Académique Documents
Professionnel Documents
Culture Documents
On
Consumer’s perception about branded clothing store and
merchandise Levis Stores & Koutons Store in India
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A Study
On
Consumer’s perception about branded clothing store and
merchandise Levis Stores & Koutons Store in India
SUBMITTED BY
Mr.T.Thirumal Reddy
Lecturer (SSIM)
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SIVA SIVANI INSTITUTE OF MANAGEMENT
SECUNDERABAD
(2009-11)
Contents
Literature Review
Executive Summary
Chapter-1
Industry Profile
Competitive Strengths
Chapter-3
Research design
Research Objectives:
Chapter-4
Data Analysis &Interpretation
Sex, Status, Age, Occupation
Chapter-5
Limitations
Findings And Suggestions
Chapter -6
Conclusion
Bibliography
Questionnaire
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LITERATURE REVEIW
Literature survey is the documentation of a comprehensive review of the published and
unpublished work from secondary sources data in the areas of specific interest to the researcher.
The library is a rich storage base for secondary data and we used to spend many days and going
through books, journals, newspapers, magazines, conference proceedings, doctoral dissertations,
master’s theses, government publications and financial reports to find information on their
research topic. With computerized databases now readily available and accessible the literature
search is much speedier and easier and can be done without entering the portals of a library
building. We had used internet to a great extent in finding out different research topics related to
the topic.
We started
LITERATURE REVIEW the
literature survey even
as the information from the unstructured and structured questionnaire is being gathered.
Reviewing the literature on the topic area at this time helped us to focus further more meaningfully
on certain aspects found to be important is the published studies even if these had not surfaced
during the earlier questioning. So the literature survey is important for gathering the secondary
data for the research which might be proved very helpful in the research.
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EXECUTIVE SUMMARY
In the globalised era, the apparel and accessory segment in India, like many other traditional
product segments, is undergoing an astounding change of perception. While it continues to enjoy
the position of being an enhancer of beauty, the new-age consumer perceives fashion as a must,
manifesting the wearer’s attitude, personality and lifestyle. Fashion is now an important new sales
driver in India, and domestic and international brands are scrambling to adjust their designs to
cater to the Indian market. A host of variables - the buying occasion, the wearing occasion, the
economic strata of the target segment and the effect of regional and religious influences on all of
them are now being juggled to find the winning mix. With mounting western influence, and a
focus on revival of traditional Indian fashion elements, diversity in India sees new faces. The
Indian fashion stage is a reflection of deep cultural influences, the consumer shift in the new
economic scenario, and changing social perceptions. It indicates the birth of new and distinct
target groups
that ride on
various
EXECUTIVE SUMMARY
influences to set new trends. Understanding these influencers and the various target group
characteristics are key to setting foot in the Indian fashion industry. Read on to find out more
about this potential landscape.
This report highlights the consumer shift, change in perceptions, and awareness of western
cultures and brands amongst Indians, which reinforces the strong potential that India has for
international fashion brands. The report also states the three main factors that make India a very
challenging landscape.
1. Individuals are today clear as to what they consider essential and what they deem luxury. The
choice is very personal, and in line with the kind of lifestyle they aim to lead. Indian consumers
are a brand-aware lot, yet they like to base their decisions on rationale and focus on high-end
fashion brands that are most coherent with their aspirations – that they see as most relevant.
2. The glocal scene across India shows that the fashion adaptation is as diverse as the culture
across the country. Indians like to experiment and fuse western wear with Indian designer
clothing, adapt western trends and indianize them as per local trends, they look at film celebrities
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and designers for inspiration. This factor makes the Indian market all the more complex to
understand and dwell in.
3. Lastly, India is not only open to western designer brands but also home to domestic talent and a
long-running royal patronage of luxury. The factors mentioned above impose a challenge to all
international brands. OVERCOMING THE CHALLENGE IS NOT JUST ABOUT GENERATING BRAND
AWARENESS, BUT ABOUT DEVELOPING AN ENTITY THAT WILL FIND A CONNECTS WITH INDIAN
FASHION CONSUMERS. How can this be achieved? The clues to the answers are hidden in the
target segments that we have identified. The best way to find out is by delving deeper into the
thinking patterns of these consumer segments.
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Industry Profile
India is the second fastest growing economy in the world growing at approximately 7%-8%
per annum. According to A.T. Kearney’s Global Retail Development Index, 2006, India
tops the annual list of most attractive countries for international retail expansion (Source:
India Retail Report, by Images F&R Research). Currently the Indian retail market is valued at
USD 270.0 billion. Organized retail has grown from USD 6.2 billion in 2004 to USD 8 billion
in 2005 to USD 12.4 billion, at a CAGR of 30% (Source: India Retail Report by Images F&R
Research 2007). Organized retail is on a high growth trajectory due to several favourable
drivers including:
favourable demographic profiles, rising income levels, increase in consumer spend,
urbanization, growth in quality retail space, emergence of mall culture and rapid
development of malls, emergence of specialty and supermarket formats which have the
most potential for growth followed by hypermarkets.
Apparel and accessories
retailing is the largest segment
of organized
India,
Chapter-1 retailing
constituting
in
39.0% of total
retailing INDUSTRY PROFILE organized
business, which
is valued at approximately
Rs. 550.0 billion (USD
12.4 billion) (Source: India Retail Report & F&R 2007). The organized apparel and
accessories retail market accounted for 13.6% of the total sector in
2004 and was valued at Rs. 109.0 billion. The share of organized retail has steadily grown to
18.9% in 2006, with the apparel and accessories sector showing a year on year growth rate of
30.3% during 2005-2006. Approximately 42% of the Indian apparel market is dominated by
men’s wear followed by women’s wear at 34%.
The ready to wear (RTW) market for apparel in India is expected to show continued growth
due to the softening of the government regulations, among other factors. The readymade
apparel segment includes both branded and unbranded players. A branded store is wherein a
manufacturer or marketer makes conscious efforts to promote his brand, such as Koutons
Retail India Limited, Madura Garment’s Peter England, Arvind Brand’s Newport, ITC’s
Wills Classic, and Raymond’s Park Avenue. There are several foreign brands that have
successfully established their presence in the country. These players may have come in via a
tie-up with domestic concerns: (like Benetton), or via licensee route (like Allen Solly,
Arrow). Some brands like Metro come in with Cash and Carry wholesale trading route, while
Tommy Hilfiger, Marks and Spencer’s, Speedo, Umbro etc retail through franchisee channels.
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There are roughly about 23 major players operating in branded apparel segment in India.
For further details, please refer to the section titled “Industry Overview” beginning on
page 59 of this Prospectus.
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Source: India Retail Report by Images & F&R
Rising Income
Levels
A larger number of households are getting added to the consuming class with growth in
income levels. There has been a 100% growth in the addition of households, from 40
million in 1995 to 80 million households in 2005. This has resulted in significant increase
in high income group from 5.5 million household in 1995 to 18 million households in
2005 for the high income group and from 18 million households in 1995 to 31 million in 2005
for the mass affluent. There has been increase in the nuclear family structure; a growing
number of educated and employed women (which translates into increasing disposable
incomes), media proliferation and growing consumerism have all contributed to the growth
of organized retail.
Consumer Spend
India has one of the youngest populations where 65% of the population is below 35 years and
54 % below 24 years. A younger population and the increasing disposable income levels, along
with higher aspirations and a feel-good factor, has tremendously affected the consumer spend.
Private consumption has a direct impact on the growth of the retail industry.
Today’s consumers are increasingly becoming brand conscious and are looking for products
with design and quality. There is easier acceptance of luxury and an increased willingness to
experiment with mainstream fashion which is seen as one of the main drivers for the
clothing and apparel segment in India.
Urbanization
Currently organized retail is focused on metros then moving down to the tier 1 and 2 cities. In
the next 10 years the growth in the organized retail is going to come from the metros thus the
target audience for organized retail is going to be the urban population. Organized retail has
been more successful in cities more so in the South and West of India.
The reasons for this regional variation range from differences in consumer buying behaviour to
cost of real estate and taxation laws. (Source: FICCI KPMG Report)
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There is increase in awareness of the tier II cities and now this is eroding the difference
between the metros and the tier II cities in terms of “urban aspirations”. International
brands like Nokia, Pizza Hut, Ford, Reebok, and Adidas are increasingly relying on these
tier II cities to drive their growth.
Retail Space
Quality retail space has always been one of the key hurdles for the development of Organized
Retail. Currently there are 120 operational shopping centres with approximately 33 million
sq ft space growing to over 575 shopping centres/ malls covering more than 120 million sq ft
space quality retail space by 2009. (Source: Images Yearbook Volume III)
There is additional retail space to add Rs. 400 billion of business to organized retail. This
growth in quality retail space will positively impact the growth in the apparel market as there
will be complete change in the shopping habits. Impulse shopping will go up to 40% of total
mall shopping. Awareness and sensitivity of brands will be heightened and a shopping trip
becomes more of an experience rather than a chore. (Source: Images Yearbook Volume III)
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purchase a specific product, thus confirming the emerging trend of focused malls.
Source KPMG
REPORT
Indian Apparel
Market
The organized apparel and accessories retail market accounted for 13.6% of the total sector in
2004; it was valued at Rs 10,900 crores. The share of organized retail has steadily grown to
18.9% in 2006, with the apparel and accessories sector showing a year on year growth rate of
30.3% during 2005-2006. Apparel and accessories retailing is the largest segment of
organized retailing in India, constituting 39% of total organized retailing business,
which values approximately at Rs 55,000 crores (USD 12.4 billion). (Source: India Retail
Report by Images & F&R 2007)
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i) Malls are expected to be one of the main growth drivers of apparel retailing in India, as
such organized retail spaces offer large areas to fashion products.
ii) Existing apparel brands and retailers have started exploring the potential of the smaller
cities and expanding their retail network.
iii) In terms of opening new retail outlets, apparel retailers and brands attained growth in
opening up of number
The Indian Apparel Market’s lions share is taken by menswear with 42% value. The
women’s wear segment has increased its overall market share by 1% to 34% valuing it at Rs
30,380 crores. There is a drop in the kids segment from 18% to 17%. This drop is due to the
increase in usage of ready-to-wear branded uniforms.
Products in the unisex segment cater to all three major apparel segments in the ratio of 6:3:1
for men’s, women’s, kids apparel respectively. The segment for uniforms is considered
separately because it comprises both kids as well as sizing in men and women for customers
above 14 years of age.
Traditionally, tailor-made garments had found flavour with the Indian masses but now the
trend is shifting at a fast pace. The last two decades of the apparel industry were in 4 different
phases:
Phase 1 Pre 90’s : Era of tailor made
apparel
Phase 2 1990-1995 : Ready-to-Wear apparel introduced
Phase 3 1995-2000 : Brands flourished
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Phase 4 2000-2004 : Retail dominates
2005 onwards : Categories rule
The other growth drivers for the ready to wear (RTW) market are the softening of the
Government Regulations like:
a) The production of ready made garment is no longer reserved for
small-scale industry.
b) Excise duty on RTW garments has been abolished.
c) Implementation of VAT by various states will simplify the tax structure and reduce the
Branded/Unbranded/Private Labels
Within the readymade segment we have branded and unbranded players. A branded store is
wherein a manufacturer or marketer makes conscious efforts to promote his brand, such as
Koutons Retail India Limited, Madura Garments Peter England, Arvind Brand’s Newport,
ITC’s Wills Classic, and Raymond’s Park Avenue
There are several foreign brands that have successfully established their presence in the
country. These players may have come in via a tie-up with domestic concerns: (like
Benetton), or via the licensee route (like Allen Solly, Arrow). Some brands like Metro
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come in with Cash and Carry wholesale trading route, while Tommy Hilfiger, Marks and
Spencer’s, Speedo, Umbro etc retail through franchisee channels.
Globally private labels contribute to 17% of retail sales and are growing at 5% pa. Private
Labels provide higher margin to the retailers simultaneously offering lower price to the
consumers. This is a strategy adopted globally and now is extensively used by Indian
retailers.
There are certain private label brands which have done exceedingly well like John Miller,
Bare, Stop, Splash. With the implementation of the uniform tax structure across the country,
quite a few of these labels are likely to aspire to achieve a brand status.
A survey carried by AC Nielsen has identified that 56% of their survey respondents in India
consider private labels to be good alternatives to manufacturer brands. This exponential
growth can be seen in the areas of groceries, home care, clothing and apparel. (Source:
Images Yearbook Volume III)
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COMPANY PROFILE
Levi Strauss & Co. (LS&CO) is a privately held clothing company known worldwide for its
Levi's brand of denim jeans. It was founded in 1853 when Levi Strauss came from Buttenheim,
Franconia, (Kingdom of Bavaria) to San Francisco, California to open a west coast branch of his
brothers' New York dry goods business. Although the company began producing denim overalls
in the 1870s, modern jeans were not produced until the 1920s. The company briefly
experimented (in the 1970s) with employee ownership and a public stock listing, but remains
owned and controlled by descendants and relatives of Levi Strauss' four nephews.
COMPANY PROFILE
people of the western
United States, such as
cowboys, lumberjacks,
and railroad workers.
Levi’s jeans apparently were first introduced to the East during the craze of the 1930’s, when
vacationing Easterners returned home with tales (and usually examples) of the hard-wearing
pants with rivets. Another boost came in World War II, when blue jeans were declared an
essential commodity and were sold only to people engaged in defence work. From a company
with fifteen salespeople, two plants, and almost no business east of the Mississippi in 1946, the
organization grew in thirty years to include a sales force of more than 22,000, with 50 plants and
offices in 35 countries.
In the 1950s and 1960s, Levi's jeans became popular among a wide range of youth subcultures.
Levi's popular shrink-to-fit 501s were sold in a unique sizing arrangement; the indicated size was
related to the size of the jeans prior to shrinking, and the shrinkage was substantial. The company
still produces these UN shrunk, uniquely sized jeans, and they still sell very well although
popular remains the original design.
2.2. THE LEVI’S BRAND: BRAND FACTSHEET:
On May 20, 1873 the U.S. Patent and Trademark Office grants Levi Strauss & Jacob Davis a patent on
the process of riveting pants. This heralds the invention of the blue jean.
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Levi Strauss was ahead of his time creating famous branding elements on his jeans that
Are still in use, and often copied, today.
• In 1886 the Two Horse brand leather patch, a symbol of the pants'
Strength is first used on his jeans.
• The Levi's brand eye-catching Red Tab Device was added to the jeans in
1936. Placed onto the right back pocket with the word "Levi’s" stitched in
White capital letters, it differentiates Levi's jeans from competitors.
• Levi’s jeans famous arched back pocket stitching is called the “accurate.”
This iconic stitching can be seen on back pockets throughout the world. Today, Levi’s jeans are sold in
more than 110 countries worldwide. Levi’s Jeans are single most-often copied apparel item in the
history of apparel. The Levi’s brand several collections around the world to meet the needs, and wants,
of denim-wearers everywhere. These include:
Levi’s Vintage Clothing – Inspired directly from the Levi’s brand archives and
Available worldwide.
Levi’s RED – A sexy and modern expression of the Levi’s brand is sold in Chains, department stores
and Levi’s Stores in the United States and Levi’s Stores and specialty retailers in Europe.
Levi’s Blue – A European collection of jeans for men and women in premium denim finishes that are
appropriate for day or night.
Levi’s Lady Style – A range of premium jeans for women available across Asia, designed for more
sophisticated wearing occasions.
Levi’s Red Tab – The authentic core of the Levi’s brand offers a wide range of
Fits and finishes in true Levi’s style.
VISION STATEMENT: LEVI’S STRAUSS: Four core values are at the heart of Levi Strauss
& Co.: Empathy, Originality, Integrity and Courage. These four values are linked. As we look at
our history, we see a story of how our core values work together and are the source of our success.
• EMPATHY – WALKING IN OTHER PEOPLE’S SHOES
• ORIGINALITY- BEING AUTHENTIC & INNOVATIVE
• INTEGRITY- DOING THE RIGHT THING
• COURAGE – STANDING UP FOR WHAT LEVI’S BELIEVES IN
The company makes clothes foe men, women, children & teens. So everyone is a potential
customer for LEVI’S. LEVI’S generally appeals to more mature generations not necessarily
looking to make fashion statement. LEVI’S makes an effort to appeal to all customers in one way
or another, which has been a key to their success over the years. Assuming that the world
population is growing LEVI’S can infer that the market for jeans is also growing. However this
growth is characterized by slow rate of growth.
THE SOCIAL ENVIRONMENT: Society shapes the beliefs, values, and norms that largely define
consumer tastes and preferences. People absorb, almost unconsciously, a world view that defines
their relationships to themselves, to others, to organizations, to society, to nature.India is a land of
diversities, which is reflected not just in the topography but also in the languages, cultures as well as
religious beliefs.
SITUATION ANALYSIS: Levi Strauss & co. is approaching to the saturation of the jeans market.
The fast changes in the consumer tastes, competition in both the lower end and higher end brands, fast
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development in the modern distribution and sales technology has brought about a continuing lose of
the market share
A new series of engineered jeans has been developed and launched as a part of a program intending
to meet the needs of their major target market, in order to regain their lost market share and to
maintain their position in the industry. Their expertise in jeans and casual dress industry will be fully
exploited at a world basis.
This year, they intend to strengthen the promotion of this new brand. Certain resources will be
allocated to their existing brands, to maintain market share of 501. Communication with customers is
also important for LEVIS. It is very important to maintain good relations with them, and track the
change in their taste and need of their main target market. Information system will also be improved
to enhance their ability to adapt the market change.
POSITION AND PRODUCT LIFE CYCLE: LEVI STRAUSS & CO. LTD
To overcome the decline in the sales in past few years levis had changed its place, pricing and
distributor and retail strategies
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- Levi’s India plans to vacate the middle price segment and plans to concentrate on the lower and
the higher end- which is the value offering-will see a further fall in price and start at
Rs.900instead of Rs. 1,000.
- On the other hand the premium segment will see an increase of about 15% in average pricing
and increase to about Rs.4, 400.
- Reason behind LEVI’S vacating the mid price segment attributes to the minimum growth in the
segment & share being taken up by local brands that are more acceptable to the local conditions
(SPYKAR,KOUTONS, etc.)
PLACE: LEVI STRAUSS & CO. Ltd: Successful value creation needs successful value
delivery. Holistic marketers are increasingly taking a value network view of their businesses.
Instead of limiting their focus to their immediate suppliers, distributors, and consumers, they are
examining the whole supply chain that links raw materials, components, and manufactured goods
and shows how they move toward the final consumers. LEVI’S looks at customer segments and
considers a wide range of different possible means to sell, distribute, and service their offerings.
5.1. RETAIL OUTLETS: Marketing channels are sets of independent organizations involved in
the process of making a product or service available for use or consumption.
LEVI’S STRAUSS, one of the most respected apparel/clothing companies of the world, has
opened around 500 outlets at prime locations in India. (Source: Levi’s retail outlet,
Bhubaneswar). Aesthetically designed, the LEVI’S store offers wardrobe solutions to the
“INDEPENDENT MAN” through popular brands like LEVI’S RED, LEVI’S RED TAB,
LEVI’S SIGNATURE, & DOCKERS. Occupying a space of more than 1 million square feet, the
retail chain network offers over 3,000 shades and designs of LEVI’S fabric. The stores also sell
the LEVI’S range of accessories including Footwear, Eye Gears, Caps, Belts, Leather Wallets,
Carry Bags. The stores present world-class experience to discerning customers through well-
designed and well-maintained interiors, attractive displays, superb assortments, spacious
movements, and well trained sales persons.
PROMOTION: LEVI’S STRAUSS & CO. Ltd: although there has been an enormous increase
in the use of personal communications by marketers in recent years, due to the rapid penetration
of the internet and other factors, the fact remains that mass media, if used correctly, can still
dramatically improve the fortunes of a brand or company. The power of marketing
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communications is equally important in influencing attitudes and behaviour with respect to
socially relevant themes.
ADVERTISING CAMPAIGNS: LEVI’S STRAUSS & CO. Ltd: declining sales forced
Levi’s into a major re-think culminating in a new strategy in which both product and advertising
innovation are now challenging creative boundaries and evolving hand-in-hand. Even LEVI’S
advertising, much of which over the previous years had been widely regarded as iconic, seemed
tired. As consumer tastes shifted away from denim in favour of combat gear and cargo pants.
LEVI’S had something to do to stem falling sales, and fast. The Company made a brave decision.
It decided there was little point in doing things by halves and that structural change was needed
to drive through any shift in product or communications strategy.
7.2. THE “TWIST” CAMPAIGN: LEVI’S created a mould breaking campaign led by a 60-
second TV commercial in which young people are seen to be twisted to fit the jeans with a
twisted seam. The idea seamlessly for the product.The execution was striking. The creative
theme was used throughout the campaign which also included print and poster executions, shop
window and point of display materials, and a web site. The unashamed aim was to create
advertising to become ‘famous’.
The ‘Twist’ campaign helped raise sales of LEJ in line with those of rival jeans brand Diesel.
7.3. THE “ODYSSEY” CAMPAIGN: In this campaign, a young couple escapes from the
restrictive confines of a series of rooms within a building, burst through the outside wall and
scale a giant tree before leaping into nothingness and freedom. Again, this theme was integrated
across brand communications using a variety of other media.
Advertising has firmly consolidated Levi Engineered Jeans’ market position, resulting in
widespread acclaim and numerous industry awards.
While the sales of LEVI’S 501 are still in a decline, sales of LEVI’S engineered jeans are rising
steadily and the line now accounts for 9-10% of the total sales by volume for the LEVI’S brand.
7.4. PUBLIC RELATIONS: LEVI’S STRAUSS & CO. Ltd: LEVI’S Strauss & CO. Ltd has
long been a corporate responsibility leader in the truest sense of the word; by doing things long
before others do. Today, the company is doing that tradition in new ways, showing how product
innovation on the eco line is central to a sustainable future. Levi’s Strauss & CO. Ltd is tackling
complex challenges, like ensuring that worker’s rights are respected and combating climate
change, by collaborating with industry peers and through other systemic solutions.
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– The role of health insurance in improving access to HIV/AIDS services worldwide.
– Approaches to accessing employee needs regarding HIV/AIDS services in India.
– LS&CO. has sustained a leadership position by addressing HIV/AIDS from a variety of
angles—what it does as a business for our employees and with consumers, how we engage with
policy makers and leaders, shaping and promoting best practices, and partnering with community
organizations and suppliers.
– More than 25 years after LEVI’S first touched HIV/AIDS, ITS leadership continues and it
resolves to win against this disease remains unabated.
KOUTONS RETAIL
Koutons are an integrated apparel manufacturing and retail company in India. they are in
the business of designing, manufacturing and retailing apparel under the “Koutons” and
“Charlie Outlaw” brands through a network of 999 exclusive brand outlets (as of August
20, 2007) across India.
They started their business with the formation of a partnership firm “M/s. Charlie
Creations”. They established a manufacturing unit (having a capacity to manufacture
approximately 20,000 pieces of apparel per annum) in Delhi in 1993. In 1994, their
Promoters with the vision of broadening operations incorporated our Company, as a private
limited company i.e. “Charlie Creations Private Limited”. The Company started its operations
by taking over the business of the erstwhile partnership firm. As of August 20, 2007 we had 18
in-house manufacturing/finishing units and 14 warehouses which are spread across various
locations in and around Gurgaon, Haryana. They have increased their annual finishing and
manufacturing capacity from 3,000,000 and 600,000 pieces of apparel, respectively as of
March 31, 2005 to
22,920,000 and 12,360,000 pieces of apparel, respectively as of March 31, 2007 they have also
entered into fabricating agreements with various manufacturing units to which we outsource
stitching of certain apparel. Their manufacturing and finishing facilities are backed by
adequate facilities for product testing, apparel development, design studio and sampling
infrastructure to ensure high quality apparel for our customers.
Their brand “Koutons” has contributed to the success of our business. Sales from their brand
“Koutons” has increased from Rs. 516.32 million for fiscal 2005 to Rs. 3,726.91 million for
fiscal 2007 and has contributed 99.11% and 92.34% of their total income in fiscal 2006 and
2007, respectively. They have positioned the “Koutons” brand in the middle to high fashion
segment, offering a complete range of a man’s wardrobe (in the age group of 22 to 45
years) ranging from formal to casual and party wear. They have reinvented and re-
launched their old premier brand “Charlie” as “Charlie Outlaw”. The “Charlie Outlaw”
brand is a casual brand targeted at fashion conscious youngsters in the age group of 14 to 25
years and is positioned as a fashionable and contemporary, value for money brand.
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They marketed their apparel through a network of distributors spread all over India till fiscal
2002. However, in fiscal 2002 with a view to improve marketing efficiencies, they
introduced the model of retailing on a consignment basis through exclusive franchise stores.
Their first exclusive store was launched in 2002. As of August 20, 2007, the “Koutons” brand
was sold on a total floor area of approx. 482,966 sq. ft. and their “Charlie Outlaw” brand was
sold on a total floor area of approx. 360,738 sq. ft.
Competitive Strengths
They believe that they are well positioned to capture the growth opportunities in India’s
apparel manufacturing and retail sectors, because of their following key strengths:
Wide network of Exclusive Brand Outlets.
Integrated player with low-cost sourcing capabilities.
Unique brand positioning.
Design and merchandising expertise, with a pulse on fashion.
Experienced and efficient management.
Wide apparel range.
IT Infrastructure
Their Strategy
Principal elements of their strategy are the following:
Increase geographic penetration by spreading the network of exclusive brand outlets.
Enhancing manufacturing capacities.
Target the growing segments
Strengthen the competitive position and recognition of their brands.
Further improving their cost structure.
Pursuing potential strategic acquisitions to complement their existing brand portfolio.
Exports of apparel under their “Koutons” or other brands.
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Company. Under the terms of the agreement, the fabric which is in the possession of the
fabricator is the exclusive property of the Company and the fabricator cannot
hypothecate, sell or create any third party interest in the fabric. The agreement also provides
that the fabricator is solely responsible for the safety and security of the fabric and is required
to indemnify the Company for any loss caused, while it is in the possession of the fabricator.
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careful in ensuring that the apparel are packaged in a manner that will give the apparel an
attractive look and at the same time protect the apparel from any wear or tear. Their packing
department takes into consideration all the above factors and makes the product ready for
retailing.
Warehousing
Once the apparel are packaged, they are directed to warehouses. They operate a total of 14
warehouses in the vicinity of their in-house manufacturing facilities where they store their
finished goods and raw materials. The shipments for exclusive branch outlets are put
together and dispatched through transport agencies from their warehouses. They maintain
separate warehouses for both our brands.
Sales and distribution
One of the most important functions in our business operations is retailing and logistics. They
have a dedicated “Sales and Marketing” team which consists of 90 employees. This team
along with the merchandising and production team devises the retailing strategy at the
beginning of every season on the basis of the company’s business plan, demands, preferences
and other requirements of stores in various regions and on the basis of a review of the
last year’s performance.
Distribution and marketing
To ensure that merchandise flows directly to the right outlets in a timely and cost efficient
manner, the retailing plan is supported with a detailed logistics plan. This includes setting up
of outlets in various regions, inventory management, warehouse management and supply
chain management. The plan is then shared with the various departments, namely
merchandising and production which are responsible for their respective activities.
The distribution and marketing team members are spread across the country and work on
region-wise basis. Periodic reporting to the central levels at corporate office and co-ordination
with other divisions is maintained to ensure smooth and uninterrupted distribution flows.
Further, their custom designed computer application permits better control of inventory
thereby lowering inventory holding costs.
Their restated total income and restated profit after taxes for the years ended March 31,
2003, 2004, 2005, 2006 and 2007 are summarized below:
(In Rs. Million)
Particulars Year ended Year Year Year Year
March 31, ended ended ended ended
2003 March March March March
31, 31, 31, 31,
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Total Income 223.18 317.53 581.46 1,583.85 4,036.17
Profit after tax 4.32 8.82 19.29 131.98 344.87
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RESEARCH METHODOLOGY:
In this review of available information about a brand, the primary objective is to generate
hypothesis concerning the key ‘assets’ of the brand that are likely to mediate its equity. These
hypotheses will help guide and frame the measures of brand equity that should be used in any
research that is conducted. Also, depending upon the brand’s marketing strategy; a researcher may
also want to consider the information under review in light of other potentially related issues, for
example: possible line or brand extension.
Up to this point the discussion has centered on those things it is necessary to understand before
actually measuring brand equity. Now it is time to choose appropriate measures of brand equity.
First, a number of techniques should be used to gain an understanding of its nature.
Research design
This study was conducted as a factorial experiment to know about the consumer’s perceptions in
Chapter-3
RESEARCH METHODOLOGY AND
OBJECTIVES
which design factors of different branded clothes , quality, brand image, celebrity endorsement,
pricing, store atmosphere, and method of information display, were manipulated. The independent
variables are both the quality and pricing. The dependent variables were three store images (safety,
convenience, and entertainment) and consumers’ expectation of merchandise quality. These two
dependent variables were measured on a five-point Likert-type scale (5—strongly agree; 1—
strongly disagree) asking the respondent to indicate their level of agreement to the statement for a
particular web site created for this study. Safety measures include consumers’ perceived functional
and financial risks, and privacy issues. Convenience measures include consumer’s perceptions that
the store makes shopping easy and saves time and effort. Entertainment measures reflect an
‘‘enjoyable shopping experience’’ in a store. The merchandise quality variable involved quality of
fabric, design and construction of the clothing item.
RESEARCH OBJECTIVES:
The research concentrates on consumer perception in two different brands in five major areas
which are discussed as follows:
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Accessing the strength of the brand equity: The most common measures of brand equity
involve measuring its strength. A researcher needs to know about awareness and preference, who
is buying the brand, and the effects of price. These are the practical measures that “describe” a
brand and its users, and where it stands in the market relative to its competitors. But, this does not
tell a researcher why, or what can be done to positive effect brand equity.
(i) CORE LOYALTY: Traditionally, researchers look at purchase behavior and infer
loyalty. Brand loyalty is a function of people’s attitude toward both brands and the
category, and measures must take this into account.
While it is important to identify and understand these loyal users, in reality there will
be more ‘switchers’, those users who buy the brand but also buy competitors brands as
well. Strategically these brand switchers are more important because that is where the
brand’s growth is most likely to come from.
(ii) Profiling brand users: Determining the profile of brand users is perhaps the most
common use of the quantitative research. Profile measures are useful to researchers
because they provide an idea of which it is that uses their brand. The most common
measures for profiling brand users reflect general level characteristics of a market:
demographics (age, income etc), lifestyle and psychographics (outgoing, conservative).
Like all the assessments of brand equity, profile measures reflect the results of brand
equity. Some brands are seen as ‘young’, some as ‘old’, ‘cutting edge’ etc.
(iii) Brand image ownership: Benefits are either attributes, subjective considerations, or
emotions, that are associated with a brand. In positioning a brand, benefits are selected
that are important to the brand’s target market and that they feel the brand can deliver.
The type of benefit selected will suggest the orientation of the benefit claim, which
may looked at in terms of rational, emotional, relational, or value consideration.
(iv) Brand attitude: Brand equity is a result of brand attitude, and this is what provides the
key to its understanding. It is this understanding that ensures an effective positioning,
and the ability to adjust that positioning, and the ability to adjust that positioning over
time as needed to continue building and sustaining positive brand equity.
What we are looking to include in measuring brand attitude are those benefits
associated with the category and the benefit claims for the brand in it that define the
positioning of the brand.
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Chapter-4
DATA ANALYSIS &INTERPRETATION
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Data Analysis and Interpretation:
Based on Sex
Valid Cumulative
Frequency Percent Percent Percent
Male 66 66.0 66.0 66.0
Female 34 34.0 34.0 100.0
Total 100 100.0 100.0
Data was collected at Punjagutta, Thirumal giri (near paradise), city centre mall & GVK mall.
Data interpretation: We went for convenience sampling & From the above table we can see
that the sample was dominated by male consumers as out of 100. 66% were male and only
34% were female consumer.
Based on Status
Frequenc
y Percent Valid Percent Cumulative Percent
Valid Single 55 55.0 55.0 55.0
Marrie 45 45.0 45.0 100.0
d
Total 100 100.0 100.0
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Data was collected at Punjagutta, Thirumal giri (near paradise),city centre mall & GVK
mall.
Data interpretation: We went for convenience sampling & From the above table we
can see that the sample was dominated by unmarried youth consumers as out of 100.
69% were single and only 31% were married consumer.
Based On Age
Valid
Frequency Percent Percent Cumulative Percent
Valid 18-24 35 35.0 35.0 35
24-30 26 26.0 26.0 61
30-36 20 20.0 20.0 81
36-42 9 9.0 9.0 90
42-48 6 6.0 6.0 96
>48 4 4.0 4.0 100
Total 100 100.0 100.0
Data was collected at Punjagutta, Thirumal giri (near paradise),city centre mall & GVK mall.
Data interpretation: We went for convenience sampling & From the above table we can see that
the sample was dominated (35%) by the youth consumers aged between 18-24 followed by
consumer aged between 24-30 (26%), 30-36(20%),36-42(9%),42-48(6%),48 & above(4%)
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Based On Occupation
Valid Cumulative
Frequency Percent Percent Percent
Student 40 40.0 40.0 40.0
Professional 22 22.0 22.0 62.0
Govt. 15 15.0 15.0 77.0
Employee
Businessman 17 17.0 17.0 94.0
Home maker 6 6.0 6.0 100.0
Total 100 100.0 100.0
Data was collected at Punjagutta, Thirumal giri (near paradise), city centre mall & GVK mall.
Data interpretation: We went for convenience sampling & From the above table we can see that
most of the consumer for the branded clothes were youth in which mostly were students (40%)
followed by professtionals (22%),govt. Employees(15%),businessmen(17%) & home maker (6%).
Question-1
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Total 100 100.0 100.0
Data was collected at Punjagutta, Thirumal giri (near paradise), city centre mall & GVK mall.
Data interpretation: We went for convenience sampling & from the above table we can see that
most of the consumer were brand conscious and were preferring of buying branded clothes i.e
87%.
Question-2
Data was collected at Punjagutta, Thirumal giri (near paradise), city centre mall & GVK mall.
Data interpretation: We went for convenience sampling & from the above table we can see that
though most of them prefer buying branded clothes nut they are not regular buyers of it as only
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17%. Whereas sample suggests that people wear branded clothes on special occations(35%) and
sometimes(39%). Boosting fact was that only 9% people don’t prefer wearing branded clothes.
Question-3
Data was collected at Punjagutta, Thirumal giri (near paradise), city centre mall & GVK mall.
Data interpretation: We went for convenience sampling & From the above table we can see that
levis(42%) with its high cost and low cost range and brand image is more appreciated and
accepted as a brand compare to koutons (34%) and other brands(24%).
Question-4
Data was collected at Punjagutta, Thirumal giri (near paradise), city centre mall & GVK mall.
Data interpretation: We went for convenience sampling & From the above table we can see that
people prefer to buy mostly branded formals(38%) and branded casuals (39%) whereas they are
not so keen in spending more in night dresses hence don’t prefer buying branded stuff frequently.
Though they prefer for going for some of the branded sportswear.
Question-5
Data was collected at Punjagutta, Thirumal giri (near paradise), city centre mall & GVK mall.
Data interpretation: We went for convenience sampling & from the above table we can see that
most of them (79%) feel confident while wearing branded clothes whereas 21% doesn’t feel so.
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Question-6
Data was collected at Punjagutta, Thirumal giri (near paradise), city centre mall & GVK mall.
Data interpretation: We went for convenience sampling & From the above table we can see that as
they feel it to be a status symbol most of them (72%) feel that they are more appreciated by their
peers when they are wearing branded clothes. Whereas 28% don’t.
Question-7
Valid
Frequenc Perce Perce Cumulati
y nt nt ve Percent
Vali Strongl 10 10.0 10.0 10.0
d y
Disagre
e
Disagre 35 35.0 35.0 45.0
e
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Neutral 21 21.0 21.0 66.0
Agree 20 20.0 20.0 86.0
Strongl 14 14.0 14.0 100.0
y Agree
Total 100 100.0 100.0
Data was collected at Punjagutta, Thirumal giri (near paradise), city centre mall & GVK mall.
Sample size- 100
Data interpretation: We went for convenience sampling & From the above table we can see that
people have a very mixed opinion on effect of store ambience on their buying decision and
perception towards a brand as 35% disagree, 10% strongly disagree with this fact, whereas 21%
have a neutral opinion that they were not very sure, 20% agree and 14% strongly agree with this
fact that store ambience affect their perception towards a brand.
Question-8
Valid Cumulati
Frequen Perce Perce ve
cy nt nt Percent
Vali Brand 31 31.0 31.0 31.0
d image
Quality 12 12.0 12.0 43.0
Pricing 11 11.0 11.0 54.0
Availabili 7 7.0 7.0 61.0
ty
Variety 14 14.0 14.0 75.0
Sizes 25 25.0 25.0 100.0
Total 100 100.0 100.0
Data was collected at Punjagutta, Thirumal giri (near paradise), city centre mall & GVK mall.
Sample size- 100
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Data interpretation: We went for convenience sampling & From the above table we can see that
they go for brand image and first then for variety, quality, pricing, and availability.
QUESTION-9
Column1 Levis Koutons
Brand image 2 1
Quality 2 1
Pricing 1 2
Avalibility 2 1
Variety 2 1
Sizes 1 2
Data interpretation- from the above chart we can see that consumer perception towards both the
brands are varied, they prefer koutons above levis in terms of pricing and sizes where as levis had
an edge over koutons in terms of brand image, quality, availability, and variety.
QUESTION- 10
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Levis Koutons
Retail outlet Store Store
Product Assortment 2 1
Pricing 1 2
Store design &
ambience 2 1
Data interpretation- From the above data and chart it is clear that consumer had a vivid perception
for the two brand stores and they rate levis above koutons in terms of store ambience and product
assortment where as in terms of pricing koutons had an upper edge
LIMITATIONS
Every work has its own limitation. Limitations are extent to which the process should not
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FINDINGS AND SUGGESSTIONS
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FINDINGS
There is a paradigm shift in Indian consumer perception from unbranded clothing to
branded fashionable clothing
With globalization and increase in income level consumers had become more brand
conscious
Medium and low budgeted Indian brand are capturing the market of international brands
Youth consumers are more brand conscious mostly students and young professionals
More than 85 % people prefer buying branded clothes which is a sign of consumer
changing perception towards branded clothes from unbranded clothing.
Though most of them prefer buying branded clothes nut they are not regular buyers of it as
only 17%. Whereas sample suggests that people wear branded clothes on special occations
(35%) and sometimes (39%).
Levis (42%) with brand image is more appreciated and accepted as a brand compare to
koutons (34%) and other brands (24%)
People prefer to buy mostly branded formals and branded casuals whereas they are not so
keen in spending more in night dresses hence don’t prefer buying branded stuff frequently.
Though they prefer for going for some of the branded sportswear.
Most of them feel confident while wearing branded clothes
Most of them feel it to be a status symbol and feel that they are more appreciated by their
peers when they are wearing branded clothes.
People have a very mixed opinion on effect of store ambience on their buying decision and
perception towards a brand
Peoples prefer buying a brand based on its brand image first then for variety, quality,
pricing, and availability.
Consumer perception towards both the brands are varied, they prefer koutons above levis
in terms of pricing and sizes where as levis had an edge over koutons in terms of brand
image, quality, availability, and variety.
Consumer had a vivid perception for the two brand stores and they rate levis above
koutons in terms of store ambience and product assortment where as in terms of pricing
koutons had an upper edge
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Suggestions
Though urban market for the branded clothes is very much good and growing companies
need to focus their business to other untapped market of small towns and create brand
consciousness. a
Both brands like levis and koutons need to diversify their product range. Levis like
premium brands need to came up with some low cost brand to capture market of local low
cost brand ranging price between 400 to 800. Whereas koutons like medium low cost need
to tap high class public and international market with a really good international quality
premier product
They need to came up with more innovative and eye catching offers and advertising
concept to capture the clothing market in changing fashion scenario of Indian fashion
industry.
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CONCLUSION
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CONCLUSION
In defining the target segments, what we have done is to cover the medium to high potential
consumers that international and national brands can target in the Indian context. We have parallel
mapped these segment values with those of some brands that have seen success in the Indian
market. We also took a step forward and scanned the international market for brands that could
possibly find footing in India. In doing so,we able to validate our value findings with potential
fashion brands. The trends that we have aligned with the segments are the strongest that stood out
in the Indian fashion multiplicity. And as stated before, they echo the cultural and socio economic
aspects of a new India, are influenced by global developments in fashion and of course, reflect a
revival of age-old intricate techniques. These trends mainly concern the urban and semi-urban
crowd. Macro trends like haute meltdown, direct fallout of the economic gloom, are more transient
in nature.
However, others like Macro trends 2 and 3 have almost become lifestyles or integral parts of
lifestyles. They will see a much longer lifecycle before dying out or morphing into something
different. Trend 4 on the other hand, is almost permanent as a concept. However, it will keep
seeing numerous interpretations, some short-lived almost bordering on fads, others which stay on a
little longer and still others which probably achieve cult status and are around for a very long time.
In all this, our approach has been as non-linear as possible. And our research in other areas like
retail and shopper behaviour, help in gaining further insight into the consumers mind.
Fashion in India is at the threshold of a new era. People are becoming mere brand conscious with
the increase in income level. Brands and individuals would do well to understand the finer aspects
of the scenario, and venture out to capitalize on the opportunities.
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BIBLIOGRAPHY:
http://www.levistrauss.com/
http://us.levi.com/home/index.jsp
http://us.levi.com/shop/index.jsp?categoryId=3146842
www.levistrauss.com/
www.koutonsparivar.com
www.koutonsparivar.com/means_wear.php
www.sebi.gov.in/dp/koutonsdraft.pdf
www.in.kpmg.com
www.google.co.in
BIBLIOGRAPHY
Business India and business world
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A Study on consumer’s perception about branded clothing in India:
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Please give your ratings on the scale of 1 and 2 (2 for most preferred)
Levis Koutons
Brand image
Quality
Pricing
Availability
Variety
Sizes
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10. Rank your preference of retail store based on the following parameters:
Please give your ratings on the scale of 1 and 2 (2 for most preferred)
Retail Outlet Levis Store Koutons Store
Product widest selection of national
assortment brand merchandise
Overall quality
Best value for your money
Prices the lowest prices overall
Easily accessible
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