CHAPTER-1 INTRODUCTION
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1.1 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 are the ones who help in forming and sustaining strong long term “parentbrandpeople! relationships. These brands form the potential for present growth and future e"pansion. The y help the organizations con#uer peaks at the time of booms and stay afloat and swim at times of depression.! $e come across a number of brands in our daily li%es. &ur morning starts with using a toothpaste ('olgate, epsodent or 'loseup), using a bathing soap (u", *airglow or 'inthol) and shampoo ('linic +ll 'lear or atika), atika), wearing clothes ( +llen Solly, e%i-s e%i-s or aymonds), breakfast bread (Britannia or /odern) and butter (+mul) or 0am (1issan), (1issan), lunch and dinner (2ature *resh or illsbury flour and Safal %egetables), morning and e%ening tea and coffee (Tetley, (Tetley, 2escafe or Bru), going out in a car (3yundai Santro, 3onda +ccord or /ercedes Benz). Ben z). Talking on the cell phone (/otorola, 2okia, Siemens or Samsung), watching tele%ision in the e%ening (4, Sony or hilips) h ilips) or listening to music (hilips or +pple) +pple) etc. But how often do we think of what all a company compan y does to put a positi%e imprint (fight for a shelf space) in the mind of the customer5 Today Today nearly all the companies are focusing more and more on building strong brands. The concept of brand e#uity and its management has come to the fore like ne%er before. /ore and more companies are refocusing on select strong brands. This pro0ect is thus a timely stuffy of the importance of brands, what it takes to build them, what benefits do they gi%e to different stakeholders (organization, (organization, distributors and customers), customers), how can they be le%eraged, what is the impact of modern technology on branding, branding on the web, branding in mergers and ac#uisitions etc. e"amples h a%e been gi%en and cases discussed at e%ery suitable point to bring out an application oriented understanding of “building and managing brands!.
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1.1 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 are the ones who help in forming and sustaining strong long term “parentbrandpeople! relationships. These brands form the potential for present growth and future e"pansion. The y help the organizations con#uer peaks at the time of booms and stay afloat and swim at times of depression.! $e come across a number of brands in our daily li%es. &ur morning starts with using a toothpaste ('olgate, epsodent or 'loseup), using a bathing soap (u", *airglow or 'inthol) and shampoo ('linic +ll 'lear or atika), atika), wearing clothes ( +llen Solly, e%i-s e%i-s or aymonds), breakfast bread (Britannia or /odern) and butter (+mul) or 0am (1issan), (1issan), lunch and dinner (2ature *resh or illsbury flour and Safal %egetables), morning and e%ening tea and coffee (Tetley, (Tetley, 2escafe or Bru), going out in a car (3yundai Santro, 3onda +ccord or /ercedes Benz). Ben z). Talking on the cell phone (/otorola, 2okia, Siemens or Samsung), watching tele%ision in the e%ening (4, Sony or hilips) h ilips) or listening to music (hilips or +pple) +pple) etc. But how often do we think of what all a company compan y does to put a positi%e imprint (fight for a shelf space) in the mind of the customer5 Today Today nearly all the companies are focusing more and more on building strong brands. The concept of brand e#uity and its management has come to the fore like ne%er before. /ore and more companies are refocusing on select strong brands. This pro0ect is thus a timely stuffy of the importance of brands, what it takes to build them, what benefits do they gi%e to different stakeholders (organization, (organization, distributors and customers), customers), how can they be le%eraged, what is the impact of modern technology on branding, branding on the web, branding in mergers and ac#uisitions etc. e"amples h a%e been gi%en and cases discussed at e%ery suitable point to bring out an application oriented understanding of “building and managing brands!.
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1.2 Understanding Branding
B+26 The word “Brand! owes its origin to the 2orwegian word “brand! which means to burn. *armers used to put some identification mark on the body of the li%estock to distinguish their possession. roducts are what companies make, but customers buy brands. Therefore marketers resorted to branding in order to distinguish their offerings offerings from similar products and ser%ices pro%ided pro%ided by their competitors. +dditionally, +dditionally, it carries an inherent assurance to the customers that the #uality 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 group of sellers and to differentiate differentiate them from those of competitors. competitors.
B+26724 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.
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Branding can be used as a differentiation strategy when the product cannot be easily distinguished in terms of tangible features (which in%ariably happens in case of many ser%ices, durables etc.) or in products which are percei%ed as a commodity (e.g. cement, ce ment, fertilizers, salt, potato chips etc.).
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Brand building is a conscious customer satisfaction orientation process. The brand owner tries to retain customers to its fold o%er their competitors by a mi" of hardware software because when a customer feels satisfied he / she de%elop a kind of loyalty for the same.
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Kotler (8999) e"pands on the concept of identity by stating that a brand is capable of con%eying up to si" different le%els of meaning to a targeted audience. This is known as the “Six Dimensions of The Brand !
Attriutes
+ brand will communicate specific attributes, such as prestige
Bene!its
+ brand strengthens a product-s attributes by communicating a set of benefits that makes it more attracti%e
"a#ues
+ brand represents a company-s core %alues and belief system
Cu#ture
+ brand is representati%e or target a target audiences socio cultural characteristics
Persona#it$
+ Brand can pro0ect beha%ioral personality patterns of targeted consumers
User
The brand, in some cases, can emulate the end user
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*rom the consumers- perspecti%e, brand names are as fundamental as the product itself in the sense that they simplify the purchasing process, guarantee # uality and at times, form as a basis of selfe"pression. 3ence, 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 de%eloping a deep set of meanings for the brand. &nce a target market segment can %isualize all si" dimensions of the brand, it will ha%e established a strong rapport within the consumers purchase decisionmaking process.
1.2.1 Histor$ o! Branding
Brands in the field of marketing, originated in the 89th century with the ad%ent of packaged goods. 7ndustrialization mo%ed the production of many household items, such as soap, from local communities to centralized factories. These factories, generating massproduced goods, needed to sell their products in a wider market, to a customer base familiar only with local goods. 7t #uickly became apparent that a generic package of soap had difficulty competing with familiar, local products. The packaged goods manufacturers needed to con%ince the market that the public could place 0ust as much trust in the nonlocal product. /any brands of that era, such as ;ncle Ben
s and the early ?>>>s, branding emerged as a significant area of emphasis not only for companies and their products, but also for municipalities, uni%ersities, other nonprofit organizations and e%en indi%iduals. Branding became ubi#uitous. /any of us also know that roctor @ 4amble and other consumer product companies began branding their products in earnest in the midtolate 8A>>s. But more interesting to me is how far back in time branding goes. *or instance, companies that sold patented medicines and tobacco began branding their products as early as the early 8A>>s. +round the same time, some fraternities and sororities branded their pledges
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(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 relati%ely. Between the 8>>s and 8A>>s, criminals were branded (again literally) as a form of punishment and identification. *or instance, in Cngland, they branded an S on a person>s, Cngland re#uired bread makers, goldsmiths and sil%ersmiths to put their marks on goods, primarily to insure honesty in measurement. 7n the /edie%al times, printers also used marks as did paper makers (watermarks) and %arious other craft guilds. But branding goes back e%en further. +s far back as 8D>> B', potter>> B'. +nd archaeologists ha%e found e%idence of ad%ertising among Babylonians dating back to D>>> B'. So, how far back does branding go5 +t least E>>> years.
$hat is more interesting to me are underlying needs from which branding originatedF to insure honesty, pro%ide #uality assurance, identify source or ownership, hold producers responsible, differentiate, as a form of identification and to create emotional bonding. 7nterestingly, people
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%alue brands for many other same reasons today. 'learly, history pro%ides some insight and perspecti%e on modern day branding.
1.2.2 Branding in Toda$%s &ar'ets
+ central function of branding is the facilitation of the consumer choice process. 6ue to the comple"ity of ha%ing to select a product amongst thousands of similar offerings, consumers will instincti%ely attempt to simplify their choice process by selecting brands that ha%e satisfied them in the past. Thus, one can conclude that pleasant past e"periences is highly conduci%e to consumers associating benefits to a brand. &ne 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.
&ne must acknowledge howe%er, that fre#uent purchasing of a brand cannot always be linked to pre%ious e"periences, but can alternati%ely be formed by embedded perceptions. + consumer might strongly fa%our a brand with no prior purchasing e"perience. This type of consumer beha%ior is based on stimulus pro%ided by direct e"posure to ad%ertising campaigns, a company-s efforts or e%en a high concentration of local distribution in an area that is in close pro"imity to a consumer.
7n terms of companies- %iews on branding, it can induce the natural differentiation of their offerings, which ultimately, will produce a state of competiti%e ad%antage. 6ifferentiation can only allow for competiti%e ad%antage if the cost of differentiating is significantly lower than the re%enue earned by the sales. 6ifferential ad%antage allows companies to showcase their offer in respects to other competitors in the same marketplace.
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1.2.( I)*ortance o! Branding
rinciple of branding + set of related products that are manufactured by a company and are sold as a family of products under the mar#uee or banner of a brand ha%e a certain recognition and a place of respect within that %ery market. Branding the product thus, is a means of creation of identification and recognition in the market. 7t is not 0ust a process of getting a trademark and logo, but it is process of e%ol%ing as a well reputed name on the market and field. + %ery well known brand that has become the identity of the market itself is the office e#uipment manufacturer
I)*ortance o! Branding in Business
*rom the point of %iew of a business, the process of branding in%ol%es making of a trademark and a good name. + registered trademark and a name ensure indi%iduality and uni#ueness of a particular product or family of products. The lawful registration of the trademark means that any 8
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
&ften you might see some new product carry the tag that says
I)*ortance o! Branding in &ar'eting
/arketing primarily in%ol%es the study of demand in a market and creating a response in the form of supply. 7n the field of marketing, the brand name plays an important role as it helps the people to promote the brand name and its merits #uite easily. +part from that, it also becomes possible for the marketing people to generate intelligence information about the brands popularity and also what people e"actly want from the brand owning company. +s a result of a brand loyal group of consumers, it also becomes easier for marketing department to asses regular and promised demand. +part from that, schemes such as free gifts and discounts often boost the sales as the brand is an important icon of the market.
I)*ortance o! Branding in Ad+ertising
+d%ertising is often considered to be a part of marketing howe%er: branding a particular product helps the ad%ertisers to pro%ide catchy logos a nd ad%ertisements. +s a brand name can ne%er be copied, ad%ertisers face lesser heat from unauthenticated ad%ertisements, effecti%ely, their ad%ertisement creation gets protected. +part from that ad %ertisers can initiate fearless and 9
independent ad%ertising as due to the process of branding, the consumers are already well aware of the product, its identity and nature.
7n short, the importance of branding can be summed up in simple words
1.2., De+e#o*)ent o! Brand Euit$
The amount of clout controlled by different brands will %ary. Some are deeply embedded in global culture and are thus, highly recognizable, whilst other are %irtually unknown to consumers. $hen attempting to place a %alue on a brand, one refers to “brand e#uity!. 'hay (8998) defines brand e#uity 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 e"planation creates a
clear link between a product-s %alues, be it financial or intangible, and a brand name.
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;sing the financial perspecti%e, one measures brand e#uity by determining how much more consumers are willing to pay in direct relation to the brand name. This gi%es marketers essential insight into the financial %alue of the brand. $hen %iewing brand e#uity from this perspecti%e, one must naturally consider o%erhead, such as costs of ad%ertising. ;sing the consumerbased perspecti%e entails considering how the attitude strength of consumers is directly influenced by the brand name. This perspecti%e operates under the assumption that the consumer has had e"tensi%e e"perience with the product in #uestion.
The consideration and de%elopment of brand e#uity is %ital as its benefits are wide reaching. &ne can consider brand e#uity as an asset, as it can increase cash flow %ia the widening of a company-s market share and the allowance of higher pricing policies.
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1.2.0 Te Co)*etiti+e Ad+antage o! Brand o$a#t$
There is a palpable correlation between the efficient branding of a product or ser%ice, and the display of brand loyalty in consumer purchasing patterns. 7n 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 conse#uence of the ability to better satisfy the desires of a customer that main competitors do. 7t now becomes clear that a modern day marketer-s principal ob0ecti%e is to build sustainable forms of loyalty between a company and its consumers, instead of focusing solely on the indi%idual sale of products. Brand oyalty is the consumer
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characteristics, a brand with no personality can easily be passed right o%er. + strong symbol or company logo can also help to generate brand loyalty by making it #uickly identifiable.
1.( Understanding Consu)er Bu$ing Bea+ior
D efinition
'onsumer beha%ior refers to the mental and emotional process and the obser%able beha%ior of consumers during searching, purchasing and post consumption of a product or ser%ice
'onsumer beha%ior in%ol%es study of how people buy, what they buy, when they buy and why they buy. 7t blends the elements from psychology, sociology, socio psychology, anthropology and economics. 7t also tries to assess the influence on the consumer from groups such as family, friends, reference groups and society in general.
Buyer beha%ior has two aspectsF the final purchase acti%ity %isible to any obser%er and the detailed or short decision process that may in%ol%e the interplay of a number of comple" %ariables not %isible to anyone.
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1.(.1 3actors A!!ecting Consu)er Bu$ing Bea+ior
'onsumer buying beha%ior is influenced by the ma0or three factorsF
8. Social *actors ?. sychological *actors D. ersonal *actors.
1. Social *actors
Social factors refer to forces that other people e"ert and which affect consumers- purchase beha%ior. These social factors can include culture and subculture, roles and family, social class and reference groups.
C"ampleF
By taking into consideration eference group, these can influenceJ affect the consumer buying beha%ior. eference group refers to a group with whom an indi%idual identifies herselfJ himself
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and the e"tent to which that person assumes many %alues, attitudes or beha%ior of group members. eference groups can be family, school or college, work group, club membership, citizenship etc.
eference groups ser%e as one of the primary agents of consumer socialization and learning and can be influential enough to induce not only socially acceptable consumer beha%ior but also socially unacceptable and e%en personal destructi%e beha%ior. *or e"ample, if fresher student 0oins a college J uni%ersity, heJshe will meet different people and form a group, in that group there can be beha%ior patterns of %alues, for e"ample style of clothing, handsets which most of group member prefer or e%en destructi%e beha%ior such as e"cessi%e consumption of alcohol, use of harmful and addicti%e drugs etc. So, according to how an indi%idual references him J her to that particular reference group, this will influence and cha nge hisJher buying beha%ior.
2. sychological *actors
These are internal to an indi%idual and generate forces within that influence herJhis purchase beha%ior. The ma0or forces include moti%es, perception, learning, attitude and personality.
C"ampleF +ttitude is an enduring organization of moti%ational, emotional, perceptual and cogniti%e processes with respect to some aspect of our en%ironment. 'onsumers form attitude towards a brand on the basis of their beliefs about the brand. *or e"ample, consumers of Sony products might ha%e 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.
(. ersonal *actors
These include those aspects that are uni#ue to a person and influence purchase beha%ior. These factors include demographic factors, lifestyle, and situational factors. 15
C"ampleF ifestyle is an indicator of how people li%e and e"press themsel%es on the basis of their acti%ities, interests, and opinions. ifestyle dimension pro%ide a broader %iew 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 li%ing and themsel%es. This is influenced by demographic factors and personality.
C.g. + 'C& or /anager is likely to buy more formal clothes, ties and shoes or 6+s and less informal clothes like 0eans as compared to a /echanic or 'i%il engineer. So according to their lifestyle and profession, the buying beha%ior of people differs from one another.
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1.(.2 Consu)er Bu$ing Decision Process
'onsumer 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 ser%ice.
'onsumer decision making process generally in%ol%es fi%e stagesF
+. roblem ecognition
urchase decision making process begins when a buyer becomes aware of an unsatisfied need or problem. This is the %ital stage in buying decision process, because without recognizing the need or want, an indi%idual would not seek to buy goods or ser%ice.
There are se%eral situations that can cause problem recognition, these includeF •
6epletion of stock
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6issatisfaction with goods in stock
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Cn%ironmental 'hanges
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'hange in *inancial Situation
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/arketer 7nitiated +cti%ities
7t-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. 7nformation Search
+fter the consumer has recognized the need, he J she will try to find the means to sol%e that need. *irst he will recall how he used to sol%e such kind of a problem in the past, this is called nominal decision making. Secondly, a consumer will try to sol%e the problem by asking a friend or goes
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to the market to seek ad%ice for which product will best ser%e his need, this is called limited decision making. Sources of information includeF •
ersonal sources
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'ommercial Sources
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ublic sources
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ersonal e"perience
'. +lternati%es C%aluation
'onsumers- e%aluates criteria refer to %arious dimension: features, characteristics and benefits that a consumer desires to sol%e a certain problem. roduct 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 alternati%e products depending on each uni#ue feature that the product offers and the benefit he J she can get out of that feature.
6. urchase +ction
This stage in%ol%es selection of brand and the retail outlet to purchase such a product. etail outlet image and its location are important. 'onsumer 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 %alues and which in%ol%e higher sensiti%e purchase decision. +fter selecting where to buy and what to buy, the consumer completes the final step of transaction by either cash or credit.
C. osturchase +ctions
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'onsumer fa%orable postpurchase e%aluation leads to satisfaction. Satisfaction with the purchase is basically a function of the initial performance le%el e"pectation and percei%ed performance relati%e to those e"pectations. 'onsumer tends to e%aluate their wisdom on the purchase of that particular product. This can result to consumer e"periencing post purchase dissatisfaction. 7f the consumer-s percei%ed performance le%el is below e"pectation and fail to meet satisfaction this will e%entually cause dissatisfaction, and so the brand andJ or the outlet will not be considered by the consumer in the future purchases. This might cause the consumer to initiate complaint beha%ior and spread negati%e wordofmouth concerning that particular product.
1., Branding%s In!#uence on Consu)er Purcasing Bea+ior
The preceding section of this literature re%iewed has sought to define the term branding and e"plain its functions and %alues as an instrumental marketing tool used in attaining differential and competiti%e ad%antage.
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The following section of this literature re%iew will seek to enlighten the impact branding has on the consumer decisionmaking process.
*irst howe%er, one must gain clear insight into the definition of consumer buying beha%ior in order to understand the impact branding has on it. 7n defining “consumer buying beha%ior!, one may refer to +ssael (89AK) who distinguishes four types of consumer buying beha%iors. 3e bases these four consumer types on the %arying degrees of in%ol%ement and the degree of differentiation amongst the brands in #uestion.
'onsumers who are described as displaying comple" buying beha%ior will e"pand their beliefs regarding a particular product as a starting point. This stage will e%entually lead them to de%elop positi%e attitudes regarding the product. These intermediary stages lead them to the final stage of their beha%ioral pattern, where they consciously make the choice of purchasing the product. eferring to the +ssael-s model: one will notice this type of consumer engages in highly
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in%ol%ed purchasing e"periences being fully aware of the range of brands a%ailable and their le%els of differentiation.
+ssael (89AK) classifies consumer who e"hibit 6issonancereducing beha%ior as consumer who are highly in%ol%ed in the purchasing e"perience, howe%er see few differences between brands. *or this reason, the consumer will seek information on the differentiation of the product offerings and will not be particularly price sensiti%e when seeking functionality. 7n the e%ent that this consumer finds him or herself in a market that displays low le%els of differentiation, the consumer might result to purchasing influenced by con%enience. ike consumers who display comple" buying beha%ior, consumers with dissonancereducing beha%ior will seek to establish personal beliefs regarding the product. 7f fostered ade#uately, these beliefs with e%entually transform into attitudes regarding the product offerings. These attitudes, if fa%ourable, will lead to a thoughtful purchase.
+ssael (89AK) considered consumes displaying habitual buying beha%ior as consumers who did not e"perience the same se#uence as the pre%ious two beha%ioral types. 7nstead of basing their decisionmaking process on seeking product information pertaining to functionality or characteristics, this type of consumer will purchase based on information gathered passi%ely, %ia the company-s promotional efforts, by it through the medium of tele%ision, radio or print ad%ertising. This beha%ioral type, as can be seen on +ssael-s (89AK) model, with lowle%el in%ol%ement products. 6ifferentiating this consumer type is the fact that they being the process with beliefs already embedded in their mind, which they ha%e learnt passi%ely, rather than acti%ely. arietyseekers are the last beha%ioral type contained in +ssael-s (89AK) model. Their typical buying situation is summarized by lowle%el in%ol%ement in a market that displays high le%els of product differentiation. 'ommon to this type of consumer, is “brand switching!, in order to satisfy their need for di%ersification.
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CHAPTER- 2 RE4EARCH ÐODOO56
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Research esearch comprise comprise defning defning and redefnin redefning g problem problems, s, ormula ormulaing ing h!pohes h!pohesis is or suggesed soluions" collecing, organi#ing and e$aluaing daa" ma%ing deducions and reaching conclusions" and a las careull! esing he conclusions o deermine &heher he! f he ormulaing '!pohesis(
)n shor shor,, he searc search h or *no&l *no&ledg edge e hrou hrough gh and +!sem +!semai aic c meho mehod d o fnding fnding soluions o a problem is Research(
2.1.1 RESEARCH DESIGN Descriptive Research escripi$e research includes +ur$e!s and ac-fnding en.uiries o di/eren %inds( he maor purpose purpose o descripi$e descripi$e research research is descripion o he sae o o a/airs, as i eiss as he presen( he main characerisic o his mehod is ha he researcher has no conrol o$er he $ariables" he can onl! repor &ha has happened or &ha is happening, he research canno describe &ha caused a siuaion( hus, escripi$e research canno be used o creae a causal relaionship, &here one $ariable a/ecs anoher( 'o&e$er, i does no ans&er .uesions abou eg ho&&hen&h! he characerisics characerisics occurred, &hich is done under anal!ic research(
Sources of Data Primary sources rimar! sources are original sources rom &hich he researcher direcl! collecs daa ha ha ha$e ha$e no been been pre$i pre$ious ousl! l! collec colleced ed,, e(g(, e(g(, colle colleci cion on o daa daa direc direcl! l! b! he 23
researcher on brand a&areness, brand preerence, brand lo!al! and oher aspecs o consumer beha$ior rom a sample o consumers b! iner$ie&ing hem( rimar! daa are are frs-hand frs-hand inorma inormaion ion colleced colleced hrough hrough $arious $arious mehods mehods such as obser$a obser$aion, ion, iner$ie&ing, iner$ie&ing, mailing ec( Questio Questioaire aire - sample .uesionnaire &as pro$ided o around 50 di/eren •
people people &hich &hich &as used o eri$e eri$e Resuls esuls and nal!#e cusomer cusomer beha$ior beha$ior in purchase o rui drin%s( sample o he .uesionnaire along &ih Resuls rom indings and nal!sis are gi$en laer in he roec
Seco!ary Sources hese are sources sources conaining daa ha ha$e been colleced and compiled or anoher purpose( he secondar! sources consis o readil! a$ailable compendia and alread! compiled saisical saemens and repors &hose daa ma! be used b! researches or hei heirr sud sudie ies, s, e(g( e(g(,, cens census us repor epors s,, annu annual al repor epors s and and fnan fnanci cial al sa saem emen ens s o companies, +aisical saemens, Repors o o$ernmen eparmens, ommercial :an%s( "oura#s ;
ha$e pro$ided $ial saisical as &ell as heoreical aa &hich ha$e been $er! helpul( •
Ne$spapers Ne$spapers a! %a&a'ies %a&a'ies ; >conomic imes as ?ell as @aga#ines such as :usiness oda! ha$e pro$ided useul )normaion on e$eloping )ndian )nsurance +ecor as &ell as ho& he rend and demand o cusomers has changed o$er a period o ime(
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Iteret a! (ther %e!ia Sources ; ??? has he laes daa and iner$ie&s &hich helped me in deermining he scope o m! proec as &ell as ma%e i as up o dae as possible(
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Samp#e Si'e a! Samp#e Desi& •
Samp#i& )it he mar%eing researcher mus defne he arge populaion ha &ill be sampled(
•
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*ime +rame ) is he period o ime or &hich he sur$e! or sud! is o be done( Samp#i& %etho!, Ra!om Samp#i& +ince he inormaion re.uired &as no o a $er! echnical naure and also loo%ing a he scope o he proec and he een o he arge segmen, he sampling echni.ue emplo!ed &as Random +ampling(
(
Co##ectio %etho! Data Co##ectio he daa is colleced randoml! irrespeci$e o he caegor! o he people in he orm o .uesionnaire and he sample si#e is 100 respondens( :ecause i is a pilo sud! and due o ime consrain he sample si#e is small(
Questioaire !esi& -uestioaire is a research insrumen consising o a series o .uesions and oher promps or he purpose o gahering inormaion rom respondens( lhough he! are oen designed or saisical anal!sis o he responses, his is no al&a!s he case( Auesionnaires ha$e ad$anages o$er some oher !pes o sur$e!s in ha he! are cheap, do no re.uire as much e/or rom he .uesioner as $erbal or elephone sur$e!s, and oen ha$e sandardi#ed ans&ers ha ma%e i simple o compile daa(
*ype of Questios use! i this Proect/ 25
%u#tip#e Choice Questios ?here respondens is o/ered more han &o choices( his is done o %no& he choice o he cusomers regarding di/eren maers(
26
CHAPTER- ( 3INDIN54 7 ANA64I4
27
2.1 Pri)ar$ Researc 3indings
$hich of the following fashion brands are you aware of5
In!erences8 This diagram depicts that brands like +llen Solly, 'olor lus, Lodiac, ro%ogue,
ouis hilippe, an 3eusen ha%e the higher le%el of awareness among the public while brands like 6ockers, roline, ar", +rrow ha%e less awareness and Blackerry, ark +%enue, eter Cngland, C"calibur ha%ing moderate intensity of awareness among the people.
28
$hich of the following brands of 6enim are you aware of 5
In!erences F The abo%e diagram depicts that Brands of 6enim like ee, e%is, epe, /onte 'arlo ha%e
more awareness than the brands like $rangler, 2umero ;no, 6ockers, ee 'ooper.
29
3ow often do you change your readymade garments brand 5
re.uenl!
127
Bccasionall!
23
Ce$er
0
In!erences8 The abo%e 'hart depicts that out of 8>> people who ha%e been sur%eyed, most of the people
fre#uently change their brand preference.
3ow often do you purchase clothes 5
30
Bnce in a ?ee%
24
Bnce in a @onh
36
Bnce )n 3 @onhs
32
Bnce in 6 @onhs
8
In!erences F The abo%e diagram shows that people generally buy cloth once in a month or once in a three
month and few people buy once a week and some also buy once in si" month.
$ho influence you to purchase the brand5
31
amil!
8
riends
32
d$erisemen
24
+el
36
Bher
0
In!erences8 The abo%e diagram depicts that *riends, +d%ertisment and by Self people get influence to
purchase or choose a brand, also some get influenced by family.
32
7n which media you ha%e seen the ad%ertisement of these brands 5
<
4
)nerne
56
Ce&s aper
24
@aga#ine
16
Bher
0
In!erences8 The abo%e diagram shows that mostly people watch ad%ertisement in 7nternet, also newspaper
and magazine of fashion brands are #uite good source of ad%ertisement and T% also influence the people.
33
$hich of the following would affect you choice of readymade garments5
In!erences8 The diagram abo%e depicts that large no. of people said that there is no affect of cloth type,
price and promotional campaigns in choice of a particular brand while some people think these parameters affect the choice.
34
$hen you buy a readymade garment during a promotional campaign, will you buy the product after the campaign 5
Des
24
Ei%el!
36
onF *no&
20
) &ill mos imel! &rien o$er o m! pre$ious brand
10
) &ill sic% o m! pre$ious brand
10
35
•
In!erences8 The abo%e diagram depicts that out of 8>> people sur%eyed ?Mpurchase the product after
campaigning,, D said likely, ?> are confused, 8> said they may purchase their pre%ious brand only and 8> said they will checkout their pre%ious brand.
36
+re you brand concious 5
Des
86
Co
14
In!erences F The abo%e diagram depicts that out of 8>> people who ha%e been sur%eyed Aare conscious
about brand and rest are not.
37
+re you satisfied with the brand a%ailable..5
+aisfed
86
Con +aisfed
14
38
In!erences8 The abo%e diagram depicts that A people are satisfied with brands a%ailable and rest
are not.
6o you agree that brand name influences the consumers buying beha%ior..5
+rongl! gree
41
gree
22
$erage
16
+rongl! isagree
12
isagree
9
39
In!erences8 The abo%e diagram depicts that out of 8>> people M8 strongly agree that brand name
influence the consumer buying beha%ior, ?? agree, 8 said a%erage, 8? strongly disagree and 9 disagree.
40
$hat are the parameters that affect the buying decision 5
Auali!
55
>as! $ailabili!
22
rice
23
41
In!erences8 The abo%e diagram depicts that #uality parameter most influence the buying
decision while easy a%ailability and price moderately affects the purchasing b eha%ior. 6o you think ad%ertisements influence the consumer buying decision.5
+rongl! gree
21
gree
42
$erage
18
+rongl! isagree
15
isagree
4
42
In!erences8 The abo%e diagram depicts that ?8 people strongly agree that ad%ertisements
influence the purchase, M? agree, 8A on a%erage, 8E strongly disagree and M disagree. 2.2 3indings
'onsumer Beha%ior is the study of the processes in%ol%ed when indi%iduals or groups select, purchase, use, or dispose of products, ser%ices, ideas, or e"periences to satisfy needs and desires. 'onsumers take many forms, ranging from an eightyearold child begging her mother for okemon shoes to an e"ecuti%e in a large corporation deciding on a multimilliondollar computer system. The items that are consumed can include anythingF 4ucci handbags, a massage, democracy, rap music, or hoopster rebel 6ennis odman. 2eeds and desires to be satisfied range from hunger and thirst to lo%e, status, or e%en spiritual fulfillment. 'onsumer beha%ior is the study of the processes in%ol%ed when indi%iduals or groups select, purchase, use, or dispose of products, ser%ices, ideas, or e"periences to satisfy needs and desires.
•
+ consumer may purchase, use, and J or dispose of an product, but these functions may be performed by different people. 7n addition, consumers may be thought of as role players who need different products to help them play their %arious p arts.
•
*ashion terminology is often used by consumers in o%erlapping ways. + style of apparel is defined by distincti%e attributes that distinguish it from others in its category, such as different types of skirts: a fashion is a style that has been accepted by many people: high fashion consists of new, e"pensi%e styles offered by upperend designer. + trend is a general direction that may lead to a fashion. /erchandise classifications include designer, bridge, better, moderate, and budget prices.
•
*ashions tend to follow cycles. The two e"tremes of fashion adoption known as collecti%e selection. erspecti%es on moti%ations for adopting new styles include psychological, economic, and sociological models of fashion.
43
•
/arketing acti%ities e"ert an enormous impact on indi%iduals. 'onsumer beha%ior is rele%ant to our understanding of the dynamics of popular culture.
•
The 7nternet is transforming the way consumers interact with companies and with each other. &nline commerce allows us to locate obscure product from around the world, and consumption communities pro%ide forums for people to share opinions and product recommendations. The benefits are accompanied by potential problems, including the loss of pri%acy.
•
The field of consumer beha%ior 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 indi%idual consumer) %ersus macro (the consumer as a member of a group or of the larger society).
•
There are many perspecti%es on consumer beha%ior, but research orientations can roughly be di%ided into two approaches. The positi%ist perspecti%e emphasizes the ob0ecti%ity of science and the consumer as a rational decision maker. The interpreti%e perspecti%e, in contrast, stresses the sub0ecti%e meaning of the consumer-s indi%idual e"perience and the idea that any beha%ior is sub0ect to multiple interpretations rather than to one single e"planation.
44
(.2.1 Current Custo)er Trends
&a#e 4o**ing Haits •
/en are creatures of habit and find comfort in what is familiar to them N less risk in purchases.
•
esearch shows that nearly KE per cent of male shoppers buy clothing at the e"act same stores they went to three years back.
•
/en are not as ad%enturous in fashion as women and changes to wardrobe are far less common.
•
/ale shoppers demand much more customer ser%ice.
•
/en tend to stay with a brand or a style and stick with it for se%eral years N less likely to change.
•
/ale consumer loyalty makes it harder for new businesses or brands to attract new customers.
•
etail stores must create some kind of compelling reason for the male shopper to switch.
•
/ale oriented acti%ities like putting greens in the sports department, computer games, celebrity endorsements, all help men try a new store.
/arketer-s and brand retailer-s need to capitalize on this consumer trend. 7t-s no longer 0ust the metrose"ual or uberse"ual man. 7t-s the future consumer and the buyer. 7n the past men were ignored as mere buyers for their female counterparts. But as the market e%ol%es they will be the biggest buyers for themsel%es. Brands need to focus on this consumer as he will be the ne"t big thing N The /an. Teenage Po9er •
Teenage consumers influence the purchase patterns of many different age groups.
45
•
They are the offspring of the baby boomers and represent o%er 8M per cent of the total population.
•
Typical teenager-s room now includes a T, a stereo, a 66 player, a computer and perhaps e%en a microwa%e o%en.
•
Cach room is a highly personalized en%ironment that can be custom tailored and personalized as a centre for entertainment.
•
M? per cent of all 7ndian teenagers, 8A and o%er, ha%e their own credit card and increasing N another 8M per cent to ha%e access to the credit cards.
*ashion brands need to pay more attention to this consumer segment as they are the future of the marketplace. 7ncreased income le%els and e"posure to tele%ision makes them the consumer with the buying power, especially with the phenomenal growth in the B& sector where dress codes are essential and thus increasing the opportunities for brands to market themsel%es and sell to this segment.
Bu$ing E:*eriences
•
opularity of reality tele%ision speaks %olumes about the heart beat of the consumer.
•
7nsecurity and a shyness and a new perspecti%e about the outside world cause people to en0oy %icarious ad%entures enacted by ordinary souls.
•
*amily %alues become more important.
•
3istorical mo%ies that present plot lines about o%ercoming danger and winning against greater odds connect us to our past.
46
•
$omen are being drawn to plots with warm and fuzzy endings N men to macho e"citement.
•
eople are watching more newscasts and making a bigger effort to understand current e%ents.
•
/arketers and businesses alike need to focus on these consumer trends and make a detailed outline as to how they need to inno%ate to cater to the masses and not 0ust a niche crowd as that-s where the ma0or business lies and the brand image gets identity in the marketplace.
•
7nno%ation, promotion and marketing a brand is essential, but only after one understands the psychology of the marketplace and de%elops products that match it.
47
CHAPTER- , CONCU4ION4
48
,.1 Conc#usions
eadymade 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 home5 Some players such as aymond and Lodiac 'lothing ha%e chosen to be aggressi%e in both markets. C%en as they plan to impro%e their retail presence o%er the ne"t three years, both are e"panding their manufacturing facilities in Bangalore to cater to the e"pected rise in international demand. 7nterestingly, ma0or e"port players such as +mbattur 'lothing ('olor lus) and +cme 'lothing (ro%ogue) ha%e, in the past, placed their bet on the domestic market. These companies #uickly managed to gi%e bigger players a run for their money. But, as 'olor lus disco%ered, further growth could come only from a wider distribution network, which needs deep pockets. aymond stepped in and ac#uired the brand. &perating in the domestic market poses an entirely different set of challenges from that of the e"port market. 7t re#uires more than manufacturing e"pertise and a heightened fashion consciousness. Cstablished names, howe%er, do not ha%e it easy either. The entry of international brands such as Tommy 3ilfiger into the 7ndian market is likely to be followed by more players. 'ompetition 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 o%erhaul. *iguring out which price point to operate in is yet another challenge for an apparel maker. 'hallenging, but interesting, times are ahead for the read ymade garment industry.
49
+pparel retailers, with little retail e"pertise, had to build their own network, at considerable e"pense. The rapid growth in recent years of %arious retail formats, such as departmental stores and malls, has gi%en a fillip to the industry. + boost to the industry would come from allowing foreign direct in%estment in retailing, which would increase space considerably and also bring international practices to 7ndia. This may also encourage newer entrants, once the distribution costs decline. ri%ate labels tend to do well during recessions. etailers en0oy better margins on their own labels, and are also able to price them lower. layers such as /adura 4arments, which ha%e a presence in the segment through +llen Solly, belie%e that once women try out pri%ate labels and get more accustomed to $estern wear, they are likely to upgrade to a more e"pensi%e brand. But players may still find it tough to cater to this market. They would ha%e to mo%e towards a lowmargin, %olumedri%en business. This would also need a far larger distribution network than what e"ists today. *ew retail formats in 7ndia operate on a truly large scale. 4iants such as $al/art and 'arrefour, which ha%e the ability to dri%e %olumes, are what the industry would need.
50
CHAPTER- 0 RECO&&ENDATION4
51
0.1 Reco))endations 1. Rura# )ar'et. 1nowing the huge size of rural population of 7ndia it is natural that the rural
market is attracti%e to marketers. 'ompany should study purchasing power, life styles, buying habits, optimal usage le%el. Brooke Bond for instance could capture the cru" of the challenge when they started marketing e 8 tea packets.
2. Understanding ro#e o! ci#dren.
/arketers should study the role of children in buying
decision N as influencers and decision makers. 3owe%er, the challenge remain how does one communicate with children5 +d%ertising recalls being more in the case of childrenone way is clear but with e%ery one trying to apply the same techni#ue, marketers will be gradually disillusioned with the method. ossible ways of circum%enting this problem may be to market the product through schools or to use the imitati%e tendencies of children by influencing their peers.
D. Distriution. 6istribution cost are an increasing component of marketing cost marketers will ha%e to find ways through which one can achie%e efficient as well as economic distribution. &ne solution is 0oint distribution or by adopting direct marketing.
D
Custo)er ser+ice ca##enge. 7n an increasingly competiti%e market, retention of a customer
is possible only through better ser%ice. /arketers will re#uire de%oting to more efforts to understand the customer %iew of #uality and con%enience. /arketers should do regular research to find this fact.
52
M
Ada*tation to ne9er en+iron)ent.
+s go%ernment withdraw entry barriers and rela"
restriction on merger or takeo%er many companies should install superior technology and resort to merger N ac#uisition route to make their unit more efficient. E
Creati+it$ and inno+ation in o+era## )ar'eting *rogra))es. /arketers ha%e to de%elop
organizational structure style and functioning, which enable them to act fast and bring in inno%ations in their marketing programmes.
53
CHAPTER- ; I&ITATION4
54
.8 imitations o! te Pro
•
This pro0ect is limited due to time constraint as it in%ol%es a lot of comple" %ariables which re#uire a detailed study o%er a period of time.
•
The pro0ect did not co%er the effect of branding on a %ery large scale. &nly a small population was studied, which may not be enough to show correct picture.
•
The consumers were %ery reluctant to answer the #uestion and the response may be biased.
55
BIBIO5RAPH6 BOO=4 •
3awkins, Best ad 'oney, 'onsumer Beha%ior, th Cdition, ?>>K, /c.4raw3ill 'o.
•
1e%in ane 1eller, Strategic Brand /anagement, ?nd edition, ?>>M, earson Cducation, 2ew 6elhi
•
ean 4.Sehiffman and eslic lazan 1anuk, 'onsumer Beha%ior, th Cdition, ?>>A, /c.4raw3ill 'o.
>EB4ITE4 •
httpFJJwww.britannica.comJCBcheckedJtopicJ?E>AD>Jhabitualbuyingbeha%iour
•
www.businessdictionary.comJ...Jconsumerbuyingbeha%ior.htm
•
www.ccsenet.orgJ0ournalJinde".phpJi0msJarticleJdownloadJ...J8?
56
ANNE?URE
57
B+26724 @ C+6O/+6C 4+/C2TS
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58
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Selfemployed
Student
QQQQQQQQQQQQQQQQQQQQQQQQ (lease Specify)
/onthly 3ousehold 7ncomeF R8>>>>
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8. $hich of the following fashion brands are you aware of5 e%i-s
6ockers
'olor
ar"
Blackberry-s
Lodiac
ro%ogue
ark
+%enue
ouis
an
eter
Cngland
C"calibur
3eusen
+rrow
&thers(please
specify)
?. $hich of the following brands of 6enim are you aware of5 ee
Black
$rangler
2umero
/onte
'arlo ites
ee
e%is epe
;no
&thers
'ooper
D. 3ow often do you change your readymade garments5
*re#uently
Strauss
&ccasionally
2e%er
59
(please specify)
lus
philippe
M. 3ow often do you purchase clothes5 &nce
a week
&nce
in a month
&nce
in D months
&nce
in months
E. $ho influence you to purchase the brand5 *amily
*riends
Self
&ther
+d%ertisement
. 7n which media you ha%e seen the ad%ertisement of these brands T
/agazine
2ewspaper
7nternet
&ther
K. $hich of the following would affect you choice of readymade garments5 2o effecti%e at all 'loth Type rice romotional campaigns
60
+ffecting the most
A. $hen you buy a readymade garment during a promotional campaign, will you by the product after the campaign5 Oes
ikely
6on-t 1now
7 will most likely written o%er to my pre%ious brand
7 will switch o%er to pre%ious brand
9( +re you brand concious..5
Oes
2o
8>. +re you satisfied with the brand a%ailable..5
Satisfied
2ot Satisfied
88. 6o you agree that brand name influences the consumers buying beha%ior..5 Strongly agree
+gree
+%erage
Strongly disagree
61 
