BRAND POSITIONING STRATEGY IN MOST

EFFICIENT MANNER IN RELATION WITH

CONSUMER BUYING BEHAVIOR

A PROJECT REPORT

Submitted by

SAHIL MAINI

in partial fulfillment for the award of the degree

of

POST GRADUATE DIPLOMA IN MANAGEMENT

in

MARKETING

AT

INSTITUTE FOR FUTURE EDUCATION, ENTREPRENEURSHIP AND

LEADERSHIP

Off Karla Phata, Ekveera Devi Gramasthan Road, Gut No-178,Village-Karla,

Taluka-Maval, Dist.- Pune, India

JULY 2013

TABLE OF CONTENTS

Abstract

Executive Summary

1. Chapter 1 – Introduction

1.1 Introduction

1.2 Project Aims & Objectives

2. Chapter 2 – Literature Review

2.1 Understanding Branding

2.1.1 History of Branding

2.1.2 Branding in today’s Markets

2.1.3 Importance of Branding

2.1.4 Development of Brand Equity

2.1.5 The Competitive Advantage of Brand Loyalty

2.2 Understanding Consumer Buying Behavior

2.2.1 Factors Affecting Consumer Buying Behavior

2.2.2 Consumer Buying Decision Process

2.3 Branding’s Influence on Consumer Purchasing Behavior

2.3.1 Impact on the Consumer Learning Process

2.3.2 Impact on Consumers’ Perception of Brands

2.3.3 Impact on Consumers’ Attitudes towards Brands

2.4 Positioning

2.4.1 Usefulness of Positioning

2.4.2 Brand Positioning

2.4.3 Brand Positioning Strategy

2.4.4 Factors of Brand Positioning

2.4.5 Elements of Positioning

3. Research Methodology

3.1 Introduction

3.2 Research Approach

3.2.1 Secondary Data

3.2.2 Primary Data

3.3 Data Collection Tools

4. Analysis & Findings & Interpretation

4.1 Secondary Research Findings

4.1.1 Current Consumer Trends

4.1.2 Top Brands in India

4.2 Primary Research Findings

5. Managerial Implications

5.1 Conclusions

5.2 Implications & Recommendations

6. Limitations of the project

7. References

Questionnaire- Annexure

EXECUTIVE SUMMARY

Brand is a Guarantee, an assurance for a defined standard of quality for the first time and for

every time but not the vice versa. Brand is name or logo that plays the role in the mind of the

customer. Brands do not compete in the product area but compete for the mind space of the

customer. A brand once established in the mind of the customer becomes indelible when

customer identifies itself with that particular Brand.

Branding is an effective marketing strategy tool that has been used with frequent success in the

past. Branding can be an effective and powerful tool for all types of business organizations. If

brand owners use their product correctly, the payoffs can be substantial. However, if brands are

mismanaged, the results can be damaging.

This report is aimed to investigate the effect of brand on consumer buying behavior. How much

consumers are prepared to pay for branded products, how important they consider price, brand or

other factors during their purchasing decisions. The Report aimed at comprehensive literature

review on branding, brand loyalty, brand awareness, brand equity and brand perceptions, price

sensitivity and willingness to pay.

CHAPTER 1

INTRODUCTION

Introduction

“Brands are like human beings. They are born, fed and nurtured, made strong and responsible so

that they can be faithful friends of the people (customers), form mutually beneficial and

satisfying relationships with them and become their companions for life. Such brands, make their

parents (organization or corporate) proud of them. The best brands are the ones who help in

forming and sustaining strong long term “parent-brand-people” relationships. These brands form

the potential for present growth and future expansion. They help the organizations conquer peaks

at the time of booms and stay afloat and swim at times of depression.”

We come across a number of brands in our daily lives. Our morning starts with using a

toothpaste (Colgate, Pepsodent or Close-up), using a bathing soap (Lux, Fairglow or Cinthol)

and shampoo (Clinic All Clear or Sunsilk), wearing clothes ( Arrows, Allen Solly, Tommy

Hilfiger), breakfast bread (Britannia ) and butter (Amul) or jam (Kissan), lunch and dinner

(Nature Fresh or Pillsbury flour and Safal vegetables), morning and evening tea and coffee (

Nescafe or Bru), going out in a car (Hyundai , Honda or Mercedes).

Talking on the cell phone ( Nokia, Apple or Samsung), watching television in the evening (LG,

Sony or Philips) or listening to music (Philips or Apple) etc.

But how often do we think of what all a company does to put a positive imprint (fight for a shelf

space) in the mind of the customer?

Today nearly all the companies are focusing more and more on building strong brands. The

concept of brand equity and its management has come to the fore like never before. More and

more companies are refocusing on select strong brands.

This project is thus a timely stuffy of the importance of brands, what it takes to build them, what

benefits do they give to different stakeholders (organization, distributors and customers), how

can they be leveraged, what is the impact of modern technology on branding, branding on the

web, branding in mergers and acquisitions etc. examples have been given and cases discussed at

every suitable point to bring out an application oriented understanding of “building and

managing brands”.

Project Aims and Objectives

Importance of understanding branding and its impact on modern day markets. The aim of this

report is to put into perspective the functional values of branding as well as assess its role in the

consumer purchase decision-making process.

Understanding the concepts of branding and consumer behavior.

To study the brand positioning of Arrow 1851 .

To analyze the branding strategies adopted by some of the companies.

To do a comparative study of the branding strategies adopted by the companies.

To find the appropriate strategy for increasing the brand Presence.

In order to fully answer the research question, the following objectives have been set:

• Set a valid and sustainable research question in order to achieve a non-bias and accurate

understanding on the topic in question;

• Present the key concepts behind branding, its values and its usage in modern day marketing

campaigns by reviewing current literature pertaining to the subject matter;

• Determine whether a correlation between consumer identities and perceived brand identities is

present;

• Determine the impact of branding on the consumer purchase decision-making process

CHAPTER 2

LITERATURE

REVIEW

LITERATURE REVIEW

2.1 Understanding Branding

BRAND

The word “Brand” owes its origin to the Norwegian word “brand” which means to burn. Farmers

used to put some identification mark on the body of the livestock to distinguish their possession.

Products are what companies make, but customers buy brands. Therefore marketers resorted to

branding in order to distinguish their offerings from similar products and services provided by

their competitors. Additionally, it carries an inherent assurance to the customers that the quality

of a purchase will be similar to earlier purchases of the same brand.

A brand is a name, term, sign, symbol or design or a combination of one seller or a group of

sellers and to differentiate them from those of competitors.

BRANDING

Branding is a process, a tool, a strategy and an orientation.

Branding is the process by which a marketer tries to build long term relationship with the

customers by learning their needs and wants so that the offering (brand) could satisfy

their mutual aspirations.

Branding can be used as a differentiation strategy when the product cannot be easily

distinguished in terms of tangible features (which invariably happens in case of many

services, durables etc.) or in products which are perceived as a commodity (e.g. cement,

fertilizers, salt, potato chips etc.).

Brand building is a conscious customer satisfaction orientation process. The brand owner

tries to retain customers to its fold over their competitors by a mix of hardware software

because when a customer feels satisfied he / she develop a kind of loyalty for the same.

Kotler (1999) expands on the concept of identity by stating that a brand is capable of conveying

up to six different levels of meaning to a targeted audience. This is known as the “Six

Dimensions of The Brand”

Attributes A brand will communicate specific attributes, such as prestige

Benefits A brand strengthens a product’s attributes by communicating a set of benefits that

makes it more attractive

Values A brand represents a company’s core values and belief system

Culture A brand is representative or target a target audiences socio cultural characteristics

Personality A Brand can project behavioral personality patterns of

targeted consumers

User The brand, in some cases, can emulate the end user

From the consumers’ perspective, brand names are as fundamental as the product itself in the

sense that they simplify the purchasing process, guarantee quality and at times, form as a basis of

self-expression. Hence, should a company market a brand name as nothing more than

“just a name”; it would be missing the entire purpose of product branding. The challenge lies in

developing a deep set of meanings for the brand. Once a target market segment can visualize all

six dimensions of the brand, it will have established a strong rapport within the consumers’

purchase decision-making process.

2.1.1 History of Branding

Brands in the field of marketing, originated in the 19th century with the advent of packaged

goods. Industrialization moved the production of many household items, such as soap, from local

communities to centralized factories. These factories, generating mass-produced goods, needed

to sell their products in a wider market, to a customer base familiar only with local goods. It

quickly became apparent that a generic package of soap had difficulty competing with familiar,

local products. The packaged goods manufacturers needed to convince the market that the public

could place just as much trust in the non-local product.

Many brands of that era, such as Uncle Ben's rice and Kellogg's breakfast cereal furnish

illustrations of the problem. The manufacturers wanted their products to appear and feel as

familiar as the local farmers' produce. From there, with the help of advertising, manufacturers

quickly learned to associate other kinds of brand values, such as youthfulness, fun or luxury,

with their products. This kick started the practice we now know as "branding".

We tend to think of branding as a modern day phenomenon. Certainly, during the late 1990s and

the early 2000s, branding emerged as a significant area of emphasis not only for companies and

their products, but also for municipalities, universities, other non-profit organizations and even

individuals. Branding became ubiquitous. Many of us also know that Proctor & Gamble and

other consumer product companies began branding their products in earnest in the mid-to-late

1800s. But more interesting to me is how far back in time branding goes. For instance,

companies that sold patented medicines and tobacco began branding their products as early as

the early 1800s. Around the same time, some fraternities and sororities branded their pledges

(literally) during initiation rites as a form of identification and bonding, a practice that has long

since been identified as hazing and therefore abandoned.

But that is still recent history -- relatively.

Between the 1600s and 1800s, criminals were branded (again literally) as a form of punishment

and identification. For instance, in England, they branded an S on a person's cheek, while in

France; they branded a fleur de lis on the shoulder. As repugnant as it may be to us today, slaves

were also branded roughly during the same time period to connote ownership. In the 1200s,

England required bread makers, goldsmiths and silversmiths to put their marks on goods,

primarily to insure honesty in measurement. In the Medieval times, printers also used marks as

did paper makers (watermarks) and various other craft guilds.

But branding goes back even further. As far back as 1300 BC, potter's marks were used on

pottery and porcelain in China, Greece, Rome and India. Branding of cattle and livestock go

back as far as 2000 BC. And archaeologists have found evidence of advertising among

Babylonians dating back to 3000 BC. So, how far back does branding go? At least 5000 years.

What is more interesting to me are underlying needs from which branding originated: to insure

honesty, provide quality assurance, identify source or ownership, hold producers responsible,

differentiate, as a form of identification and to create emotional bonding. Interestingly, people

value brands for many other same reasons today. Clearly, history provides some insight and

perspective on modern day branding.

2.1.2 Branding in Today’s Markets

A central function of branding is the facilitation of the consumer choice process. Due to the

complexity of having to select a product amongst thousands of similar offerings, consumers will

instinctively attempt to simplify their choice process by selecting brands that have satisfied them

in the past. Thus, one can conclude that pleasant past experiences is highly conducive to

consumers associating benefits to a brand. One can conclude that a central function of branding

is its ability to negate the need for a consumer to seek out information when a need or a want has

been recognized, but rather, lead him to a brand that has been satisfying in the past.

One must acknowledge however, that frequent purchasing of a brand cannot always be linked to

previous experiences, but can alternatively be formed by embedded perceptions. A consumer

might strongly favour a brand with no prior purchasing experience. This type of consumer

behavior is based on stimulus provided by direct exposure to advertising campaigns, a

company’s PR efforts or even a high concentration of local distribution in an area that is in close

proximity to a consumer.

In terms of companies’ views on branding, it can induce the natural differentiation of their

offerings, which ultimately, will produce a state of competitive advantage. Differentiation can

only allow for competitive advantage if the cost of differentiating is significantly lower than the

revenue earned by the sales. Differential advantage allows companies to showcase their offer in

respects to other competitors in the same marketplace.

2.1.3 Importance of Branding

Principle of branding - A set of related products that are manufactured by a company and are

sold as a family of products under the marquee or banner of a brand have a certain recognition

and a place of respect within that very market. Branding the product thus, is a means of creation

of identification and recognition in the market. It is not just a process of getting a trademark and

logo, but it is process of evolving as a well reputed name on the market and field. A very well

known brand that has become the identity of the market itself is the office equipment

manufacturer 'Xerox'. Though it is a company's name, the act of photocopying is termed as

'Xeroxing'.

Importance of Branding in Business

From the point of view of a business, the process of branding involves making of a trademark

and a good name. A registered trademark and a name ensure individuality and uniqueness of a

particular product or family of products. The lawful registration of the trademark means that any

competitor cannot copy any of the elements and names of the products. Branding can be done for

anything that can be promoted in the consumer's market, may it be a simple label, a family of

products or an umbrella brand. People can also have a personal brand. The primary advantage of

branding is that it is safeguarded from unlawful activities and at the same time, it is also a way of

developing a good reputation in the market.

Often you might see some new product carry the tag that says 'from the makers of …brand', well

this is another advantage of branding. When a business who owns an already famous brand

wants to launch a new brand in the market, they can use the pre-earned goodwill and reputation

for the new launch. The advantage is that, people are bound to purchase the new products out of

curiosity.

Importance of Branding in Marketing

Marketing primarily involves the study of demand in a market and creating a response in the

form of supply. In the field of marketing, the brand name plays an important role as it helps the

people to promote the brand name and its merits quite easily. Apart from that, it also becomes

possible for the marketing people to generate intelligence information about the brands

popularity and also what people exactly want from the brand owning company. As a result of a

brand loyal group of consumers, it also becomes easier for marketing department to asses regular

and promised demand. Apart from that, schemes such as free gifts and discounts often boost the

sales as the brand is an important icon of the market.

Importance of Branding in Advertising

Advertising is often considered to be a part of marketing however; branding a particular product

helps the advertisers to provide catchy logos and advertisements. As a brand name can never be

copied, advertisers face lesser heat from unauthenticated advertisements, effectively, their

advertisement creation gets protected. Apart from that advertisers can initiate fearless and

independent advertising as due to the process of branding, the consumers are already well aware

of the product, its identity and nature.

In short, the importance of branding can be summed up in simple words 'successful branding is a

process that generates revenue that cannot be counted, it creates a reputation that is felt not seen,

and it is an asset that one cannot show on a balance sheet.

2.1.4 Development of Brand Equity

The amount of clout controlled by different brands will vary. Some are deeply embedded in

global culture and are thus, highly recognizable, whilst other are virtually unknown to

consumers. When attempting to place a value on a brand, one refers to “brand equity”. Chay

(1991) defines brand equity as a “set of associations and behaviors on the part of a brand’s

customers, channel members, and Parent Corporation that permits the brand to earn greater

volume or greater margins than it could without the brand name and that gives the brand a

strong, sustainable, and differential advantage over competitors”. This explanation creates a

clear link between a product’s values, be it financial or intangible, and a brand name.

Using the financial perspective, one measures brand equity by determining how much more

consumers are willing to pay in direct relation to the brand name. This gives marketers essential

insight into the financial value of the brand. When viewing brand equity from this perspective,

one must naturally consider overhead, such as costs of advertising.

Using the consumer-based perspective entails considering how the attitude strength of consumers

is directly influenced by the brand name. This perspective operates under the assumption that the

consumer has had extensive experience with the product in question.

The consideration and development of brand equity is vital as its benefits are wide reaching. One

can consider brand equity as an asset, as it can increase cash flow via the widening of a

company’s market share and the allowance of higher pricing policies.

2.1.5 The Competitive Advantage of Brand Loyalty

There is a palpable correlation between the efficient branding of a product or service, and the

display of brand loyalty in consumer purchasing patterns. In this instance, loyalty is defined as a

“deeply held commitment to re-buy or re-patronize a preferred product/service consistently in

the future, thereby causing repetitive same-brand or same brand-set purchasing, despite

situational influences and marketing efforts having the potential to cause switching behavior".

Brand loyalty is a direct consequence of the ability to better satisfy the desires of a customer that

main competitors do. It now becomes clear that a modern day marketer’s principal objective is to

build sustainable forms of loyalty between a company and its consumers, instead of focusing

solely on the individual sale of products.

Brand Loyalty is the consumer's conscious or unconscious decision, expressed through intention

or behavior, to repurchase a brand continually. It occurs because the consumer perceives that the

brand offers the right product features, image, or level of quality at the right price. Consumer

behavior is habitual because habits are safe and familiar. In order to create brand loyalty,

advertisers must break consumer habits, help them acquire new habits, and reinforce those habits

by reminding consumers of the value of their purchase and encourage them to continue

purchasing those products in the future.

The image surrounding a company's brand is the principal source of its competitive advantage

and is therefore a valuable strategic asset. Unfortunately, many companies are not adept at

disseminating a strong, clear message that not only distinguishes their brand from the

competitors', but distinguishes it in a memorable and positive manner. The challenge for all

brands is to avoid the pitfalls of portraying a muddled or negative image, and instead, create a

broad brand vision or identity that recognizes a brand as something greater than a set of attributes

that can be imitated or surpassed. In fact, a company should view its brand to be not just a

product or service, but as an overall brand image that defines a company’s philosophies. A brand

needs more than identity; it needs a personality. Just like a person without attention-grabbing

characteristics, a brand with no personality can easily be passed right over. A strong symbol or

company logo can also help to generate brand loyalty by making it quickly identifiable.

2.2 Understanding Consumer Buying Behavior

Definition

Consumer behavior refers to the mental and emotional process and the observable behavior of

consumers during searching, purchasing and post consumption of a product or service

Consumer behavior involves study of how people buy, what they buy, when they buy and why

they buy. It blends the elements from psychology, sociology, socio psychology, anthropology

and economics. It also tries to assess the influence on the consumer from groups such as family,

friends, reference groups and society in general.

Buyer behavior has two aspects: the final purchase activity visible to any observer and the

detailed or short decision process that may involve the interplay of a number of complex

variables not visible to anyone.

2.2.1 Factors Affecting Consumer Buying Behavior

Consumer buying behavior is influenced by the major three factors:

1. Social Factors

2. Psychological Factors

3. Personal Factors.

1. Social Factors

Social factors refer to forces that other people exert and which affect consumers’ purchase

behavior. These social factors can include culture and subculture, roles and family, social class

and reference groups.

Example:

By taking into consideration Reference group, these can influence/ affect the consumer buying

behavior. Reference group refers to a group with whom an individual identifies herself/ himself

and the extent to which that person assumes many values, attitudes or behavior of group

members. Reference groups can be family, school or college, work group, club membership,

citizenship etc.

Reference groups serve as one of the primary agents of consumer socialization and learning and

can be influential enough to induce not only socially acceptable consumer behavior but also

socially unacceptable and even personal destructive behavior. For example, if fresher student

joins a college / university, he/she will meet different people and form a group, in that group

there can be behavior patterns of values, for example style of clothing, handsets which most of

group member prefer or even destructive behavior such as excessive consumption of alcohol, use

of harmful and addictive drugs etc. So, according to how an individual references him / her to

that particular reference group, this will influence and change his/her buying behavior.

2. Psychological Factors

These are internal to an individual and generate forces within that influence her/his purchase

behavior. The major forces include motives, perception, learning, attitude and personality.

Example:

Attitude is an enduring organization of motivational, emotional, perceptual and cognitive

processes with respect to some aspect of our environment. Consumers form attitude towards a

brand on the basis of their beliefs about the brand. For example, consumers of Sony products

might have the belief that the products offered by Sony are durable; this will influence those

customers to buy Sony products due to this attitude towards the brand.

3. Personal Factors

These include those aspects that are unique to a person and influence purchase behavior. These

factors include demographic factors, lifestyle, and situational factors.

Example:

Lifestyle is an indicator of how people live and express themselves on the basis of their

activities, interests, and opinions. Lifestyle dimension provide a broader view of people about

how they spend their time the importance of things in their surroundings and their beliefs on

broad issues associated with life and living and themselves. This is influenced by demographic

factors and personality.

E.g. - A CEO or Manager is likely to buy more formal clothes, ties and shoes or PDAs and less

informal clothes like jeans as compared to a Mechanic or Civil engineer. So according to their

lifestyle and profession, the buying behavior of people differs from one another.

2.2.2 Consumer Buying Decision Process

Consumer buying decision process is the processes undertaken by consumer in regard to a

potential market transaction before, during and after the purchase of a product or service.

Consumer decision making process generally involves five stages:

A. Problem Recognition

Purchase decision making process begins when a buyer becomes aware of an unsatisfied need or

problem. This is the vital stage in buying decision process, because without recognizing the need

or want, an individual would not seek to buy goods or service.

There are several situations that can cause problem recognition, these include:

Depletion of stock

Dissatisfaction with goods in stock

Environmental Changes

Change in Financial Situation

Marketer Initiated Activities

It’s when a person recognizes that she cannot make a call from her mobile phone that’s when she

recognizes that her phone has been damaged i.e. the phone has hardware problems and needs to

be repaired or buying a new piece.

B. Information Search

After the consumer has recognized the need, he / she will try to find the means to solve that need.

First he will recall how he used to solve such kind of a problem in the past, this is called nominal

decision making. Secondly, a consumer will try to solve the problem by asking a friend or goes

to the market to seek advice for which product will best serve his need, this is called limited

decision making.

Sources of information include:

Personal sources

Commercial Sources

Public sources

Personal experience

C. Alternatives Evaluation

Consumers’ evaluates criteria refer to various dimension; features, characteristics and benefits

that a consumer desires to solve a certain problem. Product features and its benefit is what

influence consumer to prefer that particular product. The consumer will decide which product to

buy from a set of alternative products depending on each unique feature that the product offers

and the benefit he / she can get out of that feature.

D. Purchase Action

This stage involves selection of brand and the retail outlet to purchase such a product.

Retail outlet image and its location are important. Consumer usually prefers a nearby retail outlet

for minor shopping and they can willingly go to a far away store when they purchase items

which are of higher values and which involve higher sensitive purchase decision. After selecting

where to buy and what to buy, the consumer completes the final step of transaction by either cash

or credit.

E. Post-Purchase Actions

Consumer favorable post-purchase evaluation leads to satisfaction. Satisfaction with the

purchase is basically a function of the initial performance level expectation and perceived

performance relative to those expectations. Consumer tends to evaluate their wisdom on the

purchase of that particular product. This can result to consumer experiencing post purchase

dissatisfaction. If the consumer’s perceived performance level is below expectation and fail to

meet satisfaction this will eventually cause dissatisfaction, and so the brand and/ or the outlet

will not be considered by the consumer in the future purchases. This might cause the consumer

to initiate complaint behavior and spread negative word-of-mouth concerning that particular

product.

2.3 Branding’s Influence on Consumer Purchasing Behavior

The preceding section of this literature reviewed has sought to define the term branding and

explain its functions and values as an instrumental marketing tool used in attaining differential

and competitive advantage.

The following section of this literature review will seek to enlighten the impact branding has on

the consumer decision-making process.

First however, one must gain clear insight into the definition of consumer buying behavior in

order to understand the impact branding has on it. In defining “consumer buying behavior”, one

may refer to Assael (1987) who distinguishes four types of consumer buying behaviors. He bases

these four consumer types on the varying degrees of involvement and the degree of

differentiation amongst the brands in question.

Consumers who are described as displaying complex buying behavior will expand their beliefs

regarding a particular product as a starting point. This stage will eventually lead them to develop

positive attitudes regarding the product. These intermediary stages lead them to the final stage of

their behavioral pattern, where they consciously make the choice of purchasing the product.

Referring to the Assael’s model; one will notice this type of consumer engages in highly

involved purchasing experiences being fully aware of the range of brands available and their

levels of differentiation.

Assael (1987) classifies consumer who exhibit Dissonance-reducing behavior as consumer who

are highly involved in the purchasing experience, however see few differences between brands.

For this reason, the consumer will seek information on the differentiation of the product

offerings and will not be particularly price sensitive when seeking functionality. In the event that

this consumer finds him or herself in a market that displays low levels of differentiation, the

consumer might result to purchasing influenced by convenience. Like consumers who display

complex buying behavior, consumers with dissonance-reducing behavior will seek to establish

personal beliefs regarding the product. If fostered adequately, these beliefs with eventually

transform into attitudes regarding the product offerings. These attitudes, if favourable, will lead

to a thoughtful purchase.

Assael (1987) considered consumes displaying habitual buying behavior as consumers who did

not experience the same sequence as the previous two behavioral types. Instead of basing their

decision-making process on seeking product information pertaining to functionality or

characteristics, this type of consumer will purchase based on information gathered passively, via

the company’s promotional efforts, by it through the medium of television, radio or print

advertising. This behavioral type, as can be seen on Assael’s (1987) model, with low-level

involvement products. Differentiating this consumer type is the fact that they being the process

with beliefs already embedded in their mind, which they have learnt passively, rather than

actively.

Variety-seekers are the last behavioral type contained in Assael’s (1987) model. Their typical

buying situation is summarized by low-level involvement in a market that displays high levels of

product differentiation. Common to this type of consumer, is “brand switching”, in order to

satisfy their need for diversification.

In order to fully ascertain the effects that branding has on the consumer decision making process,

the Howard-Sheth Decision-making model by Howard and Sheth (1969) is used that explains not

only the process of consumer decision-making during purchasing activities, but one that

facilitates the understanding of pre and post purchasing activities as well.

The model’s core assumption lies in that the key to determining behavior exhibited by consumers

is to fully understand the consumer thought process. The Howard-Sheth model illustrates that

cognitive decision-making is the process in which consumers mentally process information that

influences his or her selection of brands.

2.3.1 Impact on The Consumer Learning Process

At its most basic definition, one can define the consumer learning process as being a time period

in which a customer is heavily exposed to the branding process of a product or service. The

branding process can include any aspect of the promotional strategy, including audio/visual

forms of promotion. By learning from this information, whether it is a conscious process or not,

the consumer will develop strong feelings towards a brand. For marketers, branding has a vital

effect on the learning process, because it is self-growing. Once consumers start to purchase

product, others will vicariously learn from them. Vicarious learning is when consumers begin to

copy the behavioral patterns of their peers by making changes in their own lives to reflect what

they have “vicariously” learnt.

In searching for a more academic view on consumer learning, one can understand the process as

modifications to a consumer’s behavioral patterns that are the direct consequence of either past

experiences or information gathered during all aspects of the purchase decision-making process.

These modifications are caused by information that has essentially been saved as a set of

meaningful associations in the consumer’s mind. These above-mentioned associations provide

the consumer with link to the brand image of offerings in respects to the promotional tools used

to further this brand image. These tools include both physical characteristics of the product as

well as pricing policies. All the elements that are retained by the consumer stem from what they

have been exposed to during their individual learning process. This is ultimately, what will shape

their views and attitudes in regards to brands.

It has been found that the learning process discussed above acts as a catalyst in creating

emotional and evaluating responses. These responses are embedded in the consumer’s memory

span, which will be recalled when faced with a purchase decision-making process. Thus,

understanding the learning process is the key to marketers who seek to efficiently use

promotional methods to influence consumers, because the imprints they create in the mind of

consumer will later on be recalled when selecting a product or brand.

2.3.2 Impact on Consumers’ Perception of Brands

One may refer to Foxall (1980), where Engel defines perception as “the process whereby stimuli

are received and interpreted by the individual and translated into a response”. At this point, it is

important to note that this process is unique to each individual, as perception is highly dependent

on a consumer’s individual beliefs structure.

Perception is crucial in the decision-making process. In a market where branding is used,

products are no longer only purchased for their functional characteristics, but primarily for the

social or in some cases, psychological identity they express.

Building on these concepts, One can elaborate on these concepts by outlining two determinants

that influence a consumer’s perception of brands. These two factors are stimulus discrimination

and stimulus generalization.

Whether a consumer has the ability to “discriminate” between the various methods used to

stimulate a consumer? When a customer is introduced to a brand, whether this is done via

advertising, packaging, word of mouth marketing or any other form of stimuli that affected them

during their decision-making process, their levels of awareness of the brand will gradually

increase via their ability to learn. Once their level of brand awareness has increased, their

purchase decision-making process will be influenced by their perception of the brand in question.

The perception of brands is crucial to both the marketer and the customer. If one considers that

frequency of purchases varies from consumer to consumer, one can understand that the influence

of perception is vital. By providing relevant information for the consumer market, marketers

enable the creation of symbolic links between the consumer and the brand image. Thus,

consumers will have the relevant tools needed to distinguish between the brands on offer and

therefore be persuaded in their selection. In the event that a consumer is a new user with no

product experience, he or she will not be able to make relevant decisions based on the actual

product. Thus, the brand image again, becomes vital in directing the consumer to a specific

product.

In order to better understand the relevance of branding on the consumer purchase decision

making process, four key factors that are responsible for directing a potential consumer towards

a particular brand are referred.

Perceived Quality In time, consumer will have faith in a brand’s integrity

via their perceived quality of the brand in question

Building Excellent Service

When a company implements excellent after service

sales, this endorses the perceived quality of the brand

and facilitates activities in the pre and post purchase

moments of the decision-making process. As discussed

previously, this is key in the creation of loyal customers

Standing Out in the Consumer’s

By striving to differentiate one’s brand from another,

companies hope to become embedded in the user’s

culture and mind. This is the most effective way to

insure consumers positively perceive the brand and

product. This eventually leads to extremes forms of

competitive advantage

Investing in Differential

Markets

When one seeks to establish a brand, it is essential to

select a market in which it is possible to create

differentiation. Otherwise, the concepts of branding will

not be possible.

Brands have a large impact on the perceived risks consumers associate with the consumer

purchase decision-making process. There to be six risks that are perceived by consumers during

all aspects of the decision-making process and further outlines how brands can appease the

consumer’s mind in regards to these perceived risks.

The first perceived risk a consumer might encounter is one of a functional nature. The consumer

might worry whether the product will meet his or her expectations. In the creation of a

trustworthy brand, marketers seek to raise the level of perceived quality in order to specifically

address this risk.

Consumer might also perceive a physical and/or psychological risk that might dissuade them

from continuing the purchasing decision-making process.

A fourth possible risk that might be perceived by the consumer is one of an economic nature.

Price sensitive consumers will question whether the product is in fact properly valued at the

quoted asking price. Again, marketers will strive to counter this by highlighting the perceived

value of a product in the branding process. If properly done, consumer can become price

insensitive by forming a strong bond to a brand and therefore isolating him or herself from

competitors.

Socially speaking, a fifth risk a consumer might perceived to be detrimental to the buying

process is whether his or her selection of a brand will cause embarrassment in a social setting,

amongst his or her peers. Marketers address this issue in the creation of the brand image. By

emulating current market trends and fashions, marketers strive to identify and differentiate their

products as being the selected choice of revered people.

.

Yet another economic risk consumer might consider, is the opportunity cost of seeking out

alternative products, and should the selected one fail to satisfy their needs and wants. Reflected

in a loyal consumer base, is a brands ability to deliver on the satisfaction guarantee. Thus, one

can understand that branding is the key in addressing this issue in the consumer’s mind.

2.3.3 Impact on Consumers’ Attitudes Towards Brands

An attitude can be considered to be either positive or negative, depending on the outcome of

their learning and evaluating process.

The evaluation of consumer attitudes towards brands has quickly become a major part in

conducting marketing research. The development of positive attitudes towards brands can lead to

not only the sustaining of competitive advantage, but in the bettering of the financial health of a

company.

Branding has been found to be a key in formation of positive attitudes towards products,

especially those involving low-levels of consumer involvement. However it has been noted that

there are factors that might negate the effects of the formation of positive attitudes. One being

that the effects of positive attitudes can dissipate should the consumer not purchase the product

within a certain timeframe. Another factor that might negate the effects of positive attitudes

might be an overtly high pricing policy, which might have a contrary effect to the consumer’s

positive attitudes towards the brand and result in a non sale.

In considering attitudes towards brands, one must ponder whether these attitudes all remain at a

conscious level, or whether branding can instigate attitudes at a sub-conscious level. Sigmund

Freud’s theory that individuals are rarely aware of how their own psychology shapes their visual

behavioral patterns which suggests that at an unconscious level, consumer might have beliefs

that shape their attitudes towards products. By acknowledging Freud’s theories, one can

conclude that branding can be used to target sub-conscious desires that rest at a primal level.

2.4 Positioning

Various authors have given different definition of Positioning. Some are:-

Beckman, Kurtz, Boonee

“Product positioning refers to the consumer’s perception of a product’s attribute, use, quality &

advantages & disadvantages in relation to competing brands.”

Berkowitz, Kerlin, Rudelius

“Product positioning refers to the place an offering occupies in the consumer’s mind on

important attributes relative to competitive offerings.”

2.4.1 Usefulness of Positioning

As competition intensifies & brands proliferate, consumers tend to differentiate between brands

in their own way. Positioning is a conscious attempt on the part of the marketer to accentuate this

natural tendency & in the process, impart a distinct identity to his own brand to make it stand out

among the competitors. The basis on which this differentiation is achieved reflects consumer

preferences or attitudes. The marketer, through his diverse & coordinated actions, tries to

influence this process.

The concept of positioning is also important in various other aspects of the marketing strategy.

Once one is clear about the position one wants, the other marketing decisions like product

design, packaging, pricing, method of distribution, etc., become clearer.

2.4.2 Brand Positioning- Definition and Concept

Brand positioning refers to “target consumer’s” reason to buy your brand inpreference to

others. It is ensures that all brand activity has a common aim; is guided, directed and delivered

by the brand’s benefits/reasons to buy; and it focuses at all points of contact with the consumer.

Brand positioning must make sure that:

• Is it unique/distinctive vs. competitors ?

• Is it significant and encouraging to the niche market ?

• Is it appropriate to all major geographic markets and businesses ?

• Is the proposition validated with unique, appropriate and original products ?

• Is it sustainable - can it be delivered constantly across all points of contact with the

consumer ?

• Is it helpful for organization to achieve its financial goals ?

• Is it able to support and boost up the organization ?

In order to create a distinctive place in the market, a niche market has to be carefully chosen and

a differential advantage must be created in their mind. Brand positioning is a medium through

which an organization can portray its customers what it wants to achieve for them and what it

wants to mean to them. Brand positioning forms customer’s views and opinions.

Brand Positioning can be defined as an activity of creating a brand offer in such a manner that it

occupies a distinctive place and value in the target customer’s mind.

Brand Positioning involves identifying and determining points of similarity and difference to

ascertain the right brand identity and to create a proper brand image. Brand Positioning is the key

of marketing strategy. A strong brand positioning directs marketing strategy by explaining the

brand details, the uniqueness of brand and it’s similarity with the competitive brands, as well as

the reasons for buying and using that specific brand.

Positioning is the base for developing and increasing the required knowledge and perceptions of

the customers. It is the single feature that sets your service apart from your competitors. For

instance- Kingfisher stands for youth and excitement. It represents brand in full flight.

Defining Values and Principle

You already know how to do this

Your values and principle are part of your Org and Brand drivers!!!

Keller calls principle “Brand Mantra”

Your Values, Principle, and position all are related –

NOTE: Keller says that associations are values, but we have a stricter definition

of associations from the IBM.

Brand Positioning Strategy

Brand positioning is an essential element of a winning branding strategy. Positioning simply

refers to how your product or service is viewed in the minds of prospects and customers relative

to other products or services available in your niche. The term positioning has two connotations:

a vertical and a horizontal one. In terms of the vertical connotation, the term refers to the order in

which your product ranks relative to the products of your competitors in the minds of your

customers in your industry niche.

(For example, which product comes to mind first when I say the word cola ?)

In terms of the horizontal connotation, the term refers to the qualities and attributes your product

represents in the mind of your customers, again relative to your competitors.

While you cannot directly control the ranking that your product or service enjoys in the minds of

your customers, you can influence how you position the product in terms of qualities and

attributes. That is, by properly positioning your product relative to your competitors in the minds

of your customers, you will have much more control over how your brand is perceived in

the marketplace. You will then effectively have a guide or map for how to execute your branding

strategy.

2.4.3 Effective Brand Positioning

No matter how long you’ve been in business, chances are good that you are engaged in

developing and promoting your brand positioning strategy. You’ll invest plenty of time in the

process of evaluating your products or services in terms of market share, sales and customer base

and comparing this information to that of your competitors. You’ll work to determine how your

customers perceive your business and its major offerings and use the detailed findings to

establish your business at the proper place within that all important target market. Your business

position within the target market will determine your business’s degree of success. If you think

you can maneuver into a more profitable place, do so by adjusting your products or services to

more closely match the desired position (known as re- positioning), or pursue strategies that

change customer perception of the products and services offered by your competitors (de-

positioning).Here are some strategic tips that can help you to be as effective as possible during

your brand positioning process:

1. Understand brand positioning as fully as you can, especially in the way that it directly affects

your business. Businesses, especially smaller ones, are very diverse in their needs and offerings,

and it might take quite a bit of effort to even be sure that you are positioning yourself within the

correct market. Look closely at the businesses sharing your pool of regular customers, their

purchasing patterns, and the roles that your business plays in their everyday lives.

2. Develop the most efficient method possible for gathering customer information.Remember

that you’re trying to get inside their heads and back out again with an unvarnished look at how

they see your business in terms of the benefit that it provides for them. You might consider

questionnaires, phone surveys or online surveys and offer a small bonus to compensate

customers for their valuable time.

3. Determine which of your products and/or services are the most popular or powerful, so that

you can use them to build on or adjust your overall positioning strategy.

4. Rank all of your products and/or services in terms of positive customer review and in relation

to those of your competitors.

5. List the most popular group of attributes that describe your business and products from the

viewpoints of your customers and combine them to reach your ideal vector…the position in your

target market from where your business can operate at the highest possible level of strength.

6. Product - based businesses can complete the positioning process more easily than service

based businesses. After all, your customers can see, touch and watch demonstrations of your

products to see how they work and visualize their benefits. Here are some hints for exploring

how customers perceive your business and its services:

• Create simulations, descriptions, or case studies showing proven results.

• Find out how customers view your services in terms of value, results and convenience.

7. Regardless of your business type, take the information about customer perception that you’ve

gathered, determine your top benefits and attributes and use them to determine

your current positioning and how far that point is from your ideal vector in the market place.

8. Decide whether you are satisfied with the current positioning of your business, or whether you

need to change your strategy. Consider your target market and decide if your business is

positioned in such a manner that it maximizes every opportunity for visibility in that

market. Finally, keep in mind that positioning can be either an active or passive process. If you

choose not to fully engage in it – it will still take place. Don’t give up the valuable opportunity to

monitor and influence the process and increase profitability

2.4.4 Factors of Brand Positioning

1. Brand Attributes

What the brand delivers through features and benefits to consumers.

2. Consumer Expectations

What consumers expect to receive from the brand.

3. Competitor attributes

What the other brands in the market offer through features and benefits to consumers.

4. Price

An easily quantifiable factor – Your prices vs. your competitors’ prices.

5. Consumer perceptions

The perceived quality and value of your brand in consumer’s minds (i.e., does your brand offer

the cheap solution, the good value for the money solution, the high-end, high- price tag solution,

etc.?).

In order to Position a Brand…

You must decide

Who the Target Consumer is

Who your main competitors are

How the Brand is similar to your competitors

How the Brand is different from your competitors

Where do you get this information?

Your BRAND INVENTORY!!

Brand Positioning

A good brand positioning help guide marketing strategy by clarifying the brands essence but

goals it help the consumer achieve and how it does so in a unique way. The result of the

positioning is the successful creation of a customer focused value proposition, a cogent reason

why the target market should buy the product.

Mass Concrete Competitive Frame of Reference

A starting point in defining a competitive frame of reference for a brand positioning is to

determine Category Membership- the products with which a brand competes and which function

as close substitute.

Points of Parity and Point of Difference

Once the competitive frame of reference for positioning has been fixed by defining thecustomer

target market and nature of competition, marketers can define the appropriate points-of-

difference and point-of-parity associations.

Point-Of-Difference

POD's are attributes or benefits consumer strongly associates with a brand, positively evaluated,

and believe that they could not find the same extant with a competitive brand. Strong, favorable

and unique brand associations that make up POD.

Point-of-Parity

POP's on the other hand, are associations that are not necessarily unique to the brand but may in

fact be shared with other brands. These types of associations come in two basic forms:

1.Category

2.Competitive

Category POP's are associations consumers view as essential to be a legitimate and credible

offering within a certain product or service category. Competitive POP's are associations

designed to negate competitors' points-of-difference.

Choosing POP 's and POD 's

POP are driven by the needs of category membership (to create POP's) and the necessity of

negating competitors POD's (to create competitive POP's)These are three key

consumer desirability criteria for POD's-

1.Relevance

2.Distinctiveness

3.Believability

There are three key deliverability criteria

1. Feasibility

2. Communicability

3. Sustainability

2.4.5 Elements of Positioning

Evidence has shown that there are four distinct variables that affect the position of a given

product. These are:-

a) The product itself,

b) The company behind it,

c) The competition,

1. The Product: - How important the product is or what meaning it has for the consumer & how

he relates to it. The fact that a product involves better ingredients or processes is a matter of

indifference unless this knowledge offers distinct advantages to the consumer.

2. The Company: - A product comes from a company & every company has its own history.

Generally, the stronger the companies profile the better the image of its products. For

instance, consumers may perceive a better the image of a product if it comes from a reputed

house like Tata’s.

3. The Competition: - Product positioning is invariably done in relation to various competitive

offerings. In most cases, the consumers have a tendency to judge a product in comparison to

the dominant brand, e.g., all photocopiers are compared with Modi Xerox, all PCs with HCL,

toothpastes with Colgate & so on. Leading brand enjoys some edge over others.

4. The Consumer: - It should be reiterated that positioning is essentially based on consumer

perception rather than factual evaluation. Hence, it becomes necessary to examine how the

consumer views a product. Here, it becomes necessary to examine how the consumer views a

product. Here, the consumer’s self-perception comes into play along with his cognitive &

connotative factors.

CHAPTER 3

METHODOLOGY

CHAPTER 3: METHODOLOGY

3.1 Introduction

In order to understand the methodology used to compile this Project, this chapter is included in

order to clarify how an effective methodological philosophy can to contribute the successful

production of a un-bias and critically Project, as well as comprehend the process underwent to

reach the pertinent conclusion outlined in chapter 5.

This chapter also serves the purpose of justifying and authenticating the research procedures

employed in order meet the set objectives and answers the main research question of this Project.

3.2 Research Approach

3.2.1 Secondary Data

Articles in Newspapers, Magazines and Internet

Study Reports from Internet

Desk Research under the guidance of my guide

3.2.2 Primary Data

Consumer Survey on the Consumer brand preference and on their buying

behaviour

3.3 Data Collection Tools

Questionnaire Survey

Books

Internet

CHAPTER 4

ANALYSIS

&

FINDINGS

&

INTERPRETATION

CHAPTER 4: FINDINGS & ANALYSIS

4.1 Secondary Research Findings

Consumer Behavior is the study of the processes involved when individuals or groups select,

purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires.

Consumers take many forms, ranging from an eight-year-old child begging her mother for

Pokemon shoes to an executive in a large corporation deciding on a multimillion-dollar computer

system. The items that are consumed can include anything: Gucci handbags, a massage,

democracy, rap music, or hoopster rebel Dennis Rodman. Needs and desires to be satisfied range

from hunger and thirst to love, status, or even spiritual fulfillment. Consumer behavior is the

study of the processes involved when individuals or groups select, purchase, use, or dispose of

products, services, ideas, or experiences to satisfy needs and desires.

A consumer may purchase, use, and / or dispose of a product, but these functions may be

performed by different people. In addition, consumers may be thought of as role players who

need different products to help them play their various parts.

Fashion terminology is often used by consumers in overlapping ways. A style of apparel is

defined by distinctive attributes that distinguish it from others in its category, such as different

types of shirts; a fashion is a style that has been accepted by many people; high fashion consists

of new, expensive styles offered by upper-end designer. A trend is a general direction that may

lead to a fashion. Merchandise classifications include designer, bridge, better, moderate, and

budget prices.

Fashions tend to follow cycles. The two extremes of fashion adoption known as collective

selection. Perspectives on motivations for adopting new styles include psychological, economic,

and sociological models of fashion.

Marketing activities exert an enormous impact on individuals. Consumer behavior is relevant to

our understanding of the dynamics of popular culture.

The Internet is transforming the way consumers interact with companies and with each other.

Online commerce allows us to locate obscure product from around the world, and consumption

communities provide forums for people to share opinions and product recommendations. The

benefits are accompanied by potential problems, including the loss of privacy.

The field of consumer behavior is interdisciplinary; it is composed of researchers from many

different fields who share an interest in how people interact with the marketplace. These

disciples can be categorized by the degree to which their focus is micro (the individual

consumer) versus macro (the consumer as a member of a group or of the larger society).

There are many perspectives on consumer behavior, but research orientations can roughly be

divided into two approaches. The positivist perspective emphasizes the objectivity of science and

the consumer as a rational decision maker. The interpretive perspective, in contrast, stresses the

subjective meaning of the consumer’s individual experience and the idea that any behavior is

subject to multiple interpretations rather than to one single explanation.

4.1.1 Current Customer Trends

Male Shopping Habits

Men are creatures of habit and find comfort in what is familiar to them – less risk in purchases.

Research shows that nearly 75 per cent of male shoppers buy clothing at the exact same stores.

Men are not as adventurous in fashion as women.

Male shoppers are more concerned on customer service.

Men tend to stay with a brand or a style.

Retail stores must create some kind of compelling reason for the male shopper to switch.

Male oriented activities like putting greens in the sports department, computer games, celebrity

endorsements, all help men try a new store.

Marketer’s and brand retailer’s need to capitalize on this consumer trend. It’s the future

consumer and the buyer. In the past men were ignored as mere buyers for their female

counterparts. But as the market evolves they will be the biggest buyers for themselves. Brands

need to focus on this consumer as he will be the next big thing – The Man.

Teenage Power

Teenage consumers influence the purchase patterns of many different age groups.

They are the offspring of the baby boomers and represent over a good per cent of the total

population.

Typical teenager’s room now includes a TV, a stereo, a DVD player, a computer and perhaps

even a microwave oven.

Each room is a highly personalized environment that can be custom tailored and personalized as

a centre for entertainment.

42 per cent of all Indian teenagers, 18 and over, have their own debit and credit card and

increasing – another 14 per cent to have access to the credit cards.

Brands need to pay more attention to this consumer segment as they are the future of the

marketplace. Increased income levels and exposure to television makes them the consumer with

the buying power, especially with the phenomenal growth in the BPO sector where dress codes

are essential and thus increasing the opportunities for brands to market themselves and sell to

this segment.

Buying Experiences

Popularity of reality television speaks volumes about the heart beat of the consumer.

Insecurity and a shyness and a new perspective about the outside world cause people to enjoy

vicarious adventures enacted by ordinary souls.

Family values become more important.

Historical movies that present plot lines about overcoming danger and winning against greater

odds connect us to our past.

People are watching more newscasts and making a bigger effort to understand current events.

Marketers and businesses alike need to focus on these consumer trends and make a detailed

outline as to how they need to innovate to cater to the masses and not just a niche crowd as that’s

where the major business lies and the brand image gets identity in the marketplace.

Innovation, promotion and marketing a brand is essential, but only after one understands the

psychology of the marketplace and develops products that match it.

Arvind Mills

The Arvind Mills was set up with the pioneering effort of the Lalbhai brothers in 1931. With the

best of technology and business acumen, Arvind has become a true Indian multinational, having

chosen to invest strategically, where demand has been high and quality required has been

superlative. Today, The Arvind Mills Limited is the flagship company of Rs.20 billion (US$ 600

million) Lalbhai Group.

Arvind Mills has set the pace for changing global customer demands for textiles and has focused

its attention on select core products. Such a focus has enabled the company to play a dominant

role in the global textile arena. With its presence across the textile value chain, the company

endeavors to be a one-stop shop for leading garment brands.

Forevision and Technology has brought Arvind to be one of the top three producers of Denim in

the world, and on its way becoming the Global Textile Conglomerate. Arvind is already making

its presence felt in Shirting’s, Knits and Khakhis fabrics apart from being all set to create ripples

in the ready to wear Garments world over.

The underlying theme running across the broad spectrum of all business activities at Arvind is

that of enhancing lifestyles of people, across all diversities and demographics. To serve that end,

the corporate vision for Arvind states:

‘‘We will enable people to experience a better quality of life by providing enriching and

inspiring lifestyle solutions’’.

OUR PHILOSOPHY

WE BELIEVE In people and their unlimited potential; in content and in focus on problem solving; in teams for

effective performance, in the power of the intellect.

WE ENDEAVOUR To select, train and coach people to obtain higher responsibilities; to nurture talent, and to build

leaders for the corporations of tomorrow; to reward, celebrate and activate all intellectual

business contributions.

WE DREAM Of excellence in all endeavors; of mutual benefit and prosperity; of making the world a better

place to live in.

Arvind is amongst a few organizations worldwide with a portfolio of brands that are as

distinctive and relevant across diverse consumers. At Arvind, brands work across multiple

channels, price points and consumer segments. The expanse of the Arvind brandscape is spread

across the Indian market with around 273 standalone brand stores in addition to 975 counters

selling through key accounts and multibrand outlets across India.

Own Brands

Licensened Brands Joint Venture Brands

Mainstream Bridge to Luxury Bridge to Luxury

Excalibur Gant U.S.A. 1949 Tommy Hilfiger

Flying Machine Energie’

Popular

Premium

Premium

Ruf & Tuf USPA Lee

New Port University Arrow Wrangler

Izod

Popular

Cherokee

Mossimo

ARROWS

The Arrow Company is committed to providing quality apparel

products that are fashionable and afford value to our consumers. At

Arrow, the roots are firmly established as a fashion leader in men's

apparel. However, today Arrow has been transformed into an

Gentleman lifestyle brand with a broad assortment of men's, women's,

and children's apparel and apparel related products available in over 90

countries worldwide. At Arrow, through research and development,

everyone is constantly addressing the changing needs and desires of

the consumer, resulting in brand awareness and consumer loyalty.The

success of Arrow can be attributed to the brand's rich heritage and the

company's attention to detail over the years.

Arrow, a Gentleman icon, for over 150 years...

The Arrow Collar Man: A brief Demographic customer profile-

An Arrow customer is a male aged between 24 to 44 years .Its

target segment is SEC A/A1 i.e educated and well qualified

discerning gentleman who is used to the best things in life.

He is placed at higher echelons of corporate hierarchy .He is

widely traveled and exposed to international trends .In vogue

and formal dressing is a lifestyle for this Gentleman.

Arrow customer continues to represent great values such as

freedom, adventure, individual expression, and style through

out the world.

ARROW IN INDIA

A Brief profile

The epitome of the brand is heritage and craftsmanship. The parent company of the brand

namely Cluett Peabody & Co., USA, began operations in the US in 1851. Till 1920 Arrow was a

brand known for manufacturing collars. It was only in 1920 when a man named C.R. Palmer

came up with an idea to make Arrow shirts. Since then Arrow is known for heritage a master

craftsmanship. In 1993 Arrow was launched in India and the first exclusive store was opened at

Commercial Street, Bangalore. In 2000 Phillips Van Heusen got the license for the brand in the

US and in 2004 history was made for Philips Van Heusen when they got the world rights to the

Arrow brand.

ARROW in India is a lifestyle brand targeted at men between 25 to 44 years. Arrow is a

benchmark for formal dressing but also caters to the leisure wardrobe of the customer with a

range in Arrow Urban and Arrow Sports. Arrow’s product range comprises of Shirts, Trousers,

Knits, Suits, Blazers, Innerwear, and Accessories.

Arrow is expanding its exclusive retail network. Arrow now has 64 outlets across India. It is also

present in 30 retail chains including Life Style, Shoppers’ Stop and Pyramid among others.

Arrow, which is in the process of adding more showrooms, is focusing on a new format for

stores. With a strong channel wise distribution network ,its really doing a great business and

catering to Metropolitan ,Urban as well as Suburban customers.

ARROW AT ARVIND BRANDS

The brands’ president is Mr. J Suresh who is supported by Business Head by Mr. Janak Dave.

The Brand has a dedicated Product team , Marketing Team , Retail Team ,visual merchandiser

and overall a Famous Designer from Italy Mr. Renato Grande whose Precious inputs and design

theme keeps the brand offering of each season at par with international trends in fashion.

The customer connect takes place through five channels – Exclusive brand stores ,department

stores, multi brand outlets ,exports and institutional sales. Each of these is headed by channel

heads. The business and channel heads supported by specialist teams –supply chain, production,

sales, finance, information technology and human resources .Each of these teams is headed by

senior professionals.

Organizational hierarchy

Designer Marketing Manager Product Manager (

Suits)

Product Manager

Business Head

Manager SCM Business Manager

Retail

Shirts, Knits, Casuals,

Accessories

Assistance Manager

Executive SCM Retail Planner

Sourcing Manager

VM

Customer

service

Trims Prod. Knits Fabric

ARROW OFFERINGS

Arrow is lifestyle brand in India catering to the complete wardrobe solution of male as well as to

some extent to females. The brand offerings include Shirts, Trousers, Knits , Suits , Accessories

as well as innerwear.

Arrow is retailed under the following labels:

o 1851

o President

o Premium

o Classic

Arrow is retailed under the following sub brands:

o Sports

o Urban

Today’s ARROW shirt began as the once revolutionary idea that a collar could detach from its

shirt, giving women an easier way to clean their husbands’ stained shirt collars without

laundering the entire shirt. From this idea, born by Mrs. Hannah Montague in her home in Troy,

NY, grew an internationally acclaimed dress shirt brand. Today, ARROW is licensed in 55

countries and offers a broad assortment of men’s, women’s, and children’s apparel and apparel-

related products. The brand’s look and appeal reflect a youthfulness and optimism that embody

the American spirit.

Continuing a rich history of innovation in American style, in 2010 ARROW reworked three

classic vintage shirts to deliver a limited edition collection sold exclusively in Urban Outfitters.

For Fall 2011, ARROW mined its deep brand history with the introduction for the first time

since 1905 of a contemporary Arrow Collar Man to herald the introduction of the first collection

offered by our newly formed PVH Europe division. The campaign features all-American actor

and model Josh Duhamel as the Arrow Collar Man, alongside supermodel Bar Rafaeli. The

original Arrow Collar Man was an advertisement created by renowned Saturday Evening

Post artist Joseph Christian Leyendecker. The Arrow Collar Man quickly became the symbol of

the idealized American Male, an icon of style and sophistication, adored by legions of female

fans.

Today’s Arrow Collar Man is a modern symbol of masculine American style. Cluett Peabody is

committed to providing worldwide quality ARROW brand apparel products that embody the

heritage of the brand and deliver superior quality to consumers. One hundred and sixty years

ago, the detachable collar was the innovation that changed an industry. Today,

the ARROW brand represents another novel idea to modern men: choose value but never

sacrifice style.

The History

With a heritage dating back to 1851, Cluett, Peabody & Co., Inc. is celebrating its 160th

anniversary of selling superior quality apparel. In 1820, Mrs. Hannah Montague created the first

detachable shirt collar in her home in Troy, NY as a way of cleaning her husband’s collar

without laundering the entire shirt. In 1851, Ebenezer Brown recognized the possibilities in the

detachable collar industry and began manufacturing collars in the back of his general store in

Troy and the predecessor to the original Cluett, Peabody & Co., Inc. was born. This modest

beginning would eventually lead to the introduction of the ARROW brand in 1885 as a pioneer

in men’s fashion. From that point forward, the history of ARROW and its products closely

followed the shifts and trends in American culture. As times changed, ARROW adapted

accordingly, offering the product, fabric and fit that its consumers demanded. After WWI,

detachable collars were abandoned in favor of soft attached collars like those soldiers had

become so accustomed to on their uniforms. Conventional white shirts ruled in the 50’s and

flamboyant colors and patterns reflected the turbulence of the 60’s and 70’s. Fashion marched

onward, and ARROW delivered a redesigned product, appealing to the renewed conservatism of

the young, urban professional in the 1970’s and 1980’s. This unique ability to cater to the needs

of its customers while offering “authentic American style” has been the foundation of

the ARROW brand’s continued success.

BRANDING STRATEGY

Arrow the popular label from Arvind Brands best known for its American style and white shirts

is aggressively spreading its retail presence in India. Their strategy is to add new stores and play

up their brand presence to woo young men and women by introducing array of new styles.

They will continue to make the brand more aspirational and capture a bigger market

share. They want to be the aspirational brand for young professionals. They have launched

Arrow New York, where they have zero calorie work wear. These are young formals, where

everything is slim fit. They will continue to push and strengthen this.”

Launched in India in 1994, Arrow’s complete collection of men and women’s wear includes:

Arrow Formals which has a ‘Presidents Collection’ and a premium range of suits, shirts and

trousers; Arrow Sport, a leisure and weekend wear, to complete the American sports lifestyle;

Arrow New York, an international line of slim formals for the youth, that is minimalistic,

modern and trendy; Arrow Woman, formal, casual and evening wear ensembles for the urban

woman. To complete the look of the professional, Arrow also offers shoes, bags and accessories.

COMPETITORS OF ARROW

Louis Philippe

Louis Philippe symbolises elegance, class, status, and a lifestyle that is distinctly majestic and

opulent. The brand draws its name and inspiration from King Louis Philippe of France, who was

famed for his generosity of spirit and his appreciation of the arts.

From its inception, Louis Philippe has been seen as the purveyor of fine clothing for the

discerning European gentleman. Garments under this label combined the finest fabrics with

designs inspired by the latest global trends, addressing the needs of the style-conscious

contemporary male. The international superbrand offers elegant ensembles for the new Indian

man. The entire range of formals, semi-formals, knits, custom-made apparel, and accessories is

inspired by the latest European fashion trends.

Synonymous with premium, international men’s fashion, Louis Philippe was launched in India in

1989. Celebrating the sophistication of the Indian gentleman, Louis Philippe garments establish

that their wearer is a man of infallible taste and class. The brand’s Franco-Italian lineage,

combined with its focus on global fashion gives it an indisputable premium and an exclusive

image. Today, Louis Philippe is a brand leader in formal and quasi-formal wear.

Louis Philippe's range of superbly crafted garments makes an exclusive fashion statement that is

accepted as a status symbol, recognized by its distinctive icon — 'The Upper Crest'.

Van Heusen

Van Heusen is a premium lifestyle brand for men, women and youth. The brand embodies

fashion for the corporate and reflects the current expression of elegance in today's context. Van

Heusen believes that the design drivers for the brand are fashion and sophistication. The brand

covers all aspects of an individual's clothing needs, be it corporate wear, casual wear, party wear

or ceremonial wear, making it a complete lifestyle brand in the truest sense. The core audience is

professionals and corporate executives - men and women who are successful, focused, articulate,

well-traveled, confident and have a sense of style about them. They pursue success just as they

do their other interests and passions, learning and exploring everything that comes their way.

Van Heusen has redefined corporate attire through continuous product innovation and exclusive

collections.

Allen Solly

Allen Solly popularized the Friday dressing concept in India. It has won the IFA Images 2001

'Best Brand Award' in the readymade menswear apparel category.

Allen Solly created ripples in the Indian market by releasing new rules in corporate dress code. It

trashed whites and greys thereby making the corporate world a colourful and vibrant place.

Originating from the large portfolio of international brands of Coats Viyella – UK, Allen Solly

truly has been the brand that transformed the way people dressed by bringing in its concept of

Relaxed Formal Wear to India – bold and bright colours, concepts and patterns.

Blackberry

Established in 1991 Blackberrys is one of the leading formal wear brands in India. Identifying a

potential in branded structured clothing for the changing needs of the Indian male, over the

years, Blackberrys has established itself as the manufacturer of trousers, suites and jackets and

gradually completed the wardrobe look with shirts, and accessories. The model is based on a

design conscious, product delivery system with a strong back up of global and local sourcing.

Catering to the self assured and confident youth, we stand for innovations in product and have

created a strong image of ‘Sharp Edged Clothing’. The brand has a high recall value and is

perceived a premium clothing brand and has been documented in various trade surveys as ‘The

Best FIT’.

Blackberrys is equipped with the latest technology of manufacturing in 3 factories. The 22000

sq. ft plant has been specially designed for the manufacturing of suits and jackets produce 1000

units per day and 1200 formal trousers and 1500 casual trousers per day. A true assembly line

system of production with latest technology in computerized sleeve setters, automatic pocket

welting machines, differential feed machines, and specialized press finishing to facilitate a very

high level of consistent quality.

Today Blackberrys can be accessed across India through about 900 plus retail outlets, 125

company owned showroom and all large format stores like shoppers stop, lifestyle etc

Vision statement

A ceaseless endeavor to delight the fashion forward customer with great style and care teamed

with speed and innovation

4.2 Primary Research Findings

Gender

3) Your Age

4) Shopping frequency ( No. of time you buy clothes in a year)

Male 23 53%

Female 20 47%

18 - 24 35 81%

25 - 34 7 16%

35-44 1 2%

45-54 0 0%

Above 55 0 0%

1 to 4 times 20 47%

5 to 8 times 9 21%

9 to 12 times 3 7%

more than 12 times 11 26%

5) Accompanied By:

6) When buying clothes you:

Design [7) Rate Preference while buying clothes]

Friends 31 33%

Mother 24 25%

Father 16 17%

Brother/ Sister 18 19%

Grand parents 2 2%

Other 4 4%

Go directly in a particular shop 15 35%

Go and visit different shops 27 63%

Other 1 2%

Always 31 72%

Sometimes 9 21%

Rarely 1 2%

Never 2 5%

Fabric [7) Rate Preference while buying clothes]

Colour [7) Rate Preference while buying clothes]

Fashion [7) Rate Preference while buying clothes]

Always 24 56%

Sometimes 16 37%

Rarely 1 2%

Never 2 5%

Always 35 81%

Sometimes 8 19%

Rarely 0 0%

Never 0 0%

Always 26 60%

Sometimes 17 40%

Rarely 0 0%

Never 0 0%

Price [7) Rate Preference while buying clothes]

Service given [7) Rate Preference while buying clothes]

8) Your Preferred Brand

Always 24 56%

Sometimes 19 44%

Rarely 0 0%

Never 0 0%

Always 14 35%

Sometimes 18 45%

Rarely 6 15%

Never 2 5%

Arrows 14 18%

Allen Solly 8 10%

louis philippe 13 16%

Van Husean 13 16%

Blackberrys 16 20%

Other 16 20%

10) Would you recommend others to buy Arrow?

Brand Name [14) Influence on purchase decision]

Quality [14) Influence on purchase decision]

Definitely 12 29%

May be 16 39%

May Not be 1 2%

can't say 12 29%

Strongly Agree 16 40%

Agree 20 50%

Disagree 3 8%

Strongly Disagree 1 3%

Strongly Agree 26 63%

Agree 15 37%

Disagree 0 0%

Strongly Disagree 0 0%

Price [14) Influence on purchase decision]

Product features [14) Influence on purchase decision]

Family Member [14) Influence on purchase decision]

Strongly Agree 25 63%

Agree 15 38%

Disagree 0 0%

Strongly Disagree 0 0%

Strongly Agree 21 53%

Agree 17 43%

Disagree 2 5%

Strongly Disagree 0 0%

Strongly Agree 11 28%

Agree 23 58%

Disagree 6 15%

Strongly Disagree 0 0%

Peer Group [14) Influence on purchase decision]

Advertisement [14) Influence on purchase decision]

15) Awareness about the product

Strongly Agree 9 23%

Agree 25 64%

Disagree 5 13%

Strongly Disagree 0 0%

Strongly Agree 5 14%

Agree 24 67%

Disagree 4 11%

Strongly Disagree 3 8%

Media 27 32%

Journals 8 10%

Internet 21 25%

Mouth Publicity 25 30%

Other 3 4%

16) Influencer to buy the brand

17) Would you switch your brand if you get any promotional scheme with other brand

18) Are Branded products better than unbranded products

Advertising 24 26%

Shop display 20 22%

Word of mouth 14 15%

Attractive packaging 9 10%

Friends/ Family/Relatives 23 25%

Other 2 2%

Yes 27 68%

No 13 33%

Yes 32 80%

No 8 20%

CHAPTER- 5

MANAGERIAL

IMPLICATION

5.1 Conclusions

Readymade garment is really becoming big business. The domestic market too presents immense

opportunities with consumer spending on the rise and organized retailing growing. But should a

garment player go global or sell at home or in A town or in B & C town ?

Competition is likely to hot up and keep domestic players on their toes. The retail landscape is

changing, and the traditional distribution strategy of apparel players is in for an overhaul.

Figuring out which price point to operate in is yet another challenge for an apparel maker.

Challenging, but interesting, times are ahead for the readymade garment industry.

Operating in the domestic market poses an entirely different set of challenges from that of the

export market. It requires more than manufacturing expertise and a heightened fashion-

consciousness.

Established names, however, do not have it easy either. The entry of international brands such as

Tommy Hilfiger into the Indian market is likely to be followed by more players.

Apparel retailers, with little retail expertise, had to build their own network, at considerable

expense. The rapid growth in recent years of various retail formats, such as departmental stores

and malls, has given a fillip to the industry.

5.2 Managerial Implication and Recommendations

1. Rural market. Knowing the huge size of rural population of India it is natural that the

rural market is attractive to marketers. Company should study purchasing power, life

styles, buying habits, optimal usage level.

2. Creativity and innovation in overall marketing programmes. Marketers have to

develop organizational structure style and functioning, which enable them to act fast and

bring in innovations in their marketing programmes.

3. Customer service challenge. In an increasingly competitive market, retention of a

customer is possible only through better service. Marketers will require devoting to more

efforts to understand the customer view of quality and convenience. Marketers should do

regular research to find this fact.

4. AFTER SALES SERVICE: Customers must be provided with the after sale service

which can make our brand differentiate among others. Today in competitive market,

special and exclusive service is appreciated which can also influence the customers on a

large scale.

5. BRAND AWARENESS: Today in Competitive market, Brand awareness in the

customer mind is necessity. It must be created through different mediums like promotions

in malls, T.V commercial, Radio Buzz etc

6. Weekends Special Offers : Company should come up with the special offers in a Week

to influence customers intention towards the brand. It can create lot of mouth Publicity of

the brand.

7. Fashion cum season Consciousness: In today world, Customers change the necessities

and likeliness according to the season and fashion. Arrows need to come up with the

stuffs which are season oriented as well fashion. Eg: Customers specially youth like to

have NEON collection stuffs in Rainy season. It will help the brand to create their own

place in the market.

LIMITATIONS OF THE RESEARCH

The Researcher encountered the following constraints while undergoing the given project:

The project did not cover on a very large scale. Only a small population was studied, which

may not be enough to show correct picture.

The findings in this study were based on a Survey of Major shopping clusters, markets and

other competitor Stores located there. Hence care should be exercised in generalizing these

findings to other geographical locations.

This project is limited due to time constraint as it involves a lot of complex variables which

require a detailed study over a period of time.

Budgetary Constraints were a limit to the extent of market scanning of competitors, the

Researchers could undertake.

The time of the project was at the end of the season when most of the retailers/brands were

on sale or about to be on sale.

Due to the company’s objection towards the in store intercept interviews and questionnaire,

half of the questionnaires and interviews were conducted out of the store and some of the

retailers were not very cooperative.

The consumers were very reluctant to answer the question and the response may be biased

References:

http://www.entrepreneur.com/article/77408

http://www.arvindmills.com/home.htm

http://marketing.about.com/cs/brandmktg/a/whatisbranding.htm

http://www.fashionunited.in/news/fashion/arrow-aims-to-push-up-store-count-to-160-by-march-

2013-261120124596

http://www.businessdictionary.com/definition/branding.html

http://www.brandingstrategyinsider.com/

http://www.gobookee.net/get_book.php?u=aHR0cDovL3d3dy5pYmVmLm9yZy9kb3dubG9hZ

C9BcnZpbmRfTWlsbHNfTGltaXRlZC5wZGYKQVJWSU5EIE1JTExTIExJTUlURUQ=

http://thesmartmanager.com/file/021210273109_TheSmartManager,_SpecialFeature,_ArvindMil

ls,_Nov-Dec-10.pdf

http://www.maduragarments.com/brands/allen_solly_heritage.html

http://www.ibef.org/download/arvind_mills_limited.pdf

http://en.wikipedia.org/wiki/Arvind_Mills

http://www.maduragarments.com/brands/louis_philippe.html

http://www.vanheusenindia.com/about

http://mashable.com/category/branding/

1) What is your Name. *

2) Gender

o Male

o Female

3) Your Age *

o 18 - 24

o 25 - 34

o 35-44

o 45-54

o Above 55

4) Shopping frequency ( No. of time you buy clothes in a year)

o 1 to 4 times

o 5 to 8 times

o 9 to 12 times

o more than 12 times

5) Accompanied By:

o Friends

o Mother

o Father

o Brother/ Sister

o Grand parents

o Other:

6) When buying clothes you:

o Go directly in a particular shop

o Go and visit different shops

o Other:

7) Rate Preference while buying clothes

Always Sometimes Rarely Never

Design

Fabric

Colour

Fashion

Price

Service given

8) Your Preferred Brand

o Arrows

o Allen Solly

o louis philippe

o Van Husean

o Blackberrys

o Other:

9) Lifestyle Preffered

10) Would you recommend others to buy Arrow?

o Definitely

o May be

o May Not be

o can't say

11) Attributes of a brand

12) Your Preferred Choice

13) As a female your perception about a brand

14) Influence on purchase decision

Strongly

Agree Agree Disagree

Strongly

Disagree

Brand Name

Quality

Price

Product features

Family Member

Peer Group

Strongly

Agree Agree Disagree

Strongly

Disagree

Advertisement

15) Awareness about the product

o Media

o Journals

o Internet

o Mouth Publicity

o Other:

16) Influencer to buy the brand

o Advertising

o Shop display

o Word of mouth

o Attractive packaging

o Friends/ Family/Relatives

o Other:

17)

Would you switch your brand if you get any promotional scheme with other brand

o Yes

o No

18) Are Branded products better than unbranded products

o Yes

o No

19) Feedback