CHAPTER 1 OBJECTIVE OF STUDY

1. To study about the competitors of Wills Lifestyle brand in the market, and what are their various strategies such as sales strategy, product design strategy, marketing strategy, work force strategy. 2. To find out some key strategies so that the brand can benchmark and relate so as to cope up with the competitors. 3. To formulate the ways for paving a path for forming Wills Lifestyle as the number one in the segment especially in C.P Market.

1.1 INTRODUCTION

History of textile industry in India

The Multi-Fiber Agreement (MFA), that had governed the extent of textile trade between nations since 1962, expired on 1 January, 2005. It is expected that, post-MFA, most tariff distortions would gradually disappear and firms with robust capabilities will gain in the global trade of textile and apparel. The prize is the $360 bn market which is expected to grow to about $600 bn by the year 2010 barely five years after the expiry of MFA. An important question facing Indian firms is whether their capabilities and their diverse supply chain are aligned to benefit from the opening up of global textile market. The history of textiles in India dates back to the use of mordant dyes and printing blocks around 3000 BC. The diversity of fibres found in India, intricate weaving on its state-of-art manual looms and its organic dyes attracted buyers from all over the world for centuries. The British colonization of India and its industrial policies destroyed the innovative eco-system and left it technologically impoverished. Independent India saw the building up of textile capabilities, diversification of its product base, and its emergence, once again, as an important global player. Today, the textile and apparel sector employs 35.0 mn people (and is the 2nd largest employer), generates 1/5th of the total export earnings and contributes 4 per cent to the GDP thereby making it the largest industrial sector of the country. This textile economy is worth US $37 bn and its share of the global market is about 5.90 per cent. The sector aspires to grow its revenue to US $85bn, its export value to US $50bn and employment to 12 million by the year 2010 (Texmin 2005).

1.2 COMPETITIVENESS OF INDIAN TEXTILE & APPAREL INDUSTRY India is one of the few countries that own the complete supply chain in close proximity from diverse fibres to a large market. It is capable of delivering packaged products to customers comprising a variety of fibres, diverse count sizes, cloths of different weight and weave, and a panoply of finishes. This permits the supply chain to mix and match variety in different segments to deliver new products and applications. This advantage is further accentuated by cost based advantages and diverse traditions in textiles. Indian strength in spinning is now well established on unit costs on ring yarn, open-ended (OE) yarn as well as textured yarn; Indian firms are ahead of their global competitors including China. Same is true on some woven OE yarn fabric categories (especially grey fabrics) but is not true for other woven segments. India contributes about 23 per cent of world spindles and 6 per cent of world rotors (second highest in the world after China). Fifty five per cent of total investment in technology in the last decade has been made in the spinning sector. Its share in global shuttleless loom, however, is only about 2.8 per cent of world looms (and is ranked 9th in the world). The competitiveness in the weaving sector is adversely affected by low penetration of shuttleless looms (i.e., 1.69 % of Indian looms), the unorganized nature of the sector (i.e., fragmented, small and, often, un-registered units, low investment in technology & practices especially in the powerloom, processing, handloom and knits) and higher power tariffs. There is, however, a recent trend of investment in setting up hi-tech, stand-alone mid-size weaving companies focusing on export markets. India also has the highest deployment of handlooms in the world (handlooms are low on productivity but produce specialized fabric). While production and export of man-made fibre (and filament yarn) has increased over the years, Indian industry still lags significantly behind US, China, Europe, Taiwan etc. (Texmin, 2005.) Indian textile industry has suffered in the past from low productivity at both ends of the supply chain low farm yields affecting cotton production and inefficiency in garment sector due to restriction of size and reservation. Add to this, contamination of cotton with consequent increase in cost (as it affects quality and requires installation of additional process

to clean and open cotton fibres before carding operations), poor ginning (most equipment dates back to 1940s), high average defect rates in production process (which also leads to increase in effective labour and power costs), hank yarn requirement, etc. and its competitiveness gets compromised severely. Similarly, processing technology is primarily manual and small batch oriented with visual color matching and sun drying. This leads to inconsistency in conformance quality. Lead times across the sector continue to be affected by variability in the supply chain defect rates average over 5%, average % of orders on time is about 80%, variance in order size across firms is high (e.g., the coefficient of variability of average order size for spinning firms is about 2.6), and on an average, 16 days of sales as work-in-process inventory (the highest for garment firms) and an average of 30 days of sales in raw material inventory (the highest for spinning firms) (Chandra 2004). Some of the hurdles (eg., reservation in the garment sectors) including tariff distortions between the organized and unorganized sectors have now been systematically removed by policy initiatives of Government of India and have opened avenues for firms to compete on the basis of their capabilities. Trade data of post-MFA performance reveals some interesting trends Indian firms registered a 27 per cent growth in exports to US (against Chinas 52 per cent) during the Jan-April 2005 time period. Most of this growth has been in textiles while apparels show marginal gains. Apparels & accessories constituted 78% of global exports to USA (FICCI 2005). (India is still a relatively small yet growing player in the global apparel market.) It is expected that India will soon replace Mexico as the second largest apparel supplier to the US. 1.2.1 Background The Indian textile and apparel industry is one of the oldest and most significant industries in the country and one of the largest in the world. Apart from China, no other country can match the size, spread, depth, and competitiveness of the Indian textile and apparel industry. Moreover, the global elimination of quotas at the end of 2004 has greatly enhanced the opportunities for India to showcase its inherent strength and become a top sourcing and investment destination. Today the industry contributes around 14% to industrial production in the country, 4% to the GDP, is estimated to directly employ approximately 35 Mn people apart from the indirect

employment in allied sectors, thus making it the second largest employer after agriculture. It accounts for about 15% to the countrys exports, and is, in sum, an important economic engine for the nation. In part, the very diversity, scale and spread of the industry which has been its strength, has also been its weakness. However, in the past 10 years, the industrys actions, government policies as well as market events have begun to converge, providing several growth opportunities for the sector domestically as well as in the global market. Figure 1.1( source datamonitor)

1.3 Challenges facing Indian Textile and Apparel Industry Textile supply chains compete on low cost, high quality, accurate delivery and flexibility in variety and volume. Several challenges stand in the way of Indian firms before they can own a larger share of the global market: Scale: Except for spinning, all other sectors suffer from the problem of scale. Indian firms are typically smaller than their Chinese or Thai counterparts and there are fewer large firms in India. Some of the Chinese large firms have 1.5 times higher spinning capacity, 1.25 times denim (and 2 times gray fabric) capacity and about 6 times more revenue in garment than

their counterparts in India thereby affecting the cost structure as well as ability to attract customers with large orders. The central tendency is to add capacity once the order has been won rather than ahead of the demand. Customers go where they see both capacity and capabilities. Large capacity typically goes with standardized products. These firms need to develop the managerial capabilities required to manage large work force and design an appropriate supply chain. For the size of the Indian economy, it will have to have bigger firms producing standard products in large volumes as well as small and mid size firms producing large variety in small to mid size batches (the tension between the organized and un-organized sectors will have to be addressed first, though). Then there is the need for emergence of specialist firms that will consolidate orders, book capacities, manage warehouses and logistics of order delivery.

Skills : Three issues must be mentioned here : (a) there is a paucity of technical manpower there exist barely 30 programmes at graduate engineering (including diploma) levels graduating about 1000 students this is insufficient for bringing about technological change in the sector; (b) Indian firms invest very little in training its existing workforce and the skills are limited to existing proceses (Chandra 1998); (c) there is an acute shortage of trained operators and supervisors in India. It is expected that Indian firms will have to invest close to Rs. 1400 bn by year 2010 to increase its global trade to $ 50 bn. This kind of investment would require, by our calculations, about 70,000 supervisors and 1.05mn operators in the textile sector and at least 112,000 supervisors and 2.8mn operators in the apparel sector (assuming a 80:20 ratio of investment between textiles and apparel). The real bottleneck to growth is going to be availability of skilled manpower.

Cycle Time : Cycle time is the key to competitiveness of a firm as it affects both price and delivery schedule. Cycle time reduction is strongly correlated with high first pass yield, high throughput times, low variability in process times, low WIP and consequently cost. Indian firms have to dramatically reduce cycle times across the entire supply chain which are currently quite high (Chandra, 2004). Customs must provide a turnaround time of day

for an order before Indian firms can they expect to become part of larger global supply chains. Indian firms need a strong deployment of industrial engineering with particular emphasis on cellular manufacturing, JIT and statistical process control to reduce lead times on shop floors. Penetration of IT for improving productivity is particularly low in this sector. Innovation & Technology: A review of the products imported from China to USA during January April 2005 reveals that the top three products in terms of percentage increase in imports were Tire Cords & Tire Fabrics (843.4% increase over the previous year), Nonwoven fabrics (284.1% increase) and Textile/Fabric Finishing Mill Products (197.2% increase) (FICCI, 2005). None of these items, however, figure in the list of imports from India that have gained in these early days of post-MFA. Entry into newer application domains of industrial textiles, nano-textiles, home furnishings etc. becomes imperative if we are to grow beyond 56% of global market share as these are areas that are projected to grow significantly. Synthetic textiles comprise about 50 per cent of the global textile market. Indian synthetic industry, however, is not well entrenched. The Technology Up gradation Fund of the government is being used to stimulate investment in new processes. However, there is little evidence that this deployment in technology has accompanied changes in the managerial regimes a necessary condition for increasing productivity and order winning ability. Domestic Market : The Indian domestic market for all textile and apparel products is estimated at $26 bn and growing. While the market is very competitive at the low end of the value chain, the mid or higher ranges are over priced (i.e., dollar pricing). Firms are not taking advantage of the large domestic market in generating economies of scale to deliver cost advantage in export markets. The Free Trade Agreement with Singapore and Thailand will allow overseas producers to meet the aspirations of domestic buyers with quality and prices that are competitive in the domestic market. Ignoring the domestic market, in the long run, will peril the export markets for domestic producers. In addition, high retail property prices and high channel margins in India will restrict growth of this market. Firms need to make their supply chain leaner in order to overcome these disadvantages. Institutional Support : Textile policy has come long ways in reducing impediments for the industry sometimes driven by global competition and, at other times, by international trade

regulations. However, few areas of policy weakness stand out labour reforms (which is hindering movement towards higher scale of operations by Indian firms), power availability and its quality, customs clearance and shipment operations from ports, credit for large scale investments that are needed for up gradation of technology, and development of manpower for the industry. These are problems facing several sectors of industry in India and not by this sector alone. In conclusion, competitive strategies are developed by sector level firms and its their individual and collective initiatives that secure higher market share in global trade. While one has to be ever vigilant of non-tariff barriers in the post MFA world, the new market will be won on the basis of capabilities across the supply chain. Policy will need to facilitate this building of capabilities at the firm level and the flexible strategies that firms will need to devise periodically.

Chapter 2
8

The Readymade Garment Sector.

According to a study conducted by the Confederation of Indian Industry (CII) and McKinsey & Company, India is expected to witness a seven-fold increase in its exports over the next decade. One of the sectors to be benefited is the apparel sector. The garment industry in India is completely self-dependent; right from manufacturing of fibre to finished garments, everything is done in the country itself. Factors such as buyers are in town and a heavy booking season affect garment exporting businesses in India. Buyers in town hints at the demand of the garment segment among people and a heavy booking season implies the peak time for shopping apparels and garments. With the early signs of recovery from the recessionary pressures, international fashion chains are queuing up to India. Indian garment manufacturers and exporters are adept at guessing whats in and whats out, when it comes to garments. New sources of raw materials, designs and ideas go into the manufacture of readymade garments that help in increasing sales and maintaining a sense of uniqueness. India has far to go India has already made a name for itself as far as manufacturing of readymade garments is concerned. There are some factors that go into the Indian garment industrys favour such as cost-effective procurement of raw materials, inexpensive skilled labour and quick adjustment to the kind of apparels that have potential to sell. Indian readymade garment industries rely on the aforementioned factors for growth prospects in future.

However, the garment industry in India faces stiff competition from countries such as Bangladesh, China and Vietnam. There is a pressure on the Indian garment industries to produce finished garments at lower costs to survive the cut-throat competition. Today, around 45% of the total textile exports in India account for ready-made garments. There are various international brands which source readymade garments from the Indian markets. The future of the garment industry in India does not look bleak; on the contrary it is quite promising. The Indian garment industry alone provides employment to thousands of people, a high percentage among who are young women. Therefore, the significance of the Indian garment industry cannot be ruled out when it comes to employment generation and foreign exchange generation. The growth in the garment industry will boost the growth of Indian economy. At present, India is being considered as the next pioneer country in the readymade garment export business. It is noticed that foreign buyers are keen on dealing with Indian garment exporters. In the face of such demand, Indian garment manufacturers and exporters constantly have to maintain high quality in finished products and continuously provide variations in style and designs to attract the attention of prospective buyers.

2.1 Indian Textile and Apparel Industry :

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Current Size The present size of Indian textile and apparel market is US$ 62 Bn of which US$ 22 Bn is exports while the rest US$ 40 Bn is the domestic market.

THE SEGMENTATION IS AS BELOW Figure 2.1(Journal Of Economic)

From this we can see that it has been segmented in primarily three segments 1. Mens wear which is comprising of a major share ie. 42.2% 2. Womens wear which is slightly less 36.33% 3. And finally childrens wear which is 21.5% So by this we can see that the positioning of the brands is basically done by targeting the major chunks like mens wear and womens wear.

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Figure 2.2 INDIAN APPAREL INDUSTRY SEGMENTATION II: % SHARE

(Journal Of Economic)

GLOBAL APPAREL INDUSTRY

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TABLE 2.1 GLOBAL APPAREL INDUSTRY YEAR 2006 2007 2008 2009 2010 $ BILLION 2205.5 2347.8 2446.6 2465.8 2597.8 EURO BILLION 1660.9 1768.1 1841 1857 1956.4 6.5% 4.1% 0.9% 5.4% % GROWTH

Figure 2.3 source datamonitor

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CHAPTER 3

COMPANY PROFILE

ITC Lifestyle Retailing Business Division made foray into the Rs. 200 billion ready to wear apparel industry with the launch of its Wills Sport range of internationally-styled premium relaxed wear for men & women in the year 2000. The companys first exclusive store Wills Lifestyle was opened in South Extension in Delhi in July 2000. The WLS chain of exclusive stores later expanded its range to include Wills Classic formal wear in 2002 and Wills Clublife evening wear in 2003. Later in 2006, WLS became the title partner of the premium fashion event India Fashion Week. This association has helped the brand grow stronger and also make the product portfolio richer. The lifestyle retailing business division also caters to the midsegment market through its brands John Players and Miss Players. Wills Lifestyle, the fashion destination, offers a tempting choice of Designer Wear, Relaxed Wear, Evening Wear, Work Wear, Accessories and an exclusive range of fine fragrances and bath & body care products for men and women. Wills Lifestyle offers a tempting choice of Wills Classic Wills Sport Wills Clublife Wills Signature Essenza Di Wills Fiama Di Wills - work wear, - relaxed wear, - evening wear & fashion accessories, - designer wear , created by the leading fashion designers of the country. an exclusive range of fine fragrances and bath & body care products a range of premium shampoos and shower gels.

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To capture the higher grounds the company also associated with the countrys most exclusive & prestigious fashion event WILLS INDIA FASHION WEEK . Apart from the wills lifestyle in the premium segment , ITC has also forayed its presence in the youth or the popular segment with JOHN PLAYERS & MISS PLAYERS. John Players offers a complete and vibrant wardrobe targeting the Indian male youth , which is now more confident & aspires for more with the enhanced fashion awareness . Brand ambassador for john players is Hrithik roshan The launch of Miss Players has added to ITCs youthful portfolio. The range which spans trendy ,funky ,smart dresses along with a whole range of cool fashion accessories designed in appropriation with the young Indian women mindset & the brand ambassador of this brand is Amrita rao.

CHAPTER 4

15

LITERATURE REVIEW

4.1 THE APPAREL FACTOR. AUTHORS-Hariharan, Malini,2007 Discusses the factors that need to be considered by fiber producers to be flexible and swift in their response to demand. Cost of the global apparel market; Exports of readymade garments from China and Hong Kong; Participation of fiber companies in forming and operating real or virtual integrated supply chains. 4.2 CHINA'S TEXTILE AND APPAREL INDUSTRY AND THE GLOBAL MARKET: FIVE COMPETITIVE FORCES. AUTHORS-McCann, Jack,2005 The article reports on the condition of the apparel and textile industry in China in relation to the global market. It notes that the removal of U.S. and European Union (EU) trade quotas have not realized for the Chinese apparel and textile industry even though China has gained market share in EU and the U.S. It mentions that China's share in the global market has increased from 38.8 percent in 2001 to 47.1 percent in 2005. It analyzes the Chinese textile and apparel industry in view of the global competitive framework. 4.3 THE US AND JAPANESE APPAREL DEMAND CONDITIONS: IMPLICATIONS FOR INDUSTRY COMPETITIVENESS. AUTHORS-JUYOUNG LEE ELENA E. KARPOVA,march 2011 Purpose - The purpose of this paper is to investigate aggregated apparel demand in the USA and Japan and to assess the positions of apparel products manufactured in the USA and Japan in comparison to imported apparel. Design/methodology/approach - Based on Porter's industry competitiveness theory as a theoretical framework, the two-step demand

16

analysis, time-series market analysis and elasticity of demand using "Almost ideal demand system" was conducted in order to reveal the overall market conditions of the USA and Japan and the market positions of domestically manufactured and imported apparel products in both countries. Findings - Regardless of the country of origin, US consumers were price conscious in purchasing apparel products because they decreased purchase for not only domestically produced products but also imported products when prices increased. However, Japanese consumers' price concept toward apparel products was dual. They increased their purchase of domestically made products if the price was higher, and decreased their purchase of imported products. Originality/value - This paper provides a framework for the apparel industry competitiveness assessment with regard to the demand-side analysis of Porter's competitiveness theory. Moreover, there is no research in the current literature that assessed the US apparel demand with regard to industry competitiveness and a cross national view, especially compared with the Japanese apparel industry. 4.4 NEW CHALLENGES FOR THE SOUTH AFRICAN TEXTILE AND APPAREL INDUSTRIES IN THE GLOBAL ECONOMY. AUTHORS-TRUETF, LILA J., 2005 The full integration of the textile industry into GATT, which with some exceptions occurred on January 1, 2005, is likely to greatly impact the global textile and apparel industries. In particular, one prediction is that the South African industries are likely to be "decimated." The actual effect on these industries will depend at least partly on the ability to take advantage of economies of scale and to be internationally competitive. In an endeavor to gain more insights into the future of these industries in South Africa, this study uses a cost function to investigate the presence of scale economies and the nature of input interrelationships. The findings include statistically significant economies of scale present in both industries and cross price elasticity estimates indicating that most inputs are substitutes for one another. The first result offers an opportunity to reduce unit costs if these industries can grow their markets. However, lower prices on imported intermediate goods will likely decrease the demand for domestic inputs. The cross price elasticity of demand are relatively low in some cases, consistent with domestic input market rigidities and international trade restrictions. 4.5 APPAREL RETAIL INDUSTRY PROFILE: INDIA. May2010

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Presents a profile of the Apparel Retail industry in India. Background on Datamonitor, a business information company specializing in industry analysis; Executive summary of the industry; Market overview; Market value; Market segmentation; Competitive landscape; Leading companies in the industry; Market forecasts; Demographics; Further reading. 4.6 THE GLOBAL APPAREL VALUE CHAIN: What Prospects for Upgrading by Developing Countries Author- Gary Gereffi 2007 The paper uses the global value chain framework to explain the transformations in production, trade and corporate strategies that altered the apparel industry over the past decades and changed the conditions for innovation and learning in the industry. The apparel industry is identified as a buyer-driven value chain that contains three types of lead firms: retailers, marketers and branded manufacturers. With the globalization of apparel production, competition between the leading firms in the industry has intensified as each type of lead firm has developed extensive global sourcing capabilities. While de-verticalizing out of production, these firms are fortifying their activities in the high value-added design and marketing segments of the apparel chain, leading to a blurring of the boundaries between them and a realignment of interests within the chain. Innovation in the global apparel value chain is primarily associated with the shift from assembly to full-package production. Full-package production changes fundamentally the relationship between buyer and supplier giving more autonomy to the supplying firm and creating more possibilities for Innovation and learning. The paper distinguishes between three new models of competition in the North American market namely the East Asian, Mexican and Caribbean Basin model. Each model presents different perspectives and challenges for industrial innovation and learning. 4.7 IMPACT OF DEMOGRAPHIC FACTORS ON CONSUMER RESPONSE TO SALES PROMOTIONS: AN EMPIRICAL STUDY- Patel Vipul, 2010. Sales promotion has grown enormously in recent years in India. Vast amount of money is being spent on sales promotion. It consists of a wide variety of short term tactical promotional tools aimed at generating a desired response from consumers. In this study, attempt is made to study the impact of demographic factors on consumer responses to sales 18

promotions. Five demographic factors were considered to have impact on consumer responses to sales prorhotion. These demographic factors were gender, age, income, education and household size. 518 active mall shoppers are surveyed with the help of structured questionnaire in shopping malls located in the four cities of Gujarat, T-test and ANOVA were applied to test the null hypothesis. This study may provide refined insights in and understanding of the influence of sales promotions on consumer purchase behavior. The results of this study may help the marketing managers of retail stores to identify their target consumers and in turn, to develop appropriate sales promotional programs to persuade those consumers to purchase readymade garment. 4.8 x

CHAPTER 5

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BLOCK-WISE LOCATION OF BRANDS IN THE CONNAUGHT PLACE MARKET : The following stores were visited for conducting the research work in the Connaught place market which a very prime location and one of the most visited place by the general customers for shopping. This market was chosen since it is a very appropriate market to conduct the research as all the brands which are being talked about is having a retail outlet here. Block wise locations are given below.

Block C Van Heusen (Men) - Lee Block D Louis Philippe Block E Wills Lifestyle Van Heusen (Women) Benetton Allen Solly Color Plus A new Benetton store is scheduled to open at E-3 in the Month of May. Along with these there are brands like Spykar & Puma in the same block which are coming up very well. Block F Levis Store

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 LP Youth Apart from this, Blocks A and B witness the highest footfall in CP due to the presence of some famous eating joints like Wengers, Keventers and McDonalds. Actual Competitors: Van Heusen, Louis Philippe, Allen Solly, Levis, United Colors of Benetton, Color Plus. Also the following Potential Competitors namely Puma, Spykar & GAS were identified during the course of the survey as a large number of people were found to be interested in these brands and were also seen shopping from them (number of carry bags spotted with shoppers).

5.1 DESCRIPTION ABOUT BRANDS 5.1.1BENETTON

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SALES STRATEGY 1.Visibility from outside Sober lighting with a creamish-yellow effect. The whole store is visiblefrom outside at one go which works as a marketing technique in itself for the merchandise. 2. Displays Huge and catchy displays are especially visible at the first floor. The displays are full of colors & show happy expressions on the faces of the models. 3. Size relatively small store with approximately 2100 sq. ft. of selling space.

MARKETING STRATEGY 1. Promos Assured voucher of Rs. 500 on purchases worth Rs. 3999. Started on 29th of April. 2. Benetton has come up with its new store in inner circle, Block E. PRICING STRATEGY 1. Casuals Rs. 299 (t-shirt) to Rs. 4999 (jacket) 2. Formals Rs. 599 (shirt) to Rs. 6999 (formal suit) 3. Accessories Rs. 299 (flip-flops) to Rs. 3999 (handbags) OBSERVATION AT STORE

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LAYOUT 1. Mannequins A lot of display has been done through the use of mannequins. Six female mannequins & seven male mannequins have been used. 2. Fixtures Low height rectangular tables are used to display tops and t-shirts, again with the purpose of easier accessibility to merchandise. 3. Small and light colored wooden panels are used to stack merchandise. These wooden panels are alternated with bars for hangs.

5.1.2 LOUIS PHILIPPE

1. Louis Philippe is a premier brand of Madura Fashion & Lifestyle. 2. Madura Fashion & Lifestyle, is a part of Aditya Birla Nuvo Ltd, and is one of Indias fastest mushrooming branded apparel companies and a elite lifestyle player in the retail sector. After consolidating its market leadership with its own brands, it introduced premier international labels, so because of it it let the Indian consumers to buy the most prestigious global fashion wear and within the country.

SALES STRATEGIES

1. The companys brand includes product lines that has range from affordable and massmarket to elite, high-end designs and outfits; that is targetted towards every age group, from men and women to children and youth,. 23

2.

Madura Fashion & Lifestyle is known by its brands Louis Philippe, Van Heusen, Allen Solly, Peter England and People that personalizes style, attitude, luxury and comfort.

3. Madura Fashion & Lifestyle caters its vast customers through an wide and extensive network comprising 700 exclusive franchise stores, many department chains and over 2,000 premium multi-brand trade outlets, both within and outside India. 4. The company's lifestyle store, The Collective, offers a distinct blend of global fashions, international trends and innovative customer services, to customers in Bangalore, Mumbai and Delhi.

5. A distribution agreement with international brand Esprit has ensured that this highly growth-oriented company bolsters its international presence.

PRODUCT DESIGN STRTEGIES

1. Louis Philippe has a presence in all the segments of the clothing market. 2. Its shirts, made from the most premium cotton fabrics sourced from the best mills in India and abroad in fine counts of 80s going up to 120s, offer the finest dress shirts in the country .The designs and colors are inspired by the latest trends in France and Italy .To ensure that the fabric retains its original color and luster, Louis Philippe specifies the use of the finest cottons in the world for its fabrics.

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3. Louis Philippe created the super premium segment for the mens ready made garment category in India. 4. For fabrics used in its shirts, Louis Philippe specifies the use of only Suvin, Egyptian or Pima cotton. 5. The Louis Philippe Permapress range of shirts is the first 100% wrinkle-free shirt made from Japanese fabrics which have a soft handle and retain the crisp, freshly ironed look throughout the day 6. Permawhite the best white formal shirt introduced taped seams to garments in India. Taped seams ensure that the shirt is absolutely pucker free.

7. The brand has the distinction of innovating the first ever left handers shirt in India perhaps ,in the world 8. Louis Philippe became the first brand to offer exclusive made-to-measure suits to consumers

Marketing strategies 1. The premium readymade brands Louis Philippe and Van Heusen (under Madura Fashion and Lifestyle of Aditya Birla Nuvo Ltd) is targeting a sales turnover of Rs 1,700 crore in the current year. 2. Both these brands are also planning a major foray into tier 2 and tier 3 towns aiming to achieve a growth rate of 30 per cent in the current year

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3.

The brands are also looking at large formats stores of 4,500 sq ft. As many as 40 stores will be opened in the country in the current year, and of this, 20-25 will be large format, Mr Jacob John, Brand Head, Louis Philippe and Mr Ajay Ramachandran, Brand Head, Van Heusen told reporters.

4. They pointed out that the market for branded apparels in the organised sector in the country is estimated between Rs 13,000-Rs 14,000 crore, of which both the brands have 7-8 per cent market share. Mr John and Mr Ramachandran were in Kochi for the opening of their exclusive large format stores in Kottayam.

5. According to Mr John, Louis Philippe, which used to cater to the age group above 30, now has a wide range of choices for the youth as well. This has helped in the aggressive growth of the brand, which is present in 100 exclusive stores in the country besides in multi-brand outlets. 6. He said the growth is coming from smaller towns like Jaipur, Thrissur, Patna, Dehradun, among others. In Kerala, it has opened a store in Kottayam and two more are in the pipeline in Kollam and Thiruvananthapuram. OBSERVATION AT STORE 1. Very similar to other communication in the category 2. A lot of mood advertising 3. Showcase the range 4. The communication is aspirational urban office- goer.

5.1.3 VAN HEUSEN

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The worlds No. 1 shirt brand, which was brought to India by Madura Fashion & Lifestyle in 1990, has diversified from catering only to men to a wider portfolio with offerings for women and youth.

SALES STRATEGY

1. Van Heusen, a premium lifestyle brand, is expecting to end the year with net sales of nearly Rs 500 crore as it has outpaced the apparel industrys 15 per cent growth rate with a robust 60 per cent rise. 2. According to Ajay Ramachandran, brand head, Van Heusen (VH), the high revenues were a result of its product strategy as consumer sentiment improved, adequate merchandise and logistics arrangements and introductions like womens offerings and youth apparel (V Dot). The newly launched Van Heusen Sport casual wear has seen great response in the last 15 days. 3. As a sub-brand, it can rake in Rs 80 crore quite fast. V Dot has grown by around 75 per cent this year. Our captive business, which includes exclusive VH stores and Planet Fashion multi-brand stores, has seen doubling of sales if you include department store sales. The womens apparel line has also started to show significant traction in the past 18 months, said Ramachandran, who oversees the brand in India, SAARC and West Asia.

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PRODUCT STRATEGIES

they had basically started as a formal shirts and trouser brand but after that they diversified into suits and then launched a full range of youth and club wear under the brand name V. in march, this year. As Van Huesen is for older customers, V. is for younger customers aged 24 or so and products vary from club shirt, T-shirt to jeans, trousers and suits. After that, we launched Van Heusens womens wear in 2007 with a whole range of products like shirts, T-shirts, trousers suits and accessories like belts, bags and shoes. Currently, we have everything for men, women and youth in the apparel category.

MARKETING STRATEGIES

The company has plans to set up 30-40 additional stores in the next 10-12 months, to add to its existing 120 stores under the Van Heusen brand. The focus is on deeper penetration to cater to the growing demand. Van Heusen uses three store models -Coco (company owned company operated), Cofo (company owned franchisee operated) and Fofo (franchisee owned franchisee operated). The first model is considered when the risk is big. But over the next few months, we will adopt the other two models. In areas like Patna, we have one store, which has per square foot sales far higher than those in Mumbai and Delhi. We want to reach a fair penetration in locations where we are not well represented, said Ramachandran.

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OBSERVATION AT STORE 1. Visibility from outside a very bright looking store. Use of prominent bright yellow lights with clean white interiors. 2. Size comparatively huge store with an area of approximately 7000 sq. ft. It has a high ceiling with mannequins displayed at a high level. 3. Advert on window announcing the New Season Launch. 4. Mannequins 4 for the main window display along with 3 mannequins in the middle of the store which is a very unique mannequin display as compared to the other brands. 5. Promos APRIL: Exciting offer on womens bags & shoes. Buy any item and get accessories worth 50% of the value free. 6. MAY: We Win, You Celebrate. Buy merchandise worth Rs. 3000 & get accessories worth Rs. 1500 free. 7. New categories V (V-Dot) evening wear & party wear category from Van Heusen. Consists of bright colored, flowery & patterned shirts for men. Also more new introductions in casual wear T- Shirts showing an inclination to attend to the demand for casual wear in market.

5.1.4 ALLEN SOLLY

Allen Solly is probably the only brand that has truly redefined modern Indians wardrobe. Launched in 1993, Allen Solly created ripples in the Indian market by releasing the rules in corporate dress code. It trashed whites and greys thereby making the corporate world a colourful and vibrant place.

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SALES STRATEGIES

1. Allen Solly entered the market with the blockbuster concept of Friday Dressing. The idea was not new. Globally the there was a marked trend towards relaxed workwear and Allen Solly pioneered that concept in the Indian market. 2. Allen Solly launched office wears in colored shirts and Khaki trousers which became an instant hit. For the first time, Indian consumers were exposed to the idea of relaxed formals. Indian consumers took the bait and rushed to color coordinate their wardrobe with enthusiasm.

3. Allen Solly further experimented with unconventional shades like beige and tan. 4. The brand further reinforced its cult status with the launch of wrinkle free cottons and checked formal shirts. The young restless generation lapped up the unconventional formals and used it as an expression of their personal freedom.

5. WORKFORCE STRATEGY 6. In 2009, the brand went for a repositioning exercise. Allen Solly found that there is a shift in the demographics of the target segment. While the workforce of 1990s were predominantly of the age group of 26 +, now youngsters of age 22-23 yrs have started entering the workforce. 7. The brand wanted to be more relevant to the new young working class. Also the brand somehow wanted to attract consumers beyond the workplace.

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MARKETING STRATEGY

1. In 2009, the brand launched its famous " I Hate Ugly " campaign targeting the youth. 2. This in-your- face communication struck a chord with the consumers and critics and the brand was able to break the earlier association of the brand as a formal wear.

3. Allen Solly also changed the tagline to " My World , My Way " to reflect the new brand proposition. My World , My Way reflects the strong individualistic view of the youngsters who own their world and create their own rules. 4. The brand literally exited the category of relaxed formal wears which it has created. One reason can be that category itself became irrelevant since all brands have their own line of relaxed formal wear. Brands like Color Plus has successfully established itself in that category .

5. In the new avatar, Allen Solly is targeting the ever- fickle young generation whose concept of fashion changes by the day. The brand has identified a gap for a premium fashion brand specifically targeting this segment. Although brands like Levi's have a strong equity in the market, there is a gap for a player like Allen Solly. OBSERVATION AT STORE 1. Relaxed communication 2. Showcase the range 3. Has different stories of different products 4. Tells the same story in more than one way 5. Communicates only the working man 6. Portrays him to be a hero in his own Sphere

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7. No. of mannequins Since the store is not a very big one, there only approximately four to five mannequins. 8. Fixtures Low height tables are used for displaying selected styles in tops. White wooden panels are used at the top for stacking with bars for hangs below them. 9. New categories Allen Solly Youth, which was launched around a year back is the only new category, with new styles being introduced in it at lower & affordable price points. 10. Price Points o Allen Solly Youth priced at Rs. 399 to Rs. 1499. o Formals Rs. 999 (shirts) to Rs. 2499; Suits Rs. 7995 o Accessories Rs. 109 (socks) to Rs. 2500 (handbags)

5.1.5 ARROW

1. Arrow is one of the leading premium readymade brand in India. This international brand has a rich history dating back to 1851. Globally Arrow brand belongs to Cluett Peabody . In India, the brand is manufactured and marketed by Arvind Brands.

SALES STRATEGY 1. In 2000, the brand clocked a turnover of Rs 55 crore fighting for the market with Louis Philippe and Van Heusen . This premium brand thrived on the International image and

32

Arvind Co nurtured this brand by making the brand exclusive and through restricted availability. 2. Arrow was famous for its ultra- formal shirts. Consumers liked to show off the brand and the famous Arrow brand mark near the cuff. MARKETING STRATEGY 1. Arrow had tried to build its brand using its American heritage. The brand had the tagline Authentic American and used foreign (American) models to reinforce the association. 2. In 2008 the company designed to reposition itself to target the youth. The brand adopted a new tagline " When You Know ". The target segment was identified as SEC A male aged 25-35 years. Print campaign highlighting the new positioning were released across the market. 3. Since there is a huge equity and awareness, these brands feel that there is no need to promote. Zodiac , Color Plus ,Park Avenue and Louis Phillippe has been consistently investing in brand promotions but not Arrow.

4. Arrow had established itself in the market not because of its campaigns but because of the quality,premiumness and exclusivity. The question is whether the brand still retains those value elements in the mind of the consumer

OBSERVATION AT STORE 1. Sales and promotion communication 2. Authoritative tonality 3. Does not showcase any range

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5.1.6 COLOR PLUS

1. Launched in 1993, ColorPlus created a niche in the ready to wear market in India with a premium range of clothing for men. With focus on product innovation and unique use of colors it has today come a long way since it was incepted in 1993. Today, the brand is part of the Raymond group.

PRODUCT STRATEGY 1. ColorPlus has always used highest quality fabrics and product engineering techniques that give the user the unique comfort and tactile feel which no other brand offers. 2. This is clubbed with the use of colors to give the sophisticate, yet colorful look that is unique to the Brand. 3. ColorPlus has pioneered the techniques like Golf Ball Wash, Cone Dyed Casuals and Thermo-fused buttoning.

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4. The brand in no time has become the choice of the up market, trend-savvy, sophisticated and discerning Indian man and changed the way he dressed.

MARKETING STRATEGY 1. In this era of celebrity endorsement , this is a brand which uses no celebrity , and Colorplus is always the star. 2. The brand is exposed through careful media selection and you never see a TVC of this brand. Seen only in premium publications and business magazines reveals that the brand is clear about the target segment. 3. The copy and the layout is ever so consistent and the ads has maitained a classy look throughout its existence. 4. As a part of the initiative to reward our premium customers, ColorPlus has launched Spectrum, an exclusive membership to a plethora of benefits. OBSERVATION AT STORE 1. Sales and promotion communication 2. Authoritative tonality 3. Does not showcase any range

5.1.7 PARK AVENUE

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1. Launched in 1986, Park Avenue provides stylish and innovative wardrobe solutions to well-dressed gentlemen. Park Avenue evolved into an innovation brand offering leading new styles to the corporate world and won the 'Most Admired Mens Formalwear Brand ' at the Images Fashion Awards 2011.

SALES STRATEGY

1. Brands such as Park Avenue, Parx, ColorPlus, Zapp!, Manzoni and the flagship Raymond doesnt believe price reductions alone can draw more people to its stores or boost sales. 2. To enter small cities such as Gandhidham, Nadiad and Himmatnagar in Gujarat and smaller markets in other states, Raymond will bank on franchisees for its Park Avenue formal menswear and Parx casual wear, in addition to price cuts . 3. Raymond will retain its premium positioning for ColorPlus, which contributed to about 25% of the firms Rs569 crore apparel revenue in 2008-09, because of a niche, loyal clientele for the brand. 4. Similarly, Raymond will keep intact its womens wear line, which it sells through Park Avenue. 5. As it scales down other brands, Raymond, which runs 548 stores, wants an efficient franchise network to keep investment in check while expanding quickly, said Joshi, pointing to a shift in the firms thrust on high streets. The new format calls for smaller, 500 sq. ft stores costing not more than Rs2,000 per sq. ft each. Currently, the outlets are typically larger, at 1,200-1,500 sq. ft and above.

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MARKETING STRATEGY 1. The Raymond Group also has an expansive retail presence established through theexclusive chain of The Raymond Shop fortheir brands. 2. Mainly focus on local market with their brand name. OBSERVATION AT STORE 1. Formal tone of display 2. Cool and calm ambience with light music 3. Spacious showrooms. 4. No major offers.

5.1.8 LEVIS

1. Levis India, which had struggled to find its feet in the price conscious Indian Denim market, is set to achieve a sales turnover of USD 100 million plus this year. It would make it the first international apparel brand to do so as ETreports .Besides another brand - Benetton - is also set to achieve the same feat .

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2. Levis India plans to open over 800 stores by 2011 and it seems that the turnover is set to increase at a faster pace in the coming years and it plans to take a larger cake of the existing $450 million organized denim market . However, it is to remembered that the organized denim market in India is much smaller than the unorganized denim market . However , with increased incomes with the youth, the organized denim market is growing at a fast pace of around 10-12%p.a . This is prompting other Internationaldenim brands in India like Pepe Jeans , Lee Cooper etc to expand aggresively with Pepe Jeans itself wanting to add another 300 stores in the coming year. The local denim brands like Spykar , Flying Machine (Arvind Mills) etc are also creating an impact in the denim market.

SALES STRATEGY 1. How will this objective be achieved: The premium jeans wear market is completely driven by the high income group people, which do not contribute to a large customer base. Hence, to induce the upper middle class to buy this range of products, some incentive needs to be given. By bringing in this strategy, Levis has shifted the one time burden of Rs. 4000 to EMIs. Therefore, this strategy will bring in a new customer base for its premium products. 2. 1. Lower income group and middle income group can now afford branded and premium apparel. 2. Those customers who want to buy apparels on certain occasions such as birthdays or other festive occasions and even those who want to buy them to gift to others, but could not afford to do so because of tight purse strings, can now be relieved of spending too much at one point of time. 3. This strategy will be pocket friendly. However, this may increase per capita spending of the consumer as the payment is delayed. The strategy will simply make these premium brands look more affordable to bring in new sets of customers. However this lucrative offer may simply increase total spending, as it now looks

38

affordable. 4. These sets of consumers may no longer feel Levis is a premium brand as it will now be affordable to all the income groups and they may not like to be associated with Levis anymore. This strategy may back fire on Levis as it may lose its upper middle class and upper class consumers.

MARKETING STRATEGY

1.

Two types of customers have been identified by the apparel brands which are tough nuts to crack. First being those for whom purchase of jeans and other apparels depends on impulse. By providing EMI on jeans, Levis will ensure that there is an added reason by which these impulses can be generated by the company rather than waiting for the consumers to activate and act upon their impulse. The second set of customers is not customers per se but is termed as window shoppers. Even for this set of customers, Levis (through EMI) will make its jeans more lucrative and at the same time will not be a big cut on their pockets.

2. 1. It will pressurize other premium apparel brands to contemplate a me too strategy. 2. It will provide direct competition to unbranded jeans wears companies. Those consumers who want to wear branded clothes but cannot afford spending Rs. 1500- Rs. 4000 at a time will now have better options in hand. OBSERVATION AT STORE 1. Levis has cool ambience and the entire store depicted the brand personality- Rebel extremly well 2. The campaign was well targeted towards Youth

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3. celebrity endorser 4. Sale and product communication 5. Bold communication 6. Consistent visual grammer

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CHAPTER 6 COMPETITIVE LANDSCAPE

Poor firms ignore their competitors; Average firms copy their competitors; Winning firms lead their competitors. Competition can be defined as A market in which rival sellers are trying to gain extra business at one another's expense and thus are forced both to be as efficient as possible and to hold their prices down as much as possible. Competitors, on the other hand are, those firms or individuals who seek to satisfy the same customers or customer needs and offer similar products or services, close substitutes or brands to them. CP inner circle mainly consists of international brands like United Colors of Benetton, Van Heusen, Levis, Louis Philippe,LP Youth, etc. which majorly cater to the same target segment as WLS and thus count as competitors for the brand. Since Wills is a complete wardrobe solution with its brand Wills Sport, casual wear brands Benetton and Levis also form competition. Along with the presence of all these international brands, there are Indian brands like Raymonds, Prax, and many more which also compete for the customers share of wallet.

6.1 MARKET OVERVIEW Market definition Ready made garment industry consists of the sale of all menswear, womens wear and children wear. The menswear market includes mens active wear, casual wear, essentials, formalwear, formalwear-occasion and outerwear. The womens wear market includes women's active wear, casual wear, essentials, formalwear, formalwear-occasion and outerwear. The childrens wear market includes baby clothing, boys active wear, boys casual wear, boys essentials, boys formalwear, boys formalwear-occasion, boys outerwear, girls active wear, girls casual wear, girls essentials, girls formalwear-occasion, girls outerwear and toddler clothing. The industry value is calculated at retail selling price (RSP), and includes all taxes and levies. All currency 41

conversions used in this report have been calculated at constant 2009 annual average exchange rates. For the purposes of this report, Asia-Pacific comprises Australia, China, India, Japan, Singapore, South Korea, and Taiwan. 6.2 RESEARCH HIGHLIGHTS The Indian apparel retail industry had total revenue of $28,102.6 million in 2009, representing a compound annual growth rate (CAGR) of 9.9% for the period spanning 2005-2009. Sales of menswear proved the most lucrative for the Indian apparel retail industry in 2009, with total revenues of $11,864.4 million, equivalent to 42.2% of the market's overall value. The performance of the industry is forecast to decelerate, with an anticipated CAGR of 7.6% for the fiveyear period 2009-2014, which is expected to drive the industry to a value of $40,586.9 million by the end of 2014. 6.3 MARKET ANALYSIS The apparel retail industry consists of all menswear, womens wear and childrens wear. The apparel retail industry in India has grown rapidly in recent years and although the growth rates are forecast to decelerate, will remain very strong. The Indian apparel retail industry had total revenue of $28,102.6 million in 2009, representing a compound annual growth rate (CAGR) of 9.9% for the period spanning 2005-2009. In comparison, the Chinese industry increased with a CAGR of 7.9%, and the Japanese industry declined with a compound annual rate of change (CARC) of -0.8%, over the same period, to reach respective values of $102,291.5 million and $96,589.5 million in 2009. Sales of menswear proved the most lucrative for the Indian apparel retail industry in 2009, with total revenues of $11,864.4 million, equivalent to 42.2% of the market's overall value. In comparison, sales of womenswear generated revenues of $10,202.4 million in 2009, equating to 36.3% of the industrys aggregate revenues. The performance of the industry is forecast to decelerate, with an anticipated CAGR of 7.6% for the fiveyear period 2009-2014, which is expected to drive the industry to a value of

42

$40,586.9 million by the end of 2014. Comparatively, the Chinese industry will increase with a CAGR of 5.4%, and the Japanese industry will decline with a CARC of -0.9%, over the same
period, to reach respective values of $132,911.1 million and $92,413 million in 2014.

6.4 LIMITATIONS

1. The study conducted for the brand has been undertaken in the Connaught Place Market. All the surveys conducted as well as the showrooms of the competing brands visited were limited to this market. 2. The survey method takes into account the responses of customers. These responses may be incomplete and sometimes biased. 3. Confidentiality. 4. Paucity of data related to competitors is another limitation which might lead to insufficient knowledge about the competitor.

6.5 METHODOLOGY

43

For the purpose of conducting a comparative study, two methods were adopted Questionnaire Method and Self Observation. For the research we used descriptive type of research.

A questionnaire was prepared & administered to the shoppers in CP market. The target segment was people shopping from the brands which are competitors to WLS as well as customers of the brand itself. The sample size taken is 100. Most of the people surveyed were shoppers in blocks D, E and F since these are the blocks which have the maximum no. of competitors stores. The questionnaire is provided in the annexure for reference.

6.6 Target Segment People shopping from Wills Lifestyle, Van Heusen (both VH Men & VH Women), Allen Solly, Puma, Spykar, Levis, Benetton, Louis Philippe, LP Youth & a few general shoppers.

6.7 Blocks Covered for Survey B, C, D, E, & F 6.8 Sample Size 100, out of which 91 are usable. In the self observation method, a personal visit to all the stores was made to collect first hand information about the brands. The various aspects of the stores were taken note of. SOFTWARE USED- SPSS is used along with MICROSOFT EXCEL.

CHAPTER 7

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ANALYSIS FROM THE QUESTIONNAIRE FILLED

Q1. WHAT IS THE OVERALL BRAND IMAGE OF THE FOLLOWING BRANDS?

Figure 7.1 overall brand image

30 25 20 15 10 5 0 wills lifes ty le lp benetton allen s olly van heus en levis S eries 1

This table as we can see tells that out of the survey conducted the brand image of Benetton, levis, wills lifestyle and allen solly are the ones whose brand image is good as compared with the other brands. In this table also we can see the same trend which is coming from the earlier pie chart which says:1. Benetton at top 2. levis at second 3. wills and allen solly are somewhat at same level.

45

Q2. WHAT ARE THE VARIOUS FACTORS WHICH INFLUENCE THE BUYING THE BRANDS? 7.1 TABLE SHOWING THE FACTORS WHICH CREATES DEMAND creation of demand by brand ambassadors
from where do you often buy from * What does influence/inspire you to buy new apparel? [BRAND AMBASSADORS] Cross tabulation Count What does influence/inspire you to buy new apparel? [BRAND AMBASSADORS]

STRONGLY AGREE from where do you often buy from wills levi's vh Lp Total 13 4 0 1 33 12 3 9 7 44 10 0 1 3 14 35 7 10 11 91 benetton 15 AGREE 13 CANT SAY 0 Total 28

This table tells us that other than Van Heusen and louis philippe the brands like levis, Benetton and wills lifestyle customers are indifferent in choice regarding Brand Ambassadors. So that is the reason Wills Should focus on other factors because it is already creating its demand. But this can also be that so as to climb the ladder to the top it should try various marketing strategies such as:1. Advertisements during occasions and clearance sale. 2. more and more brand promotion in the off seasons.

Q3. WHAT IS THE AGE WISE BUYING PATTERN OF THE BRANDS?

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7.2 TABLE SHOWING AGE WISE PREFFFERENCES

from where do you often buy from * age Crosstabulation

Count

Age

15-20 from where do you often buy from Wills levi's Vh Lp Total 0 0 0 1 4 benetton 3

20-25 18

25-30 2

30-35 5

Total 28

11 3 0 2 34

23 4 2 7 38

1 0 8 1 15

35 7 10 11 91

From this above table it is evident that age group between 20-25 years prefers Benetton and wills is more favorite brand of the age group 25-30 years, which is proving that its market positioning is more towards this particular working class people. Like Van Heusen is most preffered as a formal wear in the 30-35 age group or working executives. So Wills Lifestyle should concentrate on enhancing its customer base in wide age groups by offering the blend of classy, casual, formal and affordable.

Q4. WHICH ARE THE WORDS THAT RELATES TO THE BRAND NAME? 47

Figure 7.2 words which shows the brand image of Benetton

c o o l a n d c o lo rfu l c la s s y a n d fa s h io n a b le fo r m a l a n d s u it s

From the above pie chart we can see that Benetton is more famous towards young group and the word truly Depicts its name UNITED COLORS OF BENETTON.

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Figure 7.3 word showing brand image of wills lifestyle

cool and colorful classy and fashionable denim and jeans formals and classy

In this pir chart it is evident that wills has aptly positioned its brand into the minds of the customer and we can see that majority of them has said that it is classy and fashionable. So in this area it is a strong brand as it has successfully captured the share of the market and thus we can say that its marketing strategies is very good the reasons may be 1. Youth Icon is its Brand ambassador ie. Ranbir Kapoor 2. its classy showrooms 3. Superb ambience and good and classy range. 4. ITC ltds Brand value and Marketing strategies.

Figure 7.4

49

The above table shows that when customers think of levis they instantly identify it with denims and jeans which it is famous for. So their marketing strategy has completely been towards advertising new style jeans and denims, Since it wants to be looked as an aggressive and youthful brand they have taken Akshay Kumar as their Brand ambassador.

Implications of the perception of these brands

50

 Benetton people wanting a cool & vibrant kind of look would choose Benetton as their shopping destination. E.g I want to buy something nice & colorful today! would lead a person to choosing Benetton. Wills Lifestyle would be preferred by fashion conscious people & shoppers for evening or party wear.Also assurance of quality to customers comes from this brand. Levis for comfort wear or simply the one stop shop for denims. Van Heusen a person looking for well fitted & elegant formals would certainly choose to purchase from a Van Heusen store. Louis Philippe again, for people looking for official wear. Allen Solly it offers quality formals at affordable prices to people.

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Q5. WHAT ARE THE BUYING HABITS OF CUSTOMERS WITH RESPECT TO VARIOUS APPARELS? Table 7.3 consumer buying habits
how often do you shop from wills lifestyle * where do you buy the following items [formal] Crosstabulation Count where do you buy the following items [formal] EXCLUSIVE MALLS how often do you shop from wills lifestyle Always very often Often sometimes Rarely Total 2 3 19 0 2 26 SHOPS 12 30 15 5 3 65 Total 14 33 34 5 5 91

So from the above we can say that most of the shopping in formal line of clothing are sought from the exclusive shops and thus wills lifestyle are going the right way in increasing the chain of their shops every year and are less focusing on marketing through Malls. Thus it should try to focus on exclusivity of the brand.

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Q6 WHICH ARE THE VARIOUS TYPES OF SHOPS WHICH THE CUSTOMER PREFERS TO BUY THEIR DESIGNER OUTFITS, HIGH END APPARELS? Table 7.4 types of apparels wanted by customers

from where do you often buy from * If your income bracket goes up, then what do you aspire to buy? Crosstabulation

Count

If your income bracket goes up, then what do you aspire to buy?

HIGH END BRAND APPARELS From where do you often buy from levis wills vh lp Total 20 0 1 2 35 Benetton 12

FASHION DESIGNER WEAR 16 I DONT ASPIRE 0 Total 28

5 7 8 9 45

10 0 1 0 11

35 7 10 11 91

So this table tells us that most of the people will go for high end brand apparels if their income goes up. So by this we can interpret that as Indias economy is growing at a fast rate, the demand for high end apparels is going to increase so it can be an opportunity to tap the market by getting the first mover advantage.

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Q7. WHAT IS THE SATISFACTION LEVEL OF CUSTOMERS IN PRICE FACTOR FOR WILLS LIFESTYLE? Figure 7.5 satisfaction in context of price in wills lifestyle

45 40 35 30 25 20 15 10 5 0 h ig h ly s a t is fiesda t is fie d cant say s o m e w h aht ig h ly u n s a t is fi e d u n s a t is fi e d S e r ie s 1

In the above table we can see that most of the customers are highly unsatisfied from the brand because of its high prices. This is the reason it should also focus on its other affordable brand called JOHN PLAYERS. It can overcome this situation by promotinf the John Players brand thus capturing a large customer base. Thereby increasing its overall market share and sales.

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Q8. WHICH AGE GROUPS PREFERS BUYING FROM THE GIVEN OUTLETS? Table 7.5 Age wise choice of shopping area
age * where do you buy the following items [casual] Crosstabulation Count where do you buy the following items [casual] EXCLUSIVE MALLS Age 15-20 20-25 25-30 30-35 Total 3 23 23 0 49 SHOPS 1 11 15 15 42 Total 4 34 38 15 91

In this table we can see that most of the age group in 20-25 and 25-30 are preferring Malls as their destination of their choice in buying casuals. So from this we can interpret that Wills should also focus on the malls also since these age groups are highly energetic and fun loving so thats why they prefer malls because of large choices available. Since nowadays malls are coming up really very fast so this area should be explored and in the coming future this will prove more profitable than exclusive shops.

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Q9 WHAT IS THE FREQUENCY OF SHOPPING OF CUSTOMERS? Table 7.6 frequency of shopping

How frequently do you go to buy apparel in 3 months? * from where do you often buy from Crosstabulation Count from where do you often buy from benetton How frequently do you go to buy apparel in 3 months? LESS THAN 2 TIMES 2-4 TIMES 5-6TIMES Total 9 17 2 28 levis 2 14 19 35 wills 0 7 0 7 Vh 0 1 9 10 lp 8 1 2 11 Total 19 40 32 91

From the above table we can say that Wills lifestyle is not a very much soughed brand unlike Benetton and levis. The reasons may be:1. price 2. lack of awareness due to low advertisements. 3. dominance of other brands.

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10. WHICH OF THE BRAND CAN BE RELATED AS A GLOBAL BRAND? Figure 7.6 global brand image

benetton wills lifestyle levi's van heusen

From this above pie chart we can see that Levis is leading the list in the category of global brand image. This may be a factor which leads to its high brand image and overall leading trend. Since customers are buying and having a satisfaction level in areas of quality, price, image.

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Q11. WHAT IS THE OVERALL RANKING OF THE BRAND? Figure 7.7 overall brand image.

b e n e tto n le vis w ills vh lp

So from this pie chart it is evident and we get an Idea that Benetton and Levis are dominating the target market and wills lifestyle is following it as the third most wanted brand which the customer prefers. So wills have to enhance its presence by various marketing strategies so as to have a higher position in the market. Currently it is offering various discounts which is very much going to help to clear the stocks as well as the new launches in classy segments.

Q12. DERIVE THE PERCEPTUAL MAPPING OF THE FILLED QUESTIONNAIRE?

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Table 7.7 spss data (functions)

Standardized Canonical Discriminant Function Coefficients

brand image look of the store product quality customer service price styles/variability wills lifestyle louis philippe levi's benetton allen solly van heusen

1 .315 -.559 .614 .411 -.527 .011 -.157 .115 .153 .107 -.457 .238

2 .547 .238 .498 -.726 .272 -.183 -.226 -.066 .229 -.242 .050 .055

Figure 7.8 perceptual mapping

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.800

.600

A1
.400 B2

A2

.315 -.559 .614 .411 -.527

A6 A5 B6
-.800 -.600 -.400 -.200 .200

B1

.000 .000 -.200

B2 B3 B4
.200 .400 .600 .800

.011 -.157 .115 .153 .107 -.457 .238

A4

B5
-.400

-.600

-.800

A3

A1- Brand image A2- product quality A3- customer service A4- Styles Variety A5- Look of the store A6- Price

B1- Levis B2- Van Heusen B3- Louis Philippe B4- Benetton B5- Wills Lifestyle

To know the various factors which influences various brands a perceptual mapping was done. A perceptual mapping was done for the brands that are:1. Wills lifestyle 2. Louis philippe 3. Van heusen 4. Arrow 5. Allen solly 6. Levis With respect to the various attributes such as:1. Brand Image

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2. Look of the store 3. Product Quality 4. Customer Service 5. Price 6. Styles/ availability The results showed that in 1st quadrant in respect of brand image and product quality levis and Van Heusen are the most favorites by the customers, and also levis is slightly above Van Heusen. Since from the questionnaire we also got to know that levis is also considered to be global brand so this might be the reason for this. And from second quadrant we can see that Allen Solly is considered to be a brand which comes in mind of the customers when it thinks of the price factor and also the look of the store factor. Since also it is considered to be the brand as affordable and quality brand so they are able to establish themselves as the brand in the manner they wanted. From the third quadrant we can infer that the brand Wills Lifestyle lacks clarity since no factor can be related with the brand and thus it creates a confusion in the minds of the customers which acts as a lacunae in the way of achieving the top position, it can also be said that strategies implemented are not very efficient and clear cut goals should be established. From the fourth quadrant we can say that Louis Philippe and Benetton are the most sorted out brand when customer thinks of styles and variety and also we can see in the quadrant that customer service is also the quite factor which creates the customers for the brands. 7.1 INITIATIVES & CONTRIBUTIONS

1. A contribution of approximately Rs. 2,65,000 has been made to the company, through sales, during the period of the internship, with the highest invoice value of Rs 35,000. 2. A micro marketing activity was initiated to take care of the decreasing footfalls. Different restaurants, bars and stores like that of watch companies or camera companies, which were also in proximity to the store, were targeted. The following places were visited for this

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purpose Indian Coffee Home, Spirit Restaurant & Bar, World of Titan, Canon and Oriflame. The deal with Spirit Restaurant & Bar has been successfully converted. A two way tie up has been finalized. 100 Gift Vouchers of denominations of Rs. 500 of Wills Lifestyle will be given on a bill of Rs. 3000 at Spirit. Similarly, a discount of 15% at Spirit will be applicable on an invoice of Rs. 3000 at Wills Lifestyle. 3. An opportunity was received to interview candidates for the post of customer associate for the store. The interviews were held on the 11th of March within the store itself. 4. An initiative was taken to make the store presentable at all times. Visual Merchandising exercises were taken up regularly with a change in the Window Displays every 10 to 15 days.

7.2 LEARNING FROM THE ABOVE From the above analysis there are many things that we can see is important they are:1. Since Indian market consists of various dimensions and which is very much dynamic in nature so our strategies should be to be at a same frequency and pace with the ever changing time by various kind such as :- a) Innovation b) fast and consistent growth c) constant vigil on the market changes d) customer need identification and fulfillment. 2. Since we know that ITC Wills lifestyle is a very huge brand but then also it is not at the top of the league. It can be increased only by positioning the brand into the minds of the customer.

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3.

Innovative advertisements like what LEVIS always gives, recently it came with a huge collection of denim range called CURVE ID for women and its a huge hit, so these kind of innovation is always profitable for the company.

4. we also can see that offers play a very major role in creating sales, in this all the companies try to give many offers but only some are proved to be profitable, levis came with a very innovative add in which there is a EMI system and we can buy expensive denims by taking it on installments. 5. since overall image is build by the synergy effect of the various attributes such as A) price factor B) quality C) look of the store D) styles. If all of these are taken care of then the brand image can be increased hence increasing the market share. 6. Ground level staffs are the ones who are in a direct contact with the customers so they should be properly trained by the Human Resource Department of the concerned company.

7.3 Devising Promotional Strategies based on Customer Profiling

In accordance with the study conducted outside the store, to measure the effectiveness of the brand it was also important to note the trends occurring inside the store. Therefore a small project was taken up towards the end of May to do an in-store study of the buying patterns of customers as well as the sub-brand performance (Sport, Classic, Clublife, and Signature). In this project basically a customer profiling was done. It aimed at observing the trends or buying patterns of the customers based on their age, gender, and the hour at which they visit & purchase from the store. A record of 840 transactions has been made, which includes the trend for the period of one month.

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7.3.1 Limitations: The mapping for the age of the shopper is done on the basis of assumption. The tracking is done from 3 p.m. to 8 p.m. only On the basis of the above observations the following promotional strategy has been devised.

PROMOTION NAME: Fashion by Wills PROMO OPTION 1: Buy Wills Signature collection worth Rs. 2500 (or above) & get Gift Vouchers worth Rs. 500. (Gift vouchers applicable on accessories & Essenza Di Wills) PROMO OPTION 2: Buy Wills Signature collection worth Rs. 2500 (or above) & Pick Fiama Di Wills worth Rs. 250. TIMINGS (during which promo is applicable): Applicable between 1 p.m. & 4 p.m. on weekdays.

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CHAPTER 8

SUGGESTIONS From the study of the other brands along with the experience of working at the store, a few points were identified which are mentioned here. An attempt has been made to come up with a few suggestions which would help in increasing the effectiveness of the store as well as the brand. 1. The sub brands Wills Classic, Wills Sport, Wills Clublife, and Wills Signature can be advertised separately to increase the awareness these brands. This can be done by putting up separate, easily movable (to facilitate regular change in VM), signage for each brand showing their respective logos, within the store. 2. CARRY BAGS Carry bags are a great means of advertising. The new season launch should be advertised through carry bags also. 3. TRIAL ROOMS The trial rooms dont look like that of a premium brand. It doesnt match up to the facilities provided at the South extension and Ambi store as well as other stores like Levis. 4. Centralized cooling is required. 5. Sofas required for comfort (like that at other Wills stores). 6. Sizes Waiting for sizes becomes a turn-off for the customer if it takes too much time. It sometimes results in the customer walking out of the store. 7. The stocks in the back room should be kept size-wise as well as brand-wise (classic, sport, etc) and the racks can be tagged with stickers indicating the sizes it contains. 8. Training house-keeping staff for faster service & quicker replenishments throughout the day. 9. In order to build a dominant presence in the apparel market it should go for a robust portfolio of offerings. 10. It should have clearly differentiated product presentation, and more product range.

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11. It is also seen that customers hesitate to come to store when the salesman there is constantly hovering around them, so in order to have more footfall in the store it should take care of the comfort area of their customers. 12. Since it is more focusing on the exclusive shops thus they should increase their number of shops so that more target segments are covered. 13. Since it has international look and feel it should take advantage of this stage and should know what the elite class exactly wants since they are the main buyers. 14. John players should also be promoted so that it is recalled into the minds of the customers when they go for shopping. 15. During research it was also found that most of them think that it is very expensive, so this perception should be changed by justifying the price charged with the various value attached to it. 16. During the research it was also found that advertising is also very helpful in developing the market share of the brands, since levis and park avenue is very much into the advertising and Benetton is giving ads in the print media which is also helping them with brand recalling into the minds of the customers which wills lifestyle is not doing. 17. Relating towards a particular age group is very important or relating towards a particular department gives a clear cut idea about the brands. Like levis and Benetton is targeting towards denims and youth and also there price range is large. 18. An exercise was done by changing the pattern of the store located at the C.P market in every 5-6 days and showcasing the latest designs caused an increase of footfalls and purchases. In fact the layout inside the store was also changed by changing the mannequins and racks into different places also caused a favorable factor in increasing sales. 19. Wills Lifestyle should also focus on entering into the formal or business suit segment which is dominated by various brands such as Giovanni, Blackberry, Park Avenue and other players. Since it has the potential and a market image of a classy brand it would not be difficult to enter since it already has the platform for this.

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REFERENCES: ITC portal www.vanheusen.com www.Datamonitor.com

Journal Of Economic Abstract

(Nashville, American Economic Association)

Indian Journal of Marketing

levis India ebsco economic times Indian express www.itc.com JOURNAL OF FASHION MARKETING & MANAGEMENT; MAR2011, joyoung lee, Elena e karpova APPAREL RETAIL INDUSTRY PROFILE: INDIA; May2010, gary gerefy,united nations industrial development organization, department of sociology, Duke University. NEW CHALLENGES FOR THE SOUTH AFRICAN TEXTILE AND APPAREL INDUSTRIES IN THE GLOBAL ECONOMY, TRUETF, LILA J.1 , Turetf Dale. Journal of economic.2010

CHINA'S TEXTILE AND APPAREL INDUSTRY AND THE GLOBAL MARKET: FIVE COMPETITIVE FORCES, Mc cann Jack SAM Advanced Management Journal

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Annexure QUESTIONNAIRE

Study on the Apparel Brands Present in C.P MARKET

1.Which brand do you usually shop from? a. Benetton _____ b. Wills Lifestyle _____ c. Levis _____ d.Van Heusen _____ e. Louis Philippe _____ f. Allen Solly _____ 2. What attracts you to the following stores? (For each brand, please give a ranking of 1 to 6 to the mentioned parameters.) Wills Lifestyle Brand Image Look of store Product Quality Styles/variety Customer service Price Louis philippe Levis Benetton Allen Solly Van Heusen

3. The first word that comes to your mind when you think of: a. Benetton _________________________________

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b. Wills Lifestyle _________________________________ c. Levis _________________________________ d.Van Heusen _________________________________ e. Louis Philippe _________________________________ f. Allen SollY 4. Do you associate any of the brands with having a global image? (Please Tick) a. Benetton ____ b. Wills Lifestyle ____ c. Levis ____ d.Van Heusen ____ e. Louis Philippe ____ f. Allen Solly ____ 5. Where do you buy the following items [formal] 1. mall .. 2. exclusive shops.

6. Where do you buy the following items [casual] 1. mall .. 2. exclusive shops.

7. Where do you buy the following items [casual] 1. mall .. 2. exclusive shops.

Generally, from which retail format do you buy your apparels? 1. exclusive brand outlets. 2. malls. 3. multibrand outlets. How frequently do you go to buy apparel in 3 months? 1. less than 2 times. 2. 2-4 times. 3. 5-6 times.

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What is your opinion about increasing the brands awareness?(tick) Strongly agree Brand ambassadors advertisements Occasions What is your annual income? 1. less than 2 lakhs.. 2. 2-4 lakhs.. 3. 4-6 lakhs.. 4. more than 6 lakhs If your income bracket goes up, then what do you aspire to buy? 1. high end brand apparels.. 2. fashion designer wear.. 3. I dont aspire.. 6. Suggestions for the brand above (or any other brand): Brand Name: Suggestion:______________________________________ ___________________________________________________ ___________________________________________________ ____________________ 7.NAME:9. Gender: 8. AGE:Agree Cant say disagree Strongly disagree

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