“To study the market for launch of a new brand of

jeans”

Research for Management Decision

Towards The Partial Fulfillment of

Masters in Business Management

Submitted to:
Dr. Veenapani S.
Submitted on: 15th Sep 2010

Submitted by:

Anant Jain

PRN: 10020741040

MBA-I

1
 Table of Contents
Acknowledgement..………………………………………………………….I
Table of Illustrations.……………..…………………………………………II
Executive Summary..……………….………………………………………III

1. Introduction
1.1 Introduction 6
1.2 Literature Review 7
1.3 Conceptual Review of project area 8
1.3 Problem Statement 9
1.4 Research Objective 9

2. Research Methodology
2.1 Scope of Project 10
2.2 Research Design 10
2.3 Sampling Design 10
2.4 Data Collection 10
2.5 Demographics 11

3. Analysis 17

4. Findings ,Decision and recommendations 22

5. Limitations 22

6. Conclusion 22

7. Bibliography 23

8. Annexure 24

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 Acknowledgement
This report has been developed as a part of subject Research for Management
Decisions. The subject has been very helpful in developing insights as to how we as future
managers should consumer behavior before entering the market. The use of various statistical
tools like SPSS has made the project all the more easy and insightful.
We would like to thank our respected professor Dr. Veenapani for the immense help. The
project would not have been possible without the help she offered.

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 Table of Illustration/ Charts/ Annexure
Figure no Description Page

1 Figure denoting Age distribution of sample 11

2 Figure denoting Gender distribution of sample 11
3 Figure denoting Income distribution of sample 12
4 Figure denoting Education qualification of sample 12
5 Figure denoting Occupation distribution 12
6 Figure denoting Lifestyle of sample 13
7 Figure denoting Preferred brands by the sample 13
8 Figure denoting Preferred location by sample 14
9 Figure denoting Membership card Preference 14
10 Figure denoting Purchase frequency by the sample 15
11 Figure denoting Type of jeans preferred. 15
12 Figure denoting preferred Purchasing Time 16
13 Figure denoting distribution for Medium of advertisement 16
14 Figure denoting KMO distribution 17
15 Figure denoting Male v/s Female distribution 17
16 Figure denoting affordable price range distribution 18
17 Figure for Quick cluster Analysis 19
18 Figure for Rotating component matrix 21

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 Executive Summary
The following project aims to study the market for launch of a new brand of jeans. For the
same, we conducted a survey using Simple Random Sampling and used the tools and techniques
learnt in the Market Research course to identify the cues that can be leveraged upon to create
marketing and positioning strategy for the product. Our primary objective was to segment the
market into segments based on their perceptions, attitude and behavior and identify the most
lucrative segments to launch a new brand of jeans. We also intended to study the behavior of the
consumers in this segment, which shall aid in creating a positioning statement for the product. By
analyzing the data collected through online surveys from 130 respondents, we arrived at four
clusters each one differing from the others in terms of its behaviors and attitudes towards buying
of jeans. Out of these segments we picked out the cluster that preferred quality and comfort at
reasonable prices and was not brand-conscious. This is because; our brand is new in the market
and needs to be catered to an audience which is open to all sorts of brands. Also, we intend to
provide a product that sells upon the premise of good quality and comfort yet positioned at a price
lower than established brands. Hence, we expect a good acceptance of the product by identifying
the right target segment with fitting buying behavior.

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1.1 Introduction:
With the Indian youth becoming increasingly fashion conscious and with spending power
being consistently on the rise, making life easier for the fast-growing 'premium' category of jeans
wear brands. On the other hand, it has been a tough time for other segments of the business - one
of the underperformers being a mass-market jeans wear brand.
Denim wear consumption in India and the business is itself changing almost everyday
with new modification and entry of new brands, it is also becoming a part of its action by
determining the size, character and make up and it also requires a profound market research
study.
In addition to women's wear, the scenario of market in denim wear brand is prospective
for the kids wear market. For children, in addition to just clothing, denim can perform more
significantly in accessories and functional products. However, there remain some doubts on how
to deal with the attention of the 10-15 years age segment. This is a consumer set that does not fit
into most jeanswear brands' core target - 16-25 years - and is also not quite prepared to be treated
as 'kids'. For denim, there exists a large base in this age group, which will willingly adopt
structured merchandise that connects with their distinct preferences..
While judging on the part of the entry strategies for various international brands, the most
challenging job is to determine the right price points. There are many aspects - parity with
international prices, global positioning, perceived image in the new market, and anticipated
positioning in the new market connecting to incumbent brands. And most of the times, a mix of
these parameters and their weights is applied to identify with certain other, not likely to definite
factors in mind. Unlike developed or established markets, it has much more space to expand on
the premium end once the brand is established and customers are well-informed about the
differentiation, and the only one factor that has to keep in mind is that the Indian market is
growth-driven and is fueled by inflation.
Whereas the denim brands for their continued existence have found some respite at the
premium end, the real speed where denim belongs is still uninfluenced. The approximations are
that at a price point of Rs.300 for denim jeans, the market could be as big as Rs.2000 crore i.e.
larger in value compared to the whole market existed at present. However, the biggest challenge
lies all across the supply chain - be it the distribution or retail at front-end or the highly efficient
manufacturing at the other end.
The markets drift evidently prove that the denim may be going for another decline soon,
but it give the impression that with all these new products and innovations, premium brands may
be capable to remain in much improved phase.
In the end, to wait on the opportunity in premium brand, it is surprised to note that all
potential segments are moreover already in its position or can easily be shaped. Though, the
absent portion is an assertive company to set all these segments together and switch over to this
potential into real business

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1.2 Literature Review:
A report in Businessline(Thursday, Jan 30, 2003) confirmed that the total current
jeanswear market in India is pegged at around 25 million pairs out of which 1.25 million falls in
the premium segment and growing at five per cent, 8.2 million in the standard segment and
emerging at 15 per cent, 14 million in the value pack with 10 per cent growth.But a buoyant
market alone won't ensure the success of a new jeans brand as the customer's mind could well
be colonised by the big brands. In the recent past, there were attempts to take on the mega
brands.[1]

Sanjeev Mohanty of Mudra Garments(Thursday, Jan 30, 2003) said there wasn't enough
innovation in fabric, finishes and washing indicating why a section of the youth was buying into
knock-offs from Malaysia and Thailand.[1]

A label tag is a must now on the back waist panel of even tailored garments. As regards
to contribution of the branded section in each category percentages may vary, approximately 79
percent of the jeans sold in India tagged with label, the rest of jeans are supplied by tailors and
localised manufacturers with no-name. Daily in India, there are number of small stores where
customised jeans are stitched for as little as Rs 200. And their customers are not only Indians,
but Westerners too, and you can find a long queue of Westerners, waiting to purchase
customised jeanswear to be used as wear and throw and it is because of the reality for the
Westerners that the availability of a customized piece of clothing at very low pricing. On the
other hand, the more and more affluent middle class is amazingly responsive about the charm of
branding.[2]
According to a survey report, by considering the aspects of socio-economic, cultural,
emotional and functional backgrounds and its applications there are four type of branded
jeanswear market available in India.

• Super Premium Segment (Rs. 2000+)

• Premium Segment (Rs. 1000-2000)

• Middle Segment (Rs. 500-1000)

• Economy Segment (Rs. 300-500)

At the lower and unorganized end of jeanswear market the price is assumed as under Rs.300.
Where as most Indian brands cover both Middle and Premium categories.[2]
The Economy and lower price bands appear to have been unnoticed in the jeanswear brand
to move ahead. In India, there are few exceptions, like Newport in the mid-nineties and at
present Ruf n Tuf (via the Arvind Brands and Pantaloon Retail joint effort) attempted to capture
this untapped and big market opportunity[2].

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1.3 Conceptual Review of the Project:
IV’s
Age

Gender

Fabric

Life Style

DV
Purchase Launch of new
Frequency Jeans Brand

Advertisement

Buying
Locations
Budget

Price
MV
Style

Fitting

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Comfort
1.4 Problem Statement:
To study the market for launch of a new brand of jeans

1.5 Research Objective:

• To segment the market based on attributes and consumer purchase behavior for Jeans

• To identify the market segments for positioning a new brand of Jeans

• To create a positioning statement for the new brand of Jeans in these segments

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2. Methodology Adopted:

2.1 Scope of the project:

The study covers the various factors which affect the launch of a new jeans brand in
India. The scope is also limited to only few main parameters which are involved while launching
a new Jeans Brand and only those have been taken into consideration.

2.2 Research Design:

The research design used here is a descriptive type of research. Here the factors affecting
to the launch of a new jeans brand are sorted out and are provided to the respondents to rank
those factors according to their preferences. The new brand would be positioned in the market
considering all these preferences provided by the customers.

2.3 Population & Sample:

The population of the study comprised primarily of Students in the age group of 21 to 25
years. The sampling method that we used was Simple Random Sampling. A questionnaire was
used as a tool for the study, which was filled in by 130 people.

2.3 Simple Random Sampling:

A simple random sample is a subset of individuals (a sample) chosen from a larger set (a
population). In this form of sampling, each individual is chosen randomly and entirely by
chance, such that each individual has the same probability of being chosen at any stage during
the sampling process. In small populations such sampling is typically done "without
replacement", i.e., we have deliberately avoided choosing any member of the population more
than once. An unbiased random selection of individuals is important so that in the long run, the
sample represents the population.

2.4 Data Collection:

For this research the data was collected by means of an online survey. The sample size is
130.

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2.5 Demographics:
We need to consider the responses of the respondents on following key factors to do the data
analysis.

Fig. 1
The above figure shows that the maximum respondents are from an age group of 21-25

Fig. 2
The above figure shows the division of respondent based on gender.

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Income(in lacs)

Fig. 3
The above figure shows the annual income distribution among the respondent.

Fig. 4
The above figure depicts the educational qualification of the respondents. The majority of
respondent have been in College Graduates.

Fig. 5
The above figure categorizes the respondents based on their Occupation. Here it is found that the
majority of the respondents are students.

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 Fig. 6
The above figure depicts what lifestyle do the customer lives. This data can be used to design the
new brand accordingly. Majority of the respondents are outgoing and love to wear jeans in their
daily life. Also the respondent have a liking toward adventures so we need to design the new brand
in such a style which is best caters both these category.

Fig.7
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 The above figure shows which are the present brand that are used and preferred by the customers.
So we need to embed some of the good features of these preferred brands in the new brand that is to
be launched.

Fig. 8
The above figure shows that the customer prefer buying from malls. To sell the new brand
malls should be the preferred locations.

Fig. 9
The above figure depicts that customers are not influenced by the membership card facility.

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 Fig. 10
The above figure clearly shows that the purchasing pattern that customers show is that they go on
buying a jeans every 3 or 6 months. The new variety launches must take place during this period so that
every new trend gets some breathing time in the market.

Fig. 11
The above figure depicts that customer prefer straight fit jeans over other fits. The new brand must
consider this data to design jeans.

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Best time to purchase

Fig. 12
The above figure show that the customers prefer to purchase during the discount offers. So to
penetrate in the existing market the new brand must be launched with some attractive discount
schemes.

Fig. 13
The above figure provides information related to advertisement techniques to be used for effective
launch. It is observed that Newspapers and magazines and Hoardings are the most effective way to
advertise.

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3. Analysis:
Sample Adequacy Check:
KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling

Adequacy. .621

Bartlett's Test of Approx. Chi-Square 654.153

Sphericity Df 210
Sig. .000
Fig. 14
Here it is observed that the factors which are taken into consideration are adequate for the research
as the KMO measure of Sampling is 0.621 which is greater than 0.5.

Spending of Males v/s Female

Group Statistics

Std. Error
Gender N Mean Std. Deviation Mean
Affordable Price Male 95 1831.25 816.415 83.762
range (upto) Female 35 2217.86 1538.950 260.130

Fig. 15
The above figure shows the relations between the spending pattern of Male & Females. As the
significance is “.192 “ it is concluded that there is no significance difference between the spending
of Males & Females.

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 Fig. 16

The above figure has taken in to consideration the price range suggested by the respondents and it is
observed that the on an average the customers are ready to spend approx Rs. 1950.

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The first tool that was used on the collated data was the Quick Cluster.
Quick Cluster
Final Cluster Centers
Cluster
1 2 3 4 5 6 7
Rate the following factors
on a scale of 1-5 which
affect your choice of Jeans 4 4 3 4 4 2 3
[Fabric (Stretchable/ Non-
stretchable)]

4 4 2 4 4 1 3
[Style (embellished, plain,
rugged)]

[Fitting (slim, straight, boot 4 5 2 5 5 1 3

cut, low/medium/high
waist)]

4 4 4 5 4 1 2
[Colors]

4 4 4 5 3 2 3
[Shades]

4 4 3 3 4 2 2
[Price]

4 3 3 4 3 2 4
[Handfeel (Soft/Hard) ]

2 1 5 2 1 5 2
[Brand Ambassador]

4 2 3 4 4 3 2
[Brand Value ]

5 5 1 5 5 1 4
[Comfort]

3 2 2 4 2 2 2
[Logo]

4 2 2 2 2 3 4
[Warranty Period]

Fig. 17

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Number of Cases in each Cluster
Cluster 1 38.000
2 31.000
3 2.000
4 18.000
5 35.000
6 3.000
7 3.000
Valid 130.000
Missing 100.000
Defining clusters:
Cluster 1 – The people in this cluster give importance to all the factors except the Brand
ambassador, Brand Value and logo
Cluster 2 – The people in this cluster have the same preference as the cluster 1 people. But for
this cluster of people the brand Ambassador has the lowest preference also they are
not much inclined towards the brand value and brand logo.
Cluster 3 – Rejected as due to less size
Cluster 4 – The people in this group give high preference to fitting, color, shades and brand value
and give the minimum preference to warranty and brand ambassador.
Cluster 5- The people in this cluster give more preference to comfort ,fitting and brand value
and low to brand ambassador.
Cluster 6- The people in this cluster have very high preference for brand ambassador and low
for style, fitting, comfort. But rejected due to less size
Cluster 7- Rejected due to less size
As our brand is new, from the above data, we select the CLUSTER 2 as it gives less
priority to brand related information.

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Factor Analysis: Rotated Component Matrix
Rotated Component Matrix(a)
Component
1 2 3 4
Rate the following factors on a scale
of 1-5 which affect your choice of
.696 -.080 -.175 .123
Jeans [Fabric (Stretchable/ Non-
stretchable)]

[Style (embellished, plain, rugged)] .727 .131 .158 -.010

[Fitting (slim, straight, boot cut, .859 -.044 .128 -.061

low/medium/high waist)]

[Colors] .292 .143 .807 .097

[Shades] -.035 .057 .888 .129

[Price] .164 -.094 .270 .726

[Handfeel (Soft/Hard) ] .123 .003 .086 .742

[Brand Ambassador] -.423 .629 -.164 .052

[Brand Value ] .142 .793 .171 .012

[Comfort] .747 -.052 .229 .248

[Logo] .034 .790 .127 .016

[Warranty Period] -.193 .407 -.168 .613

Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a Rotation converged in 5 iterations. Fig. 18

By observation of the Rotated Component Matrix obtained through Factor Analysis, we

identified four components which are explained as follows:

Component1 – Basic: Comfort, Fitting ,Style, Fabric

Component2 – Brand Value, Brand ambassador, Logo

Component3 –Colors, Shades

Component4 – Price ,hand feel, warranty.

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4. Finding, Decisions and Recommendations:
Target Segment:
We will be targeting the population which falls in the 2nd cluster i.e. consumers who give
importance to quality and comfort at low prices and are not brand conscious. The primary reason to
choose this cluster is that our brand is a new brand in the market and does not have a brand-salience
and awareness. Hence, for the launch we have targeted a market which is not brand conscious but is
open to experiments given that good quality and good comfort is offered at convenient prices.

Positioning:
The brand of the jeans shall be positioned as a high-quality high-comfort low-price brand. The
pricing shall be lower than those of established brands to give it a value-for-money positioning. It
will be similar to that of the In-house brands. As we have seen from the affordable price range
figure the mean of the price comfortable to the customers is 1935 Rs

The segment that we are targeting is primarily formed by young students between the age of 21-
25. As discussed earlier, the primary behavior of this segment is characterized by a preference to
quality and comfort at economical prices while there is low preference to brands. It can be quoted
that this behavior might be an outcome of consciousness about looks and image as well as limited
incomes during student life. Hence it forms an ideal segment for our product which provides a value
for proposition giving good quality and comfort at reasonable prices.

5. Limitations:
1. The survey conducted was filled majority by the students.
2. The responses of the business person and house makers were very low.
3. Sample taken might not be appropriate.
4. The responses of consumers may not be genuine
5. Questionnaire prepared may have certain flaws.
6. The usage of the tools like SPSS and Minitab was not made up to the expectations.
7. The credentials provided by the respondent may not be genuine.
8. Sample size is small to make such big decisions.

6. Conclusion:
We will launch our jeans for the youth. It will be targeted to the age group 20-25 and
positioned as the value for money product by keeping the price limited to 2000 Rs.

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7. Bibliography:
Umer Farooq (2009) ‘Marketing Environment and Strategies for a new brand of
Jeans’[online] Available at: http://www.scribd.com/doc/24077038/Marketing-Environment-and-
Strategies-for-a-new-brand-of-Jeans (Accessed on 20th august 2010)

[1]Boby Kurian(2003)’ Madura says it with its jeans’ [online] Available at:
http://www.thehindubusinessline.com/catalyst/2003/01/30/stories/2003013000160300.htm
(Accessed on 1st September 2010)

[2] Gaurav Doshi(2006) ‘India Among Top Jeanswear Market’ [online] Available at:
http://ezinearticles.com/?India-Among-Top-Jeanswear-Market&id=364127 (Accessed on 1st
September)

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8.Annexure:

Questionnaire:
Hey all this is Anant jain. I am conducting a research as my MBA assignment regarding the Launch
of a new jeans brand. So please do kindly give me your valuable feedback and also please do
forward it to your friends so that i can get a broader view of the jeans industry.
* Required

Name
this information will not be shared
Age *
15-20
21-25
26-30
30-35
>35

Gender *
Male
Female

Annual income(in lacs)

0-2
2-4
4-8
8+

Occupation *
Student
Salaried
Bussiness Person
House Maker

Educational Qualification *
High School
Undergraduate
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Graduate
Post Graduate

Which best summarizes your lifestyle? *

Outgoing
Laidback
Adventurous
Party Person
Other:

How often do you purchase a Jeans? *

Rarely
Once in an year
Once in 6 months
Once in 3 months
Once every month

Which brands of Jeans are your most preferred brands? *

Flying Machine

Spykar
Lee
Killer
Levi Strauss
Pepe
Lee Cooper
SF Jeans
Wrangler
UCB
Bare
Kuttons
Other:

Do you find the above brands expensive? *

Yes
No

Preferred buying locations? *

Malls
Multi-Brand Outlet
Exclusive shops

Rate the following factors on a scale of 1-5 which affect your

choice of Jeans *
25
1 being least important and 5 being most important
1 2 3 4 5
Fabric
(Stretchable/ Non
-stretchable)

Style
(embellished,
plain, rugged)

Fitting (slim,
straight, boot
cut,
low/medium/high
waist)

Colors

Shades

Price

Handfeel
(Soft/Hard)

Brand

Ambassador

Brand Value

Comfort

Logo

Warranty Period

What type of jeans do you prefer? *

Straight Fit
Flare cut
Boot cut
Bell Bottom
Skinny Jeans
Flapper
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Baggy
Cargo

Which period is best for jeans purchase? *

Festive Season
Discount offers
Fresh Arrivals
Other:

Does membership card for the respective brand influence your

purchase? *
Yes
No

Affordable Price range (upto) *

Through which medium did you get to know about your preferred
jeans brand? *
Hoardings
Newspapers and Magazines
TV
Radio
Word of Mouth
Other:

Please share any other details that would add value to this
survey.
this field is not mandatory but any suggestions would be appriciated

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