Final Project On Brands (1) ............................................................
Final Project On Brands (1) ............................................................
Final Project On Brands (1) ............................................................
Customer Preferences
towards different Brands of
Apparels
Submitted to:
Submitted by :
Abhinandan malhotra
Assistant Professor
PGDM (2014-16)
CONTENTS
1. ACKNOWLEDGEMENT
2. PREFACE
3. EXECUTIVE SUMMARY
4. ABOUT BRANDS
5. CONSUMER MARKETS OF APPARELS
6. ENVIRONMENT OF APPARELS IN INDIA
7. UNDERSTANDING BUYING PATTERN OF CONSUMERS IN
INDIA
8. CONSUMER PREFERENCE OF APPARELS OF BRANDS
9. RESEARCH METHODOLOGY
10.RESEARCH OBJECTIVE
11.DATA ANALYSIS AND FINDINGS
12.CONCLUSION
13.LIMITATIONS
14.BIBLOGRAPHY
15.ANNEXURE
ACKNOWLEDGEMENT
This project consumed huge amount of work, research and dedication. Still,
implementation would not have been possible if I did not have a support of
many individuals and organizations. Therefore I would like to extend my
sincere gratitude to all of them.
First of all I am thankful to MS. UPASANA KANCHAN for his support and
for providing necessary guidance concerning projects implementation .I am
grateful to him for provision of expertise, and technical support in the
implementation. Without his superior knowledge and experience, the Project
would like in quality of outcomes, and thus his support has been essential. I
would like to express my sincere thanks towards volunteer researchers who
devoted their time and knowledge in the implementation of this project.
Nevertheless, I express my gratitude toward my families and colleagues for
their kind cooperation and encouragement which helped me in completion of
this project.
Abhinandan Malhotra
PREFACE
Last but not the least, I am grateful to all those who happened to be a part of
the successful completion of this project and my mind and heart for going
hand in hand .
Executive summary
Brands build customer loyalty by delivering excellent value no matter the price
point-high, low, or medium. Value includes styling, durability, quality fabrics,
and consistent fit. To the consumer, a brand name represents familiarity,
consistency, and confidence in performance. Brand names when linked with
lifestyle, self-expression, and aspirations epitomize intangibles that are desirable
to the consumer.
Consumers consider fashion as part of an overall budgetary spend, so apparel
purchases now compete directly with other choices from the technology,
entertainment, beauty and general lifestyle categories for the discretionary rupee.
Todays global apparel environment is tougher than ever for brands. There are many
reasons for the emergence of this challenging climate;
From a proliferation of brands-
BRANDS
Brand loyalty
Brand awareness
Perceived quality
Brand associations
Other proprietary assets such as patents, trademarks, and channel
relationships.
Introduction
As per Graca Guedes ,to the three components of fashion style, acceptance and styling,
announced by authors like Frings, Packard et al and Wolse, a fourth element has been added.
Those three components orient this new element the brand, but they are also determined by it.
From this new trend, with social and economic implication, emerge 2 different concepts of
fashion products: the fashion global product and the market segment fashion product.
The market of fashion products is highly competitive market whose main characteristics is
the similar positioning of a large number of brands and, in this respect the brands image
developed by marketing communications can influence the adoption process of the products.
This process, the marketing stimuli, a side with the intention to influence the purchase
decisions must transmit similar messages in all communication support. The harmony of this
complex process must consider such aspects as the brand awareness and the brand image,
both determined by the characteristics of consumers perception.
The image is a mental representation of the brand or product attributes and benefit. It is a
multi dimensional phenomenon that depends on the perception of those attributes and
benefits. In fashion products, both mental representation and its perception are built in a
continuous way, and developed through the image of fashion transmitted by each seasonal
collection and by all activities of marketing communication.
The overall effect of fashion product branding depends on the integration of all the
components of the marketing communication plan, including visual merchandizing, with the
product design. All these three elements have an
impact over the adoption process and a similar final goal: to influence the purchase option of
fashion products through the satisfaction of a certain fashion image demand.
The Indian Economy is soaring. I think Indian people love brands. There isnt
another American designer on this soil, may be because they dont know it, may be
because they dont understand it, may be because they dont care. I care about it. I am
excited about it and I feel very positive that we are going to build a wonderful lifestyle
business here.
Tommy Hilfiger, International fashion icon
Organized retail which still accounts for less than 5% of the market, is
expected to grow at Compound Annual Growth Rate (CAGR) of 40% from
20 Billion $ in
2007 to 107 billion $ by 2013. Indias overall retail sector is expected to rise
to
833 Billion $ by 2013 and to 1.3 trillion $ by 2018, at a CAGR of 10%.
Consequently, as a democratic country with a high growth rates, Indias
retail market opportunity is unchallenged. Consumers spending has risen
sharply as the youth population (more than 33% of the country is below
the age of 15) has been a significant increase in its disposable income. In
the past 4 years alone consumers spending rose an impressive 75%.
But challenges have emerged that could potentially slow the pace of growth
for new global entrants stifling regulations, soaring real estate costs and
fiercely competitive domestic retailer groups. In addition, shopping mall
projects are running resource constraints that are delaying completions and
destructing many retailer entries strategies.
Global retailers, hungry to enter this market, continue to frustrate by
restrictive government regulation. Under Indias current laws which the
government relaxed somewhat in 2006, single brand retailer can own a 51%
majority stake in joint venture with a local partner.
Such relaxed regulation does not extend to multi brand retailer such as WalMart, Tesco and Carrefour, which must operate through franchise or cash &
carry wholesale format. Accordingly, Wal-Mart recently joined forces with
Indian telecom giant Bharti enterprises. Bharti will own retail shop under
the Wal-Mart franchise and Wal Mart will operate logistic, procurement and
storage activities. In the past couple of years, numerous retailers including
the SPAR group, Carrefour, Marks & Spencer and Nautica have entered the
market. Earlier entrants, including Wal-Mart and Metro, have plans for a
blitz across the country. Tesco and Kroger will feel additional pressure as
the situation grows more competitive.
India has one of the youngest populations in the world with 54% of the
population below the age of 25. Discretionary spending has seen a 16% rise
for the urban upper and middle classes and the number of high income
households has grown by 20% year on year since 1995-96. There is an
increasing shift from price consideration to design and quality, as there is a
greater focus on looking and feeling good (apparel as well as fitness). At the
same time, the new Indian consumer is not beguiled by retailed products
which are high on price but commensurately low on value or functionality.
There is an easier acceptance of luxury and an increased willingness to
experiment with mainstream fashion. This results in an increased
tendency towards disposability and casting out -from apparel to cars to
mobile phones to consumer durables. The self-employed segment of the
population has replaced the employed salaried segment as the mainstream
market. 40% of primary wage earners in the top 2-3 social classes in towns
with a population of 1 million or more are self employed professionals and
businessmen. This has driven growth in consumption of productivity goods,
especially mobile phones and two and four-wheelers.
Finally, credit friendliness, drop in interest rates and easy availability of
finance have changed mindsets. Capital expenditure (jewellery, homes, cars)
has shifted to becoming redefined as consumer revenue expenditure, in
addition to consumer durables and loan credit purchases.
The 4 major organized retail sectors are
Food
Groc
ery
Cloth
ing
Book
s
Musi
c
India devotes roughly the same share of their income to apparel as do Chinese
and Brazilian. But the countries lower per capita income levels means overall
spending on apparels is significantly lower, and the habit of Indian shopper
present intriguing challenges for multinationals eyeing the market.
Most important shopping occasions revolved around special events such as
weddings and annual religious festivals a figure dramatically higher than the
one for shoppers in the other emerging markets. Furthermore, to a greater
extent than else were shopping is a family activity in India, nearly 70% of its
shoppers always go to stores with their family, and 74% - more than twice
than average of Brazil, China and Russia view shopping as the best way to
spent time with family. The preference for family oriented shopping is
consistent across age groups, income segments, regions and city sizes.
As in many markets, in India women are the primary decision makers in
apparel purchases for the entire family. But Indias men also have an important
role indeed, half of their husband had a major influence on which stores they
frequented a proportion far higher than Brazil (3%), China (8%) and Russia
(18%). Whats more, India is unusual in that the market for mens apparel is
larger than womens market, where traditional Indian apparel still dominates.
Mass market apparel retailer must therefore find formats and merchandising
approaches that will attract shoppers seeking apparel not only for special
occasion but also appealing to entire family.
Young Indian aged 18 24 years strongly trust brands from their own country
but also believe that foreign brands are of higher quality than local brand.
In India, rather than using only income bands to define category of consumers,
we use the socioeconomic class code established by the Market Research
Society of India, high-end or global consumers are those in socioeconomic
class (SEC A), mass-market consumers are those in SECs B and C, and
struggling consumers are represented by SECs D and E. In addition to
household income the class code incorporate the levels of education and
occupation.
Young generation (Youngistan) frequently goes for the shopping of apparels
which is average of 4.5 trips per six months and average spending is also
much higher than the average spending. This is why the apparel brands are
targeting the youth in BRIC countries including India.
Age groups of 18 24 years and 25 34 years would like to spend more on
apparel if their income increases instead of saving. Most of the youngster
believe that domestic brands can compete with the foreign brands but they
would like to purchase foreign brands.
RESEARCH METHODOLOGY
OBJECTIVES
1 .To find out consumer preference with respect to brands with the help of
primary data.
2. To understand the buying pattern of the consumers.
3. Factors, which help in increasing the sale of apparel.
4. To find out consumer awareness about different apparel brands.
DATA ANALYSIS
1-
COCLUSION- 25% of customers buying only branded products and mostly (50%)
of customer buy branded products when they needed the quality preferable.
No; 14%
Yes; 86%
CONCLUSION- 86% of customer are price sensitive whereas 14% are not.
Puma
UCB
Madame
Woodland
CONCLUSION- 28% of the customer prefer UCB the most favorable or preferred
brand and after that Madame(26%), Woodland with (25%), Nike (19%) and 12% for
Puma.
Variety
Quality
Promotion
Availability
CONCLUSION- As per the survey 15% prefer brands for price, 30% for variety,
32% the most preferred criteria is quality of the product and 12% and 11% for
promotion and availability respectively.
5- Do you think the brand which you are using is value for money?
60
50
40
30
20
10
0
Yes
No
Can't say
CONCLUSION- 52% of customer thought brand is value for money whereas 23%
are not and 25% are cant say or make any comment on it.
Malls
39%
35%
Retail
Online
Others
21%
CONCLUSION- 39% people preferred malls the best place for buying branded
apparels whereas 35% is happy with online shopping, 21% are done their shopping at
retail outlets and 05% from others.
60
50
40
30
20
10
0
Yes
No
Can't say
CONCLUSION- 52% customer done their shopping from the same brand and 38%
prefer other brands also. 08% peoples are doing shopping from different and local
brand.
No; 28%
Yes; 72%
Agree
CONCLUSION- 28% customers are agree that celebrity endorsement influence for
brand selection, 39% somewhat agree with this whereas 18% are strongly disagree and
04% are totally disagree.
45
40
35
30
25
20
15
10
5
0
Brand
Price
Quality
Design
Ambience of store
CONCLUSION- 40% customers attribute design for selecting apparels, 25% for
brand, 18% as per for price and 12% and 05% customers prefer quality and ambience
of store respectively.
Findings
Limitations
Conclusion
The preference of consumers for readymade outfits even for branded apparels is
fast changing caused by the creation of personality and status with the quality
and comfort they deliver. Due to the increased awareness and consciousness,
people are ready to spend any price for comfort and quality. Intense era provide
high quality materials and lot of variety in Indian garment market to satisfy the
desire of customers. The customers are also utilizing the opportunity too. The
results confirm that Indian people have become highly brand conscious resently.
Hence, brand image is a not a significant factor in choosing the product or brand
to buy. There are other aspects like, quality, comfort, expectations and
demographic characteristics are also influence to the purchasing decision that
dominate the purchase decision of males and females. From the analytical
introspection it is evident that the gender differences do exist with respect to
build attitude towards fashionable apparels and brands. Further, the variation in
age and income is not significant as consumers preferred brands or outfits
irrespective of that. Allen Solly tops the minds of the customers followed by
Van Heusen and Raymonds Which refers to the maximum frequency of
recalling the brands. These are the most familiar and favourite brands also
among brand aware consumers, specifically in context of India.
Finally, males and females are not having any significant differences in their
brand awareness, shopping frequency and shopping expenditure. Males are
equally interested to go for shopping as females along with they spend excess
money during shopping than their female counterparts. Frequency of males
going for shopping with their companions has increased over times
and has reached almost at par with that of females.Attitude of males towards
clothing varies from that of females. There are two factors are found during
measuring attitude of consumers towards branded apparels, Intrinsic Pleasure
and Prestige and Status. Intrinsic Pleasure included pleasure and significance, in
the same way, Prestige and Status integrated status, impression and acceptance
of the branded products.
BIBLIOGRAPHY
Web sourceo
www.google.com
ANNEXURE
Others
7- Do you stick to shopping add the same branded company of apparels?
Yes
No
Cant say
Yes
No
Brand
Price
Quality
Design
Ambience of store
Name
Gender
age