, and has been declining steadily from the 18 million level in 1996, mainly
due to crop disasters and calamities in important growing areas. To meet its consumption
demand India imported more than 2 million bales of cotton fiber each in 2000 and 2001.
The cotton sector is controlled by the Government through intervention pricing, export
licensing, and diversion of specified yarns to the handloom sector. Quantitative
restrictions on yarn exports are announced every year, depending on the local supply
position.

Man-made Fiber and Filament Yarn

In 2000-01, man-made fiber and yarn output each stood at 0.9 million tones. Polyester
fiber and polyester filament yarn are the major products in the segment, accounting for
more than three quarters of the overall production. The man-made fiber industry consists
of fewer than 100 medium and large players. During the last five years, imports have
shown a generally declining trend, and were a little over 98,000 tones last year. India also
exports man-made fibers and yarns, and export volumes have been higher than imports in
the last two years.

Wool
Indias wool industry is principally located in the northern states of Punjab, Haryana, and
Rajasthan. These three states alone have more than 75% of the production capacity. The
sector consists of both licensed players (composite mills, combing units, worsted and non
worsted spinning units and machine-made carpet manufacturing units), and the
decentralized players (hosiery and knitting, powerloom, handlooms, and hand-knotted
carpets, and independent dyeing processing houses). Indias apparel wool consumption is
approximately 32 million kg clean, of which knitwear consumes nearly 12 million kg. In
all, there are more than 700 registered units in the sector, and more than 7000
powerlooms and other unorganized units. The large players in the sector have made
significant inroads into the world market, as a result of supply tie-ups and joint ventures
with important brands in EU and other developed countries. India depends upon imports
of fine quality wool required by the organized mill and, to a lesser extent, the
decentralized hosiery sector. Imports, estimated at Rest 6 billion in 2001, have been
mainly from Australia and New Zealand: the major supplier is Australia. New Zealand
wool is being imported mainly for the carpet sector for blending it with indigenous wool.

Silk
India is the second largest producer of silk, contributing about 18 per cent to world
production. The sericulture industry is concentrated in the three Southern states of
Karnataka, Tamil Nadu and Andhra Pradesh, and to an extent in Assam and West Bengal,
too. Growing demand for traditional silk fabrics and exports of handloom products drives
silk demand. Indias requirement of raw silk is much higher than its current production,
resulting in net imports.

Apparel/ Clothing
The total apparel market in India, including tailored and ready-made goods, is estimated
to be U.S. $20 billion. More than 50% of the Indian market is for traditional wear (sari,
dhoti, salwar, etc.), which does not go into fabrication or is tailored at home. The western
apparel sector market is around U.S. $9 billion, of which exports accounted for more than
U.S. $5.5 billion in 2000-01. The $3.5 billion domestic market is essentially in urban
areas, where the consumption of ready-made apparel has risen significantly in recent
years. Ready-made apparel accounts for only 20% of the domestic market (with revenues
of $1.05 billion). Given the low penetration of ready-mades, most of non-urban India still
depends on custom tailoring as the major source of apparel. However, brands account for
nearly two thirds of the ready-made apparel segment. Overall, apparel consumption has
grown at a pace of 5-6%.

Table 1: Indias domestic apparel market size

The industry is highly dispersed and unorganized on account of government policies that
restricted the entry of large players in manufacturing woven garments and several items
of knitwear such as socks, inner wear, and woollen apparel.

The textile industry in India makes an enormous and multi-directional contribution to the
domestic economy. The sector accounts for a significant portion of the total industrial
output of the country and plays a vital role in the countrys economy with regard to
employment and foreign exchange. The industry has witnessed phenomenal growth
during the last four decades. It accounts for 9% of GDP, for nearly 20% of the total
national industrial production and 35% of the export earnings, making it Indias largest
net foreign exchange industry. It directly employs 35 million workers and has widespread
forward and backward linkages with the rest of the economy, thus providing indirect
employment to many more millions2. In addition, Indias economic situation has
improved dramatically since the Indian government introduced new economic reforms in
1991, leading to liberalization in government policies and a significant increase in its
The structure of the Indian textile industry is both complex and unique. It represents a
sharp contrast to the textile industry in other countries and can be characterized by
several aspects.
First of all, it employs co-automated technology. A second characteristic is the dualistic
manufacturing structure dominated by a fast expanding decentralized or unorganized
small scale manufacturing segment and a declining, vertically-integrated, large-scale
composite mill segment. Furthermore the textile industry is dominated by cotton as a
primary raw material. A fourth characteristic is the existence of a large public sector,
which is composed mainly of nationalized and sick mills that have been taken over by
the government. The last characteristic is the predominance of the small-scale sector.
This might be seen as a major advantage, for example, in comparison to China. While the
Indian textile companies are capable of producing very small amounts of cloths for its
clients China is only able to produce large quantities. Like this India can establish its
company production in this niche of the market. During the last decade, the industry
displayed rapid growth in output and exports. But existing structural weaknesses and the
current regulatory environment will increasingly hamper the industry's ability to sustain
this performance.

Indias Major Competitors in the World

To understand Indias position among other textile producing countries, it is necessary to
look at its export rates in detail. Although the textile industry contributes 9% of GDP and
35% of foreign exchange earnings, Indias share in global exports is only 3% compared
to Chinas 13.75 % per cent.4 Expressed in U.S. Dollars, Indias exports value $10
billion, in sharp contrast to Chinas $77 billion. And while India is still concerned with its
finetuning5 policy, China seems to have its sights on a more strategic dimension. It is
believed that China is vacating the commodity end comprising yarn and grey fabric, and
moving into high value processed fabrics, with sizeable investments in value-added
processes. Meanwhile, India is still in the phase of upgrading at the commodity end.
Indeed, an Indian textile delegation has scheduled a visit to China in March 2002 to scout
for business opportunities in lower-value intermediates. In addition to China, other
developing countries are emerging as serious competitive threats to India. Looking at
export shares, Korea (6%) and Taiwan (5.5%) are ahead of India, while Turkey (2.9%)
has already caught up and others like Thailand (2.3%) and Indonesia (2%).

The Industry from a Practical View

The textile industry in India has been aware of the looming intense competition that will
come at the end of 2004 for several years. Many of the players in the industry have
attempted to come together to become more competitive on the international market.
They have had varying success, but they have high hopes for the future.

How India is Improving Quality Standards to Meet Demand

The Textile Commission, under the Ministry of Textiles, has worked on three major
improvements to help the industry become more competitive. In order to compete, the
domestic as well as international perception of Indian textiles has to be one of quality,
good business practices, all the while maintaining a focus on society. The Commission
has facilitated international regulatory approval to reflect these issues. The first focus was
on quality, with ISO 9001. Out of 250 textile companies that were taken up by the
commission, 136 are now certified ISO 9001. This has many implications, but one of the
primary drivers was that the E.U. was requiring this certification in many sectors. Now
that these companies are compliant, the E.U. will view them as viable producers. By
improving the quality, demand will increase in more developed countries where people
are willing to pay a premium for quality. The Textile Commission tried to make this
quality more quantifiable because it is inherently a fairly subjective measure. It helped to
train employees on inspection techniques and set up systems for rejecting and reworking
articles that are below manufacturing standards. It provided testing equipment at regional
locations and also helped the companies learn to use the equipment so they could perform
internal Indias Textile Industry GTTL Final Project quality inspections. In doing this,
quality awareness was increased, quality cost estimates were made, and goals were set for
customer compliance, quality cost, rejection rates, and on has delivery focus. Today, close
to 100% of all units produced are inspected. Inspection commands a significant amount
of time, which has caused costs to increase. However, with a standard rejection rate of
30-40%, it is necessary to ensure quality and the results have been very positive.
Most of the companies have moved their Acceptance Quality Level (AQL) from seven
(7) to around one (1). This means that today, only about 1 out of 100 units are rejected
after the products are released to the market, instead of 7 out of 100.Looking at these
numbers, the question becomes why were the reject rates so high in the first place?
According to the Textile Commission, the quality of the raw material is very poor, which
makes it difficult to manufacture quality textiles. To correct this, a shift has been made to
focus on the entire supply chain. By evaluating the supply chain, the industry will be able
to optimize the overall process instead of each individual process, which will allow
Indias textile industry to become more competitive. Since the industry has been fractured
for so long, the Commission has had some problems in bringing different groups from the
supply chain together. However, there is intense pressure and awareness on the
companies to solve the current problems, so cooperation has taken root.

The Textile Commission has tried to implement new manufacturing techniques to help
bring the costs down in addition to focusing on the supply chain. It has encouraged
investment in capital equipment to increase capacity through automation. This has been
bank-rolled by the Technology Improvement Fund, which is provided by the government.
The Commission has tried to help companies of all sizes, ranging from 10 employees to
over 2000. However, these types of improvements take time to yield results, so costs are
still quite high.

Environmental Management and Code of Conduct Management

Standards
The other two certifications that have been targeted by the Textile Commission are ISO
14000 (Environmental Management Standards) and SA 8000 (Code of Conduct
Management Standards).
The primary issues involved with ISO 14000 revolve around working conditions and
child labor in India. To attain SA 8000, companies must have self-audits and good
documentation and transparency. In urban areas like Bangalore there are very few child
workers in the textile industry according to the Textile Commission. This is primarily due
to local laws and the ability to enforce them. However, in rural areas child labor is quite
plentiful. Children enter the factory between the ages of 14-18. During this time they are
trained to be promoted to the next skill Indias Textile Industry GTTL Final Project level.
The legal age limit is 18 years old, but children can work if education is provided. The
children are normally doing very mundane work. Even the Textile Commission said that
the children were necessary because more experienced workers would feel depressed if
they had to do this type of work. Also, the children have to work to raise money for
themselves and their family. If they dont work they will have a difficult time surviving,
not only today but also in the future, as they wont have the skills required to do higher
paying jobs. However, several organizations are looking into these issues including the
Concerned for Working Children (CWC). The government alone will not be able to
resolve these complex issues, but a coordinated effort between NGOs, the government,
and the industry should be able to improve the standard of living for all involved.
The Textile Commission is encouraging compliance with SA 8000, but it doesnt appear
to have done much to provide alternatives for the companies or the children, so the
situation still exists. Transparency is another concept that has proven to be difficult to
implement in India. The government has not been a good role model in this regard, and
many businesses have had equally poor business practices. The international market
demands greater attention to accounting practices, especially, and business could
certainly benefit from these practices. They would have better control of costs and would
be able to better quote orders if they had more accurate and transparent information.

The Commission has tried to encourage these practices over the last several years, and
today several companies are SA 8000 compliant. The general mood of the Textile
Commission was positive towards Indias ability to compete with China after 2004. It felt
that the perception of the Indian textile industry had increased dramatically in the last
couple of years. This perception was reinforced when talking with several individual
consumers from around the world who have seen clothes with Made in Nadia labels in
the last few years. There is a lot of work that remains to be done, especially in pulling
costs down, but several steps have been taken in the right direction.

Market summary
Indias textile sector is currently poorly organized by virtually any standard. It will
probably succeed in being the major domestic provider for products for this market, but
will have a difficult time moving up the value chain to the international market. It appears
to be moving in the right direction for increased competitiveness on quality, management
practices, and eventually cost but it still has a long way to go before it catches its main
global competitors.
Over the years, the industry has served to bring money into the country to fuel the
development of other industries and in this sense, the country will continue to benefit
significantly by virtue of producing and manufacturing clothing and textiles. The Textile
Industry in India has gone through significant changes in anticipation of increased
international competition. The industry has been forced to tailor products to both the
domestic and the international market which have traditionally been quite different. The
domestic market is has huge potential but is also very price sensitive whereas the
international market tends to favor mass production while also emphasizing quality,
service rates to the Western world, and price of production. India has the ability to
compete on the global scale but it is losing market share to Asian countries that have
cheaper labor, better investment in machinery and capital, and better ocean transportation
options for export to the U.S. While its market share has certainly increased over the last
decade, India still lags behind countries like China that have seen phenomenal growth in
recent years. When the ATC trade quotas are lifted at the end of the year one can only
picture this trend continuing.
There are several areas where China enjoys a distinct advantage over India in a
manufacturing-type industry such as textiles. Perhaps the most noticeable advantage is
the difference in foreign direct investment (FDI), especially by Chinese nationals living
abroad.
In fact, China is now the largest recipient of FDI cash inflows, ahead of the United States.
Furthermore, China has undergone significant trade reform in recent years, especially in
opening its market to foreign competitors and privatizing large government agencies.
This compares to the relative stagnation of outdated policies that better describes Indias
approach. And finally, it is simply much more efficient and cheaper for goods to reach

the U.S. from the port of Hong Kong and other China ports, versus from India. However,
India enjoys a similar comparative advantage for serving demand in the European Union.
Mens apparel market is 46 percent of the total apparel market in India. Preference for
readymade garments is increasing and this has become inevitable with the rise in
urbanization. Whereas, womens apparel market is 17 percent of the total apparel market
in India. The preference for the branded Western and Indo-western apparels among the
working women is on the rise, which is a welcome relief for the manufacturer and
retailers of branded apparel. The dressing habits are getting refined if not changed
specifically among the working women. Kids apparel market is 37 percent of the total
apparel market. Being the brand penetration in this segment lowest at 9 percent shows a
lot of potential for the branded players to exploit this segment.
The apparel market will be thrown open to competition in the year 2005, due to expiry of
Multi Fiber Agreement. Then there will be lot of demand in the western countries. After
China, India is being perceived as the next country with the biggest 'Growth Potential'
due to its cheap manpower and natural resources. The first decade of the 21st century will
witness India as the major player in the apparel business - partly because more
industrialized countries like Korea, Taiwan, etc. have moved into other industries - and
partly because the Indian Government believes in, and wants to grow the apparel export
business, since it is a major earner of foreign exchange.
The objective of the dissertation is to learn and understand the brand preference behavior
of youth.

Book Review: Born To Buy by Juliet Schor,

The Commercialized Child and the New Consumer
Culture
As it is mentioned in this review that the marketers are looking to the youth generation as
their potential target.
We work longer than anyone else, we save less, and too many of us have claimed
bankruptcy. We live in a land of shopping centers; we buy 48 new pieces of wearing
apparel per person per year (the adults among us, that is). We each have a TV set upon
which we view thousands of commercial messages each year.
So what? You ask. Yes, we work hard, and we like to spend our money. We live in a
capitalist society; we are defined by the things we make and consume. Were also able to
discriminate among those intrusive TV, radio and magazine ads and make rational
decisions.
But what is happening to our children in the midst of all this consumerism? Do we know?
If you believe Juliet Schor, author of Born To Buy The Commercialized Child and the
New Consumer Culture, our children are the important new targets of this lust for
business growth, and we are blind to it. The architects of this culturehave now set
their sights on children, she says in her recent and well-received, third book. Where
children were once bit players in our consumer society, Schor now sees kids and teens
at
the
epicenter
of
the
American
consumer
culture.
In her 275-page book, Schor, an economist by training and professor of sociology at
Boston University, tells us that these days, Kids tastes drive market trends. Most
unfortunately, we adults, caught in a cycle of working and spending, dont recognize it.
We
are
too
busy
on
our
computers,
shopping
24/7.
Barbara Ehrenreich, author of Nickel and Dimed, agrees with Schor. We worry about so
many dangers to our children, she writes. Drugs, perverts, bullies but seldom notice
the biggest menace of all: the multibillion-dollar effort aimed at turning our kids into
oversexed,
status-obsessed,
attention-deficit
little
consumers.
Schor identifies the young as the market's first adopters, the avid users, for example,
of new technology. These kids have passionate consumer desires and are the most
closely tethered to products and brands. She tells us that kids can recognize brand logos
by 18 months, that by age 2 they ask for products by brand name, and that by first grade
they can evoke 200 brands. We learn that 40% of teens are tied to car brands and 30% of
parents ask their children for advice on car purchases. In fact, she cites brand guru Martin
Lindstrom who says that 80% of all global brands require a tween strategy.
Yes, according to Schor (and Lindstrom), Its a war out there. $15 billion, Schor says,

is being spent in advertising and marketing to children, particularly to the 52 million

children aged 12 and under. These marketers and advertisers know that children between
the ages of 12 and 19 spent $170 billion in 2002. Cant you see them rubbing their greasy,
greedy little hands together, strategizing in their darkened war rooms, targeting our
youth
with
collateral
materials?
Who is to blame for this phenomenon? Blame our culture, the one that is producing fat
kids with ADD, electronic addiction, high anxiety and increased drug and alcohol
dependence, those kids with a gatekeeper mother, a mother who is out working longer
hours so she can buy more. Or blame no one, especially if this scenario doesnt describe
your kids, the ones who arent watching Nickelodeon or network television or listening to
rap and hip hop on any one of hundreds of radio stations.
I agree with Schor that marketers have found the childrens market and that they have
become more sophisticated at fashioning messages that will appeal to kids. But as a
father of two boys aged 3 and 5, I have little evidence that they are driving a market.
Certainly they do not greatly influence the purchasing decisions of their mother and me. I
do not hear them recite brand names or brand preferences, despite the fact that theyve
watched enough Sponge Bob Square Pants and Dora the Explorer to qualify as experts.
Do marketers purposefully and willfully, even maliciously, target kids? Do they have, as
Schor tells us, terminology (i.e., KAJOY: Kids Are Getting Older Younger) especially
reflective of their purpose? Are marketers growing bolder year by year? Of course! As
a person who spent years in marketing, I did my level best to identify markets, attract
their attention to my companys services, create interest in the services, and move
audiences to purchase. But I knew that the service had to fit the needs of the audience and
I found over and over that if it did not serve some purpose to the audience, they would
not
buy
the
message
or
the
service.
Schor argues that children cannot discriminate and are, thereby, scarfing down chips and
soda, driving their parents crazy about those hundred dollar sneakers. I will agree that
this happens in many homes, for any number of reasons. And I also agree with her final
conclusion that parents must take final responsibility by not only empowering their
children but by teaching them so that they do not become seduced by the consumer
culture
into
which
they
have
been
born.
Schor has written a very important book, one whose message should be translated into a
simpler tract for the many parents who worry about their childrens health, both physical
and mental, but who do not have the time to read her long and scholarly work. She is
right in warning us of the dangers posed by corporate Trojan Horses such as Channel
One, which has entered our childrens classrooms with an audience size second only to
the Super Bowl and of great interest to the marketers of the world. We must be vigilant;
we must be involved, we must teach our children the meaning of caveat emptor.

Review on future of Indian textile industry

As an increasingly large number of U.S. and Western apparel importers diversify their
supply sources and venture into India the urgency of this move was underscored by last
year's SARS outbreak in China with many Western importers feeling it unwise to "put all
their eggs in the China basket" - the Indian apparel industry is upbeat about challenging
the
world's
biggest
apparel
juggernaut
China.
In the backdrop of the impending elimination of quotas, in terms of the multi-fibre
agreement, in January 2005 when the World Trade Organization regulations take effect,
India finds itself suddenly catapulted into the position of an apparel force to be reckoned
with by other competitors, including China whose position as the world's apparel power
house,
however,
still
remains
unchallenged.
Nonetheless, India's apparel exports will not have an easy time in the global markets
where China is, without doubt, still the reigning champion and the biggest dominating
force.
Premal Udani, the vice chairman of India's Apparel Export Promotion Council (AEPC),
which promotes the country's apparel exports, was recently telling journalists that the
year 2004 will prove to be the most crucial year for India's apparel industry which, he
said, was bracing to meet the challenges that would become evident once the non-quota
regime takes over. Qualifying his statement, Udani said that if the year went off well, it
would
improve
the
outlook
for
India's
garment
exports.
Industry estimates seem to be placing India's export potential at a higher level which,
some critics say, was "unrealistically high". According to such estimates, India can reach
the target of US$25 billion by the year 2010 up from US$6 billion at present.
2003 was an eventful year for India's key apparel players, many of whom expanded
capacities to accommodate the steep rise in demand. Some of the apparel companies to
increase capacities included names such as Raymond, Zodiac, Madura, OrientCraft and
Shirt
Company.
Raymond is planning to establish a large garment production unit in the southern part of
India, which is expected to go into operation by the end of 2004. Zodiac, on the other
hand, acquired the suit-making operations of NiriyatSam of Delhi while OrientCraft has
set
up
a
large
production
unit
in
Delhi.
Experts say that this trend will further intensify in 2004 because small and medium-sized
companies are raising capital in the market for expansion purpose. Many manufacturers
of textiles are now toying with the idea of entering the apparel business as the market
further opens itself and provides opportunities in the area of apparel production. Textile
manufacturers in the south have sensed this potential and players such as Loyal Textile
Mills, Renuka Mills and Superb Spinning Mills, to name a few, have decided to enter the
apparel
sector.

But India's apparel sector is also passing through the process of consolidation, in the
course of which the bigger players buy out the smaller ones. Industry pundits contend
that consolidation will be a major trend in India's apparel industry, accelerated by a
propensity on the part of the large retail stores to buy from the large suppliers.
Consolidation has also brought down drastically the number of players in the apparel
sector. This trend is reflected in the declining number of companies registered with the
AEPC, which has dropped from 25,000 to merely 5,000 in a matter of one year.
The apparel industry of the country is, nevertheless, in an upbeat mood as business in
retail stores, whose numbers have been mushrooming, posted a growth of between 25%
and 30%, even though Christmas sales were quite disappointing for many retailers,
according
to
the
Indian
retailers'
association.
But India's apparel manufacturers are facing a challenge on another front: as India is
forced to open its market to foreign suppliers under the WTO requirement, Indian apparel
manufacturers will increasingly encounter fierce competition from foreign suppliers who
have long eyed the huge Indian market. The average Indian consumer's obsession to buy
foreign products in preference to Indian products, driven by the belief that the foreign
product is better, is also going to have a negative impact on the sales of Indian suppliers.
The Indian apparel industry is nervously watching the arrival of foreign established brand
names such as Tommy Hilfiger which has announced plans to launch its brand products
in India next year. But apparel companies have, generally, posted good growth during the
first half of 2003. Raymond had a 11.2% growth in sales, Arvind Mills posted a 4.5%
growth, Indian Rayon witnessed a 3.73% growth while Madura Garments, which is part
of the Indian Rayon, also finally made a crucial turnaround and moved towards
profitability after posting negative growth rates in the past.

WHICH ONE BEST DESCRIBE YOUR JOB

INTERPRETATION
Looking to the todays youth they are mostly manager with 30%
followed by professional 47%.
Less no of youth are business man

RATE YOUR SATISFACTION WITH RESPECT TO INDIAN

BRAND

INTERPRETATION
Looking to the Indian brand preference level among the youth is maximum
with most preferred and some what preferred with 47% and 52%
respectively.
The somewhat not preferred and least preferred has a percentage of 1% and
0% respectively.
This infer that Indian brand preference is dominant in the mind of youth

RATE YOUR SATISFACTION WITH RESPECT TO INDIAN

BRAND

INTERPRETATION
Looking to the foreign brand preference level among the youth is with most
preferred and some what preferred is 43% and 36% respectively.
The somewhat not preferred and least preferred has a percentage of 13% and
8% respectively.
This infer that still the most preferred and some what preferred is maximum
but still there is a presence somewhat not preferred and least preferred
criteria in mind of youth. That is the preference level in the mind of youth is
not in absolute term as compared to Indian brand.

WHICH TEXTILE BRAND DO YOU MOSTLY USE

INTERPRETATION
Looking to the brand they mostly use the DIG JAM is at maximum with
62% followed by others Indian and foreign brand.
This infer that Indian brand presence is maximum in the mind of youth as
most of them are using Indian brand from beginning.
Thus their preference level for Indian brand is maximum as they are already
using the Indian brand.

RATE YOUR SATISFACTION LEVEL WITH

PRESENT BRAND CHOICE

INTERPRETATION
Looking to their satisfaction level they mostly satisfied with 44% followed
by somewhat satisfied with 32%.
There is very little percentage of some what satisfied and unsatisfied with
5% and 2% respectively.
As in earlier graph most of the Indian youth are using Indian are using
Indian brand and looking to their satisfaction level it is maximum. This
clearly infer that youth are fully satisfied with their present brand choice still
there is a presence of many foreign brand.
This also infer that as their satisfaction level is high for future also there is
maximum preference for Indian brand and less brand switching to foreign
brand.

WHICH BRAND WERE YOU USING PRESENT

BRAND

INTERPRETATION
Looking the brand they are using earlier it is 73% Indian brand they were
earlier using.
This clearly states that Indian brand presence is dominant in the mind of
Indian youth and for it will be very difficult the foreign players to change
this preference.

WHICH FOREIGN BRAND DID YOU CONSIDER WHILE

PURCHASING

1%
1%
13%

BLACK BERRY

2%

6%

GUCCI

1%

J . HAMP

1%
1%

4%

J HAMP

1%

8%

JOHN MILLER
LOUIPHILIP
PETER ENGLAND
PETER ENGLAND,REID & TYLO
REID & TAYLOR

61%

REID & TAYLOR, VANHU

REID & TAYLOR.J.HAMP
VANHUSEN

INTERPRETATION
Looking to the evoked set while purchasing in foreign brand the Reid &
Taylor has the maximum consideration with 61% followed with other brand.
This infer that slowly foreign brands are making their place in the mind on
youths

WHICH INDIAN BRAND DID YOU CONSIDER WHILE

PURCHASING

BAL
DIGJAM, VIMAL
DIWAN SAHIB

3%
7%

9%

GRASIM,RAYMONDS

2% 3%
2%
1%

JCT, SIYARAM

7%

1%

2%
3%

1%

MAFATLAL
MONTRLO
RAYMOND

4%

RAYMOND,GRASIM
RAYMOND,VIMAL

25%
21%

RAYMONDS
S KUMARS
S KUMARS&RAYMONDS

3%

5%

SIYARAM
VIMAL
VIMAL,RAYMONDA
VIMAL,RAYMONDS

INTERPRETATION
In Indian brand Raymonds has the maximum consideration level while
purchasing. followed by other Indian brand.

WHICH ONE BEST DESCRIBE YOU AS A PERSON

INTERPRETATION
Looking to the personality issue of the Indian youth they maximum
extrovert followed by judging personality.
This infer that still they are extrovert but they still have a more preference
towards the Indian brand.

WHERE DO YOU SPEND YOUR VACATION

INTERPRETATION
Most of the Indian youth spend their vacations in India with 92%.
This infer that they have more love for their country and they want to spend
their money in their own country only.

WHICH BRAND DO YOU EXPECTING TO BUY IN

FUTURE

ALLEN SOLLY
11%

4% 3%

4%
1%
6%
6%
2%

ARROW
DIGJAM
DIWN SAHIB
J . HAMP
JCT
LEVIS
NO IDEA

41%
17%
4%
1%

PARX
PETER ENGLAND
RAYMONDS
REID & TAYLOR

INTERPRETATION
For future Raymond has 41% followed with other Indian and foreign brand
This infer that in future they are looking for Indian brand only. Thus their
preference level for Indian brand is maximum

MONTHLY HOUSE HOLD INCOME

INTERPRETATION
Looking to the income level of the youth maximum of them Rest 24,000 or
more income followed with Rest 16,000-20,000.
This infer that income level is not the hindrance in their brand preference.

RATE THE COUNTRY OF ORIGIN EFFECT ON

YOUR BRAND CHOICE

INTERPRETATION
Looking to the country of origin effect on the scale of one to ten maximum
of the youth have country of origin effect with 25% at the scale of 10 at 9
followed by 21% at 6 scale
This clearly states that country of origin plays big role in the mind of youth
while preferring for brand choice. And in earlier graph maximum were using
Indian brand this shows that Indian brand are perceived as less risky in
compared to foreign brand as risk is one of the factor in country of origin
effect.

WHAT ASPECTS DID YOU LOOKED FOR WHEN

YOU PURCHASED INDIAN BRAND

12%

8%
MATCHES WITH
PERSONALITY
21%

HIGH QUALITY
GOOD VALUE/PRICE
OFFERING

35%

BRAND FAMILARITY
CONSISTENCE
24%

INTERPRETATION
Looking to the parameter looked for while purchasing brand familiarity and
good value/price offering are the main criteria with 35% and 24%
respectively.
This infers that brand familiarity is one of most power attribute in the mind
of consumer.
This also infer that Indian brand familiarity in the of youth is maximum

WHAT ASPECTS DID YOU LOOKED FOR WHEN

YOU PURCHASED FOREIGN BRAND

19%

20%

MATCHES WITH
PERSONALITY
HIGH QUALITY
GOOD VALUE/PRICE
OFFERING

18%

24%

BRAND FAMILARITY
CONSISTENCE

19%

INTERPRETATION
This infer that while purchasing the foreign brand youth looks for mix of
attributes with giving them nearly equal weight age.
This also infer that brand familiarity in foreign brand is less.

CONCLUSION
The preference for Indian brand is maximum in mind of the youths.
Looking to attributes which motivates to switch brand is brand familiarity.
The Satisfaction level of youth towards Indian brand is maximum as
compared to foreign brand.
Still Indian brand is leader in the textile market with reference to youth.
Looking to future youth are more intended to buy Indian brands.
Country of origin is also playing a major role in the mind of youth while
purchasing.
Indian youth are mostly having extrovert and judging kind of personality

Executive summary
PREFERENCE OF YOUTH TOWARDS FOREIGN BRAND AND
INDIAN BRAND AND INDIAN BRAND
What is brand all about? It is the name , term, sing , symbol, or design or a combination
of all these which is intended to identify the goods or a services of one seller or a group
of seller and to differentiate them from those of the competitors. Brand is very crucial for
any industry or company. For, the consumers are reluctant to try out unknown brand. And
brand loyalty is fickle. Companies know this tenet which is why they work relentlessly
towards brand building.
The emerging post WTO scenario- we are in for greater brand clutter with thousand of
brands entering in the market and the battle for occupying mind space or preference level
is most likely to be seen on the television. Media inflation is on the rise and brands are
going to be built through different promotion channel for making their brand preferred.
This dissertation will look at the preference level of youth towards foreign and Indian
brand and foreign brand. Indian brand includes all the domestic players and foreign brand
includes all multinational players. Brand is successful when it occupies a favorable
position in the target customer mind and is able to recall that particular brand before any
competing brand and make that brand as preferred brand.
Through this dissertation , it will be clear about the youth thinking about the foreign and
India brand. It includes the factors that motivates the consumers to buy the particular
brand and make it as a preferred brand.
It also covers the changing buying habit of youth toward the foreign and Indian brand and
it measures the key determinants, which motivates youth to purchase India or foreign
brand.
In my dissertation I am selecting the textile industry and doing the primary research
through questionnaire and telephonic interview. As in Over the years, the industry has
served to bring money into the country to fuel the development of other industries and in
this sense, the country will continue to benefit significantly by virtue of producing and
manufacturing clothing and textiles.
The main objective of my dissertation is to understand the preference of youth on Indian
and foreign brand by taking into consideration various attributes. As foreign brand are
entering the Indian market thus affecting the preference level of consumers.

REFERENCES
http://www.cottoninc.com/textileconsumer
www.trade-india.com
http://www.apparelresources.com
http://www.google.co.in

MARKETING MANAGEMENT BY PHILIP KOTLER

BRAND MANAGEMENT
WWW.SPSS.NET
WWW.YAHOO.COM
WWW.ABD.AMITY.EDU