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Presented By:
Chandranath Banerjee
Debsadhan Chaudhary Kunal Dadlani Prantik Ghosh Rajat Saxena
CONTENTS
Introduction Apparel Industry Analysis of Arvinds Brand Portfolio Arvinds Competition Growth Strategies SWOT Analysis PORTERS FIVE FORCES Analysis Branding Strategies Issues Conclusion
INTRODUCTION
Established in 1931 by the Lalbhai brothers of Ahmedabad.
Birth of three new units in 1993 - textile, telecom and garments division. Arvind Brands Ltd was a Rs. 3.50 million subsidiary Arvind Mills Major stakeholder - ICICI , 2004. Arvind Mills reacquired ICICIs stake by raising US$ 37.19 million Arvind Brands became 100% subsidiary of Arvind Mills in 2005.
INTRODUCTION
All the brands under the Arvind name were growing at a healthy rate in 2004. Plans to sustain growth by increasing retail presence. Saif Ali Khan appointed brand ambassador for the Newport brand in 2005.
The number and nature of different products linked to the brands sold by a firm. Depends on: Aggregate market factors Category factors Environmental factors
Ruf n Tuf
1997 15-30 299-699
Excalibur
1995 18 & Above 500-1000 ----
Hike in exise to Hike in exise to Distribution 8% 8% hurdle own outlet Abhishek Bachchan Who Needs Phoren? own outlet Saif Ali Khan The Measure of Success Big Bazaar Akshay kumar ----
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International Brands
Arrow Licensed Lee Wrangler VF corporation Tommy Hilfiger JV with Murjani group
18 & Above Introduced mens sportswear, mens Jeanswear, junior Jeanswear
17-25 &25-40 Fashion conscious Love wearing denim on weekend Retail ambience was given importance
Competition
Madhura Garments
Its was the garment division of Indian Rayon and Industries Ltd. A flagship company of the A V Birla Group Company. Owns perpetual license for premier brands like Louis Philippe, Van Heusen, Allen Solly, Peter England, Byford, Elements and SF (San Frisco). Preferred global supplier of international brands like- Marks and Spencers, Tommy Hilfiger, Polo, Ralph Lauren, and several others. It distributes its brands through its own retail chains namely Planet Fashion and Trouser Town.
INDUS LEAGUE
Indus-League Clothing Ltd., was founded on 14th April 1999 by a team of eight top-flight management professionals from the clothing industry. These professionals have established a reputation for creating and building some of the most successful fashion brands in South Asia and the Middle East. Within an year Indus League had transformed itself from a new entrant into a company that has launched two fashion brands namely Indigo Nation and Scullers
Indus-League has a portfolio of Three proprietary brands - Indigo Nation , Scullers and Jealous covering different segments of the fashion market.
PROVOGUE
The Company was incorporated on November 11, 1997 as Acme Clothing Private Limited. Provogue stands for fashion and not pure apparel. Its designs are contemporary and cutting edge Provogues brand statement Redefining fashion and its innovative merchandise have created a niche in the minds of its consumers. The brand is retailed through selective stores in the country and leading National Chain Stores like Shopper's Stop, Lifestyle, Globus, Westside etc. More importantly, Provogue is also retailed through a chain of exclusive brand outlets called "Provogue Studio" PROVOGUES PRODUCT RANGE INCLUDE: INNERWEAR , T-SHIRT , BOTTOMS , JACKETS & BLAZERS , DENIM , FORMAL SHIRTS , LINEN SHIRTS , CASUAL SHIRTS, FOOTWEAR , SUNGLASSES , FRAGRANCE , CAPS, BAGS , BELTS
Clustering of Brands
Launching of Spectrumplaza.com
Tie ups with Indiatimes.com and rediff.com
SWOT ANALYSIS
STRENGTHS
Strong portfolio of domestic and international brands
Economies of scale through complete integration Latest manufacturing tools Wide geographical presence
WEAKNESS
Lack of fresh ideas Presence in only big cities Not doing enough to build brand equity
OPPORTUNITIES
THREATS
Competitors like Raymond, Bombay Dyeing, Madura Garments
COMPETITIVE RIVALRY
Huge number of competitors
Competitors adopting aggressive growth strategies as well as eyeing top cities Stiff competition from small town stores and specialty stores
THREAT OF SUBSTITUTES
Plenty of offerings in premium and super premium category
BRAND HIERARCHY
Corporate or Company Brand: Arvind Mills
marketing strategies
In this case, Arvinds PODs are not well defined. Their offering, target audience and positioning is very similar to its competitors.
CHANNEL STRATEGIES
Indirect Channels
ex. Multi brand store, small town retailers
Direct Channel
ex. Company-owned stores
Arvind was shifting its focus from multi brand and small town stores to company-owned stores
Push Strategies
are directed towards distributors and retailers. Ex. Trade discounts
Arvind mainly concentrated on Pull strategy ex. endorsements by Bollywood stars like Akshay & Saif. Push Strategies werent required as they were concentrating on company-owned stores
OTHER CONCEPTS
Brand Extension: when different products are manufactured under same brand name. Ex. Arrow started off as a shirts-only brand then diversified into casuals, jeans and accessories like belts, wallets etc.
Forward Integration: Arvind Mills, which manufactured fabrics, integrated vertically forward by launching its in-house brands and retail stores.
Brand Endorsement: associating a popular figure as the brand ambassador to give the brand a personality and strengthen its positioning ex. Action star Akshay Kumar was roped in to endorse Ruf n Tuf to give it a tough & rugged look.
ISSUES
Lack of new ideas Inability to keep up with the changing market demands Unwilling to place its products in multi-brand stores